The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-09-23

over emergencies and whose pledges are
sometimes not redeemed for a good many
months, if ever. In all the Offices OF the
society, however, when unredeemed pledges
are sold at auction, II the amount they bring
exceeds the amount loaned on them the
difference, minus interest and compassion,
is refunded to the owners. The rate OF
interest we charge on loans Is 1 per cent.
a month on sunni up to $3.50, and 10 per
cent. a year on $3.50 or more. Fol- a shorter
time than one month IA per cent. u
charged o. amounts over Is.
This rate OF course, ia considerably under
that charged by the pawnbrokers, who AJAX
3 per cent. a month for the nrst six months
on amounts Of 500 and under and ? per cent.
a month for the next six months
When asked IL the multiplication Of loan
Offices In thisc city was not an encoura cement
to shiftlessness and reckless spending, the
executive manager Of the society replied
promptly.
THAT is a question:" he said, I'VE are
asked every day by persons who have never
given much time TO studying the problem
Of how to provide organized credit for the
Door, who, to say the least, surely need IL
az much al the rich. There are banks for
the wealthy who can a over the sort OF
collateral accepted BS banking institutions
collateral such IA the poor cannot furnish.
The sort Of collateral the poor have to offer
IL not accepted at the wealthy mans or
ganized loan associations. Therefore he
must fall back on the pawnshop with its
ruinous rate OF interest-Or at least he was
obliged to do this until the PrOvident Loan
Society put in operation a plan to give him
organized credit at rates equal to honorable
banking rates.
"The idea was not original with this
society. A writer not long ago called at
tention to the fact hat nearly 1900 years
position with which the Provident Loan
Associations Of the United States are now
striving to invest IL. This writer said that
Ii Hung Chang owned several pawnshops
and that in China II Ii considered no dis
grace to e, to a pawnshop FOR money
giving clothing as security.
THE main handicap to the usefulness
OF the society is the fact hat more capital
Is not available with which to place other
offices in localities easily accessible to the
classes who form the great army OF borrow
ers; for with most Of these persons con-
venience Of access is even more important
than a low rate Of interest.
As TO the question whether a m~ultiplica-
ton OF these Offices does not ~coura
shiftlessness | have this, to- my mind, con-
Vincing answer:
From September, 1904, 10 September,
1905, Of the 80, $50 900 loaned by the society,
only 1 lis per cent. was not repaid. And
let me add that in ten years OF close dealing
with the poor l have not found that this class
IL more shiftless or reckless, more given 10
sJ1andering it's subs ance and taking
chances than are men who supposedly are
much better of-that Ia, who appear to have
a much larger income.
NO, the benevolent purpose OF the
society will be the better effected the faster
the number OF our offices can be increased.
More Offices, rather than a lowering Of the
rate Of interest, even ~suppOsing that were
feasible, in what the o o needs"
For those Interested in the financial
workings Of the Provident Loan Society
-.u A.,-.. .yks-k - e. eL--m
selves:
Capital IN issS, saIO.OOG In 1905, ss,seO.oO1
Amount loaned Gus " tsoS, ss77SAA, on soSOa
pledges.