Chapter V (3)

The discovery of a passage to India by the Cape of Good Hope, gave immediately a great impulse to commerce; whereas, it was a long time after the discovery of America before commerce was benefited by that event. This arose from the different state and circumstances of the two countries. The Portuguese found in India, and the other parts of the East, a race of people acquainted with commerce, and accustomed to it; fully aware of those natural productions of their country which were in demand, and who had long been in the habit of increasing the exportable commodities by various kinds of manufactures. Most of these native productions and manufactures had been in high estimation and value in Europe for centuries prior to the discovery of the Cape. The monarchs of the East, as well as their subjects, were desirous of extending their trade. There was, therefore, no difficulty, as soon as the Portuguese arrived at any part of the East; they found spices, precious stones, pearls, &c., or silk and cotton stuffs, porcelaine, &c., and merchants willing to sell them. Their only business was to settle a few skilful agents, to select and purchase proper cargoes for their ships. Even before they reached the remote countries of the East, which they afterwards did, they found depôts of the goods of those parts, in intermediate and convenient situations, between them and the middle and western parts of Asia and Europe.

It was very different in America: the natives here, ignorant and savage, had no commerce. "Even the natural productions of the soil, when not cherished and multiplied by the fostering and active hand of man, were of little account." Above half a century elapsed before the Spaniards reaped any benefit from their conquests, except some small quantities of gold, chiefly obtained from plundering the persons, the houses, and temples of the Mexicans and Peruvians. In 1545, the mines of Potosi were discovered; these, and the principal Mexican mine, discovered soon afterwards, first brought a permanent and valuable revenue to Spain. But it was long after this before the Spaniards, or the other nations of Europe, could be convinced that America contained other treasures besides those of gold and silver, or induced to apply that time, labour, and capital, which were requisite to unfold all the additions to the comforts, the luxuries, and the health of man, which the New World was capable of bestowing. When, however, European skill and labour were expended on the soil of America, the real and best wealth of this quarter of the world was displayed in all its importance and extent. In addition to the native productions of tobacco, indigo, cochineal, cotton, ginger, cocoa, pimento, drugs, woods for dying, the Europeans cultivated the sugar cane, and several other productions of the Old World. The only articles of commerce supplied by the natives, were furs and skins; every thing else imported from the New World consists at present, and has always consisted of the produce, of the industry of Europeans settled there.

But though it was long before Europe derived much direct benefit from the discovery of America, yet in one important respect this discovery gave a great stimulus to East India commerce. Gold and silver, especially the latter, have always been in great demand in the East, and consequently the most advantageous articles to export from Europe in exchange for Indian commodities. It was therefore absolutely necessary for the continuance of a commerce so much extended as this to India was, in consequence of the Portuguese discoveries, that increased means of purchasing Indian commodities should be given; and these were supplied by the gold and silver mines of America.

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."

"They meet twice a day, in the mornings and evenings, one hour each time, at the English bourse, where, by their interpreters and brokers, they buy and sell all kinds of merchandize. Thence they go to the new bourse, or principal exchange, where, for another hour each time, they transact all matters relating to bills of exchange, with the above six nations, and with France; and also to deposit at interest, which is usually twelve per cent. per annum."

"They send to Rome a great variety of woollen drapery, linen, tapestry, &c.: the returns are in bills of exchange. To Ancona, English and Flemish cloths, stuffs, linen, tapestry, cochineal; and bring in return such spices and drugs as the merchants of Ancona procure in the Levant, and likewise silks, cotton, Turkey carpets, and leather. To Bologne they export serges, and other stuffs, tapestry, linen, merceries, &c. and bring in return for it, wrought silks, cloth of gold and silver, crapes, caps, &c. To Venice they send jewels and pearls, English cloth and wool, Flemish drapery, cochineal, &c. and a little sugar and pepper: thus, with respect to these two latter articles, sending to Venice what they formerly obtained from her. For, prior to the Portuguese discovery of the Cape, the merchants of Antwerp brought from Venice all sorts of India spices and drugs: and even so late as the year 1518, there arrived in the Scheldt, five Venetian ships, laden with spices and drugs, for the fair at Antwerp. In 1560, however, the imports from Venice consisted of the finest and choicest silks, carpets, cotton, &c. and colours for dyers and painters."

