The Godfathers of the Renaissance: The Medici and the Rise of Banking. Mr. Cline Marshall High School Western Civilization II Unit Two BA

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1 The Godfathers of the Renaissance: The Medici and the Rise of Banking Mr. Cline Marshall High School Western Civilization II Unit Two BA

2 An Introduction to the Rise of Banking Meet Claude. Claude lives somewhere between the 14th and 15th centuries. Claude peddles wool. Claude doesn't know it, but he's about to come into some money. Claude's going to need a bank. Lucky for Claude, banks are popping up all over Europe. So, let's follow Claude to learn a few things about these new banks, their prominent members and their impact on Renaissance society. Before we get to all this, let's see how Claude gets his money. Claude acquires his money through tragedy - other people's tragedy. He's a member of the Woolmen's Guild, a group of craftsmen who work together to control prices and fair trade practices. At their monthly meeting, Claude notices his fellow members aren't looking so hot.

3 An Introduction to the Rise of Banking Henry is complaining about swollen joints, Fred has red spots and Sam is acting plain crazy. By the end of the week, everyone but Claude is dead. They all had the Black Plague. Realizing this signals the end of his Woolmen's Guild, Claude decides to branch out on his own. Trusting his former guild members won't mind ('cause they're dead), he takes their tools, their products and their trade routes. Claude now has a huge group of customers looking to him for all their wool needs. He's in such high demand, he can charge way more for his product.

4 An Introduction to the Rise of Banking Rise of the Middle Class Claude begins to make some real money. Soon Claude tires of traveling and looks for a place to set up a permanent shop. This brings him to Florence, Italy, a city made wealthy by the Crusades, overseas trade and Claude's personal favorite, wool. He sets up shop, and business starts booming. Soon he hires an apprentice, or a worker who learns his or her trade from a skilled employer. Before long, Claude's quite the merchant. With his thriving business, he joins a new breed of other merchants who become known as the middle class.

5 An Introduction to the Rise of Banking Rise of the Middle Class Claude and his new middle-class friends soon come up with ways to diversify, or enlarge the range of products sold. Claude decides to add ladies' garments to his portfolio. His friend the candlemaker adds torches to his. These new additions will require funding, and Claude and his friends just don't have enough gold florins - gold coins made in Florence that were the standard money for most of Europe - the first coins to be mass-produced for trade across countries.

6 An Introduction to the Rise of Banking The Medici Bankers Lucky for Claude, another citizen of Florence, Giovanni di Bicci de' Medici, has just started a banking business across town. Giovanni and his family used the rise of trade and industry as a catalyst to grow their banks. This has made them one of the wealthiest families of Italy, if not all Europe. Claude and his candle-making friend go see Giovanni, who tells them he's going to charge interest on their loans. This surprises Claude, since his priest always told him it was against the rules to charge usury, or interest.

7 An Introduction to the Rise of Banking The Medici Bankers Although Claude is a bit annoyed about the usury part, he decides to borrow the money. It can't be too bad an idea, since while he's there he runs into the Pope, who is also borrowing money. He also sees several of the European monarchs trying to take out money. He overhears one of them saying they need money to raise their own armies to protect their lands. He hears another gossiping how King Edward III of England defaulted on his loans from the Hundred Years' War.

8 An Introduction to the Rise of Banking The Medici Bankers Man! No wonder the Medici can give so much of their money to support artists like Michelangelo, Brunelleschi and DaVinci. It seems everyone, even the Pope, owes them money! As Claude is leaving the bank, Giovanni's son Cosimo de' Medici calls out, 'If you're ever traveling abroad, we've got you covered. We've got branches in Bruges, Barcelona, even Cairo!' With his money in hand, Claude's new business ventures continue to thrive, allowing Claude to spend his money on things like education and the arts. He even decides to imitate the Medici by becoming a patron, or financial backer, for a local artist.

9 An Introduction to the Rise of Banking The Medici Bankers Seeing all the enjoyment Claude gets from this, his friend the candlemaker finds his own artist to back. Soon art is flourishing all over Italy! Advancements in Banking All of these expenditures make it very necessary for Claude to keep better track of his finances. Lucky for him, the new banking system has come up with a practice called the double-entry system, an accounting technique that records each transaction as a debit or a credit. This makes it much easier for Claude to calculate his incomes and his outputs.

10 An Introduction to the Rise of Banking Advancements in Banking With his money finally under control, Claude decides to branch out from Italy into the rest of Europe. Since Claude doesn't want to carry a wagonload of florins across the borders, he avails himself of another banking advancement: bills of exchange, or promissory notes endorsed by the lender and the borrower. This new system is a precursor to our modern check writing and cashing system. This makes it much easier, and safer, for Claude, and the rest of the middle class to expand their businesses, while also allowing the banks to yield large commissions from the borrowed money. With these new banking inventions, Claude continues to grow his business, opening up sites all over Europe.

