Most of us need a mortgageor some form of creditto make such a large purchase. In fact, many people use credit in the form of credit cards to pay for everyday items.
Enjoy the Famous Daily Religion and banking: European prosperity needs finance. The Jewsbarred from most other forms of employment, supply this need. But their success, and their extreme visibility as a religious sect, brings dangers. The same is true of another group, the knights Templar, who for a few years become bankers to the mighty.
They too, an exclusive sect with private rituals, easily fall prey to rumour, suspicion and persecution see Templars in Europe. The profitable business of banking transfers into the hands of more ordinary History of banking folk - first among them the Lombards.
Bankers to Europe's kings: The business skills of the Italians are enhanced by their invention of double-entry book-keeping.
Creative accountancy enables them to avoid the Christian sin of usury ; interest on a loan is presented in the accounts either as a voluntary gift from the borrower or as a reward for the risk taken.
Siena and Lucca, Milan and Genoa all profit from the new trade. But Florence takes the lion's share. Florence is well equippped for international finance thanks to its famous gold coin, the florin. First minted inthe florin is widely recognized and trusted. It is the hard currency of its day.
By the early 14th century two families in the city, the Bardi and the Peruzzi, have grown immensely wealthy by offering financial services. They arrange for the collection and transfer of money due to great feudal powers, in particular the papacy.
They facilitate trade by providing merchants with bills of exchange, by means of which money paid in by a debtor in one town can be paid out to a creditor presenting the bill somewhere else a principle familiar now in the form of a cheque. The ability of the Florentine bankers to fulfil this service is shown by the number of Bardi branches outside Italy.
To add to Florence's sense of power, many of Europe's rulers are heavily in debt to the city's bankers. Therein, in the short term, lies the bankers' downfall.
He is heavily in debt to Florence, having borrowedgold florins from the Peruzzi and anotherfrom the Bardi. In he defaults on his payments, reducing both Florentine houses to bankruptcy.Florence as a great banking centre survives even this disaster. Half a century later great fortunes are again being made by the financiers of the city.
Prominent among them in the 15th century are two families, the Pazzi and the Medici.
Carroll Quigley: History of Banking and Money. A brief history of banking and money from Prof. Carroll Quigley's highly esteemed 'Tragedy and Hope'.
This page summary includes powerful, enlightening information on the banking elite of which few are aware. Why our system is prone to panics. HISTORY OF BANKING including Religion and banking, The Lombards and Florence.
The history of banking began with the first prototype banks which were the merchants of the world, who made grain loans to farmers and traders who carried goods between cities. This was around BC in Assyria, India and Sumeria.
We are now in the midst of a major financial panic. This is not a unique occurrence in American history. Indeed, we've had one roughly every 20 years: in , , , , , ,