Pawnbrokers Act 1731

PAWNBROKERS ACT 1731

CHAP. VII.

An Act for reducing the interest of money to fix per cent.

10 C. 1. 22. sess. 2.

2 Anne 16.

8 G. I. 13.

12 C. 2. 13. Eng

12 Anne 16. stat. 2. Eng.

Advantages by reduction of interest.

Abatement in value of merchandizes, by foreigners underselling.

Interest at 7 per cent. too high.

Preventing improvement of land, &c.

no more than 6 per cent. shall be taken hereafter.

Bonds, contracts, &c. for more, void.

Penalty treble value on persons taking more by any corrupt bargain, loan, exchange, or covin.

WHEREAS the reducing of interest to eight, and from thence to seven, in the hundred hath by experience been found very beneficial to the advancement of trade and improvement of lands: and whereas at this time there is a very great abatement in the value of divers merchandizes, wares, and commodities of this kingdom both at home and also in foreign parts, whither they are transported; which is in great measure occasioned by foreign merchants being enabled to procure money at less expence and for less interest, than the merchants in this kingdom; by which means they can give greater prices for their native commodities and manufactures, and sell them cheaper abroad, by having a greater gain in proportion to their risque, from their freight cheaper by the lowness of interest: and whereas the value of lands would rise at home, and the owners and occupiers of lands would be enabled to improve them by sencing, draining, manuring, and otherwise cultivating them, and manufactures, and other useful arts, and sisheries might be improved, upon procuring money at an easy interest; and also usurers, and others, who now live upon the interest of their money, would betake themselves to some useful art, calling, or trade, or become industrious improvers of the lands of this kingdom, which they cannot now do to any profit, whilst the interest on loan continues at so high a rate as seven pounds in the hundred pounds for a year; which mischiefs cannot be prevented, nor improvements made, without reducing interest to a nearer proportion with the interest allowed for money in foreign states: be it therefore enacted by the King’s most excellent Majesty, by and with the advice and consent of the lords spiritual and temporal and commons in this present Parliament assembled, and by the authority of the same, That, no person or persons whatsoever from and after the first day of May, which will be in the year of our Lord one thousand seven hundred and thirty two, upon any contract to be made after the said first day of May one thousand seven hundred and thirty two shall take directly or indirectly for loan of any moneys, wares, merchandizes, or other commodities whatsoever, above the value of six pounds per cent. for the forbearance of one hundred pounds for a year, and so after that rate for a greater or lesser sum, or for a longer or shorter time; and that all bonds, contracts, and assurances whatsoever, made after the time aforesaid for payment of any principal or money to be lent, or covenant to be performed upon or for any loan, whereupon or whereby there shall be taken or reserved above the rate of six pounds in the hundred as aforesaid, shall be utterly void; and that all and every person or persons whatsoever, which shall after the time aforesaid upon any contract to be made after the said first day of May, which will be in the year of our Lord one thousand seven hundred and thirty two, take, accept, and receive, by way or means of any corrupt bargain, loan, exchange, chevizance, shift, or interest, of any wares, merchandizes, or other thing or things whatsoever, or by any covin, engine, or deceitful way, means, or conveyances, for the forbearing or giving day of payment for one whole year of or for their money or other thing above the sum of fix pounds for the forbearing of one hundred pounds for a year, and so after that rate for a greater or lesser sum, or for a longer or shorter time, shall forfeit and lose for every fuch offence the treble value of the moneys, wares, merchandizes, and other things so lent, bargained, sold, exchanged, or shifted.