Usury Part 1

Usury.

by Calvin Elliott.

TO MY READERS.

I beg the sincere and thoughtful consideration of this book by all its readers. Please follow the argument in the order in which it is presented. This is the way it developed in my own mind and led me, step by step, irresistibly to its conclusions. Do not read the closing chapters first, but begin with the "_Definition_." I believe every candid reader doing this, and having a logical mind, will fully and heartily concur in the condemnation of usury.

I hope these arguments will be fairly treated and justly weighed even by those whose interests seem in conflict. I have simply sought the truth, believing that "the truth shall make you free." It cannot be that this or any truth is in real conflict with the highest welfare of any man.

If any sincere friends of this truth are grieved that the argument is so crudely and roughly stated, I can only say in excuse, that, so far as I know or can learn from the great librarians I have consulted, this is the first attempt ever made to fully present the anti-usury argument, and I sincerely hope that others, profiting by my effort, may be able to make it more effective.

THE AUTHOR.

CHAPTER I.

DEFINITION.

In the evolution of the English language, since the making of our King James version of the Bible, many new words have been introduced, and many old ones have changed their meanings.

In the nearly three hundred years the Saxon word "let," to hinder, has become obsolete. It was in common use and well understood when the version was made, but is now misleading. Thus we have in Isaiah 43:13: "I will work and who will let (hinder) it?" Paul declared that he purposed to go to Rome, "but was let (hindered) hitherto." Rom. 1:13.

Again we have in II Thess. 2:7: "Only he who now letteth (hindereth) will let (hinder), until he be taken out of the way."

"Wot," to know, has become obsolete. Gen. 21:26: "I wot (know) not who hath done this thing." Ex. 32:1: "As for this Moses, we wot (know) not what hath become of him." Acts 3:17: "I wot (know) that through ignorance ye did it."

"Prevent," from its derivation and use, meant, "to go before;" now it means to hinder. Ps. 59:10: "The G.o.d of my mercies shall prevent (go before) me." Ps. 92:2: "Let us prevent (go before) his face with thanksgiving." I Thess. 4:15: "We who are alive shall not prevent (go before) them who are asleep."

Charity, which now means liberality to the poor, and a disposition to judge others kindly and favorably, was at that time a synonym of love, and used interchangeably with love in the translations of the Greek.

This is especially noted in the panegyric of love, in the thirteenth chapter of First Corinthians, and faithfully corrected in the Revised Version, though some have felt that the beauty and especially the euphony of the familiar pa.s.sage has been marred. But the word charity is no longer equivalent to love, in our language, and could not be retained without perverting the sense.

Usury, when the version was made, meant any premium for a loan of money, or increase taken for a loan of any kind of property.

Theological Dictionary: "Usury, the gain taken for a loan of money or wares." "The gain of anything above the princ.i.p.al, or that which was lent, exacted only in consideration of the loan, whether it be in money, corn, wares or the like."

Bible Encyclopedia: "Usury, a premium received for a sum of money over and above the princ.i.p.al."

Schaff-Herzog: "Usury, originally, any increase on any loan."

This was the usage of the word usury by the great masters of the English language, like Shakespeare and Bacon, in their day, and is still given as the first definition by the lexicographers of the present.

Webster, 1890 edition: "Usury, 1. A premium or increase paid or stipulated to be paid for a loan, as for money; interest. 2. The practice of taking interest. 3. Law. Interest in excess of a legal rate charged to a borrower for the use of money."

Interest is comparatively a new word in the language meaning also a premium for a loan of money. It first appeared in the fourteenth century, as a subst.i.tute for usury, in the first law ever enacted by a Christian nation that permitted the taking of a premium for any loan.

The word usury was very odious to the Christian mind and conscience.

Interest was at the first a legal term, used in law only, and it has always been applied to that premium or measure of increase that is permitted or made legal by civil law.

In modern usage usury is limited in its meaning to that measure of increase prohibited by the civil law. Thus the two words interest and usury now express what was formerly expressed by the one word usury alone. Interest covers that measure of increase that is authorized in different countries, while usury, with all the odium that has been attached to it for ages, is limited to that measure of increase that for public welfare is forbidden by the laws of a state.

The distinction is wholly civic and legal. That may be usury in one state which is only interest in another. The legal rates greatly vary and are changed from time to time in the states themselves. If a state should forbid the taking of any increase on loans, then all increase would be usury, and there could be no interest; or if a state should repeal all laws limiting the exactions of increase, then there would be no usury in that state. Usury is increase forbidden by civil law. Separated from the enacted statutes of a state the distinction disappears. There is no moral nor is there an economic difference.

Blackstone says: "When money is lent on a contract to receive not only the princ.i.p.al sum again, but also an increase by way of compensation for the use, the increase is called interest by those who think it lawful, and usury by those who do not."

