The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1920-02-18
MAY REVIVE
PAWN SHOPS
D. C. Commissioners Favor Law
Allowing z Per Cent Interest
Charges Here.

Approval OF the Tinkham bill, pro
vidins for an amendment to the loan
shark" law. which will increase the
rate Of interest on small loans, in
GLIDING pawnbrokePs loans. from !
per cent to per cent, was voiced by
the District Commissioners In a re-
port sent to Congress today. II Con
gress passes this amendment. IL no
doubt will mean the re-establishment
OF the pawnbroker's business In Wash
ington.
The Commissioners. in the report.
tell Congress they do not favor tho
Dyer bill. which would make the rate
3 per cent on Loans up to $50, and 2
per cent on loans above that amount.
The principal objection to this bill. the
Commissioners state, IL that II would
have q tendency to bring back the
loan sharks" who have been driven
from the District.
The present law allows only 1 per
cent interest charges. The Commits
sioners believe 2 per cent Is q reason
one loan has been made under the
present law for moro than four years.
Hits AZ Outside Ofnees.
The Tinkham bill not only increases
the rate in Washington. but seeks TO
stop the present practice of some
pawn brokers Of keeping offices In
another State, and seeking business
In the District
The present law. say the Commits
sioners, is q good one, except for the
interest rate. 1t Is urged that II the
present law be amended. the amend
ment include only a change in the
rate. the rest of the law to stand.
As an argument for the passage of
Aa1 ~
Washington In the only city OF Its
size In the United States where pawn
brokers do not operate. He init
mates that 1t is unfair to the Dis
trict to continue such a low rate.
Want All Leans Alike.
There should be no distinction be-
tween pawnbroker's loans and Other
loans, in the belief of the Commits.
stoncrs. This Is why the Commission
does not favor the Dyer bill.
The commissioners are emphatic In
their recommendations Of a limit OF
5000 on small loans, but add that
they do not believe q limit should
be placed on pawnbrokers' loans
they point out thst persons Of means
having Jewels or valuable articles
to pledge. often desire in emergencies
to borrow sums larger than $500 for
=
valuable article to pawn is in differ
ent circumstances from the man who
has nothing on which to borrow but
the vague hope of the future. which
brought the loan sharks many vic
times in the past years" says the
Commission.
BY placing no limit on amount of
per cent interest on pawnbrokers'
loans, the Commissioners believe II
will be another incentive to the
pawnbroker to return to this city.
Citizens Ask for Pawn Shops.
The Commissioners earnestly urge
the prompt passage of the Tinkham
bill, stating that there has been q
long continued and practically unani-
nous demand by the citizens of the
District as represented not only by
the citizens committee, but also by
civic organizations which have from
time to time Endorsed 1t.
In urging Congress to hurry the
passage OF the measure, the Commits
sioners advance these two reasons:
First, To enable persons of limited
means to borrow money in cases OF
emergency on personal notes or such
security as they can give, or on
pledges to pawnbrokers, at rates
which are necessarily higher than the
banks, but which ara not unreason-
able for such small leans.
Second, the absence of pawnbrok.
ers has placed an undue burden on
the police department, and greatly
hampered its efforts to recover stolen
goods, which usually find their way to
the pawnshops."