History 1803E Lecture Notes - Commercial Revolution, Usury, Foreign Exchange Market
15 Nov 2012
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Document Summary
The second lateran council (1139) declares usury a sin. One of the major impediments to commercial growth during the middle ages was the church prohibited usury or interest. 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. There they become important in the growth of the merchant class. Following persecution and expulsion from much of europe, jews were often confined to ghettos. 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. Giovanni moves family toward respectability; son cosimo transforms family in to powerful institution. Medici family becomes effectively the gov t of the florentine state.
