The Weekly Perrysburg journal. [volume] (Perrysburg, O. [Ohio]) 1861-1???, 1867-07-12
LAND AND nUILDING LOAN Asso-
OIATIuNg.

Since The passage Of tho oct Of last win.
ter providing foe tho formation Of Land
aud Bnildipg Loan Associations, humorous
companies, in many towns and cities have
oyailed themselves Of its provisions. No
such company has been organized here,
and we can account for this fact, only on
decomposition that tho great advantages
Of these institutions are not fully under.
stood 10y our people. We give below an
article from the Cleveland h aCter explain.
ing tho Advantages Of lhoso associations
No safer or more profitable investment is
known for small monthly deposits. Similar
institutions are now, and have been, in cx-
istence in the eastern cities for some years,
and ia England they have been in success.
iul operation for moro than forty years
We feel certain that those Of limited cap.
iial needing homes would lose no timo in
securing shares If they only know the ben
Gifts 20 be derived. We propose briefly
to explain the beneficial wo Ring OF these
associations 4 aud B need money to assis,
in purchasing, or paying for, homestead,
a burrows fourteen hundred dollars CT
ten per cent. intorest), for term Of seven
years. Ito would have TO pay in that time
nine hundred and eighty dollars as interest
At the end Of the seven years he would
have to raise and pay back the whole prin-
cipal, fourteen hundred dollars failing in
which, he may probably have the mort.
gage rorccoscd aud his property sold Mt a
sacrifice. Too many have had this bitter
experience. On the other hand B takes
ten shares in building association Each
share costs one dollar per month during
| tho continuance Of the association. One
/ share represents two hundred dollars
| When such share, which cost ouly one
| dollar per month"; becomes worth two
| hundred dollars, (Which, on account Of the
rapid increase OF premiums, simple aud
compound interest, is accomplished IN iivo
years. the association yields up the mort.
gage securities to those having bought out
their shares aud TO those who hayo not
bought any Of their shares out, it guaran-
tees and pays to such members two hun
dred dollars for every share ho Or she may
hold in such association,
p, on applying to becon, a mcubcr,
pays ten conts per share initiation fee, the
sale of shares being limited to ten to one
member each member pays one dollar per
month for each share he may holl B
having taken tenshares, pays in ten dolllrs
per month until such time as he wishes TO
redeem hig shares, when the interest at six
per cent. per aunum is charged, aud this
he pays monthly with his payment. Ills
ten share5 represent two thousand dollars.
An association of TIVE thousand shares re-,
celvcs ovGry~ month 81 900, which is in.
creased 10y adding the interest thereto. b
olItls thirty per ceut premium for the tw o
thousand dollars should his bid be the
hifrhpgt "A / Ia 10 I1,,,,
qujred to furnish security which is salts.
factory to the Board of Directors. Now +,
having bought out ten shares, $4,000, and
given thirty per cent, premium, which is
$500, ho receives out OF the Association
the sum OF SlA0h Ills payments, which
were ten dollars per MONTH are now in.
creased 10y adding ten dollars interest, (to.
he pays interest on the two thousand dol
lars) SO that Ills payments are twenty dol
lars per month,
Ia twelve months his payments amount
to $240 per year Multiplied by seven, to
represent seven years, his total payments
amount to 81 $50 lIo received from the
association 81 400, so that he pays in for
tho use OF his fourteen hundred $3.50, which,
though he paid thirty per cent premium, on
his loan Of : 400, is less than 3 per cent
interest for the whole time, besides having
had the advantage OF paying all his prin.
oipol by monthly payments; it is perfectly
clear that AS 81 400 cost him $3.50, whilst
b only pays for the same $3.50. a clear
advantage to b over A OF 500.
Equal advantages Offer to shareholders
who do not redeem thoir shares, Ten
sharos por mouth is $40, one year $l20, in
seven years $3.50, receiving $4,000 being
clear profit in seven years OF 81, $50.
Tho probability is that an association
will run ont in much shorter time than
seven years and if 80 the profits to all
shareholders are greater,
Having thus stated the beneficial work
ing OF such societies Az clearly as we are
able, aud knowing them TO bo based on q
sound principle shat of co-operaton--,w
would urge all those who wish to procure
homes, to purchase fow shares in some
Building Society.