The Cambridge Modern History. R. Nisbet Bain
show how the rising power of capitalism broke down the medieval forms of commercial and industrial regulation; the capitalists, who could not dominate them, migrated to places where they were free from old-fashioned restrictions. Capital offered facilities for the planting of new industries, the development of trade, and the opening up of mines and other natural advantages; so that the means lay at hand for promoting material progress of every kind. Hence new questions of economic policy came to the front. The efforts of traders were no longer confined to retaining exclusive commercial rights; but they began to consider how the various resources within a given area might be developed, so that by the interaction of different interests the greatest material prosperity might be attained in the community as a whole. We have already seen that in the fifteenth century the French monarchs had come to be directly interested in the welfare of the trading as well as in that of the landed classes; and at this period some of the German princes were becoming alive to the necessity of paying attention to all the different elements in the community. Other influences were at work elsewhere which tended to the growth of a new economic system; many of the cities of Italy and of Germany had become great territorial Powers, and, with a keen eye to business, they were endeavouring to devise schemes of policy which should enable them to reap the greatest advantage from their acquisitions.
It is of course true that many European cities had from the earliest period of their development had landed possessions and agricultural interests, and that the burgesses had enjoyed rights in respect of tillage and pasturage. But the questions which arose under these old circumstances were very different from those which presented themselves to citizens ruling over a large province and controlling the development of a considerable territory. Several of the cities of Italy and of the Rhineland had attained to great political importance in the early part of the fourteenth century; in some cases they were successful in military operations and extended their domain by conquest; in others the power of some city promised protection and attracted neighbours to commend themselves to a civic superior; in other instances land temporarily assigned to some town as a pledge for money borrowed was permanently transferred, when the borrower proved quite unable to repay his debt. In these various ways civic control came to be exercised over considerable areas, and civic authorities were concerned in regulating a large territory, with its distinct and conflicting interests, in such a way as to produce the best results for the commonwealth as a whole.
The great Italian towns, which were the seats of manufactures, had considerable difficulty in obtaining a sufficient food-supply for the very large population which had been attracted to them, or had grown up within their walls. Venice was forced to control the agricultural produce of her own district, and to prevent all other towns, such as Ancona, Ferrara and Bologna, from competing with her in Lower Italy, the district from which she obtained corn, eggs, and other produce; to purchase these commodities, the neighbouring towns were compelled to frequent the Venetian market. Florence and Milan, Bern and Basel, Ulm and Strassburg had alike to give close attention to the question of food-supply, and pursued a similar object, though with such modifications as the special circumstances of each town might suggest.
There was a marked contrast between the expedients adopted by the Venetians and those which commended themselves to the Florentines. The merchant princes of Florence bought large estates in Tuscany, and devoted themselves to agriculture. The conditions of the rural population were such that capitalist farming could be easily introduced; serfdom had entirely disappeared in this neighbourhood, and money dealings permeated the whole fabric of rural society; but agriculture cannot have been a very profitable investment. The policy of the city was that of providing cheap food for the consumer; export was forbidden, and the price at which corn might be sold was fixed by a tariff. Free access was given to food-stuffs imported from abroad, so that the 1 farmer was not only restricted in his operations, but was obliged to:’| contend with foreign competitors in the home markets. There is reason! to believe that this policy must have pressed with great severity on the rural population; a maximum was fixed for the wages of labour; and the terms of their contracts were such that the loss from bad seasons fell on the cultivating tenants rather than the proprietor. The depression of the rural inhabitants in the interest of the consumers was disastrous; but many communities besides Florence were tempted to pursue this policy. It seemed as if the peasant could be forced to carry on the work of tillage, whatever pressure was put upon him; there was little danger of his giving up rural occupations altogether, while the advantage of cheap food to an industrial and trading community was obvious.
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