“Property,” says Bastiat, “tends to transform onerous into gratuitous utility. It is that spur which obliges human intelligence to draw from the inertia of matter its latent natural forces. It struggles, certainly for its own benefit, against the obstacles which make utility onerous; and when the obstacle is overthrown, it is found that its disappearance benefits all. Then the indefatigable proprietor attacks new obstacles, and continually raising the human level, he more and more realizes community, and with it equality in the midst of the great human family.”
36. Duties concerning the property of others.—After having established the right of general property, we have to expound the duties relative to the property of others.
The property of others may be injured in various ways, and in different cases. These cases are: 1, loans; 2, trusts; 3, things lost; 4, sales; 5, property strictly so-called.
37. Loans.—Debts.—The inequality of riches is the cause that among men some have need of what others possess, and yet cannot procure by purchase, for want of means. In this case, the first turn to the second to obtain the temporary enjoyment of the thing they stand in need of; this is called borrowing; the reciprocal act, which consists in conceding for a time the desired object, is called loaning. He who borrows, and who by this very act engages himself to return the thing again, is called debtor (who owes), and he who loans is called creditor; he has a credit on his debtor.
Several questions spring from this, some very simple, others very delicate, and often debated.
38. Rights and duties of the creditor.—Money interest.—Usury.—And first, is it a duty to loan to any that ask you? It is evident that if it is a duty it can be only a duty of charity, or friendliness, but not of strict justice. One is no more obliged to loan to all than to give to all. The duty of loaning, like the duty of giving without discrimination, would be tantamount to the negation of property; for he who would open his money-chest to all unconditionally, however rich he might be, would in a few days be absolutely despoiled. Besides, the same duty weighing equally on those who have received, they in their turn would be obliged to pass their goods over to others, and no one would ever be proprietor. In this case, it would even be better to hand all property over to the State, that it might establish a certain order and fixity in the repartition of it.
It is this doctrine which a Father of the Church, Clement of Alexandria, has expressed in these terms in his treatise: Can any rich man be saved?
“What division of property could there be among men if no one had anything? If we cannot fulfil the duties of charity without any money, and if at the same time we were commanded to reject riches, would there not be contradiction? Would it not be to say at the same time give and not give, feed and not feed, share and not share?”
It is therefore not a strict duty to loan to all; it is a form of benevolence, and we must put off to another chapter (ch. vi.) the conditions and the degrees of this duty.
But a question which necessarily presents itself here, is to know if, when one loans, it is a duty to deprive one’s self of all remuneration; or if it is, on the contrary, permitted to exact a price over and beyond the sum loaned. This is what is called money interest; and when this interest is or appears excessive, it is called usury. This question, discussed during the whole middle ages, was, before its true principles were established, first resolved by practice and necessity.