The Sunday herald and weekly national intelligencer., 1891-12-13
A 10 PER CENTER TALKS.
HE SAYS THE WORLD HAS REPRO
BATED HIM UNJUsTLY.
A Defense of the Business-The 10 Per
Center is Usually the Robbed and
Not the Robber-Lending Money to
People Financially irresponsible.

feOple F1nanCtalIY IrreBpOnsible'
Eyes" said man to a SUNDAY HERALD
reporter day or so ago, ~ am what is pop
ularly known as ten per CENTER and IL you
would believe the majority of my customers,
am nothing more or less than a highway
robber. Yet, have never either In or out Of
my business robbed soul of penny. In
deed, II you should look over my books you
would quickly satisfy yourself that whatever
robbing has been In that business was done
by those who cry the loudest against me. Of
course, l charge big commission on the
money loan, commission running from 60
to 100 per cent year, but commission less
than that would make my business an impos-
sble thing"
elbow is that?" he WAS asked.
''In this way" he replied. "The people
who compose my customers are as a general
thing, people without financial standing do
not merely mean that they are without means;
l mean that they are people who possess
nothing out of which could make good the
amount loaned them. Knowing that, tney
fully understand that would have no way
of preventing the loss OF my money should
they for any reason see fit to refuse to pay
their notes when due. And you would be
surprised to learn how very many do so refuse
to pay. Therefore, there is no other recourse
left me TO protect myself but to charge such
commission on the money loan as will cover
as far as possible the danger of the loan being
lost, II not in whole at least in part From
the profits received on those loans which are
duly paid / obtain the capital necessary to
successfully Withstand my losses
''But, you ask, do not many customers In
time pay In interest the principal over and
over again. l unhesitatingly answer yes
Yet, even that is an almost necessary element
In my business to effect security against loss
So, were 1t not for the so-called shark inter
est and the often-paid principal in that
interest, my business could not be success
fully carried on. Let me illustrate my
meaning. Here comes man I know
nothing Of, not even his name. lie
informs me he has urgent need for certain
sum Of money-say $50. He further states
that he is employed in certain Department
of the Government, and that he desires the
money for only thirty days. Satisfying my
self that he Is an employe Of Uncle Sam, l
loan him the amount. At the end OF the
thirty days the chances are ten to one that he
will come to me and, stating that he must
the interest for the additional time. II say
l cannot grant him further time, he at once
checkma tes me by informing me that he has
not the amount and has no way of getting it.
The money being secured by his note only,
there is nothing left for me to do but to accept
the proffered interest and a new note In
that way so much money is tied up for at least
another thirty days, and almost with the GER
tainty that at the expiration Of that period
nothing will be rendered me but the interest
la
ing that am charging 10 per cent. per month
ten months must elapse before / can get back
my principal, and If only 8 per cent. per
month l must wait just twice as long. The
amount OF capital necessary therefore, forms
quite an item In the business. And at the
end of the time mentioned nothing is so likely
to happen as the refusal or the inability OF the
fellow to pay the note then due. That is one
instance In which at least get back In inter-
est the amount originally loaned, but, as
stated moment ago, many are the instances
In which get back nothing. Hence, you will
observe that my business is neither one of
assured gain nor highway robbery on my part.
"Now, In relation to the latter phase of tho
question, desire to state that in no case do
solicit the business of any one. / therefore
cannot possibly appear as one going about
seeking the blood of my fellow man. NY
business is perfectly well known to those who
come to me, as well as the rates which l will
surely charge for my money, l am under no
obligation whatever to loan them my money,
and hence II they desire 1t have a perfect
right to charge them what / see fit for 1t.
There are undoubtedly cases where my
charges act as a hardship against the party
borrowing OF me, but In the great majority of
cases the party seeking the loan is one to
whom the money is not a necessity and, If the
truth were known, 1t would be infinitely better
to do without it altogether. So, while my
business may not be one which commands the
admiration of the world generally, neVerthe-
less 1t is by no means as black as 1t is painted
and surely is entitled to something more than
the contempt to which 1t is invariably sub
jected."