Capitalists Origin - Trade & Commerce, A Natural Part of Society
My first brokerage experience was in high school as an intern where I read manuals, did technical analysis charting, and delivered a solution for an exercise asked of me to answer. That company was where I first began work later on. That company’s name was Smith Barney, Harris Upham.
A few days ago, I was streamlining in my storage unit and found an article that I took with me to read later. The article was taken from “Focus,” issue January 1980. The article title was “Background: Tracing Smith Barney’s Roots.”
The initial part of the article, I was taken with, for it discussed the capitalist earlier beginnings. This aspect is what I will be sharing in this article. I will be sharing quite a few quotes which provide a sense of clarity and depths unknown to me previously.
“Egyptian traders of 5000 BC exchanged papyrus writings for goods as they sailed up and down the Nile. Mesopotamian merchants of 3000 BC formed trading companies and wealth in what we know as commodities futures. And in 2000 BC Babylonian tradesmen doing business in the temples loaned out silver, with promissory notes written on clay tablets. The capitalists of classical civilizations were the money changers, the first bankers. In the marketplaces, the agora in Greece, the forum in Rome, prime locations were allocated to them - and, as the corner spot got the most traffic, we see the origin of the phrase, cornering the market.” (Page 12)
“The growth of trade and commerce in Europe created the medieval fairs, movable marketplaces lasting weeks at a time, with the peripatetic bankers providing the currency exchange. By the 13th century, the Knights Templars in Paris and London were safeguarding vast sums of money, issuing documents listing the monies deposited, which then circulated freely, much as commercial paper does today. So, paper representing money existed, the rich could invest directly in a partnership or back a craftsman. Wealthy lawyers, doctors and merchants in London could buy shares in joint-stock companies - the earliest known was set up in the 1500s, called the Russia Company, with the full title of “The mysteries and company of the Merchants adventurers for the discovery of regions, dominions, islands, and places unknown.” (Page 12)
“By 1695 there were at least 140 joint-stock companies in England alone, including the famed Great East India Company. The London goldsmiths of the 1600s had become miniature banks; the merchandise brokers were the intermediaries between the buyer and the seller. But there was no central marketplace where investments could be made on an organized basis. Then in 1693 the English government had to raise some money to carry on a war, and a lottery loan answered the need - 100,000 shares at £10 each and paying 10% interest. Building on the success of this offering to the public, the government established the Governor and Company of the Bank of England for £1.2 million. Now brokers had something to buy and sell - stock in the East India and Russia companies and in the Bank of England - shares in private industry and in government securities, exactly what brokers have today.” (Page 12)
What struck me was how basic and practical this area of society was. Comparing to some viewpoints and shared on social media of recent day, there seems to be disdain for aspects of present day commerce that find financial opportunities. There also seems to be certainly extreme views aired with making money in sometimes quite inhuman ways.
In the long past, often only the higher level castes in society had the opportunity to really participate in the investment making way of exchanges and through privately made investments or in joint financial partnerships. Where as in the more recent present, the people of most societal levels have experienced to some capacity investing in public or private investments.
Depending on the peoples’ circumstances and the level of difficult financial circumstances and freedom to choose, many would often determine the level of financial multiplicity, i.e. increasing one’s resources through some passive style of investing and in direct action of trade as the mercantilist did. There were some ads in 1981 that actor John Houseman had participated in for Smith Barney. The famous, memorable quote he had used in the ads, was: “They make money the old fashion way. They earn it!”
The United States economy has developed and thrived with that mentality of being. Those that came to and lived in the United States worked hard and were able to often make success from the opportunities to make a living and to improve their and their families’ circumstances.
The U.S. allowed freedoms such as freedom of speech, along with choice of independent action when it came to community. It had overall encouraged growth and development of its people. The competition often encouraged new developments in a variety of industry. In more recent times, education had been changed such that the full force of the changes did not add to the strength of the nation. In fact, it has appeared to add to the strength of other nations in comparison with the United States. We in the U.S. are in another period of change where there are visions for the future, and frameworks are being designed and implemented by what seems like an unusual administration where there is hope. Often there are dissenters when change is occurring, especially great change, versus in small increments.
We in the United States have been blessed for the gifts of opportunity, self development, freedom of speech, and support of family life. Making the most of the opportunities while keeping in balance the change of technology development and human rights overall is important to the strength of our land.
Natural commodities in the United States have also been a blessing for those living in the United States. It well supports its inhabitants. Commodities have been a part of survival and early development of civilization. The AI development also requires use of commodities. So natural commodity types may remain the same, yet its uses can be seen in an expanding range of products.
Trade and commerce outside the United States appears to be becoming more balanced between the United States and other countries. Thus the capitalist component remains involved with the international trade, yet we as a country are starting to support those of the United States more fully. Certainly there are many complexities to capitalism and to international trade, which I am not addressing in this essay. There is much yet to do to support the United States citizens and it is important to value the U.S. citizens despite all the influx of newcomers to the U.S., particularly in the previous 4 years and a different administration. Vigilance and desire to maintain a higher level of humanity is critical to the strength and richness of the United States. I have faith and vision, along with keeping in touch with what is going on daily in the United States as best as I am able.