Evening star. [volume] (Washington, D.C.) 1854-1972, 1891-07-25
THE MEXICAN UNCLE.
How Pawnbroking and Banking Are
Done South of the Rio Grande,
FIFTY THOUSAND PATRONS
10 National Pawnbroking establishments
Hts Auctions and Something as to Its Meth
DDS OF Loaning-Private Pawn shops and
How They Eat Up Their Debtors.
Special Correspondence Of The Evening Star.

iOSs huherouS OF MS KIM IN the WCriQ
Out OF the II, 100000 inhabitants OF the coun-
Try fully II, 0o0, 900 patronize the pawn shops
and yse can spout anything from u silk hand
kerchief to 100000 diamond. You find
these pawn shops in every village and city and
there are more than sixty hero at the capital.
The biggest Of these is to a certain extent un-
der the government 1t is known as the Monte
de Piedad and 1t has been in operation more
than $50 years. 1t was founded as o
phiianthropic institution by Spanish
count, who endowed it with capital of $780, 900,
and this capital has since then been doubled.
1t has millions Of dollars worth OF goods in its
vaults and great many of the wcalthiest fam
lies loan their jewels to it for safekeeping. 1t
has its fixed rules and all depoaitors are treated
alke The interest charged ranges from s
70 IL per cent per annum, and it loans from
u TO SlO,O0O at q time on u single article.
Everything under the sun is accepted as Sc
curisy, and the appraisers estimate its worth
ana the pawn shop loans two-thirds Of the
value they put upon it. All loans must be
renewed within eight months, and il they are
not the goods are put up for sale at the ap-
praisers valuation. They are sold at auction
for as much as they will bring above this. and
these auction sales are held once a month. II
the goods fail to sell they are marked down for
the next months sale, and this marking IL con-
goods do not bring as much as the amount Of
the loan the appraisers must make up the def
cheney out OF their own pockets This pawn shop
loans u 100000 year aud it has about so 900
debtors, 80 that the average loan is about e.
The loans average 800 q day and about one
tnlrd OF the articles loaned are never redeemed.
The Monte de Peidad 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 pal
ace L have visited it number of times
during the past two weeks and / attended
one of its auctions this morning II looks more
IKE great junk shop or auction room
tIan Ike the big banking institution it is. Fur
nlture OF all kinds from pianos to cheap
chrorios. 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 ap-
praisers attached to them. As one found what
he wanted he would point it out to the auc-
noneers and they would put it up and show it
to the rest. IL any higher bid was gotten the
auction went On until it was sold. but as rule
1t 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
diamonds and pearls and articles Of iewelry set
With precious stones of every description. The
appraisers valuation was attached to each of
these articles. and they were auctioned of to
the highest bidders j noted that the clerks of
the establishment always told whether the
stones were true or false. The sales were fair
and i'll most cases the goods were very cheap
For long time this pawn shop gavo all Its
profits to the church. Then for a time they
went to the government and now tho institu-
non - run to certain extent by private cor
poration.
PRIVATE PAWN SHOPS.
In addition to the Monte de Piedad you find
III
the loans are much more costly and and 10
per cent a month is not uncommon. They take
any kind OF property rs security, and they are
in reality often fences or receivers of stolen
goods In no country in the world will you
md more petty thieving than in Mexico. and
these pawn shops are largely the cause Of it,
The Mexican peon Is naturally a sneak thief He
is not q robber. and while he would nave no
computations about stealing towel or hand
kerchief or q suit OF clothes he would not
touch package of n thousand dollars il he
saw 1t 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 no. pay the expense OF conviction.
The Mexicans are expert pickpockets, and
have met u half dozen Americans who have
lost their watches in Mexican crowds. A favor
ite place f0E stealing is in the churches
and at one Of the big feasts which occur
so often in different parts Of the coun-
fully after his pocket book and his watch. In
sleeping on the ground floor il is always neces-
sary to guard the windows or YOU NAV find
your bed clothing and your pantaloons gone in
the morning. In stops at the stations for din
ner the windows Of the railroad cars are always
put down and the doors locked, and in CARRYING
Al small valise it is best to keep it under your
feet. 4 friend of mine who has lust loaned his
revolver for S12 at one Of these pawn
shops showed me his tickets this morning. For
Of 1n q Al
dollar for the first month. IL cents on the dol
lar for the second month. Is per cent for the
third M N and after that rs per cent u month
or coul he expects to redeem the gun be-
fore the end OF the first month. but he il a
natural spendthrift and it is easy to see who
will own that revolver.
THE ONLY BANKING ESTABLISHMENTS
Nevertheless these pawn shops 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 3OO,o 600 people. its immense bust
ness and trade and its numbers OF wealthy peo-
pie, has less than q half dozen legitimate bank
ing institutions. 1t seems to me that there il
big thing to be made out Of banking in Mexico.
and The wonder is tina. O good American
bank has not been established here. Savings
banks ought to pay in every city of this eoun-
try, but SO far l have heard Of only one,
and that at the little city OF Jalapa, which lies
i'll the mountains between here and Vera Cruz.
The American population OF the capital Is almost
large enough to warrant o good American
bank, and New York is the monetary center of
Mexico today. Nine-tenths Of all the EXCHANGED
20 through New York and drafts on London
are sent to New York for collection. The same
Is largely true rs to drafts on Paris and. To a
certain extent. 80 Of Spanish drafts, though the
steamship line which runs between Spain and
Mexico decreases the Spanish business
AZ far as can learn the banks Of
Mexico City are making great deal
of money. The Bank Of Mexico and
London. so one Of its chief directors tells me
made 20 per cent last year and the stock Of this
bank which as at present constituted was or.
ganized only few years ago. has more than
doubled in value. 1t does a business OF about
Sis, 900, 900 o year on capital Of million and
a half and 1t has q large reserve fund. The
president OF this bank is q Scotchman who
came TO Mexico poor and who is now said to be
worth number of millions His name 10 Don
Thomas Braniff and be is president OF the rail-
road that runs from Vera Cruz to the capital
and is large cotton factor and extensive real
estate owner.
THE NATIONAL BANK OF MEXICO.
Another Of the big banks Of Mexico City 10
the Banco Nacional or the National Bank Of
Mexico. This. like the Bank Of London and
Mexico, has the right to issue bank notes and
its notes are good everywhere when they are
issued in Mexico City and not by its branches
over the country. All notes Of other banks are
discounted when ont of tho territory where
they are issued and the notes Of the Bank
OF London and the National Bank is