,,usury3    ,,or    ,,int]e/1 ,,premium 
,,& ,,disc\nt4      ,a ,,lecture        
,,deliv]$    ,,be=e ,,! ,,/ud5ts    ,,( 
,,critt5d5',s    ,philadelphia          
,comm]cial ,college1      ,,by    ,s4   
,h4 ,,critt5d51    ,attorney at ,law1   
,,consult+ ,,acc\ntant ,,& ,,pr9cipal4  
,,philadelphia3    ,,r+walt  ,,br[n1    
,,/eam-,,p[] ,,book ,,& ,,job ,,pr9t]s1 
,nos4 #aaa  #aac ,,s\? ,,f\r? ,,/reet4  
#ahfc4            ,,usury3    ,,or      
,int]e/1 ,premium & ,disc\nt4      ,a   
,,lecture,a    ,,deliv]$ ,,be=e ,,!     
,,/ud5ts ,,(    ,,critt5d5',s           
,,philadelphia ,,comm]cial ,,college1   
,,by    ,s4 ,h4 ,,critt5d51 ,,attorney  
,,at ,,law1    ,,pr9cipal4      ,our    
subject to-day is ,,usury4      ,we w   
fir/ speak ( ?is subject 9 its direct   
relation to  ,book-,keep+4 ,t is1 z to  
its treatm5t "u diff]5t =ms1 on  !      
,l$g]1 s9ce ?is is 9 reality ! phase 9  
:i* x is ( mo/  importance = u to       
consid] x4 ,aft]w>ds we w glance at !   
matt] 9 ! view ( utility1 economy &     

legality4    ,! l$g] titles :i* embrace 
?is subject1 are ,int]e/1 ,disc\nt  &   
,premium4 ,^! are all (t51 & inde$      
g5]ally1 embodi$ 9 "o  acc\nt1 head$    
,int]e/1 yet !y are radically diff]5t   
divisions (  ! acc\nt1 bo? 9 _! nature &
 mann] ( computation2 al?\gh  all t5d+  
to "o po9t1 :5 plac$ ^u ! m]*ant's      
books1 viz3  to add to 8 total ga9s or  
losses4    ,mc,cullock's ,comm]cial     
,diction>y has ! foll[+ def9itions (    
,int]e/ & ,disc\nt3    8,int]e/1 is !   
sum paid by ! borr[] ( a sum ( money1 or
 (  any sort ( valuable produce1 to !   
l5d]1 = its use40    8,disc\nt1 is an   
all[ance made on acc\nt ( an imm$iate   
advance (  a sum ( money1 n due till "s 
future p]iod40    ,premium1 accord+ to  
,web/]'s ,diction>y1 is 8a b\nty1 or    
some?+ (f]$ or giv5 = ! loan ( money1   
usually a sum  beyond ! int]e/40    ,^! 
def9itions1 ?\gh n full1 w yet s]ve z a 
f\ndation  on :i* to con/ruct an        
explanation t may make ^! t]ms m  easy (
 compreh5sion4 ,y p]ceive t 9 ord] to   

apply !  def9ition ( ,int]e/1 :i* ,i h  
quot$1 we mu/ look ^u e  p]son :o is    
indebt$ to ano!r1 z a borr[]2 t is1 z   
hav+  9 8 possession1 c]ta9 prop]ty :i* 
belongs ( "r to t  o!r p]son2 & = reta9+
 ! use ( :i* he mu/ pay him an          
equival5t4 ,if y consid] 9 ?is light all
 transactions 9 :i*  ,int]e/ is dem&$ & 
paid1 ?is portion ( ! subject w p]haps  
be suffici5tly pla9 )\t additional      
comm5t4    ,x is 9 relation to ! second 
division ( ! acc\nt t mo/  confusion    
usually arises4 ,!re are n less ?an ?ree
 di/9ct  transactions1 :i* are all      
includ$ 9 ! usual language ( bus9ess    
m51 "u ! s+le t]m ,disc\nt4 ,!y are3    
#a/4 ,:5 a d$uction is made = paym5t ( a
 note or acc\nt be=e  due2 #b;d4 ,:5 a  
p] c5tage is tak5 (f f a sale1 9        
consid]ation  ( ready money2 #c;d4 ,:5  
money is remitt$ f "o c\ntry to ano!r1  
at an additional exp5se or at a loss4   
,if at an exp5se1 x is sometimes call$  
,premium4    ,= illu/ration1 "u ! #a/   
division2 suppose ,a holds a note  aga9/

 ,b = #ejj due 9 f\r mon?s1 & ,b comes  
to-day & pr(f]s  paym5t2 ! cu/om is1 =  
,a to d$uct ! int]e/ on #ejj = f\r      
mon?s1 f ! face ( ! note2 & to accept ! 
balance z paym5t  9 full3 ?us consid]+ !
 use ( ! rema9d] ( ! am\nt1  suffici5t  
to comp5sate = ! defici5cy 9 ! paym5t ( 
! face  ( ! bill4 ,b ?is is manife/ly   
incorrect1 if we take ! exi/+  law ( ?is
 ,/ate1 :i* decl>es ! value ( ! money to
 be b six  p] c5t4 p] annum1 to be f\nd$
 on j pr9ciples4 ,= ! int]e/  on !      
rema9d] ( ! note1 aft] d$uct+ ! int]e/  
on ! face  ( ! note !refrom1 is n       
suffici5t at ! same rate p] c5t4 to     
make up ! orig9al sum4 ,s t ,b1 by pay+ 
?us 9 advance1 secures  a l>g] rate (   
int]e/ ?an is lawful4 ,yet ?is is !     
usage1 &  x is an old adage1 & well     
e/abli%$1 t usage makes law4 ,?is  is   
:at is t]m$ ,bank ,disc\nt4 ,true       
,disc\nt1 is su* a sum1 z1  :5 d$uct$ f 
! orig9al debt1 ! int]e/ on ! balance w 
j equal ! am\nt d$uct$4 ,! me?od (      
asc]ta9+ ?is is by  proportion1 or1 z x 

