Virginia free press. (Charlestown, Va. [W. Va.]) 1832-1916, 1867-12-05
Rnildinr Associations.

10 has been suggested 20 me that having stated the
general theory Of these associations. a few figures
in illustration of their operations might aid those
who are DESTROYS gilmore fully comprehending them.
The association which has recently been organ
lied I'm this place, having adopted what is termed
the prcrjum plan that is. as has heretofore been
explained redeeming the shares for the lowest
mount the shareholders. competing for the funds,
are willing Oh take for them, will coufue myself
exclusively % an explanation OF that mode.
Let the fact be borne in mind that the funds OF
tbe association intended % be used IN paving 70
the shareholders the amount OF the par value oil
their shares which when it is desired are taken
up or redeemed H 0trUuce 40 the lowest rate 'ueFed
Iti known that the shares OF me Jefferson
County Building Association are $50 each
S,.s ,bar b, holder of i've of these shares, which
az mar are worth 81 500, wishes % have them re-
deemed UrrHers theu Cor S-ue each, or Tor 81 ,uOO
in aU should there be no other shareholder Will
ir d, have DIS shares redeemed at aloWtr rate the
s.s.riarion would of course, accept this PROPOSE
ton The discount u this ease, or as 10 Is termed
,-...r.a5 would be .ictg dollars per share.
Now Dc rs SEQ whatit will cost 90 paw off this ad-
vance OF 81 600 o8 the terms prescribed by the as
S shares Of $500 each at a discount or premium
Of 500 per share. would be worth. ,VOo
lut.t.stuu same for wears no the end oil
which tim. tits estimated the association
sill ba abb. to redeem In full its stock viii 100
Add fu this lu" amount IaIA tu '" ' S'''''' -.
for wears, S''V
And Won win bav. I'll, sum of..............sI $50
as Or. uUauouutUa paid toy the use ol $1,000
for wears
Now I.tus compare this result with the c'st of
th. loan Oh. sd 600 Tor wears at simple interest;
Interest ON $1,000 no per cent. for years. $40
Add Tiiagiuu ..----...ol 'VUo
And Won have the sum ,42O
OPP 500 more ,hau is paid ON tha association
uIIu-
Th.b.r. fits derived are as follows go
With Ga. $1,000 advanced hy the association, the
shareholder win bc enabled 20 obtain house OF his
own ..rr' f rrrs tU one for which, b. De br @ rem.
tar he win pay Sljl per aunum and he viii save
aIuu-ter0a- iu yeut tppay back the advance made
br the association. Because I'M seven years DE Will
have paid no $3.50 per wear Sl0joiu rent The 81
600 Un.sir.I ...f the association and with when
h. ulT tr'f his house. viii cost him rs we nave
s..r above. $3.50 rH only $3.50 moro ttau uis rent.
So thrr hy using th advantages u this association
h.rav hu n u iiu-.'. O. house secure hlwsel' home
.-..... with rI $1,000 tlu, furnished him. and pay
f.rft with OBJ. ld hilton u. $3.50 tH OBJ" rent Doe Will
nav ir seven years. or iu other words with what
b .rr.. Bon .... uar off rent and $3.50 dollars. he
can buiII bins ID. home, pay 'or it and thereafter
De- free .r.. ..ut
Ar..l...l..ra OF those calculations is invited.
Irfr.r contain error, would %, glad 90 hay. them
pointed ono. o. they are co rect they speak for
themselves .ul $50. Hs wnr. satisfactory elucidd-
ts.a o.. o.. a. ct than any other Chat could give.
Very respectfully submitted,
Wv. tt. TGAyEss.