New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-12-28
THE PiU'NNUOVS or NEU- TORE

! The incoming Legislature ought 10 make rad
| ical changes IN I'll" paWnShop system of New
York The pawnbrokcrs Of the city levy an
cxorbitant tax upon the necessities Of the poor
1t is indefcnsible and outrageous that these
men should be permitted to charge excessive
rates of interest upon the pledges committed
to their care Under the present system on
loans of 500 or more they are allowed 10 exact
. per cent for each one of the first six months,
and per cent for every succeeding month.
Hence the borrower Of 500 or moro in Il paWn-
shop is compelled 10 pay - fcr cent if he re-
deems his property at the end Of Il year. This
is us,iry in an extremely Objectionable form.
But the condition of affairs is far worse for the
poverty stricken occupants Of tenement houses
who pledge articles of clothing, household fur
niture. household utensils articles of ccmpai|-
lively small value. on which they obtain
amounts petty and trivial in themselves. but of
the utmost importance to the victims OF distress
who are compelled 10 sacrifice all the comforts
of life in order 10 prolons miserable exist
encc People who resort to pawnshopS for
small loans under 500 are forced 10 pay the
frightfnlly uSllrous rate OF 3 per cent for each
one of the first six months and per cent for
each succeeding month. Hence under the iron
grasp of the pawnbrokcr they are obliged 10
give up 80 per cent for 4 small loan for the
space of wear.
The mere statement of these outrageous cXac-
tons is sufficient 10 arouse the Indignation of
every humane and sympathetic person The
pawnbrokcrS run no risks in making their
loans They put their own valuation oh ia"
articles offered ~ pledges and lend as little
as they like on each article. They suffer no
danger of loss. as they invariably Keep wide
margin of safety between the market value of
The article ON which 'hcy lend money and the
amount Of the loan Hence they ought 10 J."
cOntcntcl with modcri1" rate OF interest.
Since they thus trade upon the Suilerings
Of the poor. they ought 70 be- vigorously re-
etricicl bv law 10 reasonable profits. The
Legislature Ought 10 pass n law promptly after
It's assembling cutting down the legal rates
Of interest on pawnbrokcrs' loans 10 10 per
cent at the outside for the first wear on loans
OF 800 or more. and 10 per cent nj the out
side on loans Of less than 500. These rates
would give the pawnbrokcrs an ample return
Oh the capital invested. and would pay gen
crouSly for the expense Of carrying on their
business. in these times of widespread suffer
ing and privalOn the pawnbrokcrS couid be OF
great service to people who need temporary aid
10 carry them through the winter; ana they
ought to be compelled by the Legislature to r.
ducc their cXaciions to iolcrablc limits. The
Legislature ought long ago 10 have taken meas
urcs to regulate and reform The pawnbrokcr@.
A statute TO keep these Shylocks within mod
crate bounds would undoubtedly have passed
the Legislature ere this if the pawnbrobcrS had
not used money at Albany 10 prevent the /
passage Of such Il bill aS the public interest
demanded
The city Of Paris Is Il model to the world In
tie matter Of loans Ia the poor It's Mont de
Pi1tt is managed in Il manner that has called
out the enthusiastic approval and commcnda-
ton of every observer All is operations are |
under the careful supervision of the public au |
thorities The rate Of interest required upon |
loans is extremely lows low, In fact. that !
the borrowers never complain Of il or look !
upon il as in the least excessive. The loans |
made upon pledges approximate very closely |
In amount 10 the actual market value Of the |
articles pledged The facilities for redemption !
are ample and convenient. In every depart |
ment and in every detail the Mont dc PiGie is |
conducted in such a way as TO be Of vast benefit |
TO the poor Of Paris The amount of its profits |
is strictly regulated by law. 1t IS impossible |
under It's system that any cxacion or any in |
Justice shall be practiscd. New York sadly |
needs Mont de P6tG. The Tribune has al |
ready suggested that philanthropisis who feel |
acutcly the urgent need Of relief 10 the poor |
should promptly organize an institution rcScm-
bling that In Paris. Such an institution would |
almost certainly make Il fair return on the i'll
vcs'mcnt. and properly managed would be Of !
unlimited advantage 10 people in all parts Of
the city who need aid in this trying season.
The great Paris pawnshop is not The only
one in the world which has achieved n striking
success with moderate rate of interest and
with generous treatment of the borrowers.
Similar institutions exist in Denmark and some
other countries, and an experiment of This sort
has proved successful in Boston. The subject
Is worthy of immediate consideration on the
part Of public-spiriicd citizens, while the duty
Of The Legislature is obvious and imperative.