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19. Markets and Fairs. Within the towns, in addition to the ordinary trading described in the last chapter, much buying and selling was done at the weekly or semi-weekly markets. The existence of a market in a town was the result of a special grant from the king, sometimes to the burgesses themselves, sometimes to a neighboring nobleman or abbey. In the latter case the tolls paid by outsiders who bought or sold cattle or victuals in the market did not go to the town or gild authorities, but to the person who was said to “own” the market. Many places which differed in scarcely any other way from agricultural villages possessed markets, so that “market towns” became a descriptive term for small towns midway in size between the larger boroughs or cities and mere villages. The sales at markets were usually of the products of the surrounding country, especially of articles of food consumption, so that the fact of the existence of a market on one or more days of the week in a large town was of comparatively little importance from the point of view of more general trade.

Far more important was the similar institution of periodical fairs. Fairs, like markets, existed only by grant from the king. They differed from markets, however, in being held only once a year or at most semi-annually or quarterly, in being invariably in the possession of private persons, never of town governments, and in the fact that during their continuance as a rule all buying and selling except at the fairs was suspended within a considerable circuit. Several hundred grants of fairs are recorded on the rolls of royal charters, most of them to abbeys, bishoprics, and noblemen; but comparatively few of them were of sufficient size or importance to play any considerable part in the trade and commerce of the country. Moreover, the development of the towns with their continuous trade tended to draw custom away from all the fairs except those which had obtained some especial importance and an international reputation. Of these, however, there was still a considerable number whose influence was very great. The best known were those of Winchester, of Stourbridge near Cambridge, of St. Ives belonging to the abbot of Ramsay, and of Boston. In early times fairs were frequently held in the churchyards, but this came to be looked upon as a scandal, and was prohibited by a law of 1285. The fairs were in many cases held just beyond the limits of a town in an open field or on a smooth hillside. Each year, some time before the opening day of the fair, this ground was formally occupied by the servants of the owner of the fair, wooden booths were erected or ground set apart for those who should put up their own tents or prefer to sell in the open. Then as merchants appeared from foreign or English towns they chose or were assigned places which they were bound to retain during the continuance of the fair. By the time of the opening of the fair those who expected to sell were arranged in long rows or groups, according to the places they came from, or the kind of goods in which they dealt. After the opening had been proclaimed no merchant of the nearby town could buy or sell, except within the borders of the fair. The town authorities resigned their functions into the hands of the officials whom the lord of the fair had placed in charge of it, and for the time for which the fair was held, usually from six to twelve days, everything within the enclosure of the fair, within the town, and in the surrounding neighborhood was under their control.

Tolls were collected for the advantage of the lord of the fair from all goods as they were brought into or taken out from the bounds of the fair, or at the time of their sale; stallage was paid for the rent of booths, fees were charged for the use of space, and for using the lord’s weights and scales. Good order was preserved and fair dealing enforced by the officials of the lord. To prevent offences and settle disputes arising in the midst of the busy trading the officials of the lord formed a court which sat continually and followed a summary procedure. This was known as a court of “pie-powder,” that is pied poudre, or dusty foot, so called, no doubt, from its readiness to hear the suits of merchants and wayfarers, as they were, without formality or delay. At this court a great variety of cases came up, such as disputes as to debts, failure to perform contracts of sale or purchase, false measurements, theft, assault, defamation, and misdemeanors of all kinds. Sometimes the court decided offhand, sometimes compurgation was allowed immediately or on the next day, sometimes juries were formed and gave decisions. The law which the court of pie-powder administered was often referred to as the “law merchant,” a somewhat less rigid system than the common law, and one whose rules were generally defined, in these courts and in the king’s courts, by juries chosen from among the merchants themselves.

