If these mines had not been discovered about the time when trade to India was more easy, expeditious, and frequent, it could not long have been in the power of Europe to have availed herself of the advantages of the Portuguese discoveries; gold and silver would have become, from their extreme scarcity, more valuable in Europe than in India, and consequently would no longer have been exported. But the supply of the precious metals and of Indian commodities increasing at the same time, Europe, by means of America, was enabled to reap all possible advantage from the Portuguese discoveries. The gold and silver of Mexico and Peru traversed the world, in spite of all obstacles, and reached that part of it where it was most wanted, and purchased the productions of China and Hindostan.
Yet, notwithstanding the effectual demand for East India commodities was necessarily increased by the increased supply of the precious metals, yet the supply of these commodities being increased in a much greater proportion, their price was much lowered. This lowering of price naturally arose from two circumstances: after the passage to India by the Cape, the productions and manufactures of the East were purchased immediately from the natives; and they were brought to Europe directly, and all the way, by sea. Whereas, before the discovery of the Cape, they were purchased and repurchased frequently; consequently, repeated additions were made to their original price; and these additions were made, in almost every instance, by persons who had the monopoly of them. Their conveyance to Europe was long, tedious, and mostly by land carriage, and consequently very expensive. There are no data by which it can be ascertained in what proportion the Portuguese lowered the price of Indian commodities; but Dr. Robertson's supposition appears well founded,--that they might afford to reduce the commodities of the East, in every part of Europe, one half. This supposition is founded on a table of prices of goods in India, the same sold at Aleppo, and what they might be sold for in England,--drawn up, towards the end of the seventeenth century, by Mr. Munn: from this it appears, that the price at Aleppo was three times that in India, and that the goods might be sold in England at half the Aleppo price. But as the expense of conveying goods to Aleppo from India, may, as Dr. Robertson observes, be reckoned nearly the same as that which was incurred by bringing them to Alexandria, he draws the inference already stated,--that the discovery of the Cape reduced the price of Indian commodities one half. The obvious and necessary result would follow, that they would be in greater demand, and more common use. The principal eastern commodities used by the Romans were spices and aromatics,--precious stones and pearls; and in the later periods of their power, silk; these, however, were almost exclusively confined to rare and solemn occasions, or to the use of the most wealthy and magnificent of the conquerors of the world. On the subversion of the Roman empire, the commodities of the East were for a short time in little request among the barbarians who subverted it: as soon, however, as they advanced from their ignorance and rudeness, these commodities seem strongly to have attracted their notice, and they were especially fond of spices and aromatics. These were used very profusely in their cookery, and formed the principal ingredients in their medicines. As, however, the price of all Indian commodities was necessarily high, so long as they were obliged to be brought to Europe by a circuitous route, and loaded with accumulated profits, it was impossible that they could be purchased, except by the more wealthy classes. The Portuguese, enabled to sell them in greater abundance, and at a much cheaper rate, introduced them into much more general use; and, as they every year extended their knowledge of the East, and their commerce with it, the number of ships fitted out at Lisbon every year, for India, became necessarily more numerous, in order to supply the increased demand.
Commerce in this case, as in every other, while it is acted upon by an extension of geographical knowledge, in its turn has an obvious tendency to extend that knowledge; this was the case with respect to India. The ancients had indeed made but small advances in their acquaintance with this country, notwithstanding they were stimulated by the large profits they derived from their eastern commerce; but this was owing to their comparative ignorance of navigation and the sciences on which it depends. As soon as the moderns had improved this art, especially by the use of the compass, and the Cape of Good Hope was discovered, commerce gave the stimulus, which in a very few years led the Portuguese from Calicut to the furthest extremity of Asia.
It is remarkable that the Portuguese were allowed to monopolize Indian commerce for so long a time as they did; this, however, as Dr. Robertson observes, may be accounted for, "from the political circumstances in the state of all those nations in Europe, whose intrusion as rivals the Portuguese had any reason to dread. From the accession of Charles V. to the throne, Spain was either so much occupied in a multiplicity of operations in which it was engaged by the ambition of that monarch, and of his son Philip II., or so intent on prosecuting its own discoveries and conquests in the New World, that although by the successful enterprize of Magellan, its fleets were unexpectedly conducted by a new course to that remote region of Asia, which was the seat of the most gainful and alluring branch of trade carried on by the Portuguese, it could make no considerable effect to avail itself of the commercial advantages which it might have derived from that event. By the acquisition of the crown of Portugal, in the year 1580, the kings of Spain, instead of the rivals, became the protectors of the Portuguese trade, and the guardians of all its exclusive rights. Throughout the sixteenth century, the strength and resources of France were so much wasted by the fruitless expeditions of their monarchs to Italy; by their unequal contest with the power and policy of Charles V., and by the calamities of the civil wars which desolated the kingdom upwards of forty years, that it could neither bestow much attention on commerce, nor engage in any scheme of distant enterprize. The Venetians, how sensibly soever they might feel the mortifying reverse of being excluded almost entirely from the Indian trade, of which their capital had been formerly the chief seat, were so debilitated and humbled by the league of Cambray, that they were no longer capable of engaging in any undertaking of magnitude. England, weakened by the long contests between the houses of York and Lancaster, and just beginning to recover its proper vigour, was restrained from active exertions during one part of the sixteenth century, by the cautious maxims of Henry VII., and wasted its strength, during another part of it, by engaging inconsiderately in the wars between the princes on the continent. The nation, though destined to acquire territories in India more extensive and valuable than were ever possessed by any European power, had no such presentiment of its future eminence there, as to take an early part in the commerce or transactions of that country, and a great part of the century elapsed before it began to turn its attention to the East.
