A fairly prosperous building society will mature its shares in twelve years, and at the end of that period the home would be free from debt. During this time the borrower must pay taxes and water rent, amounting to some $25.00 per year. The total payments would be about as follows:—
| First payment | $200.00 |
| Dues and interest | 1728.00 |
| Taxes and water rent | 300.00 |
| Total | $2228.00 |
This seems like a considerable sum of money for a house worth $1400. But it must be remembered that the borrower has lived in the house during these twelve years, and that he has saved in rent that he would have paid elsewhere, at least $1800.
| He has paid | $2228.00 |
| He has saved | 1800.00 |
| Real cost of house | $428.00 |
Now he is the full owner of his own home. During the next twelve years he will have nothing to pay but taxes and water rent, and possibly some slight repairs, at the most not over $400 all told.
His next door neighbor is still a renter, and pays $1800 to his landlord during the second period named; and the two accounts compared show:—
| Rent payer | $1800.00 |
| House owner | 400.00 |
| Saving | $1400.00 |
This is equal to a saving of, say, $10.00 a month for 144 months, and if used in the purchase of ten shares of building society stock would be worth at the time named $2000, instead of $1400 merely saved. The neighbor who is a tenant is still paying rent and owns neither a stick nor a stone, while the building society borrower owns one house free and also has the command of $2000 in cash, all on account of his house-owning experiment.
V. THE BANQUET.
It is customary for the directors of these societies, at their own expense, to celebrate the closing of a successful year, and have as their guests representatives from other societies. “The banquet” includes officers from fully fifty companies, some being directors of four or five associations. At these gatherings experiences are related and subjects for the advancement of the cause are discussed. Every individual present on these occasions volunteers the information that he owed all he possessed to the building society and its teachings.