is call$ 9 ari?metics1 rule ( ?ree4 ,?us
  we w\ld say1 z ! am\nt ( #ajj4 &      
int]e/ = ! giv5 "t  & rate is to !      
int]e/ on #ajj4 = ! same "t & rate1 s   
is ! total sum to ! am\nt ( disc\nt to  
be d$uct$ !refrom4  ,/at$ ?us1-- #ajb4jj
 3 #b4jj 33 #ejj4jj 3 ! answ]4    #b;d4 
,if ,c sells goods to ,d & )9 a c]ta9   
limit$ "t1 usually  among ! jobb+ trade 
( our city #cj days aft] pur*ase1 ,d    
pays =  !m 9 ca%1 usage aga9 all[s him a
 d$uction f ! face ( !  invoice ( say #e
 p] c5t4 ,?is is also call$ ,disc\nt1 b 
x is  n prop]ly su*4 ,= x is only a     
d$uction ( su* a proportion or  p]      
c5tage ( ! bill1 on fulfillm5t ( c]ta9  
conditions2 :ile  ,disc\nt is reckon$ ) 
ref]5ce to "t to run1 z well z rate p]  
c5t42 9 f9e1 ,disc\nt is simple ,int]e/ 
paid be=eh&4    #c;d4 ,! t]m ,disc\nt is
 also appli$ to t sum :i* is advanc$    
beyond or d$uct$ f ! am\nt ( a debt1 9  
remitt+ money f  "o c\ntry to ano!r4    
,?us1 if ,i wi% to remit a sum ( money  
to any =eign c\ntry1 x is  ne$ful = me  

to asc]ta9 :at is ! diff]5ce ( valuation
 at !  pres5t "t betwe5 money ( !       
d5om9ations us$ & ord9>ily  obta9able   
"h1 & ^? 9 ! c\ntry to :i* ! remittance 
is  to be made4 ,?is valuation ,i       
suppose y all und]/& is a m]ely         
arbitr>y "o1 fix$ at ! w ( ! supreme p[]
 9 any ,/ate1 &  v>y+ accord+ to        
circum/ances & ! ideas ( ! law mak]s4   
,if1  = in/ance1 ow+ to ! diff]5t am\nts
 ( alloy us$ 9 co9+  pieces (           
correspond+ value 9 diff]5t c\ntries1   
!re is say #e  p] c5t4 m preci\s metal 9
 ! co9 ( t c\ntry to :i* ,i  wi% to     
remit ?an 9 t ( our own c\ntry1 ,i mu/  
necess>ily pay  ?is diff]5ce 9 addition 
to ! orig9al sum1 9 ord] to r5d]  !     
acc\nt ( my correspond5t good accord+ to
 ! valuation 9 8  c\ntry4 ,if on ! o!r  
h& ! intr9sic value ( our co9 is #e p]  
c5t4 ! great]1 !n "o hundr$ doll>s ( our
 co9 w pay "o  hundr$ & five doll>s ( ! 
o!r4    ,! prop] t]m = ?is is ,ex*ange1 
& if ?is "n 7  univ]sally adopt$1 !re   
w\ld be f> less ( confusion 9 ! ideas   

associat$ ) su* transactions1 9 ! m9ds (
 mo/ p]sons4    ,we w n[ turn to a      
consid]ation ( ! peculi> nature (       
,int]e/1  or m prop]ly ,usury1 & !      
reasons assign$ = a limitation (  its   
rate by law4 ,=m]ly1 ! am\nt receiv$ 9  
paym5t = ! loan  ( capital1 0 d5om9at$  
,usury2 t is to say1 r5t = its use &    
enjoym5t4    ,?is is ! correct t]m1 =   
,int]e/ is only ! r5t1 or price paid  = 
! enjoym5t ( an object ( value4    ,b   
?is ^w has acquir$ an odi\s mean+1 & is 
n[ und]/ood to  express an illegal &    
oppressive rate ( int]e/ only1 ! mild] b
  less expressive t]m be+ sub/itut$ by  
common usage4    ,9 e>li] times1 be=e ! 
advantage & utility ( a res]ve  capital 
0 kn[n & appreciat$1 ! dem& ( a r5t =   
its use  by l5d]s1 0 look$ ^u z an abuse
 ( p[]1 & an oppression  t[>ds ! ne$y4  
,&1 m /ill1 x seems f ! acc\nts h&$  d[n
 to u by ! writ]s ( ^? days1 t ev5 t    
frugality1  )\t :i* capital _c be       
amass$1 0 look$ ^u z p>simony1  & deem$ 
a public injury1 by ! populace1 :o look$

