In 1459, Two Prominent Banks, One in Florence, the Other in Venice, Manage Their Loans With the Medicis

A period of crucial historical development of the modern banking system is late Medieval and Renaissance Italy, and particularly the affluent cities of Florence, Venice and Genoa.  The most famous Italian bank was the Medici bank, established by Giovanni Medici in 1397. It was the largest and most respected bank in Europe.  Some estimates say that the Medici family was, for a period of time, the wealthiest family in Europe.

Banks in that period did not just loan money, they engaged in international and local trade in a way unprecedented before.  Their extension of credit, ability to trade across country boundaries, and the increasing affluence of the wealthy, allowed for a ready market for luxury goods

Among these early Florentine Banks was Baldesi Firm, established by Turino Baldesi and quickly a client of the Medici firm, with which it did extensive business.  The Baldesi Firm was involved in the trade in many countries, stretching from the silk road the end of the known civilization in the West – England.  They traded in silk from Iran, goods from Indonesia, and of course lent money.

In the early 15th century, the firm moved its main office to flourishing Venice, though its roots in Florence allowed it access to the great patrons, banks, and clients who were there.

Giovanni di Paolo Rucellai was a member of a wealthy family of wool merchants in Renaissance Florence. He held political posts under Cosimo and Lorenzo de’ Medici, and is remembered for building Palazzo Rucellai, for his patronage of the S. Sepolcro chapel and of the marble façade of the church of Santa Maria Novella, and as author of the Zibaldone.

The Baroncelli family is one of the great old Florentine families, whose names appear throughout the city on churches, paintings, etc…

Autograph letter signed, “In Mantua on the 14th of September 1459, from Francesco Baroncelli and Giovanni Rucellai and partners at the court, to the Baldesi family in Venice.

“On the 7th of September we received your last letter, and we answered late. As we already said to you, we paid the Medici 840 florins and we recorded the sum to your credit.  On the same day, the 7th of September, we credited the Medici 40 lire di grossi for 415 cameral florins here to give to you, and since we do not find money to be drawn if not at [an exchange rate of] 3 ¼ , we did not send to you the missing sum. We will do it as soon as we find deliverers and we will let you know. We did everything for your profit.

“The 52 ¾ florins delivered by the Tornaquinci [prominent Italian banker and Medici partners] will be due soon, as soon as this happens we’ll credit them to you. We promised to the Medici 420 cameral florins drawn by your letter due six days after use. On that day we will credit them. And you will have instructed or told us the way we have to operate; the settlement date is on the 23rd.

“Please inform us when you receive from our partners of Florence the information that they have corrected the credit side for ½ fl. We wait for a deliverer in order not to depreciate them, and when we find one we will draw the money on you.

“Nothing more with this. May Christ protect you.

“Exchange rates: 3 1/7 to you, in Florence 20 ¾ to you.

“Francesco Baroncelli and Giovanni Rucellai and partners at the court.”

Docket: “1459, from Mantua received on the 16th of September, written on the 14th of September.  Answered on the 17th of the same month.”