The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-05-02
CREDIT FACILITIES IN
REACH OF THE PEOPLE
Morris Plan of Banking Is One That
Is Spreading TO All Industrial
Centers.
is LEADING IN CHARACTER
Fidelity Loan and Savings Company
In Chamber of Commerce Building
Uses Plan, Efficac4ous As Antidote
To the Loanshark Eyil.

The Industrial Finance Corporation
OF New York, has issued an illustrated
pamphlet on The Morris Plan" of In
dustrial loans and investments in oper-
alton here by the Fidelity Loan and
Savings Company. at Eighth and Main
Streets. It is the story of successful
effort to put credit facilities within
the reach of people whose means
are SO small as to debar them from
the advantages offered by the ordinary
commercial bank. For over half a
century. Europeans Of the smallest
means have been able to borrow mon
ey at reasonable rates: but hitherto
in this country. the character and
earning capacity of wage-earners,
smaIl-salaried employees. etc. have
not been regarded as an adequate basis
of credit.
The plan by which this defect in
our financial system has been corrected
was devised by Arthur J. Morris. a
Virginia lawyer. from whom II takes
Its name, and was first put into effect
at Norfolk. Va, in March 1910. On
this plan, loans prDportioned to their
earning capacity are made to honest
and Industrious applicants who can
show legitimate need, and whose
notes are endorsed by two co-makers.
These notes are discounted at the legal
rate of interest, and 1t Is arranged that
two per cent OF the amount of credit
extended shall be paid weekly to-
ward the purchase of collateral GER
tificate of investment which. IL the
borrower wishes may be converted
into cash, at the end of the year, to
liquidate his debt
As System OF Saving.
The Morris Plan provides also a sys-
tenn OF saving which enables others
than borrowers to purchase certifi-
Gates of investment either for cash
or on the instalment plan. These GER
tifcates. when bought outright for
cash, yield s per cent interest, II
paid for weekly, In fifty instruments,
interest begins a. accrue at the rate
of 4 per cent after twenty-five pay
ment certificate on which all payments
are completed Is exchangeabie for q
full-paid certificate bearing per cent
interest The fuli-paid certificates are
available as security for loans, no CO.
makers being needed In the case OF
notes for which for which they serve
as collateral Many customers of the
Morris Plan companies become sys-
Itematic savers. on this plan. even when
relieved from debt.
Within a year after the organization
OF the Company IN Norfolk, the second
company operate the Morris Plan was
formed In Atlanta, Georgia. Baltimore
then adopted 1t. In the past three
years the numbers of companies has
grown from three to nineteen. Located
Jas far east as Springfield. Mass, and
as far west as Denver. CAL. they serve
communities as small as Lynchburg.
Va, as as large az ST. Louis, Phiiadel-
phia and New York. Their paid-in
capital aggregated over $1.500.o GOO:
and up to the end OF 1914 their loans
to 81. 500 borrowers. averaging about
s123 each, exceeded s6.7S0.00o.
Is Loanshark Antidotc.
Last year, the Industrial Finance
Corporation was Incorporated, with
subscribed capital of 81. 100000, to aid
lin forming additional local companies
wherever needed. Already 1t has or
ranized such companies at Nashville,
New Haven, South Bend. New York
and Hartford. and 1t actively aiding
lin the establishment of others. The
New York Company received over
5000 applicants for loans in its first
two months--January and February,
1915.
The plan tends so strongly TO
strengthen the financial status OF peo-
pie of small means. that leading bank
ers in every community have cordially
welcomed it, In New York director
of the Federal Reserve Bank is presl-
dent of the local company. the presi-
dent of the largest trust company IN
America is it's treasurer. and number
of bank presidents and large employers
of labor serve en- its directorate. IN
precisely the same spirit as they would
serve as directors of savings bank
Not the least striking fact about
the Morris Plan Is the cordiality of
its reception by the American press. as
evidenced in the pamphlet above re-
ferred to. An an English economist
writing In the London Morning Post.
has called on Parliament to extend to
Great Britain the advantages of such
ID plan. AS an antidote to the loan
shark evil II has proved efticacious
triad