The citizen. (Frederick City, Md.) 1895-1923, 1908-01-10
STATE PAWNSHOPS.
CHI Rate Is Per Cent-Sometimes
No Interest Is Charged.

No interest is Charged.
With none of the timidity or hesita-
ton or the shamefaced aspect of our
user of pawnshops does the Partisan
perform his journey to the money lend
er. 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 helmeted. white gloved republican
guard. The customary whispering as
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 q
knowledge of the fact that whatever
profits will accrue to the establish
ments will finally go back to the peo-
pie.
There is no hagglng, says a writer
in the Philadelphia Record. On jew
elry four-fifths of the value Of the OBJ
ject can be secured; on the other arti-
cles two-thirds. The interest Is 7 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 it. 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, -Sor after
the sale has been consumnVted and
the original loan and interest are de-
Quoted from the money secured by
the sale the surplus goes to the bor-
rover Should the money remain I'M
claimed it is turned over to the Paris
hospitals, and. curiously enough, these
hospitals profit to the extent of 100.
900 francs year.
When one has made a study Of
French pawnbroling 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 country cares
| little that many transactions are car
ried on at loss. In one year of some
100000 pawned articles in Paris
| 100000 were effected at a 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 its
pockets and thus has al indirect mode
of taxing the well to do to support the
needy. Since no country has raised a
cry against charity, this, as one form
Of it, can be passed without criticism.
| The fact is, money is lost on all loans
| under 20 francs
The capital of the pawnshops con-
sists of legacies,, gifts and subventions
Of the state, department or the COM
mune Occasionally, as at Grenoble
and Montpelier, the establishments
are so well endowed that no interest
is charged. Paris, for no unfathomable
reasons, does the largest pawnbroking
business on the continent, 34000,000
francs being the average yearly
pledges and 100000 francs redeem
ed. The total revenue is 100000
francs, the expense of management
100000 francs. the interest on capital
about 100000 francs and the net prof
its 10000 francs.