1893 - State Library Information Center

162 STATISTICS OF LABOR AND INDUSTRIES.net assets. All of which indicates a considerable change withinthe past few years in the relative importance of the building andloan association movement in the different counties.The total gross resources of the 297 associations, as shown insummary 9 below, foot up $35,826,112, or $1,989,625 more thanthe net assets. In 1892 this excess amounted to $1,779,514, intotal gross resources of $31,769,281. As was then stated, theexcess "is due to the indebtedness of many associations, inclusiveof advance dues, unearned premiums, or of loans sold toborrowers beyond the legitimate income derived from share duesand debtors' payments. Loans generally are advanced in installments;but the face value of the mortgages is the full amountbid. Very often theae demands are satisfied, wholly or partly,by cash borrowed from individual creditors or the discountbanks, Canceled shares also frequently are liquidated in thisway, or they are left outstanding and the money which would goto pay them off' is loaned out to new borrowers. But none ofthese items is a part of the associational net worth, or net assets,which consist of the installment dues on shares in force, arrearagesand profits. The share-installment account constitutes aliability of the association to its shareholders, but is an indebtednessof an entirely different nature, legally, from that of theitems mentioned above. It is very questionable, also, whether abuilding and loan association, under the New Jersey statute, hasa legal right to borrow money, or to sell loans beyond its legitimateincome from shareholders and borrowers."The indebtedness, as explained, for 225 associations reportingin 1893, exclusive of net assets, unearned premiums and moneyundelivered to borrowers, amounted to $1,379, 421, which, probably,is very nearly the correct total for the State. The amountof unearned premiums, $167,732, owing to 38 associations, andthat of undelivered loans to borrowers, $393,042, by 96 associations,is more likely to be below the true figure, as no informationwas given respecting these items by a number of associations.This, probably, accounts for the fact that the total of allthese items of indebtedness, $1,940,196, is $49,429 less than theexcess of gross over net receipts, as noted above. In 1892 theoutstanding indebtedness, less net worth, unearned premiumsand undelivered loans, was $1,311,038 by 226 associations, or an