Hanseatic League declined in power - What if the confederation had endeavored expanding in America?

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Abdul Goatherd

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Or the desperation of refugees starting over while the civil war that drove them from their homes is still going on around them. The nouveau riche part is true enough for the second generation (post 12 year truce) but I don't think it applies to the first (1584-1609).

Antwerp was the richest place on earth before 1576. They all came with their fortunes to Amsterdam, which was little more than provincial entrepot before that. The amount of money the "Brabantsche" refugees had and poured into their trading companies and fleets in the 1590s was absolutely insane. It far outstripped anything the much larger kingdoms of France or England or even the Spanish empire had seen. 1598 was the banner year - fifteen separate Dutch trading fleets headed out to Asia, each fleet larger in size, with more ships, men and laden with more silver and gold bullion, than anybody else could muster. It blew everybody away, and set off a cascade of pamphlets across England, France, etc. puzzling over how the poor little Dutch suddenly got so rich (and how little sense they had to pour all that treasure into those fleets, convinced the Dutch must be bankrupting their entire country - and their neighbors - that there couldn't possibly be a single silver coin left behind in the Low Countries. Little did they realize...)

Now, if the Brabantsche had moved en masse to Hamburg or Bremen, the story might be different.
 
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Barsoom

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Antwerp was the richest place on earth before 1576. They all came with their fortunes to Amsterdam, which was little more than provincial entrepot before that. The amount of money the "Brabantsche" refugees had and poured into their trading companies and fleets in the 1590s was absolutely insane. It far outstripped anything the much larger kingdoms of France or England or even the Spanish empire had seen. 1598 was the banner year - fifteen separate Dutch trading fleets headed out to Asia, each fleet larger in size, with more ships, men and laden with more silver and gold bullion, than anybody else could muster. It blew everybody away, and set off a cascade of pamphlets across England, France, etc. puzzling over how the poor little Dutch suddenly got so rich (and how little sense they had to pour all that treasure into those fleets, convinced the Dutch must be bankrupting their entire country - and their neighbors - that there couldn't possibly be a single silver coin left behind in the Low Countries. Little did they realize...)

Now, if the Brabantsche had moved en masse to Hamburg or Bremen, the story might be different.
OK, yes, maybe "desperate" is a bit of an overstatement. But then so is "nouveau riche" as these people were rich before they fled. My comment goes back to this part of your previous post:
There are things that maybe required the flexibility and boldness of nouveau riche upstarts.
We agree that the Dutch around 1600 showed flexibility and boldness, the question is from which circumstance these attitudes derived. I think the fact that the Antwerp traders were uprooted and had to restart their businesses is a big part of the answer. Don't you agree?
 

Abdul Goatherd

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OK, yes, maybe "desperate" is a bit of an overstatement. But then so is "nouveau riche" as these people were rich before they fled. My comment goes back to this part of your previous post:

We agree that the Dutch around 1600 showed flexibility and boldness, the question is from which circumstance these attitudes derived. I think the fact that the Antwerp traders were uprooted and had to restart their businesses is a big part of the answer. Don't you agree?

Well, they're certainly riche, and quite nouveau arrivals as far as the locals are concerned. :p

Anyway, that's not really the point I wanted to emphasize. My original point about nouveau riche was actually referring to the Dutch towns which were relative newcomers, and (with a couple of exceptions) had been deliberately shut out of the Hansa commercial networks for eons. Hansa is Old Money, Dutchies is New Money.

That said, I am not so sure that even a Brabantsche influx could jolt the archaic Hansa. By way of example, when Flanders was in revolt in the 1560s, the English woollen trade was re-routed into Hamburg. It was a great opportunity for Hamburg, and indeed all the Hansa, but the rest of the Hansa got all upset and forced Hamburg to eject them. They just weren't flexible, nor alert to new possibilities. The Hansa were rooting hard for the Spanish to crush the Dutch revolt for no other reason than to restore the status quo ante. They just couldn't think of it any other way.
 

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Well, they're certainly riche, and quite nouveau arrivals as far as the locals are concerned. :p

Anyway, that's not really the point I wanted to emphasize. My original point about nouveau riche was actually referring to the Dutch towns which were relative newcomers, and (with a couple of exceptions) had been deliberately shut out of the Hansa commercial networks for eons. Hansa is Old Money, Dutchies is New Money.

