USURY: OR INTEREST, PREMIUM AND DISCOUNT. A LECTURE DELIVERED BEFORE THE STUDENTS OF CRITTENDEN’S Philadelphia Commercial College, BY S. H. CRITTENDEN, Attorney at Law, CONSULTING ACCOUNTANT AND PRINCIPAL. PHILADELPHIA: RINGWALT & BROWN, STEAM-POWER BOOK AND JOB PRINTERS, Nos. 111 & 113 SOUTH FOURTH STREET. 1863. USURY: OR Interest, Premium and Discount. A LECTURE[A] DELIVERED BEFORE THE STUDENTS OF CRITTENDEN’S PHILADELPHIA COMMERCIAL COLLEGE, BY S. H. CRITTENDEN, ATTORNEY AT LAW, PRINCIPAL. Our subject to-day is USURY. We will first speak of this subject in its direct relation to Book-Keeping. That is, as to its treatment under different forms, on the Ledger, since this is in reality the phase in which it is of most importance for us to consider it. Afterwards we will glance at the matter in the view of utility, economy and legality. The ledger titles which embrace this subject, are Interest, Discount and Premium. These are all often, and indeed generally, embodied in one account, headed Interest, yet they are radically different divisions of the account, both in their nature and manner of computation; although all tending to one point, when placed upon the merchant’s books, viz: to add to his total gains or losses. McCullock’s Commercial Dictionary has the following definitions of Interest and Discount: “_Interest_, is the sum paid by the borrower of a sum of money, or of any sort of valuable produce, to the lender, for its use.” “_Discount_, is an allowance made on account of an immediate advance of a sum of money, not due till some future period.” _Premium_, according to Webster’s Dictionary, is “a bounty, or something offered or given for the loan of money, _usually_ a sum beyond the interest.” These definitions, though not full, will yet serve as a foundation on which to construct an explanation that may make these terms more easy of comprehension. You perceive that in order to apply the definition of Interest, which I have quoted, we must look upon every person who is indebted to another, as a borrower; that is, as having in his possession, certain property which belongs of right to that other person; and for retaining the use of which he must pay him an equivalent. If you consider in this light all transactions in which Interest is demanded and paid, this portion of the subject will perhaps be sufficiently plain without additional comment. It is in relation to the second division of the account that most confusion usually arises. There are not less than three distinct transactions, which are all included in the usual language of business men, under the single term _Discount_. They are: 1st. When a deduction is made for payment of a note or account before due; 2d. When a per centage is taken off from a sale, in consideration of ready money; 3d. When money is remitted from one country to another, at an additional expense or at a loss.