The entrance of English vessels into ports of towns or countries whose own vessels had been accustomed to the control of the trade with England, or where the old commercial towns of the Hanseatic League, of Flanders, or of Italy had valuable trading concessions, was not obtained without difficulty, and there was a constant succession of conflicts more or less violent, and of disputes between English and foreign sailors and merchants. The progress of English commerce was, however, facilitated by the decay in the prosperity of many of these older trading towns. The growth of strong governments in Denmark, Sweden, Norway, Poland, and Russia resulted in a withdrawal of privileges which the Hanseatic League had long possessed, and internal dissensions made the League very much weaker in the later fifteenth century than it had been during the century and a half before. The most important single occurrence showing this tendency was the capture of Novgorod by the Russian Czar and his expulsion of the merchants of the Hanse from their settlement in that commercial centre. In the same way most of the towns along the south coast of the Baltic came under the control of the kingdom of Poland.

A similar change came about in Flanders, where the semi-independent towns came under the control of the dukes of Burgundy. These sovereigns had political interests too extensive to be subordinated to the trade interests of individual towns in their dominions. Thus it was that Bruges now lost much of its prosperity, while Antwerp became one of the greatest commercial cities of Europe. Trading rights could now be obtained from centralized governments, and were not dependent on the interest or the antagonism of local merchants.

In Italy other influences were leading to much the same results. The advance of Turkish conquests was gradually increasing the difficulties of the Eastern trade, and the discovery of the route around the Cape of Good Hope in 1498 finally diverted that branch of commerce into new lines. English merchants gained access to some of this new Eastern trade through their connection with Portugal, a country advantageously situated to inherit the former trade of Italy and southern Germany. English commerce also profited by the predominance which Florence obtained over Pisa, Genoa, and other trading towns. Thus conditions on the Continent were strikingly favorable to the growing commercial enterprise of England.

*43. The Merchants Adventurers.*--English merchants who exported and imported goods in their own vessels were, with the exception of the staplers or exporters of wool and other staple articles, usually spoken of as "adventurers," "venturers," or "merchants adventurers."

This term is used in three different senses. Sometimes it simply means merchants who entered upon adventure or risk by sending their goods outside of the country to new or unrecognized markets, as the "adventurers to Iceland," "adventurers to Spain." Again, it is applied to groups of merchants in various towns who were organized for mutual protection or other advantage, as the "fishmongers adventurers" who brought their complaints before the Royal Council in 1542, "The Master, Wardens, and Commonalty of Merchant Venturers, of Bristol,"

existing apparently in the fourteenth century, fully organized by 1467, and incorporated in 1552, "The Society of Merchants Adventurers of Newcastle upon Tyne," or the similar bodies at York and Exeter.

But by far the most frequent use of the term is that by which it was applied to those merchants who traded to the Netherlands and adjacent countries, especially as exporters of cloth, and who came within this period to be recognized and incorporated as the "Merchants Adventurers" in a special sense, with headquarters abroad, a coat of arms of their own, extensive privileges, great wealth, influence, and prominence. These English merchants, trading to the Netherlands in other articles than those controlled by the Staplers, apparently received privileges of trade from the duke of Brabant as early as the thirteenth century, and the right of settling their own disputes before their own "consul" in the fourteenth. But their commercial enterprises must have been quite insignificant, and it was only during the fifteenth century that they became numerous and their trade in English cloth extensive. Just at the beginning of this century, in 1407, the king of England gave a general charter to all merchants trading beyond seas to a.s.semble in definite places and choose for themselves consuls or governors to arrange for their common trade advantage. After this time, certainly by the middle of the century, the regular series of governors of the English merchants in the Netherlands was established, one of the earliest being William Caxton, afterward the founder of printing in England. On the basis of these concessions and of the privileges and charters granted by the home government the "Merchants Adventurers" gradually became a distinct organization, with a definite membership which was obtained by payment of a sum which gradually rose from 6_s._ 8_d._ to 20, until it was reduced by a law of Parliament in 1497 to 6 13_s._ 4_d._ They had local branches in England and on the Continent. In 1498 they were granted a coat of arms by Henry VII, and in 1503 by royal charter a distinct form of government under a governor and twenty-four a.s.sistants. In 1564 they were incorporated by a royal charter by the t.i.tle of "The Merchants Adventurers of England." Long before that time they had become by far the largest and most influential company of English exporting merchants. It is said that the Merchants Adventurers furnished ten out of the sixteen London ships sent to join the fleet against the Armada.

