News and citizen. [volume] (Morrisville, Vt. ;) 1881-current, 1883-10-04
BLEEDING TIE CLERKS.
AN INTERESTING LETTER FROM
WASHINGTON.
Washington Brokers who Lend Money to
Them IsuriOUs SIHtcs.

A Washington letter says Assistant
Secretary of the interior JoceIyn touched
on a sore spot a few days ago when he
said he would not help money lenders
get their loans from his clerks. The ex-
tent to which employees are bled by
these ursurcrs is scarcely credible. One
| firm is said to do business of $40, 600 q
month, and there are several others
| whose transactions are nearly rs large.
81 suppose seventy-tye per cent. of the
Government clerks" said one of these
! brokers, care bchind-hand, and in the
habit of borrowing money. The rates
vary from two per cent. to ten and even
twenty per cent. n month. Que large
firm which does business on Il conserva-
tive basis charges its customers tine legal
rate of eight per cent. per annum, and
then two per cent. month for discount
ing the notes. In this way the brokers
evade the laws against usury. The COM
mon charge for discount is ten per cent.
a month. The Washington broker is
worthy of a committee of investigation,
and a rigorous inquiry by the Democrat
ic House would bring to light some
very sensational scandals" ="
There is no legal process for collecting
these usurious debts, but the brokers
know how to bring influence to bear on
the clerks. Often a chief of division or
bureau is himself a customer in the
brokers' power, and willing to apply the
thumbscrews to a subordinate to ease
the pressure on himself. Besides, the
brokers like all men who control a large
capital have great indirect influence
with the higher officials, and can secure
themselves in that way. Many of the
chiefs employ their own capital and that
of their relatives and friends in the
brokerage business. The brokers do
not use their own money even after they
are rich. Most of them begin with
nothing but a good credit at bank.
Legitimate" bankers readily discount
all the paper brought them upon the ell
dorsement Of the broker at Il per cent. |
a month. The brokers use the bankers
money, and turn it Overland over. They |
have no end of tricks of the trade to get |
their money, One day n fOrIOrn-Iook- |
ing lady in widows weeds came to Gen. |
Walker with pitiful tale. One of the |
census clerks, she said, was defrauding |
her of her board bill. She wiped her |
tears as the indignant Superintendent |
told her that the clerk must pay or go. |
He paid. 1t afterwaTd appeared that |
the poor widow was worth $1,000 and |
was settling up her late husbands brok- |
erage business.
In all the departments the failure to
pay debts is regarded as iustifying inter
ference on the part Of appointing officers,
and this gives the brokers Il lever which
they soon become expert IN using.
There is a regular clientage Of these
clerks, who are chronic bor-
rowers. Formerly the brokers kept Il
black list for mutual protection, but of
late less fratornaI policy has prevailed,
and new firms are left to find out the
dead beats by costly experience. There
are many sctbackS, even when the lend
ers are shrewd and careful. Borrowers
get deeper and deeper into the mirc, lose
their positions, and disappear. But, in
spite of their occasional losses, most of
the sharpers get rich. Few women
clerks borrow money. When they DO
they usually get the endorsement of
men. Very often the latter have to pay
the note. This phase of the subject il
Iustrates an unpleasant feature in de
partment life, but, fortunately, one that
is much exaggerated. The coIored en-
pIoyces are great borrowers, and pay
enormously high rates. They are said
to be better pay, however, than white
people. Two or three firms of colorod
brokers have become quite rich i'll this
business among their own race.