St. Tammany farmer., 1906-05-12

ter experiences In losing money, but
she feels 1t ought not to remain idle.
II she puts 1t in savings bank she
will get only a small rate Of interest.
Il it is in q national or state bank she
will get none at all, unless she buys q
certificate Of deposit. Many times 1t
seems as il all around there were
chances to make money. but she does
not know how trustworthy these in
vestments are. Look before you leap"
is a safe motto in this case, for 1t is
better to get no interest or very small
per cent. than to run the risk of los
ing ones principal.
1t goes without saying that the fun.
damental principle regarding the man
agement Of property is to abstain from
the various forms Of speculation and to
deal entirely with established forms OF
investment. This is essentially SO In
the case of women. A man can often
retrieve his fortune II he has lost It
in some wildcat scheme, but women
seldom make more than living at the
best and often, il money is inherited,
are utterly unable to replace it. Con-
cerning any investment two considers
tions are necessary. The first and i'm
portant one is safety. The second is
the amount OF interest paid for the
money.
Broadly speaking, investments can
be divided into two classes, those in
cluding real estate and bonds and
those in which money Is advanced upon
the promise that it will be returned
with interest. In this case security is
given. In regard to the first class OF
investment, the general rule is that
United States bonds are safe securities.
These are closely followed by bonds Of
states, counties. towns and villages. In
this last case, the past and present
financial history of the state and coun-
ty is to be taken into account, and the
character of the people residing there
in. United States bonds draw small
per cent The per cent. on state and
other bonds varies. Bonds which draw
small interest can be classed with saw
ings banks as safe and good place to
let money lie until an equally reliable
investment presents itself at high
rate Of interest.
In loaning money the Fate Of inter-
est is agreed upon by the lender and
borrower Of the money. Every, state
has a certain fixed rate and interest
above that is liable to be called usury,
hut in some states there is certain
rate allowed by contract. Montana Is
the only state at present where the le-
gal rate Of interest Is ten per cent
The average rate is six and seven per
cent. The following simple table OF
interest calculation often helps in COM
putting interest on loan.
Rule.-Multiply the principle by as
many one-hundredths as there are days,
and divide as follows:
Per cent. 4 5 6 Z 3 8 10 IL
Div. by. 80 u 60 Sc IS 40 36 30
For example, interest on 500 for 50
days at six per cent. will be 100x50, or
500. Dividing this by 60 equals S3; In
other words, SO and q fraction cents.
When woman desires to loan
money with mortgage security, safe
rule to follow is never to loan over one
third to one-half Of the value Of the prop
erty. Personal inspection Of the prem
ises is desirable and precaution should
be taken to find out If the title is clear.
Some women are capable Of investigat-
ing the records, but the majority will
do well to apply to q lawyer or corpor-
alton whose business it is to examine
real estate and abstracts. Many Of
these companies guarantee that II the
title shall prove defective they will
make good the loss. All deeds and
mortgages should be placed on record
In the Office established by law, for de-
lay may cause complications.
A mortgage should be acknowledged
before proper ofacer, should contain
a redemption clause and should be
signed and sealed. Every correct mort
gage describes the property minutely,
tells where it Is located and the time
when the debt becomes due. II the
amount borrowed is not paid the mort
gagee at the time specified for pay
ment, or II the interest has not been
paid when due, the property can be
foreclosed; that is, it can be sold to sat
isfy the debt, after q certain time al
lowed for redemption. II the property
brings more money than is required to
satisfy the debt, unpaid interest and
cost of foreclosure, the surplus must be
paid to the owner Of the property mort
gagged.
Il the question Of Investment with
no immediate gain is under considera-
tion. real estate may be good means
Of safeguarding money. Before put
ting money in land, the woman must
consider that the value Of land fluc-
tuates. that she must meet the yearly
taxes and that it may be some time be-
fore she can get back the original cost
with q fair rate Of interest. The same
precautions must be employed regard
ing the title as in lending money on real
estate mortgages. No one wants de-
fective title and the only way to as
certain is to take nothing for granted
and to have the papers investigated by
. competent person. Many people live
for years in one house and never sus-
pect until they try to sell It that the
title is defective. TO be absolutely
sure Is TIE only safe way. 4
In buying real estate. the instrument
BY which the property is conveyed from
one person to another is called q deed.
Certain requisites are necessary to ln-
sure its validity. and these should be