The Maryville times. (Maryville, Tenn.) 1884-1944, 1891-01-14
THE PROTECTED LOAN SCHEME.
You Can Get Cash Advance pivnt OF

hi PRO IEC led LOAN SCHEME.
You Can Get II Cash Advance ni-,,t on
II YOu Comply with prtlimi''rf'
One of the greatest problems that
has for yc;rs confronted poo,}le who
chance to have spare c0@h and will
ingness ito oblige IL friend with a
loan" is to accommodate the worthy
borrower, and, on the other hard ~1t
rid of the nuisance who never re -
anything What promises to b. y
widely popular and mlcccssful rlo,'r Of
accomplishing both these dc.'irahlp re-
suits is the project recently invented
by two bright young newspaper writer's
of this town. and called t.ia protected
loan plan.
1t is u cooperative scheme somewhat
similar in its workings to the system
upon which building and loan aas0cia,
tions are conducted. and it's benefits
are greatest to clerks end 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 assoca.
tons were established by twelve men
signing an agreement to pay to a treas
urer, who was one of the twelve, 81
weekly for period of six months. the
understanding being that the money
should he used at the end of that time
to help defray the expenses of vaca.
ton jaunt in August
Each member agreed to pay five
cents a week premium upon every dol.
lar advanced when he found it ncccs.
sary to borrow. For this he gave his
personal note to the treasurer. agreeing
tilat 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 if he chose.
The premium paid for the loan was
used as interest, and at the end of six
months the aggregate of premium
money was to be divided equally among
all the investors. 1t was estimated
that at the end of six months each man
would draw out S3G in cash, or $40 re-
turn on his total investment.
The plan was q success from the start
and the membership steadily increased
Men in the association were spared ap
plications for loans when it might be
inconvenient to advance them and dis
tasteful to decline by being able to 70
fer the applicant to the treasurer of tn,
association. It was esteemed valua
bic privilege. Half of the money col
lected for dues was regularly deposited
in the bank at the end of each week
and is now drawing per cent inter
est.
The great value of the scheme owe
and above everything else. however
was the manner in which the treasurer
was able effeotually to get rid of ,
chronic borrower, who sought to avail
himself of the privileges of the associ
alton. One of the rules stipulated tina
not more than one loan could be mad,
to an applicant at any one time, ant
that in order to be accommodates
again the first loan must be paid, to
gether with whatever interest might b.
due on it. This knocked the borrowe
out, for lie kicked" right at the star
against the shylockism of paying inter
est on gentlemanly loan, and TIN
treasurer declined to have anything t,
do with him. Neither would any o
the other members when they heard o
the incident.
This interest, as you call it," eA
claimed the treasurer, is shared anon
all of US and goes toward vacation
money. The man who would objec
to paying it can't be much good"
Another rule of the new association
requires the payment of a five cent fin
for each failure to pay dues prompt
at the end of the week.
The scheme can be made more pro.
table still to investors in the protecte
loan association If the means of tn
members enable them to put in :
weekly instead of 81. The associatio
ia Of course, protected against loss b
the privilege of suing on the persona
note Of any borrower. But it is claim
ed by enthusiasts on the subject tina
nobody ever succeeds in imposing upo
the treasury. The right to reject al
plications of rather shady reputatio
in the Iuatter of repaying loans is a