At these fairs, even more than in the towns, merchants from a distance gathered to buy the products peculiar to the part of England where the fair was held, and to sell their own articles of importation or production. The large fairs furnished by far the best markets of the time. We find mention made in the records of one court of pie-powder of men from a dozen or twenty English towns, from Bordeaux, and from Rouen. The men who came from any one town, whether of England or the Continent, acted and were treated as common members of the gild merchant of that town, as forming a sort of community, and being to a certain extent responsible for one another. They did their buying and selling, it is true, separately, but if disputes arose, the whole group were held responsible for each member. For example, the following entry was made in the roll of the fair of St. Ives in the year 1275: “William of Fleetbridge and Anne his wife complain of Thomas Coventry of Leicester for unjustly withholding from them 55_s._ 2-1/2_d._ for a sack of wool.... Elias is ordered to attach the community of Leicester to answer ... and of the said community Allan Parker, Adam Nose and Robert Howell are attached by three bundles of ox-hides, three hundred bundles of sheep skins and six sacks of wool.”

20. Trade Relations between Towns. The fairs were only temporary selling places. When the time for which the fair was held had expired the booths were removed, the merchants returned to their native cities or travelled away to some other fair, and the officials were withdrawn. The place was deserted until the next quarter or year. But in the towns, as has been already stated, more or less continuous trade went on; not only petty retail trade and that of the weekly or semi-weekly markets between townsmen or countrymen coming from the immediate vicinity, but a wholesale trade between the merchants of that town and those from other towns in England or on the Continent.

It was of this trade above all that the gild merchant of each town possessed the regulation. Merchants from another town were treated much the same, whether that town was English or foreign. In fact, “foreigner” or “alien,” as used in the town records, of Bristol, for instance, may apply to citizens of London or Oxford just as well as to those of Paris or Cologne. Such “foreign” merchants could deal when they came to a town only with members of the gild, and only on the conditions required by the gild. Usually they could buy or sell only at wholesale, and tolls were collected from them upon their sales or purchases. They were prohibited from dealing in some kinds of articles altogether, and frequently the duration of their stay in the town was limited to a prescribed period. Under such circumstances the authorities of various towns entered into trade agreements with those of other towns providing for mutual concessions and advantages. Correspondence was also constantly going on between the officials of various towns for the settlement of individual points of dispute, for the return of fugitive apprentices, asking that justice might be done to aggrieved citizens, and on occasion threatening reprisal. Southampton had formal agreements with more than seventy towns or other trading bodies. During a period of twenty years the city authorities of London sent more than 300 letters on such matters to the officials of some 90 other towns in England and towns on the Continent. The merchants from any one town did not therefore trade or act entirely as separate individuals, but depended on the prestige of their town, or the support of the home authorities, or the privileges already agreed upon by treaty. The non-payment of a debt by a merchant of one town usually made any fellow-townsman liable to seizure where the debt was owed, until the debtor could be made to pay. In 1285, by a law of Edward I, this was prohibited as far as England was concerned, but a merchant from a French town might still have his person and property seized for a debt of which he may have had no previous knowledge. External trade was thus not so much individual, between some Englishmen and others; or international, between Englishmen and Frenchmen, Flemings, Spaniards, or Germans, as it was intermunicipal, as it has been well described. Citizens of various towns, London, Bristol, Venice, Ghent, Arras, or Lubeck, for instance, carried on their trade under the protection their city had obtained for them.

21. Foreign Trading Relations. The regulations and restrictions of fairs and town markets and gilds merchant must have tended largely to the discouragement of foreign trade. Indeed, the feeling of the body of English town merchants was one of strong dislike to foreigners and a desire to restrict their trade within the narrowest limits. In addition to the burdens and limitations placed upon all traders not of their own town, it was very common in the case of merchants from abroad to require that they should only remain within the town for the purpose of selling for forty days, and that they should board not at an inn but in the household of some town merchant, who could thus keep oversight of their movements, and who would be held responsible if his guest violated the law in any way. This was called the custom of “hostage.”

