[Title Page and Publication Information]: Title page and introductory information for the 2020 edition of Martín de Azpilcueta's work, published by New Direction and Fundación Civismo. [Table of Contents]: A detailed table of contents listing the introductory essays and the fourteen chapters of the critical text. [About the Collection: The School of Salamanca]: This section introduces the book series, highlighting the School of Salamanca as the origin of modern economic science and international law. It emphasizes the school's role in bridging theology, law, and economics to address the challenges of the early modern era. [Biography of Martín de Azpilcueta]: A biographical sketch of Martín de Azpilcueta (1491–1586), detailing his academic career in canon law and his influence as a papal advisor. It highlights his pioneering contributions to the quantity theory of money and his revolutionary defense of charging interest on loans based on the law of supply and demand. [Prologue by Juan Ángel Soto]: Juan Ángel Soto provides a critical introduction, positioning Azpilcueta's work as a precursor to Jean Bodin and David Hume. He explains how the influx of American metals led to inflation and the development of the value-scarcity theory, and discusses Azpilcueta's distinction between money as a measure of value versus money as a commodity. [Critical Text Introduction and Chapter I: Interpretation of the Text]: Azpilcueta begins his commentary by analyzing a decree by Pope Gregory IX regarding loans to merchants traveling by sea. He critiques the 'ancient' interpretation and argues that the text establishes a legal presumption of usury to prevent hidden interest, rather than a categorical condemnation of maritime insurance, which he considers licit. [Chapter I (Continued): Legal Distinctions and Usury in Loans]: The author distinguishes between the external forum (legal presumption) and the internal forum (conscience). He argues that while the Church may presume usury in certain combined loan-insurance contracts to prevent fraud, the act may not be sinful if the insurance fee is just. He also critiques Charles Dumoulin (Molineus) regarding loans to wealthy merchants. [Chapter II: Concept and Classes of Currency Exchange]: Azpilcueta defines 'cambio' (exchange) as a permutation or innominate contract. He critiques existing classifications by St. Antoninus and Cajetan, proposing instead a seven-fold division based on the nature of the transaction: by office, by small change, by letters, by transfer, by interest, by custody, and by purchase/barter. [Chapter III: Origin and Functions of Money]: This section explores the historical transition from barter to money. Azpilcueta identifies eight distinct uses for money, arguing that while its primary function is a measure of value, its secondary function as a tradable commodity is natural and licit. He justifies charging for the use of money in specific contexts like leasing for display or medicine. [Chapter IV: Just and Licit Exchange]: Azpilcueta applies the principle of equality to currency exchange, stating that a just exchange requires equal value between what is given and received. He condemns charging extra for the 'time' or delay in payment, identifying this as a form of hidden usury, while allowing for the exchange of future goods if the contract is structured correctly. [Chapter V: Exchange by Office (Professional Lending)]: The author debates whether professional lenders can charge a fee for their labor and risk. He reconciles conflicting theological opinions by suggesting that while private usury is forbidden, the state can authorize a 'salary' for those who maintain the public service of providing liquidity, similar to the 'Montes de Piedad'. [Chapter VI: Exchange by Small Change (Menudo)]: Azpilcueta discusses the legality of charging for the service of exchanging large denominations for small change. He cites Spanish royal decrees (pragmáticas) and argues that individuals may charge a small fee for the labor and inconvenience of counting and storing various coins, provided they do not deceive the customer regarding the legal value. [Chapter VII: Exchange by Letters (Bills of Exchange)]: This chapter analyzes the 'cambio por letras' (bills of exchange). Azpilcueta defines it as a virtual transfer of money across distances. He distinguishes between licit transfers based on labor/credit and 'fictitious' or 'dry' exchanges used to mask usury. He also comments on contemporary royal attempts to regulate exchange rates between Spain, Rome, and Flanders. [Chapter VIII: Exchange by Transfer (Traspaso)]: Azpilcueta justifies the practice of buying currency where it is undervalued and selling it where it is overvalued (arbitrage). He argues against Soto, asserting that money can be treated as a commodity for purchase and sale when its value fluctuates due to location, metal purity, or legal status. [Chapter IX: Exchange by Interest (Opportunity Cost)]: The author discusses 'lucrum cessans' (lost profit) as a justification for charging interest. He argues that a merchant who stops trading to lend money may charge for the profit they would have otherwise earned. He warns against 'fictitious' interest where no real trade was intended, which requires restitution. [Chapter X: Exchange by Custody (Banking Services)]: Azpilcueta examines the role of bankers as custodians of money. He argues they are entitled to a just salary for their labor in accounting and security but condemns the practice of charging fees to those receiving payments (extortion). He critiques the 'five per thousand' fee and other common banking abuses of the era. [Chapter XI: Exchange by Purchase, Barter, or Innominate Contract]: This section explores how money's value changes based on eight factors, including metal quality, weight, location, and scarcity. Azpilcueta argues that money is a commodity whose price fluctuates, and therefore, exchanging it at different values is licit if the 'just price' (determined by these factors) is respected. [Chapter XII: The Value of Money (Quantity Theory)]: Azpilcueta famously articulates the quantity theory of money: money is worth more where it is scarce and less where it is abundant. He observes that the influx of gold from the Indies has raised prices in Spain. He defends the idea that money's value as a commodity can exceed its legal face value due to market demand. [Chapter XIII: Present Money and Absent Money]: The author argues that 'absent' money (money located elsewhere) is worth less than 'present' money due to the costs, risks, and labor required to retrieve it. This spatial difference in value justifies exchange rates where a merchant receives more in a distant city than they gave in their home city. [Chapter XIV: International Credits and Exchanges]: In the final chapter, Azpilcueta applies his theories to international trade between Medina, Lisbon, and Flanders. He defends the legitimacy of these complex financial transactions against accusations of usury, provided they are based on real spatial and scarcity-based value differences. He concludes with a moral warning to confessors and merchants about the dangers of greed.
