Mrs. Wunderle lives in the Fuggerei, a Roman Catholic housing settlement for the poor that Jakob Fugger "The Rich" built in this southern German city nearly 500 years ago.
Praying for Mr. Fugger and his descendants to enter the Pearly Gates is a condition for living here, at an annual rent of 1 Rhein guilder, the same as in 1520. In today's money, that's 88 euro cents, or about $1.23.
Jakob the Rich was Wall Street long before it existed. He minted coins for the Vatican, bankrolled the Holy Roman Empire and helped steer Europe's spice trade in the early 16th century to become one of the wealthiest and most powerful financiers in history. He left more than seven tons of gold to his successors -- and a good deed.
Much of the Fugger business empire crumbled over the next 150 years, battered by wars and soured credits. But the walled Fuggerei, with its picturesque lanes and seven gates in the heart of this onetime European banking capital, still stands.
As in medieval times, the Fuggerei enclave is locked at night. Residents take turns manning the gatehouse to open up for late stragglers and fine them (between 50 cents and a euro, depending on the hour).
Every 500- to 700-square-foot apartment has its own entrance leading to a lane or a courtyard, giving it the feel of a house. The buildings are pretty, the architecture elaborate. The handles on the iron doorbells have different shapes such as a cloverleaf and a pine cone -- a holdover from when there was less lighting and residents needed help at night to recognize their doors.
Jakob the Rich hailed from a weaver-turned-merchant family that was already wealthy by the time he was born in 1459. He built an even bigger fortune running a silver-mining operation and a major trade route to Venice. He also turned to investment banking and was wildly successful, securing the Vatican as a client and financing a trade expedition to India.
By the early 16th century, he had become the chief financial backer of the Habsburg family, whose members sat on thrones across Europe. He bankrolled the election of Spain's King Charles V as Emperor of the Holy Roman Empire in 1519. The connections were good for business. The wheeler-dealer from once-sleepy Augsburg was reputed to be the richest man in Europe.
Financial success brought Jakob the Rich critics, not the least of them Martin Luther, the Protestant reformer. Luther pointedly asked whether it was God's will that so much wealth and influence be concentrated in one person. At the time, many people believed that simply charging interest constituted immoral "usury."
So around 1520, the controversial banker set up a charitable trust in the name of Augsburg's local St. Ulrich. Jakob Fugger allocated a bit more than 10,000 guilders in start-up money -- a sliver of his fortune -- to build a settlement for the indigent. Within a few years, 52 houses with 106 apartment units had been constructed. A steady stream of out-of-luck painters, printers and other laborers began passing through the Fuggerei's gates with their families.
Franz Mozart, a bricklayer and the great-grandfather of the composer Wolfgang Amadeus Mozart, lived here in the late 17th century.
The Fuggers still own several castles and other businesses, including a residual stake in a small private bank that carries the family name. But they aren't nearly as rich as they once were. After reaching its zenith in the mid-16th century, the Fugger banking empire was undermined by wars and the repeated bankruptcies of the Spanish state.
The charitable trust, however, has been careful in its investments. Most revenue for the upkeep of the Fuggerei comes from old forestry holdings, which became a staple investment for the Fuggers in the late 17th century after they got burned on higher-yielding but riskier financing ventures.
Over the past 200 years, the trust's annual returns after inflation have ranged from 2% in a good year to 0.5% in a bad year, estimates Wolf-Dietrich Graf von Hundt, the administrator.
more
In This Picturesque Village, the Rent Hasn't Been Raised Since 1520 - WSJ
Praying for Mr. Fugger and his descendants to enter the Pearly Gates is a condition for living here, at an annual rent of 1 Rhein guilder, the same as in 1520. In today's money, that's 88 euro cents, or about $1.23.
Jakob the Rich was Wall Street long before it existed. He minted coins for the Vatican, bankrolled the Holy Roman Empire and helped steer Europe's spice trade in the early 16th century to become one of the wealthiest and most powerful financiers in history. He left more than seven tons of gold to his successors -- and a good deed.
Much of the Fugger business empire crumbled over the next 150 years, battered by wars and soured credits. But the walled Fuggerei, with its picturesque lanes and seven gates in the heart of this onetime European banking capital, still stands.
As in medieval times, the Fuggerei enclave is locked at night. Residents take turns manning the gatehouse to open up for late stragglers and fine them (between 50 cents and a euro, depending on the hour).
Every 500- to 700-square-foot apartment has its own entrance leading to a lane or a courtyard, giving it the feel of a house. The buildings are pretty, the architecture elaborate. The handles on the iron doorbells have different shapes such as a cloverleaf and a pine cone -- a holdover from when there was less lighting and residents needed help at night to recognize their doors.
Jakob the Rich hailed from a weaver-turned-merchant family that was already wealthy by the time he was born in 1459. He built an even bigger fortune running a silver-mining operation and a major trade route to Venice. He also turned to investment banking and was wildly successful, securing the Vatican as a client and financing a trade expedition to India.
By the early 16th century, he had become the chief financial backer of the Habsburg family, whose members sat on thrones across Europe. He bankrolled the election of Spain's King Charles V as Emperor of the Holy Roman Empire in 1519. The connections were good for business. The wheeler-dealer from once-sleepy Augsburg was reputed to be the richest man in Europe.
Financial success brought Jakob the Rich critics, not the least of them Martin Luther, the Protestant reformer. Luther pointedly asked whether it was God's will that so much wealth and influence be concentrated in one person. At the time, many people believed that simply charging interest constituted immoral "usury."
So around 1520, the controversial banker set up a charitable trust in the name of Augsburg's local St. Ulrich. Jakob Fugger allocated a bit more than 10,000 guilders in start-up money -- a sliver of his fortune -- to build a settlement for the indigent. Within a few years, 52 houses with 106 apartment units had been constructed. A steady stream of out-of-luck painters, printers and other laborers began passing through the Fuggerei's gates with their families.
Franz Mozart, a bricklayer and the great-grandfather of the composer Wolfgang Amadeus Mozart, lived here in the late 17th century.
The Fuggers still own several castles and other businesses, including a residual stake in a small private bank that carries the family name. But they aren't nearly as rich as they once were. After reaching its zenith in the mid-16th century, the Fugger banking empire was undermined by wars and the repeated bankruptcies of the Spanish state.
The charitable trust, however, has been careful in its investments. Most revenue for the upkeep of the Fuggerei comes from old forestry holdings, which became a staple investment for the Fuggers in the late 17th century after they got burned on higher-yielding but riskier financing ventures.
Over the past 200 years, the trust's annual returns after inflation have ranged from 2% in a good year to 0.5% in a bad year, estimates Wolf-Dietrich Graf von Hundt, the administrator.
more
In This Picturesque Village, the Rent Hasn't Been Raised Since 1520 - WSJ