The Origins of Modern Banking Are Intertwined With an Ancient Military Order

The world is currently fixated on the internationalpublic recognized the special relationship they enjoyed
credit crisis and the role banking has played in thiswith the clerical hierarchy of the Church.
debacle. We take it for granted that commerceMany pilgrimage makers came to depend on the
flows quickly and accurately across borders andKnights Templar to hold their valuables in safekeeping
frontiers. A resident of Maine can purchase a tank ofas they made the difficult journey. The order created
gas at home, or in Italy with the same credit card.secure safe storage facilities at strategic locations
The purchase will be accurately debited to theiralong the most used routes. They developed a type
account, their credit limit will be adjusted and theof written chit that verified that they held certain
merchant will receive an electronic transfer of themonies and valuables owned by the bearer. Upon
charge into their account almost simultaneously. Thisarrival in the Holy Land, the bearer could visit a
type of commerce happens many millions of timesKnights Templar outpost, present their receipt and
each day and we take it's simplicity for granted.receive monies, bullion or goods in kind, the equivalent
The history of the rise of organized banking is a bitof that left behind in the order's care.
more plodding and evolves from a most unlikelyThis was the first form of bank cheque and was
source. Today our knowledge of the Knights Templarprobably the earliest form of organized international
is garnered mostly from popular culture such as thebanking. The system evolved as the Knights Templar
Indiana Jones movies. The history of this iconicgained vast new riches, even though they were still
fighting force, and their evolution into the firstvowing to live a life of poverty. Previous to their
international commercial group of the middle ages isdevelopment of rudimentary banking products most
as amazing a tale as can be told in any fictional movietrade was accomplished by crude barter. They
or novel.became the richest entity in the world at that time
The Knights Templar was formed after the initialand began to suffer the increased scrutiny of their
Christian victory in the First Crusade to takehistoric protectors in the Catholic Church.
Jerusalem from the Muslims in 1099. Pilgrims from allBy the 14th century, the church moved to disband
over the Christian world wanted to make thethe Knights Templar and martyred many that were
pilgrimage to Jerusalem and the Holy Land. However,captured. The order became a secretive underground
travel at that time was exceedingly dangerous. Thesociety and rumors of their activities and continued
Knights Templar was first organized as a monasticexistence are legend to this day. The locations of the
order to protect the pilgrims as they traveled. Theylost gold, silver, jewels, art and religious artifacts that
took a strict vow of poverty.the Knights Templar acquired and hoarded in their
Over the next 200 years the order flourished andmany adventures is also the stuff of fables and lore.
developed into a renowned fighting force. With theirThe lost Holy Grail, and all of the fabulous tales
sturdy mounts, white hooded tunics displaying theattached to this famed relic from the Last Supper, is
Red Cross, and shiny armor, they lead the way intooften connected to the Knights Templar.
numerous battles against the enemies ofThe commercial activity that the simple, novel
Christendom. The vow of poverty was strictlycreation of a system for verifying bank guarantees is
enforced, but many royal and noble families deliveredactually the Knights Templar's greatest contribution to
their sons to the Knights Templar to curry favor withmankind. This simple transactional device has proven
the Papacy of the Catholic Church.far more valuable historically than their military
The Knights Templar enjoyed favored status withconquests and reputation for living pious lives. It is
popes and archbishops from all over Europe andcertainly not what they are best known for. But it is
North Africa, for their reverence, gallantry andan invention that has positively effected commerce
honesty. They were often rewarded with alms,and productivity to this very day.
farms, lands and livestock. Their power grew as the