HAVE YOU EVER BEEN TOLD How the five million American men and women have accumulated Two Billion Seven Hundred Million Dollars ($2,700,000,000) through mutual organizations which work so quietly that they seldom attract the attention of those who are not members? These institutions help you to save money under a co-operative system for: Through this idea of co-operative help, more than a million American homes have been acquired on easy monthly payments. Untold numbers have saved their first thousand dollars with which to enter business, educate children, or for protection in old age. In no other way can you accumulate savings with such safety, availability and earning power as in the Installment Membership Shares of the Los Angeles Mutual Building and Loan Association. The real Building and Loan Associations, under the supervision and control of the State of California, must not be confused with "Building Companies," "Investment Companies," "Home Builder Companies," etc. We are a mutual, co-operative, money-saving and money-lending association, chartered, supervised, inspected and controlled by the State of California. THE LOS ANGELES (CAL.) MUTUAL BUILDING AND LOAN ASSOCIATION, HIS MAJESTY, THE BABY. The Kansas Reserve Building and Loan Association, of Topeka, seeing that the school children, the young swains and the old folks were all receiving attention, resolved that "his majesty, the baby," should not be overlooked. So whenever the stork makes a delivery they forward to the hoppy parents a copy of the following letter with a glittering new Lincoln penny attached to the top: “Mr. and Mrs. Soandso: DEAR PARENTS-The Kansas Reserve Building and Loan Association sends congratulations. The coming of baby starts new aspirations. As you plan for and watch the opening of this little "Rose Bud," we want to be a factor in Alice's success in life. It may be looking a long way ahead, to anticipate this "little one" teaching school, or in business, but is not this the way to be ahead, by starting a savings account with us for her? This Lincoln Penny will remind you it takes money to obtain an education, and while our splendid schools start her out at a low cost, would it not be wise to have a savings for a technical training, or business college course? When Alice gets old enough she can come to 824 Kansas avenue, too, or to our New Modern Banking and Building and Loan Home, with the monthly savings and learn business ways, and get acquainted. Please accept our wish for continued health to Baby Alice, and both of you. R. T. S. (Ready to Serve).. Yours in anticipation. CHAS. E. ELDRIDGE, Secretary. AN ATTRACTIVE BOOKLET. The Jackson Building and Loan Association, of Huntington and Ravenswood, W. Va., is issuing some attractive literature. The latest is an attractive 16-page illustrated booklet that gives, in a succinct form, all the advantages offered by a building and loan association. C. H. Wetzel, secretary and treasurer. "THE WORK WE DO AND HOW WE DO IT” Is the title of a twelve-page booklet issued by the Jackson Homestead Association, of New Orleans, of which Mr. Geo. de Lucas is secretary. All the advantages of a building association, from saving money to homeowning, are set forth in an understandable and practical manner. As one of the captions puts it: "When distress calls, the Jackson pass-book answers 'Here!'" HOME SOMETHING TO STRIVE FOR. Instead of rent receipts, why not a deed to the property? Real estate is recognized the world over as the best, surest and safest investment. More fortunes have been made from real estate than from any other one source. Real estate is the foundation of wealth. Whether you realize it or not-the tenant pays for the house he lives in every ten years, in rent. Why not get the deed? You cannot afford to live in a rented house. While you are paying for a home under our plan you are living in it and saving the rent money. A plan has been devised which makes it not only possible, but easy, for every rent-payer to own his own home, even though his income is limited. In fact, this plan was devised to assist those of moderate means. CALCASIEU BUILDING AND LOAN ASSOCIATION, Lake Charles, La. "The American Home, the Safeguard of American Liberties" The American Building Association News A Newspaper devoted to the interests of Building, Loan and Savings Associations. OFFICIAL ORGAN UNITED STATES LEAQUE. OFFICES: 15 WEST SIXTH ST., CINCINNATI. S. W. COR. ADAMS AND DESPLAINES, CHICAGO. WEST COAST DEPARTMENT: 401 VAN NUYS BUILDING, Los ANGELES, CAL. CANADIAN AND FOREIGN, $4.00 SUBSCRIPTION, $3.00 PER ANNUM. 30 CENTS A COPY. Entered as Second Class Matter at the Post Office at Cincinnati, O.. SINCE 1880 THE RECOGNIZED AUTHORITY ON BUILDING ASSOCIATION MATTERS. Vol. XLII. OCTOBER, 1922 No. 10 THE A New Competitor. HE building and loan, as an institution, is passing through an era of unusual development. Their usefulness has never been demonstrated in such a striking manner as during the prevailing housing shortage, and their soundness has long ago been conceded. In ordinary times, in places where they were sufficiently organized, they were amply able to cover the field of home-building, but under the abnormal conditions existing at present, their resources were not always sufficient to meet the demands. It is not surprising, therefore, that other agencies are being created to engage in this work. Some-a few-are legitimate efforts while many of the rest are