Credits in the history of mankind appeared long before money was put into circulation. It is interesting that the Greek etymology of this word may now seem to many of us simply absurd: the concept of creditum - "loan", in turn, comes from lat. credere - "to trust" or "to believe". But over time, its meaning was transformed into something completely different.
Without money
The first loans began to be issued even before our era, but as borrowed funds, things and products necessary for the economy were usually used here.
So it was possible to take a bag of grain from a neighbor, and then give him a larger amount in a year. It is interesting that there was a moral code here, so if a year turned out to be a bad harvest, then the payment of the debt was automatically transferred to the next. In addition, the farmer could not be disturbed until the harvest was over. Very often, lending was carried out with the help of livestock or poultry. Having taken several animals, you were obliged to return already a small herd.
First laws
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Credit legislation began to emerge almost two thousand years ago.
So the Babylonian king Hamurappi did not allow taking from a person more than a third of the loan amount, that is, this is approximately 33%. So that the usurers were not accustomed to, they were often punished, for such violations the creditor was obliged to give the entire amount to his debtor, and completely free of charge.
Debt pit
This term appeared absolutely not by chance. Quite often, as collateral, the debtor left not only his property, but also family members, including himself.
In case of non-repayment of the loan, the debtor was simply closed for a month in a deep pit. If during this time relatives did not come for him, then the poor fellow fell into slavery for three years.
Mortgage
So in translation from Greek, the word "mortgage" (hypotheke) means "pledge".
In ancient Greece, a pillar was installed on the debtor's land with a corresponding inscription, which served as a reminder to the owner that in case of non-payment of the debt, his land would go to creditors.
Church
For a long time in Ancient Rome and Ancient Greece, temples were the main creditors.
However, the debtor could be arrested only if he left his home, even then the principle “my house is my fortress” was in effect. The Church had huge land plots, farms and a lot of funds that were willingly put into circulation. But in the Middle Ages, the situation changed radically, banking institutions entered the arena, which rather quickly displace the churchmen. This leads to the fact that the collection of interest is equated with a terrible sin.
Rich and poor
It is curious, but true - it was the poor who always sought to pay off their debt obligations faster, knowing that otherwise cruel retribution would follow.
But the most malicious debtors at all times were the royal persons who did not hesitate to take huge loans and loans from banks.
We have
In the days of Ancient Russia, debtors were usually punished with public flogging in front of all honest people. Interestingly, the victim then tried to scream as loudly as possible to arouse pity in the crowd.
Quite often this bore fruit - someone from his acquaintances agreed to pay his debt. In the 18th century, the State Land Bank was opened in our country, which issued loans to the nobles secured by land and property at 6 percent. A hundred years later, such an opportunity appeared among other estates.
Dumas
The famous author of books about the brave musketeers at one time received a curious nickname - the eternal debtor. In 1852, 53 lawsuits were filed against Alexandre Dumas from creditors who were simply tired of waiting for the writer to return the borrowed funds to them.
At that time, the amount owed was 107,000 francs. And all thanks to the way of life to which Dumas is accustomed. He not only littered with money himself, but also generously treated all his numerous entourage. However, then he decided not to wait for the results of the trial, but to flee to Brussels. This is how the famous debtor himself spoke about it: “I have not refused money to any person. The only exceptions were my creditors."
Indians
But the Kwakutl Indians were obliged to leave their name as collateral.
And until the debt was paid off, not one member of the tribe could refer to the debtor by name.
Cheese
There is a bank in Italy that willingly accepts Parmesan cheese as collateral.
If the debtor fails, it is not difficult to sell the cheese loved by Italians. And do not forget that this hard cheese keeps well, becoming only more expensive due to aging.
Author: Marina