The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-02-08
USURERS IN OFFICE.
AN EFFORT TO DRIVE THEM FROM THE
GOVERNMENT SERVICE.
Many Men Have Become Independently
Wealthy Lending Money to Department
CIerks-A Negro Note shaver-Borrow-
ers Among Army Omcers.
Especial Correspondence.l

Especial Correspondence
WASHINGTON, Feb. Secretary Car
Isle has issued very stringent rule to
prevent money lending in the treasury
department It forbids any person in
the service whose duty it is to take Off
cial action concerning the status of other
officers or employees to borrow from
any such officers or employees or lend
to them, to indorse a note for them or
to use a note Endorsed by them. This
order will probably put an end to usury
in one branch of the government service.
There have been several small scandals
in the last year based on this practice,
and it was about time some action was
taken to show the usurers that they
could not carry on their trade under the
protection of their department places.
Many men have held government Office
long after they had acquired conforta-
BILE fortunes because the places gave
them opportunities to carry on the bust
ness of money lending at exorbitant
rates of interest.
The scandals have been nothing in re-
cent years to what they were a few
years ago, and only an occasional erup-
ton like that caused by the order of the
ScCIGtd1y VI lI0 treasury Q1ISCIS dGNSA-
ton to the subject of money lending in
the departments, which not so many
years ago was crying disgrace to the
public service. Twenty or thirty years
ago men grew rich in the business
One of the most prosperous citizens
of Washington made start on the high
road to prosperity lending money to de-
partment clerks at high rates of inter-
est The usual rate on loans of this kind
was 10 per cent month This money
lender got his hands at one time on a
clerk in the department who was ur-
gently in need of 500. He lent him the
money at 10 per cent month, or at
the rate of $3.50 a year, until the loan
was repaid. The borrower was spend
thrift, as most men who borrow money
at 10 per cent month are. He could
not save the 800 out of his salary and
he had some difficulty in putting aside
SO each month to pay the interest on
the loan. But month after month he re-
newed his note, until it had run three
years. In that time he had paid $500
interest, and he still owed the 500 he
had borrowed. He saw no prospect of
escaping from the clutches Of the shark.
In his extremity he went to a friend
and asked his advice. His friend sug
gested that he make a proposition to
pay 500 more in monthly installments
of $40, those payments to cancel the
debt. This proposition was rather gen
erous as the claim was one which could
not have been collected at law; but the
money lender was not willing to accept
this settlement, and his debtor finally
resigned from the department service
and left the city without satisfying the
ont Low Tho 1or1dor
got back three times his principal and
compound legal interest, SO he had no
reason to complain.
Must Pay Their Debts.
Most of the loans between department.
clerks are made without security. The
assurance ON which the lender relies is
the disposition of the heads of depart
ments to remove clerks who get into
debt and do not pay their obligations
There was a time when there was
rule in the departments that clerk
who did not pay his debts was summa-
rily removed. The creditor used to come
to the department with his bill. The
chief clerk would notify the debtor that
bill against him had been received
and that if it was not settled he would
have to leave the service. A change of
administration changed all this. The
new cabinet officers found their depart
ments being used as collection agencies
by tradespeople and washerwomen,
and they issued a new set of regula-
lions. Thereafter no person with bill
was admitted to the department. But
clerks were not left to do as they pleased
about paying their debts. If clerk was
VIGOROUSLY spendthrift and in debt,
he was told that he was not wanted in
/ the department. But it had to be pref
ty severe case and one of long standing
| to attract the attention of the depart
ment people
The disposition of the clerk at Wash
ington is to spend to the limit of his in
come. The civil service law rather en-
courages this disposition. Clerks feel so
secure in their places under this law
that they do not think it necessary to
save. A season of illness may take them
away from the department beyond the
time of the legal "'sick leave" one
month. and they may be deprived of
their income for a time, or extraordinary
expenses may be made necessary perhaps
by illness in the family, or salary
may be reduced, and the clerk attached
to it may not be able to get his ideas
within the limits of his lessened income.
In any one of these cases the clerk may
want to borrow The man who lends to
him is pretty sure of getting his princi-
pal and good interest if the clerk lives
long enough.
The clerk usually makes little prepa-
ration for death and still less for the
loss of his position. That is the reason
great many men in congress believe
there should be a mutual benefit asso-
citation among the clerks, with member
ship compulsory. This would insure
them against illness or disability and
would give their families something
when they died. Four bills to this enc