The Wheels of Commerce (Civilization and Capitalism: 15Th-18th Century -Volume 2) [Paperback]

Fernand Braudel (Author), Sian Reynold (Translator)

Book Description

ISBN-10: 0520081153 | ISBN-13: 978-0520081154 | Publication Date: December 23, 1992

The subject of The Wheels of Commerce is the development of mechanisms of exchange--shops, markets, trade networks, and banking--in the pre-industrial stages of capitalism.

Editorial Reviews

From Library Journal

Originally published in the early 1980s, Civilization traces the social and economic history of the world from the Middle Ages to the Industrial Revolution, although his primary focus is Europe. Braudel skims over politics, wars, etc., in favor of examining life at the grass roots: food, drink, clothing, housing, town markets, money, credit, technology, the growth of towns and cities, and more. The history is fascinating and made even more interesting by period prints and drawings.
Copyright 1999 Reed Business Information, Inc.

Review

"Magisterial, compelling, superbly written. . . . An immensely readable narrative of the emergence of capitalism, of the societies that it shaped, and of its profound ongoing effect on human character." -- Richard E. Nicholls, Philadelphia Inquirer

"The intricacy of detail and boldness of hypothesis in this book are indisputable, and if one is to do more than skim it, it demands and repays enormous attention. . . . The lavish illustrations are superbly well chosen. The pictures show the endless variety of commercial dealings of which humans are capable." -- Jonathan Spence, New York Times Book Review

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Product Details

• Paperback: 670 pages
• Publisher: University of California Press (December 23, 1992)
• Language: English
• ISBN-10: 0520081153
• ISBN-13: 978-0520081154
• Product Dimensions: 9 x 6.6 x 1.4 inches
• Shipping Weight: 2.6 pounds (View shipping rates and policies)
• Average Customer Review: 4.9 out of 5 stars  See all reviews (10 customer reviews)
• Amazon Best Sellers Rank: #357,737 in Books (See Top 100 in Books)

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35 of 36 people found the following review helpful:

5.0 out of 5 stars from lifestyle, to systems, June 4, 2001

By 

Robert J. Crawford (Balmette Talloires, France) - See all my reviews
(TOP 1000 REVIEWER)    (REAL NAME)   

This review is from: The Wheels of Commerce (Civilization and Capitalism: 15Th-18th Century -Volume 2) (Paperback)

Historians, they say, are either lumpers or splitters: the former seek to make generalizations while the latter seek to refute and refine them. Braudel strikes a balance between these approaches, at one time examining the economic point of view (and related theoretical controversies, such as the ideas of Schumpeter on innovation), while searching for historical examples that support or obliterate them. He is a true master scholar.

This volume adds to the first, moving from living standards to the establishment and functioning of trading and banking systems, both by capitalists (holders of sufficient resources to manipulate markets) and the merchants and craftsmen who operated within these markets. It is a crucial distinction that demonstrates how simple-minded the ideological argument of "free markets" can be: the rich can and do design economic systems to function to their advantage. You follow the development of international trading networks by Italians, Jews and Armenians; the evolution of banking and the handling of paper money; and even the influence of social hierarchies on economic growth.

While Braudel concentrates almost exclusively on Europe in this volume, which lessens the universality of his approach, it is utterly fascinating from page one. The economic systems he analyses were somewhat incomplete, though evolving rapidly. An additional limit to his approach is the exclusive focus on econimic life. At times, he views the building of chateaux and the commission of great works of art from the Reanassance to the 19C as a reflection of the lack of wealth-generating investment opportunities during a time of economic revolution!

And that is just a few of the issues covered. Each section of the book is like an essay on some basic economic notion. As such, the book assumes a great deal of historical knowledge in the reader, though Braudel often explains what he refers to briefly. For me, this added to its appeal and density, but it is often hard going. However, the book is leavened by wonderful and fascinating illustrations, which eases the task of getting through it at times.

Highly recommended.

