Interest, as the price of money, varied then as it does now in inverse ratio to the security offered by the debtor, and on the whole within much the same range that it does now. The best security was believed to be that of the German Free Cities, governed as they were by the commercial class that appreciated the virtue of prompt and honest payment. Accordingly, we find that they had no trouble in borrowing at 5 per cent., their bonds taking the form of perpetual annuities, like the English consols. So eagerly were these investments sought that they were apportioned on petition as special favors to the creditors. The cities of Paris and London also enjoyed high credit. The national governments had to pay far higher, owing to their poverty and dishonesty. Francis I borrowed at 10 per cent.; Charles V paid higher in the market of Antwerp, the extreme instance being that of 50 per cent. per annum. In 1550 he regularly paid 20 per cent., a ruinous rate that foreshadowed his bankruptcy and was partly caused by its forecast. Until the recent war we were accustomed to think of the great nations borrowing at 2-4 per cent., but during the war the rate immensely rose. Anglo-French bonds, backed by the joint and several credit of the two nations, sold on the New York Stock Exchange in 1918 at a price that would yield the investor more than 12 per cent., and City of Paris bonds at a rate of more than 16 per cent.
{468} Commercial paper, or loans advanced by banks to merchants on good security, of course varied. The lowest was reached at Genoa where from time to time merchants secured accommodation at 3 per cent. The average in Germany was 6 per cent. and this was made the legal rate by Brandenburg in 1565. But usurers, able to take advantage of the necessities of poor debtors, habitually exacted more, as they do now, and loans on small mortgages or on pawned articles often ran at 30 per cent. On the whole, the rate of interest fell slightly during the century.
[Sidenote: Real estate]
The price of real estate is more difficult to compare than almost anything, owing to the individual circumstances of each purchase. Land in France sold at rates ranging from $8 to $240 the acre. Luther bought a little farm in the country for $340, and a piece of property in Wittenberg for $500. After his death, in 1564, the house he lived in, a large and handsome building formerly the Augustinian Cloister, fetched $2072. The house can be seen today[1] and would certainly, one would think, now bring fifteen times as much.
[Sidenote: Books]
Books were comparatively cheap. The Greek Testament sold for 48 cents, a Latin Testament for half that amount, a Latin folio Bible published in 1532 for $4, Luther's first New Testament at 84 cents. One might get a copy of the Pandects for $1.60, of Vergil for 10 cents, a Greek grammar for 8 cents, Demosthenes and Aeschines in one volume at 20 cents, one of Luther's more important tracts for 30 cents and the condemnation of him by the universities in a small pamphlet at 6 cents. One of the things that has gone down most in price since that day is postage. Dürer while in the Netherlands paid a messenger 17 cents to deliver a {469} letter (or several letters?), presumably sent to his home in Nuremberg.
[Sidenote: Wages]
In accordance with the general rule that wages follow the trend of prices sluggishly, whether upwards or downwards, there is less change to be observed in them throughout the sixteenth century than there is in the prices of commodities. Subject to government regulation, the remuneration of all kinds of labor remained nearly stationary while the cost of living was rising. Startling is the difference in the rewards of the various classes, that of the manual laborers being cruelly low, that of professional men somewhat less in proportion to the cost of living than it is today, and that of government officers being very high. No one except court officials got a salary over $5000 a year, and some of them got much more. In 1553 a French chamberlain was paid $51,000 per annum.
A French navvy received 8 cents a day in 1550, a carpenter as much as 26 cents. A male domestic was given $7 to $12 a year in addition to his keep and a woman $5 to $6. As the number of working days in Catholic countries was only about 250 a year, workmen made from $65 to as low as $20. If anything, labor was worse paid in Germany than it was in France. Agricultural labor in England was paid in two scales, one for summer and one for winter. It varied from 3 cents to 7 cents a day, the smaller sum being paid only to men who were also boarded. In summer freemasons and master carpenters got from 8 cents to 11 cents for a terribly long day, in winter 6 cents to 9 cents for a shorter day. The following scale was fixed by law in England in 1563: A hired farmer was to have $10 a year and $2 for livery; a common farm hand was allowed $8.25 and $1.25 extra for livery; a "mean servant" $6 and $1.25 respectively, a man child {470} $4 and $1; a chief woman cook $5 and $1.60, a mean or simple woman $3 and $1; a woman child $2.50 and $1. All were of course boarded and lodged.
The pay of French soldiers under Francis I was for privates $28 a year in time of war; this fell to $1 a year in time of peace; for captains $33 a month in time of peace and $66 in time of war. Captains in the English navy received $36 a month; common seamen $1.25 a month for wages and the same allowance for food.