Lender

“ Soon after the widow had an offer for her house and furniture, so she went to redeem the lease held in security by the money-lender. The poor woman, who had signed the papers presented to her, either without reading them or without thoroughly understanding them, then learned for the first time that “£5 per cent.” did not mean £5 a year for the loan of a hundred pounds. The money-lender’s advertisement did not say “£5 per cent. per annum.” He lent his money at £5 per cent. per month, or £60 for a year for £100, besides various fees and charges. ”

“ Practically every form of investment in which a man is capable of indulging involves the lending and borrowing of money, the interest exacted being the profit which the lender receives for the use of his capital. The existence of the professional lender, as apart from the ordinary facilities for borrowing money on good security, is obviously due to the fact that it is not every borrower who is in a position to give good security for a loan. ”

“ The lender who reserves an interest of six per cent upon a greater sum than he actually lends, is most clearly, we think, as much and as directly a violator of the law as he who reserves more than six per cent upon the sum actually loaned. ”

“ The lender is not even believed where he is negatively impacting himself too, such as where the document is for 200 and he only owes others 100. If after the lender said the document was given on trust, he paid back his creditor and he now wants to use this document to collect from the borrower we analyze the situation. ”

“ During the continuance of the loan the borrowing broker is found by the loan contract to give the lender all the benefits and the lender is bound to assume all the burdens incident to ownership of the stock which is the subject of the transaction, as though the lender had retained the stock. ”

“ As every confidence will be placed in the lender, no inquiries will be made or expected. Moreover, this being a purely unprofessional, but strictly business transaction, as between gentleman and gentleman, no amount of interest will be objected to, and no agents will be treated with. N.B.—If lender is unable at a moment's notice to raise so large a sum, a few shillings in advance per postal order, if merely as a guarantee of good faith, can be forwarded on account, and will be acknowledged with thanks. ”

“ The conditions of the loan, or whether any particular security shall be given to the lender, are matters of arrangement between the parties; they do not concern any one else. They do not imply that the borrower can give to his promise to refund the money any security to the lender outside of property or rights which he possesses. The transaction is completed when the lender parts with his money and the borrower gives his promise to pay at the time and in the manner and with the securities agreed upon. ”

“ A capital lent at interest may, in this manner, be considered as an assignment, from the lender to the borrower, of a certain considerable portion of the annual produce, upon condition that the borrower in return shall, during the continuation of the loan, annually assign to the lender a small portion, called the interest ”

“ Now came into existence an entire new class of philanthropists; men who were ever ready to lend their money to such of the needy as possessed property, taking judgment bonds, mortgages, and other innocent securities, which were received because the lender always acted on a principle of not lending without them, or had taken a vow, or made their wives promises; the end of all being a transfer of title, by which the friendly assistant commonly relieved his dupe of the future care of all his property. ”

“ The owner of a negotiable bond and of the investment which it represents, if not the lender, stands in the place of the lender. When, by the gift of the coupons, he has separated his right to interest payments from his investment and procured the payment of the interest to his donee, he has enjoyed the economic benefits of the income in the same manner and to the same extent as though the transfer were of earnings and in both cases the import of the statute is that the fruit is not to be attributed to a different tree from that on which it grew. ”

“ Supposing that the lender is satisfied with all his securities, and that the borrower is of age and of a family whose property is ample, solid, secure, and free from all incumbrances, there shall be drawn up a good and correct bond before as honest a notary as it is possible to find, and who for this purpose shall be chosen by the lender, because he is the more concerned of the two that the bond should be rightly executed. ”

“ If we should ask of a moneyed man a loan of one hundred dollars, payable with one hundred acres of land at the end of ten years, and in the meantime carrying an interest of five per cent., this would be more disadvantageous to the lender than a common loan, payable ultimately in cash. But if we should say, we will deliver you the one hundred acres of land immediately, which is in fact an immediate payment of the principal, and will nevertheless pay your interest of five per cent., for ten years, this offers a superior advantage, and might tempt money holders. ”

“ Paragraph 26- If a borrower testified against a lender that he lent him with interest and the borrower has another witness join with him to disqualify the lender, although a person cannot establish himself as wicked, we can split his words and we believe him with respect to the lender but not with respect to himself. ”

“ If two lenders each produce a document against a borrower where each set has signed onto one of the documents- one set per document, and the borrower denies both of them, each lender may swear and collect. They must swear even if the fact that the lender is believed is included in the documents.
Paragraph 3- If one lender produces the documents at the same time against two borrowers, each borrower takes a heses oath and will be exempt. If one confesses, the lender may collect from unencumbered property. If the lender only produces one document, he may collect with it. ”

“ There is the slow deliberate manner, in using which the borrower attempts to carry the wished-for lender along with him by force of argument, and to prove that the desire to borrow shows no imprudence on his own part, and that a tendency to lend will show none on the part of the intended lender. ”

“ In ordinary times the Bank is only one of many lenders, whereas in a panic it is the sole lender, and we want, as far as we can, to bring back the unusual state of a time of panic to the common state of ordinary times. ”

“ But they are great lenders to those who lend. They advance on foreign stocks, as the phrase is, with "a margin": that is, they find eighty per cent. of the money, and the nominal lender finds the rest. ”

“ High-cost lending is not limited to home mortgages. Check cashing outlets, payday loan companies, rent-to-own stores, subprime auto lenders, and pawn shops are additional examples of high-cost lenders. ”

“ When a native borrows money he either promises to pay a certain amount of interest for the loan, or he promises and actually allows the lender to have his services for a specified time in lieu of interest. ”

