Networks in late-Medieval Florence
The economic activities and the social- and political networks of the Peruzzi family (1300-1343)
Today, in 2017, we live in a very globalized world. The world economy is integrated on a scale we have never seen before in the history of our beautiful planet. Big multinational companies are playing an important role in this integrated world economy and will probably become even more important in the near future. In the Middle Ages, there was no widespread globalization, however, we can see the emergence of so-called ‘super-companies’. Super-companies in the Middle Ages were no ordinary companies. They were ‘‘private profit-seeking organizations operating several lines of business in very large volume in multiple, widespread locations through a network of permanent branches.’’
I find the super-company phenomenon very intriguing. When people think of the Middle Ages they almost instantly think of poor farmers, and not of very large companies. This motivated me to start exploring this topic. After this first idea came the difficult task of choosing which super-company to analyse. I have decided to focus on the city of Florence because this wealthy city-state is land-locked, and therefore more interesting in my opinion than, for example, Venice. The fact that this city is land-locked has consequences for the economic activities of its inhabitants, because it changes the way in which they have to conduct their trading activities. For my research, I am exploring the networks of the so-called Peruzzi family, who are called, together with the Bardi family, the Rothschilds of the Middle Ages, in Late Medieval Florence. Why am I focusing on the Peruzzi family and their company? The definition of a super-company suggests that networks were very important for those super-companies. John F. Padgett and Paul D. McLean elaborate in their article ‘‘Economic Credit in Renaissance Florence’’ on the question if the economic networks of the Datini and Medici families were a reflection of their social and political networks. They argue that the political and social networks of the Bardi and the Medici are connected to their economic activities. In my research, I am going to elaborate on this question for the Peruzzi family in the period 1300-1343. But before I am going to elaborate some more on the Peruzzi family, and the results of my research, it comes in handy to write a little bit about my leading methodological framework.
Social network analysis (SNA)
Social network analysis is a relatively new way to look at historical phenomena. The method is interesting because it offers a new/different perspective on historical events. The main goal is to re-create and analyse networks of different kinds. Social network analysis is about relations. Social life is created by those relations and patterns which carry flows of information. Analysing those relations and patterns provides us with new insights about the practices of certain actors and their places in different social networks, and the way in which different networks are connected. |
There are some important terms that you need to know if you want to use social network analysis. Points in the networks are called nodes. The connections between different nodes are called ties and can be connections of, for example, kinship or trade contacts. The information that is transmitted between nodes are called flows. In the context of my research, it is important to elaborate, for a moment, on the concept of ‘multi-strandedness’. We can speak of a network being multi-stranded when it overlaps with other networks. Can we speak of multi-strandedness when we analyse the social- and political networks of the Peruzzi family in relation to their economic activities?
Who were they, and what was their social and political position?
Filippo and Arnaldo, sons of Amideo Peruzzi, were the members of the Peruzzi family who brought the family to prominence at the end of the 13th century. Arnaldo and his offspring were mainly concerned with commercial activities, while Arnaldo and his children were more attracted to the business of politics and warfare. The wealth and social status of the Peruzzi family was already increasing in the late 13th century, but the family would be at the peak of their power during the first half of the fourteenth century. They were an important force in Florentine politics during this period. Fifteen members of the Peruzzi family occupied administrative positions between 1284 and 1342 in the, by guilds dominated, political system of Florence according to the Online Tratte of Officeholders 1282-1532. This database contains information about who occupied political positions in this period. The occupation of administrative positions was considered an honorable and respectful job.
Filippo and Arnaldo, sons of Amideo Peruzzi, were the members of the Peruzzi family who brought the family to prominence at the end of the 13th century. Arnaldo and his offspring were mainly concerned with commercial activities, while Arnaldo and his children were more attracted to the business of politics and warfare. The wealth and social status of the Peruzzi family was already increasing in the late 13th century, but the family would be at the peak of their power during the first half of the fourteenth century. They were an important force in Florentine politics during this period. Fifteen members of the Peruzzi family occupied administrative positions between 1284 and 1342 in the, by guilds dominated, political system of Florence according to the Online Tratte of Officeholders 1282-1532. This database contains information about who occupied political positions in this period. The occupation of administrative positions was considered an honorable and respectful job.
Their economic activities
The Peruzzi company was a highly centralized and hierarchical company, with branches all over Europe and the Mediterranean. They had branches, for example, in Avignon, Barletta, Bruges, Sardinia, Cyprus, Genoa, London, Mallorca, Naples, Paris, Pisa, Rhodes, Sicily, Tunisia and Venice in 1335. All those branches were controlled by either a partner or an employee, which had to be accountable to the chairman of the company. The Peruzzi's also had representatives in places where they had no branches. The partners controlled the more political sensitive branches like Avignon, Bruges, London, Naples and Sicily for example, because those persons had more status and political experience. These political sensitive branches were in almost all cases also the more important branches in their economic network. Partners also managed the newly founded branches until they were up and running. Then an employee would take over, because setting up a new branch could be difficult and required experience. |
The main focus of the Peruzzi company was on transit trade. In doing so they connected the Mediterranean trading networks with the European trading networks. Figure 2 illustrates this in a nice way. Luxury products like spices, precious stones and fine fabrics from the Orient were traded in Europe for woollen products and silver. They also imported grain and raw materials from Southern Italy. Besides that, the Peruzzi's were also heavily involved in the banking business and the financing of governments. They were involved in the financial transactions of the Pope, dominated the financial administration of the Kingdom of Naples and loaned lots of money to, for example, the English Kings, not expecting direct re-payment, but expecting to receive political and commercial privileges, which they also got. That the Peruzzi’s had close ties with the Pope and the Kings of Naples isn’t really a surprise because they were political allies during the conflicts between the Ghibellines and the Guelfs in the thirteenth- and fourteenth centuries.
