A FREE NATION DEEp·IN DEBT A FREE DEEP THE NATION IN DEBT FINANCIAL OF DEMOCRACY JAMES FARRAR, ROOTS MACDONALD STRAUS AND NEW YORK GIROUX Farrar, Straus and Giroux 19 Union Square West, New York 10003 Copyright © 2003 by James Macdonald All rights reserved Distributed in Canada by Douglas & McIntyre Ltd Printed in the United States of America First edition, 2003 ISBN: 0-374-17143-2 Library of Congress Control Number: 2002114431 Designed by Jonathan D Lippincott www.fsgbooks.com 13579108642 For Mollie, Robbie, and Claire CONTENTS Introduction: THE FINANCIAL ROOTS OF DEMOCRACY TRIBES AND EMPIRES 10 Rags to Riches 10 Barbarians at the Gate 18 The Free Men Fight Back 24 Greeks and Their "Gifts" 31 Civic Debt 36 Kings and Tyrants 42 The Carthaginian Wars 45 Imperium Romanum 51 Breakdown 56 CITIZEN CREDITORS 67 The Return of the City-State 67 La Serenissima 72 La Superba 77 The Monte Comune 81 The Twilight of Repayable Taxes 84 San Giorgio 94 Selfish Citizens 100 SOVEREIGN DEBT 105 Kings and Merchants 105 The Treasure of the Indies 115 Antwerp and Lyons 122 VI I I CONTENTS Serial Bankruptcy 128 Folie des Offices 138 RESISTANCE TO THE HEGEMON The League of Cities 148 Regicide 157 Glorious Revolution 166 148 THE CHIMERA 179 Le Roi Soleil 179 Post-bellum Depression 185 The Chimera 190 The Bubble 205 THE DILEMMA 220 Mopping Up 221 The Ruling Class 227 The Dilemma 239 The Limits of Absolutism 255 Aristocratic Revolution 266 REVOLUTION 272 ANew World 277 The First and Second American Revolutions Enemies of the People 307 The Elephant and the Whale 334 BOURGEOIS CENTURY 347 Pax Britannica 348 The Heyday of Bourgeois Finance 355 Ties of Identity 366 A Nation of Rentiers 377 Greenbacks and 5-20s 384 NATIONS AT ARMS 400 Total War (Part I) 400 The Settlement of Accounts (Part I) 413 Total War (Part II) 435 Totalitarian War 445 The Settlement of Accounts (Part II) 456 289 552 INDEX Duma, Russian, 363 Dumouriez, Charles-Fran~ois du Perier, 318 Du Pont de Nemours, Pierre-Samuel, 268, 270,325,356 Dutch Republic, 103, 153-57, 162-66, 180,184,191,196,227,231-32,23740,249,281, 497nn7, 14; Austria and, 359; Bank of England investments of, 235; currency of, 173; French wars against, 179, 181, 325, 332; interest rates of, 186, 187,248, 272; Law influenced by, 193; league cities of, 168,274, 276; life-annuity loans of, 245; Marx on, 446; per capita GNP of, 153, 494n58; population of, 231, 279, 291, 497n9; taxation in, 154-55, 162, 255, 272; see also Anglo-Dutch finance; Netherlands, rebellion against Spain of East India Company, 153, 175, 177, 186, 226,229 East Indies, 197 Eccles, Marriner, 432n Economist, The, 384, 392, 407, 456, 461, 512n53 Econamiste Frant;ais, 374 Edward I, King of England, 109, 1l0, 124, 158n Edward II, King of England, 109, 110 Edward III, King of England, 108-ll, ll5n Edward IV, King of England, 107, III Edward VI, King of England, 159, 498n23 Egypt, 16, 17, 19, 21, 55; biblical exodus from, 15; Ptolemaic, 23, 54; in Roman Empire, 57; in Sassanian Empire, 63 Electoral College: of Holy Roman Empire, 67-68; of United States, 304 Elizabeth I, Queen of England, 161-63, 173,174,498n27 Ellington, Duke, 436 Emprunts de la Defense Nationale, 410 Engels, Friedrich, 26, 446 England, see Britain English Revolution,S, 164-66, 261, 322 Enlightenment, 4, 41, 184, 308, 332 epidaseis, 38, 47 episphora, 35, 36, 38 Erhardt, Ludwig, 455 Erie Canal, 387 Estates General, 8, 109, ll7, 251, 258, 261,269-70,308,309,356 Etruscans, 19 Eubulus, 35, 39 Exchequer bills, 176, 184, 185, 187, 195, 196, 2ll, 227 Farmers General, 181, 196-98, 258-59, 267,326 Farmers of the Customs, 163, 498n29 Faure, Edgar, 203 Fawkes, Guy, 174 Federalists, 298, 299, 303, 304, 306, 325, 335 Ferdinand II, King of Aragon, ll6, 117 Ferguson, Niall, Ferrara, 74 feudalism, 62-64, 69, 70, 96, 102, 106, 109,140,240,258,263 Fieschi family, 80, 96 Fiji, 16 Fisk, Harvey, 423-24 Five-Year Plans, 448, 458 Florence,S, 72, 75, 81-94, 98, 181, 284, 286, 492n15; citizenship in, 103; currencyof, 74n; East India Company shareholders from, 153; estima (assessment system) of, 81; Habsburgs and, ll6, 123; Medici control of, 101, 104; manti (debt funds) of, 67, 82-86, 8890,92-94,97,102,115,237,242;population of, 70, 492n25; prestanze of, 73; revenues of, 101; revolt of the Ciompi in, 83-84, 275, 276; royal borrowing from bankers of, llO, ll2, 