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I SL A M AN D C APIT ALIS M A CKN O W LED GM EN TS N O TES S ELEC T B IB LIO GRA PH Y For H en ry , J a ved , M . J ., a nd S ughosh 3 TH E C O M PETIT IO N O F C A P IT A LS S tru ggle s f o r C om merc ia l D om in an ce f ro m t h e T w elf t h t o E ig h te en th C en tu rie s B YZA N TIU M : T H E S U BOR DIN ATIO N O F G R EEK C A P IT A L I n C onsta n tin ople th e e arly m odern w orld in herit e d a n “ u rb an m onste r,” 1 b u t o ne w hose tr a je cto ry h ad i n volv ed sh arp f lu ctu atio n s o v er t h e c e n tu rie s , w it h a h is to ry g oin g b ack , o f c o urse , t o la te a n tiq u it y ( u nlik e m eg acit ie s lik e C air o a n d B ag hdad ). O n t h e e v e o f it s c o nqu est b y t h e O tto m an s in 1 453, t h e c it y ’s p o pu la tio n h ad s ta b iliz e d a ro und s e v en ty t h ousa n d, 2 b u t a t it s e arly -B yza n tin e p eak in th e s ix th c e n tu ry it h ad b een p ro bab ly w ell o ver h alf a m illio n, a n d a t t h e e n d o f t h e t w elf th c e n tu ry w as a g ain s o m ew here in th e r e g io n o f h alf a m illio n, s a y , f o ur h undre d th ousa n d.

3 B etw een th ose p eak s c a m e a d ow ntu rn r e ach in g a l o w p o in t, f o rty t h ousa n d t o s e v en ty t h ousa n d, i n t h e e ig hth c e n tu ry ( fo llo w in g a p la g ue in 7 47– 8), 4 a n d t h en a s u sta in ed r e n ew al o r e x p an sio n f r o m t h e n in th c e n tu ry d ow n t o t h e e n d o f th e tw elf th . A s th e p o lit ic a l b ase o f a n e m pir e , h ow ev er, th e m assiv e e x p an sio n o f th e in te rn al m ark et t h at o ccu rre d f r o m t h e n in th t o t w elf th c e n tu rie s w as t r u e n ot j u st o f t h e m etr o po lis b u t t o s o m e d eg re e o f t h e w hole e m pir e i n clu din g i t s v ario us s e co ndary u rb an c e n te rs a s w ell a s t h e i s la n ds.

5 W hat w as in p la y h ere w as a h uge co m mon m ark et , th e b ig gest in th e w orld in th e tw elf th c e n tu ry (if w e e x ce p t C hin a, o f c o urse ), a n d i t w as b o und t o e x ert c o nsid era b le f o rc e a s a c o m merc ia l m ag net.

C onsta n tin ople is s a n dw ic h ed b etw een t h e G old en H orn t o it s n orth a n d t h e S ea o f M arm ara t o t h e s o uth . I n t h e s ix th c e n tu ry , a s o ne s c h ola r h as a rg ued c o nvin cin gly , t h e p la g ue o f 5 42 t r ig gere d a m ajo r r e lo ca tio n o f b u sin ess an d re sid en ce to th e so uth ern (M arm ara ) co ast, b eca u se b o die s w ere b ein g d um ped in th e se a a n d a n y d um ped in th e G old en H orn w ould n ot h av e b een w ash ed a w ay .

6 T he G old en H orn h ad b een a b an doned w ell b efo re t h e l a te s e v en th c e n tu ry 7 a n d i t w as t h e s o uth c o ast t h at w as m ore a ctiv ely u se d in th e se v en th to te n th c e n tu rie s.

8 T he su sta in ed e x p an sio n o f th e n in th to t w elf th c e n tu rie s, h ow ev er, s a w a s u cce ssio n o f I ta lia n c it y -sta te s s ta rtin g t o t r a d e w it h t h e e m pir e i n a b ig w ay , a n d it w as e sse n tia lly t h eir p re se n ce in C onsta n tin ople t h at r e v it a liz e d t h e G old en H orn in to t h e m ajo r c o m merc ia l h ub t h at i t b eca m e f r o m t h e e le v en th c e n tu ry d ow n t o e arly O tto m an t im es 9 a n d t h en a g ain , w it h th e r e n ew ed c o lo niz a tio n o f P era ( G ala ta , o n th e E uro pean s id e o f I sta n bu l) , in th e m ain p art o f t h e n in ete en th c e n tu ry . A ll t h e m ajo r I ta lia n c o lo nie s ( A m alf i, P is a , G en oa, V en ic e ) w ere c lu ste re d in th e lo w er G old en H orn , w it h je ttie s o r la n din g-sta tio ns ( sk ala i ) w here s e ag oin g v esse ls c o uld lo ad a n d u nlo ad . T he c it y c e n te r a n d th e s e ash ore s w ere “ h eav ily b u ilt u p w it h th re e- o r e v en f iv e-sto ry h ouse s.” 10 I n t h e t w elf th c e n tu ry C onsta n tin ople w as a d en se ly p o pu la te d c o sm opo lit a n c it y , s h arp ly d iv id ed in s o cia l te rm s, a n d p ro ne to v io le n t, u nco ntr o lla b le fir e s.

11 J o hn T ze tz e s b o aste d h e c o uld s p eak to lo ca l r e sid en ts in n o fe w er th an s e v en la n guag es, in clu din g P ersia n , A ra b ic , R ussia n , a n d H eb re w .

12 E usta th io s o f T hessa lo nik i c o unte d six ty th ousa n d “ L atin s” in th e c it y , 13 a n d a k een obse rv er, t h e J e w is h t r a v ele r B en ja m in o f T udela t e lls u s, “ T hey s a y t h at t h e t r ib u te o f t h e c it y a lo ne am ounts e v ery d ay to tw en ty th ousa n d f lo rin s, a ris in g f r o m r e n ts o f h oste lr ie s a n d b aza ars, a n d f r o m th e d utie s p aid b y m erc h an ts w ho a rriv e b y s e a a n d b y l a n d.” 14 I t w as t h e g re ate st c o m merc ia l c e n te r o f th e e aste rn M ed it e rra n ean , 15 w it h a p o pu la tio n b y t h en n ot f a r s h ort o f h alf a m illio n.

16 F in ally , e v en a s la te a s 1 192 th e n ativ e, G re ek , m erc h an ts o f C onsta n tin ople w ere a “ la rg e, in flu en tia l, r ic h ” g ro up.

17 Oik onom id ès c it e s th e e x am ple o f K alo m odio s, a b an ker w ho a ccu m ula te d a v ast fo rtu ne th ro ugh su cce ssfu l o pera tio ns i n l a rg e-sc a le t r a d e, f in an cin g c o m merc ia l t r ip s u nderta k en b y o th ers.

18 Yet th e m ost e x tr a o rd in ary f a ct a b o ut B yza n tin e c o m merc e f r o m th e e n d o f th e e le v en th c e n tu ry to th e t h ir te en th c e n tu ry a n d la te r w as t h e s e v ere d is c rim in atio n G re ek m erc h an ts w ere s u bje cte d t o v is - à-v is fo re ig n c o m petit o rs by th eir o w n s ta te . B y th e te rm s o f th e tr e aty o f 1 082, “ V en etia n m erc h an ts co uld b u y a n d s e ll i n e v ery p art o f t h e E m pir e , f r e e o f d uty o r c u sto m s e x am in atio n.” M an y p o rts w ere open ed a n d “ v ast te rrit o rie s m ad e a cce ssib le to th em f o r f r e e tr a d e.” 19 “ T hese p riv ile g es, r e n ew ed b y th e e m pero rs o f t h e t w elf th c e n tu ry . . . r e n dere d t h e V en etia n s v ir tu al m aste rs o f t h e c o m merc ia l lif e of t h e e m pir e .” 20 B y t h e t h ir te en th c e n tu ry , w hen t h e G en oese c a m e in to B yza n tin e e co nom ic lif e in a big w ay a n d s im il a r w id e-ra n gin g c o nce ssio ns w ere g ra n te d , “ Ita lia n m erc h an ts , w heth er G en oese o r Ven etia n s, b eca m e s o e n tr e n ch ed in C onsta n tin ople th at th ey c o ntr o lle d th e e co nom y o f th at c it y .” 21 And b y th e e n d o f th e th ir te en th c e n tu ry , th e is la n ds o f th e A eg ean (th e A rc h ip ela g o) w ere b ein g div id ed b etw een G en oese an d V en etia n co ntr o l, 22 th e A eg ean ’s east co ast b eco m in g th e h eart o f Gen oa’s m arit im e d om ain . G re ek m erc h an ts , m ean w hile , c o ntin ued to p ay a d uty o f 1 0 p erc e n t a n d Byza n tin e a cce ss to m ark ets in th e w est re m ain ed se v ere ly lim it e d . G re ek m erc h an ts ra re ly g ain ed acce ss t o I ta lia n m ark ets .

23 T he I ta lia n s d is c o ura g ed B yza n tin e e x p an sio n w est o f t h e P elo po nnese , 24 s o th at G re ek c a p it a l w as e ffe ctiv ely s h ut o ut o f t h e l o ng-d is ta n ce t r a d e.

25 A m ajo r u psh ot o f e n tr e n ch ed I ta lia n e co nom ic d om in an ce w as th e e n dem ic h ostilit y th at g re w u p betw een th e Ita lia n s a n d la rg e se cto rs o f th e lo ca l p o pu la tio n.

26 T he v io le n t c ru sa d er o ccu patio n o f Consta n tin ople i n 1 204 a n d t h e l o ng-sta n din g d iv is io n b etw een t h e c h urc h es d id n oth in g t o a b ate t h at, of c o urse . E very a tte m pt to b rin g th e tw o c h urc h es to geth er w as se en a s a “ n atio nal b etr a y al” a n d sp ark ed rio ts .

27 G re ek s liv in g in te rrit o rie s under L atin co ntr o l w ere lo oked dow n upo n as a “co nqu ere d p eo ple ” a n d s u ffe re d th e e co nom ic a n d s o cia l c o nse q u en ce s o f th at e v en to th e p o in t o f bein g d en ie d th e rig ht to h av e th eir o w n b is h ops.

28 “ T hey tr e ate d c it iz e n s lik e sla v es,” w ro te o ne tw elf th -c e n tu ry c h ro nic le r. “ T heir b o ld ness a n d im pu den ce in cre ase d w it h t h eir w ealt h u ntil t h ey n ot only d ete ste d t h e R om an s [ G re ek -sp eak in g B yza n tin es] b u t e v en d efie d t h e t h re ats a n d c o m man ds o f th e E m pero r.” 29 O n t h e o th er h an d, a s t h e le ft- w in g h is to ria n N ic o la s O ik onom id ès e m ph asiz e d , n one of t h is p re v en te d G re ek b u sin ess c ir c le s f r o m e n te rin g i n to p artn ersh ip s w it h I ta lia n c a p it a l. T here w as ex te n siv e c o lla b o ra tio n, a n d G re ek m erc h an ts e v en s o ught G en oese o r V en etia n n atio nalit y to e n jo y th e s a m e b en efit s .

The e m erg en ce o f a B yza n tin e c o m merc ia l “ m id dle c la ss” w as a r e m ark ab le f e atu re o f t h e e le v en th - ce n tu ry b o om in th e e co nom ic a n d c u lt u ra l lif e o f th e e m pir e , a n d it s m ost s tr ik in g p o lit ic a l o utc o m e was th e th re e d eca d es in th e m id dle o f th e c e n tu ry w hen a s tr ic tly a ris to cra tic m odel o f g overn m en t sp lit w id e o pen to a llo w th e p o pu la r c la sse s a n d c o m merc ia lly a ctiv e str a ta (lit e ra lly , “ th ose o f th e mark et p la ce ” ) acce ss, fo r th e fir st tim e ev er, to th e se n ate an d h ig her ad m in is tr a tio n.

30 N o le ss in te re stin gly , t h e s a m e r u le rs w ho b ro ught a b o ut t h is r e v olu tio nary c h an ge r e sp o nded t o t h e eco n om ic need s o f th e m id dle c la ss ( meso i ) b y a llo w in g fo r a c o ntr o lle d d ev alu atio n o f th e g old c o in ag e— a measu re not o f c ris is b u t o f t h e e co nom ic b o om r e fle cte d b y a g ro w in g d em an d f o r m ean s o f c ir c u la tio n an d p ay m en t as B yza n tiu m ’s m ark ets w ere b eco m in g m ore d eep ly in te g ra te d in to th e ex p an sio n occu rrin g in t h e w est.

31 W hat e m erg ed b rie fly in t h e e le v en th c e n tu ry w as a f a sc in atin g a llia n ce o f t h e ab so lu tis t p o w er w it h a m id dle c la ss h ostile to th e a ris to cra cy . It w as th is “ ca p it a lis t” d re am o f th e ele v en th c e n tu ry th at w as sh atte re d in 1 081/ 2 in th e v io le n t re actio n o f a str o ngly p ro -a ris to cra tic dynasty (th e K om nen oi) th at se t ab o ut cu rb in g th e g ro w in g afflu en ce an d p o w er o f th e G re ek merc a n tile c la ss b y a b o lis h in g “ all th e p riv ile g es th e b u sin essm en h ad ju st a cq u ir e d ” 32 a n d (ju st a s im po rta n t!) gra n tin g ex te n siv e co nce ssio ns to V en etia n ca p it a l, effe ctiv ely allo w in g a w hole sa le ta k eo ver o f B yza n tin e m ark ets b y I ta lia n m erc h an t c a p it a lis ts , w it h th e m ajo r e x ce p tio n o f th e B la ck Sea w hic h in a n y c a se fa ile d to a ttr a ct m uch a tte n tio n till th e la te r th ir te en th c e n tu ry . T he F re n ch Byza n tin is t L em erle d esc rib ed A le x io s I K om nen os’s ch ry so b u ll o f 1082 as a “m assiv e eco nom ic ca p it u la tio n,” th e p o in t b ein g th at th ough a B yza n tin e m erc h an t c la ss s u rv iv ed a n d c o ntin ued to b e activ e d ow n to th e e n d o f th e tw elf th c e n tu ry , it h ad lo st c o ntr o l o f th e e m pir e ’s m ark ets .

