The Virginia enterprise. [volume] (Virginia, St. Louis County, Minn.) 1893-19??, 1907-03-29


Copyright. 1907, by Joseph B. Bowles.)
Closely pertaining to banks and kim
1red business is the investment of sur
plus funds. Often woman has money
hat she feels ought to be safely placed
where 1t will bring a good rate of in
lerest. Possibly she has had some bit
Ter experiences in losing money, but
she feels it ought not to remain idle
II she puts it in a savings bank she
will get only small rate of interest.
It it is in national or state bank she
will get none at all unless she buys q
certificate of deposit. Many times it
| seems as if all around there were
| chances to make money, but she does
| not know how trustworthy these in
vestments are. Look before you leap"
is safe motto in this case, for it IL
better to get no interest or a very
small per cent. than to run the risk of
losing ones principal
1t goes without saying that the fun
aamental 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 if he has lost it
In some wildcat scheme, but women
| seldom make more than living at the
best, and, often, if money is inherited,
are utterly unable to replace it. Con-
r.
| tons 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
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 securi
ties. These arc closely followed by
bonds OF states, counties, towns and
villages. In this last case, the past and
present financial history of the state
and country is to be taken into &C.
count, and the character of the people
esiding therein. 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 savings banks as a safe
and good place to let money lie until
| ~ q inv c.fr mi onto
itself at high rate of interest.
In loaning money the rate of inter-
est is agreed upon by the lender and
borrower of the money. Every state
has certain fixed rate and interest
above that is liable to be called usury,
but in some states there is a 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. 5 6 Z 3 8 10 q
Divide by. 80 e 60 50 As 40 sc 30
For example. interest on 500 for 50
days at six per cent will be 100x50, or
500. Dividing this by 60 equals SO; in
other words, s.; and a fraction cents.
When woman desires to loan
money with mortgage security. a safe
rule to follow is never to loan over
| one third to one-half of the value of
the property. Personal inspection of
the premises is desirable and precau-
| ton should be taken to find out if the
| title is clear. Some women are capa-
| BILE of Investigating the records, but
the majority will do we'll to apply to a
| lawyer or corporation whose business
| is 10 examine real estate and abstracts
Many of these companies guarantee
that if 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 delay may cause complica-
| tons.
A mortgage should be acknowledged
| before a proper officer, should contain
a redemption clause and should be
signed and sealed. Every correct mort
! gage describes the proper infinitely,
tells where it is located and the time
when the debt becomes due. If the
| amount borrowed is not paid the mort.
gagee at the time specified for pay.
| ment. or if the interest has not been
paid when due, the property can be
foreclosed; that is, it can be sold to
satisfy the debt, after certain time
allowed for redemption. If the prop
erty brings more money than is re-
quired to satisfy the debt, unpaid in.
terest and cost of foreclosure, the sur
plus must be paid to the owner of the
property mortgaged.
| If the question of investment with
no immediate gain is under considera
ton, real estate may be good means
of safeguarding money. Before put
| ting money in land, the woman must
consider that the value of land fluctu
ates, that she mus meet the yearly
taxes and that it may be some time be-
fore she can get back the original cost
with 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 a
defective title and the only way to es
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