The Apprentice
The next cross reference that Sir Jonathan followed appeared to be a short excerpt from a diary, attributed to an ‘Angelo Boccanegro’. A small footnote indicated that prior to 1419 he had been a junior clerk in the Bank of St. George.
The historian knocked the now-consumed ashes from his pipe, packed a new wad of Drum into the bowl, struck a match and drew heavily until it the sweet taste and comforting aroma pervaded his senses once more. Then he returned his attention to the tome, to read the words of the young banker.
January 1, 1419
I was told to report to the Marchese Romeo Negrone’s office, in the main building on the Piazza Fontana Marose, first thing tomorrow morning. It’s something that fills me with dread and fear. Have I done something wrong? Have I processed a loan incorrectly? Has someone defaulted that I’ve already loaned money to? Is it something I said? Something I did? You don’t get summoned to one of the bank’s senior investors’ office unless it’s big…and it’s usually bad. I hope I don’t have to go and beg papa to get me out of a fix again or he’ll never pass on the family title to me.
January 2, 1419
Oh happy day! My fears turned out to be paranoia!!! I have a new posting!!!!!!!!!!
I arrived at the Banco di San Giorgio this morning and was immediately shown into the Marchese’s office. It was incredible…plush chairs, a large, solid oak desk, its own hearth, and his ink well was this beautiful ivory sculpture of Venus that held several quills in her arms and appeared to be dancing at the edge of a black pool of water – which was, of course, the ink. The office looked out over the Piazza from the top floor – four floors! – and he has a full-time aide to run errands for him and take the minutes of his meetings. (I think his name was Luigi but I’m not certain since he never spoke other than to say “Yes, sir” or “Right away, sir”.)
I got there at about 5 minutes to eight and Negrone was already hard at work. He didn’t even glance up when his aide announced me (though perhaps there was the slightest of nods) and I stood there in abject terror for about ten minutes until he finished whatever it was he had been doing. I didn’t know what to say, and he was so senior that I couldn’t address him without being spoken to first, so I just waited. I only glanced around the room once (in case he looked up and found me idly surveying his office) so all I could do was look at the Venus sculpture and at him.
He’s an older man - maybe even in his early 50’s – and what little hair he has remaining as silvery and a bit unkempt. He’s a little overweight, and his face is lined so deeply it’s almost as though he’s wearing skin that’s a few sizes too large. Later, when we spoke, I noticed that every time he turned his head his jowls would follow a little behind and sort of flop there, back and forth, for a moment before settling down. It was really distracting and I found it hard not to smile or laugh each time that it happened.
He was dressed in the richest robes I have ever seen – even more opulent than papa’s – which were a very deep blue in colour, and he wore only two rings. One was his signet ring which he used to seal whatever it was that he’d been writing when I arrived. The other was a thick band of solid gold with the largest sapphire mounted upon it that I expect I will never witness its like again.
When he finally did finish it was his aide who scattered sand across the parchment to soak up the excess ink, then blew it off again, folded it and dropped the blue-tinted tallow on the seam for his master to seal. Only then did he actually look up and acknowledge my existence.
“You are Angelo Boccanegro?”
“Yes, Marchese.”
“Good,” he said. “I see you have both patience and respect. I know your father quite well, and he suggested that I consider you for the position. He seems to think that it is time for you to learn a new aspect of the business.”
“I am honoured, sir,” I managed to say. My mind was spinning. Here I was, thinking that I was going to get an earful and he was talking about a promotion! I have no idea what papa might have said to him, but I was almost speechless.
“Tell me, what do you know of our bank.”
“Well, sir, I know it was originally called the Societa delle Compere di San Giorgio and was created by the Doge some decade ago for two reasons. The first was that the state was bankrupt due to war debts and needed a way to refinance it in order to avoid another civil war like the ones we had a hundred years ago. By allowing the 35 wealthiest families to invest in the Societa and then assume the state taxation to pay off the debt, they made themselves even wealthier but gave Genoa a chance to survive. I know that both your noble family and my father’s were amongst the founding members.”
He nodded for me to continue.
“The second reason is that almost all of the families were merchant houses and, working together, this gave them a better chance at securing favourable trade rights and presence in foreign countries since it is a state-sanctioned house and was the first Chartered Bank when it was given that privilege a decade ago. That’s when we became the Banco di San Giorgio.”
“Good. And how do we improve the wealth of the bank?”
“Ah…well. Through financing families that are less well off and by administering the public debt?” That’s what I said, anyway. It sounded wrong, but I’d never really thought about it before.
“There, you’re wrong. We guaranteed only a 7% interest on over 3 million Genoese Pounds of debt and the ‘less fortunates’, as you call them, are small enough in number and in needs that they bring in very little by way of revenue. No, the two ways that the bank really makes its money is through sanctioned trading partnerships, and through loans to foreign nations.”
“Even as we speak, Henry the fifth of England fights a war against Charles the sixth of France. Neither had enough money to raise their armies and so each of them came to us for a loan a couple years ago. We settled on terms – though considerably different than the type we would arrange with a citizen of Genoa, and they can fight their war and we can make our money. I know you have spent your first eighteen months at the bank doing personal loans, but you’re not ready yet for this sort of financing.”
