King Charles IV died, leaving no heirs, the Capetian dynasty was interrupted. For the first time in many centuries, France was on the verge of complete disintegration. The Council of Peers hastily elected Charles IV's cousin Philippe de Valois, who took the name Philip VI, as the new king. The nephew of Charles IV, the English king Edward III, also nominated himself.
"Capetian!", - shouted some. “Only by the mother,” the others answered sternly, “and therefore not Capetian. It is not good for lilies to spin. " The English king's claims were rejected. Then no one could have imagined that this event would lead to the collapse of the two most powerful banking houses in Florence, Florence itself, and then a number of states that used the services of the banking houses of Bardi and Peruzzi.
By the time the Hundred Years War began, Florence possessed the most developed economic and financial system in all of Europe, powerful countries - such as England and even the controlling Pope, holding him in Avignon's captivity France - bowed their heads to the power of this small Italian republic. After all, its power was expressed not in strong stone walls, not in the large number and training of the army, and not even in the advanced types of weapons - the Florentine Republic had none of this. No, her power was much more terrible for enemies. The power of money.
It appeared, of course, not immediately and not suddenly. Many years and hard work were spent on its acquisition; a huge number of human lives were brought to this altar.
Avignon. Pope's residence.
The economic hegemony of Florence was laid, oddly enough, by the civil war. In 1250, an uprising against the aristocracy took place in the city, led by wealthy merchants, shop leaders and other representatives of the wealthy, but politically disenfranchised population. This first bourgeois revolution in history, called in the chronicles the Uprising of the Fat Commoners (popolo grasso), not only ended in complete success, but also did not entail the bloody excesses that later gave rise to the English and French revolutions (although to argue that the case did not and executions would be foolish). The winners adopted the People's Constitution, which gave people of the common class the right to participate in the management of their native city, convened a priory (interdepartmental executive body,controlling the life of the city commune) and began to mint a new gold coin - the florin, which became a model of stability and reliability for many years.
Further, the struggle for power proceeded in a surprisingly civilized way. No repression, no military dictatorship: the popolo grasso united in the White Party and began to defend their gains through parliamentary struggle. This, of course, does not mean that bribery, blackmail or murder was not used in such a struggle.
Most of the feudal lords accepted the rules of the new game and went over to the side of the Whites, bargaining for large shares and high positions in profitable enterprises. The retrogrades had no choice but to weave intrigues and conspiracy. But every year their activity brought less and less results.
Promotional video:
Florence.
Florentine companies, namely in this city, the term "company" (compagnia) appeared in the XIII century, led the most profitable business in the history of the Middle Ages. In capitalistically and industrially developed Florence, they imported coarse cloth and wool produced in England and Flanders, processed them into high-quality fabrics and sold them at exorbitant prices. By 1282, all power in Florence was concentrated in the hands of the three largest workshops: Lana, which processed wool, Calimala, which made woolen cloth, and Cambio, which consisted of money lenders and money changers. The financial power of the republic was growing every day. Already in 1320, the turnover of hundreds of the largest companies in Florence amounted to 6 million florins, which, for example, exceeded the income of the British treasury by 100 times, and the income of the city commune exceeded the mark of 300 thousand florins.
In order to get unhindered access to the sea, Florence began to annex neighboring cities. But not by military force, no! The republic simply bought them up. For these purposes, internal loan bonds were issued, which the commune instructed to place the Cambio workshop, but the usurers could not fully satisfy the city's need for funds. The seaside cities skillfully maneuvered between the interests of Florence, Pisa and Siena in such a way that the company of the Florentine Republic to expand the borders, as they say, "failed solemnly," resting the entire Cambio workshop under its ruins. However, this collapse was not fatal.
With the development of bourgeois relations in Florence, other workshops also changed, as did the era. Guilds, a relic of the era of feudalism, when artisans simply out of necessity had to unite against their lords, increasingly ceded their rights to large companies.
By the decision of the Priory, the companies Bardi, Peruzzi and Uzziano were instructed to import unprocessed wool and broadcloth from abroad, Dattini and Pitti were to process them, and Del Bene was to dye and sell them. However, by 1330, the Houses of Bardi and Peruzzi managed to absorb their fellow workers and establish an oligopoly in the Florentine economy.
It cannot be said that they managed to make the partition of Florence easily and naturally, but the fact that this success was well deserved is an indisputable fact. Bardi and Peruzzi achieved such high results because it was they who first thought of occupying the vacated economic niche, which previously belonged to the usurers' workshop. It was they who were the first to offer the commune to place another city loan, for which they received the right to collect taxes for grinding grain and distilling. Not for the treasury, of course.
