It is amusing to read that The School of Salamanca shows that the teachings of the Bible are completely compatible with the notions of free markets

Martín de Azpilcueta (1492?-1586)

 

Completely compatible, except for the usury lol.

Studying in the School of Salamanca

Daniel Lacalle, The Acton Institute 

 

The School of Salamanca was key to the development of our understanding of the importance of human action and freedom as basic principles of prosperity and growth, but also the moral superiority of free trade, private property rights, and economic freedom. Salamanca also reminds us that the moral principles of Catholic doctrine and the teachings of the Bible are completely compatible with the notions of free markets, individual liberty, and small government. ...

The Salamanca scholars also highlighted the importance of interest rates, not as a measure of greed but as a measure of risk. In his writings, Azpilcueta asserted that “the lender may licitly demand something beyond the principal, because he loses the chance to profit from that money in some other way.” Any loan involving capital investment necessitates an interest rate to differentiate it from other loans that are either less risky or less vital for society.

Interest rates serve as a moral guideline to determine the most effective way to use capital, making it worthwhile for lenders to take risk and lend to those who will return it safely, quickly, and productively, thus making the virtuous credit cycle the most effective way to get capital to work. At the time, it was common to think that charging interest was immoral, and that speculators, bankers, and the financial sector in general existed only to exploit the most productive sectors of society. Scholars from the School of Salamanca took the counterintuitive position that charging interest played a crucial role in enhancing opportunities for business, traders, and ultimately the growth of the most productive sectors. ...

  

Gee, why was it common to think that usury was immoral and exploitative at the time? 

 

If thou lend money to any of my people that is poor by thee, thou shalt not be to him as an usurer, neither shalt thou lay upon him usury.

-- Exodus 22:25

Take thou no usury of him, or increase: but fear thy God; that thy brother may live with thee.

-- Exodus 25:36

Thou shalt not give him thy money upon usury, nor lend him thy victuals for increase.

-- Leviticus 25:37

Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury:

-- Deuteronomy 23:19

Unto a stranger thou mayest lend upon usury; but unto thy brother thou shalt not lend upon usury: that the LORD thy God may bless thee in all that thou settest thine hand to in the land whither thou goest to possess it.

-- Deuteronomy 23:20

When thou dost lend thy brother any thing, thou shalt not go into his house to fetch his pledge.

-- Deuteronomy 24:10 

Hath given forth upon usury, and hath taken increase: shall he then live? he shall not live: he hath done all these abominations; he shall surely die; his blood shall be upon him.

-- Ezekiel 18:13 

And if ye lend to them of whom ye hope to receive, what thank have ye? for sinners also lend to sinners, to receive as much again. But love ye your enemies, and do good, and lend, hoping for nothing again; and your reward shall be great, and ye shall be the children of the Highest: for he is kind unto the unthankful and to the evil.

-- Luke 6:34f.

 

As with the usurers who crept into Catholicism at Salamanca, they crept also into the Gospels, turning Jesus himself into a usurer.

Thou oughtest therefore to have put my money to the exchangers, and then at my coming I should have received mine own with usury.

-- Matthew 25:27

Wherefore then gavest not thou my money into the bank, that at my coming I might have required mine own with usury?

-- Luke 19:23

The Jesuits crept into Salamanca not far behind the usurers, the ground already prepared there for such casuistry. 

Meanwhile a Jesus who teaches giving everything away to the poor to become a disciple (Luke 14:33) wouldn't have any money himself left over for "the exchangers" or "the bank" to increase it, let alone money for the taxman:

Notwithstanding, lest we should offend them, go thou to the sea, and cast an hook, and take up the fish that first cometh up; and when thou hast opened his mouth, thou shalt find a piece of money: that take, and give unto them for me and thee. 

-- Matthew 17:27

Jesus' followers are to be as poor as their master, and utterly rely on their father in heaven: 

The disciple is not above his master: but every one that is perfect shall be as his master.

