Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-10-28


Association will earn ~ per cent but
the governments postal bank Is not IN
tended to compete with other banks or
repositories. 1t is intended to oner
Uncle Sans big sock as 1t were LOT
the stockings Of simple folk which nave
been kept in a chimney corner REQ
pie who are afraid Of banks and every
body else need not hide their money IN
an old stove to be burned by accadeht
or bury 1t under, q tree to be lost, 1or-
gotten or stolen. They can put 1t INTO
Uncle Sans stocking at the postonlce
and ne will keep 1t safely for them.
People of this kind can trust Uncle
Sam when they can't trust the banks.
The next day Uncle Sam will take the
money and deposit it In the national
banks where it can be used as part or
the working capital Of the nation. In
directly Uncle Sam thus guarantees
the deposits for people who are SO
afraid of banks that they will sacrifice
half to two-thirds their possible in
come In return for Uncle Sans secur-
ity. Owing to the unwilltngness or
banks generally to provide mutual IN
surance Of deposits the government
has sought to fill the want with Its
own endorsement indirectly given at
the expense Of the depositor by means
of postal savings bank.
A showing Of profits for the c. G. w.
under its new management contrasted
with what it used to be and the well
recognized Improvement of service on
this line since its reorganization sus-
gests what may be in store for the
Iowa Central if the proposed merger
is accomplished. At any rate 1t is GER
ainly to he desired that something can
happen to bring about improved ser
vice on the Story City branch. This is
a subject worthy of attention 10y the
railroad commission. The people llv-
ing on that road are entitled to tram
service in less than six hours of the
established schedule.
Men contemplating building home
have inquired as to how they can 90
better by borrowing of the Savings and
Loan Associa ton at per cent than by
getting a straight loan at s per cent
There are several reasons for it. In
the first place the man who needs the
help Of a Savings and Loan Associa-
ton in building home gen orally needs
TO borrow on his lot more than half the
total value OF the property when i'm
proved and the Savings and Loan Will
loan fully two-thirds Of the total value
| whereas banks generally loan up to 40
per cent of the value. Secondly the
average man needs to provide for re-
firing the principal of his loan as we'll
as the interest on the easy monthly
payment plan and this he has TO do in
the Savings and Loan whereas II ne
deferred the entire amount of the loan
until the day of maturity he would be
una bic TO pay it. Thirdly few men can
borrow in a small way al per cent
interest but suppose someone could,
here is the contrast:
Borrow $500 TO build on your lot
and give mortgage at per cent for
100 months. interest .........$ 600
Principal ..-.-...... ..-.-.. LOW
Total cost .............. .s2,4oo
Borrow OF the Savings and Loan
$500 at per cent and take out fif-
teen shares at so cents per month each
| maturing at $500 in approximately
! 100 months The shares would
cost ..s...-.-..... .......-......s soo
Interest at per cent ...-.-...... 1900
! Total ...-..... SZ,i"o
Thus while the interest rat on the
mortgage would be $500 more in the
Savings and Loan the profit in the
shares would be 5000 which would pay
the difference in interest and leave the
+! borrower $500 net 10 the good because
he paid in OH his shares monthly and
not only retired the principal of his
loan by easy payments but receive .
compound interest or the money paid
in on his shares which worked faster
than the simple interest charged on
i, his loan