The argument presented here rests on three assumptions. The first is that, at least in commercial terms, a capitalist system was in operation in Europe by the sixteenth and seventeenth centuries. Its features included a well-developed structure of international exchange, complex trade patterns, sophisticated methods of organization and finance, a realization of the importance of ‘putting money out to work’, and a versatility of mercantile activity that was a product of the most spectacular boom, expansion of trade, and growth of the merchant community that Europe had ever seen.