Of Usurie

Many have made Wittie Invectives against Usurie. They say, that it is Pitie, the Devill should have Gods part, which is the Tithe. That the Usurer is the greatest Sabbath Breaker, because his Plough goeth every Sunday. That the Usurer is the Droane, that Virgil speaketh of:

Ignavum Fucos Pecus à præsepibus arcēt. That the Usurer breaketh the First Law, that was made for Mankinde, after the Fall; which was, In sudore Vultûs tui comedes Panem tuum; Not, In sudore Vultûs alieni. That Usurers should have Orangetawney Bonnets, because they doe Judaize. That it is against Nature, for Money to beget Money; And the like. I say this onely, that Usury is a Concessum propter Duritiem Cordis: For since there must be Borrowing and Lending, and Men are so hard of Heart, as they will not lend freely, Usury must be permitted. Some Others have made Suspicious, and Cunning Propositions, of Bankes, Discovery of Mens Estates, and other Inventions. But few have spoken of Usury usefully. It is good to set before us, the Incommodities, and Commodities of Usury; That the Good may be, either Weighed out, or Culled out; And warily to provide, that while we make forth, to that which is better, we meet not, with that which is worse.

The Discommodities of Usury are: First, that it makes fewer Merchants. For were it not, for this Lazie Trade of Usury, Money would not lie still, but would, in great Part, be Imployed upon Merchandizing; Which is the Vena Porta of Wealth in a State. The Second, that it makes Poore Merchants. For as a Farmer cannot husband his Ground so well, if he sit at a great Rent; So the Merchant cannot drive his Trade so well, if he sit at great Usury. The Third is incident to the other two; And that is, the Decay of Customes of Kings or States, which Ebbe or flow with Merchandizing. The Fourth, that it bringeth the Treasure of a Realme or State, into a few Hands. For the Usurer being at Certainties, and others at Uncertainties, at the end of the Game; Most of the Money will be in the Boxe; And ever a State flourisheth, when Wealth is more equally spread. The Fifth, that it beats downe the Price of Land: For the Employment of Money, is chiefly, either Merchandizing, or Purchasing; And Usury Way-layes both. The Sixth, that it doth Dull and Dampe all Industries, Improvements, and new Inventions, wherin Money would be Stirring, if it were not for this Slugge. The Last, that it is the Canker and Ruine of many Mens Estates; Which in processe of Time breeds a Publike Povertie.

On the other side, the Commodities of Usury are. First, that howsoever Usury in some respect hindereth Merchandizing, yet in some other it advanceth it: For it is certain, that the Greatest Part of Trade, is driven by Young Merchants, upon Borrowing at Interest: So as if the Usurer, either call in, or keepe backe his Money, there will ensue presently a great Stand of Trade. The Second is, That were it not, for this easie borrowing upon Interest, Mens necessities would draw upon them, a most sudden undoing; In that they would be forced to sell their Meanes (be it Lands or Goods) farre under Foot; and so, whereas Usury doth but Gnaw upon them, Bad Markets would Swallow them quite up. As for Mortgaging, or Pawning, it will little mend the matter; For either Men will not take Pawnes without Use; Or if they doe, they will looke precisely for the Forfeiture. I remember a Cruell Moneyed Man, in the Country, that would say; The Devill take this Usury, it keepes us from Forfeitures, of Mortgages, and Bonds. The third and Last is, That it is a Vanitie to conceive, that there would be Ordinary Borrowing without Profit; And it is impossible to conceive, the Number of Inconveniences, that will ensue, if Borrowing be Cramped. Therefore, to speake of the Abolishing of Usury is Idle. All States have ever had it, in one Kinde or Rate, or other. So as that Opinion must be sent to Utopia.

To speake now, of the Reformation and Reiglement of Usury; How the Discommodities of it may be best avoided, and the Commodities retained. It appeares by the Ballance, of Commodities, and Discommodities of Usury, Two Things are to be Reconciled. The one, that the Tooth of Usurie begrinded, that it bite not too much: The other, that there bee left open a Meanes, to invite Moneyed Men, to lend to the Merchants, for the Continuing and Quickning of Trade. This cannot be done, except you introduce, two severall Sorts of Usury; A Lesse, and a Greater. For if you reduce Usury, to one Low Rate, it will ease the common Borrower, but the Merchant wil be to seeke for Money. And it is to be noted, that the Trade of Merchandize, being the most Lucrative, may beare Usury at a good Rate; Other Contracts not so.

To serve both Intentions, the way would be briefly thus. That there be Two Rates of Usury, The one Free, and Generall for All; The other under Licence only, to Certaine Persons, and in Certaine Places of Merchandizing. First therefore, let Usury, in generall, be reduced to Five in the Hundred; And let that Rate be proclaimed to be Free and Current; And let the State shut it selfe out, to take any Penalty for the same. This will preserve Borrowing from any generall Stop or Drinesse. This will ease infinite Borrowers in the Countrie. This will, in good Part, raise the Price of Land, because Land purchased at Sixteene yeares Purchase, wil yeeld Six in the Hundred, and somewhat more, whereas this Rate of Interest, Yeelds but Five. This, by like reason, will Encourage and edge, Industrious and Profitable Improvements; Because Many will rather venture in that kinde, then take Five in the Hundred, especially having beene used to greater Profit. Secondly, let there be Certaine Persons licensed to Lend, to knowne Merchants, upon Usury at a Higher Rate; and let it be with the Cautions following. Let the Rate be, even with the Merchant himselfe, somewhat more easie, then that he used formerly to pay: For, by that Meanes, all Borrowers shall have some ease, by this Reformation, be he Merchant, or whosoever. Let it be no Banke or Common Stocke, but every Man be Master of his owne Money: Not that I altogether Mislike Banks, but they will hardly be brooked, in regard of certain suspicions. Let the State be answered, some small Matter, for the Licence, and the rest left to the Lender: For if the Abatement be but small, it will no whit discourage the Lender. For he, for Example, that tooke before Ten or Nine in the Hundred, wil sooner descend to Eight in the Hundred, then give over his Trade of Usury; And goe from Certaine Gaines, to Gaines of Hazard. Let these Licenced Lenders be in Number Indefinite, but restrained to Certaine Principall Cities and Townes of Merchandizing: For then they will be hardly able, to Colour other Mens Moneyes, in the Country: So as the Licence of Nine, will not sucke away the current Rate of Five: For no Man will send his Moneyes farre off, nor put them into Unknown Hands.

If it be Objected, that this doth, in a Sort, Authorize Usury, which before was, in some places, but Permissive: The Answer is; That it is better, to Mitigate Usury by Declaration, then to suffer it to Rage by Connivence.