EH.Net Abstracts in Economic History

                ABSTRACTS IN ECONOMIC HISTORY
                     (c) 2006 EH.Net
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Name: Paola Avallone
Email:  avallone at issm.cnr.it
Institution:  Institute of Studies on
Mediterranean Societies (ISSM), Italian National
Council of Research (CNR)

Co-author: none

Title: The story of urban credit. "Monti di Pieta" in the Kingdom of Naples between the 17th and 19th centuries

Internet Address of abstracted work: not available

By mail:
Via P. Castellino, 111 - 80131 Naples (Italy)

Language:  English and Italian

Abstract:
The late medieval and modern credit system was 
certainly an urban phenomenon, not because it was 
linked to manufacturing and commerce rather than 
agriculture, but because only the city offered 
the right conditions for the founding and 
thriving of both private and public banks. Those 
who could save money lived in the city; those who 
needed money to invest lived in or came to the 
city as well. Furthermore, it is well-known that 
the monetary economy in the city had such a 
dimension as to allow a diversification of risk. 
Unfortunately, not everyone could borrow money 
from the banks. These individuals who lived at 
the margin of society and were not able to give 
sufficient guaranties had only one option: to 
turn to usurers. Faced with such poverty and with 
people that had to cede all their material 
possessions to pay usury interests, the 
Franciscans promoted the charitable initiative of 
the "Monti di Pietà," pawnshops that issued 
no-interest loans or loans at the "right price." 
These institutions expanded in an urban 
environment from the second half of the 15th 
century. The initial capital consisted of a 
donation, bequest or fund-raising. The loans were 
issued at an interest rate of 5-6%. The 
typologies and the modalities of the loan varied 
based on the states where these institutions were 
located. Generally, the loans issued by the local 
"Monti di Pietà" represented a consumption credit 
ante-litteram, clearly a consumption commensurate 
with the needs of individuals living between the 
15th and 17th centuries.

In my paper I will analyze through an historical 
excursus of the "Monti di Pietà" in the Kingdom 
of Naples between the 17th and 19th centuries: 1) 
their organization, geographic position; 2) the 
differences with the rural "Monti frumentari"; 3) 
the evolution of some of these institutions in 
banks.

Bibliography: Avallone, Paola. "The story of 
urban credit. "Monti di Pietà" in the Kingdom of 
Naples between the 17th and 19th centuries." 
Institute of Studies on Mediterranean Societies, 
Working Paper. 2006.

Subject:  H
Geographical Area:  4
Country/Region:  Italy
Time Period:  6

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