128, 158n Fouche, Joseph, 356 Fouquet, Nicolas, 142, 147 INDEX Fox, Henry, 231, 291 France, 3-4, 119, 135, 148, 153, 162, 163, 179-90,208,289, 371,471,503n24, 520nnll, 12, 521n14; absolutism in, 255-65,274; annuities in, 102,244-48, 5041137; bankruptcies in, 138, 143-47, 170,185,190,250,307,308,327-28, 345, 356, 358; Bourbon, see Bourbon monarchy; Banque de, 223-24, 330, 363; Colbert's reforms in, 180-83; in Crimean War, 382, 396; Dutch Republic and, 156-57, 168, 179-81,235; Genoa and, 94; gold standard in, 365; Grand Parti of, 126-27, 143; Habsburgs and, 150; in Holy Roman Empire, 68; inflation in, 458, 464, 468; invasion of Italy by, 101, 116; Law's scheme in, 115, 179, 190-205,207-9,216-18,221-23, 226,243,5011131; medieval, 59, 62, 73, 107-14; Napoleonic, 328-34, 338-41, 344-45,347-48,352,362,375,388, 509n76; Nazi occupation of, 453, 456, 457, 518n69; Protestantism in, 160; Restoration, 325, 356-57; royal borrowing in, 122-28; sale of offices in, 13843, 497n9; savings deposits in, 380-84, 398; Second Empire, 358, 373-74, 377; Second Republic, 358, 373, 375-76; taxation in, 66,117,134,165,181; Third Republic, 358-59, 374, 382-84; United States and, 303; wars with England,4, 108, 174, 175, 182,267, 279, 281,331,336 (see also specific wars); in World War 1,401,402,407-14,41623,426-29,431-32,514n12,515n19, 516nn33, 34; see also French Revolution franchise, 9, 262n, 278, 356-58, 372, 379, 396, 400; see also suffrage Francis I, King of France, 117, 122-26, 138,243 Francis II, Holy Roman Emperor, 334 Francis Ferdinand, Archduke of Austria, 400 Franco-Prussian War, 359, 375, 378, 426 553 Frank, Tenney, 48 Franklin, Benjamin, 291, 294 Franks, 56,58, 59,61,140,261-63 Fransezi, Musciatto and Albizo ("Mouche" and "Biche") 112, 114 Frederick I (Barbarossa), Holy Roman Emperor, 68- 70, 72, 103, 106, 122 Frederick II, Holy Roman Emperor, 68, 103, 122 Frederick II (the Great), King of Prussia, 239,250,270,347 Frederick of Habsburg, 116 Frederick William I, King of Prussia, 271 Freising, Otto of, 69 French and Indian War, 288 French Revolution, 5, 9, 124, 138, 141, 182,233,306-32,334, 335, 373; chaos of Mississippi scheme compared with, 201,219; Directory and, 325-30, 336; events leading to, 8, 239-55, 260, 26673,276-77, 5071138; militarized power of "the people," in, 401; Price's support for, 341; Reign of Terror during, 316, 318-20,324-26,356; wars triggered by, 347 Frescobaldi family, 110, Ill, 158n Fronde, 146, 181, 182,223 Fugger family, 123, 128, 132, 133, 161 "full-employment" economy, 192,43435 Fundamental Laws (Russia, 1906),363 gages, 139, 141, 146 Galbraith, John Kenneth, 386, 466 Galerius, 60 Gallatin, Albert, 385 Gardes FranQaises, 310 Garland, Judy, 436 Garnier-Pages, Louis-Antoine, 358 Gaudin, Martin-Michel-Charles, 333 Gaul, 55,61, 140,262,263 Gayte, Gerard, 112 Gazette of the United States, 291 Geneva, 124, 184, 245-48,504nn3G 38 554 INDEX Genoa, 73, 77-83,94, 102, 104, 110, 115, 196,239,275,276, 491n6, 494n58; citizenship in, 103, 227; compera (syndicate) system in, 78-79; Habsburgs and, 116, 123, 124, 126,132-33, 136; Law in, 192, 193, 198,204; population of, 70, 493n49; privatization of public life in, 77-78, 141; revenues of, 101; social fragmentation in, 80-81; Venetian rivalry with, 74, 77, 84; see also San Giorgio, Casa de Genoese Chronicles of Caffaro, 71 George I, King of England, 208, 212, 213 George III, King of England, 231, 289-91, 303 George V, King of England, 406 Germanic tribes, 58, 61-62, 261; see also specific tribes German~ 115, 125,262,368,369,383, 464,471, 520n12, 52111,15; decentralization in, 375; gold standard in, 365; Habsburg Spain and, 150; in Holy Roman Empire, 67, 68, 122, 128, 132; Nazi, 432,435-36,441,442,449,451-58; parliamentary control of budget in, 362; Protestants in, 135; reunification of, 68, 366; Weimar, 422, 428, 432, 452; welfare state in, 374; in World War I, 40123,425-29,433,514n12,515nn1~23, 516n33 Gideon, 13, 15 gift exchange, 14-16,24,59 Gilded Age, 378 Giron, Don Fernando, 49711,5 Girondins,318 Gladstone, William, 353, 354, 375, 380, 51211,47 Glorious Revolution, 157, 166-78,230,357 Godolphin, Sydney, 170-71, 175-76, 187 gold, 118, 119,394-95,431-33; in Americas, 118, 386; in ancient world, 23, 32, 57; in China, 120; in Italian city-states, 97; as monetary standard, 240, 365-67, 413, 429-30, 431; parity of sterling