The Pamphlet Collection of Sir Robert Stout: Volume 29
The Investment of Funds
The Investment of Funds.
Mr. Jones proposed—
"That the E.C. be authorised to collect from the Branches the sum of £20,000 to be invested in the bonds of Municipal Corporations paying not less than 4 per cent per annum, and secured upon the local rates."
"That £30,000 be the amount to be invested with Municipal Corporations,"
This proposition not being seconded was withdrawn.
Mr. Harrison proposed—
"The society be divided into 16 districts. We propose to take a sum equal to the minimum amount of capital which the society can possess (rule 9, clause 3), equal at present to £16,000, which should be equally divided between the districts, each having £1,000. This would provide against the possibility of having to realise the securities of this fund. A ballot should be held to determine the branch to which the appropriation should fall, and a similar proceeding among the members of such branch to decide upon the particular individual. It might here be useful to hint that only these members who are under 6 weeks in arrears should participate in such ballot, as an inducement to keep their contributions paid up. The appropriation shall be the sum of £300, which would give three chances at once to each district, the money to be lent to members for 12 years at an interest of 5 per cent. The management should be carried out by committees elected from the district, if possible; but where the branches are widely separated, the branch to which the appropriation is allotted shall find its owncommittee, subject to the rules laid down by a central committee, which shall be chosen from the E.C., for the purpose of watching over the concern in the interest of the society. The expenses of management would not be large if the branches were to send committee-men by rotation, on the same principle as many building societies manage; such service to be gratuitous. Secretary and trustees to be elected annually, and to have a small salary, which might be met by an additional charge of £1 per annum on the member borrowing. The fines for non-payment shall also go to the management fund. The legal expenses (if preferred) should be paid for the member out of the funds—a twelfth of which, with principal and interest added, to be repaid every year. The title deeds or other securities to be lodged with the E.C., and by them to be deposited for security in a bank chosen for the purpose. All property offered by members as security should be examined by a survey committee, to ensure the society against loss; the expense of such survey to be borne by the borrowing member. £16,000 produces £800 per annum at 5 per cent.
|1st year's repayments||£40||0||0|
|2nd year's repayments||38||15||0|
|3rd year's repayments||37||10||0|
|4th year's repayments||36||5||0|
|6th year's repayments||33||15||0|
|7th year's repayments||32||10||0|
|8th year's repayments||£31||5||0|
|9th year's repayments||30||0||0|
|10th year's repayments||28||15||0|
|11th year's repayments||27||10||0|
|12th year's repayments||26||5||0|
The interest might be averaged to make the repayments equal each year, which would be £33. 193. 2d. per annum."
Mr. Cowen proposed—
"That £10,000 be the amount invested."
Mr. Sweeney proposed—
"That this Council, although most anxious that we should have the bestpossible return for our money, consistent with safety, are of opinion that the time has not yet arrived to adopt any of the proposed suggestions."
- For 1 2 5 6 9 14 15 16 (8 votes).
- Against 3 4 7 8 10 11 12 13 (8 votes).
The chairman having recorded his casting vote in favour of this proposal, all the propositions suggesting special modes of investing capital became unnecessary, and were consequently withdrawn.