[190-4] Exod., 22, 25; Levit., 25, 35 ff.; Deuteron., 15, 7 seq.; 23, 19 seq.; Psalms, 15, 5; 109, 11; 112, 5; Proverbs, 28, 8; Jerem., 15, 10; Hes., 18, 8. After the return from exile, the prohibition was restored. (Net. 5, 1 ff.) Was there, in the long duration of such prescriptions, an educational measure having reference to the peculiar fault towards which the Jewish national character had a special tendency? In Josephus's time even, usury practiced on one's country people was universally despised (Antiq. Jud., IV, 8, 25.), and the Talmud continues it. Compare Michaelis, De Mente ac Ratione Legis M. Usuram prohibentis. In Russia, the orthodox Jews are wont to evade the legal rate of interest by exacting one-half the profit, and estimating it approximately in advance at a probable sum. If, afterwards, the debtor declares under oath that he made no profit, the creditor has no more to say; but then the borrower would lose all credit in the future. (Bonav. Mayer, Die Juden unserer Zeit, 1842, 13 seq.)
[190-5] The Mosaic passages, however, only prohibit the taking of interest from poor people of one's own country.
[190-6] The prohibition in the Koran, ch. 2, 30, is regularly evaded in Persia, by deducting the proper amount at the moment the loan is made. (Chardin, IV, 157 ff.) Under the Mongolian rulers, it was done by way of preference, by a fictitious sale for cash, at prices out of all proportion. "Why cannot capitalists either buy land or carry on trade?" asked Sultan Gazan, on an occasion when the prohibition of interest was strongly insisted on. (d'Ohsson, Histoire des Mongols, IV, 397.)
[190-7] For instance, Luke, 6, 34 ff., where interest is no more prohibited than in Luke, 14, 12 ff., the mutual invitation of friends to a feast. Not less groundless is the supposed allegorical allusion (Matthew, 21, 12) to interest-creditors. Rather might an approval of interest be inferred from Matthew, 25, 27.
[190-8] Origen, for instance, would have the creditor take no interest; but exhorts the debtor to return double the amount unasked. (Homil., III, ad. Ps., § 37.) Hence there is here no condemnation of interest, but only an effort to transform all legal relations into relations of love. Quite the reverse in Lactant., Instit., VI, 12; Basil, ad. Matth., 5 ff.; Ambrose, De Off., III, 3; Chrysost., ad. Matth. Hom., 56; Tim., VII, 373 ff. (Paris, 1727); Hieronym., ad. Ezech., V, 367 c. (Francof, 1684); Augustin., Epist., 54. Even Cyprian, 183, 318 (Paris, 1726).
INTEREST-POLICY.—THE CANON LAW, etc.
The canon law, from the first, endeavored to prevent contracts for interest. We may even say that the prohibition of interest-usury is the key-stone of the whole system of the political economy of the Corpus Juris Canonici. The development of that law coincides, as to time, with the senility of the Roman Empire and the childhood of modern nations.[191-1] In the golden age of papal power, every interest-creditor was refused the communion, the testamenti factio and the right of ecclesiastical burial. Proceedings at law could not be instituted for the recovery of the principal debt until the creditor had restored all the interest obtained. In the council of Vienna, in 1311, it was declared heresy to defend the taking of interest. The universal antipathy of the church towards the growing importance of the bourgeoisie,[191-2] and the desire to give the spiritual courts an extensive jurisdiction in litigated cases, may have contributed largely to the adoption of these measures. In later medieval times, the secular power offered its services to execute these laws;[191-3] and, to judge of what public opinion in this matter was, we need only call to mind the decided disapproval of interest by Dante, Luther and Shakespeare.[191-4]
The Weddeschat, a species of pledge or loan on security, constituted the transition from this state of things to the modern economic system of interest. The Weddeschat was a sale with a reserved right of redemption, by which the debtor gave his creditor the use and enjoyment of a piece of land a sort of interest in kind, but which he could at any time recover back, by payment of the principal. This was not very oppressive on the debtor, as he was the only party who could recall the contract.[191-5] In a higher stage of civilization, indeed the continuance of this species of land-pledge would be exceedingly disadvantageous, since the momentary possessor of a piece of land which might be bought back by another person at any time at a price fixed in advance, would scarcely think of improving it.[191-6]
And so, the introduction of rent-purchase (Rentekauf) was an important step in advance: the incumbrancing of a piece of land which remained in the possession of the debtor with an interest in kind paid to the creditor. The latter could never claim anything further, while the debtor and his heirs might redeem the land from this interest-incumbrance by paying back the purchase money.[191-7] As the Pope, on the 19th of January, 1569, renewed, in express terms, the prohibition of all interest not based on rent-purchase, so did the police ordinances of the Empire, of the sixteenth century, declare it to be the only lawful form of loaning at interest; provided, always, that only the debtor could demand the cancellation of the contract.[191-8] We find, however, that, on the whole, at least Protestant countries had, before 1654, adopted the modern Roman law relating to interest.[191-9] [191-10]