New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-03-11
A BOON FOR THE POOR.
AIMS OF THE PROMOTERS OF THE PRoVl-
DENT LOAN ASSOCIATION.

or all the plans which have been devised 10
meet the wants Of those who are victims oi ''e
present unexampled period Of Distress anu ol '"o'e
who are pinchel for temporary loans 81 s"dlI sumo
in ordinary times all the year perhaps t"e o's,
one il that which IS embodied in the bill ih,ro'u.eu
NV Assembyman Sheffield which has passed the AS
sembly in behalf Of the Provident Loan oooieS "
New-York. The approval Of the Senate "Hio" ~
is no reason 20 suppose will be withheu' anu ''e
signature Of the Governor are Only 'neeueh "
have this salutary and greatly needed III" p.'oo'
on the statute book The miserable excuse o"e.eu
b,, q few Assembymen who opposed the pill' mat
il might be operated as vehicle Tor 'ne "", .
ment Of private interests-in other "orus' ' "
was primarily meant "a a moneN-hnhN'"S
lust as the business Of any ordinary pawnproKer IS
could not have been made seriously. lor t'' ".
70 &c incorporat tors are known not only III VIEW
York but throughout the length ana pre'''n VI
the land as among the most unsenls" an. P""n
spirited OF citizens. Take few OF mem
Vanderbilt Seth Low. Frederic i. Oouuet. 1o"'
u Crimmins William H. Dodge. Charles = r"il
chrd I pierpont Morgan. Adrian lsclin. Abram >.
t1o,,,t, Oswald Ottendorfcr Charles f. smith ana
Gustav II. Schwab. -, .
ar the 100 pawnprokers in this city. the great
majority Of whom have grown rlcn ~ INC ~
of the poor who are compelled by law 10 pay Il"
tercst at the rate of 80 per cent on any sums '"'
,,o, ba advanced 10 them there is scarcely one "lo
&c no, an adept in those peculiar potlcai methous
nv which legislators are prevailed upon 10 w '''1
bidding of outsiders while laughing IN ther SI'e'
AZ tho sirnnle,ons to whom they proudly reier aS
.,r, constituents" The sum which these Pe'so"'
a, ocf,rI IN contribute from the enormous proh'S
~ their business for the support OF 4oopy At
he state Capitol Is put as high as s"V' III o'"'S
/ wears and the activity with when the'r "s'"'' "
tho legislature are trying TO deieat 'H'S o'' az
,so that other measure which proposes redncuo"
~ "A nar cent in the rate Of interes; chhrs'u ~
a,,rhro,ors makes II certain that the chec"s "''n
tho, have passed in this year are certainty boo'
for AT least this amount. ana propaoy io' mn 49,,
thousands more. The activity with "hc" Wv van
for the incorporation Of the Provident l|'a" 'o.'S
~ New-York is being opposed by the Inohey -en'
rs and their agents speaks well for It's pop"ar'''
SPEEDY SUCCESS HOPED For
an ,., exnac, 10 see II soon passed.? Robert
"a n r,r.st president OF the Charity OrgahAi-
,ion Society ana one Of the lawyers WHO VIA,
tho hill which Mr. Sheffield introduced was aSN.'
lie hesliated for moment before mAh'"s " ~
politics IS mighty uncertain you KNOW u" ''
erauv hut | see nothing to prevent the sp"~'s
80 ~ the measure AMI its final Endorsement
49, ,ho Governor Whether. after the three years
:, ,,.hicb the amendment that has been accep'i
u,,i.s orr existence. shall he ophseu ~ 'F".
another lobby at Albany when we come - "''''''
q renewal OF lie. remains. or course 20 ~ So
And in that case suppose, We shall have 10 trust
IN the good faith OF the legislature IN ''"'
,o,oe, f., be derived from orr plan VIII Nc its
| orr,,rency and when you ask me as To "heth'l
rs proposed limited existence 10 three years """''
! NOT also limit the readiness OF the l"op'e WHINE
| 20 subscribe their money % start su'h WoleN''
: ,htrL shall have 20 make answer tn the aflrm-
| alive" ~.
