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    The history of money_Cap 4_ Knights of Commerce_pp 64-79

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    The History of Money - Cap 4 - Knights of Commerce - PP 64-79

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    alejandra

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    4 A Knights of Commerce In faith hei prof, Sanaa Oyen 12,139, RENCHSOLDIERSLOADED dou bord men ont cats and ok the i the xan xyousie of as where the sipped the mente themenclathesand dad females sandy peo A ne cru creamed thr nocece the urd the wood Rena th The fans le hig ghd igo their eh, The hea cased ge lie ost nd ht nto ‘plitopnas thes fiat end en down te nbs in delete lets flame Thereof te Bane gly rowed ou the ‘crams fhe brnleg men ‘Wi chs as execution ofthe Kalhts ofthe ha ofthe Tempe inthe colic els ea the Convent of Salt Anse Biope ie? tat kegs pn cr ea th tt ten buned that day bad nor een he tp lenders fhe nance sxe psn rdf eh Guten toner he some chums there Whether heres vee lee fhe nen ae thse iy dn ona ann he in River, and ee ening stem aloe withthe x “tection oftheironder ‘he Vc Baas Thee mao faking noon ae fom the merchant conan furfomanollndsenne wel eel Leis row Teg Fond Je ed 8 6 Cae Cah 6 Crusaders, the Miltary Order of the Knights of the Temple of ‘Solomon dedicated he ves to serving thecharch and, pecially tothe tno literating dhe Holy Land from the Ines. The Tem ‘pls lter became businessmen who ran the weld genes inter [atonal banking corporation, which they operated for nearly t¥0 Funced yeas During that time, chey lid the foundation fr mod crm banklng but they dds at huge price to themselves Theirs ‘is led nr only tothe destraction ofthe order but othe corte tn public burning ofits leader a well ‘Reruted largely fom atong the younger sons of motility, who Inherited no tiles eiches, the nights pledged themselves to ie ‘Gf doveion tothe church, They lived adjacent tothe ris ofthe ‘Temple of lemon in Jerse, a fom this oaton they derived helenae, They udertook theepeilbligacion of maining the safety ofthe highway fr pls coming co the Holy Land. "The Knight Templars didnot pursue an exif, a Feast tin Abe eat years, Although they fought, sensu they ate onl 0 ‘Mental day whe listening toseriptral readings. They ate eat ‘aly three ies week. Asa sig oftheir chastity, hey dese in white mancles emblazoned wth lage red ros they kee teirait ‘hort and tonsted ike other monks. Married men oul join the order but they had olive chaste lives apart fom chet alies and evens, ou never don the eitional vihte mantle reserved forthe brothas who lives pepenal isnt nd never mae. All knights had to stay away from women and ould sor ks any female, evenafaily meme. Tofreall any po ‘encall iaappropeae interaction the order dd no havea female thanch, and nike other order tid noallow youths to enter AS tinal preston aginst sn, the Templars leptin shi and pants Wiha or araund heir walt to remind hem of thet vow ofchastiy. “They kept a candle uring in thee rom droughout the ight 10 scourage any immoral acts whether alone or with someone ee. Th the twelfth century according to an eyewitness account, the nights wen into aren lence, but atthe momen of attack they burt loudly inc song with ane ofthe Palms of David "Not unto tu OLoe” They maintained astict code of ware that virally “ ‘The Hor of Money rece miendr reat on the afl eas of hi Slings, eve nen, othe Temps we san he teat ee mon nthe wer. The Tengl ered ee tance mol x the Ligh in Richard War nce cen per Fee nthe sratnd ot ell cnsuced cals howe on ‘inser texan wien ihc peg ec tnt beagle vetlel open ction, Thong unde comple: over ogc peatblipae! the rete ht oem ll pol tate aptrel fo Nan lng th Cras ie viel ip ser they ss seceding he lack me The moe iano ofthe pcan on Kno Hoffa who do sat neny oth elas nn fe mero Tor 4 Bek atthop of Cater by fof Heys Engin 1170. The King ented enogh ney spr tw nel laighsa ern he Holy Land ode lenin onal 1500 malo Tp an ano the Kh piles Thre che che Tp sie nolan le all designated to supore the work ofthe onde in Palestine, Ihe [nigh regularly cranspored the proceeds cf their European eats to theirheadquarers in Jena, \ Because the Templars ed some of the mightiest cates inthe ‘wold