The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1868-05-16

this city add northern Illinois
A New, Solid and Attractive Einan.
cfal Undertaking.
The extensive Saint Louis clothing house of
Mossrs VIM. Young & Co. have just inaugurated
new financial enterprise, presenting many
important features and of 30 original character,
that We think it desirable to devote some space
to an explanation of the scheme but as it is in
tinately connected with ''The Guardians Real
Estate Security Company" of st. Louis it is nee
essary that we refer first to the character and
standing Of this institution.
The Guardians Real Estate Security Company
is an Incorporated institution with 100000 cap
ital, chartered by the State of Missouri for fifty
years, and the stockholders are made liable by
the constitution of the State for double the
amount of their stock. The object of this COM
pany is to receive money on deposit; to loan it
out on real estate security and to grant rever-
sionary endowments. 1t is similar to an srain-
airy savings bank with this important exception
it does not allow the deposits to be withdrawn
at any time the depositor may desire, but issues
its endowment certificate for eight times the
amount Of the Deposit payable at the end of
thirty years. The company is permitted to loan
its money on real estate only, and it cannst adj
vance more than three-feurths of the cash value
of the property. 1t will be seen that The Guard
ians' Real Estate Security Company is establish.
cd on the most solid and permanent basis. and
when we add that the Board Of Directors is COM
posed of such men as A. F. Shapleigh, WHY'S
King, Geo. d. Humpheries, Geo. ID. Appleton
and Chauncy I. Fillsy, it will be readily believ-
cd that any obligations entered into by this com.
pany will be met in a prompt and satisfactory
MANNER.
The chief feature in Messrs VIM Young &
Co.'S undertaking is this when customer pur.
chases bill of goods for cash, they present him
with the endowment certificate of the company
referred to for the full amount of tho money re-
oeived by them for the goods. This secures to
the purchaser the return, after thirty years, of
the full amount Of all the money he has invested
i'll the purchase. The arrangement is SO exceed
lngly advantageous to the buyer that OH the first
view OF the case, it seems an impossibility. An
Intelligent examination of the principles upon
which it is based will show, however, that it is
not alone advantageous to the buyer, but also to
the seller and further, that the scheme, if con-
Quoted in conformity with the strict mathemat-
icsl principle upon which it is founded, will en-
able the firm to sell their goods 5elow current
rates and at the same time, earn larger profits
than heretofore. The undertaking il a very ex-
tensive one and neesssitates the investment of
large amount Of capital
We will now explain how this scheme will
prove advantageous to Msssrs. VIM Young Il
Co.: suppose a customer buys bill of goods
amounting to $4,000. Messrs. Y. & Co invest
81 900 Of this amount with the Guardians Real
Estate Security Company, and receive an endow.
ment certificate for $1,000 payable at the end Of
thirty years. This certificate thsy donate to the
purchaser Of the goods. In order to make the
$1,000 deposited for the certificate to produce
the required $4,000 within thirty years, it needs
only to be invested at ten per cent. interest CON-
pounded annually, at which rate it will produce
81 440, 80, 440 more than the face of the GER.
titicate. This sum i. not prsfit to the company
and as the members of the firm Of VIM Young
u Co. own very large part of the stock of the
Guardians Real Estate Security Company, it fol-
lows that they will share in very large degree
this handsome profit This is one wsy by which
the arrangement will benefit the firm. The next
is in the enormous increase of trade that it must
necessarily produce. AS seon as merchants un.
derstand that they can buy goods from this firm
~ low, or lower, than elsewhere, And secure free
Of cost, endowment certificates in RESPONSIBLE
company for amounts equal to the sum paid for
their goods self interest will i,npel them to deal
with this house. Such a genuine and important
advantage can hardly fail to draw merchants
from all parts of the country to the St. Louis
market; and on this account the merchants of St.
Lonis are indebted to the firm which has organ.
'Hou WV oOhChic. ~ WILL bSLcIlt Luo WuOl6 LTWuc
of the city in much larger degree than SUPER.
fetal observers would suppose. The third bene-
fit is in the character of the trade it will secure
namely "a ready cash trade. The losses on q
credit trade In the best of times are heavy-these
losses will be saved. But the advantages to the
firm are small compared with those ACQUIRING 10
the buyers. Just suppose that country mer-
chant who has sold $4,000 worth Of clothing an.
nually for the last thirty years, could have pur.
sued this system all the while. His certificate
for $4,000 gi-sn in '3S would now be worth the
full amount of his purchase that he would
actually have steady income for himself, or his
family in the case OF his death, of $4,000 year
during the next thirty years-aad withoW costing
him one cent
In fact these certificates are almost similar to
endowment policies Of insurance, with this i'm.
portant difference: they cost nothing; and AZ
there is no premium 70 pay, they cannot be for.
feited. They possess the additional advantage
of being as transferable as a National Bank note
which makes them marketable securities, bear
q definite market value frsin the day they are