English industry

in the

fourteenth

century.

The sur

render of the home market to foreigners.

CHAPTER II.

TRADE AND COMMERCE MONOPOLIZED BY FOREIGNERS.

At the close of the fourteenth century England was purely an agricultural country. Mr. Gibbins, in speaking of their manufacturing industries at the time of Edward III., says:

There was a considerable manufacturing industry chiefly of coarse cloth, an industry very widely spread and carried on in people's own cottages under the domestic system. The chief kinds of cloth made were hempen, linen and woolen coverings, such as would be used for sacks, dairy cloths, wool packs, sails of windmills and similar purposes. 1

The principal source of English wealth and revenue at this time was wool. In the middle of the fourteenth century the annual value of the export of wool was 180,683 pounds sterling. The taxes of Edward III. paid in wool were calculated not in money but in wool sacks.

In one year parliament granted him 20,000 sacks, in another 30,000 sacks and in 1339 the barons granted him the tenth sheep's fleece and lamb. Early in the fifteenth century 30,000 pounds sterling out of 40,000 pounds sterling, revenue from customs and taxes, came from wool alone. 2

The commercial policy of England was conducted wholly upon free trade lines. Not only was the greatest liberality extended to foreigners in trade, but they were encouraged to bring their wares into the country for sale. Royal charters were granted to them, under which they enjoyed the privilege of establishing headquarters in London, and there monopolizing the trade and business of the country. The merchants of the Hanseatic League, the Italians and the Flemish, held privileges that were not enjoyed by Englishmen. Under these special charters they were permitted to bring their goods into the country, duty free, and to monopolize, not only the wholesale but the retail trade. Soon after the Norman Conquest, a few mechanics and artisans came from the Continent, but it was a long time before an artisan class arose.

Immediately following the Norman Conquest, a number of Flemish weavers who had been deprived of their homes by an inundation, and had immigrated to England, sought the patronage of Queen Matilda, who was a Flemish woman. It does not appear, however, that any important results followed their settlement. The building of castles, monasteries and cathedrals, which followed the Norman Conquest, invited masons and 1 Industrial History of England, p. 51. & Id., p. 50.

mechanics from the Continent, who remained and contributed to the mechanical skill of the country.1

granted

merchants

A number of merchants followed William the Conqueror and set up Privileges business in London. At this time wool was exported to Flanders and cloth foreign imported. In 1155 the articles of export were lead, tin, fish, fat cattle, wool and jet. In 1221 wine was obtained from France and Lorraine. As early as the time of Ethelred, the Germans received a license to establish trading quarters in London. Similar privileges were granted to the merchants of Cologne, by Henry II., in 1157. They were to be protected in London as his own men, both in their merchandise, possessions and houses, without interference from any one. Under Richard I. they received still further privileges. They were to pay only two shillings a year for their quarters, and were exempt from payment of customs, and had the freedom of all the fairs in the realm. This charter was subsequently confirmed by King John and Henry III. These German merchants established headquarters in London, in a place assigned to them, called the Steel Yard, which they occupied for centuries. They elected their own alderman, and their headquarters became a place of great commercial importance. The Flemish merchants were also granted a house of their own. These privileges were extended by Edward II., and successive English monarchs. In 1325 Edward II. gave to the Venetian merchants full liberty to sell their merchandise in England. Edward III. gave additional rights to the merchants of the Hanseatic League in consideration of an advance of money for the redemption of his crown jewels, which he had pawned at Cologne. The bankers of Florence had also loaned Edward III. a large sum of money. They were made collectors of his customs and extensively operated in England under privileges procured from the king.

cial insig

of England

system.

At this time the people of England were without merchant vessels, Commermen-of-war or foreign commerce. They were also without domestic nificance industries, and relied upon foreigners for all clothing, weapons and imple-under this ments, excepting those of a coarse domestic make. All articles from abroad passed through the hands of foreigners, who, of course, were constantly prospering from this trade. Even the wholesale and retail trade of the cities and boroughs was to a large extent monopolized by aliens. An utter disregard was shown for the welfare and prosperity of the masses. This system of placing a premium upon the business. of merchant strangers and sustaining the industries of the Venetians and Dutch, was pursued until England realized her insignificance, and became not only jealous, but in constant fear of the power of her neighbors across the channel. That England should have been several centuries behind the people of the Continent, in industrial life, was the natural and inevitable result of this policy. The Hanseatic League

1 Growth of Eng. Ind., Vol. I., pp. 138-139.

Revolt against aliens.

continued to hold their quarters much longer than the Italians. As late as 1474 more favorable terms and privileges were extended to them by Edward IV. They were given absolute possession of their guild halls in London, and also permitted to establish quarters in Boston and Lynn. It was not until the reign of Elizabeth in the year 1597, that their charters were finally annulled. For nearly four hundred years this powerful organization of German cities by their wealth, persistency and political influence were enabled to flood England with foreign wares and hinder the industrial development of the country. During the fifteenth century their privileges were exercised in the face of the constant protest of London merchants, and by the unwilling acquiescence of English monarchs, who by their need of money, lack of ships and dependent condition were too feeble to protect the rights of their subjects. The trouble encountered by the English people in expelling these alien merchants who had been sapping the life of the country, and in gaining control of their own markets and becoming relieved from their exactions, shows how difficult it is for people reduced by a free trade policy to rid themselves of the entanglements and complications of such alliances.

