Merchants visited Meadowview (now town and surrounding fields). They sold their wares, and bought others to take back. Leftover Meadowview money they banked with Stephen, who would look after it. Now through Stephen, these merchants found a way of keeping the money active. They would lend it, and be paid back at a slightly higher rate. No need to be grateful, or loyal; just pay it back with a little interest for the service. This meant they were no longer limited by, or dependent upon, Peter and Susan for their companies.
Peter and Susan warned the people: the merchants were foreigners who didn’t care about them; and besides, it was perverse to lend 10 and expect 11 back… how had the merchant earned the extra 1? And, did he protect them? No. So to protect their people they banned it. By and large though, it was an unpopular move, for the merchants provided goods and services for which the people had developed an appetite.
Soon, Peter and Susan (of the 25th generation) realised that if they couldn’t beat these merchants they would join them. They sent out trade parties to other towns (“principalities”), to see what they could get by hook or crook. And on the other hand they demanded taxes from the merchants on the money made in their principality.
Soon they (like many merchants, bankers, and other princes) had accumulations of money, companies, goods everywhere and they called this accumulation capital.