Evening star., 1922-03-17
EXPLAINS STAND
ON PAWNBROKERS
Representative Focht's Side
of Controversy Given in
House Speech.

Representative Focht, chairman of
the House District committee. reply
ing to a statement yesterday by the
citizens committee on remedial loan
legislation regarding Mr.. Focht's bill
known as H. R. 630s. designed ito
regulate and encourage the pawn
broking business" referred to his
statements in the House Monday. in
which he explained his bill. Yes
terday's statement pointed out that
the District Commissioners opposed
the Focht bill.
In support Of his bill. which he
asked the House to consider Monday.
Mr.. Focht said. during the course OF
| his speech:
mfr. Chairman and gentlemen of the
committee. in presenting bill OF
committee, there might be such
, thing as an apology offered II 1t
! were not for the fact that the sys-
tenn OF charging rates OF interest for
| the use Of money has obtained
throughout the history of the world,
! even from the time when the Master
drove the originators of the scheme
| out Of the temple. That seems to
have met the whole matter. anything
aside from what is duly prescribed
by law. and assumes that dignity of
what they call a banking system.
unfortunately. in the District Of
Columbia the loaning of money has
descended to a point where it is
| characterized and denominated as a
| species of graft operated and con-
| Quoted by loan sharks. or whatever
! they are. There are two kinds of
money-lendinS business throughout
! the United States. 1t is recognized
! and sanctioned by law in every state
(, in the Union, There was at one time
a flourishing business in the District
| Of Columbia up until February 4,
! 1918. when there was enacted a law
| here governing pawnbrokers and
what they called loan sharks. holding
| the rate Of interest allowable to ! per
cent month. AS consequence of
that law, I am advised that not one
loan under its restrictive provisions
has been made since that time. hence
the demand has come to Congress
| through the committee on the Dis
trict of Columbia, the agency or the
medium through which these mat
and We find here in the report sub
mitted May is. 1921, an appeal for
relief from this per cent, which
makes it prohibitive to secure loans
! from rawnbrokers. There are at
least thirty different associations
1
lures of this legislation. as follows:
The Central Labor Union Of Wash
| ington, D. c.: the Chamber of Com
! merce of Washington. o. c.: the Cen
trail Union Mission of Washington, D.
c.: the Private Soldiers and Sailors
citation. the Central Citizens Associa-
tion. the Bradbury Heights Citizens
Association, the Citizens Northwest
Suburban Association. the West End
Citizens Association. the Howard
Park Citizens Association. the South
Capitol Heights Citizens Association,
the Brightwood Citizens Association,
the Seat Pleasant Citizens Associa-
tion, the Civic Betterment Associa- l.
ton, the Northwest Washington Citi-
zens.. Association. the Deanwood ci.i-
Woodburn Citizens Association. the
Randle Highlands Citizens Associa-
ton, the Prince Georges County Citi-
zens Association, the Southeast Citi-
zens, zen s. ,ASsocis ton. the Southwest
Hillside citizens' Association. the
East End Suburban Citizens Asso-
citation. the Georgetown Citizens As
sociation.. the Langdon. Woodbridge
lCitisens' Association, the East WASH
ington Citizens Association and the
Nov, that IL the source from
whence comes tho importantly to re-
store some method by which more
loans can be made. The rate charged
by the different states runs all the
way from per cent to 10 per cent,
and in most Of the states there is an
added fee.
Explains Interest Rate.
In support Of his bill. H. r s3os
which. he had asked the House to
consider Monday. Mr.. Focht explained
that the interest rate for the bill
tflxed at 2 per cent per month on
loans over $35 and s per cent on
loans less than $s5) had the .advan.
tage Of precedent, as other states had
money. Tho rate charged BY the
different states" he said. 'runs all the
way from 3 per cent to 10 per cent
and in most Of the states there is aI
Now" continued Mr.. ,Focht. "wha,
was very much interested originally
in measures Of this kind, and they
thought that ! per cent would bt
sufficient; but dnd here. in q
bulletin OF. the National Federation
,nsS LGa2 r.
terest and claim that money cannot
per cent. I find also here that Tn
the state of Ohio. in an act Il
says: No licensee shall charge, re-
ceive or demand in excess Of pei
cent per month interest on any loans
or discount on any conditional pur-
chase. up to and including. the sum
| OF ss5. or In exeess Of = per cent
shov0' tbs sum OF t2S..' Now. tha,
Leaves the matter. with yeu. ms
i friends, % TO the amount i HAst'
ters not 20 me Ut all. an eimply
the agent that hrinss this sen be-