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least two days before the second preliminary meeting of the shareholders ; and we attended the meeting in the hope of hearing an explanation from the projectors. We cannot say that we heard anything which could induce us to alter our opinion of the matter. The chairman did indeed tell his hearers (not more than six of whom had read our article) that we agreed with him in the main ; but, as he fixed the net profit of house property at ten per cent. per annum, and we could not call it more than five, it must be conceded that on this most important point, the agreement between our views and his was altogether imaginary. We had, indeed, thought that we had given a most positive contradiction to the whole of his prospectus, but we are happy to learn from him that it is possible to contradict entirely, and yet agree in the main. Our printed calculations he was pleased to term a misconception, because we had only allowed of annual loans to forty members, or rather upon forty shares. He was right in saying that this was by no means a vigorous working of the society, but he did not quote to his hearers the sentences which preceded those calculations ; or he would perhaps have given them a very different idea of this “ vigorous working.” For, allowing that the society lent money upon its own terms to eight hundred and fifty members during the ten years, it would, at the expiration of that time, have £9,000 to divide amongst one hundred and fifty members, which would yield £60 to each—that is, £3 less than the net amount of each man's annual payments, to say nothing of ten years' compound interest, which would be utterly lost to him. This was stated at the meeting ; but the members seemed to have a vague idea that a respectable committee could make the £9,000 yield £120 to each of one hundred and fifty members. If this can be done, we have not the slightest objection; but the men who do it ought certainly to be drawn for the militia, as they would make excellent companions for
“ The soldier who lives on his pay, And spends half-a-crown out of sixpence a-day." One gentleman (who narrowly escaped being placed on the committee) affirmed, after reading our article, that the society could certainly work out its plan in fourteen years, but not in ten. Now, if we were a lending member, we should have no objection to this, as £120 at the end of fourteen years would not be so bad a return for the annual pay. ment of £6 6s.; but, if we were a borrowing member, we should hold out most strenuously for the ten-year plan, as our payment for an extra four years would greatly increase the rate of interest which we had to pay upon our debt.
And here we may as well consider the exact position of the borrowing member, for we were told by the chairman that it was far more advantageous to borrow than to lend, in the said society. As far as we have gone, the advantages of lending have not seemed so very considerable as to make us doubt this statement; for we must borrow money at a very high rate of interest indeed, if we gain no more by it than the man who lends £63 in the course of ten years, and only gets £60 in return. It must be remembered, however, that the principle of the Society is this, we borrow money of the Society for the purpose of buying a house, and the rent which we save by living in this house, is to pay off the yearly instalment, which in ten years will liquidate our debt. Now, the yearly instalment is, according to the rules of the Society, about thirteen per cent. upon the loan; so that if, after paying ground rent, and making all proper repairs, we save ten per cent. by living in our own house, we shall only have to pay a surplus of three per cent. for ten years, and shall thereby gain our house for a comparatively small sum. But this rests entirely upon the supposition that we do save ten per cent., and if, as we think, we only save five, our surplus payment will be eight, and not three, per cent. In order to prove that we shall save ten, the projectors of the Society took an advertisement from the Times newspaper, and put it in their prospectus. The advertisement stated that certain household property bringing in a net rent of £44 per annum, was to be sold to realise ten per cent., i. e., for £440. We are never told that it was sold, and, for all we know to the contrary, no one may have thought fit to buy it; nor is there any proof, beyond the mere advertisement, that it did produce the stated rent. Unfortunately, moreover, the property consisted of two small houses, in both of which we could not have lived, so that we must have run the risk of not getting a tenant for the house which we did not inhabit. The main point, however, is the ten per cent. Upon this point, we believe that the chairman's statements are altogether without foundation. No man who possesses good house property, bringing him in a net profit of ten per cent., will sell it to us for such a sum as will enable us to gain ten per cent. also. His price will be in proportion to the value of money at the time of the sale; and, despite the panic in the railway share market, upon which the chairman seemed to build great hopes, we do not anticipate that money will be worth quite ten per cent. We have stated that a borrowing member pays off his loan in instalments of thirteen per cent. This is only when he borrows in the first year of the Society's operations. In the second year, the rate of interest is not so great, in consequence of the increased amount of the loan, and this decrease in the rate of interest goes on from year to year. Thus, a man who borrows £70 in the first year, pays £8 18s. for ten years; but a man who borrows £100 in the seventh year, only pays £9 10s. for four years, having previously paid £6 6s. for six years. It thus happens that a man pays least for the most advantageous loan, and actually in some instances pays £10, £20, or even £30, less than he borrows. If any of our readers be shareholders, we would advise them to take the hint, and not borrow in the first four or five years of the Society's operations. It will be said that we have fixed an arbitrary sum for the amount of the loan on each share, but it must be remembered that every gain to the lender, is a corresponding loss to the borrower. Shareholders will do well to bear this in mind.
