General Legislation Governing Pawn shops.—Article 1 of the law of 16 Pluviose Year XII is formal :— No pledging establish ment can be founded unless the government's authorization be obtained, and its profits ap plied to the relief of the poor. In order to make it quite clear that it is a state monopoly, article 2 provides for the closing of any es tablishment, which, during the six months of promulgation of the law has not been authorized as prescribed in article 1,, and such establish ment must cease its operations and wind up its affairs within one year. The law contained all the necessary powers to inflict heavy penalties on offenders, who could be prosecuted before the police tribunals and condemned to a cor poral penalty ranging from 500 francs to 3,000 francs ($100 to $600), which could be doubled in case of a second offense. These sentences were independent of confiscation in every case of the goods given as security.
The Empire period (1804), which succeeded the Consulate, ratified the application of the law by a decree of 24th Messidor, Year XII (13 July 1804) providing as follows:— (a) the con ditions under which the total reimbursement must be effected of the sums paid by the share holders into the funds of the pawnshops and their elimination from the administration of the establishment; (b) the administrative or ganization of the Paris pawnshops; and (c) the rules to be followed by the departmental prefects for the organization of pawnshops in places where they would likely to be of public utility, and for the closing of independent firms in such places.
The privilege of making loans on pledges thus organized in favor of pawnshops is still protected by article 411 of the Penal Code which enacts, against those who have kept or established pledging houses, a term of imprison ment amounting to 15 days minimum and three months maximum, apart from a fine rang ing from 100 francs to 2,000 francs ($20 $400). The old regime restored by the law of 16 Pluviose and the supplemental decree of Messidor was still further completed by a de cree of 8 Thermidor, Year XIII (27 July 1805).
This decree, after prescribing the reimburse ment without delay of the shares of the pawn shops, determines the regulations under which the Paris pawnshops will operate thereafter. It is this general regulation which still fixes the principal conditions for the carrying out of loaning operations by pawnshops, and which we will outline in the future in this article. For
thepresent suffice it to say that the terms of the Thermidor decree, by articles 55 and 56, laid down the method of remuneration to be received by the pawnshops from the borrowers, the rates of such remuneration being made up on the one hand, of the interest on the sums lent, and on the other of the expenses of valuation, deposit of security and other general administration expenses. The law of 24 June 1851 defined the legal status of pawnshops and outlined the measures to be taken for better administration. By virtue of this law, pawn shops were recognized as being establishments of public utility, and were governed by the regulations applying to public utility establish ments in general, as laid down in the decree signed by the President of the French Repub lic. The board of directors of pawnshops is presided over by the mayor of the commune, and by the prefect for the department of the Seine for Paris. For Paris the directors are nominated by the Minister of the Interior, and for the departments by the prefect. They are chosen as follows :— one-third from amongst the members of the municipal council, one third among the directors of charitable insti tutions, one-third among other citizens domi ciled in the commune. One-third of the mem bers are renewed each year. The retiring mem bers may be re-elected. The decree determines the organization arrangements for each one of the pawnshops and the conditions for their management. The manager of a pawnshop, where such exists, or the responsible official, is nominated by the Minister of the Interior, or by the prefect, on the recommendation of the board of directors. In case of refusal by the Minister of the Interior or the prefect, the board of directors is requested to nominate an other candidate. The dismissal of the manager is sanctioned by the same authorities. The pawnshops are, as regards their accountancy de partment, assimilated to charitable institutions, that is to say, they are considered as being gov erned by the same regulations as the latter.
The endowment of each pawnshop is regu lated by article 3 of the law of 1851, and is composed of :— (a) real and personal estate serving for its establishment and those of which it is, or may become later, proprietor; especially donations and legacies; (b) profits and bonuses shown by the annual inventory and capitalized; (c) subsidies which may be granted them out of the communal funds of the department or of the state.