Charitable Corporation - Petitions

Petitions

In the end, the Common Council of the City of London petitioned the Parliament of Great Britain in March 1731, for relief against the "unreasonable and exhorbitant rates" charged and the low prices achieved on sale of unredeemed goods. This was supported by a petition from merchants and other traders in London and by the silkweavers and worsted manufacturers of Spitalfields. They alleged that pledges were often sold at 20% below the production cost; this discouraged industry and encouraged fraudulent bankrupts. The Company procured opposing petitions, which claimed that the Company did nothing contrary to their charter and their powers "greatly conduce to prevent usury". Pamphlets published at the time referred to pawnbrokers charging 30%. The matter was rapidly considered by House of Commons (in Committee of the whole House) who heard witnesses, several of whom were in prison for debt. The Committee reported:

The Charitable Corporation have lent money in large sums which under colour and pretence of reasonable costs and charges they have exacted after the rate of over and above lawful interest, and therefore ought to be regulated.

A bill was introduced accordingly, but had only been passed by the Commons, when the king prorogued Parliament. on 7 May 1731