History of Pawnbroking - Italy

Italy

In Italy, the country of origin of the mont de piété, the institution still flourishes. It is, as a rule, managed by a committee or commission, and the regulations follow Italy pretty closely the lines of the one in Rome, which never lends less than fod. or more than 40. Four-fifths of the value is lent upon gold, silver and jewels, and two-thirds upon other articles. The interest, which is reckoned monthly, varies with the amount of the loan from 5 to 7%, but no interest is chargeable upon loans up to 5 lire. A loan runs for six months, and may be renewed for similar periods up to a maximum of five years. If the renewal does not take place within a fortnight of the expiration of the ticket, the pledge is sold, any surplus there may be being paid to the pawner. When more than 10 lire is lent there is a charge of 1% for the ticket. Agencies of the mont de pit are scattered about Rome, and carry on their business under the same rules as the central office, with the disadvantage to the borrower that he has to pay an agents fee. The amount to be advanced by a municipal pawnshop is fixed by an official called the commissaire-priseur, who is compelled to load the scales against the borrower, since, should the pledge remain unredeemed and be sold for less than was lent upon it, he has to make good the difference. This official is paid at the rate of 3/4% upon loans and renewals, and 3% on the amount obtained by the sales of forfeited pledges. The borrower has to pay an agents fee of 2%, which is deducted from the loan. Private pawnshops also exist in Italy, under police authority; but they charge very high interest.