The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1901-04-15
PAWN BROKING.

which considerable attention might be /
given. The fact that in Honolulu the |
most outrageous prices are charged for |
temporary loans is one that really calls |
for legislative action 1t is well then |
TO see what is done elsewhere, especial
ly when we are considering municipal !
One of the striking. features, in con-
nection with the municipal govern
ments of the large cities in Germany,
are the city pawn shops and savings
institutions establishments where poor
people, in need of temporary financial
assistance can go and obtain loans up
on wearing apparel, furniture, jewelry,
books, ETC., at a low rate of interest.
In addition to these city pawn shops
there are private ones as well, where
loans 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. 1t is held
by many economists and philanthro-
pists that a step further than the esta-
blishment of the city pawn shops
should be taken, namely to make it I'M
lawful for private individuals and COM
panies of any kind to loan money upon
wearing apparel, furniture, jewelry,
books, etc.
The Leipzig City Pawn Shop and Saw
ings 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
pawn shop. When work is plentiful
the loans are but few, but when hard
times come the number and value of the
loans increase.
A study of this pawn system, which
has been made by one of our Consuls,
is worth our while. There is one mark
ed feature in regard to these pawn
shops, and that is the redemption of
pledges. According to the last report
91.57 per cent of the articles pawned,
We're redeemed while only S.43 per cent
were sold at auction according to the
statute for unredeemed pledges after in
terest has ceased to be paid for a year.
In this connection it is interesting to
note that of the excess of the money
loaned upon articles pawned is returned
TO the former owner, while a loss has to
be borne by the municipality. This is
met, and more than met by the balance
of unclaimed funds. People leave the
city they die without heirs, they forget
and the result evens up the record.
There seems always a tendency on
the part of large part of the public
to regard the pawn shop as method of
running the poor. But is this a sound
principle, can it be based upon good ar
gument. The merchant, when he gets
into tight pinch, as some of the great
est of merchants have done occasional
ly, goes to the great capitalist for ac-
commodation, and tides over the bad
time. The farmer goes to the local
bank, and is there helped. Why should
not the poor man have some means
ready at hand by which he can tide
over his trouble. and not be fieeced as
he is now.
There is probably no county where so
much has been wrung out of the poor or
thriftless as in this. 1t has been no I'M
common case for a silly lad who has
got into the hands of the average blood
sucker to pay three and four times the
amount of the loan he contracted and
still owe the original sum. The fright
full percentage paid by many Hawaiian
employees for temporary accommodation
is absolutely appalling to those who
know what has been done in this direc-
ton. Many house has been built and
much land has been bought out of this
fleeing of the thriftless.
1t is the duty of the state or the
municipality to protect every class of
its citizens If it possesses thriftless
people there is no reason why they
should be fleeced by the predatory por.
ton of the community. There is nc
reason why one hundred and twenty
per cent should be charged annually or
temporary loans, and yet that such 6
rate has been and is charged is dis.
tinctly probable.
1t is far too late in this session tC
propose anything that the Legislator,
can pass, but undoubtedly legislative
action should be taken upon this. Il
we had a municipality, municipal ac
tion might be taken and the poor anC
thriftless be saved. In Leipsic, the cit,
whose pawn broking plans formed tn,
basis Of this article, the amount of in
terest charged on loans was only thre
and half per cent. Compare thi
with the one hundred and twenty o
Honolulu. Many people abroad will no
believe the statement made in thi
column. In London sixty per cent ha
been heard of and turned down in tn
courts, but double that amount seem
scarcely credible.