One of the most important of the colonies of foreign merchants settled in England was the London branch of the Hanseatic League. This, the greatest mercantile corporation in history, originated, like its smaller counterparts in England, in the association of merchants from various German towns for the purpose of mutual protection and co-operation while trading to foreign countries. After many vicissitudes, it attained in the fourteenth century to the status of a sovereign power, maintaining a formidable fleet and waging wars with the northern nations in defence of its interests. The London ‘factory’ was one of its largest oversea branches, and, during the fifteenth century, saw its pre-eminence threatened by the gradual growth of native mercantile enterprise, as evidenced by the rise of the Merchant Adventurers. The rivalry thus engendered was intense, but the Hanse merchants were able to take advantage of the internal dissensions in England, and a long period of privateering and reprisal was ended by an agreement which they extorted from Edward IV. In 1473 and 1474 treaties were signed by which the rights of the Hansa to trade in England under more advantageous terms than other foreigners, and even, in certain cases, than Englishmen, were recognized. Their group of warehouses and dwelling-places in the Steelyard, ‘commonly called Guildhall Theutonicorum’, was also secured to them in perpetuity, under the jurisdiction of officers appointed by themselves.[[30]]
As manufactured woollen goods formed a principal item of their business, it is illustrative to give in detail a list of the duties on those and other articles, in which their privileged position is apparent:[[31]]
| Article. | Englishmen. | Spaniards. | Hansa | Others | ||||
| Custom | Subs | Custom | Subs | Custom | Subs | Custom | Subs | |
| Cloth, without ‘greyn’, per cloth | 14d. | nil | 14d. | nil | 12d. | nil | 33d. | 12d. |
| Cloth, half ‘greyned’ | 21d. | nil | 21d. | nil | 18d. | nil | 49d. | 12d. |
| Cloth ‘in greyn’ | 28d. | nil | 28d. | nil | 24d. | nil | 66d. | 12d. |
| Single worsted, per piece | 1d. | 1d. | 1d. | 1d. | 1d. | 1d. | 1½d. | 12d. |
| Double worsted, per piece | 2d. | 1d. | 2d. | 1d. | 2d. | 1d. | 3d. | 12d. |
| Every bed, single worsted | 5d. | 1d. | 5d. | 1d. | 5d. | 1d. | 7½d. | 12d. |
| Every bed, double worsted | 9d. | 1d. | 9d. | 1d. | 9d. | 1d. | 13½d. | 12d. |
| Wax, per cwt. | 12d. | nil | 12d. | nil | 12d. | nil | 12d. | 12d. |
| Wines, per tun | nil | 36d. | 24d. | 36d. | 24d. | nil | 24d. | 36d. |
It will be seen that, although the Spaniards received very nearly equal treatment with Englishmen, the Hansa had in nearly every case more advantageous terms, and was thus enabled to sell its goods at a lower price or at a better profit than native merchants. It must be borne in mind also that the trade in cloth with Spain was comparatively small.
With their position thus strengthened, the members of the Hanseatic League began to oust English traders from the Baltic, the German ports, Scandinavia, and even Iceland. The English traffic with the last mentioned country was further threatened with utter extinction by a quarrel with the King of Denmark, who forbade Englishmen to resort thither, although the prohibition was not made entirely effective.
