rities, and the remainder, or twelve-thirteenths, on the chattel mortgage of furniture.

Each applicant for a loan is questioned with great care. If the circumstances seem favorable for making the loan desired, he fills out a blank application, giving his residence, previous residence, business, good references, and other desirable information, and leaves a deposit of thirty-five cents.

An appraiser then goes to his abode, examines his security, and makes a schedule of the articles to be mortgaged, placing against each article the price that it would bring in an auction-room. A loan may be made to the amount of three-quarters of the total value so estimated; and this margin is, in almost all cases, required. The schedule, with the appraised values set upon each article by the appraiser, is entered by him on the back of the application, and filed in its proper place for future reference.

The borrower is required to show receipted bills for his furnit ure or to account satisfactorily for the absence of the same, in order to prove his ownership, and to show that, if bought on instalment, it is fully paid for.

The records are then examined to ascertain whether there is any existing mortgage on the property. In most cases, inquiry is made of the persons referred to or of other persons as to the character of the borrower.

If the investigation proves the loan to be a desirable one, the borrower signs a mortgage and note for the amount borrowed, and receives the money less the expenses charged.

Where the borrower is married, the signature of both husband and wife is required; and, generally, a general clause is inserted in the mortgage covering all furniture and household effects of every kind in his house.

Payments of the interest and instalments of the principal are made monthly, and receipts given for the same. In case of default for more than ten days, a notice is sent, with a charge of ten cents for the same, if it is the first notice. If the first notice proves futile, more imperative notices follow, for which a charge of twenty-five cents is made.

No investigation of the property mortgaged is made after the

appraisal. The notices sent serve to inform the company of any change of abode of the borrower, as in that case they are returned to the company by the post-office; and, by the attention that the borrower pays to these notices, a very good estimate can be made of the danger of losing the loan, and the measures of the company shaped accordingly. In nearly all cases, the deterioration of the property is more than made good by the monthly payments of principal made on each loan, so that a constant inspection is found not to be necessary.

The borrower's name is entered on a card, with his address; and on the back of the card there are entered in pencil the amount of interest and the date when it is due. The amount and the name of the month are changed from month to month, the interest growing less as the principal is paid off. These cards are so arranged as to show exactly what borrowers are delinquent at any time. They serve, therefore, as a convenient reminder of what loans are in arrears; and the amounts and date upon the back of the cards show exactly what interest is due and at what time.

The risk of the company from the danger of loss by fire of the goods mortgaged is met by requiring an insurance in its favor in the case of the larger loans. In the case of loans under $100, a small yearly payment is made by the borrower instead of taking out an insurance policy. The receipts from this source are credited to a "Risk Fund." The company, however, has been careful not to assume the position of an insurer. The charge is fifty cents. on loans under $50 and $1 on loans of from $50 to $100. Sometimes this system is extended to loans from $100 to $200.

RISKS OF THE BUSINESS.

The company has charged off since its organization as bad debts $4,133.44, and has at present estimated bad debts amounting to $1,106.73, a total of $5,240.17.

The amount of losses that it has suffered shows the risks to which lenders on such security are subject.

Many of the losses have occurred in the case of loans on other security than furniture mortgage; and experience has proved that

the safest way of conducting such a business is to confine loans almost entirely to chattel mortgage of furniture and household effects. It has been found that furniture can be sold at auction quickly and easily. It generally brings the prices at which it is appraised. It is estimated that only one-quarter of the purchase price of the furniture is loaned upon it by the company. The loan is thus so small in comparison with the value of the furniture to the borrower that there is a strong incentive to pay the loan.

Loans on horses, carriages, boats, pictures, merchandise, stocks in trade, druggists' stores, and machinery, have been made by the company, and have generally proved unfortunate.

Loans are seldom made on furniture in storage, as the storage charges are a constantly increasing lien on the furniture, if their payment is neglected by the borrower. Loans are avoided to people of constantly changing residence or disreputable character; and to certain of the foreign races, especially where their residence in the city has been of short duration. Constant care is needed to protect the company against lending on goods encumbered by lease or mortgage.

With all the care that can be exercised, losses will occur: certain bad borrowers disappear with their furniture: it is found too late that the security is encumbered: furniture is destroyed or worn out or sold. These losses are one of the necessary expenses of the business, and only great vigilance upon the part of the officers of the company can keep them down to a moderate sum.

Many inquiries have been made of this company by men in other places who have been interested in its work, and have desired to found similar institutions elsewhere. It is hoped that the success of this company in Boston, during the five years of its existence, may help to induce people in other cities to create similar companies to give working men and women facilities of borrowing money, at reasonable rates of interest, to meet their varying needs.