33 G oin g b y la te r e x p erie n ce , it is p o ssib le th at th e v ast m ajo rit y o f lo ca l m erc h an ts w ork ed a s b ro kers fo r th e Ita lia n f ir m s.

34 The la st tw o a n d a h alf c e n tu rie s o f th e B yza n tin e e m pir e (1 204– 1453) w ere c h ara cte riz e d b y th e ca ta str o ph e o f th e V en etia n o ccu patio n o f C onsta n tin ople , w hic h perm an en tly d is m em bere d th e em pir e a n d le ft t h e c it y it s e lf d ep le te d a n d im po veris h ed ; 35 b y f e ro cio us s tr u ggle s b etw een V en ic e a n d Gen oa f o r c o ntr o l o f t h e le ad in g t r a d e s e cto rs, o nce B yza n tin e r u le w as r e sto re d ( in 1 261) a n d G en oa esta b lis h ed a m ajo r p re se n ce th ro ugh it s allia n ce w it h M ic h ael V III P ala io lo gos (th ose str u ggle s eru pte d i n t h e l a st q u arte r o f t h e t h ir te en th c e n tu ry a n d b eg an w it h t h e B la ck S ea); b y t h e c iv il w ars o f th e 1 340s w hic h s a w th e a ris to cra cy c o nte n din g w it h r e b ellio ns b ase d o n a lo ose c o alit io n o f u rb an cla sse s th at in clu ded sa ilo rs an d lo ngsh ore m en ; b y th e aris to cra cy ’s d ecis iv e tu rn to co m merc ia l in vestm en t a s la n ded a sse ts w ere p ro gre ssiv ely lo st to th e O tto m an a d van ce fr o m th e m id dle o f th e fo urte en th c e n tu ry ; a n d f in ally , b y t h e o verw helm in g g rip t h at G en oa e v en m ore t h an V en ic e h ad n ow esta b lis h ed o ver m uch o f t h e t r u nca te d e m pir e ’s t r a d e. I n deed , t h e G en oese h ad c lo se r e la tio ns w it h t h e Turk s t h ro ughout t h e f o urte en th c e n tu ry , a n d a v ery s u bsta n tia l p art o f t h eir b u sin ess w as d one i n t h e Otto m an t e rrit o rie s.

36 The id ea th at a n cie n t a n d m ed ie v al w rit e rs w ere o bliv io us to th e p la y o f e co nom ic fo rc e s in th e his to ry o f th eir re sp ectiv e so cie tie s an d civ iliz a tio ns d oes n ot sta n d u p to sc ru tin y. T o B yza n tin e writ e rs lik e G eo rg e P ach ym ere s an d N ik ep h oro s G re g ora s it w as fa ir ly obv io us th at G en oa’s ex p lo it a tio n o f B yza n tin e m ark ets w as th e b asis o f h er p ro sp erit y .

37 P ach ym ere s h im se lf h as so m e re m ark ab le p assa g es o n t h e k in d o f d om in an ce t h e G en oese h ad e sta b lis h ed o ver t h e e m pir e a n d a b o ut th e fie rc e s tr u ggle s b etw een th em a n d th e V en etia n s fo r th e d om in atio n o f G re ek m ark ets . I n o ne o f th ese h e w rit e s, “ th e V en etia n s a n d th eir c o m munit y ( in C onsta n tin ople ) fo rm erly g re atly s u rp asse d th e G en oese i n w ealt h . . . b eca u se t h ey m ad e g re ate r u se o f t h e [ n arro w ] w ate rs ( th e A eg ean ) t h an d id th e G en oese a n d b eca u se th ey s a ile d a cro ss th e h ig h s e a ( th e M ed it e rra n ean m ore w id ely ) w it h lo ng sh ip s ( g alle y s), a n d th ey s u cce ed ed in g ain in g m ore p ro fit th an d id th e G en oese in tr a n sp o rtin g a n d ca rry in g w are s. B ut o nce th e G en oese b eca m e m aste rs o f th e B la ck S ea b y g ra n t o f th e e m pero r (M ic h ael III) a n d w it h a ll lib erty a n d fr a n ch is e , th ey b ra v ed th at [s e a], a n d sa ilin g in th e m id st o f win te r i n s h ip s o f r e d uce d l e n gth . . . t h ey n ot o nly b arre d t h e R om an s ( B yza n tin es) f r o m t h e l a n es a n d ware s o f t h e s e a bu t a ls o e clip se d t h e V en etia ns i n w ea lt h a nd m ate ria l [ g ood s] . B eca u se o f t h is t h ey c a m e to lo ok d ow n n ot o nly u po n th ose o f th eir o w n k in (o th er Ita lia n s) b u t als o u po n th e R om an s th em se lv es.” 38 H ere P ach ym ere s d esc rib es t w o b ro ad p erio ds in t h e c o m merc ia l h is to ry o f t h e e m pir e , in th e f ir st o f w hic h , a cco rd in g to h im , th e V en etia n s e sta b lis h ed th eir p rim acy th ro ugh a s tr a te g y o f ca b o ta g e o r c o asta l tr a d in g in th e p u re ly G re ek p arts o f th e e m pir e ( a B yza n tin e v ersio n o f w hat in In dia th e B rit is h w ould la te r c a ll th e “ co untr y tr a d e” ). T he G en oese la te r s u rp asse d th em b y m ak in g th e B la ck S ea th e re n ew ed fo cu s o f th eir c o m merc ia l o pera tio ns. T his str ik es m e a s a re m ark ab ly co here n t s u m mary o f o ver t w o c e n tu rie s o f B yza n tin e c o m merc ia l h is to ry .

In b o th c it ie s, V en ic e a s w ell a s G en oa, th e a ris to cra cy it s e lf w as v ery s u bsta n tia lly in volv ed in th e tr a d e w it h “ R om an ia .” 39 T he in vestm en ts a t s ta k e w ere th ose o f th e le ad in g fa m ilie s in b o th c e n te rs.

But c o m merc ia l c a p it a l w as s till w id ely d is p erse d a m ong th e alb erg hi . O n th e G en oese sid e, th e six le ad in g fa m ilie s acco unte d fo r 29 perc e n t of all in vestm en t, a deg re e of co nce n tr a tio n sc a rc e ly co m para b le w it h t h e m uch h ig her l e v els c h ara cte ris tic o f l a te r c e n tu rie s.

40 I n ca .

1170 t h e V en etia n s h ad vastly m ore c a p it a l tie d u p in B yza n tiu m th an a n y o f th eir c o m petit o rs. T hey h ad a s tr o nger h old o n th e i s la n ds, a n d t h is w as e x te n siv e b y t h e s e co nd q u arte r o f t h e t w elf th c e n tu ry .

41 When th e G en oese fir st so ught to e sta b lis h th em se lv es in C onsta n tin ople , th eir n ew ly e sta b lis h ed qu arte rs w ere re p eate d ly atta ck ed an d ev en d em olis h ed — in 1 162 b y a m ob co nsis tin g m ain ly o f Pis a n s, th en a g ain in 1 170 b y th e V en etia n s th em se lv es, a n d a th ir d tim e, in A pril 1 182, in a d re ad fu l lo ca l p o gro m a g ain st a ll Ita lia n s (e x ce p t th at th e V en etia n q u arte r la y v aca n t a t th is tim e).

42 O n a ll th ese v ario us o cca sio ns, c la im s fo r c o m pen sa tio n w ere s u bm it te d b y th e m ain a g grie v ed p artie s, a n d fr o m th ese o ne g ets a t le ast a c ru de im pre ssio n o f th e s c a le o f th eir r e sp ectiv e in vestm en ts . G en oese estim ate s o f t h e l o sse s t h ey s u sta in ed i n 1 162 a n d 1 182 r e sp ectiv ely s u ggest t h at i n t h e p re v io us d eca d e or s o th ere h ad b een v ery r a p id e n ric h m en t o f G en oese m erc h an ts tr a d in g to B yza n tin e m ark ets .

43 I t se em s e n tir e ly lik ely th at th e d is ru ptio n o f V en etia n b u sin ess fo llo w in g th e r e p ris a ls a g ain st th em in 1171 w ork ed s tr o ngly i n G en oa’s f a v or.

That t h e L atin c o nqu est o f C onsta n tin ople w as l a rg ely a f u nctio n o f t h e e n dem ic r iv alr y b etw een t h e tw o m ain co m merc ia l po w ers is sh ow n by th e fa ct th at G en oa w as not offic ia lly re p re se n te d in Con sta ntin op le d urin g t h e o ccu patio n.

44 V en ic e ’s t e rrit o ry in t h e c it y e x p an ded s u bsta n tia lly s o on a fte r th e c o nqu est.

45 T he re sto ra tio n o f B yza n tin e ru le in 1 261 tu rn ed th e ta b le s d ra m atic a lly a s G en oa beca m e t h e d om in an t e co nom ic p o w er i n C onsta n tin ople a n d s e cu re d a cce ss t o t h e B la ck S ea, w here a co lo ny w as e sta b lis h ed a t C affa t h at w as t h riv in g b y t h e 1 280s.

46 T he w hole p erio d f r o m 1 270 t o 1 3 40 sa w s u bsta n tia l G en oese i n vestm en t. I n 1 348, a cco rd in g t o t h e c h ro nic le r G re g ora s, r e v en ues f r o m t h e cu sto m s c o lle cte d a t G en oa’s c o lo ny a t P era w ere a lm ost se v en tim es b ig ger th an th e c o lle ctio ns a t Consta n tin ople .

47 T hese f e ll s h arp ly in th e la te r f o urte en th c e n tu ry , w hic h s a w a p ro lo nged r e ce ssio n th at o nly lif te d in th e e arly p art o f th e fif te en th c e n tu ry . C om petit io n w as s h arp er th an e v er in th ese deca d es, s in ce t h ere w ere n o f e w er t h an t h re e “ co lo nia l w ars” b etw een V en ic e a n d G en oa f o r c o ntr o l of t h e A eg ean , t h e u psh ot o f w hic h w as a d iv is io n, a “ d e f a cto c a rv e-u p,” o f t h e s e a b etw een t h em .

48 Thus th e “ co lo niz a tio n” o f th e B yza n tin e e m pir e p ro bab ly c o unts a s th e m ost s tr ik in g e x am ple o f a “co lo nia l- sty le ” eco nom y befo re co lo nia lis m . The para lle l has been dra w n re p eate d ly , an d Oik onom id ès h im se lf w ould s p eak o f t h e “ eco nom ic im peria lis m o f w este rn m erc h an ts .” 49 A n a tte m pt in th e m id dle o f th e fo urte en th c e n tu ry to r e esta b lis h g re ate r p arit y in th e d utie s p aid b y G re ek a n d Ita lia n m erc h an ts le d to a v io le n t re actio n w hic h fo rc e d th e em pero r Jo hn V I K an ta k ouze n os to re v erse h is d ecis io n.

50 ( T he G en oese r e acte d b y b u rn in g B yza n tin e m erc h an t s h ip s a n d w are h ouse s!) The t r e aty o f 1 352 i n clu ded a c la u se “ se v ere ly l im it in g t h e a cce ss o f B yza n tin e m erc h an ts t o T an a a n d th e S ea o f A zo v.” 51 T he meso i w ho w ere a ctiv e in t h e r e b ellio ns o f t h e 1 340s in clu ded a la y er o f G re ek ca p it a l t h at b o th r e se n te d i t s s u bo rd in atio n t o m ore p o w erfu l c o m petit o rs and d ep en ded o n t h em f o r i t s ow n s u rv iv al. I n T hessa lo nik i, th e m ost r a d ic a l fa ctio n, th ose k now n a s th e Z ealo ts , e v en c o ntr o lle d th e c it y ’s g overn m en t f o r s o m e s e v en o r e ig ht y ears a n d w ere le d , in p art a t le ast, b y t h e c it y ’s h arb o r work ers.

52 A ngelik i L aio u a rg ued th at th e c iv il w ar w as “ an a b o rtiv e e ffo rt to c re ate a sta te q u it e dif fe re n t f r o m w hat h ad e x is te d in B yza n tiu m , o ne w here t h e i n te re sts o f t h e c o m merc ia l e le m en t w ou ld b e pa ra m ou nt .” 53 In a n y c a se , b y th e la tte r h alf o f th e c e n tu ry a m ore su bsta n tia l k in d o f in volv em en t em erg ed a s m em bers o f th e G re ek a ris to cra cy c o m pen sa te d fo r fa llin g in co m es fr o m th eir e sta te s b y tu rn in g t o l a rg e-sc a le t r a d e a n d b an kin g. A s O ik onom id ès s h ow ed , t h e h ig hest l e v els o f t h e a ris to cra cy were in volv ed in th is , 54 w it h th e n um ber o f a ris to cra ts in volv ed in tr a d e g ro w in g d ra m atic a lly . “ T he urb an u pper c la ss o f B yza n tiu m w as a t la st u nit e d in p u re ly c a p it a lis t a sp ir a tio ns,” h e w ro te , 55 a n d t h e pre v io us d is tin ctio n b etw een t h e meso i a n d t h e a ris to cra cy e v en tu ally d is a p peare d .

