CHORe!.! DOOTRnlB MID TIiE PROBLEM C}~ USURY

By

RO:JERl' J . SOmmER!

A 'l'hesh sub.t'l.i.t'-ted to the Faoulty 0 1' the Oraduntc School. lllrqueth,", Uni ..

'V'er:Sity~ i n Pe.rtinl Fulfillment of the neauiromonts f or the Degree

tel' of Arts . .

MII.r:.ADr.EE " WI SCotJSl l1

June . 1945

'1:ab10 of Contents

Chapter I Introduction to the P!"oblem • .,. • .••• , .. _ .. ... .. ~ . " .. . ,. ).

Chnptar II 1:Ilstor;r of the Pl'ob lot'l •• • • ' ..... ... . . .. .... . ... .. .,. l,;

A. ,. IT: So.OT'cd Soripturo D. In po.Co.n thouGht and ~noi.Qnt lo;lli C. In tho F'lithcrs of' the Church D., Aft or tho }'at -he,r£

C.l'>.Aptor. I I! ChUl"ch L'octri11Q on UcUl7 .......... 0-4' ... . ...... .. 19

CMi''tcr IV 'tho t)blOI:l orA the Sol utions Pr'opoaed •• " .... .. .. ''* ..... .. .. ;45

• The Diffioulty Die "Tir.e-vo.lu() II theor y c. fl~rk()t Value" theor y D. "Abstillewe" o.r:rl uSc Ell·¢ity '~ theor ies ~ .. "Sei"ViceJf theory F. J1Seoond User. theor y G,. ftLocatioU theory H. "Intention 11 theor~ I . "'l'olerntion tl and l~eoossi ty" theories J . nAbsolt .. te> ()"f;l1crahip rt theory K. "Ri sk title" theory L. "Productivity" and "'Virtual Produot1v1ty tl

theorio: • nproductlon "It; . COllnurapt1on l.oantl" theory

.' . "~1nsl(.: titles" thQor y O. "Civil Luw Title" theory p .. hCornbinatio:n tl theol'S

Chc.oter V. Conclusion .... .. ... ..... . ..... . . , • .•••••• , ••• • •. ,..' ... .. .... , •.•• 60 • A. Present any prQ.blOllis

B. Su.~goctod lm?r~venontz

Bibliogr aJ?hy ..... ...... .. .. .. !J •• \iIt •• ,~ • •• '. , • • ••••• :. _ • .••••• " • . ,r,e; .. . '._ , . .. i

1 .

Cho.i)tet' I - Introcuction to the Problon

The ? W'YODO of thio thoDiu is firot . to giv~ a cOl:1? leto presenta­

tion of official Churoh uoct.ll:1onta cO$.Ung with the queotion of usUl'yl

nnd seoondly. to proaont the probl e::tt o.riaing from these docUl'llGnts" tho

V!U'10US theories o:.t'fored to solve it ~ the refutation of Iso theorios .

lU1d tho formulation of' possiblo sol utions .

Ao more a ppropriute o.ppronch t o our subject oould be roMe than to

quote the v.ol'ds of Pope Bcnediot XIV" who \".Toto the fo.r.:ouo documont on

USW-J , flVi PerventtH• In this admirable troatise he scws:

... . we urce you to shut the door agninst the ailly talk of thoca who say thnt nO\'Jtidays tho disctWsion Qn uaury

s onl y €.I. quostion of name s , because whatover noney io tr!l.Doferred to' another . no mtter what the reAS'Ol'l . profit io recularl y tflkon for it . How fnlse thin is and hO':1 romote ~rOl:l t r uth wo clearl y see if "76 con.aidor thnt the ono oontraot is of an absolutely difforent na ture from tho other; end thnt there i.z likewise() a croat differonce in tho offeots of cn.:.op dlff0rcnt contracts . In ren,lity there is tho crlolU'oct diff'ey'.enoe bcbeen profit 1:;hich 11" rightly drntm from DOney nnd. therofore Cl'.n 00 rotui'nc.d both in oon:zoionc.:; oud in I nt1, and othor Ql'oflt; '1!iluch in Ul'Cl".m f rom money TJli'ong ly and therefore entail:: r ostitution hoth io CODSO ieooo nnd in Itm .. "2

A(;o.in ha I5IlYs' :

"Those who t.rlink their pm.or tlnd t'Jindom qualify them to give a.n opinion on these questions must keop fer from cxtremes . "hloh n~ nl'~mye wrong . For there are sone so strict in judGi ng these matt~rs that they dcnoUllce as UD­lo: .. d'ul and akill to nanry any profit T1hatcvGr drfl.Wn fran monoy . Others acam o.re so indul gont and easy t hat th"" t hink overy ttflin is c l ear f rom f,uil t of usm'y ,,, "S

L . Tl'.roughout this thesis ... 0 ui'led the \')ord in itt ancient a nd t,..adi­tional nonse of the return on the loan of Il i'tin;iblo thi~ 01' any nnoun ~ . ;lmtsoe"loJ" over and above tho prinoipal . this additional 5UIl1 clnl.med on tho bt'\,sis of the lonn Heelf in tho absenoe of any oxtri nsio titlo . fie use interohangeabl y thor,ordn lIueury'" o.nd "interest" . 2 . f-enei ger 1475f£'. ; trnnslntion of passage by Rov. J.B . i!.'olAuchlin. O. S • .!3 . in "Usury and Profit Atu'r!in{; " in.!!:2. Cl e r gy RoviC't'l". XII (1930) 206 . "' . Ibid . 214 .

2 •

. DSGpi to these ·n:.tti ng \'!Ords of tho Holy Father (\lr.Titten in 174{"(

"the silly talk" 1F'0'I'1 loud Or' alld loudQr until at tho becirv..ninc of tho

ni:oo'teonth centur".l V'6 hafu" C~tholic thoolof';.iulJS clnirlinc tw.t UOl.ll'V 1 il

not v;r onl.'; under My oircur.lCtancco , that i t to juetififl'bl 0 in itself'.

tlo find tho Ronan cQ.ncroG~tlons re't'.J..-ning tho c..l'W"i.crs Ilnon CODe inqui t-

nndoc fl to questions on the l."llttor of UGUl"Y. jl'inal1y ,. 1n the t'lOU oode

\i0 l1nve tho e:x~licl t per t')j. ssion to take the I GL;1l1 TC\te of intOl""Gst on

any loan whatsoever " I'IprovldQd t hi& is rIot excas.sivsu• 4-

'JiG $e'0 , t herefore . t he difficulty involved in the whol e quost1on ..

'fho nocusation i s re.ade t ha.t t he Church . nltl-..o~h olaiming infallibility

n ~tto1's of faith and morals. condeoned usury because of f all noious

arc.I.lt1eIlts whioh phHosophEll'S and theolot;1ans r aieed against it; t hen

!'tor centu.rlas i>..nd passod .. tho Church finally adt:1i ttsd error. o.nd per-

ttodthe taking of' tU:lUF:V .

ThG question i~ t hus esentod e. G popular objection in the fatJ.Oue

'~lGstiOIl 'Box" of FGthm!" Con\7a~.r:

tfrrCtVO not allyunt ntorest

:'hnt .shG

tho Bible, tho earl y Fathers . end yom' Church goner-1 tho most l'eCEi}n't tim()3 cond()~ed the t nlklnc of

s unjUDt and immorcl 1 i'thy doen sbe Collar! toan' OondOl"'..Jlod 115 i'.lc sin i n the pG :Jt iflS

Tho noed for invostig;ntion of the oblellk o.fucur~· iastroGsea by

"OIlle modern .... 1'i ters f'ron whom m? guote a s fo11ooo:

Many violel~t disctUlSions over the probl em have taken plaoe and even today the quelltion offGrs di fflcultio:; vhich have

ot been entirely solvod . fI .If •••• 1 tis obvious th1l't the wholo quoetion of interest arId

_ ... Codex luris Canonio:l.s .• <.: . 1543 .. 5 . Eertrand R. CGm.,ny. Tho Question Box (11 .1 . 1929) 429. - ,

rofits needo oareful consider ation and .cO~ :Il100sure, of reform. :'6

30nvenisti is partiouln.rly vohement ill hi .s utterunees~

I' ... Christian moral ista , l1h o should have ::-.a.d.e it t h.eil' business to exru:Jine o'v'@r y inoh of the f1eld of modern !'itlQoo1nl method , who shoul d havo been fictive in atress in", the necessity of tl:w.t gr ant oounteraot icg pl'inoiple of justice. ,\,lhioh PortiGt symbolizes . being hel d in pcr;>etua. l r oa.dinass to operat e . htave ignored t he huge problem of

orl d debt . (mo treated the whol e qU9stion ne though it "'rere a sort of portont f'o.r one mn to l and anothel' a hundred pounds . M

"$0 littl e indeed hun t-he whol e oatter beGD $::t?lored and clarifiod , that :it is possibl o , nay , almost ur.:.i 'li"Orntll. f 'o1' t hoca uho profane a 11 or, i ancc to tho Cutholio Ohu1'ol1 t o full into a most ztupl rlo.nQ elolOOntc.ry con,.4"ugion on this mattor .... Us

ItThere is t;round tor '\1onde r (I aperur r I hopo , with duo hwulity) at e noticoo.bl e lack of inotruotion . o.n t his Gubjoet of usur y d is:)l o.yed lr.i Cnthollo~ ofter. \;ellvor~cd :1n othor br C'.nchoc of the sooinl tGnchin;.::; of the Church.. Evon when t here 10 no lack, tho ~ttar is tronte(. o.cnaoui.,., oall y nne with dotuohrlent f rol!l tho {;l gantic r ooHtie::; of tho day ,. that OUU$& the moat preenine of qUOGtio~ neither to be tl.Il:E,wGrca ne~' nsked . u •• ' •• As ulnost evary individual in the moder n oivilized world in some dogree onrrioq on his life by meana of money lent for profit. and a s huGe odustr ios o..'tist 1n our midst Whoso bUDincGs i!l~;uoh

fitnhl0 lending. the question of usury is GUl"el~r tad one wbio.h conool'ns uc both as indi.viidoole and no Citizons in a. very opoc ial t:nrmer indeed . U

Denvonisti ' s oriticism of Cat holic moralists is not entirel~'

5 .

justifi.ed by the fncto . but that there is s ooe trut h i n hi:! stntemants

ie SOGn lnthe expr ess \'lisn of the Arohbishops and Bishops, of the

.r:.c,.i: .C. Mr.lin 1'd tha1: .:

"Furt her study shoul d bo c i'ven ••• to the .. hol e lntr'lqato problem of noney l1.~d cradi t so t hat such evils as exist

c . Evn J . Ros a Hnnt 10 _______ v~ ·

'7 . J . t . l'lenvan l::rfr.""Yho fniquitou& - 'C~'~. -- v 27. l •. Ibi d . 14 • • J . L. DOn'lnmist i . nCatholi<H~ c.nd Usury'· in _____ _

(lOSS) 199 :64 . :)

i n the pl°O('lGnt cysb;!1rrny be broue;ht to lightrmd euitubl o razaadico intr oduced . "1

10 .. Christ5.tu:i Attitudo on Soc io.l Pt'oblarao - u atntemGIlt iEmuod 'tv the Arohbisho?S and Bisbops of the N ~C .f •• C. I!.drnnistr ll:t1va n';a.rd and roleas.od on t<>ver.~bel" 28 , 1957 (Cf p llepr i nt Aotion , Decer.IDcr 1937)

.1 .,

~.

Chapt~r U ... , iut} !l'htor:l of the Probl«il

1'!\0 qllC£YtiO£ o£ u::ll.ll""',/ hen been thooecs'3;l:cn of' ::;ooh di ccu.enlo~

,6!ilO!lS l'!IcrA! 'tilzolog;lttno. e~.nmtlst<S .1' philo$o;,-herc , end OQCl1om1C"(::::; '

It is c. point o~ t1O!'LU cO'/,dwt ~hich hA:t ooen ttoA obj,(1et of ~;liV'il'.1¢

~d hUt"A..~ l ar.1clntion £'roo. tho tir.., of tho bool:l,'l of the Torah do\'Jr'

('.) OUl" Pl"OOcnt CUy .. St . 'I'l"~S su..i<l thet 1l1l civil life is ¢Ol:ocr ooo

ohiofly '\Jt"i.th wo thinr;s . ucury a,nd zr.tl:trl~t(ll)y. ~'he ph1l0~.o_·>ll'J1"C of'

pa~ ,entiqulty. tho Po-pG.$ lute the Fr.thol'a or tb0 Ct .Ul"Qh. C}I\Woh

CUur..ni16 . the medie-vul $cb:::Jla!ltl o5 , modo~ t h!nkers . all mtproeG If:.noir

conoern not.)ut tbe ~r.obl 1,twQilv~ . It hnS'o.l~'nY'$ en tl.[lu 10 today

c.

Sinoe 't'io aro oOlW~l·noo chiofly ~ith tho {..'htu-~h· G o1.'r101n1 1rtnta ...

moots on the quest-i.'" the proble"rA nrh f l'om ti4t)OO oooUl1.lonta f

11';0 ljhf.ll :t1ol"'ely pr~.o.el'lt ll. bl"1-ei" $ltotch of tho r:ofJol"tll hillt0%"11 Qf the

\)}'o'!llol':!. tllCn on Nxa ;?d(;:lUl philosopberz oflfot'o CiwiGt.

f ... illlT"gcd c'Y tho opi.nlcmt:l of tho Fat.~crc of the Chureb,. th,cu tho oaaieval

n1~or::l nr.a finnUy th<,;; hit/tory of tho !1l"oblon:. io O'Jr <ren ill'lo .

Ii .... tho Pt.tb~l·$ ;o, H all se~ to MVO thO'll:[;ht thAt uer.4r:t~an t'orbirldQr. by the nOl'! n.s \leU eo by the Old tntJ, tho oouna~1 of' th;a r;~ b~ing Coll nd'\1nnc~ on LlLeatill 07.int!n.;; obli.:otion of the Old.HAlo;t~or III tolls U:S: incidcnullYt thtl.t us~ is Cloooom:tWd in the ~OCl or both to~to.tWnt1S .. .,. I"

Uaur:"? io eonoo!!'JlOO mny timer, in tM PQ.tos or th.., Old 'Xccb.\.'7:Gtlt .

., c" .

1. Rev. Pn.tric]c Cl Tw.4:-s f ' hod • l:ah. 5 . 10-U:

5~7;

"'--k . is , 8- 9; t e01. .

'Tho nobro~ wna forbiddon to take uswy f rom I'l fellovt Uebren . but not

from the Gontiles . 'Broen 0tt:/0:

tl'l'ho T01"3.h did not fOl"bid us ur y becs;use of' any :llJtrinsi,c im­lr.'Orl:d ity. but solel y bcc.ausc its general appl1ea.tiol1 €U3Otlg

the Hebrew peopl e ,rould have confliQted 'Wi th the hig."> ethical e ix:m ... hioh God Qat up f or 0. polity which waG the type of heavon . "3 n1'he 1:ooaio Code ••• absolutely forbnde H: to be pr aoti ced on the poor • • t4 "It beoame v.'rong for the lsra.el­ito by the podtive c.Q1::.'rand of Cod . 'Io lend to a poor ron grntuitously io a l ;sI).YD a better dood than to loan to bi on usury . God mauo thi,a good dee d oblitl;at ory for ilia chose peopl e of thQ Old Le.t:r" ,. !i "The Jows wer e forbidden to accept intor ect from each other . beoause God wished thac: to do ea.ch othol' deeds of br otherly love .. " '3

C16&ry SllYO:

"It sooma l ikel y tbat 1.:oscs · l og;iGlation 011 usury is tbo ?l"od1..c'Ot ot a keen poroo?tlon of tho eco!:lonio evils 1:1h;iob had eprunc f rom tho pf'tl"tiO'~Ni of prof'oG!!iior:al uS1.WCr~ . thu:ft. ofCiJ¥ mora respoct 1'or tl~adi tionttl ser.ti~ntG b£~sed on fi111l.l oi ety. " 1

6 .

Clcilr¥ says tl'&t uNll'i'ty Ullll. not th~ oause of the Hobr .H"1 prohibition

of ueury. B but thnt Deut. 23 . 19 is to he upl&incd ~in1'l OD eoonom::lo

grounds . llesa.ys tOO.t GOI:'.i:l Catholio t heo1og1f.ul& oxplain the p&l·mission

of the fialJl"O\1 I n.w to take usury fron the G@ntiles by uppealint': to tho

Ilbsol ut e dominion of God .. Cloary of'i'erf3 the objoation tbnt this l egQl -

hes nn inj ustice .. St . IJlcl:lroGo. however , says :

>t.who Y{8.{l tho strtl.ll{;Gr ••• but ·~leoh - but tm enemy? Ta.ke U&Ul';{ from him whoco l'ifeyou rtay tlljro wi thO't;.-t sin.. The r i ght of <mginr; VJUr impl~s the ri ght of tnki.ng usury . "10

3. Dr ..- A. e ... Droan . Soc101o&i cnl Essays; (Jtoohest<'Jr' , n. Y. 1922) . II :409 . - .

4,. l:b1d .~ 40:,) .. G. 1bid., 425 . 6 . ·Dr ~-A • .2'. El"~n . EaF'...;Onizt:ld ExpositioI:.2! t ,h,e Foul' CosV_c1e.,

(U h.·trukQc . 19"27) HI~ revisod edition : 5 22 " .. (;l o.'1.1'Y. ·1 .

S . Ibi d •• 3 ,. 0 •. Ibid., 5 .

10 .. Ibid ., 20 •.

"lhilc the Ol d 1.0.\1 prohi hi t-cd m:ury bob~~Qen JO""" und J ot; . it per ;r.ittod it bon:oen J~ and Gontilo ••• 1l16

St . :'h.O:o!l3 oc.YG the i?or clssion 1'.'113 givon l:li3roly to , rovont a

8.

rOll tcrevil . 17

Clo~ry ' s conclusion t .o tho discussi on of USUl"'.l it:: tho Ol d 1'eotu-

l:;I6Ut is t h is;

I<&nce as tho rogulat.ions of the Torah t.1tly 'be oxpl a.llloo whether. :f':rom the sciauti f i o point of view. usury is just or unjust . it 10avon OO301voo tho questions to t.he intrin '" sio morality of' t he prtl.otice . 1'lS

Tur nitlg to the Naw Testru::!ont \"le find the following r ooorks by

DreaD i n TQ.ference to Luke 19, 11-29 :

un is 0. curious raot that iZl the pars.blG tho t:ing ~abuii.:cs tho wtckoo servant f or not having pl aoed 'the ~no.at inter­est c.t the bank. If tho o.ooeptlUlce of interest 1'Iere i ntrin­sica.lly ()"il ~ the illustration ooul d not 'be o!nf,l loyGd . How ooul d the servant be b l nmed f or not havi.cg Ciono ~ thi:q: it in evil to do ~

"'£h-e a.d of t he :lint; in t ho pc.rabl e r<:lpr nGoots tho net of' Cod, end hanco t ha j?£\l""tl.o l a demands thnt thin k1r~ dOl'll juetly. '!'hi& ie; of vvo i Eht llG,nin$t t hose nor~licta who havo tri ed to nnirltain t hat the t aki ng of' int<'trost iG e'Vi1 . 111

St. 'i'hoI:lP.s o.nsucrs thin objection by env! that \1.CUl'y IC('jreb; 1"0-

?rosonts tho spiritunl f r'uitG that God 02l:pecto f rom un nnd that tho

U\WUl'y,t profi ts us" llot God .. Breen ' s arg\'~ent 10 not 'oonelusi va .

no h.bsol f says :

"The bnnker. ~ .vioo to p1nco tho mina nt i nterent

l u . 17. 18 . 10. ::!o.

COtTriny,. 429 . S~~ Thcolo~ica 2; Cl eary, B.

.. q . 78 . t:\ . 1 . a.d 2 ; 1 . 2, q .l05 . a . 3 n,

Broon. Hnrmony .!!!. 523 . Sun".A 2 , 2 , q . 78 n . l . !ld . l .,

3 .

