The Birmingham age-herald., 1913-08-10

| fectly well what they are doing and are
usually able to drive fair enough bar
| gain.
| 1t is not such customers. however that
the touting money lender is keen on Sc
curing. The young man who needs money
urgently to conceal an escapade from his
father, the girl who has lost heavily at
bridge and fears disgrace IL she does not
pay. the bank manager who has ''bor-
rowed" from a flier on the market that
has gone wrong and Is faced with prison
| If he cannot make good the deficiency
| these are the customers In whom the
money lender delights and whom he
makes pay through the nose for his
| services Then the country clergyman
and the widow spinster in small town
who find themselves temporarily embar-
rassed too often are caught by the allur-
ing letters which are sent broadcast, and
sometimes fail to extricate themselves be-
fore they have repaid three or four times
the sum borrowed
Here is an actual letter received the
other day by clergyman In Derby:
Dear Sir-The fact that bankers are un-
willing to allow you to overdraw their
account without security is what can only
be expected owing to the business methods
in which banking business is conducted.
To those unable to meet the require
ments of bankers / shall be pleased to
advance cash in sums from $50 upwards
for a short or long period at a special
reduced interest to the clergy only with
out security. Repayments by monthly
or quarterly instalments, or upon my own
special system to suit clients own conven-
ience. Business completed by post; no
interview is necessary. No charge of any
description unless business actually COM
plcted.
All communication absolutely private
and confidential.
1t has become necessary to state that
my special reduced interest is quoted
only to the clergy. Yours faithfully,
]. MOSS.
AS a rule the victims seldom dare to
resist shyioclx's demands in the courts,
for that means the exposure to avoid
which was the reason for the loan. When
they do the judges usually reduce the
claim to repayment Of the principal and
interest at so per cent per annum, hold
, ing that 60 per cent is fair remuneration
for the risk undertaken.
Even this, however, is taken advantage
of by the lenders while dealing with mex
perienced people. How this is done was
told to me the other day by London
county court judge who continually has
suits against small borrowers in his
courts. He cited a typical example
which came before him the other day
in which small shopkeeper was tempted
by an alluring letter to apply for loan
The circular stated that 15 monthly pay
ments of s113,4-about SS33-would pay
off bill or promissory note for e25-sl25
This looked, of course like a philan-
thropic transaction, in which no interest
was charged. When the time came FOR an
interview, however, it was carefully ex-
planned to the borrower that he would
only receive G17-$S5-for his note for E25
but that this deduction only represented
about 80 per cent interest on the loan
while the courts allowed 60 per cent Not
being a financier the tradesman believed
what was told him and concluded the
bargain.
Now said my friend the Judge, 'let
us see what happens The borrower has
the use of Ell for one month only at the
end of which he pays e1.13.4. This leaves
sl5.6S of which he has the use of for one
month when a second instailment reduces
it TO 913.13.4, and so on. When all these
sums are added together we find that he
has had the use of a95.6S for one month
which Is equivalent to the use of f719O
Tor a year. But he has paid as for the
accommodation, which, of course, works
out at more than 100 per cent.
1t ls said that the London money lend
ers are not content with alluring circulars
\
10 be regular gangs working in the west
end clubs who fasten on a young and
Ioonsh son of wealthy parents introduce
1lm TO stage girl, who is well paid for
her work as a decoy, and who runs him
heavily In debt for jewels, dresses. etc.
which are supplied by other members of
the gang. If possible he is persuaded to
safnpie, ana when he Is at his wits end
Tor money he Is introduced to the princi-
pal oil the a
OF course, drives a hard bargains When
the young man has finally reached the
end OF his tether his family usually paws
up to save its honor
one of the most notorious of London
money lenders was the late Sam Lewis.
VINO nit an immense fortune when he
died, much of which eventually came M
LONDON charities on the death of his
widow. Lewis made speciality of bleed-
ing wealthy young scions of aristocracv.
ana ne was referred to by Lord Newton.
VINO declared that a young relative of his
tell INTO Lewis clutches and only GOT. out
by paying more than three times what he
had borrowed. Sam Lewis, however. was
regarded as one of the straightest money
iehuers OF ms day In London, and cases
are on record in which he refused to ac
cept more than ordinary commercial rates
OF interest In cases of real hardship.
One of the most iniuuitous nhasas ~
the money lending evil is what NAV no
known of a case in which a money lender
actually approached a bank manager ana
Offered him handsome commission tf
he would supply the names of customers
of the hank who had overdrawn tbei,
accounts or We're in difficulties In this
case the offer was Indignantly refused
but there can be no doubt that in Others
1t has been accepted The touting letters
too often come at the psychological mo-
ment to be the result of mere coincidnece
This also opens up another phase Of
the business which Lord Newton,s hin
will not touch. The publication of the
money lenders real name will not in
most instances disclose the real lender
for the lender is often only an agent
He is usually financed by some highly
respectable bank or individual who dis
counts his paper-making a handsome pro-
fit in doing so--and of course leaving him
IA handsome share of the spoils. Techni-
cally of course these persons and institu-
tons are not principals and cannot be
reached, but there are many respectable
persons drawing bank dividends who
would be shocked If they knew that these
dividends In, part at least are built on