Defence of Usury Showing the Impolicy of the Present Legal Restraints on the Term of Pecuniary Bargains

This 18th-century work by British philosopher and founder of utilitarianism Jeremy Bentham began as a series of 13 "letters" addressed to Scottish economist Adam Smith. Usury—the practice of charging interest on loans—was outlawed in Britain based on certain passages in the Christian Old Testament. Bentham argued that interest could, in fact, generate positive social benefits. His arguments were very influential and led to the gradual abolishment of restrictions on usury. G.K. Chesterton identified Bentham's essay on usury as the very beginning of the "modern world." There is little evidence as to Smith's reaction.