Smyrna times., 1867-05-08

times accused Of containing a perverse reners
tion of people, and at times we may give som
grounds for the accusation; though it's NOR
from the general propensities of weak huma
nature than bad lqaqI habit, if we do. Bu
we are certainly "of one Accord on one thin
LOAN Associations. The organization of tw
such institions iq our town within month
ample proof of this And every body favor
them, and alnlQst eregy business is ':into tn
business. 1t is all that is talked about CO.
Change" We refer to this not SO much t.
prove our uaanimity, however, as to show tn
popularity OF the movement, and to point to i
as an evidence of their success.
These Associatiiops are duly chartered unde
the laws of the State, on the joint stock anC
mutual plan. Each member or stockholder Of
the association pays into the treasury one dol
lar for each share of stock he owns, every
month; thus, if be owns five shares, he pays
$5 at every monthly meeting Of the association.
Hence, if there are 1000 shares of stock in the
association $1,000 are paid into the treasury
at eyerymonthly meeting thereof This 81 ,OOO
is Immediately loaned out to the member of the
association who will pay the highest premium
therefor. This premium is sometimes as high
as S5 per CENT, Or even higher In addition to
this premium or bonus the party or parties
who get the loan pay the Usual rate of interest
for the same-ope- half of one per cent. per
month. Each stockholder is entitled to a loan
of two hundred dollars for each share he owns
in the ASSOCIATION and no more A member,
therefore, who owns five shares can borrow
$l,OQQi ten shares, $4,000, etc. The money
thus loaned is secured to the association by
Judgment bond or mQrtags, board of direct
ors to judge Of the sqficiency of the security.
If the money thus loaned is expended in the
erection Of q house, las is contemplated by our
assOciations) said house must be insured, and
the insurance policy is held by the association.
There Is, therefore, no risk of loss.
The ASSOCIATION is continued until the whole
stock hasipcreased sufficiently in value to make
each share ofstock worth 5000. 1t then winds
up It's affairs and ceases. The profits are then
divided mqtual among the stock ckholders. They
1.-THE ass9ciations) are generally in existance
FROM sly to ten years. Suppose it lasts ten
years. 4 stockholder who owns FIVE shares
eYlll have paid to the association in that period
SGOo-l2Q months, S. per month. If he has
not obtained loan from the association he is en-
titled to apd will received at said winding up"
the sum of $1,000. If he borrowed $1,000,
(all that five shares entities him to) he has no
more interest to pey-all his obligations to the
association cease with the association. If any
persen, having BECOME stockholder, sees fit
to withdraw from the association, he can do 80
by giving due notice thereof and all dues he
has paid in are promptly refunded to him
There are various fines and penalties for non
payment Of Dues and interest, attendance
OF officers, etc., which can be enforced by law,
snd'gQ the general fund.
The great merit of these associations is their
benefits as saving funds. They are much safer !
than the yariQns savings banks throughout the |
county, which pay only FIVE per cent. interest.
There are few young men in our town, receiv- :
ng say from $40 to $l5 per week, but what !
ould invest from SO to So per month and not a
eel the loss-nqt be deprived of single en-
Oyment be noY has. Yet they do not lay up
70 In whole year, and will not unless they d
% INTO 0ne Of these associations. But sup 7
,ose they DO save s5 FER month-sOnae may T
ney get no interest on the amount, probably, o.
nd 1t Is not nearly so safe as if INVESTED in an
institution of this kind. II 7f e.
But the principal advantage of these a,soc;. p
tons is in furnishing the means to man who SC
ave no capital to build houses. A labor;n0 hi
nan who has nothing but what his labor tf
rings' can invest in these associations and - -
orrow theretrom to the amount of his stock Ia
IN the amount thus borrowed he has 70 nou m
My the premium, and the six per cent inter-
1t. The loan is just what he would receive III
the winding up of the association (m;nn. vi
remium and interest) and consequently never sit
as to pay back any principal. The main III
Dect Of the associations in this town is to nro- n
tote building. We believe that both Of them ed
we those who desire to build houses the pref. he
cnce III lgans. It. is to these associations ee
lat many togns oge their rapid growth. Men III
ere enabled to buila houses by being men, b
,rs OF them, and made Use of their advantage. ~
ne cities OF Wilmington, Chester, and many ~ ~
hers we could name have been made to ex-
M their bofders rapidly. The associations,
iact, prove good Investment to the capi- IS
list, saving fund to the young man and a Ell
nldiplg luqa Tor the industrious mechanic, st
4