The daily gazette., 1876-08-31
For the Gazette.
Running OWf'' Of Loan fssOci.
UfiOnS.

NIkOHS.
EDITOR DAILY GAZETTE:-W he various
enterprises in the community that are Of any
public or private good are rec si-ing share
Of attention, in order that they m ny be pro-
perly understood and appreciated: there is
still ano ther. that has passed the mere ex-
pertinent. and has long since become an es-
tablishod fact and a power for good, aud will
comp ire favoraby with many ;her financial
or public enterprises. aud yet the ignorance
of its real work and mode oe operation is
daily more strikinsIy m anifested.
allude to the Loan Associations of our
city. They have been and still are here and
elsewhere a great public good. without either
show or parade. These Associations have a
membership Of about 400 900. and capital
invested of over $i0J. .0c0 600. and yet the Ere.
judice entertained by many against them
amounts almrst to persecution. During the
last ten years they have been the means di-
rectly aud indirectly of erecting IN re.
dvel -ings in Wilmington; of placing
more me hancs and laboriDg men in posses
sion of comfortable homes clcar of deb. OF
sNing moro mo ley tor uen. women and
children of sm NJ means "tcompelling and
estaoiishing hab + -! ccoaouy industry,
sobriety and tlritt than any other private or
public enterprises. all of which tends directly
to improve the IN lrLI and finapcial condition
of our city. II fact tlat is very rarely acknow-
lodged, but on the other hand we are con-
stantly being told that they are Shaving
shops" "humbugs' "nuisances" and other
| names much less refined. much might be said
| on various points. but will allude to but
one at this time. 1t iskDown to many that
quite number of our Loan associations have
| recently matured their first series, whi,h is
very gratifying to mIny. as well as a source
OF great relieffrom the payment of monthly
dues and interest. The membership was
composed ofboth borrowers and investors
as all such associations are; the investors
very justly considering our assoca tions very
safe and profitable place to invest their money
| concluded not to borrow nor withdraw. bu. to
continue their memb bership until tn cir shares
reached their ultimate value OF $500 each,
For so doing no objection could be urged i /
being understood by them, that o per cent,
interest," per annum would be p i'd on the
amount due until the same be fully paid
Those who failed borrow or withdraw their
money prior to the maturity of heir shares.
then found the associations without the cash
| on hand Alto meet the demands made upon
then not for want of abb ity topiy. but be.
cause the monthly receipts under the laws
Of the associations are required 10 be loaned
out Immediately that the members may know
that their money is kept constantly and
safely invested, that nothing be lost to the
| Association. which would be the case both
| by borrowers and investors BY keeping a
large amount OF capital idle Tor the payment
at a certain time OF those who do not borrow,
| thereby greatly retarding the progress. of the
Associations and compelling. those who do
borrow to pay both dues aud interest much
longer than they should. And at the maturity
Of the lst series it become necessary to adopt
| bers of that series sheuId pe paid
1T could not all be paid at once and to pay
ace9Tssesee 4SSBsff artaii rfsrtiieate or alGhabs
| tory to the first series members, finally they
decided that the money to which there are
entitled monthly tbeing. q Of the receipts)
| should be sold to the highest bidder in order
10 establish preference impartially among
| themselves, and the premiums that they pay
shall not go to the benefit of the associations
but be kept separate and be paid back to the
| members of the first SERIES pro rata. in addi-
tion 10 the interest at per cent on the whole
amount due from the date of the maturity of
toeir shares. thereby rendering The invest
ment one much to be desired by any. as it
| always pays over u per cent and the longer
| it continues the lorger will be the rate o. in
terest paid. And as to the security for the
payment of the amount due, it may be con-
sidered first GLASS botn in quality and in guam
I
double the amount due. and these are in
crea,ing mont bly, while the amount due is
being as rapidly diminished. Nothing can
be more tafe OF sure TO be paid and the in
terest paid will not only be per cent bul
win be increased to Z or per cent or perhaps
more. by reason ofthe premiums that are
being paid monthly as above explained and
divided exclusively among the holders of the
matured stock. The question is very often
and with propriety asked "is this the expe-
rience of all associations operating on the
serial plan?" tits. when an association al
series as did some in this city, some Of whose
members about3 years before it was done,
Il agitated the question of introducing the
serial plan" which if done at that time
would have avoided the present Indebtedness
and shortened the time of .'runging out" to
about 81 years but those who could not see
the feasibility of the plan" where greatly in
the.majority and the measure had 70 slumber
on.