The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1903-09-10
BUILDING AND LOAN ASSOCI-
ATOMS.

ATOMS.
Succinct Calculation of a 81 900 Loan
In an Institution of This Kind-tiow
the Plan w orks.
The GOLD LEAF last week had
something to say about the impor-
lance and value of Building and
Loan Associations. That the plan
OF operation may be more readily
| understood we print the following.
They are agitating a Building and
Loan Association in Greensboro and
we copy from the Daily Record,
which is leading the movement 1t
says:
For the information of the general pub
lie as to the workings of and the benefits
derived from a Building and Loan Asso-
citation, we append here below a succinct
calculation of loan of 81 900. showing
how the borrower and non-borrower
comes out at the winding up of series,
from the pen of Mr.. S. Wittkowsky
president of the Mechanics Perpetual
Building and Loan Association, OF Char
lotte, who is one OF North Carolina s
most prominent and successful business
men, and who has had more than twenty
years active experience in Building and
Loan Associations:
Practical demonstration for the last
eight years (since six per cent. went into
Operation) shows that it takes a "Series'
six years and four months to run out,
and as the payments are made weekly,
we make the calculation according to
WOODS Thr1S horrnv-or FOL loo OF
the beginning of series ten shares, on
which he pays
Zoe. a week per share for 1872
weeks, amounting TOM. $50. 100
He borrows 81 900, on which
he pays a weekly interest at
6 per cent. for 332 weeks,
which amounts tO........... $50. 90
Making total Of.................. 81, $4,000
Thus it will be seen that the borrower
has paid for his 81 900 received, the sum
of $1,21O, and hence paid 500 more
than he received Now then, let US go a
little further and inquire what the bor-
rover did with the 81 900 he borrowed?
We presume he bought "home' with
it. A home of that kind would rent in
this city (Charlotte) at from so to $15
according to location) Let us take an
average and say that it rents for $3.50
per month, this will amount in six years
and four months to the sum of $3.50.
This amount the borrower would have
paid to his landlord (were he a renter
stilD and have nothing to show for it;
but in this instance the borrowing stock
holder paid that amount to himself.
Now deduct this $3.50 from the 81 ,21O
and you have as a result $500. This is
the sum which the home Costing origi-
nally 81 ,OOO stands the borrower, say
ing nothing of the increase in value of
the home in the six years and four
months (the end Of the series), but it can
be safely assumed that it increased in
value $3.50, thence the home is virtually
paid for with the rent money and hence
costs him nothing. Where then is there
any other way yet devised by man, that
| enables a wage Garner SO easily to be-
come his own landlord? Think and pom
| der over it, ye wage workers. Expert
| ence answers: Nowhere else.
NOW WORD TO THE NON-BORRowER.
A non-borrower taking 10 shares of
| stock will pay in dues during the six
years and four months 1880, and will be
out OF that sum on an average time OF
| three years and two months, on which
he gets 81 900, or profit of $17O, and
| the Association pays the taxes. Taxes
| here in Charlotte are 2 1-6 per cent. on
the dollar, making on $3.50 in three
years and two months $3.50, added to
the S17O, making in all 1927, or about
| S1a per cent. profit annually.
! Where else can a mOneyed man invest
his money in as safe security as United
| States Bonds, at better or as good rate
| of interest?
Here again, Experience answers: No
| where else!
Editorially the same paper says:
| Twenty-three hundred and twenty
shares of stock have been sold in the
42nd series of the Mechanics Perpetual
Building and Loan Association of Char
lotte, and this after the Association has
been in existence twenty-one years Ii
it reasonable to suppose that the people
| of Charlotte would put their hard earned
cash in such an institution were they
not satisfied of it's stability. Ponder Oh
this-the first series opened with a little
less than 1000 shares; the And series
starts off with 1920 shares Isn't that
an evidence of strength? Do you sup
pose our neighbors would have cOntin
ued semi-annually, to put their money IL
an institution that did not benefit them
Since the above was set up the
Record informs us that the Gate
City Building and Loan Association
has been organized in that city anC
officers elected representing some O
the leading business men OF Greens
boro.
The authorized capital of the asso
citation is $4,000 at q par value O
500 per share. About 400 share;
have already been subscribed and thu
books will remain open for subscrip
tons until the first Saturday in DC
tober The promoters are cOnfiden
of having more than 1000 shares
subscribed by that time.
| An effort is also being made to or
ganize a second association, and {
good list of share holders has beer
secured already.
They do things in Greensboro ant
this accounts for the fact that it i
one Of the most progressive and pros
porous towns in the State today;
place with a future.
Owes His Life to Neighbor'
Kindness.
Mr.. D. P Daugherty, well known through
out Mercer and Sumner counties, ". Va
most likely owes his life to the kindness OF
neighbor He was almost hopelessly Athlete
with diarrhPa; was attended by two phys
clans who gave him little if any, relief whe
a neighbor, learning OF his serious condition
brought him bottle of Chamberlain s Coli
Cholera and DiarrhGa Remedy, which cure
him in less than twenty four hours. For 50
at Parker's Two Drug Stores.
FOR SALE.
The Wilmot Wood res
a&A dence nearly opposite til
l1Siffi1 Southern depot. HOus
, @14z7@ contains rooms, in goo
ea1A boz