MONTS DE PIETE, nuiN de pyttliV (Fr.. funds of pity). A name applied throughout Europe to public or semi-public institutions or ganized to loan money to the poor at low rates of interest on goods deposited. The establish ment of the monts de piMr• dates from the middle of the fifteenth century, when it certain Barnarb6 Terui proposed a charitable bank which should lend money without interest. To this was given the name Slonte di Pieta. The principle was adopted by Orvieto (1464), Bologna (1475), and Slilan (1496). At first no interest was charged, lout as it was impossible to secure sulli eient funds gratuitously, a moderate rate of in terest Was demanded. .1111S policy was attacked on the ground that it violated the eanon law forbidding 'usury.' In ISIS the Fifth Lateran Council declared that it Was permissible to take a low interest to meet the necessary expenses. Cities in other countries soon adopted the plan. In 1534 a pa iii bank was started at Ypres and one at Bruges in 1572. and by 1033 they existed in some sixteen cities. Their success has not been uniform. but they now do a large business. In 1895 the various Belgian institutions had S91,751; articles pledged or pledges renewed). The rate of interest varies front 4 to 10 per cent. per annum. The net profit in 1895 was S12.477.84. Ill Holland the first mon( de pi6t6, the Groote Thinek van Leening. was established at dam in 1014. In 1895 it liad a capital of over 8505.000, nearly A200.000 of which was borrowed. Financially the Dutch banks have not been profit :Ode, as the ecmstant endeavor 11;1, been to keep the rate of interest low. In (iermany..\mgsburg, in 1591. apprnpriated fluids to form a loan bank Leihhalls), and in 1018 Nuremberg folloWed this example. To-day public pawnshops are found in many cities. The laws lix the interest at 2 per rent. per month 011 all slims of less than 30 marks and 1 per cent. per 111011111 on larger sums.
Monts de pi, "46 were introduced into France. at Avignon (1577), Carmntras (1012). and Aix (1035). The famous Mont de PiW at Paris was established in 1777 by the General Hospital, which was to have the profits. tt has had a
varied history, but is in successful operation to day. It has now a central station and over 20 auxiliary stations. Since the Revolution the paWn-broking business of France has been under the direct charge of the communal and city au thorities. At the head of the Paris hauls is the Prefect of the Seine with a special council of lawyers who form a 'eolith eonsultat if,' and have charge of the legal work of the institution. The interest rate is now per cent. per annum. In 1595 over 1.928,300 articles were under pledge,and out these some $10.07 1,000 were loaned. The ledger of the institution for 1890 showed a credit of $789,783 and a debit of $756,428. In England a 'Charitable Corporation' began business ill 170S. but this was so mismanaged that it beeame a sub ject of Parliamentary investigation and was closed. The principles of the monts he '6 were introduced into the United States by the Col lateral Loan Company of Boston in 1859: they have also been adopted by the Workingmen's Loan Association of Boston (1888), the Saint Bartholomew's Loan Association of New York And ninny others. Among the Jews there exists the Ilebrew Free Loan Association Of New York, which loans money without interest.
The monts de have been of great service and have always tended to keep the rates of interest low. in all countries it is the custom to restrict the articles on which loans may be made and to take the necessary preeautions against fraud and loss. If the pledges are not redeemed within a given time the goods are sold. Sometimes the owner has the right to ask for the sale of the goods. It is usual to return to the owner any stun realized above the indebted ness, Consult: Maize. Des monts-de-piat' of des bu mines do preis ( Park. 2d ed.. 1856) : Vaniaer. Los mo0ts-dc-pi0e en France (Paris. 1S95) : Pat terson, Parenbroking in Europe and Die United ,gtoteS. Bulletin No. 21, Department of Labor (Washington, 1899). See PA WNBROKING.