"To Naples they export great quantities of Flemish and English cloths and stuffs, tapestry, linens, small wares of metal, and other materials: and bring back raw, thrown and wrought silk, fine furs and skins, saffron and manna. The exports to Sicily are similar to those of the other parts of Italy: the imports from it are galls in great quantity, cinnamon, oranges, cotton, silk, and sometimes wine. To Milan, Antwerp exports pepper, sugar, jewels, musk, and other perfumes, English and Flemish woollen manufactures, English and Spanish woollinens, and cochineal. The imports are gold and silver, thread, silks, gold stuffs, dimities, rich and curious draperies, rice, muskets and other arms, high priced toys and small goods; and Parmesian cheese. The exports to Florence are nearly the same as to the other parts of Italy, but in addition, fans are specified. Besides the usual imports of silks and gold stuffs, there are also fine furs. Household furniture is exported to Genoa, besides the usual articles: velvets, which were then the best in the world; satins, the best coral, mithridate, and treacle, are the principal or the peculiar imports. Genoa, is the port through which Antwerp trades with Mantua, Verona, Modena, Lucca, &c."

"Besides all these articles, Antwerp imports from Italy by sea, alum, oil, gums, leaf senna, sulphur, &c. and exported to it by sea, tin, lead, madder, Brazil wood, wax, leather, flax, tallow, salt fish, timber, and sometimes corn. The imports from Italy, including only silks, gold and silver, stuffs, and thread camblets and other stuffs, amount to three millions of crowns, or 600,000_l_. yearly.

"Antwerp exports to Germany precious stones and pearls, spices, drugs, saffron, sugars, English cloths, as a rare and curious article, bearing a high price: Flemish cloth, more common and not so valuable as English, serges, tapestry, a very large quantity of linen and mercery, or small wares of all sorts: from Germany, Antwerp receives by land carriage, silver, bullion, quicksilver, immense quantities of copper, Hessian wool, very fine, glass, fustians of a high price, to the value of above 600,000 crowns annually; woad, madder, and other dye stuffs; saltpetre, great quantities of mercery, and household goods, very fine, and of excellent quality: metals of all sorts, to a great amount; arms; Rhenish wine, of which Guicciardini speaks in the highest terms, as good for the health, and not affecting either the head or the stomach, though drunk in very large quantities:--of this wine 40,000 tuns were brought to Antwerp annually, which, at thirty-six crowns per tun, amounted to 1,444,000 crowns."

"To Denmark, Sweden, Norway, Eastland, Livonia, and Poland, Antwerp exports vast quantities of spices, drugs, saffron, sugar, salt, English and Flemish cloths, fustians, linens, wrought silks, gold stuffs, tapestries, precious stones, Spanish and other wines, alum, Brazil wood, merceries, and household goods. From these countries, particularly from Eastland and Poland, that is, the countries on the south shore of the Baltic, Antwerp receives wheat and rye to a large amount; iron, copper, brass, saltpetre, dye-woods, vitriol, flax, honey, wax, pitch, tar, sulphur, pot-ashes, skins and furs, leather, timber for ship building, and other purposes; beer, in high repute; salt meat; salted, dryed, and smoked fish; amber in great quantities, &c."

"To France, Antwerp sends precious stones, quicksilver, silver bullion, copper and brass, wrought and unwrought, lead, tin, vermillion; azure, blue, and crimson colours, sulphur; saltpetre, vitriol, camblets, and Turkey grograms, English and Flemish cloths, great quantities of fine linen, tapestry, leather, peltry, wax, madder, cotton, dried fish, salt fish, &c. Antwerp receives her returns from France, partly by land and partly by sea. By sea, salt to the annual value of 180,000 crowns; fine woad of Thoulouse, to the value annually of 300,000 crowns; immense quantities of canvass and strong linen, from Bretagne and Normandy; about 40,000 tuns of excellent red and white wines, at about twenty-five crowns per tun; saffron; syrup, or sugar, or perhaps capillaire; turpentine, pitch, paper of all kinds in great quantities, prunes, Brazil wood, &c. &c. By land, Antwerp receives many curious and valuable gilt and gold articles, and trinkets; very fine cloth, the manufacture of Rouen, Peris, Tours, Champagne, &c.; the threads of Lyons, in high repute; excellent verdigrise from Montpelier, merceries, &c."

