Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1915-05-13

SdltlCy CASCPt tlldl pOWSiAui
advantage of being a world standard medium
of exchange. If the farmer could get his
produce to the consumer without the inter
ference of so many middlemen, both he and
the consumer would be benefited financially.
And if when the farmer has converted his
produce into money, he could loan his surplus
to his neighbor without the interference of
middemen, both he and his neghbor would
be benefited financially and the community
would be benefited physically and financially.
The first thing to do in the organization of
Rural Credit" building and loan associa
ton under the new law is to get at least
twenty-five persons interested. Get them to-
gether Hold meeting and discuss the prop
osition and the primary steps The first step
is to determine the par value of share in
the association. One hundred dollars is the
almost universal par value of share through
out the United States, but some associations
put it at two hundred and few at five hun
dred l advise 500 shares because they are
most easily handled, may be split into halves
and quarters, $50 and SIS, which are popular
denominations with small savers.
Having agreed upon the value of share,
the next step is to determine the classes of
shares that the association will issue. There
are only two classes of shares necessary, viz:
installment and full-paid.
An installment share is one that is paid for
in instalments, stated amount every month
or every week, or any amount any time.
These payments are called "dues," and when
ever the dues paid in, plus the earnings cred
tied to the share equals the par value, the
share is deemed "matured." 1t is then paid
off, taken up and cancelled, or it may be re-
issued as full-paid share.
The time required to mature installment
shares, when they are to be paid for in regular
installments of definite amount, should be
determined at the outset, SO that subscribers
may know what amount they must pay month
ly or weekly and know approximately when
they may expect maturity. The maturity OF
a regular instament share cannot lawfully be
guaranteed Maturity will depend entirely
upon the net earnings of the association; the
rate of dividend possible to distribute quar-
terly or semi-annually. If it is possible to
distribute four per cent semi annually, one
dollar paid monthly will mature $500 share
in approximately 1870 months; or ffty-hve
cents paid monthly will mature 500 share
in 12O months The greater the amount paid
the shorter the time to maturity.
Nearly every association issues shares cal
culated to mature par value at the end OF
three, five, eight and ten years. If par value
of the share is 500 of course SIS a month will
mature" it in less time than 81 a month.
Understand that crediting dividends to the
book-value every six months is compromising
the dividends and the longer share runs the
more dividends it accumulates. SNOWFALL
rolled 100 feet will "pick up more snow than
one rolled only fifty feet, and dollar turned
over twenty times ought to pick up more pen
MES than one turned over only ten times
Given the par value per share, the monthly
payment and the per cent to credit to the book