The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1906-06-29
Not EquaIed for Greediness by
Shylocks Of Any Other
Cities.
DEVOID OF CONSCIENCE
AZ tho luxurious Loan Takes the Form
of q Sale With the Privilege of
Buying Back, the Borrower
~. Has No Protection.
From the Kansas CITY Star.

SA> AAAAAokS SASy A0A
One night last week in gay Paris,
we sat at Maxim's studying with re-
spectful admiration the jewel-spangled,
perfumed high world of feminine gall
lantry, gilded youth and parasitism, our
attention was called to a velvety-eyed
young man. He was in immaculate
evening dress; and on his fingers he
wore rings of price. He a a dream
Of a mustache and a tired, gentle look.
II must be a m~illionaire!" we said.
You are mistaken some one aid
who knows it all. Behind that young
mans air of ~high-toned imbecility
there hides an agile mind, a mass of
exact information, and a wonderful
faculty for prompt decision. He is S.
C.. the london agent"
Who is S. c., the London
agent?" we asked.
He is the confidential friend OF half
the high cocotterie of Paris" came the
answer, and he is treated like a dean
old college chum by many of the sports
We see around us. Look at Lame smil-
Ing at him! In a word he gets them
liberal loans upon their jewelry when
they need it,"
This is how we came to learn tina
Parisians are pawning their jewelry in
london.
A New Profession.
THAT young man has invented a new
profession said our informant. He
considered the French governmental
pawnshop system and it's crying illiber-
ality. He said to himself: What we
need in Paris is a first class London
p~awnshop." And. as the mountain
could not come to Mahomet, Mahomet
had to go to the mountain. He made
arrangements with one of the strongest
London loan offices and spread the glad
avs him 100000 a year."
How" We asked.
"When n of these beauties gets
into financial difficulties, she runs with
her jewels to s. G.. He will lend
her 25 per cent of what he deems their
will express them to his London loan
office. And the next evening he is able
to hand over to the grateful girl The
London pawn ticket n the balance of
the cash."
And the aristocratic young mcn?'
we asked.
ut often takes a long time to find a
foreign heiress. When a youth of noble
family has run through With all the
portable family property his father be-
fore him did not get ava with, and
when he has borrowed up to his limit,
q little deal in jewelry now and then
may prove a godsend. Young men of
noble family are always buying jew
elry-rings, scarf pins. bracelets, neck
laces-''
And S. G. sends them to Lon
don for them?"
"Just so,' answered our informant.
The Mount of Piety.
1t vas in this way that i began look
ing VI the French government pawn
shop system, an institution claimed TO
be so admirable in newspaper and mag
AZine articles that America has thought
Of copying it. Very curiously, 1 had not
looked round long before I found a
Paris municipal counselor With facts in
hand ready to demonstrate that. In
spite of all its boosted safeguards, it
drives borrowers into usury and final
loss of goods.
The theory of the French govern
mental pawnshop-called the Monte de
Piete, or 'Mount of Piety,' an anclcnt,
fiowery name-is a good one. Its prac-
teal failure is the old story Of admin
1strative ruts and red tape.
The old m%ono2olistic corporation,
whose charter dates back to the year
l777 (when it was "reformed'O is philan-
thropical in aim. Its capital is not gov
ernmental money, but belongs to stock
holders willing to accept 3 per cent. a
year on safe investment, but always
hoping for and sometimes getting more.
Such a stakeholder is the government
sustained monopolistic Coincide Fran
cause.-the state theater-With 1000. 900
francs of it's funds thus invested. Then
the caDlldl OIL lue MoIlC uc lele 10, VI
course, loaned out by the management
at a higher rate of interest to people
who are fortunate enough to have
something to pawn.
A Growing Monopoly.
1t is q monopoly. No one else may
open a pownskop in Paris-which eX-
plains why s. G. sends the
things to London. 1t is philanthropical.
1t may not charge more h s per
cent, Il year interest. The icket which
the clerk will hand you with So for
your new $40 overcoat bears the words:
"French Republic-Liberty, Equality,
Fraternity. Mont de Piete"-not reli-
in the sense of natural duty and COM
passion; while in the mountain" you
might think to find the reference to
putting up"-e. g., Il have put up
my watch!" But it is not so. Tho
French say: 81 have hung up my
watch" the reference being to q INa1l
driven into the wall.
The 8 per cent. a year charged by
the Mont-de-Piete is made up of Z per
(. cent. interest and 1 per cent. fixed
tax" supposed to insurance, etc
The most fatal of these 80 forths,'
according to the accusing municipal
counselor, is that resulting from the
employment of sworn %valuers, whose
establishment in the Mont-de-Piet
dates back to the decree of Louis XVI
in December, lN7.
At that date, when personal property
values luctuated more than they do to-
day, and when names of intercommuni-
cation were primitive, the ancient Cor
poration of Sworn Valuers of the Seine
was asked to appoint members to esti-
mate the value of al articles offered te
the Mont-de-Piete.
1t may have answered at the begin
ming. Today it does not. Today four
teen such officers sit behind the wick.
cts of the central pawnshop n its
various local branches. They say;
"Three ~francs!!" Ten %francs!" "Eighr
hundred ~francs!" And from their de-
cision there is no appeal. For thi:
service the law allows them 10 cent.
per 100 francs G20) Of loan, as "righr
OF appraisement."
All O~Nercoats 81.
Now, as in return for this real snap
the law further s%tipulates that tn,
sworn valuers shall make good any AM
all losses which nay result from over.
appraisement. their natural tendenc,
is to value all objects very much be
low what an ordinary pawnbrokel
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