New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1852-03-25

all, to receive at tho end of that time
$500, or 500 year 10 exchange for $50
year. 1t is altogether too much for the
man whe receives 500 to return 81 a
month for eight years, equivalent to the re-
payment Of the loan with IL per cent In
terest thereon, to say nothing Of the almost
certainty that he will have to continue it
one or two years longer. 1t is not \ suff-
Client reason for this disproporsion to say
that the many borrowers gain so largely BY
the advantages of the Association that they
can afford to give the few lenders 40 i'm
mense profit The thing should be done
more equally for both parties.
With view to this end, we suggest that
Building Association on some plan like
the following would be found highly advan-
tageous. 1t would answer the purpose At
once of furnishing safe agency for the in
vestment Of small sums at good interest, and
of providing those who desire to buy or
build houses with money for that purpose
at tolerable rate.
l. The Association to be permanent, and
without any fixed period for its termination,
or with very long period, say 80 years.
Q. The shares to be fixed at 500 or 5000
each, in order that no great number ofyears
will be required for them to reach their full
value; the monthly payments to be 81 or
50 month the entrance fee to be from so
cents to 81 and to go toward the expenses
of the il sttution.
3. Members to be guaranteed 7 or 8 per
cent. interest, on their paym nts compOun-
ded every three, or at least every six months;
the amount of their shares to be paid them
as soon as their monthly payments and the
interest thereon shall have accumulated to
the full value of such shares, when they
will cease to be members, unless they de-
sire to take new shares and begin again.
Members admitted at any time on the pay
ment of the entrance fee.
A. Money to be leaned to members at 9
or 10 per cent, according as the interest
paid to investing members is fixed az or
s. None but the regular rate ever to be
charged. The borrower to pay interest
only on the amount he borrows, minus the
amount he has already paid in the shape Of
monthly dues. Thus A, who has been q
member Of the Association for one year,
and already has in its funds S24 SO, borrows
S4OO, the amount of two shares, but starts
with paying interest on 1915 OF only. Il
will be the duty of the Trustees to fin the
monthly payments in return for loans, ar-
ranging them so that, without burdening the
borrower, the principal and interest will be
extinguished in reasonable length Of time.
1t will also be their duty to make such ar :
engagements that the lawyers fees for ex.
aiming titles and making out papers shall
be comparatively light charge upon tho
borrowers.
S. The members who desire to borrow
will put down their names on a list, and
choice will be made among them by each in
turn or lot according to date Of application.
No member to whom loan has been thus
allotted to be allowed to sell out his right to
another, but in case he does not wish for it,
or is unable to give sufficient security, the
one ne 1t in turn TO be entitled to have the
loan.
We might easily 60 on and give
the details of q complete constitution for
such an Association. Those who are fa.
miliAr with the subject will easily supply
them from these general outlines. The main
idea is that the institution shall be perma-
ment and that while the investor receives,
and the borrower pays higher rate Of
interest than in ordinary cases, it is not too
much for the nature and circumstances Of
the transaction. Moreover, each is treated
fairly and neither suffers at the expense of
the ether.
The experience had in England is valua-
BILE in this connection. There the plan of
Terminating Associations, after very many
trials, has not been found to work well.s
They have promised to terminate in from
10 to IA years, but have very generally
failed to do 80. II is true they have not
been in all respects so shrewdly organized,
and have not charged the borrowers any
thing like the interest which the latter pay
in this country, while in many cases they
have held out inducements to investors
quite as seductive. But yet the fact is that
the plan is very generally being renounced
for that of Permanent Associations. We
have no doubt that experience in this coun-
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