SOCIETY’S MANY ACTIVITIES

Southland Times, Issue 23513, 20 May 1938, Page 9

SOCIETY’S MANY ACTIVITIES

GREAT VOLUME OF BUSINESS v RESIDENTS AIDED TO OWN THEIR HOMES The great progress made by the Southland Building Society-since its formation 69 years ago, makes a brilliant chapter in the history of the building society movement. For some time it has held the unique' position of being the largest building society in Australasia, and year by year it continues to make new records in business conducted. Since beginning business, the society has lent no less Than £5,613,822, and last year the advances on mortgages, shares and debentures amounted to £587,512. During its first 50 years, the society advanced £1,136,126 and the amount to date is £5,613,822. The amount on current mortgages is now £2,610,392. Although there are no fixed capital shares, there are 158,401 shares of an ultimate value of £25 each, which represents £3,960,025. On these shares members have paid £1,172,897, leaving a balance yet to be paid of £2,787,128. This amount might be termed uncalled capital, although it is not fixed.

FINANCIAL POSITION Nearly £3,000,000, it is estimated, is pouring into the.coffers of the society in small fortnightly or monthly payments. I£ deposit money is added, more than £40,000 is received each fortnight. Each year constitutes a record., Following is a summary of the financial position at decade periods:—

The reserve fund of the society has steadily increased through the years. At the end of the first 10 years of the society’s existence it was £276; in 1919, the golden jubilee year of the society, it was £3517; by 1929, it had grown to £20,465; and in 1938 it is £40,000. The cost of management a share has decreased through the years —by how much is shown in the following figures: In 1879, the cost of management was 4/lj a share; in 1899, 4/-; in 1909, 3/2; in 1919, 1/11; in 1929, B|d; and in 1938, Bd. An analysis of these figures shows some remarkable increases. At the end of 50 years the total number of shares was 22,263; now, 19 years ’ later, there are 158,401. , Last year the number of shares on the register was 135,577, an increase for the year of 22,824, or more than the total number on the register at the jubilee year in ■1919.

The loans at the jubilee year were £360,655; they are now £2,619,392. Deposits at jubilee year were £122,518; they are now £1,402,302. The reserve in 1919 was £3517; it is now £40,000. An incalculable debt is owed the pioneers who devised the cooperative principles of the society, but to the present directors is due recognition for their positive and active watchfulness, a discrimination in enterprise which has brought about the wonderful results attained by the society in recent years. One of the objects of the society is to help members to own their own homes. Although borrowers are charged 42 per cent., the nett cost is very much less, because on their repayments, they are credited with the declared profits—profits which, incidentally, were this year 6J per cent. It is to the borrower’s own interest to keep his payments up to date and so participate to the fullest extent in the benefits.

6 o •p 1 © £ 3 u o £ If s lu W "O tn t/) o-d S< o Pl o g » <n o >< 3 Q a £ £ £ £ 1879 47,002 12,527 3,433 14,455 1889 71,426 19,914 4.989 57,046 1899 67,778 16,455 4,998 87,943 1909 165,815 65,076 10,221 120,566 1919 360,655 122,518 22,263 215,619 1929 1,208,242 531,838 76,966 480,452 1938 2,619,392 1,402,302 158,401 715,085