Shylock, the Jew, lived at Venice: he was an usurer, who had amassed an immense fortune by lending money at great interest to Christian merchants. Shylock, being a hard-hearted man, exacted the payment of the money he lent with such severity that he was much disliked by all good men, and particularly by Antonio, a young merchant of Venice; and Shylock as much hated Antonio, because he used to lend money to people in distress, and would never take any interest for the money he lent; therefore there was great enmity between this covetous Jew and the generous merchant Antonio. Whenever Antonio met Shylock on the Rialto (or Exchange), he used to reproach him with his usuries and hard dealings, which the Jew would bear with seeming patience, while he secretly meditated revenge.

Antonio was the kindest man that lived, the best conditioned, and had the most unwearied spirit in doing courtesies; indeed, he was one in whom the ancient Roman honour more appeared than in any that drew breath in Italy. He was greatly beloved by all his fellow-citizens; but the friend who was nearest and dearest to his heart was Bassanio, a noble Venetian, who, having but a small patrimony, had nearly exhausted his little fortune by living in too expensive a manner for his slender means, as young men of high rank with small fortunes are too apt to do. Whenever Bassanio wanted money, Antonio assisted him; and it seemed as if they had but one heart and one purse between them.

One day Bassanio came to Antonio, and told him that he wished to repair his fortune by a wealthy marriage with a lady whom he dearly loved, whose father, that was lately dead, had left her sole heiress to a large estate; and that in her father's lifetime he used to visit at her house, when he thought he had observed this lady had sometimes from her eyes sent speechless messages, that seemed to say he would be no unwelcome suitor; but not having money to furnish himself with an appearance befitting the lover of so rich an heiress, he besought Antonio to add to the many favours he had shown him, by lending him three thousand ducats.

Antonio had no money by him at that time to lend his friend; but expecting soon to have some ships come home laden with merchandise, he said he would go to Shylock, the rich money-lender, and borrow the money upon the credit of those ships.