INTEREST. 
-2fi 
by which the ehureh of Rome forbids the per- 
formance of divine service in a kingdom, 
province, town, &c. This censure ha been 
frequently executed in France, Italy, and 
Germany ; and in the year 1 P70 pope Alex- 
ander HI. put all England under an interdict, 
forbidding the clergy to perform anv part os 
divine service, except baptising of infants 
taking confessions, and giving absolution to 
dying penitents. 
IN 1 EREST, a sum of money, paid or 
alleged for the loan or use of some other 
sum, lent for a certain time, according to 
some lixed rate or proportion. 1 he sum 
lent, and on which the interest is reckoned, 
is called the principal; and in any case where 
there is hazard of the loss or diminution ol 
the principal, a proportionately greater in- 
terest is usually paid. The current rate oi 
interest is generally considered as the baro- 
meter of public credit ; and its lowness is a 
sign almost infallible of the nourishing condi- 
tion of a state; it proves the increase of in- 
dustry, and the free circulation of wealth, 
little inferior to a demonstration.. In order 
to prevent individuals. from taking unjust ad- 
vantages of the necessities of others, it has 
been found necessary in most countries to 
establish by law a fixed rate of interest for 
the use of money : this however must, in a 
great measure, depend on the current rate of 
interest in the country ; for if it is attempted 
to reduce by law the common rate of in- 
terest below the lowest ordinary market rate, 
the restriction will be sure to be evaded. 
This was the case in France in 1766, when, 
although the legal rate of interest was re- 
duced from five to four per cent., money 
continued to be lent at five per cent. 
The first act of parliament for regulating 
the interest for money lent in England was 
37 lien. VIII. c. 9, by which interest was 
fixed at 10 per cent. ; before that time in- 
terest had usually been taken at higher rates. 
In 1552 an act was passed against usury, or 
taking any interest whatever for money lent: 
the impolicy and oppression of tills measure 
soon became evident; and in 1571 the sta- 
tute ol Henry VIII. which fixed interest at 
10 per cent., was revived. As the increase 
of commerce brought wealth into the coun- 
try, the rate of interest lowered ; and in 
1625 it w;as, by 21 James T. c. 17, reduced to 
eight per cent. The first positive law made 
in Scotland for fixing the rate of interest was 
in 1587, when an act was passed, by which 
the rate of interest was not for the future to 
exceed 10 per cent. In France, in 1601, 
Henry IV. issued an edict for reducing the 
public or national interest of money in that 
.kingdom to six and a quarter per cent. In 
1651 the interest of money in several parts 
beyond sea being lower than the legal interest 
in England, the Rump-parliament reduced the 
legal rate from eight to six per cent. ; and 
upon the Restoration it was confirmed by 12 
Cha. II. c. 13. The last act of parliament 
for regulating the interest of money was 12 
Ann. st. 2. c. 16, by which it was fixed at five 
per cent, per annum, the present legal rate. 
But although this is the utmost interest which 
can be taken for money lent in Great Britain, 
yet if a contract which carries interest was 
made in a foreign country, our courts will 
direct the payment of interest according to 
the laws of the country in which the contract 
was made : thus American, Turkish, and In- 
dian interest have been allowed, to the amount 
of even 12 per cent. 
The various rates which have been paid in 
Great Britain at different periods, as the current 
interest for money, are as follows : 
P. r cent, per ann. 
In 1255 - - - /J.50 0 
1263, 2 d. a-week for 11. or 45 G 
1270 to 1507 - - 45 0 
1422 to 1470 - - 15 0 
1545 restricted to - 10 O 
1555 to 1558 - 12 0 
1571 restricted to - 10 0 
1524 to 1604, about - 9 1G 
1625 reduced to - 8 0 
1645 to 1660 - 60 
1660 reduced to - 6 0 
1660 to 1690 - 76 
1690 to 1697 - 7 10 
1697 to 1706 - - 60 
1714 reduced to - 50 
0 
8 
0 
0 
0 
0 
0 
0 
0 
0 
0 
6 
0 
0 
0 
term than a year, to receive more than he oughf 
if he were to make only 5 per cent, per annum 
of his money ; for, if he lends 100/. for six 
months, he receives 102/. lOr., and this being 
lent again for the remaining six months, amounts 
to 105/. It. 3d ; if the time is less than six 
months the difference must be still greater. The 
letter of the law is however the rule in prac- 
tice, and therefore the 565th part of the yearly 
interest is always considered as the proper in- 
terest for a day, and its multiples as the interest 
for any number of days. 
The Interest of One Pound for One Day 
£■ £■ 
At 
3 per cent, is 
,00008219 
,00009589 
,00010959 
,00012329 
,00013699 
,00015068 
,00016438 
In the United States of America, the lawful 
interest of money is 6 per cent, in most of the 
States ; in a few it is 7 per cent. ; in one it is 5 
per cent. In Greece, the mean rate of interest 
is 20 per cent., and in the other parts of Tur- 
key nearly the same ; in Persia 25 per cent. ; 
and in the Mogul Empire 30 per cent. In the.^e 
countries there is no fixed rate of interest, and 
the usual high rate arises chiefly from the inse- 
curity of lending. In Sydney and the other 
English settlements in New South Wales, the 
rate of interest is fixed by an ordinance, dated 
14th June, 1804, at 8 per cent, per annum. 