11 An Introduction to the Rise of Banking Advancements in Banking Other European Banks Each time a new location opens, he hires new people, creating new wage earners, who in turn need more banks. By the time Claude is ready to call it quits, he has money all over the continent. At his location in Venice, he deposits his gold ducats, the currency of Venice, which has joined the florin in international popularity. In Genoa, he places his money in the Bank of St. George, which has overtaken the bank business of the Mediterranean. At his location in France, he deals with Jacques Coeur, a Frenchman who used his personal wealth to become the Master of the Mint, or the guy in charge of the money, for King Charles VII.

12 An Introduction to the Rise of Banking Other European Banks In Germany, he gives his money to the Fugger Banking family of Augsburg, whose founder was a clothsman, just like Claude. The Rise and Fall of the Medici Since we are looking at famous bankers, let us look at the most famous of them all, the Medici family Introduction to the Medici If you open up almost any world history textbook, you will read phrases like, 'The Renaissance gave us Michelangelo' or, perhaps, 'The Renaissance gave us Leonardo Da Vinci.' These are famous men, which most people will know. However, there are lesser known men, an entire family, in fact, who also played a crucial role in this time period.

13 The Rise and Fall of the Medici Since we are looking at famous bankers, let us look at the most famous of them all, the Medici family Introduction to the Medici If you open up almost any world history textbook, you will read phrases like, 'The Renaissance gave us Michelangelo' or, perhaps, 'The Renaissance gave us Leonardo Da Vinci.' These are famous men, which most people will know. However, there are lesser known men, an entire family, in fact, who also played a crucial role in this time period. Their name? The Medici family of Florence, Italy. Their claim to fame? Well, let's just say if the Renaissance gave us Michelangelo or Da Vinci, then the Medici themselves gave us the Renaissance!

14 The Rise and Fall of the Medici Introduction to the Medici To begin, the Medici family, also known as the House of Medici, emigrated to Florence from the Tuscan hillside sometime during the 12th century. Through banking and commerce, this family soon rose to become one of the wealthiest families in Italy. However, it wasn't until the 15th century that the Medici began turning their wealth into political capital, making themselves the unofficial, yet undisputed, rulers of Florence. As we take a look at this powerful, mafia-like family, let's keep three things in mind. The Medici won their powerful status through wealth, not by war or birthright.

15 The Rise and Fall of the Medici Introduction to the Medici Giovanni de' Medici The Medici sustained their power by using art as their personal propaganda machine. The Medici cemented their power through family connections and a vast social network. The first Medici we see using wealth to win power was Giovanni di Bicci de' Medici. In fact, we could say it was he who got the influential Medici ball rolling through the founding of the Medici Bank. Through shrewd, behind the scenes business transactions, Giovanni wormed his institution to the top of the ladder.

16 Giovanni de' Medici By the early 15th century, the Medici bank had become the official bank of the Papacy, earning themselves the title of God's Bankers. However, Giovanni never sought political office; instead, he used his wealth to strongly 'encourage' the official politicians of Florence for tax reform. This move made him extremely well liked by the people of Florence and added popular support to his growing political cache. Cosimo de' Medici If Giovanni got the Medici ball rolling, his son, Cosimo de' Medici (or Cosimo the Elder), had it dipped in gold. During the 1430s, Cosimo used the family fortune to set up an elaborate network of behind the scenes alliances that benefited his bank and ruined his competitive enemies. In true mafia style, he loaned money for favors.

17 Cosimo de' Medici If Giovanni got the Medici ball rolling, his son, Cosimo de' Medici (or Cosimo the Elder), had it dipped in gold. During the 1430s, Cosimo used the family fortune to set up an elaborate network of behind the scenes alliances that benefited his bank and ruined his competitive enemies. In true mafia style, he loaned money for favors. Within years of taking over the family reigns, Cosimo controlled the strings to almost every business in Florence. This gave him the ability to call in favors at will. He also set up branches of the Medici Bank all over the known world, from Barcelona to Cairo to Bruges. Soon, almost every parish in Europe sent its money to the Medici.

18 Cosimo de' Medici The Pope himself opened a huge credit line, giving the Medici the purse strings of the church. Again, money won power, making the House of Medici a ruling dynasty without birthright or title. Of course, this made Cosimo very unpopular with the old, influential families of Florence. So much so that in 1433, he was arrested and exiled by a rival family. However, bribes - along with his well-crafted political network - saw his enemies quickly destroyed. Cosimo returned to reign unchallenged for over 30 years. With his rule undisputed, Cosimo further cemented his popularity by throwing his money to the arts.

19 Cosimo de' Medici He commissioned Brunelleschi to finish the dome of the Florence Cathedral, and then 'suggested' the Pope personally travel to Florence to consecrate the cathedral upon its completion in the mid-1430s. Now remember, Cosimo held His Excellency's money in his hand. This move made him extremely popular with the masses, as their city was turned into the cultural center of the day, and the Renaissance began to flourish. With this, Cosimo seized the opportunity to use art to his political advantage, holding at his charge men like Brunelleschi and Donatello. Craftily, Cosimo the Elder continued to fund the arts, earning his city fame and himself the posthumous title, Father of the Fatherland.

