Page 1 Advertisements Column 6

Mataura Ensign, Volume V, Issue 234, 2 March 1883, Page 1

SOLIOITOB AND CONVEYANCER, GORE. Offices immediately opposite Green's Hotel. Besident Magistrate's Courts at Mataura, Tapanui, and Waikaia attend LOANS NEGOTIATED. Some of the best Sections in Gore and East Gore for »alo. Building Society. SOUTHLAND BUILDING ANF INVESTMENT SOCIETY AND : BANK OF DEPOSIT. PRESIDENT : J. Walker, Bain, Esg? DIRECTORS i Messrs J. E. HanDah, D. L. Mathesori, John Thomson, W. H. Hall, C, W. Brown, Wm. Sloan, John Kingslnnd, George Froggatt. and Bobert Erskme. SOLICITOUS: Messrs Macdonald and Bnejell. BANKERS : . Colonial Bank of New Zealand, SECRETARY : . Mr James> Brown, . ( Office —Temple Chambers,: Eski? Veer, Irivercargill. . ' ,' The leading featuresof the Society. are as follow :— The net profits are credited; -at the end of every year to each shareholder, (borrower or investor) in proportion to theamount then standing to his or her credit in the .books, except Bubscriptipns pafcUia ac(vancb fll < Th c above Society , \ros established < ; iri 1869, and is incorporated . under ■ the - Building Societies Act, 1876, ....• :■ , ! ,.... i . It is baaed on mutualuprinciples) :borrowera particioating equally; with investors in ,thf profits, • ; ■-. ■ :■ ■ -T- f ' ■■"' ' Shares date from the first pay day (n the months of May,' Auguet, November arid February, Shares represent when realised the sum of £25 each. The ; Vulei provide that borrowing members can repay the ' whole any portion of the ainoarit* borrowed^in sums of £25 and up wardg'at any timiß without previous notice, interest'eeasibg at erice on the same. Members are of two classes, 'investors and borrowers. Irivestorspay Is, 9d, ,. or 6d a week per share, currency of , the .shares being 7, 9 arid 11 years respectively^ and this amount, with the profits added annually accumulates till it readies the sum of £25 per share, when a cheque is given for the money invested, "' ' . ■> Borrowers pay in addition to the is, 9d, or 6d a week per share, interest at the rate cur- . rent when the«lo.an is negotiated ; and when thels,9d, or 6d per week per share . witti,.; "promts,: reaches the sum borrowed, tbe; propersfl ty given as seWri^ iy-release^^TKe.ljSwtieq^ hasmade^arraHgemeMswn^ebj^'mdr^^^ release charges are reduced tp a ' mininiiSm^? )Borrowers building houses^ according : to plaOT?': and specifications approved of by the • pirecr- ;&' tors, are allowed progress payments on the : ' architect's' certificate. ' '' • ' It was anticipated that shares paying Is par week would mature in seven years, and on fchii data the following calculations were made :— ' Investors of four shares pay 4s a Week, or £10 8s per annum, which, multiplied by 7 gives £72 165, the actual payments in' seven years, and then they are entitled to reoeive a cheque for £100, the difference of £27 '4s having accrued as profit during that period. ) Suppose the sum of £10 8s were saved by an investor, and deposited half-yearly in a bank in payments of £5 4s each half-year, : the bank ■ allowing 5 per cent, per annum, < the result would be that in the period of 7 years, while £100 would be accumulated in tjie Society, on'y about £87 would be accumulated in the 'bank, so tnat a clear gain of £13 in the period ' would result by investing savings in the Society. Bor rowers who have realised on four shares pay in addition to subscriptions : interest at the rate of 8 per cent, jer annum, making- £18 8s ; which, multiplied by 7, give* £128 16s as the total payments in seven years. Deduct from this aum the amount borrowed, and' i| leaves £28 165, which sum divided by 7> ihows that £4 per annum, or four per cent., has been paid for the use of the money. Suppose a member purchases a house for £200, for which he has been paying n rent of 10s per week, arid he ob« tains from the Society, an advance of £150 on the security of the same, his payments would be —interest, £12 ; subscription, £15 12s j total, £27 12s. In sevea years his actual. payments would amount to £193 4s, and the property .would be his own. Had he not become a member of the Society would have paid £182 as rent, and the property would till belong to hia landlord In order to arrive at the cxaut sum he has paid for the house by the aid of the Society add to his actual payments in seven y^ears the Society the, £50 paid on . purchase. Actual payment ... ...£193 4 0 Paid on purchase ... ... 50 0 0 i' 243 4 0 And deduct rent he would' : havedaid ... ... 182 0 Off £61 4 0 and it is seen that £61 4a is the net cost of the house to the member. Theaotual operations of the. Society have demonstrated the correctness of the for*.- --' going 'daiculations, and the results have beesa "considerably better both to the borrower and investor than anticipated ; for instance, at the balance of 1876, on which date the first seven years' series iof shares matured, the investor of four shares ric.ivod a cheque for £101 -14s and the borrower obtained a bonus of *£l J !4s in addition to hia loan being repaid. ';i he following table will show the results since then, the next series maturing 1879- "' Borrower obtained Investor of 4 shares bonus in additioi received cheque for to his loan being repaid — 1879-£lO2 15 0 ... £2-15 0 1880-£IO3 12 8 , ... £3 12 8 1881--£lO7 9 8 ... £7 9. 8 The rapid increase in the profits shows th advantages of co-operation, the ' same ma* chinery and the same expense being capable of overtaking a largely, increased business, consequently the profits increase, hence tho balance oflßß2 shows a bonus of £8 14a 4d .to theibprrower of £100, and the investor of. 4 shares received a cheque for £108 34s 4d. -'.•■-■■",'-•.' ' ' . • ' :'■ - _ JAMES BROWN, # ■ "'.' ■/■./ ■. Secretary. ' luveroargill, 30th December, 1881 c 24? '■ . • , . ' .'."■.".".."■'■