Evening star., 1922-03-26
FAVOR BILL BACKED
BY
Associated Charities Views
Are Given on Remedial
Loan Legislation.

The following statement support
ing the Commissioners bill. for the
regulation" of .,pawn broking in the
District, tH.R. 5015) was given out
by Walter S. Ufford, general secre-
tary of the Associated Charities, last
night;
The Associated Charities of the
District Of Columbia has spoken
! through IT'S board of managers on
many occasions in the past by means
of resolutions formally adopted ana
addressed to the District committee
of the Senate and the House, urging
as strongiy>as the board knew now,
remedial loan Legislation for the ben
| eft. of needy borrowers.
| Justice Brewer, president of the AS
sociafed Charities. for several years
preceding his death, was a eharter
member tf the citizens committee on
| rem edial loan Legislation, the same
| committee which mas been advocating
remedial action since 1909. Justice
Brewers profound knowledge OF lesal
| institutions seemed only to enhance
| his interest in everyday social prob
lens He was devoted friend OF
! the handicapped and the oppressed
J His commitment. therefore. TO cause
having for it's object the extension OF
/ reasonable credit at reasonable rates
! of interest to the man whose assets
/ lie in character rather than in goods.
Iwas a. commitment in line with Jus
! tice Brewers broad humanitarian
| isympathies.
stopped Looming Of Money.
/; 1.-The chief Worthwhile accomplish
| ment of the citizens committee in all
/ these years of agitation. was tie pas
| sage of the present loan law in 1913.
| recommended by the citizens com
mittee. namely > per cent per month.
was amended by Congress TO ] per.
| cent. while. tss-refora. the law has
| served to sweep the District clear OF
| the 200 and 800 per centers OF Justice
| Brewers time, it has also stopped the
loaning of money to needy borrowers
| of this class OF this the Associated
Charities has ever since hal evidence
in the monthly reports MADE ny It's
| social workers.
"These reports fail to bear out the
| opinion expressed by Congressman
| Focht, chairman of the present House
District committee, that the business
has now fallen into the hands OF
the loan sharks. 1t is the experience
Of the Associated Charities. on the
! contrary, that the loan shark who
| was so much in evidence before
| the passage of the present bill mas
! since practically disappeared from
Washington. The testimony of the
visitors of the Associated Charities
is contained upon their monthly re-
port blanks covering such items as
| Unemployment, illness. Insertion.
on-support, and other serious handi-
caps One of the items upon which
reports are received monthly is
| number of families victimized by
/ loan sharks"
| Marked Contrast Seen.
| Out Of the l,497 families last year un-
| der the care of the Associated Charities
only four were reported under this title
and three Of these We're in the district
I; dealing largely with transients and out
Of-town applicants. This situation is in
marked contrast to the days when the
| 200 and 300 percenter flourished. Then
the society was continually appealed to
by those who had fallen in the hands
of the loan shark. In those days the
visitors of the society had as one of
their tasks to accompany borrowers who
We're being victimized to the Office of
the loan sharp companies for the pur-
pose of cancelling the claims against
their clients by the payment of the prin-
lcipal and LEGAL interest. This situation
/ was ended by the passage of the present
law. But the results have been a
vacuum. Capital cannot be attracted
into this business at the present rate
:of interest allowed for this class of
loans.
at is, however. the testimony OF
experts that what is needed to bring
of the Commissioners bill, H. r
5o15. which would allow a rate OF
! interest of per cent a month. This
is the bill advocated also by the cit
izens' committee and indorsed by the
largest civic organization of Wash
ington. The passage of the proposed
pawnbroker bill, H. r. $500. would
not give the relief that is needed tC
that class Of borrowers in whom the
Associated Charities is particularly
Associated Charities is particularly
of jewelry and diamonds to be de.
posted as security for money loans