[Sidenote: The Netherlands trade]

The great mart for English wool was the Netherlands, whose manufacturing business required the raw product: the Netherlanders were more dependent on England than the English were on them. Hence this trade was used by Henry throughout his reign as a political lever—a means to political ends rather than an end in itself. If his own subjects suffered from a customs war, Philip's suffered more. So long as Burgundy made trouble on behalf of Perkin Warbeck the battle went on. In 1496 Philip gave up the contest, and the Intercursus Magnus followed. Soon after the beginning of the new century the fight was renewed, to be terminated by what the Flemings called the Intercursus Malus, an arrangement so one-sided and pressing so hard on them that its terms were practically impossible of fulfilment; and Henry assented to their modification before his death, partly with a view to overcoming the reluctance of Margaret of Savoy to accept his matrimonial overtures.

[Sidenote: The Hansa]

When Henry came to the throne, he found the export trade mainly in the hands of two foreign groups—the Hansa, who had acquired privileges in England which they did not reciprocate, and the Venetians, who held their own without privileges by superior commercial acuteness—and of two English groups, the Merchants of the Staple, who controlled the wool markets, and the Merchant Adventurers, who were mainly interested in the manufactured goods. The King therefore followed a consistent policy of straining, in a restrictive sense, the interpretation of the concessions made to the Hansa, of emphasising grievances against them and of pressing for counter- privileges; and he successfully negotiated with Denmark in 1489 a commercial treaty, which interfered with the Hansa monopoly of the Scandinavian trade, by placing English merchants on a competitive footing with them. In a similar manner, he brought pressure to bear on the Venetians by opening direct relations with the Florentines at their port of Pisa. It is curious to note incidentally that the export dues on raw wool were enormously heavier than those on the manufactured goods; the difference being made in order to encourage the home sale of the wool and to stimulate the home manufacture by this means, as well as by encouraging the foreign sale of the manufactured goods. It is also observable that when an attempt was made by the London merchants to capture the worsted trade, Henry nipped it in the bud. It was no part of his policy to allow corporations—any more than individuals—to become powerful enough to demand terms for their political support.

[Sidenote: The Navigation Acts]

Recognising, as we saw, the commercial advantage to England of doing her own carrying trade and of multiplying ships and seamen, Henry—tentatively at first, but with increasing confidence—adopted artificial methods of encouraging this branch of industry, at the expense of free competition. Very early in the reign a Navigation Act required that goods shipped for England from certain foreign ports should be embarked on English vessels, during a specified period. Then the Act was renewed for a longer period, and finally without a time limit, and with more extended application. A great impetus was given to English shipping, with momentous results which can hardly have entered into Henry's calculations. He could not have anticipated the vast extensions of empire which were to be the prize of the nations with ocean-going navies, with the ocean itself for the great battlefield; or even the extent to which commerce and naval preponderance were destined to go hand in hand. The monopoly of the States with a Mediterranean sea-board was coming to an end.

[Sidenote: Voyages of discovery]

Yet it was in his reign that the vast change was initiated. In 1492 Christopher Columbus made his great voyage: in 1497 Vasco da Gama sailed for India, not westwards but southwards and eastwards round the Cape of Good Hope. Ten years later, Albuquerque was founding a Portuguese Empire in the Indian seas. Spain and Portugal, pioneers of the great movement, led the way, one in the new world of the West, the other in the fabled world of the East; where for many a year to come they were to divide a monopoly authorised by the Papal Bull of Alexander VI. Before another century closed, their dominion was to be challenged by England grown mighty and by Holland emancipated. As yet, however, men dreamed only formless if gorgeous dreams of what the unknown realms might bring forth. England played no very large part in these early voyages. Christopher Columbus, craving to discover a westerly route to the Indies, and failing of Portuguese support, sent his brother Bartholomew to petition the English King for aid; but Bartholomew was captured by pirates. Ultimately he reached England, but before he could achieve his purpose, Christopher had found other helpers; the prize fell to Ferdinand and Isabella. The first historic expedition which sailed from English ports was captained not by an Englishman but by another Italian, John Cabot, and his son Sebastian, in 1497. The Cabots were Venetians who had for some time been established at Bristol. They aimed for a north-west passage, and found Labrador and Newfoundland, cold, inhospitable, producing no wealth: the explorers who sailed under Spanish auspices struck the wealthy and entrancing regions of the south. There was little enough material inducement beyond the simple spirit of enterprise to attract capital to expend itself in aid of the Bristol men who followed in the wake of Cabot. Henry deserves full credit for the encouragement and actual pecuniary help which he rendered at first, and no blame for its discontinuation. The daring of the adventurers was but ill repaid for the time; yet a mighty harvest was to be reaped by England in the days to come.

[Sidenote: The rural revolution]

If England, however, did not for more than half a century turn the new discoveries to material account, wealth and prosperity did increase greatly in the towns, and the country recovered her lost position among the commercial nations—partly from Henry's policy directed to that end, partly from the comparatively settled conditions of life which gradually prevailed. In the agricultural districts, however, this was hardly the case, owing to the increasing tendency to substitute pasture for cultivation. The country had no difficulty in producing sufficient for its own consumption; and the development of the woollen manufacture made sheep-farming in particular much more lucrative. But sheep-farming called for the employment of many fewer hands; proprietors dispossessed small tenants to make large sheep-runs; migration from the rural districts to the nascent manufacturing centres was not a simple matter; and thus there was no little distress, and a great multiplication of beggars and vagabonds. The monasteries, which in the past had been progressive farmers, had degenerated into landlords easy-going indeed but without enterprise. The wealth of the gentry increased, but unemployment increased also, and labour at the same time became cheaper. The evil was to a great extent realised; in the Isle of Wight, which was rapidly becoming depopulated, an attempt was made to improve matters by limiting the size of farms; the heavy export duties on raw wool were doubtless intended actually to restrict the output as well as to divert it to English rather than foreign manufacturers; but since this did not effectively check the growing demand at home, the production of wool remained so lucrative that it continued to be more attractive than cultivation. Attempts were made to transfer labour from agriculture to manufacture by interfering with, the restrictions imposed by the trade-guilds (which always aimed at making themselves close bodies), the object of such legislation being quite as much to prevent idleness as to relieve distress. Nevertheless, the evil grew. Sir Thomas More in his introduction to the Utopia, written early in the next reign, gives a vigorous sketch of the prevalent vagabondage just before the death of Cardinal Morton, adding to the causes above mentioned the number of lackeys employed by the wealthy who when dismissed became a useless burden on the community. He also charges the land-owners, expressly including many abbots and others of the clergy, with causing depopulation and misery by forcing up rents. From him too as well as from other sources we learn of the frequency of crimes of violence, attributed by him to the reckless employment of the death penalty for minor offences, encouraging the fugitive criminal—already doomed if caught—to take life without hesitation.