The economy Flashcards
population at the beginning of the 15th century
2.2M
what were majority of the people relying on
The majority of the people at the same were relying on some form of farming for a living
when did people live
10% of the population lived in towns such as York, Bristol, Norwich and Coventry. In these urban areas wool and cloth were the main industries
economic aims
Re-establish English commerce
Consolidate power and the Tudor dynasty
Increase English Prosperity
Develop English Shipping
Break the Hanseatic league
francis bacon
his thrifty mind would not endure to see trade sick
key trade acts
Trading Embargo with the Netherlands 1493
Treaties with Spain and France
Magnus Intercusus 1496
Navigation Act 1485
Navigation Act 1489
what was the Hanseatic league
Henry sought to break up the Hanseatic League a league of German towns which dominated trade in the Baltic. They aimed to maintain a monopoly of trade there
overview of the navigation acts
Navigation Acts were passed which encouraged the use of English ships to carry goods rather than foreign ships. In particular wines from France could only be imported in English ships. All this assisted the activities of the London - based merchants adventurers.
crowns approach to trade
The crowns approach to trade during Henry VII’s reign had little consistency. Henry was interested in maximising customs revenue, he was also prepared to sacrifice revenue and trade in the interests of securing the dynasty and he was also happy for parliament to legislate in favour of sectional interests (interests of a particular group within a community or country)
navigation act 1485
The objective of these was to encourage English shipping by trying to ensure that only English ships should carry certain products to and from English ports. It forbade Englishmen from loading their goods on foreign ships when English ones were available. It reserved the lucrative trade with Bordeaux in France, exclusively for England. Wines from Gascony were to be imported only on English ships with crew that were at least 50% English.
was the Navigation Act 1485 useful
the acts were only limited usefulness as foreign vessels continued to transport a substantial proportion of English exports
Navigation Act 1489
Limited the export of English wool and made it illegal for foreigners to buy wool until English buyers had bought what they wanted first. It also made it illegal for foreigners to buy raw wool to manufacture cloth outside England. This reflected the needs of the important cloth industry in England and Henry was seen to show his support
export of wool at the end of the reign
At the end of his reign, the export of raw wool was 30% lower than it had been in 1485. 60% more cloth was being exported in 1509 than at the beginning of Henry’s reign
how did Henry try to encourage the cloth trade
Henry tried to encourage the English cloth trade by trading agreements with the rulers of Burgundy who controlled the port of Antwerp.
trade agreements overview
The most important agreement was the Intercuses Magnus 1496 which allowed English Merchants to trade freely with all parts of Burgundy except Flanders. There were occasional disagreements and interruptions to this trade agreement but by 1509 English merchants were shipping more than half the cloth exported to the EU in 1509.
how much cloth had been exported
Overall 60% more cloth was being exported to EU in 1509 than had been at the beginning of the reign.
who hindered commerce relations
The growth of cloth being exported could have provided a foundation upon which healthy commercial relations could be built as it was fair to both sides, but the Merchant Adventurers continued to come into frequent conflict with the government of the Netherlands
where was there conflict in trade
There was continued disputes as Phillip first tried unsuccessfully to impose a new import duty on English traders and then to confine them to Antwerp. Nor did Henry ease the situation by attempting to negotiate the surrender of the Earl of Suffolk. Though the terms of the treaty were still being debates two years later, it never came into full operation - by the following year, trading agreements had been restored on the basis of the intercusus Magnus
malus intercusus
Phillip was persuaded to agree to a new trading agreement nickname the MI by Bacon because it was one-sided
trading embargos
The biggest issue concerning trade in Henry’s reign stemmed from his embargo on trade with the Netherlands. He imposed this in 1493 as a result of the fear and insecurity brought about by Margeret of Burgundys support of Perkin Warbeck, Simnel as well as other Yorkists who wanted to usurp Henry. Instead of trading directly with the Netherlands merchants were required to direct their trade through Calais, this invited retaliation from the Netherlands, the embargo ended with the Intercusus Magnus. It stopped all trade and led to economic problems in England especially in East Anglia, Henry put consolidation of power above the economy
evaluation
Henry’s policy on trade achieved some success but in a limited way. Customs duties rose at the beginning of the reign but compared with the Hanseatic League, Spain and France. Englands merchants were only trading small amounts. The main importance lies in the foundation laid and with the way in which the encouragement of overseas trade helped Henry to be secure
trade treaties
Several trade treaties were concluded though these were of minor importance and showed that Henry rated foreign policy and dynastic interests as greater priorities than the interests of English merchants. Trading restrictions which had existed since Edward IV’s reign were removed in 1486. They were re-imposed in the following year as a result of Henry’s support for Brittany but largely removed again by the treaty of Etaples 1492.
treaty of Etaples and the economy
This treaty while not primarily a trade treaty did not try to encourage Anglo-French commercial relations. Most of the remaining trading restrictions were removed in 1497. Weaknesses in trading policy were shown when the attempt to make a significant break through in Mediterranean trade proved a dismal failure and the Hanseatic League was largely successful in limiting the development of English trading interests in the Baltic
merchant adventurers
They were trading organisations which dominated London’s trade with Antwerp. Merchant Adventurers dominated the economy and controlled trade in areas such as Newcastle and Bristol as well as agricultural towns such as Norwich. In 1505 Henry VII granted the merchant adventurers a charter whereby they were to appoint a governor with 24 assistants to run the organisation. They encouraged and promoted trade as well as contributed to the nation’s finances. The merchants provided loans to Henry to help finance the government, He borrowed sums of £10,000 from the Merchant of Calais. He expected the merchants to support his foreign policy even if it meant them losing trade or breaking contacts with foreign investors