Fr .. Vormeerscb saVIH

" • .,. usury -was forbidded Q.JllOngst thoJ ews th.el!l.$ol VElS

6'\1en when extrinsiC' t itl es wer e pres:ent; but the ;,lro" hibiti.on \".:o.s notSQ a.bsol ute if there were question 01' n Gentile debtor . s inoe the bonds of charity wcro then l ess alone . "ll

Cl eary o~nts on Voz'rOOsrsch as f'o11ovos :

"!f thelJ. a. de£.encc is to be based on extrinsio titles it l:lurrt suppose that they ~re pre$e:n't i n awr y loan to stro.ngerc .. As tho loans were ll'Ade to f'orO i t;nel;, a . there VJould , gClWN.\11y, be a cartain dCUleer of lonin the pr inoip&l . Iill l.ti t his v;ould bo a. title to GlOl:rpotlcQtion; moroover . the fo1'oi£ n<:-:"6 TIere reall y trndoi's \n. th \~hioh ~)rcfit li1l.Ght be dru\"JD , 1Ul.d this taot would juotify Il

cltdm f or oO.17:I!?4lru:a.tion fOr 1·05s , .. if 1nstelld ", therG -:-iere n contt(l.ot of loan .. ttl

"The modern Rubbin Oily tbo. t at t hn t t ir.c tipr e y;ng no l Q,\'l o.mong.st the GentiloG uhioh prohfhitQd tho prnetioe of usury : o.rA it v>as OlUY oquito:bl o tha t the J O"'JS could be entitled to exa.ot uoury by 0. 'PQopl o who might exact it of them. In thin ''fay, by a s:rstem of tlO'tlpollsnt1otl t he JOt"lS wore seoured ngaiPGt impoverishment by the ment of us~.r. s.ino& t"flo.a.t was pai d i n usury by SOCLlS , was recover ed by otr..or !{1Gl!lhOl"S of the r aoe . !his Rabbinionl hypothesis suppa-SOG tbat usury is in.1ust .... 1l15

"The l afit mentiono(\$zpl e.natioll seeltS to of far tho t:13st oat ura! apology for the ~osaio l aw on the supPOsition the. t us ury is unjust " II

11 .. St}hi~lds Hose says:

n ••• usW'y f rom ott'angers wa.s permitted the Jews for the same reasons us d1vt>.l"cc - by rcnson of t he. M.rdness of their honrta . 1J15

Fn.thor uom~ S8yG~

~The Ol d Tostament oontiemned the taking Qf interest . or ""sury ~ o.s 0. ::noro oaOl] W..iC rog;ulo.tlon, sui too to. the ci r­Ctlmsto.ncGa of the t:tno. •• ,.,Thio lz <11001" frol:J. the Caot tha t

21 . Rev . Arthur Vermzer Dr usael s 1901),

1 2 . C1G-D.1"y., 6 . 1~ .• Ibid •• 7. 14 . l'uid •• 8 .•

y~.~~ _~~¥ ~ de Justitia ,

15 . U. rlohiolds IlODC, Tho Churohes ~ USW"'j. (WIldon 1008) , 21.

7.

o.nd the unf'ai th£ul . '061'VQntf sa.llega. tier. have no .t'<ol"nl eO\Jiltsr part., tlu

In t he parabl e of' ti!.O l.mjust ~tgWflrd the Lord eOI::uends tho unjust

stm'lnr o lnsQfnTas he had donG wisely. iihile the lord of this pur-able

Iso repr esents the Alr:ri.r.bt-.:r. still t hi ,s not is surely not to be taken

an rcpresenttlUve of tho cMl"tloo ter of' God ' s 8..ott.. Tho po.r ellelist;l 113

not to be drown in rebQtd to pnrt of t he pc.rahle. :rho ar f';t.I!tiEmt ill tbe

po.rablc of the unjust st~>wel'<1 is merely nn "al~f1lOer,tur.l n.c1 ho:mineo. "

CIQru-j· ollyn :

.1'1'}101'e l.tl. indSM a roferenco to usuz'y in the £)1U'{).'hlo 0 '"

tho tnl euto , but. £rt:Jm the eon'blxt it i s quito Gvidont thLl.t {,'h;riot hcs no intention of nnking a pronot!l1tre.me.nt on t..~o moro.lity ot:' arfY econor.dcal dOQtrinG .~ hO!iim:;ll utilisee tho pl"ow,*lling prnctices of the ROlJltln bn;nkQZ's to PO'i llt out a Mrctl on oooperation ~ith divine 0'Q.ee. I '22

There 1$ evon t:pr e eorrt:'ovQr sy r~vQlving about tho text of St .

Luke •. 6.,55 I "Lend hopinll: for n<>thing in return .• n

One writer " ~st%·orin1 •. c l aims the i;()xt doe&n't even rafer to

monoy, but meroly dndicntos universc.l benevol cnce. 2"

Breen snys :

In tho Sermotl on tho ltount the taldng of i!!tet~est is forbiddon, but this is' a oounsel of perfco'tion. u 24

21,. Breen,~ finr.m()ny III. 52.., . ~2 .. Cleary, 32 .. 2~ .. Cf . Cl~al"Y , 53 •. 24 .. :lruen, filrmony, .ill, 52: .

9 .,

Cl~ry snys :

t1Procent-clay OOl::l:lOllto,tors nnd theol ogians are nl1::ost uz;c:.nil::\l:)us in holaine thelt we are rccomanded to ro-10uncO 'Vrot was lent and not oorel y intel"Cst on the sano . rt25

10.

.'.I t . ?homus (lcye tlmt to the ll. lOll;

unihil iud@ oP-ol'1l.ntoG'1 1 fi precept! VB . :z

s a cotlllsol , out the pn:rt

F ~ Cleary ~o.yo ~. of the . atool's re{;arded it ns a OOUl1S13l .. '-

L<3h::kuh.l think$ thnt tho text . fit leas t '6 te.kQ it in conjuno-

tion with the teeohin~s of the I-"athers and tho ellUl"uh, it; to oorognrdod

as u. pruhioi t:l.on of u~ ..

'0 h&s itOOO t'eo.son to hol d this opinion. for we have b~aidcs tho

Gtn.tonent of Al exnr..del' III quoted above, the wordG 0'1:' Urban !Il, 'Who

appoals to. the text o.r Lake to justify e oondemnation of usury~28

'ope Bcmediot XV in his '*Do Synooo Dioeo.esennn pubUahed in 1748:

udoe larel! tll8t it is rash and near l y herationl to say thnt tho Popes and Councils t.ave not ar d.ved ut the t.rue sonse of the aforesaid textG: i t is certnin OO}~ CQubt that t.."lo Churoh onn.ooterr in interpret1r~ flol y lict'ipture and.

osentir..g its suns:;, to the fuithful . t120

t \70ul d tcko n special thesis eompletO'ly to ?Tec-ont and discuce

the probleJ) on thiG one text ..

1.fJtu ,an on to th~ teaohing$ of the ~al1 philosophers end o.l1oient

oi vil 1a .... 5 . The Code of' f~ura.bi petT.i ttsd tlle intQrost ollC'..reo . ," l.

., ,bylodans had a CQi;ll.':1:Ol'l rete O'f 40%. Sol on' s lawS (594 B .•. C ~ ) in tUloiont

.-.-.. - ,~----,--~-' -,_._-- --... ----~-•.. ~--~.---.

25 . Clenry. 34 . 26" S1.l1'nt'.n1t 2, 2"q . 78 u ",l , nd .4 2'1, .. Cleary. 35 . :26 . D. 403. 2n. Broon. Sooiol oeioG.l £sr.nys .!!.. 432 . cr . Cha.p .. 3. No . 31 of this

thesis . ' .

Gl'GeOO ope:vonte he dcd'u-ultiuL debtor f:'o;c boi nt; sol d into cln:vory,

canoelled debts . but did not abolish inter est:.. Plc.t:o 1"lOulu pro-hibit

l·eL-"O.yoont of an intol'olJ't .. bearL'lg Ie-A"'! . ::;O Aristotle oondQl:~ usury a~

t{most eontr l:'U7 to U(~ttWe .u31 Cicero condemned usury and quot:os Cuto

as pllloing it on 6. l ev-el with hoo1e.ide .32 Sonoofl enid th.!3 u($UJ'er was

selling ti.r.ce . 3Z PlutliU'Ch says of usurers that :

'they W'iko 0. InughinG- stook ••• of the scientists who en~ t ha.t not hine arines out of not bing; fOl' ttitil thou,o mon interest {u'ises out of that <'ihioh hue as yot no bei fl..t; or exiGtencc . "S4

11 .

The RO!lltlD dGbtor Inws 'Wore harsh (Cf . "Lriw of the 'l\¥el Ve Tables 1'1 450) .

TV?lcnl l ec0.1 interest \VflS reducod f r Ol!J. 12 or 10 ?ar- ocnt to :; per- cent

n 347 B.C. In 342 B.C. lerast waG f orbidden by tho Genooian

Justi1lie.n (G27- 565 ) .i'i:ted the i nterest rato nt 3£ •

flUis COOGl wont 0.0 far a s auy loge). coda had GonG to mitigato fhe ovil affeots of uoury ~ taking without abolishing it altogether . ~30

•

'the Gcnucian law '>'lUS not enf'oreed .. Julius Caol'!cu· institutod l"O'i'Cul

bankruptcy 10.-';8 .

Vie turn 110\1' to a consideration (}f the t (,)t\chl:n&e of tho FQthers 0

the Church ..

stotlc , Ilpolitics" ., bk. 1 i n Loeb C1o.ssicIll Libf&1',:'ljt ad ., by :1'. E. l'age. E .• Cappo . W. 8:. Rousa (London 1 952) . 51 • .

1. Plato Lnws. C. 11- 1S . 52. Ci oero , liDo Officiicr « II. , XXV in Loeb (London 1930) .• 26'1 ,,. 33 . Ba neon . nDo Benoi'ioiis" 1 . 7, <hlO i n "Ad LuoUi um f:piatula.9 lloral e s n

i n l~eb (London 1930) , III : ~1 9ff. 34. Plutarah. "De Vite.ndo Aere Aliano') in "Plutarch ' s I.1OTl'llia 'l. in Loeb

(London 1937) • .1. : 325. 35. Dl'oen. B. iS . II . 416 . 36 . Cl eary, 59.

•

Dr~on nays:

'tTho nbusos 01.' usury and t he UoontiOUf>lleStl produced. by woo,lth drew forth f rom the Fathers nnny fierce denuneiations of worldiness , but t here io nQt a ai~10 patristic o pini on whichaffi n',s thra injuatiQa or usury ... Opposed to ito -excesses justico roig"l-J.t be invoked, but cot against its csser:oo . <137

onway anys :

"The. cnrly Fathers never put .fol"\7!U'd any philosophical thoory on uS1JI'Y. 'they vie'Wa d the s-ntter s.olely f r Olll. a prMtioal sto.ndpoint. and bit terly dt;>nO'1,moeCl the Mn0!;" l.ender·c of their cay ns crool nnel heartl\}$s o?"xosf>Ors of the o()or . "S8

We find oorAemu:tion Q£ UGUl"Y i n the dao~~S9 j .m, . -IJ

App~lo.niU!l ) .

in Cl ag:nt of Ale:l.tIU,' 1 n 'Lertullin:n ,. 42 i n St. cY.l?l"ia~,:43a.nd in

Pope L~o .44

'''ViHh tho exception of wry vugue Sblt:CW0.11tg by Cyppj~ Cl amant or Al~~drin . we found no ~ttcmpt t o stato tlw nature of th,e rosulting oblir;tl.t.ion " t ha.t is to l:)n.y ~:e cronot tol d 't'lnother tho.l' e is an obligation of ohedienoe., of justioe or of oharity.t'4,5

37. Breon. SoolQlo!Sioal Essays 1!, 415. 38 . Conway " 42v. .. .'. 39. Chap. I , Referenoe from Claary , 39. ~O'. In Euseblus , uDiatorin Eccl esinstica It .. lib . V,. cap. 18 i n

n .

42 .

'.the !lioe.ne and Post- Nieene Fathers ~ .. by Philip Sobaff ( r:S . 1892 ) "Vol. I of ser ies lI. 236 . Glc.oent of' Al~nnd.ril.l .. lfStronnta. rt~ bk .. II, cap. 18 i n The Antc- !:lieeno Fatho1"G ad . by Rev. Ale~ander noberts nod Jo.ma6, l)()nal d sotl , ~icMed . ravilled by A. C. CQjtG ( H. Y. 1903) .. II : 366. Tortull1an, "Adv . lilat·.Qien'l . bk. IV. oh . 17 in Anto-17,. F_, III :372 .. 374 .

'1~ ,. 'Y';ria.r' t nJ)o Papsis11 ~, eap .. Vl in A. N.F ,., V:4SB • • i.ti r;ne . Patron ~ •• vol. 187. c . 959 .

:5 . Cleory .. 49 ,.

1 .. .

1.3 .

In the next. patristic poriod 'We find ()ondeMatioll$ of usur J in

tit .. !lil~ in St . Gregory of ryasa. 47 ttnd in St . AnbroG~ . 413 St: .

Gr'egory of I;ys:.m. tmd St . Daeil definite l y teach tho unproduotivoncus

of mOIl!a:,' UD (1 philosophionl basin f or tho dootrine of the intI"int)ia 10-

F . ' fl O justioe of Ut1ury.. urthot" {'londO)SIDations lU'" fou.'1.d in St .. F.il c.l"IJ . "'"

i n St . Jeromo., 5010 St . Ausuotiot3 , 51 (who GUVS he \Jould m"der r{'!stitution

".f the In1v di d not sanotion USUl"Y) a and in St . JQbo Clr,{sostom. 52

Clee.~·;y says som.e llnthert'! were Jj.,ore lenient5S Clll<i quotes Si doniup'

Appolinnris nnd Grognr y o.f Tours in support of t hisstater;ent .

The oonclusion t hat Cl eary drttYis from t hin r eS'UUlia of the teaoMngs

of' the Fathers. on the question is as f ollO'Vlls:

<lpr om all ;;f..a.t has bt"r0o said it will app.enr that whUst Patr istio opinion is very pl'onounced in OOndSlt1l1i!\.e; uuu.ry. still t.he oondemnation io la.unohed against it mora be­Cfl.lt,se of its oppresflivO"ness than for its intrinsio in .... j ustice ,, "55

nOt keen philosophioa l e.:r.a.lysis consequontly there is none . nSe

46,., Rnsil, "fum.. on Fe . 14 11 i Rsfer-enoo i":rom Cl eary. 1;) .

t17 . Gregory of TIysan , }'Contra USUI"lu'ios" in 1:'i£oe , P . O, vol . 25 , 01 . 5S4- M2 . -

48 . Ambr (}csc, uDa Tobif~II ,; .in?!lgno , ~. t. vol . 14 .• 0 0 1 . 769- 794 . 4.9 .. flilary., 111)/,. XIVJ~ .. in l.:igne. P .L. vol . !) , c ol . S07. Refer-

sooa f l'om Cl eary, 56 .. -OO. JGl'OOle it; )ligna .. F . L., vol .. 25 , col . 178 . 51 .. Cl eary, 56 . -52 . John ChrysostOlll i n j;i~ne. l),. G •• vol •. 51 , Gol . 61, 62. Ref'e'l"-

e110e f rom Cloory, 56 .. -53 01 Cloary , 56 .. 54 . Bre&n gives the 8ubstalloe of' t hese writings (S..E ", II . 415) til th

source·.$' as the 24th let:ter of Sidonius Appolinaris nun Greg. Tur . Hist . Fr anc .. III 34 ..

55 . Cl co.ry , 57. 56 . Ibid •. , 58 .. ---

flOr! the 'VIholc thon ' 1C find th0 toachini::s ·of t be F'G.thers <U'ud.6 and undeveloped , but the ooturnl pl"odtrot 0.1' the time ..... '1110 a.Ce of oorororoial entol'p1'ise l'.tto n.ot yet begun t o d .8.VI1l ., Some. i'C.~ deed , Md 1:loney. but the maj ority hud not - nad Gl.'<lh f:Joney as the la.tter could QO (\uir a Y.'aa desti.ned to neet pr ess inc Modo . To. o ... ek u return fren those r .ight in oertuin cireul:lctnooos be juot ; it \<o.uh' seldom be equitnbll3, nod vorl' rt.r ely in aooordru:::oE> with true Chrietian ohnri~y. "57

Soma of Cle!:!r y ' s cOl1clunionB en tho tCfl.chinf,fl (}i' the Futhcr r

seCirl to. be GuastioXlnble, but it is oot within the $(lope of ow' t hesis

14.

to dioCUGll this muttor . It Qufficetl to. Gay thllt nothing in nboolutely

clenr f r om the Fa.thol'S ; 1'Je ape basing OUl~ argumonts .. thersrol'o " solely

on Churoh dooumonts.

1'.13 r apidly survey thE> history of the pr obl cz:; nftar the times of

the Ptlt her s befor e \l.l() pre:s~nt in det ail the Church doo~n:t£ dealilll.;

'ith the quoatio ....

Church atJrl state \;!ere olosel y UXli ted o.t the tir.:o of Cl'Jtf'lemaOle.

(d .. 814)'I'ho oivil 10.w" therefor e . also began to inolude pl"oMbitions

of usury . During tho next tt~O 1:undred y OIU'G or eo no find little his -

orlecl .trAterial OD tht) quostion. In thooloventh oentury is beO-ID a

no", historicul PGI'iO<i for Europe . eo'losi astioal condcnrations of usw

becun with the Second latol'un Couneil . 'tbe Ma&nP; Chnrtn 0011tninod !'oGu-

Intionc cn the ;:>r fictice . Tho Jewe 7401'0 he ted thrcUEhout Euro?o becnuce

of thoi r uauries . St . Thomas and Scotus wrote i n oefollt)() of t.he doc -

trine of the intr insi c itduntio0 of usury. After thei!" day it wns takeh

for granted .•

t; 'l . Ibid •• 59 .

15 .

The teachings on e.xtrinsio t itl es to int<::lr est (1 ... 0 . tlluortnn

OQse.a.ns1'f , cinr.mU!ll omor gens" . eto .• ) bagan t\. gradual dovelo;>ment . Ashloy

in his hintory gives us sone incicht intO' tno rOll.S0no for this cradual

eoot1"inal progroso ..

"ITo>:! spcnkitl{; tencrul1y ~ :i. t ltiAy be snit! thnt dwinn the poriod f'r01!). tho eleventh to the fourteenth century. there WG.$ but n very s.t"'.all fiel d for the invcstmnt .0

<lnpi t1l.1 .... In tho trndine;; oentr eo thor e l~ere indooo curIng the later part of the per iod , oacanione l opportunities for a :roan to take part in U QOl:l.,"lGre-iAl venture .. ar.d n obGtncl o ",us ?Ut by the Church or publio opinior. to 0.

ll!&U"S investing his money in thi ::l t<a y . when no dof'inite intGlr eut -eas stinulated for /I but he beaAtne n o<ma ride partner in the risk Q.S lfflll a s· the ga in . ftSa - -

Suoh. opportunitie$ "'61'9 ver y rare at f irst ; gr udually th~y beoame

:more numerous... Cir cur-.atnnoes chm.'lfC,ed , the· dootrine developed ~ but tile

basic pr incipl es rer.1rtined ... Because o-f ex.t ·r insic titles» Gays Clelll"Y :

"Tho upshot of all this wa.s t hat during; tho period \'Juon popos end {JotmselG and theolos ir.ns ,ver e conde:;:ni.ng usury as unjust , the lender coul d i n certain r ecognl%od ciremr.stano6s take a roturn f'Or his money. "59

In the fourteenth century the prohibition of' usury 5 enfo.1'"ced in

0.11 the ceoulur ClOU:rt2 . hahie;,' olaims the prohibition aid not hindor

CO.t'll7:()rnial life and prot:t'-alJc . tlO T110 English P(l.rl1a.mGnt ovon oompl ained

Of tho l sxity of the Church oourtn i these coul d not

'cov to oone.omn c ertain Il€)GotlatioJln lUi usury . (;1

--~----------------------------------------~--~----~---'~-58 . \~ . J . AsblGy " AI) Introduotio

Ti'lOOry w (London 18013 ) " Hi5 . 59 .• Cl eary. 100 . 60 ., Ashl ey .. 157 . (n . Cl eary. 104 .

,:!:£. --r.r-- -'·~ .----......,.-

16 .

