SYSTEMATIC SAVING

Taranaki Daily News, 17 August 1935, Page 22 (Supplement)

SYSTEMATIC SAVING

“SOLVING PROPERTY FINANCE.” Referring recently to the building society movement, the former Prime Minister, of England Mr. Ramsay McDonald, made the following statement—- “ For its value as an easy, safe and reliable means of saving and investment, for its assistance in solving in the best possible way the great problem of property finance, for its influence bn character, if only in \ts demonstration of the wonderful effects of the regular and continuous saving of small sums, the building society movement deserves the support of all people of good intent and goodwill.” The present position of the building society movement has been achieved in the compartively short period of 150 years from a very small beginning. The scheme' was originated by a Dr. Starr and his son-in-law, Mr. Bowkett, among a number of Thames' boatmen who were able to buy their boats by a cooperative means on the lines of the present building society system and the method was so successful that it was later applied to the purchase of cottages by groups of interested persons. Building societies grew rapidly and in 1836 a special Act was passed for the separate regulation of such organisations. In the next 14 years over 2000 societies operated in Great Britain and their popularity was attributed to the fact that members could obtain their homes on the most reasonable borrowing conditions. These British societies have shown remarkable growth in the past few years and recent statistics reveal that m England they advanced the sum of £103,192,000 on mortgage during one ybar white accumulated reserves and undivided profits totalled £24,000,000. The aggregate income for the year under review was £177,000,000 while the total assets of these societies reached the large figure of £555,000,000. , ... . The habit of thrift and the providing of an unencumbered home do not come easily to the majority and it is here that building societies fill a need. Full use is made of the principle of , systematic payments and in addltl ° n ’ while the member is thus accumulating a substantial sum to his credit which will earn him a share of profits he has the opportunity of winning a free of m tXt ballot loan. This free of interest Um if not used by the member for buying or building a home or paying off an existing mortgage may be «>ld at a handsome cash profit to himself. Other means of obtaining loans are made available to those members who do no. wish to wait until they are successful in

the ballots. Thus mortgage finance is made readily available. i An interesting folder just issued by the Northern Co-operative Terminating Building Society describes how cooperative groups of members are formed to arrange for regular and systematic saving and mortgage finance on these lines. Of further interest to Taranaki residents in the establishing of a local agency for the convenience of those taking up shares, and for receiving the subscriptions of the members. Mr. A. E. Moss, room 5, bank of N-S.W. chambers, Devon Street, New Plymouth, has been appointed the Taranaki agent.*