Omaha daily bee., 1903-05-24

N1AA 49, AA1g 49, 49,
spondence of The Bee.)-I spent
A this morning In a pawnbrokera
U.3AH shop. IL belongs to the city of
GS@ 'Leipsig and 1t loans out hundreds
of thousands Of dollars a year. 1t has a
capital Of less than $1O0. COO, but II borrows
money from the City Savings bank at 3k
per cent interest and charges about s per
cent to its customers who bring as Sc
curity watches, clocks, furniture, old
clothes and everything under the sun. Last
year It made about zoo, OOU loans, which on
the average would be more than one for
every family in Leipsig.
/ spent some time watching the pawn
brokers take in the goods and give out the
money. The loaning room is large and
divided in half by counters. On one side
are the pawnbroking clerks and on the
other, at the time of my visit, were about
200 men, women and children, each holding
a bundle waiting to get money upon II.
They were lined up like the single file be-
fore a theater window at an opening night.
Each dickered with the clerks, trying to
get the most for his goods.
AS the articles were placed on the counter
their value was estimated by an appraiser
who gave the owner a check for the amount
to be loaned. He took this a little further
on to the cashier, who paid out the money
oAa 60 AAhi u AChCN AnOlnGE mAn LlCn
took the goods and bundled them away on
. shelf. The amounts were generally small,
seldom more than 81. Many were for /, 2
or 3 marks. or %. so and rs cents. The
interest charged was 2 pfennigs for each
mark. or one-half cent for each Is cents
per month.
This pawnshop was established seventy
eight years ago, and since then It has
loaned out millions. Its loans increase dur
Ing hard times and decrease when the times
are good. The institution is worked for the
benefit of the people. The interest is kept
down to the lowest rate and the articles
are so valued that practically nothing is
lost. The most of the articles are redeemed,
less than 10 per cent being left for sale at
auction.
The auction was going on In another room
during my stay, and l went in to watch it.
The room was filled with bidders, and the
auctioneer knocked the goods Off without
delay. i noticed that they sold for a little
bit more than their valuation. A clock
which was marked $3.50 sold for 50 and
other things in proportion.
This pawnbroking shop is connected with
the City Savings bank, which has deposits
amounting TO about S17, OOO. 900 and new de-
posits of something like 5000, 900 a year.
1t pays about 3 per cent interest, and loans
its money out for 81 per cent and upward,
the pawnbroking branch paying sh per
cent.
The bank is not run to make money, but
In the interests Of the people. 1t has now
about 10000 depositors. and OF these more
than 10000 have deposits Of less than SIS,
5000 have between SIS and s35 and only
5000 more than $142.
Much OF the depositing is done by means
OF stamps. A man can buy a stamp fol
10 pfennigs. or less than 2h cents, and de,
post this In the penny savings bank. Such
stamps are saved until they amount to a
mark or more, when they are deposited
There are stamp offices all over the city
and one can put away his small change
into the savings bank almost as easily as
into the beer saloon.
Such savings banks are to be found IN
nearly all cities OF Germany. That OF Der.
lin has about 100 different branches; it's de.
positors number more than 10000 and IN,
deposits are about $50, 100000 Dresden has
almost half as much In its savings bank
and there are a number Of other German
cities which have as much as 100000,
each.
In addition to these city banks there ar,
private savings banks. which are TO a Ger
tain extent under the supervision OF tn,
government. In these the deposits ar,
limited by law to 5000 marks. and thu