FRANCE'S PATERNAL PAWNSHOPS.

Lake Wakatip Mail, Issue 3376, 2 March 1920, Page 6

FRANCE'S PATERNAL PAWNSHOPS.

GOVERNMENT RUNS THE BUSINESS, WHICH PAYS A HANDSOME PROFIT. When the Parisian wants to raise a Joan he dots not have to go to a pawnshop which is kept for "uncle's" private profit. All the pawnshops of France are under direct Government and municipal control, over each floats the national Hag of France, and the doors are g aided by French soldis rs. The French bno .er regards the putting of his good-; "up the spout" strictly as a business transaction with the Government. There is no haggling over the sum to be advanced, for th ■ pccmle !no . th it all the profits of the establishment will finally go back to them. Four-fifths of the value is advanced »n articles of jewellery, while on other articles about two-thirds is allowed. The interest is 7 per cent, per annum. Should a borrower be in the unfortunate position of ha'ing paid interest for many years without being able to release the article, the authorities will return it without any further fee. When interest has not been paid, the object in question is sold by a ction, and after the sale has been elected the original loan and interest are deducted from th' money secured and the surplus roes to the borrower. Rhoild the money remain unclaimed, it is turned over to the French hospitals. These hospitals arofit to the extent of about 2500 dollars a year. Ihe number of pawned articles totals 2.n'0,0»0 annually in Paris alone, of which l,n<)\000 are effected at : ; loss, sine no auctun will bring a o ermlete return on small objects. but this dues not trouble the officials concerned, for should there be a deficiency on the other 1,000,000 articles the municipality does not hesitate to raise the rates, arc! thus by means of an indirect taxation the well-to-do support the needy. r '~b fie pawnshops require a larc-e ■ ea it 1, which is usually subscribed ! by legates, gifts, and subventions of | the State department or the comi mun\ In this way some >.f the I establishments are so wcllenfl<v-.f| I that no interest is chareed to I "ne-h'ws." ; This svstem has enabled Ua r is to I fond ict the largest j business in the world, "h '■ ' i revenue is Pl 63 f fiflii, th" e ' I nrof«ts £«000, accordi'v: to <h i ofiicial figures.—"Stray Stories "