This is a plan devised for the purpose of lending money for any legitimate purpose at reasonable rates to persons of moderate means, such as wage-earners, salaried employees, and professional or business men. It avoids the necessity for the assignment of salaries and calls for no chattel mortgages or pledging of pawns. Interest is charged at the uniform rate of 6% per annum and "discounted" at the time the loan is made. An additional charge at the rate of $1.00 for each $50 or fraction thereof loaned, is charged the borrower to cover the cost of investigation. Character and earning capacity is the basis upon which the money is advanced. The endorsements of two other reliable persons, who agree to make the weekly payments, if necessary, are also required.
Repayments are made at the rate of $1.00 per week for each $50 borrowed. The applicant takes out what is known as a "C Certificate" for each $50 borrowed, and when 50 weekly payments have been made, the certificate becomes fully paid. Two weeks later the note becomes due; then the certificate may be surrendered in payment for the note, or other provision made for payment, in which event the certificate may be held as an investment at 4% per annum or exchanged for what is known as a "B Certificate" paying 5% per annum.
This method of loaning money to save people of small means from the hardships of assignment of wages or visiting the pawn broker, has spread rapidly throughout many sections of the country, and has the backing of well known bankers and business men in the communities where the plan has been adopted. It is, indeed, a boon to those to whom small loans are, at times, of great necessity for tiding over extraordinary expenses on account of illness and such matters.