THE history of Northern Rock goes back to the 19th Century savings clubs set up by skilled working men, which helped them escape the clutches of the slum landlord through buying their own homes.

Along with the trades union and the co-operative, the building society provided some protection from greedy capitalists.

The principle behind the building society was simple. Savers who owned the organisation paid their spare cash into a fund and received interest on their deposits.

When sufficient funds had been collected a member was then offered a mortgage loan at a slightly higher rate of interest. The surplus was then ploughed back.

Growth was slow, but over time some, like the Northern Rock Building Society, eventually became household names.

In the 1990s Margaret Thatcher allowed building societies to become limited companies and Northern Rock did so in 1997. The "profit motive" then took over.

Because it could not get enough deposits from savers for lending, it borrowed on the short-term international money markets. The objectives were the bottom line and the fat cat bonus. The loans then dried up.

In short, capitalist greed has put £25bn of savings at risk as well as 6,500 jobs.

John Gilmore, Bishop Auckland, Co Durham.

HOW disappointed I was to see people queueing outside Northern Rock branches, especially in the North-East. Could it be the great British media to blame for causing another panic?

Northern Rock sponsors the area's football, cricket and rugby teams.

Also, a percentage of its profits goes towards charitable organisations in this area.

How do most of the people support Northern Rock? Yes, by withdrawing money instead of showing some sort of loyalty to a company which has given so much to the area.

Why not take notice of what the experts say? Do people really think that the Bank of England would be prepared to lend this amount of money to an organisation which it thinks is going to go bust.

I applaud those who have kept their money in and showed loyalty towards Northern Rock, as I have.

To those who haven't, just think, the North-East would be a poorer place without this organisation.

I have every confidence in it pulling through and becoming a stronger company so the North-East benefits.

Darren Blenkiron, Bishop Auckland, Co Durham.

QUESTIONS remain which have not been answered by Northern Rock, the financial authorities or the Government.

The Bank of England decision to make emergency funding available to Northern Rock was not made overnight, so how long had negotiations been going on? Also, should customers and shareholders of the bank have been given more information in advance?

We live in a global economy which is dependent on financial activity in the US. Half of the equities are traded there and commodities such as oil, gold, etc, are quoted in US dollars.

There may be a valuable lesson that we can all learn about debt in general from this. Borrowing for a mortgage or for business is necessary, but much of the debt is incurred by individuals who simply wish to live a lifestyle they cannot afford, hoping to be able to pay for this from future income.

I am sure these people face the prospect of spending their entire lives in debt. The banks love them.

Keith Dewison, Billingham.