Usury

Usury now means iniquitous or illegal interest, but formerly meant interest of any kind on money lent. The Mosaic law forbade a Jew to take usury from a fellow-countryman. Greek and Roman moralists mainly disapproved of any usury; the church fathers, the popes, the canon law, absolutely forbade it; hence the Jews had a kind of monopoly of usury at the Reformation. Luther condemned interest, while Calvin allowed it. The moral question is still debated, and moralists such as Ruskin have waxed fierce against the taking of interest. A long series of laws were passed on the understanding that usury was wrong, but admitting many exceptions; the usury laws, thus doing much harm and multiplying legal fictions, were finally repealed in 1839. From that time till 1900 there was practically no law on the subject, and any amount of interest could be enforced on agreement or contract. In consequence, however, of numerous cases of oppression by professional money-lenders trading under various names, and the enormous rates of interest and other charges exacted, a commission was appointed by the House of Commons in 1897-98 to inquire into the subject. The result was the passing of the Money Lenders' Act, 1900, by which all money-lenders are compelled to register their business names and addresses, and must not trade in any other under heavy penalties. When proceedings are taken by a money-lender to recover money lent, the court may take into consideration whether the interest and other charges are excessive or oppressive, and if so, may set aside any contract and give an equitable decision, and may even order the repayment of any oppressive charges already paid. See INTEREST, PAWNBROKING.