The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1883-03-10
How Cinnamon Borrow Money.


San Francisco Call.
When Chinaman finds himself fnanci-
ally embarrassed and needs money, he does
not do as other people do, borrow it and
either give promissory note or chattle
mortgage as security for the same, but he
forms what in Chinese is called an "owey."
This is something which is peculiarly
Chinese and requires minute explanation
in order that it may be clearly understood.
The lowest "owey" is fixed at 81 for each
person forming it, and the highest 5000.
For instance, if Cinnamon needs 500 he
will call on 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 decided that it shall
be $50 'owey," then five persons in ad-
dition to the originator combine. For the
purpose Of explaining the "owey" the
originator will be designated as Sam, and
his five friends as Vow, Yen, Kow, Chew
and Hing. At the first meeting of the six
the originator receives from each of the
other five $50, making up the amount he
requires. This is loan made to him
without interest, which he must repay at
the rate of $40 per month. At the time
this sum is advanced the other five bid for
the privilege of the ''owey" for the run
ming month. Each one writes on slip of
paper the amount of the premium he will
give. These slips are rolled separately and
thrown into bowl and shaken up, after
which each slip is unrolled and the amount
noted The "owey' is then awarded to
the one having the highest premium
You having bid one dollar premium, Yen,
KOw, Chew and Hing each pay SO, which
is the amount less the premium, and
amounting in all to SIG; and if he adds the
amount of his own contribution it will
make total of 500, or equal to the amount
advanced to Sam, less 81, which is reckon
ed as interest, allowing 81 for each of the
four who advance the money.
At the close of 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 are the only ones who are
permitted to offer premium, Sam and Vow
having no voice in the matter. At this
meeting the premium of 81 is again offer
ed, and it having been awarded Yen, the
other three pay him $19 each, and Sam
and Yen repay their first monthly INSTALL
ment of $50 each. At the next meeting
only three, Kow, Chew and Hing, can bid,
and if the same amount of premium is bid,
and it is awarded to the first of the three
named, the other two pay him $19 each,
while the other three, Sam, Kow and Yen,
pay him $40 each. At the next meeting
only two, Chew and Hing, are permitted
to offer premium. The one to whom the
"owey'' is awarded receives from the other
the amount, less the premium, and from
the other four $40 each. At the next and
last meeting onl ly one remaining, he re-
ceives from the other FIVE $40 each, making
the full sum of 500. By this method the
originator of the 'owey'' who obtains the
money without interest, has the use of
500 for one month, $50 for four months,
$50 for three months, $40 for two months,
and $40 for one month. In return for the
use of the money he is forced to act as col
lector from the other members of the
"owey," who are required to pay the
monthly installments of $40. He also
assumes risk, and that is, if any member
of the "owey" does not pay at the appoint
ed time, he has to be responsible for the
amount due. The other members of the
"owey," who, by installments, advance
money to one another, receive interest for
the amount of their advances and each in
turn has the use of the total amount of the
"owey'' in the same proportion as the
originator.
This method of money-lending is in.
vogue among all classes, and women often
form "oweys" among themselves. When
the slips of paper before alluded to, are
drawn from the bowl, it often happens that
two or more contain the same amount of
premium. In such an event the 'Eowey" is
given to the one whose slip is first drawn.
The ''owey' may be composed of any
number not exceeding ten besides the
originator, and the greatest amount that
may be raised by such means is $4,000.
Whenever an "owey" is formed and the
amount to be awarded to the originator is
$500, OF in excess thereof, he is required
to treat those who loan him the money to
dinner, not to cost less than 50 head.
Oftentimes high premium is bid for the
privilege of the ''owey" for each succeeding
month, and this gives the lenders consider
able interest for the use of their money.