Up to the time of Reformation, it was forbidden to charge interest in
Europe, not least due to the prohibition of taking interests in the Old
Testament (Exodus 22, 25; Deuteronomy 23, 20f.). However, this prohibition was
actually eroded by many exceptions. The renowned Reformer John Calvin of Geneva
(1509-64) got to a fundamentally positive attitude as to the charging of
interests. He justified his attitude by maintaining that the intention of the
biblical prohibition was to protect one’s neighbor and especially the poor and
weak. Hence, also in matters of charging interest servicing one’s neighbor was
vital: He was led by the 8th commandment “Do not steal” (Ex. 20,15) and by the
Golden Rule “Do for others what you want them to do for you!” (Mt. 7, 12).
Thus, he developed the seven criteria (“exceptions” in French; “restrictions”
in English – a kind of qualifying exception) as a guideline to charging
interest (Calvin, Johannes: Corpus Reformatorum C.R. vol. 38/l, p. 248f.):
“The first restriction is that you
are not allowed to charge interest from the poor and that nobody may be forced
to pay interest when being in a plight or visited with misfortune.
The second restriction is that
anybody who lends money should neither be so anxious about profit that he
neglects his duties, nor should he – by safely investing his money – disrespect
his poor brothers.
The third restriction is that in
case of an interest-bearing loan one should not allow anything to interfere
that would not correspond to natural understanding (what is naturally just and
proper). And if the matter is checked according the rules of Christ, i.e. what
you want others to do for you etc., then it should be considered as generally
valid.
The fourth restriction is that
whoever borrows should profit as much or even more from the borrowed money
(than the creditor).
Fifth, we should neither judge
according the usual and traditional customs (concerning the charging of
interests) what we are allowed to do, nor measure injustices against what is
right and proper; much rather should we draw our behavior from the word of God.
Sixth, we should not only consider
the personal benefit of those with whom we have to deal with, but also should
we take into account what may be in the public interest and serve the community
as a whole. Because it is manifest that the interest paid by the merchant
equals a public attainment. Therefore, great care has to be taken to make the
agreement serve the public good more than it may damage it.
Seventh, one should not overstep the
limits set by the local or regional laws, although this is not always enough,
as they often allow what cannot be amended or restricted by law. Hence, one
needs to give preference to what is just and proper under the circumstances and
restrict whatever may go beyond.”
Eclof/Oikocredit
Seminar 23 november 2000
Christoph
Stückelberger
(English translation from the German version)