[Footnote 191-12: Compare _Gioja_, Nuovo Prospetto, III, 190. The canon law desired to put an interdict on their taking interest also: Decret. Greg., V, tit. 19, 12, 18. Frequently, also, a minimum of interest was provided for them: Ordonnances de la Fr., L. 53 seq. II, 575. Receuil des anciennes, Lois, I, 149, 152. John of France extended this to four _deniers_ per _livre_ per week, that is, annually 86-2/3 per cent.! (_J. B. Say_, Traité II, ch. 8.) In Austria, in 1244, 174 per cent. allowed! (_Rizy_, Ueber Zinstaxen und Wuchergesetze, 1859, 72 ff.)] SECTION CXCII. INTEREST-POLICY.--GOVERNMENT INTERFERENCE.--FIXED RATES. Instead of the medieval prohibition of interest, most modern states have established fixed rates of interest, the exceeding or evasion of which, by contract or otherwise, is declared null and void, and is usually punishable as usury.[192-1] If the fixing of the rate is intended to depress the rate of interest customary in the country,[192-2] [192-3] it uniformly fails of its object. If control were great enough, vigilant and rigid enough, which is scarcely imaginable, to prevent all violations of the law, it is certain that less capital would be loaned than had been, for the reason that every owner of capital would be largely interested in employing his capital in production of his own. More capital, too, would go into foreign parts, and there would be less saved by those not engaged in any enterprise of their own. All of this would happen to the undoubted prejudice of the nation's entire economy.[192-4] [192-5] If, on the other hand, the control by the government be not great enough, the law would, in most cases, be evaded; especially as each party, creditor as well as debtor, would find it to his advantage to evade it. The latter, who otherwise would not be able to borrow at all, is, as a rule, more in need of obtaining the loan, than the creditor is to invest his capital. How easily, therefore, might he be induced to bind himself by oath or by word of honor![192-6] He would, moreover, be compelled to pay the creditor not only the natural interest and the ordinary insurance premium, but also for the special risk he runs when he violates the law threatening him with a severe penalty.[192-7] Hence the last result is either a material enhancement of the difficulty of obtaining loans or an enhancement of the rate of interest.[192-8] [Footnote 192-1: This is, historically, the second meaning of the word usury, while in the middle ages, for instance in England, under Elizabeth (_D. Hume_), the taking of any interest whatever was called usury. Science should employ this word only in the sense used in § 113.]