Evening star., 1922-04-26
Rate by Mail-Payable in Advance.
MARYLAND and Virginia.
Loan Shark Legislation.

Inc VerDdl assault III tEe flouSe
upon Chairman William II. Baldwin
of the citizens committee on reme-
dial loans elicits no sympathetic re-
sponse in the capital community, but
on the contrary arouses indignant re-
sentiment. Washington recognizes the
debt Of gratitude which it owes to
this committee, composed Of some Of
the best and strongest of our civic
leaders, both men and women, and es
pecially to it's efficient chairman, whose
high standing, ability and powerful
driving energy have caused him to
dominate the campaign which expelled
the loan sharks" from Washington.
Chairman Baldwin in full health
and vigor needs only moral support in
resisting effectively assaults upon him.
self and his committee. In his dis
abling illness he is most fortunate in
having as prompt and enthusiastic de-
tenders and champions such strong
friends as Representatives Burton
and Cooper, who in the House debate
transformed vilification of him into
deserved appreciation.
When Chairman Baldwin and his
committee secured enactment of the
anti-loan shark law Congress cut down
the permissible interest rate of per
cent per month, approved by the COM
mittee, to / per cent per month. This
interest rate limitation was accepted
tentatively by anti-loan shark Wash
ington and approved experimentally
by the President. The purpose was
TO ascertain whether under the 1 per
cent per month limitation on loans
without security leaning companies
could do business at profit, and
would apply for licenses and continue
to operate.
Experience with this law teaches
that under it's operation not only are
the 100 per cent loan sharks expelled
from the capital, but also the loaning
companies, including pawnbrokers.
who were expected by some to substi-
tute themselves for the loan shark ex-
tortioners under the 1 per cent per
month limitation.
The validity and effectiveness of
including the Supreme Court of the
United States, which defeated an at
tempt to evade the law by Wash
ington money lender, who nominally
transferred his place of business just
over the river in Virginia.
The citizens committee on remedial
loans, backed by the Commissioners.
the Board of Trade. the Chamber of
Commerce, the Monday Evening Club.
and very many other Washington
civic organizations. is trying to pre-
serve against repeal the loan-shark
law and at the same time to restore
it by amendment to the shape in re-
spect to interest rate limitation in
which it was originally submitted.
They wish to preserve substantially
the law which has proved so effective
in expelling the lean sharks from the
capital, and tfey want at the same
time to increase tire interest rate limi-
tation in oI der that the pawnbroker
may return and that other money
lenders may be here to make at COM
paratively low interest rates these
small loans w,thour security.
Why shoDd not Congress approve
without hesitation this suggestion of
obvious improven ent in the law by
the persons who represented the COM
munity In pushing the present law to
enactmentf
The ISSUE is not whether the pawn
broker or the maker of small loans
without security shall monopolize this
business in Washington. The issue is
not to be decided in accordance with
the verdict as to which money lender
Is the more effective in verbally be-
rating the other. The community and
Congress are not concerned In the
prosperity of either form Of money
lender. Undoubtedly Congress will in
the end legislate in this matter solely
in the interest OF the community, dis
regarding vituperation. whether one
sided or competitive.