The Mediterranean merchant was the great minister to the growing luxury of mediæval England. “The estates and lords of the realm” and bishops and prelates and parish priests bought from him cloth of gold, rich brocades, vestments of white damask powdered with gold of Venice,[113] and precious work of goldsmiths and jewellers, new-fashioned glass, and many other fine things—articles that “might be forborn for dear and deceivable,” grumbled the English dealer in homely goods of native manufacture. The whole luxurious traffic down to the “apes and japes and marmosettes tailed, nifles, trifles, that little have availed,”[114] roused the bitter jealousy of the home trader; and even statesmen foretold with alarm the perils that must come to the nation from a commerce which filled the land with fancy baubles and vanities, and carried away in exchange the precious wealth of the people, their cloth and wool and tin, sucking the thrift out of the land as the wasp sucks honey from the bee. But in spite of the hostility of English dealers needy kings anxious to win favour with the great banking companies of Italy diligently encouraged the trade; and (always in consideration of adequate tolls for privileges) freed merchants who came from beyond the Straits from the vexatious control of the Staple;[115] allowed their vessels to put into port undisturbed at Southampton instead of being forced to go to Calais; and their agents to travel through the country and buy and sell at will.

It was Florence which in the first half of the fourteenth century took the lead in the trade of the Mediterranean with England,[116] and whose merchants lent to Edward the Third the money which alone enabled him to carry on the war with France. But when Edward declared himself unable to pay his debts and repudiated the whole of the Florentine loans ruin fell on the city; its trade was paralyzed, and commercial disasters ended in political revolution. Bankers of Lübeck took the place of its financiers as the Rothschilds of the mediæval world; and ship-masters of Genoa seized the commerce which fell from its hands. Though the winning of the port of Leghorn in 1421 brought a fresh outburst of trading activity to Florence,[117] though its merchants established depots and banks and commercial settlements in all the great towns of the North, though cargoes of wool were again shipped to its harbour (one English merchant alone in 1437 selling to an agent of the Albertine Company wool to the value of almost £12,000),[118] the supremacy of the Republic in the Mediterranean trade was never restored.

For its great competitors, Genoa and Venice, were now fairly in the field. Through their station on the Black Sea the Genoese held until the Turkish conquest the chief market in the East for European cloth; and their fleets laden with cloth of gold, silk and spices of the Levant, with alum and mastick from the subject islands of Chios and Phocœa, with the woad of Toulouse, and the wines of Provence, sailed to Southampton to exchange their cargoes for English cloth, which they sometimes carried back direct to the Black Sea, and sometimes took on to sell at the Flemish markets, and so make a double profit on their journey.[119] For their world-wide business the Bank of St. George was founded at Genoa in 1407, with a system of credit notes of acknowledgement for money deposited which could be transferred from hand to hand.

The great galleys of Venice, however, were formidable rivals of the carracks of Genoa. For Venice, hidden away in the Adriatic, with nothing of its own save salt to offer, showed in perhaps a higher degree than any other Italian State what might be achieved by a lavish system of State protection.[120] It was the State that built its merchant fleets; the State that leased out the vessels every year to the highest bidders for trading purposes; the State that ordered the conduct of their business for the greatest public wealth; the State that protected them from competition by forbidding its citizens to send out their spices by the overland route, or to take in cloth from England that had not been carried in Venetian galleys by long sea. By the authority of its government Venice had been made the emporium of the Mediterranean, and Italian traders obediently carried cloths or tin or bales of skins from England to Venice, and from Venice to Corfu. Fortune favoured the most astute among her wooers, and showered on Venice the coveted blessings of trade. Her ships travelled far, and Italian merchants who had once been only known in England as financial agents employed by the Papal Court to collect the tribute due to Rome, now flocked to the island on business of a very different character. The harbour of Southampton was crowded with galleys, in which cunning tailors sat day and night cutting the bales of material bought into garments, so as to save the export dues on cloth.[121] In the time of Richard the Second a Genoese merchant who had leased the castle as a storehouse for his wares proposed to the King to make of Southampton the greatest trading port of the west, and he might well have carried out his promise if the London merchants had not prudently sent a messenger to murder him at his own door.[122] Notwithstanding the inhospitable and grudging welcome given by London itself the Lombards found means by the King’s help to maintain a thriving settlement, and in the fifteenth century the Venetian Consuls gathered letters for the regular mail to Venice once every month.[123]

What the Venetians were to the commerce of the Mediterranean that the merchants of the Hanseatic League were to the commerce of the Baltic and the German Ocean. A double strength had been given to the confederation of towns which Lübeck had drawn under its banner by its union with the Teutonic Order—an order which had originated in Bremen and Lübeck and then settled on the Baltic to create the trading prosperity of Danzig and Elbing. These Prussian cities, while they owned the Grand Master of the Order of Teutonic Knights as their feudal chief, were still dependent on Lübeck.[124] And with them were joined a multitude of towns so imposing in their very numbers alone that when the ambassadors of the Hanseatic League in England in 1376 were asked for a list of the members who made up their vast association, they answered scornfully that surely even they themselves could not be supposed to remember the countless names of towns big and little in all kingdoms in whose name they spoke.[125] Under the strangely diverse lordship of Kings, Dukes, Margraves, Counts, Barons, or Archbishops, they found a link in their common union in the Holy Roman Empire, and ever counted England, cut off from that great commonwealth, as a “foreign” nation.[126]

