The state herald., 1900-01-26
PRACTICAL CHARITY
PHILANTHRoP!c MONEY LEND
ERS.
Society In baltimore Makes Chatte'
Loans ut Six Per Csnt to People \ iia'
Have Heretofore Paid many Times
That Rate.

1uht lkute.
One of the most practical charities is
the Chuttel Loan Association of Balti-
more, which was organized littl.'
more than year ago that the worth,
poor of that city when compelled Ia
borrow money might escape the pay
nent of usurious rates. Lawrence
Turnbull is the president and W. y.
Finley is the manager. 1t is moi !.
charitable institution, but is conducted
upon purely business principles. h
does not loan money on sympathy OF
sentiment, but in every case requires
good security and forecloses mortgage
in case of default. The advantages /
offers over the regular money loancis
are the low rate of interest charged
and the application of Justice in H.
settlement of its accounts. Loans ar,
made on household furniture to worthy
persons In amounts ranging from So
to $3.50, with interest at the rate of six
per cent. n year, the principal to be
paid In weekly or monthly install
ments, and are renewed upon similar
terms II 1t is apparent that the borrow
err is unable to pay interest or principal
because Of misfortunes for which he
cannot be held responsible.
When a person desires Il loan he mus
make application in writing to the
company and state what security he is
able TO give. This application must be
accompanied by a fee of 81 to pay the
expense of appraisement. II the ap-
praiser reports that the applicant is of
good character and industrious habits
and that the property is worth three
times the amount asked for, the loan is
made and mortgage upon the furni-
ture or other property Is taken.
The association was organized by the
Rev. DIR. Babcock of the Brown Me
mortal church, President Gilman of
John Hopkins University and other
men of practical benevolence In Balti-
more, whose sympathy was stirred by
reports brought them by mission work
ers concerning the extortionate rates
paid TO money lenders by the poor.
They discovered one family, which, be-
ing out of employment, was compelled
TO borrow $50 to pay the expenses of n
funeral. The broker charged them a
fee of 81 for making the loan and So
II month Interest. After paying this in
terest for thirteen months-a total of
S39-thc family was unable to pay on
the fourteenth month, whcreupon its
furniture was seized and was about to
be sold ut auction for the benefit Of the
Shylock. when the mission worker in
terfcrcd and threatened to bring the
case before the grand jury. A general
inquiry followed which disclosed that
the mechanics and other wage-earners
of Baltimore were In the habit of pay
ffn,v al ha t..y, ~. 4
cent. for borrowed money. and that
five per cent. n month was considered n
reasonable rate FOR sums Of Sl0O and
over. and eight per cent. a month foI
smaller amounts. 1t was discovered
also that 2,3Oo street-railway conduct
ors In the city, who We're required IL
make security deposits of $50 each be
fore they received their appointment,
Were In the habit OF borrowing their
money from loan brokers who charged
them at the rate OF four per cent. per
month Interest.
During the last year 5SS similar
loans Were made. for total amount OF
$4,000. The net loss was only Sigh In
interest defnulted. Two mortgages
were foreclosed. I'm both instances BE-
cause Of attempted fraud on the part
of the borrowers. The applications re-
fused on account of misrepresentation
amounted to about 5000. Loans were
made to all kinds Of people-dentls,s
doctors. lawyers, teachers, ministers
clerks, nurses. dressmakers. mllllners
hucksters, butchers. bakers. policemen
ear drivcrs-but the most Of the appli
canis We're mechanics. who were either
III or had illness or deaths In their fam.
ilies. or Were thrown out OF employ
ment
In several eases loans were made IA
people who needed a small amount Of
capital 10 start In business. and II L.
said that In every ease both interest
and principal Were promptly paid. II
was arranged To loan The strcet-car
conductors $50 to make their deposits
with their employers NJ the rate OF 81
or six per cent. u year. instead OF III,
twenty-four per cent. which they had
been paying.