Banking in Medieval Societies

[kigmatzomat]

Roman law covered lending and included limits on interest to prevent loan-sharking.

I'm fairly confident that banking has existed in every wealthy culture and in many smaller ones. I imagine the first incident of "modern" lending went something like:

"Hey Thag, lend me your club, would'ya?"
"I like my club, Grog. Why should I loan it to you?"
"I'm going saber-toothed rabbit hunting. Your club is bigger than mine."
"Yes, yes it is, thanks for noticing. You can borrow my club BUT....."
"But what?"
"But I get a haunch and your club if you break mine."
"Grrr, it's dirt-path larceny but here's my club."
"Thanks for your business. Would you like to open a money market account?"

 

[TerraDave]

Lot of good information here. Loan sharking is mentioned above, I know other legal concepts regarding credit (e.g. you can't borrow money, then give all your wealth to your brother, and declare that you are broke and can't repay the loan--and several hundred variations on this) date back to Roman times. And of course you wouldn't have laws against Ursary unless people knew what it was, and occasional practiced it.

For the original poster, the Templar example is good. It also raises the real problem with credit in any era--getting it repayed! Then as now, those with political power tended to be the best canidates for a loan, until they changed the rules to favour themselves.

But in olden times people did use money, make loans, have long distance trade and various kinds of promisory notes...these are the basics (they didn't have fixed and list prices or standardised manufactered items, but that is another story)

 

[The Grumpy Celt]

First, let me thank everyone who has sung the praises of Banking Guild. It feels good to have people like it.

I took a toolbox approach to it. In a toolbox, if you need a hammer, you get the hammer. If you need some information on currencies, the book provides it.

The book was not designed to replace the economic system provided by the D&D books. The book was also not designed to fix errors in the economic system provided by the D&D books.

It was also not designed to accurately reflect economic systems of the Middle Ages. But I did included sidebars with discussions of the histories of things like banking, insurance and the gold standard.

At the risk of breaking my arm patting my own back, if you looking for rules on PCs buying raise dead insurance before plunging into a dungeon or rules unusual treasure (i.e bonds, stocks, etc.) the bank banking guild book is the one for you.

If you looking for something more nitty-gritty details on real world economic systems, then you should look somewhere else because my book would let you down.

Banking Guild covers:
• Currency exchange
• Banks
• Insurance
• Stock Exchange
• Promissory Notes
• Titles
• Bonds

I did exaggerate the influence of things like banks and stock exchanges. I’m guilty as charged. I also thought about a dragon bank – like the one discussed above – but I didn’t have room for it. Maybe someday if I do something like a follow up on a national bank or a stock exchange.

I also wanted to put more Easter Egg-references in it, as well as jokes, but I don’t know many banker jokes or pop-culture references to how funny money is.

As for the roving accountant, I was inspired by an old Farside that features something like “John Smith – Frontier Accountant” and shows an image of this buttoned downed guy in a suit, with a brief case, striking a noble poise out in the woods.

Oh, and all the staff members of the sample bank are named for various currencies.

 

[punkorange]

This is all interesting, I guess I enjoy reading about history. I would like to ask though, what about banking in a futuristic setting? How different would you see currency in d20 future (not using the wealth bonus rules)? I guess my question would almost be where do you see currency in around 500 years?

 

[TerraDave]

There was a debate in the 90's, back when we had a new economy and all the rules where being rewritten, that all money was going to be electronic...don't hear that kind of stuff much anymore.

But two of the basic functions of money: common means of exchange and unit of account will still probably be needed, though instantanous transactions could eliminate the 3rd function, store of value.

There is the star trek approach, where money is eliminated. If the economy became so productive as to eliminate scarcity this may be possible: but this requires everybody having every material thing that they want...in the show they often have to resort to barter, or using de facto currency

 

[Angel Tarragon]

I have long disliked the idea of PCs carrying their money on their trusted mounts. It is rather unwieldy once the coins start to pile up.

The character could purchase precious gems and minerals. It would vastly lighten their load and they could possibly barter with them and end up getting the better end of the deal.

Or you could throw in a Bag of Holding or two in the next pile of magic items they find!