Greene County herald. (Leakesville, Miss.) 1898-current, 1905-03-03
THE PRovIDENT LOAN.
A Society to Aid Deserving Poor by
Loans on Personal Property.


| The Provident Loan society of New
York was incorporated in 1894, "f0i
the purpose OF aiding such persons az
the society shall deem in need of pc
at interest, upon the pledge of per
sonal property" 1t was organized by
number Of New York City's leading
citizens, including James Speyer, Seth
Low, Abram s. Hewitt, Otto t. Ban.
nard and Solomon Loeb. 1t charges
l percent interest per month on loans
OF less than $3.50, or at the rate of 10
percent per annum on loans exceeding
that amount; and these rates are rec
ognized as somewhat philanthropical,
considering the class of securities of
fered, many of which, such as furs,
being likely to deteriorate in value un-
less cared for at considerable expense
1t is true that the patrons of the
Provident Loan have been mainly OF
the better class, the loans averaging
about $50 each, but it is the societys
plan to extend it's usefulness to less
profitable business in poorer sections
of the city, making more loans on
clothing and less desirable pledges.
We must not forget" he adds, that
the purpose of our incorporation is
philanthropical, so far as is consistent
with the full measure of strength and
safety"
BY the treasurer's report it appears
that 1922 pledges were received in
1903, on which $5,576,091 was the
amount advanced. The report further
shows that the funds employed at the
end of 1903 amounted to $2,647, 12118,
and it may be said in general way
that the capital in actual use is equal
to about one-half the annual sum total
of business. The gross earnings aver
age about IL percent, out of which in
terest on the society's bonds, certifi-
Gates of contribution and temporary
loans from the banks and trust COM
panies, as well as the general running
expenses of the society, are paid. 1t
should be said here that the society
is not permitted to pay more than the
legal rate of interest to any investor
in either its bonds or certificates, or
for the use of any funds whatever, all
surplus at the end of the year becom-
ing part of the general fund, which
has increased $233, 621,18 since the in
stitution was founded, by which it will
be seen that philanthropy is not nee
essarily administered at a loss. There
are also certain benefits of the Provi-
dent Loan which cannot be regarded
in the light of philanthropy. Numer.
GUS well-to-do persons take advantage
of the fact that no storage charges
are made, and during the early sum-
mer pawn thousands of dollars worth
of furs, overcoats and silverware for
ridiculously small sums, thereby OBJ
tanning for a few cents safe and care
full storage, besides the use of the
money borrowed Thus fine fur coat
pawned for 81 in June is stored and
cared for until November for the alb
surd sum of ten cents.
The "unredeemed pledge sales of
the Provident Loan are held at an auc-
ton room on upper Fifth avenue, and
usually leave balance in favor of the
pledgers, comparatively few of whom
ever call for it, SO that there is con-
stantly growing fund resulting from
the residue of these sales.-F'rom Al
bert Bigelow Paine's "At the Sale of
the Unredeemed," in the Century.