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Rickaby, Joseph , S. J., 1845-1932

"Moral Philosophy"

" _Mutuum_, be it observed, is a loan for a definite period,
of some article, the use of which lies in its consumption, as matches,
fuel, food, and, in one respect, money. We shall prove this to be
properly a _gratuitous_ contract. (s. iv., n. 4, p. 254.)
7. Usury then is no mere taking of exorbitant interest. There is no
question of more or less, but it is usury to take any interest at all
upon the loan of a piece of property, which
(a) is of no use except to be used up, spent, consumed:
(b) is not wanted for the lender's own consumption within the period
of the loan:
(c) is lent upon security that obviates risk:
(d) is so lent that the lender foregoes no occasion of lawful gain by
lending it.
8. When all these four conditions are fulfilled, and yet interest is
exacted upon a loan, such interest is usurious and unjust. And why?
Simply by reason of the principle that we laid down before, speaking
of private exchange (n. 3), a principle that is thus stated by St.
Thomas:
"If one party is much benefited by the commodity which he receives of
the other, while the other, the seller, is not a loser by going
without the article, no extra price must be put on.


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