| The term of loan, which has a long history both in the East and the West, turns up after the appearance of private ownership system, which has a long history both in the east and the west world. The loan capital usually comes from merchants, religion institutions and officials and the money are invested in. the consumption of daily life and the productive consumption. It benefits the debit, and also makes it possible for the credit to make profit.The Jew is the people who first pursue massive scale usury in the Western Europe. This is because the Christians are forbidden to pursue usury, while the Jew is not astricted by Christianity tenet. With the development of commerce activity, there is an increasing demand in the Western Europe, which offers more chances for the Jew to undertake usury. But the nobles are jealous of the Jew's wealth which was brought in by the loan, so they squeeze the Jew's wealth by various types of impositions and even expel the Jew. The usury, the ingenious idea thought of by the Jew, solves Teuton's problems and finally was adopted by the Teuton. The loan activity prevails in the western European. The king's loan activity record first occurs in the period of Henryâ…¡. The reasons why they need loan are usually to cope with years of wars, the administration expense and the huge supply for the royal. With the development of social economy, the kings privileged income can not meet various increasing spending. The traditional idea of limited monarchy leads to the faultiness of the taxation system. The king has to the approval from the parliament before collecting the taxes. This process takes a long time and tax money is always limited and inadequate, which can not cope with the emergency. So, the loan acivity is commonly accepted by the royal family.From Edward I on, the king begins to systemically make full use of this financing method and give some economical privileges to the bankers and merchants who lend money to the king. The parts which can lend money to the king include:Italy banks, local merchants, churches and cloisters. They can get many commercial monopoly privileges besides the high interest rate by lending money to the king, such as the wool export tariff. The king always takes the tariff as the hypothecate to borrow money, which can get the need money they need and also avoid the tariff control leak because of the official's neglect and greediness. In the condition of lacking money, the local merchants constitute syndicate in succession to lend money to the king in order to fight for the economic privilege with the foreign merchants, while churches and cloisters is aim to seek for the cheap estate.The king always holds the initiative in the process of dealing with local merchants and Italy banks. They used to have a very harmonious period but their relationship comes to the end because of the interest unbalance. Some Italy banks go bankrupt, and the local merchants realize the fatalness to lend money to the king. When the Black Death assaults England, the economy shocks a lot. At the same time, because of the transformation of trade structure, the tariff reduces greatly in England. The king's loan activities are cumbered and end in 1485.Observing at the king's loan activity in different periods of England in middle age, the king settles the financial problems but also loses many interests, such as tariff income and wool monopoly. The king can not refund one time due to the vastness of the money borrowed and they usually, borrow money from other field in order to refund, which makes the king's loan activity magnified. However, this situation makes it possible for the development of monopoly capital in England. The king's activity of borrowing money from local merchants promotes the development of the locus system of the wool trade. And Edwardâ…¡is known as the father of the locus system. |
