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HIGH FINANCE

Part I

 

All Scripture references are to the Anglicised New International Version (NIV-UK) unless stated otherwise

 

But love your enemies, do good to them, and lend to them without expecting to get anything back.

Then your reward will be great, and you will be sons of the Most High,

because he is kind to the ungrateful and wicked.

Luke 6: 35

 

NO BIGGER THAN today’s decimal penny, Britain’s oldest Roman coin is a silver denarius. It has been dated to several hundred years BC and is one of over 5,000 found among a hoard unearthed at Hallaton, Leicestershire. The cache also includes native British money. The Celtic Corieltavi tribe struck their coins in gold, silver and bronze, examples of which appear in the Hallaton collection. The single largest discovery of coins in Britain was near Marlborough, Wiltshire, in 1978; it contained over 54,000 items.

 

Pennies From Heaven

The discovery of these treasure troves, drawn from the earth centuries after burial, underscores the illusory value of riches, mouldering in the ground unspent, reminiscent of the one-talent man of Matthew 25: 18 (‘dug a hole . . . hid his Master’s money.’). Jesus exhorted His disciples to eschew earthly fortune and instead to store up heavenly treasure (Matthew 6: 20):-

 

But store up for yourselves treasures in heaven, where moth and rust do not destroy, and where thieves do not break in and steal.

 

More complex than self-sufficiency, in which individual families live off the land, progressive civilisation requires a transactional interdependence between communities. Where the particular employment of one segment of society excludes it from providing its own food, it is necessary to exchange the value of one’s labour with that of another’s, usually in some tangible form. Metals were used in this way prior to coinage.

 

Gold, silver and copper are rust-resistant, hold a universal value and thus became generally accepted in transactions. Gold was in scarce supply and esteemed more highly than other metals. When used in trade, metals were valued by weight. See, for example, the beautiful account in Genesis 23, which records Abraham’s negotiation with the Hittites for the cave at Machpelah in which to bury his wife. Verse 16 reads:-

 

Abraham agreed to Ephron’s terms and weighed out for him the price he had named in the hearing of the Hittites: four hundred shekels of silver, according to the weight current among the merchants.

 

Herodotus in his Histories makes reference to the coinage minted by Croesus of Lydia in the sixth century BC. The Persian king, Darius I, issued gold darics bearing his image, about the same time. A recognisable image of a state’s ruler validated coins as genuine and allowed them to be accepted at face value, without the necessity of weighing them. This imprint transformed the monetary system.

 

Heads . . . Or Tails?

The word ‘currency’ is derived from the Latin, currere, meaning ‘to run’, suggesting that the medium is in perpetual exchange. A healthy circulation of specie means that business is brisk and that the economy is lively with people buying and selling. But not everyone can participate equally in a free market. The distribution of currency is uneven and influenced by many factors.

 

Inequality of wealth has created borrowers and lenders, with all the benefits and abuses that flow from the imbalanced relationship between these two classes. The Old Testament addresses the problem; indeed, God links the financial health of Israel with its spiritual well-being in Deuteronomy 28: 13. If the nation obeys,

 

The LORD will make you the head, not the tail. If you pay attention to the commands of the LORD your God that I give you this day and carefully follow them, you will always be at the top, never at the bottom.

 

And, to the contrary in vs. 43, 44,

 

The alien who lives among you will rise above you higher and higher, but you will sink lower and lower. He will lend to you, but you will not lend to him. He will be the head, but you will be the tail.

 

The Old Testament outlawed the charging of interest to fellow-Israelites, but allowed for a reasonable rate when lending to others (Deuteronomy 23: 19, 20):-

 

Do not charge your brother interest, whether on money or food or anything else that may earn interest. You may charge a foreigner interest, but not a brother Israelite, so that the LORD your God may bless you in everything you put your hand to in the land you are entering to possess.

 

The admonition was apparently intended to cultivate charity and generosity in the heart of the lender. At the time, Israel was a largely agricultural economy and any profit would be realised from cultivation of the land and the selling of the produce. God promised to bless with prosperity those who followed the righteousness of His laws (Deuteronomy 7: 11-13):-

 

Therefore, take care to follow the commands, decrees and laws I give you today. If you pay attention to these laws and are careful to follow them, then the LORD your God will keep his covenant of love with you, as he swore to your forefathers. He will love you and bless you and increase your numbers. He will bless the fruit of your womb, the crops of your land— your grain, new wine and oil . . . .

 

The Christian World

Harking back to the parable of the talents, although Jesus intended to teach a religious lesson, the story suggests that Jesus Himself considered (modest) interest on a business loan to be proper (Matthew 25: 26, 27):-

 

His master replied, ‘You wicked, lazy servant! . . . you should have put my money on deposit with the bankers, so that when I returned I would have received it back with interest.’

 

The Roman Catholic church forbad the charging of interest on loans made by its clergy. In the fifth century the church widened the canon law to cover the laity, and under Emperor Charlemagne in the ninth century exorbitant charges were ruled a criminal offence. The ban continued into the Middle Ages.[fn1] However, these restrictions tended to stifle innovation in finance.

 

The Jews of Europe were not counted as citizens in many of the Gentile nations in which they lived. Excluded from other professions, they became money lenders. As skilful business men in their own right and disciplined to thrift by their religious duties, a number of Jewish families became renowned financiers.[fn2] In Shakespeare’s The Merchant of Venice, Shylock is cast as the exacting lender who demands his just recompense (‘pound of flesh’). The stage character was portrayed with the meanest features, to fit the prejudices of Shakespeare’s audience. Regardless of their reputation, it was the Rothschilds, Goldsmiths and other Jewish businessmen and financiers who helped to make Britain wealthy.

 

To Be Continued

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NOTES

Citations to Web pages are correct as of the dates retrieved, but sites may expire or be moved.

 

^[fn1] Wayne A.M. Visser and Alastair McIntosh, History of Usury Prohibition (Accounting, Business & Financial History, 8:2, Routledge, London, July 1998), pp. 175-189.

The article is available from the website of Alastair McIntosh here:-

<http://www.alastairmcintosh.com/articles/1998_usury.htm> (retrieved 26 December 2011).

 

^[fn2] William of Malmesbury wrote of Jews coming to England with William the Conqueror. A history of Jews in England is given in the Jewish Encyclopedia under the entry for England. The unedited text of the 1906 Jewish Encyclopedia is given online here:-

<http://www.jewishencyclopedia.com/articles/5764-england> (retrieved 26 December 2011).

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Article copyright January 2012 by ukbiblestudents.co.uk

You are free to reproduce any or all of this material, but please let us know if you do so.

 

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