and, 349 Goschen, George Joachim, 1st Viscount Goschen, 343n Goths, 56, 58, 61, 270 Grand Peur, 311 Grant, Cary, 436 Grant, Ulysses S., 394-95 Great Britain, see Britain Great Reform Act (Britain, 1832), 352 "Great Society" programs, 467 Greece, ancient, 19,21,22,28,43,46-49, 52, 54, 98, 103, 287; civic debt in, 36-42; currency of, 44, 4511" 51; debt bondage in, 25-26; dislI~bution of surpluses to citizens in, 31-34; democracy in, 29-31, 69, 280, 383; Persian campaigns against, 23; see also specific city-states greenbacks, 388-91, 394 Gresham, Thomas, 114, 161 Gresham's Law, 114,188 Grifi, Ser Piero, 84 Grimaldi family, 77, 80, 96 Grand Parti, 126-27, 143 gross national products (GNPs), 285, 374; of Britain, 186, 187, 191,202,217,219, 235,280,292,340,346,350,351-55, 375,414,428,460; of Dutch Republic, 153, 156, 238, 323, 370; of France, 186, 188,240,242,252,254,323,331,375, 402,414,431,458; of Germany, 375, 402,414,425,426,455; of Italian citystates, 92, 100; of Italy, 393, 458; of Russia, 392; of Soviet Union, 446, 448; of United States, 304-6, 367, 375, 385, 388,389,392,413,442,460,467,470 Guicciardini, Francesco, 237 Guizot, Franyois, 323-24, 358n Gupta Empire, 28, 64 Guy, Thomas, 218 Habsburgs, 119, 122, 123n, 128, 132, 137, 160,274,281,362,370,372; annuities sold by, 130; bankruptcies of, 152; CataIonian resistance to, 148-50; Elizabeth I and, 174; interest rates paid by, 125, 129; Italian city-states and, 116, 126; INDEX Turkish-French alliance against, 127; separatist politics and, 372; see also specific monarchs Hadrian, 55 Hamilton, Alexander, 295, 297, 299-306, 325,363,387,396 Hamilton, Earl J., 118 Hamilton, General James, 367, 368 Hamilton, Robert, 342 Hammurabi, 17,25, 491n88 Han dynasty, 21, 22, 64-65 Hannibal, 47, 49, 50 Hanoverian succession, 228, 231 Hanseatic League, 103 Harappa,17 Hardenberg, Karl August von, 377 Harley, Robert, 176, 178, 208, 212, 228 Harsha, 64 Havenstein, Rudolf, 410-11 Hawaii,16 Hayek, Frederick 456 Heathcote, Gilbert, 226 Hebrews, ancient, see Israelites Helfferich, Karl, 416 Helicarnassus, 38 Hemingway, Ernest, 203 Henry I, King of France, 107 Henry II, King of England, 106 Henry II, King of France, 126, 128, 143, 181 Henry IV, King of France, 143-45 Henry VI, King of England, III Henry VII, King of England, 106, 116, 158,271 Henry VIII, King of England, 158-59, 161, 498n23 Herodotus, 15, 19-21,23, 488n23, 489n61 Hincmar,59 Hindenburg, Field Marshal Paul von, 406 Hindu empires, 24, 28, 64 Hitler, Adolf, 432, 451-54 Hittites, 19,27 Hohenstaufen, 68, 122 Hohenzollerns, 270 Holland, see also Dutch Republic; Netherlands 555 Holtfrerich, Karl-Ludwig, 422-23 Holy Roman Empire, 67 -68, 101, 109, 116,122-23 Homer, 31 Homer, Sydney, 468 Honduras, 371 Hoover, Herbert, 420, 421 House of Representatives, U.S., 385, 387 Howe, Senator Timothy Otis, 390 Huguenots, 184 Hume, David, 237 Hundred Years' War, 108, 110 Huns, 56, 64 Hutcheson, Archibald, 213, 215, 218 Hyksos,19 Ilkhan Empire, 64 Illyria,58 India, 64; ancient, 19,21-23,27-28,31, 44, 53, 103; Moghul emperors of, see Moghul Empire Indians, American, 279, 302 Indo-Europeans, 19 Industrial Revolution, 226, 231, 240, 291, 377,401 inflation, 119,466-68; in China, 120; during French Revolution, 317, 321, 330, 359; during Napoleonic Wars, 306, 340, 343, 349, 360; Soviet, 449-51; during and after World War I, 402, 412-13, 423, 425; during and after World War II, 444-45,459-61,465-66 Inquisition, 155 Institutional Investor, 469 interest rates: in ancient world, 17 -18, 2527,37 -38,48; in Austria, 361, 372; bourgeois finance and, 360-61, 364, 366,369,372,381; in Britain, 187,207, 225,230,236-37,242,339,342,35253, 361, 421, 462, 464; in France, 181, 198,199,203,226,242-50,267,31011,316,357,359,421; in Islamic empires, 120; in Italian city-states, 75-77, 79-80,82-85,87-89,93-94,98-100, 138; in italy, 421; in medieval Europe, 556 INDEX interest rates (cant.) 120-21; on royal borrowing, 111, 112, 129, 137; in Russia, 367, 372; in Soviet Union, 447; in United States, 301-2, 361, 390-92, 395, 462-64; during World War I, 407 -8, 442, 459; during World War II, 442-43, 459-60 Ionians, 19,37 Iran, 19 Ireland, 12n, 372 Isabella I, Queen of Castile, 116, 117, 119 Islamic civilizations, 22, 62-64, 75, 120, 256 Israelites (Hebrews), 1O-1l, 13-16, 19, 20,25,27,32 Italy, 86, 144, 158, 187,393,415,421, 