London Labour and the London Poor, Vol. 1

by Henry Mayhew

The money-lenders, (from the following statement, made to me by one who was in the habit of borrowing,) pursue their business in a not very dissimilar manner to that imputed to those who advance larger sums:—“If I want to borrow in a hurry,” said my informant, “as I may hear of a good bargain, I run to my neighbour L——’s, and he first says he hasn’t 20s. to lend, and his wife’s by, and she says she hasn’t 2s. in her pocket, and so I can’t be accommodated. Then he says if I must have the money he’ll have to pawn his watch,—or to borrow it of Mr. ——, (an innkeeper) who would charge a deal of interest, for he wasn’t paid all he lent two months back, and 1s. would be expected to be spent in drink—though L—— don’t drink—or he must try if his sister would trust him, but she was sick and wanted all her money—or perhaps his barrow-merchant would lend him 10s., if he’d undertake to return 15s. at night; and it ends by my thinking I’ve done pretty well if I can get 1l. for 5s. interest, for a day’s use of it.”

The beer-shop keepers lend on far easier terms, perhaps at half the interest exacted by the others, and without any regular system of charges; but they look sharp after the repayment, and expect a considerable outlay in beer, and will only lend to good customers; they however have even lent money without interest.

“In the depth of last winter,” said a man of good character to me, “I borrowed 5s. The beer-shop keeper wouldn’t lend; he’ll rather lend to men doing well and drinking. But I borrowed it at 6d. a day interest, and that 6d. a day I paid exactly four weeks, Sundays and all; and that was 15s. in thirty days for the use of 5s. I was half starving all the time, and then I had a slice of luck, and paid the 5s. back slap, and got out of it.”

Many shopkeepers lend money to the stall-keepers, whom they know from standing near their premises, and that without interest. They generally lend, however, to the women, as they think the men want to get drunk with it. “Indeed, if it wasn’t for the women,” said a costermonger to me, “half of us might go to the Union.”

Another mode of usurious lending or trading is, as I said before, to provide the costermonger—not with the stock-money—but with the stock itself. This mode also is highly profitable to the usurer, who is usually a costermonger, but sometimes a greengrocer. A stock of fruit, fish, or vegetables, with a barrow for its conveyance, is entrusted to a street-seller, the usual way being to “let him have a sovereign’s worth.” The value of this, however, at the market cost, rarely exceeds 14s., still the man entrusted with it must carry 20s. to his creditor, or he will hardly be trusted a second time. The man who trades with the stock is not required to pay the 20s. on the first day of the transaction, as he may not have realised so much, but he must pay some of it, generally 10s., and must pay the remainder the next day or the money-lender will decline any subsequent dealings.

It may be thought, as no security is given, and as the costermongering barrow, stock, or money-lender never goes to law for the recovery of any debt or goods, that the per centage is not so very exorbitant after all. But I ascertained that not once in twenty times was the money lender exposed to any loss by the non-payment of his usurious interest, while his profits are enormous. The borrower knows that if he fail in his payment, the lender will acquaint the other members of his fraternity, so that no future loan will be attainable, and the costermonger’s business may be at an end. One borrower told me that the re-payment of his loan of 2l., borrowed two years ago at 4s. a week, had this autumn been reduced to 2s. 6d. a week: “He’s a decent man I pay now,” he said; “he has twice forgiven me a month at a time when the weather was very bad and the times as bad as the weather. Before I borrowed of him I had dealings with ——. He was a scurf. If I missed a week, and told him I would make it up next week, ‘That won’t do,’ he’d say, ‘I’ll turn you up. I’ll take d——d good care to stop you. I’ll have you to rights.’ If I hadn’t satisfied him, as I did at last, I could never have got credit again; never.” I am informed that most of the money-lenders, if a man has paid for a year or so, will now “drop it for a month or so in a very hard-up time, and go on again.” There is no I.O.U. or any memorandum given to the usurer. “There’s never a slip of paper about it, sir,” I was told.

I may add that a very intelligent man from whom I derived information, said to me concerning costermongers never going to law to recover money owing to them, nor indeed for any purpose: “If any one steals anything from me—and that, as far as I know, never happened but once in ten years—and I catch him, I take it out of him on the spot. I give him a jolly good hiding and there’s an end of it. I know very well, sir, that costers are ignorant men, but in my opinion” (laughing) “our never going to law shows that in that point we are in advance of the aristocrats. I never heard of a coster in a law court, unless he was in trouble (charged with some offence)—for assaulting a crusher, or anybody he had quarrelled with, or something of that kind.”

The barrow-lender, when not regularly paid, sends some one, or goes himself, and carries away the barrow.

My personal experience with this peculiar class justifies me in saying that they are far less dishonest than they are usually believed to be, and much more honest than their wandering habits, their want of education and “principle” would lead even the most charitable to suppose. Since I have exhibited an interest in the sufferings and privations of these neglected people, I have, as the reader may readily imagine, had many applications for assistance, and without vanity, I believe I may say, that as far as my limited resources would permit, I have striven to extricate the street-sellers from the grasp of the usurer. Some to whom I have lent small sums (for gifts only degrade struggling honest men into the apathy of beggars) have taken the money with many a protestation that they would repay it in certain weekly instalments, which they themselves proposed, but still have never made their appearance before me a second time—it may be from dishonesty and it may be from inability and shame—others, however, and they are not a few, have religiously kept faith with me, calling punctually to pay back a sixpence or a shilling as the precariousness of their calling would permit, and doing this, though they knew that I abjured all claims upon them but through their honour, and was, indeed, in most cases, ignorant where to find them, even if my inclination led me to seek or enforce a return of the loan. One case of this kind shows so high a sense of honour among a class, generally considered to rank among the most dishonourable, that, even at the risk of being thought egotistical, I will mention it here:—“Two young men, street-sellers, called upon me and begged hard for the loan of a little stock-money. They made needle-cases and hawked them from door to door at the east end of the town, and had not the means of buying the wood. I agreed to let them have ten shillings between them; this they promised to repay at a shilling a week. They were utter strangers to me; nevertheless, at the end of the first week one shilling of the sum was duly returned. The second week, however, brought no shilling, nor did the third, nor the fourth, by which time I got to look upon the money as lost; but at the end of the fifth week one of the men called with his sixpence, and told me how he should have been with me before but his mate had promised each week to meet him with his sixpence, and each week disappointed him; so he had come on alone. I thanked him, and the next week he came again; so he did the next, and the next after that. On the latter occasion he told me that in five more weeks he should have paid off his half of the amount advanced, and that then, as he had come with the other man, he would begin paying off his share as well!”

Those who are unacquainted with the character of the people may feel inclined to doubt the trustworthiness of the class, but it is an extraordinary fact that but few of the costermongers fail to repay the money advanced to them, even at the present ruinous rate of interest. The poor, it is my belief, have not yet been sufficiently tried in this respect;—pawnbrokers, loan-offices, tally-shops, dolly-shops, are the only parties who will trust them—but, as a startling proof of the good faith of the humbler classes generally, it may be stated that Mrs. Chisholm (the lady who has exerted herself so benevolently in the cause of emigration) has lent out, at different times, as much as 160,000l. that has been entrusted to her for the use of the “lower orders,” and that the whole of this large amount has been returned—with the exception of 12l.!