Napoleon's Sanhedrin and the Halakhah 45

MONEY LENDING AND USURY

Three statements in the Torah prohibit interest(Ex 22:24; Lev 25:35-37; Deut 23:20,21); each of these verses encourages lending to the Israelite poor. The third made a clear distinction between Israelites and others. You shall not deduct interest from loans to your countrymen, whether in money or food or anything else that can be deducted as interest; but you may deduct interest in loans to foreigners. Do not deduct interest from loans to your countrymen, so that the Lord your God may bless you in all your undertakings in the land that you are about to enter and possess.” This was interpreted as a distinction between Israelites and the idolatrous peoples. Loans without interest were not mentioned in other ancient legal codes. The taking of interest from the poor seems to have been general and so was denounced( 2 K. 4:1: Ezek. 18:8 ff; Psalm 15:5; Prov. 28:8; Neh. 5:1-5), but then likened to a grave crime, especially in Ezekiel and Proverbs .

The early rabbinic tradition took two different roads which clashed in the later halakhah. The Mekhilta (Ex. 22:24) emphasized that no interest should be taken from Jews and non-Jews and called those who did so robber or murderers. On the other hand the Sifrei (Lev 25:35-37) stated that interest could be charged to non-Jews . The discussion in the Mishnah(B.M. 5:6) clearly stated that interest from Gentiles was permissible while prohibited with Jews ; R. Hunah later limited it to economic necessity(B. B. M. 71a). We should contrast this statement with the concluding section of Makkot which proscribed charging interest to Jews and Gentiles alike. The mishnaic discussion also dealt with various subterfuges as cloaking it in a sale or the reduction of rent(B.M. 5:1; 5:7; 75a); however profit sharing partnerships were permitted(B.M. 65a) and led to their general use in the form of heter iskah. Arrangements with non-Jews were also permitted(B.M. 61b) though sometimes frowned upon(Yad, Hil. Malveh 5:15)