The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1912-03-15
=E==$E=.-THE FORUMS POPULAR SATURDAY MARKET GUIDE
PAWNsHoP

New York Tribune: Shall Uncle
Sam turn pawnbroker? Shall he be-
come uncle" to any part Of his
ninety-odd million nephews and nieces
who may care to put anything. from
b~edclothes to diamond tiaras, in
soak" at reasonable interest rates?
Shall he follow the example of France,
Germany, Holland and other foreign
countries n make 1t possible for the
temporarily embarrassed to obtain
money on personal collateral without
paying from SO to 100 per cent in
terest per annum?
This question is now receiving seri-
Gus consideration by the department
of commerce and labor. A number of
consular reports recently received
bear the strongest sort of evidence in
favor Of governmental and municipal
pawnshops. They show how, in other
countries, a paternal national or city
government makes 1t possible for citi-
zens to avoid the clutches of greedy
private concerns and the ~exorbitant
rates Of interest charged by these con-
Germs. @
In the countries where the plan has
been tried longest it's success has been
most marked. The citizen is furnished
with what money he needs up to a
reasonable amount on personal coll
lateral. his interests are protected far
beyond the point to be expected from
a private concern, every possible in
centive to redeem his property is
furnished, and the average rate of in
terest charged is less than IL per cent
per annum. Moreover, with the pos
sible exception of France, where the
government exercises a complete
monopoly of the pawnbroking business
the national and municipal institutions
nave succeeded in the face of strong
competition from private concerns that
have been permitted to charge much
higher rates Of interest, and to take
greater chances, at the expense of the
public.
The pawnshop Of Amsterdam, the
Oldest and probably the most success
full public ~pawnshop in the world. is
known as the Bank Won Leening. 1t
has been under the control of the
municipality since 1914, and has fif-
teen branches throughout the city. The
average rate Of interest is less than
10 per cent per annum. SURPRISES
over amounts loaned. minus interest
and 6 per cent for administration, are
returned to the owners OF unredeemed
pledges after sale whenever possible,
and still the bank is able to show
profits Of nearly $1,000 900 annually,
besides providing handsome pensions
for old employees. s.
The Amsterdam bank consists of a
manager and five directors, appointed
by the city council, three of whom
must be members Of that body. The
manager has the power to decide all
ordinary questions of loans. The rev.
enue of the bank is derived from the
following sources: Interest on pledges
amount Of 4 mills to 10 cents charged
on each loan for administering ex-
penses in addition to the interest;
amount received from the sale of
pledges, percentage paid by the buy
ers of pledges in addition to the auc-
ton price, and rent for parts of the
building owned by the ~pawnshop but
not required for its service. %
The minimum amount loaned is 16
cents and the maximum 1901. No loans
are made on ornaments or other arti-
cles belonging to a religious society
or which are used in religious services,
nor are loans made on goods which are
suspected as coming from a charitable
institution. The scale of interest rates