“The other method is, in most respects, the most profitable part of the whole bank: the Mercantile Branch. There, we spend small sums of money to set up and support independent merchants operating in the various centres of trade around the world. If the merchant is successful, what we get in return is a share of their profits paid on a monthly basis. Depending on the trade centre, and how dominant our merchants’ presence is, this can generate amazing profits.”
I nodded to him to indicate I was following him.
“Let me give you an example that’s close to home. Right here in Liguria is one of the more active centres of trade. I’ll concede that it might not be quite as rich in terms of the commodities traded as our arch-rivals in Venuto but it is valuable enough. Over the course of several years we have developed a strong merchant presence here – which should come as no surprise – but the addition of only one more merchant trading house would, effectively, give us a monopoly here and we would rake in the lion’s share of the business. It is my intention to finance such a venture this month. It is, further, my intention to give you the task of looking after the details, and of expanding our trade into some of our neighbours’ centres in the coming months and years.”
“I…I don’t know how to thank you, Marchese Negrone,” I stammered. “I won’t let you down. I…I…I’m not sure where to begin though.”
He smiled. “Ah, the ignorance of youth. Don’t worry. I’m not just going to give you a sack of the bank’s money to go out and play with. You will apprentice with me, personally, for your first couple of years. Then, when I’m ready to retire to my estates and give up the business, you may just be lucky enough to take over my position. If you’re good, that is.”
“I am honoured, Marchese.”
“As you should be. It is one of the few disappointments in my life that the only son I sired had to go and get himself killed in some petty duel. Your father is a close personal and business friend. It is to his first-born that I will look to uphold Genoa’s honour.”
The rest of the day was a whirlwind of activity. We rode our horses down to the market area and then Negrone just seemed to stroll around. He stopped and looked at things, as though he was going to buy them, but then politely moved on without spending a coin. I, in the meantime, followed just a pace or two behind him, and behind us both came the aide. Every once in a while a man would stop the Marchese and talk to him, and I gradually learned that these were the men that the bank had helped to establish. They were the wealthiest looking men, and the most respectful. Not surprisingly, their wares seemed to be of the highest quality as well.
I came to realize that the bank had already established a network of strong merchants who dealt in international affairs – perhaps five dominant ones – and that our purpose today was to identify the most likely candidate as an additional venture.
By day’s end we had visited one particular place at least four times, and this time the Marchese asked to speak to the owner. The man, when he appeared, seemed to know Negrone – perhaps not personally, but by reputation – and delightedly invited him into the back room of his store house that was a short walk away. He and the banker then talked back and forth for the better part of an hour – far too much for me to write down no, since I’m exhausted, though Luigi seemed to be taking meticulous notes – but the end result was a business arrangement that seemed to suit both men.
They concluded their dealings and then my new master said, “Young Boccanegro will be back tomorrow with the money you need, and some papers to sign. It’s been a pleasure, sir, good evening to you,” and we left.
January 3, 1419
I went to the office this morning and I discovered that a small, plain desk had been added to the Marchese’s room, near the far wall where it would be fairly unobtrusive. I guess when Negrone said “work closely with me” he really meant it! Now I’ll be spending all of my time trailing him around, and I’m supposed to work on my writing and language skills as much as possible. I barely have time or energy enough to be writing this.
We started off the day with Negrone explaining to me how a trade contract was written up and then preparing the one for the merchant we had dealt with yesterday – Como is his name. Then we went downstairs and entered the vault. It was incredible! He just tossed me a bag filled with gold. I’ve never held so much money in my hands at one time in my entire life! £2,000 !!!
I delivered the bag, accompanied by an armed escort (which I was told was courtesy the Doge), and obtained Como’s signature on the document. Then it was back to the office for another round with my mentor.
“This was easy,” he said, “but I admonish you not to get too cocky. It will take him a month or so before we’ll know if he can operate on that level, and even then the competition is tough out there, and likely to get pretty fierce here soon as well. We aren’t the only ones in the business, you know, and our Venetian ‘friends’ are the worst offenders. They’re just as likely to set up someone of their own and try to put one of our people out of business, and it’s money down the drain for us.”
“They could do that?”
“Oh yes. There aren’t many nations that can compete with us on this scale, but they are out there. You can’t trust them any further than you can throw them. It’s not uncommon to have to go back and either find a new man to work with or try to re-establish someone who’s been pushed out of the market. Sometimes you just have to grin and bear it and look elsewhere. Other times there may be a more diplomatic approach.”
I spent the rest of the day reading some books that he had on international trade law and reviewing the contracts that we already had. The money we spend is more of a “start-up” gift than a loan. There is never any talk of repaying the investment other than through a healthy share of the trade revenue, so I can see that I will have to learn to treat such sums as merely drops in the bucket.
I also looked at some of our returns from our existing merchants and what I read made my head spin. We could even recoup our “gift” and then some in a matter of months! I think I will have to work on my maths as well.
I must to bed. I’m exhausted.
These were the only three diary entries included at this point in the cross reference, though Sir Jonathan saw that there were several other inclusions that dealt with the same subject. He was getting hungry again, though, and decided to come back to them in an hour or two. He could see that this entire volume might take some considerable time to chew his way through, so to speak.