Genoa was the proud rival of Venice. Founded by the Romans before the Christian era, Genoa flourished as a commercial emporium from the beginning. It had a spacious harbor, from which it sent timber, wool and earthenware to other parts of Italy in exchange for wine and oil. After the fall of the Roman Empire, Genoa set up a republican form of government and in the tenth century built a navy with which it began to reach out for a share of the Mediterranean commerce. It established a prosperous trade with Sicily, the north coast of Africa, and the southern coast of France. The islands of Corsica and Capraja became Genoese colonies, and an overland trade was established with Flanders and Germany. Like the other Italian cities Genoa profited by the Crusades, for in return for the help rendered by it to the crusaders the republic was granted a strip of Phoenician territory and various privileges of trade in Syria, which gave it a valuable portion of eastern trade, and enabled the republic to eventually get a firm foothold in Greece and Asia Minor. With a flourishing commerce, the harbor of Genoa was constantly filled with a forest of masts; her commercial exchanges were only second to the Rialto of Venice in size and importance and her marble palaces gave evidence of her increasing wealth. The growth of Genoese commerce and influence aroused the jealousies of the other republics of northern Italy, especially Venice and Pisa, and they sought by every means in their power to limit her ambition. From the eleventh to the end of the fourteenth century Genoa was almost constantly at war with Venice, thus wasting the possibilities of both republics in domestic broils and interminable rivalries. They first came into serious conflict when the merchants of Genoa attempted

Commerce of Genoa to obtain a share of the trade of the Grecian Archipelago and Black Sea Ports. Finally in the latter part of the thirteenth century the Genoese triumphed over the Venetian fleet, and in the treaty of peace which followed Venice surrendered to Genoa her commerce in the Black Sea, and her colonies and agencies which had been planted there.

Genoa possessed but few industries of her own, her commerce consisting chiefly of the exchange of the productions of the East with those of the West, taking chiefly cloths and pottery from France and linen and leather from Germany to the east, and bringing from the Black Sea and other eastern ports fine cloths, spices, silks and ivory. However, near the close of the twelfth century, the Genoese had plundered two Moorish cities in Spain, from which they derived the art of silk manufacture, and so successful did the industry prove, that silk became a staple manufacture among all the Lombard republics, and the cultivation of mulberry trees was enforced by their laws. Woolen goods were also manufactured by the Genoese to a considerable extent.

Usury, or lending money on interest, was regarded as a crime by the theologians of the middle ages. This strange prejudice against one of the most useful and legitimate branches of business continued for hundreds of years, and although finally eradicated, had its effect upon legislation in modern times. The trade in money, and indeed a large part of the inland trade in general of the Italian cities, had fallen into the hands of the Jews, who were noted for their usury. They were not molested by the clergy, being regarded as infidels, and they had no conscientious scruples themselves against usury, since the Jewish law permitted them to charge usury against Gentiles.* The rates of interest were ten to fifteen per cent, per annum. At Verona in 1228 the rate was fixed by law at twelve and one-half per cent; at Modena in 1270 it seems to have been as high as twenty per cent., and in France and England still more oppressive. The republic of Genoa, towards the end of the fourteenth century when it had grown wealthy, paid from seven to ten per cent, on its outstanding obligations. The high rate of interest generally during this period was owing partly to risks, business being hazardous on account of inefficient laws, and also to the fact that profits in business were very large. The Venetian merchants are said to have cleared never less than forty per cent, profit on their commercial transactions, and since Genoa and the other Italian cities exercised monopolies we may safely assume that their profits were enormous. In the last part of the thirteenth century the bankers in the Italian cities and those of the south of France took up the business of remitting money by means of bills of exchange, and charging interest on loans. A distinction was then made between moderate and exorbitant interest, and the utility of negotiable bills of exchange was so great that gradually the prejudice against usury (interest) wore away, and the Lombard usurers established themselves in every country.

*Unto a stranger thou mayest lend upon usury. But unto thy brother thou shalt not lend upon usury. Deut. XXIII.