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Prison bound? : Merchants, Loan Guarantees, and Reprisals in Medieval Dordrecht (c. 1300)

Zuijderduijn, Jaco LU (2019) In Vierteljahresschrift fur Sozial und Wirtschaftsgeschichte 106(1). p.10-28
Abstract

The article provides empirical evidence on the use of two types of security in medieval finance: conditional hostageship and the community responsibility system. Both exposed guarantors to imprisonment or confiscation. Evidence from Dordrecht shows the former was frequently applied but was not very disruptive. However, the latter community responsibility system did lead to reprisals against merchants. It was used to provide the ruler with loan guarantees: Dordrecht's travelling citizens acted as collateral, and thus played a crucial role in enabling the ruler to create sovereign debt. The city's willingness to provide this financial service for many centuries, while exposing its merchants to reprisals in the process, must be seen in the... (More)

The article provides empirical evidence on the use of two types of security in medieval finance: conditional hostageship and the community responsibility system. Both exposed guarantors to imprisonment or confiscation. Evidence from Dordrecht shows the former was frequently applied but was not very disruptive. However, the latter community responsibility system did lead to reprisals against merchants. It was used to provide the ruler with loan guarantees: Dordrecht's travelling citizens acted as collateral, and thus played a crucial role in enabling the ruler to create sovereign debt. The city's willingness to provide this financial service for many centuries, while exposing its merchants to reprisals in the process, must be seen in the context of Charles Tilly's model of an ongoing exchange where cities provided financial services and rulers compensated them with political and economic privileges.

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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Economic institutions, Finance, Middle Ages, Trade
in
Vierteljahresschrift fur Sozial und Wirtschaftsgeschichte
volume
106
issue
1
pages
19 pages
publisher
Franz Steiner Verlag
external identifiers
  • scopus:85065564645
ISSN
0340-8728
DOI
10.25162/vswg-2019-0002
language
English
LU publication?
yes
id
70b88227-df1d-4955-83af-f812c21d35a1
date added to LUP
2019-05-27 08:46:15
date last changed
2020-01-13 01:54:35
@article{70b88227-df1d-4955-83af-f812c21d35a1,
  abstract     = {<p>The article provides empirical evidence on the use of two types of security in medieval finance: conditional hostageship and the community responsibility system. Both exposed guarantors to imprisonment or confiscation. Evidence from Dordrecht shows the former was frequently applied but was not very disruptive. However, the latter community responsibility system did lead to reprisals against merchants. It was used to provide the ruler with loan guarantees: Dordrecht's travelling citizens acted as collateral, and thus played a crucial role in enabling the ruler to create sovereign debt. The city's willingness to provide this financial service for many centuries, while exposing its merchants to reprisals in the process, must be seen in the context of Charles Tilly's model of an ongoing exchange where cities provided financial services and rulers compensated them with political and economic privileges.</p>},
  author       = {Zuijderduijn, Jaco},
  issn         = {0340-8728},
  language     = {eng},
  number       = {1},
  pages        = {10--28},
  publisher    = {Franz Steiner Verlag},
  series       = {Vierteljahresschrift fur Sozial und Wirtschaftsgeschichte},
  title        = {Prison bound? : Merchants, Loan Guarantees, and Reprisals in Medieval Dordrecht (c. 1300) },
  url          = {http://dx.doi.org/10.25162/vswg-2019-0002},
  doi          = {10.25162/vswg-2019-0002},
  volume       = {106},
  year         = {2019},
}