The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-09-03
NJ e m b e rs Are
Able to Get Small
Accommodation
Withou Col
lateral a t the
Usual CONNER
cial Banking Rate
of 6 Per Cent.
BY DIRK p. DE YOUNG.

BY DIRK p. DE YOUNG.
TINE small Western city in which
my alma mater is located com
= prises about $4,000 inhabitants,
mostly retired farmers OF the Corn
Belt. have not been there for a
long time. so that I am unable at
present 10 count the pawnbrokers
among them. but during my under
graduate days. nearly twenty years
ago. there must have been upward Of
fifty--one for each 1000 OF the pop
ulation-doing a thriving business in
that farmer and college town.
The records OF those money lenders
IL available to-day would reveal the
names OF a good many men now prom
inent In professional or business
circles who in the days OF their youth
had on more than one occasion 70 nego-
tiate a loan. Indeed. many a college
man OF that day-and their sons are
still following in the footsteps OF their
illustrious fathers-has Mt times had to
put some Of his most valuable text
books "in hook" In order to appear in
handsome and gala dress with a
pretty coed at a junior prom.
l am not going TO tell on the other
fellows. but know this to be a fact
from personal experience and observa-
ton. have had considerable deal
ings myself with money lenders. In
fact. have now watch which was
pledged eighteen times during my col
lege career.
Others, more profligate still. during
fair weather would pledge their dress
suits. which would have to be re-
deemed for use at the formal functions
OF the student world. Textbooks were
then pawned as last resource for
| emergency financing. and you will
fully appreciate the feelings of a
youth on the morning after, when con-
fronted with the stern problem of
ways and means of redeeming such
interesting books as John Stuart Mills
Principles Of Political Economy.
Provident Loan Society
Helped to Stabilize Rates
The pawnshop business in the East
particularly in New York city, also
f1ourished like green bay tree at that
time. although the Provident Loan
! Society, established by special legis-
lative act in 1894. to combat the opera
tons OF loan sharks, was already be-
coming factor in that field Of finance.
Some idea of the extent of such
business may be deducted from a re-
cent report Of the Provident Loan
Society OF New York city. in which II
claims to save the people of the me-
tropolis over a million dollars a year
which its customers might under the
old system OF pawnbroking pay In
usurious rates. The outstanding loans
of that institution average above
s10,000.000 to about three hundred
thousand borrowers, who pay an inter-
est rate of l per cent. month, loaned
in average amounts OF $35, on jewelry,
plate and other personal property.
The pawnshop of quarter of CEN
fury ago with the three balls. a symbol
which has disappeared from the en-
trance of many Of the pawnbrokers
offices. was not only a rendezvous for
the needy, but IL was often a clearing
house for thieves. Indeed, many OF
the pawnbrokers were themselves in
league with the burglars of the me-
tropolis. But the strict control which
Is now exercised over these institutions
In New York city, and in some other
cities OF the United States, thanks to
the tireless work of the Remedial Loan
Societies. has brought about a better
situation in that regard.
Other agencies at work, not only
here, but in Europe more especially
whence the idea originates-to encour-
age thrift are the credit associations.
known in Europe as cooperative asso-
Citations. in all other countries as credit
societies. and here as credit unions. The
high cost of loans in such institutions
as the Remedial Loan Associations
I per cent. a month--and as high ms
| 2 per cent. in others-and per cent.
in the private pawnshops, has brought
into being many credit unions. In which
the members get facilities, without
collateral security, at the usual COM
mercial banking rate Of about per
cent. per annum. Regarding these.
Arthur II. Ham, vice-president OF the
Provident Loan Society OF New York
city. In an address before the National
Conference of Charities and Correction
at Indianapolis, Ind, May Is. 1916.
said: