The Waxahachie daily light. [volume] (Waxahachie, Tex.) 1894-current, 1911-02-03
THE FIGHT ON LOAN SHARKS
1t is Belieyeyed the Evil Can BE
Eradicated by Establishment OF
Municipal Pawn Shops.
Associated Press Special.

Associated Press Special
Washington, Feb, 3-ln several
American cities attempts are beins
made to eradicate the usury evil OF
loan sharks end pawn shops by the
establishment of low interest loan
societies conducted simply to meet
their operating expenses. A BAND
of philantnropists in Chicago, Ill,
with apparent success, has establish
ed pawn society which loans
money upon pledges at one per cent.
per month as compared with the
usual charge in that city by private
brokers of ten 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 report to the State Department
by Consul Henry Morgan. 1t is
the municipal pawn society of Am
sterdam, 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
seventeenth century. The earliest
record loan made by this institution
was on April %, 1914. The bust
ness is still conducted in the original
building erected for it at that time
though fifteen branch offices have
been opened throughout the city to
meet the ever increasing demand Is
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 it is the custo"
of vast number of the poorer pee
pie of Amsterdam to pawn then
Sunday best" clothes on Monday
morning, and redeem them Saturday
night and soak" them again on the
following Monday morning, thus Sc
curing their use for the Sunday out
ing. Over forty per cent of the bus
mess of the Bank van Looming,
which amounts yearly tC over 4 mil
lion dollars, is of pledges of this
class household articles, etc.
The rates of interest charged run,
according to the kin of goods pawn
I'd, from 6 to 13 per cent per an
lum. Amsterdam las never placed
, single law upon the statute books
regulating the interest charges of
lawn shops simply becauae the com
petition of the municipal society
las practically run them out of bus
ness. Besides the interest charges
here is a fee demanded on all
pledges to meet the administrative
expenses of the institution. This is
,nly from 5000 to $40 an article.
and from the sale of unredeemed
pledges and rents for offices in the
bank building, the Bank van Leon
ing insures every article which 1t
holds in pawn, pensions all old en-
ployees and their widows and clears
three per cent on it's investment.
Each pledge is held for six months
and then failing its redemption by
he owners, is sold at public auction
fter being advertised for two days. |
he capital of the Bank is s202,- |
so. Its annual revenue is about |
lightly thousand dollars year. 1t |
$4,000 a year to its pen
ion fund
The Bank van Looming is strictly |
municipal affair the business be- |
ng conducted by five directors APP
pointed by the city government and |
ly the Burgomaster or mayor. BY |
It's charter it is restricted in earn
ngs to three per cent on its in
vestment and each three years its
schedule of charges is made over so
that the estimated income will
to only three per cent. The
institution is under strict police SUI
perVision and this has made the bus
mess OF fencing or handling stolen
goods very dangerous as at
best it is difficult for other pawn
shops to show legitimate reason for
remaining III this business.