The Press., 1907-12-04
STATE PAMMSHOPs.
French Rate ls 7 Per Cent-Somotlmes
 No Interest Is Charged.

French Rate ls 7 Per Cent-Somotlmes
 No Interest Is Charged.
 With none of the timidity or hesita- tion or the shamefAced aspect of our user of pawnshops does the Parisian perform his journey to the money lend CT. Far from feeling. after the door has closed behind him. that he iS in the country of the enemy. the French man can have his patriotic ardor at its highest for over the pawnshop flies the tricolor of France instead of the gilded balls. and the guard at the door is heImeted. white gloved republican guard. The customary whispering gs the borrower exchanges goods for cash Is unknown Borrowing is a business transaction with the government.
 1t Is not out of appreciation of these conditions. of course. that 1000 people daily visit the municipal pawnshops. but their business trip includes a knowledge of the fact that whatever profits will accrue to the establish ments will finally go back 70 the peo- pie.
 There is no haggling. says writer In the Philadelphia Record. On jew elry four-fifths of the value of the ob- ject can be secured; on the other arti- cles two thirds. The interest is per cent per annum. Should borrower be in the unfortunate position of having paid interest for many years without being able to release the article the authorities will return 1t. When inter est has not been paid the object in question goes to the auction. and then the righteousness of Paris pawnbrok ing Is decidedly in evidence. for after the sale has been conSummated and the original loan and interest are de ducted from the money secured by the sale the surplus goes to tn, bor rover. Should the money remain un- claimed it is turned over to the Paris hospitals, and. curiously enough. these hospitals profit to the extent of 1OO,- 900 francs q year.
 When one has made 3 study Of French pawnbroking laws it is easily seen that the first object served by these laws is to protect people who want immediate money advantages France (and we may say France. for municipal pawnbroking is to be found in every corner of the couptry) cares little that many transactions are car ried on at loss. Tn one year of some 100000 pawned articles in Paris 100000 were effected at loss. since no auction will bring complete re turn on small objects. Of course this Is offset by the return from loans on the other million articles. but should there be a deficiency the municipality has no hesitation in going down in it's pockets and thus has an indirect mode of taxing the we'll to do to support the needy Since no country has raised a cry against charity this. as one form of 1t. can be passed without criticism. The fact is, money is lost on all loans under 20 francs. e"-'
 The capital of the nawnShops con sists of leg,icies, gifts and snbventiORs of the state. department or the com mune Occasionally. As at tirenoble and Montpelier. the establishments are so well endowed that no interest is charged Paris. for no mfathomable reasons. does the largest wnbroking business on the continent. 34.0OO tNhl francs being the average yearly pledges and 3OOOO.OOO francs redeem. ed. The total revenne is 4.OOOONo francs, the expense of management 1.5OO.OOO francs, the interest on capital about 1.5OO. .OOO francs and the net prof it's 15O.OOO francs. '