"To England, Antwerp exports jewels and precious stones, silver bullion, quicksilver, wrought silks, cloth of gold and silver, gold and silver thread, camblets, grograms, spices, drugs, sugar, cotton, cinnamon, galls, linens, serges, tapestry, madder, hops in great quantities, glass, salt fish, small wares made of metal and wood, arms, ammunition, and household furniture. From England, Antwerp imports immense quantities of fine and coarse woollen goods; the finest wool; excellent saffron, but in small quantities; a great quantity of lead and tin; sheep and rabbit skins, and other kinds of fine peltry and leather; beer, cheese, and other sorts of provisions, in great quantities; also Malmsey wines, which the English import from Candia."

Guicciardini observes, that Antwerp exported but little to Scotland, as that country was principally supplied from England and France: some spiceries, sugars, madder, wrought silks, camblets, serges, linen, and merceries, are exported. In return, Antwerp received from Scotland vast quantities of peltry of various kinds, leather, wool, cloth of coarse quality, fine large pearls, but not of quite so good a water as the oriental pearls.

The exports to Ireland were nearly the same as to Scotland: the returns were skins and leather, some low-priced cloths, and other coarse and common articles of little value.

The exports to Spain consisted chiefly of copper, brass, and latten, wrought and unwrought; tin, lead; much woollen cloth, both Flemish and English; serges, tapestry, linens, flax-thread, wax, pitch, madder, tallow, sulphur, wheat, rye, salted meat and fish, butter, cheese, merceries, silver bullion and wrought, arms, ammunition, furniture, tools; and every thing also, he adds, produced by human industry and labour, to which the lower classes in Spain have an utter aversion. From Spain, Antwerp received jewels, pearls, gold and silver in great quantities; cochineal, sarsaparilla, guiacum, saffron; silk, raw and thrown; silk stuffs, velvets, taffeties, salt, alum, orchil, fine wool, iron, cordovan leather, wines, oils, vinegar, honey, molasses, Arabian gums, soap; fruits, both moist and dried, in vast quantities, and sugar from the Canaries.

The exports to Portugal were silver bullion, quicksilver, vermilion, copper, brass, and latten; lead, tin, arms, artillery and ammunition; gold and silver thread, and most of the other articles sent to Spain. From Portugal, Antwerp received pearls and precious stones, gold, spices, to the value of above a million of crowns annually; drugs, amber, musk, civet, great quantities of ivory, aloes, rhubarb, cotton, China root, (then and even lately much used in medicine,) and many other rare and valuable Indian commodities, with which the greatest part of Europe is supplied from Antwerp; also, sugars from St. Thomas, under the line, and the other islands belonging to the Portuguese on the African coast; Brazil wood, Guinea grains, and other drugs from the west coast of Africa; Madeira sugar and wines. Of the produce of Portugal itself, Antwerp imported salt, wines, oils, woad, seeds, orchil, fruits, &c. &c.

To Barbary, Antwerp exported woollen goods, linen, merceries, metals, &c.; and received from it sugar, azure or anil, gums, coloquintida, leather, peltry, and fine feathers.

From this sketch of the commerce of Antwerp, when it was at its height, we see, that it embraced the whole commerce of the world: and that in it centered all the commodities supplied by Asia, America, Africa, and the south of Europe on the one hand, and England, the Baltic countries, Germany, and France on the other. The account given by Guicciardini is confirmed by Wheeler, who wrote in 1601. He observes, that a little before the troubles in the Low Countries, the people of Antwerp were the greatest traders to Italy in English and other foreign merchandize; and also to Alexandria, Cyprus, and Tripoli in Syria; "beating the Italians, English, and Germans, almost entirely out of that trade, as they also soon did the Germans in the fairs of their own country." He adds, that the Antwerp merchants, being men of immense wealth, and consequently able to supply Spain for the Indies at long credit, set their own prices on their merchandize. Antwerp also supplied Germany, Spain, Portugal, and Eastland with the wares, which France was wont to supply them. He adds, "It is not past eighty years ago, (that would be about 1520,) since there were not, in London, above twelve or sixteen Low Country merchants, who imported only stone pots, brushes, toys for children, and other pedlar's wares; but in less than forty years after, there were, in London, at least one hundred Netherland merchants, who brought thither all the commodities which the merchants of Italy, Germany, Spain, France, and Eastland, (of all which nations there were, before that time, divers famous and notable rich merchants and companies,) used to bring into England out of their own country directly, to the great damage of the said strangers, and of the natural born English merchants."

