The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1872-04-19
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! EDITOR NEWS: Emporia has not
and cannot reasonably expect to hav'
for many Yeas, n Savings Bank o.
other moneyed Institution, or capital
lists, OF the standard kind, that vii
take weekly deposits OF fronn Is cts
to IS, and pay interest thereon at from
IL to IS per cent per annum. Neither
1 can Its Banks or capitalists loan, or bt
reasonably asked to loan, money or
real estate security at from to IL pei
cent annual interest, and on from 6 &c
8 years time. E~EE -
An Institution which viii do both
OF these things, and do them safely and
satisfactorily, for the great mass Of the
people, OF both sexes, and all occupa-
tions and conditions, will be a very
powerful stimulus 70 she growth and
material prosperity of onr beautiful
city, and will also be the best moral
agency yet organized in the cause OF
economy, temperance, and thrift.
These objects certainly deserve the APP
probation of every good citizen, and
the merits of the plan take the Iih-
erty Of laying before the readers of
TIE NEWS, are at least sufficient to
demand a full and candid investiga-
ton.
The proposition, In brief, Is this: An
association Is duly Incorporated, with
a capital stock OF S125, 900, divided into
1000 shares OF $125 each, and every
body is invited to subscribe for the
shares - NO person TO hold over 30
shares, and each stakeholder to have
but one vote, no matter whether he
holds one share or twenty. Each share
Il to be paid In weekly instalments Of
25 cents. When the association has
paid TO the holder OF each share its par
value of S125, its work is accomplish
ed, and ali obligations to it cease to
exist.
As soon as one share ($l25) has been
paid into the Treasury it is put up for
loan to the members tstockhoIders) of
the Association, and awarded to he or
she who offers the highest premium Gao
member being allowed to borrow more
shares than he owns.) For every share
so borrowed, Is cents interest must be
paid each week, no matter how large
or how small the premium may be.
The premium Is discounted from the
loan, and remains in the Treasury, for
loan again. Upon an average premi-
um Of 40 per cent, the expectation Is
that the Association will finish Its work
in six years. ,a.@s s-4sE sse3 3 81
Now take two cases, one of q mem
Der who uses the Association simply as
q savings bank; the other who bor-
rows from It.. Each owns, one share.
The first, paying % cents per week, or
sl3 per year, has In six years paid in
47s. He then receives $l25. The in
tsrest on his deposits ia about 10 per
cent. Few OF our banks do better
by their stockholders.
The ether member borrows a share
at 40 per cent. premium. This pre-
MUM (s50.O0) being deducted from the
share ($l25, leaves S75 90 he gets from
the Treasury. His weekly instalment
OF % cents, and interest of Is cents,
amount to 40 cents per week, e2O.s0
per year, and in Six years to $124.s0,
or S49 80 more than he borrowed. This
Is about o per cent interest for the use
Of the money he received.
The Association therefore amounts
to just this: 1t Is a savings bank pay
Ing high rate OF interest to q part OF
Its members, and a source from. which
others borrow money at fair rate of
interest and on long time. It benefits
no one man or sett of men more than
the others. Unlike 4 railroad or other |
company, there are no favored
directors or officers, to |
absorb an undue share of the profits. |
All the people can come in on equal |
terms. No capital Is required to inau- |
gurate It, and a small weekly install |
ment from each Of large number of
provides all the funds.
No extended pecuniary resources,
financial ability, or expensive estab-
Iishment, are required. 1t Is emphati-
,ally an Association of the people,
by the people, and working |
for the people and the public good.
The reader now asks an explanation |
Of the working details, to safety him
self that the Association can do its
work Ia six years on the terms stated,
and do 1t with safety and salts faction
10 all concerned.
AS this article will be read in other |
cities, and its suggestions may be act
ed upon elsewhere, 1t is advisable to |
occupy enough more space to give q |
description of working details so far as
necessary for the intelligent reader:
First. Organization: Five or more
citizens associate for the purpose, draw |
up and sign q charter under the gene |
raj law relating to interpretations, Ger |
tify to it before Notary Public, send
It TO the Secretary of State, who puts
It upon record, and furnishes them
with a certified copy. The fees are
slight. The Association is then ready
for business. 1t adopts constitution
and by Flaws, and invites the public to
subscribe for the shares. The shares
having been taken, the members tstock
holders) of the Association elect the
officers provided by its Constitution,
engage q room for one evening OF each
week, purchase the necessary account
books, and are fairly at work. The
first weeks instalments on 1000
shares will bring in $3.50.
Elk penses-These are slight. The
buaIness Is transacted at reasonable
hours at each weekly meeting. All
and other dues must be
paid voluntarily, each week when due.
penalties are provided. The
only salaried officer Is the Secretary,
and he has from 81 to - per. week.
The Treasurer gives ample bonds, and
like the directors and other officers,
serves without pay. =
Security-This Is complete. All
loans are secured by 8 years first mort
cages at not over 3 ASSESSED value of
real estate Within the county. The
Association elects an Attorney, who
searches and reports titles of the real
estate, and the board of directors must
also examine and approve of the secur-
ity. The expense of Attorneys fees.
&C., Is borne by the MORTGAGE. All
business Is each week fully reported ut
the meeting, and the chances for fraud,
or danger OF loss, are very carefully
guarded against. No bank is less apt
the lose its loans, and the mortgages
are stringent in all respects. Officers
are removable at the pleasure of the
Association. era, fey Fs