The important and difficult subject of the development of capitalistic organization is treated by John A. Hobson, *Evolution of modern capitalism, new ed., 1916, chap. 1, W. Sombart, **The quintessence of capitalism: a study of the history and psychology of the modern business man, London, 1915, and by Pirenne, *The stages in the social history of capitalism, American Hist. Rev., Apr. 1914, 19: 494-515. One aspect of the subject is covered by Arthur H. Woolf, Short history of accountants and accountancy, London, 1912. CHAPTER XIV COMMERCE AND POLITICS IN THE LATER MIDDLE AGES =138. Development of the modern political system in the later Middle Ages.=—Toward the close of the Middle Ages the feudal system of government gave place gradually to a system more like that which the Romans had established and with which we are familiar now. As trade and intercommunication increased, and towns grew up holding a population of considerable wealth, the kings found it possible to make into a reality the position of nominal headship which tradition and the church conferred upon them. They found in the mercantile and manufacturing classes people who could afford to pay taxes, and who were willing to pay large sums to be relieved from the oppressions of the feudal lords. It became possible once more to transport supplies and to send troops to distant localities, and the kings devised means by which they could keep in touch with their officials, and hold them to loyal service. The result was a great increase in the power of the central government, at the expense of the feudal lords. =139. Variety of development in different countries.=—The development, as sketched above, was very different in the different countries. It came early in England, and local lords lost practically all of their independence. In France it was a very gradual process, extending over the last four centuries of the Middle Ages. Even in the sixteenth century and later, the kings, though they seemed to enjoy great power, did not abolish all the remnants of feudalism, which continued down to the French Revolution in 1789, to the great harm of industrial development. In Spain the union of the crowns of Castile and Aragon just before 1500 completed the process, by establishing nearly absolute royal authority over the greater part of the peninsula. In Germany and Italy the result was different. The same man, who called himself the Emperor of the Romans, claimed the royal power in both countries, but in attempting too much he lost everything. He wasted the royal resources in vain attempt to establish his authority, and became a mere figure-head. The control of government passed in those countries to local authorities; but it is important to note that these included not only feudal lords, but also cities which had become strong enough to throw off feudal authority and to establish for themselves almost complete independence.