The Manawatu Standard (PUBLISHED DAILY.) The Oldest Daily Newspaper on the West Coast. MONDAY, MAY 4, 1885. BUILDING SOCIETIES.

Manawatu Standard, Volume IX, Issue 127, 4 May 1885, Page 2

Manawatu Standard (PUBLISHED DAILY.) The Oldest Daily Newspaper on the West Coast. MONDAY, MAY 4, 1885. BUILDING SOCIETIES.

We notice from the Woodville Examiner that a building Society is about to be established m that rising town, and if properly managed should prove a very great boon to the district. In our opinion no institutions so encourage thrift, or prove more advantageous to the working classes. There must be thousands of persons m this Colony who owe the possession of their freeholds to the special facilities and advantages offered by these institutions. By paying a little more than a rental interest and principal are discharged simultaneously, and at the end of the term the shareholder is his own landlord. Of course, m a great number of cases, the payments fall into arrears, and finally with fines and calls aggregated, all the amounts paid m are forfeited. But !his fact does not diminish or detract from the usefulness of the institutions. We think the great mistake too often made lies m either getting too large advances, or m having the term too short, thereby rendering the payments too heavy a burden, and should work be slack, or illness supervene, or from any other cause temporarily crippling the shareholders financial position, he runs a risk of sacrificing the fruits of some years of industry and self-sacrifice. But, generally, m such cases the Societies do not press harshly on the unfortunate defaulter, who is (m arrears m his payments, but give him an opportunity to recover himself. Some persons make the attempt and succeed, others make it and fail, and others again give up m despair. We now and again hear persons decrying and denouncing Building Societies, and instancing cases m which they have brought ruin to those using them. We venture to say that m the majority of cases, it would be found on investigation that the chief fault lay not, with the Societies, but with those who had foolishly undertaken heavier pecuniary responsibilities than they could reasonably expect to be able to discharge. To the investors large dividends are paid, chiefly accruing from the failure of shareholders to keep up payments, when the properties fall into the hands of the Societies. Of course, fines and other penalties all go to swell the investors' 1 profits. But to the man who borrows with the object of making himself a freehold, and who is determined to avoid at all risks falling m arrears with his payments, to practice frugality and self-denial if necessary ,and combines industry with perseverance and sobriety, Building Societies are a great boon, and often pro ire a help to the acquisition of property, which could not have been done m any other way. To the steady and frugal these institutions are a real benefit, but by the reckless and improvident their value cannot be appreciated, as their true aim and legitimate objects are not understood and consequently those having re» course to them neglect the observance of those rules and principles which must be acted up to, if the desired results are to be achieved, viz., the eventual acquisition of a freehold. . , ;: .