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When bling was a crime

Even in times of austerity and hardship, curbs on elaborate displays of wealth

fail, says Sarah Dunant in her A Point of View column.

In the spring of 1519 Agostini Chigi, a banker living in Rome, held a series of

Lenten dinners for the Pope in his home in the Villa Farnesina.

With the aid of a little interior design by Raphael, and a menu so exotic that

each of 20 foreign cardinals consumed food and wine brought in from their own

countries, all served on silver platters, it was obviously something of a

must-get invite on the Roman power circuit of the day.

By the early 16th Century, bankers were already big players in the economy of

Christendom. Just think of the Medici, who some 70 years before had risen

through banking wealth to be the effective rulers of Florence.

The history of the profession is fascinating because strictly speaking in a

Christian world it was a forbidden activity. The lending of money at interest,

ie for overt profit, was defined as usury, which was a sin.

In many cases lower-level loans were handled by the Jews. Seen as a necessary

evil within a burgeoning capitalist world, they could charge interest (remember

Shylock's pound of flesh?), but their position was always vulnerable - if not

from direct violence then because they were banned from buying property, and so

unable to root themselves within the economies they were helping to create.

Cosimo de' Medici The Medici gained political power through banking

The early Christian bankers found means of getting round the usury problem by

conducting business under the veneer of exchange rates rather than interest. A

letter of exchange - in fact a loan - taken out in one currency to be redeemed

in another, with a built-in margin for profit on the deal. Since there were

huge numbers of currencies in operation, even in Italy alone, bankers quickly

got their feet under the table.

When it came to the size of the table, there was no one to rival Chigi. By 40,

he was already reputed to be the richest man in Rome. His business employed

some 20,000 people, he had a bed covered in ivory, gold and precious stones, a

taste for parrots' tongues and live eels, and more silver and gold plate than

the rest of the Roman nobility put together.

In case anyone should doubt it, at the end of each course of that banquet

rather than use the same ones again, he had his guests throw their silver

platters into the Tiber. It was by anyone's standard an outrageously

ostentatious display of wealth.

But while this was an era of huge fortunes, it was also a time when governments

could be nervous about levels of conspicuous spending. It is largely forgotten

now, but for many centuries, Italian city states and other countries had in

place regulations known as the sumptuary laws, which legislated against

ostentatious display in all manner of things - from men and women's clothing to

banquets, weddings and funerals.

Historians are divided on the meaning and importance of these laws, though not

on their efficacy - everyone agrees they didn't really work. But the fact that

they existed at all is worth exploring, particularly as we are now living

through a devastating economic crisis where many people are angry at what they

see as the excessive undeserved wealth of a few - bankers in particular - and

the government's apparent reluctance to control it.

The original sumptuary laws had a religious element to them. We all know how

hard it is for camels, let alone bankers, to get through the eye of a needle.

And certainly most rich men, Chigi included, made sure they gave a share of

their wealth to the church. His account books, like most others had a column

dedicated to "To God and to Profit". What proportion of that filtered down into

social welfare is hard to assess.

Sistine Chapel The wealthy would decorate churches

For each early Bill Gates or Warren Buffet, there were many others who were

more interested in securing immortality through the building of their own

chapels or decoration of churches. Art lovers standing in awe in the Sistine

chapel have long had to square their own circle of a church which produced such

sublime art at the expense of the brutally poor.

In fact, many of the states imposing limits on what you could spend on

banquets, or weddings or funerals, did so because they were worried about the

impact on the social and economic fabric, though not necessarily in ways you

might expect.

At times when it cost serious dowry money to marry off daughters, the more you

spent on weddings - and boy did people push the boat out, descriptions of some

marriages read like the pages of Hello magazine - the more the state tried to

urge restraint. This is the preamble to a 14th Century law in Lucca: "An

inordinate multitude of ornaments, pearls, garlands, belts, banquets and other

expenses at weddings means that women do not marry and so our city decreases,

the old pass away and few children are born."

