In the first epoch there are many examples of loans. The characteristic word ŠU-BA-TI, or ŠU-BA-AN-TI, which means “he has borrowed,” has been used as a title and they are often called ŠUBATI tablets. They are the receipts given for the loans by the borrowers. Here is an example:
In place of corn we may have money, dates, wool, or almost anything. Sometimes a date for repayment is given. In the examples there are usually no references to the interest to be paid for the loan. They may be regarded as advances made to temple tenants, or serfs, to be repaid at harvest from crops.
The greatest value of these tablets lies in their dates. The dates are usually events. Many of these have already been collected and registered, especially by Dr. H. Radau.646 But there is even more to be done, when further examples are published. Many tablets contain two dates referring to loans contracted at different times. By this means the sequence can gradually be determined. The seals are also of great interest and often of value, as may be seen from Dr. Radau's work.
Advances of all sorts were freely made both with and [pg 251] without interest. For convenience we may separate money from corn loans and advances of all kinds of commodities; but we must not forget that corn, at any rate, was legal tender; and silver loans might be repaid in corn. This, however, was early recognized as an inconvenience and it is quite common to find a direct stipulation that what was lent shall be repaid in kind. It soon became usual to state that if the loan was repaid otherwise, it must be according to a fixed ratio between silver and corn.
A very large number of loans take the form of Abstract schuldscheine, loans without statement of any cause for the debt. They are merely promises to pay, that is, acknowledgments of indebtedness. Thus we read: “Five shekels of silver which A has given to B. On such a date B shall pay five shekels of silver to A.” A penalty may be added for not paying on the fixed date. Usually this takes the form of interest. The rate is one shekel per mina each month, or twelve shekels per mina yearly, that is, twenty per cent. There is no clear case of money lent as an investment to bear interest. That was done in quite another way. The lender entered into relationship with an agent, to whom he furnished capital and who traded with the money and repaid it with interest.
Most of the loans were evidently contracted to meet temporary embarrassment. Usually it was in connection with the need of cash to pay the expenses at harvest-time. The loan was then repaid at harvest. It might be repaid in corn.647 The time was usually short—fifteen days is named.648 The lender had his reward in obtaining his money's worth in corn, when its price was cheapest. But he was evidently not expected to charge interest. A similar kind of loan is half a mina of silver to pay the price of a piece of land. Here the money was lent until the land was bought, [pg 252] and was to be repaid with interest of three GUR of corn.649 So half a mina for certain land to be paid, when the land was cultivated.650
Another reason for borrowing was the need of money to pay taxes, ana ilkim suddanim.651 In one of these cases the stipulation is added that the borrower shall bring the receipt of the tax-collector and then may take back his bonds.652 Here the “sealed tablet” is in one case the receipt for the tax, in the other the receipt which the borrower gave for his loan. But there is no mention of his repayment. Perhaps the lender owed the tax, half a mina, and as it was a considerable sum, sent it by a third party, but made him give a receipt for it. But such a receipt would differ in no respect from the sort of bond mentioned above, and would render the messenger liable to repay the money; so he was to have his receipt back, on handing over the tax-collector's receipt showing that he had paid the tax.
In several cases the god is represented as lending the money. It is obvious that such advances were made from the temple treasury.653 It is usual from such instances to expatiate on the temple, or the priests, as the great moneylenders. This is a view easily misunderstood. It is quite true that the temples were great landowners, and had steady incomes, and possessed treasuries; but there is no evidence that they lent on usury. It seems rather that these loans without interest (except as a fine for undue retention of the loan) were a kindly accommodation. We know that under certain circumstances a man might appeal to the temple treasury to ransom him from the enemy. He might also borrow in case of necessity without interest. Moneylending proper existed, but was kept in narrow bounds by the temple itself.
[pg 253]
In view of the many questions that arise as to the nature of the money at this period, it should be noted that the silver is often said to be kanku; literally “sealed.” Whether this means that the silver bars, or ingots, were sealed while the metal was soft enough to receive a mark which would authenticate its weight and purity, or whether it means that the money was enclosed in sealed sacks, is hard to say. Against the latter may be urged that such a small sum as one and two-thirds shekels would not be sealed up.654 But it may be that kanku means “sealed for,” that is, acknowledged by the receipt.
