Middlesex University Research Repository An open access repository of Middlesex University research http://eprints.mdx.ac.uk Sangster, Alan, Stoner, Gregory N. and McCarthy, Patricia A. (2008) The market for Luca Pacioli’s Summa arithmetica. Accounting Historians Journal, 35 (1) . pp. 111-134. ISSN 0148-4184 [Article] This version is available at: https://eprints.mdx.ac.uk/3201/ Copyright: MiddlesexUniversityResearchRepositorymakestheUniversity’sresearchavailableelectronically. Copyright and moral rights to this work are retained by the author and/or other copyright owners unlessotherwisestated. Theworkissuppliedontheunderstandingthatanyuseforcommercialgain is strictly forbidden. A copy may be downloaded for personal, non-commercial, research or study without prior permission and without charge. Works, including theses and research projects, may not be reproduced in any format or medium, or extensive quotations taken from them, or their content changed in any way, without first obtaining permissioninwritingfromthecopyrightholder(s). Theymaynotbesoldorexploitedcommerciallyin any format or medium without the prior written permission of the copyright holder(s). Full bibliographic details must be given when referring to, or quoting from full items including the author’s name, the title of the work, publication details where relevant (place, publisher, date), pag- ination, and for theses or dissertations the awarding institution, the degree type awarded, and the date of the award. If you believe that any material held in the repository infringes copyright law, please contact the Repository Team at Middlesex University via the following email address: [email protected] The item will be removed from the repository while any claim is being investigated. See also repository copyright: re-use policy: http://eprints.mdx.ac.uk/policies.html#copy Accounting Historians Journal Vol. 35, No. 1 June 2008 pp. 111-134 Alan Sangster MIDDLESEX UNIVERSITY Gregory N. Stoner UNIVERSITY OF GLASGOW and Patricia McCarthy OPEN UNIVERSITY BUSINESS SCHOOL THE MARKET FOR LUCA PACIOLI’S SUMMA ARITHMETICA Abstract: This paper looks at an aspect of Luca Pacioli and his Summa Arithmetica that has not previously been explored in detail – the mar- ket for which he wrote the book. In order to do so, it follows a path identified by two clues in the bookkeeping treatise as to the nature of this market that modern eyes, unaware of how life was in late 15th century Italy, have missed. After discussing the curriculum taught in schools at that time, this paper considers a range of possible markets for which the book may have been written. The paper concludes that it was written primarily for, and sold mainly to, merchants who used the book as a reference text, as a source of pleasure from the math- ematical puzzles it contained and as an aid for the education of their sons. INTRODUCTION Luca Pacioli’s mathematics compendium, Summa de Arith- metica, Geometria, Proportioni et Proportionalita (SA), was first printed and published in Venice in 1494. It included a 27-page treatise on bookkeeping, Particularis de Computis et Scripturis. For many years, most accounting researchers have focused upon it, virtually to the exclusion of the remaining 588 pages of the book. To some extent, this is understandable. It is the only significant part of the book that has ever been translated into English1; it is the only part that is specifically about accounting; 1 Some of the introduction to SA has been translated into English by, for exam- ple, Taylor [1942]. The Index has been translated into English by Volmer [1994]. Acknowledgments: The authors would like to thank Dr. Esteban Hernán- dez-Esteve for his advice on many aspects of this project, particularly in Nantes, France at the 11th World Congress of Accounting Historians in 2006, and also the two anonymous reviewers for their perceptive suggestions. 112 Accounting Historians Journal, June 2008 it represents the first known printed treatise on bookkeeping; and it is widely believed to be the forerunner of modern book- keeping practice [Fogo, 1905; Littleton, 1928; Langer, 1958; Macve, 1996]. Non-English-speaking accounting researchers have also not deviated from this research focus; the bookkeeping treatise has been translated into at least 13 other languages. The first section of the book, on arithmetic, was translated or, more accurately, used as the basis for a book written in Span- ish in 1514 by Andrés de Saragossa. The arithmetic and algebra sections of SA were the source of two-thirds of an anonymous Catalan manuscript containing 160 folios on algebra and com- mercial arithmetic dating from the early 16th century [Rey, 2006]. In general, however, researchers from other disciplines2 have failed to publish translations of significant parts of the book.3 What has been translated and published includes some of the mathematical problems by, for example, Jayawardene [1976] and Rankin [1992] and extracts of some of the mathematical