HIST BC 3116y Lecture Notes - Lecture 11: Money Creation, Fractional-Reserve Banking, Usury
1 Nov 2016
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History of money lecture 11 (22 february 2016) Usury was allowed in some respects: sanctioned by the church, writing low contract in particular ways that hid the interest. The church developed an alternative route to heaven: jewish community. Associated with money lending and high amount of interest. Christians projected bad conscious on jews (not allowed to take interest) Jews had higher interest rates because they lived on the margins of society: problematic. Profiti(cid:374)g fro(cid:373) a loa(cid:374) o(cid:374) those (cid:449)ho did(cid:374)"t ha(cid:448)e e(cid:374)ough (cid:373)o(cid:374)ey to eat. Money becomes a way to impoverish society: reaction to the way in which money was now destabilizing the social hierarchy than supporting it, maintaining justice. Justice is that which maintains the social order (not about fairness) Money changing: different currencies, expertise and understanding of different currencies (silver smith) Issued bills of exchange: discounted bills of exchange, bills of exchanged started to circulate. People became traders in these bills of exchange.
