venerdì 12 febbraio 2021

HISTORY OF INVENTION: ITALIAN BOOK-KEEPING "Doppia Scrittura"

 

Beckmann (Johann). A History of Inventions and Discoveries. J. Bell, 1797

https://babel.hathitrust.org/cgi/pt?id=uc1.$b792561&view=1up&seq=19


HISTORY OF INVENTIONS

ITALIAN BOOK-KEEPING.

 

THOSE who are acquainted with the Italian method of book-keeping must allow that it is an ingenious invention; of great utility to men in business; and that it has contributed to extend commerce and to facilitate its operations. It requires little less attention, reflection and accuracy, than many works which are styled learned; but it is undoubtedly true that most mercantile people, without knowing the grounds of the rules on which they proceed, conduct their books in as mechanical a manner as many of the literati do their writings.

The name, Italian book-keeping, Doppia Scrittura, with several words employed in this branch of science and still retained in all languages, make it probable that it was invented by the Italians, and that other nations borrowed it, as well as various short methods of reckoning, from their mercantile houses, at the time when all the East India trade passed through Italy.

De la Porte says [1], "About the year 1495, brother Luke an Italian published a treatise of it in his own language. He is the oldest author I have seen upon the subject." Anderson, in his Historical and chronological deduction of the origin of commerce [2], gives the following account: “In all probability, this art of double-entry accounts had its rise, or at least its revival, amongst the mercantile cities of Italy: possibly it might be first known at Venice, about the time that numeral algebra was taught there; from the principles of which science double-entry, or what we call merchants accounts, seems to have been deduced. It is said that Lucas de Burgo, a friar, was the first European author who published his algebraic work at Venice, anno 1494."

This author, who was one of the greatest mathematicians of the fifteenth century, and who is supposed to be the first person who acquired a knowledge of algebra from the writings of the Arabians, was called Lucas Paciolus, e Burgo S. Sepulchri, He was a Franciscan, and so surnamed from a town in the duchy of Urbino, on the Florentine confines, called Burgo S. Sepulchro [3].

Anderson tells us [4], that he had, in his possession, the oldest book published in England in which any account is given of the method of book-keeping by double-entry. It was printed at London, in 1569, in folio. The author, whose name is James Peele, says, in his preface, that he had instructed many, mercantile people in this art, which had been long practised in other countries, though in England it was then undoubtedly new. One may readily believe, that Mr. Anderson was not ignorant of the difference between the method of book-keeping by single, and that by double-entry; but he produces nothing to induce us to believe that Peele taught the latter, and not the former; for what he says of debit and credit is of no importance, as it may be applied also to the method by single-entry.

Of this Peele no mention is made in Ames' Typographical antiquities; bur in that work [5] there is an account of a still older treatise of book-keeping, entitled “A briefe instruction and manner how to keepe bookes of accompts, after the order of debitor and creditor, and as well for proper accompts, partible, &c. by three bookes, named the memoriall, journall, and ledger. Newly augmented and set forth by John Mellis schole maister. London 1588. 12mo.”

Mellis, in his preface, says that he is only the re-publisher of that treatise, which was before published at London in 1543 by a schoolmaster named Hugh Oldcastle. From the above title, and particularly from the three accompt books mentioned in it, I am inclined to believe that this work contained the true principles of book-keeping by double-entry.

The oldest German work on book-keeping by double-entry, with which I am at present acquainted, is one written by John Gotlieb, and printed at Nuremberg, by Frederick Peypus, in 1531 [6]. The author, in his preface, calls himself a citizen of Nuremberg, and says, that he means to give to the public a clear and intelligible method of book-keeping, such as was never before published. It appears, therefore, that he considered his book as the first of the kind ever published in Germany.

It is worthy of remark, that, even at the end of the sixteenth century, the Italian method of book-keeping began to be applied to finances and public accompts. In the works of the celebrated Simon Stevin [6b], published at Leyden in Dutch, and the same year in Latin, we find a system of book-keeping, as applied to finances, drawn up it appears for the use of Maurice prince of Orange. To this treatise is prefixed, in Dutch and Latin, a dedication to the duke of Sully, in which the author says, that his reason for dedicating the work to Sully was, because the French had paid the greatest attention to improve the method of keeping public accompts. The work begins with a conversation, which took place between Stevin and prince Maurice, respecting the application of book-keeping to public accompts, and in which he explains to the prince the principles of mercantile book-keeping.

 


This conversation commences with explaining the nature of debit and credit, and the principal accompts.

