London creditors and the fifteenth-century depression

What is it about?

This article examines the different forms of credit extended by medieval London merchants, their average values, repayment periods, terms of repayment and penalties for non-payment. It examines changes over time, 1390-1500. And it established that London creditors both rationed credit and tightened up repayment terms during the economic depression of the fifteenth century.

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Why is it important?

This article goes some way to settling a debate regarding the causes of the fifteenth-century economic depression in England. In the early 20th century historians blamed the depression on demographic collapse (following the Black Death) and war. Alternatively, some prominent later twentieth-century historians have argued that the depression was caused by a shortage of coinage which crippled trade and led to a widespread withdrawal of credit by merchants, especially in London, England’s financial and trade capital. This article resolves this debate, in the main, by presenting robust evidence which establishes that London creditors, aware of a shortage of coinage, both rationed credit and tightened up repayment terms during the economic depression of the fifteenth century. Thus, the English depression is best attributed to a shortage of coinage.

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