History
Prior to the professionalization of the armed services of European nations subsequent to the French Revolution, a captain was a nobleman who purchased the right to head a company from the previous holder of that right. He would in turn receive money from another nobleman to serve as his lieutenant. The funding to provide for the troops came from the monarch or his government; the captain had to be responsible for it. If he was not, or was otherwise court-martialed, he would be dismissed ("cashiered"), and the monarch would receive money from another nobleman to command the company. Otherwise, the only pension for the captain was selling the right to another nobleman when he was ready to retire.
Read more about this topic: Captain (OF-2)
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