BUILDING SOCIETIES.

Poverty Bay Standard, Volume II, Issue 119, 7 January 1874, Page 2

BUILDING SOCIETIES.

Mr. C. K. Chapman, it son of Jndtxe Chapman, recently delivered a public lecture at Dunedin, on the subject of Building Societies. From the address we gather the following facts:—“ That the first Mutual Investment Building Society was founded in 1815, under the auspices of Earl Selkirk. Very shortly afterwards there were other societies, of similar character which although not bearing the names of building societies, were the same in principle, viz, on the co-operative system. During the last few years these kind of societies have increased aniaz--1 ingly in Great Briain. At the present time there are between three and four thousand in that kingdom, and they are still increasing at a rapid rate. Their total income is estimated at over ten million per annum. Some of the individual societies haveeach an income of £lOO,OOO. At home, in addition to building societies, building companies are now beginning to appear, with very large capitals. By-and-by the day will come when these companies will be established here. Mr. Chapman then proceeds to explain the working of building societies generally, but especially of the newly - started “ National.” The great advantage is that they give people an opportunity of home of their own and settling down. Very few among the working classes appear to know much about such societies. The lecturer defined the difference between terminating (or temporary) and permanent societies. The terminating ones close at the end of a certain time—when the amount of shares is paid up ; the others continue from year to year, and can be joined at any time. Such societies were the best investments tor small savings that could be found declaring a bonus at stated periods to the investors ; that is to those who do not borrow for building purposes. In this respect the “ National ” differs from others, as it is not only a building but a strictly investment society. Mr. Chapman stated that this society had succeeded beyond anticipation. He called especially upon the exponents of temperance to become members, and obtain houses for themselves instead of paying away their money in rent. Few people could be found who would pay for the use of borrowed furniture, yet nearly everyone paid for borrowed houses, when by joining in a building society they could soon become their own landlords. Why, for the small payment ef a guinea a month a man might have his own little cottage and plot of ground, the payment for the same extending over a series of years, and coming to far less than the rent of the same. Mr. Chapman then compared the insurance companies with the building societies, and drew a comparison very favorable to the latter. For instance, any person payinn £2 10s, a month into the National Building Society would receive at the end of six years the sum of £250. Neither were these companies speculative like joint stock companies ; the profits were steady and certain without fluctuation.