The phrase "go on security" as said during the late 1800s meant to pledge collateral for a loan. Not only banking but pawn shops would offer this type of service. If you can't pay the loan back, you lose your collateral. Many poor people live hand to mouth, unable to break free from usury rates of interest, and failure to pay off loans, losing larger assets in the process.
It changes the story line. I managed a great deal of money for wealthy families before retirement. A very common story was poor relatives, mainly children and grandchildren, mooching money from grandma who can not say no. In the context of your story, it is very clear what is happening. Friends and relatives begged money from good hearted (and foolish) James. He posted his real estate or other possessions as collateral (on security) and never got paid back by the moochers and then he himself could not pay his loan to retrieve his collateral.
Another element here is the "species crash of 1837." Eighteen thirty-seven was the tippy top of a real estate bubble fueled by easy credit with scrip from banks. Scrip was an IOU from a bank printed to look like currency. It is as if any bank could just print their own money. What could possibly go wrong? When the economy crashed, real estate prices plummeted and a depression lasting about seven years ensued. Very hard times. I have traced this same decade for my family here in Illinois via their land transactions on BLM land patent web site. You have a fantastic resource with that written account from 1893. Consider uploading it to ChatGpt for a detailed analysis. I think you can squeeze more out of it.
The phrase "go on security" as said during the late 1800s meant to pledge collateral for a loan. Not only banking but pawn shops would offer this type of service. If you can't pay the loan back, you lose your collateral. Many poor people live hand to mouth, unable to break free from usury rates of interest, and failure to pay off loans, losing larger assets in the process.
Thank you! I will make sure that is noted!
It changes the story line. I managed a great deal of money for wealthy families before retirement. A very common story was poor relatives, mainly children and grandchildren, mooching money from grandma who can not say no. In the context of your story, it is very clear what is happening. Friends and relatives begged money from good hearted (and foolish) James. He posted his real estate or other possessions as collateral (on security) and never got paid back by the moochers and then he himself could not pay his loan to retrieve his collateral.
Another element here is the "species crash of 1837." Eighteen thirty-seven was the tippy top of a real estate bubble fueled by easy credit with scrip from banks. Scrip was an IOU from a bank printed to look like currency. It is as if any bank could just print their own money. What could possibly go wrong? When the economy crashed, real estate prices plummeted and a depression lasting about seven years ensued. Very hard times. I have traced this same decade for my family here in Illinois via their land transactions on BLM land patent web site. You have a fantastic resource with that written account from 1893. Consider uploading it to ChatGpt for a detailed analysis. I think you can squeeze more out of it.