1893 - State Library Information Center

458 STATISTICS OF LABOR AND INDUSTRIES.bution of profits, each year's profits standing by itself as in anyordinary business. You will, of course, tell me that unless therebe this constant redistribution, year by year, the losses will sometimesfall heavily on tbe newer series to the advantage of theolder series, and • that such a method would be unjust to theyounger series. To this I reply that there is no business withoutrisk, and that building associations are more than mere partnershiporganizations; they are in reality pooling operations. Practicallythe money of one series is used to make money for theothers, and as this operation is constantly changing so that aseries which this month has no money to lend may next monthhave plenty, there is no real injustice done ; and, in fact, if youeliminate the pooling method you will very much contract theusefulness and also the profitableness of building associations,As I wish to make myself perfectly clear I will repeat what I maydesignate the terms of the problem.1st. Find the amount of capital which has been in use duringthe fiscal period.2d. Find the profit which this capital has realized during thesame fiscal period.Instead of abstruse calculations to find powers or any otherunknown quantity, you will simply do what any ordinary businessman does under similar circumstances, look at your capitalaccount to see how much you had invested at the beginning ofthe year. This in your case will of course be the dues, plus thegains to that period, and can be found without much arithmeticalwork. As an example is always better than a mere statement, Iwill take the case of an association which on the 81st of December,1892, balanced its books and distributed the profit madewith the following results:Series123456789Shares73786431481173378672407Paid in$108.0096.0084,0072.0060,0048.0036.00210012.00Value$154,51131.66110 6190.9372,9055.9540.5325.8912.47