That said, I am not so sure that even a Brabantsche influx could jolt the archaic Hansa. By way of example, when Flanders was in revolt in the 1560s, the English woollen trade was re-routed into Hamburg. It was a great opportunity for Hamburg, and indeed all the Hansa, but the rest of the Hansa got all upset and forced Hamburg to eject them. They just weren't flexible, nor alert to new possibilities. The Hansa were rooting hard for the Spanish to crush the Dutch revolt for no other reason than to restore the status quo ante. They just couldn't think of it any other way.
I'd say putting the point where Holland became Nouveau Riche around the fall of Antwerp is way too late. In 1441 the Hollanders (without Flemish support, but also without Flemish opposition) had already cracked open the Baltic against Wendish-Hanseatic opposition (being such a mess, most of the Hansa was neutral and some of it supported Holland). In 1411 the Prussians already tried to embargo Holland in Danzig (and failed, though through external interference).

When in 1451-57 the Hansa got into a squabble with Flanders, trade already shifted to Holland, as well - supporting the point that in the mid-15th century Holland was already a key point in trade, rather than the fall of Antwerp being the sudden start.

And the first travels to the East, while no doubt also funded by Antwerpian riches, were not their exclusive domain; the first journey of the 'compagnie van Verre' was funded by a group of men living in Amsterdam, but coming from Kampen, Antwerp, Amsterdamx5, Haarlem, Dranouter (a village in West Flanders), and some I can't find the source for. so 2x Flanders/Antwerp, 6x Holland, 1x other-Dutch. The Brabantsche Compagnie evidently had more southern influence, but still started with Amsterdammers too; the Veersche compagnie was another Antwerp-influenced one, in its case with Zeelandic support.

And of course the publications of secret Portuguese maps was done by a Hollander (van Linschoten), and the de Houtman brothers who had done additional spying were also from Holland (Gouda, in their case).

So to sum back up: Antwerp falling helped a lot, but Holland by itself was already nouveau riche.
 
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How come Antwerp was so rich back then, was it the wool trade or what?

I guess the fall of Antwerp relates to Spanish shenanigans?
The wool trade is certainly part of how it became so rich, the county of Flanders got much of its wealth from it since the 12th century. Flanders was one of the most densely urbanized regions north of the Alps and home to a highly productive domestic cloth industry and it branched out from there. Its trade shifted to Antwerp when its own ports silted up, it was the nearest port and friendly as Brabant and Flanders had been in a political union since the 14th century (along with Holland and other neighboring counties). Antwerp had a protected port at the point where the Scheldt river becomes salty and subject to tides, it has easy transport along the river into Flanders and Brabant, easy access to the mouths of the Meuse and Rhine, only a short sea voyage to London, Paris, Bremen and Hamburg.

Of course some of these points also apply to Holland, access to the mouths of the Meuse and Rhine and the distance to London, Paris, Bremen and Hamburg being about the same. Holland urbanized somewhat later than Flanders and Brabant and didn't catch up to them economically before the revolt but it was pretty similar nonetheless. Its big advantage was that it was much better protected from invasions. Rivers and marshes means fewer access points which could be guarded by fortresses or even temporarily flooded.

Yes, Antwerp fell to Spanish troops. Part of a civil war in the Habsburg Low Countries that eventually resulted in the northern counties breaking away and forming the Dutch Republic. The split was no one's intention, it was a revolt against centralization, taxation and religious repression which affected all 17 provinces. Flanders was actually one of the most rebellious at the start. The Habsburgs managed to win back the loyalty of most southern provinces and reconquered Flanders but failed to overcome the rebels in Holland. As the rebels controlled the major fortress cities just south of the lower Meuse, the frontline stabilized along what is now the border between the Netherlands and Belgium.
 

Abdul Goatherd

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I'd say putting the point where Holland became Nouveau Riche around the fall of Antwerp is way too late. In 1441 the Hollanders (without Flemish support, but also without Flemish opposition) had already cracked open the Baltic against Wendish-Hanseatic opposition (being such a mess, most of the Hansa was neutral and some of it supported Holland). In 1411 the Prussians already tried to embargo Holland in Danzig (and failed, though through external interference).

