Usury

Here's something I put together for a friend a couple of years ago.

Please just take this as me clarifying my own position regarding usury and not trying to bind your conscience or even really change your mind if you're already fully convinced. I just want to let you know my position and what support I think there is for my position.

I'll cheerfully admit that my own convictions regarding usury are a minority opinion in current Reformed circles, including our own, and also in broader contemporary Ecclesial circles. The current consensus is that usury means so-called "predatory" or "excessive" interest lending and not all interest lending.

Nevertheless, I am convinced that my own convictions are in line with the Reformers, their medieval and patristic forebears, and the Bible's own testimony. Of course I am. I'm not always right, but I always think I'm right.

I do think that putting money into a "savings" account that generates interest (even 1.3% interest) is not just having someone keep the money safe but loaning the money to the bank at interest, which falls under the category of usury (though, sure, not as bad as many other widespread forms of usury). I know that makes me a complete weirdo. That's just one of many things that makes me a complete weirdo in today's society. So be it.

Anyhow, here's some support for my position from "the tradition". I've only included Reformed sources, but could multiply examples from earlier church history.

Feel free to read or not read as you wish.

All of this offered in a spirit of peace and brotherhood. Respectfully, In Christ, -JRO

John Calvin

“It could be wished that all usury and the name itself were first banished from the earth.”

That link includes Calvin’s controversial letter. It’s presented in what is obviously a polemical book against usury. The arguments in that book may or may not be persuasive to you or anyone. I only link to it to link to Calvin’s letter. For a more contemporary and less polemical take on Calvin and usury, I don’t think that anything has been written better than Brad Littlejohn’s take.

Geneva Bible

Wherefore then gavest not thou my money into the {e} bank, that at my coming I might have required mine own with usury?

(e) To the bankers and money changers. Usury or loaning money at interest is strictly forbidden by the Bible, Ex 22:25-27 De 23:19,20. Even a rate as low as one per cent interest was disallowed, Ne 5:11. This servant had already told two lies. First he said the master was an austere or harsh man. This is a lie for the Lord is merciful and gracious. Next he called his master a thief because he reaped where he did not sow. Finally the master said to him that why did you not add insult to injury and loan the money out at interest so you could call your master a usurer too! If the servant had done this, his master would have been responsible for his servant's actions and guilty of usury. (Ed.)

If the Geneva Bible notes don’t count as reflecting original and general Reformed opinion, I don’t know what does. That’s not to say that the Geneva Bible notes are always correct, but that they do reflect general Reformed and Calvinistic thought in “Calvin’s Geneva”.

Westminster Larger Catechism

Q. 142. What are the sins forbidden in the eighth commandment?

A. The sins forbidden in the eighth commandment, besides the neglect of the duties required, are, theft, robbery, man-stealing, and receiving any thing that is stolen; fraudulent dealing; false weights and measures; removing landmarks; injustice and unfaithfulness in contracts between man and man, or in matters of trust; oppression; extortion; usury; bribery; vexatious lawsuits; unjust inclosures and depopulations; engrossing commodities to enhance the price, unlawful callings, and all other unjust or sinful ways of taking or withholding from our neighbor what belongs to him, or of enriching ourselves; covetousness; inordinate prizing and affecting worldly goods; distrustful and distracting cares and studies in getting, keeping, and using them; envying at the prosperity of others; as likewise idleness, prodigality, wasteful gaming; and all others ways whereby we do unduly prejudice our own outward estate, and defrauding ourselves of the due use and comfort of that estate which God hath given us.

The Heidelberg Catechism

Q. 110. What does God forbid in the eighth commandment?

A. God forbids not only outright theft and robbery but also such wicked schemes and devices as false weights and measures, deceptive merchandising, counterfeit money, and usury; we must not defraud our neighbour in any way, whether by force or by show of right. In addition God forbids all greed and all abuse or squandering of his gifts.

Usury is the gain which is received in view of that which has been borrowed or loaned. All just contracts, the contracts of paying rent, a just compensation for any loss, partnership, buying, etc., are exempted from usury. There are many questions respecting usury concerning which we may judge according to the rule which Christ has laid down: Whatever ye would that men should do to you, do ye even so to them.

We can argue about what Ursinas’ exemptions mean--for example, I'm happy to concede that money/loans involved in business partnerships can include terms of profit,-- but his definition of usury is clear: it is "the gain" which is received in view of that which has been borrowed or loaned, which had always been the common definition of usury, any “interest” (gain) on a loan.

But what does the Bible say?

See above link. Usury (the lending of money at interest) is overwhelmingly condemned. You shall not charge interest. Any interest.

I do think that there’s a conversation to be had about “you may charge a foreigner interest”, but my take is that that involves financial warfare with pagan enemies, especially given the context of Canaan. Other places are clear that the stranger who sojourns amongst you should be treated with the same law.

For what it's worth, I think that this essay is a pretty good recent take on how loving one's enemies affects the practice of usury as warfare: Love Your Enemies: Usury, Citizenship, and the Friend-Enemy Distinction