In Portugal the monte pio is an amalgamation of bank, benefit society and pawnshop. Its business consists chiefly in lending money upon marketable securities, but it also makes advances upon plate, jewellery and precious stones, and it employs officially licensed valuers. The rate of interest varies with the bank rate, which it slightly exceeds, and the amount advanced upon each article is about three-fourths of its certified value. There is in Portugal a second class of loan establishment answering exactly to the English pawnshop. The pawnbroker is compelled to deposit a sum, in acceptable securities, equal to the capital he proposes to embark, and the register of his transactions must be submitted quarterly to the chief of the police for examination.
Russia.—In the Union of Socialist Soviet Republics pawnshops are exclusively a state institution regulated by law and managed by the urban Soviets. The ordinary objects are accepted in pledge, but paper securities are barred. Articles may be pledged for a total period of fourteen months, but in the first place for four months only. There can then be a two months' renewal, followed by another of four months, with the right to a further prolonga tion of two months, with a final two months to complete the total permissible period. As much as 90% of their value may be lent upon the precious metals, but not more than 75% upon other goods. The rate of interest is fixed by the urban Soviets, and rati fied by the People's Commissar for Finance, and varies from town to town. In Moscow it is 1% per month on pledges ranging in value from i to 15 roubles, ii% on those ranging from 15 to 25 roubles, and 2% for those of higher value.
Scandinavia.—Pawnbroking in Denmark has existed since 1688, but in 1753 the Royal Naval Hospital was granted the exclusive right to establish a "Royal Lombard" for advancing money on pledges, and was allowed to charge higher interest than the law permitted. The "Royal Lombard" still exists and does a very extensive business. The rate of interest is II% per month. The duration of a loan is three months, renewals being allowed. The old law was extended in 1867, when pawnbrokers were re quired to be licensed by the municipalities and to pay a small annual licensing fee. The rate of interest was such as might be agreed upon. The business is now regulated by a law of 1921 which applies both to the "Royal Lombard" and to private pawnbrokers, and limits the rate of interest. Up to Jan. 1st, 1926, the maximum rate of interest was 5% a month ; from Jan. 1st, 1926, to Jan. 1st, 1936, it is fixed at a maximum of 4% a month, and from Jan. 1st, 1936, the maximum will be a month. During any of these periods a lower maximum rate of interest may, however, be fixed by the police in the various jurisdictions. All unredeemed pledges may eventually be sold by auction, though the loan may be renewed at any time before the sale. The Act of 1921, which also limits the granting of pawnbrokers' licences, will presumably result in the gradual disappearance of professional pawnbrokers, the greatly reduced rate of interest leaving but a small margin of profit.
In Sweden there are no special statutes affecting pawnbroking, with the exception of a proclamation by the Governor of Stock holm prohibiting the lending of money upon articles which may be suspected of having been stolen. Individuals still carry on
the business on a small scale, but the bulk of it is now conducted by companies, which give general satisfaction. For many years there was in Stockholm a municipal establishment charging o% for loans paid out of the city funds. The cost of administration was, however, so great that there was an annual loss upon its working, and the opportunity was taken to abolish it when, in I88o, a private company was formed called the "Pant Aktie Bank," to lend money on furniture and wearing apparel at the rate of 3 ore per krone a month, and 2 ore per krone a month on gold, silver and other valuables ; a krone (nominal value, is. 1 ld.) contains 1 oo ore. Some years later an opposition was started which charged only half these rates, with the result that the original enterprise reduced its interest to the same level, charging, however, 2 ore per krone per month for bulky articles—a figure which is now usual for pledges of that description. The money is lent for three months, and at the end of five months the pledge, if unredeemed, is sold by auction under prescribed conditions.
In Norway a police licence is required for lending money on pawn where the amount advanced does not exceed £4, los. Beyond that sum no licence is necessary, but the interest charged must not exceed such a rate as the king may decide.
Switzerland.—The fate of pawnbroking in Switzerland ap pears to be not very dissimilar from that of the Jew who is fabled to have once started in business at Aberdeen. Nevertheless the cantons of Bern and Zurich have elaborate laws for the regulation of the business. In both the broker must be licensed by the can tonal government, and the permit can be refused only when the applicant is "known to be a person undeserving of confidence." Regular books have to be kept, which must be at all times open to the inspection of the police, and not more than 2% interest per month may be charged upon loans up to 5o francs, II-% between 5o and 30o francs, and 1% over 30o francs. A loan runs for six months, and unredeemed pledges may be sold by auction a month after the expiration of the fixed period, and then the sale must take place in the parish in which the article was pledged. The business is unprofitable owing to the low rate of interest, and in the cantons of Bern, Fribourg and Neuchatel there are only two pawnbrokers. The Zurich cantonal bank, however, conducts a pawnbroking department, which lends nothing under 4s. or over £40 without the special sanction of the bank commission. Loans must not exceed two-thirds of the trade value of the pledge, but 8o% may be lent upon the intrinsic value of gold and silver articles. The establishment makes practically no profit.