When in 1451-57 the Hansa got into a squabble with Flanders, trade already shifted to Holland, as well - supporting the point that in the mid-15th century Holland was already a key point in trade, rather than the fall of Antwerp being the sudden start.

And the first travels to the East, while no doubt also funded by Antwerpian riches, were not their exclusive domain; the first journey of the 'compagnie van Verre' was funded by a group of men living in Amsterdam, but coming from Kampen, Antwerp, Amsterdamx5, Haarlem, Dranouter (a village in West Flanders), and some I can't find the source for. so 2x Flanders/Antwerp, 6x Holland, 1x other-Dutch. The Brabantsche Compagnie evidently had more southern influence, but still started with Amsterdammers too; the Veersche compagnie was another Antwerp-influenced one, in its case with Zeelandic support.

And of course the publications of secret Portuguese maps was done by a Hollander (van Linschoten), and the de Houtman brothers who had done additional spying were also from Holland (Gouda, in their case).

So to sum back up: Antwerp falling helped a lot, but Holland by itself was already nouveau riche.

Nouveau but not quite yet riche. Granted, there was a longer period of gradual ascent, but Dutch interloping was comparable to English interloping. Leaks in the system, but no transition yet. The fall of Antwerp was key. Up until then, the southern cities were much richer and far more important than the north. It was the fall of Antwerp which killed southern commercial dominance and ensured its firm transition north.

On Van Linschoten & De Houtman, the curious thing is, of course, that this could have also been done by the Hansa. There was a lot of German money invested and involved in the Portuguese trade to Asia. German factors and German crews (notably gunners) were a constant on Portuguese India runs. Any one of them could have sat down and written it up.

What is missing is, of course, is the element of motivation. The Dutch revolt was accompanied by a Spanish blockade that cut the Low Countries from access to the Portuguese spice trade. This was particularly painful for the Antwerper families, who made their fortunes over the previous century in it. They had the money, the distribution networks and the experience in the spice trade. If they are excluded from receiving the Portuguese spice hauls, then they must go to Asia and get it themselves. Petrus Plancius, the major agitator for this, was a Brabantsche refugee.

Do not put too much weight on the names. Adventurer consortiums are always shadowy, their named heads are usually chosen for political connections rather than reflecting actual investment.


How come Antwerp was so rich back then, was it the wool trade or what?

I guess the fall of Antwerp relates to Spanish shenanigans?

Everything converged on Antwerp.

Bruges's outlet to the sea had silted up and a lot of Flemish trade (including the wool trade) had to go through the Scheldt and thus Antwerp. The Bourse at Antwerp was set up c.1460, serving as a permanent "fair" for the cloth industry.

But perhaps more important was the international networks converging there after 1500. Most Portuguese spices from Asia were delivered directly to Flanders, initially Bruges (to be picked up by the Hansa distribution networks and sold across northern Europe). But the silting led the Portuguese to move their depository to Antwerp by the 1510s. They also brought all their West African gold there to swap for German silver, which was carried up to Antwerp by internal river routes (Portuguese needed silver, not gold, for the Asian trade, and Central European silver, dominated by a handful of German families, was one of the world's major sources).

Then came the Spanish - needing gold to pay for the Spanish army in Flanders (they don't take silver), Spanish agents (i.e. Genoese) set up Antwerp as the keystone of Spanish state financial circuit. So Spanish silver coming from America (after touching Seville) would be shipped to Genoa, part of it traded in Piacenza (for Venetian gold from Alexandria), but much of it was carried overland up the "Spanish road" via Besancon to Antwerp, to exchange for the gold running loose there. To soak up the gold and prevent it from leaving Hapsburg dominions, the Genoese in Antwerp organized an elaborate financing circuit system. They used bills of exchange to clear balance of payments between the Low Countries and Italy, and sold Spanish state bonds (juros) in Antwerp, bought locally with gold and re-paid in American silver at a future date. Antwerp was thus the key center in financing the Hapsburg-Spanish empire during the 16th C.

So all the great international streams of wool, cloth, spices, gold and silver converging on to one little town catapulted Antwerp overnight into the world's major commercial & financial center. And once it was there, that's where all great merchants went to strike trade deals with each other, and where everyone who needed financing went - including all the European monarchs. Except the French. French royal agents were naturally excluded from Antwerp, which was a Hapsburg center. France tried to erect a rival system in Lyons, using Florentine agents, hoping to siphon off some of that stream, but it paled by comparison. The English were also almost entirely dependent on Antwerp, despite the efforts to Sir Thomas Gresham to break that dependence by erecting the "Royal Exchange" in London.

