72 AN INTRODUCTION TO ISLAMIC FINANCE
when money began to play a critical role in large - scale commercial transac-
tions and was treated as capital, there were arguments that equated interest
with rent on capital, similar to the charging of rent for physical factors of
production. With the emergence of the Protestant Reformation and the rise
of capitalism, usury was accepted on the grounds that it was sinful only if it
hurt one’s neighbor, and that was a matter for each individual to determine.
Thus, factors such as changing business practices, the rise of capitalism
and pro - usury movements such as the Reformation, led, sometime around
1620, to the practice of usury making a transition from being an offence
against public morality, which a Christian government was expected to sup-
press, to being a matter of private conscience. At the same time, a new
generation of Christian moralists redefi ned usury as excessive interest. For
example, the teachings of John Calvin (1509–64) led to the emergence of the
Calvinist bankers in Geneva, who were free to develop their fi nancial inter-
ests without any feelings of guilt, provided that they observed the Christian
teaching on justice to the poor, and that they were totally honest in their
dealings. The Catholic Church, however, continued its opposition to usury.
In 1740, for example, the Pope vehemently condemned a bond issued at a
low rate of 4 percent by the city of Verona. This also indicates that as late
as the eighteenth century, the Christian understanding of usury was that it
included any form and level of interest and did not refer to excessive inter-
est alone.
Prohibition of Usury in the Bible
In addition to the above - mentioned scriptures in the Judaic tradition,
Christians could point to many other texts from the Old Testament to jus-
tify the view that usury in all its forms was forbidden. These include:
“He that by usury and unjust gain increaseth his substance, he shall
gather it for him that will pity the poor.” (Proverbs 28:8)
“He that putteth not out his money to usury, nor taketh reward against
the innocent. He that doeth these things shall never be moved.” (Psalm 15:5)
“Woe is me, my mother, that thou hast borne me a man of strife and a
man of contention to the whole earth! I have neither lent on usury, nor men
have lent to me on usury [interest]; yet every one of them doth curse me.”
(Jeremiah 15:10)
“He that hath not given forth upon usury, neither hath taken any
increase, that hath withdrawn his hand from iniquity, hath executed true
judgment between man and man.. .” (Ezekiel 18:8)
“In thee have they taken gifts to shed blood; thou hast taken usury
[interest] and increase, and thou hast greedily gained of thy neighbors by
extortion, and hast forgotten me, saith the Lord God.” ( Nehemiah 5:7) and
“Then I consulted with myself, and I rebuked the nobles, and the rulers,
and said unto them, Ye exact usury [interest], every one of his brother. And
I set a great assembly against them.” (Ezekiel 22:12).