The Promise and Peril of Credit: What a Forgotten Legend about Jews and Finance Tells Us about the Making of European Commercial Society

Abstract

Representatives of all nations gather for the utility of mankind; there, the Jew, the Mohammedan, and the Christian behave towards each other as if they were of the same religion, and reserve the word “infidel” for those who go bankrupt.—Voltaire, letter VI, Lettres Philosophiques (1734)Voltaire's words about the London Royal Exchange, quoted by Francesca Trivellato in her important new book The Promise and Peril of Credit, represent pars pro toto a view of finance and trade—as peaceful, tolerant, antagonistic to the old segregations and brutalities of religion, and ultimately emancipatory—that entered the philosophical mainstream in the eighteenth century, that seems to at least partly form the foundations of liberal modernity, and that continues to shape the way we think about business and capitalism today (p. 139). Yet Voltaire himself was an anti-Semite who obsessed about the Jews and trafficked in old clichés about cunning Jewish merchants precisely in order to make his case for commerce as a vehicle of toleration. This and similar ironies or contradictions lie at the heart of Promise and Peril, which traces from the mid-seventeenth to the mid-twentieth century what Trivellato calls a “legend,” because it is both patently false (we now know), and was once widespread, that Jews in the Middle Ages or Renaissance invented the bill of exchange (and sometimes also marine insurance).