Religions and Usury

The Form of Money

Usury

1. the lending or practice of lending money at an exorbitant interest. 2. The exorbitant amount or rate of interest, esp. in excess of the legal rate.

Deuteronomy [Old Testament]

XXIII:19 Thou shalt not lend upon usury to a brother.

XXIII:20 Unto a stranger thou may lend upon usury.

Usury could be applied to a stranger, but not to a brother. The New Testament proclamation of universal brotherhood negated the use of usury in any circumstance, separating Judaism and Christianity by economic philosophy.

The Idea of Usury by Benjamin N. Nelson, Princeton University Press, 1949

St. Jerome (340-420) contended that the prohibition of usury among brother in Deuteronomy had been universalized by the Prophets and the New Testament. There was, in short, no scriptural warrant for taking usury from anyone. 

Jesus Casting out the Money-Changers

Carl Heinrich Bloch, 1834 – 1890

The 16th century Protestant Reformation made a distinction between interest and usury, thus not violating the scriptures against usury while still allowing interest. That distinction remains with us today and is embedded in Law. 

Law separates interest and usury by defining what is exorbitant. From a mathematical perspective, the determination is arbitrary. Interest, at any rate, is still an exponential growth algebraic concept applied to money.

Islamic Perspective

The historical importance of usury is evidenced by its prominent mention in the Bible, Koran, and other religious texts. The Koran, the Holy Text of Islam, mentions usury:

The Glorious Qur’an, Translation by Marmaduke Pickthall

Surah II – 275: Those who swallow usury cannot rise up save as he ariseth whom the devil hath prostrated by (his) touch. As for him who returneth (to Usury) - such are rightful owners of Fire. They will abide therein.

Surah II – 276: Allah hath blighted usury and made almsgiving fruitful.

Surah II – 278: O ye who believe! Observe your duty to Allah, and give up what remaineth (due to you) for usury, if ye are (in truth) believers.

Surah III – 130: Devour not usury, doubling and quadrupling (the sum lent).

Surah XXX - 39: That which ye give in usury in order that it may increase on (other) people’s property hath no increase with Allah; but that which ye give in charity, seeking Allah’s countenance, hath increase manifold.

The use of usury remains a source of contention within the Islamic world.

Deuteronomy 15:1-6

At the end of every seven years you must cancel debts.

A Jubilee Year