A Distant Mirror: The Calamitous 14th Century

by Barbara W. Tuchman

It held that money was evil, that according to St. Augustine “Business is in itself an evil,” that profit beyond a minimum necessary to support the dealer was avarice, that to make money out of money by charging interest on a loan was the sin of usury, that buying goods wholesale and selling them unchanged at a higher retail price was immoral and condemned by canon law, that, in short, St. Jerome’s dictum was final: “A man who is a merchant can seldom if ever please God” (Homo mercator vix aut numquam potest Deo placere). It followed that banker, merchant, and businessman lived in daily commission of sin and daily contradiction of the moral code centering upon the “just price.” This was based on the principle that a craft should supply each man a livelihood and a fair return to all, but no more. Prices should be set at a “just” level, meaning the value of the labor added to the value of the raw material. To ensure that no one gained an advantage over anyone else, commercial law prohibited innovation in tools or techniques, underselling below a fixed price, working late by artificial light, employing extra apprentices or wife and under-age children, and advertising of wares or praising them to the detriment of others. As restraint of initiative, this was the direct opposite of capitalist enterprise. It was the denial of economic man, and consequently even more routinely violated than the denial of sensual man. No economic activity was more irrepressible than the investment ...