Even more common than money loans are the corn loans. Here the loans were generally for a short time just before harvest, when the repayment was expected. The period is usually short, five days,655 or a month.656 Interest is sometimes demanded, at the rate of one hundred ḲA per GUR, or one-third, that is, thirty-three and a third per cent. This was probably the rate per mensem, four hundred per cent. per annum. But in one case the interest is one hundred ḲA per GUR per annum,657 once it is expressly said to be nothing,658 usually it is not referred to at all. Sometimes a loan was partly in money, partly in corn.659
Other things were lent, as sesame, skins, bricks, and the like, but these loans exhibit no peculiarity. They are merely letting the borrower have goods on credit, to be paid for, or returned, after a time.
We may take, as an example of this kind of transaction, a rather more complicated case:660
In the second case only one of the former debtors is left. The loan was partly repaid, a fresh loan contracted, and then partly repaid. It is not clear whether the arrears were remitted or extracted by distraint. Nor is it clear whether Ilukasha was debtor or creditor. As a rule such points are clear. It is only the conciseness of the formula which here causes the obscurity.
Another fairly common type of document contains a number of sections, each containing the record of one sum. But it is not clear that these were loans. They may be allowances for food or salary. Thus in B1 247 we have so much corn for the women weavers, so much more for the votaries, so much for other officials, from the first of one month to the thirtieth, so much for the Sutî who was watching the field, so much for a boatman, and so on. These are perhaps a temple steward's accounts. Their interest lies only in the incidental notices. We also note that here a month had thirty days. It is interesting to find that the celebrated Sutî nomads who later gave so much trouble, were already in the country and were employed to watch the fields. Was this watching done on the principle of “setting a thief to catch a thief”? Perhaps it was necessary to employ a Sutî as custodian, of course at a salary, if one was to preserve the crop from the depredations of his fellow-tribesmen.
Some of these tablets expressly state the amount of corn loaned, giving the date for repayment.661 Hence we see what a narrow margin divides the proper bond from the mere receipt, or even the memorandum of the loan.
[pg 255]
A number of tablets deal with advances of wool or woollen yarn made by temple officials to weavers and dyers to work up. As a rule they contain a number of words connected doubtless with the weaver's craft which are not yet made out. The following is a fairly simple example:662
Elsewhere the time of loan may be stated, two months for example.663 The price is always reckoned at six minas of wool for a shekel. It seems that the borrowers were not obliged to repay until a certain date, or until a demand was made for certain taxes. They then must pay in silver.
In the Assyrian examples of money-loans the same general features constantly recur. The most common are loans ana pûḫi, which may be taken to mean “for consideration,” as the word pûḫu means an “exchange.” But there is never any statement of what the consideration was. Some have thought, that as the bond was invariably given to the creditor to be broken up on the repayment of the loan, the exchange referred to was a restoration of the bond in return for the money. But the consideration, which is a legal presumption, may have lain in the fact that the borrowers were tenants on the metayer system and had a right to borrow of their landlord, free of interest, at seed-time and harvest. On such loans interest is only demanded when the debtor fails to repay at the fixed date.
The rate of interest charged as a penalty for non-payment or late payment was twenty-five per cent. per mensem, three hundred per cent. per annum. This interest was intended [pg 256] to secure prompt payment, but was not unfair in view of the increase of value obtained by investing it in corn and then sowing that. Other rates were one-third and one-eighth, but there is no fixed rate of interest for the loan of money, except when it was ana pûḫi.
The interest on corn was thirty ḲA per homer. Some think the homer had sixty ḲA, which would make the interest fifty per cent. But no case has yet been found which gives the number of ḲA in a homer.
The money lent is often said to belong to a god. Ashur, Ishtar of Arbela, or Ishtar of Nineveh, are the most common. Sometimes it is said to be in “Ishtar heads,” which has been taken to mean ingots stamped with a head of Ishtar. The frequent reference to the mina of Carchemish alongside the king's mina is eloquent as to the commercial eminence of the old Hittite capital.
