The Durham daily globe. (Durham, N.C.) 1889-1894, 1894-04-10


business success. 1t was clear from
the outset that many difficulties would
be encountered. 1t was set on foot at
time of unprecedented business stag
nation, time when more wage-earn-
ers were out of employment, and had
been so for many months. than at any
time in the history of the metropolis.
1t would be necessary, therefore, 10
proceed carefully and feel our way.
Written applications came in from the
towns of Connecticut, New jersey,
Long Island, and from the OUTLYING
counties in this state, a great many
from Brooklyn, and we were obliged
at once to confne the operations of the
bureau to New York county, on &C
count of the difficulties of filing papers
and searching records in widely sep
arated localities.
We fixed the maximum amount of
loan at fifty dollars, with the double
purpose Of making all loans as safe as
possible and of giving the relief
sought to as many applicants as our
resources would permit. It was not
expected that one bureau of the kind
would be able to meet the demands
that would be made upon it, but we be
ieved that its successful operation
would lead to the opening of similar
offices in other districts of the city and
also in other parts of the country. The
actual success of this experiment can
only be demonstrated by the repay
ment of the loans that are made. The
money goes out freely enough and our
resources enable us to make thus far
only about one loan where there are
ten applications The bureau is kept
open from ten to five o'clock each day,
Sundays and holidays excepted, and
applications are received and recorded
in an indexed register. Applicants are
told that the bureau is only lending
about five hundred dollars a week at
present, and that it may be some time
before their names are reached; but this
does not seem to discomfort them. and
a large majority Of those who hav.c
applied for loans thus far are peO-
pie Of sterling character who are tenn
pOrarily embarrassed and who have
very natural objections, even in the
worst extremity, against subjecting
themselves to the eXtOrtions of the
regular money brokers and pawnshops
The rates of usury inflicted upon the
poor as shown by letters that have
come to the bureau are almost beyond
belief, amounting in many cases to al
most two hundred per cent. It does
not surprise us, therefore, that all
classes Of people apply for loans to
escape these sharks, in their hour of
need. We do not pretend, however,
to do no nj - vii
when a gentleman applied for loan
Of fifty dollars, on the ground that he
preferred to get it from US and pay six
per cent. interest rather than draw his
deposits from the bank, he was prompt
ly refused
Our method of procedure is as fol-
lows:
The applications are attended to as
nearly as possible, other things being
equal, in the order of their reception,
but preference is given to wage-earners
with families of small children, and in
many cases We have taken immediate
action to prevent the eviction of fami-
lies from their homes, and to save pur-
chasers of household effects on the in
stallment plan from the loss of their
property. Appraisers visit the homes
Of applicants and appraise the value Of
the property they wish to offer as Sc
curity. References are required from
each applicant, and before anything
further is done these references are
seen and their testimony taken in re-
gard to the character of the applicant
who has used their names. AS an addi-
tional safeguard a search is made
at the registers office in every
case, to make sure that there
is no incumbrance already on the
property offered as security. When
all these points are satisfactorily
settled. notices are sent and the loans
made, each borrower paying fee suf-
fcient to cover the actual expense of
filing and preparing papers, making
search and the fee of notary. The
originals of all chattel mortgages are
kept and copies are filed with the
register. Our blank form of applica-
tions contains the name in full, the
amount of loan, the security, present
residence, previous residence, kind and
location of business.
It is my candid belief that we are
entering upon an era which will see a
0ec1OeQ CndQRo III Cno treatment Oh
the poor. and the substitution of cred
it in place of charity. A little timely
credit, wisely bestowed, helps to make
men independent, and it is well known
that most men who have got on in the
world have done SO through having
this advantage at the critical turn in
their lives. Most of the great COM
mercial houses and financial institu-
tions would be driven to the wall at
times if they were not able to secure
credit sufficient to tide them over.
Something must be done by the legis-
latures and perhaps by congress itself,
to prevent the poor from be-
ing preyed upon by the usurers,
as they are at present. We in
vestigated the case of a woman
who borrowed fifty dollars from loan
broker and was obliged to give him a
note for sixty-seven dollars and fifty
cents payable in four months, and this
is lower than the rates frequently