Peoria County, Illinois Genealogy Trails
“A Brief History of Peoria” by Democratic State Central Committee? 1896.
Transcribed by Genealogy Trails Staff
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 [sic] 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, thereby 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 equally in 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 corresponding burden on the borrowers. However, all installments of dues, interest 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 suﬂicient 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 difﬁiculty, 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 which will rapidly accumulate, as the proﬁts derived therefrom are much greater than can be obtained as interest from any other source.
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