While the towns of southern Germany were becoming the world's banking and industrial centers, the cities of the Netherlands became its chief staple ports. For generations Antwerp had had two fairs a year, but in 1484 it started a perpetual market, open to all merchants, even to foreigners, the whole year round, and in addition to this it increased its fairs to four. Later a new Merchants' Exchange or Bourse was built [Sidenote: 1531] in which almost all the transactions now seen on our stock or produce exchanges took place. There was wild speculation, partly on borrowed money, especially in pepper, the price of which furnished a sort of barometer of bourse feeling. Bets on prices and on events were made, and from this practice various forms of insurance took their rise.
[Sidenote: Antwerp]
The discovery of the new world brought an era of prosperity to Antwerp that doubtless put her at the head of all commercial cities until the Spanish sword cut her down. In 1560 there were commonly 2500 ships anchored in her harbor, as against 500 at Amsterdam, her chief rival and eventual heir. Of these not {532} uncommonly as many as 500 sailed in one day, and, it is said, 12,000 carriages came in daily, 2000 with passengers and 10,000 with wares. Even if these statements are considerable exaggerations, a reliable account of the exports in the single year 1560 shows the real greatness of the town. The total imports in that year amounted to 31,870,000 gulden ($17,848,000), divided as follows: Italian silks, satins and ornaments 6,000,000 gulden; German dimities 1,200,000; German wines 3,000,000; Northern wheat 3,360,000; French wine 2,000,000; French dyes 600,000; French salt 360,000; Spanish wool 1,250,000; Spanish wine 1,600,000; Portuguese spices 2,000,000; English wool 500,000; English cloth 10,000,000. The last named article indicates the decay of Flemish weaving due to English competition. For a time there had been war to the knife with English merchants, following the great commercial treaty popularly called the Malus Intercursus. [Sidenote: 1506] According to the theory then held that one nation's loss was another's gain, [Sidenote: Commercial policy] this treaty was considered a masterpiece of policy in England and the foundation of her commercial greatness. It and its predecessor, the Magnus Intercursus, [Sidenote: 1496] marked the new policy, characteristic of modern times, that made commercial advantages a chief object of diplomacy and of legislation. Protective tariffs were enacted, the export of gold and silver prohibited, and sumptuary laws passed to encourage domestic industries. The policy as to export varied throughout the century and according to the article. The value of ships was highly appreciated. Sir Walter Raleigh opined that command of the sea meant command of the world's riches and ultimately of the world itself. Sir Humphrey Gilbert drew up a report advocating the acquisition of colonies as means of providing markets for home products. So little were the rights of the natives {533} considered that Sir Humphrey stated that the savages would be amply rewarded for all that could be taken from them by the inestimable gift of Christianity.
[Sidenote: Buccaneering]
As little regard was shown for the property of Catholics as for that of heathens. Merry England drew her dividends from slave-trading and from buccaneering as well as from honest exchange of goods. There is something fascinating about the career of a man like Sir John Hawking whose character was as infamous as his daring was serviceable. He early learned that "negroes were very good merchandise in Hispaniola and that they might easily be had upon the coast of Guinea," and so, financed by the British aristocracy and blessed by Protestant patriots, he chartered the Jesus of Lübeck and went burning, stealing and body-snatching in West African villages, crowded his hold full of blacks and sold those of them who survived at $800 a head in the Indies. Quite fittingly he received as a crest "a demi-Moor, proper, in chains." He then went preying on the Spanish galleons, and at one time swindled Philip out of $200,000 by pretending to be a traitor and a renegade; thus he rose from slaver to pirate and from pirate to admiral.
[Sidenote: English commerce]
So pious, patriotic and profitable a business as buccaneering absorbed a greater portion of England's energies than did ordinary maritime commerce. A list of all ships engaged in foreign trade in 1572 shows that they amounted to an aggregate of only 51,000 tons burden, less than that of a single steamer of the largest size today. The largest ship that could reach London was of 240 tons, but some twice as large anchored at other harbors. Throughout the century trade multiplied, that of London, which profited the most, ten-fold. If the customs' dues furnish an accurate barometer for the volume of trade, while London was increasing the other ports were falling behind not only {534} relatively but positively. In the years 1506-9 London yielded to the treasury $60,000 and other ports $75,000; in 1581-2 London paid $175,000 and other ports only $25,000.
As she grew in size and wealth London, like Antwerp, felt the need of permanent fairs. From the continental city Sir Thomas Gresham, the English financial agent in the Netherlands, brought architect and materials [Sidenote: 1568] and erected the Royal Exchange on the north side of Cornhill in London, where the same institution stands today. Built by Gresham at his own expense, it was lined by a hundred small shops rented by him. As the new was rung in, the old passed away. The ancient restrictions on the fluidity of capital were almost broken down [Sidenote: 1542 and 1571] by the end of Elizabeth's reign. The statutes of bankruptcy, giving new and strong securities to creditors, marked the advent to power of the commercial class. Capitalism took form in the chartering of large companies. The first of these, "the mistery and company of the Merchant Adventurers for the discovery of regions, dominions, islands and places unknown," [Sidenote: 1553] commonly called the Russia Company, was a joint-stock corporation with 240 members, each with a share valued at $125. It traded principally with Russia, but, before the century was out, was followed by the Levant Company, the East India Company, and others, for the exploitation of other regions.
To northern Spain England sent coarse cloth, cottons, sheepskins, wheat, butter and cheese, and brought back wine, oranges, lemons and timber. To France went wax, tallow, butter, cheese, wheat, rye, "Manchester cloth," beans and biscuit in exchange for pitch, rosin, feathers, prunes and "great ynnions that be xii or xiiii ynches aboute," iron and wine. To the Russian Baltic ports, Riga, Reval and Narva went coarse cloth, "corrupt" (i.e., adulterated) wine, cony-skins, {535} salt and brandy, and from the same came flax, hemp, pitch, tar, tallow, wax and furs. Salmon from Ireland and other fish from Scotland and Denmark were paid for by "corrupt" wines. To the Italian ports of Leghorn, Barcelona, Civita Vecchia and Venice, and to the Balearic Isles went lead, fine cloth, hides, Newfoundland fish and lime, and from them came oil, silk and fine porcelain. To Barbary went fine cloth, ordnance and artillery, armor and timber for oars, though, as a memorandum of 1580 says, "if the Spaniards catch you trading with them, you shall die for it." Probably what they objected to most was the sale of arms to the infidel. From Barbary came sugar, saltpetre, dates, molasses and carpets. Andalusia demanded fine cloth and cambric in return for wines called "seckes," sweet oil, raisins, salt, cochineal, indigo, sumac, silk and soap. Portugal took butter, cheese, fine cloth "light green or sad blue," lead, tin and hides in exchange for salt, oil, soap, cinnamon, cloves, nutmegs, pepper and all other Indian wares.
While the English drove practically no trade with the East Indies, to the West Indies they sent directly oil, looking-glasses, knives, shears, scissors, linen, and wine which, to be salable, must be "singular good." From thence came gold, pearls "very orient and big withall," sugar and molasses. To Syria went colored cloth of the finest quality, and for it currants and sweet oil were taken. The establishment of an English factor in Turkey [Sidenote: 1582] with the express purpose of furthering trade with that country is an interesting landmark in commercial history.