Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-07-26
BANKING IN MEXICO.
The Pawn Shops Do the Greater Part
of the Country's Business.
VISIT TO THE MONTE DE PIEDAD.
Its Business Is Legitimate and Its Rates
Are Within Reason.
THE GROWTH OF AMERICAN TRADI
rcoRREsPoNpHNCE OF THE pIsPArcH.l

/
| CORRESPONDENTS OF THE pIsPArcH.l
CITY OF MEXICO, July 22.-The great
Mexican uncle is the most numerous of his
kind in the world. Out of the II, ,00O, 900 in
habitants of the country fully 1o,000,o0
patronize the pawn shops, and you can spout
anything from silk handkerchief to a
S100, 900 diamond. You find these pawn
shops in every village and city, and there
| are more than so here at the capital.
The biggest of these Is to certain extent
under the Government It is known as the
'tMonte de Piedad," and it has been in
operation more than 100 years It was
founded as philanthropic institution by q
Spanish Count who endowed it with q
capital of $500, 900 and this capital has since
been doubled. 1t has millions of dollars
worth of goods in its vaults and a great
many of the wealthiest families loan their
jewels to it for safe keeping. 1t has its
alike. The interests charged range from
Three to Twelve Per Cent
per annum and it loans from 81 to $40, 900 at
time on single articles. Everything under the
sun is accepted as security and the apprais-
loans two-thirds Of of the value they put
| upon it All loans must be renewed within
eight months, and if they are not the goods
are put up for sale at the appraisers valua-
| tion. They are sold at auction for as much
as they viii bring above this, and these auc-
ton sales are held once month. If the
goods fail to sell they are marked down for
the next months sale, and this marking is
continued until they find purchaser. If
the goods do not bring as much as the
amount of the loan the appraisers must
make up the deficiency out of their own
pockets
This pawnshop loans 81, 600, 900 q year and
it has about 90, 600 debtors, so that the aver
age loan is about 50. The loans average 300
day and about one-third of the articles
loaned are never redeemed. The Monte de
Piedad has branch offices In all the big
cities of Mexico, and the chief shop at the
Capital is just opposite the great cathedral
and within stones throw of the National
Palace.
A Visit to the Great Shop.
have visited it a number of times during
the past two weeks and attended one of its
auctions this morning. 1t looks more like
q great junk shop or auction room than like
the big banking institution 1t is Furniture
of all kinds from pianos to cheap chromos,
bicycles and mirrors, saddles and harness,
shawls and clothing were mixed up in
heterogeneous mass, and men and women
were examining them and looking at the
tickets which contained the prices fixed by
the appraisers attached to them. As one
found what he wanted he would point it out
to the auctioneers and they would put it up
and show it to the rest. II any higher bid
was gotten the auction went on until 1t was
sold, but as a rule it was knocked down to
the first applicant.
In another part of the room were great
store cases containing hundreds of gold
watches, thousands of dollars worth of dia-
monds and pearls, and articles of jewelry
set with precious stones of every descrip-
tion. The appraisers valuation was at
tached to each of these articles, and they
were auotioned off to the highest bidders. +
noted that the clerks of the establishment
always told whether the stones were true or
false. The sales were fair, and in most
cases the goods were very cheap. For
long time this pawn shop gave all Its profits
to the Church, then for a time they went to
the Government and now the institution is
run, to certain extent, by a private cor
poration-
The Other Shops Charge Higher.
In addition to the Monte De iPiedad you
find private pawn shops all over Mexico At
these loans are much more costly and 8 and
10 per cent a month is not uncommon. They
take any kind of property as security and
they are in reality often fences, or receivers
of stolen goods. In no country in the world
will you find more petty thieving than in
Mexico, and these pawn shops are largely
the cause of it. The Mexican peon is natur-
ally a sneak thief He is not robber and
while he would have no compunctions about
stealing towel or handkerchief or a suit
of Clothes he would not touch q package of
$1,000 if he saw it lying in your room at the
hotel
The penalties for stealing are exceedingly
heavy in Mexico, and the majority of thefts
are Of things that would not pay the ex-
pense of conviction. The Mexicans are ex-
pert pickpockets, and have met a half |
dozen Americans who have lost their |
watches in Mexican crowds. A fayorite |
place for stealing is in the churches, and at |
one of the big feasts which occur so often in |
different parts of the country one needs to |
watch very carefully after his pocketbook
and his watch.
Some of the Precautions.
In sleeping on the ground floor it is al
ways necessary to guard the windows or you
may find your bed clothing and your panta-
looms gone In the morning. In stops at the
station for dinner the windows Of the rail
road cars are always put down and the doors
looked, and in carrying small valise it is
of mine who had just loaned his revolver for
S12 at one of these pawn shops showed me
tickets this morning. For the use of the
money he pays cents on the dollar for the
first month, 13 cents on the dollar for the
second month, 18 per cent for the third
month, and after that % per cent month.
Of course he expects to redeem the gun be-
fore the end of the first month, but he is a
natural spendthrift, and it is easy to see
who will own that revolver.
Nevertheless these pawnshops form the
only banking establishments of the greater
part of Mexico In the smaller towns there
are no banking institutions whatever and
Mexico City, with its 900 people, its
immense business and trade, and its num-
Ders of wealthy people has less than half
iozen legitimate banking institutions 1t
seems to me that there is big thing to be
made out of banking in Mexico, and the
wonder is that good American bank has
lot been established here.
Lots of Money in Banking.
Savings banks ought to pay in every city
,f this country, but, go far, I have heard of
,nly one, and that at the little city of
Ialapa, which lies in the mountains between |
lere and Vera Cruz. The American popu-
elton of the capital is almost large enough ,
% warrant good American bank, and New
[ ork is the monetary center of Mexico to- ]
lay. Nine-tenths of all the exchanges go ,
through New York, and drafts on London ,
re sent to New York for collection. The !
anne is largely true as to drafts on Paris,
md to certain extent so of Spanish drafts,
hough the steamship line which runs be- !
ween Spain and Mexico decreases the
oh 9, r 4l,l |