Interest is distinguished into Simple Interest and 
Compound Interest, 
Interest, Simple, is that which is reckoned 
on the principal only, at a certain rate for a 
year, and at a proportionately greater or less sum 
for a greater or less time ; thus, if 51. is the rate 
of interest of 100/. for a year, 10/. is the interest 
for two years, 15/. for three years, &c. In most 
computations of interest the work is much 
shortened if the interest of 11. for a given term 
is known, as the interest of any other sum for 
the same term will then be found by only mul- 
tiplying by the given sum. The interest of 11. 
for a year must be in the same proportion as the 
interest of 100/. to its principal ; therefore, at 
5 per cent., as 100 \ 5 1 * _L_ — ,05 ; and 
thus : — 
The interest of One Pound for One Year, 
£• 
£■ 
at 3 per cent, is 
,03 
H - - - 
- 
,035 
4 
- 
,04 
4i 
^ l 
- 
,045 
5 
- 
,05 
- 
,055 
6 
The interest of One Pound for 
any 
number 
years. 
Years. 
3 per 
Cent. 
34 per 
Cent. 
4 per 
Cent. 
44 per 
Cent. 
5 per 
Cent. 
10 
,3 
,35 
,4 
,45 
,5 
20 
>6 
,7 
,8 
,9 
1,0 
30 
,9 
1,05 
1,2 
1,35 
1,5 
40 
1,2 
1,4 
1,4 
1,8 
2,0 
50 
1,5 
1,75 
2,0 
2,25 
2,5 
60 
1,8 
2,1 
2,4 
2,7 
3,0 
70 
2,1 
2,45 
2,8 
3,15 
3,5 
80 
2,4 
2.8 
3,2 
3,6 
4,0 
90 
2,7 
3,1 5 
3,6 
4,05 
4,5 
100 
3,0 
3,5 
4,0 
4,5 
5,0 
Although the law forbids any person lending 
money to take more than 51. for the interest of 
100/. for a year ; yet by allowing the propor- 
tionate part of 51. to be taken for part of a year, 
it permits any one who lends money for a less 
As tables of Simple Interest are chiefly re- 
ferred to, in order to find the interest or dis- 
count on bills of exchange, and as by far the 
greater number of bills which are discounted 
have less than 100 days to run, the following 
table will answer most useful purposes; but 
those who have constant occasion to make such 
computations, will derive much assistance from 
the extensive tables which have been computed 
by Smart, Thomson, King, Reid, and others. 
See also Discount. 
TABLE 
Shewing the Simple Interest of One Pound, for 
any number of days, not exceeding 100, at 
5 per Cent. 
days 
Amount. 
days 
Amount. 
days 
Amount. 
1 
,0001369 
35 
,0047945 
69 
,0094520 
2 
,0002739 
36 
,0049315 
70 
,0095890 
3 
,0004109 
S7 
,0050684 
71 
,0097260 
4 
,0005479 
38 
,0052054 
72 
,0098630 
5 
,0006849 
39 
,0053424 
73 
,0100000 
6 
,0008219 
40 
,0054794 
74 
,0101369 
7 
,0009589 
41 
,0056164 
75 
,0102739 
8 
,0010958 
42 
,0057534 
76 
,0104109- 
9 
,0012328 
43 
,0058904 
77 
,0105479 
10 
,0013698 
44 
,0060274 
78 
,0106849 
11 
,0015068 
45 
,0061643 
79 
,0108219 
12 
,0016438 
46 
,0063013 
80 
,0109589 
13 
,0017808 
47 
,0064383 
81 
,0110958 
14 
,0019178 
48 
,0065753 
82 
,0112328 
15 
,0020547 
49 
,0067123 
83 
,01 13698 
16 
,0021917 
50 
,0068493 
84 
,0115068 
17 
,0023287 
, 51 
,0069863 
85 
,0116438 
18 
,0024657. 
52 
,0071232 
86 
,01 1780& 
19 
,0026027 
53 
,0072602 
87 
,0119178. 
20 
,0027397 
54 
,0073972 
88 
,0120547 
21 
,0028767 
55 
,0075342 
89 
,0121917 
22 
,0030137 
56 
,0076712 
90 
,0123287 
23 
,0031506 
57 
,0078082 
91 
,0124657 
24 
,0032876 
58 
,0079452 
92 
,0126027 
25 
,0034246 
59 
,0080821 
93 
,0127397 
26 
,0035616 
60 
,0082191 
94 
,0128767 
27 
,0036986 
61 
,0083561 
95 
,0130137 
28 
,0038356 
62 . 
,0084931 
96 
,0131506 
29 
,0039726 
63 
,0086301 
97 
,0132876 
30 
,0041095 
64 
,0087671 
98 
,0134246 
31 
,0042465 
65 
,0089041 
99 
,0135616 
32 
,0043835 
66 
,009041 1 
100 
,0136986 
33 
,0045205 
67 
,0091780 
34 
,0046575 
68 
,0093150 
The interest of any sum for any number of 
days contained in the table, is found by only- 
multiplying the figures corresponding with the 
number of days by the sum : thus, if the interest 
of 150/. for 61 days is required, the interest of 
one pound for 61 days is, by the table, ,0083561, 
which multiplied by 150, gives 1/. 3s. OjA If 
the given sum contains shillings and pence, they 
must be reduced to the decimal of a pound. 