 ^u all sums  n sp5t by ! great         
proprietors1 z lo/ to !mselves4 ,!y c\ld
  n compreh5d t money laid by1 z a      
capital = "s pr(itable  employm5t1 0 to 
all int5ts equally sp5t2 & t to 9 a way 
f> m b5eficial to ! poor4 ,= a labor+   
man is nev] sure (  e>n+ a subsi/5ce    
save :]e !re is a capital 9 res]ve =    
him to "w ^u4 ,?is inability to und]/&  
its use gave rise to  /rong prejudice   
aga9/ ri* individuals1 :o d n sp5d _!   
:ole  income z x comes 92 su* a feel+   
/ill exi/s to a great ext5t3  =m]ly x 0 
univ]sal4 ,l5d]s !mselves 7 infect$ by  
x1 &  7 s mu* a%am$ ( ! "p !y 7 act+ z  
to employ ! mo/  disreputable ag5ts 9 ! 
collection ( pr(its p]fectly j1 &       
highly useful to society4    ,!re h be5 
f "t to "t v>i\s species & modifications
 (  /atutes1 & enactm5ts = ! promotion (
 public lib]ty1 & !  advancem5t (       
happ9ess1 bo? private & public4    ,yet1
 ?\gh ^! ord9ances h be5 provid$ 9 all  
good fai?1 by  ! legislators1 x is      
evid5t to e p]son :o obs]ves closely1  &

 comp>es causes & effects1 t (t5times _!
 op]ation is  ineffici5t = ! end aim$   
at2 & (t5 directly ! rev]se 9  effect f 
! orig9al int5tion ( _! mak]s4          
,especially1 x  seems to me1 is ?is !   
case 9 ! matt] ( ^? laws relat+ to      
,usury4    ,!re exi/s almo/ univ]sally1 
a sort ( h]$it>y prejudice aga9/  ! v "n
 ( ,usury4 ,almo/ e "o w plead guilty to
 su*  feel+s z ^!3 8,usury is a bad ?+1 
& z su* ought to be  prev5t$2 ,usur]s   
are a bad sort ( m51 a v bad sort ( m51 
&  z su* ought to be puni%$ &           
suppress$40 ,n[1 x is n wond]ful  t m5  
fall into su* op9ions1 & become firmly  
gr\nd$ 9 !m1  :5 !y he> !m h&$ d[n &    
repeat$ by ^? to :om !y are  9 ! habit (
 look+ ) confid5ce = correct ideas4     
,= x _c be expect$ t ! mass ( mank9d    
%\ld f9d leisure1  ev5 _h !y ! ability1 
to exam9e into ! gr\nds ( a hundr$?  "p 
( ! rules & maxims :i* !y f9d !mselves  
compell$ to  foll[ & obs]ve4 ,! fact is1
 t :]ev] x has be5 attempt$ to  limit ! 
rate ( ,int]e/1 or to aboli% x altoge!r 

by law1 !re  ! practice ( ,usury has    
uni=mly reviv$4 ,&1 z might naturally   
be expect$1 ! m sev]e ! p5alties1 & ! m 
rigid _!  execution1 ! high] ! rate (   
int]e/ 0 sure to rise4 ,because  ! risk 
be+ s mu* great]1 ! l5d] mu/ ne$s h a   
l>g]  premium ( insurance to tempt him  
to incur x4 ,x is a matt] (  hi/ory1 t  
at ,rome1 dur+ ! cont9uance ( !         
republican =m (  gov]nm5t ! rates (     
int]e/ 7 enorm\s4 ,! simple & pla9      
reason ( ?is 01 t ! debtors :o 7 always 
plebeians1 7  cont9ually ?reat5+ _!     
patrician cr$itors4    ,s also1 9 ^?    
,*ri/ian c\ntries :]e ,int]e/ on loans  
has be5  =bidd51 or :at is equival5t1   
:]e x has be5 plac$ by law  at s l[ a   
po9t z w\ld n suffice to pay ! risk (   
loss to a  l5d]1 ! practice has be5 made
 ov] almo/ entirely to ! ,jews2  :ile at
 ! same "t s great has be5 ! extortion1 
oppression1 &  humiliation to :i* ?is p 
7 expos$ t no?+ %ort ( a  v heavy rate (
 ,int]e/ c\ld indemnify !m = su* risks &
  repeat$ losses4    ,?us 9 any case !  

ratio ( ! ,premium ( insurance1 :i*     
frequ5tly =ms ! great] portion ( :at is 
call$ ,int]e/1 w  dep5d ^u ! degree (   
security pres5t$ to ! l5d]4 ,! great]  !
 risk1 ! high] w be ! rate ( ,int]e/4   
,:5 we deta* f  ! rate ( int]e/ all t is
 paid z a security to ! l5d]  aga9/ !   
risk ( p>tial or total loss ( 8 capital1
 x rema9s to  consid] t "p :i* is purely
 & simply ,int]e/3 t is to say1  r5t    
paid = ! use ( capital4    ,?is is !    
po9t ^u :i* _m wise legislators h       
endeavor$ to  lay d[n laws z infallible 
guides1 & _m le>n$ economi/s h  advocat$
 su* re/rictive enactm5ts1 z ev5 to ?is 
day obta9 9  mo/ civiliz$ c\ntries4 ,!  
,romans seem1 accord+ to ,cato1 to  h   
consid]$ an ,usur]1 z worse ?an a ?ief4 
,=1 says he1 8,our  ,ance/ors1 enact$ 9 
_! laws1 t a ?ief %\ld be condemn$ to   
pay d\ble1 b an ,usur]1 quadruple40     
,ev5 t mo/ le>n$ comm5tator on law1 ,sir
 ,h5ry ,black/one1  pron\nces t a legal 
limit ought to be plac$ to ?is bran* (  
trade4    ,i w quote f ,black/one1 on   

