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Defence of Usury

Jeremy Bentham

Language:
English
Status:
Complete work
Authorship:
Written by the author
Condition of the text:
No scanning noise detected (automatic measure over the whole text, not checked by hand)
Extent:
~45,300 words · 215 passages
Cite this work
  • APAJeremy Bentham. (n.d.). Defence of Usury. Digital reproduction: SigPhi. https://sigphiai.com/en/works/jeremy-bentham/defence-of-usury
  • MLAJeremy Bentham. Defence of Usury. Digital reproduction, SigPhi, https://sigphiai.com/en/works/jeremy-bentham/defence-of-usury.
  • ChicagoJeremy Bentham. Defence of Usury. Digital reproduction, SigPhi. https://sigphiai.com/en/works/jeremy-bentham/defence-of-usury.

Reference to the edition that SigPhi reproduces: SigPhi is its digital reproduction, not its publisher. The edition's year is not in the metadata (hence "n.d."), and the translator appears only when recorded.

What it is about

Defence of Usury (1787): against legal caps on the rate of interest.

Context and history

Written as letters from Russia. The argument is that no adult should be prevented from agreeing the price of a loan. Adam Smith, who did defend a cap, later conceded that Bentham was right — one of the few times he is seen to give way.

Editorial context, not a citable source: unlike the passages of the work itself, these statements cannot be checked against the corpus.

How it begins
To put a stop to prodigality, if indeed it be worth while, I know but of one effectual course that can be taken, in addition to the incompleat and insufficient courses at present practicable, and that is, to put the convicted prodigal under an interdict, as was practised formerly among the Romans, and is still practised among the French, and other nations who have taken the Roman law for the ground-work of their own. But to discuss the expediency, or sketch out the details of such an institution, belongs not to the present purpose. LETT. IV. Reasons for Restraint. LETTER IV. Reasons for Restraint Protection of Indigence. BESIDES prodigals, there are three other classes of persons, and but three, for whose security I can conceive these restrictive laws to have been designed. I mean the indigent, the rashly enterprizing, and the simple : those whose pecuniary necessities may dispose them to give an interest above the ordinary rate, rather than not have it, and those who, from rashness, may be disposed to venture upon giving such a rate, or from carelessness combined with ignorance, may be disposed to acquiesce in it. In Protection of Indigence. S3 In Protection of Indigence. S3 In speaking of these three different classes of persons, I must beg leave to consider one of them at a time : and accordingly, in speaking of the indigent, I must consider indigence in the first place as untinctured with simplicity. On this occasion, I may suppose, and ought to suppose, no particular defect in a man's judgment, or his temper, that should mislead him, more than the ordinary run of men. He knows what is his interest as well as they do, and is as well disposed and able to pursue it as they are.…

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