London Labour and the London Poor, Vol. 1

by Henry Mayhew

But the iniquity of this usury in the present instance is felt, not so much by the costermongers themselves, as by the poor people whom they serve; for, of course, the enormous rate of interest must be paid out of the profits on the goods they sell, and consequently added to the price, so that coupling this overcharge with the customary short allowance—in either weight or measure, as the case may be—we can readily perceive how cruelly the poor are defrauded, and how they not only get often too little for what they do, but have as often to pay too much for what they buy.

Premising thus much, I shall now proceed to describe the terms upon which the barrow, the cart, the basket, the weights, the measures, the stock-money, or the stock, is usually advanced to the needy costermongers by their more thrifty brethren.

The hire of a barrow is 3d. a day, or 1s. a week, for the six winter months; and 4d. a day, or 1s. 6d. a week, for the six summer months. Some are to be had rather lower in the summer, but never for less than 4d.—sometimes for not less than 6d. on a Saturday, when not unfrequently every barrow in London is hired. No security and no deposit is required, but the lender satisfies himself that the borrower is really what he represents himself to be. I am informed that 5,000 hired barrows are now in the hands of the London costermongers, at an average rental of 3l. 5s. each, or 16,250l. a year. One man lets out 120 yearly, at a return (dropping the 5s.) of 360l.; while the cost of a good barrow, new, is 2l. 12s., and in the autumn and winter they may be bought new, or “as good as new,” at 30s. each; so that reckoning each to cost this barrow-letter 2l., he receives 360l. rent or interest—exactly 150 per cent. per annum for property which originally cost but 240l., and property which is still as good for the ensuing year’s business as for the past. One man has rented a barrow for eight years, during which period he has paid 26l. for what in the first instance did not cost more than twice as many shillings, and which he must return if he discontinues its use. “I know men well to do,” said an intelligent costermonger, “who have paid 1s. and 1s. 6d. a week for a barrow for three, four, and five years; and they can’t be made to understand that it’s rather high rent for what might cost 40s. at first. They can’t see they are losers. One barrow-lender sends his son out, mostly on a Sunday, collecting his rents (for barrows), but he’s not a hard man.” Some of the lenders complain that their customers pay them irregularly and cheat them often, and that in consequence they must charge high; while the “borrowers” declare that it is very seldom indeed that a man “shirks” the rent for his barrow, generally believing that he has made an advantageous bargain, and feeling the want of his vehicle, if he lose it temporarily. Let the lenders, however, be deceived by many, still, it is evident, that the rent charged for barrows is most exorbitant, by the fact, that all who take to the business become men of considerable property in a few years.

Donkey-carts are rarely hired. “If there’s 2,000 donkey and pony-carts in London, more or less, not 200 of them’s borrowed; but of barrows five to two is borrowed.” A donkey-cart costs from 2l. to 10l.; 3l. 10s. being an average price. The hire is 2s. or 2s. 6d. a week. The harness costs 2l. 10s. new, but is bought, nineteen times out of twenty, second-hand, at from 2s. 6d. to 20s. The donkeys themselves are not let out on hire, though a costermonger may let out his donkey to another in the trade when he does not require its services; the usual sum paid for the hire of a donkey is 2s. 6d. or 3s. per week. The cost price of a pony varies from 5l. to 13l.; that of a donkey from 1l. to 3l. There may be six donkeys, or more, in costermonger use, to one pony. Some traffic almost weekly in these animals, liking the excitement of such business.

The repairs to barrows, carts, and harness are almost always effected by the costermongers themselves.

“Shallows” (baskets) which cost 1s. and 1s. 6d., are let out at 1d. a day; but not five in 100 of those in use are borrowed, as their low price places them at the costermonger’s command. A pewter quart-pot, for measuring onions, &c., is let out at 2d. a day, its cost being 2s. Scales are 2d., and a set of weights 1d. a day.

Another common mode of usury is in the lending of stock-money. This is lent by the costermongers who have saved the means for such use of their funds, and by beer-shop keepers. The money-lending costermongers are the most methodical in their usury—1,040l. per cent. per annum, as was before stated, being the rate of interest usually charged. It is seldom that a lower sum than 10s. is borrowed, and never a higher sum than 2l. When a stranger applies for a loan, the money-lender satisfies himself as I have described of the barrow-lender. He charges 2d. a day for a loan of 2s. 6d.; 3d. a day for 5s.; 6d. a day for 10s.; and 1s. a day for 1l. If the daily payments are rendered regularly, at a month’s end the terms are reduced to 6d. a week for 5s.; 1s. for 10s.; and 2s. for 1l. “That’s reckoned an extraordinary small interest,” was said to me, “only 4d. a day for a pound.” The average may be 3s. a week for the loan of 20s.; it being only to a few that a larger sum than 20s. is lent. “I paid 2s. a week for 1l. for a whole year,” said one man, “or 5l. 4s. for the use of a pound, and then I was liable to repay the 1l.” The principal, however, is seldom repaid; nor does the lender seem to expect it, though he will occasionally demand it. One money-lender is considered to have a floating capital of 150l. invested in loans to costermongers. If he receive 2s. per week per 1l. for but twenty-six weeks in the year (and he often receives it for the fifty-two weeks)—his 150l. brings him in 390l. a year.

Sometimes a loan is effected only for a day, generally a Saturday, as much as 2s. 6d. being sometimes given for the use of 5s.; the 5s. being of course repaid in the evening.

The money-lenders are subject to at least twice the extent of loss to which the barrow-lender is exposed, as it is far oftener that money is squandered (on which of course no interest can be paid) than that a barrow is disposed of.