The Social Basis of English Commercial Expansion
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The Social Basis of EnglishCommercial Expansion,1550-1650 . foreach periodinto which our economichistory may be divided,there is a distinctand separateclass of capitalists.In otherwords, the group of capitalistsof a given epoch does not springfrom the capitalistgroup of the precedingepoch. At every change in economicorganization we find a breachof continuity.It is as if the capitalistswho have up to that time been active,recognize that they are incapableof adapting.... Theywithdraw fromthe struggleand become an aristocracy,which if it again plays a part in the courseof affairsdoes so in a passivemanner only, assuming the role of silentpartners. In theirplace arisenew men.... - Henri Pirenne' PIRENNE'S generalization,though full of insight,will nothold up because it restson oversimplifiedassumptions about both the behaviorof "capitalists"and the natureof economicdevelop- ment.For example,as we shallshow, the commercial breakthroughs whichhighlighted the expansion of English trade between 1550 and 1650 werenot all the workof "newmen" and did not alwaysre- quirean entrepreneurialoutlook. Nevertheless, Pirenne did tryto understandeconomic change in termsof the men who actually carriedit out.In thisrespect, his approachcan providea necessary correctiveto the economicdeterminism which has characterized manymore recent explanations of economicdevelopment. Englishcommercial expansion between 1550 and 1650 is often understoodsimply by referenceto the changingstructure of economiccosts and opportunitiesfacing English merchants. Mer- cantileactivity is thusexplained as a moreor less automaticre- sponse to marketconditions-crisis in overseas demand, the disruptionof outlets,and therise and fallof foreigneconomic and politicalcompetitors. Factors such as thesemust obviously be con- sideredin anydiscussion of late Tudor-earlyStuart commercial de- I wish to expressmy thanksto Dr. David Fischer of the Universityof South Carolinafor allowing me to make use of resultsfrom his Ph.D. dissertationon the Levant trade. TIle section of this paper on the easternexpansion owes much to his work,as I have triedto indicate.I wish also to thankProfessors Lutz Berkner and GeoffreySymcox of U.C.L.A. forreading this paper and offeringtheir critiques. 1 "The Stages in the Social Historyof Capitalism,"American Historical Review, XIX (191L), 494-495. 361 362 Brerner velopment.Nevertheless, they cannot explain that process for the samereasons that no challengecan be said to determineor explain a followingresponse. The reactionto commercialopportunity (or cost),if indeed there is one,will tend to varywith the social, politi- cal, and economiccharacter of the mercantilegroup. What is a promisingenterprise to one groupof businessmen mightbe un- attractiveor irrelevantto othersbecause they occupy different positionsor have had differentexperiences and, therefore,possess differentinterests, preferences, or capabilities.At the same time, an opportunitycan notbe treatedas simply"given" in thesituation. Its verycharacter and profitpotential must be seen as partially alterabledepending on the entrepreneurand his resources;in this sense it maybe definedand createdin the veryprocess of being exploited.In short,while differentkinds of commercialprojects tendto attract(or repel) differenttypes of entreprenurialgroups, differententrepreneurs are able to shape theirprojects in different ways. It is thusthe objectof thispaper to showthe value of treating commercialactivities as social and political,as well as economic, processes,by focusingon the differentgroups of merchantswho undertookthe Elizabethan and earlyStuart commercial expansion. In particular,we shall comparethe new eastwarddrive of the Elizabethanera, which was accomplishedby elitemerchants under controlledconditions designed to minimizethe need forrisk and innovation,with the more typically"entrepreneurial" thrust by "new men"which characterized the emergentcolonial commerce underthe early Stuarts. The analysisof thesecontrasting develop- mentswill point up theinadequacies of Pirenne's schema. It should also allow us to reassessthe causal significanceof the oft-cited economic"determinants" of sixteenth-century commercial develop- mentby establishingtheir real effecton the particularmerchant groupswho actually carried out commercial change. This discussion couldopen the way for a moreprecise account of thechanging dy- namic of commercialexpansion over the periodand thus for a sharperdelineation of its stages. It hasbecome an historical commonplace that the Elizabethan com- mercialexpansion was a responseto the clothexport crisis of the 1550'sand theconsequent need fornew clothmarkets.2 This argu- 2 See, especially,F. J. Fisher, "CommercialTrends and