Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1906-03-31
HOLLANDS LOAN BANKS
City Pawnshops Form Part Of
Dutch Everyday Life.
PLAN TO PREVENT USURY
Strong Competition. From Private
I.oaning Concerns as Many Prefer
These - Officials and Statesmen
Sworn 10 Keep Nameof Customers
Secret.

Secret.
In Holland the corporations OF
large cities have themselves become
pawnbrokers in competition with the
many private concerns. In the coun-
try and In villages the want OF these
loan establishments is not felt be-
cause there the people know and
| help each other when In difficulties.
In the large towns people very often
do not know their neighbors, and 1t
is sometimes difficult for even the
most frugal to be prepared for every
emergency. A workman generally
obtains his maximum of wages at the
age of 20 years. He usually marries
young and his expenses increase with
the growth of his family, while his
wages remain stationary. Illness, an
accident or some unforeseen event
will make him exceed his income and
force him to part with some object OF
value to meet his expenses.
| To save persons of this kind from
extortion the municipalities opened
the so-called loan banks. In which a
| fixed rate of interest was charged.
| At first these banks were quite sue
| cessful and some of them more than
repaid their cost Lately. however.
| there has been such falling of In
the number of customers of these In
| situations that at first sight 1t would
appear to prove that the prosperity
of the people had marvelously In
| creased were 1t not for the ominous
| truth that the number of private
pawnshops Is also increasing An
other thing which shows that the
average prosperity OF the clients Of
| these banks Is on the wane Is that
the value OF the articles pawned is
becoming less from year to year.
This indicates that the people are
| gradually disposing Of their valua-
| bles--their antique silver and delft
ware and their family heirlooms. AL
most the only objects of value that
are now pawned are bicycles and
sewing machines
| Yet the people seem to prefer the
private pawnshops with their high
rates of interest The first reason
| given Is the very human one
that everybody likes to talk over
his troubles with some one who
shows little sympathy, even If 1t is
| feigned. 1t appears to the client that
he can work on the feelings of the
shopkeeper and induce him TO give
| more for an article than he first in
tended. Another reason Is that the
municipal loan banks are open only
until o'clock on Saturday evenings,
/ and not at all on Sundays, while the
private shops do business at any
/, hour that suits the clients. The aver
| age municipal loan bank has no
branch offices in the suburbs and
outlying districts. Still another rea-
son lies in the development of the
credit system Formerly the pawn
| shop was about the only place where
one could get an advance of money
on property, but now there are nu-
merous banks of credit that make
loans even where the security given
| Is small.
It Is quite evident that the munich
pal loan bank needs to be established
on new basis. 1t is proposed that
| the state shall acquire the municipal
| pawnshops. giving them an inter-
communal character somewhat like
that of the postal savings banks.
This system would be Of great adj
vantage to customers as in the case
of removals to other towns the pawn
tickets would be redeemable every
where. Another advantage would be
the lowering of the rate OF interest.
Municipalities get money at per
cent, while the state can get II at 2
to ~ per cent. On articles valued
at from l to 10 forms Gao cents $4)
the rate the borrower now has to pay
Is 9 per cent; on articles worth from
81 to $35, 8 per cent. and on articles
valued at more than s36. per cent.
i Everything placed In pawn In the
municipal loan bank Is insured
articles pawned ninety-seven on an
average, are redeemed, while the
other three are sold. Fifteen months
is the maximum time for pawn TO
remain in the bank. After that It's
sale is advertised In all the news
4 papers of The Hague and In one out
side paper. According to law, the
burgomaster of the town should take
charge of the public auction In per-
son, but, as a matter of fact, that au-
gust gentleman delegates the duty
to some lesser official. II the article
receives a higher price than It was
pawned for the owner gets the diff
\ ference, but 1t brings less the bank
has to stand the loss.
4 India Ruhber Trees Yield.