Usury / A Scriptural, Ethical and Economic View

by Calvin Elliott

Though there may be an equitable arrangement between the owner of property and his broker and between the broker and his promoter, yet in the last analysis it will be found that this equitable arrangement, in its ultimate result, is of the nature of a conspiracy to compel the innocent poor to pay the profits of both; their consent is not first secured nor do they gain a single advantage and they are helpless to resist.

Though the transaction may have been between the rich, a rich lender and a rich borrower, yet the final result is that the interest is paid by the poor. In Calvin's letter of apology he supposes a case of equity between a rich land owner who is in need of ready money and the man who has money to buy a farm, but instead lends to his rich landlord and takes a mortgage. In this case the tenants of the borrower must pay the interest and finally the principal also. This increases the hardness of their hard lot. Though Calvin seems to appreciate the severe conditions of the ordinary tenant in his day, yet he fails to recognize that the very illustration he gives would result in greater oppression.

When one entrusts his money to a broker for investment he does not come in contact with those who earn the interest. It may pass through a number of agents and the source from which the interest is drawn is not regarded. When one entrusts his money to the "Security Co." in their great building, surrounded by all appearances of unlimited wealth, it is not realized that the interest returned is wrung from the poor. Money does not lie in the vaults. It is loaned to others who as agents do collect or gather from the poor. A loan is made to a milling company and the interest is gathered from all who buy their flour. A loan is made to a landlord and he collects the usury from his tenants. A loan is made to a street car company and increase is collected from the employes and from every rider. A loan is made to a merchant and he collects from his customers.

It is easy to see who pay the interest when we make a common pawnbroker our agent and see in his dingy rooms the evident distress and needs of his callers. Many shrink from his oppressions who are deceived by the splendid surroundings of the "Security Co." But the interest is exacted from the same class as truly by one as by the other.

Usury oppresses the poor by raising the price of all that he consumes. Without being consulted and without the power of resistance he must pay tribute to property for the very necessities of life.

He lives in a rented house. The owner has placed a mortgage on this house and the tenant must pay the interest and more in his rental or be ejected. The bread he must have is from wheat raised on mortgaged land and the interest must be met in the price of wheat. The mill is mortgaged in which it is ground and the interest must be paid in the increased price of flour. The railroad is bonded and the interest on the bonds must be paid in the price of its transportation, and the merchant has a loan to enable him to do business and the interest on this loan must be met in the increase of the profits on flour and all other goods he handles. By usury a tribute is levied on his bread from the wheat in the field until it reaches his tables.

In the same way he pays interest in the price of his meat, which is raised on a mortgaged farm, transported over a bonded railroad, dressed in a mortgaged abattoir and sold by a dealer doing business on borrowed capital.

The same is true of his clothes; a first tribute must be paid to property by the raw cotton or wool, then the transportation and the factory and the merchant, in addition to the compensation for their services, must meet also the interest upon their loans, and the whole is summed up in the price the poor man must pay. He has no option in the matter; he has no alternative, no method by which he can escape. The same is true with regard to his fuel and his light.

The same is true with regard to car fares. In every ride he pays an enormous tribute to invested wealth. The writer made a careful estimate of the accounts of a car line in a small city where the number of riders bore small comparison with the crowded cars of any metropolis. When the cost of maintenance of the plant, including the wear and tear and all repairs, and the cost of operation, covering all current expenses, including taxes, were compared with the receipts from the patrons of the road, it was found that less than two cents per passenger was necessary to pay these charges and that three cents had gone to pay the interest on the enormous bonded indebtedness and dividends on the inflated stock.

The wage-earner, the pensioner and every person living upon an annuity or fixed income from any source, must thus pay usury or interest on obligations they never incurred. A large portion of their living is thus taken from them, and under a system of general usury they have no way of avoiding it. They must pay an enormous tribute to property in providing the common necessaries of life.