The Commercial Revolution 2
One of the major impediments to commercial growth during the Middle Ages was
the Church prohibited Usury or interest.
-the second Lateran Council (1139) declares usury a sin.
Saint Thomas Aquinas (1225-1274) objects to usury and defends what is known as
the just price.
Monet lending therefore was left to others, including the Jews.
-following persecution and expulsion from much of Europe, Jews were often
confined to ghettos.
-Ghetto in Venice
-there they become important in the growth of the merchant class.
-Shakespeare, The Merchant of Venice (1596)
The Birth of Banking
-the difficulty and cost of transporting physical coins in order to business led
to the number of innovations the led to the modern rising of business.
-Early banks were more involved in money-changing than lending.
-Bill of Exchange was a key innovation that permitted greater fluidity.
-The Medici Family