ad because they consintedone of theres fighting forces ofthe ime, thei castes served as idea places in which to depot luabes The ite and respected Templars al _ Reng anl er | ecto ea chao ni? Meee ae sponsbly for safety onthe highways and in the shipping lanes _A French knight could deposit money or take outa mortgage pete ne nce © gold coins when needed in Jersalem. The Templar of couse, ‘charged a fe forthe wansction, and ince they pid ou inde ‘entcutency rom what they secelved, they could take on aol cutof the money forthe exchange. Clase Cah o In addition to serving asa depository fv anda ranspoter of rea. "sete Teal administered the fund puhered fom religous and secular soures to finance the Crusades. They sto made lens 1 eigs cling Lous Vl of France and tothe knights whoneeded ‘ands fo themselves and thie reine when going on a Crusade. Knights who were not member of hearer customarily toned thet ‘valuables in a forres of the Templar, leaving on ile a well their las wiland estament, foe which the oder wa serve a execu ifthe night didnot eum, The ode requntly hel and eapevied ‘morgages and ther fancies for kings during thet absence, a when Philip Il of France lf the Templars in charge of revere from his lands when he marched avay inthe Case of 1190. The ‘Templar’ cctles soon Became fulserice bane, ering many fi ancl vervicer tthe nobly. “The Tema headquarter in Pats became one of the greatest ‘weanre houses in Europe To ensue scrupulous honesty, the order fothade ts knights to ow money themeles, Ths proibiion was so suey enforced that any knight who died wich unauthorised money on his erin was considered to have died outde a sae of ‘ace. He was denied a Christan burial and hs, according to heir religice, condemned toeteral damnation, Such tice ules and be lied pepsin ad even petty dthonesy in check throughout the history ofthe order. (Over the couse ofthe thitenth century this order of educated and honest knights served financial agents for the popacy and handled many accounts foe he French kings inching their se Ioldaccouns. As bankers tothe kings and pope, the Templar gre into an inition somewhat akin to a moder easy department, excep hat chey didnot collect axes. Ae thes maximum strength, they employed approximately 7,000 people and owned 870 castles nd houses seated across Europe and the Mediterrnean fom Eng land to Jeu, Despite the dedication ofthe Templars to their mision, they steal lee grund in Palestine tthe Epyptian Mamelkes, an amy ‘of ferce rita slaves mest of whom had been recruited rm Chis ‘lan fails an ad converted o Islam. In 1291, the Templars ost ry Th iy of Money the cy of Acre, their last stonghold on the mainland, and leo the sland of Cyprus Despite the military setback theiinancial en cerpises continued to lr The Danoens or Success Despite the poverty of is indvidal member, the order grew rich sn fa, bur seemingl befood the conto anyone nation or king. ‘They became an ey erget, tng for 2 sfleenly song and qeoty monarch wo tackle cher. That monarch nally peated in ‘he dashing form of King Philp IV of France, known a Philip the Fr bcausehe was considered the most handsome man inthe wold 191295, Philp tookthe managementof is finances otf the hands of che Templars and exablised the royal treasury atthe Laue in Pais He dhen began craig aimed at aking over both the Tem Fan’ extensive properties nd wessre, Pip desperate need for money arose after he tre 2 rick that ‘Nero had pulled a thousand years ear he debated healer cut- ency of his res inorder to produce more colns by reminting the old ones with ls sve. In the short ri, he gained fra this a> newver bt problems quickly aes when the peas stared paying their exes wit the new coins containing les silver. Like Nex, Phlip ended up wich mor coins buss money, since each coin now had lss buying power Philp then sughe efor the French cr rency by reeurning co ts orignal vale, and in 1306, he recalled ‘he coins and reminted dhe athe va sein 1266 by Lous I Pullip repeatedly altered the value of the currency inthe years that followed, bt each alteration hur him inthe end, He needed acon stant supely of gold and sllverin onder to estore che adalterated cineney Incxdertomeethiscontanc nes for money, Philip the fl merchants whose goods he seized He