St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-05-16
THE CHAMBER ON PAWN
BROkING,

One comes, from the reading of the
report Of the committee of the chamber
OF commerce on the rapacity of the
pawnbrOkers and its suggestion of reme-
dies, with sharper sense of the futllity
OF paternal legislation In all that large
class of cases where selfish and per.
sonal interests are not the motive power
both in the procurement and enforce
ment of the law.
Under stringent usury law. forfeit
ing the entire debt If violated by taking,
directly or indirectly. higher rate Of
interest than that prescribed, we have
pawnbrOkers eXacting ten to twelve
times the legal rate with comparative
impunity. We have the evil attracting
the attention not only of charitable
bodies over the country, but that of
bodies Of business men. and here and
there sympathy taking practical shape
in the form of companies making these
collateral loans at reasonable rates.
When bill WAS pending in one of
the recent sessions of the legislature,
meeting the opposition of some of the
lawyer members RETAINED" by the
pawnbrokers, we heard much of the
great risks of loss run by these gentry,
and the necessity following Of their
getting greater than the legal or COM
nercial rate of interest. If there were
ever one of them who let his money 90
out without a deposit Of security Afford
ing margin OF security several times
the amount Of his loan, thus removing
all possible risk of loss. he would be
unanimously set down Ivy his fellows as
unworthy of membership in their guild
Ii the usury law has had any effect
Whatever on the rates these collateral
loan brokers'" as they term them
selves. ask the unfOrtunates forced to
he their patrons, it was only to increase
them because it added to the loan the
possibility of its loss by successful
defense OF usury. having here, as in the
more legitimate channels of trade, the
same result OF making it harder for tie
very class whom it was designed to pro-
tect. But the lender OH these small
personal collaterals is sheltered by the
poverty of the borrower, sufficiently
evidenced by his being borrower at
such place, which prevents the EN-.
ployment of counsel in the suit, even
should the amount involved warrant
action.
The remedies suggested in the report
and applied elsewhere are the only ones
which will be effective. Business must
unite with philanthropy. and establish.
on sound business foundations, but
exempt from the avarice of the pro.
fessional pawnbroker. Offices where
small loans may be made on deposits of
coilaterals. Private enterprise mast
join with personal humanity to relieve
that needy class who are the patrons of
the pawnshOp. We can't follow France
OF any other country where paternalism
still has a strong hold in the minds of
the people, and where such conduct of
private business by the government is
facilitated by tn implicit confidence OF
the people in the wisdom OF paternal
governments, and where oificialiSm is an
embodied sense of duty instead of a
lively appreciation of opportunities to
make. 1t must be left to the combined
charity and business of individuals. We
commend the report of this committee
to the charitable as calling for their
serious attention and active cooperation.