Germans were early pushing as permanent settlers into the Scandinavian towns, and in Wisby, on the island of Gothland, the Scandinavian centre of Baltic trade, equal rights as citizens in the town government were possessed by the German settlers as early as the beginning of the 13th century. There also came into existence at Wisby the first association of German traders abroad, which united the merchants of over thirty towns, from Cologne and Utrecht in the West to Reval in the East. We find the Gothland association making in 1229 a treaty with a Russian prince and securing privileges for their branch trading station at Novgorod. According to the “Skra,” the by-laws of the Novgorod branch, the four aldermen of the community of Germans, who among other duties held the keys of the common chest, deposited in Wisby, were to be chosen from the merchants of the Gothland association and of the towns of Lübeck, Soest and Dortmund. The Gothland association received in 1237 trading rights in England, and shortly after the middle of the century it also secured privileges in Flanders. It legislated on matters relating to common trade interests, and, in the case of the regulation of 1287 concerning shipwrecked goods, we find it imposing this legislation on the towns under the penalty of exclusion from the association. But with the extension of the East and West trade beyond the confines of the Baltic, this association by the end of the century was losing its position of leadership. Its inheritance passed to the gradually forming union of towns, chiefly those known as Wendish, which looked to Lübeck as their head. In 1293 the Saxon and Wendish merchants at Rostock decided that all appeals from Novgorod be taken to Lübeck instead of to Wisby, and six years later the Wendish and Westphalian towns, meeting at Lübeck, ordered that the Gothland association should no longer use a common seal. Though Lübeck’s right as court of appeal from the Hanseatic counter at Novgorod was not recognized by the general assembly of the League until 1373, the long-existing practice had simply accorded with the actual shifting of commercial power. The union of merchants abroad was beginning to come under the control of the partial union of towns at home.
A similar and contemporary extension of the influence of the Baltic traders under Lübeck’s leadership may be witnessed in the West. As a consequence of the close commercial relations early existing between England and the Rhenish-Westphalian towns, the merchants of Cologne were the first to possess a gild-hall in London and to form a “hansa” with the right of admitting other German merchants on payment of a fee. The charter of 1226, however, by which Emperor Frederick II. created Lübeck a free imperial city, expressly declared that Lübeck citizens trading in England should be free from the dues imposed by the merchants of Cologne and should enjoy equal rights and privileges. In 1266 and 1267 the merchants of Hamburg and Lübeck received from Henry III. the right to establish their own hansas in London, like that of Cologne. The situation thus created led by 1282 to the coalescence of the rival associations in the “Gild-hall of the Germans,” but though the Baltic traders had secured a recognized foothold in the enlarged and unified organization, Cologne retained the controlling interest in the London settlement until 1476. Lübeck and Hamburg, however, dominated the German trade in the ports of the east coast, notably in Lynn and Boston, while they were strong in the organized trading settlements at York, Hull, Ipswich, Norwich, Yarmouth and Bristol. The counter at London, first called the Steelyard in a parliamentary petition of 1422, claimed jurisdiction over the other factories in England.
In Flanders, also, the German merchants from the West had long been trading, but here had later to endure not only the rivalry but the pre-eminence of those from the East. In 1252 the first treaty privileges for German trade in Flanders show two men of Lübeck and Hamburg heading the “Merchants of the Roman Empire,” and in the later organization of the counter at Bruges four or five of the six aldermen were chosen from towns east of the Elbe, with Lübeck steadily predominant. The Germans recognized the staple rights of Bruges for a number of commodities, such as wool, wax, furs, copper and grain, and in return for this material contribution to the growing commercial importance of the town, they received in 1309 freedom from the compulsory brokerage which Bruges imposed on foreign merchants. The importance and independence of the German trading settlements abroad was exemplified in the statutes of the “Company of German merchants at Bruges,” drawn up in 1347, where for the first time appears the grouping of towns in three sections (the “Drittel”), the Wendish-Saxon, the Prussian-Westphalian, and those of Gothland and Livland. Even more important than the assistance which the concentration of the German trade at Bruges gave to that leading mart of European commerce was the service rendered by the German counter of Bruges to the cause of Hanseatic unity. Not merely because of its central commercial position, but because of its width of view, its political insight, and its constant insistence on the necessity of union, this counter played a leading part in Hanseatic policy. It was more Hanse than the Hanse towns.
