Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1888-09-12
THE THREE GOLDEN BALLS.
Pawn Brokers of Paris-The Monts De
Piete of France.
From the EOrtniPhtlV Review.

Pawn Brokers of Paris-The Monts De
Piete of France.
From the Fortnightly Review.
The Monts de Pete, of France, though
not state institutions, enjoy government
protection, being a monopoly recognized
bv law as works of public utility, and in
no town can one be established without
the sanction of the president OF the
Republic and the consent of the local
municipal council. Each town fixes
its own rate of interest. which varies
from II per cent. at the newly estab-
lished bank of Dunkerque TO 8, 4, or
even to nothing in few favored places
which have been enriched by gifts and
legacies. Each town also decides on
the minimum sum it will advance to its
borrowers, which III one or two places is
as high as francs. in others l franc,
but usually fixed, as in Paris,
at francs. The councils have also
power TO limit the mailman loans,
but only fifteen out of forty
five centers have avdiled them
selves Of this power. In Paris
10,000f is the highest sum loaned at the
head office, and 500f the nominal but
often exceeded, maximum permitted at
the succur-sales. Few Monts de Piete
possess much capital, many of them
by the issue of bonds at about per cent.
interest, an investment SO popular
with small capitalists that in May, 1886,
the Paris Mont de Pete was obliged to
refuse new shareholders; and it was
found that a further capital Of from
thirty to forty millions could easily have
been obtained, even at lowered interest,
had it been needed. Originally the
Monts de Pete were affiliated to the
hospitals, and were obliged to hand over
their profits to those institutions, but
the great majority have now as
serted their independence, and devote
their surplus to their own endowment,
with a result that they are able to offer
their loans on perpetualIv decreasing
interest. Paris is one of the three
banks which still has to hand over its
surplus, and it was not until very recent
~ that it was able to realize its demand
that all RESERVATIONS and necessary new
buildings be included in it's expenses,
though these seldom exceed the
modest proportions of per cent.
on the capital invested. In the
provinces, where less business is done
and the average value of pledges lower,
the costs are naturally somewhat
heavier, and it is estimated that even in
Paris, where all operations are on q
70 SCoIC. pICQSCS w pay
the expenses OF storage, handling and
registration. Throughout France, as in
England. interest is CHARGED by the half
month after the first month, but the
length of time for which the loan is
granted varies in different towns be-
tween six months and two years; but
one year Gas in Paris) is the general
limit, and pledges may be sold
by auction after subsequent
three months of grace are expired. The
pawner, however, is not bound to wait
SO long, but may demand that his pledge
be sold within three months, and the
surplus handed over to him. The the
DRY Of valuation, at the Mont de. Piete,
is that loans advanced by the institu-
ton must not exceed iour-ffths of the
intrinsic value of pledges, Of jewels,
pate, and precious metal. no allowance
being made for artistic workmanship,
or two-thirds the value of other articles.