Clinch Valley news. [volume] (Jeffersonville, Va.) 18??-2019, 1915-01-15
What "Amortization" Means.

AS for the term Amortization"
accented on the syllable "mor",)
Judge Winston explained it quite hap
PLY by saying that it is just big
word our wise men have discovered
meaning only plan for paying back
money in broken Doses" AS an ex-
change puts it:
"For example, if a man borrows
81 900 at 6 per cent, and agrees TO
pay $40 year to the lender, it is ev-
ident that the first year the interest
paid will be $50, and that the amount
of principal extinguished will be $40.
The tenth year $53.11 will be paid on
interest, and $16.89 on principal, and
so on until, in thirty-four years the
entire debt is paid"
In other words, if you buy 81 900
farm, 6 per cent interest on the 81 900
would be $50 year, and under pres
ent conditions you might pay this
amount for thirty-four years and still
| owe as much as when you started.
Under the amortization plan, howev-
er, by paying just $40 more, that is to
say, paying $40 year, for thirty-four
years, you would pay all interest and
principal, and own the place. Or let
us give further illustration on a farm
bought under the amortization plan at
6 per cent interest: You could pay
for it in sixteen years by paying $500
a year, this 500 covering interest,
principal and rent. Or the place would
be yours by you paying $50 year
for nineteen years, or $50 vera for
| twenty-four years, or $75 year for
twenty-eight years. Of course for n
$4,000 farm, these annual payments
would be twice the maounts here in
Dictated, for a $4,000 farm three times
as much and so on.
In Europe you can buy home al
most anywhere on this plan, the amor
tization plan, while at the same time,
remember, you are left free to make
bigger payments any time you wish,
or pay off the whole debt at once if
you wish. 1t is easy to see how such
plan would encourage home own
ership, and home-ownership is almost
the basis of civilization.---Th Pro-
gressive Farmer.
Where Senator Royal Stands
The following letter has been given
out by Senator Royal in reply to the
note in the last issue of the News re-
garding the Senator's stand on tax
| revision:
Tazewell, Va, Jan. II, 1915.
Hon. w. P. Payne,
Tazewell, Va.
Dear Sir:
have been delayed in replying to
your open letter of the Goth, directed
TO myself. and Hon. John A. Looney,
member of the House of Delegates
from this legislative district, relative
to the position l will take in regard
to the proposed tax measures to be
enacted at the special session of the
general assembly, which will convene
on the 18th inst, on account of alb
sence from home.
So far as have been able to ascer-
tain, after communicating with a.
large number OF my constituents, the
general sentiment seems to be that
they are in favor of the plan recon-
mended by the Committee on tax
revision, known as the segregation
or partial segregation plan, and as
it has always been my purpose to
carry out the wishes of my con-
stituents in so far as 1 may be able,
l shall vote for the above mentioned
plan, unless my constituents should
urge me to support some other meas
ure which might later appear to
them more advantageous to their in
terests, and shall be glad to hear
from any of my constituents on this |
very important matter.
Very respectfully,
j. POWELL ROYALL.