In war or in commercial negotiations this mighty confederation, with its members disciplined to act together as one body, dealt proudly as a nation on equal terms with other peoples, and in the strength of its united corporation it was in fact a far more formidable force than the jealous and isolated Republics of the South. Denmark was laid at its feet by a triumphant war. Norway was held in complete subjection. It forced the English traders in the North Sea to bow to its policy and fight at its bidding. So powerful was the League in the fourteenth century, that when Edward the Third had ruined the banks of Florence it was the merchants of Lübeck who became his money-lenders; they were made the farmers of the English wool-tax; they rented the mines of the northern counties and the tin-works of Cornwall.[127] The whole carrying trade of the northern seas lay in their hands. It was vessels of the Hanse that sailed from Hull or from Boston to Bergen with English wares and brought back cargoes of salt fish;[128] that fetched iron from Sweden, and wine from the Rhine vineyards, and oranges and spices and foreign fruits from Bruges; and that carried out the English woollen cloths to Russia and the Baltic ports, and brought back wood, tin, potash, skins, and furs. Within the strong defences of their Steel-yard[129] on the banks of the Thames by London Bridge, the advance guard of the League lived under a sort of military discipline, and held their own by force of the King’s protection against the hatred of London traders and burghers, which now and then burst into violent riots.

Thus throughout the fourteenth century it was strangers who held the carrying trade to England along the two great commercial routes—the passage by Gibraltar to the harbours of Italy and thence to Alexandria, and the passage by the Sound to the Baltic ports and so to Novgorod. All the profits of transit as of barter were secured by alien dealers who travelled from village to village throughout the country in search of wool or cloth to freight the foreign vessels that lay in every harbour—vessels bigger and better built for commerce than any of which England could boast.[130] Moreover, the English government was content to have it so, and Kings who wanted to build up alliances for their foreign wars, or to replenish their failing treasury at home, in all commercial regulations showed their favour mainly to foreign traders and left the native shipowner to do as best he could for himself. Once, indeed, in the reign of Richard the Second, a solitary attempt was made to encourage the shipping industry, and the first Navigation Act passed in England ordered “that none of the King’s liege people do from henceforth ship any merchandise in going out or coming within the realm of England but only in ships of the King’s liegance.”[131] This Act, however, after the fashion of the time, was only to be in force for a few months; and after very brief experience Parliament wisely decided that the law need only be obeyed when “the ships in the parts where the said merchants shall happen to dwell be found able and sufficient ... and otherwise it shall be lawful to hire other ships convenient.”[132] With this the experiment of State protection came to an end for the next century; and against the great confederations and State-protected navies of the Continent English merchants were left to wage singly as best they could their private and adventurous war.

English shipping, indeed, so far as it existed at all, may be said to have existed in spite of the law. There was no navy whatever in any national sense. A few balingers[133] and little coasting vessels lay in the various ports—some of them belonging to private merchants, some to the town communities—and when the King wanted ships for the public service, whether it was to fish for herrings for his household or to fight the French, he simply demanded such vessels as he needed in any harbour, kept them and their crews waiting on his will for weeks or months, sent them wherever he chose, and laid all costs on the town or the owner’s shoulders.[134] Moreover, the unlucky merchant forfeited his ship to the Crown for any accident that might happen on it—if a man died, or fell overboard, or if it struck another vessel or touched a rock. The masters might suffer ruin, or in mere self-defence give up the owning of ships, and the sailors might forsake the sea and turn to other occupations to escape being impressed for war: government interference to regulate wages only sent men to take service at more tempting pay in foreign boats.[135] We cannot wonder that towards the end of the fourteenth century it seems to have been thought more profitable under these conditions to make ships for others than to own them, and that builders were selling their vessels to aliens, and these aliens “by reason of the excessive profits thence arising have often sold the same to the enemies of the realm.”[136] Henry the Fifth, indeed, proposed to build up a royal navy, but his plans were cut short by his death and his ships sold under Henry the Sixth, and matters went on as before.[137]

English traders, however, did not sit down idly to wait for State protection.[138] Already in the middle of the fourteenth century a new life was stirring in the seaports, and before long every one of them began to send its contingent to the host that went out for the conquest of the sea. Towns big and little were creating or strengthening their fleets, made up either of the “common barges” of the community, or the private ships of their trading companies. Shipbuilding was dear in England from the want of wood in the country as well as of iron suitable for the purpose, and cost, if we may believe a contemporary observer, twice as much as in France.[139] So poor communities like Lydd that could not afford big ventures made shift by hiring vessels from Britanny, Sandwich, or London, and fitting them out as economically as might be, with an old wine-pipe sawed in half to serve for a bread barrel.[140] On the other hand, prosperous ports like Lynn added large sums year after year to the town budget for shipping.[141] A far poorer place, Romney, spent £73 on its common barge in 1381; in 1396 another was bought and fitted out for £82; and a third in 1400 at over £40; while a few years later yet another ship was procured for the Bordeaux trade. These vessels sailed to Scotland and Newcastle and Norfolk and the ports of the Southern coasts; or to Ireland for wood, to Amiens for sea-coal, to Britanny for salt, to Flanders for the wares of the Levant, to Southern France for cargoes of wine, and oil, and wood. In 1400 “the new barge” carried forty-two tuns of wine from Rochelle; in 1404 it brought forty tuns besides oil and wood, and in a later voyage carried fifty-six tuns.[142] Everywhere the trading temper laid hold upon the people. In Rye, where the inhabitants had been wont to pay their yearly oblations punctually on the 8th of September, there came a time when so many of them were abroad, some attending fairs, some fishing in remote seas, “that Divine worship is not then observed by them as it ought to be, and the due oblations are withheld and hardly ever paid;” and the day of offering had to be changed.[143]