Money changer

Money changer is a with the advent of coins from ancient times known sales occupation. As the name implies, replaces the provider paid to foreign currency in local or state common money. In industrialized countries now do bureaux de change and money-changing machines such transactions with customers. The development of the moneychangers is closely connected to the coin and history. A bloom time is known in the Middle Ages. It is generally assumed that the origins of modern financial institutions are in this commercial activity.

• 2.1 antiquity 2.1.1 Greece
• 2.1.2 Roman Empire
• 2.1.3 Jerusalem

• 2.2.1 Upper Italy and France
• 2.2.2 Holy Roman Empire
• 2.2.3 Religious influences and financial flows
• 2.2.4 Gresham's Law

Business transactions

The practice of business as required earlier today means the holding of both various popular types of coins for the customers as well as, where appropriate, in gold or silver bullion. The main business of the changer was and is in the Convert of courses, combined with the subsequent counting of money used to accept in his or the handing out of his inventory.

Knowledge and skills

The money changers in historical times needed an excellent knowledge of the purity of gold and silver coins and the authenticity of the pieces. To this end several years of experience was required to decide immediately when changing business via its making can. Ideally sufficed in earlier times his appearances, but if necessary he had to take help of a scale. Mental arithmetic was asked if he had a currency in the pieces of another convert, as many currencies did not yet have a decimal system.

A money changer also had to be familiar with a simple bookkeeping. A key task was the accepting of deposits arrival merchants' families for the duration of the stay at trade shows. The contribution was recorded in the books of the money changer and decreased by purchases of goods caused to the seller as a deposit. At the end of depositors received only the balance of the entries made ​​for him in currency back.

The activity of business books business expanded as money changers both went over to lend as well as " bills of exchange " anfertigten to business associates in other regions.

Equipment

Originally presented for a simple business operating from a table on which the merchant placed his coin types. All transactions were conducted in the open. Later emerged with the advent of solid guilds places where several money changers were to be found, and finally as a separate business area, the currency exchange. Your facility was initially sparse, as is evident from a report on Jakob Meyer zum Rabbit's currency exchange in 1503: a changing table, pens and another table. The area eventually became the epitome of the currency exchange industry par excellence. In the buildings of the merchant fire and burglar-proof vault offered protection against hazards.

Money changers, who were no longer able to make payments, was in Italy the table smash ( " banca rotta " ) to which the word reminds eingedeutschte bankruptcy.

Dubious business practices

About Methods black sheep among the money changers in the Libellus Sancti Jacobi, a font from the 12th century, reported. As dishonest activities are described for example

• The use of two different scales for the purchase and sale
• Expensive selling its own coins, buying cheaper money from customers
• Contest the authenticity offered him gold or silver coins
• Pruning of larger coins
• Heavier coins to the customer to sell as valuable.

History

Antiquity

Greece

The money exchange was in Hellenism as the banking system altogether in the hands of the state. In ancient Greece, banks served next to the money exchange for temporary safe storage of cash, as well as for convenient and free delivery of coins to foreign courts. The name and the business operations of the Athenian banking institutions have been handed down through various judicial speeches of Isocrates and Demosthenes.

Travelers or merchants who wanted to pay in a foreign land acquired goods or services were faced with the situation to trade their own money, entrained to a locally approved method of payment. This demand breastfeeding money changer. They appreciated each offered a coin, wear and tear, damage and authenticity and gave in return local money.

Many Greek cities produced their own money and used different images for the coins, such as resplendent as a feature of Athenian origin, the owl on their coins. All coins of antiquity are embossed by hand and not same each other seamlessly. In Athens with its trade relations to all parts of Greece, Asia Minor and the Orient money changers were concerned with coins of different countries and cities. Money has already changed in the port of Piraeus. Derived from the shape of their money tables, changer Trapezitae were called.

As early as the 4th century BC found by scientific opinion, a transition from the changer, which focused on coin validation and Currency Exchange, for banker - the not yet is naturally comparable to a present - instead. The latter now also accepted deposits. In the 2nd century BC there were already lending money at interest and advances from the bankers to customers at auctions.

