The British Press; or, Morning Literary Advertiser.
London, England, 1825-04-19 00:00:00

VINDICATION

OF THE OBJECTHoiTHEiiIWIiBLE LOAN BANK
COMPA, Y,

•SID PROOFS or THE NECESSITY 'Poi ITS ESTABLISHMENT.

By many misrepresentations, interested persons hare endravoured
to excite prejudice against this Comsat y. and to misguide the
public mind. They saw that the Immense gains would maw which
they have extracted from the hcbitual wants of the poor, the occa-
binnal uecemities of the respectable, and the temporary diatreas of
manufacturing and commercial men; and they have had recourse
to calumny, tuisstaternent. and abuse; and, by appeals to hu-
manity and prejudice, and by reiterated declarations about mono-
poly, eitury, and combination, they have alarmed the timid,
agitated the compassionate, appalled the timorous, and almost con-
founded the intelligent.
To dissipate the delusion, and to counteract these designs, it will
only be necessary to explain the object of the Company, and the
nature of their Bill.

01 the object of the Company, no political economist—no bene-
factor of the poor no well-wisher to the prosperity of the country—
can wisely complain. The sole object is the advance of money on
good+, at legal interest, to persons who need temporary loans.
This object who should oppose? Is there any substantial ob-
jection to loans effected by mortgages on lands? What objection
cart there be to loans on goods, except thnt there will be no tedious
investigations of titles, nor costly demands for deeds ? Can such
an object be condemned at a period when the science of political
economy is studied and understood ? What are such loans, but an
appropriation of capital in aid of husbar.timen, manufacturers, and
merchants, which will cssist their operations. and promote ir di-
ridual prosperity and public wealth ? Shall it be objected that
such benefits may not be effected by a Company ? • For what pur-
pose mono harmless or more laudable can Companies be formed ?
What is the stock of the Company, but the union of many small
unappropriated capitals, and how obvious the utility of an establish-
ment by which small capitalists may find 'the means of rendering
their capitals productive, and by which the husbandman, manufac-
turer, or merchant, needing a temporary increase of capital, may
certainly, anti on equitable terms, obtain, in a moment of exigence,
the capital he needs. . .

As io the declaration that the establishment is not necessary—
that it is disgraceful for gentlemen to become pawnbrokers—that
usury and extortion will be practised—and that humanity forbids
any establishment that may interfere with the sacred rights of pawn.
brokers and money-tenderer—do the► merit a reply ? If the Com-
pany be not necessary—if there be no difficulty in obtaining tem-
porary loan at goods—if there be now no extortions—the Company
will have no bu►ine-o—tbe capital will not be required or advanced
—and what prejudice can result ? As to the discredit of a connex-
ion with that Company, how futile the emulation ! Is it dishonour-
able to be a capitalist ? Is it dishonourable to apply unappropri-
ated Capital to encourage enterprise, promote industry, or relieve
distress ? Is such occupation less honourable than the occupation
of a banker. whose advantage results not from such appropriation
of his own capital, but from an appropriation by him, fur his own
advantage, of the unappropriated capital of his customers entrusted
to his care ? But can the Company become usurers ? Then in
each case :hey will be subject to all the penalties of the Usury Laws,
and, from their public character, cannot engage in the clandestine
transactions by which individuals constantly elude those laws, com-
pelling their victims to submit to additional extortions, to indem-
nify them against all hazards incurred. And appeals to sensibility
on behalf of pawnbrokers and moneylenders appear supremely ab-
surd. Is ale the compassion to be bestowed on the pawnbroker and
usurer. and witheld from the wretched mechanic. the distressed
gentleman, the enterprising manufacturer, and the farmer, who
would be ruined by some untimely and instant sale of stock ? Is
the existing monopoly in favour of pawnbroker* to be for ever con-
tinted by the prevention of that competition by other and united
Capitalists, which, by reducing the rate of in crest required, will
lessen the burdens of the oppressed, and give new energy to indus.
try and skill ? And when the poor man may be relieved in the in.
tenet which he pays on his little pledge. and all other classes ob-
tain certain assistsoce, by the payment of legal interest for a loan,
instead et 20 and 30 per cent. now required. shall not benevolence
unite with justice to applaud the object of this institution, and to
express a wish for its sumo?
Of the necessity for an Institution with this object, there are few
Metropolitan Magistrates, or disinterested persons, who are not
well convinced. The necessity is even demonstrated by the cla-
moutons, expensive, opposition displayed. Who are or can be
the oppo rots? Not the borrowers of money. Who, but the per.
sons who are obtaining such profit by lending money or buying
jobs on terms lucrative to themselves, as they know nothing can be
obtained by any other business in which their monies might be
employed; especially as such persons have no extensive erections,
or vast machinery, or costly apparatus, which would occasion leas,
if their business be diminished, or their occupation should he gone.
But the necessity rests not on conjecture; it has been esta-
blished by prows,. From the very p.,or, ago make many million
pledges under 101. annually, an average interest of more than 23
per cent. and soil:cants.' 2001. per cent. annually is obtained. A
yearly sum of four hundred thousand pounds is received out of the
earnings of the poor, and the rates made for their relief; and
Pau nbrokers themselves borrow money at 10 per cent. tp re-lend at
such enormous profits to the poor! It has also been proved, that
by fariaers, manufacturers, and merchants, and even by persons cf
high character and elevated rank, occasional loans on goods at legal
interest are often required, and that immediate relief can ra ely be
obtained without the payment of from 20 to 30 per cent. or a sacri-
fice of goods to the job or e• Slaughter-houses" of the Metropolis,
at a loss a hich leads to further antarressment and final ruin, and
which involves creditors and families in a vortex of wretchedness
and woe.

