The home journal. (Winchester, Tenn.) 1858-188?, 1883-01-31
A Chinese Loan Agency.

| " hoh y Olllldllldn linus 0lnSelt IMAM
cially embarrassed and needs money, he
does not do as other people do, borrow
IL ana either give q promissory note or
chattel mortgage as security for the
same, but he forms what in Chinese is
called an "owey." This is something
which peculiarly Chinese and requires
a minute explanation in order that it
may be understood. The lowest
''owey" is fixed at 81 for each person
forming it, and the highest $500. For
instance, Il u Chinaman needs 800 he
will call on a number of his friends,
not to exceed ten, and tell them that he
wishes that amount of money, and
desires to form an "owey." If it is de-
cded that it shall be 800 "owey."
then five persons in addition to the
originator combine, For the purpose
OF explaining the "owey" the originator
will be desnated as Sam, and his five
friends Us Vow, Yen, Kow, Chew and
Hing. AT the first meeting OF The six
the originator receives from each OF tie
other live 500. making up the amount
he requires. This is loan made to him
without interest, which he musteepay at
the rate OF $50 per month. At the timo
this sum is advanced the other i've
bid for the privilege of the "owcy' for
the running month. Each one writes
on slip OF paper the amount of the
premium he will give. These slips are
rolled separately and thrown into n
bowl and shaken up, after which each
slip is unrolled and the amount noted.
The "owey'' is then awarded 10 the
one having bid the highest premium,
Vow having bid 81 premium, Yen,
Kow, Chew and Hing eack pay So,
which is theamount less the premium,
and amounting in all to SIG; and if he
adds the amount Of his own contribu-
| ton it will mako total OF -J6, or
equal to the amountadvanccd Sam, less
81 which is reckoned as interest, allow
ing II for each of the four who advance
the money.
AT the close of the first month SAM
the originator, is, by the rules which
govern this system of money lending
forced TO notify all who belong to the
"owey" of the next meeting. At this
meeting Yen, Kow, Chew and Hing ar,
the only ones who are permitted to ole
n premium, Sam and Vow having IL
voice in the matter. At this meeting
the premium of 81 is again offered, ant
it having been awarded TO Yen. the
other three pay him Ssl9 each, and am
and Yen repay their first monthly in
stallment Of $50 each. At the next
meeting only three, Kow, Chew and
Hing, can bid, and if the sane amount
of premium is bid, and it is a'vardc tic
the first of the three named, the Other
two pay him Sl9 each, while the Other
three, Sam, Vow and Yen pay him S!t
each. At the next meeting only two
Chew and Hing, are permitted TO o ie
n premium. The one TO whom Thu
"owcy" is awarded receives from III,
other the amount, less the premium
and from the other four $50 each. A
the next and last meeting, only one re
naming, he receives from the othcrliv,
$50 each, making the full sum of 800
| BY this method the originator of tn,
"owey' WHO obtains the money withou
interest has the use of $500 for on,
month, $50 for four months, $50 70
three months, $40 for two months AM
$40 for one month In return
for the use OF the money h,
is forced to act rs collecto
from the other members OF the "owey,
who are required to pay the moidhly in
stallmcnts of $40 He also assumes
risk, and that is, il any member of tn
"owcy' does not pay at the appoinie
time, he has 10 be responsible for tn
amount due The other members {
the "owcy." who, by installments nc
vance money to one another, receive il
terest for the amount of their advances
and each in turn has the use of the tot;
amount of the "owey'' in the same pre-
portion as the originator. This mctho
OF moncy-lcnding is in vogue among u
classes, and women often form "oweys
among themselves. When the slips {
paper, before alluded to, are draw
from the bowl, it often happens that tw
or more contain the same amount G
premium. In such an event the 'owey'
Is given to the one whose slip is frs
drawn. The "owey" may be con
posed VT any number not exceeding te
besides the originator, and the creates
amount that may be raised by sue
means is $4,000. Whenever an 'owey'
is formed and the amount to be award
ell to the originator is $500, or in eyces
thereof, he is required TO treat thos
who loan him the money, to Dime
| l.. Al. hnn
times high premium is bid for III
privilege OF the "owcy' for each su
ceeding month, and this gives the lem
ers considerable interest for the use
their money. san FrulciS'o GU.