CHAPTER 1
MEDIEVAL LEGACIESAND TRANSFORMING
DISCOVERIESJacob Fugger (1455-1525) was one of the sons of a weaver who
settled in the southern German town of Augsburg. At age fourteen, he joined
his brothers as a trader in spices, silks, and woolen goods. He traded, above
all, with the Adriatic port of Venice, where he learned double-entry book
keeping (keeping track of business credits and debits), which was then
unknown in the German states. Jacob Fugger amassed a vast fortune, and he
began to loan sizable sums to various rulers in Central Europe. Fuggers
name soon became known “in every kingdom and every region, even among
the heathens. Emperors, kings, princes, and lords sent emissaries to him; the
pope hailed him and embraced him as his own dear son; the cardinals stood
up when he appeared.” When asked if he wanted to retire, Jacob Fugger
replied that he intended to go on making money until he dropped dead.
The family history of the Fuggers intersected with economic growth and
statemaking in Central Europe. The Fuggers emerged as the wealthiest
and most influential of the international banking families that financed
warring states, answering the call of the highest bidder. In 1519, the Fug
gers helped Charles V become Holy Roman emperor by providing funds
with which the scheming Habsburg could bribe the princes who were elec
tors to vote for him. The Fuggers raised and transported the money that
made possible imperial foreign policy. Loaning money to ambitious rulers,
as well as to popes and military entrepreneurs, the Fugger family rose to
princely status and facilitated the consolidation of territorial states and the
emergence of a dynamic economy not only in the Mediterranean region
but also in the German states and northwestern Europe by helping mer
chants and manufacturers find credit for their enterprises.
The growth of trade and manufacturing ultimately changed the face of Eu
rope. The expanding economy contributed to a sense that many Europeans