atterped toa the logy an then be sumed onthe Jews expelling them July 1306, after seing thelr property. Even the wealth fhe Jes aruilembaal, ‘combined wi hist on pits failed ro meet the nerf Philp’ sowing goverment and his thie for power. He need mise znounts of money {U VAS clase ak © “The greatest concerration of wealth in Europe ly just ouside arsine well ried ale ha served the main teasre-howe forthe Templar? wealth. To obtain that wel, howeve the King ‘woul have to destroy te order, and he proved willing and able to oso. la 1307, Philp issued secret order that began with a Biter ‘denunciation ofthe nde. “A biter thing a lsmentable thing thing which shore o contemplate teble to hear, a detestable crime, an execable evi, snatominable wook, detestable dograce ashing almast human, {ded set apart rom al humanity" With hese weds, Philipset the seage forthe sll propagenda campaign he nesded to wage in fonder to topple and lot the greter Snail nsetion inthe — Rather than make war onthe Template gents of Pip IV coorinated suprise ridin which chy aneed dhe unsuspecting leaders ofthe order throughout France Philip timed his tid 0050 arzestJoequs de Mola, che elery grand maser ofthe onde, who had come o France frombisheadqarte in Cypmstoattend to some bine forthe Templars snd Pope ClmentV. Philip allies imedael unlesshed public eatone war egins. the Temas, accusing them ofthe wos srs of erimes in oder to incite pulichowoe and outrage gains hem The charges ete in lengthy cour procesdings that ealminated ina dramatic eis of trl ring which French prosecutors accused the orderSleadesof heresy, apts, devil worship, sexual perversion, and a whoe cx logof the wosoflenses agans tbe medieval cade of mel Under Sere oer, the eldelyafcersfthe order signed confesions that, provided lard decals above their activities a iol worhipers, o> fanersofsacred objet, conspirator wich the dei, and pepectaoes ofsewal deviance upon one another The charges included accusations cf Temglarshavngsek wich the ‘copes of noblenomen, worshiping a cat, cating the bois of dead eight, and making bonds of blood brotherhood with Musins COtheritese alleged hat Templar sehced virgin ode to ro hve infants whose body a the knights could render wo make a credo for their idol. Philip's poseutosaccued the Templars of 0 Thetis of Money promoting sodomy within the order, and they cited chi sin in pr ‘ular the ean why the Temlarshad los thelr Crusades inthe Holy Lan and contol ofJesaer. The fll of Jerusalem thus pa- alleled the bibliel sory of Gas wrath and che subequentdetuc- ‘ton ofthe ete of Sodom and Gomomal for similar offenses. This charge of rodomy offered even the simplest mind an explanation of why God would have allowed the Mati to conque Jerusalem. The charge male understandable history that cherwise confounded the faith who ad prayed diel oso many years fr hbeation of the Holy Land. Prlip prosecutors even wed the very wealth othe onder agalest. ‘hem. All Christians believed that Satan had appeared vo Cis in he wildemess and ofered hi the wealth ofthe wold ihe would ut encunce God and fllow Sata, Chis ad eid snd lived in poverty. The Templars, by cons, had grown to be the chest soup ca eath and lived in afluence, if not genuine xu. Ae- ‘onling othe prosecutors the Templars, the, mist have hada pct vith che devi in oder to have become so wealthy. ‘Ale th ntl shock of estan tote, rot of the Templars recanted ther iar confessions av defended themselves and thet ‘order with the bravery and strength by which the Knights Templars Jad eared their reptaion on the batlfeld nea of Masi ok les, they now fced jes, prosecutors, and torres who epee thei language and profs o worhip hel god. in thee hour of need, the Templars received no help fom the mother church that ‘they had defended withthe ive for so many yeas For nealy a decade, the French authorities tortured the Templars textarea: fesions from them. When pute pubic dpa howeves the Ten plars would rally and recane their confessions, whereypon @ new ‘ound of tome and confestion would commence. Bowing co presue fom the French monarch, Pope Clemnent V soled the onder in apapl bl, Voxin Exes, on Match 2,132. ‘Thepope found itmor pent saerifie the knights of his church ‘han to defy the wll of th Feach king. In abolishing