On the accession of Henry VII public opinion demanded that he should diminish the privileges of the Hansa, wrung, as they had been, from Edward IV at a time when England was weak from a protracted civil war, and certain, if unchecked, seriously to hinder the expansion of native trade. He was unable, however, to denounce the treaty of 1473–4, as he dared not risk open war with a maritime power which could retaliate by assisting his numerous enemies to invade his realm. He therefore adopted a policy which, while ostensibly upholding its legal rights, sought every opportunity to nullify them in practice in favour of his own subjects. Accordingly, in the first year of his reign, in spite of protests, he granted a charter to the Hansa, renewing its privileges as secured by the treaty.[[32]] The settlement of the Iceland dispute was next effected. In 1489 Henry dispatched ambassadors to Denmark who, in the following year, concluded a treaty with that country, by which peace was restored, trade was resumed on its former basis, and the prohibition of English voyages to Iceland was removed.[[33]]
This was a blow at the Hansa of which it could not legitimately complain, although it abolished at a stroke its threatened supremacy in the fish trade, which, in pre-Reformation days, was relatively much more important than it has since become. It was followed up by a series of annoyances in the matter of the interpretation of treaties and customs laws. The Easterlings[[34]] retaliated with restrictions on English trade with Prussia. A diet was held to adjust differences at Antwerp in 1491. A long list of grievances against the English administration was presented, which may be taken as illustrative of the policy pursued towards the Hansa at all times when there was no special reason to desire its goodwill. Ships and goods, it was alleged, were robbed in an English port; Hanse vessels were arrested for shipping cloth to Antwerp and for exporting unwrought cloths; the Act of Parliament granting subsidies was interpreted as overriding the treaty privileges of the League; the Lord Mayor arbitrarily fixed prices in London, and was guilty of other unjust practices; the Hansa suffered under the Navigation Acts prohibiting the import of Bordeaux wine and Toulouse woad in other than English ships; unlawful customs were exacted on certain articles, and the import of others was forbidden; the privileged duty rates were only allowed on goods coming from the Hanse towns, full duties being exacted on goods from other countries; the customs officers overestimated the value of Easterlings' goods and, when the duties were paid, delayed clearance so that English merchants might be first in the market on the other side; arbitrary charges were made for convoy, the Easterlings being forced to pay although they had not asked for protection; and Hanse vessels unlading at Hull were forced to take in cargoes at the same place, although frequently such cloths as they wanted were not obtainable there.[[35]]
The above practices were plainly unjust, but were of such a nature, proceeding as they did from the universal ill will of all grades of officials and underlings, that only the strongest and most determined of governments could have put them down. That of Henry VII had no desire to exert itself in this direction, and undoubtedly connived at the oppression. The only outcome of the diet was a formal reaffirmation of the treaty of 1474, with a mutual promise of better conduct and a provision for settling damages and stopping piracy.
During the quarrel with Margaret of Burgundy, in 1493, when all trade with the Low Countries was prohibited, the Steelyard merchants were forced to deposit £20,000 as security for their observance of the order.[[36]] At this time they were so intensely unpopular in London that it was unsafe for a German to walk in the streets alone. A rumour was spread that they were continuing to trade with Flemish ports in spite of the prohibition, and popular hatred rose to boiling-over point. A mob of the unemployed and discontented gathered with the intention of sacking the rich warehouses in the Steelyard. The Easterlings defended themselves bravely, and were partially successful in beating off the assault, although they afterwards claimed that much damage had been done. While the issue was still in doubt the Lord Mayor assembled the magistrates and officers of the city; and, at the approach of the forces of order, the rioters fled. About eighty apprentices and workmen were captured and locked up in the Tower. They were all subsequently released.
Commercial hostilities continued on both sides, and were the subject of renewed diets at Bruges in 1497 and 1499.[[37]] The Hansa brought forward similar grievances to those already enumerated. They complained, in addition, of being subjected to the oppressive jurisdiction of the Admiral’s Court, which at that time took cognizance of all marine cases. They also claimed damages for the riot of 1493 and for various piracies. The English retaliated by putting in a much larger bill of damages, and asserted that they had been expelled from the Hanse towns, and that their house at Danzig had been confiscated. The English had more to gain than to lose by the continuance of bad relations, for their interests in the Baltic were not nearly so extensive as those of the Hansa in England. Henry held firm in his contention that legislation, such as that affecting the import of Bordeaux wine and Cologne silk and the export of cloth, was binding on all merchants resorting to England, special privileges notwithstanding. Further than this he did not care to go. The English merchants would have been glad to see him expel once and for all the tenants of the Steelyard, but he never liked to commit himself to a position from which there was no retreat; and he could not forget that the Hansa, driven to desperation, would be a formidable enemy. He had done enough to set English North Sea traffic on its legs; and the continued prosperity of the Merchant Adventurers is no bad testimonial to the soundness of his cautious policy.