1893 - State Library Information Center

466 STATISTICS OF LABOR AND INDUSTRIES.if ever changed. It would not be difficult to devise a satisfactoryplan for determining the order in which loans should be perfeeted,which was the original reason for having fluctuatingpremiums. In this respect the so-called 4< national" associationsarc in advance of most of us, as it can at least be said of themthat they treat all their borrowers alike.Closely allied in spirit to the practice regarding premiums arethe rules in force in most associations regarding fines. Fewassociations charge less than ten per cent, for failure to makepayment at the required time, and in many associations this fineis repeated every month. Some penalty is undoubtedly neededfor careless or shiftless members, but it can hardly be claimedthat it is necessary to charge a rate which can be compared onlywith that, of the pawnbrokers. The system results frequently inthe withdrawal of non-borrowing members, with limitedresources, who are temporarily unable to continue their payxnents—aloss which oifaets much of the profits supposed toaccrue from fines. But proof of their profitableness is no argumentfor their existence where they are unjust and oppressive.It may be thought that a building association with small finesand but little income from premiums will not be attractive toinvestors. But it is not proposed to reduce the income of theaBsociation below the legal rate of interest, which is as much ascan be secured from any safe investment, And even now comparativelyfew wealthy men are found among our members, A.lower rate of interest on loans, with a more just penalty forlapses, would attract to our ranks thousands of men who are nowkept away by the unfortunate experience of other**, or who havingmade the attempt themselves were unable under existingconditions to continue to the end.A building association is more than a bank or a soulless corporation.With all its defects no other financial institution hasgiven the poor man such a chance. While many modificationsto the general plan may be suggested and many improvementsin detail are undoubtedly possible, none surely would add moreto the uselulness of the associations than such, as would jmakethem conform more closely to the spirit of the Golden Kule,