The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-08-09
NEED PAY NO INTEREST
HOW THE POOR OF NEW YORK ARE
AIDED BY A UNIaUE ASSOCIATION.
Hebrews II, hut the Concern
Is PstrOnized by All Races-Must
Give Security and Repay.
New York Times.

New York Times.
OF all the organizations formed with a
view to aiding the poor of New York. the
most useful in a practical sense Is the He
brew GemiIath Chassodim, or Free Loan
Association. In the eleven years of its ex-
istence II has lent more than 100000 TO
persons otherwise absolutely without credit.
Not one penny of interest has been charged.
and in those eleven years the loss from poor
loans has been less thar one-half of | per
cent. Although supported entirely by dona-
tions from philanthropic Hebrews, the
benefciaries OF the association are of all
cTeeds and all races, for its bounty is not
restricted by sectarian lines.
II is an assured fact that hundreds who
are today in the possession Of comfortable
Incomes were made self-supporting by the
aid they received from this society. while
thousands have been saved from starya-
ton. Although 1t has been in existence
only since February, 1892, and sprang from
the most humble OF beginnings. it has given
aid to more than $1,000 persons. 1t started
out with a total capital OF less than one
half Of what IL will lend to a single appli-
cant to-day. and many a family that might
have struggled in vain gainst poverty has
been lifted by its aid out of immediate
want and helped on the road toward ulti-
mate comfort. In spite Of its modest capt.
than $4,000, 1t is able to lend approximately
$4,000 annually, for the aim of it's officials
IS to turn over the capital five times a year.
Inc Gem1lath ChaSsodim Association Is
not a charitable organization. IT is a de-
mocracy OF benevolence. No applicant for
even the smallest loan is permitted to feel
that he Is a seeker after aims. Almsgiving.
say the officers of the society, is an act of
charity, but a loan Is an act of friendship.
and so the society makes loans for the pur-
pose OF helping others to help themselves.
The borrower is subjected TO no humiliation
when he asks for money, although he
knows that he or his indorser must pay.
with the exception OF the hired office force
required TO give all their time TO the clerical
affairs OF the institution, the work-such as
investlgatng the standing o. indorsers-is
performed by volunteers inspired merely by
the love OF aiding their less fortunate fell
IOw-men.
Probably no great benevolent institution
had a more humble origin than the Hebrew
Gemllath Chassadom Association. Several
Hebrew business men met TO consider what
they could do best to aid the poor around
them Among them were A. Schapiro, en-
gagged In cloak trimming; NJ. Goldberg. head
OF a wholesale shirt esta blishment: Phillip
Samllson, clothing merchant; S. Epstein, a
retired merchant: the Rev. DR.. i. Zinsler
and several others. They were not wealthy,
but had fought their way up from poverty.
and they knew what an aid even a small
amount OF capital is to a man at certain
times.
Mr.. Schapiro. it is said, is the one who
suggested a free loan association, such as is
where Jews are herded together and OBJ
pressed so the society was formed, and it's
first capital came from the pockets of its
founders. 1t was less than 800.
DEVISED BY BUSINESS MEN.
The originators of the movement were
practical business men. There were many
men idling away their time in the tene-
mentS heCaIrso fhav Gould not ob+of1 -
ployment, it was urged. who might be able
to start out in trade in q modest way If
they could get a little money. AT first they
might have to begin with pushcarts, selling
fruit or peddling notions. until they could
rent and stock stores; but even this was
better than depending on the bounty of
others. Again, there were many who re-
sorted to the pawnshop and could not pay
the exorbitant interest, and were swamped
under the burden Of usury.
interest. but to see to II that the borroyer
paid back the principal. The scheme Of
lending was TO have indorsers of means
sufficient to guarantee the return of the
loan sign with the maker of the note. In
the second place the money was to be re-
turned in trstallments. the first payment to
be made as a rule, within two weeks of
the date of making the loan. and each pay
ment consisting of at least one-tenth of the
sum borrowed. At the outset the associa-
ton. IN order TO distribute It's small capital
among as many applicants as possible.
could not lend more than from g to s. to
each individual.
The plan looked like a good one, provided
care was taken in accepting the indorsers
and the beneficiaries were honest. But
where was the money to come from? Then
the founders started out to add members
to their organization. Ordinary membership
was TO cost s. a year; if a man wished to
be classed as a patron he had to pay from
$40 TO $25 a year: life membership could be
obtained by a payment of 800. And besides
this there were voluntary contributions
from charitably disposed persons.
The association grew. But the number
of APPLICATIONS for loans increased faster
than the cash In the treasury. Not a dol
lar was being lost, and on every day when
crowded with persons who came to pay in
their installment OF 10 per cent. of the
amount borrowed. Besides, it was found
necessary TO lend more than 50 to a man
In order to enable him to help himself.
So DR. Zinsler was sent to see Jacob H.
Schiff. the banker, and solicit aid
AL this sounds good. SAID Mr.. Schiff
after he had heard about the work. But
/ shall nave to investigate 1t to see whether
you are really achieving any practical re-
Mr.. schiff sent a man around to the Of
flee of the association. The report was more
than satisfactory -
"How much money has the association %
Mr.. Schiff asked DR.. Zinsler.
About five hundred dollars replied DR..
Zinsler.
eco out and do some more hustling.
When YOU get one thousand dollars come
and see me- said the banker.
There was some lively scurryfng for MEM
berships and contributions, and in a short
tine IL was reported that the association
had Loo. Mr.. Schif doubled the amount,
and with its capital of 5000 the Gemilath
Chassodim Association began TO lend the
sum of so TO applicants. The society grew
and money kept coming in. but 1t would
nave gone out faster than il came in II all
tire worthy applications had been granted.
The officers felt their helplessness keenly.
and about a year later they went again 10
Mr.. Schiff, and he gave 1850. Tn maxi
mum of loans was raised to SIS. later to
500. and now the limit has been placed at
500. Mr.. Schiff last January contributed
g. 500 more. and among the larger sums the
society has received as a gift was sz'ooo
from the late Leonard Lewisohn-
MEMBERSHIP WORK
But. after all. the great work has been
done by the rank and file in the organiza-
ton. In addition TO more than 5000 dues
annually, the menber have been free with
donations besides. and they have solicited
gifts from their friends. IN this way-by
the hardest and most enthusiastic work
the capital has risen from less than 500 to
more than ST. 600. Last year the associa-
ton was able to lend s26S.240. In the first
raoo ~ Iont G1e1 oQS m & 6y