The Cross and the Doublecross

1100 to 1300

The Knights Templars

The Knights Templars were a highly ingenious lot who existed from the 1100's to the 1300's. These "Early Day Bankers" invented the modern day "Check". They stored their immense treasures of Gold and Silver in the Temples. If you were a traveler and you dealt with the Templars, you could present a check to them drawn on your account.

The "Brakteaten" monetary system, under which local lords issued silver plaques that were called back on the average every six to eight months and reissued a bit thinner, amounting to a demurrage rate of about 2-3 percent per month over this entire period. People would therefore automatically invest in anything that would last almost forever: improved land, tapestries, paintings, or cathedrals. This resulted in the exceptional economic and spiritual prosperity of Europe during this period.

1252

Italy

The Florin is first minted and was the hard currency of its day.

1283

England

During the rein of Edward I, the Statue of Acton-Burnel was enacted. Merchants in York, Shrewsbury, London, York, Lincoln, and Winchester were given the power to summon anyone that owed them money to appear before the mayor to acknowledge the debt and give a date on which they would repay the debt.

The Statue said that in the event that the debtor was unable to pay and insolvent, their body could be taken and placed in prison until they were able to repay the debt. If the debtor was truly unable to support themselves, the tradesman that had extended the credit in the first place would have to provide the debtor with bread and water while in prison.

1307

France

In the early 1300s, King Philip IV of France (also known as "Philip the Fair") was in desperate need of money to continue his war with the English. He began by approaching the Templars' Grand Master, Jacques de Molay, asking him to respond to allegations of malpractice. De Molay rejected the allegations out of hand. On Friday, October 13, 1307 (a date possibly linked to the origin of the Friday the 13th legend), Philip had all French Templars simultaneously arrested, charged with numerous heresies, and tortured by French authorities nominally under the Inquisition until they allegedly confessed. This action released Philip from his obligation to repay huge loans from the Templars and justified his looting of Templar treasuries. [1]

1345

England

King Edward III was engaged in an expensive war with France. He was heavily in debt to the Peruzzi of Florence for 600,000 gold florins and to the Bardi for 900,000 gold florins. He defaulted on his payments and both houses went bankrupt.

1462 to 1463

Italy

The first public pawnshops opened in Perousa and Gubbio. Supported by the Franciscans they quickly spread throughout Italy. At the time the Catholic Church condemned credit and cast unhappy glances on both borrowers and lenders. At the same time the Catholic Church found it necessary to open these pawnshops in an effort to help poor people and protect Christians from the sin of usury.

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