"... make clear the intricate familial and economic relationships between the patrician politicians who ran the government, the patrician traders whose economic activities made possible the armies and argosies upon which the reputation and viability of the city-state depended, and the bankers, who were either patricians or wealthy members of the citizen class and whose funds provided emergency loans to bridge the gap between what was collected in taxes and what was needed by the government to pay its mercenary forces."The editors refer here to a 1990 book of Felix Gilbert "History: politics or culture? Reflections on Ranke and Burckhardt" and one of 1966 by Frederic C Lane, "Venetian Bankers, 1496-1533."
Then they give example of what some of these intricate relationships entailed, by documenting Sanudo's take of the drawn-out fall of one of the oldest family banks in Venice, that of the Garzoni.
On January 29, the doge had called the senior savi di Consiglio into the Ducal Palace and explained that the Garzoni bank had come to him the night before pleading the bank was without funds. It was important that word not get out to prevent a greater rush of funds but all day people were busy moving their money and liquid assets. The Signoria could not help as the state had already committed too much to fighting two wars.
So procurators, other banks and wealthy families were called on discreetly to help out. Sanudo himself saw money in sacks being carried to the doge's palace from the bank of ser Alvise Pixani and mentions funds also came from those of the Lippomani and Agustini. [pp. 235-36]
Editor's note: "The Garzoni were not popular at this time. Rumors circulated that for four years they had been buying silver at a aprice above the Mint's ratio to increase their specie reserves, and they had lost 30,000 ducats in that speculation. It was said that they had allowed their relatives heavy overdrafts and that a Florentine had been permitted to withdraw 45,000 ducats, although Venice was at war with Florence at this time. Yet the Garzoni were given safe-conduct by the Venetian government for a year for their persons and their goods, lest they be seized by angry creditors, an action that did little to reassure those same Venetian creditors." [pp 236-37]
On February 1, 1499 the Garzoni were late to come to the bank and a crowd grew all morning at Rialto as more and more people came to withdraw their money. "Therefore," Sanudo says, "everyone became suspicious and there was much grumbling throughout the city." Sanudo himself, because he had prior knowledge of the problem, was able to secure a 500 ducat legacy through an intermediary, his own brother. He thus gives evidence he would not lose out, as so many would in this instance.
Sanudo blames four wars - in 1499 they list the wars with Ferrara fifteen yrs earlier, the Austrian war of 1497, the French Invasion of Italy, and a current war with Florence- as well as extravagant purchases on credit for purchasing Monte Nuovo bonds, building of homes, and even luxurious dress for these "... financial straits." [p. 237]
This story would continue in several directions and is summarized here.
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All quotes as Sanudo Diaries or Editor's notes from Venice, Cita Excellentissima, Selection from the Renaissance Diaries of Marin Sanudo translated by Linda L Carroll, editors: Patricia H LaBalme and Laura Sanguineti White, published by Johns Hopkins University Press, 2008
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