The "r,bntos Pictotis" r,.row up during the ?:iddl$ A[es .. ihl!.'ls wero

lont to tho needy at the l'ti.to of' intar ezt r:eceso.o.rv to COVQr the elt-

pon$eo of tho i06tituticm.. Oppoei ti-on arose fron rir.oriot:to tbeolo­

g1nruJ ond froD Jo\,ish ('.nd Lombard hanli;era but finally the Chl.u-ch of-

ic i 0.1 ly put upon the uE<>ntee" the sttltip of: u pproval .

nenM'ive D' ut the t.il:!e of the Protastn.nt Reiormo.t:1.o.<:t. Th

noteetant l ender s dirGotly defendod usury as a j'UGtifiahle practice .•

Bohm - Duwerk says. Zv:inglo, Luther . nnd t.:elnnohton 'Vore Cuidod t".orel

by expodier.oy, not by principl os in f.nvor .iog t he pr nctice of usury.62

'~Calvin a:od t.oUnaous were the fi rst to brook definitely t1ith the ol d traditioDS , tl65

Do1'1o - flaw-ar k S\Un:) up the period from Calvin on by sayi,ng thnt som.e;

il ... cClI'l1!l':.enced to "rite in oppo.si tion to the canon dootrine basill£ their oppoel tion on principles . TbismovotOOnt bo­'oomes observable abou-t the nddd10 of the sixteonth century" ~thers impetus Wld power in the oourse o:r the t.l'cventoonth" a.nd to~ards its arid obtt:.i ns so distinct nn an~ondancy tbut during the rnn.t hundroa yaare it has only to do ba.ttle 71th Il. few isolatod m-i tel's yAlo still ropl"esont tho ca.no: doctrioo . lmd to\,aruD the onder the eighteentb ccntuFt if nnyone haii profe~{)od to defond thD.t doctr ir:c mth tho 01 ,001£io !l.l' g t.'mOntR , !to 'Would helve been thou~t too eooentric

t o 00 tnkcll soriouoly ."64

A feu \'11"1 to.re i n tho fiixtoent.~ e~:rw:ry a.r fluod fltvor bf inter-oot

on tlOOnomo ourAe . 65

63.) 64. {is ..

.ns. by r:i:n. Ssar t

Mil espeoially Be·sold .

-u wu~~ Biztop:

17.

Intcr erlt \'Uta defended by Claudius Sal ma.sius in the GovooteGnt~

contury e.s being in accord ~ith both the natural and divlno lot;.. His

':Jl'iting;$ :

fl • • • detOl·'r,i~ the direction and 6ubatenoe of t th~ory of inter oot .for T:'.or6 U'l!ill u hundred yours • •.• • "sa

nl:ot till tn.o end or tho .sovonteonth oont-ur connection of the logitizloy of inter es establishod in theory. The sooossion 01'1$001:. pr od:nont WHl as Pufendori' and Leilm,itz to the new doctrine lw.n­tenon its victory» und in the OOUl'SO of the eighteenth oentury it is at las.t gradually t-nken out of th.o r egion 'of oontrove.rsy. tl6 7

In Fraooe we hevo str iot VJri tel's ovon l ater in the eighteenth

eontury. 68

fflJ':e look on 1'urgot t g oontro~r.$y with Pothier as tl':e el.osiIlt1 Qet of the threo hundred year s ' war whioh jurisprudenco t".nd polit icnl OOOtlOll'.y had waged o.r;ninst tho ol d olLttlon dootrine of interest .. li.ftel' Turgot th(l doctrine disuppenred f rom the .spher e of political eoon­omy . l'i ithin the sphere of theol oQ" it dr asgcd out a kind of lifE> far Gome t':umty years l riur;er , till , finally in our ~entu..,. thio n.lao ended . When the llo1lJ$,Il Pani t0l1-

ti(:ry pronounc~d the tnking Qf iuter ect to be 1l11ot::-ablc, even tdthout any peculiar title, the Chu..-Qh itself r.as oonfirmed the dei'ant of ito erst-uhile uoctli~l-Ilo . fle9

!hie lact :;cmtenoe • ..e leave e.s it stunds until WQ c;:;w:1csr tho ac-

cusntiQn agaioot ttl'! Church l ntol' in tho thed$ .. !to::tpl'o~~s the Q.?-

c.n~ of l"cveroe of uootl'ino whicb m-ito:ra un!'cwrablo to the Ch~lrch

G.l'e only toe oot$r to AeO~?t as true ...

S~kine of the liri rere who .fought the Churoh t<Jc.eLinrs Sl nte-rsllys

thnt tho

ltoousenSllS or opiluon wr.-ong the wisest nnd best men who han OV0T lived ~1l.S quite suffioient to {",I'tlte on

66 . Boh:n - no.werk;~S!f; 67 ,. Ibid •• 41 . 63 . Pothiorand Hirabaau 69 . oohm - .fh1'l'erk , 57 .

lB .

the liOor al ;mind .. Tho vary f'e..c t t hat t}l(;} coot,r inG 't1aS old , tl"adltiontll . c.nd ullivcrse.l1~r llooo? tod . mude it f'e pugno.nt . to tho liberal oreed ~ <170

In ooncluding thio ~mQtion on the general history- of t.':lo probl am

we .tllUst say n word about the 'I::i tIe of o1vU l aw .•

From s t . Thomr:w to Collet har d l y any Cutholic thoologiltm defended

t hiG title us suffioient .. Unny rel'o.rmers did , hovJf~ver " at; '\7$11 us the

,ft'anoh rer;alist juriats a the University 0.1' Ingold.-adt .,

E'ven todn.y it is controvorted and on the s olution of too question

reearding this titl e bint;ea much of t he answer to the t'lhole probl e m:.

To oonol ude!

"Up to the :middl e of the lVUlth oentury ecoleaiastic l aw e.s well a D oi:lIl1 law inpr inoi ple f nrbade the loan 'l'nth interest ••• It

tlln our tloec . on tho Q'ontrary~ th.e lolUl with inter e.st 10' o f current usn.t;l! llnd is authorized by both cnnonica,l und oivil l aw: '

r''fliGetrnn~.o thinG a.bout it is that the bc.n o't o'thiJr days ~t)d th~ euthQriz1l.t.ion of: tOday arc , to thoso who. trodersto.tld thOCl. equally j ustifi nbl o endure j'uot ifiod by the ac.rJl;l i)r inc i pIe : t he oir oumstnnaos ~loue have oh£u'lgoo • 1171

fie t\a"ll toa consideration of Church toaching, whioh hitherto '1'1'&

have a.bnost cO!l;>lotely nocl ectod f~or the ?urpose of pN~gontinb i t in

unified f orm.

70.,. Rev. Tho>--.J8S 31a.te.r , ~.J . (..:Iuostions2f. ibl'al ThQology (N •. Y.1 915) , 19 .

'fl . val 0.· 1'6 F-o.11on, S.' . J . Fl'lnolpl es of Socia l ECOOul' t r aIl . by Re.v .. John L. Moliul ty " reV1&ad and adopted for the ' ... by i3el"t C. "r oss O!..:Y ., 1933)" 32,0 ..

1".

Clla';.)ter II i - Churoh ctr ine on US\,lt"

To ;Jrovc that the general condet:ll1D.tion 01' uO' ,,·0.0 carini tel v a

Churchtcaohi nc wo havEl 0. croat nUl!>DOr of doouments as evidonce.

1) The unoi! of El vira (305- 6) condemned usury~

'" Should a::rJ cleric 00 found to have taken usury . let him be d<:;bl"ndod and exco.rnwunicate.a . l!oreover .. if any Inyran shAll be proved a. usurer , and sl'.all have .?r Ol':lised when oorreoted to nbstai n from the pr aotioe. l ot hi t:! be pnr~onod . If. cn the contrary. he porsevora in his evil-doing he is to be eXOOD-,unicated .,' "1

2} The Council of Arios (314) again eondemned clerical usu:rer a . 2

} '.rho Cot-Uleil of Nioo (325) cocr eod as £13110"/$:

" ' Sinoe mnny clerics , l ed by avar ioe o.nd a spirit of uour ybnve for gotten tho divino ~ord: ' he PAth not put his wney to u l.mry t nnd oer-Jt!ndcdns ,¥,ol"'itnble usurers Co Tl.lto of one pcr cont int~I"ofJt per month , t hio hol y one great counoil docides thnt ir anyone nftor tIle publication of U:it ordilmnce t nkeo into:-ost

n QIlY ~ny. or €ngo.cOs in the bu:!inoslJ oi' usury i t, UL'Y ll:mDor» or de~':i:J.nJs baCK one end n hnlf tlrJ)S as r..uch"

oX' othel"t"titlo devisoau soheme of dishonost ;?f'ofit . fiG shall bo ojoetad f'r Qt:i tho c lerionl stutc , a.od h10 nrune striokon from t he register' If:;

Pope Julius (337- 35 caid thnt rUthy l UQ:t"o I:lCMS huyinC ohoot' .

holdi~, sel1il~ hieh-

S) The Cotmail of Car t hne;o in 348er.&.oted l eJ;i s l lltion Ilcninet usury cn

the ::l9.rt of the laity . Grllt\lS , . a bishop in t ho council enid t

II , ••• woot in r eprehon.<: i bl o on the part of t ho I nity is muoh more \";orthv 0.1' oondemnat ion in the olorgy ' 114

1 . !.:ansi II q . CUrlo . 20 or Ivo- Veor e tum xiii . 12 . Gratilln hus the same . Soc l.ti ene 10'7 001 216.. Sohroeder says par t referri ng to laity is of doubtful authentioity. (Rov. n. J . Sohroeder . O.P. Viscipli Dooree·s of thfJ Goneral Councils (St . Louis 1937, 48 ) t rEloa . .

. thore i(l7ron Eroen, (s . ~ .If ) , 411 . 2 . l'~o.n:::.;::t !i. e'ol .•. 472; Tcfol'c;nce from Cl eary" 44 . ;:; . !.iohr oedor (See footnote 1) . 17 .

eJ1.D1. xiii .. 001. 158 cen . 1:) ; r efOTOllCO fro!." Cleary" 4,1 .

20.

6) In 444 Pope Leo in 0. lotter to tile bi sho.pc of Cl:lJ'JlPUnio. . :?icD.", nnd

'i'u~cnr.y, Gtron~ly {'loud(')on&d USlll:'Y a.nd ornored p-.ml,sllllla:nt of the in.t."

who pra.atio:ou it 1

It ' ffeithor l1ie think that it :shoul d b{) li&htly pnseed over that so:nc poople, sohed m t h the dodro for rn thy looro , put out their money nt usury i n ordor to beoome rioh thoreby.. And we b:l.vc to cOr.Jpl uin of this not only \<,1th retll:rd to thoso in ole-rical office but we likewise gricv\J ·to ~ee that :it holds true of' lay peopl e \>:ho v1ich to be cnlled Christial'ls .. tJo de­or:ee that this should be se'Ver~ly ? un.ishod in thes,e found Guilty, so that 0.11 t.tris occasion of' sin !i1ly be

shod away ' "5

7) Tho Counoil of Tar.regona. (516)6follows Pope Ju11us~ ide&> of U$\U"

(cr. no. 4 above)

G) The Synod of AU - 1a - Chapelle (789) 7 decrees that ea.ch and aU

arc rorbiddcnto give anythinr; onusury.8

9) A t':holc cories of oor.dw.ootlono !lOW ft?poor . In a I, oaj?ltular

5 .. ~,:lr;ne 18710 . 959 ; t l"tuls . by Roy C. Ct).ne n.nd l!£trW;;l"t n .•. Couloon in ABo~ce ~ f2:!. Uodieval Cooool'll10 pas-tol7 (mlt';'uukoo I DDG) , 111.

G. Of iriter-est in t his ?cFlcd is 'the c~nd of rostitution given in the "B;xoerpta q'.ll!l.odo.n de libra Davidls# - or a "CORn in Boo},: ot David" (Oil . GOO- Ul!5) e.o quoted in 1!GdieV'!11 I!Qndbook or Pot~<le b John T. llo1!Cill and llalel'l 1.1. Gl".rner. (Colu.>:lbis. 'tl .. PrOOG , t:. Y. 1933 "13 . fu who l'eeeivcG '.loury 3hall t:ivo up the thing5 thnt he CG.$ reoeived . " Since there is' no restriotion of tho :n-oh:i.bition to oieric[) and the rulo is monnt to regard all olassos of ",-ellitonts tho olnim .seoms thereby disproved thnt usury W(lS first forbidd0 to olerics only and toot th(u'e is no proof to tha oontrory ;Jrior to the ninth century . 'Iho, passage also offers p-roof tha.t usury \\100

oonsidered opposed to cOlrel.utat i va justice ., (\'13 quot"e other portions of inta.rest from r -oUeul also in the footnotes , for they represent less official statements) .

7. Ibid ., C75 - "The Burgundio.n PerJ.tential't (tle. . 700'-'125): .t22 . !r 'ii'n'YOno moreovor . oxacts UGU:'Y from anyone he shnll do Z)cuar.oe for tt>..ree yc.nrs. one of those on broad 8.l1Q '\'lUter . 1t

8 . Droon, S. !::. II , 416 .

foronda uoury: i n 825 nnother"a In 929 tho Counoil of :11riG nud in

B50 the S}~od of tho no~rnl City of Ticinum di G l1ke~Ge .

10) .IIn 65010 a sjt'TlOd held nt Pnvia deoreed thet those ~~\O in tho past have lent money on .intOl"ost are to make r oot! tution to those from 'li<hot:l thoy lmve exaotod their usur1oG . If thel:H' are dood they are to res-tore ona ... hnlf to the heirs , or Gi ve ill alms Vlhnt they by oovatousness have obtainoo . myna'

ho -acoept usury nrC to be eX<lOl:im.unioo.tod .; eleri<ls 0.1"0 to be deposed jf they do not obey the l aws ·of the bishop .l'll

21 .

11) The Second Lnterun Counoil ( 1150)12 contains the foll0>1ing dear-eaIS

in its thirteent h canon:

n ' We denounce t}1~.t de1;estublc c.nd disgraoeful rnpa~i t oondcmned ulike by hUillrul (Uld divilw l aw, by tho Ol d ane tho rYe\'{ TeobL."'lent., thet it.lClltiable rapacity of usurers ; t;h~ \',rc horcb$r out off from nIl eoo1aa:i.o.stiaal

9 .. L~cr.cill . 207 . R'r'he co- cc.l1cd Ror~:o. ?enitentinl oJ: r.o.li~tmff! "47 . If Q.uyQna O;lte.ntll usury fi .. om anybody he ni'4111 do pone.nee t'O:t thr$e

oClora , ::me yonr on. br oad Qfl.d ~e.tcr .• " 10 . Ibi d ., 292 . UScloationn frotl the St. :iubort Ponitentia l!! (cc. . 050) :

11 22 . or usury - If C-llyOllfJ (Jxnots ueury .frOr;! ru:;ybouy he shall co P<.3:DiiI'lCC for three :veers . If .tto itl .0 cleriC. he ohAll not pl'oo@sd to holy orders , if G. doncon or a pre.shyter , he sr..all '00 deprived of his o'wn l'e.:nk . II

11 .. Dreen. S. E. II, 410 . 12 .. Tl~ Decree of <h~ntl1uJ. (1157) c .. IV i'orbids usury (U1d ol~derG res­

titution. HI. Tho followi ng footnotEOl is flttMhed to this de,oree in Dondzer :

"cr. Leo IX in syn .. Rcoam. 1049, 0 .. '7 (mai XL)I,,: 142 13);; Lnt XXI 1179 0 25 (:I:!a1XXn 231 3) GreG" 1 i n LU.!;d . 11oe!).. {CfC 'VI ~ 5. 5,. 1st !!~ FidbgIlloB1sq . ) ~ulti vidontur bane oono1111 61Ulctionem pro positive. talltum pl"onibitio:ne h:!l.buisse. Ewe Al .c:xa.nrler In (oio Deer . V. 19. 4 : Pidbg~lI 812s.q . ) deelarat , non posse i n re­oiplonda. ad usurc.m PCl.'lUllio. iliapenaationom .fieri; lleCiuo etirua u1:

uperes , qui Ss.reoenorU!l1 eaptivitate tenentur ; per etUldem pocs lt .e~ouninn llberari , siout Soripture. sacr a prohibet pro altel'ius vita ol'ltirl . Ibi d c . 5 . reic1t quorundmn exoeptionem. i11ao tantum

usuras esse restltuendas ,. ~. post Lo.teranensio I1deoretum fuel"int reocptae . Denique 0 .. \1 ipsoe htTr edoG flUos vol cxtrs.neos ad ro.,; I3tit utiotlOU teneri sttil.tuit . Multia etlam daoretis Innooent-iuG III (in OOa61!'. titulo) deot'otol"W HltOl"1'.m'l OOI3el"-vutionem ur-get. 1S (Hen-1"icus Dcmzigcr , E.nclJ.lrioi·on S .. bol!>rum ed . by JobeJmo~ Enpt . UmbOt'f .. , 8 . J .. , ed 21 ... 25 : (Fl"oiburg , 195'; • 173 .

()onsol a.tiOlj ; and 'We order tha.t no arohbishop. no bil.'lhop or abhot , or c l eri c., shall prGSUOo to reoeive oock USUTers except \11th the vary croatos caut ion, tha.t ,on the eOX4trar~( usurer s QJ"Q to be regnrded as inf'amoU$ and shall if' tlloy do not re ..

Gnt be deprived of (,.'hristitm buriAl t "H.

12) Tho Council of Tours (1163) has n cnnon oondellJIlinc; the usurious

deaUnr;$ i n which the c l ergy ".7el"G im>olvcd .,15

l Z} Pope Alexander III (1159 .. 1161 ) s peaking of a contl'"~u}t of snle in

n l etter tlln civitntG tun" (1176) t o tho archbishop of Genoa snys tho,t

it often hnppens that $0:00 take f i ve pounda of merol-',nooisc . prOmisiD{;

six in retur':n 4l.t a st'11tod ti.'l!a .. P.c cnYD t ht'.t althour;h thiacontrnot

oannot be called us·Ul"Y, etill it ion sin mll c.s.8 there is doubt ab01J:t

" .a...-r .. • '

.~hothor t he "''Ri ue of the morolmndiS<:! nU l nu~tl.;ate bci'oro the tm.& for

repaynent arri'V0s ; and 1 t nould bQ well 1:01' the- {i·e.l vt1'Uon of their souls

if tho po.opl c cctlsed from. ent",rlnl'" €u6 I f.

ontr acts . Cl eUX":If C~Ol .. tS

as fol1otJ6i on tilia l ottert

tI ... j~l()xandlJlcl" IU eoan8 cleurly to reoOt;niM the title which cC',mo later to be known by the name of: lUllrum C6l.H'ln.tlS nllf1 ~hich had t o s t r ur;gle for c·enturie& rot> reoogni t1on . u 17

"The onl y other possibl e view is th~.t the contro..ot hns to be analyzod intoti loan of gooos with tl futur<l :sa l e: , but thic SiSOmB a.bsur d since the goods ~re not l u..",l y to b& in tf,:ds~Gllce at tho futurG date . Ale7..nn(1a.r' QonsQquontly l'ecor,nh:es the title of f ga.ln oecaing ' .. . a.nd does not even requiro that the fact be pr oved - he is stltiufled t;'ith .atl Its. pr i ori a equiprob~biUt:y.. Still ho is chary of nllo1";illg tbe practi ce of enter ing into cuoh

14 .. D. Soli ; trans . by Br eon, S.E. 1I ~ 417 . 15 •. A~hley .. 159 . 16 .. D. i>M .• 17. Cleary. 6G .

contr acts to gr ow up" treca.use evon thoue,h thoro ~c.s e. quostion of 1J:-0ror..ants who '\'<ou10 have opport 'Uttltieo of ~~ n profit." yet thiu' $ \:il!l. f:

dW'-&or l ost sut'fioir:.nt like1-ihood of loas 0

profit should :oot be present i:o indivldunl casQu . Q18

Othor dooume.nts cf the r>1ll':l.0 POlXJ are quoted nnd COXJ!le.ntcd u,on

by Oleosy. 'Who Gays of Alexander III t hat :

''He appear s to h;;i.ve t hought out this question philo..,. sophioally" l'u1d is really 't.h.e pi onoer in its seien'M.-· tic .study. &, ht"d oot'!e to the oonnl usion tt'J~t ther e 1s i njustioe in usury , for in a. l etter to the Aroh­bishop or Salt.'l"tlO,. he Gays toot usurers should rnruro resti tut lon aithor to the person f r om whom they oXM;tad their usuries OJ' to thei r heirs (Greg . Leer . lib . v , t1t ._19, 0 . 5) whEat tn a l etter t o t h.e bishop of Pin.­(jene~,. -he orders the heira of usurer s t o nnko· rC'stitu­t ion. (lb . c .. 9 . ) Th.o tn.ct t.hs.tM ordorcthe hoirs to rostor e pOints to tho cono l usi ontha:t the profits of tho wru.rel~£i Core l.n1just . !;or wa s i t IOOr\illy \::hera got byo:i\:tlction co ceve:ro as to be oont rar y not ll).oroly to charity but to .:J ustio()~ for i n n l etteI' of t htl yGUt' 1180 to. the Arcllbiooop .of CantGr lmr y t:l l ender has no r 1£;:h1: to mora tban he l ent . 'll ~

mhe l not montio.nad dQ~ur~nt of tho yoar 1180 r ea.os I;lS folloViS :

" t S inoo to ?lU" :n:.>e the gains of uSUl"Y i [~. dnDgerous .at only to thO' ol ar eY but to 0,11 otherG , we enjoin

you to oom:pel by eeol esinstionl pG!l£l.1 t."ytll0ll6 'l;':ho have r eceived thl~ cllpltul they lent (together 'V1S.til the expo.llSCS of x:nl»<!;etnont) :from the possoosion. of goode they-are known to hol d in p1edse". to restore the s rune pl ed.:o . (..t, l ibv . t1t , 19. 0 .. 2 ) •t ft20

14) The Thir d Lateran Council (1179) in Ce.uon26 deorees that :

"Since a l most i n every pl ace tl'>.o cr1Ine of usury has bocome so prevnlent thnt Ill!lny peopl e Give up a ll other busineSs ·and bQ();o!r&3 usurer s , as if' it wer e Im,1'ul •. J'egarding not its prohibition in both Testaments . '1S

113 .. l"bi d • .• 87 . 19 . ~y, 65 . 20 . Ashl ev", 159 ..

