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each man to pay off his loan as soon as he can. He may, therefore, pay it up in five years, or one year, or even in one week, if he wishes. For the same reason he may pay off his loan at any time whatever. The minimum payment only being fixed, he may pay at the time the whole balance due on the loan and have it cancelled, paying interest of course only up to the date of cancellation. A borrower may also, at any time, pay up one or more of his shares, and have the amount credited on his loan and interest stopped to that extent.

Fourth. As to the distribution of earnings: Under this plan it is a very simple matter. Every six months the earnings are ascertained. As they consist almost entirely of interest paid, this is soon done. Out of this first comes the expenses. Then the Ohio law requires that 5 per cent be set aside to a fund out of which all losses are paid (when, however, this fund reaches 5 per cent of the outstanding loans this is no longer required). The balance is then divided among all the members in proportion to the amount standing to the credit of each member. The amount standing to the member's credit at the beginning of the six months, unless since withdrawn, is the basis of the distribution, but an allowance is also made to members on the required payments made since that time. On all running stock this dividend is credited to the member's account, and thereafter is regarded just the same as money paid. On all paid-up stock the dividend is paid in cash. The exact money value of each man's stock being thus ascertained at the close of each six months, the matter of withdrawals is also made casy. The amount in the loss fund represents the risk in the outstanding loans. Every man's account is therefore worth its face. He is, therefore, allowed to withdraw any or all of the amount standing to his credit, dividends and all, by giving two weeks' notice, provided the money is in the treasury. If it is not, his notice is filed and he is paid in his order as fast as the money comes in.

It will be further observed that in the above method of ascertaining and dividing the earnings the number of shares a man holds cuts very little figure. The money paid in on them is the basis of the calculation for dividends. This has a most important side effect. The money actually paid in by a member, not what he ought to have paid, as in the older plans, is the basis of dividends. It is, therefore, no longer necessary to insist that a member, not a borrower, should make the payments his shares call for. No attention is, therefore, paid as to whether a non-borrower pays up or not. If he does not it is his own affair; nobody but himself is the loser. Neither are fines ever assessed on the non-borrower. No attention is paid to him except to adjust his dividend in accordance with his payments. The effect of this has been surprising. Nobody can estimate the number of people who have been deterred from joining building associations by the fear that they might not be able to keep up their payments after they were in, and would be fined and otherwise mulcted in consequence. They were the very best and most prudent people, too. The ignorant and the thoughtless may be induced to assume burdens which they are not sure they can carry, but the intelligent and the thoughtful will hesitate. At any rate this fact, together with the ease and certainty with which money may be withdrawn, and also the further fact that no initiation fee is required, has led to a regular stampede to join building associations in the city of Dayton. Over 10 per cent of all the people in the city, men, women, and children, belong to this one association alone, and there are a number of other good associations also.

illustrated than by comparing the population of the city with the number of members of the various associations. The population of the city in 1890 was 65,500. It has been growing rapidly since, but an outside estimate would hardly give it over 80,000. The membership in the various associations on January 1, 1893, was 19,886. Of course in a few instances the same person is a member of more than one association, but, nevertheless, the figures are almost startling. Probably more people belong to such associations in the city of Dayton ir: proportion to its size than in any other city in the world.

The rule as to fines need not be so strictly enforced even against borrowers as is necessary under the old plans. The borrower gets credit for only what he pays, and if the security is ample the society suffers no pecuniary loss if he does not pay promptly. Consequently, fines are seldom assessed to any great extent. The association before named collected only $160.30 in fines in 1892, although its gross receipts were over $1,800,000.

It only remains for me to answer some queries which will naturally arise as to the bookkeeping. It is undoubtedly true that in small associations the labor of keeping the books is somewhat increased under this plan, as an individual ledger account must be kept with each member. On the other hand the books are ever so much better even in a small association, and it is wholly impossible to keep correct books in an association of any size under the old plans. It is almost impossible to give any satisfactory explanation of the methods of bookkeeping in any reasonable space. Î'hey must be seen to be understood. In general, however, a weekly payment journal similar to those always in use is kept, in which is entered all payments in the proper column for the current week and opposite the name of the member. It is ruled to last six months, and at the end of that time the amount paid is transferred or posted to the individual account of the member in the ledger. There is, however, this difference: The weekly payment of the borrower is not separated into dues, interest, fines, etc., in this journal. Only the bulk sum paid is entered. The interest, fines, etc., are charged every six months to the borrower's individual account in the ledger, and when, at the end of the six months, the bulk sum of his payments is also posted to his account, a balance is struck. This is an enormous saving in bookkeeping and in handling cash. The weekly payment is the same for both borrower and non-borrower, being 2i cents on each share of stock. It is even money also, and avoids the handling of much small change as is necessary when the payment is separated each week, the interest nearly always comprising odd cents. The semi-annual dividend is credited to each man's account in the weekly journal as the first payment of the six months. Of course many other minor details are not touched upon, but they are only such as would naturally suggest themselves to a bookkeeper. In a large association a greater subdivision of accounts can be made, each with its appropriate book, and intricacy be thus further avoided.