A f in al w ord . N one o f t h e le ad in g I ta lia n t r a d e c e n te rs t h at t r a d ed w it h B yza n tiu m s im ply r e p lic a te d th e p atte rn o f th eir c o m petit o rs. I n th e e le v en th c e n tu ry , A m alf i ( w here , a g ain , th e a ris to cra cy w ere key d riv ers o f e x te rn al in vestm en t, u nlik e th e o th er so uth ern n obili t ie s) 56 h ad sp ecia liz e d in lu xu ry im po rts f r o m C onsta n tin ople f o r m ark ets in R om e a n d N ap le s, in te g ra tin g it s t r a d e w it h t h e s o uth ern Med it e rra n ean b y u sin g th e g old fr o m th e S ah ara a cq u ir e d in th e M ag hre b p o rts a n d in E gypt (in ex ch an ge fo r g ra in , tim ber, lin en clo th , an d so o n) to fin an ce p u rc h ase s fr o m th e B yza n tin es. In Consta n tin ople th e A m alf it a n s w ere b u yers, n ot se lle rs.

57 In th e e le v en th a n d tw elf th c e n tu rie s, th e Ven etia n s h ad tr a d ed in th e lo ca l p ro duce o f th e G re ek m ain la n d a n d G re ek is la n ds a n d o f s o uth ern Ita ly , in it e m s s u ch a s o liv e o il, c h eese , w in e, w heat, r a w s ilk , a n d r a w c o tto n. A bo ut s ix ty p erc e n t o f Ven ic e ’s tr a d e w it h th e e m pir e is s a id to h av e b een tr a n sa cte d in G re ece .

58 S outh ern C ala b ria w as a majo r p ro duce r o f r a w s ilk 59 a n d t h is m ust a ls o h av e r e ach ed m an ufa ctu rin g c e n te rs s u ch a s T heb es in Ven etia n s h ip s. O liv e o il c a m e f r o m t h e P elo po nnese .

60 A V en etia n b y t h e n am e o f V it a le V olt a n i, w ho se ttle d in G re ece in th e 1 160s, w as sa id to h av e “ d om in ate d th e o il m ark et in C orin th , S parta a n d Theb es.” 61 F or t h eir p art, t h e G en oese c o m bin ed t h e b u lk t r a d es o f t h e B la ck S ea r e g io n, P hokaia , a n d Chio s ( g ra in , a lu m , le ath er, c o tto n, e tc .) w it h th e im po rta tio n o f e x p en siv e fa b ric s, “ m an y d if fe re n t ty pes o f E uro pean c lo th ,” 62 t h e e x p o rt o f A nato lia n c a rp ets , 63 R ussia n f u rs, 64 a n d s o o n.

VEN IC E T O P O R TU GAL Unlik e t h e r u le rs o f B yza n tiu m , i t w as M am lu k p o lic y n ot t o i n te rv en e i n t h e c o nflic ts b etw een V en ic e an d G en oa. I n 1 294 t h e c o m merc ia l b attle b etw een t h em h ad s p ille d o ver i n to t h e f a r e n d o f t h e e aste rn Med it e rra n ean . T he S yria n ch ro nic le r al- J a za ri n ote s th at in 1294 “w it n esse s re p o rte d th at la rg e num bers o f F ra n ks c a m e b y s e a to A yas fo r p u rp o se s o f tr a d e a n d th at th ey b elo nged to tw o n atio ns ( ta if a ). O ne l o t w ere c a lle d V en etia n s, t h e o th er G en oese .” A s a cts o f h ostilit y e sc a la te d b etw een t h em , th ey g ot i n to a b it te r f ig ht a n d “ o n o ne d ay a lo ne o ver 6 000 p eo ple w ere k ille d .” “ T he G en oese g ot t h e bette r o f t h e V en etia n s.” 65 A l- J a za ri w as d esc rib in g a c ru cia l p art o f t h e p re lu de t o t h e m ajo r w ar t h at dev elo ped tw o y ears la te r, w hic h b eg an a n d e n ded w it h th e V en etia n s se ttin g fir e to P era a n d th e Gen oese r e ta lia tin g b y m assa crin g l a rg e n um bers o f t h em i n t h eir q u arte r o f t h e c it y .

In th e tw elf th a n d th ir te en c e n tu rie s, th e e x p an sio n o f Ita lia n b u sin ess in te re sts in th e L ev an t ra n pa ra lle l to a r a p id g ro w th o f M uslim tr a d e a n d s e ttle m en t o n th e M ala b ar c o ast.

66 T he L ev an t c o tto n tr a d e w as d om in ate d b y t h e I ta lia n s, s o t h at b y t h e l a te f if te en th a n d s ix te en th c e n tu rie s “ in p eak y ears th e to ta l v olu m e o f V en etia n c o tto n im po rts fr o m a ll s o urc e s c o uld e x ce ed 4 ,0 00 to ns.” 67 T hey h ad su bsta n tia l in te re sts in th e L ev an tin e s u gar in dustr y , fo r e x am ple , in th e v illa g es a ro und T yre w here th e m ost im po rta n t s u gar p la n ta tio ns o f t h e S yro -P ale stin ia n c o ast p asse d in to V en etia n h an ds in 1 123 (b etw een t h e f ir st a n d s e co nd C ru sa d es).

68 W it h t h e f a ll o f A cre in 1 291, V en etia n s u gar in te re sts w ere re lo ca te d to th e is la n ds. In C ypru s in th e la te r fo urte en th an d fif te en th ce n tu rie s, th e C orn ers, a po w erfu l V en etia n f a m ily , b u ilt a t h riv in g e n te rp ris e i n s u gar.

69 I n 1 183 t h e S pan is h t r a v ele r I b n J u bay r sa w in num era b le lo ad s o f p ep per b ein g s h ip ped t o t h e S udan ese p o rt o f A ydhab a n d t r a n sp o rte d f r o m th ere in n um ero us ca ra v an s.

70 B are ly se v en y ears la te r, th e v alu e o f g oods e x p o rte d b y C hris tia n merc h an ts t r a d in g t h ro ugh t h e N ile p o rts w as e stim ate d t o b e “ w ell o ver 1 00,0 00 d in ars,” a n d t h is a t a tim e o f c o nsid era b le p o lit ic a l te n sio ns (S ala d in h ad c a p tu re d Je ru sa le m in 1 187).

71 T he n um ber o f merc h an ts f r o m t h e w est t r a d in g i n A le x an dria i n 1 216 w as ( a s I n ote d e arlie r) p u t a t t h re e t h ousa n d b y th e h is to ria n a l- M aq riz i.

72 I n ca .

1260 V en etia n s o urc e s in dic a te “ la rg e c o tto n s h ip m en ts fr o m A cre .” 73 Can dia i n V en etia n -c o ntr o lle d C re te b eca m e a m ajo r s p ic e m ark et i n t h e e arly f o urte en th c e n tu ry . T he su gar a n d c o tto n e x p o rte d t h ere f r o m A le x an dria w ere r e ex p o rte d t o I ta ly i n V en etia n g alle y s.

74 B y t h e mid dle o f t h e c e n tu ry t h e p ap ers o f t h e V en etia n n ota ry B re sc ia n o r e fle ct massiv e i m po rts o f I ta lia n a n d Fle m is h te x tile s in to C an dia , s o m eth in g th at w as d oubtle ss tr u e o f o th er V en etia n c o lo nie s.

75 B y th e en d o f t h e c e n tu ry t h e v olu m e o f I ta lia n b u sin ess h ad i n cre ase d d ra m atic a lly . I n vestm en ts c o uld r u n a s hig h a s 4 50,0 00 d in ars w it h t h e V en etia n s in t h e 1 390s, a n d b etw een 2 00,0 00 a n d 3 00,0 00 d in ars e v ery year b etw een 1394 an d 1400 in G en oa’s ca se . (T he C ata la n s ca m e th ir d w it h an an nual av era g e ca .

200,0 00.) 76 A nd b y th e fif te en th c e n tu ry w hen , a s B ra u del sa y s, “ V en ic e w as u nqu estio nab ly th e vig oro us h eart o f th e M ed it e rra n ean ,” 77 th an ks la rg ely to it s tr a d e w it h th e L ev an t, m erc h an t g alle y s wit h g oods w orth o ne m illio n d uca ts p lu s 4 00,0 00 i n c a sh w ere s a ilin g f r o m V en ic e f o r A le x an dria a n d Beir u t.

78 The L ev an t t r a d e w as t h e m id dle s e g m en t o f a c ir c u it t h at e x te n ded t o t h e p o rts o f M ala b ar in S outh In dia a n d b ey ond th em in to S outh east A sia . H ere th e g re at c o unte rp art to th e c ru sa d in g p erio d’s “cre atio n o f n um ero us L atin tr a d in g co lo nie s in th e N ear E ast w it h th eir o w n co nsu ls , h oste ls , ware h ouse s, m ark etp la ce s, a n d c h urc h es” 79 w as t h e e x p an sio n o f I sla m , w hic h , s im ila rly , b eg in s in t h e tw elf th c e n tu ry a n d r e ach es it s c o m merc ia l z e n it h in t h e f if te en th . T he o ld est r e lia b ly d ata b le m osq u e on th e M ala b ar c o ast w as fo unded in 1 124, a t M ad ay i.

80 B y th e e n d o f th e th ir te en th c e n tu ry M uslim se ttle m en ts w ere w ell e sta b lis h ed b o th th ere a n d o n th e C oro m an del c o ast, 81 r e fle ctin g a n e x p an sio n acro ss th e e n tir e w este rn h alf o f th e I n dia n O ce an . E ven in th e e arly th ir te en th c e n tu ry , it h as b een cla im ed , th e E ast A fr ic a n c o ast w as la rg ely Isla m ic , 82 a n d c e rta in ly b y th e e n d o f th e c e n tu ry th e ev id en ce fr o m K ilw a im plie s a “ v ery la rg e M uslim re sid en t p o pu la tio n.” 83 B y ca .

1331 Ib n B attu ta desc rib es a “ v ast n etw ork o f M uslim s a ll a ro und th e p erip h ery o f th e I n dia n O ce an .” 84 T hese w ere esse n tia lly c o m merc ia l n etw ork s d ra w n f r o m m an y d if fe re n t p arts o f t h e N ear E ast. C alic u t’s M uslim s who te n dere d th eir a lle g ia n ce to th e R asu lid su lt a n a l- A sh ra f II in 1 393 re fle cte d a m ult ip lic it y o f geo gra p h ic o rig in s, 85 a n d th e s a m e is s u ggeste d in B arb o sa ’s r e p o rt th at b y th e s e co nd d eca d e o f th e six te en th c e n tu ry t h ese c o sm opo lit a n m erc h an ts “ d ep arte d t o t h eir o w n l a n ds a b an donin g I n dia a n d i t s tr a d e,” 86 fo llo w in g th e d ra m atic a n d v io le n t w ay in w hic h th e P ortu guese m ad e th eir e n tr y in to th e In dia n O ce an tr a d e w it h V asc o d a G am a in sis tin g o n th e e x p u ls io n o f th e M uslim s fr o m C alic u t a n d bo m bard in g t h e t o w n w hen i t s r u le r r e fu se d .

87 That t h e c ru sh in g o f t h e V en etia n s p ic e m onopo ly w as t h e p re m ed it a te d g oal o f P ortu gal’s m arit im e ex p an sio n in th e fif te en th c e n tu ry c a n , o f c o urse , b e ru le d o ut. T he str a te g y o f A tla n tic e x p an sio n ev olv ed o nly g ra d ually .

88 T here w as, a s L uís F ilip e T hom az h as a rg ued , n o co h ere n t im peria l p ro je ct till th e la st tw o d eca d es o f th e fif te en th c e n tu ry a n d w hat h e c a lls th e “ ca lc u la te d im peria lis m ” o f a model th at w as “ im peria l, g lo baliz in g, a n d s ta te -d riv en .” 89 F ro m th e r e ig n o f D om F erd in an d ( 1 367– 83), P ortu guese r o yal p o w er h ad f o und i t s s tr o ngest s u ppo rt i n t h e p o pu la tio n o f t h e p o rts , 90 w here t h e Portu guese m erc h an t c la ss g re w in s tr e n gth .

91 B ut in th e p artn ersh ip th at e v olv ed o ver th e fo llo w in g ce n tu ry b etw een th e m onarc h y a n d p riv ate c a p it a l, th e sta te c a n sc a rc e ly b e d esc rib ed a s a p assiv e ag en t o f th e la tte r. F in an cia lly , it d ep en ded o n th e re so urc e s o f b ig L is b o n m erc h an ts lik e F ern ão Gom es ca .

