The Historic View of Money Lending

By Phin Upham

Trying to wrap one’s mind around the financial crisis that has occurred most recently is not an easy task. We are told frequently that the lenders were the source of the problem. Words like “predatory lending” tell a story that shows lenders as evil people full of greed. Nowhere in this narrative do we see any element of responsibility fall upon the shoulders of the borrower.

The concept of lending and borrowing money is complex. The public easily casts money lenders into the role of villain, and frequently calls for ever harsher actions taken against them while demanding looser regulations for those at the bottom.

Here, we attempt to explore the duality of “usury,” a primarily negative term with a history as rich as the world itself.

Money Lenders Throughout History

Perhaps one of the grittiest and most honest examples of history’s view of the money lender is encapsulated in the show Game of Thrones, where the minister of coin takes a role not unlike that of a spy. In the Bible, money lenders are frequently demonized. At one point, Jesus casts money changers from the temple, “driving out all who were buying and selling there.”

Major political thinkers like Marx considered money lending something akin to vice, a practice that should be avoided wherever possible to stave off corruption. Money lending is a unique endeavor that requires a keen sense of management and discipline. It’s not a practice with a long history of adoration, and it’s far from what most people consider philanthropic. Still, money lending has been the deciding factor behind many historical human achievements.

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About the Author: Phin Upham is an investor at a family office/ hedgefund, where he focuses on special situation illiquid investing. Before this position, Phin Upham was working at Morgan Stanley in the Media and Telecom group. You may contact Phin on his Phin Upham website or Facebook page.