El Paso herald. (El Paso, Tex.) 1901-1931, 1911-02-03

A T the meeting of the womens
~ Trade council at St Louis to-
day, the subject of making
loans to needy persons will receive con-
sideration. The women are deply in
terested in the crusade against loan
sharks and pawn brokers, whose ex-
tortions cause much unjust suffering
to the poor. The trade unions through
out the country will be asked to support
legislation now pending in different
states against money 1oaners who
charge Illegal interest. In addition to
this it will be suggested that the vari-
Gus trade organizations make appropri-
atoms from their treasures to be used
as loans to deserving people so that
resort to the pawn broker will be I'M
necessary.
Working people. whose resources do
not Eermit them to have dealings with
regularly esta bliShed banks, can bor-
row money for special needs through,
the different agencies: First by chat.
tel mortgages on household goods; sec
ond, by personal notes secured on their
wages or salary; third, by depositinG
some article with the pawnbroker.
The hardships and injustices to which
| worthy people have been subjected by
loan sharks and money lenders have
| for several years been a matter of spec
! ial consideration among those interest
| ed in the general welfare of the public.
| AS a means of alleviating this difficult
| ty the National Federation of Remedial
Loan associations has been organized
This Federation encourages the forma-
ton of local organizations and directs
persons interested in the work, CIV
ing such information and advice con-
| corning legislation, finance and prob
lens Of administration as may be nee
essary.
Is Becoming National
The Federation has branches in the
District Of Columbia and eight of the
| states. Additional branches in the re-
| naming states will be organized as
quickly as possible. and the Federation
IS actively engaged in trying 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 Sor q
money lending business under the
strictest provisions. including. 4 bond
to the government for a penal sum of
not less than $4,000, properly secured,
conditioning that the obuzat3r should
not violate any law relating to such
business. No money loaning firm
should be permitted by law to require
a higher rate of interest than two per-
cent per month, which should include
every cost and fee. The legislature of
Maryland has passed a law during the
year making these provisions, and
bill having the same requirements for
the District of Columbia is now before
congress, having already passed the
senate and the house committee.
Wage Farmers Are Victims.
The loan shark preys most heavily
upon the wage Garner. The rates of
usury are outrageously unjust and the
methods employed frequently dishon-
est. These sharks advertise extensive
~ and always in q misleading manner.
A favorite device is: I'VE charge no
more than six percent per annum on
borrowers note" The trick is this:
A borrower applies for a loan OF s25.
He is told ne can have that sum, minus
certain fees If he will sign note for
$3.50 with reliable endorsements. This
is so percent instead of six percent, but
the loan shark makes true his adver-
tisement by charging an additional rate
of six percent on this note. He has
not advertised that he would charge
six percent on money borrowed The
fees for securing the loan are deducted
from the s25 so that the borrower re-
ally receives about S23, for which be
gives note for $3.50 bearing six per
cent interest per annum.
MerciIess TO the Poor.
AS the bushes is now conducted in
America. pawnbrOking is more merci-
less to the poor than all other loaning
methods. Only those in absolute need
resort to the pawnbroker. He OBJ
serves no laws governing his trade and
is responsible to no one. He sets his
own valuation on any article present
ed and the unfortunate borrower is
forced to accept. Even If the pawn
broking business were conducted hon
estly it would involve many hardshfps.
but rapidly accommodating evidence
demonstrates that frequently absol IT.
robbery takes place. This IS especially
true of the shops patroniz=d by TIE
poorest classes
If a pawnbroker receives i watch
which he suspects to have been stolen,
he may not wait for the legally re-
qufred period of time before disposiug
of 1t. Instead he passes the article On
to a middleman who will get rid of it
probably at an auction sale in another
shop. If the owner should return to
claim his property, the number of the
ticket may be found upon watch Of
inferior quality. II a borrower ap-
pears helpless, some pawnbro&ers will
not hesitate to substitute Other arti-
cles, even though they know the pledge
presented is rightfully the property CT
the borrower
A FavOrfte SWiuiIe.
poor woman in desperate straits
went into pawnshop and pledged her
heavy gold wedding ring. By dint of
economy she was able to save the sum
received within a month and applied at
the pawnshop with her ticket. She
was given bent disfigured ring rot
worth fraction of the valIe OF the
one she had left there. Her protests
were of no avail. The pawnDroke- s
books showed that Mary Jones had
him at last The road to fame was