By Rosa-Maria Gelpi, François Julien-Labruyère (auth.)
ISBN-10: 0230554512
ISBN-13: 9780230554511
ISBN-10: 134941803X
ISBN-13: 9781349418039
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Additional resources for The History of Consumer Credit: Doctrines and Practices
Example text
PROPHETIC INSPIRATION Economically exhausted by wars and exceptional taxes, the country was suffering from a dearth of capital. Whereas Assyria, with all the wealth of a great empire, had an average interest rate of about 25 per cent, credit in the now impoverished Palestine was at a much higher rate. Poor farmers were often ruined merely by the cost of the debt. Israelite law, like that of other ancient nations of the Middle East, allowed the creditor to demand payment in the form of work for a period of up to six years.
At the same time, wills give a greater and greater place to the problems raised by recovery of credit and the settling of debts left by testators. Of 150 wills, 72 make reference to credit operations (Bonnassié 1975). This period is characterized by the massive influx of gold and silver from the Islamic world and by the intensification of commercial exchanges. Between 980 and 1050, the flow of Muslim dinars had such an influence on the Catalan economy that the very name for money throughout the Mediterranean world derives from the Latin word which the Arabs had borrowed: danaro in Italian, dinero in Castillian, diners in Catalan.
The Papacy, although it had everything to gain from the new redistribution of power within the Church, hesitated: it condemned lending, then tolerated it, then listed exceptions to the rule and generally adopted a pragmatic attitude. In the Early Middle Ages, in a context of endemic warfare, the two principal bases of the economy were slavery and pillage. At the Lateran Council in 1059, the Church succeeded in imposing ‘God’s peace’, granting divine protection to a certain number of persons and goods.
The History of Consumer Credit: Doctrines and Practices by Rosa-Maria Gelpi, François Julien-Labruyère (auth.)
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