The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1883-04-08
The Pioneer Loan and Build
ing Association.

@a-AS@ON@NNN~N~
An institution of this character
has been so long needed in our
community, and its objects are so
closely identified with the best
interests of the people, that we
print the full text of the circular
which has been issued by the assc-
citation. 1t will explain itself, and
runs as follows:
A loan and building association is q
saving institution for the people, In
which the people have the benefit Of all
the profits. The plan is such that every
dollar paid into the association is cslcu-
lated to earn compound interest; and
every member is thus enabled either
rapidly to save up capital which he
may freely command, or to become, IN
a short time, the owner of his own
homestead or Of other real estate.
The Pioneer Loan aid Building Asso-
citation was formed for these purposes,
and was incorporated under the statutes
of Utah, on April 7th, 1888. Its bust
ness is conducted upon the same prin-
ciples, and protected by the same safe
guards as the business of q regular
savings bank, Its plan OF business Is ss
follows:
Anv person, male or female, OF lawful
age can become q member and enjoy the
benefits of the association, by subscribe
ing one or more shares. Each share has
a face-yslue Of $500. For every share OF
stock subscribed, the member pays into
the association 81 per month. The board
of directors hold meeting on the fourth
Thursday of each month at the Office OF
the association, for the purpose of re-
ceiving these monthly payments of 81 for
each share from the mem bars. All the
money which is thus paid into the asso-
citation every month is loaned out,
and earns interest. Such loans
are made to members only, each
share Of stock emitting the member
to loan Of 500 out Of the funds Of the
aesocistioR. Thus, If q member de-
sires 8 loan Of $1,000, he must hold five
shares. If there be two or more mem
bers who desire the same loan, the money
IL sold at auction in open meeting that
ia, the money is loaned to the member
who shall bid the highest premium for
the privilege Of receiving it. This prem
ium consists in q number OF cents to be
paid monthly in addition to interests and
dues.
Now the interest received on such
loans, and the premiums paid for the
privilege Of taking loans, are again loaned
out, together with all other regular
monthly receipts, thus earning interest
upon interest. It is plain, therefore that,
as year by year passes, the funds in the
hands Of the association rapidly increase,
until at lkst the association will SrriVe Rt
8 point when it will have money enough
to pay each stockholder two hundred
dollars sor each and every shBre of stock
held by him--or in other words, the par
value Of his shares. When that time ar
rives the money is divided, and each
stakeholder receives the amount bis
shares call for.
EIt Is calculated that in country where
interest on small loans rules at ten per
cent. and upwards, each member who
DAYS one dollar per month on one share
Of stock for about sixty months, will re-
ceive the face value of two hundred dol
| lars for each share. In other words, be
has gradually, in those sixty months,
put ut $50 at compound interest go thai
his $50 have in that time increased tC
| S2OU.
1t is easily seen therefore that won
! derful saving can be effected By the in
vestment Of 81 per month in the associa
ton.
When member has taken loan from
the association on his shares, that loan il
wiped out and cancelled as soon as the
association is ready to psy $500 FOL
each share. An illustration viii bes
show the great advantage # borrowing
from the institution.
Suppose member holds FIVE shares
He desires to borrow $1,000. AS be il
entitled to loan OF $2o0-.oI
each share he borroRs the 81, 600
from the association on his FIVE shares
This $1,000 helps him to buy his hous
and lot, the association taking a mort
gage for the amount. His monthly due
and interest would be as follows:
Dues on Ave shares. .........S 5 per monti
Interest and premium, say IL "