Tell Me About Italy, Trade, and Banking During Renaissance and Dark Ages

[Fayredeth]

I'm in the process of creating a region in a world that I would like to pattern off of Italy during the Dark Ages, but I'm not too sure how things were, so telling me about the transition to the Renaissance would be great too. What was traded and how the trade routes were established and run would be good, along with how the banking system was set up. Thank you!

 

[Reprisal]

Well, I'm no expert on Italian Principalities, but if you want to learn about that sort of thing, you might want to check out The Prince by Niccolo Machiavelli if you haven't already... The book shouldn't be more than $15 if you know where to look.

The word when approaching trade back then was mercantilism, or economic warfare. Trade was not seen as mutually beneficial, as it largely is today, but a process where if one side "wins" the other side must therefore "lose." Mercanitilist trade back then was truly a zero-sum game of finite winnings. It was this economic theory that led to the hunt for colonies...

Banking worked much as it did now... Banks would hold your wealth for a small fee and would attempt to make a profit by loaning out the money you have in their bank to other people. Of course, most banks hold a certain amount of your deposited money just in case you decide to come back and take some out... let's say the bank holds 10% of your total deposit. This means that they loan out the other 90% of that money to other people and collect (payments + interest) on that to make a profit. This is, basically, how it works now, but I'm not sure that this is the way it worked back then...

In any event, you may want to consider having the banks start issuing their own bank-notes in the Renaissance. Of course, these notes are to be backed by the gold in their reserves, but sooner or later, at least one principality will realize that backing their reserves with gold is kinda redundant...

Have any questions? Feel free to ask...

 

[CRGreathouse]

http://www.ilt.columbia.edu/publications/machiavelli.html

 

[mmadsen]

The Prince, Dover Thrift Edition

...you might want to check out The Prince by Niccolo Machiavelli if you haven't already... The book shouldn't be more than $15 if you know where to look.

If you want a physical copy, the Dover Thrift Edition is $1.50. It's available at Amazon.

 

[Fayredeth]

Thanks guys, but some more info on how Italy was run during the Dark Ages would be more helpful. I've taken a European history course, but the darned thing starts out at the Renaissance, so I need help going back from there. I'm also looking for a little more detail about trade back then, such as how routes were operated, where the money was had, and what effects it had on a populace. Thanks!

 

[Old One]

It can get pretty complex...

Here are a couple of sites you may want to try for general background:

Italian City-State 1

Italian City State 2

Italian City-State 3

Be aware that there is a huge difference between the Dark Ages/Early Medieval Italian city-state and the more traditional Renaissance era states. Italy's central location in the Mediterranian made it a logical transhipment point for exotic goods coming from Africa (ivory, animals and slaves), the Middle East (salt, spices, special timber, dyes) and the Far East via the "Silk Road" (silk, paper, rugs). This was in addition to ores, livestock, foodstuffs, timber, household goods, etc that flowed from central and northern Europe.

The rise of the Mongols and the fall of the last Crusader stronghold at Acre (1271), cut off much of the goods from the Middle and Far East. Continual conflict with the rising Muslim powers of the Middle East, Asia Minor and North Africa - culminating with the Fall of Constantinople in 1453 and the Fall of Rhodes in 1522. These events were some of the main impetus behind the Age of Exploration, as European powers sought to bypass the Ottoman Empire and other hostile powers by sailing around the Horn of Africa or across the Atlantic.

There are two ways to go in designing trade and conflict. Either make the city-state the basic unit (ie, all citizens place allegience to the city-state first) or the merchant family the basic unit (ie, members of an extended family with commerical interests in a dozen different cities). Historically, Renaissance Italy followed the former model...with Genoa, Pisa, Venice, Verona and a dozen lesser states all vying for supremecy in a sea of shifting alliances.

Hope that helps!

You friendly local history curmudgeon,

~ Old One

 

[MythandLore]

Thanks guys, but some more info on how Italy was run during the Dark Ages would be more helpful. I've taken a European history course, but the darned thing starts out at the Renaissance, so I need help going back from there. I'm also looking for a little more detail about trade back then, such as how routes were operated, where the money was had, and what effects it had on a populace. Thanks!

Trade back then?
Much as you would expect at the time, but don't think Dark Ages (Medieval) think Gothic Age.

How routes were operated?
The roads of the Romans were largely intact for trade, but the routes were less safe, Caravans would need protection when traveling between city states.
City States didn't really have "standing armies" forces of mercenaries were fielded instead, Italy would be famous for it's mercenaries then and for many years to come.
Land trade was also done between many other countries because they were the hub of traffic dividing the west (France, Germany, Spain, etc) and the near east (Byzantine empire, etc)
Remember people in places like Venice (and you don't get much better then Venice) also were very skilled sea traders.
Also a major even that took place was Marco Polo's Journey (which started in Venice) to Far East (China and many other places) in the 1200s, 200 years before the renaissance would begin.

Where the money was had?
Had? had? Huh?
Are you talking about popular goods or where they kept their money?

What effects it had on a populace?
Effects of trade right?
It made the up and coming merchant class, crazy filthy rich, big big big time.
The huge wealth of the merchant class IS what created the renaissance.

 

[MythandLore]

Re: It can get pretty complex...

Darn it Old one your just to fast a typer for me.
Quick thing though.

The rise of the Mongols and the fall of the last Crusader stronghold at Acre (1271), cut off much of the goods from the Middle and Far East.

Remeber Marco Polo did make it to china, he didn't leave china until the 1280ish, no Polo no Pasta.

Continual conflict with the rising Muslim powers of the Middle East, Asia Minor and North Africa - culminating with the Fall of Constantinople in 1453 and the Fall of Rhodes in 1522. These events were some of the main impetus behind the Age of Exploration

The other thing is the mid 1400s is considered the Renaissance.
(This isn't for you old one it's to help him understand the timeline. )

 

[Old One]

Re: Re: It can get pretty complex...

Darn it Old one your just to fast a typer for me.
Quick thing though.


The other thing is the mid 1400s is considered the Renaissance.
(This isn't for you old one it's to help him understand the timeline. )

From a timeline standpoint, there was actually a tremendous amount of trade with the Far East (through numerous middlemen) from ancient times up through the early 1200s. Ghengis Khan (and his progeny) virtually ended all trade through attacks on China and the destruction of many of the cities along the "Silk Road" (such as Khwarizm).

Although members of Marco Polo's family made several trips to the Far East, they were really the exception (also, Marco Polo spent 17 years in prison, where he penned the memoirs of his adventures in China...most of his gaolers thought him mad!).

The concurrent rise of the expansionistic Ottoman Empire, beginning in 1290, contributed to the decline of eastern trade (although trade with Africa continued to be strong and many Middle Eastern goods made their way to Europe via Africa...at a substantail mark-up). The rise of Venice, Genoa and the other Italian city-states mirrored the final death throes of the the Byzantine Empire.

Your comment on the rise of the merchantile class helping to fuel the Renaissance is right on. The Italians replaced the Byzantines as the premier bankers/merchants of the late middle ages and the vast wealth created by the process did much to spur the awakening of the middle class in the late-1300s. It is actually a fascinating period!

~ Old One