The Savannah morning news., 1903-10-10
..MnNEY SHARKS"

"MONEY SHARKS"
Readers Of some of the Atlanta news
papers have recently had their feel
ings considerably narrowed by reports
bf yhe doings of so-called money
sharks" or usurers; money lenders
and instalment-house dealers who
charge outrageous rates of interest
and finally push their victims to the
wall and dispossess them of their small
property. 1t is an easy matter to get
a human interest story out of
money shark" case; and such cases
are numerous in every considerable
city We have had experience with
the Sharks" in Savannah, and it has
come to our knowledge that they are
an exceedingly rapacious, bloodthirsty
| breed with heart of ice and stomach
of cast iron. If ever the milk of human
kindness ever existed in them the fount
has long since dried up, leaving them
! incapable of the higher emotions and
| devoted only to their usury. The mis-
fortunes and sufferings of others are
their opportunity; they are the vul-
cial world, fattening on what would be
| scorned by higher minds.
Yet it must be admitted at the out
set that the money sharks" and usur-
ers exist because there is a demand
for them. There are laws on the sta
tute books, stringent laws, prohibit
ing under severe penalties the charg-
To-, aI,I
! rate of interest on money loaned. But
those laws are disregarded as wholly
as If they were never dreamed Of 1t
is not in the least uncommon for a
rate of 10 per cent month, and some
times much more, to be charged those
who are in such a position that they
cannot help themselves. We have
known of cases in which the interest
charged, and paid, was at the rate
of not less than 1000 per cent. a year.
We have known cases in (Which the
| principal has been paid five to ten
times over within a twelve months,
and at the end the debt was larger
than at the beginning. We have in mind
a case in which hard working seam
stress went into commissions and died
upon the seizure and sale by shark
of all her household effects and sew
| ing machine, worth ten times her debt,
because an instalment of a few dol
lars on debt Of less than $25 had not
| been paid promptly.
Nevertheless, as we have said, the
shark" exists because there is a de-
mand for him. There is nothing in our
social system that can be made to take
his place Our reputable financial in
| situations have no provisions for small
loans to the poor on pledges of per-
sonal property or personal honor. The
| laboring man or woman temporarily
embarrassed by sickness or other mis-
| fortune cannot go to the bank and
borrow 81 or S. with which to tide over
a hard place. Such persons must go to
the shark" If there is anything to
be pledged the shark will make the
| loan; but he demands big pay for it.
! In some instances the loan is a boon
that is we'll worth a big bonus, but
such cases are exceptional 1t is to
| be kept in mind, too, that the money
| lender and the instalment dealer take
big risks. The population with which
they deal is, commonly speaking, as
unstable as water. Many people who
seek loans are dead-beats who never
intend to pay back They will prom
Use any interest to get the money they
ask. and then drift away never to be
heard from again. The shark" claims,
with some show or reason, that he
| is obliged to make his rate of interest
very high in order to secure himself
against his losses. Thus the unfortu-
mates who are honest are made to pay
for the unfortunates who are dishonest
Admitting that the usurer is a neces-
sary eVil-and if he were not neces-
sary we should not be bothered with
him-what are we going to do to get
rid of him? Something better in his
place must be provided before he will
go. Students of sociology have for
years been trying to find a substitute
for him, without success. A number
of philanthropic efforts along that line
have been started, but il one has sue
ceeded we have not heard of it.