The Credit Crunch - of 33 AD !!!
Do what thou wilt shall be the whole of the Law.
Just proving that things are the same throughout history -
"Meanwhile a powerful host of accusers fell with sudden fury on the
class which systematically increased its wealth by usury in defiance
of a law passed by Caesar the Dictator defining the terms of lending
money and of holding estates in Italy, a law long obsolete because
the public good is sacrificed to private interest. The curse of usury
was indeed of old standing in Rome and a most frequent cause of sedition
and discord, and it was therefore repressed even in the early days
of a less corrupt morality. First, the Twelve Tables prohibited any
one from exacting more than 10 per cent., when, previously, the rate
had depended on the caprice of the wealthy. Subsequently, by a bill
brought in by the tribunes, interest was reduced to half that amount,
and finally compound interest was wholly forbidden. A check too was
put by several enactments of the people on evasions which, though
continually put down, still, through strange artifices, reappeared.
On this occasion, however, Gracchus, the praetor, to whose jurisdiction
the inquiry had fallen, felt himself compelled by the number of persons
endangered to refer the matter to the Senate. In their dismay the
senators, not one of whom was free from similar guilt, threw themselves
on the emperor's indulgence. He yielded, and a year and six months
were granted, within which every one was to settle his private accounts
conformably to the requirements of the law.
Hence followed a scarcity of money, a great shock being given to all
credit, the current coin too, in consequence of the conviction of
so many persons and the sale of their property, being locked up in
the imperial treasury or the public exchequer. To meet this, the Senate
had directed that every creditor should have two-thirds his capital
secured on estates in Italy. Creditors however were suing for payment
in full, and it was not respectable for persons when sued to break
faith. So, at first, there were clamorous meetings and importunate
entreaties; then noisy applications to the praetor's court. And the
very device intended as a remedy, the sale and purchase of estates,
proved the contrary, as the usurers had hoarded up all their money
for buying land. The facilities for selling were followed by a fall
of prices, and the deeper a man was in debt, the more reluctantly
did he part with his property, and many were utterly ruined. The destruction
of private wealth precipitated the fall of rank and reputation, till
at last the emperor interposed his aid by distributing throughout
the banks a hundred million sesterces, and allowing freedom to borrow
without interest for three years, provided the borrower gave security
to the State in land to double the amount. Credit was thus restored,
and gradually private lenders were found. The purchase too of estates
was not carried out according to the letter of the Senate's decree,
rigour at the outset, as usual with such matters, becoming negligence
in the end." (Tacitus, "Annals", Book VI)
Notice anything familiar?
Love is the law, love under will.
Just proving that things are the same throughout history -
"Meanwhile a powerful host of accusers fell with sudden fury on the
class which systematically increased its wealth by usury in defiance
of a law passed by Caesar the Dictator defining the terms of lending
money and of holding estates in Italy, a law long obsolete because
the public good is sacrificed to private interest. The curse of usury
was indeed of old standing in Rome and a most frequent cause of sedition
and discord, and it was therefore repressed even in the early days
of a less corrupt morality. First, the Twelve Tables prohibited any
one from exacting more than 10 per cent., when, previously, the rate
had depended on the caprice of the wealthy. Subsequently, by a bill
brought in by the tribunes, interest was reduced to half that amount,
and finally compound interest was wholly forbidden. A check too was
put by several enactments of the people on evasions which, though
continually put down, still, through strange artifices, reappeared.
On this occasion, however, Gracchus, the praetor, to whose jurisdiction
the inquiry had fallen, felt himself compelled by the number of persons
endangered to refer the matter to the Senate. In their dismay the
senators, not one of whom was free from similar guilt, threw themselves
on the emperor's indulgence. He yielded, and a year and six months
were granted, within which every one was to settle his private accounts
conformably to the requirements of the law.
Hence followed a scarcity of money, a great shock being given to all
credit, the current coin too, in consequence of the conviction of
so many persons and the sale of their property, being locked up in
the imperial treasury or the public exchequer. To meet this, the Senate
had directed that every creditor should have two-thirds his capital
secured on estates in Italy. Creditors however were suing for payment
in full, and it was not respectable for persons when sued to break
faith. So, at first, there were clamorous meetings and importunate
entreaties; then noisy applications to the praetor's court. And the
very device intended as a remedy, the sale and purchase of estates,
proved the contrary, as the usurers had hoarded up all their money
for buying land. The facilities for selling were followed by a fall
of prices, and the deeper a man was in debt, the more reluctantly
did he part with his property, and many were utterly ruined. The destruction
of private wealth precipitated the fall of rank and reputation, till
at last the emperor interposed his aid by distributing throughout
the banks a hundred million sesterces, and allowing freedom to borrow
without interest for three years, provided the borrower gave security
to the State in land to double the amount. Credit was thus restored,
and gradually private lenders were found. The purchase too of estates
was not carried out according to the letter of the Senate's decree,
rigour at the outset, as usual with such matters, becoming negligence
in the end." (Tacitus, "Annals", Book VI)
Notice anything familiar?
Love is the law, love under will.