Wichita eagle. [volume] (Wichita, Kan.) 1883-1888, 1883-11-08


\ savings fund, or loan fund association into
which they make their stated payments in
due season receiving back their money in
creased by sccumulations Of an unusually
high rate of interest. The shares of al
the members, be the borrows or investors,
advance, OF course, at the same rate and
reach the same ultimate value ut the same
time. In the case Of the former, that val
ue has been anticipated and drawn in nd.
vance they have nothing more to look for
unless indeed they hold larger number
of shares than whose par value is equal to
the amount borrowed by them and are as
to such excess merely investors) except to
be released from any subsisting liability
for what they have already received. The
latter have as yet taken nothing, their
money has gone on accommodating until the
shares having attained to their fixed value
they are entitled to receive that amount in
payment Of them. 1t is, therefore, practi-
cally and legally quite immaterial whether
that period of maturity be described as to
the period when the funds of the society
shall be sufficient TO distribute a certain
sum to all its stockholders, or whether IT
snail be sufficient, after canceling the obli-
cations OF borrowing members, to distrib-
ute that sum TO the unbalanced members,
but it would be Incorrect to suppose that
the latter is the supreme object OF the
building association scheme, 1t is merely
result. The principle aim is to provide for
its members DESTROYS OF owning homesteads
the opportunity Of obtaining advancements
with facilities for gradual liquidation not
elsewhere to be obtained, which together
with the mutually of the whole plan am
ply compensates fos the apparent cxorbi-
fancy OF premiums and interest, keeping,
however, ever in constant view the inter-
ests of the investor as well as OF the bor-
rover. These associations are founded on
mathematical calculations, and close
scrutiny OF their charters will show that
their rules are based upon the highest
principles OF equality and fairness. The
least complicated form OF the scheme is ex-
hibited in what Is known as the Terminal
ing Building Society simply, and is the one
usually adopted. A number OF persons
form themselves into a society OF which
they become members by subscribing for
one or more shares Of certain paid up val
ne, and not exceeding in aggregate the to-
tai capital stock allowed such societies, by
law and by their charters. Upon each
share a fixed monthly, or weekly, las the
case may be- subscription OF uniform
amount is payable throughout the whole
duration of the society, the purpose being
TO continue the same until the members
subscriptions, by the aid of investments
made from time to time, shall amount to
fund large enough to give to every men,
Der upon every share held by him sum
fixed by the charter at the commencement.
The length OF the associations possible
continuance is limited by charter, and the
payments required from the shareholders
is SO adjusted as to guarantee, on the score
of long experience, its running out within
that period. The members all start from
the same date, and should any one be per-
mitted to join the society subsequently to
the time limited for taking subscriptions
he will be required to make back payment
of an amount equivalent to the value of
the stock held and payed on from the be.
ginning. Whenever the society has on
hand a sum equal 10 the full value Of
share, or when by law required ut stated
intervals, loans will be made TO members
upon sufficient security. An assignment
held by the borrower to the association be-
ing usually required by way of collateral
security. The member then, In addition to
the regular subscription, pays also month
ly, or weekly, as the case may be, the legal
interest upon the full face value Of his loan
or upon the amount actually received by
him according as the one or the other may
be demanded, and these duties are stipu-
lated in the mortgage which becomes avail
able for their enforcement In the hands Of
the association. When the time has arriv-
ed for loaning money 1t is put up in sums
equal 20 the full paip-up value OF share
at auction, and the members desiring the
loan bid, in competition, the amount they
are willing TO allow rs discount, bonus or
premium for the preference. This Is In.
cluded in the obligation given by the bor-
rover who makes himself liable for the
payment of the full amount to the associa-
ton. Thus IL the amount offered be 81 900
in five loans of s2cO each. (that being the
par value OF the shares) and the premium
bid be $50 on each loan, the person receiv-
ing the Advancement would execute his
obligation to the society for 81 900, taking
from it ESQ; in other words, he receives
$3.50 and agrees to repay together with
premium, or bonus, of $3.50. 1t is under
stood that he has the right to make the pay
ment in the proceeds Of his stock in the
society when 1t has reached its ultimate
value, and in the mortgage, or bond, he
gives for the loan he stipulates to keep up
his payment upon such stock, and usually
he assigns the stock itself as collateral Sc
curity. When the association is wound up
the borrowers stock is set of against his
debt, and the two being eqnal both are
cancelled. Each member is entitled to re-
ceive a loan, and the amount he receives
may be equal to, but not beyond the paid
up value of his whole stock interest.