Legal Definitions - danism

Danism historically refers to the practice of lending money, particularly when interest was charged at rates considered excessive, exploitative, or even prohibited by the legal or moral codes of the time. It specifically denotes the act of engaging in usury, which in various historical periods could mean charging any interest at all, or charging interest above a certain threshold.

Here are some examples to illustrate the concept of danism:

• Example 1: Medieval Prohibition on Interest
  In 12th-century Europe, a local artisan needed funds to purchase raw materials for a large commission. A wealthy merchant agreed to provide the money but insisted on being repaid the original sum plus an additional 15% as a "fee for service." At this time, many religious and secular laws considered any charge for lending money to be usury. The merchant's action, therefore, would have been seen as an act of danism.

  Explanation: This example illustrates danism because, in that specific historical context, the act of charging any interest or fee for a loan, regardless of the amount, was often classified as usury and thus an instance of danism.

• Example 2: Exploitative Rates in Early Modern Period
  During the 16th century, a farmer in desperate need of cash to save his harvest from ruin approached a moneylender. The moneylender, recognizing the farmer's dire situation, offered a loan but demanded an annual interest rate of 40%, far exceeding the customary and legally tolerated rates of the period. The farmer, having no other options, accepted the terms.

  Explanation: This scenario demonstrates danism as it involves lending money at an exorbitant and exploitative interest rate that would have been considered usurious by the prevailing standards and laws of the time, taking advantage of the borrower's vulnerability.

• Example 3: Institutionalized High-Interest Lending
  In a burgeoning colonial port city of the 18th century, a group of financiers established a system where they would provide capital to new trading ventures. However, their standard contracts included clauses that guaranteed them a return on investment equivalent to an annual interest rate significantly higher than what was considered fair or legally permissible for commercial loans, effectively cornering the market for high-risk, high-interest lending.

  Explanation: This situation exemplifies danism because it describes a more systematic practice of lending money at rates deemed excessive and usurious within that historical period, indicating a pattern of engaging in high-interest, potentially exploitative, financial transactions.