The Providence news. (Providence [R.I.]) 1891-1906, 1894-08-10
CHEAP LOANS.
An Interesting Statement Made by
Secratary Walton Of Cleveland, 0.

| since was directed to movement for the
| issuance OF loans at reasonable rates to
| this poor. The system of the Citizens Re-
| lief Loan Company OF Cleveland, o., was
| cited, and with view to obtaining an in
| telligent idea OF the operation OF the sys-
| tenn communication has been had with
| Secretary Walton as the result OF which
an article has been submitted by that
gentleman. 1t Is an interesting and com
prehensive statement and Is worthy OF
careful perusal:
"The poor we have with us always aud
whenever we will we may do them good.
The rich can generally be relied upon TO
take care of themselves. All governments
| indeed the whole social fabric, relies
upon the 'bourgeoisie,' the substantial
middle-class, that element OF society which
| furnishes at once the foundation and the
balance wheel OF the whole machine.
| When, therefore, state OF affairs arises,
which demoralizes this most substantial
class OF community, IL regards the safety
as well as the interest OF both high and
low to enquire into the cause and to
apply the remedy. Multitudes OF
thrifty men and women who are ordin-
arily among the possessors of homes, or at
least savings bank deposit books during
straitened for even the means of liveli-
hood. house and lot partly paid for is
not a source OF bread, but the reverse.
To preserve hard earned savings of
past years it is some times necessary
to raise definite sums of money in
in day when thousaods of others are
clamoring for the Same and 1t is not
strange that unwonted borrowers fpd
themselves thus at their wits end. Here
comes In the professional money lender,
or shark as he is not inaptly called.
His conscience is buried beneath noun
tain of indifference or cal
loused by experience with suffer-
ers. He does not ordinarily have
the money to lend himself, but knows q
man who can be prevailed upon to help,
only he will charge rather high for it,
We have-I was about to soy men-beings
here in this city who make their living
by lending to the self-respecting poor,
widows and others, and who do not scruple
to exact enormous interest. For example
sewing woman, widow with two chill
dren, is compelled through the illness of
one of them to mortgage her sewing ma
chine, worth, perhaps, 900, for loan
of go Five dollars is the fee
| charged outright for negotiating
the loan and S2 a month, or one
hundred and forty per cent. year for its
| continuance. At the end of the year, il
payments had been made as agreed, the
entire sum would have been repaid to-
gether with interest at an average yearly
rate of about sixty per cent. to say nothing
of tho original bonus Then the principal
| il still intact, and it is only q question of
| time when the mortgage would have to be
| foreclosed, and though the sum was fully
| paid, the machine sold and thus the means
| Of the woman's livelihood taken away.
Sometimes, in desperation, the victims
of such outrages have applied to the
Bethel Associated Charities for advice. IL,
upon investigation, it was found that
such cases were worthy, it has been GUS
tomary for our attorney to make legal
tender of the amount really due under
the statute, which cuts of more than six
per cent. simple interest, under pain Of
forfeiture. This course invariably resulted
In settlement outside of the courts, but
the county records would be closed by the
entry settled by legal tender, and the
ability of that person to borrow again of
any of the fraternity was forever cut off.
$50 many heart-rcnding cases were con-
tinually coming to light, that spontane-
Gus movement resulted, some weeks since,
in the preliminary steps being taken to
form society which should loan money
on chattels, either in possession or other
wise, to the worthy and selt-respecting,
upon fair rates and under proper safe
guards.
"1 his movement commended itself to
the business community, and upon State
charter and organization something over
| ten thousand dollars have already been
raised as q starter for the fifty thousand
| with which IL is thought desirable to
| equip this infant society. The directors
are looking about for the right man to be
It's executive officer, matter OF vital
| Importance. There is no doubt that the
capital Will be raised when the community
( are assured Of the integrity, experience
and Judgment OF the company's actuary.
There will be no special charity about its
| operations. Indeed, IL Is to be divorced.
| as far a. possible, from any idea OF char
| ity. People who have securities other
| than bonds or bank notes should be able
| to borrow small sums on other articles
I with no more toss of respect than the
broker or merchant feels when negotiat-
| ing his larger loan.
''The profits accruing to the stockhold-
| ers In this loan association are by its laws
| limited to six per cent. year. 1t Is de-
signed to place the interest charged to
borrowers high enough TO cover contin-
gencies of possible loss and yet to keep II
as low as is consistent with the dividend
above mentioned.
"Boston parties have generously aided
our people with the results OF their exper-
ience of near decade in this same line,
and Monsieur Duval, director of the Mont
de Piete of Paris, has furnished docu-
mcnts covering more than a hundred
years of the history of that remarkable
institution.
at Is impossible in putting on the har-
ness TO boast of results, and In conclusion
IL is necessary only to say that each city
should Judge for itself whether there Ia
need for a work OF the kind outlined
above, and II answered affirmatively, its
most substantial citizens cannot
address themselves to more
practical experiment than thus to aid the
bono and sinew OF the community to help
A.