The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-11-12
SENTIMENT IN BUsINEss.


Once IN while the least bit of senti-
ment creeps into the great world of bust
ness and finds there an abiding place
1t usually. In the course of time, becomes
transformed itself into matter of bust
ness. and brings blessings with it to
many.
The G o be has more than once re-
ferred to the system of peoples banks
which has sprung up in other lands,
whereby the Industrious poor are able to
combine their aggregate possessions in
property and in personal. integrity and
industry into capital furnished to them
at low rate interest through such banks
Recently there has been established in
one of<our own cities a business institu-
ton founded on the same principle and
which, within a more limited scope, is
doing good work among respectable citi-
zens who find themselves in present need
The Baltimore ChatteI Loan association
is the name Of this concern, which, Of
course, is established in the city from
which it takes its name. 1t has been in
existence for about year. 1t started
with capital of SIC, 900, which was after
wards raised to $4,000. 1t is the first
annual report of this concern which has
just directed attention toward 1t. The
results shown through that report are far
in excess of anything that was expected
to follow from it within so short period.
Loans to the number of $685. and to
the amount of $4,000, were negotiated
through it. The years business showed
loss in loans of only $685. interest de-
faulted, not of capital lost. The earnings
of the company permitted the transfer of
substantial sum to the surplus account.
But two mortgages were foreclosed. and
in both Instances because of attempted
fraud on the part of the borrowers. About
$1,000 worth Of loans were applied for and
refused, showing the good faith of the
great mass of the borrowers
The class of operations this concern
carried on is quite instructive, as we'll
as its methods of business The amounts
loaned have ranged from $40 to $500. The
borrowers have represented all classes of
deserving people Of small means-doctors
ministers, dentists, lawyers, nurses, dress
makers, clerks of every grade, builders
peddlers, butchers and bakers. A rate of
payment is arranged at the time of the
loan whereby a certain sum, representing
interest and part payment of principal, is
paid at stated intervals, usually in week
ly or monthly installments The company
exacts deposit of 81 for examina-
ton Of an application, the money not
to be refunded in case the loan is denied
Reference as to character is rigidly in
sisted on. and proof is required that furni-
ture on which money is borrowed has
been paid for. In many cases where the
rate of payment agreed on was found to
be too large a rea djustment was effected,
the better to suit the ability of the Dor
rover.
The sad story usually attending the paid
as we'll as the unpaid chattel loan is
familiar to most fairly intelligent people
In this and every other city, such. loans
are every day negotiated which are usuri-
Gus and extortionate to degree which
shocks all sense Of humanity, not to speak
of justice. The whole amount borrowed
is rarely ever paid in such cases; while
there is as much interest exacted each
month the law would allow to be col
lected in year. often and often the
poor victims of such transactions, 'Vfor
want of even fundamental knowledge
of business transactions, have their little
belongings taken away from them long
after they have paid the amount twice |
over. One can hardly imagine anything |
more brutal than the exactions of the |
modern usurer who operates through the |
chattel mortgage scheme. OF course our |
courts will not uphold his performances, |
and he IS usually too cunning to allow |
himself to be brought into court But his |
operations are none the less extensively |
carried OH among the poor and ignorant,
who are not rarely improvident also.
The establishment of reputable concerns
in this line of transaction, the model
of the one in Baltimore, is one of the
great needs of daily life.