‘I understand upon the Rialto’ could be the Elizabethan equivalent of ‘I heard on the grapevine’ which suggests that Shylock keeps his ears open and listens to idle chatter and rumour in case it proves to be useful.
In the end, however, Shylock decides that Antonio’s guarantee of the loan will be sufficient assurance, and asks to speak with him.
Bassanio agrees and invites Shylock to dinner. Shylock is deeply offended; he feels that his religious beliefs have been slighted by the offer of a meal which might include pork which was against his religious beliefs
‘I will buy with you, sell with you, talk to you, walk with you, and so following; but I will not eat with you, drink with you, nor pray with you’. Act 1, Scene 3, lines 28-31
Shylock is also a suspicious person a simple invite to dinner is turned into an insult, a temptation an invitation to smell pork and pray with Christians (possibly saying grace before the meal) This tells us that the Jewish race cannot eat pork and prefer to keep themselves apart from Christians for fear their religious practices be compromised deliberately or by accident. Perhaps it is experience that warns Shylock not to trust non- Jewish people in this respect.
Shakespeare has used prose up to this point, but when Antonio enters the scene he reverts to more formal verse as business is about to be conducted, When Antonio arrives Shylock confesses his hatred for the man. Shylock turns to the audience and speaks to them directly, revealing his reasons for hating Antonio. Not only does he hate him for being a Christian, but Antonio lends money to people without charging interest (as it was against Christian belief), which makes the practice of usury (where money is lent out and interest rates charged) more difficult. Antonio also criticizes those who do charge interest. Shylock is a twister of words and intentions. He doesn’t like the fact that the Christians hate him because he is a Jew yet he hates Antonio because he is a Christian. He mentions the fact that Jews and Christians have a long standing grudge
“I will feed fat the ancient grudge”. Act 1 scene 3 line 40
It is quite interesting that Shakespeare perpetuates the medieval stereotype of a Jew as a hard-hearted unscrupulous money lender especially since by Elizabethan times there were few Jews living in England as, three hundred years before they had been harshly taxed and finally banished from the country. Since there are no Jews living in English society for people to observe, Shakespeare falls back on the medieval stereotype. Shylock continues this stereotype when he talks about borrowing three thousand ducats from a fellow Jew, Tubal, thus giving the impression that they are all moneylenders and that they all stick together. Shylock is crafty in the way that he insults Antonio and does not act violently towards him even when Antonio loses his temper. Shylock may be more practiced in the art of keeping his temper because at this time in Venice, Jews were not allowed to retaliate should they be attacked by Christians.
Shylock is also furious because of Antonio’s frequent public denunciations of him for being a Jew and a money lender and because Antonio had spat at him and kicked him. Shylock intends to use this opportunity to ruin Antonio.
We learn Antonio is an anti-Semite vociferous in the condemnation of Jews and their money lending. Antonio who claims to be a ‘Christian’ does not seem to have behaved in a very charitable way towards the Jew and this contrasts greatly with his selfless acts towards Bassanio; he is prepared to borrow money for the latter but has been outwardly violent towards Shylock. He comes over as a bit of a bully and one who is not afraid to use his strength as he knows he will be supported by the law of the land. It is possible that a modern audience is reading more into Antonio’s character than an Elizabethan audience would have; a modern audience will have been influenced by the holocaust while a Shakespearean audience would see nothing wrong in baiting a Jew in a play in the same way that a modern audience would perhaps make fun of or bully an alien from outer space.
Antonio makes it clear to Shylock that he is not in the habit of borrowing money, but has decided to make an exception on behalf of his friend Bassanio. Their conversation leads Antonio to criticise the business of usury. Shylock questions the supposed immorality of charging interest. He suggests that it's no different than a farmer who owns sheep, and by their breeding, increases his stock of sheep, as happened to Jacob in the Old Testament. Antonio counters, saying that the birth of sheep comes from God's will, and can't be compared with charging interest. He says to Bassanio,
"The Devil can cite Scripture for his purpose. An evil soul producing holy witness is like a villain with a smiling cheek, a goodly apple rotten at the heart."
