Year: 1868

But lew, II any INSTITUTIONS ol moueIn Dlrtn,


have exerted more healthful influence over


the people of a place than building and loan


associations, where they have been properly


understood and entrusted to faithful and


very successful, severally having run out to,
the satisfaction of all investing in them. Many


a man in this place owes his homestead, in fact


his start in life to his becoming contributing
member to ore ofthese associations. The old


systems labored under the disadvantages Of


having borrowers to become scarce and pre-


miums to run low before they wound up,


somewhat lengthening the time of their run


ming out. A new system has recently been


started, which promises to remove whatever


defects existed in the old one. By this plan


a new series is issued at short periods, annually


or biennially, at which new members are re-
ceived upon equal terms with the old SO far as


advantages are concerned. In the one now so
successfully operating here, member of the
third series has with his two or three dollars
per share investment the same chance to loan


money that member of the first series has.


Hence with this facility borrowers are continu-


ally brought into the association, keeping by


their competition the premiums at higher


rate, and causing the series to run out much


sooner. Lest any should not understand what


is meant by running out, we will in few


words explain our meaning. The payments


into an association in the ordinary plan are


one dollar per month per share, the money


thus paid in is loaned out the same evening,


being usually sold in sums of $500 each to the


person willing to pay the highest premium for


1t, with the interest payable with the dues,


monthly. When by the successive accumula-


tions of premium, interest and monthly dues


each share of stock has reached the value of
two hundred dollars, the association on the


old plan; the series in the new is said to run


out. Those having loaned money and given
their obligations have them cancelled, and
those not having taken out loans, receive their
two hundred dollars. The time required for
this must of course depend largely upon the
premiums. At an ordinary rate of premium
it is usually estimated that ten years will be
renured for nm association nr series To strnn
out" At this rate the sum paid in equals
one hundred and twenty dollars, the amount
received two hundred dollars, the gain eighty
dollars, fine illustration of the rapid growth
and accumulation of small savings. To have
an association work successfully, all or the
greater part of the members should become
borrowers. The idea entertained by so many
that because premium is paid the association
is poor place to borrow from, is practically
quite incorrect. The premiums in the new
associations both at Salem aud Bridgeton, we
believe, according to official statement, aver
aged over forty dollars per loan for the last
year. To many this may seem like an ssawful
price" to pay for money. Where it is loaned
formidable. A loan bought out the first night
and running the full ten years, will require for
its payment twelve dollars per year for dues, |
and a like amount, less one dollar for interest /
making total payment of principal and inter-
est of two hundred and thirty-nine dollars |
upon loan of two hundred. Suppose a pre-
MUM of forty dollars is paid, then but one |
hundred and sixty dollars are received upon
obligations given for two hundred. This may
look formidable, but suppose another party at
the same time borrows one hundred and sixty
dollars from some other party, keeps it ten
years on seven per cent interest, the account
will stand thus, ten years interest on the prin-
cipaI is one hundred and twelve dollars, which |
oeIi. - Irsx a.
dollars still to be paid makes total of two
hundred and seventy-two dollars, or thirty
three dollars more on the same amount of money
borrowed, than is paid to the building associa-
ton. The reason of this is plain, in the first
Instance the borrower only returns three-ffths
of the money borrowed, being forty dollars |
less than paid in the second instance. The
figures given represent the actual amount of |
money paid in each instance, so that borrowers
far from losing by borrowing of the associa- |
ton actually gain by it. This is however but |
a small part of the advantages of auch associa- |
tions. They inculcate in the members habits
of economy and get them almost impercep-
tibly in the way of saving money. They get
iIOm 1uQlflOudiS tu0 HOuCy CApCu0Vu
for trifes, the stray dollars not counted in for
any purpose specially. The money thus saved
is employed in building, increasing the number
of homesteads and thus adding largely 10 the
solid wealth of place. To the laboring man
and him of small means they are especially
valuable. They enable him to borrow money
and secure homestead when he could not
otherwise get it, and at the same time while
making the payment of less amount tn an
borrowing elsewhere, makes them in such
small amounts that they are as readily met, as
the monthly rent SO many for years have been
paying without at the end being cent better
off. AS creditor the building association is
more merciful than the individual, the payment
of the small monthly pittance forbids all posi-
bility of ssenteri9g up.' no matter how much
the busy tongue of SANDER may predict the
ruin of the individual. But reverse the case
and suppose somebody whispers that neighbor
must sscome to it, poor fellow" sHow does
things look then ?'' Every body that has
dollars claim wants it tinstanter under penalty
of the law. The debtors TO the association
know that their money is not wanted, except
a very little and two-ifths of their obligations
never. We say then to the working man, go
confidently to the association, become men,
Der, borrower, buy yourself home with the
full assurance that if you can pay rent to
shelter your family, you can as we'll pay dues
and interest TO the association and at the ex


piration of few years find the house your
own. No more fears of sshaying to move,"
and don't know where to get house, or
landlords raising the rent with each returning
sstwenty-ffth.' The possession of home of
your own gives you a feeling of independence
you never felt before, real substantial inde-
peudepce. You become larger man in your
own estimation, you can feel that, and in that
of every body else. By your saving you have


al