Delaware tribune. [volume] (Wilmington, Del.) 1867-1877, 1868-01-02
FINANCIAL AND COMMERCIAL.

WILMINGTON, DEL, Jan. !, 1868.
The opening Of the new year finds our local
money market In rather easier condition. Diyi-
dends, to be dsbursed on and after the 10th inst,
by the banks, will continue the ease. The public
debt statement will not be out before next week,
II will make an exhibit of about eighty millions
of gold on hand at the beginning of the new year.
About thirty millions will be paid out of this on
account of interest on 5-2O's, "18S1's" and the
principal of the bonds of1S67 maturing this date.
It does not require the withdrawal of currency to
to dsburse this heavy amount Of gold, it is the
earnings Of bondholders for the last six months,
consequently greater ease may be felt In the
money market.
In reference to the ability Of members Of a
Loan Association to borrow money at 80 or 40p per
cent premium, we have received the following !:
Scan q party pay from 80 to 40 per cent pre-
MUM, 10 Building Association, and yet make a
good financial operation himself? To one unac-
quainted with the working of such associations,
the only answer would be that of the CoMslER-
CALLS money article of Friday, decided mega
tive. And yet the affirmative Of this proposition
can be maintained and proved as clearly as that
two and two make four. Let us take 80 per cent
to start with. An individual owning shares,
borrows $1,000, at 80 per cent. For this he re-
ceives 800, to be held until the shares run out
1t is termed, or until the association winds up
its affairs. This time, 1t Is generally conceded
will not be longer than nine years with the asso-
Citations recently started. The party paying 50.
per month in nine years pays $540. In addition
to this he pays interest on $1,000 borrowed of
$40 more making in all $1080. Now calculate
the interest of the $500 which he received for
years and the result added to the principal makes
$1068 leaving but $12. which he has paid for
bonus over per cent, with the certainty of the
mortgage remaining nine years and being allowed
to pay It So. at time out OF his wages. Is not
this good financial operation3
"Or take the extreme case, quoted, of 40 per
cent, and by a like calculation, he will pay less
than per cent for 5000 during the nine years.
And suppose that by borrowing this 5000 OF 0 per
cent he Is able to purchase for himself snug
little house, and pnying,as he does to the assoca-
tion, ten dollars per month, (Which ia no more
than the rent of such honSe), at the end of ninc
years the house Is his own, and he can defy all
the landlords or money brokers In the city to put
him out, or to raise his rent. Is not this good
financial operationp
The more the principle of these Loan Asso-
oiations becomes known the greater will be their
favor In the community. 1t gives the borrower
such partIcipations In the profits of the money
lent as to make his loan an easy one, while
1t offers inducements to men of means to lend
their capital to their neighbors rather than TO
send 1t to the ends of the earth for good in
vestment. There is ample capital In Wilmington
seeking Investment to make the money market
as easy old shoe If 1t can be kept at home, and
these Loan Association, are doing more than any
thing else, ct the time, to effect this. By all
means let them be fostered, end help
WILMINGToN.