The Providence news. (Providence [R.I.]) 1891-1906, 1895-07-15

completed the second nall oi its seconu
year of benevolence. The GREER idea
has been a success from the start, we
believe. II will be remembered that the
rector of st. Bartholomew began busi-
ness by providing money enough from
his own pocket for the enterprise, and
that it quickly developed such demands
upon It that the bureau, which was made
a department of the parish house, had to
be enlarged, was later incorporated, and
is now doing a splendid business, with a
capital of s25, 900.
Providence and in other cities, and the
increasing success of the original "Christ-
ian Pawnshop" can but be an encourage
ment to the projectors OF similar
enterprises everywhere. DR.. GREER
realized that some OF the greatest hard
ships of people of small means are caused
by the difficulty Of borrowing money in
time of great need, and he determined to
make a test OF whether loans could be
made with fair chance OF repayment to
needy and temporarily embarrassed per-
sons who had no security that would be
taken at the banks and at rate that would
be no more OF hardship than borrow
at H. har
ordinary business conditions. Well-to-do
persons, folk who have property or Sc
curities on which money can be raised by
simply showing them, can hardly realize
the straits to which wage earners are fire.
quently put for lack OF credit, with moth
ing to borrow on but household goods
and the clothing on their backs. The
GREER bank lends money on
chattel mortgages, the only
property available to thousands of per-
sons as security for loans. There are
many chattel mortgage lenders, but the
rates are excessive, often times as high as
$50 or 100 per cent year. The chattel
not only a higher rate than other
kinds Of banks, but very much higher
rate to protect himself and make fair
business profit. The GREER bank under
takes to do chattel mortgage business for
one per cent. a month instead of 10 per
cent. a month, which is about the
rate charged for this class of business in
the regular channels.
The announcement OF the opening OF
the bank brought an immediate rush for
loans. Those who applied at the bureau
were generally self-respecting persons who
had been reduced to the verge Of pauper-
ism, not by lack Of industry, energy,
and perseverance, but rather through the
force of unfortuate circumstances. 1t
became early apparent that the dem and
for loans could not be supplied by the
weekly limit of $500, which had been
agreed upon at the start, and two weeks
later fund of s25, 900 was secured. The
bureau from the beginning has been
conducted on business principles, and
the rule is that there must be amp
security back of the mortgages on which
a loan is made.
Accordingly to the statement of the
general manager of the bureau, the
GREER bank, since its organization, has
loaned 500, 900 and has had s3s, 900 paid
back, the balance being yet due. Barely
900 has been lost.
The bureau, 1t may be recalled, began
business with an attempt to loan money
at per cent. year, about as small as
bank interest and the then Legal rate for
New York. But the effort proved imprac-
ticable. The act OF incorporation under
which the bureau now works provides
that any three persons, in a county having
population OF over 800, 600, may organize
q corporation for lending money on per-
sonal property to the extent OF s200 1t
vests the oversight Of such institutions in
the State Banking Department, and the
incorporators are compelled to give bond
Of not less than $500 as guarantee OF
faithful compliance with the law. The
interest is fixed at three per cent. month
for the first two months and two per cent.
thereafter. The banking department is
empowered TO examine the books OF such
institution, and when their earnings ex-
ceed maximum OF ten per cent. per an
mum on their capital, the department
causes the rate OF the interest to be di-
minished to a rate which will bring the
profits down to this figure. A reward OF
$3.50 is offered to clients who will furnish