MoneyMaths-1123 | Page 11

KniGhts thaT saY mo-neyYy
Enter the Knights Templar . Sometime around 1119 CE , Hugues de Payens and a small group of fellow knights formed the Knights Templar , in agreement with King Baldwin II of Jerusalem . Initially set up to keep pilgrims safe on their journeys , many historians believe that this military order actually founded the world ’ s first international banking credit system !
Possible routes from Europe to Jerusalem
So the Knights Templar were economists and bankers , and not actual knights ?
Not to begin with . They were actually
heavily-armed and dedicated to
war , with rules for EVERYTHING –
bad breath was banned , and you
weren ’ t allowed to wear lace-up
or pointy shoes . If you disobeyed
orders you could be flogged , or you
might have to eat your meals on the
floor for a whole year . There were
This doesn ’ t sound that ingenious ? I can buy anything from anywhere in the world with a few taps on a keyboard . Ed
Richard ’ s brother , King John ( yes , Robin Hood ’ s King John ) needed a safe place to store the Crown Jewels he chose the London Temple .
also strict rules against retreating
in battle , which meant the Knights
Templar were some of the most
feared soldiers of their day . They had a terrifying reputation . ( Hmm , they don ’ t sound the nicest blokes , ed ).
They probably weren ’ t . But they
did also come up with an ingenious
way to keep the pilgrims ’ money
safe . For example , a pilgrim from
London , England could deposit his
money in the London Temple . The
pilgrim would get a letter in return ,
detailing what had been put into the
Temple . They could then begin their
journey . Upon arrival in Jerusalem
( and assuming they survived the trip )
the pilgrim could swap their letter
for their money . This could also be
done at several different points over
the journey too , so when a pilgrim
needed access to more funds , they
could get it .
Yes , we may take international
banking and credit for granted
today , but in the 12th century
there were no telephones , no
computers , and no planes , trains or
automobiles , so a lot of trust was
involved . The Knights Templar ’ s
method was not quite an ATM , but
a lot better than trying to stick all
your gold coins in a box or noisy
pouch and hoping nobody notices
as you wander across their land .
The banK thAt lIkes to Say yEs
The Knights Templar ’ s customers
soon included most of the rich and
famous people in Europe . King
Richard I , who ruled England from
1189-1199 , sold Cyprus to them to
fund his battles . And he used them
to keep his own valuables safe when
he was away at war . When King
As their reputation for fighting and banking grew , the Knights were able to gather incredible sums of money and power . For ‘ poor knights ’ that were supposed to live in poverty for their faith they were actually some of the richest people in Europe , owning huge amounts of land that , at one point , even included an entire island !
At the begining of the 14th century , when Jerusalem was once again under Muslim control , the Knights no longer had a clear purpose . Lots of powerful people were fearful of the wealth and power the Templars had and those people were keen to get rid of them . In 1312 , the pope ordered the Templars to disband after the leaders had been arrested and tortured . The last grandmaster of the Templars , Jacques de Molay , was executed in Paris in 1314 .
Words : Jonathan Pavey . Illustration : Jake Alexander
11