The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-07-26
THE MEXICAN UNCLE.
How Pawnbroking Is Done
South of the Rio Grande.
GOOD FIELD FOR SAVINGS BANKS
Government Loan Offices That Would
Suit the Farmers AIliance-Ameri-
can Trade and How Monopolized.

can Trade and How Monopolized.
MEXICO Cry, July 20.-TSpecial Core
spondence. The great Mexican uncle is
the most numerous of his kind in the
world. Out of the 100000 inhab-
ltants of the country fully 10000. 600
patronlZe the pawnshops, and you can
spout anything from silk handkerchief
10 100000 diamond. You find these
pawnshops in every village and city, and
there are more than sixty here at the cap
ltai. The biggest of these is to a certain
extent under the government. 1t is known
as the Monte de Piedad, and it has
been III operation more than $50
years. 1t was founded as a philanth ropic
institution by Spanish count who en-
lowed it with a capital of 100000, and
TINS capital has since been doubled. 1t
has millions of dollars worth of goods in
Its vaults, and great many of the wealth.
lest families loan their jewels to it for safe
keeping. 1t has its fixed rules, and all de-
positors are treated alike. The in
terests charged ranges from 3
to II per cent. per annum
and it loans from 81 to $4,000 at time on
single articles. Everything under the sun
Is accepted as security, and the appraisers
estimate its worth and the pawnshop
loans two-thlrds of the value they put
upon it. ALI loans must be renewed within
eight months, and if they are not the
goods are put up for sale at the appraisers
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 is continued until they find pur-
chaser If the goods do not bring as much
as the amount of the loan the appraisers
must make up the amount of the de-
ticiency out of their own pockets. This
pawnshop loans 100000 a year, and it
the average loan is about 81. The
loans average 800 day, and
about one-third of the articles
de Piedad has branch offices in ali 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. | have visited it number of
times during the past two weeks, and | at
tended one of its auctions this morning.
1t looks more like a great junk shop or
auction room than like the big banking
institution it is. Furniture of all kinds,
from pianos to cheap chromos. bicycles
and mirrors, saddles and harness, shawls
and clothing were mixed mp in hetro-
genous 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. If any higher bid was
gotten the auction went on until it was sold,
but as 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 diamonds and pearls, and articles
OF jewelry set with precious stones of every
description. The appraisers valuation
was attached TO each of these articles, and
they were auctioned off to the highest bid
ders. noted that the clerks of the estab-
lishment 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 pawnshop gave all its
profits to the church. Then for time
they went 10 the government, and now
the institution is run to a certain extent
by private corporation.
In addition to the Monte de Piedad you
find private pawnshops all over Mexico.
AT these the loans are much more costly,
and and 10 per cent. a month is not I'M
common. They take any kind of prop
erty 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 thieying than in Mexico. and
these pawnshops are largely the cause of
1t. The Mexican peon is naturallya sneak
thief, lie Is not robber, and while he would
have no compunctions about stealing a
towel or handkerchief or q suit of
clothes he would not touch a package of
$1,000 If he saw IL lying in your room at
the hotel. The penalties for stealing are
exceedingly heavy IN Mexico, and the ma
jority of thefts are of things that would
not pay the expense OF conviction. The
Mexlcans are expert pickpockets, and |
have met q hali-dozen Americans who
have lost their watches in Mexican
crowds. 4 tavorite place for stealing is
in the churches and at one of the big
feaSts which occur SO often in diff
ferent parts of the country. One needs
10 watch very carefully after his pocket
book and his watch. In sleeping on the
ground floor il is always necessary to
guard the windows or you NAV lind your
bed clothing and your pantaloons gone in
the morning. In stops at the stations for
dinner the windows of the railroad cars
are always put down and the doors locked,
and in carrying a small valise il is best TO
keep it under your feet. A friend of mine
who has Just loaned his revolver for SIP
at one of these pawnshops showed me his
tickets this morning For the use of the
money he pays cents on the dollar for
the first month, Is cents on the dollar for
the second month. Is per cent for the
third month, and after that - per cent
month. OF course he expects to redeem
the gun before 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 what
ever, and Mexico City. with its 800, 900 peo-
pie, its immense business and trade and
its numbers of wealthy people has less
than half dozen legitimate banking IN
situations. 1t seems TO me that there is a
big thing to he made out of banking in
Mexico and the wonder is that a good
American bank has not been established
here. Savings banks ought TO pay in
every city of this country. but so far |
have heard of only one and that at the
little city of Jalapa, which lies in the
mountains between here and Vera Cruz.
The American population of the capital is
almost large enough 10 warrant a good
American bank, and New York is the
M Of Mavscn fnAo1-