Conclusions
We can draw a few conclusions when we look at the ‘multi-strandedness’ of the social- and political networks with the economic activities of the Peruzzi company. The, by guild dominated, political system allowed for social control, fostering trust between the merchants and the citizens of Florence. This in combination with the respect that the merchants got for occupying important political offices had positive effects on the credit system in Florence. Because of this political system different super-companies, like the Peruzzi company and the Bardi company, didn’t hesitate to work together because they had the same commercial and political goals. We can also see overlap between the political network of the Peruzzi’s and their economic activities. First of all because it was very important for the Peruzzi’s to place partners at economic important branches in their network, because political expertise was needed there. They had to ensure good political relations with the local rulers. Their political alliances also intensified their trading activities. Finally, the Peruzzi’s also used their financial activities to obtain commercial and political privileges. We can conclude that there was overlap between the social- and political networks of the Peruzzi's and their economic activities.
We can draw a few conclusions when we look at the ‘multi-strandedness’ of the social- and political networks with the economic activities of the Peruzzi company. The, by guild dominated, political system allowed for social control, fostering trust between the merchants and the citizens of Florence. This in combination with the respect that the merchants got for occupying important political offices had positive effects on the credit system in Florence. Because of this political system different super-companies, like the Peruzzi company and the Bardi company, didn’t hesitate to work together because they had the same commercial and political goals. We can also see overlap between the political network of the Peruzzi’s and their economic activities. First of all because it was very important for the Peruzzi’s to place partners at economic important branches in their network, because political expertise was needed there. They had to ensure good political relations with the local rulers. Their political alliances also intensified their trading activities. Finally, the Peruzzi’s also used their financial activities to obtain commercial and political privileges. We can conclude that there was overlap between the social- and political networks of the Peruzzi's and their economic activities.
An interesting source:
Online Tratte of Officeholders 1282-1532
http://cds.library.brown.edu/projects/tratte/
Suggestions for further reading:
Apellániz, F. “Florentine Networks in the Middle East in the Early Renaissance.” Mediterranean Historical Review 30, no. 2 (2015), 125–145.
Goldthwaite, R. A. The Economy of Renaissance Florence. Baltimore: Johns Hopkins University Press, 2009.
Hunt, E. S. & Murray, J. M. A history of business in medieval Europe, 1200-1550. Cambridge, UK: Cambridge University Press, 1999.
Hunt, E. S. The Medieval Super-Companies: A Study of the Peruzzi Company of Florence. Cambridge: Cambridge University Press, 2002.
Najemy, J. M. ‘‘Guild Republicanism in Trecento Florence: The Successes and Ultimate Failure of Corporate Politics.’’ The American Historical Review, no. 84(1) (1979), 53-71.
Najemy, J. M. Corporatism and consensus in Florentine electoral politics, 1280-1400. Chapel Hill: University of North Carolina Press, 1982.
Padgett, J. F. & McLean, P.D. “Economic credit in Renaissance Florence,” The Journal of Modern History 83, no. 1 (2011), 1-47.
Online Tratte of Officeholders 1282-1532
http://cds.library.brown.edu/projects/tratte/
Suggestions for further reading:
Apellániz, F. “Florentine Networks in the Middle East in the Early Renaissance.” Mediterranean Historical Review 30, no. 2 (2015), 125–145.
Goldthwaite, R. A. The Economy of Renaissance Florence. Baltimore: Johns Hopkins University Press, 2009.
Hunt, E. S. & Murray, J. M. A history of business in medieval Europe, 1200-1550. Cambridge, UK: Cambridge University Press, 1999.
Hunt, E. S. The Medieval Super-Companies: A Study of the Peruzzi Company of Florence. Cambridge: Cambridge University Press, 2002.
Najemy, J. M. ‘‘Guild Republicanism in Trecento Florence: The Successes and Ultimate Failure of Corporate Politics.’’ The American Historical Review, no. 84(1) (1979), 53-71.
Najemy, J. M. Corporatism and consensus in Florentine electoral politics, 1280-1400. Chapel Hill: University of North Carolina Press, 1982.
Padgett, J. F. & McLean, P.D. “Economic credit in Renaissance Florence,” The Journal of Modern History 83, no. 1 (2011), 1-47.
Images
header image: echiner1 - originally posted to Flickr as Florence skyline
Figure 1: http://blog.cryptoiq.ca/?p=26
Figure 2: http://wps.pearsoncustom.com/wps/media/objects/2426/2484749/chap_assets/maps/atl_map8_2.html
header image: echiner1 - originally posted to Flickr as Florence skyline
Figure 1: http://blog.cryptoiq.ca/?p=26
Figure 2: http://wps.pearsoncustom.com/wps/media/objects/2426/2484749/chap_assets/maps/atl_map8_2.html
Thanks for reading! E. P.