The British Press; or, Morning Literary Advertiser.
London, England, 1824-06-05 00:00:00

ItILL .•

A summary of the reasserts for passing ,this Bill into a hte may
thus be stated, and will here be attempted to be proved. " That,
while it it capable of. the moat aspirant benefit to
.thorstorek of
the power class of' the community, the comparatively few, -the
Pawnbrokers, whose interests it affect% sad who do not exceed
from three to four hundred persons, had his red or reehdebreble
ground of opposition to the measure; since. in fact, the Bin ghee
no power of monopoly, nor any privilege to the promoted of it.
which are not enjoyed, even to a greater degree, by the Pawn.
balers themselves."
•
First, then, as to the encouragenett c.le to it on the scored is
beneficial effects to the poor. • .
It may be presumed that, if the Lestelature has thought it tade
limbic to permit the lending of money. sis distressed pawns at iv,
per sate. interest, it must more readily, panetion this stet sof
relief to the poor when profcered at only 10 per cent.
It is one of .the natural consequences of the present lomessed
prosperity of the country, that a reform should be attempted is s
practice which has only hitherto been tilerated as a manor of ne-
cessity; but assuredly, in these days, 20. per cent. must ho ad.
mined to be a neat exorbitant and excialuve charge; *Me, o.t
the other hand, 10 per cent. including, os it does, warehouse rosin.
insurance from fire, deterioration of vales the general dacription
of property pledged, and the risk of loss on stolen plroperty„ may be
considered as a fair premium to any extent. In fact. deduiting the
expenses of the establishment, and the sinking fund pmpodd for
the ultimate reduction of the rate of interest, 10 per cent, leaves
only 73 )ter cent. for interest at L per cent.) and 0.4 per cent.) com-
mission. There seems, therefore, nn reason for any limitation of
amount, while the interest is thus limited.
It hes been calculated, on good data, that not less than one mil.
lion sterling is levied annually upon the distressed, by the present
system of lending upon pledge. The saving, therefore, that atett
ultimately result to the poor, a the new system is established, di-
rectly by the Company, and indirectly, by compelling the Pawn-
broker to lend money on more moderate terms, may he reckoned at
nearly half a million ; and we must not l'iwget that such a sum may
tend menially to reduce the poor rates, and the: it far exceeds the
present amount of the interest derived from the Saving Banks,
which have been considered as fraught with so much importance
in this country. How, therefore, is it possible for the Legislature
to look unfavourably upon such a measure?
Admit that it is the duty of the Legislature to protect individual
traders against privileged combinations: but heforethis maxim can
be brought to bear spinet the Equitable Loan Bank, we must first
examine how. far this Company seeks for exclusive privileges, and
how fat. also the Paernbrokert scan be considered as unprotected in-
dividual traders.
' Now, the Equitable Loan Bank seeks not, by its Bill, to el'AieY
any privileges which the individual trader 110 a not possess The
Company neither asks to be protected from bankruptcy, row horn
the full extent of individual liability ; on the contrary, a Clause is
actually inserted in the Bill,
.Ortforiey tlu. tialintited liability of
all SluirchOlders to the fruit t.reeit of their property. The only pri-
vilege sought for by the Company is that of suing and being seed
in the name of their Secretary ; and this indeed ought not to be
called a privilege-it is a mere facility for carFying on business, a
facility which, in fart, is enjoyed by every individual Even, there-
fore, if the pawnbroker wore ow ainpriseeted reader; lie Mold have
no eight to complain of the powers sought for by the Emit table
Loan Bank Company : but the real truth is. that the Pawnbrokers
ere a highly privileged set—they are permitted by law to exact four
times the legal interest of' the lind—they are combined together as
a body, haring a fund for common objects; and it is notorious
that no indliidual can attempt a competition as a Pawnbroker, for
the reduction of these exorbitant charges, which, by frequent
returns and various other means, generally *peaking, amount to
30 per cent. per annum on the capital employed. So fir, therefore,
from being viewed as a combination, seeking hue exclusive powers,
the Equitable Loan Bank Company. waving. as it hos done, all
incorporatedpririlegm, is entitled to be considoad as an Association
for liberal objects, calculated to produce great public good, and
seeking from Parliament less powers than those enjoyed by the
persons with whom they propose to compete; and to compete, not
for the purpose of annihilatir.g them, but merely of bringing them
to that scale which the present state of things demands.
That the Subscribers to such in undertaking should loot to
