The Montgomery advertiser., 1905-08-29
TUESDAY. AUGUST %. 1905.
LENDERS AND BORROWERS.

The Indianapolis Sentinel calls atten- ton to the wide difference between the rich and the poor when it es-to bor- rowing money. It notes that the rich and the well-to-do can get all the mon Ney they need at little more than a nominal rate of interest while poor man, if matters not how honest and de- serving he may be must resort to the loan shark, of whom it says;
 By his methods of hunting business he reaches not only the immediate needy, but tempts to financial perdition persons who might otherwise make shift to tide over an embarrassment, The SentineTs account shows that the poor pay from 40 to 80 per cent. per an- flun, and frequently repay the sum re- ceived several times over and are stili enmeshed. Persons better off get all the money they need at from per cent to 8 per cent. per annum. It seems that there is cause here for serious thought. Society is interested in pro tecting its members from extOrtion that leads to the poor house. Some provis- ion should be made for relieving the distress of the worthy. but unfortunate. under conditions which will give them a chance to lift themselves up. Society cannot much longer shirk this respon- siblity. There must be restraints and regulations placed upon these dealing rh, wtn the hoG PGohh he undep ebe of the law and their transactions should be accessible to the authorities. Exist ing conditions are little short of mon- strous and a demand should go up for their amendment.
 The ShyIocks who are to be found in all cities are practically law unto themselves when a poor man wants money. Usually the latter has no se- curity to give and must submit to whatever terms the lender chooses to dictate. Even if he has personal prop erty of some kind to pledge he is little better off, for the interest charges are about the same.
 Just how this hardship can be reme- nied is a question not easy of solution. Almost every State has laws against usury, but of what avail are they? The money lender can find some way to get around the law and will continue his system of financial phlebotomy in spite of the laws. One would think 1t an easy matter to enforce the laws against usurious interest, but It Is not. At least. 1t is not done. and one of the main reasons why these laws are not enforced is because the victims refuse to make complaint. Having been bit- ten they keep their lips closed.
 The Sentinel suggests for it's own city a remedy that would be good anywhere. It is that "a loan company be formed to meet the demands of worthy borrow CTS at reasonable rates of interest" This would remedy the evil beyond a doubt, and in almost any city there could be found men able to form and conduct such a business. company which would lend money at legal in- terest to the worthy poor would find it a profitable business. we have no doubt. Such company could require and obtain some form of security which would afford ample protection for the small sums they would be required to lend. It would not only be a good business but would be genuine charity. It would help the poor and needy who will neith- CT ask nor receive aims, but who are as genuinely deserving as are any of the rich. Still, we doubt if there will be any such organizations. and if The Sentinel succeeds in getting one estab- lIshed we shall be glad to give 1t some free advertising.