Principles of Political Economy, Vol. 2Roscher, Wilhelm
General
Principles of Political Economy, Vol. 2
Roscher, Wilhelm
Economics
[Footnote 191-9: A Prussian law allowing interest even
without a contract of rent-purchase as far back as 1385.
(_Voigt_, Geschich. von Preussen, V, 467.) In Marseilles, in
1406, a rate of interest of ten per cent. allowed.
(_Anderson_, Origin of Commerce, s. a.) Likewise in England,
37 Henry VIII., c. 9. In Brandenburg, 1565, 6 per cent.
(_Mylius_, C. C., March, II, 1, 11.) A retrograde step by 5
and 6 Edward VI., c. 20; by which all interest was again
prohibited. These laws had, practically, the effect of
increasing interest to 14 per cent., and were therefore
repealed in 1571. How unnatural the prohibition was is
apparent from the fact that by 4 and 5 Philip and Mary, c.
2, the possessor of 1,000 marks was estimated equal to a
person with £200 annual income. In Denmark, the taking of
interest at 5 per cent. was allowed in 1554, since "although
it is contrary to God's command, yet [according to an
opinion given by _Melanchthon_] this commerce cannot be
entirely abolished." (_Kolderup-Rosenvinge's_ Dänische R.
G., in _Homeyer_, § 142.) Similar views of the elector
Augustus, 1583. (Cod. August 1, 139 ff.)
The German Empire, in 1600, allowed the debtor to contract
that, in case of delay, the contract might be declared
annulled. In France, on the other hand, even during the 18th
century, nearly all loans were made in the form of
_rent-purchase_ (_Law_, Trade and Money, 127), and the
creditor could declare the contract void only in case the
debtor did not pay him the rent. (_Warnkönig_, Franz. R. G.,
II, 585 ff.) For strictly Catholic countries, the prohibition
relating to the taking of interest still really remains.
However, _Leo X.'s_ bull, Inter multiplices, exempts the
so-called _monti di pietà_, and by this means put obstacles
in the way of saving, and promoted real usury. Of this last,
_Niebuhr_, Briefe, II, 399, adduces very striking instances
from the Pope's own temporal dominion. In the case of
pledge, even 12 per cent. per annum is required. (Rom im
Jahr, 1833, 163.) Yet, in 1830, the Poenitentiaria Romana
instructed the clergy, without, however, deciding the chief
question, not to disquiet people any longer in the
confessional who had taken interest. (_Guillaumin_,
Dictionnaire de l'Economie politique, art. usure.) On the
Russian Sect, _Staroverzen_, which still condemns the taking
of interest, see _Storch_, Handbuch, II, 19. By the Russian
government it was permitted very early. _Ewers_, Ältestes
Recht der R., 323 seq.]
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