The Jewish Origins of Usury

One of the most hated practices in history is that of usury (Interest) and many people associate the invention (or at least major exponents) of usury with the jews. (1) Traditionally this has been poohpoohed by jewish and philo-Semitic historians and writers with various methods of obfuscation being used with the most common being the claim that ‘non-jews were engaging in but the jews outlawed’ and that ‘non-jews blamed it on jews when they were in fact doing it just as much if not more than the jews’. These arguments against the idea that jews as a group often engaged in usury are beyond the scope of this article and I will address these separately.

However, the argument that is probably the most used is the claim that the jews ‘didn’t invent usury’ and ‘were the first to regulate it’.

The argument goes that usury existed before the jews first appear onto the stage of history and usually the Code of Hammurabi (c. 1775 B.C.) is bought up as an example of usury being legislated against before jews appear in history.

The problem with this argument is that it completely mischaracterizes the nature of laws on interest that came before the Biblical prohibitions and especially Deuteronomy 23:19-20 which states that:

‘When you lend money, food, or anything else to another Israelite, you are not allowed to charge interest. You can charge a foreigner interest. But if you charge other Israelites interest, the Lord your God will not let you be successful in the land you are about to take.’ (2)

Since the bland statement in Deuteronomy that interest cannot be charged to an Israelite (= jew) but can be charged to a foreigner (= non-jew) is completely unique in the history of interest rates in the ancient/classical world. (3)

Further – as Robert Maloney is careful to note – while some of the discussions of ancient texts as regards legislation around interest rates and creditor/debtor ‘are often not clear’. (4) The fact remains that strict limitations were put on rates of interest as well as the treatment of creditors and debtors in the ancient Near East and only ancient Israel had any kind of blanket ban on taking interest. (5)

The first direct mention of the charging of interest occurs in the Laws of Eshnunna during the Old Babylonian period and date to shortly before the Code of Hammurabi.

RTWT @ Renegade Tribune