Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-12
OPPOSES LOAN BILL
Calvin G. Tribby Says One Per
Cent Monthly Is Too Little.
UNABLE TO Do BUSINESS
Writer Declares Money Lenders of
City Would Be Forced to Close.
CALLS 1T CLASS LEGISLATION
Says poor Mans" Ability to Borrow
Would Be Seriously Affected
by the Measure.
UNABLE TO DO BUSINESS
CALLS IT CLASS LEGISLATION
r" the Editor OF The star.

10 the Editor OF The star:
In reference to the loan shark bill
want to call Your attention 10 a few facts
connected with this business The loan
business. like every other business has
TWO sides to 1t and every article have
ever seen relative to this question in
yours or in any other paper in this city
has at all times viewed the question only
from the point of the borrower and never
from that OF the lender This question is
far more important than it would appear
on the surface. and l am satisfied that
the committee in Congress that has been
considering this legislation. has found
il So Those who are in possession of
capital do not have to make loans if they
do not want TO, and ii seems that those
Who have commented on this subject Ia Ike
the view that the lender must make loans
at any rate that uniformed persons
would dictate.
\ rate of interest of | per cent per
month would he entirely prohibitive. as
this is lower rate of interest than
national bank is charging for the use of
money. when you take into consideration
that the banking institutions lend the
peoples own money back to them where
loan company must furnish its own
capital Banking institutions do not care
for small loans and only make loans to
their depOStOrS The loans of banking
institutions only made to persons
who have a financial commercial rat
ing or whose possessions are such that
the loan could be collected if necessary
oy process of law. The conditions of l
per cent per month if enacted into law
would do the very class of people it
claims TO protect more harm than it
would do any one else. and no law
would be better than condition that
would close all avenues by which a poor
man could in times of stress obtain a
loan. The loan companies of this city
make loans and accept risks that bank
ing institutions would not seriously con-
slider. Ii the loan companies are put out
OF business. which a | per cent bill would
do. where would the small borrower be
accommodate He could not go to the
Eawnbroker as he has neither valuable
gold watch nor diamonds that he could
afford to put UP as security, and unse-
cured loans at that rate of interest no
business concern could live under. as the
loss would amount to as much or more
than his profits.
IL the loan man accepted security from
the small borrower in the way of chat
tel loan on furniture il would cost the
lender go to have il recorded a court.
and the question arises. Could the loan
man loan So for three months for ~
cents and afford to pay $50 to have the
papers recorded? A chattel is not Sc
curity unless II is a matter of court rec
ord. This does not speak of the fact
that the drawing up of a chattel mort
gage must be done by a person of legal
training to be properly done. generally
an attorney. Who is going to pay that
fee?
EN-Commissioner West and Representa-
tive Dyer seem to have done more to
agitate this question so far as | can I'M
derstand than any other persons Yet at
no time did they recommend a rate of
interest lower than per cent per month.