The extraordinary history of Felloni's work recounted in the Financial Times in 2009
I wrote here that: "If owners of the title to this title wish to put it elsewhere on the web, please do, I will link to it. But don't lose it. It shines a light for us now". The web site has reemerged.
BEGIN QUOTE FROM first section of Giuseppe Felloni, The Primacy of Italian finance from the Middle Ages to early modern times.
The birth of Europe
Between the 11th and 16th centuries Europe’s position with regards to other civilisations radically changed. With the advent of the Ottos in the 10th century, when the fundamental features of the continent’s policies became established, Europe was still socially, culturally and economically backward, overtaken by the refined and still solid Byzantine Empire, the flourishing world of Islam, albeit showing the first signs of political division, and the magnificent Song Dynasty in China. In the 16th century, with the disappearance of the Byzantine Empire and an upturn in the fortunes of Islam with the Ottoman Empire, Europe by now was able to compete with the China of the Ming dynasty in terms of scientific knowledge and military strength. This self-sustaining change had its roots in Italy and the Flemish area and gradually was to spread elsewhere in Europe. These extraordinary advances, which were set to continue in the forthcoming centuries and would allow European countries to expand their spheres of influences all over the world, have no easy explanation. In the competition with China, Europe enjoyed an immediate advantage. Both areas had an immense heritage of scientific and technical knowledge, but the Chinese world was dominated by a veneration of the past and constant reference to traditional models, whilst in Europe there was greater openness and acceptance of ideas coming from outside. Both areas enjoyed an abundance of raw materials, but Europe had the edge thanks to its network of seas and rivers that aided communications. In China, the existence of a sole power of celestial origin helped to keep society in a dangerous state of conformity which led during the Ming period to a decline in knowledge in the areas of mathematics and astronomy, aggravated until 1567 by the prohibition of maritime trade with abroad. Europe, on the other hand, was divided into states that were almost always at war with each other and whose inhabitants enjoyed greater degrees of freedom, which gradually increased as the feudal system declined and their rulers sought economic progress both as a way of replenishing state coffers and garnering political supremacy. As regards these aspects, the fragmented situation of the Italian peninsula lent itself particularly well since competition amongst new political players (communes, seigneurs, principalities) fuelled costly local tensions and acted as a stimulus for individual initiative. At the same time, social ideals were changing and the pursuit of wealth became a widespread socially acceptable goal thanks also to the rising importance of the Italian mercantile classes engaged in overseas and transalpine trade. Against this already favourable backdrop, the rise of individual initiative and the capitalistic ideal were determinants in setting off an irreversible mechanism of technical and scientific progress that would lead to the adoption of the method of experimentation and confirm Europe’s new superiority, at least in certain fundamental sectors. Proof of the continent’s new found primacy lay in the fact that in 1620 China officially authorised the importation into the celestial empire of canons from Europe, despite having had their own firearms since the 12th century. Whatever the decisive factors were, in the last centuries of the middle ages Europe demonstrated an inventiveness that was made up, rather than by a series of epoch-defining events, by the efforts of artisans and merchants who on a daily basis sought to improve the efficiency of their work. Over time, it was the sum of these small-scale advances and innovations that was to be of extraordinary importance. This process of advancement was particularly evident in the industrial field: new techniques in metallurgy and mechanics (albeit thanks mostly to the invention of gunpowder), improvements to windmills (the major energy source of the time), the invention of the printing press, etc.. Often in the background lie the innovations made in finance and commerce, which originated in Italy and would later be exported throughout Europe and become part of its collective heritage. One possible reason for this could be that advances in manufacturing, industry and weapons were tangible, whilst mercantile procedures, laws and litigation can only be understood via the study of historical documents that are by no means easy to interpret. Amongst these less immediately recognisable financial innovations, some have been so important for economic development that the contemporary world has absorbed not only the principle underlying them, but also the substance. These innovations are essentially linked to the diffusion of credit and consist in the development of rules, instruments and techniques capable of satisfying more effectively the requirements of both the credit demand and credit supply sides.
First section of Giuseppe Felloni, The Primacy of Italian finance from the Middle Ages to early modern times. http://www.giuseppefelloni.it
