The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1871-11-03

flltn year
Ten and one. half months ............',..i60
1000
The Association that was started last
in Bloomsbury, has little over fifteen
hundred shares, and at eighty premi-
um, it should supply one hundred and
seventy shares the first year. 1t has
supplied one hundred and eighty-three
shares the first ten months; but it has
been helped by advance payments.
If man should buy out share the
first month, aud the Association should
end in seven years, the money would
cost him one dollar per month for his
stock, and one dollar per month inte-
rest, for eighty-four months, making
one hundred and sixty EIGHT dollars.
II he should buy at eighty premium, he
would get one hundred and twenty dol.
lars. 1.-The should borrow one hundred
| and twenty dollars of capitalist, at six
| per cent. for seven years, it would cost
him one hundred and seventy dollars
and forty cents to pay principal and in
terest, which is two dollars and forty
cents more than he would pay the Asso.
citation. If he should pay the interest
annually to the capitalist, the difference
would be greater.
The choice between borrowing from
the Association, or of capitalist, as
suming that capitalist could be found
who would lend for six per cent. and
wait for all the interest until the end,
(which is rarely the easel depends upon
circumstances. If the borrower have
money standing out that will come in a
gale at the maturity of his debt, it might
be moro advantageous to borrow of a
capitalist, because he would have the
use Of all the money for the whole length
of time; whereas, when he borrows
from the Association, he pays back in
regular monthly instalments. On the
other hand, if he depend upon the result
of his labor and economy, the Associa-
ton is the better place to borrow from.
For if he borrow of a capitalist, he is
losing interest on the money that lies on
hand idle,until he can accumulate suf-
ficient quantity to make payment, and
he runs the risk, also, of spending it, or
of losing it by lending, and various other
accidents; circumstances which render
it exceedingly difficult and expensive
for man who is not wealthy, to get
money enough together, at one time, to
pay large debt.
Suppose the Association should start
at Benton, say on the third Tuesday of
January next. The stock would cost
two dollars per share, to be paid to the
Treasurer on that day, Tor before) and
one dollar month per share thereafter,
until the respective shares get to be
worth two hundred dollars, at which
time the Association will be at an end.
In Associations of this kind, the
monthly dues are paid in at the regular
monthly meetings, say by eight o'clock
in the evening. The money is then sold
at public auction, to the highest bidder.
None but shareholders can buy, and a
shareholder can buy two hundred dol-
lars for each share he owns. The amount
of money he gets depends on theamount
of premium he pays. After sharehold-
er has bought out his stock, he has to
pay two dollars month per share, in
stead Of one, until the last share is
bought out, and then his shares being
worth two hundred dollars, pay his
debt. This explains the mystery why
person can borrow money in these
Associations, at a high premium, and
still save money. The profit on his
stock more than pays his premium.
When no bid is made for the money,
the members are bound TO take it at the
lowest premium fixed by the bylaws,
beginning with the member who shall
hold the largest number of shares not
bought out. The lowest premium is
generally forty the first year, and four
dollars less each successive year. Share
holders who neglect to pay their month
l. dues, are fined ten cents to the dollar
for each month in arrears, and members
who pay in advance are entitled to inte-
rest.
The expense of working these Associ-
ations is merely nominal. 1t consists in
buying the books, and, ordinarily, about
twenty cents a year on share, Tor the
Secretary's salary. Any shareholder can
withdraw at any time, if he SO desires,
by giving one months notice, and can
have all of his money back, together
with six per cent. interest. The great
object to be accomplished by them, is to
make the shares of stock worth two hun
dred dollars in the shortest possible
time. In view of this ehd, the securi-
ties taken for loans should be unques-
tionable; and the higher the premiums
for loans, and the more advance pay.
ments, the shorter time will the share
holders have to pay in. The loans are
secured on real estate, either by judg-
ments or by mortgages. 1t is the prac-
tice with some Associations to have the