Guicciardini informs us, that in his time the port of Armuyden, in the island of Walcheren, was the place of rendezvous for the shipping of Antwerp: in it have often been seen 500 large ships lying at one time, bound to, or returning from distant parts of the world. He adds, that it was no uncommon thing for 500 ships to come and go in one day; that 10,000 carts were constantly employed in carrying merchandize to and from the neighbouring countries, besides hundreds of waggons daily coming and going with passengers; and 500 coaches used by people of distinction. In his enumeration of the principal trades, it is curious that there were ninety-two fishmongers, and only seventy-eight butchers; there were 124 goldsmiths, who, it must be recollected, at that time acted as bankers, or rather exchangers of money. The number of houses was 13,500. With respect to the shipping, which, according to this author, were so numerous at the port of Antwerp, comparatively few of them belonged to this city, as most of its commerce was carried on by ships of foreign nations.

This circumstance, of its having but few ships of its own, may be regarded as one cause why, when it was taken and plundered by the Spaniards in the year 1585, it could not recover its former commerce, as the shipping removed with the nations they belonged to. The forts which the Dutch built in the Scheldt were, however, another and a very powerful cause. The trade of Holland rose on the fall of Antwerp, and settled principally at Amsterdam; this city had indeed become considerable after the decline of the Hanseatic confederacy; but was not renowned for its commerce till the destruction of Antwerp. The commerce of Holland was extended and supported by its fisheries, and the manufactures of Flanders and the adjoining provinces, which in their turn received support from its commerce. Guicciardini informs us, that there were in the Netherlands, in time of peace, 700 busses and boats employed in the herring fishery: each made three voyages in the season, and on an average during that period, caught seventy lasts of herring, each last containing twelve barrels of 9OO or 1000 herrings each barrel; the price of a last was usually about 6£. sterling: the total amount of one year's fishery, was about 294,000£. sterling. About sixty years after this time, according to Sir Walter Raleigh, the cod and ling fishery of Friesland, Holland, Zealand, and Flanders, (the provinces included by Guicciardini in the maritime Netherlands) brought in 100,000£. annually: and the salmon-fishing of Holland and Zealand nearly half that sum.

The woollen manufactures of the Netherlands had, about the time that Guicciardini wrote, been rivalled by those of England: yet he says, that, though their wool was very coarse, above 12,000 pieces of cloth were made at each of the following places; Amsterdam, Bois-le-duc, Delft, Haarlem, and Leyden. Woollen manufactures were carried on also at other places, besides taffeties and tapestries. Lisle is particularised by him as next in commercial importance to Antwerp and Amsterdam. Bois-le-duc seems to have been the seat of a great variety of manufactures; for besides woollen cloth, 20,000 pieces of linen, worth, on an average, ten crowns each, were annually made; and likewise great quantities of knives, fine pins, mercery, &c. By the taking of Antwerp, the Spanish or Catholic Netherlands lost their trade and manufactures, great part of which, as we have already observed, settled in the United Provinces, while the remainder passed into England and other foreign countries.

