Pawnbroking Operations.— Every applica tion for a loan on corporal security is subject to various formalities including: Valuation of the pledge to be given; offer and acceptation of the loan; the drawing up of a statement of appraisal; official pawnticket; various entries on the books of the deposit office; proofs or authentications required by the regulations; the payment of the loan and delivery of the cor responding pawnticket, or suspension of the payment and delivery of a document respecting the pending loan, or the cancellation of the op eration and restitution of the pledge.
In Paris, the valuation of pledges is ef fected for pawnshops by the public appraisers of the department of the Seine. There are in all 20 of these public appraisers. According to the rules under which they carry out their du ties, they have the right to choose their assist ants, for whom they are responsible, although they cannot issue official documents without the consent of the administration. The °Com pagnie des Commissaires Priseurs" (public ap praisers) is responsible to the pawnshops for the results of the valuation and if theproceeds of the sale of a pledge are not sufficient to cover the amount loaned, said compagnie must make up the difference between the price real ized by the sale and the valuation on which the loan was based. In the provinces, notably at Lyons and Bordeaux, the valuation is effected by public appraisers also. This, however, is not always the case, as at Lille for instance the appraisement is made by competent valuers at tached to the pawnbroking staff. Furthermore, commission agents established in Tourcoing, Armentieres, Coumines and Estaires are attached to the Lille pawnshop. Finally, at Nice another system exists, the two pawnshops in this town advancing money gratuitously on gold and silver articles only. The appraise ment is made by a jewelry expert attached to the administration, by whom he is remunerated. The amount of the possible advance is fixed ac cording to valuation, and a deposit-receipt to bearer is given. The limit of loans based on the valuations is fixed as follows: For silver ware, gold or jewels, four-fifths of the value by weight; for all other articles, two-thirds of their value. The minimum of loans is three centimes and the maximum is unlimited. Loans are made for a period of one year. The fore going are not, however, the only regulations provided in the decree of 8 Thermidor Year XIII (27 July 1805). For instance, by virtue
of article 49, should a doubt exist as to the identity of the depositor, or his legitimate own ership of the articles, or his right to dispose of the goods, the payment of the loan may be temporarily suspended pending inquiries. The borrower has the option, however, of giving surety as to his identity. As the loan document must bear a signature, if the borrower is un able to write, such document may be signed by a responsible party known to the pawnbroking authorities.
Redeeming of If at the expiration of the period noted on the loan document, or before that date, or even after such date, so long as the sale has not been effected, the bor rower presents the pawnticket and settles his debt in full, i.e., principal, interest and expenses, his property is restored to him. (Regulations of Year XIII (1804-05) modified by article 69 of the law of 30 June 1865). Any respite from sale allowed to the borrower, at his re quest is not suspensive of the rates of interest. The rate of interest and administrative ex penses payable by borrowers are fixed every six months by prefectoral order, but such rate of interest must never exceed 12 per cent (decree of 24 March 1852). In 1913, the Paris pawn shops charged per cent interest, the same rate for administrative expenses, plus a special tax of 1 per cent which is always payable what ever the duration of the loan, or a total of 8 per cent. If the borrower loses his pawnticket he cannot redeem his property until the due date of expiration. He must then give a spe cial release, testified to by a responsible resi dent 'householder.
Renewal of Loans.— When the borrower is unable to redeem his loan and desires to avoid the sale of his property, he can demand the re newal of the loan on the same terms as to in terest and duration. No renewal, however, will be granted unless all taxes and interest to date are paid, such sum being calculated on a re deeming basis. The pawnshop is authorized to have the pledge revalued, and if it has declined in value the borrower may be called upon to reimburse a part of the loan. A new valuation is obligatory for the following articles: (1) Shawls and woolen goods on which a loan of .50 francs ($0.10) or more has been made; (2) pledges which by special orders and provision ally would no longer be accepted for renewal if this formality is not fulfilled.