The evening times., 1900-09-21
PAWNSROPS IN GERMANY.
Conducted by municipalities as Fea-
lures of Saving sInatItutsons.


institutions of the German cites He
writes in part as follows:
Striking features. in connection with
the municipal governments of the larg
cities in Germany, are the city pawn
shops and savings institutions tStad-
tische LeiL aauser ind Spar Cassen), es-
adjustments where poor people, in need
of temporary financial assistance, can
go and obtain loans upon wearing ap-
parel, furniture, jewelry, books, etc, at
a low rate OF interest In addition to
these city pawnshops there are private
ones as we'll. where 1oaps are made at
exorbitant rates of interest but where.
it is claimed, larger loans can be
raised upon the collateral than at the
official shops.
My idea in writing upon this subject.
in submitting the latest figures regard
ing the Leipzig Stadtisches Leihhaus.
is to invite the attention of our city
officials to this method OF making relief
possible to that class of our people
which needs the most care and cons-d
eration-the laboriCE class. 1t is he Id
by many economists and philanthro-
pists that a step further than the es-
tablishment of city pawnShops should Dc
private individuals and companies of
any kind to loan Money upon wearing
apparel, furniture, jewelry, books etc
The Leipzig City Pawn Shop and Saw
iugs Institution was established in the
year 1925, since which time millions of
dollars have been loaned. There is,
perhaps, no better Indicator of the CON
dition of the working classes than the
pawnshop. When work is plentiful the
loans are but few, but when hard times
come the number and value of the loans
increase.
''SaXony, being the centre of manufac-
turing in Germany, the condition of the
people here viii give a comprehensive and
Intelligent Idea of the financial status OF
the empire. That Germany has been pros
porous during the past five years is ad-
mitted by all, save the most pessimistic.
To show the thriving state of affairs in
Leipzig, l know of no better way than by
describing the business condition of the
City Pawn Shop and Savings Institution,
The decrease in the number of articles
pawned since 1892, with slight fluctuations,
has been continuous up to the end of 1899.
In 1899 there were 16S 573 new loans,
amounting to $685. 1873, recorded, showing
G54 loans less than in the preceding year
In proportion TO the increase in popuia-
ton from 1892 TO 1899 the number of ar
ticles pawned has decreased fully % per
cent IN 1892 there were 1874. sol new loans
issued, which amounted to 525 loans to
every 1000 Of the population. In 1893 there
were 16S,513 new loans issued amounting
TO only 391 10 every 1000 of the popula
ton.
The report of the City Pawn Shop and
Savings Association board of directors
reads as follows on this point:
The number of persons pawning iur-
niture and other articles Of value has fall
len OFF in the last year, in spite of the
fact that the winter set in earlier than in
the preceding year The favorable condi-
tIon OF the bushes market, the demand for
labor and the higher wages which have
been paid had All influence in bringing
about this result. This condition can only
be viewed with general satisfaction. OF the
articles pawned. I@6 569 were redeemed
making 915T per cent of the number pawn
ed in 1898, while 1920, or S-43 per cent
were sold at auction in accordance with
the statutes. From these figures. which
are nearly the same as those of the pre-
ceding year, it will be seen that there was
no distress among the citizens of this city
Ine working capital OF the CITY Pawn
Shop consist of $50, APT of its own funds
and Sl52, ,S23 borrowed frcm the City Saw
ings Institution. The earnings of this to-
tai capital OF S249, go amounted TO s.. .T94.
or l.52 per cent AS the capital loaned
rowed at 3 II per cent interest. amount
ing to $5.G94 there was loss of 81 3G4
which reduced the pawnshop funds to
S95.l23. Since 1894, these funds have been
reduced 81, ,S92. The less would have been
greater in 1899 il the running expenses of
the pawnshop (Which is operated in con-
junction with the savings institution had
not been reduced from three-fifths to one
half, the other part of the expenses be-
ing carried by the savings institution.
The proceeds of the six auctions held
were $3i,I53, which was s.. .607 in excess of
the money loaned on articles pawned
However, as the balance obtained over and
above the amount loaned on the article
or articles is returned to the former own,
er thereof, there would have been a deficit
OF S60l had there not been a balance of
$, ,191 unclaimed funds.
The number of depositors in the
City Savings Institution increased IN
1899 from 1I5.1I9 to $50. .4S0 but the de-
posits decreased about 81 cents per de-
p0sitor.
1t is well known that the backward
tendency of 1899 was on account OF tn
condition of the money market The
fall in the price of securities is also to
be taken into consideration Tbs caused
small capitalists who were in need of
ready money to withdraw their dep s.
its from the savings institution, this
being preferable TO selling their sacuri-
ties a a loss
The earnings from the regular course
of business have not been increased to
any grea- extent The net earnings for
1899 were SS9.604. an increase o. S9,f34-
81 over 1898. This favorable re lit was
countcTbalanCed however, by the con-
unued fall in the price of stocks and
securities. The loss on preferred stocks
held by the savings institution amounted
to S22417S for 1899. The earnings of
$50, ,604 together with S135, ,574 drawn from
reserve fund. had to be used to cover
this deficit Such an unsatisfactory
state of affairs has ever before existed
since the establishment of the savings
institution. The loss on effects aver
aged over 1-2 per cent and the very
best paper, such as II per cSnt P us
sian COnsols and imperial bonds and 3
per cent Saxon annuity bonds, suffered
the greatest decline.
''Of course it will be claimed that an
actual loss to the savings institution has
net been incurred as long as it is not
obliged to sell its securities for the in
stitution will still receive the full interest
on them, as heretofore However it is
indisputable that the savings institution Ia
prevented by the present condition of the
stock market from putting these securities
into circulation. except at a great loss
and so the greater part of its capital is
tied Up in such a way as to hamper busi-
ness operations.
''Ail other savings institutions, accord
ing to reports. are similarly situated. We
must conclude from the foregoing that tnt.
loss on investments in 'mundelsichere
Papiere' is heavy. AS the profits from
business operations did not cover the loss