1469 a n d, la te r, o f p o w erfu l s y ndic a te s o f G erm an a n d I ta lia n b u sin essm en , b u t it w as th e cro w n t h at b o th d ro ve a n d m onit o re d t h e p ro ce ss, a n d ( ju st a s im po rta n t) t h ere w as n ev er a n y “ cle ar- cu t d em arc a tio n b etw een th e fin an ce s o f th e S ta te an d it s co m merc ia l ca p it a l.” 92 A ll co m merc ia l ca p it a lis m s o f th e six te en th to e ig hte en th c e n tu rie s w ould c o m e to b e in ex tr ic a bly b ou nd u p w it h th e sta te , b u t i n P ortu gal’s c a se t h e r e la tio nsh ip w as p o sit e d a s i m med ia te . I t w as t h e c ro w n t h at w ould a ct as a m erc h an t c o m pan y o n th e w est c o ast o f I n dia , “ se ttin g u p fe it o ria s (tr a d in g p o sts , fa cto rie s) in vario us k ey p o rts , b u yin g u p p ep per, s p ic e s a n d o th er p re cio us c o m modit ie s, w hic h t h ey w ould s h ip t o Euro pe a n d s e ll t h ere a t a h uge p ro fit .” 93 The P ortu guese , o f c o urse , w ere q u it e c le ar w ho th eir c o m petit o rs w ere . T ry in g to c o nvin ce th e mem bers o f h is c o uncil o f th e n eed to c a p tu re a n d re ta in M ala cca , A lb u qu erq u e w ro te , “ S in ce w e gain ed c o ntr o l o f t h e M ala b ar p ep per t r a d e, C air o h as n ot r e ce iv ed a n y e x ce p t w hat t h e M osle m s h av e been a b le t o t a k e f r o m t h is r e g io n ( th e S tr a it s ) . . . I a m v ery s u re t h at, i f t h is M ala cca t r a d e i s t a k en o ut of t h eir h an ds, C air o a n d M ecca w ill b e c o m ple te ly l o st a n d no s p ic e s w ill g o t o t h e V en etia ns e x ce p t t h ose th at th ey g o to P ortu gal to b u y .” 94 T he ta rg et h ere , in 1 511, w as th e e n tir e R ed S ea ro ute , a c ir c u it dom in ate d b y a so rt o f m assiv e jo in t v en tu re b etw een V en etia n c a p it a l, C air o m erc h an ts , a n d th e su pplie rs in C alic u t. B ut m ovin g b ack alo ng th e ch ain , th e m ajo rit y o f h is ca p ta in s ag re ed w it h Alb u qu erq u e, it w as e sse n tia l t o “ ta k e t h e c it y o f M ala cca , to e x pel t h e M osle m s , a n d t o b u ild a f o rtr e ss th ere .” 95 P ortu gal’s “ co m merc ia l a n d re lig io us w ar a g ain st Isla m ” 96 o ccu pie d th e g re ate r p art o f a ce n tu ry a n d w as n ev er c o m ple te ly s u cce ssfu l, b u t i n C alic u t t h e e ffe cts o f h er i n tr u sio n w ere f e lt a lm ost im med ia te ly . A lr e ad y b y 1 507 o ne tr a v ele r, th e I ta lia n L udovic o d i V arth em a, w as w rit in g, “ C alic u t was r u in ed b y t h e K in g o f P ortu gal, f o r t h e m erc h an ts w ho u se d t o c o m e t h ere w ere n ot t h ere , n eit h er did th ey c o m e.” 97 I t w as C och in th at b eca m e P ortu gal’s e co nom ic b ase in th e r e g io n a n d th e b u lk o f Portu guese p ep per fr o m M ala b ar w as e x p o rte d fr o m th ere .

98 B y 1 512 A lb u qu erq u e w as te llin g K in g Man uel th at th e net v alu e o f s h ip m en ts fr o m I n dia w as n ow “ w orth a m illio n cru za d os .” 99 I f s o , th ese le v els w ere nev er su bse q u en tly su sta in ed . T he m ajo rit y of actu al cu lt iv ato rs w ere St. T hom as Chris tia n s.

100 P ep per w as so ld to th e P ortu guese fa cto ry in C och in by m erc h an ts fr o m th eir co m munit y a n d b y C och in J e w s.

101 A ppare n tly , t h e k in g h ad a sk ed o ffic ia ls t o d eal w it h C hris tia n a n d Hin du tr a d ers (N air s w ere u se d as b ro kers) “ an d to keep th e M uslim m erc h ants aw ay fr o m tr a d e activ it ie s .” 102 D om M an uel’s “ro yal ca p it a lis m ” 103 w as a cu rio us m ix tu re of m erc a n tilis m an d messia n is m 104 w here h ard head ed b u sin ess d ecis io ns an d a M ed it e rra n ean -sty le eco nom ic w ar w ere clo ak ed i n r e lig io us z e al a n d a g re at d eal o f b o th i g nora n ce a n d b ig otr y .

The habit u al u se o f f o rc e a s a n a cce p ta b le p art o f t h e c o m petit io n b etw een s u bsta n tia l blo cs o f c a p it a l was n ow , fo r th e fir st tim e in th e h is to ry o f eit h er se a, tr a n sp o se d fr o m a th eatr e w here it h ad flo uris h ed fo r c e n tu rie s (sin ce V en ic e ’s d ev asta tin g a tta ck o n C om acch io in 9 32, sa y ) to th e In dia n Oce an , w here it s m ajo r ta rg ets w ere th e p o w erfu l M uslim c o m merc ia l n etw ork s th at str a d dle d th e en tir e o ce an f r o m K ilw a a n d S ofa la in E ast A fr ic a t o S um atr a a n d t h e s o uth ern P hilip pin es. I n C och in it s e lf t h e p rin cip al m erc h an ts o f t h e p o rt ( M uslim c o nverts o f t h e M ara k kar f a m ily ) r e lo ca te d t o C alic u t by th e 1 520s, fo rc e d o ut b y w hat o ne h is to ria n c a lls a n “ atm osp h ere o f c o erc io n a n d v io le n ce .” 105 Ahm ad Z ay n a l- D in ’s la te s ix te en th -c e n tu ry h is to ry , Tuhfa t a l- m uja hid in , h as g ra p h ic d esc rip tio ns o f th e v io le n ce i n flic te d o n M ala b ar’s M uslim c o m munit ie s. H e w rit e s o f t h e b u rn in g o f t h e ja m i‘ m asji d i n Calic u t in 1 510, th e e arlie r d em olit io n o f th e C och in m osq u e, th e se iz u re o f sh ip s, d estr u ctio n o f pro perty , a n d s o o n. T here w as a ls o t h e r e p eate d p erso nal h um ilia tio n M uslim s w ere s u bje cte d t o , a n d of c o urse b lo odsh ed . Z ay n a l- D in h ad a n a cu te s e n se o f t h e h is to ry o f h is o w n lif e tim e, k now in g t h at th e a d ven t o f th e P ortu guese h ad b een r u in ous fo r th e p ro sp erit y o f M uslim c o m merc e in th e I n dia n Oce an . T he P ortu guese , h e w rit e s, h ad s o ught t o “ se cu re f o r t h em se lv es a mon op oly o f t h is t r a d e ” ( th e sp ic e t r a d e).

106 T hey h ad e sta b lis h ed t h em se lv es “ in t h e g re ate r p art o f t h e s e a p o rts o f t h is p art o f t h e world .” 107 T hey h ad ev en “ fo und th eir w ay to th e C hin ese em pir e , ca rry in g o n tr a d e in all th e in te rm ed ia te a n d o th er p o rts , in a ll o f w hic h th e c o m merc ia l in te re sts o f th e M uslim s h av e b een in co nse q u en ce c o nsig ned t o r u in .” T he P ortu guese “ re n dere d i t im possib le t h at a ny o th ers s h ou ld c o m pete wit h t h em ” i n t h e t r a d es t h ey s o ught t o d om in ate .

108 T he M uslim s o f M ala b ar h ad s e en t h e b u lk o f t h eir in te rn atio nal c o m merc e m assiv ely d is ru pte d a n d w ere le ft o nly w it h t h e c o astin g t r a d e o f I n dia . T hey had b eco m e “ im po veris h ed a n d w eak a n d p o w erle ss.” 109 There i s a f a sc in atin g r e fe re n ce i n t h ese p assa g es t o a s e lf - fin an cin g m odel t h at b eca m e c h ara cte ris tic not o nly o f P ortu gal’s tr a d e in A sia n w ate rs b u t, e v en m ore c ru cia lly , o f th e b ette r-o rg an iz e d D utc h ex p an sio n th at w ould la te r re p la ce it in th e se v en te en th ce n tu ry . T he P ortu guese m onarc h y w as ch ro nic a lly s h ort o f c a sh a n d s o ught t o s u sta in t h e E uro pean s id e o f it s m onopo ly o f t h e s p ic e m ark et by in volv in g th e b ig gest G erm an a n d I ta lia n c a p it a lis ts a s in vesto rs a n d e n co ura g in g g overn ors lik e Alb u qu erq u e to fin an ce th e ro yal sh are o f p u rc h ase s fr o m p ro fit s g en era te d b y P ortu guese tr a d in g wit h in A sia n m ark ets .

110 A t th e M ala b ar e n d, th ere w as n ev er a n y re al m onopo ly , sin ce e x p o rts to Lis b o n n ev er s e em to h av e e x ce ed ed a b o ut 4 0 p erc e n t o f th e to ta l o utp u t o f p ep per e v en in th e e arly six te en th c e n tu ry a n d fe ll d ra m atic a lly b y th e e n d o f th e c e n tu ry , w hen F ra n cis c o d a C osta r e lia b ly estim ate d th at o f a to ta l p ro ductio n o f 2 58,0 00 q u in ta ls , e x p o rts to P ortu gal w ere a m eag re tw en ty th ousa n d to th ir ty th ousa n d q u in ta ls .

111 I n 1 587 F erd in an d C ro n, C och in a g en t o f th e F uggers, w ro te th at a lt h ough ca . th re e h undre d t h ousa n d q u in ta ls o f p ep per w ere p ro duce d a n nually i n s o uth ern I n dia , only a v ery lit tle o f th is c a m e in to th e h an ds o f th e c o ntr a cto rs to b e ta k en to E uro pe.

112 T hom az h as arg ued th at “ P ortu guese c o m merc e in th e s ix te en th c e n tu ry d ev elo ped p re d om in an tly in th e I n dia n Oce an , ov er a n etw ork o f s h ort a nd m ed iu m r a ng e r o u te s w hic h a ctu ally e n co m passe d a lm ost e v ery c o ast of A sia . . . T he m ain r e aso n w hic h d ro ve t h e P ortu guese t o a p ply t h em se lv es t o t h e lo ca l t r a d e s e em s to b e th at th e C ap e ro ute to P ortu gal w as o fte n a lo se r.” 113 In sh ort, P ortu gal’s A sia n tr a d e c ro ss- su bsid iz e d t h e t r a d e t o L is b o n, s in ce o verh ead s w ere s o h ig h i n t h e l a tte r.

Pep per w as g ro w n o n lit e ra lly th ousa n ds o f g ard en s in M ala b ar.

114 T he P ortu guese s im ply d id n ot hav e th e lo gis tic a l s e t- u p to d eal w it h p ro duce rs d ir e ctly a n d c e rta in ly h ad n o w ay o f c o ntr o llin g th e pro duce rs.

115 T here fo re , p ric e d om in atio n h ad to b e e n fo rc e d th ro ugh a g re em en ts w it h th e ru le r o f Coch in a n d o th er l o ca l r u le rs. A l o w f ix ed p ric e w as v it a l t o t h e w hole e n te rp ris e a s k in g D om M an uel had c o nce iv ed t h is in it ia lly . I n 1 503 t h e p ric e o f a bh ar o f p ep per ( th at is , o f a b atc h o f ca .

166 k g) w as fix ed a t le ss t h an h alf t h e m ark et p ric e p re v ailin g in C alic u t t h re e y ears e arlie r.

116 P ric e s w ould r e m ain fix ed fo r d eca d es. B ut M ala b ar p ep per w as a h ig hly c o m petit iv e m ark et w it h o ver a d oze n r e g io nal ce n te rs w here m erc h an ts b o ught th e p ro duce w hole sa le . C om petit io n w as fie rc e in th ose m ark ets .

117 This acco unts fo r th e p u re ly th eo re tic a l n atu re o f th e P ortu guese m onopo ly , sin ce , as C esa re d e Fed eric i n ote d , p ro bab ly in th e 1 570s, th e b u lk o f g ood-q u alit y p ep per w as b ein g s h ip ped to th e R ed Sea b eca u se m erc h an ts c o nnecte d w it h th at tr a d e pa id m ore a nd g ot a b ette r q u alit y o f p ro d uce , “ cle an e an d dry an d bette r co ndit io ned .” 118 T his is th e esse n tia l re aso n beh in d th e re silie n ce of th e Med it e rra n ean r o ute t h at B ra u del c o nsta n tly d re w a tte n tio n t o .

119 If th e “ ro yal ca p it a lis m ” o f th e early six te en th ce n tu ry w as ev en tu ally ab an doned fo r a “ m ore str a ig htf o rw ard s e m i- A bso lu tis t c o nce p tio n o f t h e s ta te ’s r e la tio nsh ip t o t r a d e,” 120 P ortu guese c o lo nia l en te rp ris e , o r th e A sia n th ala sso cra cy th at fo rm ed it s c o re , b eca m e e v en s tr o nger a s a m ag net fo r a n ag glo m era tio n o f ca p it a lis t in te re sts th at is p ro bab ly b est d esc rib ed in H en ry B ern ste in ’s id ea o f “cla sse s o f c a p it a l.” A t th e to p w ere th e b ig gest G erm an a n d I ta lia n c a p it a lis t h ouse s ( th e W els e rs, Fuggers, H öch ste tte rs, A ffa it a d i, B arto lo m eo M arc h io nni, G io van ni R ovela sc a ) w ho co m bin ed in po w erfu l s y ndic a te s to fin an ce th e a ctu al e x p ed it io ns to I n dia , s u ch a s th e o ne in 1 505 in w hic h th e Wels e rs h ad a v ery s u bsta n tia l in vestm en t o f tw en ty th ousa n d cru za d os , o r a g re ed to h an dle s a le s in Euro pe, w it h p le d ges to b u y a stip u la te d q u an tit y o f p ep per a t a n a g re ed p ric e . B oth a rra n gem en ts were f r a u ght w it h t e n sio ns b o und u p w it h t h e v ola tilit y o f t h is m ark et, w it h t h e c ro w n q u it e c a p ab le o f re n eg in g o n co ntr a cts . F lo re n tin e m erc h an ts w ere w ell- e n tr e n ch ed in L is b o n an d m an y o f th em “fin an ce d a n d j o in ed t h e P ortu guese o n t h e e arlie st v en tu re s t o t h e I n die s d urin g t h e f ir st q u arte r o f t h e six te en th c e n tu ry .” 121 T he S outh G erm an c o m merc ia l h ouse s h ad s tr o ng o rg an iz a tio nal s tr u ctu re s a n d work ed th ro ugh ca rte l arra n gem en ts w it h o ne an oth er.

122 T hey “am asse d ca p it a l fa r b ey ond th e ca p ab ilit y of an y F lo re n tin e m erc h an t- b an ker,” 123 so th at ev en at th is ra re fie d le v el th ere w ere in te re stin g d if fe re n ce s. C onsid era b ly b elo w th ese g ia n t c a p it a lis ts w ere th e r ic h er ca sa d os o f C och in , se ttle rs o f P ortu guese o rig in , w ho a t v ario us tim es a cte d a s fin an cie rs to th e Esta d o a n d d om in ate d Coch in ’s co asta l tr a d e.

