INTEREST
77
INTERIMS
sided interest or culture, however rich and varied, con-
stitutes morality or supplies for religion, still it may
be readily acknowledged that a judicious equipment
of worthy interests, intellectual, a>sthetic, and social,
is a powerful ally in the battle with evil passions, and
also one of the most precious elements of human well-
being with which a wisely planned scheme of educa-
tion can equip the human soul.
See article on Herbart and Hehbartianism, also Herbart, Science of Education, tr. Felkin (New York and London, 1897); Stout. Analytic Psychology (London, 1896-97); De Garmo, Interest and Education (New York and London. 1902); Adams, Herbartian Psyhology (New Y'ork and London), x; Sidgwick, Stimulus (Cambridge. 1883); James, Talks to Teachers (New Y'ork and London, 1901), xi.
Michael Maher.
Interest. — The subject will be divided as follows: (1) notion of interest; (2) legitimacy of lending at in- terest; (3) just rate of interest. — (1) Interest is a value exacted or promised over and above the restitution of a borrowed capital. Moratory interest, that is in- terest due as an indemnity or a penalty for delay in payment, is distinguished from compensatory interest, which indemnifies the lender for the danger he really runs of losing his capital, the loss that he suffers or the gain of which he deprives himself in disembarrass- ing himself of his capital during the period of the loan, and from lucrative interest, which is an emolument that the lender would not gain without lending. In- terest originates in the loan of goods of consumption, which permits the borrower to expend or to destroy the things lent, on condition of giving back an equal number of the same kind or quality. The sum to be paid for the usage of an article, which must itself be given back, is called hire. Everything which is con- sumed by usage: corn, wine, oil, fruit, etc., can be the matter of a loan (former sense), but ordinarily it is a sum of money which is lent.
(2) Is it permitted to lend at interest? Formerly (see Usury) the Church rigorously condemned the ex- acting of anything over and above capital, except when, by reason of some special circumstance, the lender was in danger of losing his capital or could not advance his loan of money without exposing himself to a loss or to deprivation of a gain. These special rea- sons, which authorize the charging of interest, are called extrinsic titles.
Besides these compensatory interests, the Church has likewise admitted morator\' interest. In our day, she permits the general practice of lending at interest, that is to say, she authorizes the impost, without one's having to inquire if, on lending his money, he has suf- fered a loss or deprived himself of a gain, provided he demand a moderate interest for the money he lends. This demand is never unjust. Charity alone, not jus- tice, can oblige anyone to make a gratuitous loan (see the replies of the Penitentiary and of the Holy Office since 1830). What is the reason for this change in the attitude of the Church towards the exaction of in- terest? As may be more fully seen in the article Usury, this difference is due to economical circum- stances. The price of goods is regulated by common valuation, and the latter by the utility that their pos- session ordinarily brings in a given centre. Now, to- day, otherwise than formerly, one can commonly em- ploy one's money fruitfully, at least by putting it into a syndicate. Hence, to-day, the mere possession of money means a certain value. Whoever hands over this possession can claim in return this value. Thus it is that one acts in demanding an interest.
(3) Even to-day one can still sin against justice by demanding too high an interest, or nsiiry, as it is called. What interest then is just and moderate? Theoretically, and in an abstract way, the fair rate of interest nearly corresponds to the average gain that those engaged in business may generally expect in a determined centre. It nearly corresponds, for the in- terest being guaranteed, whilst the profit is uncertain.
wo must discount the \alue of an assurance premium
from the average profit. Accordingly, in a deter-
mined centre, if those who sink their money in build-
ings, land, or industrial undertakings generally look
for a profit of 6 per cent, the just rate of interest will
be about 4 or 5 per cent. This rate covers the risks
and ordinary inconveniences of lending. But if one
had to run special risks or had to give up an extraor-
dinary premium, one might in all justice exact a higher
rate of interest. Such, therefore, is the theoretical
rule. In practice, however, as even the answer of the
Sacred Penitentiarj' shows (18 April, 1889), the best
course is to conform to the usages established amongst
honest men, precisely as one does with regard to other
prices, and, as happens in the case of such prices, par-
ticular circumstances influence the rate of interest,
either by increasing or lowering it. In this way, the
security offered by advances to the governments of
wealthy countries and those that cover mortgages
diminish the rate for public loans and loans on mort-
gage. On the contrary, the interest on shipping and
mercantile business is higher than that in civil busi-
ness, on account of the greater uncertainty in sea voy-
ages and iu commercial enterprises.
Dev.is, PoUlical Economy (I>.)naon, 1892); H. Pesch, Zins- ffrund und Zinsgrenze in Kathnlisrhe ZeUschrift (Innsbruck, 18.S8); .\ntoine, Coitrs d'Erfn,}nne Sociale (Paris. 1907). xvii; \'as Roet, De j'usto a lu-lorm rl ronlrnctu crediti (Louvain, 1903) ; Vermeersch, Quastioncs de Juslitia (Bruges, 2nd ed., 1904). See also, in the works of writers on moral theolog>-, the treatise De contractibus.
A. Vermeersch.
Interims (Lat. interim, meanwhile), temporary settlements in matters of religion, entered into by Emperor Charles V (1519-56) with the Protestants.
I. The Interim of Rati.sbon, published at the conclusion of the imperial diet, 29 July, 1.541. It was based on the result of the previous conference between Catholics and Protestants, in which an agreement had been reached on the idea of justifi- cation and other points of doctrine. Consequently the imperial "recess" enacted that the adjustment of the religious question should be postponed until the next general council or imperial diet; that mean- while the Protestants should not go beyond or against the articles agreed upon; that an ecclesiastical reform be inaugurated by the prelates; that the Peace of Nuremberg (1532) should be maintained; that monasteries and chapter-houses should remain intact; that the ecclesiastics should retain their possessions; that the Protestants should not draw anyone to their side; that all judicial proceedings in matters of religion should be suspended; that the imperial court of justice (Reicliskammergericht) should remain as before; and that the recess of Augs- burg (1530) should remain in force. Owing to the opposition of the Protestants, Charles V in a secret declaration made concessions to them, which prac- tically nullified the recess. The articles agreed upon were to be accepted in the sense of their theologians; the monasteries and chapter-houses might be called on to inaugurate a reform; the ecclesiastics, monas- teries, and chapter-houses, that had embraced the Confession of Augsburg, were to remain in the full possession of their property; the Protestants were not to compel the subjects of Catholic princes to embrace their Faith, but if anyone came to them spontaneously, he was not to be hindered; the mem- bers of the imperial court of justice were not to be molested, if they turned Protestants; and the recess of Augsburg was to have force only in matters not appertaining to religion.
II. The Interim of .\ugsburg, published at the conclusion of the imperial diet, 30 June, 154S. In twenty-six chapters, it comprised statements on matters of doctrine and ecclesiastical disciiiline. The points of doctrine were all explained in the .sense of Catholic dogma, but couched in the mildest and