An example is the following:664
Loans or advances were also made of various kinds of property. Thus we have an advance of ten minas of silver, Carchemish standard, seventy-five sheep, one cow, made by Ashurbânipal's chief steward to four men, ana pûḫi. The sheep and cow they are to return in Adar. If they do not return the sheep, they must breed them. The interest on the money is to be one-third. Dated the twenty-fifth of Tebet, b.c. 664. Thirteen witnesses. Such a loan seems to be on the metayer system.665
Here again we have an exceptional case:666
L lends two dromedaries, “which they called double-humped,” [pg 257] to three men, who shall return them on the first of the month, or pay six minas of silver. If they do not pay the money, interest shall accrue at the rate of five shekels per mina. Dated the fourteenth of Tishri, b.c. 674.
These animals were rare and evidently highly valued. What could the three borrowers want with a pair of such animals? Were they for exhibition in a menagerie? Perhaps they were for breeding. We may have here a case of goods taken on approval, for a fortnight or so, perhaps for sale to another party.
The same lender lent to the same three men, two hundred sheep, one hundred and fifty goats, two hundred and thirty yearling lambs, in all five hundred and eighty small cattle. They were to return the animals by a fixed date, or pay. Dated the seventh of Iyyar, b.c. 673. The same lender had lent seventy-two sheep to two other men, in Sivan, b.c. 680. They had to return the sheep in Ab, or pay for them at the market-rate in Nineveh. Bêl-êresh acted as agent for the borrowers.667
Other goods, such as wine, or oil, were advanced. Here we probably have to do with the transactions of the royal chief steward and the king's agents. For example:668
Again:669
We may deduce the interesting fact that Esarhaddon was at Carchemish in Ab, b.c. 681. The advance was made for the use of the royal household there.
Advances of corn were made exactly as in the earlier times. Thus:670
One peculiarity of the corn loans is that they are chiefly recorded upon what have been called heart-shaped tablets. These were lumps of clay through which a string passed and came out at the upper shoulders. The string was probably tied around the neck of a sack containing the corn. They thus served both as labels, seals, and as bonds. Many of them have Aramaic dockets, which have been collected and edited by Dr. J. H. Stevenson, in his Assyrian and Babylonian Contracts, with Aramaic reference-notes.
Thus the above example bears the words in Aramaic, “barley, assignment, which is from Nabû-dûri.” These Aramaic legends, in the case of such labels, may have served as addresses. But the general purpose is obscure. All the corn advances seem to have been made by officials of the royal household to inferior officers, in charge of farms or otherwise dependent for supplies.
They show by their dates that the corn was usually advanced just before harvest, when corn was dearest. Some of them name the reapers; others give the number of them. We conclude that these advances were made as food for the harvesters, or as wages for their labor. Occasionally, however, the loan was made at seed-time. Most of the loans are ana pûḫi,671 which supports the view that the meaning of this [pg 259] phrase is really “for management expenses” and presupposes the metayer system.
Closely connected with money or other loans are receipts for payment. These are somewhat rare. The more usual practice was to break the tablet, or promise to pay, which was returned to the debtor. But we have two good examples, thus:672
Here we are not aware of the circumstances which lead to the loan. But, in one case, we have records both of the loan and its repayment, thus:673
And we find also:674
Whether or not the defaulter paid later is not known; but we probably owe our knowledge of the repayment to the fact that all three did not pay together. We note that each paid exactly what he borrowed. No interest was charged.
In one case we have a receipt for a fine, or damages, imposed by a law-court. Thus:675
There is no statement who owed, or paid, the fine. But the lady governor who received the money gave this receipt for it.
