BROKER, an agent or intermediate person ap pointed for the transactions of special busineis for another, somewhat different from an ordinary factor • in functions and responsibility. Of this class, there are various descriptions, exercising employments ' without the smallest analogy, though all are brought under the general name of broken ; and of these, the principal are, Exchange-Brokers, whose province is to ascertain the rates and relation of exchange be tween countries ; Stock-Brokers, who negociate transactions in the public funds; Insurance-Brokers, who effect insurances on lives or property ; and Pawn-Brokers. It is to the last that our attention shall here be chiefly directed.
Pawn-Brokers are a kind of bankers who advance money at a peculiar rate of interest, on foods im pledged for security of the capital ; and in case of figlure to redeem the goods within a limited time, they may be sold to indemnify the lender.
A part of the population of every flourishing coun try consists of necessitous people, those frepiently belonging to a class whose skill contributes to its pro sperity ; but whose income, often slender and-precari ous, cannot keep pace with the times, or support the demands of an increasing family. Exposed also to sudden disappointments and losses, they are forced, from the want of pecuniary capital, to seek a tempo rary relief; by inopledging their property for a cer tain sum, while tbey pay interest on the advance: But this advance, in general, bears a very inownei aerobic proportion to the value of the property, whence its confiscation, by the increasing dithcuities of the owner, or of not being claimed on account of death or removal, proves most advantageous to the holder. ; for, in the one case, he may become the ab solute proprietor himself, and, in the other, he se ceases a high rate of interest originally stipulated: Thus, a pawebsoker an infinite superiority over an ordinary banker ; the latter calculates only on the credit of his debtor, which is frequently nominal; the former never• makes an advance without being put in • n of what exceeds it in value ; his rate of interest is much greater, and the credit of his debtor is of no importance. Nay it is rather
better that his circumstances should be desperate. It thence results, that, like other trades, the number of pawnbrokers will increase with the necessities of the people requiring their aid, and, on that account, giving them employment, just as bankers, whose issues increase when the calls of the public require a mere ample supply of a circulating medium. Theis a strong inducement is continually held out to comp mean the profession of a pawnbroker ; for all that is required, is comprised in a licence of L.10 yearly to Government, a small capital, and an empty ware .
house. On such an establishment, business may be done to a great extent in a very short time ; because theaecuritiw increase. in a muck greater tattle than.
the debts, while the latter are void of say risk. We find in the may of London, that the ander of pawnbrokers lately mowed to no has than about 240, and it was calculated, that the property of ne. ceseitous persons in their possession, probably a. mounted to a million Sterling. Their numbers also had suddenly augmented, and they are still augment ing. In Edinburgh, on the contrary, which is not above a tenth part of the site of the metropolis, there was scarcely one a few yens ago, and now the number does not exceed a dean. Therefore the number it not one half in proportion to the population of the two different places, which indicates fewer necessi tous people by a half in Edinburgh; arguing, either that the inhabitants are more industrious and more easily maintained, or les•exposed to Iona and fluc tuations.
But the temptations held out to these who, in this manner, obtain possession of the property of others to such an amount, and with so little refer ence to its value, combined with the natural pro. pensity of mankind to take advantage of the ne cessities of their neighbours, long ago rendered legislative interference necessary in regulating the duties and interests of pawnbrokers. Besides, it was of great consequence to cheek the facilities with which stolen goods might be impledged with, and sold by them. Omitting, however, the older enact. meats on these branches, we shall limit ourselves to those of more recent date.