The Abbeville messenger. (Abbeville, S.C.) 1884-1887, 1886-02-02
A:AY1NG BY FOR A RAINY DAY.

The Ahbeville Building and Loan AS.
ISOLATION has begun its work Under the
control Of active, successful and relia-
BILE business men. 1t can hardly fail to
prove remunerative to it's shareholders,
and Of great benefit to the county at
large, with its numerous and prosper
our towns and villages and its large pop
u~lation. These associations give to
young men especially a safe and secure
means of laying by each month a small
sun of money which added to he small
sums Of the other members make an
aggregate which can be loaned out on
good security. OF course any Young
man can put up Eve dollars a month in
his trunk or safe, but it brings him in
no interest. 1t is like the talent which
the servant in the parable wrapped in n
napkin and hid in the ground. More
over, few will voluntarily do this.
Whereas these associations enable him
to put his five dollars out ut interest un-
der control Of men Of his oyn selection.
We have heretofore explained the mo-
DIS operdndi, but it may not be amiss
to do SO again briefly.
Each share is worth one dollar Mt
starting. Membears pay in every
month one dollar for each share that
they hold. This aggregate sum is loan
ed out to applicants upon security the
title to which is favorabiy reported by
the Solicitor and approved by the Board
Of Directors. Members Of the Associ-
alton have preference of loans. But
their security offered must be Of the
same nature and undergo the same ex-
animation as that Of an applicant who
Us not a stakeholder. The Association
winds up when each share is worth two
hundred dollars, which occurs usually
in from six to eight years. A member
may borrow two hundred dollars on
each share that he holds upon the con-
.ditions above mentioned. or course a
member has the advantage in borrowing
over ono who is not q member. For in
stance If q member OWNS five shares he
may borrow $1,000, upon this he pays.
say at ten per cent, for eight years $500.
He also pays his monthly installments
of SIS, which in eight years amount to
$3.50. When the Association winds up
instead Of drawing his $1,000, his mort
gage and other security is surrendered
to him and his debt is thus cancelled.
Now suppose one who is not a member
borrows $1,000, he pays at the same rate
interest to the Mount of $500 in eight
years, at the end Of which time he must
also paw the principal sum, $1,000.
Tabulated it stands thus: -
ACKNOWLEDGEMENTS. $1,000,
Interest for eight years, $500, $500
NEUTRALITY-SUSPICIOUS., $3.50,
Interest for eight years, $500, 1920
Difference in favor Of member, ) $40
This $500 represents the gain Of the
money paid in ny the men bcrs.
These figures are not given AZ abso-
lutely correct" because certain expenses
must be deducted from the income of
the company. But they are sufficiently
correct to represent the plan npon
which it works.
The Association in no wise conflicts
with the business Of the bank, but re-
ally is in harmony with it.
1t can lend money upon real estate
securities which the National Banks
cannot do.
The shares Of the Abbeville Associa-
ton are limited to one thousand.
Enough have been taken to begin
work on. 1t is desired that others be
taken by citizens in the comfy. They
arc cordially invided to investigate the
workings Of this Association and invest
in its shares