Most of their members were London mercers, though there were also in the society members of other London companies, and traders whose homes were in other English towns than London. The meetings of the company in London were held for a long while in the Mercers' hall, and their records were kept in the same minute book as those of the Mercers until 1526. On the Continent their princ.i.p.al office, hall, or gathering place, the residence of their Governor and location of the "Court,", or central government of the company, was at different times at Antwerp, Bruges, Calais, Hamburg, Stade, Groningen and Middleburg; for the longest time probably at the first of these places. The larger part of the foreign trade of England during the fifteenth and most of the sixteenth century was carried on and extended as well as controlled and regulated by this great commercial company.

[Ill.u.s.tration: Hall of the Merchants Adventurers at Bruges. (Blade: _Life of Caxton_. Published by Kegan Paul, Trench, Trubner & Co.)]

During the latter half of the sixteenth century, however, other companies of merchants were formed to trade with various countries, most of them receiving a government charter and patronage. Of these the Russia or Muscovy Company obtained recognition from the government in 1554, and in 1557, when an amba.s.sador from that country came to London, a hundred and fifty merchants trading to Russia received him in state. In 1581 the Levant or Turkey Company was formed, and its members carried their merchandise as far as the Persian Gulf. In 1585 the Barbary or Morocco Company was formed, but seems to have failed.

In 1588, however, a Guinea Company began trading, and in 1600 the greatest of all, the East India Company, was chartered. The expeditions sent out by the Bristol merchants and then by the king under the Cabots, those other voyages so full of romance in search of a northwest or a northeast pa.s.sage to the Orient, and the no less adventurous efforts to gain entrance to the Spanish possessions in the west, were a part of the same effort of commercial companies or interests to carry their trading into new lands.

*44. Government Encouragement of Commerce.*--Before the accession of Henry VII it is almost impossible to discover any deliberate or continuous policy of the government in commercial matters. From this time forward, however, through the whole period of the Tudor monarchs a tolerably consistent plan was followed of favoring English merchants and placing burdens and restrictions upon foreign traders. The merchants from the Hanse towns, with their dwellings, warehouses, and offices at the Steelyard in London, were subjected to a narrower interpretation of the privileges which they possessed by old and frequently renewed grants. In 1493 English customs officers began to intrude upon their property; in 1504 especially heavy penalties were threatened if they should send any cloth to the Netherlands during the war between the king and the duke of Burgundy. During the reign of Henry VIII the position of the Hansards was on the whole easier, but in 1551 their special privileges were taken away, and they were put in the same position as all other foreigners. There was a partial regrant of advantageous conditions in the early part of the reign of Elizabeth, but finally, in 1578, they lost their privileges forever.

As a matter of fact, German traders now came more and more rarely to England, and their settlement above London Bridge was practically deserted.

The fleet from Venice also came less and less frequently. Under Henry VIII for a period of nine years no fleet came to English ports; then after an expedition had been sent out from Venice in 1517, and again in 1521, another nine years pa.s.sed by. The fleet came again in 1531, 1532, and 1533, and even afterward from time to time occasional private Venetian vessels came, till a group of them suffered shipwreck on the southern coast in 1587, after which the Venetian flag disappeared entirely from those waters.

