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.
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