?is subject4 ,he says1 :5 speak+  ( !   
g5]al po9ts 9 ! contract ( hir+ &       
borr[+3 #b ,com41  p4 #ded1 8,!re is "o 
species ( ?is price or rew>d1 ! mo/     
usual  ( any1 b conc]n+ :i* _m good &   
le>n$ m5 h 9 =m]  times v mu* p]plex$   
!mselves1 & o!r p1 by rais+  d\bts ab\t 
its legality 9 =o consci5tie4    8,t is1
 :5 money is l5t on a contract1 to      
receive n only !  pr9cipal sum aga91 b  
also an increase by way ( comp5sation = 
! use2 :i* is g5]ally call$ ,int]e/ by  
^? :o ?9k x  lawful1 & ,usury by ^? :o d
 n s2 = ^? enemies to  ,int]e/1 9 g5]al1
 make no di/9ction betwe5 t & ,usury1   
hold+ any increase ( money to be        
indef5sibly usuri\s4 ,& ?is  !y gr\nd1 z
 well on ! prohibition ( x by ! law (   
,moses among  ! ,jews1 z also ^u :at is 
said to be laid d[n by ,ari/otle1 t     
money is naturally b>r51 & to make x    
bre$ money is prepo/]\s  & a p]v]sion ( 
! end ( its in/itution1 :i* 0 only to   
s]ve  ! purposes ( ,ex*ange1 & n (      
increase4 ,h5ce ! s*ool div9es  h br&$ !

 practice ( tak+ ,int]e/ z be+ contr>y  
to !  div9e law1 bo? natural & reveal$3 
& ! canon law has proscrib$  ! tak+ any1
 ! lea/1 increase = ! loan ( money1 z a 
mortal  s94    8,b 9 answ] to ?is x ha? 
be5 obs]v$1 t ! ,mosaical precept  0    
cle>ly a political1 & n a moral precept4
 ,x only prohibit$  ! ,jews f tak+      
,usury f _! bre?r51 ! ,jews3 b 9        
express words1 p]mitt$ !m to take x ( a 
/rang]2 :i* proves  t ! tak+ ( mod]ate  
,usury1 or a rew>d = ! use1 = s !  ^w   
signifies1 is n malum 9 se1 7a s9 9     
itself consid]$17  s9ce x 0 all[$ :]e   
any b an ,israelite 0 conc]n$4 ,&  z to 
! reason giv5 by ,ari/otle1 & d$uc$ f ! 
natural  b>r5ness ( money1 ! same may ) 
equal =ce be alleg$ (  h\ses1 :i* nev]  
bre$ h\ses2 & tw5ty o!r ?+s1 :i* nobody 
d\bts x is lawful to make pr(it (1 by   
lett+ !m to hire4    8,& ?\gh money 0   
orig9ally us$ only = ! purposes (       
ex*ange1 yet ! laws ( any ,/ate may be  
well ju/ifi$ 9  p]mitt+ x to be turn$ to
 ! purposes ( pr(it1 if !  conv5i5ce (  

society1 7! great end = :i* money 0     
inv5t$17  %all require x4 ,& t !        
all[ance ( mod]ate ,int]e/ t5ds  greatly
 to ! b5efit ( ! public1 especially 9 a 
trad+ c\ntry1  w appe> f t g5]ally      
ackn[l$g$ pr9ciple1 t comm]ce  _c subsi/
 )\t mutual & ext5sive cr$it4 ,unless   
money1  !re=e1 c be borr[$1 trade _c be 
c>ri$ on3 & if no  ,premium 7 all[$ = ! 
hire ( money1 few p]sons w\ld c>e to    
l5d x2 or1 at lea/1 ! ease ( borr[+ at a
 %ort w>n+1 7:i*  is ! life ( comm]ce17 
w\ld be entirely at an end4    8,& z to 
any scruples ( consci5ce1 s9ce all o!r  
conv5i5ces  ( life may be ei!r b\ght or 
hir$1 !re seems to be no great]         
oppression 9 tak+ a recomp5se or price =
 ! hire ( ?is1 ?an  ( any o!r           
conv5i5ce40    ,= ! tak+ ( su* recomp5se
 we h moreov]1 ! v highe/  au?ority 9 ! 
words ( our ,savi\r1 :o1 9 ! p>able ( ! 
tal5ts1 c5sures ! slo?ful s]vant 9 ^!   
words3 8,?\ wick$  & slo?ful s]vant1 ?\ 
knewe/ t ,i reap :]e ,i s[$ n1 &  ga!r  
:]e ,i h n /rew$4 ,?\ oughte/ !re=e to h

 put my  money at ! ex*ang]s1 & !n at my
 com+ ,i %\ld h receiv$  m9e own )      
,usury40    ,dr4 ,adam ,smi?1 9 8 "w    
entitl$ 8,weal? ( ,nations10 ,vol4 #a1  
p4 #dbi1 publi%$ 9 #aggf1 & :i* has be5 
long a text book =  political economi/s1
 says3 8,a capital l5t at ,int]e/ may1 9
 ?is  mann]1 be consid]$ z an assignm5t 
f ! l5d] to ! borr[]  ( a c]ta9         
consid]able portion ( ! annual produce2 
^u condition  t ! borr[] 9 return %all1 
dur+ ! cont9uance ( ! loan1  annually   
assign to ! l5d] a small] portion1 call$
 ! ,int]e/2  & at ! end ( x a portion   
equally consid]able ) t :i* _h          
orig9ally be5 assign$ to him1 call$ !   
repaym5t4 ,?\gh money1  ei!r co91 or    
pap]1 s]ves g5]ally z ! de$ ( assignm5t1
 bo?  to ! small] & to ! m consid]able  
portion1 x is ( itself  altoge!r diff]5t
 f :at is assign$ by x40 ,& aga93 8,z   
su*  capitals are commonly l5t out1 &   
paid back 9 money1 !y con/itute  :at is 
call$ ! moni$ int]e/40 8,9 "s c\ntries !
 ,int]e/ (  money has be5 prohibit$ by  