In the meantime a series of favorable commercial treaties were made in various directions by Henry VII and his successors. In 1490 he made a treaty with the king of Denmark by which English merchants obtained liberty to trade in that country, in Norway, and in Iceland. Within the same year a similar treaty was made with Florence, by which the English merchants obtained a monopoly of the sale of wool in the Florentine dominions, and the right to have an organization of their own there, which should settle trade disputes among themselves, or share in the settlement of their disputes with foreigners. In 1496 the old trading relations with the Netherlands were reestablished on a firmer basis than ever by the treaty which has come in later times to be known as the _Intercursus Magnus_. In the same year commercial advantages were obtained from France, and in 1499 from Spain. Few opportunities were missed by the government during this period to try to secure favorable conditions for the growing English trade. Closely connected as commercial policy necessarily was with political questions, the former was always a matter of interest to the government, and in all the ups and downs of the relations of England with the Continental countries during the sixteenth century the foothold gained by English merchants was always preserved or regained after a temporary loss.

The closely related question of English ship-building was also a matter of government encouragement. In 1485 a law was pa.s.sed declaring that wines of the duchies of Guienne and Gascony should be imported only in vessels which were English property and manned for the most part by Englishmen. In 1489 woad, a dyestuff from southern France, was included, and it was ordered that merchandise to be exported from England or imported into England should never be shipped in foreign vessels if sufficient English vessels were in the harbor at the time.

Although this policy was abandoned during the short reign of Edward VI it was renewed and made permanent under Elizabeth. By indirect means also, as by the encouragement of fisheries, English seafaring was increased.

As a result of these various forms of commercial influence, the enterprise of individual English merchants, the formation of trading companies, the a.s.sistance given by the government through commercial treaties and favoring statutes, English commerce became vastly greater than it had ever been before, reaching to Scandinavia and Russia, to Germany and the Netherlands, to France and Spain, to Italy and the eastern Mediterranean, and even occasionally to America. Moreover, it had come almost entirely into the hands of Englishmen; and the goods exported and imported were carried for the most part in ships of English build and ownership, manned by English sailors.

*45. The Currency.*--The changes just described were closely connected with contemporary changes in the gold and silver currency. Shillings were coined for the first time in the reign of Henry VII, a pound weight of standard silver being coined into 37 shillings and 6 pence.

In 1527 Henry VIII had the same amount of metal coined into 40 shillings, and later in the year, into 45 shillings. In 1543 coin silver was changed from the old standard of 11 ounces 2 pennyweights of pure silver to 18 pennyweights of alloy, so as to consist of 10 ounces of silver to 2 ounces of alloy; and this was coined into 48 shillings. In 1545 the coin metal was made one-half silver, one-half alloy; in 1546, one-third silver, two-thirds alloy; and in 1550, one-fourth silver, three-fourths alloy. The gold coinage was correspondingly though not so excessively debased. The lowest point of debas.e.m.e.nt for both silver and gold was reached in 1551. In 1560 Queen Elizabeth began the work of restoring the currency to something like its old standard. The debased money was brought to the mints, where the government paid the value of the pure silver in it. Money of a high standard and permanently established weight was then issued in its place. Much of the confusion and distress prevalent during the reigns of Henry VIII and Edward VI was doubtless due to this selfish and unwise monetary policy.

At about the same time a new influence on the national currency came into existence. Strenuous but not very successful efforts had long been made to draw bullion into England and prevent English money from being taken out. Now some of the silver and gold which was being extorted from the natives and extracted from the mines of Mexico and Peru by the Spaniards began to make its way into England, as into other countries of Europe. These American sources of supply became productive by about 1525, but very little of this came into general European circulation or reached England till the middle of the century. After about 1560, however, through trade, and sometimes by even more direct routes, the amount of gold and silver money in circulation in England increased enormously. No reliable statistics exist, but there can be little doubt that the amount of money in England, as in Europe at large, was doubled, trebled, quadrupled, or perhaps increased still more largely within the next one hundred years.

This increase of money produced many effects. One of the most important was its effect on prices. These had begun to rise in the early part of the century, princ.i.p.ally as a result of the debas.e.m.e.nt of the coinage. In the latter part of the century the rise was much greater, due now, no doubt, to the influx of new money. Most commodities cost quite four times as much at the end of the sixteenth century as they did at its beginning.

