, 1874-05-20
ntILDINd AND LOAN ASSOCIATIONS,

70 tho Editor Or The Chtcaao Tribune:
S1R: Allow mo to notice ali article published
A1r. Charles G. French, Explanatory Of tho work.
ings OF the "reoples Building anl Loan AsHo-
eiation," recently organized IN your city, Mr.
French has the assurance to tell IN in1ulr1ng
rowora are not required to repay loans, and
that "Heourity il given only for payment OF iii
forest md duos on Htock, aud also that tho bor-
towo1B FARO Aharora IN tho profits Of the Asso-
rate of interest" This is yory tlatterins atate-
nlent indeed Of tho workings Of the Peoples
Building and Loan Association, as certified to BY
Mr.. Trench, and. II thia i, statement should
rations Of th,s Association in Chicago,
1t will completely upset those old fogy ideas
Of the lenders OF money in past yearE,
who havo always insisted upon the payment Of
subsequent period, to be agreed upon by tue
contracting parties. Tic arguments made use
Of by the knowing ones, who manage thoso ill.,
stituttona to sustain tho views aes forth in hlr.
French's communication, aEo Nell calculated to
deceive those WHO arc not accustomed to con-
slider these questions In all Of their bearings.
There are, however,. goodly number OF COM
| mon'senao people who hollovo that tho system
upon which these associations nro baaed Is
cll.,ningly-aeyised schemo. worry plausible IN its
| character, but, nevertheless, dishonest In itB
conception, faae IN its general conclusions, and
ruiuous to every poor MN who has tho tomority
l =
aentations that the repayments OF !oana aro NOS
required, and that tho borrower shares In tho
profits Of tho Association, arc not true In any
| nArtioular tue statement Of Mr. French to tho
contrary Notwithstanding.
| A moments reflection must convince every
hound thinking man that tho weekly or monthly
| dues naid in nro nothing moro or less than 10
| much Of the principal borrowed, which, added to
| tho interest, to be paid wookly or monthly on
| tho loan, will at the end Of 100 consecutive
| months make tho aggregate OF Payments equal
| to the actual amount Of money loaned, together
| with the discount or premium bld-for priority
| Of Ioau-added thereto. Tho profits In which
| the borrower Is said to have an equal share are
lust bis proportion Of tho sum borrowed, aud
| which waa paid In as duos On "atock, with ao'
orued Interest thereon. paid to Mmse!f aB inter-
est OH lliH loan.
the borrower will find. aB bofore stated, that II
will reouire 100 consecutive payments to reph1
the loan and interest ab agreed upon a
the timo tho loan WIZ made, and ht
will also find that 1t lo bids 90 por con
discount which IL equal to l00 per cen
premium on slares. for priority OF loan, no W..
IN that caae pay just q per cont for tue aotna
sum borrowed, having, aa will DO soon' naa l. tn'
uHo OF @100 lii cnBii for four years aiia w
months, being oquated tlmo. III CONCLUSION. o!
low mo to nay that the people Of Ohio havo hat
about eight yearH' experience In tho Pract1ca
workings Of these RuAoclationA, and all AoAoa
mon hero pronounce tue Byate1n to po 6ta
pondous coniaenco-gamo operated by shy!ooh ylI.'
who always demand their pound OF flesh. WIth
out any fear OF pnniHtmont, though. tlioy dratl
i the last drop Of blnod from tho poor man'
.. heart Very respectfully yours. T. H. D.