The Sun.
London, England, 1841-01-09 00:00:00

So that the b3rroxer receives 0n1y....,

15 0 0
Then he has to pay with each weekly instalment 3d.,
which is 12.5. 6d. in the year, provided he makes no de-
fault. But for every &fault he pays 6d. of a fine to the
Soeiety, and 3d. for each letter of advice written by the
Secretary to himself and sureties.
It will be seen titat the terns charged under the Act of
Parliament are very much more favourable titan the fees of
the discount companies, and we believe that we have given
the latter in the most advantageous light.
We have conversed vtith some parties connected with the
loan societies, who say that the terms allowed by the
statute do not afford sufficient profit to enable thstn to
compete with the discount companies, and that capital is
passing rapidly front them for investment in the latter.
The loan societies were established under the Act of Par-
liament specially for the bate& of the industrious classes,
and it is important to investigate the working of the enact-
ment. The Act of William was so vague that it was no
better than waste paper, and we now .find that its substi-
tute has had the effect of depressing the number of legal
societies most seriously, while it has created a large
amount of illicit trade.

This leads to an impression that the provisions of the
Act of Victoria require revision, and that further measures
should be adopted for the purpose of securing the indus.
trious classes in the benefit of obtaining small loans on
moderate terms. The public do not discriminate between
the good and the bad as respects loan societies. They
confound the legal with the illegal, and taking their opi-
nion of both classes from the list-named, they believe
that the whole of them are a pest to society, and that
they exist upon the misery of the poor. The few gene-
ral remarks which we have made will tend to remove
this error, and to point out the distinction which ex-
ists between the " Loan Societies " properly so called
and the self-styled loan societies, which are, its f.ict,
discount companies. The first arc bound by en Act
of Parliament, which they cannot well disobey. The
others are under no species of legal control, and suck
the very heartblood of the poor. Tae first class have been
the subject of legislative enactment, and have been legalised
for the special benefit of the industrious classes. The
others go on in defiance of 'Vile law, while they ostensibly
profess to be established under its sanction. Sonic parties
connected with the Loan Societies have sent us a state-
ment of the profit which they receive in lending 5,0001. in
sums of :W. each. This would require 1,000 borrowers,
and when it is considered that the Act requires them to
keep a journal, a check-book, and ledger, it is plain that
considerable labour must be. devoted to the busines;. They
accordingly put down salaries for two clerls at 751. each,
rent,
and two check clerks at 251. each, with allowances for of-
five,,Seo., whereby they make it appear that the
actual net profit receivable under the Act for the 5,0001.
lent would be only Esc per cent., or 250/. They
sty, to show in a smell degree the want of proper rc.
muneratt
•on felt by all parties connected with loan
societies as at present established, it is calculated that to
lend 5,000/., in 5/. loans, will require 1,000 borrowers;
each borrower has fifty receipts made in his book, the So-
ciety keep a journal, check book, and ledger, in each of
which fifty curies must be made for each borrower : there-
" fore, it replies 200 eetries for each account ; 1,000 bor-
rowers require 400,000 exclusive of writing letters to de-
faulters and their sureties, which finds constant employment
for two clerks. Profit on 5 000/. provided the whole
amount of repayments is again lent out on the day on
which it is received, and that at no time a balance re-
sins in the hands of the Treasurer, will be,
................. .
....
£6OO
cL~
......
at 12 per
. ......
....................
Two clerks, at 75/. each £lso
Two check clerks, at 951. eac h 5O
Ilent of offices anti gas . 50
- Printing, account books an. d—s
..... .
i
onery,
and casual losses,say 2 per cent. ......

Profit, 5 per cent. on smoo/ ............... 250
250

the Legislature It was never intended by that
21:30
loin societies should keep an esta'oliskraent fof clerks on
salaries. The charges under that. head, in the above es.
timate, are equal to a capital of ten times the amount.
The charge of 100/. for printing, &c., and losses, seems
also objectionable. The 12 per cent. ought to rewunerate.
well fur the risk and expenses; but while unlimited pewits
may be ma:le by the niscount sccieties.,...
inercas. it is not likely
that those enrolled under the statute will
al! likelihood, di:nil-I.:A in
pea
the contrary,. thv must, in
number alio relitectability.
II ERALD.—It vvili Ur ntmerccd, that Bank Stack with
Inditt, and Exchequer Bilis have been latterly more
On the -vise, even than Consols. In regard. to Bank
Stock there has latterly been a diApositi,n to ;attest in it
from a prevailing bzlief that the Bank has been Ices da-
maged, and if to be, by the. evid-cncc before the Par-
liament try Committee, than was anticipated; therefore as
a- consequence that 1,0 Government action 11o5ttfle to the
Bark need he ap;nyehenicei, and that on its expiration
the Charter ails be renewed as a matter of course. Th°
rise in India Stock -is of course easily accounted fur
by tire favourable news from that quarter, Exchequer
Bills arc corning naturally into demand, from the

ment of dividends and the conveniences of temporary in-
vestments in a security bearing interest and always
marketable.

The accounts from Lancashire represent the cotton
trade to be in a more favourable position than, considering
the season of the year when it is usually inactive if not
dull, might be expected. There is little question that the
low prises at which raw cotton has. ruled during the year
ended, arising conjointly from the very large: crop, the
largest ever known, of the previous year in the United
States, with the depressed state of foreign trade, must
have created an increased demand of cotton yarns for ex-
port to Germany from the temptation of low prices, as
well as during the latter months of the year a larger ab-
sorption among the manufacturers for home and colonial
consumption. For it is well known that no more shrewd
and calculating merchants are to be found than the Ger-
man and Russian merchants settled in Manchester, who are
the large purchasers for the supply of the markets of their
own countries, and as besides they have ample means at
command and unbounded credit, if credit they should
require, which is not the case, for they almost always
pay argent comptant, it may be taken for granted that
they are not slow to avail themselves of the advantage of
laying in atocks when prices are at the lowest, although
they may not realise the summum bonum of economical
cant, of selling at the highest. It may be observed be-
sides that the manufacturers of Germany and those of
Russia have been but very slightly inconvenienced by that
crisis and untoward state of money and commercial affairs
in the United States which have so powerfully and preju-
dicially affected both France and England. For so far
as cotton manufactures Germany is but a very inconsider-
able exporter and Russia not at all. Hitherto they have
manufactured exclusively almost for home consumption,
which indeed neither one nor the other country has been
enabled fully to supply.
It may be hoped, however, that the improvement in
the cotton trade is not solely owing to an increased export
demand for cotton yarns, a branch of manufacture which
yields the least profit of all to the country in the shape of
labour. The large capitalists who abound in Manchester
must also 'nave been turning low prices of the raw material
to account, end laying in stocks at cheap rates, which from
their cheapness must tend to increase consumption both at
home and abroad.

According to the accounts of the cotton market from
Havre, it would seem that the cotton manufacturers of
France have partaken of the same sort of fortune as those
of this country. With a larger stock on hand at the com-
mencement and larger arrivals during the year, there has
bean a larger consumption than in any year preceding.
The account is thus stated :