20 Lorenzo de' Medici If Cosimo seized the opportunity to use cultural works as propaganda, his grandson, Lorenzo de' Medici, made it an art form. Lorenzo, known as the Magnificent, threw the doors of art open to the public, again breathing life to the Renaissance. He funded a public art school, fostered the talent of Michelangelo, supported the brilliance of Da Vinci and flaunted the racy works of Botticelli. This grasping of power through art is blatantly seen in Botticelli's work, the Adoration of the Magi. In this masterpiece, the artist actually painted members of the Medici family as the kneeling wise men! What could give the appearance of power more so than having a wise Medici kneeling and actually touching the feet of the Holy Child?

22 Lorenzo de' Medici Although Lorenzo was charming and a fan favorite, he had little interest in the family banking business. Instead, he used family connections to ensure his power and success. He married the niece of a church cardinal, and then, married his own daughter off to the son of Pope Leo VIII. Not satisfied with this, he also spent a fortune buying his teenage son, Giovanni, the title of Cardinal. Although these moves did widen the Medici influence, it also lessened the family's personal bank account in Florence. Lorenzo, being more interested in his popularity than the business side of his position, soon began losing some of his power and sway. In short, as his money began to dwindle, his social network began crumbling.

23 Lorenzo de' Medici The Medici Popes In fact, during the latter part of his unofficial reign, Lorenzo came under great criticism by the powerful monk Savonarola. This outspoken clergyman condemned Lorenzo for his sinful taste in art, his sinful extravagance and his sinful abuse of church power. Without the full force of their former fortune, the Medici line began to weaken. However, never fear, the Medici had an ace up their sleeves, when Cardinal Giovanni de' Medici (remember Lorenzo's son who got a cardinalship for his birthday) became Pope Leo X in the year With this rise to such heights, Giovanni (or His Excellency) refilled his family coffers through the sale of indulgences - or in simpler terms, the freedom from punishment of sins.

24 The Medici Popes This practice, although it played a role in spurring on the Reformation, made Giovanni a very wealthy man, with a strong appetite for parties, Renaissance art and prestige. At this point, the House of Medici turned its attention to the business of the church, rather than the business of banking. Following in his cousin Giovanni's footsteps, Giulio di Giuliano de' Medici became Pope Clement VII in the year Remembering the old family tricks, Giulio quickly used his family network to secure power through the marriage of his cousin, Catherine de' Medici, to the heir of the French throne. This not only made Catherine the future queen of France but also the mother of three future French Kings, whose blood was half Medici!

25 The Medici Popes Medici Family Given Title Again, the household of Medici, who had never officially been royalty, saved its power, not by war or birthright but through wealth and connection. Although these two popes were powerful, the award for the most outstanding 16th century-medici would probably go to Cosimo de' Medici, the great-greatgrandson of Lorenzo the Elder, who was Cosimo the Elder's brother. However, this Cosimo's claim to fame is not his well-known name. On the contrary, his infamy lies in being the first Medici to hold political office by being named the Grand Duke of Tuscany in the late 1560s. Also, unlike his fathers before him, Cosimo did not rule as a great patron of the arts, nor did he rely on a social network built through bribery. Instead, he ruled as almost a dictator, using his title to create a large government bureaucracy.

26 Medici Family Given Title However, Cosimo did show his true Medici colors by marrying a Spanish princess of his own. With this move, he not only ensured the support of the Spanish court but also gained access to the powerful Spanish army and navy. Now, Cosimo had might to back up his place of power. As Grand Duke, Cosimo established absolute power over the region, and his descendants would rule as Grand Dukes well into the 1700s. Also, his children would keep up the Medici tradition of marrying well. His granddaughter Marie would become Queen of France, and her son would rule the French as Louis XIII, proving once again that the Medici were masters at gaining power through wealth and connection. For the most part, the Medici line began to decline after the reign of Cosimo.

27 Medici Family Given Title Florence continued in political stability, but as the Medici turned to more of a dictatorship, Florence ceased to be a hub of cultural flurry and inspiration. Finally, when the last Medici Grand Duke died without a male heir, the Medici of Florence died with him, signaling the end of an era that gave us the Renaissance.

What changed during the Middle Ages that gave rise to the Renaissance? Trade & Cities? Government? Religion? Human Potential?

What changed during the Middle Ages that gave rise to the Renaissance? Trade & Cities? Government? Religion? Human Potential? Western I. Europe The emerged Renaissance from the Middle Ages during an era known as the Renaissance From 1300 to 1600, Western Europe experienced a rebirth in trade, learning, & Greco-Roman ideas During