the Old Kingdom.[1] The early Chinese official-State described in the Tshou-li is so comprehensive and complicated that the authenticity of the book has been doubted,[2] but in spirit and tendency it corresponds exactly with that of Diocletian, which enabled a feudal order to arise out of an immense fiscal machinery.[3] In the early Classical world it is markedly absent. "Carpe diem" was the motto of Classical economics from the first to last, and in this domain as in others Improvidence, the autarkeia of the Stoics, was elevated into a principle. Even the best calculators were no exception — thus Eubulus in Athens, 330 B.C., managed business with an eye to surpluses, but only to distribute them, when gained, amongst the citizens.
The extreme contrast to Eubulus's finance is afforded by the canny Vikings of the early West, who by the financial administration of their Norman states laid the foundations of the Faustian economics that extend to-day over the whole world. It is from the chequered table in the Norman counting-house of Robert the Devil (1028-35) that we have the name of the English "Exchequer" and hence the word "cheque." Here also originated the words "control," "quittance," "record."[4] Here it was that after 1066 England was organized as booty, with ruthless reduction of the Anglo-Saxons, to serfdom, and here too originated the Norman State of Sicily — for it was not upon nothing that Frederick II of Hohenstaufen later built; his most personal work, the constitutions of Melfi (1231) he did not create, but only (by methods borrowed from the money-economics of high Arabian Civilization) polished and perfected. From this centre the methodic and descriptive technique of finance spread into the business world of Lombardy and so into all the trading cities and administrations of the West.
But in Feudalism build-up and breakdown lie close together. When the primary estates were still in full bloom and vigour, the future nations, and with them the germ of the State-idea proper, were stirring into life. The opposition between temporal and spiritual power and that between crown and vassals was cut across again and again by oppositions of nationhood — German-French even from Otto the Great's times; German-Italian, which rent Italy between the Guelphs and Ghibellines and destroyed the German Empire; French-English, which brought about the English dominion over western France. Still, all this was far less important than the great decisions within the feudal order itself, where the idea of nationality was unknown. England was broken up into 60,251 fiefs, catalogued in the Domesday Book of 1084 (consulted even to-day upon occasion), and the strictly organized central power
