Milford chronicle., 1962-08-03
Folks Still Borrow
From Ben Franklin
Ry RUSSEII. LANDSTROM

By RUSSELL LANDSTROM
PHILADELPHIA -Benja-
min Franklin was about as wise
and far-seeing as they come. But
even for him the crystal ball was
cloudy when it came to calling the
shots for 200 years to come.
just consider his will which left
$4,445 each to Philadelphia d
Boston.
Over the years the Philadelphia
Fund grew to nearly So million,
but most of the money has been
used in ways Franklin couldn't t
imagine, as the country outgrew
his conditions.
Franklin, who died in 1890, Stip-
ulated the money was ito be let
out upon interest at $50 per an
mum to such young married arti-
ficers, under the age of 25 years,
as have served an apprenticeship
in the said town, and faithfully
fulfilled the duties required in
their indentures.
UP ito $500 would be lent for as
long as Is years, with two CO.
Signers required.
The fund was to continue for
100 years. Franklin thought it
would amount to we'll over a half
million dollars by then. With that
figure i'm mind, he directed that
about $125,000 be continued as a
loan fund for another 100 years,
and the rest be used for public
works and welfare projects.
The terms of the will applied
especially to Philadelphia, Frank
Inns adopted home. The provision
for Boston; his birthplace, was put
into a codici1.
AS everyone knows, Franklin
came to this old town seeking his
fortune. Walking up Market Street
from the waterfront, with his
bread tucked under his arm, he
did not make the most impressive
figure. He wondered what was in
store for "a young printer W i t h
precious few pence to his name
Someone staked him, and Frank
Lin never forgot.
The city of Philadelphia handled
t h e Franklin Fund until 1869,
when it's administration passed to
the board of directors of city
TRUSTS newly created by the state
legislature.
The fund then totaled $4,000
compared with Franklin's reckon
ing of $238,000. Franklin's much
higher estimates were on the as
sumption that much of the fund
would always be out on loans,
earning interest. Instead, there has
been a lack of applications.
At the end of the first 100 years
the board of trusts had 100000
instead of Franklin's hoped for
half million plus. 1t split the
money two ways, alloting about
$4,000 for public works and put
ting aside the rest to keep the
loan pool going. The policy was
continued of suitably n I'VE S t ng
whatever money was not out on
loans.
The building, or public works
fund, expanded much faster. By
1880 it had grown to over SIS
million, and the money was ap-
piled toward building the Frank
lin Institutes big scientific center
near the heart of the city.
The Franklin loan plan found
itself sidetracked with the COM
ing of the machine age in indus
try, profound social changes and
an availability of loans beyond be-
lief in Franklin's time.
Four times the board of trusts
asked the court to liberalize
Franklin's terms. First, the age
limit was raised to 81. Then the
loan limit was advanced to $500;
the interest rate was cut to 40;
and the court ruled that loans
could be made on well-secured
mortgages on real estate in the
city. In 1899, the maximum was
raised to $4,000, and the court
said loan might be made to any
qualified worker, male or female,
married or unmarried. Ten years
later the limit was upped to $4,000.
On the first of this year the
fund came to $314,S35, with 80
loans totaling $S8,0O0 outstanding.
Franklin's will has 28 years ito
go. AT the end of that time the
in the fund will be, in his
words, divided between the in
habitants of Philadelphia and the
of Pennsylvania"
G. C. Pritchard, board secretary,
said this means the money will be
spent on public welfare projects. |
The Boston TRUST remains i'm |
force although no loans have been |
made in rs years. Massachusetts
courts refused to change the con-
ditions because of the ancient faw |
of the inviolability of trusts. Most |
of the Boston fund is reported to
be invested in an insurance COM
pany. The Massachusetts supreme
court recently released Franklin
funds for small loans to medical
StudentS.