BUILDING SOCIETY.

Westport Times, Volume VIII, Issue 1159, 17 March 1874, Page 4

BUILDING SOCIETY.

[westpout evening star.] The preliminary meeting held last evening, (Monday, 16th inst.), for the purpose of considering and devising Avays and means to establish a local Building Society, attracted a numerous gathering. The subject is important, the time for such action has arrived, and the almost immediate benefits to follow the initiation of such a society are so self-evident that very few words of conviction or argument are required, to prove that the step decided on being taken will he good for this community in the fullest sense of the word. The objects of Building Societies are manifold, but all tending in one direction, the encouragement of thrift. Under the provisions of the " Building Societies Act, ISGO," stock or funds may be raised to enable members to purchase freehold properties, by means of moderate monthly contributions and with immediate possession, those possessed of land are assisted to erect buildings thereon, loans may be granted on the security of freehold property and repaid by periodical instalments, members contributing monthly payments may, when need arises, obtain loans on the security of their scrip, and opportunity is afforded for the safe and profitable investment of savings and the accumulation of small sums of money gaining good interest. The successful working of a Building Society depends upon two things—the willingness of the public to become investorsof small sums periodically paid into account, and the demand for buildings in the locality where a society may be established. In Westport both essentials are assured. The investment of about ten shillings per month per share will come within the means of all people, and the demand for house property is every day increasing. An illustration of the working of the system may interest those who have not hitherto thought much of Building Society schemes. We will suppose that when 200 shares are taken the society is registered and operations commenced. When the monthly subscriptions paid in amount to say £2OO, that amount is lent to the shareholder who will 'pay the highest bonus for the accommodation and on security of freehold property, or if he needs it for building purposes on the security of the building, advance payments arc made as the erection of the buildiug progresses. The borrower repays the loan and interest by monthly instalments, extending over an interval ranging from three to ten years, and has, during that time, to also keep up his payments as an investor until such shares, and the interest accruing to him thereon reach the amount borrowed. He then has the choice of permitting the shares to stand at interest or be paid in redemption of the mortgage money due on his property. A man of small but certain means may thus calculate to pay for a house he has erected within a certain number of years, getting monetary accommodation from the society on easy terms of re-paymentand at a fair rate of interest, and also obtaining ft refund of a portion of the

interest he pays by sharing in the annual profits of the society's business. By the system of monthly payment of subscriptions by investors and monthly repayments by borrowers, the Society has constantly accruing sums of money for investment, and thus obtaius interest and compound interest without usury, and whenever the demand for monoy ceases among the members of the society, the trustees have power to invest on approved security, as they also havo power to borrow when the demand is in excess of accumulating funds. To non-borrowers, that is subscribers who merely pay in thoir money as an investment, the advantages are very great. The books of the society arc audited annually, and the profits arising are carried to the credit of the investing shareholders pro rata to the number of shares held. AVhcn the monthly subscription aud added profit on a share amounts to a fixed sum, say £SO, the subscription ceases, and the shareholder becomes entitled to a fixed rate of interest thereon, or he may withdraw his money. So also at any time by giving a month's notice he may withdraw his deposits with all interest added thereto up to the last yearly balance.