Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-05-23

Special Correspondence of The Evening Star.
LEIPSIG.
I spent this morning in pawnbroker's
shop. 1t belongs to the city of Leipsig
and it loans out hundreds of thousands OF
dollars year. 1t has capital of less
than a hundred thousand dollars. but 1T
borrows more from the City Savings Bank
at 3A per cent interest and charges about
per cent to its customers who bring as Sc
curity watches. clocks furniture, old
clothes and everything under the SUM- Last
year it made about two hundred thousand
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, We're
about 200 men. women and children each
holding bundle waiting to get money upon
II. They were lined up like the single file
before a theater window at an opening
night. Each dickered with the clerks, try
ing 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 check for the amount
to be loaned. He took this little further
on to the cashier who paid out the money
took the goods and bundled them away on
shelf. The amounts were generally small
seldom more than dollar. Many were for
one. two or three marks or twenty five
fifty and seventy-fve cents. The interest
charged was two pfennigs for each mark
or one-half cent for each twenty-five cents
per month.
This pawnshop was established seventy
eight years ago and since then 1t 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 ar
tcles are so valued that practically nothing
is lost. The most OF the articles are re-
deemed, less than 10 per cent being left
for sale at auction.
The auction was going on in another room
during my stay. and 1 went in to watch it.
The room was filed with bidders and the
auctioneer knocked the goods off without
delay l noticed that they sold for little
bit more than their valuation. A clock
which was marked 50. 30 sold for 49, and
other things in proportion.
The City Savings Bank.
This pawnbroking shop is connected with
the City Savings Bank. which has deposits
amounting to about ST, OOO. 600 and new de-
posts of something like $1,000 900 a year. 1t
pays about per cent interest and loans its
money out for 31a per cent and upward,
the pawnbroking branch paying 3h 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.
$4,000 have between SIS and $685. and only
80 600 more than s142
Much of the depositing is done by means
of stamps. A man can buy a stamp for
10 pfennigs. or less than "a cents, and
deposit this in the penny savings bank.
Such stamps are saved until they amount
to q mark or more when they are deposit
ed. 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 saloons
German Savings Banks.
Such savings banks are to be found IN
nearly all the cities of Germany. That of
Berlin has about 100 different branches; Its
depositors number more than half a mil
lion and the deposits are about s50,OO0,O 600
Dresden has almost half as much in her
savings bank. and there are number Of