Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-01-03
BANKS FOR THE BENEFIT
OF SMALL BORROWERS
Society for Savings and Loans Of
Washington One of q
Group.
System Established Whereby Loans
May Be Obtained by individuals
on Advantageous Terms.

Following the publication yesterday OF
news dispatches which told OF the pro-
posed establishment by julius Rosen-
valid, OF Sears. Roebuck q Co. Chicago,
OF a chain OF poor mans banks" in the
United States, attention was directed to-
day TO the fact that Washington already
has such poor mans bank" an or
ganization which is a member OF a group
OF such institutions already establs led
throughout the country.
The chain of banks proposed by MIR
Rosenwald, I'm association with Andrew
Carnegie, Vincent Astor and other
wealthy men. IL is understood = TO be
operated along lines somewhat similar to
those followed by the companies included
in the National Federation OF Remedial
Loan Associations, one of which COM
panies operates I'm Washington.
The plan of these remedial loan COM
panies includes both the loaning of money
and the handling of savings accounts one
OF the principal objects being the en-
couraSing OF persons of small means to
save their money.
For Savings and Loans.
The local company is the Society for
Savings and Loans OF Washington. its Of
fees being in the Washington Loan and
Trust building. This company accom-
modatcs small borrowers, charging IL
per cent per annum on tho loans. 4 saw
ings feature is included. the company
plan being as follows:
The borrower of $50 receives the full
amount asked for. his security being his
own note Endorsed by two other persons.
He pays back to the company twelve
q 81
six monthly payments of $3.50 each. Al
the end of the payment period the bog
rover has returned S63 to- tho company.
He is then paid $lo i'm cash. plus interest
on his installment payments. or is credit
ed with AN equivalent amount as "A saw
irgs account, thus having paid as interest
on his loan for six months IS, ]" per
cent a year. and having received interest
at u per cent 4 year OH his installns ut
payments.
The Society for Savings and Loans or
Washington, il may he mentioned, is the
only loan company in Washington
gagged in the business of making small
loans on secured notes whose advertise
ment Is permitted to appear in The Star
Advertisements Of the so-called 10 per
cent loan concerns are not published In
The Star.
Amounts to Millions.
The statement is made that the Ma
tional Federation of Remedial Loan As
sociations of the United States now 10
represented by thirty-five companies
i'm New York, Philadelphia, Bal
timore, Boston. Pittsburgh. Cincinnati.
Chicago. Louisville St Louis, Cleveland
and other cities. and that the aggregate
loans carried by the associated compa-
MES run far into the millions of dollars.
The last report of the business of these
associated companies showed that losses
from non-payment of loans amounted to
only a fraction of i per cent. the report
also showing that on the basis OF l. per
cent interest some of the companies
We're able to meet all operating expenses
and pay fair dividends to the stock
holders.
These dividends were paid only on the
basis Of large capital, utilized by the
individual companies in making loans.
The local company is seeking to increase
its capital to an amount which would
bring similar returns. its present bust
ness being conducted on a narrow
margin, although successfully. and with
in the provisions of the law of the
District of Columbia regulating small
loans.