Nebraska advertiser., 1868-05-14
A New, Solid and Attractive Financial
Undertaking.

A New, Solid and Attractive Financial
Undertaking.
The extensive Saint Louis clothing house of
Messrs. VIM. Young d Co. have just inaugurated q
new financial enterprise, presenting so many impOr
tant features and Of so original a character, that We
think it desirable to devote some space to an ex-
PLANTATION Of the scheme but as it is Intimately
connected with "The Guardians Real Estate Sec
urity Company, Of St. Louis, it is Necessary that
We refer first to the character and standing of this
institution.
The Guardians Real Estate Security Company
is an incorporated institution with 100000 capital,
chartered by the State Of Missouri for fifty years,
and the stockholders are made liable by the Con-
s]titution of the State for double the amount of
their stock. Tho object of this company is 10 re.
celv3 money on deposit or to loan it out on real es-
tate security and to grant reyersiOnary endOw-
ments. 1t is similar TO an ordinary savings bank
with this important exceptiOn--it does not allow
the deposits to be Withdrawn at any time tho de-
pOsitor may desire, but issues its endowment GER
tifcate for eight times the amount of the deposit,
payable at the end of thirty y ears. The Company
is permitted to loan its money on real estate only,
and It cannot advance more than three-fOurths of
the cash value Of the property. 1t will be seen
that The Guardians, Real Estate Security Com
pany is established on the most solid and per-
manent basis, and when we add that the Board Of
Directors is composed Of such men as A. F. Shap-
leigh. Wyllys King, Geo. d.. Humphreys, Geo. d.
Appleton and Chauncy |. Filley, it will be readily
believed that any obligations entered into by this
Company will bo INST in a prompt and satisfactory
manner.
The chief feature in Messrs. VIM Young g Cos
undertaking is this when a customer purchases a
bill of goods for cash, they pr esent him with the
endowment certificate Of the Company referred to
for the full amount of the money received by them
for the goods. This secures to the purchaser the
return, after thirty years Of the full amount of all
the money lie has invested in the purchase. The
arrangement is so exceedingly advantageous to
the buyer that on the first view of the case, it
seems an imprObability. An intelligent examina-
tiOn of the principles upon which 1t is based will
show, however, that il is MT alone advantageous
to the buyer, but also to the seller and further,
that the scheme if conducted in conformity with
the strict mathematical principles on which it is
founded, will enable the firm to sell their goods
bclOW current rates and at the some time, earn
larger profits than heretofore. The undertaking
is a very extensive one, and necessitates the invest
ment of a large amount Of capital.
We will now explain how this scheme will prove
advantageous to Messrs. VIM. Young Dc Co.: sup
pose acustomer buys a bill of goods amounting to
$1,000, Messrs. Y. d Co. invest $1,000 of this
amount with the Guardians Real Estate Security
Company, and received an endowment certificate
for $4,000, payable to bearer at the end of thirty
years. This certificate they donate to the pur-
chaser of the goods. In order TO make the 81 1000
deposited for the certificate to produce the re-
quired IS. 900 within thirty years, it needs only to
be invested at ten per cent. interest, compounded
annually, at which rate it will produce Slo,44O
or S9.44O more than the face of the certificate.
The sum is net profit to the COmpany-Rnd as the
members of the firm of VIM Young & &c. own a
very large part OF the stock of The Guardians Real
Estate Security Company, it follows that they Will
share in 3 very large degree this profit. There Is
one way by which the arrangement will benefit the
firm. The next is in the enormous increase OF
trade that it must necessarily porduce. as soon,
as merchants understand that they can buy goods
from this firm as low, or lower, than elsewhere
and secure free of cost, endowment certificates IN a
responsible company for amounts equal to the sum
paid for their goods, self interest will lmpel them
to deal with this house. Such a genuine and I'M
portant advantage can hardly fall to draw mercn-
ants from all parts of the country to the 81. Louis
market and on this account the merchants OF st.
Louis are indebted to the firm which has origina-
ted the scheme. 1t will benefit the whole trade oil
the city in a much larger degree than supperhclal
observers would suppose. The third benefit Is In
the character of the trade it will secure, namely =
a ready ash trade. The losses on a credit trade
in the best Of times arc heavy--these losses Will be
saved. But the advantages to the firm are small
com pared with those accruing to the buyers. just
suppose that a country merchant who has sold S9,OOs
worth of clothing annually for the last thirty years
could have pursued this system all the while
His Ger tifcate for s., 600 given in '50 would now
be worth the full amount Of mis- purchase--so thai
be would actually have q steady income Tor him.
self, or his family in the event OF his death, OF 3d.
600 a year during the next thirty years-GRd Utth-
out costing ham one cent.
In fact thes e certificates are almost similar tC
~ndowme policies of in urance, with this import
ant difference: they cost nothing; and as there
is no premium to pay, they cannot be forfeited
They possess the additional advantage OF being
as transferable as q National Bank note, which
makes them marketable securities, bearing q definite
market value from the day they are issued