AMAZING PROGRESS

Sun (Auckland), Volume II, Issue 527, 3 December 1928, Page 13

AMAZING PROGRESS

BUILDING SOCIETIES ABROAD AUCKLANDERS INVESTIGATIONS Interesting facts relating to the amazing progress made by building societies in England, Europe and America were gleaned by Mr. David Pollok, Secretary of the Northern Building Society and a director of the Dominion Banking and Investment Association, who returned on the Niagara this afternoon. Mr. Pollok has completed a tour lasting 10 months. during which he travelled extensively and made a special study of building society affairs. After leaving New Zealand he went to Australia, where he visited many of the leading concerns. He continued on to Egypt and Italy, where he was the guest of the Banca Popolare at Milan, and addressed a conference of cooperative investment associations in. May. OLDEST OF ALL The Banco Popolare, he told a Sun man, was established in 1868 by Luigi I.uzatti and-was the original institution of its kind. At the end of the first year the total funds amounted to £ 10,000. In 1927 the total funds were £58,000.000. Its operations were restricted to an area of 10 miles from the centre of Milan. During the period mentioned its membership had increased from 1.153 to 43.440. and the dividends ranged from 5 per cent, tp 12 per cent. Mr. Pollok then visited Switzerland, where he visited the head office of another institution named the Banco Popolare at Berne. It came into existence in 1869 and. at the present time, its funds had increased from £1.600 to £50.000.000. while its membership had increased from 177 to 55,654. Its dividends or interest runted from 5 per cent, to 8 per cent. Tor the past few years it had remained at 6.19 per cent., anti a good balance had been carried to reserve fund. IN ENGLAND After travelling through France. Belgium and Holland, where he continued his studies and investigations. Mr. Pollok proceeded to England, where he was the guest of the Building Societies Association of Great Britum. and attended the annual conference at Torquay. , Tho figures supplied him by me association were no less illuminating. He learned that the membership on December 31, 1927. was 1.402,768. an increase for the year of 158.190. The income had increased to C 103.000 000 a difference of over £10,000,000 in the same period, and advances on mortgages had increased by nearly £5,000,000. The total assets were £222.000,000 an increase of £30.000,000 —and the undivided profits were £11,879,252, an increase of £1,546,678. LONDON ALONE In the London area alone the increase had been astounding. In a year the income had increased by £4,500,000 or 37.7 per cent., and advances had increased by 38.1 p« - r cent. Total assets had increased by 37.2 per cent, and accounts by 32.2 per cent. The figures outrivalled Yorkshire, the home of building societies. In addressing the conference, Sir Enoch Hall, president of the association. said that during the past five years, building society operations had. increased in all principal departments by over 100 per cent. There had been as much progress during those five years as in the preceding 75 years. Ail the English banks were assisting in every possible way and were recognising the soundness and importance of tho socieies. There was no rivalry, and the relationship was one of mutual benefit. U.S.A. PROGRESS From England Mr. Pollok went to America, where, for two months, he made an exhaustive study of building society conditions. He attended a conference in Ohio and was appointed a member of the International Committee of the U.S.A. Banking and Loan Centennial, 1931. He is the only oversea's member. The progress and development of the movement in the U.S.A. was even greater than in Great Britain. In 1922, the total resources were over three billions of dollars. In 1927 they were over seven billions.