So Antwerp ruled the world for much of the 16th Century. It all came crashing down when the Spanish army of Flanders, their pay in arrears, mutinied and went on a violent rampage and sacked Antwerp in 1576. (fault of stupid Spanish nationalists - annoyed at the fat profit margins the Genoese were making, the Cortes of Castile forced the King of Spain to default on Genoese lenders in 1575, prompting the Genoese to suspend their financial circuit, which led directly to the army going unpaid). The army rampage went on for eleven days, destroying a third of the city, driving out streams of refugees.

Although devastating, the sack was not immediately fatal. Philip II backtracked and restored the Genoese. Naturally, all trade was re-routed elsewhere for a while, so the city was unable to recover quickly. Then came the blow of the Spanish trade embargo. Antwerp joined the Union of Utrecht in 1579, and was thus in "rebellion". So when Spain acquired the Portuguese empire in 1580, the spice teat was shut off. The final nail was 1585, when the city was conquered by Alexander Farnese (Duke of Parma). Although the Spanish troops were kept in line this time, Farnese ordered all Protestant residents in Antwerp to wind up their affairs and leave. More than half the city (c.100,000) ended up emigrating north to Holland. Although Antwerp was restored as part of the Hapsburg financial circuit, it was definitely over now.

To ensure it would never revive, the northern Dutch, being such helpful folks, promptly set up a naval blockade of the Scheldt in 1585, preventing trade ships from reaching Antwerp, a blockade which they continuously maintained for the next two centuries (until 1795).
 
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Avernite

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On an unrelated note, this thread made me look up the initial capitals of the Dutch VOC and English EIC.

At foundation the Dutch had 6 million guilders, the British 70 thousand pounds, which equals about 700 thousand guilders.
 

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Nouveau but not quite yet riche. Granted, there was a longer period of gradual ascent, but Dutch interloping was comparable to English interloping. Leaks in the system, but no transition yet. The fall of Antwerp was key. Up until then, the southern cities were much richer and far more important than the north. It was the fall of Antwerp which killed southern commercial dominance and ensured its firm transition north.

On Van Linschoten & De Houtman, the curious thing is, of course, that this could have also been done by the Hansa. There was a lot of German money invested and involved in the Portuguese trade to Asia. German factors and German crews (notably gunners) were a constant on Portuguese India runs. Any one of them could have sat down and written it up.

What is missing is, of course, is the element of motivation. The Dutch revolt was accompanied by a Spanish blockade that cut the Low Countries from access to the Portuguese spice trade. This was particularly painful for the Antwerper families, who made their fortunes over the previous century in it. They had the money, the distribution networks and the experience in the spice trade. If they are excluded from receiving the Portuguese spice hauls, then they must go to Asia and get it themselves. Petrus Plancius, the major agitator for this, was a Brabantsche refugee.

Do not put too much weight on the names. Adventurer consortiums are always shadowy, their named heads are usually chosen for political connections rather than reflecting actual investment.




Everything converged on Antwerp.

Bruges's outlet to the sea had silted up and a lot of Flemish trade (including the wool trade) had to go through the Scheldt and thus Antwerp. The Bourse at Antwerp was set up c.1460, serving as a permanent "fair" for the cloth industry.

But more important was the international networks converging there after 1500. Most Portuguese spices from Asia were delivered directly to Flanders, initially Bruges (to be picked up by the Hansa distribution networks and sold across northern Europe). But the silting led the Portuguese to move their depository to Antwerp by the 1510s. They also brought all their West African gold there to swap for German silver, which was carried up to Antwerp by internal river routes (Portuguese needed silver, not gold, for the Asian trade, and Central European silver, dominated by a handful of German families, was one of the world's major sources).

