The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1903-12-04
SHYLOCkS IN WASHINGTON.
Lenders at Capital Get Big Returns
From Government Employees.

Lenders at Capital Get Big Returns
From Government Employees.
New York Herald: 1t is a fact lemon
strated beyond a doubt, hat in Washing
ton Shylocks flourish as, perhaps, no.
where else in this country.
Apparently the size of salary drawn
cuts no figure in the sum total Of borrow
ing and installmcnt buying Of a large pro-
portion Of the employees. The official
whose envelope contains $500 every month
lines up with a clerk whose stipend ts
$50 a month. TIL more a person gets the
more he spends. The average clerk at 5000
a year has spent his salary when the last
day Of the month arrives and many have
m~ortagaged the following month. The Of
fetal drawing $4,000 a year finds nothing
left at the end of the month, as a general
rule, and bills have accumulated which
eat a large hole in the next months wag
A high official in the treasury depart
ment cites a case which is said to be
typical of a condition prevalent to an
alarming extent. The whirligig of politics
had brought about the retirement of q
bureau official who had held his position
nearly a score Of years. The position paid
$1,000 a year. The family of the official
was small and the social requirements
not exacting.
The offcial-elect reached Washington
and Immediately called upon the gentle
greetings had been exchanged the retiring
official remarked in a low tone of voice
and with tears in his eyes:
Mr.. Blank, I hope you will not be in a
hurry to tax the oath Of office To tell
you the cold truth, I have not $40 in the
world, and when I leave this room I have
not the slightest idea where my next SO
Is to come from"
The only explanation offered for the de-.
plorable condition Of clerks in Washing
ton appears to be the inability Of clerks
and their families to Withstand the CLAM
or Of social life. Whether the clerk makes
any pretense of maintaining a social po-
s.tion or not there seems to be some
thing In the atmosphere conducive to the
spending Of money.
This tendency, taken in connection with
the efforts of department stores, jewelry
establishments, and, in fact. almost every
line Of trade, to cultivate the ~penchant
for buying leaves the average clerk with
a fiat pocketbook at the end Of each
month, and with many Of them 1t Is a
case Of borrow at usurious rates Of in
terest. E
The current rate of interest, or usury,
on loan of SO to $50 for thirty days, the
prevailing period for which loans are
made Is 10 per cent. a month. The legal
rate of interest in the District Is 6 per
cent, but the law is evaded in many in
genious ways. The note given by the bor-
rover actually draws only 6 per cent. in
%terest, but previous to the execution Of
the note the borrower has paid applica-
ton fees, examination fees and other
things to make the amount equal to 10
per cent a month. At the end of the thir-
ty lays the loan may be renewed by yield
ing another 10 per cent.
Congress has attempted to render this.
species Of Shylockism impossible by the
enactment of stringent laws, but they are,
evaded in spirit, and the clerks go right
along paying 120 per cent. a year into the
Golfers of the money loaners.
Losses to the loan companies are few.
They avoid chances by requiring two sig
natures upon notes, and will not lend
money except to clerks drawing regular
salaries.