The Birmingham age-herald., 1912-11-17
Poor Of Paris Suffer by State Pa1ur1shop Monopoly [

and, contrary to the general impression, are not recorded with the police.
 Since July 1. 1910, the interest on loans has been $50 per cent; for instance, stor- age and for the expense Of the operation another $50 per cent Is charged. and add ed to this there Is fixed charge of per cent which must be paid, making in all per cent
 After the loan is made the pawned arti- ele rests with the Monte-de-Piete for one year, If the interest is not renewed the institution has the right to sell the article. Generally several months addi- tlonal elapse before this is done. Whe.' the sale takes place, if there is any proht-and there generally is-it is re- turned to the borrower, less the expenses which have accrued. Last year sl27, ,2SS was paid to borrowers as profits.
 A large part of this bonus, however S47 967 to be exaet-went, not to the pub lic but to the merchants who buy pawn tickets In France, although no private pawnshops are allowed. the borrower is permitted to sell his pawn ticket to mer- chants who have sprung into existence all over Paris and who, while paying the borrower" outright for his ticket, at the same time give him an agreement under which he has the right to buy back the pawn ticket after two months, plus interest, which figures out about 60 per cent per annum. As the Monte-de-Piete loans so little on articles, these private merchants, by buying pawn tickets under the conditions just named really nego- tiate second loan, which varies from 20 to 60 per cent Of the loan made by the government and which is conclusive ev- idencc that the government is over cautious. It has become habit among Parisians to effect thls second loan even at 60 per cont interest
 The official figures, however, are illum- mating on this point of governmental un- der valuation:
 Last year %, a6i articles, on which only S329 742 had been loaned, sold at public auction for Si9Q.376. or al gross profit of s60,6Si. When it is realized that this public auction Is altogether a farce, and that the state sells these pawned articles at very much less than secondhand shop prices and stlll makes profit it is little wonder the man who tries to raise money at the Monte-de-Piete gets so little.
 Here is what happens:
 The secondhand shop merchants-the same who purchase the pawn tickets frequent the Mont-de-Piete auction sales in force They are popularly known as the Black Band and, according to the manager of the nte-de-Piete cooper ate to keep down auction prices If the
 
 these sales these men shove up prices until the public leave in disgust When they are gone the members of the band buy the articles for sale at almost any price they choose to give.
 As this Black Band. which is becoming constantly better organized, Is gradually beating down prices year by year, the Monte-de-Piete in turn, is lending less and less. To save it's face, therefore and to make good showing, the state insti- tuition is doing all 1t can to lend large amounts on gold, silver, pearls stocks and bonds.
 As Paris is rapidly becoming one of tho most expensive cities in the world, and as it has been said that Parisians in consequence are spending more than their incomes-the financial oligarchy which is getting richer excepted-there is a gradual and constant liquidation of small private capital and part of this liquidation is done through the state pawnshops. As the Idea of establishing municipal pawnshops in America Is not new. and as the subject Is now being studied by the London county council with the view of establishing a municipal pawnshop there, the working of the French monopoly is worth careful consid' eration.