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An immense new borrowing soon follows upon the new and great trade, and the rate of interest rises at once, and generally rises rapidly. This is the surer to happen that Lombard Street is, as has been shown before, a very delicate market. A large amount of money is held there by bankers and by bill-brokers at interest: this they must employ, or they will be ruined.
There is another large class, consisting of bankers, bill-brokers, and others, who are money-lenders by profession; who enter into that profession with the intention of making such gains as it will yield them, and who would not be induced to change their business by any but a very strong pecuniary inducement. There is, therefore, a large class of persons who are habitually lenders.
It may be lessened; the bill-brokers may, and should, discourage as much as they can the deposit of money with them on demand, and encourage the deposit of it at distant fixed dates or long notice. This will diminish the anomaly, but it will not cure it. Practically, bin-brokers cannot refuse to receive money at call.
The principal mode in which money is raised by traders is by 'bills of exchange; the estimated certainty of their paying those bills on the day they fall due is the measure of their credit; and those who estimate that liability best, the only persons indeed who can estimate it exceedingly well, are the bill-brokers.
The bill-broker who discounted the bills speedily discovered their fraudulent nature; but he knew that the money was safe. Lord Adolphus Vanlorme was a customer of the house of Dunbar and Dunbar; the bill-brokers knew that his acceptance was a forgery; but they knew also that the signature of the drawer, Henry Dunbar, was genuine. Messrs.
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