law4 ,b z some?+ c ev]y:]e be  made by !
 use ( money1 some?+ ought ev]y:]e to be
 paid = !  use ( x4 ,?is regulation     
in/ead ( prev5t+1 has be5 f\nd f        
exp]i5ce1 to increase ! evil ( ,usury2 !
 debtor be+ oblig$  to pay1 n only = !  
use ( ! money1 b = ! risk :i* 8  cr$itor
 runs by accept+ a comp5sation = t use4 
,he is oblig$1  if "o may say s1 to     
insure 8 cr$itor f ! p5alties ( ,usury40
    8,9 c\ntries :]e ,int]e/ is p]mitt$1
 ! law1 9 ord] to prev5t  ! extortion ( 
,usury1 g5]ally fixes ! highe/ rate :i* 
c  be tak5 )\t incurr+ a p5alty4 ,?is   
rate ought always to be  some:at above !
 l[e/ m>ket price1 or ! price :i* is    
commonly  paid = ! use ( money by ^? :o 
c give ! mo/ und\bt$  security40    8,if
 ?is legal rate %\ld be fix$ bel[ ! l[e/
 m>ket rate1 !  effects ( ?is fixation  
mu/ be ne>ly ! same z ^? ( a total      
prohibition ( ,int]e/40    8,! cr$itor w
 n l5d 8 money = less ?an ! use ( x  is 
wor?1 & ! debtor mu/ pay him = ! risk   
:i* he runs by  accept+ ! full value ( t

 use4 ,if x is fix$ precisely at !  l[e/
 m>ket price1 x ru9s1 ) hone/ p1 :o     
respect ! laws  ( _! c\ntry1 ! cr$it (  
all ^? :o _c give ! v be/  security1 &  
obliges !m to h rec\rse to exorbitant   
usur]s40    8,! legal rate1 x is to be  
obs]v$1 ?\gh x ought to be some:at      
above1 ought n to be mu* above ! l[e/   
m>ket rate4 ,if !  legal rate ( int]e/ 9
 ,great ,brita91 = example1 7 fix$ s    
high z eight or t5 p] c5t4 ! great] "p (
 ! money :i* 0  to be l5t1 w\ld be l5t  
to prodigals & projectors1 :o alone w\ld
  be will+ to give ?is high rate (      
,int]e/4 ,sob] p1 :o w  give = ! use (  
money no m ?an a "p ( :at !y are likely 
to make by ! use ( x1 w\ld n v5ture into
 ! competition4 ,a  great "p ( ! capital
 ( ! c\ntry1 w\ld ?us be kept out ( !   
h&s mo/ likely to make a pr(itable &    
advantage\s use ( x1 &  ?r[n into ^? mo/
 likely to wa/e & de/roy x4 ,:]e ! legal
  rate ( ,int]e/1 on ! contr>y1 is fix$ 
b a v little above !  l[e/ m>ket rate1  
sob] p are univ]sally pref]r$ z borr[]s 

to prodigals & projectors4 ,! p]son :o  
l5ds money gets ne>ly z  mu* ,int]e/ f !
 =m]1 z he d>e take f ! latt]1 &  8     
money is mu* saf] 9 ! h&s ( ! "o set (  
p1 ?an  9 ^? ( ! o!r4 ,a great "p ( !   
capital ( ! c\ntry is  ?us ?r[n into !  
h&s 9 :i* x is mo/ likely to be employ$ 
) advantage4 8,no law c r$uce ! common  
rate ( ,int]e/ bel[  ! l[e/ ord9>y m>ket
 rate at ! "t :5 t law is made4         
,not)/&+ ! edict ( #agff1 by :i* ! ,fr5*
 k+ attempt$  to r$uce ! rate ( ,int]e/ 
f five to f\r p] c5t41 money  cont9u$ to
 be l5t 9 ,france at five p] c5t43 ! law
 be+ evad$  9 sev]al diff]5t ways40     
,puff5dorf1 ^: treatise on ! 8,laws (   
,nature & ( ,nations10 0  publi%$ 9     
,engl& 9 #agaj1 says3 8,! argum5ts :i*  
are br\ght  aga9/ ,usury are easily     
answ]$4 ,x is urg$ t ! loan ( a         
consumable commodity ought to be giv5   
gratis1 because ! loan ( all  o!r ?+s is
 s4 ,b ,i answ] t ,i h ! p[] ( grant+ ! 
use ( my goods t are n consumable ei!r  
gratis1 or = r5t3  :]e(1 ! "o is a loan1

 ! o!r a lett+4 ,s :at %\ld  h9d] me f  
grant+ ! use ( my money also1 ei!r      
gratis1 or  = a c]ta9 recomp5se8 ,:5 "o 
man borr[s to increase 8 weal?1  or     
improve 8 condition1 :y %\ld ano!r l5d  
to him = no?+8  ,nay1 'tis an           
unreasonable ?+1 :5 y va/ly improve y\r 
=tune  ) my money1 n to admit me to "s  
%>e ( ! ga94 ,= ,i1 9  ! meantime1 am   
deb>r$ f mak+ t advantage :i* ,i might  
h o!rwise expect$1 by apply+ x to my own
 use4 ,besides1 ,i h  p>t$ ) some?+     
valuable1 :i* ought !re=e to be         
consid]$3  = 9 lieu ( my money1 ,i h    
only an action aga9/ y\r p]son1  :i* _c 
be prosecut$ )\t "s tr\ble4 ,x may also 
happ5  by "s accid5t t ! debt may be    
lo/4 ,nay1 sometimes ! debtor  mu/ be   
c\rt$ & c>ess$1 t x be n lo/4 ,& "s     
borr[ on  purpose to make _! cr$itors   
dep5d5t on !m4 ,z1 ! ,m>e*al de         
,ro*elause1 :5 he 0 tax$ by ,l\is       
,,xiii4 ) tak+ "p ) !  ,duke ( ,may5ne1 
plead$ 9 excuse1 t he did n foll[ !     
,duke1  b 8 money3 = 8 debt w\ld be 9 a 