458,464, 492n8, 520nnll, 12; ancient, 19 (see also Roman Empire; Roman Republic); Bank of, 366; city-states of, 8, 69-77,100-104,116,121,141,148, 153-55,165,191,274,280,284,369n, 439, 491n3 (see also Florence; Genoa; Milan; Venice); Germanic tribes in, 58; in Holy Roman Empire, 68; invasions of, 101, 116; merchant bankers of, 109, 112; partitocrazia system in, 96n; reunification of, 366; savings deposits in, 380; in World War I, 401, 402, 409-11, 417; in World War II, 457 Jackson, Andrew, 299n, 385-87, 424 Jacobins, 316, 318, 319, 328, 334, 375, 401,430 Jacobites, 228 Jahan,Shah,256 Jainism,27 James I, King of Aragon, 115n James I, King of England, 163 James II, King of Aragon, 115n James II, King of England, 167, 168, 170, 174-75,291,357 Japan,62,100n,471,520n11;Tokugawa, 131; in World War II, 436, 457; see also Russo-Japanese War Jefferson, Thomas, 292, 299n, 302, 303, 305,306,328,385,398 Jena, Battle of, 333 Jews, 153, 154; ancient, see Israelites; in medieval Europe, 25, 74, 109; Nazi propaganda against, 454; Portuguese, 133, 184., 234 Johannot, Jean, 320-21 John of Nakiu, Bishop, 63 John of Viterbo, 71 Johnson, Andrew, 393-94, 433 Joly de Fleury, Jean-Fran~ois, 239-41, 268 Jones, J H., 416 Joseph, 16 Joshua, 13 Julius Caesar, 52, 53 Junto (leaders of South Sea Company scheme), 209, 217, 218 juras, 123-24, 130-33, 136-37 Justice, Chambre de, 142, 143, 145-47, 180, 188-89 Justinian, 58, 60-61, 63, 68, 491n88 Kalymnos, 41 Kautilya, 24, 43-44 Kendall, Duchess of, 213 Kenya, 16 Kerensky, Aleksandr, 407 Keynes, John Maynard, 285, 321, 423, 428, 433-34,437, 441, 466; compared with Law, 192; compulsory savings idea of, 439-40,461, 517n50; death of, 462; deficit spending advocated by, 434-35; law-of-diminishing-returns theory of, 287,293-94; on plans for postwar Germany, 457; purchasing power of government stocks calculated by, 355; on Soviet inflation, 430; Versailles settlement criticized by, 419-21, 515n23; on war financing, 439, 444 Khrushchev, Nikita, 446, 451n Klotz, Louis-Lucien, 422, 426 Knight, Robert, 209, 213, 223 Korean War, 461, 465 INDEX Krosigk, Count Schwerin von, 455 Kurz, Christofer, 125 Labour Party, British, 429, 431, 519n83 Lacoste, Marquis de, 313 Laet, Joannes de, 256, 257 Lafayette, Marie-Joseph-Paul-Yves-RochGilbert du Motier, Marquis de, 318, 382 Laffitte, house of, 382 laissez-faire economics, 42, 372 Lamoignon, Chretien-Franl(ois de, 268 Lapps, 12 Lavoisier, Antoine-Laurent, 240, 326 Law, Bonar, 407 Law, John, 179, 182, 190-209,217, 224n, 259,260, 501n31; collapse of system of, 221-23,243,282,314,363; Keynes compared with, 192; Mississippi Company scheme of, 194, 196-208,214, 216,218-20,222,223; paper money advocated by, 190-91; private bank established by, 193-95 Law of the Maximum (France, 1793), 318, 320 League of Augsburg, War of, 171 Lee, Robert E., 392 Leffingwell, Robert, 425 Legal Tender Act (U.S.A., 1862),394,395 Leicester, Robert Dudley, 1st Earl of, 157 Lend-Lease Act (U.S.A., 1941),442 Lenin, V I., 381, 415, 430, 446-48 Leo III, Pope, 68 Levites,11 Liberty Loans, 403-4, 407, 409, 417, 421, 424,425,519n82 Licinius, 46 Lincoln, Abraham, 393, 396, 397 liturgies, 33, 35, 38, 47, 48, 440 Livy,48 Lloyd George, David, 376-77, 403, 410, 441 Locke, John, 173,263-64 Lodi, Peace of (1454),87 Lombard League, 70, 103 557 Lombards, 58 Lomenie de Brienne, Etienne-Charles de, 268,270 London Stock Exchange, 173,219,243, 513n70 Louis, Baron Joseph-Dominique, 328, 329, 347,356 Louis XI, King of France, 109, 116, 119 Louis XII, King of France, 119 Louis XIII, King of France, 182 Louis XIV, King of France, 146, 168, 174, 175,180,185-88,198,222,240,243, 252,265 Louis XV, King of France, 187,203,26667,331 Louis XVI, King of France, 4, 251-53, 267-69,310,331 Louis XVIII, King of France, 356 Louisiana Purchase, 303, 385 Louis Napoleon (Napoleon III), 358, 377, 382 Louis Philippe, King of the French, 357, 382 Louvre, 333 Lowndes, William, 173 Loyseau, Charles, 145 Lucca, 87, 110, 138 Ludendorff, General Erich, 404 Luther, Martin, 158 Lydia, 19,21, 22n Lyons Bourse, 124-27, 143, 181,332 Maastricht Treaty (1993), 49 Macaulay, Thomas Babington, 348-49 Macedonia, 37, 39, 52 Macedonian War, 48 Machiavelli, Niccoli'>, 87, 96, 104 Macomb, Alexander, 301 Madison, James, 298-303, 305, 350, 385 Magadhan Empire, 28, 103 Magyars, 56, 58, 67 Mahabharata, 27, 43 Mahavira, 