Year: 1868

throw off my guise of questioning and pro-
ceed to emulate the gentleman by defining
my real position without reserve.
have to say, before commencing with
the real work, that his little shots at me
were rather absurd-not pertinent at all.
| neither did affect nor express the igno-
rance which he attributes, although as his
oun opinion he is perfectly welcome to the
charge. l know, or think J. do, all the
principal features of association, though
| did not know what line of opinion
should have to combat, so many, so absurd,
are the ideas in regard to it, To my ques-
ton as to the "world-wide celebrity" etc.
he refers (naturally he should to the high
est authority to the columns of the Dcla-
poream, a source which probably over five
hundred inhabitants of the globe have ac-
cess to. imagined he would at least al
lude to some work in which there was
mention of the institution, particularly as
antiquity is one of its claims. Taking his
authority for just what it is worth. pro-
fess to be satisfied with the answer, Earl
Of Selkirk and all, especially as l see in
ternal evidence of its probability. Alex
ander Selkirk, believe, was of the dis
tinguishcd aforesaid gentlcman's family,
and have no doubt that directly from his
solitary mcditations this great scheme of
getting rich with perfect nonintercourse
arose, though Defoe, his chronicler a.
gainst this supposition omits to mention
his having become very wealthy from
changing his money from one pocket to
the other.


With this little returned I will now 90
ahead to show myself without loopholed
protection, 1st heterodox assertion:


The Building Loan Association, as or
ganized here, and for the purpose of sup
plying the poor man with money at less
than 6 per cent. is an utter humbug.


ID. Building Loans and others
ignorance, is their only escape from the
charge of downright humbuggery.


An association composed of men from
the same class, all wanting to build, would
no doubt afford great advantages, combin-
ing with the privilege of building home,
Savings Bank conducted OH the princi-
pie Of short payments of interest (Which
are better for the poor MANI and COM
pounding to the greatest possible extent
In this light its merits are undcniable, yet
its manner of getting security on the
principle, of everybody business" i" and
long time to run, introduce considerable
risk; insurance depending on the action
of the borrower may run out, etc.


But " Building Loan" knows that cap
italists are in this concern; that half the
stock is held by men who will not get
their pecuniary accommodations from the
Association, and as time goes on this pro-
portion of stock will be greater, (already
a good many poor men are selling out. y
Of course after the needy have bor-
rowcd to the extent of their shares, the
remainder of the money will bring little
or no premium. 1t will be exactly as if
two men held the stock When the one
Representing the poorer men) who needs
the money most gets supplied to the
amount of his shares, the other represent
ing the richer men, having no one to bid
against him, will take the balance at his
own rates. l am perfectly willing to ad-
nit that money may be borrowed from the
Association at 40 per cent. and yet cost
borrowers less than six, provided the rest
of the money brings higher rates; but what
guarantee is there that these rates will be
maintained Is it not certain, from the
class of stockholders, that there are men
in it who scarcely on any terms would
borrow? Are men, worth thousands, to
be seen bidding and squabbling for petty
sums at high rates apparently? Why
it would seem as an admission of tempo
rary insolvency. :.


| wish to make this assertion positively
on the foregoing demonstration, as on it
undoubtedly hinges the whole thing, viz
that rates will not be kept up.


Again, money is worth greater premi-
um for the longer time; yet to get the
first borrowers off at & per cent. rates
must continually advance, as otherwise
with longer time and greater rate, an un-
equal share of the burden will be borne.
This must be clear to any one. Imagine
AS borrowing in the beginning of the
Association $1,000 at 40 per cent. bonus.
He pays interest on 800 for the whole
time, not one cent of which has he the use
of. B borrows later, at 30 per cent. and
only pays interest on $500 for shorter
time than A pays it ':on $400. Their
shares of stock are worth precisely the
same. This is great defect in this and
kindred Associations. 1t is clearly antag-
onistic to the truth that money for lon
ger period can bear greater premiums.


Building Loan has made up one half
his letter of matter within quotation marks.
He forgot, probably, that they should have
extended within six lines of the close of
his interesting communication. 1t may
have been an oversight, yet the fact of
his having changed and muddled the fg-
ures in his instance of the Practical
Working" leads to the uncharitable sup
position he intended all outside of quota
ton marks to be considered as original
Certainly it partly was. He changes from
the original by valuing hishouse at $4,000
instead of $4,000; he muddles when he
says that the simple interest on his rent