Then came the Spanish - needing gold to pay for the Spanish army in Flanders (they don't take silver), Spanish agents (i.e. Genoese) set up Antwerp as the keystone of Spanish state financial circuit. So Spanish silver coming from America (after touching Seville) would be shipped to Genoa, part of it traded in Piacenza (for Venetian gold from Alexandria), but much of it was carried overland up the "Spanish road" via Besancon to Antwerp, to exchange for the gold running loose there. To soak up the gold and prevent it from leaving Hapsburg dominions, the Genoese in Antwerp organized an elaborate financing circuit system. They used bills of exchange to clear balance of payments between the Low Countries and Italy, and sold Spanish state bonds (juros) in Antwerp, bought locally with gold and re-paid in American silver at a future date. Antwerp was thus the key center in financing the Hapsburg-Spanish empire during the 16th C.

So all the great international streams of spices, gold and silver converging on to one little town catapulted it overnight into the world's major financial center. And once it was there, that's where everyone who needed financing went - including all the European monarchs. Except the French. French were naturally excluded from Antwerp, which was a Hapsburg center. France tried to erect a rival system in Lyons, using Florentine agents, hoping to siphon off some of that stream, but it paled by comparison. The English were also almost entirely dependent on Antwerp, despite the efforts to Sir Thomas Gresham to break that dependence by erecting the "Royal Exchange" in London.

So Antwerp ruled the world for much of the 16th Century. It all came crashing down when the Spanish army of Flanders, their pay in arrears, mutinied and went on a violent rampage and sacked Antwerp in 1576. (fault of stupid Spanish nationalists - annoyed at the fat profit margins the Genoese were making, the Cortes of Castile forced the King of Spain to default on Genoese lenders in 1575, prompting the Genoese to suspend their financial circuit, which led directly to the army going unpaid). The army rampage went on for eleven days, destroying a third of the city, driving out streams of refugees.

Although devastating, the sack was not definitely fatal. Philip II backtracked and restored the Genoese. Naturally, all trade was re-routed elsewhere for a while, so it was unable to recover quickly. Then came the blow of the Spanish trade embargo. Antwerp joined the Union of Utrecht in 1579, and was thus in "rebellion". So when Spain acquired the Portuguese empire in 1580, the spice teat was shut off. The final nail was 1585, when the city was conquered by Alexander Farnese (Duke of Parma). Although the Spanish troops were kept in line this time, Farnese ordered all Protestant residents in Antwerp to wind up their affairs and leave. More than half the city (c.100,000) ended up emigrating north to Holland. Although Antwerp was restored as part of the Hapsburg financial circuit, it was definitely over now.

To ensure it would never revive, the northern Dutch, being such helpful folks, promptly set up a naval blockade of the Scheldt in 1585, preventing trade ships from reaching Antwerp, a blockade which they continuously maintained for the next two centuries (until 1795).

Great write-up. But there is one thing I think is missing still - the aristocracy. What the great trading cities of Antwerp, Amsterdam, and the rest of the Low Countries managed to do was attract the support of the surrounding landed aristocracy through the gravitational pull of their wealth. The Dutch aristocracy went on to become stake-holders in the thoroughly commercialised cities. The Netherlands thus became the first capitalist society (as opposed to a merchant-capitalist city integrated in a society pre-capitalist as a whole). Of course, the very same wealth which propelled the cities was the total sum of profits squeezed by Spain from its colonial ventures and funnelled to Antwerp and the Spanish Netherlands.

This is the big difference to my mind between the cities of the Low Countries and the Baltic was the Hanseatic cities of the North were never able to create this kind of alliance between the urban burghers and the rural Junkers of the German and Polish Baltic provinces. To my mind, it would require a lot of interstellar bats for the infamously arch-reactionary Junkers to transform into a Hanseatic equivalent of the English and Dutch aristocracies.
 

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Great write-up. But there is one thing I think is missing still - the aristocracy. What the great trading cities of Antwerp, Amsterdam, and the rest of the Low Countries managed to do was attract the support of the surrounding landed aristocracy through the gravitational pull of their wealth. The Dutch aristocracy went on to become stake-holders in the thoroughly commercialised cities. The Netherlands thus became the first capitalist society (as opposed to a merchant-capitalist city integrated in a society pre-capitalist as a whole). Of course, the very same wealth which propelled the cities was the total sum of profits squeezed by Spain from its colonial ventures and funnelled to Antwerp and the Spanish Netherlands.

