Page 8 Advertisements Column 2

Lyttelton Times, Volume II, Issue 64, 27 March 1852, Page 8

£. s. d. The shareholder being owner of one share will in ten years at 10s. per month have paid in 607., but which, with interest and accumulations will then realize him . . . . 120 0 0 In consideration of receiving his share immedi&tely he is willing to allow a premium or deduction of say . 50 0 0 Leaving a sum to be paid him of . 70 0 0 He will then require two more shares—in all, three which at the agreed price will produce 210/. being the sum required. £. s. d. On each of the three shares he will have to pay 10s. a month, or . . " 110 0 With redemption money ss. a month, per share, on three shares. . . 0 15 0 2 5 0 Which multiplied by twelve months 12 Making an annual payment to the society of . . . . . 27 0 0 So that instead of paying 3 11. 10s. per annum for interest, being 15/. per cent upon 210/., he will, by paying the Society 27/. per annum, for ten years have paid off the whole amount borrowed and, have become owner of the property, whereas by paying 15/. per cent, upon 210/., or 31/. 10s. per annum, he will have paid at the end of ten years 315/. for interests alone, leaving 210/. or the sum originally borrowed, then remaining on security of the property. To put the case mere clearly. By paying to the Society for a period of ten years in monthly contributions, a fraction more than 10/. per cent upon 210/.: a borrower of that amount will, at the end of ten years have paid off the principal and interest. The redemption money considered in the light of interest upon any share will vary according to the bonus or premiums given for one or more shares by any of the members requiring the same at the monthly meetings. A Shareholder not having purchased property can at any time withdraw his share, or shares on certain conditions to be set forth in the rules; or if he has purchased he can redeem the property at any time by paying off the balance as may be arranged, or he can sell the property subject to the mortgage, or dispose of the same by will. Shareholders not desirous of purchasing property will, at.the expiration of nine or ten years, receive for every share of sixty pounds, 120/. The great advantages this society offers for family endowments must be self-evident, and demand the particular attention of parents desirous of accumulating a fund for apprenticing, or in any other way providing a sum for furthering the interests of their children without seriously entrenching upon their income. This provision is secured with certainty, and at a much more convenient and moderate rate than is required by the system of Life Assurance, for by paying the sum of ten shillings per month or 6/. per annum, he secures to his child 120/. at the expiration of nine or ten years from the commencement of the society. Should the child die, for whom the parent has made such investment, the right of transferring it to another child will be provided for. The only items which require observation are the bonus or premiums allowed on each share, and the sum paid as interest or redemption money. The premiums are not in the least degree disadvantageous 'o the borrower, being in reality profits in which he ultimately participates in the same proportion as other contributors. The redemption money is a much less rate of interest than the borrower would have to pay for the sum advanced through any private channel, and which also goes to the general fund, in which every .person connected with the Society has an interest, and which the augmentation of, whether by premiums or redemption money, has the desirable effect of bringing the Society to a close, and shortening the period during which the borrower has agreed to male-.: periodical payments. Such are the objects of the proposed Building and Investment Society; and it only remains, in conclusion, to state, that .VI r. Bell, one of the Members of the Legislative Council at Wellington, in the month of July last, when moving the second reading of the " Building and Land Societies Ordinance" (in pursuance of which this Society will be established), so justly brought before the Council the importance of such societies and the benefits to be derived from them, more especially in a new colony, that it is thought advisable to "add his remarks thereon. Mr. Bell, in moving the second reading of the Ordinance, sai i, " If societies of this kind had worked successfully In England, and had contributed to the comfortable establishment of thousands there, it was obvious they would be infinitely more advantageous in a, new country, where wages and profits and the interest of money were so much higher than at home, and where, consequently, it was much easier for a working man to lay by sonw of his earnings, and by association with such societies to obtain real property, for which he would otherwise have to pay high rents, or rapidly to ac-