23 .

ord.tlirl thc.t omifoot usur -ers chnl1 not bo odr.itted to cOI:!:::union" nor . if they die ir.. t heir Gins , receivo Christian burial t'u.1d tlm-t no p'.31"con 8110.11 nocopt their e l tlfl ' "21

15) Urban III (1185-1187) quoting Lk . G, S5 as u proof for his ~~~~ .

condemned usury and ordors r ostl tution . fie writes as follows in a

lotter to a priest!

"Consulu1t 1108 tw devotlo , en i110 in 1OO1O'io animar um quasi us"urariuG debeat iudicari . qui nOll nlias mutuo trodi tUTus, e o proposito mutut"'..m

ouniam oredit , ut , Heet omni convontions oessante . plus ta.men aorte reoipiat ; at ut.rum eode'mreatu cri ... mini e involvatur qui , ut vulgo dioitur, non a.liter pnrabolam iurnmonti oo~codit. doneo , quamv!s €.line oxnotione , omolmIiont um. al1quod ind.o ?ercl.pic.t; at an nOGotlutur poer.a eonGimili debeut condeOP~ri . qui moroes ~ u.os lance maiare pret i a distrahlt,., si ad sol­utionem fn,c·iendm:l ;:>1'o11xioris to.mporic dillltl0 ?ro­rocetur . quem vi oi in cootinenti pr etium persohTlltm·. Ver tU!t quin , quid in his caoi buo tcnondUI:l sit , 0

evangelio Lueac !f!lnifesto oognoscitur .. in quo <iia itt:l": t Dnto mutulml. nihn 'indo oporfmteo ' (cf .. LQ . e, :::.c) : buimwdi homnos prO' i ntentione lucri. quam h&bont cue oronis usura. otm";JOf'o.bunduntia pr-oJi!i'be.o.tm" i n l ege . i ud i enndi cmnt we a gcT<3 . at ad 00. quc.o telit~r suut IlGceptn. . r oatituerila. in m. ima.rum iudlcio afflouoitor

nduaondi . u22

c;<: .

16) Pope Innooent III i n 1204 compl nined to Philip Aur.;ustuG u.bout the

roynl prota'Otio.n £Mll'.Ib~d to t ho JO'<1S and of their usurious pr actioes as

!!'lOMY landers . 23 Cl ea.ry says tha.t Innocent In in 1200 reoolTIrlOnded

do''?rios " to bo [ ivan to a moX'oha.nt t o acquire (:fl.in. but t his 't'ttl.S t o bo

by means of a contr act of uso<lietnstt _ a t'portnorshi

i n n lettol' to the Arohbiohop of Gonoa . 24

21 . Breon. 417 S. E. II 22 . D. , 403 . -

3., ~ign0 CXV, 501-50~:l .

24. CI CCl.l-Y . 67.

• This is contai ned

Innoosnt III iJ In.imod toot USl.WI!

it .. ... invol ved injuGtice o,r Qt leust :it 'br our;ht .ith it an. obligation of rostitut ion, frOll ilhat , .. ever SQurce tho obUce"t ion cpr sng - even CUl ooth on t.!.te pa.rt of th() dobtor' not to redeoand U.o usury was of 110 Q.wil to f :roa from obli\::nt:iol: of rost1 tut ion. 11,25

17} Tho Fourt h Lateran Cour'-Oil (1215)26 i ll its 67th Canon lrAkos the ,

following r ogulntions reOlrditlt; Jew:; :

.. ' Tho mope the ChriGtians are restriUned f;rolil the practioe of' usw>y,; the m.ore a.r e tho~ oppr esoed in this matter by tho treachery of tho Jews , so that in a zhort time they OX.Must the r esources of tho hl"istiens . i1i.shing ~ ther efor e . i n this lll!l.tter to

protec t tho Ohristians a.gains t or ue l o?:pr ossion by the J(JWs# we ol-dQin in thi s decree that i!' in the future under any pret1e:xt Jew,s extort f r om Ctwbt1'(;ll'U'.! oppr essive and ilrtlOuerate interest . the partnership of t ho Cr..ristian Ma.ll be denie~ t hem t ill tMy have U'.s.do sui table satiefaotion f or their exoesses,. The Cbr1s.ti-a.ns also . every a ppeal bei n,s o0t adele. shnll if neo0S:s*"l'Y. be c01;lpelled byeeol esitl.sti<:al CenSUTG to abstain from n11 eoltt:lere i 'O.l interoout~ae wi til thetl. ~e commend the ?l:'iooee not to he hostile to the Chr'1s"" t i nlls On this acoount. but ra.t her to str 1.ve to hinder tho ,Jews i ron: prMtioing suohE):xee$ses ~ lastly

25 .. Ibi d ... G8. 26 . Th";-"i-ulo gi ven by Aloxander III to the l.rohbi!;r.op or CQJ'l't:er ...

b\U7 (supra, IS) 1s l'e;>oatod i n a canon i sstted 4y St ... Edmund Ri ch (d .1 240) It is given b"'.f Ashl ey. 160. :&s follO'Nl't : "Uo C'ol' hi d that !!l'PJOno shoul d endEla'iTor to retain a. r>lcd~e 3£t01' f r om tho f r uits ()£ it he has 1'60e1 "100 the G\1m he lent .. tocet har with 0xpenGoGsinec to do so isu$U1"'/~t {Lyndv;ood • .!?r(WinoiGlo_, l1b .• 2 . tit .• l0 ;, ad . Oxfo.rd . 16 '77, 160 . ChellT~· . 66. &~y& that in the above l etter of' St .. Bd:mUlG 11 . ,,,,.ther e i f> eo l",ecotnH:ion that nothing mtn be taken for the l oan itsolf. whilst somthing :t:d.Cht be clej,t:l,ed on the extrinsio titl e of: dru::n~ ome.r gens . tt

2S .

1e decree toot too J(1l:1S be compelled by the Snilll1l

~tmishmout (avoidance of c~eroial intercourse) to tJnko suitable natis.l'netioll f or tho titlos und of'fe.rinr;s due to the 4hurchos . 'Which the Chrintic.no 'r}(lt'e uceustomec to suppl y 1'rom theirnou:lOD and othf):r' Z:;0GSOGsiotls .. bQfoFG thef,~ propert1-t;)e ~ undo!' nhutevor tltl(l ,. foll into the bande of the Jcwc 1

t hnt thUG tho Cirurohtas ~y bo so.f'ogliU.rded e.guinot 10se., 112'1

26 .

18) Pope Gregory lX (1227- 1241 ) m-oto tho tollo"dni: 1'o.moUQ cnupter in

a. l ettoror uncertain dnto:

"ra.viganti VGl aunt! tl.d nU.11(linas certmn tlutuaus pocuniaa qunnt1tat .emoo q'UOd suscipit 1n sa perieulum, rooo .. turus aHquid ultrn. sortem u(lurariuG (non?) est een­sendus . Illa quoque , qui cat X solido"" tit alio tempor.o totidem sib! t;t1Uli , Yini et olei monsurae raddn.rlt\u": quae lieat t'1mC pl us valsnnt . utt"Ull plus vel minus solu­tionis ton,?Ol'0 fuerint vnlit4'l'M. verisi.mllitsl' du~itnttut;

n dabot ox hoo uaura.r;l'.usreputnri . Rc.tione huius dubii etia:m eli:cusatur . qui pnnllOS . t:ram.lID, VL"ltr:1l. oloum vel alias r.erCG9 ve.nrlit ., ut runplius , quam tU,!!C Wolaunt , ih' corto tortina rocipi~t pr~ ~iude~, $i t~n cn tempore contraotus non fUi)r's.t vonditur us . ,t fl 28

Cleary hus tho followlnr; footnoto regnrdin& this lettor- ..

HUitl sol ution ic busod not on a reinvacU!!oL"t of' t . 'rioe , but on tho othe~Jine doferred 33,10#. b\lt no w,

huvo soen ouch n solution CUPPOS&S the existauee of the titlo (lucrum ooosQns) • SeotuS' gives tho Si},L":G

solution of ewlU!' qUQGtions . 1t29

19) 'i'he First COUI\.cil of' LyotllJ (1245) (UJ r,iven by SchTo0Acr conte.illS

the following 'l'l'ords in its 13th (HtDon ': tI •• • 811108 tho \Jll1'atho:r:w.bl e

greed of usury bAS broUf,ht

etc . 50

21 . Schroeder , 290 .. 8 . D. 448 .

29. Cloo.ry, 61. footnote 1" 0 .. Schroeder " 306.

y ohurches to the verte of'destruetion .. .. "

The Stl.mO Council dves :;e,rmssion to "contl"Q<lt debts toot arc not

ustll"iow:: .. u:n

Co.non 18 eo~nds l"ostitution of usurious gain and leGislatos against

the Jewish money-lendoro :

t:w. the cnse of crusaders who ere bound und,er' oath to pay interest . we conno.n:d that their creditor be oOtnp911od to cancel the oath {;iven and to Q,GQse e;xncting interetrt .. Should:my creditor forc~ th pGJ,'Ir.ent of interest, W() cOn'.lnnd thut he be similar-ily i'Of'oed t o t:n.kc YGsti tution. rie comr.t1llld n.lso thnt .Jews be compo'lled ~y the secular pewer to canoel in .. terest , lUlU till tbay have don.e so. , inter'Ootlr~.e with th~ must bo nbeol utely denied thamby nll Christians. undor penalty ofaxcOI:lmm:Uccti on .. For those YJho Ctlm10t

bofore, thair departure pay thGir debt to the JImS" tho sceul:u- pl'ince,c ohull provido such a dolay tll'.'.t from tho ti.l::C of their departur{:t until they retU1"l'l O.l" until their death :is knoWll . they shall not be mnbaro.ssed wlth the inconvenier.;eG ai' ~")a:-"ing intor(?ot . If n Jew has ro:ooivac .soeuritr. (:tor exut:i?l e ! a pieoe .0.£ ~ro\mJ f()1' such f.t dnbt , he;, fUl{:?t, n.ft·3r dcduotill& his .ot;n C~jcnsoo." ex. totbe OWOOl" the income. from such swurit'lJ.. !5f'e­letas ,...ho Uln11'otl.t ncGliCeooc in obtQlniq;, jU!ltiec for the crusaders c.r.C their sor,;unta ", shnll be subjoct to SQvare pe .. ..alty. "'l'

27.

20) l'he Second Counoil of Lyons (127'1)3:.i in CUtlen 26000 the follow:ln&

.::o.rde:

" ' Dosil"ine to check the canker of UG'ury whioh dev.om's souls nnd exhausts roso1.lTOCS , we 'command tb..Qt the

51 . Ibid ., 300 . '9!i) ~d· "'1" <)... . .LOla .. , ,;; ... .

"'3 . A.bout this time we heve an lntor estiDt Dote from "'l'he Ayenbito of Inwyt" , I.l sort of oonool f or coni'essora of \%i de ust) in tiro later 1.:iddl e Ages .. itself I) trans l ation made in 1040 by a. certain Dn.n Miohel , I.l. t:Onk of lent . from n Ii'ronan trontisG \1ritte,n in the ?Tev1ous oentury: I'The sixth mcnner of usury is to lond monoy to mer-ch(\nts on ooooi tiotl that they oiw.l1 share in the gtli!ls but not in l osses ., n (Ashley_ 1131- '"

consti tution of the Lnteran ClouncH against usuret'o be inviola.bly obsurvad under thl"(tat .of divine malediction.' 1134

Clearv s UI::!)JI:lrizes tha rest of the oanon for U::I ae:: fo11 0\'1 $ :

"In the yCIU" 12'/4 , tho second Council of Lyons . in -rlet'i of the dreadful Tn-vages of usurers . forbado individunls c..nd oor porations to lot housos to stl"ungm.···$ f or the pl"&ctiao of I:J'An1fcst; usur;;; •• .The ~ills of publio unu,r~rs wero u() ... c lSU"cd invalid; Chl"i Gtians ~:oro forbiddet'. to aot

s .. ;ltoooses to thar.; (nu11isx::nnU'ostorum usur ... ariorum intersi t), atld priof;ts mi ght not hear t he com'eflsiotlo of ar e:ive eoolsaiasticc.J. burial to llnllifclGt uou:t'ara unless t hey [lAd oomplotoly 1"n­Gtorod their Hl-gotten gllin. "::;

~oro-oader eivos us this last mentioned se.otimI f r on Canon Z'l:

"Even thoue;h notorious usurers have ma.de defi.nite prOvision in their testlltOOnt rObfir dillg rest! tutiOIl in the ratter of int~rost i llegally token. eccles. ia,stioal burinl shall , neverthel ess , be denied them till pleMl"y so.ti.efCl.ction hac been nlUde so f"ar as their resourOGS p~ t . ",36

In Schroeder t sexplano:tion of Canoll 2(; of the Ccuno il he .say.s:

" ••• tho prohibition oxtends only to for01gnol'3" first , because these were the roost Oppl"sssi'l7o" cmd seoondly, t he luoney toot they thus 111egallya.equil'od \'ltlS re ... oved to forelcn countries . Besides with the forelg:

element out of the wuy it '<18.5 easier to control 10001 offGuders ,. (Kober". Die Suspensi on. 348 f'f' .• ) . 11.37

~4 . S.ohroBc.or , S50 . '115 ., Cl~Qry~ 74. 06 .. Sohroeder ~ 559. 57., lbid •• S5 r

, . -

28 .

29 .

21) '1'he Cou.l'lcil of Vienne (1312)38 in Canon 15 condenms a.s heretical

the dootrine that usury is not sinful:

'" It has come to our knowl edge that oertain com­munities in violation of t he law , human and divine , a pproved the praotice o,f usury and by statutes j ura­menta ~andosue fir mata not only permit the demand and payment of usury but compel debtors to pay it; thus imposir.g e;rave hardships on those who demand t l>..e return of usurious money . and by r€storing to otl~er s pecies of' fraud in this nature hinder the return of s~ch money . ....lo , therefore , wishing to put an end to these per nicious practices , with the approval of the holy council , decree that a ll evil officials of these communities , be t hey rulers , j udges , l awyers , or any others , who in t he future make , ",rite , or dictate statutes of this kind or knowingly deoide that usury may be paid or in oCoee of having been paid m{3.y not be f r ee l y and fully restored when its return is de ­manded , encur the sentence of exconmulnication. They shall aneur the same sentence if they do not v;i thin three months remove such statutes from the books of thoso communitios (i f they have the power to do so) , or if t hey pr esume effectivel y to observe those statutes or customs in any manner .

tMoreover. sinoe money-lenders enter secretly and deceitfully i nto usuri ous contracts so frequently that they scarcely be convinced of t he evils of usur y ", We dec ree that t hey be compelled by eco l esiastioal censure to exhibit their acc ount books for the purpose of asoertaining whether they praotioe usurv .

' If anyone shoul d presume obst inately to affirm t hat it is not a sin to practice usury we decreo that he be punished as Il heretioand we strictly cOlJl!Jll].ud the bishops of the localities 8.nd the inquisitor-s to proCleen against those suspected of heresy . '·39

,~8 . About 1410- 1411 was written . the "Peni tenti a1 of Cui dad II in 'rJniCh we find the fo llowinf; words: " ' 80 . And since usury is a. species of the,ft , veri1~r i.f anyone is a usurer he shall be admtted nei ther to the communion of the Body of Christ . nor to the Ohm'o h un l ess he f irst r estore the usuries he has taken. if he is able to pay them; afterwards a lso an arbitr ar y penanoe is i mposed for this sin through confession. after he pays to tun. or when he ives a bond for payment .' " (Moneil l . 362 )

39. D. 479; trans . by Schroeder , 401 . Sohroeder a lso eives us some

There is much controvorsy 9.bout the decree of the Counoil of Vienna. .

Breen oorom.ents as follows :

"The deoree ••• touohing usury is genuine in the sense that it expr esses the mi nd .of an infallible source of teaching in t he Chur ch. fubstr ofini ' s statement " that the decr ee has not the a pprobation of the ,cow:lOil . evon if t r ue. woul d not weaken the force of the deoroe . " 40

Clear y s'ays :

"Mastrofini indeed says that this dec r ee had not the a ppr obation of the Council , but the contrary seems more probable . "41

30 .

Many theologians wi shing to pr ove that Jehe Churoh never explioi t l y

oondemned usury as against justioe , a r gue that t he Council oondemIls only

heretioal offenders and does not state whet her usury is against the

natural or the positive l aw nor whether i t is !tg9.in~t j uztice or charlty.42

This i s said r$gD..rdlo::;~ of the fact that the Council C:ZC OJIail.unicates thos e

i'...inder1.ng r estitution of usurious gain . Br een g1 ves this opinion ro -

garding the 111eaning of the decr-ce:

"The l anguage of the decree is obscure and at t:lmos barbar ous . 1'1; is not easy t o peroeive what is the exact intent of the legislator . The dec r ee seeIl'..s mer el y t o appoint a judieial pr ooeeding and to es­tablish a penalty, but sti ll in the cl assifica.tion

oanons f r om tIle "15::o::ivi de par adi so" . an expl anat i on of the r ul e of S"t . Fr anci s . Canon 21 consider s i t as an abuse among the monks that It , ••• they RO.t a s exeoutors of will and mix themsel ves in the di sposition and restitution t o be made in matters of usur y ••• ' " , 411 . In a list or o anon a given by Dr . Mi ller as fa.irly cer ta.in and pr obabl y of the Coun{)il Ga.non 6 mentions usury as Oltter for Ii t i ga.t ion. 41 7.

40 . Br een. S. E., 425 . 41 . Cleary."'"'7'5:" 42 . Cf . Vermeersch QuaBstio~les de J usti tia. 11 . 360 note

of t he offense , it sW'ely connotes that to affirm tha.t usury be not a sin, is a speoies of heresy . "43

Cleary is more defini to :

"To me it seems more probable tha.t the decree was meant to be definitive, not merely disoiplinary ; and moreover tha.t it defirLes that usury is more than a sin of disooed ienoo • that it invol ves il;1:lustioe . "44

22 ) Pope ?:ffartin V in 1425 issued a bull whioh was repeated and COn-

firmed by Pope Callistus 111 (1<1·55- 1458) who in a Constitution flRe~i _

mini universa.lis" (1455) discussed the contract of census . in which a

field or othe.r pr operty was sold while the buyer retained a right to a

31 .

oertain rent-ohar ge f r om the vendor . In this Constitution he describes

the contract , and then after mentioning that some people doubt about

i t.s lieei ty, he says :

"Nos i g;itur . ..... ad orune super his ambi guitati s tol­lendum dubium, praei'lltos contractus 1ioi tos iurique conformes et vendentes eosdem ad i psorum solutionem cel'JSuum et redtuUlll iuxta die.torum oontraotuum tenores . remoto oontradietionis obstaoulo, effioaeiter teneri auotoritate apostolica pra.esentium serie declara.mus . "45

Clea.ry sUl'IllJ1i.ri zes the Gontract t he essence of which is t hus reoogni zed

above as lawful:

f'In his r epl y the po~ re-oognizes t heir lawfulness . but supposes t .hnt they a.re of a certain desc ription : that they are ba.sed on fixed property always deter ­mined beforehand ; that they are moderate ... .. that 't:;hey may at any time be repurchased in whole or in part fo r the same sum of money as was paid to purchase them, t hus abolishing all fut ure obligations ,; but sellers were never to be forced to r e store the purchD.s.e - money.

