The Birmingham age-herald., 1914-03-16
Fighting the Loan Shark


 There is being much said and done with regard to regulating or "curbing" the notorious "loan sharks all over the coun- try at the present time. He is in the limelight and seems to be there to stay. The wise lawmakers in many states have undertook to 'lasso' him, but in all cases they have made miserable failures so Tar as remedyinG the real evil or bettering the conditions of the unfortunates who have to borrow money We notice that in Mis- sissippi they arc passing a law that in effect "those persons or firms engaged in lending money on household goods or other personal property are required to pay license of s2o00 per year, and are
 prohibited from making any loan for
 more than 20 per cent under heavy fine and imprisonment. and at the same time
 they cannot collect at law if guilty of
 usury."
 What object is there in making a law like this? Is it for the benefit of the poor
 who have to borrow money on their only security-a few household goods a bit
 of "personal property in the shape of an old Waterbury watch, an owls head
  if 5000 license on the ''loan shark" will
 bring the interest on money that poor
 man has to have down to 20 per cent,
 why not make the license $l0000 and there
 by get the interest down to about or s per cent? Then if that works success fully, put the license higher-say, s20,000- and get the interest down to about 3 per cent That would be better still--if 1t would work. But who on earth believes 1t will work? Is it not reasonable to suppose that if we put a high license on robbery the robber will have to rob the more? Or if we tax the thief will he not have to steal enough to pay his H. cense, and then some?" Now, l do hot curse the loan shark He gets enough of that at the hands of others. l iook upon him as a kind of necessary evil, without which some would suffer, and at | the hands of whom many suffer more. He is as necessary to the poor man as the banker is to the business man. And if the "evil'' can be eliminated he will become very popular and lovable indeed The poor man never gets to the bank. It would be useless for him to go there. The banks do not lend money to poor people who possess nothing but household goods or little personal property. The banker lends his money at a fairly low rate of interest, but he is dead sure to get it. With the security that the banker takes the borrower can get money from many sources. hence the low rate of in terest. The security that the loan shark takes the banker would not have. There fore, the poor man has but few sources from winch he can get money, and hence Ithe high rate of interest he has to pay. Now, is 1t possible that by taxing his only sources with high license, lines and .imprisonments" we are aiding him in obtaining cheaper money from that same source? 1 am convinced that the law makers who are trying to regulate this necessary evil'' really have the inter- I ests of the poor man at heart. think their intentions are good, but am con vinced en the other hand that their judg- ment is Lad.
 | If l were going to frame law that would protect the poor man. of whom claim a close relationship, by making money cheaper, goods cheaper and living
 cheaper. the first thing I would do would | be to make debts collectable. As a mat | ter of fact about the only constitutional l Jaws we have now, regulating debts, are those laws which authorize the l debtor to beat the creditor. This may seem good for the debtor, but it Is not | it only places a greater burden upon him It requires the creditor to take mortgages. ! liens and other instruments in writing
 which call for attorneys fees. acknowl-