Money, Bank Credit, and Economic Cycles - The Ludwig von Mises ...

54 Money, Bank Credit, and Economic Cyclesdelightful dialogues describing financial operations, clearings,account balances, the use of checks and so on. 26 In any case, itappears the work done by professional jurists better regulatedRoman banking and provided at least a clearer idea of whatwas and was not legitimate. However, this is no guarantee thatbankers behaved honestly and refrained from using moneyfrom demand deposits to their own benefit. In fact, there is arescript by Hadrianus to the merchants in Pergamum whocomplained about the illegal exactions and general dishonestyof their bankers. Also, a written document from the city ofMylasa to the emperor Septimius Severus contains a decree bythe city council and the people aimed at regulating the activitiesof local bankers. 27 All this suggests that, while perhaps lessfrequently than was common in the Hellenic world, there werein fact unscrupulous bankers who misappropriated theirdepositors’ funds and eventually went bankrupt.THE FAILURE OF THE CHRISTIAN CALLISTUS’S BANKA curious example of fraudulent banking is that of CallistusI, pope and saint (217–222 A.D.), who, while the slave ofthe Christian Carpophorus, acted as a banker in his name andtook in deposits from other Christians. However, he wentbankrupt and was caught by his master while trying toescape. He was finally pardoned at the request of the sameChristians he had defrauded. 2826 In Plautus’s Captivi, for example, we read: “Subducam ratunculamquantillum argenti mihi apud trapezitam sied” (i.e., “I go inside becauseI need to calculate how much money I have in my bank”) cited by KnutWicksell in his Lectures on Political Economy (London: Routledge and-Kegan Paul, 1935), vol. 2, p. 73.27 Trigo Portela, “Historia de la banca,” p. 239.28 The extraordinary fact that someone in the banking profession actuallybecame Pope and later a saint would seem to make Callistus I agood choice for a patron saint. Unfortunately, he set a bad example as afailed banker who abused the good faith of his fellow Christians.Instead, the patron saint of bankers is St. Charles Borromeo (1538–1584),Archbishop of Milan. He was the nephew and administrator of GiovanniAngelo Medici (Pope Pius IV) and his feast day is November 4.