APPENDIX. A. THE Constitution of a Co-operative Society for Building, which has worked well in Philadelphia, is explained in the following letters from Mr. Quincy and Mr. Davis. MODERATE HOUSES FOR MODERATE MEANS. I would now call your attention to a communication sent to me by Edward M. Davis, of Philadelphia, describing the workings of an association of which he is president, calculated to aid the frugal and industrious in securing homes now payable out of future earnings: It is called a Building Association, but should be called a "Co-operative Deposit and Loan Company," as it does not have homes built, but does receive and loan money. There are 74 members and 1,000 shares. None of the officers receive pay, except the secretary, and he only $2 a month. The treasurer gives bonds for $1,000, but seldom has over $ 50 to $100 on hand, as the money is generally loaned the same night it is paid in to the association. We meet in a schoolhouse and have no rent to pay. Fuel and a janitor costs us about $15 a year. It is conducted for the benefit of the members, and not for the benefit of the officers, as is the case with many loan associations. The receipts of the association are: — 1st. "Dues" of members, consisting of fifty cents a share, payable monthly. 2d. Fines of five cents a share each month as penalty for failure to pay punctually. 3d. Premiums on money loaned paid by members who borrow. 4th. Interest received monthly at the rate of six per cent per annum on money loaned. When from these sources the shares are worth $100 each, a distribution is made in the proportion in which the stock is held, and the association comes to an end. Only members can borrow money. Each one can borrow $100 for each and every share, but not over $ 1,500 at one time. The borrower must give to the association as security a first mortgage on real estate for the amount borrowed, and if there are buildings, they must be insured and the policy transferred to the association. The borrower must also transfer the stock on which he borrows; must pay the premium cash; pay his dues and interest punctually, and all expenses of conveyancing. -Our association was started twenty-two months since. As fifty cents each month has been paid on each share, the amount paid in is $11, but the shares are worth $14.10; the difference has been made out of premium, interest, and fines. Judging from the operations of other similar associations, by the time $ 60 has been paid in by members as "monthly dues,” the shares will be worth $100 each; that is, the association will hold claims on the real estate of the members, and cash on hand, amounting to $100,000. The loans are made by the president, stating that there are say $500 in the treasury, but that he will sell $1,500 if it is wanted, payable out of the first money in the treasury. Some one is willing to pay five per cent premium for it, another eight per cent, others more, and so on until it reaches say twenty per cent. The buyer has fifteen shares, and says he will take the $ 1,500. He gives security for $ 1,500, and pays interest monthly on the $1,500, but the premium of $ 300 is deducted and he gets only $1,200 in money. His monthly dues are $7.50 and his inter |