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AT L A N T I S S T U D I E S I N CO M P U TAT I O N A L FI N A N C E
AND FINANCIAL ENGINEERING
Benedek Láng
Benedek Láng
B. Láng / Atlantis Press B.V. / Amsterdam University Press B.V., Amsterdam 2018
Some rights reserved. Without limiting the rights under copyright reserved above, any part of
this book may be reproduced, stored in or introduced into a retrieval system, or transmitted, in
any form or by any means (electronic, mechanical, photocopying, recording or otherwise).
Table of contents
Abbreviations7
Note on terminology 9
Note on names 11
1. Introduction 13
6. Ciphers in action 85
6.1. Sharing the key 85
6.2. Replacing the cipherkeys 90
6.3. The tiresome work of enciphering 93
6.4. The cryptologist 94
6.5. Cautious and reckless encryption 95
6.6. Sand in the machine 99
6 REAL LIFE CRYPTOLOGY: CIPHERS AND SECRE TS IN EARLY MODERN HUNGARY
9. Summary 179
Acknowledgements207
Earlier publications 209
Bibliography211
Index221
Abbreviations
In the early modern times, person names were used inconclusively: some-
times in the language of the country of origin of a given person (which
is not necessarily identical with his or her nation), sometimes in Latin,
and – particularly in the countries under the Habsburg crown – sometimes
in German. I made an attempt at using those name versions in each case
that were the most frequently used in the sources and in the secondary
literature for a given historical actor. These were most often those varia-
tions that refer to the country of birth. I did not wish to follow those schol-
ars, who anglicize the Hungarian, German, Italian and other names, which
have never been used in English (and write Francis Rákóczi, instead of
Ferenc Rákóczi). I only anglicized emperors’ names, such as Charles V or
Ferdinand I, when these are the most widespread versions in the secondary
literature.
1. Introduction
What do the following people have in common: the Hungarian poet whose
private life is in crisis while he is in litigation with his family; the Serbian
secret agent whose life is in danger while he is sending crucial information
to the imperial court; the Transylvanian master of the mint who is eager
to protect his technical knowledge; the Hungarian magnate who despises
both the Turkish and the Habsburg powers; the Emperor in Vienna who
corresponds with his ambassador in Constantinople; and the Archbishop
who is writing to his Italian delegate? These people stood on various levels
of social hierarchy. Though they were all literate, their education and cul-
tural backgrounds differed, as did their political power and influence on
history. Yet, they all applied the same means when trying to protect their
messages from prying eyes: the technology of ciphering.
Even though they and their secret writings have long been known, this
monograph is the first systematic work on the history of ciphers of early
modern Hungary. Its conclusions have been formed through the systematic
collection and analysis of sources that come in remarkably high numbers.
The most important argument of this book, as stated in the lines above, is
that the social and political background, the intentions, the cryptographic
skill and choice of tools of those using cryptographic methods in the six-
teenth and seventeenth centuries show a much more significant variation
than the traditional scholarship – concentrating primarily on the practice
of diplomacy – had shown. The second argument – closely related to the
first one – is that studying the variety of attitudes of this wider social envi-
ronment of cryptography and the many ways people made use of encipher-
ing methods is an approach that will help reintegrate the history of ciphers
in the growing scholarship on secrecy. In other words, studying cryptogra-
phy not only as a scientific technology, but rather as a complex system of
social practices, will enrich the traditional “internalistic” approach to this
branch of the history of science and will situate it in the context of social
history.
The source material used as a sample to demonstrate these arguments
comes from early modern Hungary that – because of its history particularly
rich in conflicts in this period – provides ample resources for such an exam-
ination. I do not wish to claim that no other region could have provided this
richness of resources to such research, as I will show in detail later. The as-
sumption that Hungarian history is more abundant in secret writings than
other countries is in itself to be examined and presently I would refrain
14 REAL LIFE CRYPTOLOGY: CIPHERS AND SECRE TS IN EARLY MODERN HUNGARY
1 William Eamon, Science and the Secrets of Nature: Books of Secrets in Medieval and Early
Modern Culture (Princeton: Princeton University Press, 1994).
