sh prices.

When the poor man would borrow, he is often exposed to the impositions
of a class of unscrupulous money lenders, who violate the laws against
usury, but hope to escape punishment or loss through the ignorance of
their customers. The pitiful part of it is that the self-respecting
poor often fall into their traps. A family in pecuniary straits for
the first time is naturally attracted by the specious advertisements of
the chattel-mortgage companies, which offer to lend money on goods that
the borrower keeps in his possession, and promise that all negotiations
shall be strictly confidential. This seems an easy way out of present
difficulties without loss of self-respect or any painful publicity.
But the terms of the contract are far from easy in reality. Through a
system of bonuses, extra fees, or monthly payments for "guaranteeing"
the loan, interest amounting to from 100 per cent to 200 per cent a
year is wrung from the borrowers. Bled dry at last, and unable to pay
{116} such extortionate interest and the principal too, their goods are
seized, and the members of the household become objects of charity.
Whereever these chattel-mortgage companies gain any foothold, many of
their victims are applicants for relief. The law usually furnishes
ample protection, but the companies flourish through the poor man's
ignorance of the law.

As soon as a visitor learns that the goods of a poor family are
mortgaged, he should, at once, whether the company is pressing for
payment or not, learn the terms of the contract, and get an opinion as
to its validity from some friend who is a lawyer. The usual form of
contract in Maryland is a six months' mortgage, bearing 6 per cent
interest, with the legal charge for recording deducted from the amount
advanced to the borrower. But, in addition to this, notes for from
$2.00 upward, according to the size of the loan, are made payable
monthly to some third party who is supposed to guarantee the loan.
Lawyers advise no payments on these notes, and that principal and legal
interest be offered at the expiration of the mortgage. If this offer
{117} is refused, the company renders itself liable to damage
proceedings in seizing the furniture. In each case, however, it is
better to have a lawyer's advice, as the contracts vary, and ignorant
men, who thought they were signing a six months' mortgage, have been
known to sign a one month's mortgage instead.

The law against usury can