An Establishment for this object has been long recommended by
philanthropic and enlightened men, and was sanctioned by the
highest authorities won had patronised " Les Mots de Pixie," in
all parts of the Continent, and has assisted in Russia large and
useful charities, by the especial profits it is there allowed to obtain.
In the accomplishment of their object, the Company will endea.
your to meet the wants of every class. First, to the poor, who
borrow clime under 10L—they are bound by their own Bill to
charge 20 per cent- less interest than Pawnbrokers may legally de-
mand; and about tifty thousand pounds will be thus really be.
slowed upon the poor. And, second, by Establishments in the
mcropolis, and in other parts of the country, they will grant im-
mediate Cash accommodation to Farmers, Manufacturers, Mcr.
chants, ind Importer,. requirieg ocly 3yer cent. interest on their
advances, and the paytnent of %Itch strict!, legal and returnable
charges for wareheestng of goods as shall Just reunburse their ex.
perve.
Alum it not then be incontrovertible, that to represent the design
as an injurious bubble—the Establishment as an ofrenee--and
object as unworthy, can only be attempted by the interested, the
ignorant, or the rrverie ? Must it net be incontrovertible that the
object of the Company is rather praiseworthy than improper--that
it cannot prejudicially interfere with the trade of any merchant,
shopkeeper, nienufacturer, or artisan : but that by assisting the
needy or industrious in some exigent moment, it will support pub-
lic and private credit, end produce much general good ?
For the attainment of this ehjeet the Company is already formed
--and the 11.11 depending in Parliament dues not create or establish
the Company, nor canter on them any ore exclusive privilege or
right. The Bill is only. a Bill to enable them to sue and be sued,
and to take out licences in the name of their clerk.

The Bill has triumphantly paired the Howe of Commons. with
a large majority, and is next to be read a second time in the House
of Lords. Indeed such Bills have been sanctioned by the highest
financial and legal authorities in both Houses of Parliament. be.
cause they are as useful to the puhlic as to the Companies, and
facilitate proceedings against them, if they incur a debt or be guilty
of a wrong.
After this correct and candid statement of the objects of the Com-
pany and of their Bill, it i. hoped that not only the poor, whose
burdens will be rel ieted. and the agriculturist and manufacturer, who
may require occasional and temporary aid, but that all the intelli.
gent and liberal minded, who pity the poor, who would gram to the
young tradeso:on apprapriate aid, who would rescue the unfortunate
from the great grasp of usury. and who would promote rnanufactur.
ir.g end commercial enterprise, will concur with the Royal and
illustrious personages who hove patronised the measure, and grant
the Company approval and export.

This is the Anniversary of Bien selling the Three
Thirty Thousand Pound Prizcs, noticed in front of his house in
Cornhill ; therefore it periAps way be a good day for buying the
Two Thirty Tho::sand Pound Prises that are to be drawn neat
mond.. Suppose you try your luck today, it certainly is as likely
as any ether to obtsio gum, and haring been so lucky once may be