USURY, in a strict sense, is a contract upon the loan of money, to give the lend er a certain profit for the use of it, upon all events, whether the borrower made any advantage of it, or the lender suffer ed any prejudice for the want of it, or whether it be repaid at the appointed time or not ; and in a large sense, it seems, that all undue advantages, taken by a lender against a borrower, come un der the notion of usury.
The statute 12 Anne, c. 16, enacts that no person, upon any contract which shall be made, shall take for loan of any money, wares, &c. above the value of Si. for the forbearance of 1001. for a year ; and all bonds and assurances for the payment of any money to be lent upon usury, where upon or whereby there shall be reserved, or taken, above five pounds in the hun dred, shall be void ; and every person who shall receive, by means of any cor rupt bargain, loan, exchange, shift, or in terest, of any wares, or other things, or by any deceitful way, for forbearing, or giving day of payMent for one year, for their money or other things, above 51. for 100/. for a year, &c. shall forfeit treble the value of the monies or other things lent.
But if a contract, which carries inte rest, be made in a foreign country, our courts will direct the payment of interest, according to the law of that country in which the contract was made. Thus,
Irish, American, Turkish, and Indian in terest have been allowed in our courts, to the amount of each 12/. per cent. For the moderation or exorbitance of interest depends upon local circumstances ; and the refusal to enforce such contracts would put a stop to all foreign trade.
It may be considered as a general rule, that whatever is taken for interest can by no trick or contrivance be so concealed as to evade the general words of this sta tute. It is a question in politics, whether the laws against usury are good for any thing, except to afford government a mo nopoly in the borrowing of loans. Where advantage is taken of ignorance or distress, equity would relieve in all cases. But surely it is hard to prevent men from making the fair price of the loan of mo ney. A maximum is always injurious. The real price of interest is not well set tled, and usurers are compelled to be ex orbitant to indemnify themselves of ex traordinary risks.