Evening star. [volume] (Washington, D.C.) 1854-1972, 1884-06-21
a.. TEN PER CENT A MONTH.
Government Clerks Who Get Into tn,
Tolls Of Note Shavers.

Government Clerks Who Get Into the
Tolls Of Note Shavers.
THE MORAL REFLECTIONS OF BRoKER-wHAr
HE SAYS ABOUT NOTE sHAvING-CLERKs WHO
PAY s12O YEAR FOB THE USE OF GOETHE
OLD SYSTEM OF SELLING PAY VOUCHERS, ETC.
"Well, who would have thought" remarked
broker in coptempIative tone, 'that there
was over 100000 on deposit in Mlddleton's
bank" -
1t may be stated. by the way, that brokers
just now are very much given to wise and moral
| reflections upon the recent failures. Moral re-
Elections are as plentiful as extras in bill at a
! watering place, and a. broker leaning back in
his office chair with his feet on the desk and a
cigar In his mouth. dfscourses with more elo-
quence upon the lessons to be derived from the
| late events than the Sunday orator. who begins,
dearly beloved brethren the lesson which this
affection teaches US" &c.
The broker whose remarks are above quoted
glanced around at his select audience of office
boys and associates, and deriving inspiration
from the solemnity which was depicted upon
their faces, thus continued: II suppose we will
be Informed next that the deposits with Squer
amounted to hundreds of thousands. would
have been willing to bet" he continued and
then paused; ''weI, if had been going to bet
would have put up $500 to 81 that the deposits
|
ne went on sadly, 'if some one would say that
he had half a million of deposits would not
dare to contradict him."
The broker gazed dejectedly out of the win
dow IN silence, and STAR reporter in the audi
ence ventured to intrude upon his melancholy
reverie by asking him why such large amounts
were on deposit.
High rates of interest" was the sententious
reply.
How is it possible to pay high rates of inter-
fhn nyfa 70, af,x,
the mystery.
Shaving notes." responded the broker and
then dropping his laconic manner. he resumed
again the ministerial.
THE MYSTERY OF HIGH INTEREST.
Shaving notes is at the bottom of the whole
business. When a man can get ten per cent
month, he can afford to pay high rate for
loans, and, if he confined himself to this BUSH
ness, there would be no danger of his failing. 1t
IS as sure as death and taxes. When a man
once gets into the hands OF note-shaver he
finds it difficult to eXtricate himself The note
broker ls like the old man of the sea- You see
II Is just this way: Suppose a clerk is hard up
and needs money. He goes to one Of these
men, and, of course having no security to offer.
ne borrows on his personal note He gives the
broker note for 800 and receives 800 the
note being payable at the end of the month
When the note Is due, the chances are that the
man has not the money to pay the principal
and SO ne simply pays $40, and renews the note
ior another month. The next month repeats
the history OF the last, and so it goes ON, the
clerk paying $120 year for the use of 800
IL knew a broker" interrupted one Of the
group, who loaned clerk 500 in 1874 and
regularly, every month since, he has been paid
$40 for the use of that money. He told me that
he had two loans like that, and was well satis-
fed with the Investment"
But why" began the astonished reporter
why don't they pay the principal3" said the
broker anticipating the question. "Simply be-
cause they can't; They get behind, and they
cant catch up You might better ask why they
don't refuse to pay the interest. Some of them
do. There are q few risks in this business A
note shaver sometimes falls in with dead beat
But the high rate Of Interest which he gets out
or the paying CUSTOMERS makes up for such
| losses. But you see there is security after all
providing the maker Of the note is clerk in one
OF the departments The clerk knows, and the
broker knows. that when a complaint is made
that clerk owes money the official at the head
OF the department either compels him to pay or
discharges him, That, is the reason men pay,
month after month"; an exorbtant rate of inter-
est They are afraid OF discharge"
SELLING PAY ACCOUNTS.
"Some years ago." continued the broker, ':the
clerks instead OF, giving their personal notes
used to assign their pay accounts just as the
army and navy eflicers.do now. But this was
prohibited by Congress, because it was supposed
to encourage extravaganza on the part Of the
clerks. think that it was good deal better
than the present method because each month g
transaction was separate and distinct. clerk
would have his pay account for 800 cashed tor
40 and then he would be under no further OBJ
legations. But with note the interest runs ON
forever
Well Congress abolished this system, and in
the investigation it was found that some of the
m Until, hat
and informed them when a clerk was likely to
be discharged. or was likely to resign and tn en-
no loan was made for that month OF course,
these officials saw that the interest was paid
regularly, and If 1t was not, the screws were
brought to bear upon the unucky clerk and he
soon consented to walk in the path of rectitude
and pay his debts. 1t does not seem to me as If
there was any great change in this respect A
note brokers' complaint at the departments Is
pretty sure to result in the official advice to the
clerk to pay his debts. The clerk knows this.
and 80 when he once falls into the clutches of q
note broker he Is afraid to default on the nav
ments. The investment is as good as govern
ment bond as long as the clerk remains in the
government service.
LOFTIER MORAL TONE.
81 don't defend any man who fails to pay his
debts" said the broker, ascending to still
higher moral plane 'but don't think that the
government should go into the collecting bust
ness OF course, when it is manifest that a clerk
is dead beat he is not fit to be in the employ
ment OF the government and should be dis
charged. But l don't think that merchants
brokers and business men of all kinds should
give credit to persons whom they would not
trust except for the fact that they are employed
by the government. 1t works hardship on all
concerned and encourages habits of extraya-
gance and luxury. say il man gives clerk
credit let him get his money as he would from
any other customer, and not expect the govern
ment to collect it for him."
The full effect of these moral reflections was
somewhat married by the office boy tumbling off
his chair in deep sleep, and landing on the
floor with crash.
Some of the younger brokers, who had added
themselves to the original group of loiterers
from the neighboring offices, laughed at this
occurrence, but the Others were too deeply
Impressed with the spectacle presented by the
mOralizing broker and his discourse to give way
to levity.
The preacher broker pretended not to observe
the accident which had disturbed the slumber of
the office boy, and with unruffied countenance
he pursued the train OF his Thoughts.
II consider note shaving mean business It
Is dirty; that's what it Is, and never do it my
sell. But, at the same time, there are men who
want money, and as they can afford to paw
high rates of interest, Of course. people are
anxious to let them have the money. But it
seems to me that it is all the same"
This gave rise to very general ex-
preston of opinion, and it seemed to be
the unanimous conviction that understanding
and usuriOus interest was q demOraliZing bust
ness. Then the congregation began to aisperse
and the preacher removing his heels from his