The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-09-16
Govt PAWNSHOp
may Be next PLAN
Citizens May Some Day Soak
Valuables With Your
Uncle Samuel.

I WASHINGTON, Sept. 16.-shal
Uncle Sam turn pawnbroker? Shall 1,
become uncle" in truth to any Of hi
pninety-odd million citizens who care
TO soak" with him any of their per
psonal belongings. from bedclothes tc
adiamond tiaras, at reasonable rates OF
Interest?
Shall II follow the example set by
France, Germany. Holland and other
European nations and make 1t possible
l1or the temporarily embarrassed to OBJ
tain money on personal belongings
without paying from SO to 100 per cent
Interest on the loan?
Consular Reports Praise II.
This question will be called up for
consideration shortly through the pub
lication by the Department of Com
merce and Labor of a series of consu.
lar reports on pawnbroking in foreign
countries. Needy citizens can obtain
.smal sums OF money on short notice
avoiding the exhorbitant rates OF in.
terest charged by the private pawn.
broking concern and keeping free from
the greedy clutch of the professional
money lender.
+ Where the plan has been tried lon
ngest Its success has been most mark
led. The citizen Is furnished with what
money he needs up to a reasonable
amount. on personal collateral. The
average rate of interest charged is
less than IL per cent per annum. More
over, with the possible exception of
! France. where the government exer-
cises complete monopoly of the
pawnbroking business, the national
and municipal institutions have sue
cessfully combated strong competi-
ton from private concerns that have
been permitted to charge much high
ser rates OF interest.
In Holland Since 1914.
The pawnshop of Amsterdam, the
loldest and probably the most lenient
IN the world. Is known as the Bank
Jan Leening. II has been under the
control Of the municipality since 1914,
and now has fifteen branches through
out the city. The average rate Of in
terest is less than 10 per cent a year;
surplusses over amounts loaned, az
ter the loan, the interest and, in addi-
etion, 6 per cent for administration has
been deducted, are returned following
the sale OF unredeemed pledges at auc-
ton. Still the bank Is able to main
tain q working balance of more than
one mallion dollars.
Tn ho mn ,hv~1, ina bus
II strictly q government monopoly,
which the Mont de Piete, the nations
pawnbroking concern. has enjoyed for
more than fifty years. The sole rate
OF interest charged by the Mont de
Pete Mount de Piety) is per cent
per annum, interest being charged by
the half month. The valuation Is per-
formed by a syndicate of auctioneers.
They are supposed to advance four
fifths of the value of jewelry and two
thirds of the value Of wearing apparel,
but as they are liable for any loss on
the value Of unredeemed pledges, they
seldom err against themselves.
In Russia and 6umanta Too.
The policy of advancing only
small percentage of the actual worth
of the collateral offered Is followed
in most European public pawnshops.
the fact that they received only a
small part of what the collateral was
really worth furnishing the owners
with further incentive to redeem the
pledge.
Much the same policy as outlined in
the Dutch and French institutions Is
followed In municipal and government
tai pawnshops in Germany, Roumania,
Italy and Russia. The average inter-
est charge is about IL per cent, the
patrons are protected as fully as pos
sible and every incentive Is offered