[pg 260]
The Code makes very clear the legal aspect of this transaction. A minor or a slave could only deposit under power of attorney.676 A deposit was not recoverable unless made by a deed, or delivered in presence of witnesses and duly acknowledged by a receipt.677 The receiver was liable for all loss occurring to the goods in his possession on deposit, even when the loss was such as involved the loss of his own goods as well.678 For corn, the Code fixed a yearly fee for warehousing of one-sixtieth the amount deposited.679
As we learn from the few actual cases which occur, the receipt given for the goods was returned to the recipient on the return of the goods and the tablet broken as cancelling the responsibility. One form which it might take is illustrated by the following:680
Here apparently three brothers share, but one being absent the two hold their brother's share for him, giving a sealed receipt for it. This the judge delivered to him and he claimed and received his share.
Actual examples of deposit are rare; probably because our collections refer to temple transactions, rather than to private family deeds. We have a deposit of lead,681 from which we learn that silver was worth twice as much as lead. It was to be sent from Ashnunna, on demand. Here is another:682
Instead of a receipt by the recipient there is often found a list concluding with the word apkida, “I have intrusted.” Then comes the date and the names of witnesses. It is not clear, however, that these things were meant to be returned. They may only be memoranda of allowances given out. They chiefly occur in Scheil's Saison de fouilles à Sippar.683
In Assyrian documents no examples of this kind of transaction are found. Nor are any very clear examples producible from later Babylonian times. But it must not be overlooked that some cases, where a receipt is given for a sum or quantity of goods, without mention of interest to be paid, may very well be acknowledgments of a deposit; they have usually been taken to be loans.
Very little is known about pledges in early times, though Meissner had argued for their existence from certain passages of the series ana ittišu, such as “on account of the interest of his money he shall cause house, field, garden, man-servant, or maid-servant, to stand on deposit”; followed later by, “if he bring back the money he can re-enter his house; if he bring back the money, he can plant his garden again; if he bring back the money, he can stand in his field; if he bring back the money, he can take away his maid; if he bring back the money, one shall return his slave.”684 Consequently the creditor held the pledge in his possession until the loan was returned, when he had to give it back. The pledges here mentioned are antichretic, that is, such that they produce an income or return to the holder, which is a set-off against the interest of his money.
The Code recognizes the taking of property in satisfaction of a debt.685 But this is rather a process of distraint upon the goods of the debtor, in case of non-payment, than a case of pledge. Since it was usually expected that the property so taken would be returned on payment of the debt, we can hardly distinguish it from pledge. Indeed, where a debtor gave up his wife, child, or slave to work off a debt, we have a case of antichretic pledge for the debt and interest.
[pg 263]
In times subsequent to the First Babylonian Dynasty, the pledge is common. As a rule, it is antichretic, such that income or profit derived from the pledge is a fair equivalent for the interest of the loan. The lender acquires the right of enjoying the pledge. As a rule this is assigned him absolutely, so that no account is needed to be kept of interest on one side and profit on the other. If the profit exceeds the interest due, the excess may be returned, or it may be credited towards the discharge of the debt. If the interest exceeds the profit on the pledge, then the amount by which the loan exceeds the capitalized profit must pay interest.
In Assyrian times loans on security are fairly common. Here also we have antichretic loans, where the profit on the pledge was a set-off against the interest of the money. The pledge is expressly stated to be “in lieu of interest.” But it seems that the property was often expected also to extinguish the debt. Or it was merely pledged, as a security, which the creditor would keep in case he could not get his money back. We may illustrate these by examples:686
The point about the phrase, “exact sum,” seems to be that the advance was made without any rebate. Here the security is worth little more than the loan. Its profits would, however, be a good security for the interest of the loan. No time is given for repayment, but the creditor [pg 264] undertakes to accept repayment and release the pledge at any time.