Roman Empire

As nummularius validation mechanisms were called, but the term was also used for money-changers. In the first century they were street vendors with a hawker's tray clattered on the coins to attract customers. They exchanged older coins to the material value against new money. In the 2nd century AD, the traders went on to credit and devotion to the taking of deposits. Money changers and money lenders had in the Roman Forum in Rome shops. The money changers examined whether the coin was actually made ​​of gold or silver, the portrait of a ruler was, who was allowed to entertain a mint, mint mark and stayed on controlled size and weight. The business practices of the moneychangers was monitored by the Urban Prefect. The forum was used as the job title of the changer also argentarii.

The business of the changer seems to have been profitable, but they established together with ox dealers in the year 204 the Emperor Septimius Severus and his family in honor of an arc to be seen today at the Church of San Giorgio in Velabro Arco degli Argentari.

In the year 260 money changers refused in Egypt in Oxyrhynchus - Gau to accept reduced in fineness and weight of Roman coins, and closed their Changer tables. By threat of punishment they were then forced to offer their services again in the future and to change all the coins except misstrike or counterfeit money in other places.

Prove sarcophagus inscriptions from Korykos in Cilicia that there were money changers there. In late antiquity, they exerted an important role in the economic life in a city.

Jerusalem

Of all the four Christian evangelists money changers are mentioned in a biblical narrative. Jesus of Nazareth, threw their tradition in the New Testament in the cleansing of the temple in Jerusalem, the change tables to and drove the money-changers together with the merchants of sacrificial animals with a whip of the sacred building.

Money changers were to be found in the temple area, because the pilgrims from different countries or regions of the country with its domestic currency got there. Your money now had to be changed in the " shekel of the sanctuary ," the only authorized currency in the temple, could be purchased with the sacrificial animals. In addition, the Jews were able to pay the temple tax at the money changers that could be also, in return for only this temple currency, an embossed in silver tetradrachm of Tyre. Other currencies, such as Roman copper coins were considered unclean and were not accepted. The money changers were staff of the temple.

Middle Ages

The need for exchange of coins, there was unbroken throughout the centuries. So 922 money changers were active in the area of the Volga Bulgars in the year, as is apparent from a travel report. In Palermo, money changers are found in the 10th century. From the history of Bremen is known that Archbishop Adaldag established a currency exchange in the year 966.

Northern Italy and France

The exchange came in the Middle Ages in the West, first in Italy to new heights, where the enormous number of individual Münzherrschaften, the imperfect expression of coins, frequent changes in the monetary standard and counterfeit coins kept him great feed. In the northern Italian cities of Genoa, Milan or Venice and elsewhere to exchange money changers sat at tables and offered the Münzumtausch. Italians, in large numbers Lombards, it, in addition to the Jews of business in most other European countries introduced in the 12th century and maintained were there.

In Perugia, the " Collegio del Cambio " recalls the former residence of the money changers. With time, money banks were in normal usage rather than money tables.

The city of Cahors was the headquarters of the southern French money changers at this time. On the one hand this was due to their position as a trading town on the Camino where pilgrims umtauschten money to provide themselves can. On the other hand, the Bishop had to borrow because of the Albigensian Crusade, and its creditors from the Piedmont and Lombardy had settled on the spot. The merchants then knüpften more connections to other trading venues. In Paris, the money changers took in 1411 to an arrangement of King Louis VII towards her seat on a bridge, the Pont au Change came to prominence as a name.

Money changers occur in the Middle Ages under various names in appearance. The one they call " campsores " (from their " banks" the name is derived banker, while others it to " banco ", Haufe, an older Italian expression for a forced loan, attributed ). Others use the term " Banchieri " for these professional traders. In Western Europe, naturalized originally derived from the country of origin designation team result " Lombards " for money changer, even if they had no relation to Lombardy. This origin characterization colored on the term " Lamparter " from. In the town of Cahors go the designations " Cahorsiner ", " Kavariner ", " Kawersiner " or " Kawerschen " back from the money changers were broken up in German towns.

