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- Title
The Borrower's Tale: A History of Poor Debtors in Lochner Era New York City.
- Authors
Fleming, Anne
- Abstract
When asked why he did not read over the loan documents before signing them, John Doherty explained: “I was anxious to get the money, I didn't bother about it.” In February 1910, the twenty-three-year-old railroad clerk walked into the offices of the Chesterkirk Company, a loan-sharking operation with offices in lower Manhattan. He was looking to borrow some money. Repayment was guaranteed by the only security Doherty had to offer: his prospective wages and, in his words, his “reputation.” After a brief investigation of Doherty's creditworthiness, the loan was approved. The office manager placed a cross in lead pencil at the bottom of a lengthy form and Doherty signed where indicated. He received $34.85 in exchange for his promise to repay the loan principal plus $10.15 in combined fees and interest in three months. The interest charged was significantly greater than the 6 percent per year allowed in New York State. Doherty's effective annualized interest rate, including fees, was over 100 percent.
- Subjects
DEBTOR &; creditor; LOAN agreements; DOHERTY, John; ANXIETY; LOAN reimbursement; INTEREST rates
- Publication
Law & History Review, 2012, Vol 30, Issue 4, p1053
- ISSN
0738-2480
- Publication type
Article
- DOI
10.1017/S0738248012000533