The Bolivar bulletin. [volume] (Bolivar, Hardeman County, Tenn.) 1865-1888, 1877-11-22
building and Loan Association Needed in
ElnIIrnr

!
Bolivar,
! Throughout the entire East the laboring,
Business and professional classes have accl-
INFLATED vast sums of money through the
economical and safe operations of building
and loan associations. Philadelphia has
/ hundreds of such institutions and her manu-
( featuring supremacy and stable labor element
are chiefly due to the aid rendered those of
! limited means to secure homes and project
manufactures. Richmond, Va, and Mem
( phis have these institution in successful
/ operation. Another commendablc feature
: of these associations is that they enable per-
sons to accumulate each week their small
savings. We have in town large number
OF persons whose interest it would be to es-
tablish and maintain an enterprise like the
one under consideration. Below we give
the workings of a Building and Loan Asso-
citation and point out some OF the benefits to
be derived from the same:
Every association Is Incorporated with
general powers to sue and be sued, to hold
any personal property or real estate, given
in payment OF any debts due the corpora
tion, and sell the same for corporation Pur-
poses to elect board of directors, consist
ing of president, vice-president, secretary
and treasurer, and to appoint such subOrdi-
nate officers and agents the business Of
the corporation may require. The object OF
such corporations is the accumulation of
fund to be loaned to the members
of the association upon such security
US the constitution and bylaws shall direct.
The stock Of the company Is limited to two
thousand shares of two hundred dollars each,
in any one series. When a sufficient sum
has been subscribed the company may
begin business. On each share Of two hun
drcd dollars there is paid a monthly install
ment, in advance, of one dollar Borrowers,
in addition to THE installment, pay their
interest also; this constitutes the fund which
is loaned The stakeholder who shall bid
the highest premium fer the priority Of loan
is entitled to receive Il loan of two hundred
dollars, less the premium bid foc loan, on
each share of stock held by such stockhol-
der, giving such security as the bylaws
require. In order to illustrate she subject
let us suppose that one hundred persons
subscribe five shares each, 81 900. On j
certain day in each month the stockholders
pay into the treasury s. each, making the
sum of $500. This amount Is offered at
public auction to the members. The mem
Der bidding the highest premium is entitled
to borrow the amount of his shares, less the
: tI,-
$40 he may borrow SlGO on one share or
$500 on FIVE shares. He then pays monthly
two dollars on each share. This amount
thus borrowed and secured as required by
the bylaws he may not return, continuing
to pay his monthly dues and interest, until
the earnings of the association will enable
it to pay off its stock in full. Let us see
how much the borrower has paid into the
association, and what he gets for his money.
If money Is in demand and the premiums
large, the association will close its series in
eight years. The man who borrows $500
pays $40 per month or Sl2O per annum. In
eight wears he will have paid into the asso-
citation $500. He will then be entitled to
the payment of his stock in full, $1,000 less
$500. The party who loans will have paid |
$3.50 and will receive $1,000. The advantage |
of easy payment will be readily realized by !
all who have been borrowers. \ farmer /
wishes to clear one hundred acres of land. .
He can borrow from an Individual sufficient .
funds to do the work, vet the party may
want the money repaid in twelve months; /
the borrower cannot do this, consequently /
cannot borrow, and the land remains |
unclcared. 4 party wishes to build house. /
He may be renter paying SO per month /
rent. He goes into building and loan
gives the association his deed .
to a lot, borrows the money to pay for
house, and by paying the rent to the asso-
at the end OF eight years owns his
home. The borrower pays simple interest,
Jet the lender gets his interest compounded !
each month. One member cannot take
more than fifteen shares in each series
may retire from the associa-
ton at any time without loss. Upon the
death of stakeholder his legal representa-
paid by him with interest on the same, or
they may continue to pay the monthly
premiums and hold his stock.
We commend it to our farmers. Two or
three well-rcgulatcd associations would do
much to develop our county and advance
its prosperity. Let us have an organization.
1t is no new things. Almost every city in
the Union can boast Of one OF more strong
institutions of this kind.