The Fargo forum and daily republican., 1912-01-12
THE CAMPAIGN AGAINST
UBIQUITOUS LOAN SHARK
How Battle Is Waged With This UsuOus Growth
Of Modern System Of Peonagc- Work Of the National
Federation to Prevent Evil

legislate the usurious money-lender
out of existence have shown one thing
clearly, that a law that comes between
the unscrupuIous man who has money
to lend and the man who wants TO
borrow cannot be enforced until an
agency is established to satisfy has
need at lower cost. Recognizing this
fact, philanthropic men in nearly
twenty cities, content with a. reasona-
BILE return upon their investment haTe
organized remedial societies to make
loans at the lowest rates of interest
practicable to deserving people upon
security of personal property pledged
or mortgaged. The first few of these
societies came into existence at in
tervals sometimes of several years. In
1909 representatives Of thirteen OF
them met in Buffalo at the invitation
of the national conference of charities
and correction and formed the Nation
al Federation Of Remedial Loan ASSOC
Citations. The purpose was to substi-
tute concerted action for sporadic ef-
fort; to assist by device and informa
ton in the organization of remedial
loan societies wherever needed. The
Russell Sage Foundation soon organ
lied a division of remedial loans for
the partial purpose of assisting the
federation in its work, and as a result
the membership of the federation has
practically doubled since 1909.
In many cities efforts are now being
made by citizens backed by chambers
of commerce and boards Of trade to
organize similar societies. Those in
operation have proved themselves
practical and measurably successful
means of accomplishing what drastic
legislation and popular clamor was
powerless to do. The loan shark has
not been entirely eliminated from the
cities in which these societies operate,
but his exactions have been reduced
appreciably. This pioneer work has
removed the remedial loan idea from
the experimental state and organizers
OF societies in other cities are as
sured of success from the start under
proper management.
In several states satisfactory laws
have replaced the old time drastic leg
islation impossible of enforcement.
legislators are beginning to realize the
ASA ASO VI AoAcASnSSSAAS . AOAlAAACIlNp Will
out some profit allowed by law, there
will be but few lenders, and those prin-
cipally bad men will endeayor to in
demnify themselves from the danger,
of the penalty by making that profit
exorbitant."
Briefly stated. the programme OF the
remedial loan movement includes the
organization in all cities of competi-I
tive loan societies of a social nature
in the pawnbrcking and chattel loan
fields; the establishment Of co operative
associations for savings and loans
among employees, supplemented by the
investment OF honest capital on a rea-
sonable money making basis. In all
states legislation will be sought chief
| ly to facilitate this competition. Sat
isfactory laws will deal fairly with
all parties concerned, recognizing the
small loan business as a necessary
element in our financial system, to be
legalized, regulated and controlled, al
lowing reasonable interest rates and
proper supervision. and adequately
protecting the borrower from unjust
charges and dishonest practices.