THE STANDARD. SATURDAY, APRIL 26, 1873.

Poverty Bay Standard, Volume I, Issue 47, 26 April 1873, Page 2

THE STANDARD.

SATURDAY, APRIL 26, 1873.

“ We sliall sell to no num justice or right: We sluill deny to no man justice or right.: We shall defer to no man justice or right.”

There is one subject, possessing a fund of importance second to none which can be brought before a young and thriving •community, which should no longer be delayed in being brought before our readers for their acceptance and adoplion. AVe allude to Building Societies. The formation of Building Societies is, we submit, the one lever of progress by which a very large percentage of the material wealth of our colonial itowus has been established ; the practical deductions from which is, that it as time-we put our own shoulders to the wheel, so as to aid, in working out the destiny before us. It can hardly be desirable in these latter days, when each development of liuman genius shows the benefit arising from co-operative associations, that we should undertake a self-imposed, and somewhat supererogatory duty of proving a preposition which is self-evident. With, all the evidences around us in support of the institution we now advocate, we think it to be a mere waste of time to assume that it requires much, -or, indeed, any argument beyond that of ways and means, to be brought to bear upon our proposition that it i&essentially necessary to form a Gisborne Building -and Mutual Investment Society, or some kindred fiscal association, forthwith ; and it seems to us that the .present is a most acceptable time to begin. Wealth is coming into the district unnoticed ; capital is accumulating unperceived, and null seek for investment go soon as opportunities offer for Its profitable employment. The diligent labor, of the prudent and thrifty requires stimulating-; the energies of To-day should be -husbanded for the ■coming morrow’; and ■we feel that these great engines of modem -advancement .are the disiderata Jicce#sarv to the prosperity we are all striving for.

We have been to some little trouble in accumulating facts and data which it would be necessary to consider well before finally entering upon such a scheme. We have before us the reports of three Dunedin societies, and also those which most of our readers are aware, have .been successfully worly/d in Napier. These reports are at the disposal of anyone desiring to •post himself up in the matter. For our part we incline to those societies that are at once simple in their operation andeheaply worked. There are 4we kinds; one is the Terminating Society, which closes, when the funds or rather the funded assets of the society, represented by the subscribed shares, have attained to a prefixed value. For instance the Napier societies started with a four years’ existence by paying 2s per week per share; at the end of which the shares would be worth £2O 16s; when perforce the payments cease, and the society expires by effluxion of time. In the Permanent society, the membership only ceases when the member with-draws—-the society continuing its functions aud operations to an indefinite period. The principle, however, running through the operations of the two is the same, and may be shortly stated to be that of joint stock companies associated to advance money to their members, who engage to conform to certain conditions as to the repayment of the money so advanced. Co-evally with the consideration of this question, there is one very important provision which Mr. Gisborne has promised to secure to building societies by legislative enactment at the coming session of the General Assembly. That is the hypothecation of life policies to building societies, so that both they and their members may be placed on a more secure footing, relatively speaking. The initiation of this principle is due to the endeavors of Mr. M. W. Hawkins, the indefatigable Secretary of the Union Permanent Building Society at Dunedin. In a letter to the Government Annuity Commissioner that gentle nan says :• —

The following will represent file operation:— Mortgage for £lOO, repayable by 60 monthly instalments, to cease in ease the mortgagor should not so long live. Mortgagor .aged 40 next birthday. Died after making 24th payment. Society would receive the policy money, £lOO, and after deducting the redemption value of 36 payments, £77 10b would pay to the heirs, &e., of mortgagor, £22 10s, and grant to them a reconveyance ctf property mortgaged. It will be obvious that the operation, while advantageous to the borrower, would in case of death be profitable to the society; but no more than is fair and reasonable for the profit ®nd the responsibility of attending payments, and for remunerating it for loss of interest between the death of mortgagor and payment of the insurance money. The subscription money of such mortgage, without insurance, would be £72 12s. The ollliee assets would be £6B 3s.

We need not say ■that we cordially endorse the sentiments herein expressed, and trust that the matter will receive such a consideration at the hands of our fellow settlers as will tend to an immediate organization of what will—nay, must, under good management, be a prosperous society. We purpose, in future issues, to reprint such evidence as we have at command in support of that which we cannot too warmly commend to the community for their perusal.