They did their business predominantly on trading venues, which usually also were holding regular exhibitions. On a larger table the money changers spread of different types of coins, and if they agreed with their customers, changed the currency their owners. Instead of many coins merchants sometimes also brought a gold or silver bullion for exchange in local currency at the money changer. This caused a foothold in the precious metals trading, as a mintmark was after melting it again produce coins. So were occasionally also gold and silversmiths sideline money changer, andi ducks fused in the money the mint or possibly even could customize jewelry.

The money changers often possessed well- secured premises in order to protect their assets from burglary and robbery. Therefore Another city residents familiar with their money gradually a trusted fellow of the guild of money changer for the storage and obtained from him a receipt for the amount. Issued receipts of money changers had to predators lurking on medieval roads and travelers easier for their cash, no value. Therefore, in the 13th century said instructions to friendly or related money changer at home or abroad came to such a " bill of exchange ", deliver to the Named beneficiary a sum of money. The money changers even then adjusted on the occasion of their mutual claims and liabilities with cash. In the Middle Ages women were engaged in private practice as a money changer affil, as is evident from regional documents.

In the late Middle Ages, specialized markets and fairs were of high importance, starting from fairs in Champagne in the economy. The payment for the goods shops of the merchants was had been deposited by non-cash accounting in the books of the local money changers in the cash or the value of a bill of exchange by the merchant at the buying rate of the foreign currency, regulated. The change letter did initially the letter of intent of its author, elsewhere to pay the amount of money received in a currency that is commonly there. But this " change " is transformed by the time the payment instruction to a corresponding money changers, hand over the specified amount on account of the exhibitor to the rugs of the paper.

In the population moneychangers was often accused of usury, and its assets ripened envy. It was therefore at times also to persecution. In France, evictions have occurred on church efforts toward in the years 1269, 1274 and 1285. In 1306 King Philip the Fair had the Jews out of their land have, in the years 1309 to 1311 it hit Lombard moneychangers. Their assets were disposed of in favor of the crown, but the financial problems were only reduced in the state budget with the measure.

Holy Roman Empire

Was that still coinage originally reserved for the emperor, it came over time - even from financial straits of the Regent - more and more to the assignment of the RIGHT TO MINT COINAGE to the rulers or of the free and imperial cities of the Holy Roman Empire. In the mid-13th century there were over 500 mints who spent their own coins with different weight and value as regionally valid method of payment. Money changers were a necessity and deserved well at different exchange rates of coins, such as the Coin Lords. For example, since the city of Metz participated with two percent of sales for a money changer within its walls, there is a higher profit margin in the job at hand. There are descriptions that money changers were among the rich people in a city, such as in the Prague of the year 1090th Many got into this business to a large fortune, partly through the " design" of the exchange rate when buying and selling coins, partly by high interest rates when lending money. The Zurich lessons letter of 1304 indicates about the interest rate for one weeks credit with a maximum of 43 percent. In Zurich, Lombard moneychangers and moneylenders 1357-1429 in Kawertschenturm were established. In the city of Basel Jakob Meyer zum Hasen was in 1516 a money changer mayor.

Dealing with the types of coins was not an easy business, as it demonstrates that about Albertus Magnus decreed control of Cologne coin in 1252. From the Cologne mark, which included 234 grams of silver, 13 shillings and four pence should be beaten. The Domsakristei was abandoned in the storage of a corresponding sample.

There was changers in their mintmark on behalf of the sovereign master of the mint as manufactured regionally valid currency. Money changer could be members of a so-called Hausgenossenschaft where appropriate, the coins produced.

Were originally only foreigners and Jews as money changers and / or moneylenders in appearance, this changed in the late Middle Ages. First, secretly, later increasingly also officially Christians of interest prohibition have been in this trade by easing tolerated by the Catholic Church, including citizens and the high clergy. Examples are the Fugger in southern Germany and the knights in the Mark Brandenburg. These were anxious of their Jewish competitors pick up the lucrative business. But not only financial but also political and religious causes weakened the position of the Jews as a protegee of country gentlemen. They were expelled from almost all imperial cities and many sovereign territories and cities of the Holy Roman Empire. In Mecklenburg and Brandenburg the expulsion of Jewish pogroms preceded. Also, in the Duchy of Austria 1421 forcible expulsions of Jews came before ( "Wiener Gesera " ), 1496 Maximilian I agreed to a sum of money the estates of their expulsion from the Styria. In Carinthia, Carniola Salzburg and Jewish inhabitants fared well until in 1518 the Emperor took a change of heart.