The king, on the other hand, and the classes most influential in the national government, the nobility and the churchmen, favored foreign trade. A series of privileges, guarantees, and concessions were consequently issued by the government to individual foreign merchants, to foreign towns, and even to foreigners generally, the object of which was to encourage their coming to England to trade. The most remarkable instance of this was the so-called Carta Mercatoria issued by Edward I in 1303. It was given according to its own terms, for the peace and security of merchants coming to England from Germany, France, Spain, Portugal, Navarre, Lombardy, Tuscany, Provence, Catalonia, Aquitaine, Toulouse, Quercy, Flanders, Brabant, and all other foreign lands. It allowed such merchants to bring in and sell almost all kinds of goods, and freed them from the payment of many tolls and payments habitually exacted by the towns; it gave them permission to sell to strangers as well as to townsmen, and to retail as well as sell by wholesale. It freed them from the necessity of dwelling with native merchants, and of bringing their stay to a close within a restricted time. Town and market authorities were required by it to give prompt justice to foreigners according to the law merchant, and it was promised that a royal judge would be specially appointed to listen to appeals. It is quite evident that if this charter had been enforced some of the most familiar and valued customs of the merchants of the various English towns would have been abrogated. In consequence of vigorous protests and bitter resistance on the part of the townsmen its provisions were partly withdrawn, partly ignored, and the position of foreign merchants in England continued to depend on the tolerably consistent support of the crown. Even this was modified by the steady policy of hostility, limitation, and control on the part of the native merchants.

With the exception of some intercourse between the northern towns and the Scandinavian countries, the foreign trade of England was carried on almost entirely by foreigners. English merchants, until after the fourteenth century, seem to have had neither the ability, the enterprise, nor the capital to go to continental cities in any numbers to sell the products of their own country or to buy goods which would be in demand when imported into England. Foreigners were more enterprising. From Flemish, French, German, Italian, and even Spanish cities merchants came over as traders. The product of England which was most in demand was wool. Certain parts of England were famous throughout all Europe for the quality and quantity of the wool raised there. The relative good order of England and its exemption from civil war made it possible to raise sheep more extensively than in countries where foraging parties from rival bodies of troops passed frequently to and fro. Many of the monasteries, especially in the north and west, had large outlying wastes of land which were regularly used for the raising of sheep. The product of these northern and western pastures as well as the surplus product of the demesnes and larger holdings of the ordinary manors was brought to the fairs and towns for sale and bought up readily by foreign merchants. Sheepskins, hides, and tanned leather were also exported, as were certain coarse woven fabrics. Tin and lead were well-known products, at that time almost peculiar to England, and in years of plentiful production, grain, salt meat, and dairy products were exported. England was far behind most of the Continent in industrial matters, so that there was much that could be brought into the country that would be in demand, both of the natural productions of foreign countries and of their manufactured articles.

Trade relations existed between England and the Scandinavian countries, northern Germany, southern Germany, the Netherlands, northeastern, northwestern, and southern France, Spain and Portugal, and various parts of Italy. Of these lines of trade the most important were the trade with the Hanse cities of northern Germany, with the Flemish cities, and with those in Italy, especially Venice.

22. The Italian and Eastern Trade. The merchandise which Venice had to offer was of an especially varied nature. Her prosperity had begun with a coastwise trade along the shores of the Adriatic. Later, especially during the period of the Crusades, her training had been extended to the eastern Mediterranean, where she obtained trading concessions from the Greek Emperor and formed a half commercial, half political empire of her own among the island cities and coast districts of the Ionian Sea, along the Dardanelles and the Sea of Marmora, and finally in the Black Sea. From these regions she brought the productions peculiar to the eastern Mediterranean: wines, sugar, dried fruits and nuts, cotton, drugs, dyestuffs, and certain kinds of leather and other manufactured articles.