43 . Droen, S. B. II . 425 . 44 . Clea.ry. 78) 45 . D. 716 .

even if , it should happen t ha.t the goods on \'1hioh the char ge s were based ha.d peri shed - it V'laS a contract of buying and selling not a contr act of 10an . "46

l 'hi s l ast olause in Clear y ' s s ummar y shows that ther e is no difficulty

in reconciling this contr act with the doctrine of the Church on usury .

3,;;" .

The Constitution of Calli!'l tus III was issued in 1455 after l1icho1as V

in 1452 i n e. Bull "Soll icitudo" had a llowed for Aragon and Sicily a

"census personalis" or rent char ge on a person ' s general credit .

Pi us V in fl. Bull "Cum onus" (1568 ) a.gain confirmed t he necessity

of a f r uit- bear i ng basis .. P.e demanded that t he pr operty bo i mnovable

and f r uitful , und t~~t limits be named in the contraot .

Finally the right of both seller und purohaser to demand that t he

rent char ge be repurchased by the vondor was adrni tted . This "vas ca lled

the "oensus utr umquo r Odi mi:bili s!t; but still it was not a loan oontract ,

n "mutuum" .

o have sacrificed st r ict ohronologi cal sequenoe above i n order to

present a unified vi ew of the quest ion of t he "oensus".

23 ) The Fifth Later an Counoil (1412 _1517) 47 i n its tenth sess ion in

1515 approved the bull "Inter Mul tipli oes " of Pope Leo X, a doctmtent

appr oving t he famous r'Uontes Piet atis" . In it the Pope mentions that

Paul II . Sixtus IV, Innocent VII I . Alexander VI , a nd Julius II had a l so

npproved these i nst itutions .

46 . Cl eary , 122 . 47. Severe penance is enjoined in the 1!il nn Penitential of Cardinal

]Jot-romeo (ca . 1565- 82) : "Ho who ta.ke s usury cOl"!ID.its robbery ; he shall do penance for t hree years on brend and "Jat ar . " ItcHeill , 367 .

n ' Some til:le ago t here was carr ied Ol'las""llong theologi ans and j urists ., not wi thout scandal to the people , a oon­t roversy 'which a.s we have l ear ned , h.ns recentl y been r enewed. regardinG the r elief of the poor by lo'O.ns to be made to them by publio aut horities , a system of re­lief comnonl y known a s "Montes pietatis '. whioh have been established in many cities of Italy by the officials of the cit i es and other outstand ing Christian men f ,or t he pur pose of relieving the needs of the peopl e by loans of t his kind 811d thus pr otecting t hem a gainst the avar iee of the usur ers . This institution has been ap­proved by hol y men and a lso been indorsed and confirtned by our pr edecessors , t he supreme ponti ff s . In r egar d to t he l egality of the institution the opi nions o.f the theo­logians and jurists wer e divided . Some maintained tr.nt t hose "montes" were illicit i n which something beyond cr in return f or (that is inter est ) t he Iiloney loaned was demanded by tho promoter f r om t he p CD!" to. whom tho loan was gi ven and that these Ol"OIDotcrs <l oul d escaue the crime of usury Dr injustice. si;ce us St . Luke t estifi es . Christ expr essly forbade the pr tlctice (Luke 6 : 34) . For usur y means nothing e l se than gain 0.1' prcft t dr awn f rom the use of a thing that is by its nature unfruitful . a pr ofi t t hut is ac quired without l o.bcr . cost or danger . The sa:ae thoo­logians and j urists maintain that t hose constitutions militate agai nst commutntive and distributive j ustice . beoause t he expenses f or t heir maintenanoe are exerted solel y .from t he poor t o whom t he loans wer e given . More ­over. they add , they are all. inoentive to de.linquency , incite to t heft and pr omote general carel e ssness .

' On the ot her r..and k t here were many theologians and jur ists who he1d the contrar y opi nion and maint'ainod that the l can wa s merely 9. condi tic ~ 9ua~. v-re. s gr atui­tous and wa.s not a direot cause of t he interest j the oustody of the obj ect pawned , however " and oonsequently the space . l abor , and per sonal r e sponsibili ty i nvolved wer e l er;ait'imate oondi tions or titl es upon which a noderate inter-est could be demanded . He who enj oya a.dvantages o.ught a l so oarr;y; t he burden.! espec ially if the Apostoli ~ author ity ao quiesce . This opinion was a pproved by 'Our predecessors. t he Roman pontiffs , ••• Paul II, Sixtus IV . Innooent VIlI~ Alexander VI" and J ulius II and defended and pr eaohed to t he peopl e by saints alld men he l d in high e steem for t heir sallctity .

" ;her efore . VJ1.Sn~ng to make opportune provisions in t his matter und cornmendi~ the exertions of' both parties one f or its zeal f or j ust iae against the pr actioe of usury t he other for its love of truth and devotion t hut the needs of tho poor ~ay be reli6ved ~ with the approva l of the holy

33 .

oouncil . we declare alld define t hat the nfo~e$aid "montes pieta'th It .. established by the oivil I.l.uthorite s and thus fur approved and confir med by the Apostolic

ee , i n whioh the loan is gr atui-tous but for expense and indemnity only a moderate r a tG of intel~cst is re­ceivoo , a r e not to be dec l a r ed a species of evil or e..n incenti va -to evil •. nor a re t hey in any manner or fon n to be oonde);wed a s usurious- rather are t hey lucri torious and ought to be approved . a.nd t heir benefits and s piri t­ool utility a s well as t he indul gences grant ed by the Apostolic Soe in connection wit h them preaohed to the peopl e . Other montes similar to t he above m13.y be es ­tablished with the approval of t he Apostol i o Sea . It woul d., indeed . be muoh more perfent and hol y i f t h.e montes VIer e ' omnino gr atui ti '. the. t is . i f t ho,ss \vho established them would provide some fund or revenues that would cover , if no t a ll at l east half of t he salar­ies of officials and a ssistant s " which woul d lighten the burden of the poor ., .For the establishment of such funds the faithful ought to be invited by means of' gr eater i n­dul gences . All religious and eccl esiastics, a s well as seoul ar pers-ons , who in the future presume to preach or a r gue by word or i n writ ing a gainst the oontents of t his coul.lti tution , incur the penulty of exoommunication le.tae sententiae ,. ;r>r ivilege.s of any nature whatsoe ver n-ot wtt h­standing., u48

24) Pope Pius V (1566- 1572) i n his Constitution "In eam pro nostrott

34 .

(1571) condemn.ed cer tain contr acts of loan with int~rest disguised under

t he nune of r·ce.mbi a" m.' money exchar.p.::es:

"Primus (i~itur) clrunuamus ea omnia cambia . quae ficta (al . sioca. ) no:r;-.inantur et ita. confinguntur , ut contrRh­entes ad cartuB nundi:nus seu .ad alia 10cl.1 cambia ce l e­br a r e simulent . ad quae 10ce. ii . qui pecuniam rGci pi.;tltnt Ii ttar a s qui d em sua.$ cnmbi i t r adunt , sed non mi ttuntur , ve 1 ita IT.i tttmtur , ut transfwto tempore . u.."lde pr oaesser­ant inames r efer antur . aut etiam nullis huismode 1it~· taris traditis , pec unia fbi denique c um interesse r epos­citur, ubi contractus ruer a t cel ebr atus : nam i.nter dautes

48 . D. 739 ~ Trans . by Schroeder . 499 . We have underlined t he most i mportant sentences ; t h-ese illustrate c l early what is meant by the doctrine of ext r insic titles .

t a lis int entio ernt , neque quisqurun est , qui in nundinis . aut 10cis s upraciictis . huismode litteris receptis s olutionem. faciat . Cui malo simile etiam i llud e st ., oum pecuniae sive despositi sive a lia nomine fiati crunbH traduntur , ut postea eodem i n loco vol a libi c um luaro r e stituantur .

Sed at i n i p s i s c amb iis , quae r ea lia a ppel antur I i nterdum" ut ad nos peri'ertur . cnmpsol'es praestitu-tum solutionis terminum, lucro ex t noita vel exprsssa oonventione recepto s'eu etinm t aI1hUllIllOdo pr~:m.i.sso . di f ­f erunt , Q.uae omnia nos usuraria esse deol nZ'antus et " ne fiant , d istriotiu8 pr ,ohi b em.us . "49

35 .

2'5) Pope Gregory XII I (1572- 158£) was consulted by William V re gard-

i ug the question of usury .. Gregory placed the nntter in t he hands of

Ii group of th901ogi!U1s :

If •• ,. t heir report is interesting . since it furnishe·$ a c lear aocount of t he position r ea,ched on the Catholic side at the ond of the sixteent h century. The committee thought that a rev(1nue of five per <Jent mi ght lawfully be taken in many ways _. 1'hey reoognized the vaUdi t y of t he tripl e contract ., and of r eal census . Concerning the c'e IlSUS personalis they hesi ta,tea if imposed on a persona fructifer a . t hen v1hi15t not in the na ture of t h i ngs in­tol erable", still it shoul d not be tolerated by reason of inherent dangers . Rent-charKe.s might be rnade redeemable by both parties , but if so , a 10 .. ver r evenue must be de ­manded than whon redeemable by the vender merely . The OC!ll.'!miS3ion " ~" ent so far a s to a dmit" that , wh en a man ente rs into an ur~defined oontract for the sake of gain saying t hat h e i nt ends to, t ake t he gain f rom t he nost j ust contraot whateve.r it Itllly be . the oontract is l aYlful , provided ther e are cuffiaient extrinsic title s to justify him for tak ing sO::lething for a Simpl e loan . Such contracts , hb,,-ever , ar{) not to b~ recommended . Concern i ng the f orm of t he particular contract submitted f or examination i t is usua.lly spoke.n of as t he "Contract us G-ennanicus tl net forth as it was i n the most vague terme ., it could only "be re­garded a s a contract of loan at usury . a nd a s s uch ,,;;-as to be condenmed . Gregory XI II replied i n uooor dance ''Vi th t he findings of the oOllllnission: - ' the contract i n t he fona Eiven is usurious . nor ean it be reduaed to any form other than t hat of mutuum itself . Since such stipulations

49 . D. 1081 ; D. 1082 .

•

are forbidden alike by d i ville and natura.l 1m'. , it f ollows that ther e Gan be no. ()xcus ing oause aris ing from custom or even f rom civi l law • •• But if there are other German contro.cts a lloWing five per cent to. be ta..l{en il. '-\-'ays differing f r om the above mentioned , t hen such oontracts a re neither condemned o.r appro.ved by t he present l etter , for eaoh r equir es s peoial oonsideratio.n .' (Zeoh , ' Ri gor Moderatus . Digs . I II . Ca p . Cursus Compl etus t

ve l . 16 )"50

li On r eceipt of t he papa l pronouncement , William lega lised a nUlnber of' contract-forms i n the ver­na.cula.r , a.mo.ns st them (6. ) per petual and i rredee. a"ol e rent- char ges ; (b ) cha.rges redeelr.abl G by pur­ehas·er and s eller a like ; (c) charges r edeemable by the seller . In al l these ouses it was required t hat the ohar ge be J::1.ade upon immova.ble a.nd frui t - beari.:ng e;oeds . F~r those who a r e no t possessed of inmovable property . hedr on up EI. f orm of oontr ac t of partner ship wi t h the as sumpt ion of danger of prinoipal and profit (the tripl e oontr aot) and he dr ew uP. fur t her more t . 1...10. contr acts of mutuU!n with a reooe.;nition of r i ght to. c om­pensa tion for lucrum and dall'.num. emergens .• "51

26) Pope Sixtu.s V in his Bull nDetesl'abilis" of 158-6 oondemns the

"oontraotus trinus" as usurious . Cleary defines the tloont r actus

trinus1t. a s :

" ••• a. contrac t of partnership in whioh a sleeping po.rtner a e;reed to accept l ess than his pr oper share of the pr obable profits on C ond i tion that a def'in i t o r a.te shoul d be g i ven and his capital restored even if t he enterprise proved a failure .• "52

'r he papal doeument :

" ••• condellmed all contracts wherein it ,.,as agreed that those who gi va... Qver money" animals , or any other t hing

50 . Cl eary . 153 . 51 . I b id .. 154 . 52 . Ibid ., 127.

36 .

in the name of partner ship should get baok the pr inoipa1 even if accidentally lost or destroyed . sinoe &11 such oOlltracts ar e usurious . (Coneine. gives the bull eh. 22) "53

27) Pope Innocent X in 1645 a pproved n repl y of tho Congregation of

the Propaga.nda. regar di ng a question by the Chinese oler gy. Cl ear :,

tra.nslates the rendering of St . Al phonstls;54

n I nothinc; should be teJeon over and above the ~_rinoipal because of' the l o.an liS suoh; but if because of danger regar d-ed a. s probably imminent , as in the case under consideration, someth ing is taken by the lenders , then t hese are not to be disturbed provided due aocount is t aken of the quaE ty of the danger as well a s of its probabili­tylilld a due pr oportion observed between what is taken and the amount of danger .' "55

Clear y adds the remark that after th:Ls the tit l e of perioulum sor t is

ceased to be an object of much dispute .

28) Pope Al exander VII anl.Ol1~ a number of oondarmations of errors 1'e-

garding morals (1666) condemned the fo llowi ng opi nions :

"12 . Licitum est lUutuanti , a liquid ultra sortem exigere ., si se oblicct ad non repetendam sortem usque ad certum tempus . u56

37.

In Denzie;er a.t the end of the list of oondemnations we find the words :

1t000cs damnatae e t prollibita.e ut minimuo t(lI;lQuaJD. soa.ndaloso.e . t1

29) Pope Innocent XI i n 1679 ill oondemning a number oT more.l v1'o-

posi tions of "LaxislUUS" condem . .'1ed nut minimUIJl te.m.quum scandalosae at

53 . ~ •• 130 . 54 . Theologia liorali s III , 765 . 55 • Clear y ,. 11 7 . 56 . D. 1142 .

in pr axi perniciosaa " the f ollowi ng ver y h aportant l a.."'C opinions:

"41 . Cum numer a.ta pecunia preti osior sit numeranda, et nullus sit , qui non lllRi ori s faciat pecuniam pr aesentem quam futuram. poteet c reditor aliquid ul tra sortem e. lmrtuaris exiger e et eo ti tule ab USeU'a. exousari . 42 . Usura non est , dum ul tra sortem aliquid exigitur t amquruu ex btmevolentinet grati twine dabi t um, sed solum si exi £!:ll tur tumquam ex iustitia debitum. "S7

30) Pope Benediot XIV in 1745 issued the famoWl encyolica l "Vix

Pervenit" , whi oh , a l though addressed to the bishops of Italy, \'jas

referred to by the Congr egation of Inquisition in 1835 as regarding

38 .

tho universal Churo h . Breen translates most of t he matter Whi ch deals

direot l y with the oont raot of 'lrrutuum" :

If ' Tho kind of sin which i s called usury , s.nd whi oh exc lusively resides i n the loan c ontrac t . oonsists i n t he fact t hut f r om the loan i tsel£' . which by its vory nature demands that onl y as muc h shull be Give,n b&ck us 'l'ilU! rece i ved , one seek s to have baok more th~n VlQS loaned . ane t heroforo oon ­tends t hat thor e be due hi m virtue of t he loan itself a profit over and a.bove hi s oapi t tl l . Wher efore n Il suoh prof it over I?nd above the capital is tmlc.,·if'ul and usurious .

' Heither to j ustify himself of t hi s offense may anyone a lleee that the profit was not excEwsively hea'\'J' . but moderate ; nor a.llege the. t the i nter est demnnded i n virtue of tho loan itself. was demanded not of a poor man, but of a rich l'Jan . v.n o will not keep the money idle . 'but will use it t o i norease his wealth by buying l and or by prof itable traffic . For the man is con­vict ed of a sin against the l aw governing e. loan .. whose essenc e i s in t he equality of what is given and what is r eceived , who,. aft er this equaU t y has been established , does not sorupl e to demand 0,£ anyone anything more by virtue of t he (gr atuitous) loan itself . which has been paid by a return of equivalent (" .••• proinde que . 8i 0.0 -

c eperit . restituendo erit obnoxius ex eius obligatione

57. D. 1191.

iustitiae. quam eo;mmutativam appellant at CUiU5 B s t i n humanis oontratibus aequllUtatom cuiusque propriam e t sanete servare at D<m ser­vatam exacts r e-pal'Etl"e ." )5B

' By t he f oregoing it is by no means denied that there may be sometimes titles concurrent wi th the contr a.ct of mutuum and totally extrinsic to the natur e of mut uum. from whieh nay arise a just liud entirely lawfUl tj;tle to exact something more t han the oapital due because of' the mutuum.'

' But it lllUS t b~ dili gently bor ne in mind that i t is false and rash to be lieve that other titles be n l vlays and eV6l"Y'>'1hero present with the oontl'fMlt mutuum ; or that". setting aside the con'b-uct. rtlutUl..llll •. oth~r than just contraots ~y be made in virtue, of whioh, so often as money , (lorn •. or other like v'frIue be transferred to another . it be l awful to exaot a moder a te u'sury over and above the int az;ral and un­impaired capi tal . If any man be of this opinion. he not only 0PPtigns the Hol y Scripture !lna the j ude:; "" ment of the Churoh on usury,~ but he a l so lndubi tably opposes the common jud~el'lt of manki nd .and natural r eason,.'

' It cannot be hidden from anyone that there a r e many cases i n whi ch a man i s bound to help another by t he non - i nterest-bear ing mutuum. t 1159

Cleary summarizes as fo llaws other portions of t he letter which do

not directly dea l with the oontr act of "mutuum" :

•.•••• t here may be ·contraots Qther t han mutuum by which OP~ may draw an allnual revenue , or a just profit from l awful trading ; (d ) such cantrants ma y also be violated i n j ustioe . and such a violation br ings with it a n ob­ligat ion of j ustiO"e ; t here can be no doubt that , in the, re&ion of l a'wful con tracts , human i ugenui ty will devise Inode s of c ommercia l dealing sufficient to preserve and extend publio util i ty _ • • ,'160

39 .

31) Pope Benediot XIV l'll"ote a tr'eatise entitled '!De S:r-nodo Dioooesano" ,

whion\']D.s published in 1748 . Breen ;;i ves a :nllumar y of t he c hapters

(4th t o 7th incl ,, ) which t rea t of usury:

58 . Breen omits this s ent ence here ; D. 14'76 . 59 •. Breen S . E. II , 419fr ., GO • Cl eary . un .

"All increment f rom mutuum resulting intrinsica.lly from. the mutuum itself , as the theologians express 'it , that is setting a side the tit l e of loss of prof it , risk or other extrinsio title is us urious , and unla.w­ful by a ll right , viz ., natural , divine ,; and ecolesias" t ioal . This is f rom the beginning the t eachi ng of the Cathol ic Church, unanimous l y confir med by all hei" coun­c i l s , Fat hers and Theologi ans . "

"1'he Pope next stutes t hat t he Schismati{! Gr eeks . Ca lvin Molinaeus (Dumoulin) , and 5a1masius admit the l awful nes s of equitabl e. usury in cornmercia.l l oans . He rejects their D.r gUlnents on the gl"ound that the o-rmer ­ship of the thing loaned passed to the borrower, and that ther efore !!lutuu-m can never be considerod a l cttine; fo r hire •••

"Benedict XIV distinguished bebmen a loun for i..'ll­mediate c ons~~ptiQn und a commerc ial loan~ TIe statos t hat (I. fe\'1 Catholic doctors of theo lor;y a.pprove 'the cOllJl';1er cio.l l oan, provided the i nter est be tlodernte and in lloC Ordf.l.llce with the civil law . This opinio'Il i s ab­solutely rejeoted by him . lIe dec l ar os that it ,vas first invented by heretics . He invokes the authority of the Fathers of the Church. who he declares , unanimous l y , absolutely , and without l imitation c ondemned as usur y what ever was received over and above t he capit al ....