the cds, the ‘ope hoped to maintain some contol over the Tela’ propery, which he transfered to other religous groups, mot inortanty to VV Csie Cat 1 the Hoapcales,anocer order of religous nights Four years after the mass exeetion ofthe Templars outside of acs, Grand Mater Jacques de Moy and Gz de Chamey were taken rom their cells and burned to death ona sal island inthe Seine River on March 18, 1314. Thus King Philp crucbed coo letely the greats and mest powerful international financial nst- tution ofthe time. The French goverment, charted in itsatterpts to obra che ene weary ofthe Temp in Pars, demanded a lage pation of i from the Horptales ae compensation forthe ‘money spent on ivesiatons and ri of the Templars. After se Ing what had happened wo heir Templar brother, the Hospitals quickly ielded to Philips mening reat to purify herder with ‘he same fe shat he had don the Temp Pope Clement Vand King Philip 1V quaeledoverche money and property ofthe onder, but not felon Within the same year, 1314, both che pope and the ing lay end. Many observes, never sein the wil Godin earthly happenings, concled that God had called thepope andthe king to appear with the burned Teaplas before the ‘throne of God ffl judgment (On earth, it mattered litle who wat to blame, since nothing ‘oul change what had happened, The etal wiunph of King Philip cover the Knighs Templars marked clear increase inthe power of 4 national government that would not cleste an international financial ial os powerful as the Templars. Whether Philip snd (Clement had lived or died, thie straele was setled clestly in favor ofthe state. For the fst ine since che fll f Rome, 3 6¥- ‘ment in western Europ had sucesily eater ts authority and power to contol financial instiution, andi ad brcken the commeril power ofthe church. Never agin di the church ot insintions execs w9 mach clow over the financial activities of western Europe. ‘The destruction ofthe Templars, however, created a financial and commercial vod thatthe church wasteo weak nd feafl t00 ‘apy again and chat goverment was note lrpe and strong enovgh ‘ofl n The Hitoy of Mone ‘Te Ri oF rr Fata Basan Fass Ac this pivotal momencin European economic history, when the fe ‘nancial power ofthe church ha waned and he power of state had rot yet gromn strong enough 1 replace i, new group of men and insiurions stepped into the beach The files ofthe north eal ian city tate of Ps, Horence, Venice, Verona, and Genca hepa ‘offer the same services that the Templars ad feed belt on much mere modes sal at it. These fale created anew sec banking insiutions ouside the immediate contol of church and stare, yer with lose es obo ‘A new sytem of private, family banks arte in nrthem aly. ‘These banking families didnot operate under a religious mission ot within the sever limits ein money imposed vpn the Templars bythe church and by Christin docrine, The alin banking fmt lis deat realy and easly with Muli, Tatar, Jews and pr sans as they did with Orthodox and Catholic Christians. The frnking network ofthe Ilan merchant fails soon sretched fom England to che Caplan Sea, and they financed trading misions ‘hroughoue the known weed fom China tothe Sian and fom India to Scandinavia. They ofeed a eady supply of ered at tes lower than thote ended by mest other nancies, and they eon ‘wlled more money ad lent at consent, it always low rates, Unhindered by che religious pincileof the Temp, they had oly one ambition: to rk home a profit. The talon fas dfered in other important was fom thew gious knights. They dd not operate fom well-oafied casts, not Aid they travel in heavily armed convoys Instead, they lived end worked inthe marketplace among the people catering ss mach to the nects of small landlords, merchan, and vendars a to those ofthe aristocrat and high officials ofthe church and ate, Whereas ‘he Templars served ony the nobly the new talian bene served everyone. In het nancial pura, alin merchants traveled to makes snd fue throughout Europe, Like other inerant merchants and ‘vendors they setup able cr Inge benches fom which hey not only ‘traded thei goods bc also exchanged mone, made oan, aranged VUVVUVTT Tt Cla at a to take money x payment for a deb for someone in the nex town, aed performed other elated financial evices ‘The