some private benefit, it of comae to be exneried; but they have
actually limited their individual profit to 7. per cent., ehieh,as
already stated, is not more than an ordinary charge for commis-
sion, 'eke. and legal interest; the surplus, after paying the ex-
penses of the necessary establishments, forming a fund for the still
further reduction of the interest charged to the public: and It
Calculated that, by the operation of this fund, in about 60 years the
Company would be enabled to lend four millions on pia*
to the public at 5 per cent. Are we then to be told that this is not
an Institution of benevolence, and thn: the promoters are actuated
only by selfish motives? Vet such has been the •clamour raised,
and the Legislature has been ealled upon to protect the public
against our machinations.
Ilse, therefore, I must beo levee to mi, in what way is it pos-
sible that the public can sul'tr by us?—by a Company. which,
from the very principle of its existence (inasmuch as its only opera.
tion is to lend money, and as it expressly prohibits inn& by I.
Act horn borrowing), can never owe a single shilling to any sea,
and can never therefore involve the public in any loos.
But it has been said, that there is not only danger to the public
but to the Subscribers also, from Companies aiding on fictitious
capital. To this, therefore, I reply that it is irepossi be, from the
very principle of its existence, that inch a Company as tits
Equitable Loan Company can trade on a fictitious capital ; for they
can no more carry on their business of lending money without first
raising the money to tend, tnan a ('anal Company can awry goods
without an investment of capital in the Cora that is to 006,9
them. The Equitable Loan Bank is therefore at kW as meth en.
titled to the countenance of the Legislature on this score, and to the
confidence of the rotate, as any Canal or Bridge Company Ora
be, and perhaps, in some revneirs. more so; Mr should the Egal.
table Loan Bank not raise the whole of its intended capital, al
that can result will be, its falling sheet of the extent of good pi .
posed but no positive evil can arise: whereas, if, from any dm
tokenis; m of capital, the Canal should be left ur.fiLished, a positive
waste of property and nuisance arises.
It remains only to be observed. that, in bringing forward did
Bill, the conductors of this measure have not sought to mot any
unnecessary obloquy on :he present system ; the argument is indeed
complete without it ; for it is sufficient to show that a positive_
moat arise from the mere reduction of the present cognisant
charges, without looking farther. There ran, however, be no
doubt that there are many perrims now engaged in the badoess
of pawnbroking, who, not hsvirg capital to trade upon. meet to
various mal-preetlees for their livelihood. Tile namber of thee*
persons would unquestionably be reduced by the operations of the
Equitable Loan 'lank, and there can be no doubt of grate most
good being the ;bah: while the Pawnbroker,' trade, by being
thus adopted by a public and respectable Adoration, would led
notch of that obloqnr which now drives many persons to the most
ruinous modes of raising tetnporary supplies, instead of dodging.
on equitable terns, a superfluous or even a necessary arddeoehicle
they would thus be induced to have recourse to.
I feel confident, therriore. that the Bill now brought up to the
Lords will, on due examination, be found to be. unobjectionable,
either as to principle or as to any of the forms of the House, either
ancient or modern ; while the public good of what it is capable,
the moderate views of its promoters, and the Royal patronage
with which it is dignified, under the express sanction tot he
distinguished individuals of his Majesty's Government, must moue
it the good wishes and support of those who will condeseend to look
into its merits.
June 3, 1921. WM. CONOREVE, ('hair mess.
• in support of this (minion lam permitted to quote the ass
thority of the principal Police flllgistrate of the metropolis.
- - • - -
[From the London Yea' Prier Current.l
WFEE.—The public sales this week have gone off stesdilv -
the Deuteron% and Brian at an advance of 2s. a bas per cwt. the
other descriptions firm at the previous prices ; St. Domingo 61s. •
Ms. 'There were two public sales of Coffee this forwent 4th bags
10 cask. St. Domingo, went at previdua prices; good ordluary
inizril Ws. a els. ;iii. fine ordinary ra, of the latter "hour
damaged elbt. ; the other sale, Jamaica Coffee. sold A. higher:
good ordinary CO,, a els., line ordinary Gas. a Ob. the market.
looks tinn, with every prospect of a further imimozement.
COTTON.—The Cotton market remains without interest alt*
purchases this week are inconsiderable; the prices are with; any
variation. The accounts received from Liverpool this morning.
state that market steady.
RI'M, BRANDY, and 110LIANDS.—The Rune market is
wii bout variation; several parcels of ' - have been die-

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