1893 - State Library Information Center

CO-OPORATINE BUILDING AND LOAN ASSOCIATIONS. 455One more subject I wish to touch upon, though it does notcome properly within the scope of my subject, but is connectedwith the well-being and success of building and loan associations,and that is the matter of frequent auditing of accounts.Once a year is not often, enough for even a small association.Tour memory cannot hold the details of loans, refunds, transfers,•division of profits, &c,, so long; and if an error occurs who ia tocorrect it ?I have no word to insinuate against your secretary, but mistakesoccur, and you can remedy them by auditing the statementit is yet fresh in your memory. In large serial associationsthe accounts should be audited every month. How any directorcan audit the books of an association running ten to twelve activeseries, loaning money on the gross premium plan, once a year I••cannot understand. If you have any business and wish it to attainits highest possible success, you must keep in touch with its everydetail and not be content with getting your information in regardto ifc at Becond-hand, no matter how able and trustworthy yourassistant may be. We have found in our association that it i8advantageous to publish a monthly statement, as it gives a knowledgeand confidence, besides a publicity to our affairs whichattracts and holds our shareholders.The ideas I have presented to you are not those of a theoreticalexpert, but those of a plain worker who has had fourteen years'-experience in building and loan associations in Bayonne, most ofthat time as a director, and are the result of the education thusgained.APPORTIONMENT OP PROFITS IN BUILDINGASSOCIATIONS*For years I have contended that the bookkeeping of building.associations should be grounded upon the same general principleas that of any commercial business. There will, of course, bemodifications in method, but that which would be radically wrongin commercial business must be equally wrong in building associations.This contention of mine has been so violently opposedin Philadelphia that I have rarely had an opportunity of clearlygetting forth my reasons, and it was with great pleasure I accepted* By Prof. James Warrington, Philadelphia. ' •'•