Between usury and legitimate profit: confessional normative frameworks and the five per cent contract in early modern Germany

This article examines how confessional normative frameworks shaped the regulation of financial transactions in early modern Germany through a comparison of the Jesuit theologian Gregorio de Valencia (1549–1603) and the Lutheran theologian Theodor Thumm (1586–1630). Both addressed the so-called five per cent contract, a financial arrangement designed to secure a fixed annual return while formally avoiding the prohibition of interest. Valencia developed a casuistic analysis centred on the nature of the contract, valid legal title, and the intention of the parties. Thumm, by contrast, evaluated the legitimacy of profit primarily through Scripture, Christian charity, and the authority of the political magistrate. The article argues that these distinct confessional frameworks shaped understandings of legitimate profit, risk, contractual justice, and the relationship between conscience and political authority.