27 Mair, Lucy, 16 558 INDEX Majorian, 61 Malesherbes, Chretien-Guillaume de Lamoignon de, 268 Malet, Jean-Roland, 144 Malthus, Thomas, 349 Marcus Aurelius, 51 Marie-Antoinette, Queen of France, :358n Marius,30 Mark Antony, 53 Marlborough, John Churchill, 1st Duke of, 175-78 Marshall Plan, 423, 458 Martin, Pernette, 247 Marx, Karl, 62, 101,373, 381, 405, 420, 445-46 Mary I, Queen of England and Ireland, 127 Mary of Burgundy, 115 Massachusetts, 296, 297, 300; colonial, 278,281,287-89,292 Maupeou, Rene-Nicolas de, 251, 266-68 Maurepas, Jean-Frederic Phelypeaux, Comte de, 267 MaUI)'a, Chandragupta, 55 Mauryan Empire, 21, 22, 28, 43-44, 55 Mauss, MarceL 14, 24, 33 Maximilian I, Holy Roman Emperor, 115, 116,122-23 Mazarin, Jules, 146, 147,255 McAdoo, William, 409 McCulloch, John Ramsay, 342, 351 McKinley, William, 366 Medes, 15-16, 19,21 Medici family, 104, 126 Medicis, Catherine de, 143 Megasthenes, 22, 488n20 Melanesia, 16 Melos, 40-41 Mende, 37-38 Merovingian kings, 59 Merton, Robert, 436 Mesopotamia, 13, 16-17,20, 487n6, 491n88 Methodism, 429 Metternich, Klemens von, 362 Mexican War, 424 Mexico, 118, 132 Michelangelo, 101 Middle Ages, 95, 115-17, 127n, 137, 149, 255,270, 365n, 414, 492n14; ban on lending interest during, 74-75, 120; currency manipulation during, 113-14, 123; Italian republics of, 69-77, 121, 153, 165, 280, 284, 439, 491113 (see also Florence; Genoa; Milan; Venice); papacy during, 101; royal borrowing during, 105, 109-13,119,121,134; taxes during, 106-10; unpaid military service during, 140 Midianites, 10, 11,20,31 Milan, 70-72, 77,86,94, 116 Miletus, 37, 39, 102, 245, 492n22 Ming dynasty, 120, 131 Minoa, 17 Mirabeau, Honore-Gabriel Riqueti, Comte de, 220, 221,272,273,275, 293, 311, 331 Mississippi Company, 194, 196-208,214, 216,218-20,222,223 Mocenigo, Tomaso, 86 Moghul Empire, 22, 64, 131,256 Mohenjo-daro, 17 Mollien, Frangois-Nicolas, 333 Monaco, 77 Maniteur, 382 manti (public debt funds), 74, 86, 102, 237; Monte Comune, 82, 86, 88-90, 104, 242; Monte delle Doti, 88-90; Monte Novissimo, 93, 94; Monte Nuovo, 93-94, 99; Monte di Sussidio, 93, 94; Monte Uno Due, 82-83; Monte Uno Tre, 83, 84; Monte Vecchio, 87-88, 93, 104, 242,463 Montesquieu, Charles de Secondat, Baron de La Brede et de, 255, 256, 261, 263, 270,272-75,293,311,315,371-72 Montesquiou-Fezensac, Abbe Fran90isXavier-Mare-Antoine de, 314, 322 Montgolfier, Joseph-Michel, 240 Morgenthau, Henry, 440 INDEX Morris, Robert, 294-96 mortgages, 161,282-83,377 Moses, 10, 11, 13-15 Murphy, Henry, 438-41, 443 Muslims, see Islamic civilizations Mussolini, Benito, 405, 435 Mycenae, 17 Nanda Empire, 28 Nantes, Edict of, 174, 184 Naples, Kingdom of, 110, 115, 122, 132 Napoleon, Emperor of the French, 107, 180,223,328-34,338,344-45,34748,356,358,362,375,388,401,410, 453 Napoleon III, Emperor of the French, see Louis Napoleon Napoleonic Wars, 9, 161n, 234, 332, 33839, 344,347,348, 351-52, 389, 400n, 402, 425, 508n70; Austria in, 365; aftermath of, 359, 363, 378-79, 393, 414, 429; easy-money policy during, 339-41; expansion of ownership of public debt during, 227, 351; inflation during, 306, 355; Russia in, 367; taxation during, 338 Nathan, Ouo, 455 National Assembly, French, 220, 272, 30717,325-26,357,374,376 National Bank Act (U,S.A., 1863), 391, 511n26 National Bureau of Economic Research, U.S., 438, 455 National Convention, French (1792-95), 316,318-19,326-27,329,330,332, 507n42,45 47 National Resources Planning Board, U.S., 461 Navarre, Kingdom of, 286 Necker, Jacques, 251, 253, 268, 270, 307, 310-14,316,319,325,356 Neolithic era, 487n6 Nero, 51 Netherlands, 4, 68, 102, 103, 115, 122, 125,127,132,135,277,362,367,368, 559 370, 392, 459; Austrian, 332; Bank of, 363; gold standard in, 365; Nazi occupation of, 453, 456, 457; Protestantism in, 160; rebellion against Spain of, 133-35, 149-56,161,230,261,289,293,322, 340; United Provinces of, see Dutch Republic New Deal, 461 New Economic Policy (NEP, USSR), 448 New Model Army, 165, 166 Newsweek, 467 Newton, Isaac, 173,218 New York, 296; colonial, 282, 288 New York Times, 461, 466 Nicholas II, Czar of Russia, 363, 405 Normans, 56, 68 Norsemen, 58, 67 North, Lord (Frederick North, 2nd Earl of Guilford), 231 North Carolina, 296 Norwa~368-69,453 Nuer people, 12, 13 offices, venal, 138-42, 181-82, 185,260, 261,314 oligarchy, 29, 36, 168, 290-91, 383, 393, 489n61 