Then follow a short journal and ledger, in which occur only the most common transactions; and the whole concludes with an account of the other books necessary for regular book-keeping, and of the manner of balancing. Stevin expressly says, that prince Maurice, in the year 1604, caused the treasury accounts to be made out after the Italian method, by an experienced book-keeper, with the best success; but how long this regulation continued I have not been able to learn. Stevin supposes, in this system, three ministers, and three different accounts: a quaestor, who receives the revenues of the domains; an acceptor, who receives all the other revenues of the prince; and a thesaurarius (treasurer), who has the care of the expenditure. All inferior offices for receiving or disbursing are to send from their books monthly extracts, which are to be doubly entered in a principal ledger; so that it may be seen at all times, how much remains in the hands of each receiver, and how much each has to collect from the debtors. One cannot help admiring the ingenuity of the Latin translator [7], who has found out, or at least invented, words to express so many new terms unknown to the ancient Romans. The learned reader may, perhaps, not be displeased with the following specimen. Book-keeping is called apologistica or apologismus ; a book-keeper apologista; the ledger codex accepti expensique; the cash-book arcarii liber; the expence book impensarum liber; the waste-book liber deletitius; accounts are called nomina; stock account sors; profit and loss account lucri damnique ratiocinium, contentio or fortium comparatio; the final balance epilogismus; the chamber of accounts, or counting. house, logisterium, &c.

In the end of this work Stevin endeavours to shew that the Romans,, or rather the Grecians (for the former knew scarcely any thing but what the latter had discovered), were, in some measure, acquainted with book-keeping, and supports his conjecture by quoting Cicero's oration for Roscius.

I confess that the following passage in Pliny, Fortunæ omnia expensa, huic omnia feruntur accepta, et in tota ratione mortalium sola utramque paginam facit [8], as well as the terms tabulæ accepti et expensi ; nomina transata in tabulas, seem to indicate that the Romans entered debit and credit in their books, on two different pages; but it appears to me not yet proved, and improbable, that they were acquainted with our scientific method of book-keeping; with the mode of opening various accompts; of comparing them together, and of bringing them to a final balance. As bills of exchange and insurance were not known in the commerce of the ancients, the business of merchants was not so intricate and complex, as to require such a variety of books and accounts as is necessary in that of the moderns.

Klipstein is of opinion that attempts were made in France to apply book-keeping, by double-entry, to the public accounts, under Henry IV, afterwards under Colbert, and again in the year 1716. That attempts were made, for this purpose, under Henry IV, he concludes from a work entitled An inquiry into the finances of France; but I do not know whether what the author says be sufficient to support this opinion.

Those who have paid attention to the subject of finances know that, for twenty or thirty years past, mercantile book-keeping has begun to be employed at Vienna, in order to facilitate the management of public accounts, which in latter times, and in large states, have been swelled to a prodigious extent. For this improvement we are indebted to several works, some of them expensive, intended as introductions to this subject.

One of these is by counsellor Puchberg, another by Mr. st. Julian, chaplain to the charity schools, and another by Adam Von Heidfeld [9]. Stevin's work before mentioned shews clearly that this improvement is not new; and seems to lessen what is said, in a work published in 1777 [10], that count Zinzendorf was the author or patron of that excellent invention, the application of the Italian method of book-keeping by double-entry to finances and public economy.



1. La science des négocians et teneurs de livres, Paris 1754. 8vo. p. 12.

2. Vol. i. p. 408

3. In Scriptores ordinis Minorum, quibus accessit syllabus eorum qui, ex codem ordine, pro fide Christi fortiter occubuerunt - Recensuit Fr. Lucas Waddingus, ejusdem instituti theologus, Romæ 1650, fol. a work reckoned by Beyer, Vogt, and others, among the very scarce books, is the following information, p. 238, respecting this author: “Lucas Paciolus e Burgo S. Sepulchri, prope fines Etruriæ, omnem pene mathematicæ disciplinæ Italica lingua complexus est; conscripsit enim De divina proportione compendium; De arithmetica ; De proportionibus et proportionalitalibus; opus egregium et eruditum, rudi tamen Minervâ, ad Guidobaldum Urbini ducem. De quinque corporibus regularibus; De majusculis alphabeti litreris pinyendis ; De corporum folidorum et vacuorum figuris, cum suis nomenclaturis. Excusa sunt Venetiis anno 1509. Transtulit Euclidem in linguam Italicam, et alia ejusdem scientiæ composuit opuscula.

The same account is given in Bibliotheca Umbriæ, sive De scriptoribus Umbriæ, auctore Ludovico Jacobillo. Fulginiz 1658. 410. p. 180. The oldest works of this author, as mentioned in Origine e progressi della stampa, o sia dell'arte impressoria, e notizie dell'opere stampate dall'anno 1457 fino all'anno 1600. Bologna 1722. 4to. to the dedication of which is subscribed Pellegrino Antonio Orlandi, are Fr. Lucæ de Burgo S. Sepulchri Arithmetica et geometria, Italice; characteribus Goth. Ven. 1494. fol. Liber de algebra. Ven. 1494. This is the work quoted by Anderson. Those who are desirous of farther information respecting Lucas de Burgo, may consult Heilbronneri Historia matheseos universæ. Lipsiæ 1742. 4to. p. 520. Histoire des mathematiques, par M. Montucla, Paris 1758. 4to. t. i. p. 441-476. Histoire des progrès de l'esprit humain dans les sciences exactes, par Saverien. Paris 1766. 8vo. p. 18 et 38.

