New-York tribune., 1906-06-03
THREE BALLS ABROAD.
Foreign Pa5cnshops Designed to
Benefit Poor.

The methods Of conducting the business OF pawn
brokers different in Europe from those In this
country There the object is to furnish the poorer
classes of the community with facilities for bor-
rowing small amounts of money easily the
curity Of personal belongings and to protect than
in their rights of redemption 10 every extent pos
sible. In the United States the borrowers frem
pawnbrokers are. TO a great extent, placed at the
mercy of the lenders. and they have little
dress for any wrongs which may be inflicted
them by the holders of their goods security for
small advances.
In Germany the Royal Prussian pawn Office was
established in 1884, under control Of the Royal
Bank. 1t is government institution. and It's pur-
pose is the promotion Of the common welfare. All
profits from the business done through it. any
surplus which remains, after charging moderate
rate Of interest advances and deducting all
costs of administration. devoted TO charitable
purposes.
1t was established by Cabinet order signed by
Emperor Frederick William. The institution will
advance from one-half to two-thirds Of the esti-
ted value of all goods offered in pawn. such
movable effects. which not expressly prohib-
tied including jewels precious stones. gold silver.
copper. brass tin and similar metals, articles OF
clothing and other useful articles for the storage
cf w...ch great space is required.
Persons who desire to borrow on such goods, il
they are not personally known 20 the officers of the
pawnshop. must establish their Identity before
they obtain loan II the pledge is not re-
deemed at the proper time it Is sold, ana II a
larger amount is secured for it :han the sum ad-
vanced the excess is returned TO the party who
pledged Il. A pledge may be redeemed by the
pawner at any time before the contract time
pires but interest must be paid for at least
month.
The rate Of interest on money loaned on pledges
which the royal pawn office may legally charge is
per cent a month. or - per cent year. On easily
negotiable securities, however. such city. state
or government bonds It may charge interest at
the rate of per cent year. but no less. in other
words, the royal pawn Office IS not permitted TO
enter into competition with the banking houses.
Among the classes who borrow money at the royal
pawn office are merchants, artisans. tradesmen,
capitalists and property owners. artists actors,
military men and people Of all descriptions The
feeling Of shame which prevents the higher classes
Of Americans from patronzing the pawnshop has no
counterpart in Germany. 1t is locked upon as an
agency for supplying the needs CT an emergency.
and its facilities are used whenever occasion calls
for them. In a great majority Of the Prussan
cities Of more than fifty thousand inhabitants,
the existing municipal pawnshops were founded in
the first half Of the nineteenth century.
The municipal pawnshop system of Paris, France,
is a venerable institution. having been founded in
1577. II is distinct bureau of the municipal gov
ernment and includes in its control three members
Of the committee Of public charities, three private
citizens and the Prefect of Police 1t has main
Office and twenty-one branch Offices 1t is admin
istered TO fulfil distinctly phlanthropic and
ful purpose, in enabling persons Of limited means
or those overtaken by misfortune TO obtain, at a
not excessive rate of interest, money to meet
pressing necessities. without the sacrifice Of their
sef-respect or the necessity OF falling into the
hands Of extortionate usurers, who in many coun-
tries prey rapacously on the victims Of poverty
and misfortune
The statistics Of 1904 show that during that
year 1.449, les loans were made jewery clothing
bicycles etc, the average amount being Sc 49, the
CraTc 20 0e1 In,
terest charged amounted in all to 8 per cent on
jewelry articles Of clothing and household equip
ments and Ga per cent stocks bonds and other
securities deposited collateral. Articles for
feited by nonpayment failure Of renewal are sold
at auction by class of special auctioneers. of
whom there are fourteen in different sections of
the city If greater suTp IS paid for the article
than that advanced on it the owner may claim and
recover the difference. in 1904 the profit Of the
Offices above expenses amounted 10. 1892 Az which
was turned 10 the fund for the support of
municipal hospitals.
Tho French pawnshop is an official monopoly, no
other pawnhroker being allowed to exist, or do
business within the limits of Paris. But there is
class Of outside operators whose traffic forms the
only really sinister feature OF the whole system.
These are the brokers dealers in pawntickets
ns,ped rti@is wants more money Than he
has been able to obtain at the municipal pawnshop
which does not exceed one-third Of the estima led
value OF the article pledged. He goes With his
ticket 10 the broker. who lends him 20 per cent of
the face value, at a rate OF interest of from to
per cent month, taking lhe ticket as pledge
II the interest is not paid when due the broker
redesms the pledge. which he sells at of the
auctions and thereby reaps ia large profit Various
measures have been proposed correct this evil
but nothing satisfactory has yet hcen devised.
The pawnshop system OF Belgium is similar to
that OF Paris, on which It is modelled. The pawn
shops OF the cities organized under the direc-
tion Of the municipal councils. which approve the
budgets and accounts. When the funds short
the administration has the right 10 borrow from
the public charities and hospitals or from the
munal administrator, paying for such loans an
annual interest OF Siz per cent The net profit OF
| the Brussels pawnshop for 1900 S6.4cl No OBJ
months from the time it pswned