An Introduction to the Industrial and Social History of England

by Edward Potts Cheyney

The fleet from Venice also came less and less frequently. Under Henry VIII for a period of nine years no fleet came to English ports; then after an expedition had been sent out from Venice in 1517, and again in 1521, another nine years passed by. The fleet came again in 1531, 1532, and 1533, and even afterward from time to time occasional private Venetian vessels came, till a group of them suffered shipwreck on the southern coast in 1587, after which the Venetian flag disappeared entirely from those waters.

In the meantime a series of favorable commercial treaties were made in various directions by Henry VII and his successors. In 1490 he made a treaty with the king of Denmark by which English merchants obtained liberty to trade in that country, in Norway, and in Iceland. Within the same year a similar treaty was made with Florence, by which the English merchants obtained a monopoly of the sale of wool in the Florentine dominions, and the right to have an organization of their own there, which should settle trade disputes among themselves, or share in the settlement of their disputes with foreigners. In 1496 the old trading relations with the Netherlands were reëstablished on a firmer basis than ever by the treaty which has come in later times to be known as the Intercursus Magnus. In the same year commercial advantages were obtained from France, and in 1499 from Spain. Few opportunities were missed by the government during this period to try to secure favorable conditions for the growing English trade. Closely connected as commercial policy necessarily was with political questions, the former was always a matter of interest to the government, and in all the ups and downs of the relations of England with the Continental countries during the sixteenth century the foothold gained by English merchants was always preserved or regained after a temporary loss.

The closely related question of English ship-building was also a matter of government encouragement. In 1485 a law was passed declaring that wines of the duchies of Guienne and Gascony should be imported only in vessels which were English property and manned for the most part by Englishmen. In 1489 woad, a dyestuff from southern France, was included, and it was ordered that merchandise to be exported from England or imported into England should never be shipped in foreign vessels if sufficient English vessels were in the harbor at the time. Although this policy was abandoned during the short reign of Edward VI it was renewed and made permanent under Elizabeth. By indirect means also, as by the encouragement of fisheries, English seafaring was increased.

As a result of these various forms of commercial influence, the enterprise of individual English merchants, the formation of trading companies, the assistance given by the government through commercial treaties and favoring statutes, English commerce became vastly greater than it had ever been before, reaching to Scandinavia and Russia, to Germany and the Netherlands, to France and Spain, to Italy and the eastern Mediterranean, and even occasionally to America. Moreover, it had come almost entirely into the hands of Englishmen; and the goods exported and imported were carried for the most part in ships of English build and ownership, manned by English sailors.

45. The Currency.—The changes just described were closely connected with contemporary changes in the gold and silver currency. Shillings were coined for the first time in the reign of Henry VII, a pound weight of standard silver being coined into 37 shillings and 6 pence. In 1527 Henry VIII had the same amount of metal coined into 40 shillings, and later in the year, into 45 shillings. In 1543 coin silver was changed from the old standard of 11 ounces 2 pennyweights of pure silver to 18 pennyweights of alloy, so as to consist of 10 ounces of silver to 2 ounces of alloy; and this was coined into 48 shillings. In 1545 the coin metal was made one-half silver, one-half alloy; in 1546, one-third silver, two-thirds alloy; and in 1550, one-fourth silver, three-fourths alloy. The gold coinage was correspondingly though not so excessively debased. The lowest point of debasement for both silver and gold was reached in 1551. In 1560 Queen Elizabeth began the work of restoring the currency to something like its old standard. The debased money was brought to the mints, where the government paid the value of the pure silver in it. Money of a high standard and permanently established weight was then issued in its place. Much of the confusion and distress prevalent during the reigns of Henry VIII and Edward VI was doubtless due to this selfish and unwise monetary policy.

At about the same time a new influence on the national currency came into existence. Strenuous but not very successful efforts had long been made to draw bullion into England and prevent English money from being taken out. Now some of the silver and gold which was being extorted from the natives and extracted from the mines of Mexico and Peru by the Spaniards began to make its way into England, as into other countries of Europe. These American sources of supply became productive by about 1525, but very little of this came into general European circulation or reached England till the middle of the century. After about 1560, however, through trade, and sometimes by even more direct routes, the amount of gold and silver money in circulation in England increased enormously. No reliable statistics exist, but there can be little doubt that the amount of money in England, as in Europe at large, was doubled, trebled, quadrupled, or perhaps increased still more largely within the next one hundred years.

This increase of money produced many effects. One of the most important was its effect on prices. These had begun to rise in the early part of the century, principally as a result of the debasement of the coinage. In the latter part of the century the rise was much greater, due now, no doubt, to the influx of new money. Most commodities cost quite four times as much at the end of the sixteenth century as they did at its beginning.

Another effect of the increased amount of currency appeared in the greater ease with which the use of money capital was obtained. Saving up and borrowing were both more practicable. More capital was now in existence and more persons could obtain the use of it. As a result, manufacturing, trade, and even agriculture could now be conducted on a more extensive scale, changes could be introduced, and production was apt to be profitable, as prices were increasing and returns would be greater even than those calculated upon.

46. Interest.—Any extensive and varied use of capital is closely connected with the payment of interest. In accord with a strict interpretation of certain passages in both the Old and the New Testament, the Middle Ages regarded the payment of interest for the use of money as wicked. Interest was the same as usury and was illegal. As a matter of fact, most regular occupations in the Middle Ages required very little capital, and this was usually owned by the agriculturists, handicraftsmen, or merchants themselves; so that borrowing was only necessary for personal expenses or in occasional exigencies. With the enclosures, sheep farming, consolidation of farms, and other changes in agriculture, with the beginning of manufacturing under the control of capitalist manufacturers, with the more extensive foreign trading and ship owning, and above all with the increase in the actual amount of money in existence, these circumstances were changed. It seemed natural that money which one person had in his possession, but for which he had no immediate use, should be loaned to another who could use it for his own enterprises. These enterprises might be useful to the community, advantageous to himself, and yet profitable enough to allow him to pay interest for the use of the money to the capitalist who loaned it to him. As a matter of fact much money was loaned and, legally or illegally, interest or usury was paid for it. Moreover, a change had been going on in legal opinion parallel to these economic changes, and in 1545 a law was passed practically legalizing interest if it was not at a higher rate than ten per cent. This was, however, strongly opposed by the religious opinion of the time, especially among men of Puritan tendencies. They seemed, indeed, to be partially justified by the fact that the control of capital was used by the rich men of the time in such a way as to cause great hardship. In 1552, therefore, the law of 1545 was repealed, and interest, except in the few forms in which it had always been allowed, was again prohibited. But the tide soon turned, and in 1571 interest up to ten per cent was again made lawful. From that time forward the term usury was restricted to excessive interest, and this alone was prohibited. Yet the practice of receiving interest for the loan of money was still generally condemned by writers on morals till quite the end of this period; though lawyers, merchants, and popular opinion no longer disapproved of it if the rate was moderate.

47. Paternal Government.—In many of the changes which have been described in this chapter, the share which government took was one of the most important influences. In some cases, as in the laws against enclosures, against the migration of industry from the towns to the rural districts, and against usury, the policy of King and Parliament was not successful in resisting the strong economic forces which were at work. In others, however, as in the oversight of industry, in the confiscation of the property of the gilds devoted to religious uses, in the settlement of the relations between employers and employees, in the control of foreign commerce, the policy of the government really decided what direction changes should take.