Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1889-02-21
THE MONTS DE PETE.
Pawnbroking Institutions Protected by
the Government of France.

PawnbroIlng Institutions Protected by
the Government of France.
A writer in the Fortnightly Recte,o gives
an idea of how pawnbroking is conducted in
France The Monts de Piete of France,
though not State institutions, enjoy Govern
ment protection. being q monopoly recog
nized by law as works of public utility, and
in no town can one be established without
the sanction of the President of the ,epub
lie and the consent of the local municipal
council Each town fixes its own rate of in
terest, which varies from IA per cent. at the
newly-establshed Bank of DunlSerque to S,
4, or even to nothing in a few favored
places which have been enriched by gifts
and legacies. Each town also decides on
the minimum sum it will advance to it's Dor
rowers, which in one or two places is as
high as 6 francs, in others franc, but usu-
ally fixed, as in Paris, at 3 francs. The
councils have also power to limit til. maxi
mum loans, but only fifteen out of forty five
centers have awaited themselves of this
power. In Paris 10000 francs is the highest
sum loaned at the head office, and 500 francs
the nominal, but often exceeded, maximum
permitted at the succltrsnles. Few Monts de
Piete possess much capital, many of them
none; and their funds are largely raised by
the issue of bonds at about 3 per cent. inter
capitalists that in May, 1886, the Paris Mont
de Pete was obliged to refuse new share
holders; and it was found that 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 asserted 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 it's surplus,
and it was not until very recently that it
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
it is estimated that even in Paris, where all
operations are on a large scale, pledges I'M
der fourteen francs do not pay expenses of
the 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
between six months and two years; but
one year (as in Paris) is the general limit
and pledges may be sold by auction after a
subsequent three months of grace are ex-
pired. 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 theory
of valuation, at the Mont de Piete, is that
loans advanced by the institution must not
exceed four-fifths of the intrinsic value of
pledges, of jewels. plate and precious 1oe' al,
no allowance being made for artistic work
manship or two-thirds the value of oLhor
articles.