Another effect of the increased amount of currency appeared in the greater ease with which the use of money capital was obtained. Saving up and borrowing were both more practicable. More capital was now in existence and more persons could obtain the use of it. As a result, manufacturing, trade, and even agriculture could now be conducted on a more extensive scale, changes could be introduced, and production was apt to be profitable, as prices were increasing and returns would be greater even than those calculated upon.

*46. Interest.*--Any extensive and varied use of capital is closely connected with the payment of interest. In accord with a strict interpretation of certain pa.s.sages in both the Old and the New Testament, the Middle Ages regarded the payment of interest for the use of money as wicked. Interest was the same as usury and was illegal. As a matter of fact, most regular occupations in the Middle Ages required very little capital, and this was usually owned by the agriculturists, handicraftsmen, or merchants themselves; so that borrowing was only necessary for personal expenses or in occasional exigencies. With the enclosures, sheep farming, consolidation of farms, and other changes in agriculture, with the beginning of manufacturing under the control of capitalist manufacturers, with the more extensive foreign trading and ship owning, and above all with the increase in the actual amount of money in existence, these circ.u.mstances were changed. It seemed natural that money which one person had in his possession, but for which he had no immediate use, should be loaned to another who could use it for his own enterprises.

These enterprises might be useful to the community, advantageous to himself, and yet profitable enough to allow him to pay interest for the use of the money to the capitalist who loaned it to him. As a matter of fact much money was loaned and, legally or illegally, interest or usury was paid for it. Moreover, a change had been going on in legal opinion parallel to these economic changes, and in 1545 a law was pa.s.sed practically legalizing interest if it was not at a higher rate than ten per cent. This was, however, strongly opposed by the religious opinion of the time, especially among men of Puritan tendencies. They seemed, indeed, to be partially justified by the fact that the control of capital was used by the rich men of the time in such a way as to cause great hardship. In 1552, therefore, the law of 1545 was repealed, and interest, except in the few forms in which it had always been allowed, was again prohibited. But the tide soon turned, and in 1571 interest up to ten per cent was again made lawful.

From that time forward the term usury was restricted to excessive interest, and this alone was prohibited. Yet the practice of receiving interest for the loan of money was still generally condemned by writers on morals till quite the end of this period; though lawyers, merchants, and popular opinion no longer disapproved of it if the rate was moderate.

*47. Paternal Government.*--In many of the changes which have been described in this chapter, the share which government took was one of the most important influences. In some cases, as in the laws against enclosures, against the migration of industry from the towns to the rural districts, and against usury, the policy of King and Parliament was not successful in resisting the strong economic forces which were at work. In others, however, as in the oversight of industry, in the confiscation of the property of the gilds devoted to religious uses, in the settlement of the relations between employers and employees, in the control of foreign commerce, the policy of the government really decided what direction changes should take.

As has been seen in this chapter, after the accession of Henry VII there was a constant extension of the sphere of government till it came to pa.s.s laws upon and provide for and regulate almost all the economic interests of the nation. This was a result, in the first place, of the breaking down of those social inst.i.tutions which had been most permanent and stable in earlier periods. The manor system in the country, landlord farming, the manor courts, labor dues, serfdom, were pa.s.sing rapidly away; the old type of gilds, city regulations, trading at fairs, were no longer so general; it was no longer foreigners who brought foreign goods to England to be sold, or bought English goods for exportation. When these old Customs were changing or pa.s.sing away, the national government naturally took charge to prevent the threatened confusion of the process of disintegration. Secondly, the government itself, from the latter part of the fifteenth century onward, became abler and more vigorous, as has been pointed out in the first paragraph of this chapter. The Privy Council of the king exercised larger functions, and extended its jurisdiction into new fields. Under these circ.u.mstances, when the functions of the central government were being so widely extended, it was altogether natural that they should come to include the control of all forms of industrial life, including agriculture, manufacturing, commerce, internal trade, labor, and other social and economic relations.

