The merchant guilds were found in all considerable towns in the eleventh century, and they were followed, a century later, by craft guilds which aimed, in turn, at securing a monopoly of employment for their own particular members.
Coupled with the guilds there was much local regulation of the prices and qualities of commodities through the setting-up of such institutions as the "assize" of ale, of bread and of cloth; while the justices had, in addition, considerable powers in regard to fixing the rates of wages and the general conditions of labour.
All this system of highly-organised Protection, not so much for the country as a whole as for each and every individual town in the country, might serve in comparatively isolated communities; but it could not prevail against increased intercourse, the growing competition of developing industries, a broader area of distribution for commodities made in greater volume, and a wider demand for foreign supplies. It was thus doomed to extinction as these new conditions developed; but it nevertheless exercised an important influence on our national advancement, since it was the impulse of corporate unity, fostered by the merchant guilds, and strengthened by the system of manorial courts for the enforcement of the local laws and customs in vogue in each separate manor before the common law of the land was established, that led to so many English towns securing, from King or overlord—and notably in the twelfth and thirteenth centuries, when the influence of the merchant guilds was especially great—those charters which so powerfully stimulated the growth of the great towns, of English citizenship, of individual freedom, and of national prosperity. Ashley well says, in this connection:—
"Wide as were the differences between a civic republic of Italy, or an imperial city of Germany with its subject territory, and a little English market town, there was an underlying similarity of ideas and purposes. Each was a body of burghers who identified the right to carry on an independent trading or industrial occupation with the right of burgess-ship; who imposed restrictions on the acquisition of citizenship, with the object of protecting the interests of those already enjoying it; who acted together by market regulation and intermunicipal negotiation to secure every advantage they could over rival boroughs; who deemed it meet that every occupation should have its own organisation and its own representation in the governing authority, and who allowed and expected their magistrates to carry out a searching system of industrial supervision. Municipal magistracy was not yet an affair of routine, bound hand and foot by the laws of the State."
The general trade of the country in the Middle Ages was conducted mainly through markets and fairs.
Every town had its market and fixed market day, and such market served the purpose of bringing in the surplus produce of the surrounding agricultural district, the area of supply depending, no doubt, on the distance for which the state of the roads and the facilities for transport on them would allow of commodities being brought.
Held, as a rule, annually or half-yearly, fairs assumed much more important proportions than the (generally) weekly local markets. It was to the fairs that traders both from distant counties and from foreign countries brought wares and products not otherwise obtainable; and it was at the fairs that the foreign merchants, more especially, bought up the large quantities of wool which were to form their return cargoes. Whereas the business done at the local markets was mainly retail, that done at the fairs was, to a great extent, wholesale, and the latter represented the bulk of such transactions as would now be done on the public exchanges or in the private warehouses of London, Liverpool, Manchester, Birmingham, and other leading commercial centres.
Fairs were essentially the outcome of defective means of communication. Going back in their origin to the days of ancient Greece, they have been found in most countries in the earlier stages of society, or under conditions which have not allowed of (1) a ready distribution of commodities, (2) sufficiently advanced manufactures, or (3) the subdivision of trade over an adequately wide area. Fairs in England began to decay in exact proportion as communications and manufactures improved and retail trade expanded; so that to-day the survivals are either exclusively cattle fairs, sheep fairs, horse fairs, cheese fairs, and so on, or else are little more than pleasure fairs, with gingerbread stalls, shows and roundabouts for their chief attractions—mere reminiscences of old institutions which, in bygone days, were of supreme commercial importance.
They were, also, greatly influenced by religious festivals, whether in ancient Greece or in Europe. In Britain itself the commemoration of saints' days by the monasteries, the dedication festivals of churches or cathedrals, and the visitation of shrines by pilgrims brought together crowds of people whose assembling offered good opportunities for the opening up with them of a trade in commodities which they, in turn, might otherwise have some difficulty in procuring. It was, indeed, to the advantage of the Church to offer or to encourage the offering of such facilities, not only because there would thus be a greater inducement to people to come to the festivals or to visit the shrines, but also because when the fair was held on land belonging to the Church or connected with religious buildings there might be a substantial revenue gained from the tolls and charges paid by the traders. At one time the fairs were even held in churchyards; but this practice was prohibited in the 13th year of Edward I., and thenceforward they were held on open spaces, where stalls and tents could be erected for the accommodation of the goods on sale and of the persons who had brought them, various amusements being added, or encouraged, by way of affording further attractions. The land occupied might be that of the lord of the manor, but the fairs still continued to be held chiefly on Saints' days or on the occasion of Church festivals, the actual dates being generally so fixed as to allow of the foreign or other traders attending them to arrange a circuit. The time of year preferred for the holding of fairs was either the autumn, when people whose wants were not wholly met by pedlar or chapman would be providing against the stoppage of all traffic along the roads during the winter; or the spring, when they would want to replenish their depleted stocks. The localities mostly favoured were towns either on navigable rivers, giving access to a good stretch of country, or at the entrance to valleys whose inhabitants would be especially isolated during the winter months by their impassable roads and mountain tracks.
In course of time the fairs became, as shown by Giles Jacob, in his "Law Dictionary" (4th edition, 1809), "a matter of universal concern to the commonwealth," as well as a valuable monetary consideration to those who had the right to collect the tolls; and they were, in consequence, subjected to close regulation. No person could hold a fair "unless by grant from the King, or by prescription which supposes such grant"; the time during which it could be kept open was announced by proclamation, and rigidly adhered to; "just weight and measure" was enforced, and a "clerk of the fair" was appointed to mark the weights.