The business of the professional money-lender is one which, as tyranny and abuse are likely to appear, all countries have at different times endeavoured to regulate.
The money-lender deals chiefly in grain and in specie.
He became an associate of Jay Gould in the development and sale of railways; and in 1863 removed to New York City, where, besides speculating in railway stocks, he became a money-lender and a dealer in "puts" and "calls" and "privileges," and in 1874 bought a seat in the New York Stock Exchange.
In what are commonly called loans of money, it is not really the money, but the money's worth, that the borrower wants; and the lender really assigns to him the right to a certain portion of the annual produce of the land and labour of the country, As the general capital of a country increases, so also does the particular portion of it from which the possessors wish to derive a revenue without being at the trouble of employing it themselves, and, as the quantity of stock thus available for loans is augmented, the interest diminishes, not merely "from the general causes which make the market price of things commonly diminish as their quantity increases," but because, with the increase of capital, "it becomes gradually more and more difficult to find within the country a profitable method of employing any new capital" - whence arises a competition between different capitals, and a lowering of profits, which must diminish the price which can be paid for the use of capital, or in other words the rate of interest.
Knight made lender the direction of Professor Osborn.) FIG.
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.
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.
It had been the practice of a certain class of lender to trade under a variety of names; so that under one name the same individual would lend money to a person who borrowed from him under another name; the second loan would be spent in liquidating the first, and the borrower finding it always easy to obtain more money would continue borrowing until he became hopelessly involved.
If a money-lender fails to register himself, or if he carries on a money-lending business otherwise than in his registered name, or in more names than one, or elsewhere than at his registered address, he is liable on summary conviction to a fine, not exceeding one hundred pounds.
For the purposes of the act "money-lender" is defined as including every person whose business is that of money-lending, but it does not include pawnbrokers, in respect of business carried on by them under the Pawnbrokers Act, Registered Friendly, Loan or Building Societies, coporate bodies incorporated or empowered by special act of parliament to lend money, persons bona fide carrying on the business of banking or insurance, or bona fide carrying on any business not having for its primary object the lending of money, or bodies corporate for the time being exempted from registration by order of the Board of Trade.
Each village has at least one resident trader, who usually combines in his own person the functions of money-lender, grain dealer and cloth seller.
Bogusla y skiy, The Volga as a Means of Communication (Russian, 1887), with detailed profile and maps; Peretyatkovich, Volga Region in the 15th and 16th Centuries (1877); and Lender, Die Wolga (1889).
Annaeus Seneca, who combined the parts of a moralist and a money-lender, had abruptly recalled large loans made from his private wealth to British chiefs.
One of these is micro-lending, which directly connects the lender with the borrower and which the Internet has made appealingly easy and personal.