The chairman alluded to two or three Building Societies, which, he said, had failed through gross mismanagement. We certainly were not aware of the failures in question, as we thought most of the Building Societies were at present in the period of probation; but we think he ought to have specified them, at least as particularly as those more fortunate societies whose example he promises to follow.
mismanagement is a convenient phrase ; but we should like to have heard a few more particulars, that we might know to whom it should be applied, -to the projectors of the societies in question, or to the committee men, who were, perhaps, called in to work out plans which they did not understand.
We must do the chairman the justice to state that he did give an explicit answer to one of our objections. He declared that neither the trustees, the committee men, nor the arbitrators, would receive any payment for their services. So far all is well; we believe firmly in the respectability and disinterestedness of all parties concerned, but we would warn them that they have undertaken a task fraught with heavy responsibilities. It is pleasant, doubtless, to take a prominent part in measures devised for the good of their daily associates,—to be regarded a men of business, men of energy, or men of influence; it is gratifying both to the vanity which delights in notoriety, and the busy spirit which longs for active employment; but it will not be so delightful when the measures have produced nothing but disappointment, when the desired notoriety has ended in that public ridicule which always attends a failure, and when time and energy have alike been exhausted for the benefit of nobody.
VR. SAMUEL JONES LOYD'S PRESENT TO THE CLERKS
OF HIS BANKING ESTABLISHMENT.
We have much pleasure in calling the attention of our readers to the following letter of Mr. Samuel Jones Loyd, chief of the Banking-house of Messrs. Jones Loyd and Co.
“Dear Mr. Kirby,—The enclosed draft for £1,000 I request you will place to the credit of the Clerks' Christmas Fund. At the close of the first year since my accession to the head of this concern, I am desirous of offering to those through whose assistance I have been enabled to bring it to a satisfactory conclusion, some substantial proof of my sense of their services, and of the interest which I feel in all that concerns their comfort and happiness. The year now closing, has been marked by some circumstances of an accidental and temporary character, which have tended to throw an unusual degree of labour and trouble on the clerical department of the office. Of the readiness with which this difficulty has been met and overcome, I am very sensible ; and for this, as well as for the uniform zeal and integrity with which the general duties of the office are discharged, I beg that the clerks
accept my grateful acknowledgment, and that you and they will believe me to be the faithful friend of you all. " Lothbury, Dec. 24.
S. J. LOYD." The letter does great honour to the writer, not only for the liberality which it evinces, but for that kindly feeling which must render the boon doubly acceptable; and it is to be hoped that the example, which
we are glad to learn has been followed in several instances, will have a very general influence.
We are quite sure that the recognition of the principle, that those who share the toil should participate in the benefit, which is too little regarded in mercantile and banking establishments, would conduce alike to the advantage of the employer and the employed. An individual who is enabled to take some interest in the discharge of the duties confided to his care, and who knows that his services are appreciated, will naturally exert himself with greater zeal and energy, than one who, however honest and conscientious he may be, labours under the discouraging conviction that he is regarded as little better than a mere machine ; and it needs no very deep insight into human nature to discover (what the experience of the most casual observer must have taught him) that it must necessarily be so: that what is undertaken with alacrity and good-will, will be performed with industry and care.
Nor can we readily imagine that any man of just sentiments or liberal principle, would be content to avail himself of the services of men actuated merely by a sense of duty, when he can so readily secure their cheerful and willing co-operation ;- ;-nor can we feel any sympathy with the man who “ claims no kindred” with those with whom he is connected in the pursuits of life. It must not be forgotten, that there are mutual duties and mutual obligations; and to those who are disposed to disregard this great truth, we must say, in the words of the poet,
"Our life is turned
Used or abused as selfishness may prompt." [To the foregoing account of Mr. Jones Loyd's generosity and good feeling, we add the report, that the principals of a large banking-house in the City have insured the life of each clerk in their employ, for the sum of £1,000, the annual premium for which they will continue to
LORD BARNARD'S DAUGHTER.
The bells came sweetly o'er the wave,
The bells came o'er the water!
That loved Lord Barnard's daughter.
Oh! thou stream that flow'st so fairly,
For her, that I love dearly!"
" Oh! ye bells that peal so merry merrily,
Oh! ye bells that peal so loud,
When I am in my shroud.
Be thou my Messenger;
I died, and died for her!”
“Live, live for me, not die!”
The rest was ecstasy!
The bells came o'er the water,
And old Lord Barnard's daughter !
THE WRECK. A BALLAD TALE, VERSIFIED FROM A STORY IN THE “Tatler."
The wreck was floating on the shore,
The fair friends sought the sands,
Stretched out their lily hands.
“ We two will wreckers be,
That's sent us by the sea!”
A kirtle fine for me,
That dances on my knee!”
A cold corpse floats in sight;
It is—her own true knight!
A MOTHER ON THE DEATH OF HER IDIOT CHILD.
Child of my love! and thou art gone to heaven,