THE GLOBE. WEDNESDAY, DECEMBER 22, 1880. THE PAWNBROKING BUSINESS.

Globe, Volume XXII, Issue 2131, 22 December 1880, Page 2

THE GLOBE. WEDNESDAY, DECEMBER 22, 1880. THE PAWNBROKING BUSINESS.

It is probable that as long as there are poor amongst us there will be pawnbrokers also. And, indeed we are not only alluding to the absolutely poor, hut the relatively poor. Per instance, the absolutely poor woman pawns her goods to procure food for her children, the relatively poor woman pawns her diamonds that she may live on for a short time longer in luxury. With regard to the latter class, pawnbrokers are evidently not a necessity; with regard to the former, we fear that they are, except some other system be invented by which money can he raised on personal property at a moment’s notice. For the numerous class of people who live from hand to mouth the pawnbroker’s shop is an institution of great importance. It is true that it is surrounded by a mystic gloom, and that there is supposed to be something disreputable in the act of pawning. Bat looked at calmly, it must at once be seen that there is no foundation for such a feeling. It is disreputable simply as being an indication of poverty. A man has just as much right to raise money oh his jewellery or any other personal property as he has on his land. The one action is not one whit more immoral than the other, and it appears to ns to he the duty of the Government to protect the very needy who, from their very necessities, are most liable to be handed over to the spoiler in the day of trial. This is fully recognised in France, where the pawnbroking system is of a most philanthropic character. In New Zealand a law has been passed on the subject far from philanthropic, and it will, we think, be conceded by all who pause for a single instant to glance at the regulations in force in New Zealand, that a radical change in the present state of affairs is essentially necessary.

The “ Mont de Piete ” in France is a Government institution, and in its present form was introduced towards the end of the last century, but its fuller development took place under the Napoleons. It lends money on valuables at 9J per cent.,' and by allowing a commission of one-half per cent, to the appraiser, makes the latter responsible for the institution obtaining, in the event of its being compelled to exercise its powers of sale, as much for the article as was advanced upon it, plus interest and expenses. Should the borrower fail to pay interest within twelve months of the time he obtains a loan, the security is sold by auction and the balance (if any) remaining after the realisation of the snm lent, the interest thereon and the cost of valuation, is passed to his credit in the books of the institution. If not claimed within three years, it is handed over to the charities, Now contrast this with the system, or rather want of system, that exists in this country. In the Pawnbrokers’Act of 1868 wefind the rates to be charged on different sums from half-a-crown upwards. We will take the last clause of this section, because it treats of the sum of £l, a convenient snm to deal with. It runs as follows: —“For every pledge upon which shall have been lent the sum of one pound shall be charged one shilling and four-pence per month, and so on progressing up to ten pounds, and beyond that amount, a sum not exceeding the rate of fifty per cent, per annum, which said sums shall be taken in lieu of and as a fall satisfaction of all interest due, and charges for warehouse room or on any other account whatsoever.” For every pound borrowed for a year, therefore, the poor man in New Zealand is obliged to pay sixteen shillings; if, in France, he would only have to pay one shilling and ten-pence. And even this is not all. In France articles pawned are only sold at the expiration of a year. In New Zealand, in case of goods which are not wearing apparel, they are sold in six months; in the case of wearing apparel it is sold in three months. In France any surplus over the principal money and interest thereon can be claimed by the original proprietor of the articles any time within three years; in New Zealand any time within one year only. But of course it is with regard to the rate of interest charged under onr regulations that the principal argument lies. A charge at the rate of 80 per cent, per annum is hard on the poor man who may be reduced, although he be perfectly honest, either by disease or some other cause, to be forced to raise money on his goods and chattels. That any Government should countenance such extortion as is allowed under the Act is not creditable. The French Legislature have treated the subject from a humane and common-sense standpoint. We wish we could say the Same of onr Legislature.

OUR RANTIPOLE CONTEMPORARY.

Feom the mass of nonensieal rodomontade published by our contemporary the “ Star,” in its issue of Saturday, when our ex-Mayor Ick was eulogised to the Seventh Heaven —in the opinion of his many friends at least—by the Bombast es Fnrioso of Cathedral square, we cull one “ leetle ” gem. Speaking of the many virtuous acts of ex-Mayor Ick, the “ Star ” says :

' “ The last, the closing scene in his Mayoral career was when he went down to a speoia meeting of the Hospital Board, called for Thursday last, in order to secure the record of his faithful vote for the retention of a disgraced and dishonored staff.” Now, as a matter of fact, the Hospital Board met one day sooner, not to allow Mr, Ick to be present; far from it. But absolutely for the purpose of securing the

attendance of Mr. W. Montgomery, M.H.R., who was under an “ electoral ” pledge to spend a few happy hours among his constituents on the occasion of the Akaroa Anniversary festivities, where a good time in the way of warming up electioneering pledges could naturally be expected, and should certainly not be lost sight of in these troublous political times. Mr Montgomery, needless almost it is to say, is a red-hot partisan of the old mildewy Staff, and voted against the present men.