Very Early Debt
February 27, 2008 by Carl Chapman
Filed under Credit 101
History has shown the presence of a slow but strong movement toward helping to reach higher levels of commercial activity. All the steps so far mentioned have had the effect of making trade easier to conduct and have supported increased amounts of trading. Debt, the result of borrowing, is a strong force that supports the growth of business and commerce by giving merchants and buyers easier access to the wealth they need to get things done.But, just like with credit, the idea of the use of debt for commercial growth had to gain acceptance. In the earliest times debt was used primarily for motivation and for control. If farmers were not able to pay the full amount of their seasonal taxes to the lord or the land there would be penalties levied that would be impossible by today’s standards. It was not uncommon for the aggravated lord for the have his way at the reigns with family members of his choice as the lowly debtor looked on or averted his gaze, in deference to his lordship. This was the fair and just penalty for such a crime in the medieval times. I think you can understand that this made the head of the household on these downtrodden farms really strive with all their might to make sure that the season’s harvest reached the necessary goal.
With this kind of history it is not hard to see why credit was met with cautious curiosity by many. After all, it looked to many like a widening chasm come to devour the integrity of family and to further erode the self esteem of the already disenfranchised common classes.
