AUCKLAND MONEY-LENDERS AND THEIR VICTIMS.

Observer, Volume 7, Issue 335, 9 May 1885, Page 3

AUCKLAND MONEY-LENDERS AND THEIR VICTIMS.

I have been asked to say something about Auckland's usurers — the human sharks who live and thrive in our midst on the necessities of their unhappy clients. " From information I've received," I understand that there are about twenty persons residing in Auckland who carry on the trade of money-lending. Some of these people are fair and square enough in their transactions as money-lending transactions go ; with them 1 have nothing to do. It is with the vampires who extort exorbitant interest from the unfortunates who are driven to seek their aid — the Shylocks of the profession who exact more than their pound of flesh from their miserable victims — that I now propose to deal. I would that I dared give the names and addresses of these creatures the publicity they deserve, so that the struggling tradesman and the needy clerk — the " flies," in a word, on which the "money spider" subsists — might be warned in time. I can offer intendiug borrowers one word of advice at all events, and that is- -before interviewing any money-lender, make a few enquiries about him, and don't act precipitately. Look before you leap, and don't leap if you can possibly avoid it.

Here are two or three cases that have been brought very recently under my notice. A Government cleric borrowed £30 from a certain Auckland money-lender ; the loan, which was advanced on first-rate security, was to be paid off at the rate of £5 per month, with interest added. The fly has only just escaped from the spider's web. Principal and interest, renewals, etc., the spider has received £75 ; this in twelve months. Here is another specimen of " how it's done " : A civil servant in temporary difficulties borrowed £25 on a three months' bill. His freedom from the meshes has cost him, first and last, nearly four times the amount of his loan, Government official, who ■was " with- an advance of £75, found his real troubles .began with his visit to -the den of Mr Shentpershent. That obliging individual merely charged interest at the- rate of .250 per cent ; and it is satisfactory to know that he hasn't got it, the borrower being -non est. Take another instance : Mr Pigeon being hard pressed for the needful, visited the establishment of Mr Rook. He asked for the loan of £20, and on agreeing to givs a bill at three months the money was forthcoming — that is to say. the borrower received £17 10s cash, in exchange for his paper. At the. expiration of the three months . Mr Pigeon was unable to meet his bill, and the holder kept it back. Learning at the end of 18 months . that Pigeon was in funds, Rook bethought him of the dishonoured bill and sued Pigeon on it for £50, that amount representing the original loan with compound interest added. ■Pigeon thinking the claim extortionate, allowed matters to take their course. When the worthy Mr Rook saw that his client was .determined to fight the claim to the bitter

end he suddenly changed his tactics, and was glad to compromise it by accepting £20 as satisfaction in full. Thus for once the biter was bitten.

Again, a well-known money-lender met a young fellow, one morning in Queen-street, who was particularly "hard up." He was, in fact, without a sixpence, but held an 1.0.XJ. for £o bearing a signature "as good as gold." He had urgent reasons for going South by that afternoon's steamer, and the gentleman whose name appeared on the 1.0.TJ. was out of town. After some haggling, the paper changed hands at £3 10s. The next morning it was presented, and the money at once paid. So much for that little transaction. One more case, and I have done with the subject, to which, however, I shall probably return at no distant date.

A year or two ago, a young man offered a money lender a reversionary interest in property in England. The reversion was worth about £3000. The vampire would only give £1500, and stipulated, moreover, that £300 of this should be taken out in kind (ray readers will understand what that means), while £400 more went to redeem old bills. Within a year, Shentpershent sold the reversion for £3700.

Those of my readers who are so fortunate as to know nothing of the ways of these cormorants may possibly think that the cases I have cited are exaggerated or overcolored. I can only say that they have come to my knowledge as the result of the most careful inquiries, and I challenge the rascals concerned in these nefarious transactions to contradict what I have here written. There is, to the best of my belief, an Act in force in England, expressly framed for the purpose of clipping the wings of the moneylending rooks and protecting the irigeons. We want the Usury Act in New Zealand.