-- Luke 6:40

No servant can serve two masters: for either he will hate the one, and love the other; or else he will hold to the one, and despise the other. Ye cannot serve God and mammon. 

-- Luke 16:13 

The prophet Ezekiel opposed the spiritual determinism of the Torah, favoring instead the personal responsibility of the individual

The soul that sinneth, it shall die. The son shall not bear the iniquity of the father, neither shall the father bear the iniquity of the son: the righteousness of the righteous shall be upon him, and the wickedness of the wicked shall be upon him. 

-- Ezekiel 18:20 

Thou shalt not bow down thyself to them, nor serve them: for I the LORD thy God am a jealous God, visiting the iniquity of the fathers upon the children unto the third and fourth generation of them that hate me; 

-- Exodus 20:5

And the LORD passed by before him, and proclaimed, The LORD, The LORD God, merciful and gracious, longsuffering, and abundant in goodness and truth, Keeping mercy for thousands, forgiving iniquity and transgression and sin, and that will by no means clear the guilty; visiting the iniquity of the fathers upon the children, and upon the children's children, unto the third and to the fourth generation.  

-- Exodus 34:6f.

The LORD is longsuffering, and of great mercy, forgiving iniquity and transgression, and by no means clearing the guilty, visiting the iniquity of the fathers upon the children unto the third and fourth generation.

-- Numbers 14:18

Thou shalt not bow down thyself unto them, nor serve them: for I the LORD thy God am a jealous God, visiting the iniquity of the fathers upon the children unto the third and fourth generation of them that hate me,

-- Deuteronomy 5:9

'You show lovingkindness to thousands, and repay the iniquity of the fathers into the bosom of their children after them—the Great, the Mighty God, whose name is the LORD of hosts.'

-- Jeremiah 32:18

 

The Fourth Gospel notably makes the issue a burning one during the ministry of Jesus, but makes Jesus not exactly a Solomon for his take on it, which is reminiscent of his answer whether to pay taxes to Caesar or not:

And his disciples asked him, saying, Master, who did sin, this man, or his parents, that he was born blind? Jesus answered, Neither hath this man sinned, nor his parents: but that the works of God should be made manifest in him. 

-- John 9:2f.

Luke, however, presents a Jesus who takes no prisoners.

He clearly places Jesus against the view of Ezekiel. Jesus explicitly makes his own generation responsible, and liable, for the murder of ALL past prophets, all the way back to ABEL (Can't you just hear his defenders shouting, But this is clearly hyperbole!?):

That the blood of all the prophets, which was shed from the foundation of the world, may be required of this generation; From the blood of Abel unto the blood of Zacharias, which perished between the altar and the temple: verily I say unto you, It shall be required of this generation. 

-- Luke 11:50f.

And Matthew's gospel does the same:

That upon you may come all the righteous blood shed upon the earth, from the blood of righteous Abel unto the blood of Zacharias son of Barachias, whom ye slew between the temple and the altar. Verily I say unto you, All these things shall come upon this generation.

-- Matthew 23:35f. 

 

The truth is the Torah is also divided on the issue.

A proponent of the view of Ezekiel somehow sneaked it into the code and it won enough acceptance to become a touchstone:

The fathers shall not be put to death for the children, neither shall the children be put to death for the fathers: every man shall be put to death for his own sin. 

-- Deuteronomy 24:16

But the children of the murderers he slew not: according unto that which is written in the book of the law of Moses, wherein the LORD commanded, saying, The fathers shall not be put to death for the children, nor the children be put to death for the fathers; but every man shall be put to death for his own sin. 

-- II Kings 14:6

But he slew not their children, but did as it is written in the law in the book of Moses, where the LORD commanded, saying, The fathers shall not die for the children, neither shall the children die for the fathers, but every man shall die for his own sin.