2 Il Segreto / The Secret, ed. A. Paravacini Bagliani, Micrologus, vol. XIV (Florence: Sismel, 2006).
3 William Newman and Anthony Grafton, eds. Secrets of Nature: Astrology and Alchemy in Early
Modern Europe (Cambridge, MA: The MIT Press, 2001).
4 Gisela Engel, Brita Rang, Klaus Reichert and Heide Wunder, eds. Das Geheimnis am Beginn
der europäischen Moderne (Frankfurt am Main, Klostermann, 2002).
5 Karma Lochrie, Covert Operations: The Medieval Uses of Secrecy (Philadelphia: University of
Pennsylvania Press, 1999).
16 REAL LIFE CRYPTOLOGY: CIPHERS AND SECRE TS IN EARLY MODERN HUNGARY
discover how the act of sharing a secret becomes a tool of group formation
and group cohesion.6
Pamela Long juxtaposed the openness of mining treatises with the se-
crecy of alchemical writings while exploring the role of authorship in the
history of technology in an age when the notion of intellectual property
had to be reinterpreted.7 One of the many merits of her analysis is that she
makes an effort to define the notions of secrecy and openness appropriately.
Going back to the fundamental work of the philosopher Sissela Bok from
1982,8 Long defines secrecy as “intentional concealment”, and distinguishes
it, first of all, from privacy and secondly from the unknown, such as the
secrets of nature.9
Walking in Long's footsteps, Koen Vermeir makes the relationship of
secrecy and openness more explicit. By conducting a concept analysis as
well as providing historical examples, he argues that the two concepts
are not necessarily negating one another, and therefore they cannot
be defined as each other's opposites. He claims that both secrecy and
openness are categories with a range: things are not either completely
secret or absolutely public – they are partly hidden to certain groups,
while being partially public for another audience.10 (This argument is
not entirely novel. As early as 1970 John Cohen wrote that the secrecy of
a given information is not an absolute feature; rather, it should be seen
as a scale measuring how carefully one hides information, what risks one
takes to keep it secret, and what obstacles anyone who wants to uncover
this secret might face. As Cohen mentions, secrecy can only be defined
in relation to a community with which one wishes to share the secret
information.)11
Vermeir goes on to emphasize that “secret as content” and “secrecy as ac-
tion” do not necessarily coincide, however close these two categories may
seem to be at first sight. Many handbooks – both historical and contempo-
rary – that contain “secrets” that only a selected audience is supposed to
know are in fact widely publicized (secret without secrecy), while the se-
crets of some esoteric circles seem banal or empty once they are uncovered
12 Vermeir, op. cit. and Pamela O. Long, “The Openness of Knowledge: An Ideal and its Context
in 16th-Century Writings on Mining and Metallurgy,” Technology and Culture 32 (1991): 318–355.
13 Sigila, publication semestrielle transdisciplinaire consacrée à l'analyse de la figure du secret,
1998-.
14 Aleida Assmann and Jan Assmann, eds. Geheimnis und Öffentlichkeit (Schleier und Schwelle
I, Munich: Fink, 1997); Geheimnis und Offenbarung (Schleier und Schwelle II, Munich: Fink, 1998);
Geheimnis und Neugierde (Schleier und Schwelle III, Munich: Fink, 1999).
15 Among others: Philippe Dujardin, ed. Le Secret (Lyon, Presses Universitaires de Lyon, 1987)
18 REAL LIFE CRYPTOLOGY: CIPHERS AND SECRE TS IN EARLY MODERN HUNGARY
where he made this observation when presenting his views on the future
research directions of secret books.16
The secondary literature, just like the topic itself, is rather rich. Authors
make a serious attempt at contextualizing the phenomenon of secret by
reconstructing the social background, aspects and consequences of secre-
cy. A common characteristic of them, however, is that they rarely mention
a major means of secrecy, that is, secret writing (cryptography and code
breaking), and when they do, they concentrate on its application in the
political domain and on its technological evolution. The neglect of cryp-
tography in secrecy studies is fairly surprising; one cannot but agree with
Dejanirah Couto, who argued in her article on early modern espionage in
the Ottoman Empire, that “without cryptography, secrecy lacks material
form or readability”.17 The context of secret writings is secrecy, and the con��
-
text of studying them should be the literature of secrecy.