"The Pop e invokes both the Old and the l~ew Testament i n support of his opinion condemning al l u.s,ury . In Luke 6 , 35 . he ad opts the ••• reading , "l end, hoping fo r no return," and declares that St . Thomas, t he council s , the Fathers , and the Popes interpret t hat the words i n Luke reillcui cate the natural law agains t inter est from mutuum, whether the borrower be rich or poor . lie dec l ares t hat it is r ash and nearly her eti cal t o say t ha.t t he Popes and oounci l s have not arrived at the true sense of the afore ­said texts: it is c ertain beyond doubt t hat the Church cannot err in interpreting; Hol y Scr i pture and presentine its s ense to the faithful .

"The Pope noVi alludes to his fanous encyclical given t o the Bishops of Ital y i n the year 1745 . Ile r ecapitu­lates its chief heads , and declar es tha.t thereby the contrary opi nion is by nMJ6 and expr essly condemned • • •

HM t e r reviewing some other contracts ','::-rich seem to be indirect ways of receiving interest on loans , the pontiff' makes the followine; valuuble admission !.

&0 .

" ' Indeed Vie do not deny t hat 0. l ender who i s abl e · t o incr ense hi s money by n e goti-ntion, l".Ay rece i ve something f rom the borrower by the ti t l e of i nter est (ej us quod i nter est ) , that i s for l oss of the producti vity and f or tho risk ; a.nd since this is I:l legiti.me.te title to 0xact som.ething more than the capital , it should be ine;enuously nekn01:11edged . ' 1/6 1

S2) Pope Pius VI (1775- 1799) i s the aut hority supporting a lettCl'

'written on behalf of t he Propaganda by Cardinal Antonelle to the

bishop of Quebec i n 1793 :

II I b;ve r ybody knows that usury is forbidden both.by t he natur a l and divine l aw, whence it f ollows· that it cannot be rondered lawful by any c i vilauthority or legislation .. and this no matter how small t he usury may be. For whatever is taken i n addi t ion to the prinoipa1 is usury exoept it is excused on the title of luo.rU1!l o e s sans , or da.mnum emergens , or danger extri nsic to t he loan ••• Fr om t hese principl es it is clear t hat t he law in question is unjust - t he laVl ~ namely., t hat permit s one to take e. r s-turn f or hi s money pr ovided he doe s not t ake more t han s i x per cont . SlJoh n r egula tion is opposed t o the ::w.tur a l and d i v ine l aws a like . Acco.rdingly Ca t holics may not ao cept usury under cover of t hi s law, ncr ::houl d they order t hat i t be r e,':)('d-lI'ed by others , or retained i f already received .•• Uoreover ••• is it possibl e that , in those pr ovi nces wher e oOlll!l18l'ce f l oul' i s he s by l and am:! seQ, t her e c Em be no opportunity of do ing business wher eby hones t :men may r e;ce i ve pron t wit hout the s i n of u sury ? 'IS2

41.

r~rom the time of t he "Vix Per veni ttl to the t i me oi' the Gnsos we a r e to

oons i der next , the Roman aut horit i es ,

Uconfirmed themsel ves a.l most en.tirely to the enumera'l!;i on of the old pr inc i pl es , l eavi ng pr ao tical oases tms olved . fl 63

61. Breen, S . E. II, 422ff . 62 . Cleary , 1 6 7. 63 . Clear y , 168 .

They replied by referr ing the inquirers to the enoyclioal of Pope

Benediot .

33) The Congree;ation of the Hol y Offioe in Jul y 1822 gave a repl y

touohing the case of a. woman refused abso l ution beoa.use she took the

legal rate. of interest for a loan :

""Let the petitioner be informed that a repl y wi ll be given to her q1.1es tion when the proper time al'­rives ; meanwhile . even though she make no restitution, she tray reoeive sa.oramental absol ut ion from her con­fes sor if she is fully pr epared to submit to the in­structions of Holy Seo.' ''64

Cl ea.r y says this indicates a "change of !l.ttitude" on the rt of Rome .

34) 'I'he Sao red Penitentiary on Ma y t5 . 1830 g.ave a reply t hat priests

who t each civil l av. alone is suffio ient title to interest should not

be den ied absolution provided they be prepar ed to obey the deoision of

the Churoh .

35 ) Pope Pius VIII on August 18. 1830 gave a repl y to the bishop of

Rhei ms regarding priests who although personally believing it nora

probable the interest was unlawful absolve penitents oonfessine; usury

if these penitents profess t he i r willingness to yield obedience to the

Pope . The Pope answered "'non esse inquietandos" . 65

A repl y approved by Gregor y XVI Augus t :31 . 1831 to the Bishop of

Vivers adds nothing to our knowledge , merel y refer ring the questioner

to the repl y of Pope Pius VIII as above . 56 In nn ansY!8r given on

64 . Ibid •• 169 . 6 5 . 'j).'""f 610 • 66 . D. 1611 .

42 .

43 .

1,~ay 13. 1831 the Congregation replied : "non esse inquietandos ", and

t he i nquirers were advised to consult the Encyolicals of Pope Benedict

XIV and approved authors .

The Congregation under Pope Gregory XVI answered that penitents

takint; moderate interest either in g000 or bad faith on the title of

civil law can be absolved wi thout having imp~sed upon t hem the obligation

of restitution as long as t hey are sorry for any sin and are r eady to

stand obedient to t he comlt'lnds of the Hol y See :

"Affirrr.llti va" durnmodo pa rnti sint stare mandatis Sanci:ae Sedie "67 "I n eundem sensum responsum est a Sacr a. Poenitentlaria. 16 . Sept . 1830 , 14 . Aug . 1831 , ll . Nov . 1831 , ll . Peb . 1852 , 23 . 1;ov . 18:5 2 , et as . Officio in resa 1 utione :51 . Aug . 1831 a p­probata a Gregorio 1."VI ••• "68

Ver meersch i n his artic le on usury in the Catholic l'illcyolopedia

refe·rs us a l so to the decrees of l7 . Jan .1938 . 26 . Mar . 18 40 . and 28 .Feb .

18 71 .

Mention is repeatedly made of a footnote decision, but none ever

.oamo , a lthough there were requests to' the Vatican .council tha.t the

ques.tion be settled . One petition to this effect was signed by twenty

American bishops .

36) The NeVI Code of Canon La.w ,. published in 1918 oontains the fo llo't'.ling

canon:

"S1 res fungibi1is ita a1icui detur ut s i UG fiat et postea tnntumdom in eodem genere restituatur ,

6'1 . D. 1612 . 68 . Footnote to D. 1612 .

ni hil luori ~ r~:tion0 i psius contracti , porc i pl poteat ; sed in pr aestatione rei f '\lnbi bilis non est per sa illioitum, de lucro l egali paci sc i , nisi constat i psum esse i mrooder a t um, uut etiam de luoro roni ore , 8i il.lstus o.c proportionutus t itl.llus s uff'ragetur."'69

69 .• Canon 1543 ..

44 .

Chapter IV - The Probl em and the Solution Proposed1

Our purpose t hus far has been t o pr esent the general historic

baokground of t he question with e. oomprehensive list of the documents

representing the mind of the Church regarding usury . We have noted

t hat the attitude of the Church appea.rs to have changed in t he course

of time . Many writers have become confused in dealing with t his

quest i on . but they are sur e l y excusable,. f or

"So t hickly are the ruins of shat tered systems piled around us that any attem.pt t o extricate our­selves f roll! the confuSi on must seom well - ni gh hopel ess ."2

To illustrate t his confusion in t he a t tempts at pl a.usible ex-

pl anations of' t he pr oblem, VIe huve one mora list who says th .. >,.t an

t heory which does not base the liceity of interest on t he contract

i t self and which does not de·fend exorbitant r ates of' int-erest can be

beld without ru."llling counter to t he Code of Canon Law. Immediately

after he "''rites this opinion. he wei ghs the various t heorie s proposed

and f inally aocepts the theory t hat Cleary holds , namely the theory

45 .

t hat , since present money is worth mor,a than future money , it is thel'e-

f ore· just to a ccept interest on any loan of money . How oan he say

t hat this is a theory which does not base the liceity of i nterest on

t he contract itself? Is not this of the very essence of the contract ,

t ho.t lilon0Y borroned at the pr esent will be paid i n the future? Has

1 . Her e we wish again t o r ecall t o the mind of t he r eader t hat 'we use the terms "usury" und "inter est" interchangeably .

:! . Clear y , 178 .

46 •

. t h is not a l ways been t rue . even when t he Church r e s t riotiolE c n usury

wer e muc h more· sever e ? fie have here . t herefore . Il direc t cont radiotion ••

There i s more than one Cathelic writer who. has a l so. , a l though les s

obvieusl y , invol ved h:i.r;dJelf in sU(lh a contradict i cn . J.-l l prcfess to.

aocept the doct r ine e f thc Church . but lllIiny sti ll proceed to justify

interest cn the basis of' the intr insic j ustice of interest i tseli' .

t hat i s . inter est cn the basis o.f the l ean i tsel f .

Let us cons i der t he opi nio.n s ef' t he se 'Wr i t e rs . 1Je have fi r st tho

theo,r y of Cl ear y a s abo.ve . This t heory , wa.s direct1y condemned by Pope

Innecent XI in 1679.. The Pope gi ve s a lis t of prepositi ons fall ing

unde'r the general heading e f "Le.xi smus 11 . Amo.ng t he s e is the f e llowing :

"Cum numera t a peouni a pr etios i or s i t numeranda .. et n ullus s it , qui non mai or is fl.l.ciat peouni am prae sente qUlUll futuram. pote s t cr editor ali qui d ul t r a sorterr, a mut ua.t ario exiger e et e o. ti t ul o. ab usur a exe usar i . " 3

I i' t he theery of Cl ear y is corr eot . t he Pope wa s "WrO •

The "t i me- va lue " theory may per haps be traced t o. Seneca . who. once

a cc used usurers of sell i ng t i me ; out the f irst defir.. ite r ecord we have

i'o1)nd of the tlt i me- val ue 11 theory i s in the s eventeent hcentuT"'J . when

Galiani i n hi s book "Della lionets." wr ot e t he fo llowine; :

"' Now in this respeot pr escm t and f ut ure s ums of money of equal amount a r e not o.f equal value , just as i n bill transaotions equal l y l a r ge sums of money a r e not of equal value at differ ent pl a ces . And j us t a s t he pr ofi t ef eXCha!lge (cambi a) notwith­s t anding thfl.t it seems to be an addit iona l sum ($0.­pr apiu) . i s in trut h an equalisa t i on whioh. when added to t he i'e ;r'ei gn mon e y . e s tabli s hes the equality of r eal value between t he two. eo is l oan i nt er e s t ne thing e l s e toon t he equalisation of the difference t her e is bc t-ween the val ue of pr esent and f uture Sums of money ' " 4

3 . D. 1191 . 4 . r'rom Bk. v .. chapl ~ 243 ff . a s i n Bohm- Bawer k . 49 .

The Pope condemned the dootrine t,"wenty- nine years after t he

publication of this book.. Perha.ps it was the direot object of the

condemnation .

'I'ur got in his book "Memoire sur l e pr ets a' JI..r gent" , written in

the eighteenth century , also used this "time- value II arg'\IDlent , but , as

Bohro.- Bawerk shows . this really contradicts t he other ar guments ... ;i th

which Turgot attempts to prove the justioe of interest . 5

William Smart , in his introduotion to his trans l ation of Bohm-

HawerJ..::. says:

lIDr . Bohm- Bnwerk ' s theor y of interest , then , is nn expansion of en i dea thrown out by Javone , but not applied . M6

17e might , therefore , place Jovons in the class of IItimo-va luel!

theorists , f or Bohln- Bllwerk holds thie theor'y also , a<imittine; he fou."1d

47 .

the II germs " of hi s view i n Galiani , Turgot , "and latterly i n Knies , who ,

however , has since exprGssly withdrawn it as er roneous . lt7

Charles Gids , a French economist, also supports the time theory .

That the theory is quite wides preo.d may be seen fr om the fac t that it

is contained in the popular Students ;)utJine Series in the volume ,

"Visual Outlines of l:i:conomics" published in New York in 1933 . The

8 !luthor o£l.lIs the interest "time- price . "

Fal lon adds ImlUY arguments against the "time-yalue " theory . Ue

says that it is often true that a present good is worth more thc.n a

5 . Cf . Bohm- Bawerk, 56- '7 . 6 . Ibi d., 7. 1li:GI., 259 footnote 1 . 8 . ROb"ert S. Ford" Visual Outlines of Economics (New Yor k 1933) . 0.7 .

4$ .

future good, but not always; and therefore , it is not alwa.ys true in

princi!>le . His reasons for saying that it is not always true are : first ,

i n a precarious loan the goods are always ready to be returned und there­

fore , being at t he disposal of the l ender, are to him a prosent , not n

future , good ; secondly , there is no privation except when a person uses

the good s . but often the /goods are merely .set aside until used , und

therefore serve no purpose whatsoever until that time . The lender , besides ,

gains advantages by a loan: he is free f r om all care regarding t he t hing

l ent ; from ull risk arising from its pos sible l oss; f r om the solicita-

tions of importunate beggars; and f rom the temptation of spending t he

wealth. Often peopl e pay to have money guarded. 9

Other ar guments must be added . If a. hundred dolla.rs at present

equals that Sunl plus ten dollars a year f rom now , then the ten dollars

is not interest on the prinoipa.l ; there is merel y a. return or an equiva­

lent of 'I'lhat was given. In other wor ds " it is merely the return of the

principal * This is the argument of t he "time-value" theorists . If t his

is true , then it is unjust fo r the borrower not to pay the ten dollurs ,

because he woul d not be returning an equivalent of what he received .

There is no one who has ever said t ha t t his was unj ust . Again, if some

nen thought that they were merel y getting back an equivalent , they sure­

l y would not lend ; they l end to make a profit on t he transaction. If

only an equivalent "mre return. the "moderate" usurer would never get rich .

Another argument may be dravJn from the fact that the "time- value"

theorists explain the contract of loan on the basis of a sale . If we

-9 . Fal lon , 321-2.

accept that analysis , we can a r gue f rom the oommon opinion of theolo-

bians ,. ,,,ho , together with St . 'I'homa s •. affirm t hat t he pr ice cannot be

made greater because of the peculiar utility t he thing may have for

t he buyer . If' the interest is considered a charge for t he money , it

is a. ohar ge made because of the peouliar utility of t he money to t ho

borrower who in this is t he fl buyer ft .

A theory contc.ining the "tit'!.e-ve.l ue" theor y a s a constituent

element is the " l1le.r ke,t v"'8.lue" t heory of Father Divine , S. J . :

"The ra.te of inter est under competitive condit ions ex­pr esses t he premium on the l!lIl. r ket value of pr esent over that of future income as det er mined by the f oroes (jf

1) time- preference " 2) i nvesullent opportunities , and 3) liquidity- pr efer ence . This objective ~uality of present val ue s of present and of future income as deter l1'.ined by the mar ket rate of inter est fulfi lls the requirements of equivalence of value dennnded by commutative justice . The rest r i ction of t he justification of inter est to t he ' extrinsic value ' by t he Scholastic anal ysis rests ul­timately either on a l ack of a pprecia tion of t he role of time in the determination of e conomic value . or on a. refusal to concede to time- preference t1 l egitimate func­tion in t he determination of the just pr ice . Though t he l att er may be defended as a safeguard against. exploi ta­tion in the case of isolated exchanges " it is i napplicable to the conditions of' a competi ti ve mar ket . "10

This is a new approach and deser ves fe.i r consideration.

Ther e ar e other writex-s who def end usury on grounds t hat are to

49 .

be r eferred to the essence of the contr aot . Among t hese Rr e those who 11

hold the o.bstinence t heo,r y, and t hose who hold the so a l1ci t y t heory .

These we c l ass toget her because one is merely more fundamental than

10 . Thomas J. Divine , S. J ., A. M., Ph .. D •• The Theor y of Interest and the Concept of Social Justice , an Historical arid Analytieal Study . (London ) r 3 .

11. Bohm- Bawerk names the f ollowers of the Abstinenoe Theor y OIl p. 286 .

50 .

the other . The scarcity of money is due , in purt at least , to t he ab-

stinence , the sacr ifice neces sary to · sa.ve it . These wr iters claiJ..'l that

interest is onl y u just rewar d for t h is abstinence ., a just paymerlt fo r

o. rare article • Money. however , was Gcarce a.nd abstinence was just as

necessar y f or saving when the Church was very strict on this tter of

usury . One of the r e·aS Ol1S why money is money is because it is scarce .

It is one of the e ssentials of money. as every eoonomist will say , that

the substance which is used i n the role of money be scarce by nature .

Besides the loan is repa.id ·with money that is just as soarce. If they

watlt to ar gue from the scarcity of money, we can retaliate with the

argument that th~\.t is (mother argument against the paj!me.nt of interest ,

f or it makes it so much harder for the borrower to reue.v . If the ab-• v

stinence or sacrifioe in a loan amount s to an extrins io title of "lucrum

oessans" or /ldamnum em.ergens" , then ther e is reason for the borroY/ar to

mako oompensation ; but. ·the Ilabstinenoe" t hat is required by the very

essenoe of the loan is not estilne.ble in price .

Fr om. the argument of Fallon a.gainst t.he !ltime- value" theory oan

also be gatheredare;uments against the service theory, whioh consists

i n the ol a i m that t he interest i s due a s a reward f 'or the servioe r ender-

ed . ne mi ght ar gue that the borrower shoul d receive interest f or the

service he does the lender . Against those who hold this "service fl theor y

we have the argument that Ver roeersoh offers:

I1This is , of course , .9. materialistio view of human service which when rendered in a spirit of nctive benevolenoe is r epaid by grntitude ; only onerous service , which oosts or represents some trouble or priv'ation is so l d or hired for money . "12

12 . Article in "Usury" in Catholio Ene . XV .

51.

The "service" theory , the "a.bstinenoe " t heory , and t he "time -value "

t heory a r e ver y cloeely a llied ; henc e , the arguments aga i nst t hem are

somewhat simi l a r .

Many 1<Ti tel'S have attacked the argument which St . Thomas us ed a s

h is chief r eason f or condemni ng usury . St . Thoma s 13 says i t is un-

l a.wful t o ohar ge interest beoause n oney is consUll),ed in use .. Those who

deny t hi s l 4 say t hat money has a second use distinot f r om the money it ...

self ; t hat t h is use must be compensated for t7 i nt er est , or t hat t he

money change s owners while the u.se irr retaine d by t he l ender.# who, t he r e-

f ore , has a right t o t he puyw£ut of t hi s use .

The arguments a gains t the second use are eviden t . St ... Thomas gives

t he exampl e of charging a man f or a q'l\anti t y of wi ne and then pl ac ing

&11 extra. oha r ge f or his drinking it . Money , wine , etc . have on l y one

use , namely , oonSl.nnption . A horse , r or exampl e , has more t han one us e ;

it has B. series of uses , each of wh i oh can be eharg~d for . Bohm- Bawerk

claims t r.s. t t he ooncept of a s.eoond use of money a rose f rom l ega l f ic -

ti ons . One l egal f iction vms t he i dentity between f ungi bl e good s l ent

and thos e r etur ned; the s eoond thnt the goods repl a ced had t hemsel ve s

been used and had not he~n cons Ullled . Due to SaJ.mnsius t he fiot ion 'Wa s

prool aimed a rac t . 15 The "use" t heo17, besides .. contradicts the aotual

phenomena of t he economi c world :

" ••.• i f , i n s e lling a. con:modi t y , any of i ts fut ur e use s a re r etained , t he ca pital va l ue of the commodity is reduoed . "16

13. 2, 2, q . 78 , a . l , c. 14 . Sa.lmasius , Turgot , Hermann , Kni e s . Say, Roscher , Senior , Courcelle ,

Seneuil . Wa gner , e t c •. 15 . Bohrn- Bawerk . 254 ff .• 16 . ~., XXXV I .

(1' 0 illustrate . the va l ue of a bond deor eases if a ooupon is taken

off .

Bom - Bawerk devotes n f1':r ent portion of his book to a refutation of

the !l U S O ff theory .

Breen speaks of the .rus e and prod\lcti vi t y of the loaned sign of

val ue" and compar e s i .t to rent f rom a farm. 17 Usury .~ he says I wa s a

lawi'ul existing institution, the only evil of whioh l ay in its exoe ss .