124 B etw een 1 570 an d 1 600 th e ca sa d os , “ a p o w erfu l m erc a n tile g ro up w it h co nsid era b le c a p it a l r e so urc e s,” “ v ir tu ally t u rn ed C och in in to o ne o f t h e b ig gest e n tr e p ô ts o f A sia .” 125 Their in te re sts ex te n ded all o ver th e In dia n O ce an .

126 H ow ev er, fr o m th e se co nd d eca d e o f th e se v en te en th c e n tu ry , th ere w as a m ass e x o dus o f ca sa d o tr a d ers f r o m C och in to th e o ppo sit e c o ast, a s th e la tte r p art o f th e s ix te en th c e n tu ry s a w d w in dlin g s u pplie s o f p ep per th an ks to m ass d is a ffe ctio n am ong S t. T hom as C hris tia n s w ho h ad s e en t h eir b is h op a rre ste d t w ic e ( a n d d ie i n R om e i n 1 569) a n d “b eg un t o c o opera te w it h t h e t r a d ers o f t h e g hat r o ute ” in r e ta lia tio n.

127 F in ally , M ala b ar’s o w n n ativ e Muslim s, th e M ap pila s, w ere a m ong th e “ la rg est fin an cie rs o f P ortu gal’s im peria l p ro je ct in A sia ” 128 an d w ere d oubtle ss a ctiv e in m uch o f th e tr a d e th at e sc a p ed P ortu guese c o ntr o l, th e v ast a m ounts o f pep per t h at c ro sse d t h e g hats t o m ak e i t s w ay t o t h e e ast c o ast, f r o m w here i t w as w id ely e x p o rte d .

In e co nom ic t e rm s, t h e f r a g ile b asis o n w hic h P ortu gal’s a rm ed t h ala sso cra cy r e ste d w as o bv io us t o mem bers o f it s é lit e . I n 1 563 th e O tto m an s o ffe re d th e P ortu guese a fr e e tr a d e a g re em en t, w it h th e la tte r b ein g g iv en th e r ig ht to “ esta b lis h tr a d in g h ouse s in B asra , C air o , a n d A le x an dria a n d to tr a d e fr e ely in a ll th e O tto m an -c o ntr o lle d p o rts o f b o th th e P ersia n G ulf a n d th e R ed S ea,” in r e tu rn fo r sim ila r fr e ed om s fo r O tto m an m erc h an ts to tr a d e th ro ughout th e In dia n O ce an , w it h th e rig ht to esta b lis h c o m merc ia l a g en cie s o f t h eir o w n “ in S in d, C am bay , D ab u l, C alic u t, a n d a n y o th er p o rt t h ey desir e d .” 129 A gain st th is q u it e re m ark ab le p ro po sa l o ne fid alg o is su ppo se d to h av e a rg ued , “ if th e Turk s w ere a llo w ed t o t r a v el f r e ely t o I n dia , a n d e sta b lis h f a cto rs, a n d t r a d e in m erc h an dis e w here v er th ey w is h ed , n ot o nly w ould Y our M aje sty ’s o w n p ro fit s s u ffe r g re atly , b u t t h e r e st o f u s w ould b e l e ft co m ple te ly e m pty h an ded , b eca u se all o f t h e b u sin ess [ h and le d b y t h e P ortu guese ] w ou ld i m med ia te ly f a ll to t h e T urk s .” T here w as a c le ar r e fe re n ce h ere to P ortu guese priv a te c a p it a l. H e w en t o n to s a y , “ A s fo r [th e sta te m onopo ly in ] p ep per an d o th er co ntr o lle d sp ic e s, th is w ould als o b e th re ate n ed b y allo w in g th e T urk s to e sta b lis h fa cto rs in I n dia . Even n ow , w hen th ey h ave n ot b een a llo w ed to o p en ly co m pete a g ain st th e P ortu guese , it is k now n th at th ey co nduct a tr a d e in se cre t, ca rry in g sp ic e s to Horm uz, t o B asra , a n d t o B en gal, P eg u, C hin a, a n d o th er la n ds, a n d e sp ecia lly t o t h eir o w n m ark ets , desp it e th e g re at ris k s in volv ed . T hus, [if a llo w ed to o pera te fr e ely , th eir tie s w it h ] lo ca l M uslim s would le a ve th em e v en b ette r in fo rm ed a nd b ette r o rg aniz e d , su ch th at b y m ean s o f th e [R ed S ea a n d Persia n G ulf ] t h ey c o uld s e n d a s m uch [ p ep per] a s t h ey w an te d , and b eco m e m aste rs o f t h e l io n ’s s h are o f th e t r a d e in s p ic e s .” 130 H ere it w as a n e n tr e n ch ed n etw ork o f tr a d in g c o m munit ie s th at w as s e en a s th e big gest p o te n tia l “ co m petit iv e a d van ta g e” t h e O tto m an s w ould h av e i f c o m merc e w as c o m ple te ly f r e e, th at i s , n ot d ete rre d b y t h e p erm an en t t h re at a n d a ctu al u se o f v io le n ce f r o m t h e P ortu guese s id e.

131 In h is g re at His to ry o f I ta ly , F ra n ce sc o G uic cia rd in i s a w P ortu gal’s b re ak in g o f th e V en etia n s p ic e monopo ly a s “ th e m ost m em ora b le t h in g t h at h as h ap pen ed in t h e w orld f o r m an y c e n tu rie s.” 132 T his was w rit te n la te in t h e 1 530s a n d w as a r e m ark ab ly a ccu ra te a sse ssm en t, n ot o nly b eca u se c o m merc ia l po sit io ns th at V en ic e h ad b u ilt u p o ver ce n tu rie s w ere (m om en ta rily ) p lu nged in to d ep re ssio n a n d dra stic a lly a ffe cte d b y t h e n ew t r a d e r e g im e, 133 b u t m ore o bv io usly b eca u se P ortu gal’s o pen in g o f th e Atla n tic r e co nfig ure d t h e w hole s h ap e o f c o m merc ia l c a p it a lis m a s t h e w orld h ad k now n it t ill t h en . I t open ed th e w ay f o r a n ew c a p it a lis m w hic h w ould s o on b e r e fle cte d in th e c o m merc ia l d om in an ce o f th e D utc h in t h e s e v en te en th c e n tu ry a s w ell a s E ngla n d’s e x p an sio n in t h e s a m e c e n tu ry . I n 1 519 t h e Ven etia n s w ere p erfe ctly a w are o f P ortu gal’s d ev asta tin g im pact o n th e L ev an t p ep per tr a d e, a n d f o r th e n ex t te n y ears th ey w ere to ta lly a t th e m erc y o f th e P ortu guese a s g lo bal s u pplie s o f p ep per w ere co rn ere d b y th e la tte r.

134 B ut B ra u del rig htly in sis te d th at V en ic e re m ain ed a fo rm id ab le e co nom ic fo rc e th ro ughout th e s ix te en th c e n tu ry . A s la te a s 1 585 th ere w ere s till s o m e fo ur th ousa n d V en etia n fa m ilie s “ sc a tte re d th ro ughout th e c it ie s a n d la n ds o f I sla m ” a s fa r a w ay a s H orm uz.

135 N or w as th e Red S ea r o ute e v er c o m ple te ly s tif le d . I n 1 560 th e P ortu guese a m bassa d or a t R om e r e ce iv ed r e p o rts th at e n orm ous q u an tit ie s o f p ep per a n d s p ic e w ere a rriv in g a t A le x an dria .

136 I n 1 593 t h e F uggers w ere sim ila rly to ld th at A le x an dria w as su pply in g V en ic e w it h as m uch p ep per as L is b o n re ce iv ed .

137 How ev er, b y t h e s e co nd d eca d e o f t h e s e v en te en th c e n tu ry V en ic e ’s p rim acy i n t h e M ed it e rra n ean w as fin ally o ver.

138 T he Ita lia n cris is o f th e se v en te en th ce n tu ry h as b een ch ara cte riz e d as a “ g ra d ual in tr o versio n o f t h e n orth ern I ta lia n b o urg eo is ie ,” a “ p ro gre ssiv e c lo su re t o t h e w orld b ey ond I ta ly .” 139 If s o , G uic cia rd in i’s j u dgem en t w as e v en m ore p ro ph etic .

DUTC H P R IM ACY The f a ll o f A ntw erp i n A ugust 1 585 t r ig gere d a v ast e x o dus o f r e fu gees f r o m t h e s o uth ern p ro vin ce s o f th e N eth erla n ds to th e N orth , w it h m ajo r co nse q u en ce s fo r A m ste rd am an d D utc h co m merc e .

Am ste rd am ’s p ro sp erit y a fte r 1 600 w as b u ilt b y ém ig ré s fr o m A ntw erp .

140 O ver h alf th e D utc h E ast In dia C om pan y/ V ere en ig de O ostin dis c h e C om pag nie or V O C’s sta rtin g ca p it a l of 6.4 2 m illio n guild ers w as su bsc rib ed in A m ste rd am , bu t am ong A m ste rd am in vesto rs th e big gest in div id ual in vestm en ts w ere m ad e by m en lik e Isa ac le M air e an d B alt h asa r C oym an s, all ém ig ré s fr o m Antw erp .

141 T hey w ere W allo on o r F le m is h e x ile s a n d p ro vid ed c lo se t o 4 0 p erc e n t o f t h e C om pan y’s to ta l c a p it a l.

142 I t w as t h eir “ v ast w ealt h a n d in te rn atio nal c o nnectio ns” 143 t h at e n ab le d H olla n d’s r a p id bre ak th ro ugh i n to t h e r ic h t r a d es o f t h e M ed it e rra n ean a n d A sia .

The s e v en te en th c e n tu ry w as d om in ate d b y t h e c o m petit io n b etw een E nglis h a n d D utc h c a p it a l. T he tr a je cto ry o f D utc h c a p it a lis m ru ns fr o m it s ra p id e x p an sio n in th e e arly se v en te en th c e n tu ry to it s declin e in th e s e co nd q u arte r o f th e e ig hte en th c e n tu ry , w it h a p eak in th e d eca d es a ro und 1 647– 72, desc rib ed b y J o nath an I sra el a s t h e z e n it h o f t h e R ep u blic ’s “ w orld -tr a d e p rim acy .” 144 D utc h t r a d e w it h Asia h ad f a r o uts tr ip ped t h at o f t h e P ortu guese p o ssib ly a s e arly a s 1 601.

145 T he c la sh w it h E ngla n d f o r maste ry of th e M ed it e rra n ean tr a d e ex p lo ded in th e la te 1640s, pro m ptin g th e fir st of se v era l “N av ig atio n A cts ” b y w hic h E nglis h ca p it a l so ught to cu rb D utc h d om in an ce . In 1661 C olb ert assu m ed t h e d ir e ctio n o f c o m merc ia l a ffa ir s in F ra n ce , a n d b y t h e la te s e v en te en th c e n tu ry t h e F re n ch had e m erg ed a s a m ajo r c o m merc ia l p o w er, 146 w it h th e la st q u arte r o f th e c e n tu ry d om in ate d b y a co nfr o nta tio n b etw een t h em a n d t h e D utc h .

147 T he 1 680s w as a ls o w hen t h e V O C w as a t t h e p eak o f i t s su cce ss a s a n A sia n p o w er.

148 The c ru sh in g I ta lia n s u pre m acy o f t h e t w elf th t o f if te en th c e n tu rie s h ad e n ca p su la te d a c a p it a lis m o f netw ork s , t h e o nly k in d in dig en ous t o t h e M ed it e rra n ean c o untr ie s a n d t h e w id er w orld o f I sla m . T he new ca p it a lis m o f th e se v en te en th ce n tu ry w as d riv en , in co ntr a st, by jo in t- sto ck co m pa nie s th at em erg ed f r o m t h e m arit im e f r in ge o f n orth w este rn E uro pe a n d e n jo yed t h e s tr o ng b ack in g o f t h e s ta te (a s, in deed , V en etia n ca p it a l h ad ). T hey w ere ca p it a lis t en te rp ris e s o f a h ig her po w er th an th e im perfe ct “ ro yal c a p it a lis m s” o f I b eria , b u t lik e th em th ey r e ta in ed a p u blic o r se m i- p u blic c h ara cte r th at e m bo die d a q u asi- fo rm al d ele g atio n o f s o vere ig nty t h at m ad e t h em f o rm id ab le c o m petit o rs.

149 T he main E ast I n dia C om pan ie s ( E nglis h , D utc h , a n d F re n ch ) w ere th e m ost p o w erfu l o f th e jo in t- sto ck co m pan ie s in th e s e v en te en th a n d e ig hte en th c e n tu rie s, a n d th e c o m petit io n b etw een th em w as s u ch th at D av id H um e, in a n e ssa y p u blis h ed in 1 742, c o uld f a m ously s a y , “ T ra d e w as n ev er e ste em ed a n affa ir o f s ta te t ill t h e la st c e n tu ry .” 150 T he h ead -o n c la sh b etw een t h e E nglis h a n d t h e D utc h g en era te d th e d octr in e th at c a m e to b e c a lle d “ je alo usy o f tr a d e.” 151 T ow ard th e e n d o f th e e ig hte en th c e n tu ry Adam S m it h a g re ed w it h H um e t h at t r a d e h ad c h an ged E uro pean p o lit ic s in t h e s e v en te en th c e n tu ry .

