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The city broker:
the spider in
the lending web

The number of private loans increased during the 1800s from five million in 1820 to 100 million in 1900. Lending was so widespread that it led to the creation of a totally new professional group: the city broker (stadsmäklare).

A city broker did not lend his own money but instead surrounded himself with a group of people who were willing to lend. When someone wanted to make a loan, the city broker put the deal together and took a percentage in return. The city broker was also a middleman for the sale of goods and arranged contracts for property sales.

Not everyone could become a city broker. The person had to be known to be reliable and orderly. A new city broker had to be approved and registered and swear an oath that he had no other business activities on the side. Because this was a more official position, all the city brokers were men.

But many women used their services, not least to lend out money. The banks’ savings accounts had low interest rates and here was an opportunity to make money for someone who dared to lend it out.