Olivares, Gaspar de Guzman y Pimental, Count of, 149 Olynthus, 37, 38 Orchomenus, 39 Oreos,37 Orleans, Louis-Philippe-Joseph, Duc d' (Philippe-Egalite),269 Orleans, Philippe II, Duc d', 187 Orthodox Church, Russian, 406-7 Ostrogoths, 58, 61 Otto I, Holy Roman Emperor, 67 Ottoman Empire, 22, 64, 94, 99, 115-17, 127,131,255,256,368 Ouvrard, Gabriel-Julien, 329, 332-33 Paine, Thomas, 334-36, 344 Panhellenion, 55, 103 560 INDEX papacy, see Catholicism Papal States, 71 paper money, 118, 191, 192,335,364; Austrian, 359-60, 365; British, 172-73, 339-40, 343, 344, 34,9; Chinese, 120; colonial American, 281-89, 293; of Continental Congress, 293-94, 296-97, 299,319; French, 184-85, 188-90, 192, 194-96,202-4,401 (see also assignats); Genoese, 98-99; German, 422-23: Soviet, 450; Swedish, 248 249; in United States, 386-91, 394; during World War I, 413 Paris Bourse, 126, 325 Paris Commune, 359 Paris de Montmartel, Jean, 196, 198 Paris Duverney, Joseph, 196, 198, 221, 223 Parlements, French, 260, 262-63, 266-69, 272, 309, 334 Parliament, British, 158, 173, 228, 231, 277.322,363,393; American colonies and, 288, 290, 293; and bourgeois finance, 350-53, 51On13; Bullion Committee of, 339, 343, 349; Long, 164-66, 281; in Middle Ages, 107, 109, ll5n; plot to blow up, 174; Rollits Committee report to, 381; and South Sea Bubble, 208-10,212-14; Stuarts and, 160, 163, 167 -68,266; Tudors and, 159, 160, 162; William III and, 157, 168, 172 Patala,28 Pavia, Battle of, ll6, 126 Peisistratus, 29, 33 Peloponnesian War, 35, 36, 41, 46, 376, 489n36 Pendleton, George, 513n68 Penn, William, 278 Pennsylvania, 296, 299; colonial, 278, 288 Perdiccas, 43 Periander, 29 Pericles, 30, 34, 375 Persian Empire, 6, 19-21,23-24,28-29, 33,36,43,52,103,488n23,489n61, 491n88 Peru, ll8, 132 Peruzzi family, 81, llO, III Peterloo Massacre, 350, 393 Philip II, King of Macedon, 37, 43 Philip II, King of Spain, 127-31, 134, 149, 151,157,164,177,261,289 Philip III, King of Spain, 129, 130, 135 Philip IV, King of France, ll2 Philip IV, King of Spain, 129, 130, 132 Philip V, King of France, 112, 495n15 Philistines, 14-15, 19 Phoenicia, 28-29, 31 Physiocrats, 264-65 Piedmont, Kingdom of, 362 Pinto, Isaac, 234-35 Piraeus, 36 Pisa,70 Pitres, Edict of (A.D 864), 59 Pitt, William, 231, 335-37, 339, 341-43, 410 Plato, 42 Pliny (the Elder), 49 Plutarch, 41 Poincare, Raymond, 427 Poland, 262, 453, 457 Polybius,28 Polynesia, 16 Pontchartrain, Louis Phelypeaux, Comte de, 182 Portugal, 262, 339, 369 potlatch, 24 Pressburg, Peace of (1805), 333 prestanze, 73, 284 prestiti, 73, 74, 76, 77, 86, 284 Price, Richard, 290, 292, 295, 341-43 property rights, 263-65, 328, 334; suffrage and, 280, 372 Protestantism, 135, 143, 155, 160, 174, 184, 196,224n,229, 265, 277-78, 332 Providence Gazette, 295 Prussia, 239, 270-71, 329 333, 347, 362, 377; see also Franco-Prussian War Public Credit Act (U.S.A., 1870), 395 Punic Wars, 28, 45-49, 51, 78, 404 Puritanism, 174,229 Purveyors, Statute of (1352), 115 INDEX Quebec Conference (Sept 1944),457 Quevedo, Francisco Gomez de, 132-33 Ramel de Nogaret, Jacques, 315 Ramsay, David, 294 Rashid, Harun ai, 63 Reagan, Ronald, 470 Reform Act, British (1832), 228 Reformation, 101, 116, 159, 174 Rehoboam, King, 27 Reichsbank, 410, 411, 455 Reichstag, 425 Renaissance, 74n, 75, 107, 123, 137, 140, 168,255,388 renten, 150-51, 156, 160; losrenten, 102, 152 rentes, 112, 124, 138-39, 141, 143, 145, 147, 180-82, 185, 188-89, 194, 198, 222,242-44,250,251,260,312,32728,356-59,364,377,380,382-83, 410,411-12,413, 500n7, 11; rentes perpetuelles, 102, 194,243,250,251, 503n26 reparations, 417 -23, 426-28, 432, 453 Republican Party, U.S., 366, 513n68; Jeffersonian, 299, 303-6 Requesens, Don Luis de, 133-34 Reveillon riots (1789), 310 Revolution of 1830,357,382 Revolution of 1848 357, 362, 365, 36970,373,381-84 Rhineland, 494n59 Rhode Island, colonial, 287, 288 Ricardo, David, 343, 349-51, 509n4 Riccardi family, 110, 124, 494n9 Richelieu, Cardinal (Armand-Jean du Plessis), 146-47, 149 Ridolfis, Laurentius di, 492n15 Rienzo, Cola di, 334 Riley, James, 250 Rivarol, Antoine de, 307 Robespierre, Maximilien-Fran~ois-Marie Isidore de, 318 Robinson, Joan, 5I9n83 Roche, Jules, 376 561 Rockingham, Charles Watson-Wentworth, 2nd Marquis of, 231 Rocroi, Battle of, 156 Roman Catholic Church, see Catholicism Roman Empire, 8,51-57,60,62-64.67, 