Exchange-BROKERS, are a sort of negotiators, who contrive, make, and conclude bargains between merchants and tradesmen, in matters of money or merchandise, for which they have a fee or premium. These, in old English law-books, are called broggers, and in Scotland, broccarii, i. e. according to Skene, mediators or intercessors in any contract, &c.
They make it their business to know the alteration of the course of exchange, to inform merchants how it goes, and to notify to those who have money to receive or pay beyond sea, who are proper persons for negotiating the exchange with; and when the matter is accomplished, that is, when the money is paid, they have for brokerage 2s. per 100l. sterling. These, by the statute of 8 and 9 William III. are to be licensed in London by the lord mayor, who gives them an oath, and takes bond for the faithful execution of their offices. If any person shall act as a broker without being thus licensed and admitted, he shall forfeit the sum of 50l.: and persons employing him, 5l.; and brokers are to register contracts, &c. under the like penalty: also brokers shall not deal for themselves, on pain of forfeiting 200l. They are to carry about with them a silver medal, having the king's arms and the arms of the city, and pay 40s. a-year to the chamber of the city.
In France, till the middle of the 17th century, their exchange brokers were called courtiers de change; but by an arret of council in 1639, the name was changed for that more creditable one of agent de change, banque, et finance; and in the beginning of the 18th century, to render the office still more honourable, the title of king's counsellors was added.
At Grand Cairo, and several places of the Levant, the Arabs, who do the office of exchange-brokers, are called consuls; the manner of whose negotiating with the European merchants has something in it so very particular, that we have referred it to a distinct article. See CONSUL.
The exchange-brokers at Amsterdam, called makelders, are of two kinds: the one, like the English, called sworn-brokers, because of the oath they take before the burgomasters; but the others negotiate without any commission, and are called walking-brokers. The first are in number 395; whereof 375 are Christians, and 20 Jews: the others are near double that number; so that in Amsterdam there are near 1000 exchange-brokers.—The difference between the two consists in this: The books and persons of the former are allowed
as evidence in the courts of justice; whereas, in case of dispute, the latter are disowned, and their bargains disannulled. Brokers.
The fee of the sworn exchange-brokers of Amsterdam is fixed by two regulations, of 1613 and 1623, with regard to matters of exchange, to 18 sols for 100 livres de gros, or 600 florins; i. e. three sols for 100 florins; payable, half by the drawer and half by the person who pays the money. But custom has made considerable alterations herein.
The Jews, Armenians, and Banians, are the chief brokers throughout most parts of the Levant and the Indies. In Persia all affairs are transacted by a sort of brokers whom they call delal, i. e. great talkers. Their manner in making their markets is very singular: after the brokers have launched out into long, and usually impertinent discourses, coming towards a conclusion, they only converse with their fingers. The buyer's and seller's broker each takes the other by the right hand, which they cover with their coat or a handkerchief: the finger stretched out stands for six; bent for five; the tip of the finger for one; the whole hand for 100; and the hand clenched for 1000. They will express even pounds, shillings, and pence, by their hands. During all this mystic commerce, the two brokers appear as cold and composed as if there were nothing passing between them.
The French distinguish two kinds of brokers; one for the service of merchants, the other of manufacturers, artificers, and workmen. The business of the former is to facilitate the sale of goods in the wholesale and mercantile way; that of the other, to procure the goods wanted for manufacturers, artificers, &c. or to sell their goods when made. At Paris there is scarce a company of tradesmen, or even mechanics, but have their brokers, who are usually taken out of their body, and make it their sole business to negotiate in the particular kinds of goods to which such company is by statutes restrained. There are brokers for drapery, brokers for grocery, brokers for mercery, &c. There are even brokers for tanners, curriers, cutlers, and the like.