These companies started accepting money at a low interest rate and valuables for storage (in fact, from the last type of activity that they began to use throughout Europe, modern pawnshops emerged. And the word "pawnshop", by the way, comes from the same companies were served not only by the Florentines, but also by other residents of Lombardy, where Florence is located).
The Roman Catholic Church fought against usury. Pope Alexander III, Gregory X and Clement V especially distinguished themselves in this field. The latter, in 1311, declared any secular legislation allowing the collection of interest to be contrary to the teachings of Christ, and therefore legally null and void. All the more amusing was the fact that it was the Holy See that became the first major foreign client of the Florentine Houses, which at that time were rebuilding the European financial market from scratch, destroyed by the "conspiracy of kings" that led to the nationalization of the wealth of the Templar Order, which had branches of its bank offices not only throughout Europe, but even in China.
The fact is that by the end of the 13th century, the territories accountable to the Catholic Church became so large that it became very, very difficult to collect taxes centrally by the church itself. The deadlines for the collection and delivery of tithes and other church income were constantly being disrupted, which undermined the entire economy of the papacy, and it was precisely at the beginning of the 14th century that the church needed money more than ever. In Avignon, where, by the will of Philip the Fair, the Holy See was transferred, the construction of a residence for the pope was underway - in fact, a new large city was being erected there almost from scratch.
Bardi and Peruzzi offered their tithe collection services in remote areas. At first, they simply provided assistance in transporting money, but somewhat later they introduced the practice of financial guarantees, after which they engaged in the usual money transfers today. Well, when the popes needed even more money, the Florentines offered the Holy See a disguised loan. The bottom line was that the Pope was offered to receive tithes in advance, and the bankers had to collect the tithes themselves. Later. The "implacable fighters against usury" agreed. Moreover, the Florentines received from the Pope the right to a 10% margin (the difference between price and cost). In fact, Bardi and Peruzzi bought the right to violate the Lend, Expect nothing of it dogma.
The redemption of this right bore fruit very quickly. “Many barons, prelates and other wealthy people of the Kingdom of Naples, France, England gave their money for safekeeping to the merchants of Florence … It is difficult to name a country where they would not know about Florentine companies, which, thanks to their highly ramified connections and the large scale of their organization, were ready to lend any currency in almost any required amount,”wrote Datteo Villani, Florentine chronicler and board member of the Peruzzi company.
This departure of the church from its positions required a logical justification. The theory of the golden mean immediately appeared, which justified the accumulation of wealth in earthly life, including the receipt of interest on a loan. The famous theologian and theologian Thomas Aquinas generally allowed himself a statement, for which even 50 years ago he would have been betrayed to an auto-da-fe: "Wealth in itself cannot be evil."
In addition, the church did its best to protect its creditors. If earlier any feudal lord could, bulging his eyes, yell at an employee of the company who appeared for a debt: "Get out, bastard, I didn't take anything from dirty Italians!", Now the threat of excommunication hung over him, and over his estate - an interdict … By the way, the records of such an excommunication operation have been preserved in the office books of the Peruzzi house.
ADVERTISING
One of the French barons owed the company a hefty sum of money and was not going to pay at all. The company sent an employee to Avignon, where he made a gift to the papal secretary, after which he quickly received a bull about the baron's anathema. The Baron found it necessary to quickly pay the debt. All expenses for obtaining the bull, including travel, were 140 florins.
And when the Order of the Hospitallers of Jerusalem owed Bardi 133,000 florins, Pope John XXII simply excommunicated the "soldiers of Christ" from the church. And I would also try not to excommunicate! Bribes by bribes, but in addition to everything else, the Bardi opened an account in their bank in the name of … the Lord God! This most senior client was credited annually from 5,000 to 8,000 florins, which were then handed over to the papal secretaries for the Mass for the forgiveness of usury. Now imagine the cost of holding one Mass …
In addition, the papal curia gave Bardi and Peruzzi letters of recommendation to many European courts. So, in 1311, Pope John XXII recommended these companies to King Edward II of England, and as his authorized agents. The moment was incredibly favorable - the monarch frantically sought money for the war against the barons headed by the Mortimers, and the construction of Westminster at the same time.
And England was a tasty morsel for the Florentines, because it produced a third of all raw wool used in Europe, which was so necessary for the industry of Florence. However, English laws were harsh on foreign merchants. They were allowed to live in England for no more than 40 days, while they were forbidden to have their warehouses or houses in foggy Albion - they had to rent them from local residents. Neither Bardi nor Peruzzi was satisfied with such a commendable concern for the national merchants. In 1311, they carried out a brilliant operation to enter the British market and remove the main competitor.
