In Act 1, Scene 3 of The Merchant of Venice, Bassanio negotiates with Shylock, a Jewish moneylender, to borrow 3,000 ducats for three months in Antonio's name. Shylock acknowledges Antonio has sufficient resources. but worries because he has heard much of Antonio's fortune is currently at sea, in ships bound for Tripoli and Libya, as well as for the Indies, Mexico, and England. He speculates on the hazards of weather and pirates, and wonders if Antonio will be able to actually pay him back. Bassanio invites Shylock to join him and Antonio for dinner, so Shylock can speak with Antonio directly, but Shylock refuses the invitation because, as a Jew, he follows different customs.
But just then, Antonio arrives, and Shylock speaks in an aside of his hatred for Antonio and how he would like to get revenge on him. However, Shylock treats Antonio with businesslike politeness until he enumerates the wrongs Antonio has done to him in the past, spitting on his clothing, calling him a dog, and criticizing his business practices in public. Antonio gets defensive and says he is likely to do so again, but Shylock claims he wants to move forward, to forgive and forget the past. He agrees to lend Antonio the money free of interest, asking Antonio to promise a pound of his own flesh to secure the bond as a merry sport.
Antonio agrees to these terms, even though Bassanio protests. Shylock's doubts about Antonio's fortunes and his hesitation to extend Antonio credit show his reluctance to help Antonio and Bassanio from the start of their negotiation. The aside in which he speaks of his hatred of Antonio and his desire for revenge on him, in contrast with his outward proclamations of friendship or forgiving and forgetting, make Shylock appear scheming and untrustworthy, just a couple of the unflattering terms that portray Shylock as a Jew.
This is the end of Act I, which has set up the central conflict of the plot. The deadly agreement between Shylock and Antonio, which is motivated by Bassanio's determination to win Portia and Antonio's devotion to Bassanio. Here, Shylock and Antonio may be seen as allegorically representing Judaism and Christianity, a conflict between the Old Testament and the New Testament approach to life. While Shylock embraces Old Testament laws regarding such things as diet, women's social roles, and crime and punishment, Antonio is a man of the law.
at least superficially, epitomizes New Testament values such as charity, turning the other cheek, and loving others as oneself. This also explains his willingness to offer his own flesh as collateral to secure Bassanio's happiness. Antonio and Shylock clearly bring out the worst in one another. Shylock's dastardly scheming against Antonio becomes obvious with his suggestion of the pound of flesh as collateral for the loan because he presents this request as if it were a joke calling it a merry sport