Chapter II

INDUSTRIES, COMMERCE AND TRADING COMPANIES.

I.

The military and political organization of Sweden was in advance of the age, offering models to France, Denmark and other countries, but her industrial and commercial development was just beginning. The many wars and intimate foreign relations, however, brought the nation into close touch with the greatest commercial countries of the world. It profited by experience, and made great advances during the period of Swedish rule on the Delaware. The armies needed cannon, muskets, swords and other implements of war. It was cheaper to make them at home than to import them from abroad, as raw material was to be had in inexhaustible quantities, and besides money was lacking with which to buy. The country being new and undeveloped, offered better opportunities to capitalists than the old industrial centres, and in return for special privileges, titles, landgrants, in addition to the regular remuneration that comes to the shrewd business man, wealthy Dutchmen like De Geer, Spiring and others, were induced to invest capital in Swedish industries, and to establish manufactories of various kinds. Foreign laborers were engaged in large numbers, and Swedish mechanics were sent abroad to study the best methods used there.

As a result the products of Swedish iron works, especially cannon and firearms, became famous throughout Europe. The latter were manufactured in such quantities that in 1642, the very time when Sweden supported and equipped large armies on German battlefields, a thousand muskets, a thousand cuirasses and quantities of other implements of war “could be sold or given to Portugal.” Swedish cannon had become so famous in England at the middle of the century that Whitelocke was ordered to buy them on his embassy to Stockholm in 1654.

The textile and clothing industries likewise received an impetus from the wars. To buy military clothes and other accoutrements from Holland or England appeared uneconomical, since Sweden weekly exported shiploads of wool, skins, unprepared hides and suchlike materials. Gustavus Adolphus therefore arranged a conference with representatives from the various cities and provinces of the kingdom to propose ways and means for the establishment of textile and clothing factories, so that the needs of the armies could be supplied at home. Successful private factories were also operated during this period, and Countess Oxenstierna founded a clothing factory at Tyresö, which proved a paying venture. Shoe and glove factories are also mentioned at this time, but they appear to have been of small importance. Glass factories were also started. Paul Gangunkel built a factory in Bergkvarna, where window-panes and glass of every description were made. Benjamin Bonnell, later factor of the New Sweden Company, was interested in the business, and Melchior Young established glass works near Stockholm in 1643, having hired workmen abroad, probably in Holland. To aid the industry the importation of glass to Sweden was forbidden at certain times.

Copper mining reached its highest development in this period, and proved a great source of revenue for the crown, as Sweden had the richest copper mines in the world. Silver mining was also conducted with great energy, but the results were unsatisfactory.

Brickyards were common in Sweden during the first part of the seventeenth century and earlier. A considerable number of bricks were exported from Upsala, Stäk and Strängnäs. Members of the aristocracy established brickyards, where bricks were made for their large buildings, and in a few cases they also produced bricks for sale. The colonists on the Delaware were therefore not unaccustomed to this industry.

Paper was manufactured in Upsala at an early date, and the paper makers were commanded to instruct Swedish youths in the trade. Soap works for making soft soaps as well as complexion soaps and starch, sugar and potash factories were operated on a small scale. Saltmaking was repeatedly tried. Powder was manufactured in large quantities, which in its turn gave rise to the saltpetre industry.

Brewing was an important industry, beer being the favorite beverage, and every city brewed its ale, which was named according to its strength as _spisöl_, _fogdeöl_, _svenneöl_, _sotöl_, etc.

Shipbuilding received a new impetus after 1611. The Swedish navy and merchant marine, which had almost disappeared since the days of the great Vasa, began to assume new importance, due to the wars and increased commerce. Ships were built in the native harbors, while others were bought in Holland. Officers for the vessels and carpenters for the ship-yards were hired abroad, largely from Holland. The results were soon apparent. Stockholm, which in 1611 was without a single ship (if the statement in the histories be correct) possessed 49 vessels in 1651. In the same year Gothenburg had 18, which three years later had increased to 147, while other staple towns owned 1,000 ships.