19 of 19 people found the following review helpful:

4.0 out of 5 stars Very Annalesesque, June 8, 2006

By 

Collin S. Garbarino (Texas) - See all my reviews
(VINE VOICE)    (REAL NAME)   

This review is from: The Wheels of Commerce (Civilization and Capitalism: 15Th-18th Century -Volume 2) (Paperback)

In The Wheels of Commerce, Fernand Braudel deftly blended history and economics with the result that neither suffers. His goal in this book, the second volume in his Civilization and Capitalism, 15th-18th Century, was "to analyse the machinery of exchange as a whole, from primitive barter up to and including the most sophisticated capitalism" (21). In the process of examining this machinery of exchange, Braudel also proposed an ambitious thesis concerning the origins of capitalism. The book itself is a monumental work, an impressive combination of statistical analyses and illustrations from primary sources.

Braudel's first two chapters, "The Instruments of Exchange" and "Markets and the Economy," investigated the role of circulation. In chapter one, he concentrated on the mechanisms by which goods (and money) were traded. Braudel explained that markets and shops were at the bottom of the world of commerce. Markets took place once or twice a week, and shops were open everyday. Fairs, the wholesale markets, were on the higher level. Participants traded large amounts of goods and settled their accounts at the end. Braudel pointed out the importance of fairs in the development of capitalism: "The fair itself created credit" (91). If one merchant had a negative trade balance with another merchant, he would either offer a bill of exchange (a promise of payment on another exchange) or defer payment with interest until another fair. Additionally, these bills of exchange could be sold to a third party if necessary, introducing speculation. The trading mechanisms of the fair were eventually consolidated into the large exchanges of cities like Amsterdam and London, and eventually these exchanges grew into the stock markets. Chapter two investigated the manner in which merchants engaged in trade. Braudel stressed the importance of trading circuits and the use of paper (especially in the form of bills of exchange) for profitability. One of the key ideas in this chapter is the role of distance on price. Price was not set solely by supply and demand, but was also affected by the distance the product had to travel. His insight into system was helpful. "Any capitalist market has a series of links in a chain, and somewhere near the middle there is a point higher and more remunerative than the rest" (193).

The next two chapters, "Capitalism Away from Home" and "Capitalism on Home Ground," dealt primarily with issues regarding production. Chapter three dealt with what could be considered the lower world of production. One of the key issues that Braudel explicated was the role of fixed and circulating capital. The fixed capital that was invested in production was tied up in equipment and other items, while the circulating capital was more liquid and included wages. Braudel also investigated the role of land in production and capitalism, noting: "The great landowner was not a capitalist, but he was a tool and a collaborator in the service of capitalism" (271). He also focused on the peculiarities of production in these pre-industrial years. In chapter four, Braudel investigated the higher world of production. His explanation of the development of banking practices, which would fund production, was illuminating, as was his discussion on the development of companies from private family business to joint stock companies.

Though the book focused on capitalism's development in Europe, Braudel integrated discussions on other geographical locales as well. Braudel did not present Europe as arriving at its capitalist system in a vacuum. He noted the role that other cultures had in aiding the formation of the European model, not just through trade, but also through Europe's adoption of foreign innovation. However, Braudel surprisingly downplayed the importance of double-entry book-keeping to the emergence of capitalism. He asserted that the practice did not spread quickly and was not universally adopted, giving notable examples (574).
Even though successful merchants were found all over the world during this time period (especially in Islamic lands that provided them with a favorable status), full-blown capitalism developed first in Europe. Braudel attempted to provide an explanation as to why this was the case. His thesis regarding this matter is the raison d'tre of the book. Braudel believed that three conditions were necessary for the emergence of capitalism. The first was a "vigorous and expanding market economy" (600). Braudel noted that many regions fulfilled this qualification. The second necessity, which hindered many prime candidates, was a strong hierarchy was necessary. This hierarchy encouraged the accumulation of wealth. Landed positions were not hereditary in India, China, and Islamic lands making the nobility's position precarious and the accumulation of wealth difficult. Braudel only mentioned two areas that fulfilled these first two necessities: Europe and Japan. However, Japan closed herself off to world trade, the third necessity. Braudel noted, "Long-distance trading ... was the only doorway to a superior profit level" (601). Braudel's case is a compelling one that must be addressed by anyone investigating this topic.