The destruction of the Hanseatic league, which benefited Amsterdam, seems also to have been of service to the other northern provinces of the Netherlands: for in 1510, we are informed by Meursius, in his History of Denmark, there was at one time a fleet of 250 Dutch merchant ships in the Baltic: if this be correct, the Dutch trade to the countries on this sea must have been very great. The circumstance of the Dutch, even before their revolt from Spain, carrying on a great trade, especially to the Baltic, is confirmed by Guicciardini; according to him, about the year 1559, they brought annually from Denmark, Eastland, Livonia, and Poland, 60,000 lasts of grain, chiefly rye, worth 560,000_l_. Flemish. They had above 800 ships from 200 to 700 tons burden: fleets of 300 ships arrived twice a year from Dantzic and Livonia at Amsterdam, where there were often seeing lying at the same time 500 vessels, most of them belonging to it. He mentions Veer in Zealand (Campveer) as at that time being the staple port for all the Scotch shipping, and owing its principal commerce to that circumstance.

The destruction of Antwerp brought to Amsterdam, along with other branches of commerce, the valuable trade which the former city had with Portugal for the produce and manufactures of India; these the Dutch merchants resold to all the nations of the north. As soon, however, as Philip II. had obtained possession of the throne of Portugal in 1580, he put a stop to all further commerce between Lisbon and the Dutch. The latter, having tasted the sweets of this commerce, resolved to attempt a direct trade to India. We have already mentioned the voyages of Barentz in search of a north-east passage; these proving unsuccessful, the Dutch began to despair of reaching India, except by the Cape of Good Hope; and this voyage they were afraid to undertake, having, at this time, neither experienced seamen nor persons acquainted with Indian commerce. A circumstance, however, occurred while Barentz was in search of a north-west passage, which determined them to sail to India by the Cape. One Houlman, a Dutchman, who had been in the Portuguese Indian service, but was then confined in Lisbon for debt, proposed to the merchants of Rotterdam, if they could liberate him, to put them in possession of all he knew respecting Indian commerce; his offer was accepted, and four ships were sent to India in 1594 under his command. The adventurers met with much opposition from the Portuguese in India, so that their voyage was not very successful or lucrative: they returned, however, in twenty-nine months with a small quantity of pepper from Java, where they had formed a friendly communication with the natives. The arrival of the Dutch in India,--the subjugation of Portugal by Spain, which circumstance dispirited and weakened the Portuguese, and the greater attention which the Spaniards were disposed to pay to their American than their Indian commerce, seem to have been the causes which produced the ruin of the Portuguese in India, and the establishment of the Dutch.

The Dutch pushed their new commerce with great vigour and zeal. In the year 1600 eight ships entered their ports laden with cinnamon, pepper, cloves, nutmegs, and mace: the pepper they obtained at Java, the other spices at the Moluccas, where they were permitted by the natives, who had driven out the Portuguese, to establish factories.

In consequence of a wild and ruinous spirit of speculation having seized the Dutch merchants, the government, in 1602, formed all the separate companies who traded to India, into one; and granted to this extensive sovereignty over all the establishments that might be formed in that part of the world. Their charter was for twenty-one years: their capital was 6,600,000 guilders (or about 600,000_l_.) Amsterdam subscribed one half of the capital, and selected twenty directors out of sixty, to whom the whole management of the trade was entrusted.

From this period, the Dutch Indian commerce flourished extremely: and the company, not content with having drawn away a large portion of the Portuguese trade, resolved to expel them entirely from this part of the world. Ships fitted, either to trade or to fight, and having on board a great number of soldiers, were sent out within a very few years after the establishment of the company. Amboyna and the Moluccas were first entirely wrested from the Portuguese: factories and settlements were in process of time established from Balsora, at the mouth of the Tigris in the Persian Gulf; along the coasts and islands of India, as far as Japan. Alliances were formed with many of the Indian princes: and in many parts, particularly on the coasts of Ceylon, and at Pulicat, Masulipatam, Negapatam, and other places along the coasts of Coromandel and Malabar, they were themselves, in fact, the sovereigns. The centre of all their Indian commerce was fixed at Batavia in Java, the greatest part of this island belonging to them. From this general sketch of the extent of country, which was embraced, either by their power or their commerce, it is evident that the Indian trade was almost monopolized by them; and as they wisely employed part of the wealth which it produced, to establish and defend their possessions, they soon became most formidable in this part of the world, sending out a fleet of 40 or 50 large ships, and an army of 30,000 men.

