The news and herald. (Winnsboro, S.C.) 1877-1900, 1883-10-02
Tho Loan SssocIatlon,

The Clerk of tho Court having
granted charter to the "Winhsboro
Savings and Loan Association", the
company is now fully organized and
ready for business. A large number
Of shares have already been subscribed,
and many additions'aie expected with
in the. next thirty days. The advan-
tages 10 be derived from such an insti-
tntion are many, not only to the indi-
vidual share holders, but to the COM
munity at large. Furnishing depos-
itory for small sums of money, to be
paid in at stated intervals, the CON-
pauy offers attractions to many per-
sons to save part of their earnings,
WHO would not otherwise do so. These
savings aIe lent out upon unqucstion-
able security, and the profits accrue to
the members, whether they be borrow
crs or not. In the course Of a few
years, the borrowers debt is paid up,
and he has scarcely felt its burden.
Similar. associations have been sue
ccss!ully operated in other commune
ties, and their advantages have not
been questioned. In the one formerly
organized here, the incXpcrience Of
the operators, coupled with too close
ar imitation Of some features well
adapted to q prosperous community,
but calculated to work hardship in
many cases, restricted disadvantages,
and deferred many persons from vcn-
turing to become borrowers or even
shareholders. Ytit cannot be denied
much good. We know of'morc tran
one instance, in which the borrower
accomplished results beneficial 10 him
self, which would have been i,npossi-
bic to him except through the aid of
the Association! Rccognizingthis'fact,
and proliting by past experience, the
managers Of The Winnsboro Savings
and Loan Association have sought to
eliminate every feature which might
involve hardship, upon the borrower.
l 1t may be we'll, in This connection, to
say something Of these matters:
/. The rate Of interest. Under the
old law the rate might go to any ex-
tent. At present it'*'is limited to ten
per cent. per annuna. .".
2. The method of lending, in the
old Association, was complicated and
perhaps Elusive. The borrower paid
six per cent. per aanum, interest, be-
sides a certain monthly sum MS '"pre-
mium"-a sum seemingly small in it.
self, but in reality making tho interest
paid greater than most men could bear,
and greater than most borrowers real
lied thoy were paying. In the new
Association the borrower pays simply
interest, not less than seven or more
than: ten per cent. per a,''nuan, payable
monthly. Every borrower, knows just
what Interest he has TO pay.
3. The penalties for non-paymcnt of
interest and other monthly dues were
too igh---involviBg' absolutely ruinous
results to an unfortunate borrower.
The penalties under tho regulations of
the new company arc light: ~Ona loan
Of $500, after non-paymonf. for three
months, the entire penalties on the
interest and on the instalmepts ION
stock 0his instalment being one dollar
per month on each share Of 3100)
would be but $2.73. This estimate is
on the supposition that the money was
borrowed at the maximum ratc-ten
per cent per amman.
4. Under the old Association Che
borrower could not return his money
and release his, security, unless hc
found substitute to take his loan at
the same rate, or unless he made good
70 the Association any difference be-
twccnthc amount Of interest and the
premium he was liable for, aud the
amount ai:new borrower might give.
In other words the original borrower
4 was bound for tho whole interest and
premiums for tho whole life Of the
Associatiom; Under the new concern
the borrower may release himself by