a name given to persons of several and very different professions; the chief of which are exchange-brokers, stock-brokers, pawn-brokers, and brokers simply so called who sell household-furniture and second-hand apparel.
Exchange-Brokers, are a kind of agents, or negociators, who contrive, propose, and conclude bargains between merchants, and between merchants and tradesmen, in matters of bills of exchange, or merchandise, for which they have so much commission. 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 broker without being thus licensed and admitted, he shall forfeit the sum of £50l.; and persons employing him, £1l.; and brokers are to register contracts, &c. under the like penalty: also brokers shall not deal for themselves, on pain of forfeiting £20l. 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.—The exchange-brokers make it their business to know the alteration of the course of exchange, to inform merchants how it goes, and to give notice to those who have money to receive or pay beyond sea: they are the proper persons for negotiating the exchange; and when the matter is accomplished, that is, when the money for the bill is paid, and the bill delivered, they have for brokerage 2s. for 100l. sterling.
They reckon at Paris, among the city-officers, who are employed under the jurisdiction of the provost of the merchants, and chevres or aldermen, three sorts of brokers. 1. The brokers of horses for the carriage of merchandise by water: they are established for the navigation; and take care to examine the horses used to draw the boats up the river, to let the horses together, to oblige the carriers to repair their boats, or to break such as are no longer fit to serve. 2. Sworn wine-brokers on the keys, to examine and taste all the wine that arrives there. 3. Brokers of bacon and lard. These are established to examine those sorts of merchandises as they are landed or unloaded, and to answer for their goodnefs to the buyer, and to the seller for the price of his wares.
Stock-Brokers, are those who are employed to buy and sell shares in the joint stock of a company or corporation. As the practice of stock-jobbing has been carried to such an excess as became not only ruinous to a great number of private families, but even affected, or at least might soon affect, the public credit of the nation, the legislature thought fit to put a stop to it, or at least to bring it within certain bounds, and under some regulation, by statute 7 George II. c. viii. sect. 1.
Pawn-Brokers, persons who keep shops, and lend money upon pledges to necessitous persons, and most commonly at an exorbitant interest. They are more properly styled pawn-takers, or tally-men, sometimes fripers, or friperers. These are meant in 1 Jac. I. cap. xxii. sect. 5. where it is declared, that the sale of goods wrongfully taken to any broker, or pawn-broker, in London, Westminster, Southwark, or within two miles of London, does not alter the property. And (sect. 7.) if a broker, having received such goods, shall not, upon request of the owner, discover them, how and when he came by them, and to whom they are conveyed, he shall forfeit the double value thereof, to be recovered by action of debt, &c.
In the cities of Italy, there are companies established by authority for the letting out money on pawns, called mounts of piety; a title little becoming such institutions. In some parts of Italy, they have also mounts of piety of another kind, wherein they only receive ready money, and return it again with interest, at a certain sum per annum. At Bologna, they have several such mounts, which are distinguished into frank and perpetual: the interest of the former is only four per cent.; that of the latter, seven.
Brokers are also those who sell old household furniture, and wearing apparel, &c.