modem wor! kank comes fom the way in which these ealy ‘money merchants did busines; deived fram a word meaning "able or "bench," the prop thet erally formed the base oftheir op. rations at thefts. Foe alin the words en, bon, nd ‘200 spread into other Earopen languages and eventaly through, out the wold Moneylendng in some form ot oher sem to have ben known ‘oraslongas there had been money, butte bank became something ‘mor than moneylending nstcuton because the bankers dal not so much wth old and allver os with lige of paper representing the sold and silver Banking as raccedby the Templars faced a geat limitation fn that the church forbade usury the charging interest ‘on loans and geting around that baer proved ta be one of the seats obstacles that he Ilan families hd to overcome inorder ‘o bull their extensive banking enterprises, ‘The Cuistanprobibition agin wiry was based on two passages in the Bible: “Take thou no usury... o increase; but fear thy God... Tho shale nt give him thy thoney upon uy or fend him ey victuals or incease” (Leviticus 25:36-37) ane that. ‘nach ven for usury, and ath aken increase shallhelive?he sal rotliveshe hath done all hese abominations he hall uel de, his Hood shal be up hi" (see 18:13) ‘The scriptural prohibition never completely eradicated uur, but ‘tcerinly hampered ic Jes een ered as moneylendca since, in the eve of che church, chey were already condetined to tema amaation, but f Christians lent maney for interest, the Catholic church excommunicated ther, hereby baring tet fom ll services and fro Holy Communion. The lav tated quite specifi that uid so act, urs et (whatever exceeds the pencil i ‘sun. The felian bankers, however, fund away around this po. Fubition and thus grew sch without endangetig thi souls, ‘Usury apoled only to loans, s through the fie technical ds tietion between loan anda contract, che alin merchants ble whole edifice ofboowing and lending behind a fade that showed m ‘Thetis of Money no sig of wu. They scrupulously avoided making las. Instead sof exchange A bill exchange isa wren document tring the payment of acertan amount of money to cera pet om ata certain time and place. The Latin name for this document ineonum per etna, which means “exchange through writen doe mene or bills" This transaction wasasae of one kind of money for ‘othe kind that would be pai in anther currency a a specified fare dae. ‘A merchant in need of money went toa banker in Kal. The Inanker gave hin the necessary mone in cab, in the ris of Flo> ence ofthe dats of Venice and they both ined the bil of ex- Change whereby the merchant agreed pay lightly higher amount tof money in nothercutency tthe net fuirin Lyons or Champagne, France. The merchant did nothave o goto the far personally to pay the bil: Both pris knew tat f the merchant aed to show wp at. the fi the office in Florence would collec the money owed i. ball of exchange, but they pure” - roanew and mote profitable we, Banker received a fe for change “inghe money and therefore were ganized into che ul of cumency ‘xchange, the Atel Cambio, which was separate fom the lawex- ‘lass moneylenders and prvnbkers so despised by everyone. in | practice, the bakers became lender to che ich while the money “Tenders and pabrokes continued ro end tothe poor “These ils of exchange finttoned wellin Chan coun but they didnot workin the Mus world. The Koran prohibited sy “sever more stl and cles ehan che Bible forbade any kind of trofion the exchange of silver o god. Muhammad sid, "Sell not 9H forgo excep in equal quand... nor silver for sier except fn equal quintiny” The Koran specifically prohibited bil of ex chang by eodemning the sal of anything present for that which ‘s absent” “Te Macac or Bsc Moe use of bills of exchange had another beneficial eet on com ‘meres it helped to avercome a major obxtacle ofthe ime, the awk wardnes of eos and the difcly of dealing with them in bul VESSEEE SST TET TTT T EEE T EEE Clase oh s Coins were heavy, dificaleto ranspocteal se, olen coun tet, and subject to denen of other problems onthe potty funded hghonys, in dhe lands of eomupe cles, and atthe some times pooty administered furs nd markets thatemerge a the new commercial centers of Eup. “The new lean bark money bosted commerce by making ernie ch fn 