Lynchburg daily Virginian. [volume] (Lynchburg [Va.]) 1852-1861, 1856-10-06
ritn ara S=ta:c aHatre
u.;Idiu; and Loan A-socin tions-their ADJ M
snyc- ogerut;ous.


The Advantages and operations Of these Institn-
toas being much misunderstood by the most of our
,ifizens propose TO briefly explain their aims aud
nerations as organized in this couutry.
They have existed for a great many years in Great
britain, bat only some l6 years in the United States
Where properly managed they have always been
cessfal aud productive of much good They We're
Tut lorzed in Virginia 10y an act Of the legislature
passed believe. in lsl2and in successful opera
ton in various portions OF the State. Three now
isl in l.yuehburg the oldest of which is SIX mouths
The graa9l4 object of lhese institutions IS, - ena-
bic the poor - purchase himself Il honse-to be
n b5tS,-oUqr instead of hoAse-rentey-to pay rent
into his own pocket instead of paving it into the
pockets OF other people, rs the great mass of poor
men 10 In England, about 80 OO0 persons own all
the ltnd-in Scotland and Ireland a much less num-
Der own the so-all the rest of the immense popn-
lations of those countries, being i1rdrea"rs. In this
country much larger proportion Of the people have
Il substantial interest in tie soil bnt still the great
masses are hndless and labor from years end to years
end to rent themselves a temporary home Now, the
primary object Of these Associations Is, to combine
and consolidate the product of the labor of the poor
man, to place it in his power to buy the home
which he rents with the very money he pays to his
llndlord But how is this done2 is the question
which many seem not to understand answer as
follows
A. is renting of b n house at s12o per year, or
$40 per mouth. In years he will have paid for the
rent of this house the sum of $40, which is dead
loss to him. 1t is gone never to return We will
suppose the house he rents to be worth $1,000. The
house is sold A. buys it, and borrows the money from
the Association, at SO per cent. premium, and pays
fr IT, The house is AS, and he deeds it to the As
ISOLATION security for the loan Now, the $40 per
month which \, has heretofore paid to his landlord,
he pays to the Association MS his monthly conribu-
tons. In years (he supposed duration of the As
sociaon) \. will have paid the Association $50 of
the principal. He will have paid in the same time
interest ut per cent on his loan Of 81 1000 the sum
Of S42o-moking the total sum paid by \. to the
Association 1000 and A. will be tSr SimPie owHer
lie house ,chcA Int fer the Aysocjat1q 3r0Ud be the
property of another. The account then stands thus
Amount of principal and interest paid the
Association by : ECO 90
Value of House and Lot received from the
Association by ACKNOWLEDGEMENTS. 1000 90
Total paid for house worth 8 900 Isl. $3.50 90
This sum 1890 o0) cannot be considered as really
expended because, the advantages gained by the pur
chase and the future rents saved would far than
countorbalance the amounts.
But, SAYS the ohjector, You have taken account
of the enormous premium paid of so per cent A
stands Indebted to the Association in the sum of
- oo0-as flllows 81 900 paid him cash, and 81
900 premium paid for The 81 300 How i the 81 900
premium paid? The answer IS plain. The Associ-
alton cannot l. exist, until it has sufficient divi
bends CLEAR profits to pay to each unredecmed share
ofsock 5000 that member owningten shares of
stock WILL at the expiration Of the Association, II he
drr0ics 2,Gg. he entitled to receive 81 900 in money
T1s fcf HiRst b. uerstood lcH because il is funja-
mental. But prefers not 10 wait until the eXpira-
ton of the Association (seyen years say but says to
the Association, | want money now, and if You will
d}raare me ) 900 (Which would be the amount he
would get at so per cent? will transfer you my II
shares of stock which, at the expiration of the asso
citation will be worth $4,000 This would make the
account stand thus:
\ to Building L. Association DR..
1856.
Oct l. To Cash advanced you............. s 900 90
Int on same years at per ct. APO 90
Amount of premium at 80 per
cent .......... .......... 600 90