36                                   FIRST ANNUAL REPORT  OF

12 to 14 months' grace after his loan becomes due, during which
time he can well redeem his pledge. If not redeemed then, it is
sold at public auction, and if it fetches more than the amount
due on it, the overplus is returned to the borrower as a bonus.
During the year 1891, less than 8 per cent, of the articles pledged
had to be sold. Of all of these articles sold, 825 per thousand
realized somewhat more than was due on them; 78 per thousand
left a loss to the Institution, and 97 per thousand realized exactly
the amount due.

All articles left with this institution are insured against fire,
up to the value of money loaned on them, with different com¬
panies. There are more than 20 branch offices, covering the
City of Paris, where articles can be delivered and small loans
secured.

The minimum loan that the " Mont de Piete " of Paris makes
is 3 francs (60 cents); but as it obtains the necessary capital at
a very low rate of interest, the large amount of business has
enabled this institution to reduce the rate of interest to be
charged (covering all running expenses, etc.,) to about 7 per
cent per annum.

The " Mont de Piete " of Paris, although it shows the possibil¬
ities of such an institution, cannot, perhaps, be regarded as a
criterion for New York city. We therefore add a few figures,
showing the results of the operations of the Royal Pawn Office
in Berlin, where the conditions are similar to those of New York,
the Prussian law allowing private pawnbrokers to charge at the
rate of 24 per cent, per annum, whilst the law of the State of New
York allows them to charge at the rate of about 30 per cent, per
annum.

In the year 1889-90, the Royal Pawn Offices of Berlin loaned
5,000,000 marks ($1,200,000) on 240,000 objects ; average amount
of loans, 21 marks ($5). Inclusive of renewals from previous
year, its total transactions amounted to about 10,000,000 marks,
or $2,400,000. The smallest amount loaned was 2 marks, or 50
cents.

The maximum rate of interest to be charged by this and all
similar institutions in Prussia is fixed by law at about 12^ per
cent, per annum. The Berlin Royal Pawn Office charged, on an
average, from 1888 to 1889, lOJ per cent, per annum.

In the city of Cologne-on-the-Rhine, there were loaned in
1891-92 about 760,000 marks on about 95,000 articles, making