The Big Sandy news. [volume] (Louisa, Ky.) 1885-1929, 1889-01-24
THE MoNTs DE PETE.
Pavnbroking Institutions Protected b
tho Government OF France.

Pavnbroking Institutions Protected by
tho Government OF France.
A writer in the FOrtRiOhtlu Rerieic gives
an idea of how pawnbroking is conducted In
France. The Monts dc Pete of France,
though not State institutions, enjoy Govern
ment protection, being a monopoly recog-
niEed by law Us works OF public utility, and
in no town cdn one be established without
the sanction Of the President OF the repub
lie and the consent Of the local municipal
council. Each town fixes its own rate OF in
terest, which varies from IA per cent. ut the
newly-established Bank of Dunkerquo TO D.
4, or even to nothing in q few favored
places which have been enriched by gifts
and legacics Each town also decides on
the minimum sum it will advance to its bor-
rowers, which i'll one or two places is as
high as q francs, in others franc, but usu-
ally fixed as in Paris, at francs. The
councils have also power 10 limit the maxi
mum loans, but only fifteen out of forty i've
centers have awaited themselves OF this
power. In Paris $4,000 francs Is the highest
sum loaned at the head Office, and 500 francs
tho nominal, but often exceeded, maximum
permitted at the suoeursales Fcw Monts de
Pietc possess much capital, many OF them
none; and their funds are largely raised by
the issue OF bonds ut about 3pcr cent inter
est, an investment so popular with small
capitalists that in May, 1855, the Paris Mon,
de Piete was obliged TO refuse new share
holders; and it was found that a further
capital Of from thirty TO forty millions could
easily have been obtained, even at
lowered interest, haG II been needed.
Originally the Monts de Pete were
affiliated to the hospitals, and were
obliged 10 hand over their profits TO
those institutions, but the great majority
have now assorted their independence, and
devote their surplus TO their own endow-
ment, with result that they are able to
offer their loans on perpetually decreasing
interest Paris is one of the three banks
which still has to hand over its surplus,
and it was not until very recently that II
was able to realize its demand that all res
torations and necessary new buildings be
included in its expenses, though these sell
| dom exceed the modest proportions OF three
| 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
| il is estimated that even in Paris, where all
operations arc on large scale, pledges un-
der fourteen francs do not ply expenses OF
| the storage, handling and registration
| Throughout France, Us 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
between six months and two years; but
one year (as in Parisl is the general limit,
and pledges may be sold by auction after a
| subsequent three months Of grace arc cx,
pred. 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 10 him The theory
of valuation, at the Mont de Picte, is that
loans advanced BY the institution must not
exceed four-fifths Of the lntriusic value Of
pledges, OF jewels, plate and precious metal
no allowance beng made for artistic work
manship, or twO-thirds the value Of Other
ARTICLES