New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-09-17
P1VNRRDEEES

Mayor Grace is beginning to look into the
pawnbroling business, its profits and It's
abuses. 1t is high time The laws regulating
the Hedging of articles in this State do require
amendment but they are not really so unjust
in themselves if they were strictly observed.
There are. however, no laws which are 50 per-
sistently and wholly disregardcd. The patrons
of the pawnbroker are not class apt to be
critically informed as to the law in any case I;
nor when it il violated and they are the VIC
TINS are they likely from the circumstances OF
the case to thrust themselves before the public
to compel its observance
Hence the pavnbrokers have had it all their
own way so far. They are entitled legally
only to 10 per cent interest on the money
loaned, W hiCh to Il casual observer appears ex-
tortonate enough. but the fact is that the
loan of the pawnbrokcr Is on different basis
from, that of any other creditor He makes his
proGtIlI ON the hclplcssncss OF the customer, and
is allowed by the existing law so to make it.
The man who boIrows money elsewhere has a
fixed legal interest to pay, and gives as security
the Endorsement of a friend or real estate which
has a known established value, and which if
sold will be sold in open market. The man
who, pressed by want, brings his watch. dla-
monds or old coat to the sign of the three balls,
is compelled to allow the pawnbroker to set
his own value on the security. The more ex-
IRENE his want, the lower that value will
probably be. II it is so great that he cannot
redeem the pledge, it is sold in semi-cogert
way. 1t is a matter understood that full value
for articles will not be paid at a pawnbroker :
sale. Hence he pays 10, 30, 80 per cent, and
loses his property altogether when sold. lie
Is entitled to the surplus over the money and
interest which he owes. But how often does
he know this, or if lie knows come forward to
claim it The pawnbr0ker may he, and doubt
less often u.s. honest. But the enormous OPP
portunity which both the law and circumstance
give him inevitably swindles the customer, if
he voluntarily does not.
Now why should IA man who wants to borrow
money and has but n watch or old coat to give
as security not have the same even justice as
the man who bOrrows money with house as
security? The man who sinks into a pawn
brokers' shop in the dusk is not necessarily a
thief or an unrepcntant prodigal son driven to
eat husks with the swine, though public opinion
so regards him. There is and ought to be
nothing more discred;able IN borrowing money
on this sort Of security than on any other, and
it is time that this business was taken ont of
the darkness and slough Of injustice aud eX-
tortion. In France the Government protected
the poor by taking the business into its own
hand and by establishing the Mont de Piete.
Here the same end could be accomplished by
the opening of banks by reputable capitalists
who would lend money on the value of articles
set by authorized appraisers, and who would
return the surplus to the owners after open and
public sales, when the sale was necessary.
There is no reason why this business should be
carried Oh behind curtain. Let us have it
ont in lnOad daylight.