Historic China, and other sketches by Herbert Allen Giles
page 37 of 161 (22%)
page 37 of 161 (22%)
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place is made so hot for its owner that he is glad to get rid of his
visitor at any price whatever. Were manual violence resorted to, the interference of the local officials would be absolutely necessary; and in all cases where personal injuries are an element, their action is not characterised by the same tyranny and corruption as where only property is at stake. The chances are that the aggressor would come off worst. To protect themselves, however, from such a prohibitive rate of usury as that mentioned above, Chinese merchants are in the habit of combining together and forming what are called Loan Societies for the mutual benefit of all concerned. Such a society may be started in the first instance by a deposit of so much per member, which sum, in the absence of a volunteer, is handed over to a manager, elected by a throw of dice, whose business it is to lay out the money during the ensuing month to the best possible advantage. Frequently one of the members, being himself in want of funds, will undertake the job; and he, in common with all managers, is held responsible for the safety of the loan. At the end of the month there is a meeting at which the past manager is bound to produce the entire sum entrusted to his charge, together with any profits that may have accrued meanwhile. Another member volunteers, or is elected manager, and so the thing goes on, a running fund from which any member may borrow, paying interest at a very low rate indeed. Dividends are never declared, and consequently some of these clubs are enormously rich; but any member is at liberty to withdraw whenever he likes, and he takes with him his share of all moneys in the hands of the Society at the moment of his retirement. To outsiders, the market rate of interest is charged, or perhaps a trifle less, but loans are only made upon the very best securities. |
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