desp]ate condition if he did  n /ick    
close to 8 debtor4    8,besides1 x is n 
seldom t we l5d to p]sons :o are utt]ly 
unable to pay2 & !re=e "s are ( ! op9ion
 t x w\ld be  = ! advantage ( ! public1 
to all[ none b m]*ants to take  up money
 at use2 = ?is w\ld make ! poor         
indu/ri\s1 & =ce  !m to frugality1 :o1  
"s ( !m1 are n afraid to pay ,int]e/  = 
money to ma9ta9 _! extravagancies4 ,&   
moni$ m51 r ?an  let _! money lie dead1 
w\ld ei!r take to m]*&ise !mselves  or  
w\ld put out _! money to ^? :o d3 :i*   
w\ld make trade  fl\ri% to ! great      
b5efit ( ! commonweal?4    ,grotius is (
 ! op9ion1 8t ! legal int]e/ ought to be
 /at$1  n accord+ to ! ga9s ( ! borr[]1 
b ! loss t !reby  accrues to ! l5d]3 z 9
 buy+ & sell+1 & o!r contracts1  no     
reg>d is _h to :at ! receiv] may make ( 
! commodity1 b  :at goes away f !       
sell]40    8,& 9 ?is case s mu* goes    
away z e man 9 8 own call+  might1 &    
usually does1 make ( 8 money2 all[ance  
be+ made =  haz>ds1 :i* 9 "s cases are  

m1 & 9 o!rs less4 ,) ?is1  ,i s f>      
agree3 t no man c compla91 if 8 debtor  
makes a va/  & unexpect$ return ( 8     
money2 b yet !re is no d\bt b ,i may    
dem& high] ,int]e/ ( him t makes a v    
ga9ful trade1 ?an ,i  c ( ano!r :o      
drives a poor "o40    ,^! are ! op9ions 
( m5 le>n$ 9 ! sci5ce ( political       
economy2 & are entitl$ to weighty       
consid]ation2 b x seems to me1  !y d n1 
any ( !m1 rea* q f> en\gh into !        
subject4 ,all  ( !m appe>$ to be fett]$ 
by ! pressure ( t same g5]ally          
recogniz$ op9ion to :i* ,i h be=e       
adv]t$4    ,! proposition ,i am incl9$  
to favor on ?is mu* moot$ po9t is  aptly
 express$ 9 ! words ( ,j]emy ,b5?am4 ,x 
is1 8t no man (  ripe ye>s1 & ( s\nd    
m9d1 act+ freely1 & ) 8 eyes op51  ought
 to be h9d]$1 ) a view to 8 advantage1 f
 mak+ su* a  b>ga9 9 ! way ( obta9+     
money1 z he ?9ks fit1 nor1 7:at is  a   
necess>y consequ5ce17 anybody h9d]$ f   
supply+ him1 ^u any  t]ms he ?9ks prop] 
to acc$e to40    ,!re are b two         

def9itions :i* c be giv5 to ,usury4 ,"o 
is1  tak+ a l>g] rate ( ,int]e/ ?an !   
law all[s2 ?is is !  legal or1 political
 def9ition4 ,! o!r is tak+ m ,int]e/    
?an is usual = o!r p to give & take2 ?is
 is ! moral  "o4 ,& n[1 9 ord] t ! law  
may t\* ! po9t1 & actually  prohibit    
,usury1 x is ne$ful fir/ t ! law %\ld   
sup]c$e  morals1 or conv5tional cu/om1 &
 fix t po9t4    ,"o ?+ is c]ta91 t      
antec$5tly to cu/om1 :i* has gr[n  to be
 e/abli%$ conv5tionally1 !re c\ld n be  
su* a ?+ z  ,usury4 ,= :at rate ( int]e/
 is m "r ?an ano!r8 ,9 "o  l& t5 p] c5t4
 is ! legal & !re=e 7z ! advocates (    
limitation w\ld say7 ! prop] rate2 9 an 
ano!r five p] c5t4 is  ! utmo/ :i* !    
t5d] consci5ces ( ! legislators w all[4 
,ev5 9 ! same c\ntry1 f "t to "t1 !     
rates are & h  be5 v>i$ z ! wants ( !   
community1 ! exig5cies ( ! times1  or ! 
:ims ( ! legislators prompt$4    ,x is1 
!n1 conv5i5ce :i* has produc$ :atev] !re
 is (  cu/om 9 ! matt]4 8,& :at1 7asks  
,b5?am appropriately17 is  !re 9 cu/om1 

to make x s mu* m des]v+ ( obs]vance ?an
  conv5i5ce1 :i* fir/ gave x bir?80     
,x is conv5i5t = me to give #h p] c5t4 =
 money4 8,no10 says !  law1 8y %all n40 
,:y8 8,because x is n conv5i5t = y\r    
neighbor to give m ?an #f p] c5t4 = x40 
,c any?+ be m  absurd8    ,!n aga91 z to
 ! opprobri\s "n4 ,no appellation or    
p>ticul>  /igma ( disrepute affixes to a
 man :o be+ ! own] ( a h\se1  gets z    
high a r5t = x z he c4 ,inde$ ?is is !  
common  practice ) su* p]sons1 & nobody 
is a%am$ to d s1 or  pr(esses to d      
o!rwise4 ,n[1 :y a man :o possesses     
money1 &  takes z mu* z he c get = x1   
say #h1 #aj or #ab p] c5t4 %\ld  be     
load$ ) vile epi!ts1 any m ?an if he _h 
b\ght a h\se  ) x1 & !n made ! same     
pr(it f r5t+ ! h\se1 is m  ?an ,i c see4
    ,ano!r po9t1 9 :i* ! good policy ( !
 exi/+ re/rictive  laws ^u ?is subject1 
seems d\btful1 is t !y op]ate 9 only  "o
 direction4 ,if x is wrong1 & wor?y (   
puni%m5t1 to take m  ?an ! fix$ maximum 
( int]e/ = ! use ( money1 :y n make  x a

