The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1872-09-07

""ai'eu' ana may ne oouc al any tiine
the once OF the Secretary.
The first payment at the beginning of an,
series, Is but so cents per share; but If tn
series has run any length Of time, the buye
must pay back dues and profits. Thus, i
series No. has run months and the gain i,
Si.Oo, the first cost will be 81 go per share
The Ottawa Association is row issuing a
new series of stock, dated Sept, 1rt, 1872.
DURATION.
! An Association (or serieS) will terminate
whenever the assets amount to 500 Per share,
and this will depend largely upon the premium
obtained.
In Ottawa the lowest rase at which money
has been sold was Is per cent; the highest,
~ per cent; but some Associations have
averaged as high as IS per cent.
Building Association II Indiana te-ni-
mated IN little over ) years enc in Pennsyl-
wanna in IA years: one in lows gained S1s.D4
per share in eleven months
Owing to the fact that our association has
necessarily lost scsne time in reorganizing,
under the new law, the results oflast year cam
not We taken as fair standard by which to-
Judge the future; still there WAC a very re-
spectacle gain made. and hope to have the
actual figures to append to this article.
1t is calculated that the first series will ma
'ure in less than : years, and | believe the
"a lculattea to be correct.
BENEFITS OR l,rvASTAGKS.
These are many, especially for poer men or
men of moderate means.
In Crittenslen's COMMERCIAL Arithmetic l
find the following, viz:
AS promotivc Of habits Of economy and as
q tforI ,.,fv toIr mi
Associations have been highly successful +
Practically they have given homes to hun-
dreds who would otherwise never have c~ned
them"
IN WrigleyTs Working1nan's WaE to
Wealth" occurs the following, VII:
humorous instances can be pointed CIT of
Iaechanics,and lahering men who have VIC -Aed
all their LIKES as lourrseymen or aaborers, and
raised large families Of children, and who are
To-day worth from $4,000 to $40, OO0-all
made and saved Through BGildiag Assoeia-
tons. The course is clear and centain-whIt
man has done, man can do again.
L, all Associations. there are tws classes of
Observation-Disclosures and the borrowing.
The first class has the advantage of being
able 80 save money ia small SUES, az, his wages,
are received, and Of receiving. an saual per
ton of all the profits Oh the whols sum in-
vested without waiting TO accuu,uls,e large
sum before finding "a place to put i1'
If an Association. (er Series) terminates i,.l
Z years, (as it probably will in 0ttawa,( and
a member has ten SHARE, he wiz in that TIM
have Intd. 1920, and receive s,lOs0-gais,
$3.50.
The borrowing psas, are abls tp obtair,
money on security which CAPITALISTS woulE.
considc, inadequate, tsat which 'niItling As
sociations have fsEnd 20 BE amysa) and car
repay TIE loan in -su:,M monthly rlsta llments,
a very great privileges t. n working nsan, and
one which he can not Obtain outSisa' Of Build
ing Associations. Aany a man, IN. this way,
is able to buy Tor bgiid) house: nearly as
easily as he can paw rnnt-
For example, dwelling. IN thi, cTrv, suitable
for family of san .l2A persons, rant for from
SO to SIS q, month--say $3.50 ID. the aver
ago. This would BE Sl3c per year, OF for :
years, $1,000, with nothing TO Sow for it,
at the end of that tins
Now, suppose th9a sane man ONrae,l . lot
worth say $3.50, he ean buld yer, f.ir house
for $500. This he, bOrrow> from the Asso-
citation and pays sax ~ per cent, I5smum, or
$40; this will ma hn $40, for WHICH he gives
note and mortgage IN order to obtain this
sum he must own NJ least shares. his pay
ments will be- dues 81 per year, interest SS4
per year, or Sl3S l.r year in all. which will
be ust Sll 80 per month; this lcr / years is
S96G Now add to this years interest on
the value of the las. $2ju,=$l-j. and say
1928 for taxes and insurance, ard. we have Il
total Of $l26G, frou which must ne deducted
$50, the difference between the naluc Of his
stock and his note te the ASSociatiOn and we
have as the net cost Of the holse and lot
S120G, or $l5G more than he world have paid
for rent.
Many, who are not familiar with Building
Associations, are of the opinion that Il borrower
pays a very high rate Of interest, but the OBJ
lection disappears on. close examination. Fog
example, take the case above 1t was shown
that the borrower paid 1896 in. years. He
has had the use of 5000 cash for that time,
and in the end receives his nOte and mort
gage and 500 in cash. He has then paid
$966 and has received $3.50, difference Of
$500 which is less than :! p4r cent. year.
have not, it is true, calcusated interest on
the monthly payments, and this for the reason
that practically not one man in 5000 does
invest $40 to $l2 per month, and this for the
reason that even granting the inclination, to
do so, the opportunity does not exist.
Some of the advantages or benefits of
Building associations axe brief --the Yrivi-
lese of saving in small Sums and the certainty
of receiving at least three times (probaby
more than the legal rate Of interest OH the
money so saved or invested
NOn-borrowers are lenders, and they loan
! on real estate security Al high rate ofintcrest.
Says Wrigley OF all known plans, it is
the most rapid, sure and effectual one for the
industrious man of small means, or, in fact,
no means at all, to accumulate II capital"