Evening star., 1902-02-01
M ON T. E-PIETE {
What the Government PaWnshop
Really Means.
SCANDALS IN ITS MAN AGEMENT
Why Santos-Dumont's Gift Has
Benefited So Few.
s. G., THE LONDON AGENT
Special Correspondence of The Evening Star

Special Correspondence of The Evening Star.
PARIS. January ~, 1902.
When -Dumont, having won the
Deutsch prize for aerial navigation, de-
cided to give ~. 600 francs of it for charity
he innocently turned his mind toward the
great governmental pawnshop. Here" he
said, poor folks have pledged the tools of
their trade. their household utensils, their
winter blankets, overcoats and clothing.
The fund cannot be better spent than in
Tedeeming such objects of first necessity
for their owners. who. from the nature of
things must be interesting and unfortu-
nate.
Santos-Dumont handed over the $4,000
francs to the prefecture of police in Octo-
Der. Now, In January, comes news that it
has been spent upon its object. 1t Is
strange coincidence that on almost the
same day news should come that the pawn
shop administration has raised its rate of
interest from per cent to per cent; that
the finance committee of the Coincide
Franchise, the heaviest stOckholder in this
curious governmental monopoly, should in
its yearly report, complain of the poor div
idendS paid by IL, and that a Paris munic-
tpal councillor and known expert should
devote himself to demonstrating publicly
that in spite of all boasted safeguards, the
governmental pawnshop drives the poor
man INTO uSuTy anu the IlIldI lOSS VI HIS
goods.
The theory Of the governmental pawn
shop-cal1ed the Mont-de-Piete, or Mount
OF Piety." an old. iowery name-is so good
that both Americans and English have pro-
posed to adopt it. Its practical failure is
the old story Of administrative ruts and
red tape. The old, original monopolistic
corporation. whose charter dates back be-
yond the year HI twhen IL was ''re-
formed'), Is philanthropical IN aim. It's
capital is not governmental money. but be-
longs TO stockholders willing 10 accept
from nsr cent to 3 psT cent year on
cafe investment but always hoping for
more. Such steckholder is the govern
ment-sustained. monopolistic Coincide Fran
saise-'he state theates-with 2;ooo.ooo
ital OF the Munt-de-Piete is of course,
loaned out by it at higher rate of interest
TO people who are fortunate enough to have
something TO pawn.
Governmental Monopoly.
1t is a monopoly. No one else may open
a pawnshop in Paris. 1t is philanthropical.
1t may not charge more than s per cent
year interest. The ticket which the clerk
will hand you with 50 for your new forty
dollar overcoat bears the words French
Republic-Liberty, Equality, Fraternity.
Montede-Piete." Whether, as in Italian,
Monte -di-Pieta. or, as in Spanish,
Monte-de-Piedad," or. as in French, the
"piety' Is not religious piety, but piety in
passion. while the mountain" must be the
one that faith is able to remove. From it
We have the reference to putting up
e. e., Il have put up my watch"
The per cent year charged by the
Mont -de-Piete for money lent on pledged
objects is made up of ! per cent interest
and ] per cent fixed tax" supposed to
cover insurance and other expenses. The
most out-of-date and fatal OF these other
expenses" according to the accusing mu-
nicipa1 councillor, is that resulting from the
forced employment of sworn valuers, or
''commissaires-priseu whose establish
ment in the administration of the Mont-de-
Piete dates back to the decree of Louis
XVI of December, 1T1I.
At that early date. when values ffuctuated
more than they do today and when means
of intercommunication were primitive the
ancient corporation of sworn valuers of
the Seine was asked to appoint certain of
Its members 10 the work of estimating the
value of all articles offered to the Mont-de-
Piete as pledges. 1t may have answered
well at the beginning. but 1t does so no
longer. Today fourteen such officers sit
behind the wtckets of the central pawn
shop and its various local branches They
give a glance at every object offered They
say Three francs'-"ten francs'-"thirty
francs as the case may be, and from
tner decision there Is no appeal. For this