Trade
Trade was very extensive. A common procedure was for a merchant to entrust his goods or money to a traveling agent, who sought a market for his goods. The caravans travelled far beyond the limits of the empire.
The Code insisted that the agent should inventory and give a receipt for all that he received. No claim could be made for anything not so entered. Even if the agent made no profit, he was bound to return double what he had received; if he made poor profit, he had to make up the deficiency; but he was not responsible for loss by robbery or extortion on his travels. On his return, the lending merchant must give him a receipt for what was handed over to him. Any false entry or claim on the agent's part was penalised threefold; on the lending merchant's part, sixfold. In normal cases, profits were divided according to contract, usually equally.
A considerable amount of forwarding (advancing wares to the agent up front) was done by the caravans. The carrier gave a receipt for the consignment, took all responsibility, and exacted a receipt upon delivery. If he defaulted, he paid fivefold. He was usually paid in advance. Deposit, especially warehousing of grain, was charged for at one-sixtieth. The warehouse man took all risks and paid double for all shortage, but no claim could be made unless he had given a properly witnessed receipt.
Water traffic on the Euphrates and canal system was early on, quite considerable. Ships, whose tonnage was estimated by the amount of grain they could carry, were continually hired for the transport of all kinds of goods. The Code fixes the price for shipbuilding and insists on the builder's giving a year's guarantee of seaworthiness. It also fixes the rate of hire for ship and crew. The captain was responsible for the freight and the ship; he had to replace all loss. Even if he refloated the ship, he had to pay a fine of half its value for sinking it. In the case of collision, the boat under way was responsible for damages to the boat at anchor.
The Code also regulated the liquor traffic—fixing a fair price for beer and forbidding the connivance of the tavern keeper (a female) at disorderly conduct or treasonable assembly, under pain of death. She was required to take the offenders to the palace—implying an efficient and accessible police system.
Payment through a banker or by written draft against deposit was frequent. Bonds to pay were treated as negotiable. Interest was rarely charged on advances by the temple or wealthy landowners for pressing needs, but this may have been part of the metayer system. The borrowers may have been tenants. Interest was charged at very high rates for overdue loans of this kind. Merchants (and even temples in some cases) made ordinary business loans, charging from 20% to 30%.
Read more about this topic: Babylonian Law
Famous quotes containing the word trade:
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—William Howard Taft (1857–1930)
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Who promised the Royal babe to rear
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—Sir William Schwenck Gilbert (1836–1911)
“Experience has shown that the trade of the East is the key to national wealth and influence.”
—Chester A. Arthur (1829–1886)