Mount of piety

Monte di Pietà ( Italian, "Mountain of Mercy" ) were in the late Middle Ages and early modern pawnbroking, granted small loans to the poor and low mortgage interest rates.

Precursor

As Mons (according to Berg, plural montes, of the " heaped together " deposits) were referred to in the Italian cities of banks that poured out against a cash deposit rates. They served one hand, the financing of the community, on the other hand they allowed people with a small fortune regular income. The first device was built around 1300 in Florence, then in other Italian cities.

In England, founded by the Bishop of London, Michael Northburgh, 1361 a bank that lent money without interest for a deposit. However, this model did not succeed, the capital was rapidly depleted.

Operation

In contrast to the Monti di Pietà Montes were not profit-oriented, but worked charitable. You should grant the poor in financial emergencies help. The capital of the Monti di Pietà was applied by foundations and collections. The loan was granted at interest such as jewelry, clothing or equipment and was charged interest. Although these interest rates were low, but were not without controversy among theologians (see prohibition of interest ). Due to the large cost not all institutions were working successfully.

Your device goes back to the Franciscans and turned against " profiteers ", especially against Jews and Lombards. Marco di Matteo Strozzi, a Franciscan, advocated in his sermons the Monti di Pietà as a means to displace Jewish moneylenders out of the cities. This goal has not been achieved, because the two systems had different customers. Out of shame avoided some customers the Monti di Pietà, whose lending them did not happen discreet enough.

History

The Monte di Pietà was founded first in 1462 in Perugia, many more followed in various Italian cities. These were independent of each other. The Monti di Pietà were founded in those days by the Franciscans as Pawnshops, so as to help poor and needy people financially, while the former banking families like the Medici or Strozzi mainly devoted to the contiguous with the merchandise business credit and exchange business. Banca Monte dei Paschi di Siena, founded in 1472 as Monte di Pietà in Siena is the oldest surviving bank in the world. Other foundations were in 1463 in Orvieto, Viterbo in 1471, 1473 in Bologna, 1479 in Savona, 1483 in Milan, 1484 in Mantova, Assisi, Brescia and Ferrara, 1486 in Vicenza, 1510 in Forli.

In France, a Monte di Pietà was founded in 1610 in Avignon by the Congregation de Notre- Dame de Lorette. This remained until 1791 exist. In Paris in 1637 opened a Monte de Pieta, which was the founder of the Gazette de France, Théophraste Renaudot constructed.