The last of the chief trading settlements, both in importance and in date of organization, was that at Bergen in Norway, where in 1343 the Hanseatics obtained special trade privileges. Scandinavia had early been sought for its copper and iron, its forest products and its valuable fisheries, especially of herring at Schonen, but it was backward in its industrial development and its own commerce had seriously declined in the 14th century. It had come to depend largely upon the Germans for the importation of all its luxuries and of many of its necessities, as well as for the exportation of its products, but regular trade with the three kingdoms was confined for the most part to the Wendish towns, with Lübeck steadily asserting an exclusive ascendancy. The fishing centre at Schonen was important as a market, though, like Novgorod, its trade was seasonal, but it did not acquire the position of a regularly organized counter, reserved alone, in the North, for Bergen. The commercial relations with the North cannot be regarded as an important element in the union of the Hanse towns, but the geographical position of the Scandinavian countries, especially that of Denmark, commanding the Sound which gives access to the Baltic, compelled a close attention to Scandinavian politics on the part of Lübeck and the League and thus by necessitating combined political action in defence of Hanseatic sea-power exercised a unifying influence.
Energetic and successful though the scattered trading settlements had been in establishing German trade connexions and in securing valuable trade privileges, the middle of the 14th century found them powerless to meet difficulties arising from internal dissension and still more from the political rivalries and trade jealousies of nascent nationalities. Flanders became a battle-field in the great struggle between France and England, and the war of trade prohibitions led to infractions of the German privileges in Bruges. An embargo on trade with Flanders, voted in 1358 by a general assembly, resulted by 1360 in the full restoration of German privileges in Flanders, but reduced the counter at Bruges to an executive organ of a united town policy. It is worth noting that in a document connected with this action the union of towns, borrowing the term from English usage, was first called the “German Hansa.” In 1361 representatives from Lübeck and Wisby visited Novgorod to recodify the by-laws of the counter and to admonish it that new statutes required the consent of Lübeck, Wisby, Riga, Dorpat and Reval. This action was confirmed in 1366 by an assembly of the Hansa which at the same time, on the occasion of a regulation made by the Bruges counter and of statutes drawn up by the young Bergen counter, ordered that in future the approval of the towns must be obtained for all new regulations.
The counter at London was soon forced to follow the example of the other counters at Bruges, Novgorod and Bergen. After the failure of the Italians, the Hanseatics remained the strongest group of alien merchants in England, and, as such, claimed the exclusive enjoyment of the privileges granted by the Carta Mercatoria of 1303. Their highly favoured position in England, contrasting markedly with their refusal of trade facilities to the English in some of the Baltic towns and their evident policy of monopoly in the Baltic trade, incensed the English mercantile classes, and doubtless influenced the increases in customs-duties which were regarded by the Germans as contrary to their treaty rights. Unsuccessful in obtaining redress from the English government, the German merchants finally, in 1374, appealed for aid to the home towns, especially to Lübeck. The result of Hanseatic representations was the confirmation by Richard II. in 1377 of all their privileges, which accorded them the preferential treatment they had claimed and became the foundation of the Hanseatic position in England.
In the meanwhile, the conquest of Wisby by Waldemar IV. of Denmark in 1361 had disclosed his ambition for the political control of the Baltic. He was promptly opposed by an alliance of Hanse towns, led by Lübeck. The defeat of the Germans at Helsingborg only called into being the stronger town and territorial alliance of 1367, known as the Cologne Confederation, and its final victory, with the peace of Stralsund in 1370, which gave for a limited period the four chief castles on the Sound into the hands of the Hanseatic towns, greatly enhanced the prestige of the League.
