by issuing paid-up stock to
non-borrowers. This is convenient at the beginning of an association
and when the movement in building is more active than usual. But if an
association has funds that cannot be loaned, outstanding paid-up stock
may be called in. In practice a large part of the paid-up stock as
well as of the running stock is subscribed for and held not by large
capitalists but by persons of small means, especially "the more frugal
element in the working classes." Non-borrowing members desiring
to withdraw may do so at any time under certain conditions; but to
safeguard the association, the laws usually require that thirty days'
notice of intention to withdraw shall be given, that not more than
one half of the funds received in any one month shall be paid on
withdrawals, and that withdrawing shareholders shall be paid in the
order of the notices of intention to withdraw.

The most intelligent and prudent workers were formerly deterred from
subscribing by the fear that sickness, unemployment, or other mishap
might make it impossible to keep up regular payments. Now, however,
fines for late payment have been almost entirely done away with. On
the other hand, extra payments may be made at any time by borrowing
members, to hasten the date when their shares mature and their debt
be discharged. These privileges are possible because of the method of
distributing earnings which will now be described.

Sec. 13. #The distribution of earnings.# Every six months is ascertained
the amount of the gross earnings which, under this plan, consist
almost entirely of interest paid on loans. From this amount are
deducted expenses (and in some states 5 per cent of the total is
placed in a "loss fund" to meet possible losses) and the rest is
divided in proportion to the amount standing to the credit of each
member, being credited to the account of running stock and paid in
cash to holders of paid-up stock.

The payment of dues is correspondingly simple. The dues at twenty-five
cents a week amount to $13 a year per share of $100. This is the whole
bill; there are no extras. The interest at 6 per cent (the usual rate)
is $6, and the rest, $7, is credited upon the stock. Thus at the end
of the first six months the member has $3.50 to his credit, and is
entitled to his share of the net earnings on that amount. Thus his
share of the earnings is steadily increased by compound interest, and
if he keeps up his regular payments the sha