Finance In The Roman State
( Originally Published Early 1900's )
Another respect in which the Roman system was a crude anticipation of our own, and different from any preceding political system we have considered, was that it was a cash and credit-using system. Money had been in the world as yet for only a few centuries. But its use had been growing; it was providing a fluid medium for trade and enterprise, and changing economic conditions profoundly. In republican Rome, the financier and the "money" interest began to play a part recognizably similar to their role today.
We have already noted in our account of Herodotus that a first effect of money was to give freedom of movement and leisure to a number of people who could not otherwise have enjoyed these privileges. And that is the peculiar value of money to mankind. Instead of a worker or helper being paid in kind and in such a way that he is tied as much in his enjoyment as in his labour, money leaves him free to do as he pleases amidst a wide choice of purchasable aids, eases, and indulgences. He may eat his money or drink it or give it to a temple or spend it in learning some-thing or save it against some foreseen occasion. That is the good of money, the freedom of its universal convertibility. But the freedom money gives the poor man is nothing to the freedom money has given the rich man. With money rich men ceased to be tied to lands, houses, stores, flocks and herds. They could change the nature and locality of their possessions with an unheard-of-freedom. In the third and second century B. C., this release, this untethering of wealth, began to tell upon the general economic life of the Roman and Hellenized world. People began to buy land and the like not for use, but to sell again at a profit; people borrowed to buy, speculation developed. No doubt there were bankers in the Babylon of 1,000 B. c., but they lent in a far more limited and solid way, bars of metal and stocks of goods. That earlier world was a world of barter and payment in kind, and it went slowly and much more staidly and stably for that reason. In that state the vast realm of China has remained almost down to the present time.
The big cities before Rome were trading and manufacturing cities. Such were Corinth and Carthage and Syracuse. But Rome never produced a very considerable industrial population, and her warehouses never rivalled those of Alexandria. The little port of Ostia was always big enough for her needs. Rome was a political and financial capital, and in the latter respect, at least,, she was a new sort of city. She imported profits and tribute, and very little went out from her in return. The wharves of Ostia were chiefly busy unloading corn from Sicily and Africa and loot from all the world.
After the fall of Carthage the Roman imagination went wild with the hitherto unknown possibilities of finance. Money, like most other inventions, had "happened" to man-kind, and men had still to develop today they have still to perfect the science and morality of money. One sees the thing "catching on" in the recorded life and the writings of Cato the Censor. In his early days he was bitterly virtuous against usury; in his later he was devising ingenious schemes for safe usury.
In this curiously interesting century of Roman history we find man after man asking, "What has happened to Rome ?" Various answers are made a decline in religion, a decline from the virtues of the Roman forefathers, Greek "intellectual poison," and the like. We who can look at the problem with a large perspective, can see that what had happened to Rome was "money" the new freedoms and chances and opportunities that money opened out. Money floated the Romans off the firm ground, everyone was getting hold of money, the majority by the simple expedient of running into debt; the eastward expansion of the empire was very largely a hunt for treasure in strong rooms and temples to keep pace with the hunger of the new need. The Equestrian order, in particular, became the money power. Everyone was developing property. Farmers were giving up corn and cattle, borrowing money, buying slaves, and starting the more intensive cultivation of oil and wine. Money was young in human experience and wild, nobody had it under control. It fluctuated greatly. It was now abundant and now scarce. Men made sly and crude schemes to corner it, to hoard it, to send up prices by releasing hoarded metals. A small body of very shrewd men was growing immensely rich. Many patricians were growing poor and irritated and unscrupulous. Among the middle sort of peoples there was much hope, much adventure, and much more disappointment. The growing mass of the expropriated was permeated by that vague, baffled, and hope-less sense of being inexplicably bested, which is the preparatory condition for all great revolutionary movements.