Shipbuilding tended to develop other industries, as the Swedish statesmen and leaders of industry tried to provide the necessary ship materials at home without going abroad for them. Rope-walks were operated at Stockholm, at Västervik and other places; sailcloth was manufactured at Stockholm and was also bought in large quantities from the peasants of northern Sweden, who were skilled in weaving; anchors, nails and iron articles required for the ships and shipbuilding were either made in Stockholm at the factories of the government or bought from private persons in the kingdom; masts were cut in the forests of northern Sweden and planks, boards and the like were obtained from the saw-mills in the various provinces.

Agriculture was, as it is and always has been, the most important industry of the nation. Large quantities of grain were exported, except in years of famine and failure of crops, and, between the years 1637–1642, 2,400,000 bushels were sent to foreign markets. The government also endeavored to improve farming and cattle raising. German and Dutch cultivators were invited into the country to teach the Swedes better methods of tilling the soil, and new species of grain and new breeds of cattle were introduced. German and Dutch sheep were imported, which the peasants were compelled to exchange for their own. Dutchmen skilled in butter and cheese making were induced to settle near Gothenburg and other places, from whom the Swedish peasants learnt new and improved methods. Despite all endeavors, however, the agriculture of Sweden and Finland made slight progress during the period. The continual conscriptions removed large numbers of the farming class from the country and hundreds of farms were left untilled on account of the wars. To remedy this state of affairs the government granted freedom from taxes and other concessions for a period to those who settled on deserted homesteads; but even “such dispensations often went begging” and hundreds of once fertile fields lay for years uncultivated and covered with weeds.

The government’s policy of favoring the cities at the expense of the country was one of the obstacles to the prosperity of the farming communities and the success of agriculture. The spirit of the age was commercial. As it was thought that cities alone could conduct trade to advantage, and, as the custom service was aided by the concentration of commerce at a few points, laws were made to favor urban communities. The country people were allowed to trade only with the cities, all trade among themselves being forbidden, and goods shipped to foreign ports must first be sent to the staple towns, which enjoyed special privileges. Farmers, mechanics and skilled workmen were often ordered to remove to towns or cities. In case of refusal they were pressed into military service or carried by force to the cities and their rural homes were demolished. By these stringent means many new towns were founded, and some of the older cities became prosperous and increased in population, aiding industry and commerce.

II.

The government naturally paid much attention to the means of communication. As country roads, canals and other inland waterways were the thoroughfares of domestic commerce and of immense importance in the transportation of troops and munitions of war, the King and his statesmen paid particular attention to them. The old highways were greatly improved, new ones were constructed through the northern provinces, even as far as to the borders of Russia; and soon Sweden had one of the best road systems in Europe. When Whitelocke made his long journey from Gothenburg to Stockholm in 1654 he could write:

“The way was very good and it was much to the cheering of
Whitelocke and his company in so long a journey, a time of so
much hard weather and where other accommodations were wanting,
to find generally such good highways.... Hardly any other
country affords better ways than these.”

An extensive system of canals was proposed for Finland and Sweden. The Hjälmare canal, begun in 1629, was ready for traffic in 1640,--this at a time when England did not possess a single canal. A number of other canals and waterways were projected and, in some cases, finished in this period.

Regular communication of news from foreign countries at short intervals became a necessity in the beginning of the seventeenth century. Correspondents were therefore appointed at various important centres, and Englishmen, Hollanders, Germans, Frenchmen and even Italians were induced to enter the Swedish service, before a sufficient number of trained natives could be found for such posts. Out of this institution grew the post-office. As early as the summer of 1620 a regular postal service once a week was established between Hamburg and Stockholm, and other routes were begun. A few years later “the post-office within the country ... was extended ‘to all the provinces’ in the whole kingdom of Sweden.” In 1642–3 the system was re-organized, and Johan Beier, the treasurer of the New Sweden Company, was made postmaster general. Several changes occurred from time to time, but Beier remained in the service until 1654. The postal service was of great importance to Swedish commerce, since the trading companies, merchants and others interested in foreign markets, could now obtain correct and speedy information about prices and the movements of ships.

Domestic trade attained large proportions in the seventeenth century. It passed to a great extent from foreigners into the hands of native merchants, complaints even being made that too many people left their farms to become traders; but as late as 1650, however, foreign merchants controlled a goodly share of the city trade.

