CHAP. X. Of the Bristol Bargain, Pawn Bro∣cage, and Interest upon Interest.

FIrst Assertion. The Bristol-Bargain no Ʋsury. The Reason is, That the Gain made by it, is not for Lending, but a Real Purchase of an Annuity, to be paid for a set Number of Years. And tho' the Interest by the Seller's Industry, may come to more than Five or Six per Cent. this cannot make It Usury, other∣wise the Profit made by Selling and Buy∣ing, which in a Year, may exceed 20. would be Usury, to the destruction of Traffick.

Second Assertion. The Bristol Bargain, as represented, is both Just and Com∣mendable.

The Bargain as proposed to me some 20 Years ago, is this; Five hundred Pounds then running at Six per Cent. was given for an Annuity of T•• hundred Page  56Pounds to be Paid Yearly, the space of Seven Years. I then thought it safe, in Conscience, and still do, the more that I hear, 'tis warranted by Law; For it contains the requisit of Equality between the Price, and what's Bought, so that 'tis guilty of no Injustice; It is not purely for Lending, so that it is free from Usury. 'Tis true, the Purchaser by Putting out the hundred Pounds yearly Paid him in, upon the expiring of Seven Years, Reimburses his Capital, and comes to Gain 330 l. and somewhat more, but this, without the least Op∣pression of the Seller, who, I suppose, takes the Principal, in order to make a Purchase, or the Paying a Debt; and not able to pay in the Whole at once, is eased by Paying in yearly, a Hundred, and the last Two hundred, paid in lieu of Interest, falls short by Ten of the Current Interest at Six per Cent. So that albeit the Purchaser may Gain a hundred and Twenty Pounds, above the Current Interest, the Seller of the Annuity, gives less by Ten, and by consequence the Bargain is commendable.

Third Assertion Pawn Brocage, not to be excus'd from Ʋsury.

By Pawn-Brocage. I understand not, the taking a Pawn for Security, of or∣dinary Interest, without Power, of Alienating the said Pawn; But in the Assertion I mean the Practice, of taking more than the usual; and that Monthly, under forfeiture of the Pawn, in Case of Failure. This I take to be Ʋsury; my Reasons are.

First, It is expressly against Law, so that that the general Agreement, which justi∣fies the Common way, of Putting out Mony, is against Pawn-Brocage.

Secondly, The overplus a Pawn-broker takes, other Titles being fully Recom∣pense'd is presum'd to be taken purely for Lending.

Thirdly. 'Tis the pressing Necessity of the Poorer sort, which Pawn-brokers prey upon, Exacting no less, than Fifteen per Cent. and often more, to the great Oppression, of their Poor Brethren, which is the very Notion of Usury, deliver'd in Scripture.

Fourthly. Pawn-brokers are so Insured, of their Principal, by Pawn, that the Page  58Title of it Danger, and Trouble in Re∣covering it, almost wholly Vanishes. But Emergent Damage, and Cessation of Lucre, still remain.

Answ. Grant they do, which Brokers themselves know best, yet the Danger of Principal, equaling both, and ceasing; either Pawn-brokers are bound to take, but half Interest, upon those Considera∣tions, or others may taken the Double, for the Danger of the Prinicpal; But this would be Judg'd Extortion. Pawne-bro∣cage therefore, can be no better.

In favour of Prawn-Brocage, Presidents are taken from the Mounts, as they are call'd of Piety, Erected in most Catholick Cities, and approv'd of by the See Apostolick, as receiving something more than Current Interest, towards the Maintenance of Mi∣nisters and other requisits to that Pious Work.

Answ. The Disparity is great. First its no good Consequence, from Publick to Private Autority, for were it, whatever the Publick Acts, each Particular might Persume to do, to a Confusion of Order, and Justice. For example, vindicative Justice, as incumbent to the Publick, is Page  59a Vertue, yet to good President, for a private Man, to Revenge himself, This being reserv'd from him, as an Incompe∣tent judge. It doth not follow then, that Pawn-brocage Practis'd by those Mounts, and Administred by the Publick, may be put in use, by every Particular, Avarice being as dangerous a Passion, and as blind as Revenge.

Secondly. Those Mounts, are to take no more than what's precisely Necessary to uphold them, for Relief of the Poor, without making the least Gain to them∣selves. Pawn-brokers aim at raising For∣tunes.