parasites, organized to make some easy money on the strength of the reputation enjoyed by ligitimate building and loan associations. In some localities there is reason to believe that the directing heads of the building associations have not been wide-awake enough to keep abreast of the times. They are still clinging to methods and practices that served their purpose twenty years ago, but are altogether out of tune with the needs and demands of the present. As a result their associations have not grown proportionate to the opportunities offered and their resources have not been anywhere near sufficient to meet the demands. It may be late now, but not too late to brush off the cobwebs. If that is not done we will in all probability witness more agencies springing up to take over the business of the building and loan associations. An agency of that kind which has adopted many of the salient features of building and loan associations and has added several others that are quite consistent and practical was organized recently in Los Angeles, Cal., as the Security Housing Corporation with a capital of $2,000,000. The purposes of the corporation are: First-To finance the prospective home builder, whether renter or lot owner, and furnish standardized plans, specifications, methods of estimating and cost accounting; aid in selection of home site; letting of contract. Second-To finance builders and contractors who have contracts with home builders, thereby making it possible for them to buy materials for cash. Third-To furnish a Building Supervision Service to the client, covering all his building problems and doing it on a quantity basis. Fourth-To enable any family that can accumulate 30 per cent in cash or property of their total intended investment in a home to build at once and have ten years' time to repay the loan in monthly payments. An officer of the corporation gives the following details: "Figures show that when the average four room house is constructed there is a loss of one whole room in the present cost of financing and credits. In other words, the man who builds a four-room house pays for a five-room house in financing himself, the lost room having dimensions of eleven by eleven feet. Add to this the fact that often the contractor is inefficient, there is further great economic loss to the community, and a slowing up of home building. The new organization goes further than providing the needed funds for the lot buyer and home builder. It gives expert service throughout the construction of the house. It checks the plans and specifications of the contractor to find what essentials have been left out, and then it checks the contractors' estimates to save the investor every possible item of expense. In other words, it acts as adviser and counsellor for the builder from the time the plans are designed until the home is ready for occupancy. The homemaker is here given the opportunity to secure his financial backing on a basis permitting him to repay a definite And there is left open In this way a sum each month, the sum decreasing. the privilege of repayment in full at any time. man may buy a lot and build a home and have an expense probably less than he is now paying in rent. The plan also covers the man who neither owns a lot, equity in a lot, nor has any savings. Under the corporation thrift plan he can enter into the home-owners' classification. It works also to the benefit of contractors, providing a means for them to buy their materials for cash and secure payment for their work on its completion." U. S. Comptroller On the Trail of the Three A Percenters. FTER looking into the operations of a number of three and four per cent housing associations doing business in the District of Columbia, Comptroller of the Currency Crissinger notified the heads of these concerns that they must incorporate immediately, as provided by the laws of the District of Columbia covering building and loan associations, or remove from the District. In reply, attorneys for the home loan companies have filed a brief with the treasury department opposing the ruling of the Comptroller, claiming that these companies are not building and loan associations, that the law referred to does not apply to them and that the Comptroller is therefore asking them to do what is apparently impossible. It is likely that legislation designed to wipe out of existence all such loan organizations is to ensue. Representative Milspaugh, of Pennsylvania, himself a banker and financial expert, has received a mass of information about the companies, and it is understood that he is framing a bill which would make the unincorporated loan firms illegal. Local bankers, building and loan association interests and real estate men are said to be backing Congress in this respect. It is estimated that Washington residents already have "invested" several hundred thousands of dollars in the loan associations, in the belief that they are bona fide building and loan associations. Bonds of the Land Bank of New York. The remainder of the issue of $1,000,000 gold bonds of the Land Bank of the State of New York, which has been taken by the Manufacturers' Trust Company and by Remick, Hodges & Co., of New York, is now being offered to the public at prices ranging, according to maturity, from $100.87 to $102.50. These bonds are legal investments for savings banks and trust funds and for state and municipal sinking funds in the state of New York. |