Permanent Investment and Loan Association.

Wairarapa Standard, Volume XIX, Issue 1856, 12 July 1886, Page 2

Permanent Investment and Loan Association.

The annual meeting ol shareholders of the Permanent Investment and Loan Association of Wairarapa was held in the office of the Society, Greytown, on the 6fh inat., W. C Cuff, Esq , in the chair. The balance sheet and report, which were taken as read and adopted, showed a net profit for the year of £1045 13s. The report referred to was read as follows " Your directors again have the pleasure of submitting what they think may be considered a favorable balance sheet for the past twe’ve months, the surplus profit divisible in aldition to the interest of seven per cent provided for by the rales, being £1 2s 8d pershare, against 15s fid last year. During the year the large sum of £7200 has been paid on 144 shares that,, have matured. The total number ol

shams withdrawn is 206, and 159 new shares have lieeti taken up, leaving the number current 875.

“In accordance with the rules, Messrs Caselberg and Booth retire from the Directory, but are eligible, and offer themselves for reelection.—W. C. Cuff, Chairman. ”

Messrs Caselberg and Booth, the retiring Directors, were re-elected, and Messrs J. G. Cox and D. P. Loasby were elected auditors for the ensuing year. It was resolved to oontinne the rule adopted three years ago, by which shareholders withdrawing shares which had attained the age of six years and upwards, and taking up new shares in lieu thereof, should be allowed their share of the reserve fund. The Chairman mentioned that since the date of the balance sheet the uumber of Investment shares had been increased to 1000, and as it was not deemed advisable to push the issue ol too many Investment shares at present, the directors had decided to discontinue the procuration fee of 2s per share allowed to members introducing new investing shareholders, bat to offer instead the same fee of 2s per share to any member who would introduce borrowing members to whom leans were granted. The directors hoped that this might induce shareholders to take an interest in finding investment for the funds ol the Society by introducing friends desirous of borrowing money. The Chairman also drew the attention of members to the question of interest paid on loans. Some of them appeared to think they would have to pay a good deal more interest if they took up a loan in the Society than they would on a loan by way of ordinary mortgage. That this is not the cose would be shown by the following example A loan of £IOO taken for eight years at eight per cent would cost the borrower £64 for interest. A loan of £IOO taken np in the Society for eight years would be repaid by 96 monthly instalments of £llos lOd, making a total of £l4B paid, which would repay both principal and interest, showing £4B only as the amount of interest paid. In the former case the mortgagor would probably require to renew the mortgage for £IOO, and would have to pay a further sum of £64 for interest, without any -advantage to himself, while in the latter case he would, by the exercise of a little prudence, have cleared bis property from debt. A vote of thanks to the Directors and Manager for their services during the past year terminated the meeting.