They provided a small loan in general to King Edward II from Peruzzi - 700 pounds, from Bardi - 2,100 pounds. Thanks to these rather meager injections into the English economy, restrictions on foreigners in terms of their application to these Florentine Houses were partially lifted. Moreover, the Sienese company Frescoldi, which at that time was also increasing its presence in England, and from 1289 collected all customs taxes in the country in the form of payments for loans, but did not provide a new loan to the monarch, was completely expelled from the possessions of the British crown.
Edward II.
True, the matter was not limited to these loans. The British and then the French monarchies needed money, and they all resorted to new and new loans from the Florentines. Since to refuse such clients meant to share the fate of Freskoldi, and the kings did not have money to repay the loan, they paid mainly with privileges. So, since 1314, the Florentines were granted the right to sell their products throughout England "to satisfy their interests and in order to take care of the king's affairs." From 1318 they were allowed to appoint their representatives to public office. In 1324, Bardi and Peruzzi obtained the coveted right to purchase wool throughout Great Britain. Finally, Bardi's company won the right to levy customs duties and certain types of taxes in the king's domains. The same Villani wrote:“Our companies now run most of European trade with their own funds and power almost the entire world. England, France, Italy and many other previously prosperous states found themselves in uncovered debt dependence on us, and since their annual income is not enough even to pay interest on loans, they are forced to provide our merchants and bankers with more and more privileges. Our representatives have taken under their hand the collection of taxes, customs and the purchase of raw materials in many countries. "Our representatives have taken under their hand the collection of taxes, customs and the purchase of raw materials in many countries. "Our representatives have taken under their hand the collection of taxes, customs and the purchase of raw materials in many countries."
In 1327, the Mortimers, funded by the same Bardi and Peruzzi, overthrew the stupid and dimwitted Edward II, enthroning the young and inexperienced Edward III, who at the time of his coronation was only 15 years old. The young king had almost no real power, everything in the kingdom was ruled by his mother, the “French she-wolf,” as she was called, and the Mortimers.
During the reign of Edward III, England's debt rose to a completely unrealistic amount of 1.7 million florins. The unsuccessful campaign against Scotland was financed by the Florentine houses, and the payment of a huge contribution also fell on their shoulders.
Already in the mid-30s of the XIV century, rumors began to spread about the bankruptcy of the English king. The annual income of the treasury was about 60 thousand pounds sterling, but it was gradually declining due to benefits for foreign merchants. England would have taken either several centuries or several victorious wars to pay off the debt.
Finally, Edward III, freed from the custody of his mother and the Mortimers, made claims for the vacated crown of France, and when they were rejected, he declared war on the French, which later became known as the Hundred Years. The costs of its maintenance were covered by both parties through loans from Bardi and Peruzzi. It was difficult for the Florentines, but still profitable.
Thunder struck in 1340. The Florentine Republic issued government loan tickets to combat the plague and crop failure, which accrued 15% per annum. This despite the fact that the average profitability of commercial enterprises of that era was 17%. On the securities of Bardi and Peruzzi, one could get only 8% per annum.
The owners of the obligations of these Houses rushed to cash them out, but Bardi and Peruzzi simply did not have cash - everything was "eaten" by the war. Edward III, from whom the Florentines tried to get at least part of their hard-earned money, said that, of course, he sympathized with them very much, but could not help, since the treasury was empty. And the creditors demanded a refund …
After the announcement of the king, who actually declared bankruptcy, the head of the Peruzzi company died there, in London, from a heart attack. Attempts to get the debts of the French crown led to the same effect - the Florentines did not see the money.
Bardi and Peruzzi frantically tried to find a way out of this situation, but it simply did not exist. The Bardis tried to save the day with a coup d'état. The attempt was not crowned with success only thanks to the decisive resistance of several bourgeois families, not yet significant and not rich, but striving for power and prosperity, such as the Medici, for example.
By 1344, the Bardi and Peruzzi houses had a big and bold cross - these, as well as over 30 associated smaller companies, declared their complete financial insolvency.
At first, a wave of ruin swept through Florence, as too many fed on the income of these Houses. This was followed by a pan-European economic collapse. The Pope, the Kingdom of Naples, the Duchy of Cyprus went bankrupt, and almost all of Europe followed.
The residual waves of this "economic tsunami" rolled over Europe for another two decades, causing crisis after crisis. All the same Villani wrote in his chronicles: “For Florence and the entire Christian world, the losses from the devastation of Bardi and Peruzzi were even worse than from all the wars of the past. Everyone who had money in Florence was deprived of it, and outside the republic hunger and fear reigned everywhere."
This is how the most powerful companies that have ever existed on the European continent rose to power and collapse. So Florence fell. This is how Europe's economy fell.
Alexey Evgenievich Gerasimov