Regar ding the deoree of Vienna . he say s that H is disoiplinary :

"In t hat age the Church j udged that usur y s houl d be forbidden . and it wa. s f orbidden ••• The Church has ne,'er deo lared t he. t equitabl e usury be intrinsica.lly ·evil . "18

For the refutu tion of t h is last sentence " we simply poi nt to the

ml.UlY times t he Chur ch r-.as i nsi sted on r e stitution of usurious cains .

(See Chapter I II of this thesis . )

Ree;arding the Encyolical s of Po enedict XIV, Breen says :

"The po.nti fr in subst£t..'lce suppos es that there ex ists runon&; men a gratuitous contract cul led 'mutulxrn' •••• •••• The pontiff ' s encyclical is !.10respeculative than pr actical . He peints out that sinful usur y is possible . which all admi t . The enoyolical does not br ing in the absurd argument of the unproductiveness of money . He insists solely t hat contractua. l justice be confor mab le t o the nature of t he contra.c t . Ii oontract t hat the l aw and usages of men hnve trade gratuitous cannot be made t he means of profit ."l9.

"Today t he contraot by which men set their monsy to hire is not the ' mutuum ' of the ol d Roman law, but that whioh the aforesaid law called ' locat io '. 8. hiring f or rent . In such contract a man does not deprive h imself of the proprietorshi p of t he t hing loaned : heallows . nnother to use it for Il stipul ated rent .• "20

17 . Breen, B. E. II, 411. 18 ., Ibid •• 4'i8:' 19. Ibid ., 420 . 20 . Breen, ~ II , 421 .

52 .

}._ Ii ttle further on Br een writes tha t t he ovmer ship of the money

does not change in f\. loan:

II . man pays taxes on the money whioh he hl'ls loaned (18

upon his 01m property, which is temporarily serving another .. The fact that the borrower may dis pose of' that sign of "'Tal us a s he wi ll i s not a proof that the ownersh i p ha.s passed to him. He may i n t he .same way till the la~das he wi ll of a farm for which he pays rent . "21

Thi s argument s.gainst the change of ovmership is an argument

a gain against the ver y essence of the lImutuum".. If we £ldm t t hat

t here is no change of o'lmer s.hip then t here i s no differenc e bet-ween

this contraot and t he contro.ot of "lo·catio ll• The argument in favor of

t he change of ownershi p is e lementary.. "Res perit dOmillO . lI If A lends

to B and B lose s the money , whose money was lo.st ? Does B go to A and

say : "Bad l uok f or you. I just l ost your money" ? or l1Somebody stol e

your money" ? If ha did , his sanity would .surely be doubte;d .. B is

sti ll expected to pay be..o k t he loa.n . Tb£lt he has lost the money i s

uni'or tu.YJB.te for hi n , not f or A.

Other aut hors have made exactly t he same mi s take . In fact , one

53 .

of the gr eates.t oauses of confusion i n the whol e question is the fai lure

to di stinguish between contr act and contr aot . The Church did candel!"!!]

the taking of interest on a loan of money wi t hout an extr insic title of'

taking interest ; the Church never condemned the taking of profit on

capital in l awful investments \!vilere the ownershi p ·of the money is not

transferr·ed .. Sinc e oap i tal i ncreases produation , it is anti t I ed to a

share in t he profits . The Chur ch has encoura.ged partner ship and in­

vest nwnts in useful enter prises . It does so today . 22

21 . I b id ., 423 . 2 . See the "Qua.dr agesimo .Anno" . no . 51.

John Loake i n the seventeenth oentury said that a loan ,\,,180 5 t he

same as rent i ng . Tur got23 said that money c hangedovmers in a loan ,

but t he value did not . Adam Smith held (in different words) that t here

vms loan interest because t here was natural interest.

Those who held that money is product ive or "virtually productive"

are among those who are wont to oonfuse contract s . In reading the

'Wor ks of ll'.any of thos e who hol d f or thiS 'theory it is almost impossible

to tell if they have any idea at all of the difference i n cont r act .

Others are olear on the subject ; and if the "virtually productivity"

is rightly unders t ood , it off ers a possible good solution to the whole

roblem. 24

54 .

e shall discuss tho "v irtually productivity" theory a. little later .

Fir st we wish to consider fl. fow other opinions .

Ballerini makes an entirely false a.pproach t o the problem. He

disrega.rds the faot t hat j ustice is n virtue demanding external objeo-

tive equality ; he pl aces the right or wrong of interest-taking in the

inteut ion of t he lender, t hus making the whol e Il'lntter a. subjective thing .

lovel a.nd Modeste claim that the Church merely tolerates an evil

in permittiug interest on loans . In Canon 1543 t he Church says : "it

is not pcr illicit" , which is suff icient evidence to show t l">.at these

2 '" v .

2", •

t ote t hllt sonte numes appea.r more than once in our list of writers r epr esenting varioues theories . Sonte merely gather eoll the ar gu­ments the~' can against usury . some, even oontradicting themselves • .fUrlong t he .. Titers "Iho cla.ss money a s "product i ve" or Ilvirtually produotive U we have the follov,ing : St . Antonlno . Rosoher# Cathrein.' Slater # Breen . Ryan. Vermeersoh. O' Brie,n and m.any others .

55 .

')5 theorists are wr ong . ~ Tho Churoh could not toler ate sOT'1.ethine; whi ch

is r eally unj ust .

Bacon and Molon said t hat interest v.ras e. CGcia.l necessity. Baoon

said it '1ms unavoidabl e be onuse of t he ho.rdness of lllen I S hen.rh . Me lon

mer ely na i d it 1vas Il neoetlsity and l eft it for t ho canonists to rc-

concHe their views vlith this necessity •..

Finally \<IC have t he modern "man- i n- t he- street" objeotion ,toot Ulen

may use, their money a s they wish , may do as t hey like with t hings that

are their own . This is ~mother phase of "r ugged individualimn" and

j ust as much a gainst the tcac hi~s of Christ a.'!1d t he Ohurch . Man is

only a steward and not annbsol ute lord over hi 's possessions .

There are t ho'se 1':ho t hink that there is risk of loss of principal

in every l oan and ther efore this can be us ed as an ext .r i naia tit l e

j 1.lsti fyi nc; inter e st i n ever y c as e . To t hi s Vi e oan ans\':er t hat t he

risk is not a l ways present ,. e specially i n seoured loans ; hence , no gaD-

eral 8.rr;1llllCnt for interost can be drawn f r om t h is t i tle of risk . To a

oerta i n e·xtent only~ ther .efor e . is this t heory ,correct , but we e.r e

oleser to t he t r ut h heoause t he argument is based on extr insio title .

Returning t o tile virtual produotivity theorists , W~ must di s -

tinguish t "VJO olasses , ODe of which is orthodox and the other of wh ich

is not . Those of the first class26 have u the ory of' virtual productivity

25 . Among other vJri te"rs very strongly opposed 'to usury we have : Wilson , Jewel, llirabeau . Hoheff (who goe s so far a s to claim the Church f ormerly forbade all profit aD capital , which is mani festly fa lse) , Ga squet , Segn ieri , Padovano , O' Toole , and D-enevenisti .

26 . Bastiat IJ.'I!y probably be classed a s one of these .

whic h is practica lly equival ent to the universal extension of the

title "lucrum. oessans . " The others spenk of the productivit y of

money as opposed to the "barrenness of money", of Aristotle and St .

Thomas . That i s , these l atter theorists s impl y say money is pro-

ducti ve and t her efore inter 'est l.TJtly be taken ; while the f ormer , more

oo.rcful in their stateu:ent:> . say t hat today poney can a l \'JIl.ys be in-

vested in. a pr ,oc1uctive venture , uoother efore the man who IOOkes Ii

loan has a r i ght to interest on t he title of "lucr um cessans " . This

is very probab l y olose t o the t r uth .

The theory of those who say money is produc t ive and do not di s-

tinguish whether i t is the borr!;lVJer or the l ender who put the money to

productive purpos es , is condew.ned direot l y i n t he ItVi x Pervenit'* :

IINeither to justify hlmself of this offen se may anyone allege .ut hat the inter est ••• was de manded ••.• of a rio h :man, who will no t keep t he money idle , but wi ll use it to increase h is wealth by buying lands or by profitable traffio . HZ?

The point tha.t these men fail to. oonsider i s tha.t the ownership

of the money ohanees in 11 loan ; what t he borrowe r does with t he money

after it become s h is does not enter t he question .

1'hi s is the error in the doctrine of those who. distinguish a s

Fa thar Coughlin does todE'.y . between IDans f Dr product ion and l oans

f or consumption, pelmil tting inter est onl 28 on the f ormer ,.

'"e have . furthermQre , some ViT i tars who. baDe t he pre:;ent pe.r n iss i on

56 .

of usury by t he Church on the universality of presenoe of extr insic tit l es

redutHlb l e t o two , damage und risk .

27. See no . 27 in Crmpter on Churoh 28 . Others holding this opinion are

Ward , etc .

They say t hese titles &F'e a l ways

ootrine . Calvin, Claudio- J !lnnet . BaUoo ,

present toda.y" while they wer e not alwa.ys present f ormerly ; henoe"

no general permissien ceuld be given befere cenditiens became what

they are teday . 1'his is in line with the teaohings ef the Church.

57.

Some hold t hat the civil l a.w is in itself a. title giving the r i ght

to interest . Others ebject to' this , claiming that the oivil law is

merel y all indication t hat extrinsic titles a%"'9 present . Others deny

tha.t the oivil law has any validity ter argument for interest ,.

There are these (e . ~ . Cl eary) who object to the opinion ef the

universal ))resence of extr insic titles toda.y . Even these are present

in the gr eat maj erity of cases •

.A.:n0ther possible colution to the probl em would be to' comb ine the

tv;o epinions of extrinsio titles and civil law titles .

This theory woul~ m;< il.ltain that since extrinsic titles are present

in most cases , the small number of contracts not influenced by extrinsic

title is sufficientl y and justly covered by the titl e of civil law ~ for

surely the state has the right , i n this slIi.Elll number of cases , to change

the ownership of a proportionately small amount of money in the interest

of the cerm:on good . The state exercises this right i n inceme taxation;

a more or less direot alienatien is seen especially at the present time .

when the state takes from those with high inoome s and uses such a large

portion ef this money directly to sustain the lives of those whO' are

impoverished . Such a lionation of property is per miSSi ble as leng as it

does not ameunt to cenfisca.tion . e say , t herefore , that t he oivil luw

is surely title in such a small nUIllber of cases .

The obj ectiom \lr.ich Noldin offer s to the oi vil law as a general

title ar e net oenvinoing in the light of the solution offered nbove .

He writes ns follows:

"Verum haec explioatio non snti sfacti : naIl (a) l e ges ciViles per mittentes luarum 'ex mutuQ iam existebant eo tempore. quo ec cl a sie. foenus adhuc reporbabe.t ; (b) in pl erisque r egnia l eges civiles nunc pe r mittunt lucrum illi mitatum, quas qiudem leges ec c l esie. pr obare nequit; (0) eoo l s sie. n ul­libi pr ovoco.t ad l e gem oivilem veluti CIlUSQlil f oenus ooher~est&ntem, sed indepe:a.dentur a lege oi vili 11-Iud permitti t . "29

Regar d ing Noldin ' s f irst a.r gument one oould answer t hat t he time when

the civil laws be g:a.n to permit usury , extrinsio titles were not uni-

vorsally pr esent as t hey are t oday . lienee " the Churc h could not per mi t

the oivil law to enter and a lienate property, f or s uch pr ocs.dure coul d

not at t hat t i me be j udged useful .for the common Good . The Churoh .

further , was in a pos ition a t that t i me t o prevent t he oivil law

permitting usury from s pr ea.dinG too r a pi dl y ec She . t he r efore , withheld

he,r approva l of' suc h l avls .

To the seoond a r gument the a.nswer is that this is tho r euson we

mentioned t hat the state con al i enate property i f it doe s not a.mount

to oonfisoa tion ; the amoUTlt must be reasonable , f or rio l aw binds unl ess

it is reasonabl e . Iva "Jill notice t hat the Churoh in Cimon 1545 says

t hat the l egal inter est may be taken "nisi oonstet i ,?s um es se i mmodera-

tU.llI1t

•

To the t hird argument one could answer t hat absenoe of such mention

is not n proof that t he Chur ch is opposed to it; i t merely shoVJs that

the Churc h was prudent and cautious fl S it might well be in suoh a matter

f or r eas ons that a r e obvious . It i s not quite t r ue , lllOreover * to say

"null ibi ll• fo r t here i s a. probabl e r eo,oOlition of civil l aw a s a. tit l e

29 . TI . Noldin, De Praeeeptis (Austria . 1 (21) , n . 586 .

58 .

i n a n instruction issued by t h e propaglL"lda in 1873 :

"""even i n t he absenoe of other ti tIes such as lucrtb."ll cessans . etc •••• t he mere titl e of the oivil law may be taken as being i n pr aoti oe quite suf­f icient ••• so l ong as the quest ion remains undef'ined by the Holy 3ee . I "30

30 . Cl ear y , 1 75 .

59 .

60.

Chapter 'V - Co.no lusion

That t he whole quest.ion of interest is e. vital r adoMl prahl".

may be s een f rat:! the request of the bishops that t he quostion be more

deopl y studiod .1 Let us consider iXl mor e detail t hia M poot of t .he

ti:ilClines$ of the quostiQn .

PO;?O Leo XI !! in U:e Itibrw 1Jo'Varum tt Da.:l.d t hat tho evils of the

economic ordar· v,ore inorensed bJ ItrupB.cious u,oury" '\:ihion. o.lthouCh

PO'{) than once eon<1onnad by t ho Church .. is nevert hel ess \1l1.aer Q. dif-

fel;'ent 1'0 but with t he snue ftuJ. lt ~ Gtill pr acticed bv Ilvnl':i eioull o.nd

i n2 C.:r-CH'l ?:nj'~ :t::lCll.

Irus!llc-1n i nterprots thi!! 0.£ retorrinc to "loan tlharks u• or ta!dnr;

US~I in n -v,idal' sense . as flexor·bite:nt profits aoquired by the capital ..

1st produoers a t the oost of' tho l aborer or of t he Guffer ing publio lO uS

Fallon gives exr:unpl es of modern artifioes oonoealing usury :

!lror exnmpl e . the loose of cottle f or oM ... tia.!!' of tho profits •. tho nignllture of' aol-:nol, l oogeoont f or EltlltlS notaetunlly roceived " Suoo(HlSlve increase i n the rO-to of intero.st at eaoh renewal of a loon when it J:Jatures . o.xoossi va or.nJ{;Gs for the costs in mnking out I GQll

per .• ate •• del1:very of £oods s.1L",ost vnloo1ess and invoi oed nt tt6"t'y hiGh rates" advanced pnyments of i n­terest or dlsoounts . the &iving of a ptn'il'l or ~eoUl"ity of n volue super i or to the sum advnnced whioh i s acquired if" IlS it of ten happens " the borro\,lor does not :my as he agreod to do . ot.o . "

u.sury is r cuup/lnt tods,y in ow presQllt orOOi t syatom; It is present

in tho i m;:oral pr actioe of Iilukint; l <mns in o.Z'edi t tlOllOY und QeMll.cing

110 Seo Introduotion to thesis", S- ... 2. Pope Leo XII!. Rerum r ovnrum (Rome. 1891) . no • . 2 . ::i . Rav . Joseph IlU:Hl1·eiD , S .J . , Tho Cl'.riatlnn Soci a l l~l.l':!ifecto.

( t5.1TIl.'mkea 1931) . 45 .. :In the wider sense i n whioh be UGeo t he tem be defines it as nan unj ustifiable increase, v:hott{el' in the fom of inter est a t OnG tine or i n the form of el't<H~ssi vo prof'i t tlt another . lt

.. 46 . 4 . Fallon. 52'1 ..

61 .

ptl.yr"..ent in ren} IllOney • .5 and in the syactemOIf bonds &.nd ~ol·tgages I the

unool1eya,ble dobt basts of the modarn economio stl"'Uttture; in the ~!hole

system ths.t is prosorr"Vinc tha.t unequul dhtribution of' woalth thnt ho.$

bTo\~ht collapse and ruin t o' model'l1 economic SOGiety •

. 0 be.ol~ of thG se.cured 10M ie tho dosit"o tor irl"caponaibl e end

unq\.1alified ownershi p .. Tho bishops wrote that:

If'I'he inCrt:ltHdng r -ntio ot debt to total ,"001t h hun al.no Im.d ito influonoe 'in lecsor...inl4 the rO$r):QncibU1·~ and advantage wl1ioh ahould o.tta:ch to the o\'luc.rship of propiJl'ty _ It nnkOG £01' inoeouritv .• r46

.Sk ilme;r projJO'ses e pl an "h1c'b. seems very r.looh i n nocord with the

1llUld of the(.1.uroh~ TIo I1rAlyzee the ru:.ruships cauted by dobt 7 nnd

t1ropos " "'0 total abolition of tho ol'edltor-dc:btor I'olatiOl1.sJ1ip. He

would l:'Qpl o.oe thi ~ by pa: 't tl>21'ohip relations .. Bonds l10Ul d be replMed

i:lj ?t'oferred stooks . .ven short term loans would be 1:!LI.<lo in tho :fOl'fll

of n partool"'!lhlp with equity ban"" ..

Cronin o,Otmnontson the plru'l. as roll-awe 1

UBis t heoric!l seem to mer it n:ost. ser ious cOllSicel'otion l-om atudentsQ,n Doney pr obl alills . Today o\'mershi p seo

to b~ fi ghting n losing batt l e againat ereditorship, •. "e

v .. In the prncti:J9 , f urth.ermore , of oontr't..c t iDb with Ilchenpff dollllt'G , dobts t hnt ll'lust be repaid with '\ieur ll dollars o..S v.'Oll sa in the crletonoG of debt s 'which have outlived as.cot~ AOQuireo with bor ­rQ';1cd k'l;('Jnoy" as ' Fot hol' Couchlin (Hmtende: "

5 . Chri otiu:n Att.1 tude . '1 . lIo\7 u.l arming the debt oituution 1$ fr.ay be seen ft'om tho runt t l:nt

in the. Unit.cd States in e(ll'l~r 1938 debt ele inw existed ngninct n.t I Gllst huH' of tho '1J'a,loo of t.11 tatlGihle proporty . "Tho orloortship of do~tcla,iwfl 1tl e l O1:ily I:tut e ta'ely cl 1spl~cinh th~ rospot.!.ilbl o o'WrWli"!Jblp o-f property • •• If H1cMa:-d ' D., Skinr.or I ' Dobt Syatet! o~ r::ropGl"tz Systap",. (t: .y . 1938 ).,. 9 . POT eood piotW'e or the oobt situation CF .. lJo.v.:id Coyle"s UMor.1I:OOn Sense . 86...sS ..

o. Cronin. 20!3 .

62 .

In :lUoh a syateIl'l privileged forms or itlvElstr.wnt would 'ho abolished and

OOLey \'lOuld flow into socially just contr acts . Botl.dholdora \'iould no

lonem' mnko forec losuros &l1d thore vrould . therefore, bo nO cm::.soqUGllt

depreasionof valUO$ and othor evil reeul t.s ..

Ryan suys that t,;ocilll utility j uoti£ied ihteroat taking i.o the

cevonteenth anC eighteenth ce.r:turios . but that this is no longor t r ue;

but t he fltatta i!.J otill justified in pl3rmitting it booaus~ it is not

suro tht,t abolition ,",ouldbe socially expedient or e

raotically Doscrible .

IIe claims thnt this sooio.l utility of interost ilS no loncer a z:ood

lJ'l.rgumont be:l.:tuse t ho Min t.lD.use of the depr ession ,,7llS tho 1M}:: of.' r J:).ElS.

ptJrQhasi ?Qusr and tho execss of invosting power in the ~~dc of t he

T'Jal1 .. to-do and rich.. Tho mnin remedy, . thor efore. is to cor-root this

aladj unt!t~n:!t .. More -of tho produot reust go to labor e.nd les'S to capital .