content [e.g., Fauvel and Gray, 1987, pp. 249-252]. Many researchers have suggested that the bookkeeping treatise was sourced from a teaching manual circulating at the time in Venice [see, Peragallo, 1938, p. 74, fn. 16]. Despite all the efforts of the renowned Italian accounting researcher, Fabio Besta (1845-1922) and his students in the Venetian archives [see Vianello, 1896, p. 116], no handwritten text on accounting has ever been found that predates Pacioli’s bookkeeping treatise other than a 5-page overview of bookkeeping in a manuscript written in Naples in 1458 by Benedetto Cotrugli [Melis, 1950, p. 597; Tucci, 1990; Jouanique, 1996]. There are virtually no worked examples in the treatise, and many have suggested that this creates a lack of clarity in the ex- planations of the method described. It has also been implied or concluded that the treatise was inadequate for those wishing to teach themselves double-entry bookkeeping (DEB) [Geijsbeek, 1914; Hernández-Esteve, 1994a, b; Yamey, 1978, 1994a, b, 2004; 2 Non-accounting researchers have focused on different aspects of the book from those typically considered by accounting researchers, such as the range of mathematical puzzles it contains and their similarity to those contained in other texts. This explains why different fonts are to be found in different extant copies of SA. 3 This is not to say that the remainder of the book was of little interest beyond the period of its publication. The second section, which is on algebra, was heavily cited by Renaissance algebraists in the years that followed its publication and is said to have been the enabling framework for the advances in algebra made in the 16th century [Rose, 1976, p. 145; Grendler, 2002, p. 427]. Sangster et al., Market for Pacioli 113 Nobes, 1995]. This conclusion appears entirely justified. Anyone using the bookkeeping treatise to learn how to do bookkeep- ing would need to have either been in business himself or, as suggested by Yamey [1978, p. 580], to have known someone he could ask for help in following it. The lack of worked examples can itself be explained if Pacioli’s source was a Venetian manual on bookkeeping. It is entirely conceivable that such a source might not have included worked examples as they could have been added by teachers when they went through the material with their students. Nev- ertheless, Pacioli was a renowned teacher who would have real- ized the benefits of including examples. Furthermore, he must have had some examples of his own that he could have used since he worked as a tutor to the sons of a Venetian merchant, was an assistant to that merchant for six years from 1464-1470, and was in business as a merchant in Naples for a few months in 1472 [Taylor, 1942, p. 170]. The First Clue to the Identity of the Intended Market for SA: The virtual absence of worked examples in the bookkeeping treatise must, therefore, have been the result of Pacioli believing that there was little benefit in incorporating examples within it, something apparently confirmed when he writes: “It is not pos- sible to give here full examples for all these operations, but from those few that we give here you will be able to understand how to go ahead in other cases” [Pacioli, 1494, folio 203 recto, trans- lated by Geijsbeek, 1914, p. 51]. This must have been, at least in part, because his intended audience for the treatise was merchants [see, Peragallo, 1938, p. 56]. This goes some way towards explaining the absence of worked examples. Even without them, merchants would have been able to understand and learn how to adopt the Venetian method of DEB as described by Pacioli. In addition, book- keeping was one of the subjects taught in the Venetian abbaco schools attended by the sons of merchants [Grendler, 1989, p. 319]. As a result, for them and their merchant fathers, Pacioli’s text would have been relatively easy to follow, but, surely, even merchants would have appreciated and benefited from the inclu- sion of worked examples in the bookkeeping treatise. The Second Clue to the Identity of the Intended Market for SA: Even 50 years after the publication of SA, the fact that the intended readers were likely to have access to other mate- rial probably would not have resulted in the omission of worked 114 Accounting Historians Journal, June 2008 examples from the bookkeeping treatise but, in 1494, book publishing was very different and printers were still learning how to do things in the most efficient way. Even the printing of simple geometrical figures was a relatively new technique in 1494. Paper was expensive, half the cost of producing a book [Richardson, 1999, p. 26]. Including worked examples would have significantly increased the length of the bookkeeping trea- tise, perhaps by as much as 30% if modern texts are a guide. It would also have considerably increased the complexity, and therefore the cost, of the typesetting and required many costly wood blocks to be carved or metal plates to be