The Wheels of Commerce is immense, but immensely readable. Braudel portrayed for his reader a heady, exciting Europe, one in which the prime goal was to spend money faster than it could be made. However, even during his descriptions of the dizzying pace at which money was circulated, Braudel did not lose sight of his objective. His scope was large, but he remained precise in both style and purpose, obviating the befuddlement of the layperson (which I confess to being). The book is a balanced work, exhibiting a variety of historical methods. Braudel made extensive use of statistics and mathematical models (the book contains a plethora of charts and tables), but he also included numerous narratives regarding business practices of the time (demonstrating an astonishing knowledge of the primary sources). Because of the attention with which he supported his claims, historians of all stripes can admire this book.

Finally, the student of economic history should not overlook one of the finer aspects of The Wheels of Commerce. This book contains over 120 excellent illustrations from the 15th-18th centuries. The pictures, which vary from woodblock prints to oil paintings, depict the lives of those involved in commerce at the time. Not only do the abundant illustrations make this book a more attractive read, but also they provide the book with a certain level of completeness, giving the reader more tools by which he or she can comprehend the emergence of capitalism in Europe

9 of 9 people found the following review helpful:

5.0 out of 5 stars Capitaliism, trade and globalization explained, May 16, 2006

By 

Charles Hugh Smith (Berkeley, CA United States) - See all my reviews

This review is from: The Wheels of Commerce (Civilization and Capitalism: 15Th-18th Century -Volume 2) (Paperback)

There are various pretenders to the throne of explaining globalization, such as Thomas Friedman's recent The World Is Flat, but all such efforts seem shallow and pallid compared to the masterwork of the genre, Fernamd Braudel's trilogy Civilization & Capitalism, 15th - 18th Century (The Structures of Everyday Life (Volume 1), The Wheels of Commerce (Volume 2)
and The Perspective of the World (Volume 3)

I do not lightly suggest tackling almost 1,800 pages of reading, but there is simply no substitute (short of a master's degree) if you aspire to a true understanding of global trade's role in the social, political and economic history of our world. It is not a boring read--anything but, for Braudel's depth of research, breadth of knowledge and his appreciation for the limits of current scholarship are matchless. Where authors like Friedman incautiously grind whatever axe they set out, drawing upon work which supports their thesis, Bruadel is ever-cautious about drawing hard-and-fast conclusions from the data he has culled from archives' dusty pages.

What Braudel reveals is a world which has been disrupted by far-reaching trade for hundreds of years. Capital has flowed across the great oceans of our globe for far longer than most people realize, destroying local industries in favor of distant ones in the process. It is impossible to summarize such a rich, vast work, but reading even one of these volumes will give you a deep insight into the long history of globalization, and how entire industries and financial centers have been displaced time and again in the Arab Levant, in Asia, and in Europe. You will also come to understand the rise of European economic dominance, and how it cannot be so neatly attributed to guns, steel and germs, as appealing and powerful as Jared Diamond's thesis may be.

Braudel does not work to create over-arching explantions so much as present the archival facts he so assiduously assembled. (The books were written in the late 1970s; Braudel died in 1985 at the age of 83.) For example, he shows that prosperity, since at least the 1400s if not earlier, is inevitably found in those cities and regions where prices are highest. It is counter-intuitive at first--since shouldn't money go farther where prices are low?-- but the same is obviously true of our era. The most prosperous nations are those with the highest costs, and the poorest are those where prices are lowest.

At a minimum, this sheds light on the centuries-old exodus from rural to metropolis, and on the nature of prosperity itself. I recommend these volumes not just for their vast erudition but for the enjoyment gained from his unparalleled mastery of everyday life in distant lands and distant times. Not much has changed, it seems, except the speed of the ships and the communication between traders.