Of Usury

MANY have made witty invectives against

usury.  They say that it is a pity, the devil

should have God's part, which is the tithe.  That the

usurer is the greatest Sabbath-breaker, because his

plough goeth every Sunday.  That the usurer is the

drone, that Virgil speaketh of;
 
 
 
 

Ignavum fucos pecus a praesepibus arcent.
 
 

That the usurer breaketh the first law, that was

made for mankind after the fall, which was, in

sudore vultus tui comedes panem tuum; not, in

sudore vultus alieni.  That usurers should have

orange-tawny bonnets, because they do judaize.

That it is against nature for money to beget money;

and the like.  I say this only, that usury is a conces-

sum propter duritiem cordis; for since there must

be borrowing and lending, and men are so hard

of heart, as they will not lend freely, usury must

be permitted.  Some others, have made suspicious

and cunning propositions of banks, discovery of

men's estates, and other inventions.  But few have

spoken of usury usefully.  It is good to set before us,

the incommodities and commodities of usury, that

the good, may be either weighed out or culled out;

and warily to provide, that while we make forth

to that which is better, we meet not with that

which is worse.
 
 

The discommodities of usury are, First, that it

makes fewer merchants.  For were it not for this

lazy trade of usury, money would not he still, but

would in great part be employed upon merchan-

dizing; which is the vena porta of wealth in a state.

The second, that it makes poor merchants.  For, as

a farmer cannot husband his ground so well, if he

sit at a great rent; so the merchant cannot drive

his trade so well, if he sit at great usury.  The third

is incident to the other two; and that is the decay of

customs of kings or states, which ebb or flow, with

merchandizing.  The fourth, that it bringeth the

treasure of a realm, or state, into a few hands.  For

the usurer being at certainties, and others at uncer-

tainties, at the end of the game, most of the money

will be in the box; and ever a state flourisheth,

when wealth is more equally spread.  The fifth,

that it beats down the price of land; for the em-

ployment of money, is chiefly either merchandiz-

ing or purchasing; and usury waylays both.  The

sixth, that it doth dull and damp all industries, im-

provements, and new inventions, wherein money

would be stirring, if it were not for this slug.  The

last, that it is the canker and ruin of many men's

estates; which, in process of time, breeds a public

poverty.
 
 

On the other side, the commodities of usury are,

first, that howsoever usury in some respect hinder-

eth merchandizing, yet in some other it advanceth

it; for it is certain that the greatest part of trade is

driven by young merchants, upon borrowing at

interest; so as if the usurer either call in, or keep

back, his money, there will ensue, presently, a

great stand of trade.  The second is, that were it not

for this easy borrowing upon interest, men's neces-

sities would draw upon them a most sudden un-

doing; in that they would be forced to sell their

means (be it lands or goods) far under foot; and so,

whereas usury doth but gnaw upon them, bad

markets would swallow them quite up.  As for

mortgaging or pawning, it will little mend the

matter: for either men will not take pawns with-

out use; or if they do, they will look precisely for

the forfeiture.  I remember a cruel moneyed man

in the country, that would say, The devil take this

usury, it keeps us from forfeitures, of mortgages

and bonds.  The third and last is, that it is a vanity

to conceive, that there would be ordinary borrow-

ing without profit; and it is impossible to conceive,

the number of inconveniences that will ensue, if

borrowing be cramped.  Therefore to speak of the

abolishing of usury is idle.  All states have ever had

it, in one kind or rate, or other.  So as that opinion

must be sent to Utopia.
 
 

To speak now of the reformation, and reigle-

ment, of usury; how the discommodities of it may

be best avoided, and the commodities retained.  It

appears, by the balance of commodities and dis-

commodities of usury, two things are to be recon-

ciled.  The one, that the tooth of usury be grinded,

that it bite not too much; the other, that there be

left open a means, to invite moneyed men to lend

to the merchants, for the continuing and quicken-

ing of trade.  This cannot be done, except you intro-

duce two several sorts of usury, a less and a greater.

For if you reduce usury to one low rate, it will ease

the common borrower, but the merchant will be

to seek for money.  And it is to be noted, that the

trade of merchandize, being the most lucrative,

may bear usury at a good rate; other contracts

not so.
 
 

To serve both intentions, the way would be

briefly thus.  That there be two rates of usury:

the one free, and general for all; the other under

license only, to certain persons, and in certain

places of merchandizing.  First, therefore, let usury

in general, be reduced to five in the hundred; and

let that rate be proclaimed, to be free and current;

and let the state shut itself out, to take any penalty

for the same.  This will preserve borrowing, from

any general stop or dryness.  This will ease infinite

borrowers in the country.  This will, in good part,

raise the price of land, because land purchased

at sixteen years' purchase will yield six in the

hundred, and somewhat more; whereas this rate

of interest, yields but five.  This by like reason

will encourage, and edge, industrious and profit-

able improvements; because many will rather

venture in that kind, than take five in the hun-

dred, especially having been used to greater profit.

Secondly, let there be certain persons licensed,

to lend to known merchants, upon usury at a

higher rate; and let it be with the cautions fol-

lowing.  Let the rate be, even with the merchant

himself, somewhat more easy than that he used

formerly to pay; for by that means, all bor-

rowers, shall have some ease by this reformation,

be he merchant, or whosoever.  Let it be no

bank or common stock, but every man be master

of his own money.  Not that I altogether mis-

like banks, but they will hardly be brooked, in

regard of certain suspicions.  Let the state be

answered some small matter for the license, and

the rest left to the lender; for if the abatement be

but small, it will no whit discourage the lender.

For he, for example, that took before ten or nine in

the hundred, will sooner descend to eight in the

hundred than give over his trade of usury, and go

from certain gains, to gains of hazard.  Let these

licensed lenders be in number indefinite, but re-

strained to certain principal cities and towns of

merchandizing; for then they will be hardly able

to color other men's moneys in the country: so as

the license of nine will not suck away the current

rate of five; for no man will send his moneys far

off, nor put them into unknown hands.
 
 

If it be objected that this doth in a sort authorize

usury, which before, was in some places but per-

missive; the answer is, that it is better to mitigate

usury, by declaration, than to suffer it to rage, by

connivance.