214 ADDRESS TO THE [LECT. 



that interest is expressly forbidden in the Koran or 

 rather, perhaps, to a certain extent, in consequence of 

 that prohibition the ordinary rate is three or four 

 times as high as in Europe. In England, after the 

 Conquest, as in most other Christian countries at that 

 time, interest was expressly prohibited, both by civil 

 and ecclesiastical law ; while, as the Jews were allowed 

 under the Mosaic dispensation to charge interest to 

 strangers, the business of money-lending fell naturally 

 into their hands. Subsequently a similar privilege was 

 accorded to the Italian or Lombard merchants from 

 whom, of course, Lombard Street, still the centre of 

 banking, derived its name. 



In the reign of Henry the Eighth, a statute was passed 

 legalizing interest to the extent of 10 per cent., under 

 James the First it was lowered to 8 per cent., under 

 the Republic to 6 per cent., and in the time of Queen 

 Anne to 5 per cent., and the usury laws were not 

 altogether abolished till 1839. As regards Scotland, 

 interest was altogether illegal until the Reformation. 

 In 1587 it was legalized up to 10 per cent. This Act 

 was repealed in 1552, but revived in 1571, the effect of 

 rendering interest once more illegal having been to raise 

 it from 10 to 14 per cent. Subsequently, in 1633, 

 the legal rate was reduced to 8 per cent., and in 1661, 

 to 6 per cent. In Ireland, interest was forbidden until 

 1635, when it was legalized up to 10 per cent., reduced 

 in 1704 to 8 per cent., in 1722 to 7 per cent., and in 

 1732 to 6 per cent. The statute of Anne, above alluded 

 to, applied to the whole kingdom. In 1 8 1 8, a Committee 

 of the House of Commons was appointed, which reported 

 strongly against the usury laws, but even then so strong 