See also: Jews Interest

Religious influences and financial flows

The advent of money-changers was promoted not only by the need for trade in goods, but in a roundabout way by popes in the Middle Ages. Her two measures to condemn usury, and calls for crusades to the Holy Land had an impact here it came up an increasing demand for money of the Holy See.

The Roman Catholic Church had forbidden its believers citing the Bible to demand interest on capital. This profiteering should be prevented. This prohibition of interest has now led to the fact that you could make some money transactions only with strangers or the Jews, who were not affected by the penalties of the Church.

The first tough stance of the church was gradually relaxed. For its own cash flows of church funds to the Pope in Rome or Avignon they finally had also the existing network of money changers operate. The commissioned by the Curia separate panels and the connections of the Knights Templar were only limited to cope with the increased papal capital useful.

In Rome, zoom -supported concern as confirmations of possessions, honors, or the rights and arbitration awards in dispute matters connected with costs, the requesting party had been paid in national currency to the Pope. The Papal office is likely to have already has the middle of the 12th century, presumably a currency exchange fee for the conversion of the claims.

Another element that caused the need of money changers in mind were the Crusades. The hosts, who had to supply the country, looted food not only by force but also bought goods in the countries crossed with private or vanquished looted money. For example, known that Crusaders supplied on a market on May 23, 1190 after the Battle of Iconium with needed items. Brought booty in hard cash could exchange returnees from the Crusades in the money-changers in familiar domestic currency.

The pilgrimage to Santiago de Compostela procured not only of the local guild of moneychangers a bubbling source of income, but also their colleagues in places on the back there and leading routes to Santiago.

Gresham's law

Their expertise enabled the moneychangers naturally also to hoard valuable coins in precious metal content and to give the " inferior" when switching business in circulation. As Gresham's Law is the observation that lower quality money displaces the good from the circulation, become known. Coins with higher precious metal content sold the money-changers in another country, " if the expected profit covered the cost of transportation, smelting, sales and risk or exceeded ."

Modern Times

Money changers and foreign exchange were unchanged places in which were available for a surcharge information about the absolute and relative value of different coins or where coins could be exchanged. Some money changers took it with their trustworthiness, however, not as accurate. They had problems because there were a variety of different coins, the real value was apparent after closer examination. Especially in the tipper and Wipperzeit came increasingly inferior coins in circulation, in which the amount indicated on them differed greatly from the actual value of the precious metal from which they were produced.

The establishment of the Amsterdam Exchange Bank in 1609 marked a turning point in the business of money changers, as they offered for deposits of coin types from all over the world a bank guilders as a fixed size and the possibility of cashless payment opened. In modern times money changers on the other hand could become bankers. You can see this in examples like

• The House of Rothschild. The progenitor of a large banking dynasty was Mayer Amschel Rothschild, who scored in the Frankfurt Jewish quarter revenues with a small textile trade and operated the same as a money changer. At 22 he founded in 1766 the Rothschild Bank.
• Bankhaus Warburg. Since 1863, the family no longer led the term " money changers " but " bankers."

Until the 19th century ensured money changers for the flourishing of payments. In the commercial city of Cologne in the 1820s was mainly French money in circulation. 1822 therefore ordered the city over 14 money changers and only two bankers, Messrs. Herstatt and Schaaffhausen.

Special situations can force their own solutions currency exchanges. Thus, Pierre Seel operated during World War II in train running between Belgrade and Thessaloniki trains as money -changers in the service of the German Reichsbank.

In countries with non- convertible currency ( domestic currency), as was often the case in the former Eastern Bloc, led private illegal money exchange business through a black market. Benefit was for the money changers of access to foreign exchange for the customer buying the cheaper local currency.

Presence

In the western industrialized countries and in tourist centers in the presence of exchange offices have the transactions of certain money changers displaced. Mostly, there have been but areas where even this profession can be found even today. An example is provided in the adjacent picture.

In India, in some cities offer money changers their barter on the streets of.