Thus far he merely follavolG the general lina!'} of thoueht of the 1 on-

cyaliculs . His rtioulnr proposel to effeot thiGoht\nge t he Pope thi.nke

:so neoessary is as f{)llQ\l1ll;

tlTho ovmer of. capital must give up the expeotation o~ six per cont .. Hot only must the interest share of the otivc oapitalist be reduced but also the rato of

interest on industrial loano . The crushing btu'den of industrial dobt m\ZSt be lightened . either by partial oancellation or by drnst.ic lowerin{'; of interest rates", In many <luses L'Oth f o.·me of reduction will be mporo.tj,ve .

liThe interest r ntco thnt prevnlled before the de­prossion prod~cod 1:\10 fundc..mo!ltnl evils in our industrial system. Tho first wo.$ 1tusuf:floicnt .]nges to lo.bo~r# ruld thereforo. ir..ourricient purchasing po-..:or for oontH.ll:l;ltion

ods; henGe ,c.u Ulmeo08snrily 10\" vnluG of business ., Tho second had eff'oot .. as tho croation of too muoh ot'.pit<l.l and cousequolltly ot d6btc and oapital obliga.tionc t hnt oould l'"ot bQ $uGtn.lnod . Tho debt ohargos could not be curried b(i}otmso tho industries could not sen ,suffi{;iont products . Suffi cient producb~ could not :rind a mur kat

doti .. • d (~v e ·· ;c on rOVl"ce ,; •• _ •.•

- '

bec!l.usc suffioient ':!kees o.nd purohasing pO\lJer \'jere 'lffithheld f'rOl::l. 10.001' and cowlcttod into !leW co.pitnl and t~dd:l.tio:ual cebb . o. ... tng to tho ir.­adequate production cmd sales Ilei the4 the intc}.'"eot or'tbe princ i pal coul d beadoquntely t alcen.oare

of . Since 1911 debts hava inerec.serl faster t htln production,.

IJ Indeed the quiokost way to rooovel"Y ~ the roost bcmei'i cinl pol.ioy f or themsel vosas wall as :for eve-l'y other element in the population would be adopted if business n0il tor the noxt two years sheul d fOl'Get ell about interest snd take onl y Guifioient profits fer a decent living .

"Undoubt~dly this ioa hard saying but I believe t hllt it represents tho highest praotioa.l wiedom. fll O

The cc.se aGt~.illat interost is. strGngthencd by the fantO' in the

oa SG t octav,. by tho nr t;\ltl.Gut t ro:n 11br:ass taoks «I :

"Todny .... rcgnrdl eos of tbeory. tho lav.l of' supply Ul'lO deltfllld I 'D makinG rea lit y oonform to Ari :;totlo •• "Wi1::h ~ clllioDll i n id l e r,;wde in theb~o tol1uy . interost r ates hnvG boon om-inking to zoro. Llnny OOnka '\.d.11 not (ii vo interest on c 0ZJositn . Short-tet"m g<:l'Ver nncnt ob-' ligations , 11nere i naurnnoo for I). r i sk is n t a. milnmwn,. yield l ess tbAn 1 ?Or oent a year. Some short- tom hills cnrried fl 5 lou as 0 . 025 pSI" cant interest;, in fact, nt one tina in 1'£):37 bunks let t he (,;ovel"'ntJent hllv e money without int€rreat" simpl y to g,nino. pref'cl~rod l?o$i­tion for the obtaining of new oec uritios . Sinca t here is little rl.emr.d for money today to furnish new indus ... tria:l ca~itQ.l , it is likely that interest ,r'Qtos, ,>fill drop stHl. Im'Vor ." l l

The beliof in tho just-ice of the l egal rate of interest beoauoe

it is datennined bv oompeti tiouand f ree contraot is anotheraapect

63 .

of tJ rugged i ndividuulisr:l " . Keynes nnd others hol d that t ho rote nl\':ll}"S

tends to rise too high. In Germany • .Austria ,. Hungary. and Switzerl and

Int'i$ wel'e pc-saed in r ather l'GCcnt tixaes whioh condo.oned interest rat es

10 . Pi' ,. John A. Ryan, Seven Troubled YenI' o (n .Y . 1937)", 1M •. 11,. Rov . John F . CrOnin, S. J . liThe ironey System in }5.Qdern Societyl! ill

SU!ll!!!Or. Sc hool of Sooial l.cti.on for Pdostfl , (;~UDdolein. I ll . 1938 ) Ir :210. .

64 .

thut tho dl·(!~tG.:l:1COS i n tho pnrticule.r ua~c did not juctif'o,{ (in oth~r

1<)01'00" o:x.tl"insia titles) . 111.e exo.mple of these 1m1s shoul d offor saLle

hoI? in the pruotical solutioo of the intel"Ost pr oblem.

It seem::; to 'be t ho nind of the Church that t he interest ratos

should bc lOvered as far us possible . 12 toot indi viduals should join

together i n nSGoointion for nutWi!.l assister.ce (fiUontea pietntis It .01"

Tlcrodit uUion")13 und that t he evil 01' i r responsibl e ami utlqualified

ownershi p f or profi tM nf;loH.:anod (inequitably hypothooo.t1:ld 100.ns at

interest ~ . 14

t:onoignor O'Toolo advocnt-o.s a. government 1nter est ... f reo loon ser-

. ... . ~ .&0 . . 15 V10.0 run like tho r-ostc.l oex'vice .Lor t he public welfare !'i.!'l(! conveni.enee .

"'ather Fallon udV'o(:ato~ as r oz:loaies for usurioUEl praotioos th

~ll crQdit in$titutio~, Good stem of produotion and diotribution,

lnzwnnco institution of all kinds , t ho promotion of il. opirt of lubor ,

ardor, and tr~ift, und vo~o.tional edueution . 16

Soddy advoeutes thut bunks bo r oquired to match dollul" f or dolli

of IJAtionnl t:.-Oney ~c.lnzt thoir liabill ties to thoir ohoQk tl.nd currant

aooount depos.itor s . Fnthecr Coughlin also favors this pl un ., There nr c ,

12. This is easil y gathored f rom whnt we have quoted fron ~r. n~~ and f rom the genoral proof of nQWldrageoimo Anno" .

13 . See note t o Canon 1543 i n t ho Code. It r afer s to the "Inter tlul .. tlpUees n of the First Iateran Counoil (See page 30-31

14.. !hit) i seviciont from tho Ci'AlTch t s {,;enere.l ntti tudQ on O't'.1l1Orsr.ip. Seo the "Rorum Hovar umu .. no .- 19 and n Qus.dr Q.gesm o ~", no. 4'7 _, 60 . 51 . ( 51 "Useful Ii wvaGtoontl:> ru-e r ,ecot:l!OOl:cled)

15. Rt . Rev. O. 13 .. O' Toolo , "Imort'll lOOney Br ooding 11 in Cntholic orker.> };re.y". 19Z8 •.

16. f\a.iloD ~ 327-8 .

65 •

l'lC'.lElVor , e.l'gumer.ts und lluthori t i .05 o.gnin:;:t thiG . de of ~\I·oc-edurG . r ". ,

l:uch lzore could 00 \7ri-ttQn on thio GeorQ a t; well as on :mAny othor

.:inta whioh ho.vo hoon meroly touched upon, but it in not v.'ithill tho

SQOpo of t his tt ... osis . The questio.:n of usury in rol ation to tha recontl y

olarified eoncept of Go~inl j W.l ti<lo , for atnOC {) t v.'Oul d t"-Ako an in ..

to-rosting stlldy <~ that i& the atudy of t he ~ of usur:y e.s oppoGed to

tl1tl vir tue ofM<lie.l justice. t:Uch workawai te the- rtnclentof !nO,ra1e

and ooonomics in this field of money, oredit , nnd interest. We are a.t

a turn1M point in history; it 15,1 importn.nt that we build our house on

rock n,nd not on sand~ that VIC· 1'0110\1 the H nes of solid dootrine .

The ni sdort of tho Churoh in the !)]fitter of her leGisl ati oll on usury

i$ IldntS,tt'od 'by t he eninent Br1t1shoooucclst . John l!.ayrard Keynes . 't'1hom

VI" . R-yall Quot-es 0,5 follOTI.l) t

ft r ltJ&s br ought up to believe t..hat t ho nt titude of' the medi eval Churoh t o the ra t e of' interact '111.S i n­oot'ontlyabaurd. and thtl.t theaubtle di $ousaions o.:llnad nt distincul,:;hing the. ret urn or llloney lOl.).t~~ f ro!.'!. triG retur n to active invedme.nt 'l'te r (} ~ercly j~auitiorU a.t ­teupt s to find u ru-aoti on.l e~capG f r om. f ool ish theory .. But ! now rend theeo disoussions as an honest . intol­l eotual e.ffort t o keo? oop.'ll'll.te what the cinosical tp,.eor has l nextricnbly oocz"tmed t oget her , t:II."Uifrely the rate of

ut Ol"est n.I1d thcmrc1nnl effioienoy ofoapi tal .. For now it GOa.oo olear t hat t he oluoldntionof n fontiul which should allow the sohedule of the ~rgillill ef­ficiency of otlpital to be high. "MI st \.lain:; rule and custom and the mol-a! l aw to keep down the rate of 1n­te'rest .'"l8

The !!:lox-lous oonoiatonoy of Churoh dach-'ine i s attested to by u

wr1 tel". who ha s mado & study of the relation batt-:e.en t he traditionsl

1"

teo.ohipgs of the Church on interest and the two encY<llionls <iRerulll

!;ovar.llU" Q 'lQuadragesimo ArulO 'J :

flTho sum ot the metter is that the teaohing of' thes0 t."t:;o gr eat eucyo1ieo.lo on interest reflects the Sl'.l.l:ae ",r ineipl es and "br eathes the snme s pirit '\';bich o.nimatea tho medieval doctt'inea o.f the Church or: usury and just 9rie0. that it r..8ots the &enuine ne<.;ds of our indua­b'i£l syattOlJl today. tl.nd thL1t it is in cQnforoi tho highost idonln of $ooio.l juctlca . tl l!}

19<j f.ytm. Seven Tr oublod Years." ZSS .

cu .

!Jibliogrnpbj

":.;! ,.

J:>hloy . -* . t/ ,«. ~ _"'V~ ''''''''''' __ ,¥''''''''';''-' ... "'" -3~40""'··" ___ ~_loo"~'W' _ '"'---"'--:1 . ~- -~"""-. -.r

Belloc . m.lnira» lO."!.oonoll'.iea i'or He1eu (n .Y. 1024 , ,

Bolloo ~ Biln!1"o , -_,.. ~w_.,._, _ ~ _______ - - -co - e! ( N. Y. 1935)

Benvonisti , J •. con .lUlJ11;y~i£l. _~~_ Usury ,enl

B-oorun...fuwo1"k.

firaen, Dr . A. S.» &.rf!.lO!lii~ed &tposition or the Four Gospels * vol . In (ll'1.1V'.atikae , 1028 ) .

111"0011, Dr .• A. g •.• Socioloe;i-cnl Essay.s , vol . II (Roonestel',. N . .Y. ) 1922

BurkD'» Ro'v •

Cnvo . Roy C and Coulsor; Uorbert fl ., .,A SoureD- Book f::lI' _ ~ __ ~. ____ y~_ oclo History (!';U\VUukeo, 19~6) ,

Cloory f Rtrv .• ?u.trick, 914)

Com;ay . Rev. BortZ"ll.nd L. " . ~hQ Qusot1pn Box, (fl .Y. 1929)

Co:ughlin, eV e Coorles 2 . , !.:oney! Qu-estions tmd }....nl:j'~tecr c (Royal Oak. >1101;.; 195G) ,

Coul>..hlin. Ro,, _ Charles Z." i'ii}y Leave Our 0m1? (Detroit I SS\})

Coyle , La.vi d Cusl::ltim:! .• U'nef.l.'imO'n Sonse (rins.hington 1956)

Cronin, 1'..eVe John F j. "The ~nGY System in Moder n Sooiety" IUld ·'(";om." l'!'ler oinl roclti.~ and the Control of' Cl'o:dit" i n S1.l!llll:.Qr 30400'1 ot Soclal Aation t or Priests, vol . II . ~ (iJiilde}ein. ill. .• 1938)

ronin. Rev . John F •• !lOur Lords and ~.storsn in ?!*O¢,eooi e ll or r'irst Social Aotion Conference l~l~nukee

Divinc. T'hotJUs F •• S. J •• Ph . D •• The Theo? of Interest ~nd tr~ Conc9£t of Sode.1 Justice ('London

. ' _ . . • $

rlub1t',ter. Rev . F' .

Fnh(n, ~ QV . De:.h . 1'hul,}:'stlonl DodyofChriat in the (Dublin. second edition, .195-<

5)

i

11

BihlioGraphy (oon •.

1"all on, ReV e

Fo.r£unl , mint-or<! , Cathqlioism, P roteatlmti srtl, and Go.pi b:tlie12 (E. Y •. 19S5) .

Ftc-oher . !rvinb • . 11:0 !:cn!?,Y :tllt;.sion (n .. Y. 1928)

Ford , Rohart S.t Yi su,o,l Outline of ~o.nocloe CU."! . 1933 .. - '. ( _ .. 1... - _

'u~f!jloin., Rov . Joa~ph, Tho Or.r1oti~ll Zocitl.l !&.ni1'a.nto (I3.1l.'Jaulteo 1n::;1) . .. ",",-

Jarrott, Rev . Bede ., S.Ant;onino end L~edioval f.eo;ootr.Ucs (Loncou In~)

1'OO<;),;:;-9n , Rev . Rt~:y.mot!.d A",,, Tm';lClr d Soeiftl Justioe, (US ,. 1 951 )

" " Noill , J olm T. tlllQ Gamer . lfulen ll., !fudievnl Foeudbook of Penrmee (N.Y. 1~,'2- ' .

. ahal . Roll .. 'Vi r Ci1, Christian Social :Ull.n ifssto, (YJ.h w .. ukee 1937)

Uiohol , Rov. Vir gil . mhot f£c onomios !U1d Fi ne.nce (St. Paul 1 936)

NeU ... Breun1;og ..

lioldin, Rev . vol . II.

P..ouo . H. Sohield:s , The ChUMh and US63 (or t he .k.'orelity of Five Par Cent) {London 190B

P.oss . J ., ~~t i s EC01lolirloa'l ( tfi1r.:aukco 1939)

;an, llr . John. A •• - , __ ":' .. _. _< _ __ _ .Y . 1 93.5 )

~yo.n. Dr .. Jo.hn A •• Dl::r!:%'ibutive Justice , 11m. and rcvie.ed .ed . (r.,. Y. 1~27j .... ' . .

yen. ur. John (us .. 1:)37)

Sohroodor . Rev . li e J .... DiSC~J,inurl De.cl'ee& of tho 'Genet'til Councils (St . Lours ' l ' 9) . . .. .

Schub e , Rev,. F. , Dc J ure at JUlltitin ( St . Franoia, td. secn3in)

Vert'-TC,orcch;, Roy. • .t:tl'thur #' .... ~ ~~ .. ,,_..... - .... _ ...... ""'Q ___ ..... _ .. _ .... ~'"'

Va!,:n'3or~(Jh . R(W . ArthtU' , ~';\le..GBt.1ona$ a\} J ustitia nm"l ea,. (13l"'useels, 10(4)

VOl'moersch , Rev. Arthur, fttinUl-Y° i .n C:e.thollc Enel21opediU ...

H

'}oodwar d ,. Donal d , nnd Ross , lliro " .A Prir.:er Qf Ilono» Zlid ed,,. ( r; ... Y. 1\135)

athol' wor ks us ed in the pl'epnratioll of t hh thosis \>'erG the SMl'ed S<lr1pturo.e, the "8umrA Thoologian"' of St .•. Thomas, the Code of Canon MV/# l1enti.gey l s I'tEnuhb' idion i>'ym.bo1 or ut."u", Migne l s uFatl'le:rS u " nnd SQ'rlC Enzlbb translations of the Fathers , the "'fheologia !:.oraHs ff of St . Alphonsus , the Loeb GlaG3iaal Library. and the pnpal. Gncyelicala , "Rerum 1:ovtU'umtf

!lIla "Qtmdr ngesimO Anno»', as \Yell as the tlChri&t1nn Attltooo on l300ial Problem::.:" l 'svued by tho Ad1'l!inistl"ati V~ Boo.rd or t he TI. C .. r; .c. (U. S • .'lrahbishops and Di uhops) ..

PfJlllt'hl ets

Ot}Snl'!l.. Fr..ank, Cr -adit tinions ~ (g .y . 1938)

'nlor r.int'; " Jos~ph F . , A Primer of Sooinl J u.stioG, (j!:'Y. 1938) L · _ .

SId U!le;r> , _ RiQhnr d (1:. Y. 1 ~33)

Per:iodioal:;

B~k. !ia,,-. Andr-ow, ItCnlv1n, Usury s.nd. the Rei'Qr mnti.on'" in Claro: Re ... viO\'I, XV, 1038, 56-40 . - . .. .

Book , Re v. ndrew, "USUt"1 OM the 'ihaologinna" in Dublin Revi~. (1956) 199 :65 ... 74 .

Coffey t Rev .. P., flCt\pit.nl O\;.ne.rship and Cradi t Controll! . in Cl ers;y M vi.ow. (19S1 ) 1 ~262-263 .

Coffey, !le-.r . P •• "Tho Eoollolllitr '({orld Criais : SuggOSt10DI!I T~v.l1rd Dingnoliis 0.00 Rcloody". in Irish oo,clesiaatioAl Rseord, XLVIII , (1936) I' 151- 141 . t . - . . ..

CUTi!!1inn . R • Damian, "The :ganrt of the Modern Problem of Keney Genesia fl

in ~ub1in Re'l1icw. XC"v (19S6 ) , 516 if' .•

!!~onGelm, J . P . " "Aquittn.fI and tho lUllionair-es ll i tt .Ce.thol1c Dle<Ul~ , (1959) III : 9 .. 11

22 :69- 90., "Tho tazis.lation of 'the ChtU~Qh on

i v

Ecrt<h J ,., M." "Iiil1torical Evolntioo oJ: tlro C$tho1io 'TO~ohinb on Ul'rury~ , in lri $ll ~QIO:t.:ianl ~a~rlx '1" (1910) ,. !l-11

Harty,. J .• N. • .• IIScnarJ 3ccle!!iG.13tia ~.-d 1'ooologi(}£l,l A6'i?~cts 01' th~ Co:tholie TeMhint on Uauryt. in lrt$l~yh.e-olor;ioal Qu~ter:~Y:1 VI1. (1912) 460-413

:ClattShlin. Rev,. J -. ., nusury' &u"o JudilH~1I Ie i n Cler-Q R'$vi~ U (l S35) - 23 ..

MoLaughlin" R<llv ., J .. , f<Uau~and Profit Eartllng,1t in 01~:l'· tQ'. P-;Sv1,g,~i xn (1936 ) . 201 .. 218 . . . .

(}t~oole. Rt . ~ev. G. 13 .. , "'Immoral !!oney 6'r eedtDC6 1n ,£.G;tholio iiorEer, llo'ptoU ... 1.9.38 tU'lO. 1!.ay •. 19S8 .

t-Aei'er ., Rev .. Oi!ul r " "Gtu-istim.'1 Thought u..herent in tMt Uontes PietRtis tltid the Pniffeisen SOQieties II in Centr al.J31ntt IUld Social Ju.stioG nAXr ( 950) , 40 ... 3 . .. .. ' . . .. . . .

i.v

li'art<;. J .• l.l.,. "m...storicel Evolution 'Of' the ClltnolifJ Too.~k'.in& Ol'! 'UB'..ll"y" , in lcl"hth Theol-04iqal .~t).rtp;l'lY V. (1910) •. 9-n

~''' '~tYJ J . U •• I·SOUl" BeclcniC\ntiu fmCl 'l'hGolog,l oal }..spect;s 'ot tri...6 Cetholie 'rooohing on Usury" in !riah 'rh~-olor,iofll QuIi\Y'"er;ly~ VI!. (1 :H.2 ) '160-113 . .

t!l.a~~hl1n. Rev,. J., llUsur.1 &u'b Jud1oo" , i ll C,lsl"Q' .Review nt (lSS5) 9 ... 23

!1o.Laughlln ... ReV' . J., HUsury 1i\J:.td Prof'i t ~rni~n in ~1{;11'Q:' Rj:l" ti~,:. xn (1936 ) ,. 201 ... 215 .

O; ~oole"" Rt . ~ev. G" B_,, " !lJ'.i!:1Oral )(oney !Jl'e-edillG8 in Gn:t holio 'Nort e!. April . 19Sa and. May .. , 19.38 (

haef'er J Rev " Odulf .. nCIJriztit'.n TI1Cught Inhal"ent in th~ Uontea P1ete.tis and the Pnii'feisen Societies tt in Centrnl-i1lattand Soo1alJut1tioe nul (1938 ) ~ 40 .... 3 .. .. . . .. . .