cast. It is unlikely to have been an accident that the journal entries shown on the last page appear after all the text. For pragmatic economic rea- sons, if material was not considered essential in a printed book in the late 15th century, it was omitted. This observation is sup- ported by Pacioli’s own words: “For if we wanted to give you an example of all the ways in which merchants do business… this would make our treatise very long, which, on the contrary, I in- tend to make short” [Pacioli, 1494, folio 203 recto, translated by Geijsbeek, 1914, p. 51]. This reluctance to print unnecessary content raises another question, if nothing was included in books at that time that was not considered essential, why did Pacioli include a bookkeeping treatise for merchants in SA, a book on mathematics? Surely the last thing anyone interested in mathematics wanted to read was a treatise on bookkeeping. To modern eyes, this would almost certainly be the case, but was it also the case in 1494? Was there a group of people for whom the bookkeeping in SA was every bit as important as the rest? Could merchants, for whose benefit Pacioli explicitly included the bookkeeping treatise in SA, have been interested in a book on mathematics, or was it some other group altogether to which SA in its entirety was principally di- rected? Yamey [2004, p.144] suggests that to comprehend the SA re- quired the reader to possess a humanist education, which mer- chants typically did not, but he fails to justify that contention and then goes on to suggest that it was purchased by “mathema- ticians and other learned individuals rather than by merchants.” Could this have been the case? Was there an alternative, more likely market for the book than mathematicians? The remainder of this paper addresses these questions by seeking to identify the group for whom bookkeeping was of as much interest as mathematics. Far from being a strange choice of material to include in SA, the bookkeeping treatise was a vital Sangster et al., Market for Pacioli 115 component that made SA a comprehensive reference book to its primary-intended readership. It seeks to approach this issue from two directions. First, having established that bookkeeping was taught in some schools in Renaissance Italy, consideration is given to other subjects taught to whom in those schools and, in particular, whether the curriculum included mathematics of the type included in SA. Second, consideration is given to the content of SA in relation to the major occupations and groups who may have had an inter- est in at least some of its topics when published, including those suggested by Yamey [2004]. MATHEMATICS AND SCHOOLING IN RENAISSANCE ITALY The developments of mathematics and accounting were intertwined during the Renaissance. Mathematics was in the midst of a period of significant development in the late 15th century. Hindu-Arabic numerals and algebra were introduced to Europe from Arab mathematics at the end of the 10th century by the Benedictine monk Herbert d’Aurillac [Hernández-Esteve, 2006]. But it was only after Leonardo Pisano (Fibonacci) put commercial arithmetic, Hindu-Arabic numerals, and the rules of algebra together in his liber abaci in 1202 that Hindu-Arabic numerals became widely used in Italy. Algebra did develop slowly over the following 300 years [Rankin, 1992]. Even in the late 15th century, the notations used when writing mathematical computations and algebraic equa- tions were not standardized and were far more cumbersome than today. There were no signs for plus, minus, divide, multi- ply, or equals; no use of superscripts for powers; no root symbol; and no use of letters to denote parameters/variables in algebra. In SA, Pacioli introduced the symbols (for piu, i.e. plus) and (for meno, i.e. minus) for the first time in a printed book, symbols that became standard notation in Italian Renaissance mathematics. SA was also the first known book printed in Italy and written in the vernacular (i.e. the spoken language of the day) to contain algebra.4 The manner in which mathematics developed in Renais- sance Italy owed much to the commercial revolution follow- ing the crusades and the resulting expansion of trade and the establishment of a system of agencies distant from the center 4 For more information on the development of mathematics, see Rose [1976], Grendler [1989, 2002], and Rankin [1992]. 