This is the big difference to my mind between the cities of the Low Countries and the Baltic was the Hanseatic cities of the North were never able to create this kind of alliance between the urban burghers and the rural Junkers of the German and Polish Baltic provinces. To my mind, it would require a lot of interstellar bats for the infamously arch-reactionary Junkers to transform into a Hanseatic equivalent of the English and Dutch aristocracies.
If we're looking at that, though, I don't think the Netherlands were strictly first; Venice and Genoa had been there and done roughly that (especially Venice), becoming merchant countries rather than merchant cities.

The Netherlands of course still did it more, by not being strictly 1 city plus accessories (but more 1.5 county and accessories).
 

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If we're looking at that, though, I don't think the Netherlands were strictly first; Venice and Genoa had been there and done roughly that (especially Venice), becoming merchant countries rather than merchant cities.

The Netherlands of course still did it more, by not being strictly 1 city plus accessories (but more 1.5 county and accessories).

I actually disagree here. The development of 17th-18th century Venetian society actually pretty fascinating - in short, it went the other direction. As the republic expanded and added various bits and pieces to its mini empire in North-Eastern Italy, The Balkans, and Greece, the city itself became less and less focused on trading, transforming into a manufacturing centre instead. This not just because of the positive pull of Empire, but equally important was the negative push force exerted by Dutch and English traders arriving in merchant ships covered with cannons. After this, the urban Venetian bourgeoisie lost its commercial roots and started intermingling with the rural aristocracy of its Italian possessions on the mainland ever more closely. But crucially, the outcome was not that the rural aristocracy became commercialised, rather the leading urban strata of the republic instead became ever more "feudalised". This is the crucial difference between Venice and The Netherlands.

[Edit] Of course urban elite of The Dutch Republic also started adopting aristocratic pretension (just look at the evolution of the House of Orange), but despite this the country still remained fundamentally commercial.
 
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Barsoom

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Great write-up. But there is one thing I think is missing still - the aristocracy. What the great trading cities of Antwerp, Amsterdam, and the rest of the Low Countries managed to do was attract the support of the surrounding landed aristocracy through the gravitational pull of their wealth. The Dutch aristocracy went on to become stake-holders in the thoroughly commercialised cities. The Netherlands thus became the first capitalist society (as opposed to a merchant-capitalist city integrated in a society pre-capitalist as a whole). Of course, the very same wealth which propelled the cities was the total sum of profits squeezed by Spain from its colonial ventures and funnelled to Antwerp and the Spanish Netherlands.

This is the big difference to my mind between the cities of the Low Countries and the Baltic was the Hanseatic cities of the North were never able to create this kind of alliance between the urban burghers and the rural Junkers of the German and Polish Baltic provinces. To my mind, it would require a lot of interstellar bats for the infamously arch-reactionary Junkers to transform into a Hanseatic equivalent of the English and Dutch aristocracies.
Your analysis holds, I think, mainly because the higher echelons of feudal society where largely absent in the Dutch Republic. Start with the fact that the dukes of Burgundy eliminated the competition. Charles V and Philip II created new counts but they didn't have territorial authority at the previous scale, the biggest units with territorial autonomy of some kind were lordships. That's one level of the feudal pyramid eliminated before the revolt even started.

The next higher level were nominal dukes and counts, and one prince, with interests and connections in multiple provinces (though still only possessing territorial rights in specific lordships). Three of the leading families at this level actually played a prominent part in the early revolt (they stood to lose most from the introduction of a central professionalized bureaucracy) but two of them reverted back to Spain, along with most of the high nobility. The house of Orange was the only family at this level to remain in the north and they of course grabbed the position of stadhouder; they did not integrate nicely with the commercial city elites but fought them politically and often militarily.

Quite a few noble houses were snuffed out, decimated, or lost their feudal rights and possessions during the civil war. So the lower echelons too were thinned out. Those that remained were often in desperate need of sources of revenue. In the absence of a royal court with jobs reserved for them (the stadhouders providing only a paltry substitute), they intermarried with the city patrician class, sold off estates and titles, and even sometimes dabbled in commerce. More so in the country Holland; in other provinces the aristocracy actually retained much more their old lifestyle, exclusiveness and local influence. These aristocrats (along with the pirate faction in Zeeland) formed the backbone of the Orangist faction in the Staten-Generaal through their influence in the other provinces; they just didn't usually win control of policy because Holland paid most of the bills.
 

