The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1891-01-24
How the Wonderful Mont-de-Piete System Is
Carried On Under the Management of
the French Government.

liar Institution founded in st. Petersburg
where, as is well known, the business of
lending on pledges is to-day in the hands of
number of private individuals. with whose
character and methods of business tile terri
bic novel OF Dostoiewsky. "Crime and Pun
ishment," has made US familiar. | had the
advantage OF accompanying III. LiekhatS-
chef on two of his expeditions. The first
was on his visit 10 the Rue DIES BiancS- Man
teauX, ana the second, day OR two later
was to a pawnslup in the Rue Buffault
which, situated in the midst of very busy
quarter Of Par is, offers the most character
iStics.
We arrived there at o'clock in the after
noon, and after climbing three flights of
stairs and going down long passage, found
ourselves III large room divided into two
parts by a long wooden counter. Tie part
reserved for the public was simply furnished
with low wooden bench, in the center
stood stove, and against the walls, culored
in dlstemper, were various notices referring
to sales uf pledges. The counter was dl-
vldeu INTO two departments by means of a low
rail. Each department was labeled, the one
Engagements" the other Engagements !"
that l., the one for the pawning and the
other for the redemption OF pledges. The
ONCE was very full when we entered. and
| So while waiting for more favorable OPP
| portunity for watching the proceedings. NJ.
| Richard, President of the Municipal Council
| Of Paris who was doing the houors, eX-
| planned to NJ. Liekhatscheff the working of
| lhe sales announced on the aforementioned
posters: These sales continue all the year
| round, said NJ. Richard, land are held In
rooms at the Rue des Blanc-Manteaux
establishment, specially designed for the
| purpose They are, Of course, supposed to
| be public, but rs matter VI fact, IL Is quite
useless for anybody
OUT OF TIE BRoKERING RING
| To attempt to do any business. The sales
are attended by regular gangs OF brokers,
| who combine together when any stranger
| tries to bid, and force him TO pay so dearly
| for what lie wants that he never attempts
| the eXperitnce second time. 1t Is only
| when the brokers consider a bargain not
| worth taking that an outsider can get q
| chance to do business.
These sales are one of the curious sights
| OF Paris, and 1t Is pity that you will not
| be able TO see one, Tor the types of the
habtues are characteristic in the extreme.
| Ihe doors usually open al III the morning,
| but long before that hour you can see
crowd OF seedy-looking individuals waiting
| about outside. These men make Il specially
| Of their business, which consists in getting
hold Of the best pIaces-that is, those nearest
| to the auctioneeI' deSk-and selling them to
| late corners. In cases of sales OF any i'm
| portance, such as on jewery days, good
places fetch as much as Is or 81, while even
on ordinary days at least francs can be
| earned by this business"
How long are pledges kept before being
! Sold?' asked MIR. LiekhatscheIf.
| About fourteen months-that is to say.
when no interest has been paid. Toward
| the end of the fourteenth month the pledge
| Is considered forfeited and is marked Tor
| sale. 1t usually comes under the hammer
about three months later"
But II tile interest is paid ?"
The pledge is kept for long time
there are some pledges in the stOre-rooms
at the Rue deS Blancs- Manieaux which have
peen there for years and Years. You have
heard the story OF the umbrella that was
pledged in 1864 and the interest of which
has been paid regularly every year since.
ms is quite true story, and the umbrella
Is there stlll, for when the old man who
owned IL died 1t had got so shabby and was
SO olI-lashioned that, rather than sell it, the
lnen director OF the Mont-de- Piete redeemed
1t out Of his own pocket and has kept it as a
curiosity. Nobody ever knew whv the old
gentleman never redeemed it or why he
went on paying In yearly interest six times
Tue value OF his pledge. Some eccentric,
doubtless, as there are thousands in Paris
On one occasion a visitor 10 the Mont-de-
PIetc, hearing of his story, sent a message to
the owner 10 say he would redeem the UNI
Dreiia Tor him, an offer which was most
indignantly refused"
" What Is done with the funds realized nv
the sales OF unredeemed pledges?" the
Calance. IL any, that remains over after all
expenses have been paid,
TIE AMOUNT OF THE LOAN
And the Interest thereupon having been de-
Quoted, Is handed TO the borrower. This
money IS called bOni and is PAYABLE about
six months after the sale of the pledge ana
until within about eighteen months of this
sale. Alter that it is forfeited to the estab-
nshment, very rare occurrence" "Are
these bonn ever very considerable" Every
rarely. The amount lent usually represents
the market Ialup of the article ullnlpinc for
the interest, the expenses OF the sale and
the natural deterioration that the pledge
must undergo. In many cases there is no
bonl at ALL The brokers bid too low for
that. AT tue same time, there are Occa-
slonai surprises ut these auctions as at all
others. and occasionally pledge is known
to fetch really more than it is worth"
How much is usually given?" 1.-THE
VaiuerS, as rule, estimate pledge at
about one-thlrd OF its real value-that is to
say, that Is the amount that they recon-
mend the paying clerk to advance. In
cases where the pledges are gold or
jewclry. and where there is less fear of
loss-for must tell you that sometimes.
far from leaving surplus to be paid over
in the shape of Uonl-the Mont-de-Pete loses
by the sales at auctOn-a more liberal esti-
mate is made, and perhaps about three
foufths OF the value advanced. But listen,
here Is Just case in point" As he spoke n
man stepped up to the pledging counter and
handed a gold watch to The pledging clerk.
The clerk handed him number printed on
piece OF ivory and took the watch into the
adjoining room, the door of which remained
open. he then returned 10 his seat at the
desk behind the counter. He has taken it
TO the valuer; you will hear him call out his
estimate in a minute or two"
What surprises me-" said M.>Liekhat- /
schetf, looking round, is the extreme re-
spectability OF most of the people here and
the entire sans-gene with which they trans
act their business. In London and in other
European cities sort of ignomny is sup
posed to attach to these transactions. Peo-
pie are ashamed OF being seen in the pawn
shops, and what is here quite public traffic
is there clandestine and hidden" 'Oh,
here in France" said NJ. Richard, "nnbody
is ashamed Of dealing with the pawnbroker.
Tradesmen i'll small way will come here TO
make up the amount of pressing bill; the
small manufacturer uses it as bank-it is.
indeed, the only credit establishment to
which the poor can apply. The money is
by no means always wanted for actual
necessaries Of life or to make up for waste.
Many people borrow here for the purposes
of small commercial speculatious. A. say,
the Mont-de-Piete is the poor mans bank.
Last year, Just before the exhibition, thou
sands of additional
TRANSACTIONS WERE REGISTERED.
And in almost every case the pledges were
redeemed after the close of the exhibition.
That meant that hundreds of people want |
ing money for various speculations con-
nected with the exhibition came here for
the necessary funds, succeeded and then
withdrew their pledges. paying for tue capt.
tai advanced to them very much less than
they would have done anywhere else"
What is the rate OF interest2''
"All considered, 1t amounts to about o
per cent per annum, payable at the end of
the year, and this rate will be still further
reduced as soon rs it is possible to do So"
'And the protits?"
1.-The pi otis which are nv No means varv
large, are paid over to the Director of Pub.
lie Assistance and go in charities"
just as NJ. Richard had finished speaking
we heard the voice of the appraiser cali ont
through the open door:
francs"
Sixty-three francs" repeated the paving
clerk. hooking Inward tha man wiz th9