| Show F EDITOR HERALD iii reply to your salt lake correspondent inquirer permit me to be boos as brief as possible in endea endeavoring voTing to answer inquirers inquiry the borrower of the association of 1000 or any ot other hersum ot money will pay 10 per cent on borrowed money ane same as if the loan were obtained from a b bank ank or a private individual and has h as to pay ilia his monthly interest intel est on t the he same of 81 8 as there is and cannot be any tiny deduction on the interest therefore no rain gain from this aide side for the borrowing member except in time aa as the mortgage is 19 an sup 1 posed not to be due or c collectable re until his stock is at a par value tills this ia is dene done for the purpose to enable the borrower to pay up hia his indebtedness to the Anocia association tion with hia his own stock the advantage of the borrowing member is that he can cau pay a debt say of 1000 on the installment planos plan of 10 per month which ch lie cannot contract for with a it bank or an individual person therefore by shaping hn his expenses so as to meet hie his asses assessments ments on his stock he lie ia enabled to discharge this debt within six years without ex perien cing all any di discomfort comfort to himself or to his family tho the total amount the borrowing member pays into the Ate for six years on stock at 10 per pr month is with ordinary dividends from froni year to year which he raises from frow the association for his money winch which willbe nil I 1 be in six years therefore a total of 1000 certainly the dividend dividends the first year will not be as as the tile sec see end ond and so ou on then the same marne in increase from year to year and may even cven exceed lity estimated amount in which case it would take a i shorter olio rt time to pay up ins stockwith stock with the increase of the paid up capital on tile same principle that a loan of at 10 per cent will not bear as its much hite reet as a it loan of or this chowe s that the adval advantage tafe to a member ia is not in a reduction n ill in the interest of his borrowed money mone Y as this would show allow a avron wrong C maxim maxim nit but on the money he lie pays as an investment Accor according dinto to the foregoing statement a mem member er borrowing says pays into the association in six years ears interest on the loan and find therefore a total payment of 1320 lor for 1000 as correctly sta stated t ed by y inquirer as his stock after six eara mrs is paid id up and worth 1000 caving g G 20 s net gain to the association to which he lie may become an interested party by taking more stock and therefore no waste or loss 0 th the e member on the other side fenot a member of the association he ic borrows 1000 on which ho lie pays gg t wisa i b h ha IL bayona recovery and no earthly how show for ever obtaining one abi ing ling thereof hereof in case of a failure of acquiring more stock the member of the association is a gather of in six years agair against lit the non norl borrower bor jor rower rawer on the other side according to effort to reduce the interest from year to year would cause that the dividends must be stopped and the tile result would be preci precisely iely the same as the reduction of the lie interest would have to lie be in accordance to the profit the ame as the dividends ahre only an equal jual division of the net not gain Z I 1 il hoping lug this will cover the ground an and 17 1 I shall bo be ha happy py i if f inquirer will find that his is in inquiries s a are re covered but bu t I 1 if f not I 1 am fu further arther redwind read yand willing 4 I 1 am ve very dmn respectfully yours ALV A N dijt |
