Endowment fund

“ The task before us will be lightened if men of wealth, who wish to help the cause of education in this Presidency, will only remember that at the present moment an Endowment Fund, for meeting the general expenses of the University, is likely to be more useful than any addition to the endowment list of scholarships and prizes. ”

“ The complete story of the Red Cross Christmas stamp can be told only in the April Bulletin. Its remarkable success is a great satisfaction.
We trust our members will read the officer’s reports, the articles on the Endowment Fund and the First-Aid Text-Books. The next problem that our National Society has to meet, and must meet successfully, for it is still young enough to have no such word as “Fail” in its lexicon, is the raising of such an Endowment Fund as will put our Society on a permanent basis and make it the equal of the great societies of the other countries of the world. ”

“ It may be suggested that among other methods of putting the criticism of contemporary literature upon a better footing is one that might conceivably be made to pay its own expenses. There is so much room for endowments nowadays that where one can get at the purse of the general public one should certainly prefer it to that of the generous but overtaxed donor. The project would require a strong endowment, but that endowment might be of the nature of a guarantee fund, and might in the end return unimpaired to the lender. ”

“ The following plan, I think, complies with all the requirements of the problem. By the proposed method every policy, at all stages of its existence, contributes its exact share to the expense fund, whatever its plan of payment may be.
Let us, as an illustration, examine the case of a ten year endowment policy, taken out at age 30, and consider it under three aspects, first, as paid for in advance by a single payment, second, as paid by five annual payments, and third, as paid for annually throughout the term. ”

“ The trustees shall securely invest the funds hereinafter provided and given to said institution and hold them as a perpetual endowment, and shall only use the interest derived therefrom and the income of the land to support and maintain said school or college, except that the accumulated fund derived from the land, and the interest derived from the fund hereinafter given said institution, from the time of my death, and as much as five thousand dollars of the principal fund, may be used if, in the judgment of trustees, it may be necessary to erect suitable buildings for said school or college. ”

“ Towards the endowment fund there have been nine or ten donations of £1,000 each promised, and it is hoped a fully sufficient amount will be raised before the building is completed, for, in the words of Mr. ”

“ In addition to this plant, the Endowment funds amount to $229,375.78 which are securely invested, and yield an annual income of about $10,000. The Association also holds conditional trust funds amounting to $69,726.95. The good judgment shown in the purchase of land, the erection of buildings, and the investment of the permanent funds speaks well for the thorough care of the officers and the Executive Committee.
The committee desire to congratulate you and the Congregational churches of our land upon the extinction of the debt which for several years has been a burden to the Association. ”

“ During this term of three years, or as much thereof as may elapse before the acceptance or refusal of this donation, my executor shall invest the net produce of the land and other property; such invested fund awaiting the action of the legislature, and to form a part of the endowment of said institution if accepted, or to form a part of the endowment of the college or school hereinafter provided for, should the donation not be accepted by the State. ”

“ The endowment funds are invested in farms, which are rapidly increasing in value; so that there is absolutely a surplus of revenue. One cannot help wondering, how these luxurious institutions would fare under a democratic order of things. Their raison d’être is not likely to be perceived by any but the aristocratic class for whom they are founded, and whom alone they benefit. ”

“ Endowments are a better investment than deposits in the savings banks. In the first place, the interest paid on the contributions is a little more than that commonly paid in the old savings banks, and considerably more than that which is paid in the Post Office Banks, which at present does not exceed 21⁄2 per cent.; and in the next, it is not so easy to realise the amount of contributions paid for an endowment before its completion as it is to withdraw the deposit from the bank. ”

“ When, in the early times of public credit, the repayment of the capital was the chief object of the lender, a much more extensive fund was necessary than at present, when no more is required than the payment of the interest. As such funds never can be formed but from taxes, or general contributions from the people, the greater they are, the larger must the contribution be. ”

“ Another form is denominated the Endowment Policy, in which the amount assured is payable when the party attains a certain age, or at death, should he die before reaching that age. This policy is rapidly gaining favor, as it provides for the man himself in old age, or for his family in case of his death. It is also fast becoming a favorite form of investment. We can show instances where the policy-holders have received a surplus above all they have paid to the company, with compound interest at six per cent, and no charge whatever for expenses or cost of insurance meanwhile. ”

“ The purchase money in every case has been advanced by the government, and is to be repaid by the purchaser in sixty-eight years with interest at three and one quarter per cent per annum. This sum represents two and one-half per cent interest upon bonds issued to raise the funds and three-fourths of one per cent for a sinking fund to meet the bonds at maturity. ”

“ The difference between their sum and the total of advance payments and other income, then becomes the 'overpayment' or surplus fund for immediate pro rata distribution among policy holders as dividends or for such future disposition as the contracts provide. An 'annual dividend' policy holder receives his proportionate part of this fund each year in cash or as a credit upon or abatement of his next premium. ”

“ As this increase cannot be kept down by payment unless voluntarily made by the corporation, the next best thing has been done, that is to say, a fund safely invested, which increases as the debt increases, has been established and set apart to meet the debt when the time comes that payment can be required. ”

