Why the Goblins Control the Money (WAS: What's in Sirius' Vault?

[elfundeb2]

No: HPFGUIDX 60299

Sabrina writes:
> 
> > Actually, I have always had a problem with the goblins running 
the only
> > wizarding bank (p.63 SSpb). In History of Magic we hear over and 
over again
> > about Goblin rebellions all over the place. Who would put 
basically their
> > whole economy in the hands of people (beasts?) who are 
> > perhaps only waiting
> > for a way to overthrow the current government?
> 
Brief Chronicles responded:
> 
> Two possibilities come to mind:
> 
> 1 -- They've seen the error of their ways and that's what's 
important about studying them in school. They've learned that they 
can use their energy to protect things rather than take over and 
destroy them, so they decided to be bank managers -- and they're the 
best.
> 
> 2 -- Part of their punishment for spreading havoc all over the 
world for so long is to spend eternity working at Gringott's, as if 
they were House Elves. Could there be a magically-binding contract 
that forces them to do this because they broke some sort of peace 
treaty?
> 
Here another possibility:

3.  As part of a long-ago treaty ending the goblin rebellions, the WW 
ceded control over the money to the goblins, but continues to provide 
services that require wizard skills.  This would explain why Bill 
Weasley works for Gringotts as a curse-breaker.  The benefit of this 
for wizards is that they don't have to deal with Muggle currency 
exchange.  The goblins get all the economic benefits, plus free rein 
that allows them an entree into related businesses. I'll bet the 
goblins' currency exchange methods resemble money laundering more 
than anything else, but putting the goblins in charge of it allows 
the wizards to keep their hands clean and allows the wizards to avoid 
contact with Muggles, yet obtain Muggle money when necessary.  
Perhaps at the time of the deal the WW didn't recognize the danger of 
letting their historic enemies control the banking industry, or 
perhaps the goblin rebellions were so frightening that anything was 
worth it as long as peace prevailed. 

There's also the fact that in the Middle Ages moneylending was looked 
upon as an unclean profession due to a perceived Biblical prohibition 
on usury, and therefore moneylending became the province of persons 
outside the predominant Christian culture.  Since the WW had not 
split with the Muggle world at that time, it may have been influenced 
by Muggle attitudes when it allowed the goblins to take control.

Debbie