Eventually Venice became the special possessor of a still more distant trade, that of the far East. The products of Arabia and Persia, India and the East Indian Islands, and even of China, all through the Middle Ages, as in antiquity, made their way by long and difficult routes to the western countries of Europe. Silk and cotton, both raw and manufactured into fine goods, indigo and other dyestuffs, aromatic woods and gums, narcotics and other drugs, pearls, rubies, diamonds, sapphires, turquoises, and other precious stones, gold and silver, and above all the edible spices, pepper, ginger, cinnamon, cloves, and allspice, could be obtained only in Asia. There were three principal routes by which these goods were brought into Europe: first, along the Red Sea and overland across Egypt; second, up the Persian Gulf to its head, and then either along the Euphrates to a certain point whence the caravan route turned westward to the Syrian coast, or along the Tigris to its upper waters, and then across to the Black Sea at Trebizond; third, by caravan routes across Asia, then across the Caspian Sea, and overland again, either to the Black Sea or through Russia to the Baltic. A large part of this trade was gathered up by the Italian cities, especially Venice, at its various outlets upon the Mediterranean or adjacent waters. She had for exportation therefore, in addition to her own manufactures, merchandise which had been gathered from all parts of the then known world. The Venetian laws regulated commerce with the greatest minuteness. All goods purchased by Venetian traders must as a rule be brought first to the city and unloaded and stored in the city warehouses. A certain amount of freedom of export by land or water was then allowed, but by far the greater proportion of the goods remained under the partial control of the government. When conditions were considered favorable, the Senate voted a certain number of government galleys for a given voyage. There were several objective points for these voyages, but one was regularly England and Flanders, and the group of vessels sent to those countries was known as the “Flanders Fleet.” Such an expedition was usually ordered about once a year, and consisted of two to five galleys. These were put under the charge of an admiral and provided with sailing masters, crews of rowers, and armed men to protect them, all at the expense of the merchants who should send goods in the vessels. Stringent regulations were also imposed upon them by the government, defining the length of their stay and appointing a series of stopping places, usually as follows: Capo d’Istria, Corfu, Otranto, Syracuse, Messina, Naples, Majorca, certain Spanish ports, Lisbon; then across the Bay of Biscay to the south coast of England, where usually the fleet divided, part going to Sluys, Middleburg, or Antwerp, in the Netherlands; the remainder going to Southampton, Sandwich, London, or elsewhere in England. At one or other of the southern ports of England the fleet would reassemble on its return, the whole outward and return voyage usually taking about a year.

The merchants who had come with the fleet thereupon proceeded to dispose of their goods in the southern towns and fairs of England and to buy wool or other goods which might be taken back to Venice or disposed of on the way. A somewhat similar trade was kept up with other Italian cities, especially with Genoa and Florence, though these lines of trade were more extensive in the fifteenth century than in the fourteenth.

23. The Flanders Trade and the Staple. A trade of greater bulk and greater importance, though it did not include articles from such a distance as that of Italy, was the trade with the Flemish cities. This was more closely connected with English wool production than was that with any other country. Ghent, Bruges, Ypres, Courtrai, Arras, and a number of other cities in Flanders and the adjacent provinces of the Netherlands and France had become populous and rich, principally from their weaving industry. For their manufacture of fine fabrics they needed the English wool, and in turn their fine woven goods were in constant demand for the use of the wealthier classes in England. English skill was not yet sufficient to produce anything more than the crudest and roughest of textile fabrics. The fine cloths, linens, cambrics, cloth of gold and silver, tapestries and hangings, were the product of the looms of the Flemish cities. Other fine manufactured goods, such as armor and weapons, glass and furniture, and articles which had been brought in the way of trade to the Netherlands, were all exported thence and sold in England.

