Seattle daily post-intelligencer. [volume] (Seattle, W.T. [Wash.]) 1881-1888, 1884-08-30
MONEY LENDERS.
sharks whe Pr~y spea the Necessities
OF the poer.
New Haven Palladium. ]

sharks whe Prey upon the Necessities
OF the Peer.
New Haven PaIladiom
The necessities of the p,or man make
the opportunities OF the rich 10 troth
that has more practical life than Is seen
upon the surface. Adventurous capt.
talists, note shavers and p4wnbrokers
could tell strange stories If 'oen's tnan-
ci4l necessities If tAey could be induced
to relate them. But this class of PEG
pie, especially those of the last division.
keep these secrets locked up vithiH
themselves. The laws of Conaecticut
aim to more rtgidly guard the IN errsts
of the poor than those of most States.
but With indifferent success. Some OF
the local Snallwe-ds confine themseiv
To receiving as security small articles Of
v4lue, watches, diamonds, chains, rings,
and jexelry geoerally. These take up
but lIt 10 room for toe value IN them,
and are easily turned into cash. This
class f goods Is considered the most
desirable for the above reasons; bat as
the brokers advance bat about one-half
of the real value, they are almost iuva-
riably redeemed. The lower class of
pawubrokers, who take almost anything
offered. are more discriminating aud
more unjust in their exactions. Ii is
the extreme poor, those who are bat a
step from beggary and the almshouse,
that visit the establishments of these
brokers; and, We're il not such sad
commentary upon the pinching tims
which many people pass through, the
curious medley presented in one of these
establishments would be amusing in
deed. Here one rises TO lind all m tanner
of clothing, M ms garments, dresses,
over garments, she's and rubbers, odd
and oftentisne unique pieces of crock-ry,
an heirloom perhaps of the one who has
come TO want, reyoivers and knives, ano
-oftentines the family Bible. its value
often reduced because IL contains the
family register. On this class of goods
4 mere pittance is advanced, oftentImes
AS little as the price If a loaf of bread,
or glass of beer. This class of goods
is less sften redeemed than the better
class of goods.
BY Law of the State, goods not re-
deemed within six months may be sold
oy the broker, and the rate of interest
Is fixed ut % per cent. a year. This rate
of interest, however. does not satisfy
the brokers, and many ways of avoiding
the law are resorted TO. Toe follow
lug copy of a pawn ticket shows one
of the methods of increasing the IN
terest:
NEW HAVEN, - -, 1884.
Do the payment of s. and interest
thereon as prescribed by the statute law
of this State, l promise to deliver to
bearer or Mr.. If called for within
Que month from date.
At the request of the owner this prop
erty Is insured against loss or damage
by firs or rObsery to the value of g,
for the furthe. SUN of 3. 3
The practice of the firm using the
above o ank IN to charge enough for in
surIng to make 10 per cent. return for
the money loaned. The last section
opens wide gate for extra charges,
which the law cannot touch, however
apparent the fact that joe tice should. +.
A case is told OF man who arrived
in town in condition known IN popular
parltnce as strapped" Directing his
steps to a brokers' store, he put up his
valise for 81. IL remained in the hands
Of the broker a month, and when he
called for 1t he was Obliged to pay 81
for interest and storage. At this rate
the in .erest collected by the broker Was
100 per cent. u year. In Boston goods
mast be rs deemed In four months, and
the rate of interest Is fixed by the Police
Commission. Ibis Is, for 81, cents
for first week and each week after 2
cents; from 81 to So, per cent. the first
Week and ~ per ceut. per week there
fler. Iu New York the time Of re-
dsmptioa is liked at one year for sums
under xl0O and the interest at 3 per ct.
per muRth FIR the first Six MOntns, and
after that 2 per cent; over 5 i0J, 2 yer
ceut. per month the trst SIX months,
and after that IL Der centum per
month.
Next to pawnbrokers among those
who have acoommod atoms for the
needy may be termed adventurous CAP
italists. who loan large sums on furni
ture and carriages. horses and other
cOilaterais. They charge literally for
the money, ~ the security Ii u little
shaky and the value uncertain. There
are various liabilities and contingencies
which may come in to affect the value of
the security. When the property is
held by the one to whom the money is
loaned, there is a chance that it may
be removed, become damaged or burned
up.
Still another class of men who loan
money on a :" kite flying" man are note
shavers. The amount of discount de-
ponds solely upon the character of the
paper. As the class of borrowers who
20 to these people have no credit with
the banks, the rate of interest paid is
generally ruInous. Previous tH 1877
there was a great deal Of talk through
out the State concerning legal rates of
interest. It became almost parry
question, so deeply did it in crest the
people. The present law was that year
placed upon the statute books and has
generally worked satisfactorily. The
law fixes the legal rate of interest at 6
per cent bot leaves parties negotiating
free to make such a bargain as they Sos
fit. On this basis almost any rate can
cha 'ged In accord 4nee with the neces-
stiles of the borrower. IL the bor-
rover refuses to pay the rate agreed
upon and the case goes to the courts for
adjustment, the law will only allow 8
per cent.
young man came to q weli-known
citizen, To whom he was q stranger, a
few days ago. and wanted to borrow
$l5 for N Dnth to pay expenses incurred
by sisters illness. tie offered am
ple security. and proposed to pay fair
interest.
Why don't you 90 to -T man,
ing man Who gave us the mercantile
business and became a money lender
some years ago. He Ia in that bust
ness"
II did" was the young mans reply;
but he wanted Is interest for Sis for
two months, and / can't afford 70 pay
thai muchn