A history of commerce

by Clive Day

108. Commerce by sea with northwestern Europe.—With the countries west of Germany Venice carried on an “active” commerce; that is, instead of waiting for foreigners to come to her she brought the wares to them, as she could well do by the sea route. The crusade of 1204, to which we have already referred as a turning-point in Venetian development, was composed in large part of knights from northwestern Europe, and the relations established then with Flanders, Champagne, and neighboring districts, were continued by trade. The first reference to Venice discovered in English documents is dated 1201, but before the close of the thirteenth century a brisk commerce with England had grown up; at one time in the reign of Edward I over 2,000 sacks of wool were found in the possession of Italian trading companies. The trade followed at first the land route across France, but soon took to the sea, and though the land traffic was never wholly abandoned it became less important and was discouraged by special dues.

109. Regulation of this commerce; the Flanders galleys.—Soon after 1300 the government took charge of this trade and regulated it on principles which were followed for the two hundred years during which it remained important. Separate voyages were, as a rule, prevented, and Venetian merchants who wished to participate in the trade must join in the fleet of “Flanders galleys” which sailed at intervals (usually once a year), as the opportunity for trade seemed favorable. On these occasions the Venetian senate voted a certain number of galleys for the voyage, and auctioned off the right to freight them. Each galley was propelled by 180 oarsmen, and carried for its protection a force of archers commanded by four young patricians who were sent out that in this way they might see the world and learn to serve their native city. The cargo was carried on the account of private merchants, but the supreme control of the fleet was vested in a captain appointed by the Venetian government, and bound to follow its instructions. The voyage to Flanders and back occupied the greater part of a year, as the galleys touched and traded at many ports along the way. The route generally taken included the following stopping-places: Capo d’Istria (Pola), Corfu, Otranto, Syracuse, Messina, Naples, Majorca, the principal ports of Spain and Morocco, and Lisbon. In the English Channel the fleet divided, some galleys going to Southampton or London, others to Sluys (the port of Bruges, connected with it by a short canal), Middelburg, and Antwerp. The chief objective was the city of Bruges, the great market where the trade of northern Europe, in the hands of the Hanseatic merchants, and the trade of southern Europe in the hands of the Venetians, came together.

110. Development of other cities in Italy; freedom and vigor of their policy.—Space forbids the consideration in detail of the history and policy of other Italian cities, of which some rose to the first rank in commerce, though none attained to the greatness of Venice. The lack of a central government in the peninsula enabled each city to frame its policy solely with an eye to its own interests. The Italian cities were able to free themselves from the laws and customs that had been necessary in an earlier time, but which lay like fetters on developing trade and industry. The city of Florence, for instance, showed a liberality in its policy regarding land tenure, industry, domestic and foreign commerce, which was strikingly modern. The result was an extraordinarily rapid development in commerce, manufacture and finance, but also, unfortunately, a jealous rivalry between the cities, which expressed itself not only in commercial competition but also in destructive wars.

111. Genoa.—Genoa, situated in a position corresponding to that of Venice on the other side of the Italian peninsula, grew great like her in the course of the crusades. In conflict with Pisa, which had become a threatening commercial rival, Genoa was a complete victor by the naval victory of Maloria in 1284. Against Venice the city was not so fortunate. Genoa recovered in part from the blow dealt her by Venice in the fourth crusade, when the Greek empire was re-established at Constantinople (1261), and won some important naval victories in the constant succession of wars culminating in the battle of Chioggia in 1380. The Genoese managed always to secure a share of the Oriental trade; they helped to establish the system of joint stock companies; and contributed to the development of banking and public finance. They lacked, however, the advantages of the Venetian situation, both as regarded their opportunity for trade and their capacity for defence. They were drawn into the net of continental politics, and as at home they had never shown the ability of the Venetians to pacify or to crush rival factions, their force was wasted in useless political conflicts.

112. Inland cities; Florence.—Besides the two great seaports of Venice and Genoa other cities of northern Italy grew rich by industry and commerce at this period, notably Milan. The chief commercial city in the interior, however, was Florence in central Italy. Though Florence had no seaport of its own until after 1400, when it overpowered Pisa and Leghorn, it carried on an extensive commerce in its chief product, wool and silk textiles. Great trading houses bought up the raw material through agents settled in markets like Bruges, or traveling for years at a time, and sold the finished product through a similar network of agencies. The amount of manufacturing and commerce in the city stimulated the development of banking institutions, and Florentine bankers gained not only a regal position at home, but also a commanding voice in international politics.

113. Other Mediterranean cities; Marseilles, Barcelona.—On the Mediterranean coast of France the only great port at this period was Marseilles, which had developed rapidly in the course of the crusades. It exported to Italy and the East French textiles (woolen and linen), wood, metals, wine, oil, soap, etc.

In Spain the Arabs had developed the arts of civilization to a point which was far above that of the contemporary Christian states. Toward the close of the Middle Ages, however, the contest between them and the Christian kings for the supremacy of the peninsula absorbed the best energies of both parties, and caused an actual decline in material civilization. One city, however, Barcelona, carried on a very extensive commerce, and was one of the most important ports of the Mediterranean. Its inhabitants enjoyed unusual freedom under the kings of Aragon and were reputed to be among the best sailors of their time; they had trading stations along the coast of the Mediterranean as far as Egypt and Syria, and as merchants or pirates frequented the Grecian archipelago.

QUESTIONS AND TOPICS

1. Study: (a) the position of Venice in the Mediterranean; (b) the peculiarities of the site of the city; and write a report on the influence of these factors on the history of Venice in its different periods. [Encyclopedia.]

2. Compare the policy pursued by Venice toward Amalfi in Constantinople to the early policy of the Standard Oil Company. [See the account of railroad rebates in accounts of the Standard Oil Company by Lloyd or Tarbell.]