Again:687
Or again:688
In the following case a maid is assigned outright for a loan. It is doubtful whether this is a sale, or a pledge:689
A very similar case occurs in the loan of corn and a cow by the bêl paḫâti of the Crown Prince, to a certain Nargî of the city of Bamatu. Nargî was to serve the lender for the corn and cow. When his service had become equivalent to the value of the advance, he could go free.690
Antichretic pledge was very common in later Babylonian times. The most typical examples are houses. The lender [pg 265]
has a house in pledge. To him it is rent-free until the loan is repaid. Hence the common phrase “rent is nought, interest is nought.” There was then no reckoning made one against the other.691 The creditor might not, however, care to take the pledge in perpetuity against interest of a loan, never repaid. Usually a date was fixed for repayment, at which time the debtor was bound to take back his pledge. Thus a house might be pledged definitely for three years.692
A reckoning might also be made, to check off profit against interest. Thus D pledges a field to L, but on condition that, if in any year the crop is less than will meet the interest due, he shall pay the difference; but if, on the other hand, it be worth more, he shall take the balance.693
The value of the pledge might, however, be such that it would outweigh both loan and interest. At any rate, it should be as valuable as the loan. Hence it could not be used as a further pledge to another. There is often a guarantee that the pledge given has not been already pledged, that no other creditor has a lien upon it.
In these cases the creditor enters into possession of the pledge and enjoyment of it. He has some responsibilities towards it. He cannot destroy it, or waste it. As a rule, he assumed full liability for all cases for wear and tear. He also fed and clothed a slave pledged to him. Now and then we find the debtor responsible for clothing the slave pledged by him.694 It is not essential, however, to the idea of pledge that it should come into the possession of the creditor, only it is hypothecated to him. This practice was very common in later Babylonian times.695
Such pledges give an eventual possession. Something like a reversion occurs in the pledge of a share not yet divided.696 [pg 266] Thus a sum was borrowed on the understanding that if not returned by the proper time, a slave shall be handed over as an antichretic pledge.697 The man who gives a pledge may not be in actual possession of it, but pledges it on the understanding that he will hand it over as soon as it becomes his. Thus B bought a slave and her two young children for sixty-five shekels, but before they were handed over, he pledged them for fifty-five shekels. Nine months later he sold them for sixty shekels.698
A common case is where the debtor pledges all he has to the creditor, a pledge usually greatly in excess of the value of the loan and its interest for a reasonable term, but remains in possession himself. Hence the creditor has only a right over the pledge, a lien upon it, but no usufruct. For this he had the bond. This also gives only an eventual possession.
We often meet with after-pledge. The creditor, being in possession of the pledge, might traffic in its profits. If he held a house as pledge, he was not bound to live in it, but could sublet it. Hence he might pledge the rent of it. Or he could repay himself his loan by repledging the house to another. He could also pledge the loan which was due to him. This makes a rather complicated case.
Thus L makes an advance a to D and receives a pledge p. He may then pledge both a and p. If these are given to two separate persons, a to A and p to P, then P has a cause for uneasiness. If D comes in and pays up a, he has a right to the pledge p which is in P's possession. But the money he advanced is not thereby paid to him. Further, A has a right to the money a just paid in by D, which is all that is in evidence. Hence L will have succeeded in getting two sums, and unless he can succeed in realizing his investments of them, is called on to pay both A and P with [pg 267] one amount. Either A or P may suffer. But if L pledges both a and p to one man C, then C is quite independent of the relations of L to D. Now D simply has to pay C and gets his pledge back. C is sure of his money.
Such a transfer of the responsibility of D from L to C was effected by handing over to C, with the pledge, also D's bond to L. C now holds this bond, which, with his pledge, D wishes to get back. The following is a complicated case illustrating these points:699 D had a house and pledged it to L, who lived in it. Two others were guarantees that D would repay the loan. The pledge was antichretic, “rent nothing, interest nothing.” Now L wanted money; so he pledged the house to C. But he did not wish to vacate. So he hired it of C, at such a rate that he would repay C's loan in about five years. It is clear that this house was not good security for C, since D might turn out L at any time by repaying him. L would then owe money to C for which C had no security at all. But L in addition pledged all his own property, his slave, and all his goods in town and country. Further, he not only pledged the house, but handed over D's bond to him. C thus held the house in after-pledge, and the advance with its security in pledge. He was therefore amply secured, since D must pay him.
