Specie is the sign of value. It is
evident that he who has occasion for this sign ought to pay for the use
of it, as well as for everything else that he has occasion for. All the
difference is that other things may be either hired or bought; while
money, which is the price of things, can only be hired, and not
bought.
[33]
To lend money without interest is certainly an action laudable and
extremely good; but it is obvious that it is only a counsel of religion,
and not a civil law.
In order that trade may be successfully carried on, it is necessary
that a price be fixed on the use of specie; but this should be very
inconsiderable. If it be too high, the merchant who sees that it will
cost him more in interest than he can gain by commerce will undertake
nothing; if there is no consideration to be paid for the use of specie,
nobody will lend it; and here too the merchant will undertake nothing.
I am mistaken when I say nobody will lend; the affairs of society
will ever make it necessary. Usury will be established, but with all the
disorders with which it has been constantly attended.
The laws of Mahomet confound usury with lending upon interest. Usury
increases in Mahometan countries in proportion to the severity of the
prohibition. The lender indemnifies himself for the danger he undergoes
of suffering the penalty.
In those eastern countries, the greater part of the people are
secure in nothing; there is hardly any proportion between the actual
possession of a sum and the hopes of receiving it again after having
lent it: usury, then, must be raised in proportion to the danger of
insolvency.