"While the most considerable nations in Europe found it necessary, from the circumstances which I have mentioned, to remain inactive spectators of what passed in the East, the seven United Provinces of the Low Countries, recently formed into a small state, still struggling for political existence, and yet in the infancy of its power, ventured to appear in the Indian Ocean as the rivals of the Portuguese; and, despising their pretensions to an exclusive right of commerce with the extensive countries to the eastward of the Cape of Good Hope, invaded that monopoly which they had hitherto guarded with such jealous attention. The English soon followed the example of the Dutch, and both nations, at first by the enterprizing industry of private adventurers, and afterwards by the more powerful efforts of trading companies, under the protection of public authority, advanced with astonishing ardour and success in this new career opened to them. The vast fabric of power which the Portuguese had opened in the East, (a superstructure much too large for the basis on which it had to rest) was almost entirely overturned in as short time, and with as much facility, as it had been raised. England and Holland, by driving them from their most valuable settlements, and seizing the most lucrative branches of their trade, have attained to that pre-eminence of naval power and commercial opulence by which they are distinguished among the nations of Europe." (Robertson's India, pp. 177-9. 8vo. edition.)
Before, however, we advert to the commerce of the Dutch in India, it will be proper to notice those circumstances which gave a commercial direction to the people of the Netherlands, both before their struggle with Spain, and while the result of that struggle was uncertain. The early celebrity of Bruges as a commercial city has already been noticed; its regular fairs in the middle of the tenth century; its being made the entrepôt of the Hanse Association towards the end of the thirteenth. It naturally partook of the wealth and commercial improvement which Flanders derived from her woollen manufactures, and was in fact made the emporium of that country at the beginning of the fourteenth century; and within 100 years afterwards, the staple for English and Scotch goods. When the increased industry of the north of Europe induced and enabled its inhabitants to exchange the produce of their soil, fisheries, and manufactures, for the produce of the south of Europe, and of India, Bruges was made the great entrepôt of the trade of Europe. In the beginning of the sixteenth century its commercial importance began to decline, but the trade which left it, did not pass beyond the limits of the Netherlands; it settled in a great measure at Antwerp, which, as being accessible by sea, was more convenient for commerce than Bruges. This city, however, would not have fallen so easily or rapidly before its rival, had it not been distracted by civil commotions. From it the commerce of the Netherlands, and with it of the north of Europe, and the interchange of its commodities with those of the south of Europe and of Asia, gradually passed to Antwerp; and about the year 1516, most of the trade of Bruges was fixed here, the Portuguese making it their entrepôt for the supply of the northern kingdoms.
Even before this time the ships of the Netherlands seem to have been the carriers of the north of Europe; for in 1503, two Zealand ships arrived at Campveer, laden with sugars, the produce of the Canary Islands. Antwerp, however, continued till it was taken by the Spaniards, and its port destroyed by the blocking up of the Scheldt, to be most distinguished for its commerce, and its consequent wealth:--its situation, its easy access by sea, joined to the circumstance of its being made the Portuguese entrepôt for spices, drugs, and other rich productions of India, mainly contributed to its commerce. Merchants from every part of the north of Europe settled here, and even many of the merchants of Bruges removed to it, after the decline of their own city. Its free fairs for commerce, two of which lasted each time six weeks, attracted merchants from all parts, as they could bring their merchandize into it duty free, and were here certain of finding a market for it. In it also bills of exchange on all parts of Europe could be easily and safely negotiated. We have already mentioned the most wealthy merchants of England and France, in the fifteenth century: there existed at Antwerp, in the sixteenth, a firm of the name of Fugger, whose wealth was very great, and indicates the extent of their commercial dealings. From this firm the Emperor Charles V. had borrowed a very large sum, in order to carry on an expedition against Tunis. In the year 1534, Charles, being at Antwerp, Fugger invited him to an entertainment at his house, made a fire in his hall with cinnamon, and threw all the emperor's bonds into that fire. About eleven years afterwards, the same merchant gave an acquittance to Henry VIII. of England, for the sum of 152,180 l. Flemish, which the king had borrowed of him. The Fuggers had a licence from the king of Portugal to trade to India; and they used to send their own factor in every ship that sailed thither, and were the owners of part of every cargo of pepper imported.
In the year 1541, it contained 100,000 inhabitants: soon afterwards the persecutions on account of religion in Germany, England, and France, drove many people thither, and of course increased both its population and wealth. If we may believe Huet, in his History of Dutch Commerce, it was, at this time, not uncommon to see 2500 ships at once lying in the Scheldt.
The picture, however, which Guicciardini draws of Antwerp in 1560, when it had reached the zenith of its prosperity and wealth,--being that of a contemporary author, and entering into detail,--is at once much more curious and interesting, and may be depended on as authentic. It is also valuable, as exhibiting the state of the manufactures, commerce, &c. of most of the nations of Europe at this period.
"Besides the natives and the French, who are here very numerous, there are six principal foreign nations, who reside at Antwerp, both in war and peace, making above 1000 merchants, including factors and servants, viz. Germans, Danes, and Easterlings--that is, people from the ports in the south shores of the Baltic, from Denmark to Livonia--Italians, Spaniards, English, and Portuguese of these six nations; the Spaniards are the most numerous. One of those foreign merchants, Fugger, of Augsburg, died worth above six millions of crowns; there are many natives there with from 200,000 to 400,000 crowns."