Although the economic policy of the dukes may be described as still somewhat incoherent, it may yet be said to have embraced excellent principles. A declaration is preserved to the effect that “one of the main points of all good policy, upon which the public welfare is based, is to get and to keep good and lasting money, as well golden as silver coin.”

Notwithstanding these principles and the various measures taken for the protection of trade, a crisis in the cloth industry was soon apparent. This was due to the transformation in the wool trade. Bruges was the big wool market of the Continent, but, since the development of the English cloth industry, the English producers had kept the raw material at home, thereby diminishing the stock of wool in Flanders. The price had greatly increased, and Flemish manufacturers were obliged to use Spanish wool of inferior quality. This, of course, spelled the decline of the Belgian cloth industry. The decline of Louvain’s prosperity was somewhat mitigated by the foundation there of the University in 1425. Nothing, however, could save Ypres. Its craftsmen, threatened with starvation, migrated to England; houses were abandoned and fell into ruin; in 1456 a third of the population was begging for bread along the roads.

Other parts of the country were less affected by the crisis in the cloth industry. Ghent had its grain staple; Brussels, where the dukes resided, imported articles of luxury; Malines had its Parliament; Antwerp took the place of Bruges as a seaport. Since 1442, English merchants had settled in Antwerp, and this meant the end of Bruges and of the part played by Flanders in the economic life of Belgium. It was now the turn of Brabant. At the same time, a new industry was being introduced into Flanders and Brabant, the technical features of which were much the same as those of the cloth industry. Wool was replaced by flax, and instead of cloth manufacture we hear next of the linen industry. As manufacture on a large scale, mediaeval in its forms and restrictive and exclusive in its spirit of corporation, could no longer support itself, the new linen industry soon came to be carried on in the homes of the operatives, mainly in the country. Driven out of Flanders by circumstances, the cloth industry now sought to prolong its life in a little town of the Ardennes—Verviers, near Liège (1480).

The conditions of trade likewise experienced decline and revival at the same time. In this particular the outstanding feature is the decline of Bruges. As is well known, credit operations on a large scale sometimes bring about big bankruptcies. Until the death of Charles the Bold (1477), Bruges remained the financial and banking center of Europe. It was filled with Italian bankers, among them agents of the Medici, the Portinari, and the Guidetti. A large number of foreign merchants resided at Bruges, grouped in colonies known as “nations.” Among them were the “nations” of Florence, of Spain, and of the Osterlings. In 1457 the shipping in the harbor was represented by three vessels from Venice, one from Portugal, two from Spain, six from Scotland, forty-two from Bretagne, twelve from Hamburg, four whale-boats, and thirty-six to forty fishing smacks. The vessels came mainly from Spain and Portugal. They brought merchandise hitherto unknown to the people of Belgium: oranges, lemons, rose-water, candy, jam, oriental tapestry, etc. From the Portuguese warehouses in Africa came monkeys, lions, parrots.

In the course of the fifteenth century, however, for reasons already indicated, the merchants of the German Hansa left Bruges. As a result of the fall of the Flemish cloth industry and the prohibitive measures taken against England in favor of Flanders, the shipping company of the English Merchant Adventurers sent large numbers to settle at Antwerp in 1442-44. They were joined by the Italian, Spanish, and Portuguese merchants. The bankers soon followed. At the end of the fifteenth century the glorious old Flemish city showed 4,000 to 5,000 empty houses. From then on it became known as “Bruges la morte.” Its rival, Antwerp, had become the center of the cloth-weaving industry.

The inundations in Zeeland at the beginning of the fifteenth century had considerably enlarged the western Scheldt and afforded a direct route to the sea. Taking advantage of this circumstance, Antwerp, from the very beginning, showed a highly modern and liberal spirit. It reduced the taxes on foreign merchants, whereas Bruges, in order to save the situation, maintained its restrictive and drastic legislation and tried to uphold its economic privileges and its highly protectionist measures. Moreover, Antwerp did not share the revolutionary spirit of the Flemish communes. There were no bloody struggles against the dukes, and there was the best of understanding with the central power.

The new spirit of Antwerp is shown in its commercial organization. There were two fairs yearly, held on the principle of commercial liberty. Those visiting the fairs were protected by a special passport. Whereas a monopoly existed in the professions of broker and money-changer in Bruges, at Antwerp they were open to all. The right of citizenship was easily acquired. In 1460, Antwerp established the first exchange that existed in Europe. At the end of the fifteenth century the city had become the great commercial center of the north. But, as earlier in the case of Bruges, the more important commerce was in the hands of foreigners. The people of Antwerp were but auxiliaries and intermediaries, brokers, forwarding agents, charterers of vessels, etc. The same phenomenon is observable in the Antwerp of today.

On the other hand, the political and economic transformations which resulted in such crises in city life proved advantageous for the peasantry, for the people of the countryside. The decline of the tyranny of the big cities tended to bring to the peasant more and more of freedom. He was now free to engage in industry at home and to become a paid workman in the service of the capitalist. The old restrictions of the feudal law and the law of the manor were gone.

Even in the realm of charity the changing order was manifest. It was now taken in hand by the state. Special ordinances against beggars were issued in 1461 for Flanders and Brabant. Heretofore, the beggar had been abandoned to the tender mercies of the church and of private charity. Thenceforth he was taken in hand by the government. The state refused to encourage beggars; it controlled them and forced them to work. A special license for begging was granted to children under twelve years and to persons over sixty years, and to mothers with numerous children and without work. Those found begging without a license were imprisoned. The institutions for charity, heretofore exclusively religious, were taken over by the local governments. Boards of trustees were appointed by the municipalities and the finances were controlled by the échevins.

As for literary and artistic conditions in the Burgundian period, it is to be noted that French influence gradually disappeared after the battle of the Golden Spurs. French of course remained the language of the court, of the nobility, of the wealthy citizens. French, together with Latin, also remained as the language of diplomacy. But it made no more gains. At this time Flemish began to take its place in civic life. As a result of the victory of democracy in most of the cities, Flemish became the language of the administration and was used for the registration of real estate and for accounts. Through existing relations with the merchants of the Hansa it became also the language of commercial affairs. Primary schools were established in all the cities, and instruction was given in the language of the people. The literary works of Van Maerlandt, whose influence has already been described, came freely into the possession of, and were read by, the humblest craftsmen.