The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1891-03-01
SAVINGS ASSOCIATIONS.

To the Editor Of the Eagle
The American Savings and Investment
association is 8 new organization JUS,
started in our city Its primary purpose
is the saving and accumulation OF funds
by small PAYMENTS. and its motto Is save
your earnings and be independent IL Is
based on genuine cooperative principles.
aud differs from the usual methods OF NE
insurance and similar organizations IN
that it does not hold the funds received for
life or a number of years TO accumulate IN
the treasury OF the company, but imineci-
ately on receipt of funds it commences
their distribution. It's certificates are OF
the par value of 500 each and are redeem
able in numerical order, and according TO
the basis of the associations computation
no certificates will remain outstanding ior
a longer period than four years.
A single certificate costs s. or FIVE certi-
ficates SIS, and 81 per month on each certl-
ficate. II the certificate is redeemed at the
expiration of four years IL has cost the
owner-entrance fee, 50: monthly dues,
four years, s4S, or a total of s53. For this
he receives from the company It's par
value, viz, 500.
The inquiry naturally arises how can
the company pay back 500 for every sos
received2 This is the answer: The pronts
of life insurance and all similar invest
ment associations are derived mainly from
four sources, viz; Lapses, fines, interest
on reserve fund and increase OF business
Experience has demonstrated that the law
of Lapse is as certain and uniform as the
recurrence of the seasons. In al the
standard life insurance companies lt Is
placed at p per cent per annum. In TINS
association it will not be so great, because
the time of the investment is, on the aver
age. much shorter. Suppose therefore. II
| is put at but Is per cent per annum,
| % per cent of each payment goes TO the
reserve fund and 65 per cent TO the certln-
cate fund Now in four years the holder
of certificate has paid in S53 TO per cent
| of this amounts to S34.45 lapse Ior lour
| years at 10 per cent per year amounts 70
| $50. interest on the Investment fund three
wears at per cent s24, making total oil
! Slls As in the hands Of the association To
| redeem the certificate and the association
growing stronger each year and putting
| itself in condition TO redeem its certihcates
| at still earlier period.
All mutual benefit associations reward
| the steady and continuous contributor al
the expense of the negligent, careless and
| Indifferent ones. In fact, the accumuia,
lions of the thrifty in every department OF
| industry is made at the expense OF the
negligent, lazy and reckless. This associa
| ton is in the hands of competent, reliable
and experienced business men and starts
out very promisingly, having already over
two hundred certificates applied for.
1t deserves the encouragement OF every
western man. 1t enters the field in opposl
| ton to eastern associations and with
determined purpose to rout the notion OF
great many people that no successful or
gunization of this character can succeed
unless it is located in New York, Boston
or some other eastern city.
1t believes in western men keeping tnei
funds in the west where they can have
personal knowledge of the manner TIT
business is conducted, and has provided al
absolutely safe investment for those VIII
wish to accumulate funds by small month
lv savings 1t is vertically a home builder
because it enables those who can save bu
few dollars at time to accumulate II
their four years a sufficient sum TO procur
modest, comfortable home. 1t ais
avoids the risks of financial crashes, o
breaking banks, because the money Is pal
out as it is paid in TO the association, ant
coming from numerous small source
financial disturbances cannot efface 1t.
This is an institution for the bench
and good of the masses and not the few.
and will prove a blessing to all that WI
| narticiDate.