The special tables lettered from A to Q, inclusive, which have been analyzed in the preceding portion of this chapter, immediately follow:

H. Ex. 209_22

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23 23 Arizona Arkansas.

32 32 California.

125 124 Colorado..

42 Connecticut

15 15 Delaware ..

21 21 District of Columbia. 26 26 Florida

21 21 Georgia.

31 31 Idaho.. Illinois

631 Indiana. Iowa.

81 81 Kansas

71 Kentucky

131 131 Lonisiana.

26 26 Maine..

29 29 Maryland..

237 236 Massachusetts.

115 115 Michigan

72 72 Minnesota

82 82 Mississippi

30 30 Missonri.

349 349 Montana...

7 7 Nebraska

66 Nerada.

1 1 New Hampshire.

16 16 New Jersey.

286 286 New Mexico

5 New York

390 390 North Carolina

24 North Dakota

5 5 Ohio..

718 715 Oklahoma

1 1 Oregon

14 Pennsylvania 1,076 1,065 Rhode Island

6 South Carolina

48 47 South Dakota. Tennessee

61 61

39 Utah

5 Virginia

76 76 Washington.

14 14 West Virginia.

54 54 Wisconsin

39 Wyoming..

6 6 Total

5,598 5,579

37 16 17 181

2 18

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4 District of Columbia. 3

3 Florida

2 Georgia..

12 12

12 Illinois

38 38

37 Indiana.

16

16 Iowa..

8

8 Kansas

1

1 Kentucky

17

17 Louisiana

2

2 Maryland.

3

3 Michigan

3 3

3 Minnesota

15 15

7 Mississippi

2 2

2 Missouri.

17 17

16

1 Montana.

1 Nebraska.

4

4 New Hampshire.... 1 1

1
a One 30 years, one 33 years, and one 38 years.
bOno 30 years, one 33 years, one 35 years, one 37 years, ono 38 years, and one 12 years.

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Alabama....
Arizona
Arkansas.
California
Colorado..
Connecticut
Delaware
District of Columbia
Florida
Georgia.
Idaho.
Illinois
Indiana.
Iowa..
Kansas
Kentucky
Louisiana.
Maine
Maryland..
Massachusetts.
Michigan
Minnesota
Mississippi
Missouri
Montana.
Nebraska
Nerada
New Hampshiro
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania..
Rhode Island
South Carolina
South Dakota.
Tennessee
Texas..
Utah..
Virginia
Washington
West Virginia
Visconsin
Wyoming.

Total

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148 28 28 29 20 240 239 115 115 75 75 97 97 32 32 366 366

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1 1 17 17 288 288

5 5 418 418 25 25

6 6 721 718

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17 1,079 1,068

6 48 47 17 17 78 78

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One 30 years, one 33 years, one 35 years, one S7 years, one 38 years, and one 42 years.

TABLE B.-FREQUENCY OF ISSUE OF SERIES. [This table includes serial associations only, thoso operating under the permanent and terminating plans having been omitted for reasons that will be seen by reference to the explanation of the plans on pages 22 to 24.]

States and territories.

Quadri. Semi- An Bien.
Month- Quar-

Ir.

Total Not

serial ly. terly. month annu- Dual- nial regu. report

ly.
ally
ly. ly. larly.

ed.

associ. ations.

LOCAL.

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Alabama
Arizona.
Arkansas
California.
Colorado
Connecticut.
Delaware
District of Columbia.
Florida
Georgia
Idaho.
Ilinois.
Indiana
Iowa.
Kansas.
Kentucky
Louisiana
Maine.
Maryland..
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey.
New Mexico
New York
North Carolina
North Dakota.
Ohio
Oklahoma.
Oregon.
Pennsylvania
Rbode Island
South Carolina.
South Dakota
Tennessee.
Texas.
Utah.
Virginia
Washington
West Virginia
Wisconsin
Wyoming

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