Press and daily Dakotaian. (Yankton, Dakota Territory [S.D.]) 1880-1889, 1888-10-11
WELL WORTH READING.
a word- with Bui ding and loan III
SeSfors.


--
A Word. with Bui ding and loan En-
VeSfors.
To the Press and Dakotainn: The
TINE mission of building and loan ssso-
Citations is purely local. Until very re-
GENTLY there has been no effort made to
enlarge the scope of their operations. Il
is doubtful whether it can be done with
profit A building and loan association
pare end simple he's no capital. No
money is put up to secure its investors
WHO must rely entirely upon the integ-
rity and capacity of the board of direct
ors. The Yankton building and loan
association is based upon the soundest
principles, developed by many years ex-
perience Of such associations in the east.
Ii issues half yearly a sworn statement
of its affairs, that members may figure
for themselves, what it Is earning and
when it will pay out. Its expenses are
less than 2 per cent of the total re-
ceipts, including interest andpremiums."
Its earnings are over 80 per u
a foreign association Is now Offering
stock for sale IN this city and The :ol-
lowing are some of the reasons II ad.
vances why our citizsRs should patron
ize foreign instead OF home institutions:
That it will bring foreign money into
the city to loan. In the nature of the
case this annot be, AS the association
has no capital, proper, to loan, Yankton
cen only get such proportion of its funds
as she hes already advanced on pur-
chases OF stock, less the expense of hand
ling it. The interest on the loan will
be due and payable to a foreign city, so
that the investment will be q constant
drain away from this city.
That the local association cannot meet
the demand for loans. The local assooia-
ton refused q proper loan and has
now on hand funds to meet all demands.
That the cost OF o loan Is less than in
the iocal al ASSOCIATION. Let US see.
The foreign association gives these
figures for a loan OH twenty shares:
COST Of TWENTY SHARES.
Admission $40 90
Payment at GU cents per month
for SO months on 90 shares. 996 90
Withdrawal iees......... 5 90
Total. $l02l 90
Six per cent for z years on $l400 5SS co
-
Total cost of shares and LOADS 1909 90
Deduct amount OF loan paid
up. ...... 1400 90
Difference -. $2O9 90
ape member will Therefore have paid
the association 5000 more thar he re-
oeived. The cost to him of q loan OF
I$l400 for ever years would have been
5000 or about pa per tent per annum.'
For q loan of $l,445 IN the Yankton
association the corresponding figures
are.
Cost OF IL show the number required
to cover q loan OF ST ,445,
Admission ..,......$ coo
Annual dues. ....-.......,. ~ rs
Dues so cents per month.
for IS mos ........... ia w
9 per cent for 7 years ........... 1,0t2 GO
| Total cost of loan and shares. S l815 7E
Deduct amt Of shares paid up. LOO 0C
NEUTRALITY-SUSPICIOUS.. 10 "a
Deduct $45 over 81 ,400,........ 45 0(
5 10 II
The Yanktou association does not adj
| yertise to pay out inside of eight years
but it's statements SO far and the lack o.
official statements on the port of the
foreign association, make IT quite sure
that the former viii pay out before the
latter, therefore the came time IS given
to bosh losns.
The foreign association gives the fol.
lowing as the ''cost and profit on ter
shares"
4 dmi, sion fee ........$ 10 Oh
Monthly payment SO mos ...... 49S on
Withdrawal Observation-Disclosures. 5 Oh
Total cost. 80. .........S 5l3 0.
Value shares at maturity 1000 o.
Profit. .....$ 4S7 OF
The figures will be in the Yankton as.
ISOLATION for 7 years (93 mos.)
Annual dues.................$ II 81
Monthly dues........ .......... 400 Oh
Total cost.....".............S 437 s.
Value OF shares at maturity."... LOCO OF
front. ."."...."".....-.."S OBJ 5'
For eight years.
Annual Observation-Disclosures. 20 o.
Monthly dues ...........".. 480 o.
Total cost. ....E4....,.. ....S oUU W
Value shares at maturity. 1880 O
wv "
In tbs foreign association shares can
not be Withdrawn under two years, 81
that il g subscriber becomes in any wsy
embarrassed that he cannot continue
his monthly payments, he stands in dan
ger of losing his stock. No profits cal
be Withdrawn beyond 6 per cent unit
the shares mature. This would tend Il
prevent their being sold In case OF neces
sity. In she Yankton association share
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