Barsoom

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To ensure it would never revive, the northern Dutch, being such helpful folks, promptly set up a naval blockade of the Scheldt in 1585, preventing trade ships from reaching Antwerp, a blockade which they continuously maintained for the next two centuries (until 1795).
belgaimage-163186886-full-1160x720.jpg

Blockading the economic interests of people to the south of us is a great Dutch political tradition honored even today!
 

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Nouveau but not quite yet riche. Granted, there was a longer period of gradual ascent, but Dutch interloping was comparable to English interloping. Leaks in the system, but no transition yet. The fall of Antwerp was key. Up until then, the southern cities were much richer and far more important than the north. It was the fall of Antwerp which killed southern commercial dominance and ensured its firm transition north.

On Van Linschoten & De Houtman, the curious thing is, of course, that this could have also been done by the Hansa. There was a lot of German money invested and involved in the Portuguese trade to Asia. German factors and German crews (notably gunners) were a constant on Portuguese India runs. Any one of them could have sat down and written it up.

What is missing is, of course, is the element of motivation. The Dutch revolt was accompanied by a Spanish blockade that cut the Low Countries from access to the Portuguese spice trade. This was particularly painful for the Antwerper families, who made their fortunes over the previous century in it. They had the money, the distribution networks and the experience in the spice trade. If they are excluded from receiving the Portuguese spice hauls, then they must go to Asia and get it themselves. Petrus Plancius, the major agitator for this, was a Brabantsche refugee.

Do not put too much weight on the names. Adventurer consortiums are always shadowy, their named heads are usually chosen for political connections rather than reflecting actual investment.




Everything converged on Antwerp.

Bruges's outlet to the sea had silted up and a lot of Flemish trade (including the wool trade) had to go through the Scheldt and thus Antwerp. The Bourse at Antwerp was set up c.1460, serving as a permanent "fair" for the cloth industry.

But more important was the international networks converging there after 1500. Most Portuguese spices from Asia were delivered directly to Flanders, initially Bruges (to be picked up by the Hansa distribution networks and sold across northern Europe). But the silting led the Portuguese to move their depository to Antwerp by the 1510s. They also brought all their West African gold there to swap for German silver, which was carried up to Antwerp by internal river routes (Portuguese needed silver, not gold, for the Asian trade, and Central European silver, dominated by a handful of German families, was one of the world's major sources).

Then came the Spanish - needing gold to pay for the Spanish army in Flanders (they don't take silver), Spanish agents (i.e. Genoese) set up Antwerp as the keystone of Spanish state financial circuit. So Spanish silver coming from America (after touching Seville) would be shipped to Genoa, part of it traded in Piacenza (for Venetian gold from Alexandria), but much of it was carried overland up the "Spanish road" via Besancon to Antwerp, to exchange for the gold running loose there. To soak up the gold and prevent it from leaving Hapsburg dominions, the Genoese in Antwerp organized an elaborate financing circuit system. They used bills of exchange to clear balance of payments between the Low Countries and Italy, and sold Spanish state bonds (juros) in Antwerp, bought locally with gold and re-paid in American silver at a future date. Antwerp was thus the key center in financing the Hapsburg-Spanish empire during the 16th C.

So all the great international streams of spices, gold and silver converging on to one little town catapulted it overnight into the world's major financial center. And once it was there, that's where everyone who needed financing went - including all the European monarchs. Except the French. French were naturally excluded from Antwerp, which was a Hapsburg center. France tried to erect a rival system in Lyons, using Florentine agents, hoping to siphon off some of that stream, but it paled by comparison. The English were also almost entirely dependent on Antwerp, despite the efforts to Sir Thomas Gresham to break that dependence by erecting the "Royal Exchange" in London.

So Antwerp ruled the world for much of the 16th Century. It all came crashing down when the Spanish army of Flanders, their pay in arrears, mutinied and went on a violent rampage and sacked Antwerp in 1576. (fault of stupid Spanish nationalists - annoyed at the fat profit margins the Genoese were making, the Cortes of Castile forced the King of Spain to default on Genoese lenders in 1575, prompting the Genoese to suspend their financial circuit, which led directly to the army going unpaid). The army rampage went on for eleven days, destroying a third of the city, driving out streams of refugees.