Thirdly, the control of economic and social matters by the government was in accordance with contemporary opinions and feelings. An enlightened absolutism seems to have commended itself to the most thoughtful men of that time. A paternalism which regulated a very wide circle of interests was unhesitatingly accepted and approved. As a result of the decay of mediaeval conditions, the strengthening of national government, and the prevailing view of the proper functions of government, almost all economic conditions were regulated by the government to a degree quite unknown before. In the early part of the period this regulation was more minute, more intrusive, more evidently directed to the immediate advantage of government; but by the close of Elizabeth's reign a systematic regulation was established, which, while not controlling every detail of industrial life, yet laid down the general lines along which most of industrial life must run. Some parts of this regulation have already been a.n.a.lyzed. Perhaps the best instance and one of the most important parts of it is the Statute of Apprentices of 1563, already described in paragraph 40. In the same year, 1563, a statute was pa.s.sed full of minute regulations for the fishing and fish-dealing trades. Foreign commerce was carried on by regulated companies; that is, companies having charters from the government, giving them a monopoly of the trade with certain countries, and laying down at least a part of the rules under which that trade should be carried on. The importation of most kinds of finished goods and the exportation of raw materials were prohibited.

New industries were encouraged by patents or other government concessions. Many laws were pa.s.sed, of which that of 1571, to encourage the industry of making caps, is a type. This law laid down the requirement that every person of six years old and upward should wear on every Sunday and holy day a woollen cap made in England.

The conformity to standard of manufactures was enforced either by the officers of companies which were established under the authority of the government or by government officials or patentees, and many of the methods and standards of manufacture were themselves defined by statutes or proclamation. In agriculture, while the policy was less consistent, government regulation was widely applied. There were laws, as has been noted, forbidding the possession of more than two thousand sheep by any one landholder and of more than two farms by any one tenant; laws requiring the keeping of one cow and one calf for every sixty sheep, and the raising a quarter of an acre of flax or hemp for every sixty acres devoted to other crops. The most characteristic laws for the regulation of agriculture, however, were those controlling the export of grain. In order to prevent an excessive price, grain-raisers were not allowed to export wheat or other grain when it was scarce in England. When it was cheap and plenty, they were permitted to do so, the conditions under which it was to be allowed or forbidden being decided, according to a law of 1571, by the justices of the peace of each locality, with the restriction that none should be exported when the prevailing price was more than 1_s._ 3_d._ a bushel, a limit which was raised to 2_s._ 6_d._ in 1592.

Thus, instead of industrial life being controlled and regulated by town governments, merchant and craft gilds, lords of fairs, village communities, lords of manors and their stewards, or other local bodies, it was now regulated in its main features by the all-powerful national government.

*48. BIBLIOGRAPHY*

Professor Ashley's second volume is of especial value for this period.

Green, Mrs. J. R.: _Town Life in England in the Fifteenth Century_, two volumes.

Cheyney, E. P.: _Social Changes in England in the Sixteenth Century, Part I, Rural Changes_.

A discussion of the legal character of villain tenure in the sixteenth century will be found in articles by Mr. I. S. Leadam, in _The English Historical Review_, for October, 1893, and in the _Transactions of the English Royal Historical Society_ for 1892, 1893, and 1894; and by Professor Ashley in the _English Historical Review_ for April, 1893, and _Annals of the American Academy of Political Science_ for January, 1891. (Reprinted in _English Economic History_, Vol. II, Chap. 4.)

Bourne, H. R. F.: _English Merchants_.

Froude, J. A.: _History of England_. Many scattered pa.s.sages of great interest refer to the economic and social changes of this period, but they are frequently exaggerated, and in some cases incorrect. Almost the same remark applies to Professor Rogers' _Six Centuries of Work and Wages_ and _Industrial and Commercial History of England_.

Busch, Wilhelm: _A History of England under the Tudors_. For the economic policy of Henry VII.

CHAPTER VII

THE EXPANSION OF ENGLAND

Economic Changes Of The Seventeenth And Early Eighteenth Centuries

*49. National Affairs from 1603 to 1760.*--The last three rulers of the Tudor family had died childless. James, king of Scotland, their cousin, therefore inherited the throne and became the first English king of the Stuart family. James reigned from 1603 to 1625. Many of the political and religious problems which had been created by the policy of the Tudor sovereigns had now to come up for solution.

