The Durham recorder. [volume] (Durham, N.C.) 1879-19??, 1910-10-20
TO ERADICATE ]
USURY EVIL
Philsnthropic Loan Societies
Being Formed

dSulnStOn, OCt. It'll stsSidi
American cilies attempts are peing
made to eradicate the usury evil Of
loan sharks and pawn shops BY. the
establishment OF low interest loan
societies conducted simply ia, meet
their operating expenses A band of
philanthropists in Chicago, ILL.,, with
apparent success, has established a
pawn society,"" which loans money
upon pledges at l per cent. per
month, as compared with the usual
charge in that city by private brokers
of 10 per cent. per month. The idea
in this country is a copy OF the
municipal pawn societies OF several
European cities.
An account of one of these Is given
in a report to the state department
by Consul Henry III. Morgan. II is
the municipal pawn society of Am
sterdan, Holland, known as the Bank
van Looming. This is probably the
Oldest pawn shop in existence. 1t
was started in the early part of the
18th century. The earliest record
loan made by this institution was on
April 30, 1914 The business is still
conducted in the original building
erected for ii at that time, though rs
branch offices have been opened
throughout the city TO meet the ever
increasing demands of the business.
To show the easy familiarity"
with the 'hock shop which long
contact with this venerable institu-
ton has bred in Hollanders, Consul
Morgan states that Ii is the custom of
a vast number of the poorer people
Iof Amsterdam to pawn their Sun
day best" clothes on Monday morn
ing, redeem them Saturday night and
soak" them again on the following
Monday morning. thus securing their
use for the sunday outing. Over 40
per cent. of the business of the Bank
van Looming. which amounts yearly
TO over s1,000.0 600. is OF pledges OF
this class-household articles. etc.
The rates of interest charged run,
according to the kind OF goods pawn
ed, from TO 13 per cent. per annum.
Amsterdam has never placed single
law upon its statute boks regulating
the interest charges OF pawn shops
simply because the competition OF
the municipal society has practically
run them ont of business. Besides
the interest charges there is fec
demanded on all pledges TO meet the
administrative expenses of the insti.
tuition. This is only from 5000 S.11
an article. Yet from these sourses OF
income, and from the sale of unre-
deemed pledges and rents for Offices
in the bank building, the Bank van
Looming insures every article which
IL holds in pawn, pensions all old
employes and their widows and clears
per cent. on ITS Investment.
Each pledge Is held for six months
and then, failing its redemption By
the owners, is sold at public auction
after being advertised for two days
The capital OF the bank is s2O2,s $50
Its annual revenue is about $50, 900
year. II contributes $4,000 a yeal
TO its pension fund.
The Bank van Looming is strict,
a municipal affair. the business con,
Quoted by five directors appointed By
the city government and by the
burgomaster or mayor. by its char.
ter II Is restricted in earnings to !
per cent. net on its investment. and
each three years its schedule oil
charges is made over so that the esti.
mated income will amount 10 only
the 3 per cent. The institution il
under strict police supervision aud
this has made the business OF "fenc.
ing" or handling stolen goods. very
dangerous In Holland as at best il Il
difficult for other pawn snops to show
legitimate reasons for remaining ii
this business.