Usury

Consumptible goods are goods which are consumed by being used-such, for instance, as food, or fuel for the fire. When such goods are borrowed, they are to be returned in kind and inthe amount borrowed. Nonconsumptible goods, such as houses, farm animals, machines, fields, articles of clothing, are not used up by being used. When such goods are borrowed, they are to be returned themselves. And for the service rendered by their use,their owner may charge rent or hire. Now, money is consumed in being used. Hence, to charge for its use, in addition to its substance, is to charge for something which does not exist. Money charged for the use of money is usury, and usury is unjust and unlawful. {-Moralists now say that, since the day of St. Thomas, money has taken on the character of a fruitful orquasi-fruitful commodity; they say money actually does produce money, and hence gives to the borrower more than the substance ofthe loan. Therefore, a reasonable charge for the use of money is lawful. Such lawful money-rent is called interest. Usuryis excessive and unjust interest. This is the modern meaning of the terms. To St. Thomas-and rightly, in view of the place and function of money in his times-any interest at all is usury, and is unjust and forbidden.-}

Nor can a man exact some other kind of goods than money in consideration for a money-loan. At any rate, he cannot exact goods that can be estimated in terms of money, for to demand such goods would be only to demand usury in another form.

If a person gets money, or other consumptibles, by usury, he must restore what he got. Yet if a man who holds a usurious commodity gets profit from it by his own effort and industry, he is not bound to restore this earnedincrement. Thus, if a man exacts six bushels of wheat for a loan of five bushels, he is bound to give back that one extra bushel of wheat. But if he planted all six bushels when the loan was paid back to him (that is, he planted his own five bushels, and theusuriously exacted bushel), he is not bound to restore one-sixth ofhis whole crop to the man upon whom he practiced the usury. He is bound to restore the one bushel he had no right to take. But if aman extorts productive goods (nonconsumptibles) by usury, such as houses or lands for instance, he is bound to restore the goods themselves and whatever profits have accrued to him by holding them.

A man who freely chooses to submit to usury, andborrows money at a set rate, does not sin by the action provided his purpose and intention are good.