Legal Means and Public Law Consequences of the Solution of Economic and Credit Crisis at the End of the Roman Republic (49-47 BC)
Legal Means and Public Law Consequences of the Solution of Economic and Credit Crisis at the End of the Roman Republic (49-47 BC)

Summary/Abstract: The civil war evolving between Caesar and Pompeius led to a serious economic crisis in the period lasting from 49 to 44 BC. It cannot be regarded simply as a monetary crisis appearing because of cash shortage, since beyond that we can observe an indebtedness concerning every social stratum. The executory procedures also threatened those who had property, since the price of real estates had dropped because of the scarcity of cash, however they still could not be sold. Furthermore, property execution (venditio bonorum), which could be carried out against the debtors and entailed the loss of their entire property, resulted in the decrease of their social esteem (existimatio), since it entailed infamia. In his law (lex Iulia de pecuniis mutuis) passed in 49 BC Caesar obligated the creditors to accept the properties of debtors as a repayment of their credits, what is more, the market values of the pre-civil war period had to be used. At the same time, the already paid interests were counted in the repayment of principal. Before this obligatory performance in kind (datio in solutum necessaria) the estimation of certain property elements (aestimatio) took place. Despite the advantages of the law, the idea of total cancellation of debts (tabulae novae) appeared among debtors. The leaders of this movement were Caelius Rufus, who obtained the function of praetor peregrinus in 48 BC and tribunus plebis Dolabella in 47 BC. Because of the rejection of their bills, affrays broke out in Rome and Italy and it forced the senatus to promulgate the state of emergency (senatus consultum ultimum) two times. Since both of them belonged to Caesar’s political party, contrary to the previously passed resolutions of the senatus promulgating a state of emergency, we cannot regard internal political conflict and rivalry between certain people as primary causes. In my view, the economic crisis was the reason for the issue of both senatus consultum ultimums. The question of loans borrowed by citizens and the failure in repayment of them are private affairs, for this reason, the legal disputes deriving from them are regulated by private law. If the non-repayment of debts grew to considerable proportions, the problem would become social-sized, thus, sooner or later legislation has to deal with this phenomenon causing social and political crises as well. This kind of general financial crisis and – due to credits – debt crisis evolved in the second half of the 1st century BC as a result of civil wars triggered by the confrontation between Caesar and Pompeius. In my short essay I would like to introduce the economic nature of financial and credit crisis, the legal steps in order to solve it and the public law consequences of these steps.

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