-- II Chronicles 25:4

 

The perennial problems of good and evil, justice and mercy, the community and the individual, are mightily wrestled with by religion, but hardly resolved by it.

It could hardly be otherwise.

 

The Jesus who instructs at minimum to invest with usury obviously isn't the same Jesus who instructs to lend expecting nothing in return

The idea that Jesus would countenance usury at all is preposterous, whether as a law-loving Jew or as an eschatological prophet of impending final judgment.

The sayings of Matthew 25 and Luke 19, the Parable of the Ten Talents, blessing usury clearly stem from the period of later church reflection on the delay of the parousia. They stress being adequately prepared for the future coming, which has been unaccountably delayed. Time is dragging on interminably. The sayings fail miserably even to imagine how such preparation is in conflict with the law. They give no thought to it. They cannot be "historical".

The same is true of Matthew 5 and Luke 6, though to a lesser extent. The sayings of the Sermon on the Mount have been colored by the delay, too, but are closer in spirit to the thought of the historical Jesus, for whom giving instruction about lending at all would have made no sense but who might have countenanced such a discussion because it was a burning topic in the law and the prophets. Lending at interest of any kind to a "brother" was simply forbidden, though obviously much abused.

Like the Sermon generally, instruction about lending is instruction about and for an interim which Jesus never imagined would come. What we observe here is community reflection, by a community which has already stopped liquidating all possessions in obedience to the call to discipleship and which still has worldly goods to lend. The community is reflecting on what Jesus might have said on the subject, given his high view of the law. Clearly the solution given in Matthew 5 and especially in Luke 6 to lend expecting no return, not even of the principal, is in conflict with the Parable of the Ten Talents (again, Luke has the keener take on Jesus' eschatology and its implications). But the solution does reflect the spirit of the call to discipleship, if not the practice: Sell that thou hast, give to the poor, come follow me. To this extent it is closer to the historical Jesus.

It is remarkable how incoherent is the tradition and its redaction on this point.

 

Thou oughtest therefore to have put my money to the exchangers, and then at my coming I should have received mine own with usury ... from him that hath not shall be taken away even that which he hath.

-- Matthew 25:27,29

Wherefore then gavest not thou my money into the bank, that at my coming I might have required mine own with usury? ... from him that hath not, even that he hath shall be taken away from him.  

-- Luke 19:23,26

Give to him that asketh thee, and from him that would borrow of thee turn not thou away. 

-- Matthew 5:42

Give to every man that asketh of thee; and of him that taketh away thy goods ask them not again. ... But love ye your enemies, and do good, and lend, hoping for nothing again; and your reward shall be great, and ye shall be the children of the Highest: for he is kind unto the unthankful and to the evil.

-- Luke 6:30,35

If thou lend money to any of my people that is poor by thee, thou shalt not be to him as an usurer, neither shalt thou lay upon him usury.

-- Exodus 22:25

And if thy brother be waxen poor, and fallen in decay with thee; then thou shalt relieve him: yea, though he be a stranger, or a sojourner; that he may live with thee. Take thou no usury of him, or increase: but fear thy God; that thy brother may live with thee. Thou shalt not give him thy money upon usury, nor lend him thy victuals for increase. 

-- Leviticus 25:35ff. 

Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury: Unto a stranger thou mayest lend upon usury; but unto thy brother thou shalt not lend upon usury: that the LORD thy God may bless thee in all that thou settest thine hand to in the land whither thou goest to possess it.

-- Deuteronomy 23:19f.

LORD, who shall abide in thy tabernacle? who shall dwell in thy holy hill? ... He that putteth not out his money to usury, nor taketh reward against the innocent.

-- Psalm 15:1, 5

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, Hath walked in my statutes, and hath kept my judgments, to deal truly; he is just, he shall surely live, saith the Lord GOD.

-- Ezekiel 18:8f.

So likewise, whosoever he be of you that forsaketh not all that he hath, he cannot be my disciple.

-- Luke 14:33