The Flemish dealers who habitually engaged in the English trade were organized among themselves in a company or league known as the “Flemish Hanse of London.” A considerable number of towns held such membership in the organization that their citizens could take part in the trade and share in the benefits and privileges of the society, and no citizen of these towns could trade in England without paying the dues and submitting himself to the rules of the Hanse. The export trade from England to the Netherlands was controlled from the English side by the system known as the “Staple.” From early times it had been customary to gather English standard products in certain towns in England or abroad for sale. These towns were known as “staples” or “staple towns,” and wool, woolfells, leather, tin, and lead, the goods most extensively exported, were known as “staple goods.” Subsequently the government took control of the matter, and appointed a certain town in the Netherlands to which staple goods must be sent in the first place when they were exported from England. Later certain towns in England were appointed as staple towns, where all goods of the kinds mentioned above should be taken to be registered, weighed, and taxed before exportation. Just at the close of the period under discussion, in 1354, a careful organization was given to the system of staple towns in England, by which in each of the ten or twelve towns to which staple goods must be brought for exportation, a Mayor of the Staple and two Constables were elected by the “merchants of the staple,” native and foreign. These officials had a number of duties, some of them more particularly in the interest of the king and treasury, others in the interest of the foreign merchants, still others merely for the preservation of good order and the enforcement of justice. The law merchant was made the basis of judgment, and every effort made to grant protection to foreigners and at the same time secure the financial interests of the government. But the policy of the government was by no means consistent. Both before and after this date, the whole system of staples was repeatedly abolished for a time and the whole trade in these articles thrown open. Again, the location of the staple towns was shifted from England to the continent and again back to England. Eventually, in 1363, the staple came to be established at Calais, and all “staplers,” or exporters of staple goods from England, were forced to give bonds that their cargoes would be taken direct to Calais to be sold.

24. The Hanse Trade. The trade with Germany was at this time almost all with the group of citizens which made up the German Hanse or League. This was a union of a large number of towns of northern Germany, such as Lubeck, Hamburg, Bremen, Dantzig, Brunswick, and perhaps sixty or eighty others. By a series of treaties and agreements among themselves, these towns had formed a close confederation which acted as a single whole in obtaining favorable trading concessions and privileges in various countries. There had been a considerable trade between the merchants of these towns and England from an early time. They brought the products of the Baltic lands, such as lumber, tar, salt, iron, silver, salted and smoked fish, furs, amber, certain coarse manufactures, and goods obtained by Hanseatic merchants through their more distant trade connections, such as fine woven goods, armor and other metal goods, and even spices and other Eastern goods, obtained from the great Russian fairs. The Hanse cities had entered into treaties with the English government, and possessed valuable concessions and privileges, and imported and exported quite extensively. The term “sterling,” as applied to standard English money, is derived from the word “Easterling,” which was used as synonymous with “German,” “Hansard,” “Dutch,” and several other names descriptive of these traders.

The trade with the cities of northwestern France was similar to that with the neighboring towns of Flanders. That with northwestern France consisted especially of salt, sail-cloth, and wine. The trade with Poitou, Gascony, and Guienne was more extensive, as was natural from their long political connection with England. The chief part of the export from southern France was wine, though a variety of other articles, including fruits and some manufactured articles, were sent to England. A trade of quite a varied character also existed between England and the various countries of the Spanish Peninsula, including Portugal. Foreign trade with all of these countries was destined to increase largely during the later fourteenth and the fifteenth century, but its foundations were well laid within the first half of the fourteenth. Vessels from all these countries appeared from time to time in the harbors of England, and their merchants traded under government patronage and support in many English towns and fairs.

25. Foreigners settled in England. The fact that almost all of the foreign trade of England was in the hands of aliens necessarily involved their presence in the country temporarily or permanently in considerable numbers. The closely related fact that the English were distinctly behind the people of the Continent in economic knowledge, skill, and wealth also led foreigners to seek England as a field for profitable exercise of their abilities in finance, in trade, and manufactures. The most conspicuous of these foreigners at the close of the thirteenth century and during the early part of the fourteenth were the Italian bankers. Florence was not only a great trading and manufacturing city, but a money centre, a capitalist city. The Bardi, Peruzzi, Alberti, Frescobaldi, and other banking companies received deposits from citizens of Florence and other Italian cities, and loaned the money, as well as their own capital, to governments, great nobles, and ecclesiastical corporations in other countries. When the Jews were expelled from England in 1290, there being no considerable amount of money among native Englishmen, the Italian bankers were the only source from which the government could secure ready money. When a tax had been authorized by Parliament, but the product of it could be obtained only after a year or more spent in its collection, the Florentines were at hand to offer the money at once, receiving security for repayment when the receipts from the tax should come in. Government monopolies like the Cornwall tin mines were leased to them for a lump sum; arrangements were made by which the bankers furnished a certain amount of money each day during a campaign or a royal progress. The immediate needs of an impecunious king were regularly satisfied with money borrowed to be repaid some months afterward. The equipment for all of the early expeditions of the Hundred Years’ War was obtained with money borrowed from the Florentines. Payments abroad were also made by means of bills of exchange negotiated by the same money-lenders. Direct payment of interest was forbidden by law, but they seem to have been rewarded by valuable government concessions, by the profits on exchange, and no doubt by the indirect payment of interest, notwithstanding its illegality.

