R. Nisbet Bain - The Cambridge Modern History

The cities were also concerned in the wise management of such parts of their territory as were suitable for pasturage, partly for the sake of a supply of meat, but also with the view of procuring wool; the Florentines had large flocks upon the Maremma, for the obtaining of raw material was of primary importance to the Arte di Lana. We also find evidences of the introduction of sericulture in the neighbourhood of the towns where the weaving of silk had been introduced. The provision of raw material and of a proper food-supply were the two main points in the economic policy which the towns pursued in the large territories under their control.

This practice of treating town and country avocations as parts of one economic whole was commonly adopted, though it had hardly been definitely formulated in the fifteenth century; but the general principles which it involved had at least been so far thought out that they could be habitually assumed in the political writings of Machiavelli. He is quite clear as to the necessity of subordinating the interest of the citizen to that of the State; the civic policy of the Middle Ages had been that of severing different trading bodies and keeping them from encroaching on one another, rather than of subordinating all to an ulterior object. With Machiavelli the ulterior object towards which all commercial activities should be directed is the power of the prince. He points out that measures which tend to increase the wealth of the prince, without enriching the people, provide the firmest basis for absolute power.

Such ideas were widely current at the beginning of the sixteenth century, and they may easily have affected the statesmen who were guiding the destinies of the rising nationalities of Europe. In many countries all the elements that combine to form true national life were present; for there was a common stock, a common language, and a common law. But the fusion was incomplete and local divisions were deep and real. The ambitions which were opened up by the age of discovery strengthened national sentiment by affording an unlimited field for national rivalries; and the religious differences, which accentuated the divisions of Christendom, rendered the sense of national religion a convenient badge in warfare. These positive elements in the growth of national life were strengthened in any country where a territorial economic policy was adopted, so as to bring out a community of interest among the citizens, and to give solidarity to the whole social system. Definite schemes for the development of material resources, with a view to one supreme object, involved the suppression of local privileges and the increase of commercial intercourse; and this tended in its turn to give the opportunity for the healthy interaction of rural, urban, and commercial life upon each other. As the economic life of a country adapted itself to these new conditions, and as appropriate institutions were organised, the body economic came to be reconstituted on a national, not as of old, on a civic basis. The recognition of ties of common interest throughout a large territory gave definite shape to the groups which were pervaded by similar sentiments of race and religion. The sense of economic welfare as something common to the whole of a country strengthened the bonds which united each rising nationality in a common economic life, that was of importance to all citizens alike.

In the earlier sections of this chapter it has seemed convenient to deal chiefly with the rise of capital and the influence of its growing power over the economic institutions of medieval cities. The city was the type of economic organisation which had flourished in the ancient and in the medieval world; but it was not adequate to the requirements of modern life, and the old associations were disintegrated and destroyed. In the sixteenth century we see the signs of real reconstruction, and the growth of economic institutions and regulations which were compatible with capitalistic enterprise both in industry and commerce; even though this was still restricted within limits that we regard as narrow. One nation after another adopted a territorial economic policy, which implied the conscious subordination of certain private interests to the welfare of the realm, the conscious development of the resources of the country, and the conscious building up of the sinews of national power. The main feature of this territorial economic policy was similar in the case of all nations; all the rivals desired to accumulate treasure, as the means of equipping ‘or of hiring armies; but there were different methods by which this aim could be attained, and different subordinate objects to be pursued, according to the circumstances of each particular country. To these we must now turn; for by briefly tracing the special schemes of territorial development which were adopted in Spain, England, and France respectively, we shall see most clearly the nature of the enlarged body economic which has come into prominence in modern times. The discovery of America by Colombo gave the Spaniards access to an enormous territory of which they were complete masters, and which they were free to develop on any lines that seemed good to them. It is no part of our present purpose to discuss by itself the colonial policy which the monarchs followed; we have rather to consider the aims pursued by them for their empire as a whole. The large mass of bullion that was imported, together with the great commerciahopportunities that were opened up, exercised a remarkable influence upon economic conditions in the peninsula. The amount of gold and silver which the Spaniards acquired was quite unprecedented, and’might have been used to form a very large capital indeed. The West India islands supplied increasing quantities of gold from the time of their discovery until 1516. In 1522 the exploitation of Mexico began; silver was acquired in greater and greater masses, and the introduction, in 1557, of a simpler process of reduction of the ore by means of quicksilver diminished the cost of production and still farther augmented the yield of bullion. In 1533 the Spaniards also obtained access to Peru, from which additional supplies of silver were procured. Altogether, an enormous stream of bullion poured into Spain during the whole of the sixteenth century.

The Spaniards were able to rely on the best possible advice as to the organisation of business of every kind. Genoese financiers were ready to give every assistance, and the South-German capitalists, who had so much experience of mining and enterprise of every sort, were closely attached to the interests of Charles V; after his accession to the throne of Spain they were attracted to that country in large numbers, as great privileges were conferred upon them. They were able to take part in colonisation, and to engage directly in mining. The Fuggers undertook to develop the quicksilver deposits of Almaden; they formed business connexions in the New World, and founded settlements in Peru. The Welsers established a colony in Venezuela, and undertook copper-mining in San Domingo. There was at the same time an incursion, chiefly to Seville, of other German capitalists, who were prepared to devote their energies to developing the industrial arts of Spain. With all these material and technical advantages it seems extraordinary that the dreams of Charles V and Philip II were not realised, and that they failed to build up such a military power as would have enabled them to establish a complete supremacy in Europe.

It would be exceedingly interesting if we were able to examine in detail the extent to which the precious metals came into circulation in Spain, and the precise course of economic affairs in different parts of the country; but the material for such an enquiry does not appear to be forthcoming. Yet one thing is obvious; the Spanish colonists devoted themselves almost entirely to mining for the precious metals, and they were largely dependent for their supply of food of all kinds on the mother country. This caused an increased demand for corn in Spain and a rapid rise of prices there, as the colonists were able to pay large sums for the necessaries of life. Charles V, indeed, endeavoured to carry out works of irrigation, and to increase the food-supply by bringing a larger area under cultivation. But tillage could not be developed so as to meet the new demands. The methods of cultivation already in vogue were as high as was generally practicable in the existing state of society; the vine- and olive-growers on the one hand, and the pasture-farmers on the other, resented any encroachments on the land at their disposal, so that it was impossible to bring a larger area under crop. So powerful were the Mesta, a great corporation of sheep-farmers, that they were actually able in 1552 to insist that Crown- and Church-land which had been brought under tillage should revert to pasture. The result was inevitable; food became dearer, and the government was forced to recognise the fact by raising the maximum limit of price; as a consequence, the necessary outlay of all classes increased, while a large part of the population were not compensated by the profit obtained through the new facilities for trade.