The Washington critic. [volume] (Washington, D.C.) 1889-1889, 1889-06-18
THE DISTRICT Los Es.
How brokers Operate Under Bankers'

rg., s Licenses. .tl nr-
The Department employe Is very fre-
queptly disappointed when he reaches
Washington. Instead OF finding the Elysium
of Political Splendor which his fond fmagi-
nation depicted, he discovers place very
similar to the workaday world which lie
has left. Instead of finding the latch string
to the Treasury vault invitingly suspended
from the outer doors, he discovers that the
ignominious hustle for the almighty dollar
is quite as vigorous here as elsewhere, the
contents of the Treasury being carefully
preserved as q text for "Surplus" editorials
and speeches. 9 leiA -AH n'l
A good many Of the young men en-
ployed in the Departments find themselves
.'short' at times and are obliged to apply
for loans. They don't go to a pawn
broker, however; they are accommodated
In a far more genteel fashion. There Is a
large number OF bankers In this city who
do no banking business whatever except in
tiscounting notes. i'Note -Shavers'' Is the
disrespectful term sometimes applied to
them. The note-shaver is, OF course, a fix
ture, almost a necessity in every commu-
nifty, and there would be nothing excep-
II not for the claim that the District reve-
nues suffer through them The District is
not particularly wealthy corporation and
II ought to have every cent there is coming
to 1t. tg;ri
Officer s. j. Block Is especially assigned
to matters pertaining to the license laws,
and is OF necessity well posted on the sub
ject, He, said yesterday to CRITIC re-
porter: "The license law assesses brokers
enough were It not for the further proviso
that any person who has bankers license
need not take out brokers' license. To
obtain bankers license II Is only necessary
TO pay fifty cents on each thousand dollars
Of capital stock. A man goes to the au-
thoritles, states that he has thousand
dollars or so Of capital stock and gets a
license for fifty cents on the dollar. This
leaves people who are charging from five TO
ten per cent a month Interest, with no an
nual expense except the small percentage
on capital stock, while by rights they
should pay one hundred dollars n year.
II is very defective law and should be
remedied. You can't do anything aLor.
IL, however, as long as the law stands In It's
present form. 0nssisi
~ The usual manner In which the money
lender works Is to make for instance ten
dollar loan; the borrower gives bis note for
$40 and receives that amount less whatever
the interest would amount to. In addition
: to this the note draws the legal rate OF In
terest. They receive no security Of course
except the note, but that Is liable to collec-
ton through the usual methods. al4i-
~ There are about forty houses outside the
national banks that are doing business under
banking licenses. Most Of them never had
check drawn on them In the whole course
Of their existence.
VI The officers have had some trouble with
financial free-booters who make loans to
clerks and Others, accepting gold watches
and bicycles as collateral. Cases OF this
Kind come to notice quite frequently In the
Departments, aud 1t requires some vigi-
lance to keep this business in check. ~
otIs ills fa M t.rl t.fr ff'r =. ts MN