National Republican., 1883-03-16
THE MONEY CHANGERS.
How They Got and Keep RemOrseleSs Grip
on Unfortunate Clerks.
From Two to Ten Per Cent a Month
Exacted on Small Loans,
The Borrowers Forced 10 Renew Each Month and
Thus Protect the Usurers,
The Principal Often Paid Many Times
Over I'm Interest.
10 me Ednnr.

press, the detective corps has been relegated
to private life, tho gamblers banished, and
the dens south of the avenue are receiving
attention, is it not time to ook'after and root
out the black and white usurers, who for
years have fattened upon the necessities Of
government clerks md others9
Tho business of these worthless is to lend
money on good security and charge for the
use thereof any rate of interest, from 2 to 10
per cent. per month, according to the known
necessity of the borrower or the humor of the
broker; and woe betide the poor clerk who
does not promptly come to time with that in
terest monthly and at the maturity of the
note
There are numbers of intelligent, worthy
gentlemen, many with wives and little ones,
who through dire necessity have been COM
PEELED to borrow from these bloodsuckers, and
for months and years have made and re-
newed their notes for the original amount"
and have paid that interest" every thirty
days" until principal and double the legal
interest have doubled and compounded, and
still the broker" holds the note for the
principal, and will dare threaten to report to
the secretary of his department the employe
who fails to pay tribute at the time and place
appointed.
These "broker" birds are cunning in their
negotiations. They require upon the matu-
rity of each note, not only that their cent
per cent" be paid to the uttermost farthing,
but that new notes be given for the old ones,
whereby all receipts or other evidences of con-
tinued extortion are avoided, and the last
note appears as the original transaction. So
that should the clerk fall by the waysde
heartsick, weary and sore in his efforts to
sustain the burdensome tribute, retain his
office, and maintain his respectability T;
should he falter but a day, the vulture swoops
down upon him with that note and an as
CT. hu.I NNI
imagined, accusing the clerk of attempting to
defraud him, or at least of not respecting his
obligation" Then hies he to the department.,
and gently and innocently drops" to the secre-
taryor chief clerk the convincing evidence" T"
fthat clerks dereliction or dishonesty. The
clerk is called; he comes with fear and
trembling; he hears astounding revelations
and barely manages to summon breath and
courage sufficient to acknowledge his sigma
ture and promise to pay on the first" This
compels him to borrow from Cormorant No. 2,
and his struggles with the birds of prey now
begin in earnest. Things so on so for time {;
his troubles increase by the rules of geometri.
cal progression until the end is reached, which
is usually a discharge with no character or
with one for disregarding his obligations.
know several clerks in the tolls of these
harpies, and one yesterday said to me: 81
am afraid l shall lose my position. l can
hardly attend to my official duties because of
in six years to one money lender S64S for the
use of $400 originally borrowed, and the fell
low still holds my note for the $500 and is
making it unpleasant for me for not coming
to time of late What shall do2 l can't
pay the principal now, and series Of troubles
lately render me incapable of paying the in
terest for q time, which is $9per month. My
indorsers are old friends, and are naturally
anxious and / fear the buz2ard will complain
to the department"
Now, this gentleman has in six years paid
$64S for the use of 5000 originally borrowed,
still the broker " holds his pote. He should
have paid legal interest, or say per cent.
per annum, which would have amounted to
$li4. Taking this from S64S (already paid as
interest) leaves 1904, usurious interest, from
which deduct the $500 originally borrowed,
and the "brokcr" owes the clerk 1904 instead
of the latter owing him $300which he should
not he compelled TO pay.
Now say, and | think / voice the opinion
of every honest man in the district, that each
employe of the government who has been 80
unfortunate as to fall into the hands of these
hide-bound philanthropists should, upon
satisfying the head of the department that he
has paid or is paying the amount actually bOr-
rowed with legal interest, be protected from
such of the gang rs have the assurance TO ap-
peal TO the departments to enforce the pay
taont of claims already or nearly liquidated.
In cases where the clerk is not well known
or has established % " doubtful reputation
he may be required to "put up" his salary
receipt" as n collateral, whereupm his note
will be discounted ut from to 10 per cent;
and sometimes in addition the money
changers" require that the "chief of divis-
sion" or assistant chief wherein the clerk
is employed shall indorse 80. X" or some
other form of acceptance upon the paper.
This is supposed to mean that tho clerk Is
secure in his position or that the chief or as
sistant will see il paid
Now, these chiefs and assistant Chiefs great,
big hearted fellows, cannot see their under
clerks in trouble, possibly through sickness
or death in his family, or from any other
cause, and may through sympathy put 40.
X" upon the pay receipt, though feeling that
he may be doing something irregular.
The clerk then gets the money, and his
trouble is for the time overcome, But the
note natures; he cannot pay the principal,
but pays up the interest and "renews." Thus
IL may continue from month to month, and
the vampire sucks many times the amount
actually loaned with its legal interest and
yet will hold that clerk for principal, The
sequel Is the clerk becomes desperate in his
efforts to meet his obligations !" he may
become reckless and fail to make any pay
ments. God help him and his little ones
now, for Mr.. Shylock never will but he
straghtway goes TO the department, shows
up the "eXtravaganCes of that clerk,
and substantates his statements by the
notes and indorsed "pay receipts" in
his possession. The chief or assistant
chief who may have indorsed the 80. X"
thereon is called to account, and must ex-
plain, with fears that he may suffer for his
indiscretiOn. The unfortunate clerk, with
trembling limbs and aching heart, attends
before the official having the matter under
investigation, whlo the 10 per CENTER with
the meekness of n parsOn, shows up the clerks
shortcomings and imperfections whereupon
the clerk may be ordered to square up on
the first, which means pay principal and in
terest as per face of note, or he may be re-
ported TO headquarters as unworthy of his
position, because of reckless disregard for
honest obligations,
This method of prosecuting clerks should be
stopped, and to this end they should be given
full hearing in person or by attorney, If he
prefer (snce the department is the clerks
COURT, and If in the investigation of these
cases (Which have not at all rose colored) it
is found that the clerk has paid in usurious
interest the sum originally borrowed with
the legal interest, or has nearly done so, the
premises, but direct the usurer TO his recourse
in the courts, thereby assuring the clerks that
their tenure of Office is not 70 be affected by
the representations Of these "money eaters"
/ have q list of these men, from the high
flyers who can afford to pay legal interest for
the use of deposits (some of whom masquerade
before the public as leading ctizens) to the
quiet fellow occupying that corner desk in the
department and who takes his "victim" TO
the corridor to talk / have also been fur