The export and import trade also increased greatly. A considerable percentage of Swedish shipping was in the hands of foreigners, as we have seen; but the government encouraged shipbuilding and the expansion of Swedish commerce through various privileges, reductions of duty on cargoes carried by Swedish vessels and other favors with such gratifying results that the tonnage of the Swedish merchant marine increased over a hundred fold during the years 1611–1660. Swedish ships went to England, Holland, Spain, Portugal, Russia and practically every port in Europe, the Barbadoes, the Canaries and to America and Africa. The principal articles of export were masts, lumber, grain, hides, copper, iron ore, cannon and other implements of war; the incoming cargoes consisted mainly of shoes, clothes, cloth, salt, tobacco and articles of luxury.

Drafts were used very extensively. Insurance was also common, and both ships and cargoes were often insured against loss. Goods and ships were bought and sold through agents, who were paid a certain brokerage.

Money played a larger part than ever before. The currency used in the business transactions of the company and in Sweden in general at the time was the _Riksdaler_, the _Florin_ and the _Daler_ (which was of two kinds, the copper and the silver _Daler_). The _Riksdaler_, the _Florin_ and the _Copper Daler_ were always reduced to _Dalers_ in silver money in the official journal of the company, and the salaries and wages of the officers and servants in the employ of the company in Sweden were paid in “_Daler_ silver money.” The weights and measures used in the colony and by the company in Europe were: the _aln_ (nearly two English feet), the _fot_ (a little less than an English foot), the _famn_ (fathom, 1 9/10 of a yard) the _Swedish mile_ (a little over 6½ English miles), the _German common mile_ (about 4⅗ English miles), the _tunnland_ (a little over an acre in size), the Swedish _tunna_ (barrel, about 33 gallons), the _lispund_ (about 18½ English pounds), the _Swedish pund or Skålpund_ (pound, a little less than the English pound), the _skeppund_ (generally about 400 lbs.), and finally the _last_, which was about two tons or a little more, representing the tonnage of a ship.[7]

The old Julian calender was used in Sweden and in New Sweden. It was ten days earlier than the Dutch calendar of the period and that of the present day. The English (we shall meet their method of designating time in the following pages) began their year on March 25. In other respects their time was the same as that of the Swedes, the only chance for confusion being that the first two months of the Swedish year were the last two of the English.

It was a period of restrictions and government supervision and of combinations and trading societies. Merchants were restricted by law to the handling of but one article of trade, except by special permission. They belonged to certain privileged societies according to their particular trade. The master-workers of practically all handicrafts were divided into guilds and corporations, which were very exclusive and guarded with the greatest jealousy against the intrusion of outsiders. “In Sweden,” said Klas Fleming, “any citizen may by chance become a king, but for him to become a tanner is impossible.” As time went on, however, the restrictions were to some extent removed.

III.

It was pre-eminently an age of commercial companies. Christian II of Denmark (1481–1559), who was also for a time king of Sweden, was perhaps the first to suggest a trading company for the north, but his scheme failed. The Scandinavian countries were not ripe for such an organization. About half a century later a commercial company was chartered at Gothenburg for the purpose of conducting an extensive trade, but it failed. A general trading company was founded in 1615. Its charter was to be in force for ten years. It was to erect warehouses and to buy and sell ships as well as staple commodities in foreign and domestic markets; and it was given rebate in excises. Four years later several influential men decided to organize a commercial company, which was given a monopoly on foreign trade, and granted privileges to buy and sell all kinds of merchandise. Within the next few years several other companies were chartered, but they were all of small importance, except the copper company, which did a large business. A colonizing company was also formed, but it was dissolved after a short time. In 1624 the famous South Company saw the light of day, and five years later a French company was founded, for trade with Russia. In 1632 an ambitious plan was launched to establish direct commercial communications across the continent with India and Persia; and in 1635 some English merchants at Gothenburg applied for the privilege of establishing a commercial company. These activities continued throughout the following decade and hardly a year passed, which did not see the formation of a trading company of some kind. The ship company established in 1646–47, the Swedish African Company projected in 1647, and the tar-company founded in 1648 were important organizations; the other plans were either of small consequence or were never executed. Several capitalists joined the above mentioned African company and in a few years its stock was relatively large. It traded in slaves, ebony and gold, and was very successful, tending to divert money from the treasury of the New Sweden Company. A tract of land was bought from the natives along the Gold Coast, where several forts and factories were erected. The colony came under Danish and Dutch rule for a short period, but was re-occupied by Sweden. It was finally captured by the Dutch in 1663, when the company practically came to an end.[8]