16 William Eamon, “How to Read a Book of Secrets” in Elaine Leong és Alisha Rankin, eds. Secrets
and Knowledge in Medicine and Science 1500–1800 (Surray: Ashgate, 2011), 23–46, particularly: 39.
17 Dejanirah Couto, “Spying in the Ottoman Empire: Sixteenth-Century Encrypted
Correspondence,” in Francisco Bethencourt and Florike Egmond, eds. Cultural Exchange in Early
Modern Europe (Volume III) – Correspondence and Cultural Exchange in Europe, 1400–1700
(Cambridge: Cambridge University Press, 2007) 274–312, particularly: 278.
18 Robert Merton, “Science and technology in a democratic order,” Journal of Legal and Political
Sociology 1 (1942): 115–126.
Uncovered fields in the research literature 19
positive value that supports academic research, and that secrecy, which
is more characteristic of the history of technology, was fortunately aban-
doned by modern science. Science, on this understanding, has become
open, whereas technology remained secretive.19
This view was, of course, challenged both in regard to the past and the
present of the scientific practice. John Ziman pointed out that Merton's
norms are constantly being violated in the twentieth century, and these
violations are somewhat natural in the so-called post-academic phase of
science.20 Since corporations are taking the place of national academic in�� -
stitutions in financing scientific research, they exert a growing influence on
the object of research along with the degree of its publicity. In the mean-
time, historians examining early modern science and technology realized
that retaining, hiding, or restrictedly sharing information had a much
greater and more constructive importance in science and craft industry
than previous authors had believed.21
A recent thematic issue of The British Journal of the History of Science
illustrates vividly how historiographical research has moved from the con-
ventional and unreflective view that contrasted openness and secrecy,
mapping this pair of opposites onto another one, that of science and tech-
nology.22 Editors Koen Vermeir and Dániel Margócsy argue that the focus
of the research on secrecy has been narrowed down too much to the very
topic of secrets themselves, when in fact practices of secrecy would be a
more fruitful object of investigation. As Georg Simmel put it, in what is per-
haps the first systematic analysis of the social role of secrecy, it functions
as the principle of social hierarchy: “Secrecy gives the person enshrouded
by it an exceptional position; it works as a stimulus of purely social
derivation, which is in principle quite independent of its casual content.”23
19 David Hull, “Openness and secrecy in science: their origins and limitationsm,” Science,
Technology and Human Values 10 (1985): 4–13; Ernan McMullin, “Openness and secrecy in science:
some notes on early history,” Science, Technology and Human Values 10 (1985): 14–23.
20 John M. Ziman, “Postacademic Science: Constructing Knowledge with Networks and Norms,”
Science Studies 9 (1996): 67–80.
21 See Koen Vermeir and Dániel Margócsy, “States of secrecy: an introduction.” The British Journal
for the History of Science, 45 (2012): 153–164; Karel Davids, “Craft Secrecy in Europe in the Early
Modern Period: A Comparative View,” Early Science and Medicine, 10 (No. 3, Openness and Secrecy
in Early Modern Science) (2005): 341–348; Stephan R. Epstein, “Craft Guilds, Apprenticeship, and
Technological Change in Preindustrial Europe,” The Journal of Economic History 58 (1998): 684–713.
22 The British Journal for the History of Science 45 (2012), Special Issue: States of Secrecy. Editors:
Koen Vermeir and Dániel Margócsy.
23 Georg Simmel, “The sociology of secrecy and of secret societies,” American Journal of
Sociology 11 (1906): 441–498, particularly: 464 and 478.
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