Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1911-12-30
CAMPAIGN AGAINST
The LOAN SHARKS
How the Battle Is Waged
With This Usurious
Business
GROWTH OF PEONAGE SYSTEM
A National Federation of REM
edial Associations Has Been
Organized.


Arthur H. Ham, Director. Division OF
Remedial Loans. Russell Sage Foun-
de ton. Exclusive Service The Sur
vey Press Bureau.)
The loan shark in his arrogant dis
regard OF human rights continues in
most cities to exact unreasonable tri-
butte from the wretched men caught
in his net Leading newspapers
throughout the country have constant
~ denounced the business of making
small loans upon the security of
pledge or mortgage of personal pro-
perty or assignment of wages Drastic
laws have been invoked in many
states against it. Societies have
been organized TO protect victims from
unjust practices, but the press ac-
counts are soon forgotten by all save
the unfortunate clients of the money
lenders and the campaign to remedy
the conditions surrounding the busi-
ness has been marked by years OF
fruitless struggle.
Laws are constantly and uniform
ly evaded, ignored and defied. The
government officials and legislators
have repeatedly announced their firm
intention to drive the loan shark out
Of existence. Grand juries have time
and again returned indictments
against these gentry, accompanying
their presentment with statements
of extortion and oppression, almost
unbelievable in this enlightened age
but still this blot on our civilization
remains and appears to careful OBJ
servers even to increase in size. The
complexity of the problem has been
intensified by indications of whole
sale legislative corruption, collision
of officers of the law and connivance
OF city employees holding positions of
authority, and paymasters and cash.
iers of large establishments whose
employees afford the professional mo-
ney-lender easy prey. The statement
could doubtless be proved that every
city in the United States of more than
$4,000 population containing to any
sappreciablc extent citizers depend
ent on fixed salaries or wages is in
tested with loan sharks in the proper
ton of l to 5000 and at least 20 per
cent of the voting population are
discounting two days labor for the
immediate price of one. 1t is not on
ly the transfer of this money from
the channels of legitimate trade, the
curtailment of bodily comforts, re-
creation and education, but also the
graver aspects of impaired morals,
decreased efficiency, family deser-
tions and crime directly traceable tc
the loan shark business that render
1t worthy of public attention and con-
certed effort toward it's elimination.
What is responsible for this system
OF peonage? What maintains it in a
flourishing condition despite the
many and varied attempts to remove
it? How can men be so reckless as
to borrow from these agencies that
are everywhere known as sharks,
leeches and remorseless extortioners?
1t is clear that these concerns cater
to a need that is in some part real
and unavoidable that the majority of
borrowers have been overtaken by
sudden emergencies which under their
standard of living cannot be met out
Of income. To slch. IN easy and quick
means of relief seems acceptable at
| any price especially if no other and
more reasonable source of assist.
ance is at hand.
The many unsuccessful attempts tt
iegislate the usurious money lender
out of existence have shown one thinf
very clearly, that a law that comes
between the lnscrupulous man who
has money to lend and the man wht
wants to borrow cannot be enforced
until an agency is established to sat
isfy his need at lower cost. Recog
nizing this fact, philanthropic men il
nearly twenty cities, content with I
reasonable return upon their invest
ment have organized remedial socie
ties to make loans at the lowest rate'
of interest practicable to deserving
people upon security of personal prop
erty pledged or mortgaged. The frs
few of these societies came into exist
ence at intervals sometimes of sew
eral years. In 1909 representative
of thirteen of them met in Buffalo a
the invitation of the National Confer
ence of Charities and Correction ant
formed the National Federation o
Remedial Loan Associations. TIL,
purpose was to substitute concerted
action for sporadic effort; to assist b!
advice and information in the organi
cation of remedial loan societies wher
ever needed. The Russell Sage Foun
dation soon organized a division o
remedial loans for the partial purpos.
of assisting the Federation in its worl
and as a result the membership o
the Federation has practically doubles
since 1909.
In many cities efforts are now be
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