tag:blogger.com,1999:blog-2456802468539868519.post6633222408757710681..comments2023-10-12T02:21:40.102-07:00Comments on English Historical Fiction Authors: The Knights Templar - Banking and SecrecyDebra Brownhttp://www.blogger.com/profile/03256313302199653185noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2456802468539868519.post-33651125547874867232019-01-12T06:37:46.387-08:002019-01-12T06:37:46.387-08:00Well written and factual.Well written and factual.Poetslifehttps://www.blogger.com/profile/05967137681621055985noreply@blogger.comtag:blogger.com,1999:blog-2456802468539868519.post-82063923748798115762015-11-21T16:17:12.498-08:002015-11-21T16:17:12.498-08:00THE TEMPLARS:
ORIGINS OF MODERN BANKING
Since the ...THE TEMPLARS:<br />ORIGINS OF MODERN BANKING<br />Since the foundation of the rank of the Templars c.1118, its main goal was to defend the pilgrims in their journey to the “Holy Land” and the Holy Sepulcher. The Templars, also known as the knights of Solomon’s Temple, were an elite of extraordinarily trained knights as well as monks; they were the ‘Milites Christi’ directly commanded by the Pope and became the proud of the Christian crusaders for their military skills and their complete devotion to God. However, the Templars also came to perform a further fundamental role: they became a key for international trading activities, as well as the protectors of states’ treasures and as money lenders. For example, they also lent money to Jean de Joinville, the Great Chronicle of Medieval France, in order to liberate the King of France Louis IX in 1250. However, how did this organization manage to become so economically powerful?<br />As the knight’s temples were seen as the best place to store money, valuable goods and king’s treasures, one source of richness came from the amount of valuables the Templars had under control. When they reached the peak of their economic influence, the knights could count up to 9000 “capitanerie,” coffers similar to modern banks: they were indeed referred to as the “western world coffer.” The knights then started lending part of the money to pilgrims who were willing to go to Jerusalem, or even to different abbeys, which were in difficulties, and in turn, earn interest. Kings would also either borrow or deposit money in the different “capitanerie” when they were leaving for the Holy Land. The Templars were key for trading activities between Western Europe and the Middle East by providing facilitating transactions between money and goods. While the former needed money, the latter needed goods, such as the different types of metals. The knights then supported this exchange system and would make profits via a small commission that was placed on each exchange.<br />In order then to trade, lend and deposit money and goods, the Templars invented credit letters. Similar to the modern traveller’s cheque, it was what allowed merchants to travel without the risk of being robbed or the issue of having to carry heavy metal coins: there was indeed no need to carry physical money any further. One single letter would allow its owner to receive the written sum in any “capitaneria” of the Templars- it could be in France, England or Jerusalem etc. Clients came to have a proper current account in which they could withdraw money, make payments and would receive a statement of account three times a year. This system revealed to be particularly useful after Jerusalem was lost along with the Christian oversees dominions, with the most complex exportation of goods from the Middle East to the Western world. Wealth was transferred on behalf of noble families, merchants and religious groups via the use of credit letters. A deep understanding of how the ancient world functioned is therefore a key to fully comprehend modern economies and their roots. <br />Anonymoushttps://www.blogger.com/profile/07312855419228806336noreply@blogger.com