Now L died and was succeeded by his son M. L had already paid nearly a third of his debt. M thus owed less interest on the loan still due and was accepted by C as tenant at a lower rent. By this means M really made a small profit to himself. In three years M had paid off the whole sum borrowed by his father, and due from him as heir and executor, so he gave back his father's bond to C, also D's bond to L. Now D paid back his loan to M. His bond to L was destroyed. The claim of C on D was annulled, the guarantees of D were free. A final deed of settlement was [pg 268] drawn up, in which C acknowledged that he had no claims on D or M, nor on D's sureties. He had to say this, because he was not only creditor to M, but as long as he held transferred to him the pledge of D, and the credit of L, he was a creditor with claims on D also. Further, M declares that he has no credit on D.700
A guarantee arises from certain persons undertaking to fulfil a responsibility which is legally incumbent on another, in case he fails to do so himself; or to secure that he shall fulfil it himself. Thus, guarantees are very frequent at all times, especially in the later Babylonian period, and are of many different kinds.
A guarantee for debt was an additional security to the creditor. Of course, the original debtor is the security that the guarantor shall not lose. A good example showing all sides is the following bond for three minas due from D to L. G and W come in and guarantee that D will pay; if not, they will. To protect themselves, they take as a pledge of D some of his people. But D paid and received back his people, so that the bond was returned to D.701 Why D did not give his people as pledge to L direct is not clear. G and W were probably persons of greater credit and perhaps related to D. The guarantor was sometimes called on to pay. Thus G guarantees for D, is called on to pay and D repays him.702 The guarantor was legally protected against the defaulting debtor.703
A guarantee for appearance may have been only to come and pay, as when G guarantees the creditor, a temple, that D will come on a fixed date, and pay his debt; or if not, G will himself pay.704 It may be a guarantee that a man will not go away; by which may be meant escape payment, or fail to appear for judgment. This is called a guarantee [pg 269] “for the foot of” the person thus indorsed. The “foot” is said to be in the “hand” of him who demands the guarantee. It often refers to debt. G guarantees for the foot of D, out of the hand of L. If he goes away, G will pay thirty-five GUR of dates. Here G is the mother of D.705 So, probably on account of debt, G guarantees for the foot of D, his son-in-law, from the hand of L;706 again, G guarantees for D to L that D will come on a certain day. G takes the responsibility for all D owes to L, and will pay if D does not come.707 Or, G guarantees for D and E that they will not leave for another place. If they do, he will pay six minas.708
But the appearance may be needed for a different purpose. G guarantees to bring a witness to Opis, and give witness against L that one who was guarantee for the foot of someone to L shall return at the right time. If the guarantee shall prove that L was paid, he is free; if not, he is bound to pay.709
D owed L a debt. L ceded this debt to M, but had to guarantee that D will come and pay.710
Solidarity is in some cases a form of guarantee. Thus two men D and E owe a debt to L. Each is taken as guarantee for the other that they will pay.711 This is one of the commonest forms of guarantee. The debt could then be recovered in its entirety from either.
An example of a guarantee against theft is also found.712
A warrant against defects in a slave is very common. The seller warrants that if the slave prove to have certain undisclosed defects, vices, or liabilities, which would detract from his value to the buyer, the seller will indemnify the buyer. This indemnification seems to be effected by a return of the purchase-money and accepting the slave back. [pg 270] But, in some cases, the seller returned part of the purchase-money according to a fixed scale of allowances. In the sale of an estate, the seller guarantees that he will indemnify the buyer in case of any defect of title to sell, or any lien upon the estate.
Very common at all times was a personal guarantee not to dispute the compact entered into. In fact, this may always be said to be assumed. The oaths by which parties swore to observe the terms of the compact are a form of this guarantee. The penalties, so prominent in Assyrian times, are voluntary undertakings to forfeit stated sums, if found attempting to go behind the contract.
As the pledge did not always leave the debtor's possession, the creditor only had a lien upon it. Hence the giver of the pledge had to guarantee that no creditor had a previous lien upon it. This is also extremely common. A slave pledged for debt might run away. His labor as the offset against the interest was thus annulled. The borrower then becomes liable for the interest lost to the creditor.713