The Italian bankers evidently loaned to others besides the king, for in 1327 the Knights Hospitallers in England repaid to the Society of the Bardi L848 5_d._, and to the Peruzzi L551 12_s._ 11_d._ They continued to loan freely to the king, till in 1348 he was indebted to one company alone to the extent of more than L50,000, a sum equal in modern value to about $3,000,000. The king now failed to repay what he had promised, and the banking companies fell into great straits. Defalcations having occurred in other countries also, some of them failed, and after the middle of the century they never held so conspicuous a place, though some Italians continued to act as bankers and financiers through the remainder of the fourteenth and fifteenth century. Many Italian merchants who were not bankers, especially Venetians and Genoese, were settled in England, but their occupation did not make them so conspicuous as the financiers of the same nation.

The German or Hanse merchants had a settlement of their own in London, known as the “Steelyard,” “Gildhall of the Dutch,” or the “Easterling’s House.” They had similar establishments on a smaller scale in Boston and Lynn, and perhaps in other towns. Their permission to own property and to live in their own house instead of in the houses of native merchants, as was the usual custom, was derived, like most privileges of foreigners, from the gift of the king. Little by little they had purchased property surrounding their original grants until they had a great group of buildings, including a meeting and dining hall, tower, kitchen, storage house, offices and other warehouses, and a considerable number of dwelling-houses, all enclosed by a wall and fences. It was located immediately on the Thames just above London Bridge so that their vessels unloaded at their own wharf. The merchants or their agents lived under strict rules, the gates being invariably closed at nine o’clock, and all discords among their own nation were punished by their own officers. Their trade was profitable to the king through payment of customs, and after the failure of the Italian bankers the merchants of the Steelyard made considerable loans to the English government either directly or acting for citizens at home. In 1343, when the king had been granted a tax of 40_s._ a sack on all wool exported, he immediately borrowed the value of it from Tiedemann van Limberg and Johann van Wolde, Easterlings. Similarly in 1346 the Easterlings loaned the king money for three years, holding his second crown as security. Like the Florentines, at one time they took the Cornwall tin mines at farm. They had many privileges not accorded generally to foreigners, but were exceedingly unpopular alike with the population and the authorities of the city of London. There were some other Germans domiciled in England, but nowhere else were they so conspicuous or influential as at the Steelyard.

The trade with Flanders brought Flemish merchants into England temporarily, but they do not seem to have formed any settlement or located permanently in any one place. Flemish artisans, on the other hand, had migrated to England from early times and were scattered here and there in several towns and villages. In the early part of the fourteenth century Edward III made it a matter of deliberate policy to encourage the immigration of Flemish weavers and other handicraftsmen, with the expectation that they would teach their art to the more backward native English. In 1332 he issued a charter of protection and privilege to a Fleming named John Kempe, a weaver of woollen cloth, offering the same privilege and protection to all other weavers, dyers, and fullers who should care to come to England to live. In 1337 a similar charter was given to a body of weavers coming from Zealand to England. It is believed that a considerable number of immigrants from the Netherlands came in at this period, settled largely in the smaller towns and rural villages, and taking English apprentices brought about a great improvement in the character of English manufactures. Flemings are also met with in local records in various occupations, even in agriculture.

There were other foreigners resident in England, especially Gascons from the south of France, and Spaniards; but the main elements of alien population in the thirteenth and fourteenth centuries were those which have just been described, Italians, Germans from the Hanse towns, and Flemings. These were mainly occupied as bankers, merchants, and handicraftsmen.