, 1873-01-19

DOES rr PAY TO BORROW. MONEY FROM BUILDING
eoC1EI1Es?
Associations Of the kind above mentioned
have never been vcry popular III Chicago, and
several attempts to get them up have 1aAea.
But Us there will probably be other endeavors to
organize them hare, We give the following letter
Of correspondent, who makes the above qucry,
and answers it himself:
10 the Editor er The Chicago tribune:
s1R: In answer to tho above question:. may,
Yankee-like, ask another question, WIS.,: do
borrowers from such societies nlwaTs clearly un-
derBtRnd, when making loan, what ratio OF in
terest they aro actually to pay therefore think
not. For instance, it such society grants one
such member contracts to repay the same. TO-
gether with interest thereon, by sixty monthly
instalments (in adEauce) Of s23s oach, IS the
rate Of interest OF Is per cent per annum?
Some Building Societies figure their loans
thus, viz: Amount advanced, $1o0, to Which
they add $40, for fye years interest at per
cent, and then they divide the 514o. thus found,
into 60 monthly payments OF 2H dollars each,
thereby leading ulany borrowers to believe that
they are only paying per cent per annum 1or
their loans.
Now let us look ut it in another way ~ dol
lars paid or invested rt the beginning OF each
month for so montHs, would, il improved at ~
per cent compound monthly interest, amount
to s209-25A or dlscounting the 24 per month
for FIVE years, At the rate Of ~ per cent PER
month, the present value would be s99:3o7s !;
therefore, Il d borrower received only $93.3os5 in
stead OF 800 ~ tho amount Of bis loan, aod
paid ~ dol1n1a per month {sn ddrdHce)
for five years. he would hive paid interest at the
rate Of Is per cent per annum on the balance OF
the loan nctually owing by him in each month
of the transaction. Query.-Can any ono anoru
to paJ such rate in buying homestead:
Youra etc, A. T. ~
INDEXES TO THE RECORDS
10 the Editor Of The Chicago TRIBUNE:
6m: An important matter,-more Important
in = few years, probably, than the proposed Pur-
chase of the Abstract Hooks,-is, that some pro,
vision should 1t once te made to have the real
estate records nov in The Recorders Office in
dezed up, 60 that titles since tho fire, at least,
e8n be examined there by anybody without OK
pense; and to accomplish this all that Ia neces-
eary is, that q get Of tract indexes, similar to
those kept by tho abstract-makers, properly
records, free to the public. SUCH indexes are
easy, simple, and the cost Of keeping them
posted up not nearly go great ~ to keep
the old-fashioned and practically useless alpha
betical indexes now kept. Substantially, the
tract indexes are kept as foiiors: 4
separate account or separate page
similar to ledger account is kept With each !ot
or tract, and Al abstract Of all instruments tiled
for record affecting the title to such lot Of tract
is kept posted up under tho proper heading or
account. So tfst your attorney, yourself; OF
language, wishing to purchase and examine the
title to any 1oe, can simply step into the Recor-
ders Office. tun to the account kept with such
lot or tract, and see at a glance how the tltlo
stands OF record and all this without an ab-
stract at all; thus. sales Of real estate can be
made, titles examined, and tbs sales closed up
in single dAy. and without auy expense. Some