ia this Provldcnt Loan Society the same IDEA
Witch th. Rev. Or Greer had in mind before de-
Gliding 10 open an Office for The lending al money ~
small rate OF interest on the cnh'''l mortgage
plan which he has already done!
| "Thls matter was considered by n" Charity Ut
/ Inch na 81
! ago" said Nj De Forest and as the times grew
wore. II was looked into more earnestly Many
! schemes came 10 light. We hal pans ourselves
| and we received suggestions from others VINO
happened 70 De thinking OUT the same problem on
| the same lines. To that extent the idea is pr.
Grc,r's. who Is deeply Interested In this matter
! and IS one Of the warmest advocates for the
! success Of the project"
What have yor 10 say 10 the assertions that
the charter Is to be used for money making pur-
poses?"
would II be deemed too strong" answered Mr..
De Forest III / replied TO mat question hy saying
that IL IS really too contemplate 10 heel: The de-
tails have not yet been arranged. Tor We shall be
obliged to hear and exchange Views before the best
! In what each man has to Oner can b" appropriated
and moulded into common whole. Enough.
| however has been decided upon To show from a
! careful examination OF the charter That such use
| OF Il Is impossible under It's terms. As a matter
! OF fact purpose in framing the blll In the form
! in which It has been presented to the Legislature
! was 10 prevent 1t ever falling into the hands OF
those who could 1t with mercenary motives
The Only possible Of the society viii come
from gifts or loans and the Interest on loans Is eX-
pressly limited to the legal rate"
you mean by that per cent?"
ONLY SIX PER CENT.
THAT is JUST what I mean. II Is the intention
OF the society TO lend money the lowest rate con-
sstent with business principles. and they conten-
plated originally putting In their charter provso
limiting the rate OF interest to be- charged 10 one
half Of pawnbrokers rates. or some other sum-
| but upon examination It found that the Con-
stitution OF New-YOrk forbds the passing OK any
private law fixing the rate Of interest, and 80 such
provision in the charter would have made II UNI
constitutional This matter will be regulated by the
charter Of the society and interest will be fixed as
have before stated at the lowest rate consistent
with business principles
Have you any comment TO make touching the
amendment to the bill as originally ntroduced'
| Mr. De Forest asked.
| Il feel called upon" he said Ito express my sur
prise at the amendment adopted by the Assembly
limiting the duration OF the charter to three years
| This | fear will render 1t practically valueless
| While II Is intended to relieve the present distress
It Is distinctly intended as n permanent scheme Tor
helping the poor. and / doubt II the corporators
| Will be willing to put upon themselves the burden
and expense OF organizing the business unless they
| can look forward TO its being means Of perma
| ncnt and lasting good
| Mr.. De Forest allowed the reporter to take some
| facts and figures from the advance sheets OF
| article which has been prepared by member OF
| the Charity Organization Society for THE Chari-
| ties Review" II starts out with interesting
| summary OF the causes which have led up 10 the
! formation OF the Irovidcnt Loan Society OF New
York and explains that institutions TO assist poor
| people in temporary need by making small loans
| al reasonable rates on articles OF daily use have
been I'm existence In Europe for 300 years and under
the title Mons Pletatis. or Mountain Of Charity
werc established "a larger scale In Rome and the
PapaI states In the sixteenth century by Pope Six
| tus V than elsewhere.
| The best known Of these Is In Paris. IL Is called
the Mont de Piete. Some are In operation also In
Italv Spain Austria, Germany Holland. and some
| other countries. and are under Government mu-
| nicinaI superyslon. The rate OF interest Is fixed
| iust high enough cover the cost Of keeping the
| hedges and the regular running expenses Of the
! place including moderate return on the required
,canitsI King Frederick William OF Prussia even
la.Arlrl. In