History of the Great American Fortunes, Vol. I: Conditions in Settlement and Colonial Times — John Shaqi
History of the Great American Fortunes, Vol. I: Conditions in Settlement and Colonial TimesMyers, Gustavus
History
History of the Great American Fortunes, Vol. I: Conditions in Settlement and Colonial Times
Myers, Gustavus
United States -- Economic conditions; Wealth -- United States
But imprisonment for debt was not the only fate that befell the
propertyless. According to the "Annual Report of the Managers of the
Society for the Prevention of Pauperism in New York City," there were
12,000 paupers in New York City in 1820.[53] Many of these were
destitute Irish who, after having been plundered and dispossessed by the
absentee landlords and the capitalists of their own country, were
induced to pay their last farthing to the shippers for passage to
America. There were laws providing that ship masters must report to the
Mayors of cities and give a bond that the destitutes that they brought
over should not become public charges. These laws were systematically
and successfully evaded; poor immigrants were dumped unceremoniously at
obscure places along the coast from whence they had to make their way,
carrying their baggage and beds, to the cities the best that they could.
Cadwallader D. Colden, mayor of New York for some years, tells, in his
reports, of harrowing cases of death after death resulting from
exposure due to this horrible form of exploitation.
Now when the immigrant or native found himself in a state of near, or
complete, destitution and resorted to the pawnbrokers's or to theft,
what happened? The law restricted pawnbrokers from charging more than
seven per cent on amounts more than $25, but on amounts below that they
were allowed to charge twenty-five per cent. which, as the wage value of
money then went, was oppressively high. Of course, the poor with their
cheap possessions seldom owned anything on which they could get more
than $25; consequently they were the victims of the most grinding
legalized usury. Occasionally some legislative committee recognized,
although in a dim and unanalytic way, this onerous discrimination of law
against the propertyless. "Their [the pawnbrokers'] rates of interest,"
an Aldermanic committee reported in 1832, "have always been exorbitant
and exceedingly oppressive. It has from time to time been regulated by
law, and its sanctions have (as is usual upon most occasions when
oppression has been legalized) been made to fall most heavily upon the
poor." The committee continued with the following comments which were
naive in the extreme considering that for generations all law had been
made by and for the propertied interests: "It is a singular fact that
the smallest sums advanced have always been chargeable with the highest
rates of interest.... It is a fact worthy of consideration that by far
the greater number of loans effected at these establishments are less
than one dollar, and of the whole twelve-fifteenths are in sums less
than one dollar and a half."[54]
On the other hand, the propertied class not only was able to raise money
at a fairly low rate of interest, but, as will appear, had the free use
of the people's money, through the power of government, to the extent of
tens of millions of dollars.
THE PENALTIES OF POVERTY.
Public-domain text, read in full here on John Shaqi.
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