a gain divided between taxpayers and lenders. The large amounts of Liberty bonds now are especially suitable for the small investor.
The general plan and principles of local building and loan associations was extended in 1916 to groups of rural co operators in the joint-stock land banks, enabling them to make loans to their members" ; and it might well be extended to groups of small investors, permitting them to hold real estate mortgages and bonds and stocks of corporations, free from taxation other than that paid on the wealth itself. Members of such organizations could get a higher income on their investments than a savings bank could pay, and with greater security than if each attempted to save and invest by himself.
Savings institutions are necessarily also lending institu tions. In this chapter they have been looked at mainly from the saver's (the lender's) standpoint, though their service to the borrower is of coordinate importance. In the case of building and loan associations this feature is most apparent. Later, the problem of the agricultural borrower will receive further consideration.
11 See ch. 27, below. REVERENCES.
Chamberlain, Laurence, Principles of bond investment. 4th ed., N. Y. Holt. 1911.
The work of the bond house. 1913.
Devine. H. C., Peoples cooperative bank for workers in towns, and small holders, allotment cultivators, and others in country dis tricts. N. Y. Cassell. 1908.
Dexter, Seymour, A treatise on cooperative savings and loan associa tions. N. Y. Appleton. 1894. • Hamilton, J. H., Savings and savings institutions. N. Y. Mac millan. 1902.
Kemmerer, E. W., Postal savings. P. 176. Princeton. Princeton University Press. 1917. (A historical and critical study of the postal savings system of the U. S.) Kniffin, W. H., The savings bank and its practical work. N. Y. Bankers Pub. 1912.
Phillips, C. A.. Readings in money and banking. N. Y. Macmillan. 1916. Ch. XVI.
Wolf, H. W., A cooperative bank handbook. Lond. King. 1909. Cooperative banking. Lond. King. 1907.