1、Financial HistoryProfessor Jin LiangTongji UniversityDefinition of Finance Finance includes currency circulation, credit activities as well as associated general economic activities. In general, finance refers to the activities which associates with the issuing, storing, exchanging, settlements, int
2、ermediation of all credit currency. It even includes the exchange of gold and silver. In the narrow sense, finance refers specifically to the intermediation of credit currency .Contents of Finance Issuing and recovery of currency Saving and withdrawing of deposits Granting and repossessing of loans
3、Gold and silver exchange, foreign exchange Issuing and transfer of securities Insurance, trust, currency calculating domestically and internationallyInstitution engaging in financial activities bank investment company insurance company securities company exchange credit cooperatives 、 financial comp
4、any 、 trust company etc.Finance means: The living of ordinary people The blood of economy The meridian of history The barometer of current events The life of society The lifeline of countries The energy of the worldChapter 1: Beginning of Finance: When there were materials extra, lenders and borrowe
5、rs emerged. Borrowing and lending was a double - edged sword: It could promote circulation or destroy the society.Athens: one-sixth-farmer ; Solon Reform “ one-sixth-farmer” ： the farmer had to pay five sixths of the harvest to the creditor, only one six could be kept. If the farmer broke, the credi
6、tor had the right to sell the farmer and his wife into slavery after one year. Essence: you could have more if you had something; anything left were deprived if you had none. This debt practice set up a vicious circle :the rich got richer while the poor got poorer B.C.594， Solon（ B.C.638 B.C.558） ma
7、ndated the famous order of releasing: all residents who were sold into slavery for debt were released; the contracts were invalid, the land belonged to the farmers again; the city redeemed slaveries who were sold outside the city. The order created the most splendid democracy in ancient Greek, which
8、 was memorized as Solon Reform in history.AthensAdmiralty Credit War for expanding; Savings for War. A.C.431, a war between Athens and Spartak broke. Credit in admiralty: the debtor obtained interests up to 30 to 100 per cent without mortgage, pledge or guarantee. High risk: once the ship encountere
9、d shipwreck, captured by the Spartak or being cheated, the debtor would lose out. As compensation, the debtor could get the loan and interest free in case of shipwreck unless he was judged for fraud by the courts. Most loans were done by middleman in port cities such as Athens, Byzantine, Masalian,
10、which was guaranteed by the Temple. The beginning of financial trade place and bank emerged. Rise and decline in Admiralty Credit In addition to trade convenience, exchange and war material, the change of wealth conception was of more significance which was brought to Athens by bank and financial me
11、rchants. Financial development got Athens rich rapidly, in the meanwhile corruption was breed which made it decline gradually. Finally it was conquered by Rome troop.Emerging of Roman law In the beginning Rome relied on, robber. The stronger the man was, the richer he was. The poor or the obligor ha
12、d to attend the army as a mercenary. B,C.451, law of the twelve tablets provided that solider could not been sold into slavery for debt. In the base of the law of the twelve tablets, Roman law was increasingly complete. Roman law defined the two most significant concepts in the ecnomic process, private property and Authority with Corresponding Responsibility, the soul of modern finance.