In Wea lt h o f N atio n s h e r e fe rs to “ m erc a n tile je alo usy ” w hic h “ in fla m es, a n d is it s e lf in fla m ed b y th e vio le n ce o f n atio n al a nim osit y .” 152 S ta te a n d c a p it a l n ow h ad a u nif y in g “ n atio nal” i n te re st i n s e cu rin g o r re ta in in g c o m merc ia l d om in an ce . I n “ O f t h e J e alo usy o f T ra d e” ( 1 752) H um e w ro te “ N oth in g i s m ore usu al, a m ong s ta te s w hic h h av e m ad e s o m e a d van ce s i n c o m merc e , th an . . . t o c o n sid er a ll t r a d in g s ta te s as t h eir r iv a ls .” 153 I n t h e la te n in ete en th c e n tu ry G usta v v on S ch m olle r e x p re sse d t h is m ore f o rc e fu lly .

“C om merc ia l c o m petit io n, e v en in tim es n om in ally o f p eace , d eg en era te d in to a s ta te o f u ndecla re d hostilit y : it p lu nged n atio ns in to o ne w ar a fte r a n oth er, a n d g av e a ll w ars a tu rn in th e d ir e ctio n o f tr a d e, i n dustr y , a n d c o lo nia l g ain . . . . ” 154 To J o sia h C hild w ho b eca m e g overn or o f th e E nglis h E ast In dia C om pan y in 1 681, th e e sse n tia l ch ara cte ris tic o f t h e D utc h m odel w as i t s p ecu lia r i n te g ra tio n o f s ta te a n d c a p it a l. A t t h e t o p o f C hild ’s lis t o f r e aso ns f o r D utc h e co nom ic s u cce ss “ w as t h e f a ct t h at D utc h C ouncils o f S ta te , t h e l a w -m ak in g bo die s, w ere c o m po se d o f tr a d in g m erc h an ts w ho h ad liv ed a b ro ad m ost o f th eir liv es a n d w ho h ad gre at p ra ctic a l a n d th eo re tic a l k now le d ge o f c o m merc ia l m atte rs.” 155 I n Obse rv a tio n s u pon th e U nit e d Pro v in ce s o f th e N eth erla nd s ( 1 673), S ir W illia m T em ple w ould lik ew is e n ote th is p artic u la r f e atu re o f th e D utc h R ep u blic ; a m ong i t s s tr e n gth s, h e c la im s, w as “ [a ] G overn m en t m an ag ’d e it h er b y m en t h at tr a d e, o r w hose F am ilie s h av e r is e n b y it , o r w ho h av e t h em se lv es s o m e I n te re st g oin g in o th er m en ’s Tra ffiq u e, o r w ho a re b o rn a n d b re d in T ow ns, T he so ul a n d b eein g w here o f c o nsis ts w holly in tr a d e.” 156 In oth er w ord s, th e V O C an d it s pre d ece sso r co m pan ie s “ty pif ie d th e hig h deg re e of in te ra ctio n o f ru lin g o lig arc h y w it h p riv a te e n te rp ris e w hic h c h ara cte riz e d m uch , if n ot m ost, o f D utc h overse as c o m merc e .” 157 T he V O C w as “ th e c re atio n o f th e D utc h s ta te a s m uch a s o f th e m erc h an ts who h ad a ctu ally o pen ed u p t h e E ast I n dia t r a ffic ,” 158 a n d, l ik e i t s l a te r, A tla n tic , c o unte rp art, t h e W est In dia C om pan y, “ in tim ate ly e n tw in ed ” w it h th e c o untr y ’s “ re g en t o lig arc h y.” 159 I n s h ort, th e n ex u s betw een s ta te a n d c o m merc ia l c a p it a l w as a lt o geth er m ore d ir e ct h ere th an a n yth in g r e fle cte d in th e “str o ng s o cia l a n d c o m merc ia l t ie s b etw een t h e m erc h an ts a n d f in an cie rs o f t h e C it y o f L ondon a n d t h e Brit is h s ta te a n d a ris to cra cy ” 160 t h at w ere c o ev al w it h i t .

The sh eer effic ie n cy of D utc h ca p it a l ste m med fr o m th e re m ark ab le effic ie n cy of it s sh ip pin g in dustr y , t h e m assiv e c o nce n tr a tio n o f c a p it a l i n A m ste rd am ’s e x ch an ge-b an k, e sta b lis h ed i n 1 609 ( o ne early e ig hte en th -c e n tu ry e stim ate p u t t h e b an k’s h old in gs a t a ro und t h re e h undre d m illio n g uild ers), 161 th e t e ch nic a l s o ph is tic a tio n a n d f le x ib ilit y o f t h e D utc h f in e-c lo th i n dustr y , 162 a n d t h e “ so ph is tic a tio n o f Dutc h m eth ods an d te ch nolo gy” 163 m ore g en era lly . B ut b ey ond th ese fa cto rs, all esse n tia l, w as a co m merc ia l s tr a te g y d efin ed b y it s s in gle -m in ded c o nce n tr a tio n o n t h e r ic h t r a d es o f E uro pe a n d A sia , by f a r-re ach in g v ertic a l in te g ra tio n in to s o urc e -m ark ets a n d, m ost s tr ik in gly , b y th e s h eer s c a le o f it s Asia n tr a d e n etw ork 164 ( u nm atc h ed b y th e E nglis h ) 165 a n d th e w ay th e V O C w as a b le to in te g ra te it s lo ca l, in te r-A sia n t r a d e in to a la rg ely s e lf - c o nta in ed if e x p an din g c ir c u la tio n o f c a p it a l t h at m in im iz e d th e n eed f o r p ay m en ts i n s ilv er.

166 I n m ost w ay s, it w as t h e A sia n p art o f t h is s tr a te g y t h at s h ow ed ju st how m uch t h e D utc h e n tr e p ô t w as h arn esse d t o t h e a ctu al m ach in ery o f t h e D utc h s ta te , 167 s in ce D utc h co m merc e in A sia w as “ h eav ily a rm ed ” f r o m t h e o uts e t.

168 B y 1 623, t h e D utc h h ad n in ety s h ip s in t h e East I n die s a n d t w o t h ousa n d r e g ula r t r o ops p o ste d i n t w en ty f o rts !

169 Ralp h D av is ex p la in ed w hy D utc h sh ip pin g w as m ore effic ie n t. B efo re th e se v en te en th ce n tu ry Dutc h s h ip bu ild ers d id n ot h av e to lo ok o ut fo r th e d efe n sib ilit y o f th eir s h ip s b u t s im ply c a rry in g ca p acit y a n d c o st o f o pera tio n. “ T hey e v olv ed h ull fo rm s th at m ax im is e d c a rg o s p ace in r e la tio n to overa ll d im en sio ns.” B eca u se th ey w ere fla t- b o tto m ed , “ th ey d ra w e n ot s o e m uch w ate r a s o ur s h ip s do,” w ro te t h e E nglis h e x p lo re r G eo rg e W ay m outh i n 1 609, “ . . . a n d t h ere fo re m ust h av e le ss M asts , Say le s, T ack lin g a n d A nch ors, t h an o urs h av e; and a re th ere fo re a ble to s a yle w it h o n e th ir d p a rt o f m en le ss th an o u rs , o r th er a bou ts .” “ T hus, b y th e a d van ta g e th ey g ay n o f u s in b u rd en , a n d b y th e c h arg e th ey sa v e in m arrin ers w ag es, an d v ic tu als , th ey are ab le to ca rry th eir fr a ig ht b ette r ch eap th an wee.” 170 Wit h in E uro pe a n d l a rg e p arts o f t h e M ed it e rra n ean , b arte r w as w id ely u se d a s a m erc a n tile s tr a te g y beca u se it w as alw ays “ m ore p ro fit a b le t o t r a d ers t o e x p o rt g oods r a th er t h an m oney .” 171 H ow ev er, in Asia th e c ru cia l c o nstr a in t o n E uro pean tr a d e, a s th e P ortu guese ra p id ly d is c o vere d , w as E uro pe’s “in ab ilit y t o s u pply w este rn p ro ducts a t p ric e s t h at w ould g en era te a l a rg e e n ough d em an d” t o p ro vid e th e n ece ssa ry r e v en ue fo r th e p u rc h ase o f A sia n g oods. “ T he o nly m ajo r it e m th at E uro pe w as in a po sit io n to p ro vid e A sia [w it h ] w as p re cio us m eta ls .” 172 (E ven d ow n to th e e n d o f th e se v en te en th ce n tu ry , “tr e asu re ” acco unte d fo r 70 to 90 perc e n t of th e E nglis h E ast In dia C om pan y’s to ta l ex p o rts .) 173 T he re su rg en ce o f eco nom ic co nflic t b etw een S pain an d th e D utc h in 1621 an d th e em barg o o n D utc h sh ip pin g in Ib eria n p o rts 174 w ere th ere fo re p o te n tia lly d is a str o us to co ntin ued Dutc h ex p an sio n in A sia , b eca u se th ey ch oked th e tr a n sfe r o f S pan is h A m eric a n b u llio n to th e Neth erla n ds a n d c re ate d a n e n dem ic sh orta g e o f sp ecie th ere ; th e V O C in p artic u la r re q u ir e d “ an im men se re g ula r in pu t o f b u llio n to se ttle it s b ala n ce s in th e E ast In die s.” 175 In ste ad o f se ek in g in fu sio ns o f c a p it a l f r o m A m ste rd am , t h e V O C’s g overn or-g en era l a t B ata v ia , J a n P ie te rsz o on C oen , ev olv ed a c o m merc ia l s tr a te g y o r “ m aste r p la n ” t h at e n co ura g ed t h e D utc h t o p artic ip ate ex te n siv ely i n th e t r a d e o f t h e I n dia n O ce an .

176 N o o th er E uro pean c o m merc ia l p o w er d id t h is o n q u it e t h e s a m e s c a le or w it h th e so ph is tic a tio n an d ru th le ssn ess dem onstr a te d by th e D utc h th ro ugh m ost of th e se v en te en th c e n tu ry . W it h th eir p re co cio us b ase in T aiw an , th ey c o m man ded a m ajo r sh are o f th e Nag asa k i tr a d e ( b asic a lly , a n e x ch an ge o f C hin ese s ilk y arn fo r J a p an ese s ilv er), w hic h m ean t th at a la rg e p art o f th eir A sia n o pera tio ns c o uld b e fin an ce d w it h J a p an ese silv er a n d, to a le sse r d eg re e, Chin ese g old . “ In 1 652, f o r e x am ple , t h e V O C e x p o rte d f r o m N ag asa k i 1 ,5 55,8 50 g uild ers ( e q u iv ale n t to 1 7,0 22 k gs.) o f J a p an ese s ilv er” o f w hic h l e ss t h an 9 p erc e n t a rriv ed a t t h e C om pan y’s h ead qu arte rs in B ata v ia , t h e r e m ain der e n din g u p i n C hin a.

177 Yet b u llio n s to ck s w ere n ev er e n ough t o r e so lv e t h e p ro ble m o f f in an cin g c o m merc ia l a ccu m ula tio n in A sia n m ark ets , a n d th e V O C w ould e v en tu ally c re ate a v ast c o ntin en ta l s y ste m o f b arte r w hic h , re d uce d to it s s im ple st e le m en ts , e m bo die d a n e x ch an ge o f I n donesia n s p ic e s f o r I n dia n te x tile s. T his is th e s e n se i n w hic h “ th e s a le s o f s p ic e s f o rm ed t h e b asis o f C om pan y e x p an sio n i n o th er s p h ere s o f t r a d e in A sia ” 178 a n d t h e r e aso n w hy t h e d ir e cto rs c o uld s ta te i n 1 648, “ T he c o untr y t r a d e a n d t h e p ro fit f r o m it are th e s o u l o f th e C om pa ny w hic h m ust b e lo ok ed a fte r c a re fu lly .” 179 T he C om pan y b eca m e a n A sia n tr a d er o n a l a rg e s c a le , 180 w it h m ajo r p o sit io ns a t o ne t im e o r a n oth er i n e v ery th in g f r o m C hin ese s u gar an d J a p an ese s ilv er t o J a p an ese c o pper, s p ic e s f r o m t h e A rc h ip ela g o, i n dig o f r o m B ay an a a n d G uja ra t, co tto n c lo th fr o m th e C oro m an del, p ep per fr o m M ala b ar, c in nam on fr o m C ey lo n, ra w silk , D acca muslin s a n d o piu m f r o m B en gal, s ilk f r o m P ersia , c o ffe e f r o m M och a, a n d s o o n. I n 1 619 w hen C oen se n t h is b lu ep rin t o f th e A sia n tr a d e to th e d ir e cto rs in A m ste rd am , th e C om pan y alr e ad y h ad a “p erm an en tly c ir c u la tin g c a p it a l” o f b etw een ƒ 2.5 a n d ƒ 3.5 m illio n i n t h e E ast I n die s a n d C oen w an te d more . 181 A fte r 1 647 th e r e su m ed f lo w o f S pan is h s ilv er to A m ste rd am r e v erse d th e d eclin e o f b u llio n re m it ta n ce s t o t h e e ast, 182 a n d b y t h e m id dle o f t h e c e n tu ry t h e E ast I n dia f le et w as r e tu rn in g h om e w it h ca rg oes w orth b etw een f if te en a n d t w en ty m illio n g uild ers, r o ughly e q u iv ale n t t o t h e c o m bin ed v alu e of th e C ad iz a n d S m yrn a fle ets !