The most ambitious and the best known of these trading societies is the (already referred to) South Company, organized by Willem Usselinx, the famous founder of the Dutch West India Company. Failing to receive from his native land what he thought to be his dues, he left Holland in the beginning of 1624 with the avowed purpose of entering the service of several Dutch mercantile houses at Danzig. On his way, however, he visited several commercial cities in the north among which was Gothenburg.

Gustavus Adolphus had attracted the attention of Europe through his campaigns in Poland, and his fame had been spread far and wide by the success of the Swedish arms in Russia. He had called many Dutchmen to Sweden and appointed them to positions of distinction and honor; and he was laboring for the commercial, political, and social uplift of his people. May we not therefore suppose that Usselinx had some faint hope of finding Sweden a more propitious place for the furtherance of his plans than the ungrateful Republic on the Zuyder Zee and King Gustavus Adolphus a more ardent supporter and a more liberal patron than the States General?

Usselinx reached Gothenburg in the autumn, and, as the King was shortly expected in the city, he determined to remain until His Majesty arrived with the view of obtaining an audience. The audience, which was readily granted, took place some time in October, 1624. It was a remarkable conference. For _six hours_ the hero of the Thirty Years’ War listened to “the commercial rhapsodies,” diffusive expositions and marvelous plans of the great dreamer and trust-maker of the seventeenth century. Memorials and amplifications were later sent to the King, presenting in more definite and compact form the ideas and plans, which had been discussed at the audience. As the ideas of trading companies were not new to the King, he welcomed the proposals, and made the resolute projector proffers of service and promises of support. Usselinx readily accepted the offers and with untiring activity set about to launch his schemes. On November 4 his draft of the charter was ready; a few days later the prospectus of the company was issued, and on December 21, 1624, the King gave “commission to Willem Usselinx to establish a general trading company for Asia, Africa, America and Magellanica.” Usselinx, says the commission, had presented such good reasons for the probable success of his designs that the King was led to believe the company would not only be a financial triumph for the stockholders but also an important asset to his kingdom. On these grounds the commission was issued, and the “governors, stateholders, captains, mayors and councils in the cities” as well as other public servants were commanded to aid and assist the founder in raising subscriptions and otherwise.

A little later Usselinx printed “the contract for the general trading company of the kingdom of Sweden, with its conditions and terms.” He referred to the wealth of Spain and the Netherlands, which had been acquired by the commercial activities in the New World, and he insisted that Sweden had as great possibilities and was as well equipped for such a trade as any other country in Europe. He also made arrangements to have his arguments translated, so as to interest foreigners in his company.

The charter of privileges in thirty-seven articles, which were to be in force for twelve years, “from May 1, 1627, until May 1, 1639,” was signed by the King on June 6, 1626. “We have maturely considered,” says the charter in the name of the King, “and as far as it is in our power we have sought to bring it about that the advantages, profits and welfare of our kingdom and of our faithful subjects as well as the propagation of the Holy Gospel might be in the highest degree improved and increased by the discovery of additional commercial relations and navigation.” The company thus chartered was to make settlements (although a secondary object) on hitherto unoccupied territory and was given sole right to trade “in Africa, Asia, America and Magellanica or Terra Australia, beginning on the coast of America in the same latitude as ... the Strait of Gibraltar unto the 36th degree” and no one else was permitted to sail to these parts “nor to any country or island lying between Africa and America,” on pain of confiscation of ships and cargoes.

The management of the company was minutely provided for. One director, with a salary of 1,000 D., holding office for a term of six years, was to be elected by a majority of the shareholders qualified to vote, or appointed from the eligible members, for every 100,000 D. subscribed. The head department or office of the company was to be located in Gothenburg, and sub-officers were to be established at various other places.