The assertion of Hanseatic influence in the two decades, 1356 to 1377, marks the zenith of the League’s power and the completion of the long process of unification. Under the pressure of commercial and political necessity, authority was definitely transferred from the Hansas of merchants abroad to the Hansa of towns at home, and the sense of unity had become such that in 1380 a Lübeck official could declare that “whatever touches one town touches all.” But even at the time when union was most important, this statement went further than the facts would warrant, and in the course of the following century it became less and less true. Dortmund held aloof from the Cologne Confederation on the ground that it had no concern in Scandinavian politics. It became, indeed, increasingly difficult to obtain the support of the inland towns for a policy of sea-power in the Baltic. Cologne sent no representatives to the regular Hanseatic assemblies until 1383, and during the 15th century its independence was frequently manifested. It rebelled at the authority of the counter at Bruges, and at the time of the war with England (1469-1474) openly defied the League. In the East, the German Order, while enjoying Hanseatic privileges, frequently opposed the policy of the League abroad, and was only prevented by domestic troubles and its Hinterland enemies from playing its own hand in the Baltic. After the fall of the order in 1467, the towns of Prussia and Livland, especially Dantzig and Riga, pursued an exclusive trade policy even against their Hanseatic confederates. Lübeck, however, supported by the Bruges counter, despite the disaffection and jealousy on all sides hampering and sometimes thwarting its efforts, stood steadfastly for union and the necessity of obedience to the decrees of the assemblies. Its headship of the League, hitherto tacitly accepted, was definitely recognized in 1418.
The governing body of the Hansa was the assembly of town representatives, the “Hansetage,” held irregularly as occasion required at the summons of Lübeck, and, with few exceptions, attended but scantily. The delegates were bound by instructions from their towns and had to report home the decisions of the assembly for acceptance or rejection. In 1469 the League declared that the English use of the terms “societas,” “collegium” and “universitas” was inappropriate to so loose an organization. It preferred to call itself a “firma confederatio” for trade purposes only. It had no common seal, though that of Lübeck was accepted, particularly by foreigners, in behalf of the League. Disputes between the confederate towns were brought for adjudication before the general assembly, but the League had no recognized federal judiciary. Lübeck, with the counters abroad, watched over the execution of the measures voted by the assembly, but there was no regular administrative organization. Money for common purposes was raised from time to time, as necessity demanded, by the imposition on Hanse merchandise of poundage dues, introduced in 1361, while the counters relied upon a small levy of like nature and upon fines to meet current needs. Even this slender financial provision met with opposition. The German Order in 1398 converted the Hanseatic poundage to a territorial tax for its own purposes, and one of the chief causes for Cologne’s disaffection a half-century later was the extension from Flanders to other parts of the Netherlands of the levy made by the counter at Bruges. Since the authority of the League rested primarily on the moral support of its members, allied in common trade interests and acquiescing in the able leadership of Lübeck, its only means of compulsion was the “Verhansung,” or exclusion of a recalcitrant town from the benefits of the trade privileges of the League. A conspicuous instance was the exclusion of Cologne from 1471 until its obedience in 1476, but the penalty had been earlier imposed, as in the case of Brunswick, on towns which overthrew their patrician governments. It was obviously, however, a measure to be used only in the last resort and with extreme reluctance.
The decisive factor in determining membership in the League was the historical right of the citizens of a town to participate in Hanseatic privileges abroad. At first the merchant Hansas had shared these privileges with almost any German merchant, and thus many little villages, notably those in Westphalia, ultimately claimed membership. Later, under the Hansa of the towns, the struggle for the maintenance of a coveted position abroad led to a more exclusive policy. A few new members were admitted, mainly from the westernmost sphere of Hanseatic influence, but membership was refused to some important applicants. In 1447 it was voted that admission be granted only by unanimous consent. No complete list of members was ever drawn up, despite frequent requests from foreign powers. Contemporaries usually spoke of 70, 72, 73 or 77 members, and perhaps the list is complete with Daenell’s recent count of 72, but the obscurity on so vital a point is significant of the amorphous character of the organization.