competitive with Florentine manufactures were excluded from the
markets of Florence through protective tariffs set by a government
of merchants and financiers.
To finance this industry and commerce, and much else, the eighty
banking houses of Florence- chiefly the Bardi, Peruzzi, Strozzi,
Pitti, and Medici- invested the savings of their depositors. They
cashed checks ( polizze ), `05033 issued letters of credit ( lettere
di pagamenti ), `05034 exchanged merchandise as well as credit, `05035
and supplied governments with funds for peace or war. Some
Florentine firms lent 1,365,000 florins ($34,125,000?) to Edward III
of England, `05036 and were ruined by his default (1345). Despite such
catastrophes Florence became the financial capital of Europe from
the thirteenth through the fifteenth century; it was there that
rates of exchange were fixed for the currencies of Europe. `05037 As
early as 1300 a system of insurance protected the cargoes of Italy
on their voyages- a precaution not adopted in England till
1543. `05038 Double-entry bookkeeping appears in a Florentine
account book of 1382; probably it was already a century old in
Florence, Venice, and Genoa. `05039 In 1345 the Florentine
government issued negotiable gold-redeemable bonds bearing the low
interest rate of five per cent- a proof of the city's reputation for
commercial prosperity and integrity. The revenue of the government
in 1400 was greater than that of England in the heyday of Elizabeth.
The bankers, merchants, manufacturers, professional men, and skilled
workers of Europe were organized in guilds. In Florence seven guilds
( arti, arts, trades) were known as arti maggiori or greater
guilds: clothing manufacturers, wool manufacturers, silk goods
manufacturers, fur merchants, financiers, physicians and druggists,
and a mixed guild of merchants, judges, and notaries. The remaining
fourteen guilds of Florence were the arti minori or minor trades:
clothiers, hosiers, butchers, bakers, vintners, cobblers, saddlers,
armorers, blacksmiths, locksmiths, carpenters, innkeepers, masons
and stonecutters, and a motley conglomeration of oil sellers, pork
butchers, and ropemakers. Every voter had to be a member of one or
another of these guilds; and the nobles who had been disfranchised
in 1282 by a bourgeois revolution joined the guilds to regain the
vote. Below the twenty-one guilds were seventy-two unions of