How entirely the man was merged in the merchant, appears most distinctly perhaps in the substitution of a money-payment and an action at law for the duel --even for the political duel--in the Roman life of this period. The usual form of settling questions of personal honour was this: a wager was laid between the offender and the party offended as to the truth or falsehood of the offensive assertion, and under the shape of an action for the stake the question of fact was submitted in due form of law to a jury; the acceptance of such a wager when offered by the offended or offending party was, just like the acceptance of a challenge to a duel at the present day, left open in law, but was often in point of honour not to be avoided.
Associations
One of the most important consequences of this mercantile spirit, which displayed itself with an intensity hardly conceivable by those not engaged in business, was the extraordinary impulse given to the formation of associations. In Rome this was especially fostered by the system already often mentioned whereby the government had its business transacted through middlemen: for from the extent of the transactions it was natural, and it was doubtless often required by the state for the sake of greater security, that capitalists should undertake such leases and contracts not as individuals, but in partnership. All great dealings were organized on the model of these state-contracts. Indications are even found of the occurrence among the Romans of that feature so characteristic of the system of association--a coalition of rival companies in order jointly to establish monopolist prices.(26) In transmarine transactions more especially and such as were otherwise attended with considerable risk, the system of partnership was so extensively adopted, that it practically took the place of insurances, which were unknown to antiquity. Nothing was more common than the nautical loan, as it was called--the modern "bottomry"--by which the risk and gain of transmarine traffic were proportionally distributed among the owners of the vessel and cargo and all the capitalists advancing money for the voyage. It was, however, a general rule of Roman economy that one should rather take small shares in many speculations than speculate independently; Cato advised the capitalist not to fit out a single ship with his money, but in concert with forty-nine other capitalists to send out fifty ships and to take an interest in each to the extent of a fiftieth part. The greater complication thus introduced into business was overcome by the Roman merchant through his punctual laboriousness and his system of management by slaves and freedmen --which, regarded from the point of view of the pure capitalist, was far preferable to our counting-house system. Thus these mercantile companies, with their hundred ramifications, largely influenced the economy of every Roman of note. There was, according to the testimony of Polybius, hardly a man of means in Rome who had not been concerned as an avowed or silent partner in leasing the public revenues; and much more must each have invested on an average a considerable portion of his capital in mercantile associations generally.
All this laid the foundation for that endurance of Roman wealth, which was perhaps still more remarkable than its magnitude. The phenomenon, unique perhaps of its kind, to which we have already called attention(27)--that the standing of the great clans remained almost the same throughout several centuries--finds its explanation in the somewhat narrow but solid principles on which they managed their mercantile property.
Moneyed Aristocracy
In consequence of the one-sided prominence assigned to capital in the Roman economy, the evils inseparable from a pure capitalist system could not fail to appear.
Civil equality, which had already received a fatal wound through the rise of the ruling order of lords, suffered an equally severe blow in consequence of the line of social demarcation becoming more and more distinctly drawn between the rich and the poor. Nothing more effectually promoted this separation in a downward direction than the already-mentioned rule--apparently a matter of indifference, but in reality involving the utmost arrogance and insolence on the part of the capitalists--that it was disgraceful to take money for work; a wall of partition was thus raised not merely between the common day- labourer or artisan and the respectable landlord or manufacturer, but also between the soldier or subaltern and the military tribune, and between the clerk or messenger and the magistrate. In an upward direction a similar barrier was raised by the Claudian law suggested by Gaius Flaminius (shortly before 536), which prohibited senators and senators' sons from possessing sea-going vessels except for the transport of the produce of their estates, and probably also from participating in public contracts--forbidding them generally from carrying on whatever the Romans included under the head of "speculation" (-quaestus-).(28) It is true that this enactment was not called for by the senators; it was on the contrary a work of the democratic opposition, which perhaps desired in the first instance merely to prevent the evil of members of the governing class personally entering into dealings with the government. It may be, moreover, that the capitalists in this instance, as so often afterwards, made common cause with the democratic party, and seized the opportunity of diminishing competition by the exclusion of the senators. The former object was, of course, only very imperfectly attained, for the system of partnership opened up to the senators ample facilities for continuing to speculate in secret; but this decree of the people drew a legal line of demarcation between those men of quality who did not speculate at all or at any rate not openly and those who did, and it placed alongside of the aristocracy which was primarily political an aristocracy which was purely moneyed--the equestrian order, as it was afterwards called, whose rivalries with the senatorial order fill the history of the following century.