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Readings in Protection Rent and Violence-controlling Enterprises
Frederic C. Lane
State University of New York Press Albany
Page ii
Published by State University of New York Press, Albany
1979 State University of New York
All rights reserved
Printed in the United States of America
No part of this book may be used or reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in critical articles and reviews.
For information, address State University of New York Press, State University Plaza, Albany, N.Y., 12246
Library of Congress Cataloging in Publication Data
Lane, Frederic Chapin; 1900 Profits from power. Includes bibliographical references. 1. Economic historyAddresses, essays, lectures. 2. ProfitHistoryAddresses, essays, lectures. 3. Power (Social sciences)Addresses, essays, lectures. I. Title. HC12.L35330.1'679-13860 ISBN 0-87395-403-3
Page iii
Contents
Introduction
1
1 National Wealth and Protection Costs
12
2 The Economic Meaning of War and Protection
22
3 Oceanic Expansion: Force and Enterprise in the Creation of Oceanic Commerce
37
4 Economic Consequences of Organized Violence
50
5 Meanings of Capitalism
66
6 Public Debt and Private Wealth: Particularly in Sixteenth-Century Venice
72
7 The Role of Governments in Economic Growth in Early Modern Times
82
8 Economic Growth in Wallerstein's Social Systems. A Review Article
91
Page iv
Acknowledgments
For permission to reprint articles in this volume, grateful acknowledgment is made to the publishers named below.
THE JOURNAL OF ECONOMIC HISTORY. "Economic Consequences of Organized Violence," Volume XVIII, December 1958, Number 4. "Meanings of Capitalism," Volume XXIX, March 1969, Number 1. "The Role of Government in Economic Growth in Early Modern Times," Volume XXXV, March 1975, Number 1. "Oceanic Expansion," Volume X, 1950.
COLUMBIA UNIVERSITY PRESS. "National Wealth and Protection Costs" from WAR AS A SOCIAL INSTITUTION: THE HISTORIANS PERSPECTIVE (1941) by Jesse Clarkson and Thomas C. Cochran (editors).
CAMBRIDGE UNIVERSITY PRESS. "Economic Growth in Wallersteins Social Systems" from COMPARATIVE STUDIES IN SOCIETY AND HISTORY, Volume 18, Number 4, October 1976.
PRIVAT, EDITEUR. "Public Debt and Private Wealth: Particularly in Sixteenth Century Venice," from HISTOIRE ECONOMIQUE DU MONDE MEDTERRANEEN 1450-1650: ME'LANGES EN LHONNEUR DE FERNAND BRAUDEL (1913).
Page 1
Introduction
Of the many sources of power, these essays deal with only one: physical violence and the threat of violence exerted by some men on others. Although such power is at the foundation of well established legal systems, it is most obvious in periods of war or disorder. At the time of the events referred to in the first of these essays, power came not from the muzzle of a gun, but from the edge of a sword, the point of a spear, or the bolt from a crossbow. On the high seas power of that kind was not monopolized by governments; it was organized by competing enterprises that might be called private enterprises except that the line between private and public was then blurred. Later differentiations between political and economic enterprises and among economic institutions, although they have clarified how actions through free markets affect distribution, have somewhat veiled the effects of power on the distribution of wealth among nations and classes The use of organized violence is more obvious in the earlier period. Analysis of its use then suggests effects that may be hidden in the modern world.
The efficient use of power in that earlier period brought wealth not only to those for whom the organization of violence was a primary concernsuch as slave raiders, pirates, tribute-takers, and tax collectorsbut also to many merchants. Why did some groups of merchants prosper more than others, at some times and places? Why those of Venice more than those of Genoa? Or vice versa at other times and places? Why was one commercial route more profitable than another? Specifically, why was the route from Europe to India around Africa more profitable than the route through the Red Sea? Or was it really more profitable? Profitable to whom?
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