TO THE PAWN SHOP.
"It has been in operation for more than 150 years, and was founded by Count de Regia Don Pedro Terreros, whose intentions were purely philanthropic; he endowed it with $300,000 in the hope of relieving the poor, and those in temporary need of money, from the oppression of the empeños, or ordinary pawn shops.
"According to the rules of the institution, the depositor gets one-third the estimated value of his goods at an interest varying from three to twelve and a half per cent. per annum. He must renew his tickets every eight months, and when he ceases to pay interest upon his loans the goods are kept for seven months, and then offered for sale at an appraiser's valuation. If there is no offer for them in one month, the appraisement is reduced, and then they are offered for another month. The performance is repeated monthly for six months, and then the goods are sold at auction. If they do not bring as much as the appraised valuation, the appraisers must make up the deficiency out of their own pockets!
"Anything and everything of any value may be pawned here, and the vaults have contained at different times money, jewels, and precious metals sufficient to endow an empire. Not all the property here stored has been pawned. Many valuables are brought here for safety, as the place is a sort of fortress in its way, and most carefully guarded.
"They showed us through the vaults where the diamonds, pearls, rubies, and other precious stones are kept, and we saw more of these costly baubles than we ever looked at before in a single hour. We glanced through the vaults where pictures, silver plate, watches, clocks, porcelain, and kindred things were stored, and then were taken to the money vaults, which at times have contained millions of dollars in silver and gold. The Monte de Piedad was, until a few years ago, a regular banking institution, and its notes were 'good as gold' all through Mexico. Its credit was impaired by the withdrawal of its reserves by the Government, and its banking business received a severe blow.
OCCASIONAL PATRONS OF THE MONTE DE PIEDAD.
"Money is not loaned on real estate, or on anything else that cannot be deposited within its vaults. They tell us that a foreign merchant once came here to borrow money for business purposes, and was accompanied by two friends who were to indorse his paper and 'go his security.' The official into whose hands they fell said the establishment would make the loan at the usual rates, but before completing the transaction he showed the 'securities' the room in which they would be locked up until the note was paid. We did not ask further particulars, but presume the loan was not made.
"The profits of the bank formerly went to the Church, but latterly they have been used for establishing branches elsewhere in the city and all over the country. The Monte de Piedad is a national institution and of great value to the people. One dollar is the smallest amount loaned, and the largest is $10,000, and the loans are said to average, large and small, about sixteen dollars each. The number rarely falls below 200 loans in a day, and sometimes rises to 2000. About one-third of the articles deposited in the bank are never redeemed.