Evening star. [volume] (Washington, D.C.) 1854-1972, 1889-08-31
HOW THEY BEAT THE sHYLOCKs,
The Clerks I'm the Agricultural Depart
ment Borrow at Reasonable Rates.

The Clerks in the Agricultural Depart
ment Borrow at Reasonable Rates.
HOW DEPARTMENT UsURERs ADD TO THEIR IN
CoMEs-RELENTLEssLY PURSUING THE uNFoR-
| TUNATE-LoANs AT ExoRBIrANr RArEs-THE
AGRICULTURAL DEPARTMENT ASSOCIATION
"This was a way to thrive
And thrift is blessing, IL men steal IL not"
When Shakespeare's grasping character,
Shylock, uttered the foregoing words he placed
in the mouths of thousands who followed him in
ms Calling as an usurer an argument that
allowed them to turn the perplexities and suf-
ferings OF their fellow beings into opportuni-
ties for personal enrichment. Even the name
has descended to the present day in conjunc-
ton with the character which was present in
the original-he who preferred a pound of
flesh to ten times the amount of money due
him. Other cities have Shylocks, but they are
more numerous here in a small way because
the opportunities are more numerous and
more alluring than elsewhere Your modern
usurer follows the department clerk as per-
sistently as a hungry shark cuts the water in the
wake of a sailing vessel
For many years past the most important per-
sons In the government departments have been
those who had money which they would lend
TO those who had none whenever the penniless
could bring themselves to imagine that a small
loan for brief period was not too expensive
luxury In which to indulge. As soon as the
practice OF lending money at high rates of in
terest became established by custom a great
many persons embarked in the business. In
the great majority of instances they were them
serves employees OF the department in which
W fhllE ftnl6 1H.
supposed that the banker was always the most
exalted parsonage i'll the little official commu-
NIFTY OF which be was part Often he was only
laborer IN receipt OF princely stipend of 81
day, and quite as frequently he was a mes
senger with but a slightly increased payroll
remuneration. sometimes, to be paradoxical.
he was woman. These people were born
wreckers; they had no souls and they could
smile benlgnly while victim was paving to
them the last cent in his or her possession.
IN THE AGRICULTURAL DEPARTMENT.
In general way Shylock still fourishes and
wakes fat at the Interchangeable rate of 10 per
cent per month"; with no loans for a lesser
period, but he is almost an unknown quantity
IN the Agricultural department today. But
little while aSo-less than two years-he was a
power almost to the degree of omnipotence.
He was receiving from the department small
monthly sum IN return for services rendered
BY prudence and economy he had saved alto
gether about $500, and with this little capital he
was adding to his store at the rate of SO
month. lie was bigger man than the COM
missioner. but he was too grasping and is
wholly responsible for his own downfall He
had one clerk in his clutches to a considerable
extent and the grip was at length so tight that
the victim cried aloud to his friends to save
him from his merciless oppressor. Assistant
Statistician B. W. Snow heard him and when
the matter had been briefly discussed few of
the more prominent employees were called to-
gether to confer on and to debate PROPOSE
ton submitted by Mr.. Snow.
FOB MUTUAL PROTECTION.
1t was very easily seen and understood that
few clerks had little surplus income after their
liabilities were all discharged and everybody
knew that there were many clerks who were
financially behind and who, burdened by ex-
orbitant rates of interest, never could catch
up. There must be a remedy somewhere; a
compensatory something which would enable
those with surplus to aid their less fortunate
fellows without saddllng themselves with
doubts fear or probable losses. The meeting
resulted In the organization of the Mutual
Savings and Loan Association. Stock was pur-
chasable at the rate of ~. 80 per month per
share, and the total issue was limited to twenty
shares, OF which no one person could hold
more than two shares. 1t was soon discovered
that the issue was insufficient. at another
meeting it was doubled and very speedily
first meeting there were $500 in the Golfers of
the association, and with this ii was decided to
commence business. Payment ON the shares
was stopped and employees of the depart ent
were notified that the association was
READY TO MAKE SMALL LOANS
at the rate of 10 per cent per annum. Welcome
news was that to many struggling one, but it
almost froze the vitals of the man who, on CAPT.
tai of 1000, was earning at least $40 a year in
addition to his salary. Deep in his soul he de-
nounced the new scheme a trust, and when
he found IT was on solid basis he endeavored
to have 1t for his very own. He went at once
to the treasurer of the association and tempted
him by offering to borrow the entire 800 at an
interest of 20 per cent. His offer was rejected
and then he wanted the association to borrow
his $500 and to paw him 10 per cent for it. This
was big drop-from 100 per cent down to 10
but he was willing to be accommodating. Both
offers were rejected with scorn.
CUSTOMERS COMING IN.
For while some of the impecunious clerks
hung back; they did not want to expose their
weakness to the board of directors. through
whom only could loans be procured; but as the
difference In the amount Of interest to be paid
was too great to admit of argument they soon
made their selection and application. From
the fund money can be borrowed on different
propositions by different individuals Menu
bers of the associa lion may borrow to the value
Of three-fourths of their stock, and the inter-
est charged is only per cent; when they get
beyond that proportion of their stock value
they pay the higher rate of interest on the
extra loan. promissory note and an
order on the disbursing officer is good
generally for an amount not exceeding $50
On an ordinary note with good Endorsement
''gilt-edged paper" the worldly call it-almost
any amount in the treasury can be had. but as
rule the salary of the applicant has much to
do with the size OF the loan. Very rarely, in
deed islt necessary to present the security order
to the disbursing officer, but the practice of de-
manding 1t from the borrower is continued.
because 1t nails down all chances of a skin
game being played upon the association. Twice
did the association run the risk of losing S5-
the borrowers having been discharged-but the
| treasurer was up and doing. and while the
stockholders (many of whom are ladies) held
their breath at the possibility of such an
overwhelming financial disaster he sue
ceeded by his eloquence in securing
repayment Of the money. The association.
therefore, has never lost a cent, and what is
more extraordinary, it never paid q cent for ex-
penses. Even its books were donated. When
the balance was struck on the first years busi-
ness it was discovered that per cent more than
the schedule had been made. This was due TO
the fact that no loans are made for less than
thirty days, while it IL not uncommon thing
for borrower TO return the principal and pay
the interest in half that time; then the money
goes out again. The showing is made the more