Hopkinsville Kentuckian., 1900-11-06
LENDING no THE POOR.
what Has Been Done in the Way Of
Municipal Pawnshops

lion should he agitated in this coun-
try. The states in which most at
tention has been given to the subject
are New York and Massachusetts,. In
the former the legal rate of pawn
brokers' interest on loans less than
800 is three per cent. for the first
six months, and two per cent. per
month thereafter; in other words, 80
! per cent. per annum. Upon house
! hold effects and clothing the Amer
lean pawnbroker lends very little
partly on account of storage; but
upon diamonds competition forces
the bawnbroker to advance a large
proportion of the price that the deal
er would pay for them.
1t is the opinion of many that in
stitutions that lend small sums on
pledges or chattel mortgages on fur
niture or personal effects are even
more useful to the people generally
than the banker, says the Arena. The
small borrowers outnumber the large
ones ten TO one. There are discour-
agements; one meets with some dis
honest people; but it is the observa-
tion of clergymen, missionaries, oili-
GERS of the Salvation Army and 9TH
ers in like positions that the poornre
just as anxious to pay their debts as
the more rrcsrcyors
AS carly as 1859 there was incorpo-
rated in Boston a Pawners lank.
The aim Of this institution was to
enable the poor TO borrow money in
small sums on personal effects. After
various yIcisstudes this became the
Collateral Loan company. Most Of
their loans are for five dollars each
This company is trying to reach the
ideal Of Ire PawncIs bank-nmnely,
for the poor to bouow money on per-
sonal property Of all kinds on reason
able terms. The loans are for four
months at onc-half per cent. per
month
The Workingmen's association re-
ceivcd its charter from the common
wealth Of Massachusetts, on March 8,
1883. This organization was also
formed for the purpose of enabling
persons to borrow money on furni-
ture and other personal property at
low rates. 1t was designed that they
should transact business, conducted
economically at the very lowest rate
thatwouldyield a fair return upon the
capital invested. One per cent. a
month was fixed as the interest rate,
and with each payment of interest
the payment Of an installment Of the
principal equal to five per cent. of the
loan was demanded, thus encourag-
ing borrowers to save and pay off the
loan. Loans have been repaid very
fast. averaging from half a year to
year in duration When illness or
misfortune comes the company re-
lakes its demands, and gives time un-
til circumstances shall improve. Be
sides the interest at one per cent. a
month, an additional charge is made
sufficient to cover all expenses in in
vestigating and recording mortgage.
Loans are made on furniture and
household effects, insurance, policies,
indorsed notes, ETC., but seldom on
jewelry. Each applicant is questioned
with great care and fills out blank
application, giving present residence,
previous residence and business refer
ences, and deposits 35 cents. The
company has, Of course, met with
some losses. Loans on horses, boats,
pictures and druggists sundrics have
proved unfortunate; but as a rule fur
niture has been redeemed AS the
loan, being only one-fourth Of the
purchasing price, is small in compar.
ison 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 So
cisty was organized to give aid, on a
strictly business basis, by the loan
Of money at one per cent. per month,
or one-third the legal charge made
by pawnbrokers. AS a rule money is
loaned on jewelry and other articles
representing large value in small
bulk. Reports of this association
,tot, that Al 900 IL oIta,., 1.,,.,