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The Commoner.
VOLUME Z, NUMBER U
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President Wilsons First Message to Congress
To tho Sonuto and IIoubo of Representatives:
I have called (ho congress tognthor In extra
ordinary hohsIoii bcoauBo a duty was laid upon
tho party now in power at tho recent elections
which it ought to porform promptly, in order
that the burden carriod by tho peoplo under
existing law may bo lightened as soon as pos
Hiblo and in order, also, that tho business in
torc'Hts of the country may not bo kept too long
in suspense as to what tho fiscal changes aro
to bo to which they will bo required to adjust
thonisplvcfl. It is clear to tho whole country
that the tariff duties must bo altered. Thoy
must bo changed to meet tho radical alteration
in tho conditions of our economic life which tho
country bus witnessed within tho last genera
tion. While tho whole face and n othod of our
industrial and commercial lifo wore being
changed beyond recognition tho tariff schedules
liavo remained what thoy wcro boforo tho
chango began, or have moved in the direction
thoy wore given when no largo circumstance of
our industrial development was what it if today.
Our task is to square thorn with tho actual facts.
Tho sooner that is done tho sooner wo shall
oscapo from suffering from tho facts and tho
eoonor our men of business will bo free to
thrivo by tho law of nature (tho naturo of freo
business) instead of by tho law of legislation
and artificial arrangement.
Wo havo scon tariff legislation wandor very
far aflold in our day vory far indeed from tho
Hold in which our prosperity might havo had a
normal growth and stimulation. No ono who
looks tho facts squarely in tho faco or knows
anything that lies beneath tho surface of action
can fall to porceivo tho principles upon which
rocont tariff legislation has boon based. Wo
long ago passed boyond tho modest notion of
"protecting" the industries of the country and
moved boldly forward to tho idea that they
woro entitled to the direct patronage of the
government. For a long time a time so long
that tho men now actlvo in public policy hai'dly
remember tho conditions that preceded it wo
havo sought in our tariff schedules to givo each
group of manufacturers or producers tfhat they
themselves thought that they needed in order
to maintain a practically exclusive market as
against tho rest of tho world. Consciously or
unconsciously, wo have built up a' sot of privi
leges and exemptions from competition behind
which it was easy by any, even the crudest,
forms of combination to organize monopoly;
until at last nothing is normal, nothing is
obliged to stand tho tests of efficiency and
economy, in our world of big business, but
everything thrives by concerted arrangement.
Only new principles of action will save us from
a final hard crystallization of monopoly and a
complete loss of the influences that quicken
enterprise and keep independent energy alive.
It is plain what those principles must be. We
must abolish everything that bears even the
somblance of privilege or of any kind of artificial
advantage, and put our .business men and pro
ducers under tho stimulation of a'- constant
necessity to bo efficient, economical, and enter
prising, masters of competitive supremacy, bet
tor workers and merchants than any in the
world. Aside from tho duties laid upon articles
which we do not, and probably can not, pro
duce, therefore, and the duties laid upon
luxuries and merely for the sake of the revenues
they yield, tho object of tho tariff duties hence
forth laid must be effective competition, the
whetting of American wits by contest with the
wits of the reBt of the world.
It would be unwiso to move toward this end
headlong, with reckless haste, or with strokes
that cut at the very roots of what has grown
up amongst us by long process and at our own
invitation. It does not alter a thing to upset
it and break it and deprive it of a chance to
change. It destroys it. We must make changes
in our fiscal laws, in our fiscal system, whose
object is development, a more free and whole
some development, not revolution or upset or
confusion. We must build up trade, especially
foreign trade. Wo need the outlet and the en
larged field of energy more than we ever did
before. We must build up industry as well, and
must adopt freedom in the place of artificial
stimulation only so far as it will build, not pull
down. In dealing with the tariff, the method by
which this may be done will be a matter of
judgment, exercised item by item. To some not
accustomed to the excitements and responsibili
ties of greater freedom our methods may in
some respects and at some points seem heroic,
but remedies may be heroic and yet be remedies.
It is our business to make sure that thoy are
genuine remedies. Our object is clear. If our
motive is above just challenge and only an
occasional error of judgment is chargeablo
against us, we shall be fortunate.
We are called upon to render the country a
great service in more matters than one. Our
responsibility should be met and our methods
should be thorough, as thorough as moderate
and well considered, based upon the facts as
they are, and not worked out as if we were
beginners. We are to deal with the facts of our
own day, with the facts of no other, and to
make laws which square with those facts. It
is best, indeed it is necessary, to begin with
the tariff. I will urge nothing upon you now
at the opening of your session which can obscure
that first object or divert our energies from that
cleaTly defined duty. At a later time I may take
the liberty of calling your attention to reforms
which should press close upon the heels of tho
tariff changes, if not accompany them, of which
the chief is the reform of our banking and
currency laws; but just now I refrain. For tho
present, I put these matters on one side and
think only of this one thing of the changes
in our fiscal system which may best serve to
open once more the free channels of prosperity
to a great people whom we would serve to the
utmost and throughout both rank and file.
White House, April 8. WOODROW WILSON.
Amsterdam's Municipal Ownership of Pawnshop;
By Dirk P. Do Young, Amsterdam, Nether
lands. In these days of political regeneration
and reform, tho idea of government regulation
of pawnshops emerges on the rostrum. Several
Btates and cities, vexed by tho perplexing prob
lom of loan-thieves, havo made various unsuc
cessful attempts to legislate against them, with
out much effect. And, whilo there aro doubt
loss many statutes on tho books aimed at usury
in its various iniquitous forms, it is unlikely
that thoro aro any governmental agencies in
operation in the United States which amoliorato
tho conditions of loan-sharks victims. If there
woro, the day of illicit money-lenders would
probably end soon.
