Henry VII and Economic Development Flashcards
The Navigation Acts 1485-1486
The Acts said no English merchants were to use foreign ships to transport goods if an English ship were available. The Acts encouraged English ship building and saved the expense of hiring foreign ships to carry English goods. Saving costs = increased profits = increased customs revenues.
Decreasing the raw wool trade
In 1489, Henry VII limited the export of English raw wool and made it illegal for foreigners to buy English raw wool for use on the continent.
Increasing England’s cloth exports
Henry VII believed that Burgundy (a region in modern-day France) was England’s gateway to trade with the continent. In 1496 Henry VII signed the Intercursus Magnus treaty with Burgundy. It allowed English merchants to trade freely throughout Burgundy, except in Flanders.
Increasing England’s Mediterranean trade
Mediterranean trade included valuable wines, spices and silks. Venice dominated the Mediterranean. It taxed English merchants trading there heavily. In 1490, Henry VII cut exports of English wool to Venice but increased them to its rival, Florence. This gave Florence an advantage over Venice. So Venice cut the taxes on English merchants trading in the Mediterranean.
Economic success
Historians have noted the incoherent nature of Henry VII’s policies. They use this to argue that Henry was an opportunist and did not always have a clear plan. English cloth exports were up over 60%. Less successfully, English raw wool exports were down only 30%. 50% of England’s exports were still carried in foreign ships. But England’s trade was still very small compared with the Hanseatic League, Venice and Spain.
Exploring the Americas
From 1492, Spain developed rich colonies in southern America, providing it with resources and markets. Henry VII encouraged the Cabots to explore America for England. They discovered Newfoundland and the Hudson Bay in the far north. Newfoundland and Hudson Bay were not wealthy. But Henry VII’s successor, Henry VIII, ignored them.
Expansion of the Navy
Henry VII focussed on building the English navy. He would leave his successor, Henry VIII, nine ships.
Recovering economy
Henry VII inherited a weak economy.
This was because of the impact of the War of the Roses. Because the economy was vulnerable, England could be damaged by poor harvests or outbreaks of disease.
Enclosure
Henry VII faced a growing problem called enclosure. This meant that agricultural land which was once common (available to any farmer) was now exclusively owned. Farmers could work on a larger scale and try new farming techniques. This led to an increase in production and greater profitability. But enclosure meant many poor farmers lost their land and livelihood, and were forced to move elsewhere.
