Year: 1876

= -tst O.
A. pays into this society as dues, pay
in one for every cent make as prof
its, ne makes one on the very day my
shares reach their par value, Mr.. A.
will be worth the same amount. I
claim, therefore, that absolutely the
only difference in Mr.. AS position
and mine is that during the period of
his membership of this association he
enjoyed the use of $1,000 Of its money,
for which he paid the legal rate Of in
terest, while l had not such use. If
there is any other difference, ! will be
grateful to any gentleman who will
point it out when I have taken my seat.


If time permitted I might also call
your attention to the case of Mr.. M.
who recently redeemed his shares, and
built a block osting$l,l00 He draws
SIG rent per month and he frankly
told me that by redeeming his shares
in the society he will in a few years
be the possesor of a property that ac-
tually never cost him a penny. The
great benefit we all derive in an Asso-
citation like this is, that the little saw
ings of members, both of those who
borrow and those who are not, is turn
ed over twelve times year for their
profit. This could not be done outside
of a cooperative savings bank, as I
believe this society practically is.


l find that the Social Science Con-
gress which recently held a session in
Philadelphia endorsed these views. I
will offer for your consideration short
extract from their proceedings as pub
lished in the New York Times:


Atthe evening session paper was read ON
The Character and and Advantages of the
Cooperative Feature of Building Associa-
tions,as compared with other plans ofsaving
In this paper comparison was made between
modes of organizing the ordinary saving
fund with preferred class of stockholders.
as distinguished from the main body of the
depositors and that of organizing the
building association on the cooperative
principle wherein all the membeIs were on
an equal footing as to capital, profits, and
responsibility, the object of the paper being
to bring out with greater force the demo-
cratic principle of government, as well as
the mutual and equitable features Of the
savings loan associations; its elevating and
educating tendencies, and the encourage
ment it gives to self dependence and self
confidence, oy causing the members to
think and act for themselves, and on their
own responsibility. The profit resulting
from one of these cooperative combinations
is very large, because all the profit can be OBJ.
tanned beyond the very slight cost of pro-
ducng it. What is technically called
loan is in reality an advance on the future
or ultimate value ofthe shares The agree
ment borrower virtually makes with the
association in his mortgage is not that he
repay the loan, but that he will continue
to pay his monthly or weekly dues and
interest until his shares are worth $500
each and when this point is reached the two
positions, debtor and creditor, are cancelled
The debt due by the stockholder is paid
with that due him by the association. By
this process of apportionment of profits
equitably to all the shares of stock into
which the capital is divided, the borrowers
shares receive portion of all the prfits ac-
cruing. In doing this the borrowers shares
receive their equitable advance, not only
of gain made on all other advances to men,
bers, but he actually receives back an equi-
table proportion of the premium and inter-
est paid on his own loan by himself BY
this means the actual cost of an advance
is reduced to the lowest rate per annum.


A community of intelligent, diligent, fru-
gal and contented workers, recognizing
fully the power and beauty cooperative ef-
fort, are like an army Of road-builders:
they improve the barren places of the earth
and make them to bloom and blossom as
the rose -....