4. Vol. i. p. 409.

5. P. 410.

6. The whole title runs thus: Ein Teutsh verstendig Buchhalten fur herren oder gesellschafter inhalt wellischem process, des gleychen vorhin nie der jugent is furgetragen worden, noch in druck kummen, durch Joann Gotlieb begriffen und gestelt. Darzu etlich unterricht für die jugent und andere, wie die posten so auss teglichen handlung fiessen und furfallen, sollen im jornal nach kunstlicher und buchhaltischer art gemacht, eingeschrieben und nach malss zu buch gepracht werden. Cum gratia et privilegio. Laus Deo. [Una contabilità comprensibile in tedesco, per gentiluomini o azionisti, contenente il processo ondoso, la stessa non è mai stata eseguita in precedenza dai giovani, né è stata stampata, ora compresa e creata da Joann Gotlieb. Inoltre, una serie di lezioni per i giovani e altri, sul modo in cui gli oggetti scorrono e si avvicinano, dovrebbero essere tenuti nel diario in modo artificiale e contabile, inscritti e registrati su misura. Con grazia e privilegio. Lode al Signore.]

 

6b.  See: Chatfield, Michael and Vangermeersch, Richard, "History of Accounting: An International Encyclopedia" (1996). Individual and Corporate Publications: "Stevin was one of the first authors to compose a treatise on governmental accounting. He did this in Vorstelicke Bouckbouding op de Italiaensche Wyse in 1604 (Flesher). This book included four parts: Commercial Bookkeeping; Bookkeeping for Domains; Bookkeeping for Royal Expenditures; and Bookkeeping for War and Other Extraordinary Finances. The book was written for Stevin's patron and friend, Prince Maurice of Nassau. Stevin stressed that the application of double entry for municipalities and governments was very much needed because supervision in municipalities and governments was weaker there than in businesses. Governmental treasurers often became rich, and the government poor on account because of the lack of a strong double entry control system. It is likely that Stevin also had an impact in Sweden as well as in the Netherlands. The Swedish government reorganized its accounting system and introduced double entry for its government in 1623. O. Ten Have (1956), head of the Department of Social and Economic Statistics, Netherlands Central Bureau of Statistics, traced Stevin's effect through the Dutch merchant, Abraham Cabeljau, who headed the Swedish efforts on double entry accounting. Stevin's works were collected in a massive two-volume set entitled Wisconstighe Ghedachtenissen (vol. 1, 1608 and vol. 2 in 1605) which was a collection of the manuscripts of the lessons given from Stevin to Prince Maurice. Stevin's bookkeeping text was included in the set. It is important to note for accounting education that Stevin used the form of a dialogue between himself and Prince Maurice for setting a systematic rationale for bookkeeping practices. The basis of bookkeeping, according to Stevin, is the beginning and the end of "property rights." This idea is a current topic, and there is rich "property rights" literature with emphasis on rights established by contracts. Stevin was one of the first accounting historians, and he made investigations into the antiquity of bookkeeping. Double entry accounting, he stated, has many roots in Roman (or even Greek) times. The importance of accounting history for the development of a sound and realistic accounting theory and a deeper understanding of the accounting heritage by accountants has recently been recognized. The accounting profession has evolved over many centuries. Stevin recognized, too, that book-keeping is first of all a way of sorting financial information, and his balance sheet compilation (staet proef) is carried out to ascertain mathematically the profit of the year. Stevin is considered to be the inventor of the income statement. "Stevin developed the income statement as proof of the accuracy of the change in owners' equity on the balance sheet" (Flesher). There is a great difference between Pacioli and Stevin, too. While Pacioli, for example, began the inventory: "In the name of God, November 8th, 1493, Venice," Stevin omitted all religious notations at the tops of pages or at the beginning of books. This is a fundamental point indeed. Perhaps this is one of the reasons that when in 1645 a proposal was made to erect a statue to this otherwise so illustrious native in Stevin's birthplace Bruges, there was much opposition from the local clergy to the plan. https://egrove.olemiss.edu/acct_corp/168/

7. Bayle says, that the Latin translation of Stevin's works was executed principally by Willebrord Snellius.

8. Lib. ii. Cap. 7.

9. A short account of this improvement, and the writings it gave rise to, may be found in Klipstein, Grundsasse der wissenschaft rechnungen einzurichten [Principles of scientific accounting to be established]. Leipzig 1778. 8vo. and also in another work, by the same author, entitled Grundsasse der rechnungswissenschaft auf das privater mogen angewendet [Basic principles of accounting applied to private life]. Wien 1774. fol.

10. Denkwurdigkeitenvon Wien 1777. 8vo. p. 210.



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