WI: Church endorses money lending in Spain

[bobbis14]

In deeply Catholic spain of the 17th and 18th centuries the Church didn't endorse money lending as they saw it as immoral, this would have led to a massive boost to the merchant classes if allowed. So WI: Church endorses money lending in Spain, or at least allowed it though back channels like Jewish bankers Venice style?

 

[Condottiero]

That is not true. Please check the teachings of the School of Salamanca and other thinkers, you have the roots of modern economy there (value of the money in the time, inflaction,...) and they were priests (jesuits, dominics...).

 

[Dathi THorfinnsson]

In deeply Catholic spain of the 17th and 18th centuries the Church didn't endorse money lending as they saw it as immoral, this would have led to a massive boost to the merchant classes if allowed. So WI: Church endorses money lending in Spain, or at least allowed it though back channels like Jewish bankers Venice style?

Given the huge amounts of money that the Spanish Government borrowed, mortgaging their bullion shipments from the New World, 1) it's hard to see a claim that money lending was prohibited and 2) the government soaked up most of the available capital.

Also, the church during the Renaissance, was dead set against money lending in Italy. It's just that it was so profitable that people ignored the church. Initially with loopholes, then just ignored it.

So, it really has nothing to do with a difference in attitudes between Spain and Italy on the part of the Church, I don't think.

 

[john]

I don't think moneylending itself was considered bad, it was collecting interest (usury) on the money that was sinful. I think it was ok to lend money, but expecting or insisting on repayment is bad. The borrower is supposed to have a moral obligation to repay, just not with interest.

 

[Dathi THorfinnsson]

I don't think moneylending itself was considered bad, it was collecting interest (usury) on the money that was sinful. I think it was ok to lend money, but expecting or insisting on repayment is bad. The borrower is supposed to have a moral obligation to repay, just not with interest.

but who on earth would lend money if they can't get interest!?? Since you have a significant chance of losing the whole amount.

There WERE ways (like the modern sharia investments, to get around Islamic interest prohibitions) of INVESTING and collecting dividends, instead of lending and getting interest, but having both methods works much better.