Antonio questions the relevance of such an example and scorns old wives tales that believe a pregnant ewe (or indeed woman) would have a particularly marked lamb according to what it saw while pregnant. At this point he revives a classic Shakespearean theme that people are not as they seem (c.f. Hamlet where Claudius is said to ‘smile’ yet be a villain). Yet for all this he later allows himself to be taken in by Shylock and his promises.
Shylock agrees to the terms of the loan, then goes on to remind Antonio of all the insults that have been made against him. Antonio has insulted his religion, called him a cut-throat and a dog, and spat on him. He wonders aloud, why should he lend money to someone who hates him so?
“Fair sir, you spit on me Wednesday last; You spurn’d me such a day; another time you call’d me dog; and for these courtesies I’ll lend you thus much moneys’?” Act 1 scene 3 lines 125-28
Antonio replies that it should be easier to lend to someone he hates - that way, Shylock won't mind exacting a punishment for a defaulted loan. He is unrepentant and warns that he is likely to repeat his behaviour
“I am as like to call thee so again, To spit on thee again, to spurn thee too. If thou wilt lend this money, lend it not as to thy friends; for when did friendship take a breed for barren metal of his friend? But lend it rather to thine enemy” Act 1 scene 3 lines 129-134
He is saying that the transaction is purely business and has nothing to do with friendship which is complete contrast to his dealings with Bassanio. He seems exasperated.
Shy lock is pleased that he has riled Antonio “Why, look you, how you storm!” Act 1 scene 3 line 137 but having made his point he turns and squirms his way into Antonio’s good books rather like a child who is riling another bigger child but doesn’t want to go too far for fear he is hit. Shylock exclaims that he doesn't want to be Antonio's enemy, and offers to forget about all the insults and charge no interest on the loan.
All he asks is that they go to a notary and sign the deal, with the condition that if Antonio defaults on the loan, he won't have to pay any monetary penalty, instead, Shylock will be given
"an equal pound of your fair flesh, to be cut off and taken in what part of your body pleaseth me."
Antonio doesn't take this seriously, and considers the offer an act of friendship, after all it will all be legal and above board.
‘Go with me to a notary’ Act 1, scene 3, line 145.
As there is no mention of interest, it does not go against his Christian principles. Bassanio is immediately suspicious and warns Antonio not to make the deal, but Antonio assures him that he will have nine thousand ducats a month before the term of the loan runs out. Shylock seeks to reassure Antonio and Bassanio by emphasising how useless a pound of human flesh would be to him – not as useful as
‘Flesh of muttons, beef or goats. Act 1 scene 3 line 168
However, previously he has stated that this flesh would be
‘…cut off and taken In what part of your body pleaseth me’ Act 1, scene 3, lines 151-2
After agreeing to meet at the notary later, Shylock leaves. The scene ends with Antonio pleased to see the change in Shylock's behaviour, while Bassanio remains sceptical about Shylock's motives.
We are left with the impression that Shylock is highly intelligent and extremely good at his ‘job’ using all the information he has at his disposal before agreeing to loan money. He is true to his religious faith in spite of all the racist abuse he has received. Perhaps because of this abuse, he is bitter and anxious to avenge himself for past wrongs, real or imagined.
In contrast, Antonio is a wealthy merchant, rich and well known in Venice. He seems to be a loyal friend to Bassanio for whom he is willing to go against his principles and borrow money from a moneylender. But there is a darker side to him; he has racially abused the Jews simply because he can and his anti-Semitism makes him appear a bully who is willing to be led by the law, whether or not it is a bad law, rather than by his religion which preaches love thy neighbour.
Bassanio is a bit of a ‘good time guy’ who has wasted his own money and is prepared to marry a rich heiress for her fortune. He is also willing to let Antonio borrow money on his behalf even though he is suspicious of the terms offered by the moneylender.