116 Accounting Historians Journal, June 2008 of the business and long-term partnerships rather than one-off business ventures between two persons. Gras [1942, p. 28] de- scribes this as the rise of the sedentary merchant: “...a merchant too wise, too occupied, too economical to travel. His distant connections were maintained by agents, traveling or resident.... The outstanding sedentary merchants were called merchant princes.” De Roover [1956, p. 115] suggests that three factors integral to the commercial revolution of the 13th century contributed most to the progress of accountancy – partnership, credit, and agency. Consequently, as described by De Roover [1942, p. 35], one necessary result of this commercial revolution of the 13th century was the need for more advanced systems of accounting: One innovation of major importance was the current account kept in bilateral form, that is, the personal ac- count divided vertically into two columns, one for the debit and one for the credit. Later, double-entry book- keeping was introduced by adding impersonal accounts to the existing personal accounts. Good methods of bookkeeping were essential in order to keep accounts straight when two persons, residing in different cities, had numerous business dealings with each other. Mer- chants had to know where they stood, and accounting served as a guide by revealing profits and losses. Apart from the development of DEB, this expansion of trade gave rise in Italy to the development of mathematics useful for merchants based on Fibonacci’s liber abaci and called abbaco which meant solving practical, business-related mathematical problems on paper [Grendler, 1989, p. 308]. This term had little to do with the word “abacus” used for a counting frame other than sharing a common etymological root [Van Egmond, 1981, p. 5], a position reinforced by Pacioli himself who wrote on folio 19 (recto and verso) of SA that he thought that “abaco” was either a corrupted form of “modo arabico” or a Greek word. The emergence of abbaco led, in turn, to the creation of a new type of mathematician, the abachist, and to the founding of a new form of school, the abbaco (or abbacus) schools [see Rankin, 1979; Burnett, 2005; Blume et al., 2007]. 5 sometimes spelt, “abaco” 6 Many writers use the term “abbacus” or “abacus” instead of “abbaco” when referring to these vernacular schools, presumably because the abacus was used in these schools when they first began to appear in 13th century Italy. Use of the aba- cus in the schools soon ceased, replaced by pen, paper, and ink used to write num- bers in columns (“place-value numerals”) [see Pin, 1993, p. 168; Burnet, 2005]. Sangster et al., Market for Pacioli 117 Abachists: An abachist was a school teacher who taught boys8 commercial mathematics and elementary accounting (always in the vernacular) [Grendler, 2002, p. 420]. The accounting was of two main types, quaderno (the ledger) and far conti (book- keeping). Pacioli’s bookkeeping treatise is the first indication we have of how these topics, which were taught for many years before SA was published, were taught. [Grendler, 1989, p. 316] The majority of known abachists during the 14th and 15th cen- tury were Tuscan, mostly from Florence [Grendler, 1989, p. 308]. Domenico Manzoni,9 the author of what is considered the first important book on DEB after Pacioli’s bookkeeping treatise (on which it was directly based) [Peragallo, 1938, p. 60], first pub- lished in 1534, was an abachist [Grendler, 1989, p. 309]. Fibonacci’s liber abaci formed the basis for hundreds of abbaco texts written by the abachists which were used in the private and municipal schools where the sons of merchants were taught [Allen, 2000]. These texts were more than simply textbooks; they were didactical supports for the teachers, that is, instructor manuals [Pin, 1993, pp. 169-170]. The oldest surviving example of these texts dates from the late 13th century. Schools in Renaissance Italy: Trade and, therefore, merchants dominated Renaissance Italy, and one of the results of their dominance was the creation of private and municipal schools in which their sons and the sons of craftsmen were educated. All lessons were given in the vernacular [Grendler, 2002, p. 420] with a focus on the teaching of abbaco. The curriculum of the vernacular schools emerged from the merchant culture and was designed to prepare sons of merchants and craftsmen for their future working lives [Grendler, 1990]. There was another parallel set of schools, the Latin (either scholastic or humanist) schools, where the sons of the privileged were taught in Latin. The two sets of schools taught very different subjects. The Latin schools sought to teach the future leaders of society and those that aided them, e.g., secretaries and lawyers [Grendler, 1989, p. 311]. They specialized in the trivium of grammar, rhetoric, and logic. Abbaco was never included “because it added nothing to the social status and goals of their students” [Grendler, 1989, p. 311]. On the rare occasions when mathe- 7 sometimes spelt “abacist;” sometimes referred to as “abacus master” 8 Very occasionally, girls were also taught by the abachists. 9 Manzoni also published a self-teaching book in 1550 covering his vernacular school’s entire primary and secondary level curricula [Grendler, 1989, p. 309]. 