“ The fund will be invested safely, for it will be based upon the security which is the creator and conservator of all property and property rights, industrious and intelligent labor. The accretions to the fund, even at the moderate rate of interest of three per cent per annum, will add, probably, a thousand workers each year to the number of its beneficiaries, while the repayment and re-investment in similar ways of the original fund, will add several thousand more each year. ”

“ While the number of units credited to investors does not accordingly account for the entire value of the 'fund,' the value of the units fluctuates as the value of the company's investment portfolio fluctuates in the same fashion as if they were shares in an open-end investment fund.↑ The surcharge is accounted for in the same way as that part of the premium gross income that does not go toward the crediting of accumulation units. ”

“ But I wish people would do nearly right. I wish they would act honorably and uprightly and consistently and properly, and all meet their obligations and pursue an upright course. But there is again another question to be adjusted in this matter. It is not the value of the money alone nor how it will affect me; but how are others affected by it? A perpetual fund was established, which fund contemplated a continual help, a continual return of the money loaned and perpetual fund kept always on hand, for the assistance of those requiring aid. This fund was not designed as a gift, but as a loan ”

“ A revolving loan fund should be provided for the necessary financing until these agencies shall have developed means of financing their operations through regularly constituted credit institutions. Such a bill should carry authority for raising the money, by loans or otherwise, necessary to meet the expense, as the Treasury has no surplus. ”

“ It is coming to be a recognized principle that every business enterprise of [9] whatever kind or size should establish a reserve fund. It is felt that the possession of a reserve fund puts the business upon a secure foundation, adds to its financial strength and reputation, and greatly increases its credit and borrowing capacity. ”

“ A sinking fund is at bottom only a means of converting into annuities a perpetual rent with the sole difference that in the case of a loan by annuities the interest is supposed constant, while the interest of funds acquired by the sinking fund is variable. If it were the same in both cases, the annuity corresponding to the funds acquired would be formed by these funds and from this annuity the State contributes annually to the sinking fund. ”

“ By the terms of the contract between the commissioners on the part of the State and the purchasers of the bonds, the interest on the loans is required to be paid semiannually out of the semiannual dividends accruing upon the said stock; and the surplus of such dividends, after paying the said interest, is to be converted into a sinking fund for the payment and liquidation of said loans. ”

“ The legislature shall provide for a unified investment program for public funds and public retirement system and state compensation insurance fund assets and provide rules therefor, including supervision of investment of surplus funds of all counties, cities, towns, and other local governmental entities. Each fund forming a part of the unified investment program shall be separately identified. Except as provided in subsections (3) and (4) , no public funds shall be invested in private corporate capital stock. ”

“ The funds of the association were divided into two classes,-a loan fund and an expense fund. The articles of incorporation provided that 'the loan fund shall consist of all receipts which do not go into the expense fund, as hereinbefore provided, together with all interests and accumulations from whatever source. No money can be drawn from the loan fund for any other purpose than the making of loans on security, as provided by the by-laws, and to pay amounts due withdrawing shareholders. ”

“ If there were no interest at all, he would have to put by from his income his entire old-age fund. If the rate were a hundred per cent per annum, taking a very small part of the fund out of the income of his active years would suffice, since the fund itself would earn the remainder. Is the income which is provided for the future to be treated as a variable amount in addition to some other income, or is it to be regarded as a fixed amount, which is needed for some definite purpose? ”

“ If they be invested in safe securities at the usual rate of about 4%, the addition of this amount of compound interest will assist in the repayment of the capital at the due date, so that the annual contributions to a sinking fund need not themselves aggregate the total capital to be restored, but may be smaller by the deficiency which will be made up by their interest earnings. ”

“ A sinking fund is a convenient means frequently resorted to for redemption of a debenture debt, and is especially suitable where the security is of a wasting character, leaseholds, mining property or a patent. Such a fund is formed by the company setting apart a certain sum each year out of the profits of the company after payment of interest on the debentures. ”

“ In the light of the origin and nature of the investments which the master has reviewed and valued, and of the provisions of the Constitution and statutes of the state, it is clear that these particular assets must be regarded as a fund specially devoted to the payment of the debt to be apportioned. ”

“ The security for the individual holders of the Guaranteed Land Stock by means of which the purchase money is raised is the Consolidated Fund of the United Kingdom, but the Consolidated Fund has never been called upon for a penny, either for interest or capital, and never will be. ”

“ New arrangements have been made to provide facilities for the financing of industrial development and to meet particularly the credit needs of small merchants and farmers. First, a special trust fund of P10,000,000 has been set up for the special account of the counterpart fund to guarantee a large share of the risk to be assumed by banking institutions granting industrial loans. ”

“ The funds in the general obligation debt sinking fund and the guaranteed revenue debt common reserve fund shall be as fully invested as is practicable, consistent with the requirements to make current principal and interest payments. Any such investments shall be restricted to obligations constituting direct and general obligations of the United States government or obligations unconditionally guaranteed as to the payment of principal and interest by the United States government, maturing no longer than 12 months from date of purchase. ”

“ A proportion of ten to one between capital and aggregate demand obligations would probably be justified by American experience. The present practice of fixing the surplus fund at twenty per cent of the capital would be justifiable if the capital fund were properly regulated in amount. ”