The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1900-11-02

subject are New York and Massachu-
sets. In the former the legal rate of
| pawn brokers' interest on loans less
| than one hundred dollars is three per
cent for the first six months and two
! per cent per month thereafter; in other
words, thirty per cent per annum. Up
on household effects and clothing the
American pawn broker lends very little
partly on account of storage; but up
on diamonds competition forces the
pawnbroker to advance a large proper
| ton of the price that the dealer would
pay for them.
1t is the opinion of many that insti-
! tutions that lend small sums on pledges
or chattel mortgages on furniture or
personal effects are even more useful
to the people generally than the banker
The small borrowers outnumber the
large ones ten to one. There are dis
couragements; one meets with some
! dishonest people; but it is the observa-
ton of clergymen, missionaries, officers
of the Salvation Army, and others in
| like positions, that the poor are just as
anxious to pay their debts as the more
prosperous.
! AS early as 1859 there was incorpo-
rated in Boston a Pawners Bank The
aim of this institution was to enable the
poor to borrow money in small sums on
personal effects. After various vics-
STUDIES this became the Collateral Loan
! Company Most of their loans are for
! 81, mi
| ing to reach the ideal of the Pawners'
Bank; namely, for the poor to borrow
money on personal property of all kinds
on reasonable terms. The loans are for
four months at one-half per cent per
month.
The Workingmen's Association recei-
we'd it's charter from the Commonwealth
of Massachusetts on March 8, 1888. This
organization was also formed for the
purpose of enabling persons to borrow
money on furniture and other personal
property at low rates. 1t was designed
that they should transact business, con-
Quoted economically, at the very low
est rate that would yield a fair return
| upon the capital invested. One per cent
!
and with each payment of interest the
payment of an installment of the prin-
! cipal equal to five per cent of the loan
was demanded; thus encouraging Dor
rowers to save and pay off the loan.
Loans have been repaid very fast, ave-
raging from half a year to a year in
duration. When illness or misfortune
:
and gives time until circumstances
shall improve. Besides the interest at
one per cent a month, an additional
charge is made sufficient to cover all ex-
penses in investigating and recording
| mortgage. Loans are made on furni-
| ture and household effects, insurance
policies, Endorsed notes. etc, but sell
dom on jewelry Each applicant is
/ questioned with great care and fills out
a blank application, giving present re-
sidence previous residence and bust-
! ness references, and deposits thirty-five
cents. The company has of course met
/ with some losses. Loans on horses.
books, pictures and druggists sundries
( have proved unfortunate; but IS a rule.
furniture has been redeemed. AS the
loan, being only one-fourth of the pur-
chase price, is small in comparison with
/ the value of the furniture, there is a
strong inclination to pay.
| a few years ago DR.. Greer started a
loan association in New York and out
of this the Provident Loan Society was
organized to give aid on a strictly BUSH
mes basis, by the loan of money at one
per cent per month, or one-third the
/ legal charge made by pawnbrokers.
AS rule, money is loaned on jeweIry
and other articles representing large
value in small bulk. Reports of this
association state that those who obtain
/ loans are rarely found on the records
of charitable institutions, but are self
supporting persons that desire to tide
over periods of misfortune or illness.
| The work is preventive rather than
charitable. Less than two and one
third per cent of the loans made in 1895
remained unpaid at the close of the
year. This society started with a Cant
tai of $780, 900.
Such is the work done elsewhere in
this line, and something of similar
! character should be done here, and the
iniquitons. system of 10 per cent month
be done away with.