The moral nature of an act does not depend on the enacted statutes of human legislators, and the laws of economics are eternal. We must not permit our views of divine and economic truth to be perverted by this modern division of increase into legal and illegal. In order that the whole truth may be now expressed in our language we must combine with the old word usury the new word interest; then only will we have the full force of the revealed truth. "Wherefore then gavest not thou my money into the bank, that at my coming I might have required mine own with usury or interest?" It is rendered interest in the Revised Version.

Throughout this discussion usury is used in its full old cla.s.sical meaning for any increase of a loan, great or small, whether authorized or forbidden by the civil state.

CHAPTER II.

THE LAW BY MOSES.

G.o.d determined to deliver his enslaved people from the bondage in Egypt, and to lead them out to the land he had promised to their fathers. They had been strangers in Egypt; now they should have a land of their own. To them liberty was but a tradition; they should now be freemen. They had been a tribe; they should now be a nation.

G.o.d raised up Moses to be his special servant and the mouthpiece to declare his will. He ordered his marvelous deliverance from the river, and his training in court as a freeman. He then gave him direction to lead his people out of their slavery, and also divine authority to announce to his people the code of laws by which they were to be governed in their free state. Some of these laws were ceremonial, to conserve their religion, that they might not forget their G.o.d. Some were civil and politic, to promote the moral, intellectual and material welfare. All were in accord with the moral and religious nature of man, and with sound economic principles. All were suited to promote their highest good, and to secure them forever in their freedom and national independence.

The great basal principles of law are found in concrete form.

Human life is sacred as we find from the explicit laws for its protection. The owner of an ox was made responsible for the life taken by "an ox that was known to push with its horns."

A battlement or bal.u.s.trade was required on the houses, very like our laws requiring fire escapes. The principle is the same.

The laws forbidding marriage within certain degrees of kinship have been copied into the laws of every civilized people. The laws for the preservation of social purity have never been surpa.s.sed.

The rights of property were sacred. Each had a right to his own. Theft was severely punished. "If a thief be found breaking up, and be smitten that he die, there shall no blood be shed for him."

Each must a.s.sist in the protection of the property of others; even the enemy's property must be protected. "If thou meet thine enemy's ox or his a.s.s going astray, thou shalt surely bring it back to him again."

The laws for the relief of the poor were kinder and more encouraging to self-help and self-reliance than our modern poorhouses. Deut.

15:7-11: "If there be among you a poor man of one of thy brethren within any of thy gates in thy land which the Lord thy G.o.d giveth thee, thou shalt not harden thine heart, nor shut thine hand from thy poor brother; but thou shalt open thine hand wide unto him, and shalt surely lend him sufficient for his need, in that which he wanteth.

Beware that there be not a thought in thy wicked heart, saying, The seventh year, the year of release, is at hand; and thine eye be evil against thy poor brother, and thou givest him naught, and he cry unto the Lord against thee, and it be sin unto thee. Thou shalt surely give him, and thine heart shall not be grieved when thou givest unto him: because that for this thing the Lord thy G.o.d shall bless thee in all thy works, and in all that thou puttest thine hand unto. For the poor shall never cease out of the land; therefore I command thee, saying, Thou shalt open thine hand wide unto thy brother, to thy poor, and to thy needy, in thy land."

These divinely given laws never wrought injustice. They protected life, purity and property, and required mutual helpfulness. They were given by the divine mind, in infinite love, to promote the highest good of this chosen people.

These laws of G.o.d, given by Moses, positively forbade usury or interest, and this prohibition was so repeated that there was no mistaking the meaning. Ex. 22:25: "If thou lend money to any of my people that is poor by thee, thou shalt not be to him as a usurer, neither shalt thou lay upon him usury."

This law is more fully presented in Lev. 25:35, 36, 37: "And if thy brother be waxen poor, and fallen into decay with thee, then thou shalt relieve him; yea, though he be a stranger, or a sojourner; that he may live with thee. Take thou no usury of him, or increase; but fear thy G.o.d; that thy brother may live with thee. Thou shalt not give him thy money upon usury, or lend him thy victuals for increase."

Prof. George Bush makes the following note upon this pa.s.sage: "The original term '_Neshek_' comes from the verb '_Nashak_' (to bite), mostly applied to the bite of a serpent; and probably signifies biting usury, so called perhaps because it resembled the bite of a serpent; for as this is often so small as to be scarcely perceptible at first, yet the venom soon spreads and diffuses itself till it reaches the vitals, so the increase of usury, which at first is not perceived, at length grows so much as to devour a man's substance."

An effort is sometimes made to limit the application of these laws by placing special emphasis on the poverty of the borrowers and to confine the prohibition of usury to loans to the poor to meet the necessaries of life; and it is claimed that the laws are not intended to prohibit usury on a loan which the borrower secures as capital for a business.