105 136, 140, 177, 262, 263, 490n69, 491n88 Romanovs, 370; see also names of specific monarchs Roman Republic, 4n, 5, 26, 44-52, 61, 69, 70, 71, 76, 78, 260, 262,313, 492n14 Romantic movement, 334n Rome, 28-31, 74, 103, 120, 334n, 405 Roosevelt, Franklin, 432, 440 442, 456 Rose, George, 379 Rothschild, house of, 357, 376, 380 Rothschild, Nathan, 377, 473 Royal Exchange (London), 161, 200, 217 Russia, 248, 344, 360-68, 372, 381, 392, 395, 513n70; communist, see Soviet Union; gold standard in, 365-66; State Bank of, 363, 366; in World War I, 401, 402,405-7,409-11,416,417 Russo-Japanese War, 362, 367 Russo-Turkish War ofl877 -78, 513n70 Rwanda, 16 Ryswick, Treaty of (1697), 175 Safavid Empire, 64 St Bartholomew's Eve Massacre, 160 Saint-Simon, Louis de Rouvroy, Duc de, 185-86,192-93,203,227 Salomon Brothers, 468 Samuel, 13-15,27 Samuelson, Robert, 467 San Giorgio, Casa di, 95-100, 132, 133n, 142,172,192,193,198,204,227,232, 259, 356, 493nn49, 51,494n58 Sardinia, 115 Sargon of Akkad, 487n5 Sassanian Empire, 63 Saul, King, 19 savings banks, 379-81 Savings Bonds, U.S., 441, 443, 463-64, 471,472,519n82 562 INDEX Saxons, 56 Saxony, 97 Say, Leon, 374 Scipio, 47 Scotland, 163 Scythians, 56, 60 Seljuk Empire, 63, 64 Semblan~ay, Jacques de, 126, 142-43 Senate: Florentine, 93; Roman, 4n, 45, 51, 57,68,69; Venetian, 80; United States, 385 September 11 terrorist attacks, 472 Septimius Severus, 55, 490n67 Settlement, Act of (England, 1701), 169 Seven Years' War, 231, 234, 235, 237, 246, 248, 268, 288,289, 400n Seymour, Horatio, 513n68 Sforza, Francesco, 87 Shays, Daniel, 297 Sherman,John,388-89,394,513nn6~ 68 Sicily, 68, 115, 122, 132 Siena, 70, 87, 102-3 Sieyes, Emmanuel-Joseph, 308-10, 326 silver, 365; American, 118-21, 125, 13233, 135, 200, 366; in ancient world, 32, 50,57; in China, 120; in Dark Ages, 66; Habsburg, 123n; in Italian city-states, 97,98 Sinatra, Frank, 436 sinking funds, 84, 86, 90, 98,100,341-43 Sixtus IV, Pope, 139 slavery, 20, 24-26, 29, 54, 207, 273, 280, 291; abolition of, 354 Slichter, Sumner H., 466 Smith, Adam, 42, 49-50, 237-38, 244, 253,290 Smith, John, 379 Smith, Kate, 436-37 Snowden, Phillip, 429-30 Snyder, John, 463 Social Security system (U.S.A.), 440, 520n5 Solomon, King, 10, 19,27,43 Solon, 26, 29, 30, 31 Sophists, 41 South Africa, 118, 440 South Sea Company, 178, 186, 187, 194, 198,206-19,223-29,302 Soviet Union, 430-31, 441, 445-52, 458; collapse of, 241; in World War 11,435, 449-50, 453n, 454, 457, 458 Spain, 142, 160, 163,169, 172, 180,248, 255, 368, 498n25; American colonies of, 117-19,121,122,132,207,280,352, 365n, 369; bankruptcies of, 100, 12838,143,154,170,177,370; Dutch rebellion against, 133-35, 149-56, 161, 230, 261, 289, 293, 322, 340; Habsburg, 122,123,127-30,132,137,148-50, 152, 274, 370; invasion of Italy by, 101; medieval, 107; selling of public offices in, 140-41; in Thirty Years' War, 184; unification of, 115, 116; wars with France, 143, 145, 179,332,339 Spanish Succession, War of, 175, 182 Sparta, 21, 28,30,36-37 Spaulding, Representative Elbridge Gerry, 390 Spinola family, 80, 96, 132, 133 Stalin, Joseph, 447, 448, 450, 457 Stanuell, C A., 383-84 States General, Netherlands, 150-51; and Dutch Republic, 152 Stoics, 41 Strong, Benjamin, 424 Stuart, Charles Edward ("Bonnie Prince Charlie"), 234 Stuart, James Edward ("Old Pretender"), 175,208 Stuart monarchy, 160, 163, 169, 170, 231, 236, 252, 253; see also specific monarchs suffrage, 280, 372; universal male, 37274,376-78,381,383,385 Sui dynasty, 65 Sukra,24 Suleiman the Magnificent, 115, 131 Sully, Maximilien de Bethune, Duc de, 143, 144, 146 Sumerians, 13, 17 Sunderland, Charles Spencer, 3rd Earl of, 209,213 Sung dynasty, 120, 172n INDEX Supreme Court, U.S., 433 Sweden, 172,248,249,262,282,360, 365,368 Swift, Jonathan, 169, 177 Switzerland, 68, 365, 369 Sword Blade Bank, 208, 209, 214, 217, 218,224,226 Syracuse, 44, 45 Syria,63n Talleyrand-Perigord, Charles-Maurice de, 313,356 Tang dynasty, 65, 67 taxation, 13,272-76,371-72,471; and American Revolution, 277, 290, 292, 294; in ancient world, 16-17,20-23, 27,32-33,35,44,46,54-57; in Britain, 162, 165-66, 171, 229-30, 233,254,336-38,340,353,376,401, 437 -39, 461; in China, 64-65; in Dark Ages, 60-62, 65-66, 68; in Dutch Republic, 154, 155, 238-39, 255, 276; in France, 201, 252-54, 259-61, 264-65, 268,271-73,329-31,333,338,345, 