They were not, however, content, but aimed at wresting from the Portuguese almost the only trade which remained to them; viz. their trade with China. In this attempt they did not succeed; but in the year 1624, they established themselves at Formosa. Soon after this, the conquest of China by the Tartars, induced or compelled an immense number of Chinese to leave their native country and settle in Formosa. Here they carried on a very extensive and lucrative trade; and Formosa became the principal mart of this part of Asia. Vessels from China, Japan, Siam, Java, and the Philippines, filled its harbours. Of this commerce the Dutch availed themselves, and derived great wealth from it, for about forty years, when they were driven out of the island. In 1601, the Dutch received permission to trade to Japan, but this privilege was granted under several very strict conditions, which were, however, relaxed in 1637, when they discovered a conspiracy of the Spaniards, the object of which was to dethrone the emperor, and seize the government. The jealousy of the Japanese, however, soon revived; so that by the end of the seventeenth century, the lucrative commerce which the Dutch carried on with this island for fine tea, porcelaine, lacquered or Japan ware, silk, cotton, drugs, coral, ivory, diamonds, pearls, and other precious stones, gold, silver, fine copper, iron, lead, and tin; and in exchange for linen, and woollen cloths, looking-glasses, and other glass ware; and the merchandize of India, Persia, and Arabia, was almost annihilated.

Before proceeding to narrate the events which arose from the arrival of the English in the East Indies, and the effects produced on the Dutch power and commerce there, by their arrival, it will be proper to take a short notice of the commerce of the Dutch to the other parts of the world. As their territories in Europe were small and extremely populous, they were in a great measure dependent on foreign nations for the means of subsistence: in exchange for these, they had few products of their manufactures to give. The sources of their wealth, therefore, as well as of the means of their existence, were derived from the exchange of their India commodities, and from their acting as the great carriers of Europe. From these two circumstances, their cities, and especially Amsterdam, became the great mart of Europe: its merchants had commercial transactions to an immense amount with all parts of the world. In consequence of the vastness and extent of their commerce, they found great payments in specie very inconvenient. Hence arose the bank of Amsterdam. It is foreign to our purpose, either to describe the nature of this bank, or to give a history of it; but its establishment, at once a proof, and the result of the immense commerce of Amsterdam, and the cause of that commerce becoming still more flourishing, and moreover, as the principal of those establishments, which have changed the character of the commerce of Europe, could not be passed over without notice. It was formed in the year 1609.

In this year, the Dutch had extended their trade to the west coast of Africa so much, that they had about 100 ships employed in the gold coast trade. About the same time, they formed a colony in North America, in that province now called New York. In 1611, having formed a truce with Spain, they resolved to venture into the Mediterranean, and endeavour to partake in the lucrative trade with the Levant: for this purpose, they sent an ambassador to Constantinople, where he concluded a favourable treaty of commerce. But by far the most extensive and lucrative commerce which the Dutch possessed in Europe, was in the Baltic: there they had gradually supplanted the Hanseatic League, and by the middle of the seventeenth century, nearly all the commodities of the countries lying on, or communicating with this sea, were supplied to the rest of Europe by the Dutch. In the year 1612, they first engaged in the whale fishery at Greenland. In 1648, taking advantage of the civil troubles in England, and having by this time acquired a powerful influence at the Russian court, they interfered with the trade of the English Russian Company at Archangel; and this new branch of trade they pushed with their national industry and perseverance, so that in 1689 they had 200 factors in this place.

In the year 1621 the Dutch formed a West India Company: their first objects were to reduce Brazil and Peru: in the latter they were utterly unsuccessful. By the year 1636 they had conquered the greater part of the coast of Brazil: they lost no time in reaping the fruits of this conquest: for in the space of thirteen years, they had sent thither 800 ships of war and commerce, which were valued at 4-1/2 millions sterling; and had in that time taken from Spain, then sovereign of Portugal, 545 ships. In the year 1640 the Portuguese shook off the Spanish yoke, and from this event may be dated the decline of the Dutch power in Brazil: in 1654 they were entirely expelled from this country.

