This scene introduces us to Shylock, who is traditionally seen as the principal focus of The Merchant of Venice - the odd character out in a romantic comedy. Shylock is a moneylender living in a Jewish ghetto and, even though Bassanio requires his assistance in the form of a loan for 3000 ducats, there is a measure of disdain in the way he speaks to him - generally taken as anti-Semitism common to the period.

Shylock, for his part, has no love for Christians either. He is particularly hostile to Antonio and his group of friends, one of whom is Lorenzo, an unwelcome suitor to Shylock's daughter, Jessica. Antonio and Shylock have clashed in the past over the subject of usury. Antonio professes that he would not charge interest on a loan. However, as a Jew, Shylock has few options to gain an income, so he must charge interest. Shylock regrets that he must charge a low rate because of men like Antonio.

The scene becomes heated as Bassanio, Antonio and Shylock discuss the terms of the loan. Shylock tells Antonio that, even though he has called him a 'cutthroat dog' and spat upon him, he will charge him no interest, because he wishes the loan to be friendly. He will, however, insert a penalty clause in the contract, which states that Shylock is owed a pound of Antonio's flesh in the event of default.

Bassanio is horrified at the forfeit, but Antonio agrees, sure that one of his many merchant vessels will have returned to Venice by the end of three months - the length of the contract.

The scene contrasts the cavalier nature of Antonio and co. against the pragmatic and embittered outlook of Shylock. Yes, he has been introduced as the villain, but a villain with motivations we can understand and a greater depth than almost all of the other characters.

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These slides present an easy-to-follow overview of the events of Act 1, Scenes 1-3 of Shakespeare's Merchant of Venice. Antonio, Bassanio, Shylock and Portia are introduced. The bond is agreed for a pound of flesh.