Mont de Piété

Mont de Piété, called in Italy MONTE DI PIETÀ, a charitable institution the object of which is to lend money to the poor at a moderate rate of interest. It was closely modelled on the 'Monte,' a precursor of the modern bank, in which the creditors, or the parties who supplied the capital, formed a close corporation, with privileged claims upon certain sources of income. These conditions were designed to avoid the laws against usury. But the Monte di Pietà did not at first levy regular interest, only a small percentage to cover the expenses of administration. The earliest of these institutions was established at Orvieto in 1463; and another followed at Perugia, 1467; yet the right to levy for the expenses of management was only conceded in 1515. The system was introduced in Spain, France, Belgium, Germany, the Netherlands, and Mexico. There exists at Paris a national pawn-broking establishment, called Mont de Piété, which charges 9 per cent. on all loans to pay the working expenses. The surplus gain is handed over to the public charity funds. See Blaize, Des Monts de Piété (2 vols. 1856), and PAWNBROKING.