 p5al (f5ce to (f] less ?an t am\nt1 z  
well z to  accept m8    ,!re are div]s  
reasons giv5 by ! advocates ( ! laws    
re/rict+  ! rates ( ,int]e/ :y !y are   
b5eficial & ought to be en=c$4  ,among  
^! are3 t !y prev5t prodigality1 &      
protect ! poor  & simple f extortion &  
imposition4    ,z to prev5t+            
prodigality3 does n e "o "k t s long  z 
a p]son has money1 or prop]ty ( any     
sort1 ) :i* x is  possible = him to     
display prodigality1 no ,usury laws w   
/op him  f exp5d+ x2 &1 t aft] 8 prop]ty
 is gone & he has no  m to exp5d1 none  
are m ready to promise ! l>ge/ ,int]e/1 
provid+ he c !reby obta9 additional     
money to sp5d8 = :at he  gets is cle>   
ga91 he hav+ no?+ to lose4 ,?is1 x w\ld 
seem is a  hopeless class1 = ^:         
protection or advantage to legislate4   
,besides prodigals1 !re are ?ree o!r    
classes1 to ^: b5efit su*  re/rictive   
laws are suppos$ by _! au?ors to insure4
 ,!y are !  indig5t1 ! ra%ly ent]pris+1 
& ! simple4 ,t is to say1  ^? ^:        

pecuni>y necessities are s press+1 z to 
r5d] !m  will+ to pay an ,int]e/1 above 
! ord9>y rate1 r ?an n  to h ! money2 ^?
 :o f ra%ness1 may be dispos$ to v5ture 
^u ! giv+ su* a rate )\t duly consid]+ !
 consequ5ce2  & ^? ^: natural           
c>elessness comb9$ ) ignorance w\ld lead
  !m to acquiesce 9 x4    ,let u look at
 ! conditions ( ^! classes a few mom5ts4
 ,"h  is a small trad] we w say1 ^: /ock
 9 trade consi/s ( only  a small am\nt (
 prop]ty1 comb9$ ) an1 z yet1 p]fectly  
unt>ni%$ reputation = punctuality 9     
paym5ts4 ,?is la/1 all  :o "k any?+ (   
bus9ess1 w at once admit to be !        
pr9cipal1  & mo/ important item ( 8     
/ock4 ,= ) su* a "*1 no  m]*ant w refuse
 to cr$it him = articles ne$ful to c>ry 
on 8  bus9ess2 & ?us all goes well )    
him4    ,b n[ 8 c>efully *]i%$ cr$it is 
9 dang]4 ,he has be5  disappo9t$ 9 8    
expectations ( a ready sale = "s "p ( 8 
goods1 or 9 obta9+ money promis$ him = a
 debt1 & f9ds himself  )\t ! means to   
promptly meet an obligation fall+ due   

to-morr[4    ,8 position is su* 9 !     
matt] ( prop]ty z n to r5d] x  wor?     
anybody's :ile to l5d him at ! legal    
rate2 9 %ort he  _c raise money to meet 
?is obligation at t rate1 & mu/ d  "o ( 
two ?+s--ei!r lose 8 cr$it1 :i* w ru9   
utt]ly  8 prospects ( mak+ a com=table  
subsi/5ce = 8 family2 or  he mu/ obta9 !
 means ( sav+ ?is *]i%$ treasure intact1
 by  pay+ some:at m = ! use ( ! money4  
,we c at once see :at  he1 :o has e     
motive & means = judg+ rightly 9 !      
matt]1  w\ld decide to be ! wise/ c\rse1
 & ! "o ne>e/ ! pa? (  rectitude4 ,z a  
matt] ( c\rse1 if he c\ld obta9 ! money 
at a l[  rate1 he w\ld n pay ! high] "o4
 ,b n[ ! legislator :o kn[s  no?+ ( any 
( ^! circum/ances1 b ^: he>t ov]fl[s )  
prud5ce1 & lov+ k9dness = ! poor man1   
/eps 91 & says3 8,x  signifies no?+2 y  
%all n h ! money1 = x w\ld be do+  y a  
mis*ief to all[ y to borr[ on su* t]ms40
 ,!re might be  worse cruelty1 b n      
easily great] folly4    ,next1 9 reg>d  
to ! ignorant & simple1 = ^: protection 

f  imposition or fraud1 ^! laws are     
enact$4 ,fir/1 c\ld any degree  (       
simplicity or want ( tact be great] or m
 evid5t ?an t  display$ 9 su* a case z  
we h j spok5 (2 :]e a legislator  c\ld  
conf9e a man "u su* circum/ances1 to a  
giv5 rate (  ,int]e/8    ,second1       
suppose ! wisdom ( ! legislator to be   
nev] s mu*  great] ?an t ( ! individual1
 no matt] h[ weak t may be1  h[ useless 
is ! ex]tion ( x 9 ?is case only1 :ile  
!re  rema9s s _m o!r occasions :]e !    
simplicity ( ! suff]]  w\ld make him !  
victim ( inju/ice1 & :]e ! legislator _c
  int]pose to protect him4 ,9 e day     
affairs1 9 ! matt] ( buy+  & sell+1 :e!r
 ) money1 or on cr$it1 su* p]sons are   
liable  to be ov]rea*$2 & yet none h    
?\ght t = ?is reason1 a  legal price    
ought to be set ^u all goods1 ( :atev]  
description4  ,nor1 suppos+ t ev5 ?is   
endless und]tak+ 7 accompli%$ by  !     
legislator1 w\ld x avail any?+ unless he
 also %\ld regulate  ! exact am\nt ( ea*
 article :i* ea* man %\ld buy4    ,:5   