In general, there is no place for a poor work
ing man in our country to go for financial assis
tance except to tho loan-shark or pawn-broker.
If tho poor man takes a watch worth $2.00 to
tho pawnshop as security for a loan, ho pays
GO centB on tho $2.00 ho borrows for 30 days,
or at tho rato of 300 per cent per annum. It is
by exploiting this class of people that the Shy
locks flourish. Why do we dotoct the splinters
in the oye of our social system and not the
beam? It would bo better to remove the cause
than to doctor the effect. A little studious appli
cation of old-world methods to our new-world
problems might emit some light.
A pawn-shop owned by the city of Amsterdam
has come vory near to the root of the loan-shark
evil. It has made the pawn-shop the poor man's
friend in need and has put tho usurious rascals
to flight. Why should American cities not give
thiB matter serious consideration?
It is hardly conceivable that municipal owner
ship Bhould go so far as to include pawnshops.
It has been done in Amsterdam, however, with
e. considerable success. They were taken over
perhaps more from necessity than for any con
templated gains which might accrue therefrom
to tho city's exchequer. As those institutions
aro generally unruly wherever found, and as
they aro better detective agencies when operated
by government officials, it was perhaps thought
wiser to havo thorn under government super
vision regardless of any loss or gain therefrom
Tho pawnshop of Amsterdam called the Bank
Van Leoning, is one of the oldest institutions in
tho city, dating back to tho fifteenth century.
Up to the year 1G16 the business was let by
the city to a private company, but as that com
pany refused to reduce the rate of interest on
pawned articles on the date stated, the city
annulled the contract, took over the business
itself, and has operated it ever since.
To the year 18 G3 the business was conducted
through tho intermediary of male and female
brokers, but so many complaints were made
against those persons that they wore dismissed
in that year, from which time all loans have
been made on direct applications in person at
tho pawnshop.
The first pawnshop in this city was established
whoro the main offlce of the municipal branches
is now located. The same building is also still
used. There was originally but one offlce, now,
however, fifteen branches are distributed over
different parts of the city which provide a branch
for almost every district in the municipality.
The institution is well patronized, but, of
course, by tho less opulent inhabitants. In 1908
advances were made on a motley collection of
articles valued at $1,947,616. Each article
pawned cost the establishment about $0.06 for
administration, and it i3 estimated that $20,000
per annum is actually lost on a largo number of
articles pawned which do not pay more than
$0.04 interest.
It is the custom among certain-classes of the
Dutch working people to pawn their best clothes
on Monday morning, redeem them on the Satur
day night following, and repawn them on the
following Monday, thus allowing them the use
thereof on Sunday. By Monday morning they
pave spent all their money and have to pawn
their clothes to raise expenses for the week
Saturday night when they receive their wages
they are again able to redeem them. It is a
noteworthy fact that more than 40 per cent of
the business of the pawnshop consists of thiq
sort of pledges.
The Bank van Leening (municipal pawnshop)
has a manager and five directors, who are ap
pointed by tho city council, three of whom must
be members of the last named body. A secre
tary is appointed by the burgomaster. At the
end of each calendar, year the directors submit
a balance sheet of the institution's business, to
gether with their recommendation for the ensu
ing year. The manager has the power to decide
all ordinary questions of loans, but in some few
instances he must obtain the sanction of the city
council, which generally follows the recommen
dation of the manager. The number of officials
and clerks to bo employed in the institution,
together with the salaries they are to receive,
are determined by the city council, as well. Tho
fathers may also remove the manager but the
directors may suspend him pending their final
action.
The revenues of the Bank van Leening aTe 'de
rived from interest on pledges; administration
charges, brokerage charges on the sale of un
redeemed pledges; and rents of such space in
pawnshop buildings as is not required for tho
institution itself.
The expense of operating the municipal pawn
shop, together with provision for pensioning old
age employes of the institution or as much as
their regular contribution deducted from their
Si"18 pension fund is deficient, are
paid from these receipts. Were there any short
RHS ? .tuLwho10 income it would of course be
levied in the usual course of taxation.
Thn0!?6 rUles of the Pawnshop, loans will
ww f on aments or other articles be
iSSS? relislous or charitable institution;
bv mnih f.Tar; ,or for otner articles damaged
EPrii0Wet lau.ndry; articles suspected to have
bvthfnSi,hlCare immediately attachable
or !v 2 Ial Pawn-brokers in any of the shops;
beinov tSimiir thinSs. The pawn-brokers
moS? n;!Cl(!, Plicomen and detectives, is the
stolen nSendabl0 feature of the system, as
stolen articles are usually pawned.
offlo nif00 5i0ffer!d.aB Pledses are appraised by
anv art'iol 0?ei mInimum amount advanced on
Tho I I3 1?,cents and the maximum $200.
nledip Z ,Paid i,n loans guaranteed by these
Snnfr ZQ fr 1? clothing or bedding, 6 per
In in inUm; ther artIcl0S not exceeding $20
excl?i S nPGr ?ent per annum' on sums in
on t flJ to?P t0, ?e maximum, 13 per cent
on the first $20 and 6 per cent on the rest.
dnvi rJVereSV? caiculated in terms of fifteen
mTf2 Mmlnlmum o onD term o interest
Hon tn Di ld?n QVery artlcle Pledged. In addi
trntinS X ' they must pay the regular adminis
4 mn I 5 are on every article, which is from
mills to 10 cents each. The rate of interest
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