Evening star. [volume] (Washington, D.C.) 1854-1972, 1922-04-08
BUILDING ANDLOAN
HISTORY IS TRACED
c. Clinton James Talks of AS
sociations Formed Since
Year 1881.

History of building and loan assoc
Citations was traced by c. Clinton
James, president of the local council
of building and loan associations. be-
fore the members of the real estate
class at the Y. NJ. c. A. this week.
Mr.. James stated that according to
available authentic records. the first
building association was founded in
frankfort, Pa. in 1881. During the
subsequent years of development and
progress that have come to institu-
tons founded on this principle, the
fundamental ideas of the original as
ISOLATION are today the essential
features that characterize the entire
system throughout the country. There
was time during the development
their principal activities was the ac-
tual construction of homes which
were sold to their members. 1t was
shortly seen. however, that this
feature of the work, which was
highly speculative, was of doubtful
benefit and most organizations have
ceased to operate in this field and in
some states are prohibited from so
doing by law.
Outlines Basic Principle.
The basic principle of the building
association idea is to serve two class
es of members: First. the saving class.
and second, the borrowing class. In
its service to the first class il has
been OF value in developing permanent
habits of thrift for the reason that il
has offered facility TO the wage-earner
whereby he can systematically save
some portion of his wages in a safe
and secure manner and at the same
time receive a substantial interest re-
turn. This applies in the same meas
ure to the borrower. who. after being
accustomed to paying. regular stated
amounts for a number of years suffi-
cient to liquidate his mortgage. finds
that after he is free of debt the saw
ing proposition has become a habit in
his life and he merely continues his
regular payments. thereby accumu-
lating a savings fund on which he re-
ceives a substantial interest return.
Home Ownership Discussed.
Home ownership. Mr.. James stated.
is one of the primary natural in
stincts of every real man and woman.
The building association is organ
lied to crafty that desire, and for
that reason makes strong appeal to
all humanity. While building and
loan associations have not, generally
speaking, adopted modern methods of
increasing business, they have grown
to an extent little known to the ay-
erage laymen. According to stats
tics, there are in the United States
about S,UuU associations, WIFI tOldi
membership of approximately five
million and assets of $4,000. 900 600.
Referring to the District of Colum-
bia, the twenty-five local associations
have membership of almost 10000.
with assets of approximately thirty
three million dollars. According to
the per capita investments chart in
building and loan associations. issued
by the Department of Commerce. the
District OF Columbia ranks third, with
a per capita of $62.95.
Accounting Is Explained.
Mr.. James explained to the class the
detail of operation of a building assoc
citation and the methods employed in
accounting and making investments.
1t was stated that owing to the eN-
ceedingly low overhead expense. the
associations are able to pay to their
saving members a rate of interes'
which is generally about l per cent
less than the rate of Interest charged
to borrowing members.
At the next meeting of the class thf
question of coming will be discusset
by Mai. Carey H. Brown. eNecutiVt
officer of the coming commission.