In this country there are a number of building and banking loan associations which have established towns and villages through their financing methods. Some of the co-operative ones are most worthy and serve their purpose well in providing the workman with the means of building and owning his own home.

They lend their stockholders sufficient money to buy a plot of land and build a house upon it. By paying so much a month on account of this loan, in addition to the interest, the property holder gradually frees it from mortgage. In most cases the workman, after paying off, say, 50 per cent of the money he owes the association, is able to borrow the other 50 per cent outside at a lower rate of interest and for a long period, and pay off the association.

Other classes of building loan associations are those formed by a few men for their own benefit and of purely speculative character. These men buy large tracts of land and exploit them, selling them to workingmen, paying dividends out of the principal, and when they fail, leave no assets.