The herald., 1898-02-27
OFFICE OF. THE HERALD,


OFFICE OF THE HERALD,
~ gH Los Angeles, Feb 26, 1893.
g what we gain by experience Is not
worth what we lose In Illusion"
circumstances sometimes como TO light
which reveal q certain Inconsistency in the
working out of plans. the prosprctuses and
advertisements OF which abound in self
laudatory tributes to the value of savings
placed with "opr' association. Many an
investor has no doubt dreamed of what he
would have whtn his pttc savings would.
like the acorn, 10 a large oak grow. Gig
ures don't lle." is perhaps true saying
but sometimes how queer those figures in
reality look, when instead Of few num-
erals denoting something, they vturn out
to be a series Of ciphers
a complaint was recently filed by local
pulldlng and loan association to foreclose
a mortgage given by one of its borrowers
The prospectus of this association and its
= printed treatise on "A judcous Invest
g ment' with illustrations of how the plan
locked In figures affords sharp contrast
to the actual state of affairs as revealed
In the complaint referred to.
In the brochure Uf How to Get Rich"
is a table showing how an individual might
borrow sum of money and by paying a
certain amount monthly, would with ac-
loan after period of seven years.
3 Yals little fairy story OF the benefits of
savings Accumulated Profits" pre-
miums, ETC., reads as If the plan set forth
were some great philanthropic scheme de-
Vised Tor the welfare of the borrower. The
prospectus gives the following illustration
Oh now borrower can pay for his home IN
seven years and what 1t will cost him.
i l1Oal OF ..,...................... $1,000 90
zen shares, cost per month. ......... 600
interest per cent on 1000 loan, per
month NEUTRALITY-SUSPICIOUS.. ........... 900
Premium dividends on $1,000 loan,
per month ACKNOWLEDGEMENTS. 500
Total cost per mnoth on loan of
$1,000 ACKNOWLEDGEMENTS. 1000
On q seven years estimate the bor-
rover would pay SIG per month for
eighty-four months which would
amount to .......................... 1.3i4. 90
Less amount loaned ................. 1000 90
Cost of loan of $1,000 for seven
years Observation-Disclosures. 344 90
The party in the complaint referred to
borrowed the sum of $3.50 over four years
ago. during which time he has paid to the
association over $72O. The complaint states
the whole value of his shares to be above
5000. and prays for judgment for above
$l050 Offsetting the table above given, the
actual transaction as stated would appear
as follows:
Loan of ..,..................... 81 $50
Total paid into association in over As
A,,oot A. d2o
Leaving total of...................$17 of. no
which he would have to pay into the asso-
ciation If he complied with the demand of
the complaint.
AT this same ratio in eight years one
year longer than the associations pros
pectus allows for Il liquidation, this bor-
rover would have result something like
this to ponder over:
Amount borrowed .....................S12 $50
Paid to association in eight years i40
Amount then due association ....... $50
Cost of si25o loan ...................... 50 200
after years of payments.
He would then have paid In eight years
TO the association 800 more than he bor-
rowed and would still owe $3.50
The figures stated are the round figures
mentioned in the complaint. and careful
perusal of the above will show an appalling
set of results
The report of the condition of the First
National bank of this city, which will be
FOUND in another column, gives figures al
q the close of business on the 18th inst The
report shows resources amounting to So
7691l9.93; deposits, 81 SIS, 9S2.57; loans and
depostors of S66S 09i.S0. The bank is in d
prosperous condition, each succeeding
, statement showing a gain that reflects
credit on Its management. and attests the
favorable increase in business conditions
locally.
o o O
While possibility of an alliance with
Japan is being discussed. and the compet-
ton OF that country and other industrial
nations in Europe and elsewhere are un-
der consideration, it is interesting to learn
that British trade is not yet much hurt
says the Iron and Coal Trades Review
There Is, however, one notable exception.
Japanese coal, the exports of which have
risen in value from under $2.O 900 in 1885
to over S6,5OO,0O0 In 1896 is said to be driv-
ing English coal. except for special pur-
poses, out of every market east of Singa-
pore, and may be found even as far west
as Calcutta. The opening up of Japan the
growth of her native Industries the de-
velopment of her commercial activity
have introduced to us competitor whose
energy and enterprise seriously, no doubt
threaten certain branches of our trade and
industry. The entire foreign trade of Japan
has increased three-and-a half fold in
about ten years. and of this increase i'm
ports from foreign countries have risen
from SIS 100000 to $120 900, 600. or close on
four-and-a- -half-fold. During the same Pc
riod British shipping entered and cleared
from the ports of Japan has increased from
under 1.500,0O0 tons to 100000 tons. The
British empire now takes more than 40 per
cent OF the Japanese foreign trade, or, in
other words, the trade between japan and
the British empire alone Is today nearly
half as much again as was the entire trade
between Japan and all foreign countries