The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-09-22
GOVERNMENT PAWNBROKTNG.
French Rate 10 : Per Cent. In Some
Cases No Interest d CHARGED.

rbO1nCu notC - G1 VI vi SOuuO
Cases No Interest ls Charged.
With mono Of the timidity or the hesita-
ton or the shamefaced aspect 81 our
user Of the pawnshops does the Partisan
perform his journey to the money lender.
Far from feeling, after the door has closed
behind him. hat he il in the country Of the
enemy. the Frenchman can have his patri-
otto ardor At its highest, for over the pawn
shop flies the ~tricolor OF France instead Of
the gilded balls. and the guard AZ the door
is q helmeted. white gloved Republican
guard. The customary whispering a. the
borrower exchanges goods for cash 10
unknown. Borrowing In . business transac-
ton with the Government.
Ii II not out Of appreciation OF these
conditions. OF course. that 1000 people
daily visit the municipal pawnshope: but
their business trip includes a knowledge
Of the fact that whatever profits will accrue
to the establishments will finally 60 back to
the people.
There il no haggling. says a writer in tho
Philadelphia Record. On jewelry four-fifths
OF the alue Of the object can be secured;
on other articles. two-thirds. The inter-
est Ia 7 per cent. per annum. Should a
borrower be in the unfortunate position Of
having paid interest for many years without
being able to release the article the au-
thorities will return it. When interest has
not been paid the object in question goes
10 the auction. and then the righteousness
OF Paris pawnbroking is decidedly in
evidence. For after III sale has been con-
ANIMATED and the original loan and inter-
sat are deducted from the money secured
by the sale the surplus goes TO the borrower.
should the none remain unclaimed 10 10
turned over to the Paris hospitals, and.
ouriously enough. these hospitals profit
20 the exent Of 100, 900 francs a year.
When one has made a study Of French
pawubroking laws II Is easily seen that the
hrst object served by these laws 10 to pro-
tect people who want immediate money
advantages. France land we may say
France, for municipal pownbroking ia 10
cares little that many transactions are car
ried on at q loss. In one year of some
1000. 600 pawned' articles In Paris 1000, 900
were effected At a loss, since no auction
will bring A complete return on small OBJ
iects. or course this Ia Offset by the re-
turn from loans on the other million arti-
cles. but should there be a deficiency the
municipality has no hesitation i'm going
down in it's pockets. and thus has an in
direct mode OF taxing the well to do to sup
mort the needy. Since no country has
raised Q cry against charity. this. as one
form OF 10, can be passed without criticism.
The fact is. money is lost on all loans under
20 francs.
The capital Of the pawnshops' consists
Of leRacies. gifts and subventious Of the
state. Department or the Commune. Dc
c~aeionally. as At Grenoble and Montpellier.
the establishments are so well endowe ed
that no interest 10 charged. Paris, for no
u~nfathomable reasons does the largest
pawnbroking business on the continent.
3I.OOO, 100 francs being the average yearly
pledges and $1,000 900 francs redeemed.
The total revenue In 1000 .Ooo francs. the
expense OF management 100000 francs.
the interest on capital about l,5oo. 600
france. and the net profits 10000 francs.
This was the state Of affairs last year.