A brief history of Peoria - University Library

32. ..PEORIA
LOAN AND HOMESTEAD ASSOCIATIONS
BY JOSEPH MAPLE.
Among- the important institutions of Peoria may be classed
several thriving- Loan and Homestead Associations. Although many
people do business -with the various associations, still the amount of
business transacted by them is not generally known.
The associations of this city have at least fifty thousand shares
in force, distributed among from 4000 to 5000 persons, and which
shares will be worth when matured five million dollars. The money
borrowed from these associations represents about two thousand
homes now being- paid for in easy monthly payments, and the loans
therefor now aggregate more than one million five hundred thousand
dollars. When it is remembered that nearly all of this vast sum is
loaned and used in this way the importance and extent of the business
become apparent. Besides the hundreds of people who are thus
enabled to acquire homes upon easy monthly payments, amounting
to but little more than the usual rental for such property, safe and
profitable investments are at the same time provided for those who
have small sums to invest from month to month.
Most associations calculate that it will take about ten years to
mature their stock. A person subscribing for ten shares thereby
makes his required payments five dollars per month. In ten years
he will have paid six hundred dollars, whereupon he will be entitled
to withdraw the sum of one thousand dollars, accumulated from,
these small monthly payments, therebj- making a net gain of four
hundred dollars over and above the total amount paid in.
In all cases the borrowers and non-borrowers share equa.ly ia
the profits or earnings, and no preference or advantage whatever is
given to either class of stockholders. It may be asked why such
large profits can accrue to investors without visiting correspondingburden
on the borrowers. However, all installments of dues, inter-
est and premium are payable monthly, and such monthly collections
are immediately reloaned to other members, thereby enabling the
associations to compound their profits twelve times a year, to the
great advantage of borrowers and non-borrowers alike.
By subscribing for stock and paying a few dollars each month
as an investment, people are enabled to accumulate in a short time
a suflficient sum with which to make the first payment on a home.
Here they can then obtain a loan for the balance needed, to be
repaid in monthly installments, and in this way a home is finally
acquired without great difficulty, and many thereby become their
own landlords with no further rent to pay. Should one then desire
to continue monthly savings, he can reinvest in stock whici will
rapidly accumulate, as the profits derived therefrom are ii-iuch
greater than can be obtained as interest from any other source.
STREET RAILWAYS
BY JOHN FIXI^EY, GEN. MGK.
In 1869 the Central City Railway Company was organized and
constructed the first street railway in Peoria, the same being a
single track horse railway line, extending from Hamilton to South