The Monte Vista journal., 1900-01-27
PRACTICAL CHARITY.
PHILANTHRopic MONEY LENr.
ER8.
A ssssssy I. ns,ti..ors Makes ch.,,,,
Lsa.s ~ stx Pes 'Csae 70 People That
nevs Hssstsfsss Paid Many Tine.
3AAt 1Ata.

One Of the most practical charities Is
the Chattel Loan Association Of Balti-
more. which was organized a little
more than year ago that the worthy
poor OF that city when compelled to
borrow money might e~cape the pay.
lnent OF usuriOus rates. Lawrence
Iurnbull Is the president and w. n.
Finley Is the manager. 1t Is not a
charitable institution, but is conducted
upon purely business principles. II
does not loan money On sympathy or
sentiment, but In every case requires
good security and forecloses mortgages
In case Of default. The advantages 1t
Offers over the regular money loaners
are the low rate OF interest charged
aRd the application of justice In the
settlement Of its accounts. Loans are
made on household furniture to worthy
persons In amounts ranging from $50
to *2oO, with Interest ut the rate Of six
per cent. a year, the principal to liz
paid In weekly or monthly install
ments, and are renewed upon similar
terms II 1t Is apparent that the borrow
er is unable TO pay interest or principal
because OF misfOrtunes for which he
cannot bc held responsible.
When person desires n 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 u Zee OF 81 to pay the
expense OF appraisemcnt. II the up.
pruiser reports that the applicant IL 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-
iure 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
err 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 $:O to pay the expenses Of
funeral. The broker charged them d
fee Of 81 for making the loan and $3
n month interest. After paying this In
terest for thiuteen mOnths-a total Of
&D-the family was unable to pay on
the fourteenth month. whereupon its
furniture was seIxed and was about to
be sold At auction for the benefit Of the
ShylOck. when the mission worker In
terfered and threatened to bring the
case before the grand jury. A general
Inquiry followed which disclosed that
the mechanics and other wage-eArnerx
OF Baltimore were In the ha bit Of pay
Ing all the way from ten to 1000 per
cent. for borrowed money. and that
i've per cent a month was considered a
reasonable rate for sums OF 500 and
over. and eight per cent. q month for
smaller amouotA II was discovered
also that 2.3UO street.railway conduct
ors In the city, who were required to
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 loas was only Sl63 In
interest defaulted. Two mortgages
were foreclosed. In 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 dentists.
doctors, lawyers. teachers, ministers,
clerks. nurse~. dreSRmakerx. mIilinerr,
hucksterx. butchers. bakers. policemen.
car driverS-but the most OF the appli.
cnnts were mechanics, who were either
III or had illness or deaths In their fam
ilis~. or were thrown out OF employ
ilent.
In several cases loans were made Ia
people who needed n small amount Of
capital to start In business. aud II IL
said that In every case both interest
and principal were promptly paid. 1t
was arranged TO loan the street-car
conductors SO to make their deposits
with their employers nt the rate OF 81,
or ak Ier cent. \ year. instead OF the
twenty-four Ier cent. which they had
bss.n puyinR.