Elmore bulletin. [volume] (Rocky Bar, Idaho) 1889-1906, 1891-06-20
THE PROTECTED LOAN SCHEME.
You Can Get = Cash Advance Right On
" You Comply with rrciirninsries.

You Can Get Cash Advance Right On
" You Comply with rreiirninaries.
One OF the greatest problems that
has for years confronted people who
chance 10 have spare cash and will
ingness ''to oblige friend with a
loan" is to accommodate the worthy
borrower. and. on the other hand, get
rid Of the nuisance who never repays
anything. What promises to be a
widely popular and successful mode of
accomplishing both these desirable re-
suits is the project recently invented
by Two bright young newspaper writers
of this town, and called the protected
loan plan.
II is a cooperative scheme somewhat
similar in it's workings to the system
upon which building and loan associa.
tions are conducted. and its benefits
are greatest To clerks and Others OF
somewhat limited income who may
enter into the plan. Any number OF
persons from dozen upward can or.
ganize one of these protected loan as
sociations. The two original associa.
tions were established by twelve men
signing an agreement TO pay To treas.
urer, who was one OF the twelve, &f
weekly for period of sir months, the
understanding being that the money
should be used at the end OF that time
to help defray the expenses of a vaca
ton jaunt in August
Each member agreed TO pay five
cents week premium upon every dol
lar advanced when he found IL neces
sary to borrow For this he gave his
personal note To the treasurer, agreeing
that the loan should not run longer
than six weeks. The rules of the asso
citation were drafted to give any mem.
Der the right to borrow twice the
amount OF money invested and To draw
out at the end of five weeks IL he chose.
The premium paid for the loan was
used rs interest. and at the end OF sir
months the aggregate Of premium
money was TO be divided equally among
all the investors Ii was estimated
that NJ the end Of six months each man
would draw out $56 in cash. or $40 re.
turn on ms total investment.
The plan was "a success from the start
and the membership steadily increased
Men in the association were spared ap
plications for loans when IL might be
inconvenient to advance them and dis
tasteful to decline by being able to re
fer the applicant 10 the treasurer OF the
association. II was esteemed a valua
BILE privilege. Half of the money col
lected for dues was regularly deposited
in the bank az the end Of each week,
and is now drawing per cent. inter.
est
The great value Of the scheme over
and above everything else, however.
was the manner in which the treasurer
was able cifectually to get rid of
chronic borrower, who sought To avail
himself of the privileges of the associ-
alton. One of the rules stipulated that
not more than one loan could be made
To an applicant at any one time, and
that in order To- be accommodated
again the first loan must be paid, TO.
gether with whatever interest might bs
due ON II. This knocked the borrower
out for he kicked" right at the start
against the shylockism OF paying inter.
est ON gentlemanly loan, and the
treasurer declined TO have anything to
do with him Neither would any OF
the other members when they heard OF
/ the incident
This interest, as you call it," ex.
claimed the treasurer. lis shared among
/ all of us and goes toward vacation
money. The man who would object
to paying il cant be much good"
Another rule of the new association
requires the payment Of a five cent fine
for each failure to pay dues promptly
at the end Of the week
| The scheme can be made more prof
table still to investors in the protected
loan association IL the means of the
members enable them 10 put in g
weekly instead of OIL. The association
is, Of course, protected against loss by
the privilege OF suing on the personal
note OF any borrower. But ii is claim.
ed by enthusiasts ON the subject that
nobody ever succeeds in imposing upon
the treasury The right to reject ap
rlications of rather shady reputation
in the matter of repaying loans is an
effectual barrier. they say, against such
! borrowers. New York Sun.