Credit and Informal Finance

• Shop Credit: Many middle-class households purchase goods “on account,” paying a week later or by instalments. This creates ongoing small debts with local shopkeepers.
• Tallymen: Travelling salesmen who sell goods on instalment plans, often at inflated prices. Common in poorer districts.
• Moneylenders: Provide short-term loans at high interest. Often unregulated and exploitative.
• Friendly Societies: Mutual aid organisations where members contribute small amounts regularly to receive support in times of illness or hardship.
• Credit is available to the rich in most businesses, normally expecting accounts to be paid off yearly.
• Pawn brokers Will accept items as a security for loans. Loan fees are high, instalment costs are high and storage fees are high. If the loan is not paid off it the agreed time the item deposits are forfeit and are sold back to the public in the pawnbrokers shop. Presently this is very popular with people securing short term loans depositing their Sunday best clothes until needed to secure food during times of hardship.

Rent and Housing

• Renting: Most urban residents rent rather than own property. Rent is typically paid weekly.
• Overcrowding: Common in poorer districts, with multiple families sharing small spaces.
• Landlords: Often absent, collecting rent through agents. Conditions can be poor with little oversight.
• Lodging Houses: Provide short-term accommodation for the transient or very poor, paid nightly.

Investment

• Railways and Industry: Investment in railways, shipping, and industry is a major source of wealth for the upper and middle classes.
• Shares and Dividends: Stock ownership is increasingly common among the wealthy, providing passive income.
• Land Ownership: Still a primary source of wealth and status, especially among the nobility.
• Speculation: Financial speculation exists but carries risk, particularly in emerging industries.

Income Tax / Taxes

• Historical Context: Income tax in the UK was first introduced by Prime Minister William Pitt the Younger in 1799 to fund the Napoleonic Wars. It was repealed and reintroduced several times in the early 19th century.

• Status in 1870: Income tax is established and is collected regularly.

• Rates and Thresholds: The income tax rate varies depending on income levels. The rate is generally around 2 pence to 6 pence in the pound (1/240th to 1/40th of the income). There were also exemptions and abatements for lower incomes, meaning not everyone pays income tax.

• Property Tax (Land Tax): Property owners are required to pay land tax, which had been in place since the late 17th century. The amount is based on the rental value of the property.

• House Duty: This is a tax on inhabited houses, assessed based on the rental value of the property. Larger and more valuable houses attract higher taxes.

• Poor Rates: These are local taxes levied to fund the Poor Law system, providing relief to the poor. Property owners, including landlords, are required to pay poor rates.

• Highway Rates: Levied to maintain and repair local roads and highways, these rates are another local tax burden on property owners.

• Customs and Excise Duties: These are significant sources of revenue for the government. Taxes were levied on a wide range of goods, including alcohol, tobacco, tea, and coffee.

• Stamp Duties: These are taxes on legal documents, newspapers, advertisements, and various types of financial transactions. Stamp duties are an important part of the tax system and applied to many daily activities.

• Legacy and Succession Duties: Inheritance taxes are levied on the estates of deceased persons. The rate depends on the relationship of the inheritor to the deceased and the value of the estate.

• Assessed Taxes: These include taxes on items like carriages, male servants, horses, and dogs. These taxes were seen as luxury taxes, affecting the wealthier segments of society.

Money

Coins are the main form of currency with the weight and material linked to the value of the the coins. The currency is presently gold backed.

Paper money does exist typically £5 and £10 notes they are rare and very large A3-A4 sized sheets issued by the bank of England.

Cheques are the common form for the wealthy to move moderate to large amounts of money. This of course needs a bank account.

Currency

pounds (£), shillings (s), and pence (d).

There are
4 Farthings to a Penny
12 pence to 1 shilling
20 shillings to 1 pound.
A guinea is one pound and one shilling (£1.1) The Guinea is a gentleman's currency.

£1.4/6 (one pound, four shillings, and sixpence)
£6.9 (six pounds and nine shillings)
£5/10 (five pounds and ten pence)
2/8 (two shillings and eight pence)
2d (two pence or ‘tuppence’)

Coins

(Guinea) = One pound & one shilling = 21s = 252d
Pound = Two ten bob notes = 20s = 240d
Ten Bob Note = 10S = 120d
Half crown = One florin & sixpence = 2/6 = 30d
Florin = Two bob = 2s = 24d
Shilling, or ‘bob’ = Two sixpences = 1s = 12d
Sixpence = Two thrupences = 6d
‘Thrupennybit’ or ‘thrupence’ = Three pennies = 3d
Penny = Two ha’pennies = 1d
Ha’penny = Two farthings = 0.5d
Farthing = Two half farthings = 0.25d
Half farthing = 0.125d