138, a ship of eons required thee eck to wendts may rom Rove nthe orth f France wo Avignon inthe south, adiance oft over furhundred miles, andthe ship- tment faced che mr of engl, stolen by robbers, piled by the very people hired to traneport i? By oneal of exchange ‘ould beset inamerecgh days nif wasstcen the hifcold fot redeem it. Bills cf exchange, nother words, moved faster and frotected eveyone involved inthe tansseton, Despite the extra ot of 8 percent co 12 percent il ill proved cheaper than the ent of hing an armed escort for ahipment of ol and ser coins orb, ilsofexchange beled fe money omits spatial iw ‘atone. The bil of exchange ak reed money fom the confines of any single cuteney and fom the shortages of gold and iver tae could ‘ceurin he ecuntry that minted the coins. The merchant could des {gna the bln Venetian diets, Saxon ales, Foentne florins Miones tetones, French eos or any of dons foter cece “The sappy of bills tha cou be writen in ha camency no loge depended upon the supely of gland ser tha those stats hat tery depended on the merchant condence inthe eae. If they low confidence in ene caren. they auc began owe he Bill of exchange in another “Thebills of exchange created new money by breaking though the hy tations imposed bythe we of pci or eal ins ‘Thebilehemelvescelated among merchantsa kind of paper money. Alchough the actives and sevice ofthe banks rained Cenfined to restive al nmber of people and di ot involve theaverage penne oct eller the banks had, nft, found 8 way to put more money into craton. Under the new oecem abag of hundred forics that might once % The Hi of Mine have sc idle for years in anoble sronghox could now be deposited foc safekeeping in an allan bak that had acces to branches ass ‘he continent. The Bank then lente money and circulated the il cof exchange as mone. The nobles had his one hundred ln, hich were now on deport in the bak; the nk had one hundred locas on its books. The merchant who borowed the florins Was tices, and the persion who held che bl of exchange now had one ‘bundcd florins as well. Eventhough any ne hundred gold coins were involve, the miracle of banking depots and loan had ra foxmed them into many hrsreds fli that could be used di- ferent individuals in diferent cities atthe same time. This new banking money opened vast new commercial avenues for met chants, manufacaes, and investors. Everyone had more money iewat sheer magic. ‘The lallan merchants conducted banking ta private enterpese rooted in families such asthe Peru, Bard, and Acciaiol of Flo- "ence, who had relative serving in hanch fies fiom Cypras to Eng- land. Together, eh tanking fies of lly financed the Engh ‘monarchy under Edward I and Edvard Il in the campaigns to eon- ‘quer Wales and Scotland. By baking the English monarchy, the Tealan banking families made more money than simply what they czved in interest on these high-k loans. Withee Enish ing s ‘heir debtor, hey acquired special access tothe English marke and ‘x particular thet pecil lationship wich the monarchy gave tem & neat monopoly inthe marketing of Engh wookens on the Con- According to contacts signed beween the pope andthe banking houses of Peru and Baron une9, 1317, the money collected frm allthe Catholic churchesin England and destined forthe pope woul ‘be deposited with the Peru and Bard representatives in Londen ‘They kept the acu maney in Loodon bit forwarded il of ex change to tly, where the banks paid the pope fom theca. ‘The Pera and Bard bankers in London then wed the money de ‘ested with chem bythe church eo buy English woolen, which hey ‘hipped tthe Concnent fr sale. The bank: ket the money rom the sole in Italy The money thus “pase” bock and forth between WWW Cae Cah 7 ltaly and England and among the makers on the Continent. Ie “mover theeofer ofthe sate to those ofthe church then it went tothe bankers and kack tothe merchants, where i could be ‘id a taxes before starting its journey anew Yt allthis could be done without the use ofa single coin the mavemen wa of clus ‘nregieersand acccune book. Bankingrepreseneda commercial it novation that simulated commerce inal its phates and benefited _everyone—ffom the peasant to the king and from the local priest to the pope—herever the banking flies opened an office. Bills