WAGE EARNERS

Hawke's Bay Tribune, Volume XVIII, Issue 163, 25 June 1928, Page 8

WAGE EARNERS

NEEDING LOANS IN HURRY.

U.S.A. BANKERS PLAN SCHEME.

New York.

Demands of small borrowers in New York State amount to about 350,000,000 dollars a year to take care of personal needs, home building and instalment buying, according to Albert Ottinger, Attorney-General of New York, who is co-operating with a group of bankers here to lighten the burden of the man who needs money in a hurry, but who has nothing save his earning capacity to offer as security.

At a conference between Mr Ottinger and a group of leading bankers, heads of labour and social agencies, city magistrates, attorneys, and others, just held here, it was brought out that millions of dollars are illegally taken from borrowers by illicit loan companies, whose interest and service charges have amounted in some cases to as high as 1000 per cent. To remedy this situation, it has been suggested that well-organ-ised corporations be chartered under the State Small Loan Act, acting with a guarantee company and a credit investigating bureau.

The conference appointed a committee of seven from the banking group to make an investigation of the situation.

Mr Ottinger said that legislation doubtless would be necessary, and that when the committee had made a survey, recommendations would be made to the New York State Crime Commission for changes in the laws governing money lending. The general opinion expressed was that an interest rate of 6 per cent, would not be enough.