“ He had no ready money to meet the sudden call upon his purse which such an expedition rendered necessary, and he had recourse to money-lenders to raise the first loans required; then to friends to pay the interest on and to obtain renewals of these loans ”

“ All persons in business are occasionally, and most of them constantly, borrowers: while all persons not in business, who possess monied property, are lenders. Between these two great bodies there is a numerous, keen, and intelligent class of middlemen, composed of bankers, stockbrokers, discount brokers, and others, alive to the slightest breath of probable gain. ”

“ The rate of interest for loans was, nevertheless, everywhere settled by law, and at all times. This rate varied according to the scarcity of gold, and was always high enough to give a very ample profit to the lenders, although they too often required a very much higher rate. ”

“ Some borrow their barrows, and pay 1s. a week for the hire of them. Many borrow the capital upon which they trade, frequently of their landlord. Some get credit for their grocery—some for their bread. If they borrow, they pay about 20 per cent. per week for the loan. I was told of one man that makes a practice of lending [185] money to the coffee-stall-keepers and other hucksters, at the rate of at least 20 per cent. a week. If the party wishing to borrow a pound or two is unknown to the money-lender, he requires security, and the interest to be paid him weekly. ”

“ Those borrowers who expected to renew old loans on maturity would have to consider little beyond the interest demanded by lenders, while borrowers who expected to pay off the loans out of the proceeds of their ventures would be interested primarily in the amount of goods that would sell for sufficient money to make up the principal. ”

“ In other words, it is an association composed of borrowers and lenders, and established for their mutual convenience. It gathers together the savings of the people, which, scattered and in small sums, could not be invested to advantage, and loans the money thus obtained on first mortgage security, and in sums to suit, to those who wish to build, to pay off mortgages, or for other purposes. ”

“ The money lenders keep a regular list of names noted down in their books, to which, in cases of necessity, they usually refer and advance or withhold in proportion as their employers have been more or less forward in their liquidation of former engagements. ”

“ Recognizing the support which banks and other lenders of money have given to dealers in securities, it should be the policy of such dealers when securities are sold to apply the proceeds toward the liquidation of loans. ”

“ for I must let you understand I think myself in better plight for a lender than you are: the which hath something emboldened me to this unseasoned intrusion; for they say, if money go before, all ways do lie open. ”

“ To accommodate matters, however, and that the poor woman should not be weeping daily and indefinitely on the maddened teller's window, an intermediary money-lender was found, who, having vainly sought to induce the bank to render itself responsible, then Mrs. ”

“ But the business of receiving money on deposit has always been, and is now, universally combined with that of lending it out. A banker does not hoard all the money deposited with him—he gives the greater portion out in loan. The lending of money is as much a part of his business as the receiving of deposits.”
You cannot go into a banker’s and say, “I{183} have come to open an account,” just as you would enter a grocer’s with, “Be so good as send me half a dozen tins of the best sardines.” ”

“ All stock of the United States, loan office bonds, bank shares, and credits belonging to the State are to be put in this bank, and the faith of the State is pledged to make good any deficiencies; public deposits to be placed in it; to lend on two-name paper and on real and personal property, the borrower giving power of attorney to confess judgment; no loan to run more than a year; no renewal to be granted unless the next year's interest is paid in advance; no loan to one person to exceed $2,000; one-tenth of each loan to be called in in each year ”

“ I wouldn't sell it at any price, but I'm short of ready cash, and I'll pay eight per cent. interest and give the next dividend as a bonus, for a loan of seventy-five dollars for thirty days. I'm proud and particular about my business, and I dislike to ask my friends for the loan."
"Say," observed the farmer, dazzled at the sight of the pretty document, "you mean you'll give all that security and interest for a loan of seventy-five dollars?"
"To an honest man who won't run away with the security, yes."
"I can show you letters telling you who I am," declared the farmer, perking up with pride. ”

“ In a building and loan association the money is put up at auction, usually in open meeting on the night or at the time of the payment of dues. Those who wish to borrow bid a premium above the regular rate of interest charged, and the one who bids the highest premium is awarded the loan. The man who wishes to build his house, therefore, and desires to borrow $1,000, must have five shares of stock in his association, must bid the highest premium, and then the $1,000 will be loaned to him. ”

“ The State was entitled to a loan of $200,000, and each stockholder was entitled to a credit equal to one-half his shares for twenty-five years; that is, four per cent. to be paid annually on the principal, the notes being renewed annually. There were to be seven branches; two-thirds of the capital was to be lent on real estate, one-third on promissory notes; borrowers on mortgage were to pay one-eighth annually on their notes. The four last years of the charter period were to be employed in winding up the bank. ”

“ The receipt of money deposits payable on demand and subject to check, or payable at a fixed date, or according to special agreement. Interest is usually allowed on all deposits above a fixed maximum amount or on the total sum.
Money advances secured by the hypothecation of stocks, bonds, life insurance policies, bonds and mortgages, or other personal property.
Real estate loans, secured by bond and mortgage. It is customary to loan not over two-thirds of the value of improved property; when the property is unimproved, not more than half. ”

“ When, in 1846, the trustees of the Real Estate Bank were asked why the collections were so tardy, their secretary replied that the loans were first used to pay old debts; that credit was so easy that many were seduced into borrowing imprudently; that many mortgaged their land at such a high valuation that they would now rather surrender it than pay; that some were waiting for a further depreciation of the State securities, forgetting accumulating interest; that many hoped in some way to escape payment. ”