Although devastating, the sack was not definitely fatal. Philip II backtracked and restored the Genoese. Naturally, all trade was re-routed elsewhere for a while, so it was unable to recover quickly. Then came the blow of the Spanish trade embargo. Antwerp joined the Union of Utrecht in 1579, and was thus in "rebellion". So when Spain acquired the Portuguese empire in 1580, the spice teat was shut off. The final nail was 1585, when the city was conquered by Alexander Farnese (Duke of Parma). Although the Spanish troops were kept in line this time, Farnese ordered all Protestant residents in Antwerp to wind up their affairs and leave. More than half the city (c.100,000) ended up emigrating north to Holland. Although Antwerp was restored as part of the Hapsburg financial circuit, it was definitely over now.

To ensure it would never revive, the northern Dutch, being such helpful folks, promptly set up a naval blockade of the Scheldt in 1585, preventing trade ships from reaching Antwerp, a blockade which they continuously maintained for the next two centuries (until 1795).

Did this complex system develop according some grand plan, or was it more an organic where system grew when mutually supporting things were happening at the same time?
 

Abdul Goatherd

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Did this complex system develop according some grand plan, or was it more an organic where system grew when mutually supporting things were happening at the same time?

It was organic, but not completely without planning. The system was actually a little more complex and had a few more steps than I made it out. But the Genoese seemed to know what they were doing and timing it carefully.

I am not sure the Hapsburgs ever understood it - converting silver into gold probably sounded like alchemy to them, and the Genoese probably never explained the full details to them. But Spanish state finances relied on it. It is revealing that when the Genoese finally went bankrupt in 1627, the Hapsburgs couldn't find someone else to reproduce the system.
 
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Samitte

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I suggested earlier: Hansa = 40+cities

The Hanse, *Hanseatic League* is an English fossil, there was no league, there were *attempts* at it in the 16th century but these failed. Were groups of merchants who worked together to make a profit. The Hanse was a network of up to 70 larger towns and 100-130 smaller towns. The Hanse was a network of merchants using Middle Low German as their lingua franca, operating out of towns. The towns were not part of the Hanse, the merchants were. A Hanseatic town is a town which has burghers who are part of the Hanse, not the town itself. The Hanse was traders acting as a group, they were literate, practiced tight quality control, shared information with one another, bartered with larger states as a group for collective privileges, relied on the good reputation of the network as a whole, and thus had lower costs and could make more money. Who was part of the Hanse varied over time, merchants from some towns left due to conflicts with another group, or because of events in their town or the polity the town was part of.

The Hanse did in fact participate in the trade with the Americas. The merchants of for example Bremen, Hamburg, and Danzig did link their networks into the North Atlantic trade. The start of the decline of the Hanse as a group has nothing to do with Protestantism or the Age of Discovery. Their decline started with the famines of the early 14th century followed by climate change and the Black Death. Even during the upwelling in the late 14th, early 15th century, piracy and powerful competition meant that they lost their edge.
 
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Abdul Goatherd

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Their decline started with the famines of the early 14th century followed by climate change and the Black Death. Even during the upwelling in the late 14th, early 15th century, piracy and powerful competition meant that they lost their edge.

Um, your timing seems to be a bit off. You have them already declining before they got a chance to ascend. The 14th Century was their century. The first Hansa Diet was during the Black Plague. They achieved control of the Danish Sound in 1370, and established their control over both seas after that. Their decline only begins in the 15th C., and really only after 1440s.
 

Samitte

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Um, your timing seems to be a bit off. You have them already declining before they got a chance to ascend. The 14th Century was their century. The first Hansa Diet was during the Black Plague. They achieved control of the Danish Sound in 1368, and established their control of both seas after that. Their decline only begins in the 15th C., and really only after 1440s.

Hanse scholarship puts their economic heyday before the famines, black plague, as their formation and was directly tied to the Commercial Revolution which started in the 9th 11th century. (Oops, not sure where my brain was there) What you are talking about is the upwelling I am speaking of. It might have become a revival if not for their removal Brugge, but because of that the downward trend picked right back up. The Diets are just a more official version of what was already happening - information sharing and attaining collective priviliges. They also tried to do legislature but in the end it was up to the towns to decide what to do with that.

EDIT: Oh god I just checked the wiki article for the Hanse. Absolute garbage.

Also, technically I should not say decline, but transition into something else.
 
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