matt]s arrive at ?is po9t1 we f9d !     
p]son 9 ! position  ( ^? = :om ! law    
provides entirely1 z n be+ fit to take  
c>e ( !mselves3 su* are usually d5om9at$
 idiots4    ,& n[1 z we h consid]$ at "s
 l5g? ! ne$lessness &  ineffici5cy ( su*
 legislation1 let u = a few mom5ts1 look
 at  "s ( its evil results4    ,we w    
speak at fir/ ( ^? :o are by ?is means  
virtually  prohibit$ f obta9+ money on  
loans4 ,consid] = a mom5t1 :at  di/ress 
& inconv5i5ce x w\ld produce 7 !        
privilege (  borr[+ d5i$ to ev]ybody4 ,j
 t inconv5i5ce is occasion$ to  ^? p ^: 
security w\ld1 if !y 7 all[$ to add a   
little  ( ! rate ( ,int]e/1 be suffici5t
 to obta9 ! ne$$ funds1  b is n         
suffici5t = t purpose :5 su* lib]ty is  
d5i$4  ,?us ! mis=tune ( n happ5+ to be 
possess$ ( t am\nt (  prop]ty :i* is    
consid]$ a suffici5t security1 is made !
 gr\nd1  "u su* legislation1 ( inflict+ 
h>d%ips ^u a man1 :i* ^?  :o are s      
=tunate z to h su* security d n suff]4  
,! only po9t ( di/9ction betwe5 ! two   

classes1 is t !  necessity ( "o is      
great] ?an t ( ! o!r4 ,= 7 ?is n  !     
case1 !y w\ld n be will+1 z we h        
suppos$1 to pay m  to be rid ( x4       
,ano!r ill effect1 is t ( r5d]+ ! t]ms (
 obta9+ money  s mu* ! worse = _m ^:    
circum/ances are su* t !y are  n        
altoge!r preclud$ f obta9+ x1 at "s     
rate4 ,^? :o  _c borr[1 may get :at !y  
want1 s long z !y h any?+  to sell4 ,b1 
:ile out ( lov+ k9dness1 or o!r motive1 
! law  precludes a man f borr[+1 ^u t]ms
 too disadvantage\s1 x  does n =bid him 
f sell+ at any1 ev5 ! mo/ ru9\s rates4  
,ev]ybody kn[s t =c$ sales are att5d$ ) 
loss3 & to ?is  loss an am\nt ( ,int]e/1
 :i* w\ld at fir/ seem exorbitant1 w\ld 
be> b a small proportion4    ,:5 a man's
 goods are tak51 & sold "u an execution1
 x is  consid]$ a good sale if ! net    
am\nt rea*es two-?irds :at x  w\ld take 
to replace !m aga94 ,9 ?is way ! k9dness
 ( ! law1  co/s him directly #cc-a_/c p]
 c5t4 at lea/2 suppos+1 :at is seldom  !
 case1 t no m prop]ty 0 tak5 ?an j en\gh

 to satisfy  ! claim4 ,n[1 if he _h be5 
p]mitt$ to hire ! money at1 say #ab  p] 
c5t4 p] annum x w\ld require ne>ly ?ree 
ye>s = ! same  am\nt to accrue1 z       
int]e/1 :ile ! probabilities are t he   
w\ld be able to pay (f ! :ole debt long 
be=e ! expiration (  t p]iod4    ,to !  
laws prohibit+ ,usury1 too1 we may look1
 z ! prime cause  ( ! e/abli%m5t1 & !   
/ronge/ support] ( t bran* (  bus9ess1  
:i* is ord9>ily look$ ^u z s            
disreputable1 & at  ^: door are laid s  
_m & grievi\s compla9ts ( oppression1   
c41 viz3 pawn-brok+3--a bus9ess bas$    
only on ! unsatisfi$ wants  &           
necessities ( t v class = ^: protection 
f imposition  su* laws are made4    ,s  
we might multiply cases & argum5ts1 b   
p]haps suffici5t has  already be5 said  
to lead ^? :o ?9k1 to ! conclusion t is 
embodi$ 9 our proposition3 viz3 t e man 
ought to h !  same "r to buy & sell     
money at a pr(it1 z he has to d s )     
m]*&ise or o!r prop]ty4                 
,illu/ration3 ,,critt5d5',s             

,,philadelphia    ,,comm]cial ,,college4
    ,e/abli%$1 #ahdd4 ,incorporat$1     
#ahee4          ,,footnote3    ,a ,ent]$
 accord+ to ,act ( ,congress1 9 ! ye>   
#ahfc1 by ,s4  ,h4 ,critt5d51 9 !       
,cl]k's ,(fice ( ! ,di/rict ,c\rt1 = !  
,ea/]n ,di/rict ( ,p5nsylvania4         
,,transcrib]',s ,,notes3                
,italiciz$ text is surr\nd$ by          
und]scores3 italics4      ,obvi\s       
typographical errors h be5 correct$4    
,ar*aic or alt]nate spell+ has be5      
reta9$ f ! orig9al4