183 B y 1 673 S ir W illia m T em ple w ould r e fe r to th e “ v astn ess o f th e Sto ck tu rn ’d w holly to th at T ra d e” a n d to th e V O C “ en gro ssin g th e w hole C om merc e o f th e E ast- In die s.” 184 Ren ew ed a cce ss t o S pan is h s ilv er in t h e la te 1 640s a n d a b o om in L eid en ’s t e x tile in dustr y t r ig gere d by c o nversio n t o t h e e x p en siv e f a b ric s k now n a s c a m le ts a n d la ken m ean t r a p id D utc h d om in atio n o f Med it e rra n ean m ark ets , 185 w it h T urk ey n ow a b so rb in g a t h ir d o f L eid en ’s o utp u t. F or t h e E nglis h t h is sp elle d a s u dden c ris is a s “ m assiv e q u an tit ie s o f f in e g oods b eg an t o b e lo ad ed o n t o D utc h v esse ls a t Liv orn o f o r th e E nglis h a s w ell a s f o r th e D utc h m ark et.” 186 I t w as th is “ su dden m arit im e c ris is ” th at fo rm ed th e “ b ack gro und o f th e f ir st th oro ughly w ork ed o ut p ie ce o f E nglis h p ro te ctiv e le g is la tio n— th e N av ig atio n A ct o f 1 651— an d o f t h e F ir st A nglo -D utc h W ar.” 187 T he o rd in an ce o f 1 651 e sta b lis h ed a m odel fo r th e tig hte r N av ig atio n A ct o f 1 660, w hic h “ re m ain ed a t th e h eart o f E nglis h m arit im e po lic y f o r n early t w o c e n tu rie s,” p ro vid in g t h at “ all g oods im po rte d t o E ngla n d s h ould c o m e d ir e ctly fr o m t h eir p la ce o f p ro ductio n ( th us e lim in atin g t h e D utc h e n tr e p o t) ” a n d t h at “ n o f o re ig n ( i.e . D utc h ) sh ip s s h ould t r a d e w it h E nglis h c o lo nie s.” 188 T he y ears f r o m 1 651 t o 1 672 h av e b een d esc rib ed a s “ th e peak o f A nglo -D utc h c o m merc ia l riv alr y .” 189 H ow ev er, fr o m th e m id -1 660s C olb ert’s m erc a n tilis m beca m e th e p iv ot o f a n ew str u ggle fo r M ed it e rra n ean d om in an ce , th is tim e b etw een F ra n ce an d Holla n d, w it h th e F re n ch ta rif fs o f 1667 u nle ash in g a co m merc ia l w ar in w hic h C olb ert’s “ cle ar obje ctiv e w as t o c a p tu re t h e r ic h t r a d es,” w re stin g c o ntr o l f r o m t h e D utc h .

190 B y t h e 1 690s t h e F re n ch co uld m ak e r a p id in ro ad s in to th e O tto m an m ark et, a n d b y 1 701 w ere s e llin g m ore fin e c lo th th ere th an t h e D utc h .

191 T he D utc h h ad d om in ate d S m yrn a f o r m ost o f t h e s e v en te en th c e n tu ry .

192 A s la te a s 1680 s ilv er r e m it ta n ce s t o t h e L ev an t w ere r u nnin g a t w ell o ver t w o m illio n g uild ers a y ear.

193 I n 1 675 th e m ajo rit y o f E uro pean s in S m yrn a w ere r e p o rte d t o b e D utc h .

194 H ow ev er, b etw een 1 688 a n d 1 719 th e n um ber o f D utc h m erc h an t h ouse s t h ere f e ll d ra stic a lly f r o m ca . tw en ty -fiv e t o o nly s ix , 195 c le arin g th e w ay f o r t h e o verw helm in g F re n ch d om in atio n t h at c h ara cte riz e d t h e L ev an t f o r t h e g re ate r p art o f th e eig hte en th ce n tu ry . R ic h elie u an d C olb ert re fle cte d id eas th at o vertly alig ned th e in te re sts o f co m merc ia l ca p it a l to th ose o f th e sta te . In th e w ord s o f th e F re n ch d ip lo m at N ic o la s M esn ag er, Ric h elie u “ d id n ot f in d a n y m ean s m ore e ffe ctiv e t o in cre ase t h e p o w er o f t h e k in g a n d t h e w ealt h o f th e s ta te t h an t o i n cre ase n av ig atio n a n d c o m merc e .” 196 Much of th e pré cis ab o ve is base d on Jo nath an Isra el’s tig htly -a rg ued his to ry of th e D utc h co m merc ia l s y ste m , w hic h e n ds b y s u ggestin g th at “ th e b asic r e aso n fo r th e d ecis iv e d eclin e o f th e Dutc h w orld -tr a d in g s y ste m in t h e 1 720s a n d 1 730s w as t h e w av e o f n ew -sty le in dustr ia l m erc a n tilis m whic h s w ep t p ra ctic a lly t h e e n tir e c o ntin en t f r o m a ro und 1 720.” 197 A “ co m pre h en siv e i n te rv en tio nis m ” to ok h old o f n orth ern E uro pe, w it h fa ta l c o nse q u en ce s fo r D utc h e x p o rt m ark ets a n d in dustr ie s.

198 Wit h in E uro pe, th e D utc h ric h tr a d es w ere “ d ev asta te d ” d urin g th ose d eca d es, an d in In dia th e Englis h E ast I n dia C om pan y “ h ad d ecis iv ely o verta k en t h e D utc h ” i n m ost p arts o f t h e c o untr y w here th ey w ere p re se n t b y 1 740.

199 T he esse n tia l v it a lit y o f th e se v en te en th -c e n tu ry en tr e p ô t h ad b een la rg ely d estr o yed b y t h e m id dle o f t h e e ig hte en th c e n tu ry .

200 EN GLA N D’S R IS E T O D OM IN AN CE In E ngla n d th e “ co nsc io us u se o f sta te p o w er fo r c o m merc ia l e n ds” 201 fir st c a m e to th e fo re in th e re v olu tio nary d eca d es in th e m id dle o f th e se v en te en th c e n tu ry , ro ughly a w hole c e n tu ry afte r th e Eliz a b eth an c o m merc ia l e x p an sio n b eg an . T hat e x p an sio n, a s B re n ner s h ow ed , w as d riv en b y t h e r a p id gro w th o f th e im po rt tr a d es a n d h ad n oth in g to d o w it h E nglis h c lo th m erc h an ts lo okin g fo r n ew mark ets .

202 T he re m ark ab le fe atu re of th e im po rt tr a d es of th e la te six te en th ce n tu ry is th eir in te rlo ck in g str u ctu re , w it h th e sa m e g ro ups o f en tr e p re n eu rs d om in atin g th e v ario us co m pan ie s flo ate d b etw een 1 573 a n d 1 592.

203 E nglis h o verse as c o m merc e w as th us h ig hly c o nce n tr a te d a n d o f co urse re m ain ed so a s lo ng a s it w as o rg an iz e d a s a c lu ste r o f c o m merc ia l m onopo lie s ru le d b y a han dfu l of big L ondon m erc h an ts . A “clo se -k nit gro up of V en ic e C om pan y m erc h an ts w it h wid esp re ad o pera tio ns” h elp ed o rg an iz e t h e L ev an t C om pan y i n 1 592, a n d t h e E ast I n dia C om pan y i n tu rn , w hen i t w as f o unded i n 1 599, “ w as d om in ate d b y t h e L ev an t C om pan y m erc h an ts .” S ev en o f t h e orig in al fif te en d ir e cto rs w ere L ev an t C om pan y m erc h an ts .

204 “ L ev an t C om pan y m em bers p ro vid ed betw een o ne-fo urth a n d o ne-th ir d o f t h e t o ta l f u nd in veste d in t h e f ir st, t h ir d , a n d f o urth jo in t s to ck s” of t h e E ast I n dia C om pan y.

205 B y 1 630 t h e t o ta l c o m bin ed v alu e o f I ta lia n , L ev an tin e, a n d E ast I n dia n im po rts w as £ 527,0 00, in 1 634 £ 689,0 00, a n d in 1 669 £ 1,2 08,0 00, sh ow in g w here th e d ynam is m o f Engla n d’s tr a d e la y fo r m uch o f th e fir st h alf o f th e s e v en te en th c e n tu ry in to th e e arly y ears o f th e Resto ra tio n. N oth in g b ette r d em onstr a te s t h e d om in an ce o f t h e i m po rt t r a d es ( in b o th E ngla n d a n d t h e Neth erla n ds) t h ro ughout t h e s e v en te en th c e n tu ry t h an t h e f a ct t h at ex ports w ere v ery l a rg ely a f u nctio n of th e n eed to fin an ce th ese s u bsta n tia l a n d r is in g le v els o f im po rts ; fo r e x am ple , E nglis h m erc h an t im po rte rs “ in cre ase d t h eir c lo th e x p o rts in o rd er t o p a y f o r in cre a se d im ports , a n d t h ey g en era lly f e ll f a r beh in d.” 206 I t w as t h is t h at c a u se d m ajo r c o nce rn a b o ut t h e b ala n ce o f t r a d e i n E ngla n d.

The im po rt b o om o f th e se co nd q u arte r o f th e se v en te en th c e n tu ry 207 fu ele d a ste ad y in cre ase in re ex ports f r o m t h e 1 630s o nw ard s.

208 I n f a ct, t h e g ro w th o f a r e ex p o rt t r a d e w as t h e c h ie f in novatio n o f th e l a te r S tu art p erio d 209 a n d b o und u p b o th w it h t h e m onopo ly c re ate d b y t h e N av ig atio n A cts a s w ell as th e n ew m ass p ro ductio n in dustr ie s lin ked to th e c o lo nia l tr a d es in p la n ta tio n p ro duce .

210 B etw een th em i m po rts a n d r e ex p o rts s u sta in ed a n ew , g ig an tic w av e o f e x p an sio n o f E nglis h m erc h an t s h ip pin g, esp ecia lly i n t h e y ears 1 660– 89.

211 N ot o nly d id t h e L ev an t t r a d e r a n k h ig h i n t h e o verse as c o m merc e o f Resto ra tio n L ondon, 212 b u t th e s a m e y ears s a w a n ear-d oublin g o f E ngla n d’s p la n ta tio n to nnag e ( th e dead w eig ht to nnag e o f th is sh ip pin g se cto r).

213 T obacco im po rts h ad re g is te re d a fiv efo ld in cre ase betw een 1 620 a n d 1 640, l e ad in g t h e w ay t o s u gar.

214 L ondon’s s u gar i m po rts t r e b le d b etw een t h e 1 660s an d 1 680s, w it h s ix h undre d im po rte rs a ctiv e in t h e t r a d e in 1 686.

215 I n t h e s a m e y ear t h ere w ere 1 ,2 83 merc h an ts tr a d in g to th e W est In die s, o f w hom tw en ty -e ig ht, w it h tu rn over ex ce ed in g £ 10,0 00, acco unte d f o r ju st o ver 5 0 p erc e n t o f t o ta l im po rts b y v alu e.

216 T hey w ere am on g th e b ig gest c o lo nia l merc h an ts a n d c o uld “ accu m ula te s u ffic ie n t c a p it a l t o d iv ersif y in vestm en t a ro und t h eir c o re b u sin ess in to sh ip -o w nin g, jo in t- sto ck s, in su ra n ce , w harf- le ase s, a n d in dustr y .” 217 L ondon a cco unte d fo r 8 0 perc e n t o f c o lo nia l im po rts a n d 8 5 p erc e n t o f a ll re ex p o rts ca .

1700, a n d in th e la st d eca d es o f th e se v en te en th c e n tu ry “ E ngla n d e sta b lis h ed a la rg er sta k e in th e A tla n tic th an a n y o th er c o untr y in North ern E uro pe.” 218 T obacco , su gar, an d In dia n ca lic o es acco unte d fo r th e bu lk of E ngla n d’s re ex p o rts a n d p re fig ure d t h e m ass m ark ets o f t h e e ig hte en th c e n tu ry .

219 B y 1 700 t h e E nglis h p la n te rs i n Barb ad os, J a m aic a , a n d th e L eew ard s w ere su pply in g c lo se to h alf th e su gar c o nsu m ed in W este rn Euro pe.

220 Of t h e 1 70 L ondon m erc h an ts c la ssif ie d b y Z ah ed ie h a s “ b ig c o lo nia l m erc h an ts ,” t w o-th ir d s a re s a id to h av e h ad a “ su bsta n tia l tr a d e in th e C arib bean .” 221 T hat w ould m ak e a ro und 1 10 m erc h an ts w it h su bsta n tia l s ta k es, w hic h m ak es t h e A tla n tic t r a d es v astly m ore a cce ssib le t h an a n y o f t h e t r a d es t o t h e east, L ev an tin e, o r E ast I n dia n . B y it s c h arte r o f 1 592, th e L ev an t C om pan y w as r e str ic te d to fif ty - th re e p erso ns, a n d r e cru it m en t t o t h e L ev an tin e t r a d e r e q u ir e d b o th w ealt h a n d f a m ily c o nnectio ns.

222 The ric h est an d m ost activ e tr a d ers w ere , in B re n ner’s w ord s, “ jo in ed in a ra m if ie d n etw ork o f in te rlo ck in g fa m ily r e la tio nsh ip s, th e m em bers o f w hic h c o ntr o lle d a m ajo r s h are o f th e tr a d e.” 223 I n th e E ast I n dia C om pan y, th e la rg est o f th e jo in t- sto ck v en tu re s, tw en ty -fo ur d ir e cto rs “ cla im ed th at th ey h eld m ore sto ck th an fo ur h undre d o f th e g en era lit y .” 224 A gain , it is u se fu l to co nce p tu aliz e London’s c o m merc ia l c a p it a l in te rm s o f “ cla sse s o f c a p it a l,” w it h th e e astw ard -tr a d in g c o m bin e th at fo rm ed t h e h eart o f L ondon’s c o m merc ia l e sta b lis h m en t 225 f o rm in g a s u bsta n tia lly m ore p o w erfu l l a y er th an th e “ m id dlin g s tr a tu m ” fr o m w hic h th e v ast m ajo rit y o f c o lo nia l m erc h an ts d eriv ed .

226 O n th e oth er h an d, in te rm s o f c o m merc ia l c o nce n tr a tio n, th e tw o tr a d e se cto rs w ere n ot v astly d if fe re n t.