Thirdly, It ensues that Pawn-brokers, are an agrievance to the Poor; whereas those Mounts, are an ease from the Dou∣ble, Treble, and more, which by Jews, and Jewish Brokers, would be Exacted of them; They were named Mounts from the Bulk of Mony Levied by the Prince, Magistrat, or Charitable Coutributions of Piety from the end they were Found∣ed, the Relief of the Poor.

Fourthly. If after a year, which is the space given to redeem the Pawn, the Pawn be Sold, Satisfaction being made Page  60for Principal and Interest, the Surplus is to be restored to the Borrower. How well, this is perform'd, by Pawn∣brokers, let their Conscience tell. How∣ever, according to the Law of Nature, they ought not to be their own Dealers, and take advantage from the Misery of the Poor. For this Reason I apprehend Leo the 10th. with the Approbation of the Lateran Council, held by his appoint∣ment, requires the Confirmation of the See Apostolick, to the Erecting the said Mounts. On what Authority then can Pawn-brokers rely, who not only Act without it, but consequently against it, and our National Laws? So that Reason and Authority duly considered, our As∣sertion holds.

Fourth, Assertion Interest upon In∣terest, as the words sound declares it self Ʋsury, they importing double Interest, for one and the same Principal, which is Exaction.

But the Case may be stated thus, a years Interest for example of Twenty Pound is due. Now in case of non Pay∣ment, and the Creditor demand new In∣terest, for what's unpay'd, from the time it was due?

Answ. If the Creditor at the due time, demands not his Interest, but voluntarily lets it run on, by way of for bearance, he can demand nothing, by reason the forbear∣ance, as being of his own free Will, invests the Nature of a Gift, for which as such, nothing can be required, and so to take In∣terest, for what still remains Interest, as never having been Converted, into a Principal, would be Usury. But suppose the Creditor, in due time call for his Interest, and by Agreement, with the Debtor, in place of receiving it, Converts it into a Principal. I see no Usury in it, for as he may joyn an other Sum to the former, so he may the Interest; and the Consideration to be had for it, cannot be said to be Interest, upon Interest, but up∣on what was Interest, and is now become a Principal.

What if the Debtor being call'd upon, re∣fuse to Pay what's due?

Answ. The Case is the same. For from the time 'tis Challeng'd, the Debtor is an unjust detainer of what would be a Principal, in the Creditor's hands, and capable of improving; now the loss of the said Improvement, is to be made Good.

Wherefore the Civil Law distin∣guishes Usury of pure Gain, for Lending, and Usury of Compensation. The first is ever forbidden, the second is allow'd of (L. Socium. ff. pro socio.) Where if a Partner defers to Pay in due time, his fellow Partner, 'tis thus decided: Ʋsu∣ras quoquae praestare debet, sed non quasi Ʋsu∣ras, sed quod socii Interest, Moram eam ad∣hibuisse. He must also PayƲsury, not as Ʋsury, but because it concerns a Partner, that he hsould not suffer by Delay, and L. Usuras Cod. de Usuris. Cogitur Emptor qui in Solutionis Mora est Ʋsuras insuper solvere Venditori. The Buyer who defers Payment, is to Pay over and above, Interest to the Seller.

Notwithstanding what has been said, if we have any Peculiar Law, against taking Interest for what was Interest; I Think it not safe in Conscience to require it. Law being a Rule of Property and consequently just Gain. And there may be just Reason for the Laws for bidding it. viz. to put a Stop to the Ruin of Fa∣milies which certainly attends such, as either cannot, or neglect to Pay the first Interest. For the burden, of a new Payment coming upon them, will render them less able to Pay the Second.

Having performed, I hope as far as Necessary, the first Part of my Task, in clearing the Putting out Mony at Use, from the foul Scandal of Usury, by con∣fronting it with the Law of Nature, as interpreted by Divines, and Lawyers, I conclude with an Answer to the Com∣plaint of Du Tertre: That if Divers by taking up Mony, run themselves into Poverty; others by Putting out, for∣feit their Principal, 'tis the fault of Parti∣culars, and no want of Provision in the Law, which by moderating Interest, pro∣vides for the First against Extortion; and allows to the Second, the Security they shall require. Casualties ought not to be Rules, otherwise on the same Ac∣count, all Trades must Cease, since a Profession which is one Man's Making, is often the Undoing of another. One by taking up Mony clears his Estate, and prevents great Mischiefs; or Recruits his sinking Trade and Reputation; ano∣ther Redoubles his Debts; the Fault is not in taking up the Mony, but in the Management.