In the year 1651, they colonized the Cape of Good Hope; and in the same year, began the obstinate and bloody maritime, war between Holland and England. This arose principally from the navigation act, which was passed in England in 1650: its object and effect was to curtail the commerce between England and Holland, which consisted principally of foreign merchandize imported into, and English merchandize exported from, England in Dutch vessels. In this war, the Dutch lost 700 merchant ships in the years 1652 and 1653. In 1654, peace was made. The object of the navigation act, at least so far as regarded the Dutch acting as the carriers of the English trade, seems to have been completely answered, for in 1674, after a great frost, when the ports were open, there sailed out of the harbour of Rotterdam above 300 sail of English, Scotch, and Irish ships at one time. The example of the English being followed by the nations of the north, the Dutch carrying trade was very much reduced. Between the years 1651 and 1672, when Holland was overrun by the French, their commerce seems to have reached the greatest extent, which it attained in the seventeenth century; and perhaps, at no subsequent period, did it flourish so much. De Witt estimates the increase of their commerce and navigation from the peace with Spain in 1648 to the year 1669, to be fully one-half. He adds, that during the war with Holland, Spain lost the greater part of her naval power: that since the peace with Spain, the Dutch had obtained most of the trade to that country, which had been previously carried on by the Easterlings and the English;--that all the coasts of Spain were chiefly navigated by Dutch shipping: that Spain had even been forced to hire Dutch ships to sail to her American possessions; and that so great was the exportation of goods from Holland to Spain, that all the merchandize brought from the Spanish West Indies, was not sufficient to make returns for them.

The same author informs us, that in the province of Holland alone, in 1669, the herring and cod fisheries employed above one thousand busses, from twenty-four to thirty lasts each; and above 170 smaller ones: that the whale fishery was increased from one to ten; that the cod and herring, when caught, were transported by the Hollanders in their own vessels throughout the world; thus obtaining, by means of the sea alone, through their own industry, above 300,000 lasts of salt fish.

As the Dutch commerce was decidedly and undoubtedly more extensive than that of all the rest of Europe, about the middle of the seventeenth century, it may be proper, before we conclude our notice of it at this time, to consider briefly the causes which cherished it into such full growth and vigour. These causes are explained in a very judicious and satisfactory manner by Sir William Temple, in his observations on the Netherlands. He remarks, that though the territory of the Dutch was very small, and though they laboured under many natural disadvantages, yet their commerce was immense; and it was generally esteemed that they had more shipping belonging to them than there did to all the rest of Europe.

They had no native commodities towards the building or equipping their ships; their flax, hemp, pitch, wood, and iron, coming all from abroad, as wool does for clothing their men, and corn for feeding them. The only productions or manufactures of their own, which they exported, were butter, cheese, and earthern wares. They have no good harbours in all their coast; even Amsterdam is difficult of approach, from the dangerous entrance of the Texel, and the shallowness of the Zuider Zee.

What then were the causes which, in spite of these disadvantages, rendered Holland so commercial? In the first place, great multitudes in small compass, who were forced to industry and labour, or else to want. In the second place, the emigration of men of industry, skill, and capital, driven into Holland from Germany, France, and England, by persecution and civil wars. In the third place, the security to property established by the government of the United States; and akin to this, general liberty of conscience in religious matters. The great fairs in the Netherlands may be regarded as another cause. These Sir W. Temple regards as the principal causes of the foundation of their trade. He next enquires into the chief advancers and encouragers of trade in that country.

These he considers to have been low interest, which caused money to be easily obtained, not only for the purposes of commerce, but also to make canals, bridges, &c. and to drain marshes. The use of their banks, which secures money, and makes all payments easy and trade quick,--the sale by registry, which makes all purchases safe,--the severity of justice, especially with regard to forging bills,--the convoys of merchant ships, which gives trade security, the nation credit abroad, and breeds up seamen,--the lowness of their custom duties and freedom of their ports, which rendered their cities magazines as well as markets,--order and exactness in managing their trade,--each town affecting some particular commerce or staple, and so improving it to the greatest height; as Flushing, the West India trade; Middleburgh, French wines; Terveer, the Scotch staple; Dort, the English staple and Rhenish wines; Rotterdam, the English and Scotch trade at large, and French wines; Leyden, the manufacture of all sorts of stuffs, silk, hair, gold, and silver; Haerlem, linen, mixed stuffs, and flowers; Delft, beer and earthen ware; Swaardam, ship building; Sluys, herring fishery; Friezeland, the Greenland trade; and Amsterdam, the East India, Spanish, and Mediterranean trade. Sir W. Temple mentions other two causes, the great application of the whole province to the fishing trade, and the mighty advance the Dutch made towards engrossing the whole commerce of the East Indies. "The stock of this trade," he observes, "besides what it turns to in France, Spain, Italy, the Straits, and Germany, makes them so great masters in the trade of the northern parts of Europe, as Muscovy, Poland, Pomerania, and all the Baltic, where the spices, that are an Indian drug and European luxury, command all the commodities of those countries which are so necessary to life, as their corn; and to navigation, as hemp, pitch, masts, planks, and iron."

