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- Title
Small Loans Problem.
- Authors
Robinson, Louis N.
- Abstract
The loan companies come in for a considerable amount of criticism on account of the fact that many of their customers borrow not once but many times. The author thinks that as "welfare organizations dedicated to the promotion of thrift" does not seem to that loan companies should be called welfare organizations but simply business concerns that fill a gap in credit structure. Some years ago, it was learned that existing credit institutions did not satisfy the needs of farmers for long term loans. After considerable debate, and additional legislation, a group of institutions was developed to fill the gap. Because special legislation is needed to provide the necessary legal setting, there is no reason to designate such institutions as welfare organizations. Nor does the high rate allowed, nor the class of people who patronize these loan companies, make welfare organizations in the ordinary sense of the term. They serve the laboring class as do many other business organizations and sell their goods under conditions of competition at a price that will enable them to continue to function.
- Subjects
PERSONAL loans -- Law &; legislation; ECONOMIC demand; CREDIT; LEGISLATIVE bills; BUSINESS enterprises; CONSUMERS; DEMAND for money
- Publication
American Economic Review, 1929, Vol 19, Issue 4, p638
- ISSN
0002-8282
- Publication type
Article