ANCIENT TIMES in .NET

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already highly advanced, complex, and mature when their recorded history began. Long ages of development must have intervened between the first primitive cattle economies and the first historical societies of Mesopotamia, Egypt, Greece, and Rome. In fact, some of the characteristics and customs of the cattle economies of modern times were never known by the prehistoric ancestors of these peoples. Productive loans in kind, however, were certainly a survival. We shall now find history beginning with an elaborate effort to regulate the complex relationship between debtor and creditor.
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MESOPOTAMIA: SUMER, BABYLONIA, AND ASSYRIA
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BACKGROUND This historical era may be divided into four parts: (a) the earliest recorded Sumerian history, circa 3000 B.C., down to the first Babylonian dynasty, circa 1900 B.C.;* (b) the Babylonian Empire, 1900 B.C., down to the period of Assyrian domination, 732 B.C.; (c) the period of Assyrian domination of Babylonia, 732 625 B.C.; and (d) the Neo-Babylonian Empire, 625 539 B.C. Thereafter followed Persian rule, 539 333 B.C., and later the Hellenistic period. In ancient Sumer in earliest times barley was the medium of exchange for most transactions. In this rich agricultural region grain continued throughout these centuries to be a standard of payment and repayment. (17) However, even before 3000 B.C., ingots of copper and silver were also exchanged. There were two standards of value: grain and silver. Silver was used mainly in the town economies that developed in Mesopotamia, while grain was used in the country. Their relative values varied and this led to frequent state intervention to provide rules for exchange and repayment. There was no coined money until the first millennium B.C.; payments in metal were by weight. Many documents dealing with property and credit have come down to us from the Sumerian period. There was no sharp break with the past at the beginning of the Babylonian Empire. Many of the financial customs of the early Sumerians were codified and perpetuated in the Babylonian Code of Hammurabi (circa 1800 B.C.).
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ANCIENT TIMES
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In Sumer, property in land was vested in individuals and in social groups, such as temples. (18) Transfers and loans were carefully recorded in legal documents which were witnessed before officials and deposited in temples. This practice was already far ahead of the primitive customs of modern tribes. Deeds of sale of land have been discovered which date from before 2800 B.C. The law then restricted the sale of private property in favor of the family; in principle real property could only be alienated from the family by debt. Uncultivated land was at the disposal of the first occupant; he, however, had to clear it, irrigate it, and farm it. The Code of Hammurabi regulated the terms of ownership of land, the employment of agricultural labor, civil obligations, land rental, credit, and much besides. Creditors must wait until after the harvest before pressing a farmer for repayment. Crop failure caused by storm or drought served to cancel interest due on a land loan for that year. Land could not only be hypothecated at interest, but could also be leased, usually for three years. Rent was payable sometimes in produce and sometimes in metallic money. Town houses as well as farms might be hypothecated. Owing to the scarcity of wood, doors were rare and were not considered part of a house but a separate commodity separately salable and sometimes separately salable and sometimes rately hypothecated for loans. The Code even fixed the fees of the architect and made him responsible for replacing bad construction and liable even to pay with his life if the owner were crushed in the ruins. Sometimes the holder of a loan on a house came to live in the house in lieu of interest. From early times trade played an important part in Mesopotamian life. This was partly due to the strategic location of the country on navigable rivers midway between east and west; it was also due to the necessity of importing a great number of primary materials, such as wood. (19) When a merchant traded with distant countries, he formed a sort of share-partnership with a commercial traveler. Commercial transactions were carefully regulated by the Code. Exact accounts had to be kept; negligence was penalized; the division of profits and provision of capital had to be spelled out in writing in advance. Partners did not necessarily contribute capital; they might contribute only their credit and jointly borrow the whole sum needed. Partnerships were known in ancient Sumer long before the Code. From early times down to the time of the Persian Empire, a span of thousands of years, this legislation on credit was remarkably stable. (20) Loans without interest of consumable commodities were recognized and they could, but need not, provide a penalty for nonpayment. Such penalty rates are common throughout history and must be sharply distinguished from contract rates of interest. The Code also recognized loans at interest, both loans of silver and loans of grain, secured and unsecured. A maximum
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