Title page and introductory information for the 2020 edition of Martín de Azpilcueta's work, published by New Direction and Fundación Civismo.
Read full textA detailed table of contents listing the introductory essays and the fourteen chapters of the critical text.
Read full textThis section introduces the book series, highlighting the School of Salamanca as the origin of modern economic science and international law. It emphasizes the school's role in bridging theology, law, and economics to address the challenges of the early modern era.
Read full textA biographical sketch of Martín de Azpilcueta (1491–1586), detailing his academic career in canon law and his influence as a papal advisor. It highlights his pioneering contributions to the quantity theory of money and his revolutionary defense of charging interest on loans based on the law of supply and demand.
Read full textJuan Ángel Soto provides a critical introduction, positioning Azpilcueta's work as a precursor to Jean Bodin and David Hume. He explains how the influx of American metals led to inflation and the development of the value-scarcity theory, and discusses Azpilcueta's distinction between money as a measure of value versus money as a commodity.
Read full textAzpilcueta begins his commentary by analyzing a decree by Pope Gregory IX regarding loans to merchants traveling by sea. He critiques the 'ancient' interpretation and argues that the text establishes a legal presumption of usury to prevent hidden interest, rather than a categorical condemnation of maritime insurance, which he considers licit.
Read full textThe author distinguishes between the external forum (legal presumption) and the internal forum (conscience). He argues that while the Church may presume usury in certain combined loan-insurance contracts to prevent fraud, the act may not be sinful if the insurance fee is just. He also critiques Charles Dumoulin (Molineus) regarding loans to wealthy merchants.
Read full textAzpilcueta defines 'cambio' (exchange) as a permutation or innominate contract. He critiques existing classifications by St. Antoninus and Cajetan, proposing instead a seven-fold division based on the nature of the transaction: by office, by small change, by letters, by transfer, by interest, by custody, and by purchase/barter.
Read full textThis section explores the historical transition from barter to money. Azpilcueta identifies eight distinct uses for money, arguing that while its primary function is a measure of value, its secondary function as a tradable commodity is natural and licit. He justifies charging for the use of money in specific contexts like leasing for display or medicine.
Read full textAzpilcueta applies the principle of equality to currency exchange, stating that a just exchange requires equal value between what is given and received. He condemns charging extra for the 'time' or delay in payment, identifying this as a form of hidden usury, while allowing for the exchange of future goods if the contract is structured correctly.
Read full textThe author debates whether professional lenders can charge a fee for their labor and risk. He reconciles conflicting theological opinions by suggesting that while private usury is forbidden, the state can authorize a 'salary' for those who maintain the public service of providing liquidity, similar to the 'Montes de Piedad'.
Read full textAzpilcueta discusses the legality of charging for the service of exchanging large denominations for small change. He cites Spanish royal decrees (pragmáticas) and argues that individuals may charge a small fee for the labor and inconvenience of counting and storing various coins, provided they do not deceive the customer regarding the legal value.
Read full textThis chapter analyzes the 'cambio por letras' (bills of exchange). Azpilcueta defines it as a virtual transfer of money across distances. He distinguishes between licit transfers based on labor/credit and 'fictitious' or 'dry' exchanges used to mask usury. He also comments on contemporary royal attempts to regulate exchange rates between Spain, Rome, and Flanders.
Read full textAzpilcueta justifies the practice of buying currency where it is undervalued and selling it where it is overvalued (arbitrage). He argues against Soto, asserting that money can be treated as a commodity for purchase and sale when its value fluctuates due to location, metal purity, or legal status.
Read full textThe author discusses 'lucrum cessans' (lost profit) as a justification for charging interest. He argues that a merchant who stops trading to lend money may charge for the profit they would have otherwise earned. He warns against 'fictitious' interest where no real trade was intended, which requires restitution.
Read full textAzpilcueta examines the role of bankers as custodians of money. He argues they are entitled to a just salary for their labor in accounting and security but condemns the practice of charging fees to those receiving payments (extortion). He critiques the 'five per thousand' fee and other common banking abuses of the era.
Read full textThis section explores how money's value changes based on eight factors, including metal quality, weight, location, and scarcity. Azpilcueta argues that money is a commodity whose price fluctuates, and therefore, exchanging it at different values is licit if the 'just price' (determined by these factors) is respected.
Read full textAzpilcueta famously articulates the quantity theory of money: money is worth more where it is scarce and less where it is abundant. He observes that the influx of gold from the Indies has raised prices in Spain. He defends the idea that money's value as a commodity can exceed its legal face value due to market demand.
Read full textThe author argues that 'absent' money (money located elsewhere) is worth less than 'present' money due to the costs, risks, and labor required to retrieve it. This spatial difference in value justifies exchange rates where a merchant receives more in a distant city than they gave in their home city.
Read full textIn the final chapter, Azpilcueta applies his theories to international trade between Medina, Lisbon, and Flanders. He defends the legitimacy of these complex financial transactions against accusations of usury, provided they are based on real spatial and scarcity-based value differences. He concludes with a moral warning to confessors and merchants about the dangers of greed.
Read full text