The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1927-05-25
MINNESOTA BOOSTER EDITION
Minnesota Building
andLoan Associations
Rank With Best
(By c. H. Pearson, Manager, Ben
Franklin Building & Loan ASSN

Franklin Building & Loan ASSN
''The future growth of the United
States is unthinkable without the
great work done by the building and
loan associations" so a great finan-
cial paper recently summarized an
article devoted to this important top
ic. Nor would the early development
of Minnesota and the future of our
state be thinkable without due hon.
these institutions and the fair prom
Use they bid for the future continued
prosperity of the state. Even from
the days when the Indians sat in their
wigwams on the lake shores of Min
nesota, to the present era; small COM
munities have been given birth and
have gathered their strength and
gained their growth through the ac-
tivity of their local building and loan
association.
They have given Minnesota peo-
pie homestead homes. There are in
stances-and many-where the citi-
zens boast of rs per cent, 80 per cent
and 80 per cent of the homes being
financed through the building and
loan association; for instance, Stay
ton, Albert Lea, Red Wing, Hastings,
Fergus Falls, Tracy, Mankato, and
scores of similar communities thru
out the state. They have come in
these smaller towns to be looked up
on much in the same light as the
church, school and public library
benevolent institutions theirs
has been benevolent service manag-
ed by board of trustees in most in
stances serving without pay, for the
general good Of the community. These
wise fathers did not fail to recog-
nize early in the development of their
community that first must come
homestead homes-or all else was
naught. For what else could be with
out first place to live?
The occupation afforded local citi-
zens through permanent construction
in the community created payroll
created security for investors equal
to the choicest of foreign bonds and
kept money at work at home. The
result was, increased activity and in
creased prosperity for all no mat
ter what their business or profession.
The early conception of our pioneers
has born fruit. We find those COM
munities that have strong building
and loan associations almost invari-
ably enjoy enviable prosperity.
Minnesota justly may feel proud
of its SO building and loan associa-
tions. So successful has been their
development that William Stephen
NARROW, writing for the Magazine of
Wall Street, accorded to associations
OF Minnesota an GA" rating in a re-
cent nation wide survey. The as
sociations of this state are ranked
with those of such states as New
York, New Jersey and Ohio, and are
placed three grades above Penpsyl /.
vania, the birthplace of building and
loan.
This progress is due to the coop
Grafton of A. J. Veigel. commission
er of banks, with the state legisla-
ture and building and loan executives
in cleansing this field of all promoters,
by maintaining the strictest vigilance
over the conduct of each individual
association, and by having new code
passed in the 1925 session of the state
legislature. The new code definitely
defines building and loan associa-
tions as financial institutions, pub
licly controlled, and organized solely
for the purpose of accommodating funds
to be loaned to their members upon
their homes or upon other improved
real estate, = and furthermore pro-
vides that, hereafter no such corpora
tions shall be organized or operated
for any such real or nominal purposes
otherwise than as herein prescribed
They are supervised the same as
banks; their operations are limited to
the county, expect that application
may be made to the state securities
commissioner for the extension of