Parliament had long been restive under the almost autocratic government of Queen Elizabeth, but the danger of foreign invasion and internal rebellion, long-established habit, Elizabeth's personal popularity, her age, her s.e.x, and her occasional yielding, all combined to prevent any very outspoken opposition. Under King James all these things were changed. Yet he had even higher ideas of his personal rights, powers, and duties as king than any of his predecessors. Therefore during the whole of the reign dispute and ill feeling existed between the king, his ministers, and many of the judges and other officials, on the one hand, and the majority of the House of Commons and among the middle and upper cla.s.ses of the country, on the other. James would willingly have avoided calling Parliament altogether and would have carried on the government according to his own judgment and that of the ministers he selected, but it was absolutely necessary to a.s.semble it for the pa.s.sing of certain laws, and above all for the authorization of taxes to obtain the means to carry on the government. The fall in the value of gold and silver and the consequent rise of prices, and other economic changes, had reduced the income of the government just at a time when its necessary expenses were increasing, and when a spendthrift king was making profuse additional outlays. Finances were therefore a constant difficulty during his reign, as in fact they remained during the whole of the seventeenth century.

In religion James wished to maintain the middle course of the established church as it had been under Elizabeth. He was even less inclined to harsh treatment of the Roman Catholics. On the other hand, the tide of Puritan feeling appealing for greater strictness and earnestness in the church and a more democratic form of church government was rising higher and higher, and with this a desire to expel the Roman Catholics altogether. The House of Commons represented this strong Protestant feeling, so that still another cause of conflict existed between King and Parliament. Similarly, in foreign affairs and on many other questions James was at cross purposes with the main body of the English nation.

This reign was the period of foundation of England's great colonial empire. The effort to establish settlements on the North American coast were at last successful in Virginia and New England, and soon after in the West Indies. Still other districts were being settled by other European nations, ultimately to be absorbed by England. On the other side of the world the East India Company began its progress toward the subjugation of India. Nearer home, a new policy was carried out in Ireland, by which large numbers of English and Scotch immigrants were induced to settle in Ulster, the northernmost province. Thus that process was begun by which men of English race and language, living under English inst.i.tutions and customs, have established centres of population, wealth, and influence in so many parts of the world.

Charles I came to the throne in 1625. Most of the characteristics of the period of James continued until the quarrels between King and Parliament became so bitter that in 1642 civil war broke out. The result of four years of fighting was the defeat and capture of the king. After fruitless attempts at a satisfactory settlement Charles was brought to trial by Parliament in 1649, declared guilty of treason, and executed.

A republican form of government was now established, known as the "Commonwealth," and kingship and the House of Lords were abolished.

The army, however, had come to have a will of its own, and quarrels between its officers and the majority of Parliament were frequent.

Both Parliament and army had become unpopular, taxation was heavy, and religious disputes troublesome. The majority in Parliament had carried the national church so far in the direction of Puritanism that its excesses had brought about a strong reactionary feeling. Parliament had already sat for more than ten years, hence called the "Long Parliament," and had become corrupt and despotic. Under these circ.u.mstances, one modification after another was made in the form of government until in 1653 Oliver Cromwell, the commander of the army and long the most influential man in Parliament, dissolved that body by military force and was made Lord Protector, with powers not very different from those of a king. There was now a period of good order and great military and naval success for England; Scotland and Ireland, both of which had declared against the Commonwealth, were reduced to obedience, and successful foreign wars were waged. But at home the government did not succeed in obtaining either popularity or general acceptance. Parliament after Parliament was called, but could not agree with the Protector. In 1657 Cromwell was given still higher powers, but in 1658 he died. His son, Richard Cromwell, was installed as Protector. The republican government had, however, been gradually drifting back toward the old royal form and spirit, so when the new Lord Protector proved to be unequal to the position, when the army became rebellious again, and the country threatened to fall into anarchy, Monk, an influential general, brought about the rea.s.sembling of the Long Parliament, and this body recalled the son of Charles I to take his hereditary seat as king.