118 Accounting Historians Journal, June 2008 matics was taught in these schools, it took the form of “classical or medieval Latin mathematics” [Grendler, 1989, p. 309]. In contrast to the vernacular schools, boys leaving the humanist schools often went to university. Typically, the boys in the vernacular primary schools were aged between six and ten and were taught reading, writing, business correspondence, and notarial formulas. From 11, they moved to vernacular secondary schools, the abbaco schools, where they read books by the likes of Aesop and Dante and abridged vernacular versions of Fibonacci’s liber abaci.10 Pin [1993, p. 168] and Grendler [2002, p. 420] provide lists of the topics they covered, including elementary accounting and how to solve business-related problems, such as interest calcula- tion, loans discount, money exchange, partnership divisions, measurement, currencies, weights, and distance problems. “The mathematics employed combined arithmetic, [computing with numbers, especially decimals], algebra, geometry, and what might be called ingenious reasoning” [Grendler, 2002, p. 420]. They were also taught some basic Latin grammar at some point of their education, often at the vernacular primary school, sometimes after the abbaco teaching was completed, but the vast majority of the vernacular secondary school teaching was in commercial mathematics for merchants focused on two main elements, geometry and arithmetic. At the core of the arithmetic was the study of proportion. The main rule taught in this area was the “rule of three,” a very simple method of finding an un- known from three known inter-related items still in use today [Baxandall, 1972, p. 94]. Boys in the vernacular schools learnt how to use the rule to solve problems involving many more vari- ables by reducing such problems down to one involving three inter-related known items and one unknown. An example of the rule of three is the following: if you want to know how much 500g of oats will cost when the price of 600g is $3, you multiply $3 by 500 and divide by 600 and get the answer, $2.50. The rule of three was used for all manner of problems during the Renaissance, including discount, barter, and currency exchange. Virtually half the content of all known books on arithmetic of that era focused on this one rule [Baxan- 10 In some schools, different sequencing of topics was used. Some, for exam- ple, taught reading, writing, abbaco, and accounting to boys as young as six but, overall, the subjects studied across the vernacular schools were relatively similar. Accounting was taught more in the major commercial centers like Venice than elsewhere, and abbaco was not taught in a small number of the schools [see Gren- dler, 1989 for a detailed description of schooling in Renaissance Italy]. Sangster et al., Market for Pacioli 119 dall, 1972, p. 96]. In modern-day schooling, we learn the same technique through concepts such as distance equals speed times time and questions such as, if it takes one man a week to dig a ditch, how long would two men take to dig the same ditch? As a result, all those educated in the vernacular schools were well-prepared for a career in commerce. They knew elementary accounting, how to read and write, and basic Latin grammar, which meant they could recognize, read, and understand some Latin. Although they would not have had sufficient fluency in Latin to attend university, they would not appear completely ignorant by comparison. They also had a good grounding in geometry, arithmetic, and proportions which, by virtue of their focus in the schools, was most relevant to merchants and cus- tomers of merchants as well as craftsmen such as artists, archi- tects, engineers, and stonemasons. Their knowledge of mathematics formed a major part of their set of personal skills. They used it daily, not just in their work. It was such a part of their overall knowledge that they joked about it, played games using it, bought books on it, and were extremely proud of their ability to apply it [Baxandall, 1972, p. 101]. SUMMA ARITHMETICA Luca Pacioli was not simply a friar and a university teacher, he was also an abachist. He taught abbaco and bookkeeping to the sons of a merchant, Rompiasi, in Venice for six years from 1464 [Grendler, 1989, p. 320]. Camerota [2006, p. 327] wrote: Pacioli, one of the foremost abacus masters, was active not only in the abacus schools but also in the artists’ workshops. Among his pupils were painters, architects and stonemasons, and the applications of Euclidean geometry are specifically identified by him as pertinent not only to the art of merchants and surveyors, but also to architecture, linear perspective, sculpture, wooden inlays, fortifications, the construction of machines and the arraying of armies. Pacioli used the title “Magister” [Taylor, 1942, p.148], which in- dicated that he was a pre-university teacher11 [Grendler, 1989, p. 11 Others, including Taylor [1942, p. 149], take Pacioli’s use of the title “Mag- ister” to mean he had been awarded a higher university degree between 1480 and 1486, during which period his name is completely absent from any extant uni- versity roll. It does seem that the abachist sense of the word is more plausible in this case.