347,376,401, 409 (see also Farmers General); and French Revolution, 3078,311-16,321-23,330; in Habsburg empire, 134-35, 137, 149, 150, 15455; in Italian city-states, 72-74, 76, 7881,83-94,97,98,104,232,275,276; in medieval Europe, 102, 106-10; in Moghul Empire, 256; in Nazi Germany, 454; in Prussia, 270; in United States, 297,300,305,389-90,401,409,437 Taylor, John, 302 Templars, Order of, 112 Temple, William, 156 Tenedos,37 Terray, Joseph-Marie, 251, 266-68 Terrorism, War on, 472 Test Act (England, 1673), 228 Texas, Republic of, 367, 368 Themistocles, 32 Theodora, Empress (widow of Theophilus), 491n82 563 Theodosius II, 57 Theunis, George, 419 Thirty Years' War, 100, 149, 153, 182, 184, 281 Thucydides, 40 Tiberius, 55, 257, 490n67 TIrrws of London, 337-38 Tokugawa shoguns, 131 Tonga, 16 Tories, 169, 173-78, 181,208-9,224, 228,230,231,298,304 treasuries, 119, 131; ancient, 19,23-24, 33-35, 43, 52-53, 55; in Dark Ages, 61; of Islamic empires, 256; Prussian, 347; of Tudor England, 158 Treasury, U.S., 400; notes issued by, 397, 398 Trente Demoiselles de Geneve (Thirty Geneva Maidens), 245, 247, 504nn38, 39 tributum, 46, 48, 51, 54 Triennial Act (England): of 1641, 166; of 1694,228 Trustee Savings Banks (Britain), 379-80 Tudor monarchy, 114n, 127, 159, 160,231; see also specific monarchs Turgot, Anne-Robert-Jacques, 264 Turkey, 19; see also Ottoman Empire Tutsi kingdoms, 16 Twelve Tables, 26 Tytler, Alexander, 468 Uganda, 16 United Kingdom, see Britain United States, 298-306, 334, 361, 36364,371,384-99,462-64,466-72, 513n70, 519n81, 520nnG 11-13, 521n15; accumulation of domestic capital in, 370; Bank of, 302, 304-5, 330, 385-87,424, 511n26; Civil War in, see Civil War, American; default in Southern and Western regions of, 368, 369n; during Depression of 1930s, 432-33; economic predominance of, 352; Federal Reserve system of, 364, 396, 424, 432, 462-63,466, 518n78; gold standard in, 564 I:\TDEX United States (cant.) 365, 366; Revolutionary War debt of, 325, 350; savings banks in, 380; separatism in, 372; in World War I, 403-4, 406-9,413-14,416-18,420-26,428, 429,431,432; in World War II, 436-43, 445,450,454-62,467,514nnll,12, 517n46,518n7~519nn82,84 Valois dynasty, 143 Vauban, Sebastien Le Prestre de, 259, 260 Veii,46-47 Venice, 72-74, 79-80,82-84,94,98,99, 148,231,232,299-300; budget of, 109; citizenship in, 103, 104; East India Company investments of, 153; Law in, 192; money markets and, 125; manti (debt funds) of, 74, 82, 85-87, 91-94, 97, 102, llS, 242, 394n, 463; population of, 70, 155; prestiti of, 73-74, 76-77, 284; and Spanish control of Italy, 101, 116; tax rates in, 134, 140 Verdi, Giuseppe, 79 Verona, 86 Versailles, Treaty of (1919),417 -20,457, 515n23 Vienna: Bank of, 359, 363; Congress of, 359 Vietnam War, 466, 467, 470 Vikings, 56, 59, 62 Virginia, 301; colonial, 278 Visconti, Filippo Maria, 87 Visconti, Giangaleazzo, 86 Visigoths, 58 Vivaldi, Francesco, 98 Voltaire, 270 Vrijji, 27, 103 Wagner, Adolf, 374, 375 Wagner, Richard, 334n Wagram, Battle of (1809), 333 Walpole, Robert, 169, 187,208,209,213, 218,223,224,227-29,231,237,290, 291, 303, 342,503n27 Walter of Brienne, 82 Wang Mang, 53, 490n63 Warburg, Max, 416, 422 war loans, 403-12, 423-27, 431-32, 435-37,440-43,449,451-52,46061,464,468-69,472,514n4,nll, 518n82; see also bond drives War of 1812, 303-5,385, 424 War Savings Certificates, British, 407, 443, 519n82 Washington, George, 302 Washington Post, 466 Waterloo, Battle of, 354 Wellington, Arthur Wellesley, 1st Duke of, 339 Westphalia, Treaty of (1648), 156, 157 Whigs, 169, 173, 175-78, 208, 209, 224, 228,230,231,289,290,303 Wilberforce, William, 335, 341 Wilhelm II, Kaiser of Germany, 405-6 Wilkeson, S., 513n74 William I (William the Silent), Prince of Orange, 151 William III, King of England (William of Orange), 157, 168-71, 172,175,228, 357 Williams, William, 167 Wilson, Woodrow, 403-4,417,451 Witenagemot, 59 Witt, Johann de, 152, 157, 446 World War 1,9, 161n, 240, 354, 400-417, 437-43,445,451,454,459,460,473, 518n77, 519n82, 520n13; aftermath of, 420-35; outbreak of, 359, 372, 400 World War II, 9, 126, 423, 424n, 435-45, 449-50,453-62,465,467-70,472, 518n77,519n82,521n13 Wiirttemberg, Counts of, 494n59 Yalta Conference, 457 Young, Ralph, 455-56 Young Plan (1929), 420, 421, 423 Zeno of Citium, 41 ... 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