The Early Modern Period

In the later fifteenth century European money began a period of transformation stimulated by a trio of influences. First, the appearance of coin changed under the impact of artistic developments during the Renaissance. Second, new sources of bullion allowed the money supply to grow, with a range of consequences for prices, denominational systems and monetary use. Third, the European Age of Discovery (from which arose some of the new bullion supplies) opened up almost limitless scope for exploration, investment and exploitation and laid the groundwork for a worldwide economy.

Perhaps one should also add to these the impact of the Protestant Reformation, breaking the Catholic world-view and permitting, as it were, a new 'theology' of money to develop. Not that Protestantism was necessarily more of a friend to old-fashioned 'usury' than the Catholic Church. 'I want no shares! This is speculative money and I will not make this kind of money multiply' was Martin Luther's retort to an offer of shares in a silver mine. But around 1545 Calvin was to be more accommodating, though usury should still not offend against charity: 'God did not forbid all profits so that a man can gain nothing. For what would be the result? We should have to abandon all trade in goods.' Yet in many respects this argument had in practice long been won, and Catholic Genoa was to be as important as Protestant Geneva or Amsterdam in monetary and banking development, while on the other side the Dutch Calvinists inveighed against the evils of money-lending just as vigorously as did their Catholic counterparts.

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