A duty of 4 per cent. was to be paid by the company on all exports and imports (except coined or uncoined silver and gold, received in payment for merchandise); and one-fifth of all minerals discovered in the occupied territories and one-tenth of the produce of the cultivated lands in the established colonies were to be given to the government. All booty seized from pirates and other enemies was to revert to the company for the defense of the trade, unless a Swedish man o’ war was present at the capture. The company was to be under the special protection of the government, and the King was to appoint a council from amongst the most prominent shareholders, which at the expense of the government was to provide for the building and garrisoning of all fortifications necessary in the colonies, establish courts of justice, make good laws, appoint governors, commanders and other officers, as well as to settle all difficulties between the colonists and the natives in the occupied districts. The company also had a right to build its own fortifications and to found cities and towns. It could make treaties with the republics and with the kings and princes of all countries lying within the limits of the charter; it had a right to defend itself against enemies, but was not to begin hostilities. Finally it was to pay Usselinx for “his services, trouble and great expense” one per mill, as long as the charter was in force. The conditions of membership were liberal and special inducements were offered to foreign investors.

The charter was soon printed in Swedish and German and freely distributed, being sent even to Venice. Usselinx had high hopes of success. He urged the reprinting of the charter in Germany and Holland, and planned to issue a French version. He obtained promises of subscription from members of the supreme court, and brought the business of the company before the diet in the beginning of 1627. The King subscribed 450,000 D., while Axel Oxenstierna, Von Falkenburg and other noblemen took a keen interest in the matter, and used their influence to favor the same. The King also appointed two of his directors to facilitate the work and to fully establish the company, and advised every citizen in the kingdom to invest capital in it according to his means.

In spite of it all, however, progress was slow. After months of labor Usselinx had raised subscriptions amounting to only about 160,000 D., which could not even he collected; but neither he nor the directors were daunted. It was planned to prepare a trading expedition in the near future. For this purpose Usselinx was sent to Prussia to consult with the King. He was also to collect His Majesty’s first instalments and to solicit new subscriptions. In November he was sent to raise additional funds in the Baltic provinces and in Finland. Armed with letters of introduction to the royal and municipal authorities along his route, he made a tour from Dirschau around the Baltic and the Gulf of Bothnia, visiting the principal cities in these provinces, and everywhere presenting memorials and arguments about his beloved South Company.

Arriving in Stockholm in April, 1628, he expected to find that ships had been sent to Africa, and that other beginnings had been made; but in these things he was disappointed. The directors, who were to collect funds in Sweden, had tired of their labors. A losing trade had been conducted in Russia, and a glass factory, which Bonnell endeavored to establish for the company at Gothenburg, proved a failure. Rope-walks were built at Norrköping and Linköping, and, although ropes were made at the former place until August, 1637, the experiments seem to have been financial failures. An expedition to the West Indies had indeed been planned. A skipper had been engaged, and two vessels had been equipped; but the expedition never left port, and the company was minus a few thousand D.

Under such conditions Usselinx was justly dissatisfied with the management of the company he had founded. He complained bitterly that the directors paid more attention to insignificant details than to great principles, that they seldom met for consultation, that one director collected money, disposed of it and made contracts without the knowledge of the others and finally that Christian Welshuisen was the only officer who understood his business. He therefore wished to be relieved of his services, unless radical changes were made. He still entertained some hope, however, that the company would develop into great significance if managed on a sound basis and in a business like manner. Consequently he made new suggestions. He thought that additional letters should be sent to the governors in Finland, that experienced agents and commissioners should be despatched to Norrland and other provinces of the kingdom and to Germany, France and Venice to solicit subscriptions; that the directors should be compelled to follow the charter and that the company should be granted liberty to buy and export grain. But affairs went from bad to worse. Usselinx feared that the company would dwindle down to a rope-walk and a ship yard. As he knew little about the building of ships and the making of ropes (which could better be superintended by others), he decided to leave the country. He obtained his release in December, and in the beginning of 1629 he left Stockholm with letters to the states general and to Prince Henry. His connections with the South Company in Sweden now practically came to an end, but he did not abandon his plans, and we shall find him in many countries trying to interest the governments and the people at large in commerce and colonization.

