Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-02-03
LOAN SHARKS
Bv FREDERIC J. HASKIN.

At the meeting of the Women's Trade
Council of ST Louis today tie subject OF
making loans TO NEEDY persons Will re-
ceive consideration The women are
deeply interested IN the crusade against
loan sharks and pawnbrokers, whose eN-
tortions cause much unjust suffering to
the poor The trade unions Throughout
the country Will be asked TO support leg
;slation now pending in different states
against money loaners who charge IL
legal interest In addition TO this. it will
be suggested that the various trade or
CARNATIONS make appropriations from
their treasures to re used as loans to
deserving people, so that resort to the
pawnbroker will he. unnecessary.
Working people. whose resources do not
permit them to have dealings with regu-
!arly established banks, can borrow
money for special needs through three
different agencies: first by chattel mort
cages on household goods: second. by
personal notes secured on their wages or
salary: third. by depositing some article
with the pawnbroker The hardships
and in1usticeS TO which worthy people
have been. subjected by loan sharks and
money lenders have for several years
been a matter of special consideration
among those interested in the general
welfare of the public. AS means of
alternating this difficulty tie National
Federation of Remedial Loan ASsoc.a-
tons has been organized. This federation
encourages the formation of local organ
izations and directs persons interested in
the work. giving such information and
advice concerning legislation, finance and
problems Of administration as may be
necessary.
The federation has branches III the
District of Columbia and eight of the
states Addi
Want Restrictions tonal branches
Put on Loan Sharks. i've 80, states viii
be organized as quickly as possible. and
the federation is actively engaged III try
ing TO secure legislation in each state
regulating the rate OF interest charged
by money lenders on any security. 1t is
held that licenses should only be granted
for money lending business under the
strictest provisions. including a bond to
the government for a penal sum OF not
less than 5000, properly secured. con-
ditioning that the oblisor should not vi
olate any law relating to such business.
No money loaning firm should be permit
ted by law To require il higher rate of
which should include every cost and fee.
bill. having the same requirements for
the District of Columbia. is now before
Congress. having already passed the Sem
ate and the House committee.
The loan shark preys most heavily upon
the wage Garner. The rates of usury
are outrageously unjust, and the methods
employed frequently dishonest These
sharks advertise extensively and always
in misleading manner. \ tavorite de-
vice is: We charge no more than per
cent per annum on borrowers note" The
trick Is this. A borrower applies for a
loan OF 50: He is told ne can have that
sum. minus certain fees. if he will sign
ments. This is 80 per cent instead of 6
per cent but tie loan shark makes true
his advertisement by charging an addi-
tionai rate of d per cent on this note. He
las not advertised that lie would charge
u per cent on money borrowed. The
fees for securing the loan are deducted
from the SO, so that the borrower really
receives about S2S, for which he gives a
note for $3.50 bearing . per cent interest
per annum.
During the last year the pawnbroking
business in New York City amounted to
$3O,CoO.OO0
Business in New York \ careful
Amounts to $30.OO0.OOO. ,,nn Ia.
by expert social workers proved positively
that at least $51OO.OSo of this slim had
been illegally taken from the poor. An