How far one spent one's money on luxuries rather than necessities was also

under scrutiny. Though all that gold and silver stuff might give employment to

a few artisans, there were times when there were more pressing needs for the

economy. "Our state is less strong because money which should navigate and

multiply lies dead, converted into vanities." So said the rulers of Venice.

The people who made the laws, of course, were exempt from them. The Doge and

his family happily strutted their ceremonial stuff in public, even sailing in a

gilded galleon each year to throw a gold ring into the lagoon to mark Venice's

marriage with the sea. Such theatre of wealth, of course, was necessary for

state identity. No-one's asking the Queen to sell off a couple of her tiaras to

lessen the national deficit.

However, once his term of office was over, so - theoretically - was the Doge's

allowed level of ostentation. And when things got shaky, as they did in the

16th Century after a humiliating defeat on the mainland, a ruling Doge once

sent his own niece home from a ceremony because her dress had too much fabric

in it. It may have been an example of political posturing, but it looked good.

I can't help thinking how for the last three years the Tory conference has

banned the public drinking of champagne for fear of the message it might give

out about fiddling while Rome burns.

Actually, at times of discontent or instability curbs on displays of wealth had

less to do with worry about revolution from below than take over from the

middle. With things going badly, men excluded from the ruling classes - the new

merchant rich if you like, raking it in and showing it off - gave out a signal

to the rest of the population that they looked - and perhaps could act - as

powerful as the ones making a mess of it at the top.

Seen through this lens, the tension between the present government and the

banking magnates as to who knows best how to create wealth and how they should

be rewarded, seems queasily familiar.

Couple's wedding rings Expensive weddings were targeted in 14th Century Italy

By Chigi's time, the ways around the laws were growing ever more insolent. The

greatest failure was probably women's clothing. Who in their right mind would

try to legislate for fashion? My favourite is a 15th Century story based on a

true event in Florence, when the sumptuary police stop noble women on the

streets because they are wearing silver buttons.

Far from being intimidated the women just laugh. "Oh, but these are not silver

buttons." "Well, they look like buttons." "That may be, but they are actually

snaps. Really! You don't know about snaps." And the poor officers go away in

bewilderment, knowing they have been had, but not quite able to work out how.

On the other hand, I have a certain sympathy for the law in Venice which banned

high-stilt shoes - often the preferred attire of courtesans - because they use

too much material to cover them and risked injury and miscarriages. Who says we

can't learn from history?

Greed

In the end nothing they did could stop people wanting to make money and show

off the results. It was, after all, a function of human nature. Falling foul of

the 10 commandments may have kept people at confession - or buying pardons on

account - but it also kept the world turning.

After a while many didn't bother to hide it. Pagare le Pompe - paying the fine

- was its own badge of wealth. Greed like usury was a sin that was fast

becoming embedded into the economic system.

Ceremonial clothes Of The Doge The Doge did not scrimp on luxuries

But get it wrong, take too many risks, bankrupt your business and no-one would

bail you out. The Medici bank crumbled partly because of bad debts (except

their creditors were Emperors and Popes), and partly because Lorenzo the

Magnificent was more interested in collecting art and discussing Plato than

balancing the books. No Northern Rock hand out there.

Indeed, when things got tough politically his son, a very uncharismatic chip

off the old block, was booted out of Florence, their palace ransacked and its

treasures auctioned off by the state. The dynasty was back in power soon

enough.

But while their history includes corruption and tyranny, in their early banking

days the Medici also spent a good chunk of their personal fortune financing the

Florentine renaissance. Maybe if Fred Goodwin had been more of a Bill Gates, or

even a Maurice Saatchi, his huge pension payout might not have incurred quite

the level of public wrath.

Meanwhile, back at the Villa Farnesina the morning after that banquet, servants

of the Chigi household were seen winching up nets from the bottom of the River

Tiber to recover all that silver the guests had thrown in. Even the richest men

know excessive waste when they see it.