The San Francisco call., 1897-02-13
Letters From the People.
MUNICIPAL PAWNSHOPS.
Ho,v Paris Protects Her Poor. From Er
t0nfinlI.

H0tO Paris Projects Her Poor From Err
tOrtiOm.
To the Editor of the Sen Francisco CaII-SrR.
Paris may be the "gay and wicked CITY" NJ
the newspapers and the noveIists, the mistress
of fashions and all that-may in word. do
things openly and with simple abandon
which other cities do on the sly and with q
sham affectation OF virtues they do not DOS
sess-but she leads the world in municipal nm.
manity and civic virtue, as l have plainly in
dicated in a former letter. In continuation
OF the subject propose now to give briefac
count of her municipal loan system, made nm
from on authority OF unimpeachab,e accuracv
and iullness OF detail, to which I have fre
quently referred with growing satisfaction
Albert Shaw's review of Munich pal Govern
ment in Continental Europe"
In order TO acquaint the reader with the
clear and vigorous style OF Mr.. ShaW's book
and at the same time to state the facts of the
case perspicuously and historically, shall use
the words OF the author so far my pace
Will permit. begin with page 112: mo de-
partment of the municipal administration has
entered more thoroughly into the customs and ,
the lie OF the common people of Paris than
the Mont de Piete, public pawnshop 1t is :
venerable institution, for it was first estab-
llshed in 1777. But it has SO adapted its
methods 10 changing conditions that no one
would think OF considering it obsolescent or
anuquated. On the con trary, it was never so
nineteenth century. The services il renders
the great Partisan community are exceeding
ly creditabie TO the humane instincts and
sound business sense that have made modern
French administration superior in It's con-
servation of the popular wealth"
cannot forbear word or two on the
! ''sound business sense" of this unique method
of saving the little properties OF the less sue
cessful people from the clutches of those who
prey upon the misfortunes of the unfortunate,
and whom NE in san Francisco unheedingly
leave TO the vulture mercy of our pawn
brokers without thought that it is one of the
worst forms OF civil unthrift in modern
PVT
pawnshop or loan depar tment was established
10 protect the people from the usurers. Private
awnbroking was obviously public evil, an
ageraVatlon OF poverty and too often ally
OF all sorts OF crime against property. At the
outset the new venture was placed under the
auspices and control OF the hospital and
charity administration, but is now munich
pal Institution. Its plan from the first has
been to receive interest-bearing time-deposits
much like savings bank, and to use the
money thus obtained TO loan upon chattels.
Its o bject has not been TO earn net revenues,
although 1t has always allowed a safe margin
OF profit and has thus accumulated ample
reserve funds. besides providing itself with
suitable buildings and appliances.
Besides a great central establishment and
three large auxiliaries, the Mont de Piete
possesses twenty branches in different parts
OF Paris for the conven fence of the people of
the various quarters. The number of articles
upon which loans were made for the wear 1892
Was 2,276. 149, and The amount loaned was
60765,917 francs, or $12, ,153, 1S8, an average
o. 20 francs or So TO every man, woman and
cent per annum interest, with a fixed charge
of 1 per cent to cover insurance upon the
articles pledged and certain other expenses
All the money reqn1red is secured at 80 per
cent paid upon yearly deposits, and 30 and
ana even per cent upon deposits for shorter
periods.
francs, or 90 cents, but on all sums less than,
y francs loans are made at loss 10 the city, -
even though they are outstanding for years.
Loans OF S5 francs are prof table even if male
for one month. The average of all loans is
from % to 80 francs. hence the great majority
being much below 70 francs are made at loss
to the municipality and therefore are boon
to the poor. Formerly there was limit to the
amount loaned to one individual but ii Is now
removed experience showing that the institu-
ton is BILE to meet all demands for loans and
the increase OF large loans makes ii easy to
favor small borrowers. This removal of the
limit has greatly increased the usefulness of
the institution to merchants and business
men,"
Public loans In France, unlike our public
loans, are issued in bonds OF small denomina-
tions and the savings of employees, artisans
small dealers and thrifty servants are usually
b nds, many owning one bond each for 400 or
300 francs This city pawnshop or loan insti-
tuition will loan money on these bonds.
'Let us suppose" says Mr.. Shaw "that
Jacques owns one share of Paris municipal
stock, worth 100 francs. and has 800 francs in
the Nun cipal Savings Bank when a desirable
new loan is offered. He deposits his share of
stock with the municipal pawn or loan bu-
Teau, gets 100 francs on it, withdraws his 300
lAouS-S II OuA NHS sdNlusS Uduk anu LQen DuYS
new 40O-franc bond. AS soon as he can save 100
francs he redeems his pledged share of stock,
and 1T has cost him only half franc MONTH"
In this way also any one can obtain money in
an emergency on any property he may pos
sess from the public loan bureau and pay it at
his own convenience.
Reference has been made incidentally to the
Municipal Savings Bank, which should be con-
s1dered in this connection as well as the Ns-
t1onal Postal Savings Bank, but my letter has
reached its limit and must leave that topic
Tor another time, and such comments as seem
needful on the Partisan system of aiding pro-
tecting ana elevsting the thrifty and deserv-
ing poor OF the City.
JOSEPH AsBURY JOHNSON.
IL Essex street February H. 1897.