The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1939-06-29
|WHAT OTHERS SAY.

Red Wing Republican, On June
the much discussed small loan law,
passed by the last session OF the MIN
neSota Legislature, went into effect.
At every legislative session for the
past 20 years the proposal Of regulat-
ing small loans has brought forth con-
troversy and accusations.
The new law was sponsored and ac-
lively supported by the Minnesota State
Federation of Labor, civic clubs and
social workers and Governor Harold
E. StaSsen personally urged the legis-
lature to pass such law.
From facts at hand the only known
opposition to regulate small loans came
from the illegal lender of the big city,
who disliked to have his business reg
ulated in the public interest and sup
ervision by the State Banking Depart
ment.
Whatever the merits or dement's OF
the arguments of the proponents and
opponents of the new law, the fact
exists that it is now the law OF the
State and as such it entitled to far
trial.
The law establishes maximum rate
of charge so there can be no extra fees,
fines, or charges of any kind. NO loan
office can operate without a license
from the Banking department. Vlo-
lations will result in cancellation OF
license.
The Banking department also can
make regulations not in conflict with
the law and for the protection OF the
borrower by many small loan lenders
without a bank account and who has
no collateral and is unable to obtain
endorsers on a note. Under highly
competitive conditions now prevailing
it very often becomes necessary for
those in this class to have reputa-
BILE source where an emergency small
loan can be obtained.
This necessity and the abuse of the
borrower by many small loan lenders
is no doubt the reason why the regu-
latory law was enacted. Only recently
the Supreme Court of Minnesota in a
case against small loan lender by the
county attorney of Hennepin county
hold that small loan lender who made
illegal small loans was public nuls-
ance and public officials were Justi-
fled in asking the courts for an in
junction against them and that a re-
ceiver should be appointed to close out
their illegal business.
The new Minnesota law was passed
to protect all the workers of Minnesota
wherever they may live in the state,
sponsors claim.
While the problem is the greatest
in the Twin Cities and Duluth, workers
in the smaller communities also car
find themselves in need of immediate
small loans to tide them over emergen-
cieS and they, likewise, are entitled to
the full protection of this new law.
Under present policy, licenses to make
small loans can only be issued to con-
Germs in these three large cities. There
is a demand from the smaller citieS
that the Governor and State Banking
department change their program al
to make it possible for establishment
of regulated small loan office in each
Of the trading centers of Minnesota
where people are employed in stores
factories and offices, so that they car
have the same advantage under the
law as st. Paul, Minneapolis ano
Duluth.
These loan agencies handle small loans
and cater to class of clients who
cannot obtain loans from banks
through lack of collateral or inability to
obtain proper endorsers for notes.