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Usury in a Nutshell
"Traditionally, the Catholic Church forbade Christians to lend money to other Christians at interest, basing its prohibition on the Vulgate’s translation of Luke 6:35... The Third Lateran Council of 1179 enacted a proposal of Pope Alexander III to make all those who violated this prohibition subject to excommunication. This situation made it difficult for people to raise capital, and since the need for capital was persistent, many Christians were open to finding ways to work around the prohibition. One solution was to allow non-Catholics to practice moneylending. This seemed viable, because canon law did not ostensibly apply to non-Catholics, and non-Catholics were in any case not subject to ecclesiastical punishments. Along these lines, many princes throughout Europe adopted the habit of playing host to Jewish communities so that the local Jews could practice moneylending to the benefit of local trade, industry and war-making without the threat of papal excommunication hanging over the Jews or, more importantly, over the prince who made use of them. The fact that Jews were severely restricted from entering most trades in most cities helped to establish this compromise as a trend."
The Consilia of Alessandro Nievo: On Jews and Usury in 15th Century Italy
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