About the time Usselinx left Sweden Gustavus Adolphus was formulating plans for the establishment of an organization with purposes somewhat different from the South Company. The King needed ships for his wars and his commerce. Capital was difficult to raise, and the state treasury was drawn upon to the utmost for other purposes. The founding of a ship company appeared to be one way out of the embarrassment and at a meeting of the representatives from various Swedish towns in the beginning of 1629 the King proposed a plan with this end in view. The suggestions were favorably received, and a company was organized, which was to equip sixteen ships. In time of peace these vessels were to be employed by the company on commercial voyages, but in cases of war they were to be placed at the disposal of the government for free use against the enemy. They were to be ready in the spring of 1629, and should be built in Sweden as far as possible to increase and encourage Swedish shipping.

The various cities made strong efforts to build, buy or hire ships, but money was slow in coming in, due to the scarcity of money and disagreements between the subscribers. Consequently the vessels were not on hand at the appointed time. It was then decided to unite the South and the Ship companies, so as “to create in this manner a complete society and trading company, until opportunity and capital should allow the South Company to be continued and re-established.” The nobility also promised to contribute 50 D. for each trooper. The union of the two companies was authorized and legalized by the King in May, 1630. The cities of Finland gradually joined the corporation, and the capital was soon considerable. In the autumn of the above mentioned year the sixteen ships were ready, although all shares had not been paid in full. Expeditions were sent to Stralsund, Archangel, and to cities in Holland and France. In the autumn of 1631 four vessels were prepared for a trading journey to Spain (the largest expedition sent out by the company), but the ships and cargoes were seized by order of the Spanish government. The following year the _Kalmar Nyckel_ was purchased, and two new ships were built to replace those which had been lost. New expeditions were also prepared, but in 1635 the affairs of the company were at a low ebb. Efforts were made by the government to raise more money, and to put new life into the organization; but the old contributors had lost their interest and new ones could not be found. Some of the remaining capital was used for the benefit of the New Sweden company, but individual ships continued to be employed for carrying freight and the _Old King David_ made numerous voyages to foreign ports until it was sold in 1641.

Meanwhile Usselinx had been busy stirring up half Europe with his schemes and proposals. Obtaining new commissions he visited Stralsund, Stettin and other cities of Germany and Holland in the interest of his one grand idea. Finally seeing the futility of founding a Swedish company as extensive and important as he desired, he proposed a new plan or rather emphasized an old one (far in advance of his age) of forming an _international mercantile company_. The territorial restrictions of the old charter were to be removed, and the entire world was to be the field of activity.

An amplification or extension of the charter drawn up in 1632 was sanctioned and approved by Gustavus Adolphus shortly before the disaster at Lützen. Axel Oxenstierna, who endeavored to carry out the wishes of his ruler, signed a commission for Willem Usselinx on May 1, 1632, ‘as general director of the New South Company.’ Memorials and relations now followed each other in rapid succession, and soon an exceptional opportunity presented itself for advancing the interest of the new company. The convention at Heilbronn (1633) was induced to give Usselinx a hearing, who was not slow to unfold the objects and possibilities of his “trading combine” to the attending nobles. In June the famous _Argonautica Gustaviana_ and _Mercurius Germanica_ were published at Frankfurt-on-Main, in which were embodied the arguments presented by Usselinx in former memorials. The company was again discussed at the convention of Frankfurt in the autumn as well as at the second convention of Frankfurt in 1634. The great idea finally promised to assume more definite form, as the diet actually took an interest in it. Some changes were suggested in the charter, and promises of aid were made. It seemed that the plan would finally be embraced in earnest by forces capable of carrying it to a success. The undaunted organizer saw the prize within reach for which he had labored during a large part of his long and active life. This was on September 17, 1634. But he was again to be disappointed. The next day news arrived of the defeat of the armies of Fieldmarshal Horn and Duke Bernhard, and thus came to an end the hopes and labors for the second or New-South Company, which might have become of great importance and produced far reaching results in the colonizing of North America.

But Usselinx labored on. He made new proposals and wrote new accounts and relations. He was engaged in a futile cause, however, and his many projects mainly tended to fill the city and state archives of Europe with “short memorials.” In the meantime other suggestions were presented to Oxenstierna, which led to more definite results, and we are now ready to trace the development of the activities, that led to the founding of _New Sweden on the Delaware_.