Chapter XXXV: (Continued) (5)

“In the question of commerce and the charging of interest,” says Julius Köstlin in his “Theologie Luthers,” “he displays, for all his acumen, an unmistakable lack of insight into the true value for social life of trade—particularly of that trade on a large scale with which we are here specially concerned—in spite of all the sins and vexations which it brings with it, or into the importance of loans at interest—something very different from loans to the poor—for the furthering of work and the development of the land.”[301]

With reference to what Köstlin here says it must, however, be again pointed out that Luther’s lack of insight may be explained to some extent “by the great change which was just then coming over the economic life of Germany.” It must also be added, that, in Luther’s case, the struggle against usury was in itself a courageous and deserving work, and, that, hand in hand with it, went those warm exhortations to charity which he knew so well how to combine with Christ’s Evangelical Counsels.

In his attack on the abuses connected with usury his indignation at the mischief, and his ardent longing to help the oppressed, frequently called forth impressive and heart-stirring words. Though, in what Luther said about usury and on the economic conditions of his day, we meet much that is vague, incorrect and passionate, yet, on the other hand, we also find some excellent hints and suggestions.[302]

It is notorious that the controversy regarding the lawfulness of interest, even of 5 per cent, on money loans, went on for a long time among theologians both Catholic and Protestant. The subject was also keenly debated among the 16th-century Jesuits. No theologian, however, succeeded in proving the sinfulness of the charging of a five per cent interest under the circumstances which then obtained in Germany. Attempts to have this generally prohibited under severe penalties were rejected by eminent Catholic theologians, for instance, in a memorandum of the Law and Divinity Faculties at Ingolstadt, dated August 2, 1580, which bore the signatures of all the professors.[303] On the Protestant side the contest led to disagreeable proceedings at Ratisbon, where, in 1588, five preachers, true to Luther’s injunctions, insisted firmly on the prohibition on theological grounds. They were expelled from the town by the magistrates, though this did not end the controversy.[304]

There was naturally no question at any time of enforcing the severe measures which Luther had advocated against those who charged interest; on the contrary the social disorders of the day promoted not merely the lending at moderate interest, but even actual usury of the worst character. When even Martin Bucer showed himself disposed to admit the lawfulness of taking twelve per cent interest George Lauterbecken, the Mansfeld councillor, wrote of him in his “Regentenbuch”: “What has become of the book Dr. Luther of blessed memory addressed to the ministers on the subject of usury, exhorting them most earnestly,” etc., etc.? Nobody now dreamt, so he complains, of putting in force the penalties decreed by Luther. “Where do we see in any of our countries which claim to be Evangelical anyone refused the Sacrament of the altar or Holy Baptism on account of usury? Where, agreeably to the Canons, are they forbidden to make a will? Where do we see one of them buried on the dungheap?”[305]