The daily star-mirror. (Moscow, Idaho) 1911-1939, 1912-09-14
ASPLAN FOR
AID BY LOANS

DIES MONIES, IOWA, Sept. 14-Tht
Morris plan for the operation of re-
medal loan bank or public loar
bureau may be adopted in Des Moines
Ralph H.. Riddleberger, an attorney
from Norfolk, Va, is in Des Moines
| trying to interest Leo Stevens, presi-
dent of the Century savings bank. in
\ the proposition to start a public loan
bureau in Des Moines to be operated
under the Morris plan.
Mr.. Stevens is one of the men who
helped to wage war against the loan
sharks and he is interested in the
proposition to provide an institution
| for Des Moines where the poor man
can get money at a reasonable rate of
| interest.
! Mr.. Riddleberger claims that the
| Morris system, which was invented by
young Norfolk attorney, provides a
plan for the safe and economical con-
duct of an institution of this kind.
Money can be loaned" he said, ito
people who have no acquaintance with
! the banks. and it can be loaned at the
rate of interest required by banking
institutions"
System Has Advantages.
The system of bookkeeping and man
agement has reduced the cost of oper-
ating the loan bureaus to a minimum
and makes it possible to meet expenses
and make money for those interested
in the project by charging not more
than eight per cent interest to the pa
irons of the institution.
The establishment of municipal
loan bureau in Des Moines was baked
by the fact that the institution could
not be conducted at a profit to those
whose money was invested in it with
out charging a rate of interest in eX-
cess of that permitted by state law.
The plan was abandoned and it was
the intention of those interested to
seek the passage of law by the COM
ing Legislature which would permit
the charging of a higher rate of inter-
est by municipal loan bureaus.
Il don't want the idea to become
prevalent that we advocate charitable
association" said Mr.. Riddleberger.
That is not the case. 1t is our plan to
loan money just as bank would loan
1t. Money given as charity seldom finds
its way back. 1t is our plan to provide
a place for the so per cent of the people
who have no credit with banking in
stitution. Many, many times their
credit is just as good as the people
who borrow huge sums of money at a
bank, but they haven't the banking ac-
quaintance, consequently they are
turned down when they apply for a
loan.
I'VE believe that man who always |
has been honest, man who has work |
or even a man who is out of work but |
still able to work. is a good risk. He |
will pay back when he borrows if given |
time in which to do it. That is one |
of the secrets of the success of our |
plan; giving a man time in which to
pay back his loan, a little at time. .
Merchants Help, Too.
One unique feature of the Morris
plan is the provision for the coopera-
ton of the borrower and the merchant
to whom he is indebted.
The bank telephones the merchant
that Mr.. So-and-So wishes to clean up
lis indebtedness. The bank declares it
has decided to lend the money and will
send Mr.. So-and-So down with the cash
and a note the size of his account to
be endorsed by the merchant.
I'VE find" said Mr.. Riddleberger,
that the merchant is quite willing to
sign a note with the borrower. He has
just been presented with money to
clean up an account which has worried
him considerable. He is willing to
help the man whom he now believes is
thoroughly honest. He loses nothing if
The fellow fails to pay because he
thought the money was lost anyway.
But the fellow does pay and both of
hem benefit by the transaction. We
lave found the merchants quite ready
o cooperate in every city in which the
system has been installed"
1t is not in accordance with the sys-
EN- to loan money on chattels. They
lad rather loan without security than
bother with chattels as security.