The next question that Sir William Temple discusses is, what are the causes which made the trade of Holland enrich it? for, as he remarks, "it is no constant rule that trade makes riches. The only and certain scale of riches arising from trade in a nation is, the proportion of what is exported for the consumption of others, to what is imported for their own. The true ground of this proportion lies in the general industry and parsimony of a people, or in the contrary of both." But the Dutch being industrious, and consequently producing much,--and parsimonious, and consequently consuming little, have much left for exportation. Hence, never any country traded so much and consumed so little. "They buy infinitely, but it is to sell again. They are the great masters of the Indian spices, and of the Persian silks, but wear plain woollen, and feed upon their own fish and roots. Nay, they sell the finest of their own cloth to France, and buy coarse out of England for their own wear. They send abroad the best of their own butter into all parts, and buy the cheapest out of Ireland or the north of England for their own use. In short, they furnish infinite luxury which they never practise, and traffic in pleasures which they never taste." "The whole body of the civil magistrates, the merchants, the rich traders, citizens, seamen and boors in general, never change the fashion of their cloaths; so that men leave off their cloaths only because they are worn out, and not because they are out of fashion. Their great consumption is French wine and brandy; but what they spend in wine they save in corn, to make other drinks, which is brought from foreign parts. Thus it happens, that much going constantly out, either in commodity or in the labour of seafaring men, and little coming in to be consumed at home, the rest returns in coin, and fills the country to that degree, that more silver is seen in Holland, among the common hands and purses, than brass either in Spain or in France; though one be so rich in the best native commodities, and the other drain all the treasures of the West Indies." (Sir W. Temple's Observations on the Netherlands, Chapter VI.)

Having thus sketched the progress and nature of Dutch commerce, during that period when it was at its greatest height, and brought our account of it down to the commencement of the eighteenth century, we shall next proceed to consider the English commerce from the time of the discovery of the Cape and America, till the beginning of the same century.

From the sketch we have already given of English commerce prior to the end of the fifteenth century, it is evident that it was of very trifling extent and amount, being confined chiefly to a few articles of raw produce, and to some woollen goods. The improvement of the woollen manufacture, the establishment of corporations, and the settlement of foreign merchants, as well as the gradual advancement of the English in the civilization, skill, and industry of the age,--in the wants which the first occasions, and in the means to supply those wants afforded by the two latter,--these are the obvious and natural causes which tended to improve English commerce. But its progress was slow and gradual, and confined for a long time to countries near at hand; it afterwards ventured to a greater distance. Companies of merchant adventurers were formed, who could command a greater capital than any individual merchant. Of the nature and extent of their foreign commerce at the close of the fifteenth century we are informed by an act of parliament, passed in the 12 Hen. VII. (1497.)

From this act it appears, that England traded at this time with Spain, Portugal, Bretagne, Ireland, Normandy, France, Seville, Venice, Dantzic, Eastland, Friesland, and many other parts. The woollen cloth of England is particularly specified as one of the greatest articles of commerce. In a licence granted by Henry VII. to the Venetians, to buy and sell at London, and elsewhere in England, Ireland, and Calais, woollen cloth, lead, tin, and leather, are enumerated as the chief exports. From this document it also appears, that there resided in or traded to England, the following foreign merchants: Genoese, Florentines, Luccans, Spaniards, Portuguese, Flemings, Hollanders, Brabanters, Burgundians, German, Hanseatic, Lombards, and Easterlings.