The English people embarked upon a policy of developing their own resources and establishing industries under most serious difficulties. It was a struggle with powerful and wealthy rivals, who had not only been long in the business with their industries well developed, but who held an absolute monopoly of English markets through political and financial influences. The English monarchs, engaged almost constantly in foreign wars, were not only compelled to borrow money of strangers, but could not displease them without embarrassing their own plans. The more wealthy and powerful rivals could not at once be cut off from English trade. Besides England had no ships, and her merchants could not at once build merchant vessels and put to sea without the protection of men-of-war, and this they were too poor to afford. The development of industries was necessarily slow for other reasons. The mass of the people were ignorant and unskilled. Their tastes and training had been confined to the cultivation of the soil, and they had no money to invest in business enterprises. If the landed aristocracy had any ambition, it lay in the direction of foreign conquests and military achievements. Without shipping, without a navy and constantly being drained of their treasure, the people were so tightly bound by the fetters of free trade, that a change of policy was most difficult. The gradual rise of the industrial classes first appears in a revolt against aliens. Edward I. imposed higher duties on goods imported by strangers than upon similar articles brought in by natives. He appointed officers to collect duties, prevent smuggling and enforce laws. This policy was reversed by Edward II. and the privileges of foreigners restored. At this time complaints arose among the merchants of London against the Italians and Germans. It was stated in

their petition to Edward III. that, “The citizens that bore the common burdens of the town were impoverished by the competition of foreigners, whose stay was unlimited." But no relief was granted. These complaints were continued from time to time, until Edward III., in 1327, by charter commanded, "all merchant strangers coming to England to sell their wares and merchandise within forty days of coming hither, and to continue to board with some free hosts of the city. Without any house

hold or society by them kept." This charter was followed by another exercise of royal prerogative in 1376, which prohibited all strangers "from selling any wares in the city, or any suburbs of the city, by retail or through a broker.''1

This, however, applied only to the city of London, and the Hanseatic League was not included within the restrictions. The struggle between the home and foreign merchants continued for many years. It was not, however, over the importation of goods, the building of factories and the employment of labor in England, but upon the policy of allowing aliens who brought the goods into the country to monopolize, as they long continued to do, retail as well as wholesale trade. Parliament finally came to the rescue of the foreigners and by a statute' granted full freedom to the alien merchants in utter disregard of the ancient charter rights of the city of London, to fix its own tolls and customs and to regulate trade within its borders. Edward III., however, renewed the charter of the city, providing in the instrument that, "No strangers shall from henceforth sell any wares in the same city or suburbs thereof by retail, nor by any broker in said city or suburbs thereof, any statute or ordinance made to the contrary notwithstanding." But during this agitation, Edward III. was under such obligations to the merchants of the Hanseatic League, that they were exempted from the operation of this charter, and their privileges continued as before.

1 Growth of Eng. Ind., Vol. I., p. 270. 29th Edw. III., c. I.

Protection

introduced

CHAPTER III.

FIRST ATTEMPTS AT PROTECTION.

From 1327 to 1377, a period of fifty years, Edward III. reigned over by Edward the English people. At a time when the spirit of chivalry was in its zenith and foreign conquest and military achievements were the highest ambition of a king, Edward III. entered upon a commercial policy which gave him a greater distinction than all the glory gained in the victory of Crecy or in any of his military achievements on the Continent. The appellation of the "Father of English commerce," has been conferred upon him by the generations of people who have prospered under the influence of that mercantile policy, which he gave to England. Henry C. Carey says the

Magna Charta secured the privileges of the aristocracy, but the statute of 1337 laid the foundation of the liberties of the people, by providing for the diversity of their employment and the development of individual faculties; as a consequence of which the change of system was followed by a rapid increase of both individual and national power1

Considering the circumstances and conditions of the times, the establishment of this policy by Edward III., is one of the most important episodes in the history of England.

In 1331 he invited John Kemp, a Flemish weaver, guaranteeing to him special protection, to set up cloth weaving in England, and he came with his servants and apprentices, both weavers, fullers and dyers. He and his men were to enjoy the king's protection and were encouraged to exercise their craft, and to instruct those who wished to learn. Further than this Edward3 invited artisans from all countries to settle in his realm, guaranteeing them full protection in setting up their crafts. About this. time, weavers came from Zealand and Brabant. "In 1368 three clock makers from Delft were encouraged to settle and ply their trade in London, and a craft of linen weavers was also introduced before the end of the century."

In 1337, however, an act was passed' which made the reign of this monarch one of the most famous in the commercial history of England. It was the first of that long series of parliamentary enactments, which fostered and encouraged English industries and attempted to establish the

1 Social Science, p. 180.

2 Growth of Eng. Ind., Vol. I., p. 283. 4 Growth of Eng. Ind., Vol. I., p. 285. 63d. Edw. III., cc. 3-4.

11th, Edw. III., cc. 1-5.