The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1875-06-17
4 sub.tItuts for Pawnbroksr.' shops.

a Substitute for PavnbrOkers' shops.
The Schultz-D elitsch system OF banking
has been repeatedly explained at length in
the Tribune. It is sufficient to say, now,
that under il q number Of WOFkingmen or
women deposit a small fixed sum every
week, and can borrow certain multiple Of
the amount they have on deposit. Zach
SHAREHOLDERS in the bank is responsible for
all its debts. Only shareholders can boF-
row. They pay the ordinary market rate
Of interest, and the profits are devoted,
first TO the payment Of Q low interest on
deposits, and, second, 70 increasing the
capital Of the bank. When the bank has
become well established, it often boFfows
considerable sums &C low rates and lends
them on higher terms In a word, the
banks are cooperative stores which do a
Wholesale and retail business in money. The
first one was founded about a quarter of a
century ago ct Delitsch, inPrussian SaxOny,
by Schultz Delitseh, who is still living, and
is more than famous in his own country,
although, strangely enough, his name Is
scarcely known in America. There are
row over a thousand such banks in Ger
many, owned by some hundreds of thou
sands Of working people. In the crisis that
followed the opening of the Franco-Gers
man war, when many of the great banks Of
Germany collapsed, not one of these failed
They have done great work and have
done 1t well. They have been introduced
into Italy, Austria and Russia, and have
succeeded in all three countries. This
shows that their success in Germany has
been due to the inherent goodness Of. the
idea, and not to any peculiarly favorable
local circumstances. Slight notifications
1 M Al II. 4
Russia, and possibly elsewhere, but the
substance of the idea has been perfectly
preserved. ST. l1 I.1s-.l n 80 n. :,
II the Sehultz-Delitsch bank has thriPen
after being transplanted, why should it not
be tried herel In the course of time il
would rescue the industrious poor from the
clutch Of the raseally pawnbrokers. and
would thus tend TO break up great mart
Of the shops that serve as schools for thieves
The two main sources of profit for pawn.
broker are stolen goods and goods paWned
by the honest poor in times OF sickness, or
when the bread-Winners can get no work.
Heis quick to see when his customer must
have money and is therefore in his power,
and he uses the power mercilessly.g The
sickness of husband and father for fort
night often strips the house bare, and makes
the pawnbroker the owner of the whole
furnishing. II the poor could 90 at such
times to bank of their own instead OF a
pswnbroker's shop, they could borrow the
money they needed at fair rates, and could
thus easily tide over the time of trial, a vast
amount Of suffering would thus be saved
the world. ,isra fr af1
The greatest difficulty in the way Of
establishing these beRefcent banks here is
the fact that the work must be done. by
workingmen. 1t cannot be wholly done for
them, although it may be in part. The first
Russian bank was founded by a rich landed
proprietor, who loaned 1T capital and re-
tanned a certain control Over-it. As afrule,
however; it is best that the men to be bene-
flied should do everything themselves
And this is the great trouble, for it Is prac-
ticaIIy impossible to persuade American
workingmen to unite, outside of trade.
unions, for self-help.4C Chicago Tribune. %