Policy in Sixteenth EnglishCommercial Expansion 363 mentcontains some validity. Nevertheless, it has tendedto impart a misleadingimpression of the motiveforce of Elizabethancom- mercialchange and of its relationshipto previouscommercial trends.The tradesthat emerged from the expansionary thrust which extendedfrom Russia to the Levantto the East Indiesduring the second half of the sixteenthcentury did not begin to solve the problemsof the clothexport trade, nor were theyby and large intendedfor this purpose. They were not set in motionprimarily by the Companyof MerchantAdventurers, the chief cloth ex- portersof the period.They were organized,instead, by import merchantsaiming to obtainat theirsource eastern products which had formerlybeen securedthrough middlemen in the Low Coun- triesand Portugal.Thus, the new tradesdeveloped in close con- nectionwith one another,but separatelyfrom the Merchant Adventurers'cloth export business which had previouslydominated Englishcommerce. And this is understandableonly in lightof theirconstant focus on orientalimport commodities and their relativeinability to provideexport markets for cloth. Elizabethan commercialentrepreneurship was, in organizationand personnel, largelydiscontinuous with that of the MerchantAdventurers be- cause it had verydifferent goals. It is in thissense that the Eliza- bethanexpansion should be seen to markan importantbreak and a new stagein the developmentof Englishtrade. The searchfor the spicesand gold of the East was the primary motivationfor the founding of the Muscovy Company (1553-1555), thefirst major step in theprocess of expansion.3 It is true,neverthe- less,that Merchant Adventurers composed a significantproportion of the originalinvestors in the Muscovyjoint stock, possibly one- third.And theywere probably attracted to thisventure, at leastto someextent, by the hope of discoveringnew areas of demandfor theircloth exports.4 Even then,it is worthnoting that most of these Adventurersdid nottake an activepart in theCompany's decision- making,remaining passive investors in its jointstock. In theevent, CenturyEngland," Economic History Review, X (1940), 106-107,as well as C. D. Ramsay, English Overseas Trade During the Centuriesof Emergence (London: Macmillan,1957), pp. 20-30; Peter Ramsey,Tudor Economic Problems(London: VictorGollancz, 1963), pp. 68ff.See also Ralph Davis, "England and the Mediter- ranean"in Essays in the Economicand Social Historyof Tudorand StuartEngland, ed. F. J. Fisher (Cambridge: The UniversityPress, 1961), pp. 117ff. 3 T. S. Willan,The EarlyHistory of the RussiaCompany, 1553-1603 (Manchester: The UniversityPress, 1956), pp. 2-3. 4 T. S. Willan, The MuscovyMerchants of 1555 (Manchester:The University Press,1953), p. 24. 364 Brenner Russia provedto be incapableof absorbinglarge quantitiesof Englishcloth. Englishcloth exportsto Russia over the period before1620 did not exceed 2500 clothsper annum,less than 3 percentof England'stotal cloth exports." And in thisrespect, the othereastern markets were only a littlemore profitable. Once the eastwardexpansion reached the Levantin 1581,it be- camefirmly focused on imports, and the Merchant Adventurers seem forthe most part to havewithdrawn from active participation. The centralaim of the Levant commerce was to bringback spices,silks, and currants;cloths appear to havefunctioned in thistrade largely as a mediumof exchange.In the late 1590's,cloth exports to the Levantaveraged around 7000-8000 cloths per annum,or perhaps ?50,000-&60,000in value.6In comparison,already by the later 1580'sit was not unheardof forEnglish merchants to bringin ?70,000 of Levant commoditiesin a singleshipment,7 while an- nual Levant imports,by value, more than doubled its exports throughoutthe period.8By the 1620's and early 1630's,Levant importsseem to have grownimpressively, reaching ?352,263 in 1630 and ?212,186 in 1634, accordingto the officialvaluations (probablyunderstated)." Meanwhile, cloth exports stagnated, re- mainingsteady at late sixteenth-centurylevels. In 1621, Lionel Cranfieldsingled out the Levant commerceas particularlyto blame forthe nation'sunfavorable balance of trade."Upon the customsbooks we shall see," he said, "thatthe TurkeyCompany hurtsit morethan the East India Company.They now give two partsin moneyand thethird in commodities."10Of course, the East 5 B. E. Supple,Commercial Crisis and Change 1600-1642 (Cambridge: The Uni- versityPress, 1959), p. 258. 6 Davis, "England and the Mediterranean,"p. 120; Supple, CommercialCrisis, p. 258; AstridFriis, Alderman Cockayne's Project and the Cloth Trade (London: OxfordUniversity Press, 1927), pp. 70-1, n.2. 7 T. S. Willan,"Some Aspectsof the EnglishTrade with the Levant in the Six- teenthCentury," English Historical Review, LXX (1955), 407. 8 David Fischer,"The Developmentand Organizationof