The Washington times., 1909-04-26
The Usury Evil and the
Money Lending Busi-
ness in the City of
Washington.

W nSAAAAfR LOAAs
Realizing the deplorable condition Of
the money lending business In the City
Of Washington. and desiring as far as is
within our power, TO better these con-
ditions. the Board Of Directors of the
Society for Savings. have yielded to
the earnest and repeated solicitations OF
members of the Associated Charities
and other influential citizens. who are
laboring to bring this business to the
fair and legitimate basis in vogue in
other cities. and have decided to ask
the attention OF the Washington public,
through. the medium OF the Press, to the
aims and business methods Of this So
ciety.
We gratefully acknowledge the assist
ance and the many voluntary express
siSns of commendation we have re-
ceived from the Associated Charities.
the Civic Center. the Rev. John Van
Schaick. pastor Of the Church of Our
Father, and other public spirited citi-
zens, I'm our efforts to impress upon {. =
committees OF Congress the necessity
for remedial legislation, and especially
ore we appreciative of the following eX-
tracts quoted from the report OF the
Presidents Homes Commission. chap
tar IA. printed in full in Senate Docu-
ment No. ga.
ITO the Senate and House of ReDresen-
tatives:
'I transmit herewith reports by the
Presidents Homes Commission on I'M
provement of existing houses and eliTni-
nation of unsanitary and alley houses
on social betterment, and on building
regulations and recommendations adopt
ed by the Commission and ask that
they receive the careful consideration
of Congress.
"(Signed)
THEODORE ROOSEVELT"
The White House,
Jan. s, 1909.
THE REPORT.
(By Geo. NJ. Kober, NJ d, Chairman.)
"In view of the great number OF cases
of exorbitant rates of interest charged
by salary and loan sharks which have
come under the notice OF the writer in
ties, and also in our Sociological studies
of families, II was deemed desirable to
secure additional information on the
subject with a view of formulating suit
able recommendations for the suppress
sion OF the evil. AIr. Chas. F. Weller
of the Associated Charities, and MI
Geo. s. Wilson. OF the Board OF
Charities. referred In their discussion OF
the subject to the efforts of the so
CIETY FOR SAVINGS TO BRING
ABOUT A MORE TOLERABLE
STATE OF AFFAIRS.
''In a number of interviews with Of
acers of that Society. il was learned
that they had entered the field for
which there was an urgent need, with
the hope OF eliminating the condition OF
large number of government employees
by oTering a better service at a rea-
sorabie price
'sThe officers, anxious TO extend the
usefulness of the Society. and at the
same time to conduct strictly legtti-
mate business. have made careful
study of the remedial legislation in
ether States, with a view OF promoting
similar legislation in the District Of
Columbia
AT a special meeting of the Presi-
dent E1DuftE AOlillfAA01A1AtI aACAN VA ~
cernber II, 1905, the following resolutions
and recommendation were unanimously
adopted:
30. The Committee strongly recon-
mends the enactment of a law for the
suppression Of usury as contemplated
by Senate bill No. 229s and House bill
No. 11772-
your Committee is convinced that
there is a necessity in every commun-
ity for pawn shops and money lend
ing concerns. to aid persons who In
a case of necessity are unable to Sc
cure loans from banks, trust COM
panies and real estate brokers.
TT has been shown that the system
now in vogue has been attended with
gross abuse, absolute extortion, and
financial distress which calls Tor rene
dial action.
"since II has been demonstrated by
the experience Of the Proyident Loan
Society OF New York "a strictly busi-
ness philanthropy that such operations
cannot be carried on at lower rate
OF interest than 1 per cent monthly,
we recommend that the maximum rate
of interest be placed at 2 PER CENT
PER MONTH
The most effective and logical way
TO get rid Of the 'loan shark" is to
meet him on his own ground-supply
a better service at reasonable rates.
In an effort to do this, this Society
was incorporated unGer the laws of
the District OF Columbia and organ
lied In this city IN 1906, modelled after
similar concerns in a number Of States,
for the purpose, among others, Of lend
ing money TO those In need OF pecu-
MARY assistance, upon their notes en-
dorsed by fellow clerks OF friends.
After considerable effort, sum Of
s. 500 was raised, and operations were
started. The loans made at first were
necessarily small, averaging $500, and
never exceeding 5000, and the rate
charged was per cent per month.
After the first year, the rate was re-
duced to ~ per cent per month. and
now after four years experience and
growth. It is PER CENT PER
| MONTH, which rate applies also to
loans made on household goods. which
feature Of The business has but lately
been adopted.
This Society, while doing all possible
from the practical side, has made de-
dfroof1w FhvotycrI