These, under the favourable climate of Italy, had no need to fear foreign competition; Italian wine, Italian oil, Italian wool not only commanded the home markets, but were soon sent abroad; the valley of the Po, which could find no consumption for its corn, provided the half of Italy with swine and bacon. With this the statements that have reached us as to the economic results of the Roman husbandry very well agree. There is some ground for assuming that capital invested in land was reckoned to yield a good return at 6 per cent; this appears to accord with the average interest of capital at this period, which was about twice as much. The rearing of cattle yielded on the whole better results than arable husbandry: in the latter the vineyard gave the best return, next came the vegetable garden and the olive orchard, while meadows and corn-fields yielded least.(14)
It is of course presumed that each species of husbandry was prosecuted under the conditions that suited it, and on the soil which was adapted to its nature. These circumstances were already in themselves sufficient to supersede the husbandry of the petty farmer gradually by the system of farming on a great scale; and it was difficult by means of legislation to counteract them. But an injurious effect was produced by the Claudian law to be mentioned afterwards (shortly before 536), which excluded the senatorial houses from mercantile speculation, and thereby artificially compelled them to invest their enormous capitals mainly in land or, in other words, to replace the old homesteads of the farmers by estates under the management of land- stewards and by pastures for cattle. Moreover special circumstances tended to favour cattle-husbandry as contrasted with agriculture, although the former was far more injurious to the state. First of all, this form of extracting profit from the soil--the only one which in reality demanded and rewarded operations on a great scale--was alone in keeping with the mass of capital and with the spirit of the capitalists of this age. An estate under cultivation, although not demanding the presence of the master constantly, required his frequent appearance on the spot, while the circumstances did not well admit of his extending the estate or of his multiplying his possessions except within narrow limits; whereas an estate under pasture admitted of unlimited extension, and claimed little of the owner's attention. For this reason men already began to convert good arable land into pasture even at an economic loss--a practice which was prohibited by legislation (we know not when, perhaps about this period) but hardly with success. The growth of pastoral husbandry was favoured also by the occupation of domain-land. As the portions so occupied were ordinarily large, the system gave rise almost exclusively to great estates; and not only so, but the occupiers of these possessions, which might be resumed by the state at pleasure and were in law always insecure, were afraid to invest any considerable amount in their cultivation--by planting vines for instance, or olives. The consequence was, that these lands were mainly turned to account as pasture.
Management Of Money
We are prevented from giving a similar comprehensive view of the moneyed economy of Rome, partly by the want of special treatises descending from Roman antiquity on the subject, partly by its very nature which was far more complex and varied than that of the Roman husbandry. So far as can be ascertained, its principles were, still less perhaps than those of husbandry, the peculiar property of the Romans; on the contrary, they were the common heritage of all ancient civilization, under which, as under that of modern times, the operations on a great scale naturally were everywhere much alike. In money matters especially the mercantile system appears to have been established in the first instance by the Greeks, and to have been simply adopted by the Romans. Yet the precision with which it was carried out and the magnitude of the scale on which its operations were conducted were so peculiarly Roman, that the spirit of the Roman economy and its grandeur whether for good or evil are pre-eminently conspicuous in its monetary transactions.
Noneylending
The starting-point of the Roman moneyed economy was of course money-lending; and no branch of commercial industry was more zealously prosecuted by the Romans than the trade of the professional money-lender (-fenerator-) and of the money-dealer or banker (-argent arius-). The transference of the charge of the larger monetary transactions from the individual capitalists to the mediating banker, who receives and makes payments for his customers, invests and borrows money, and conducts their money dealings at home and abroad--which is the mark of a developed monetary economy--was already completely carried out in the time of Cato. The bankers, however, were not only the cashiers of the rich in Rome, but everywhere insinuated themselves into minor branches of business and settled in ever-increasing numbers in the provinces and dependent states. Already throughout the whole range of the empire the business of making advances to those who wanted money began to be, so to speak, monopolized by the Romans.
Speculation Of Contractors
Closely connected with this was the immeasurable field of enterprise. The system of transacting business through mediate agency pervaded the whole dealings of Rome. The state took the lead by letting all its more complicated revenues and all contracts for furnishing supplies and executing buildings to capitalists, or associations of capitalists, for a fixed sum to be given or received. But private persons also uniformly contracted for whatever admitted of being done by contract--for buildings, for the ingathering of the harvest,(15) and even for the partition of an inheritance among the heirs or the winding up of a bankrupt estate; in which case the contractor--usually a banker--received the whole assets, and engaged on the other hand to settle the liabilities in full or up to a certain percentage and to pay the balance as the circumstances required.