The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-01-03
nAnpooNINc THE LOAN Shark.

\ lAtrom New YORK comes report Of, the
most vigorous and most promising ef-
fort ever made In America to harpoon
4 the loan shark. julius Roscnwald, the
eminont Chicago philanthropist: An
drew Carnegie. Vincent Astor. DR.. u. r.
l.. Gould and other well-known men
have banded themselves together to
end the career of the monsters who
feed on tho poverty and need Of tho
! weak.
Tho loan shark evil is far worse in
America than the casual reader Of the
newspapers may think. Like every-
thing else that Is vile, it Hourishes In
the dark. where even tho searchlight
OF the press does not roach.
The man who borrows Is often the
In borer or artisan who faces an emer-
gency. His wife may be sick or he
may himself be ncapacitated--nny
ono OF dozen disasters may overtake
him. Forthwith he goes to tho loan
company. which. without question ad-
vances tho money he needs. To meet
the usury exacted. he is frequently
compelled to make new loans until no
finds himself utterly at the mercy OF
the remorseless lender.
Locally. tho worst victims of tho
loan sharks are Ignorant laborers and
colored servants Working for small
wage and, anxious to adorn them
selves. the negro women find the loan
sharks only too willing to crafty
them. These ignorant servants sign
papers they do not understand and
sometimes bind themselves to pay with
in year as much again as they Dor
row. Cases have como to our ntten-
ton where interest has been cxaoted
on small lonns to needy negroes at
the rate of l2o per cent the year;
Worse still. tho agents of these YAM
pires visit the negro districts and
carefully distribute handbills urging
the poor TO borrow money.
It Is to protect needy and ignorant
alike that tho philanthropists we have
named plan to organize great chain
Of banks with abundant capital The
model which Is now being studied by
Mr.. Rosenwald is that OF the italian
and German workingmens banks. first
established by Slgnor Jusso'. the dis
tinguished Minister OF Finance 1T the
Quirinal These banlss-they number
more than 1900 in the Kaiser's do
main a1one--handle those loans which
arc too small or too uncertain for the
mercantile banks. To borrow from
one OF these institutions, two things
only are necessary-proof OF legitimate
need OF the money sought and the In
dorsation of fellow workingman. No
money IS ever loaned for doubtful
ventures. for eXtravagant dress or for
unnecessary purchases. The borrow
er need not come to the bank unless
he Is prepared to show need in his
family or n legitimate opportunity for
safe investment. But If the loan be
a proper one. no collateral is neces-
sary beyond that furnished by the sig
nature OF some workingman who
knows tho drawer of tho note
This system OF banks has killed
every loan shark in Germany 1t has
likewise discouraged extravaganza and
has been an Incentive to thrift and
careful Investment. Every man who
is willing to work has assurance that
when compelled to borrow money, he
can procure 1t without humiliation,
without usury and without endanger-
ing his family's bread
The identical plan is to be inaugu-
rated in America, with enough capl-
tai to establish banks wherever the
loan shark flourishes Dr. Gould, who
discussed the subject in yesterdays
Issue of the New York Times, prom
ises that within the next few weeks
his colleagues Will make known tho
full details Of the plan and Will form
ally declare war on the loan sharks.
The Times Dispatch hopes that one
OF the first banks 20 be opened VIII be
in Richmond Our working people
need it. Our negroes need 1t. we shall
be glad 10 help organize 1t.
Oifi FIRE LOSS