BUILDING AND LOAN ASSOCIATIONS MAKE 

 BOTH MEN AND CITIES. 



HERBERT FRANCIS DeBOWER. 



[Herbert Francis DeBower, lawyer and publisher; born in Wisconsin in 1873. Gradu- 

 ated University of Wisconsin, 1896. After a year at Madison, Wisconsin, he forsook 

 the practice of law to enter the publishing world. He went to New York city and 

 reviewed several articles that later appeared in the American and English Encyclo- 

 pedia of Law ; during this time he made a close study of the law of building and loan 

 associations and later gained practical experience in the sale of building and loan 

 stock; he has been an extensive traveler, having visited every state and territory in 

 the United States, Mexico, Canada, and the Insular possessions ; is president DeBower- 

 EUiott Company, Chicago.] 



From its first night's business meeting a building and loan 

 association becomes a modified savings bank, in which at least 

 one member ought to be able to borrow $1,000 at 6 per cent 

 per annum, taking the money away with him to put under his 

 pillow if he so wills, regardless of the business day and banking 

 hours. 



This statement, however, would make it necessary that 

 100 members be in attendance, holding 1,000 shares of the 

 stock at $200 each, on which $1 a share is the monthly due 

 of the member. In one way or another the man who would 

 get the $1,000 loan would have paid for the privilege in cash, 

 or would have proved his luck by lot. And the ninety nine 

 other members of the organization would disperse lighter in 

 purse, but satisfied. 



Considered as a form of banking, however, the whole 

 transaction is the apotheosis of simplicity. No place of busi- 

 ness has been necessary. There is no burglar proof safe in 

 the furniture and fixture accounts. There are no fireproof 

 vaults for the storage of the concern's books. No cash is left 

 to tempt a dishonest cashier or teller. No possible run on the 

 institution could wreck it. There are no idle, uninvested 

 funds to vex the management. One man has $10 of his own 

 money and $990 belonging to the other fellows, and, as long 

 as he pays his $1 a share in dues and keeps his interest up, the 

 whole 100 membership is in a fair way to earn its 10 to 14 per 



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