of exchange provoked oom in the European markets by helping to overcome the vastly innficiene supe of gold ands ‘ver coins By making the system work much faster and moe eff ently they increased the emuntof money ncirculaton. Theil, ‘of exchange themselves became money they circulated to third, four, an ith paces in much he same way tit we accep paper cutency today. The ils clrculated throughout Euope aa special ined ype of paper currency acceped by merchants inthe main com ‘mercial centers seo the Continent ‘With the spread of Kalan banking through Europe, the curen- es of Florence and Venice became to ofthe stands ofthe Con tinen. ise minced in 1252, che Florentine coin bore the porta of Saint John the Boeis on one sid and ilo the others his gold nin became known a the frino dor, othe ri, The cy ‘xed the flrin in both ver and gold denominations, the gold hav ing tencimesthe value ofthe silver. Atatime when every ly of any size or with any claim to importance minted toe coin ints own site and with tsown name, the flora of Flnence, cogeher with the dca of Venice, helped bring ably to he lave medieval markers ‘The Venetian doge Giovanni Dandoo introduced the gold dct in 1284, and ie continued in use frst centuries, The Venetian dca aquied th name een after the palace ofa Zc, where the coins were minted. The name duct came fom a Latin insctp tion onthe coin. Like the tide dope, usa bythe head of che Vene- tian republic, ducat seated to ue and dk, fram he Latin dee ‘meaning “to lea.” The Venetian duct remained unchanged in se and party until che ill ofthe Republic of Venice in 177, ry The Hse of Maney ‘The new forms of tanking money circulating throughout Europe necessitated new ways ro keep account of the money’ movements 3108890 many jurisdictions and in so many currencies. Lanovations in Florence produced double-enty hookleepinge simplified formof ‘marin insurance and one of the most important innovations oa the check. In the earliest forms ofbanking, a person could depcaitor withdraw money only by appearing in person before the banker who would give cut money only if the depastr hie verbally requested ‘Written withdrawals were considered to ky, since sucha request ‘night be easily forged unles the perion appeared in person before a bank clerk who could ater serve as a witness, if needed. Noe until the end ofthe fourteenth cencury did the fist written withdrawals ‘appear in the records of the Medi Bank. These fs checks farther ‘creased the speed and leability ofthe banking system, The Italian bankers thrived bu like the Templars befoce them, they were ulkimtely undone asa esl oftheir scces andthe deal, {ngs with the government. Several of he major Italian fanking fam lies backed Edward il at the sar ofthe Hundeed Year” Way bbeween England and France, but when Edward Il defalredon his loans in 1343, his bankrupcey caused the bankruptcy of the leading Florentine family banks as wells any of thee depositor. The en tie sytem of money based on bills of exchange ultimately rested on ‘he honesty and goodwill ofthe participants but when the govern, ‘ment became too burdened by debe, ic had the power eo cancel them, thereby destroying the sytem. The banking fortunes of the Iralians dissolved like snd castles onthe beach at high tide, Then, ‘0 seal the fate of Florentine banking, the Black Death appeared ‘orther (aly and ravaged the area until 1348. Eventhough the original Ilan banking falls brought inane ial dsasterupon themselves and the city of Florence, Banking ise survived. Their innovative practices spread to ocher cite, and paved ‘oo beneficial fr merchants to allow them to die Genoa and Ven auickly took up che mantle of Ferenine banking, and tovatd the end ofthe fourteenth century, Florence itself reemerged asa inter national banking force. Despite great loses inthe fouttenth cen _ — — eal el _ - oo _ wr OQ ee Classe Cash » ‘ry banking revived with new vigor in the next century under the leadership of Florence's greatest banking fail the Medic, who we ‘ered banking as relative latecomes in the final decades ofthe foe teenth century, Even though banking emerged during the Italian Renaissance, i ‘segue itl respect. Ther wrk as money changers snd as barcly.

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