Durin g 1 627– 1635, w hen th e tr a d e to th e L ev an t ra n b etw een £ 200,0 00 a n d £ 300,0 00 a y ear, so m e tw en ty -fo ur Lev an t C om pan y m erc h an ts co ntr o lle d 54 perc e n t of th e tr a d e, 227 w hic h is not dra m atic a lly h ig her t h an t h e 5 0 p erc e n t s h are c o ntr o lle d b y t h e b ig gest t w en ty -e ig ht m erc h an ts t r a d in g to th e W est I n die s w ho w ere m en tio ned p re v io usly . R eg ard le ss o f w heth er tr a d es w ere r e se rv ed o r open , e co nom ic c o nce n tr a tio n w ork ed i n t h e s a m e w ay .

In t h e M ed it e rra n ean in t h e e arly p art o f t h e s e v en te en th c e n tu ry E ngla n d’s m ain c o m merc ia l r iv als , th e V en etia n s a n d t h e F re n ch , b o th l o st g ro und r a p id ly . T he V en etia n s w ere “ u nderso ld a n d d riv en o ff th e s ta g e,” th eir a g en ts c o m pla in in g o f th e lo w p ric e o f th e c lo th s e n t o ut b y th e E nglis h .

228 B y th e 1620s L iv orn o h ad e m erg ed a s t h e p rim e c o m merc ia l b ase f o r E ngla n d’s t r a d e w it h s o uth ern I ta ly a n d th e L ev an t. “ In 1 629,” W ood re p o rts , “ th ere w as sa id to b e fo ur m illio n c ro w ns w orth o f E nglis h goods l y in g o n t h e q u ay s o f L eg horn ( L iv orn o).” 229 I n The T re a su re o f T ra ffic k e ( 1 641) L ew is R oberts note d th at a m illio n d uca ts in c a sh w ere e x p o rte d fr o m L iv orn o a n nu ally .

230 T he “ m ost m odern a n d fu lly e q u ip ped p o rt i n t h e M ed it e rra n ean ,” 231 i t p la y ed a c ru cia lly im po rta n t p art in t h e L ev an t t r a d e a s a c e n te r w here E nglis h e x p o rts a n d re ex p o rts c o uld b e c o nverte d in to c u rre n cy .

232 T hat th e L ev an t Com pan y c o uld r e p eate d ly a tta ck th e E ast I n dia C om pan y fo r it s e x p o rt o f b u llio n to I n dia s u ggests th at th e L ev an t tr a d e it s e lf w as la rg ely a b arte r tr a d e, th at is , o ne w here th e b u lk o f im po rts w as fin an ce d b y t h e e x p o rt o f c lo th , t in , s p ic e s, a n d s o o n. T hom as M un c la im ed , “ O f a ll E uro pe t h is n atio n dro ve th e m ost p ro fit a b le tr a d e to T urk ey b y r e aso n o f th e v ast q u an tit ie s o f b ro ad c lo th , tin , & c., whic h w e e x p o rte d th it h er; en ou gh to p u rc h ase a ll th e w are s w e w ante d in T urk ey — where a s a b a la nce in mon ey is p a id b y th e o th er n atio n s tr a d in g th it h er .” 233 O n t h e o th er h an d, in t h e “ cu rra n t is la n ds” w here th e E nglis h p u rc h ase d a b o ut t w o-th ir d s o f t h e c ro p, t h ere w as “ p ra ctic a lly n o m ark et f o r E nglis h g oods an d p ay m en t h ad to b e m ad e in r e ad y m oney .” 234 I n 1 629 th e V en etia n a m bassa d or r e p o rte d th at th e Lev an t C om pan y, “ h av in g a c o nsid era b le c a p it a l, bu y u p b efo re h and th e p ro duce o f th e p o ore st o f th e in hab it a n ts o f th ese is la n ds . . . so th at fo r th em th e p ric e s a re a lm ost a lw ays th e sa m e .” 235 A dvan ce pay m en ts w ere u se d t o e n su re l o w s ta b le p ric e s. I n I ta ly , E nglis h m erc h an ts r a n a d efic it o n t h e t r a d e i n goods w it h a ll I ta lia n s ta te s th ro ugh m ost o f th e s e v en te en th c e n tu ry , w hic h th ey c o uld s u cce ssfu lly tr a n sfo rm in to a tr a d e su rp lu s th an ks to th e su rp lu s on “in vis ib le s,” th at is , net earn in gs fr o m sh ip pin g, 236 in su ra n ce , a n d th e c o m mis sio ns c h arg ed o n E nglis h e x p o rts .

237 It w as th is co m merc ia l str a te g y t h at w ould l a te r f o rm t h e h eart o f t h e C it y ’s e co nom ic d om in an ce i n t h e n in ete en th c e n tu ry .

The L ev an t C om pan y w as n ot a j o in t- sto ck , m em bers t r a d ed i n dep en den tly o n a “ re g ula te d ” b asis .

238 Facto rs w ere r e cru it e d a s a p pre n tic e s o n s e v en -y ear t e rm s, a fte r w hic h t h ey w ere p aid a c o m mis sio n o n all g oods th ey h an dle d th at v arie d fr o m 2 to 4 p erc e n t. O f c o urse , a s w it h th e E ast I n dia C om pan y’s se rv an ts in In dia , “ fa cto rs m ad e a g ood d eal o f p ro fit fr o m th eir o w n p erso nal tr a d in g.” 239 W ood’s His to ry o f t h e L ev a nt C om pa ny s u ggests t h at t h e t h re e f a cto rie s a t C onsta n tin ople , S m yrn a, a n d A le p po “re ach ed th eir g re ate st p ro sp erit y a n d s iz e in th e la tte r h alf o f th e s e v en te en th c e n tu ry .” 240 H ow ev er, th e b u lk o f t h e c o m merc e w as c o nce n tr a te d o nly in t h ose f a cto rie s a n d t h ere w as a s tr o ng t e n den cy t o dis c o ura g e e x p an sio n a t o th er tr a d in g s ta tio ns.

241 B y th e 1 680s b o th th e E ast I n dia C om pan y a n d th e Fre n ch h ad b eco m e m ajo r so urc e s o f c o m petit io n. T he L ev an t m erc h an ts w ould c o m pla in b it te rly ab o ut t h e im po rt o f I n dia n r a w s ilk a n d s ilk g oods b y t h e f o rm er, b u t “ th e c ro w n c o nsis te n tly b ack ed th e E ast I n dia C om pan y a g ain st it s c rit ic s.” 242 M ean w hile , C olb ert’s r e v iv al o f th e L an gued oc c lo th in dustr y m ad e t h e F re n ch e v en m ore f o rm id ab le r iv als , a s t h ey p ro ved t o b e f o r t h e D utc h a s w ell. B y th e e n d o f t h e c e n tu ry , F re n ch i m po rts f r o m t h e L ev an t w ere s o arin g, a n d b y t h e 1 720s s ig ns o f a r a p id declin e b eca m e v is ib le i n t h e f o rtu nes o f t h e E nglis h c o m pan y.

243 The eig hte en th ce n tu ry sa w th e decim atio n o f E nglis h tr a d e in th e L ev an t, 244 th e re su lt b o th o f Fra n ce ’s d om in atio n o f t h e t e x tile m ark et a n d o f t h e C om pan y’s o w n f a ta l p o lic y “ to c u rb a tte m pts a t ex p an sio n a n d t o d is c o ura g e t h e o pen in g o f n ew m ark ets .” 245 I t w as le ft t o t h e E ast I n dia C om pan y t o note , in 1 696, “ it h as a lw ay s b een o bse rv ed t h at t h e p artic u la r t r a d ers in a r e g ula te d c o m pan y c o nte n t th em se lv es t o g o t o a c e rta in k now n p la ce i n t r a d e, e v er t a k in g a m easu re o f t h eir p ro fit a n d l o ss b efo re th ey g o o ut . . . .” 246 I n a d dit io n t o w hic h , t h ro ughout t h e la te e ig hte en th c e n tu ry t r a d e w as h am pere d by a C om pan y r e g ula tio n f o rc in g m erc h an ts t o m ak e a ll p u rc h ase s i n t h e L ev an t b y t h e b arte r o f g oods ex p o rte d fr o m E ngla n d a n d fo rb id din g th e e x p o rt o f c o in o r b u llio n to T urk ey , w here as F re n ch a n d Dutc h m erc h an ts “ca rrie d la rg e q u an tit ie s o f co in to th e L ev an t,” w here lo ca l tr a d ers p re fe rre d outr ig ht s a le s t o b arte r.

247 B y t h e 1 730s o nly s o m e f if ty o r s ix ty L ev an t C om pan y m erc h an ts r e m ain ed activ e t r a d ers, “ an d i t w as w id ely b elie v ed t h is h an dfu l o f m onopo lis ts d elib era te ly c u rb ed a ll i n it ia tiv e, en te rp ris e , a n d e x p an sio n in p u rsu it o f h ig h p ro fit s o n a lim it e d b u sin ess.” 248 A gain , th e C om pan y’s fa cto rs w ere c ru cia lly d ep en den t o n J e w is h b ro kers in th e O tto m an m ark ets , b u t th e f e ar o f p o te n tia l co m petit io n fr o m th em s u sta in ed s tr o ng r e sis ta n ce to th e a d m is sio n o f J e w s to th e C om pan y. W hen th ey fin ally w ere ad m it te d (in th e 1750s) Je w is h m em bers o f th e C om pan y w ere ban ned fr o m em plo yin g f e llo w J e w s a s f a cto rs i n t h e L ev an t!

249 In th e e ig hte en th c e n tu ry w ell o ver h alf th e se ab o rn e tr a d e b etw een E uro pe a n d th e M id dle E ast ca m e to b e c o ntr o lle d b y th e F re n ch m erc h an ts o f M arse ille s, 250 a n d F re n ch c o m petit io n w as w id ely ack now le d ged t o b e t h e m ain c a u se b eh in d t h e c o lla p se o f t h e L ev an t C om pan y. I f t h e M ed it e rra n ean had b een t h e s e m in al g ro und o f E ngla n d’s c o m merc ia l e x p an sio n i n t h e l a tte r p art o f E liz a b eth ’s r e ig n, by t h e e ig hte en th c e n tu ry t h e d ecis iv e c e n te rs o f g ra v it y h ad f ir m ly s h if te d t o t h e A tla n tic a n d t h e E ast In die s. B y 1 750 a lm ost h alf o f E ngla n d’s m erc h an t f le et w as e n gag ed i n t h e t r a n sa tla n tic t r a d e.

251 F ro m th e 1 730s th ere w as a h uge in cre ase in th e v olu m e o f c a p it a l a d van ce d to th e c o lo nie s b y sp ecia lis t gro ups o f c o m mis sio n a g en ts .

252 J a m aic a n e sta te s tr ip le d in v alu e a n d p la n te rs lik e P ete r B eck fo rd co uld d ie le av in g fo rtu nes w orth £ 300,0 00.

253 S ugar b eg an to b e fin an ce d b y lo nger-te rm le n din g o n mortg ag e, a n d w hen H en ry L asc e lle s d ie d i n 1 753, h e h ad ca . £194,0 00 ( ste rlin g) o ut o n lo an t o c lie n ts in B arb ad os a n d Ja m aic a .

254 L asc e lle s h ad fin an ce d h is lo an s b y b o rro w in g fr o m L ondon b an k ers, whic h s h ow s u s th at N ew W orld s la v ery w as tig htly in te g ra te d in to fin an cia l a n d c o m merc ia l w eb s ce n te re d in L ondon.

255 B y a ro und 1 770 th e to ta l su m o w in g to L ondon m erc h an ts b y W est In dia n su gar p la n te rs w as i n t h e r e g io n o f s e v era l m illio n p o unds.

256 D oubtle ss t h e s a m e w as t r u e o f A m eric a n pla n te rs. I n 1 784 T hom as J e ffe rso n d esc rib ed t h em a s “ a sp ecie s o f p ro p erty a nnex ed t o c e rta in m erc a ntile hou se s in L on d on ”!

257 B y th e 1 770s th e A m eric a n c o lo nie s p ro vid ed 4 0 p erc e n t o f B rit is h im po rts a n d to ok o ver 4 0 p erc e n t o f B rit a in ’s d om estic e x p o rts .

258 The tr a n sfo rm atio n o f th e E ast In dia C om pan y fr o m a p u re ly co m merc ia l o rg an iz a tio n in to a “p o lit ic a l p o w er” 259 w as o f c o urse it s m ost d is tin ctiv e fe atu re h is to ric a lly . H ow ev er, a n in ord in ate str e ss o n w hat J o hn B re w er h as c a lle d t h e “ p riv atiz e d i m peria lis m o f t h e E ast I n dia C om pan y” 260 r u ns a double r is k , b o th o f d is tr a ctin g a tte n tio n f r o m t h e f a ct t h at t h e C om pan y w as a lw ay s r u n “ b y a g ro up of e x tr e m ely r ic h c a p it a lis ts ” 261 and o f fa ilin g to s e e, o r n ot s e ein g s u ffic ie n tly , th at it s tr a n sfo rm atio n fr o m a p u re ly c o m merc ia l e n tit y in to a n im peria lis t o ne r e d efin ed th e fr a m ew ork w it h in w hic h n ew fo rm s o f c o m merc ia l c a p it a l p ro lif e ra te d f r o m t h e e n d o f t h e e ig hte en th c e n tu ry t o s p aw n t h e p o w erfu l co m merc ia l lo bbie s o f th e n in ete en th , s u ch a s th ose w hic h la y b eh in d th e O piu m W ars. I n th e p ag es th at f o llo w t h e f o cu s i s t h us o n t h e p u re ly c o m merc ia l o r c a p it a lis t a sp ects o f t h e C om pan y’s o pera tio ns sim ila r t o t h ose t h at K . N . C hau dh uri f o re g ro unded in h is s u bsta n tia l m onogra p h The T ra d in g W orld of A sia a nd t h e E ng lis h E ast I n d ia C om pa ny .

The E nglis h E ast In dia C om pan y w as a tig htly ce n tr a liz e d bu sin ess org an iz a tio n w here th e in vestm en t d ecis io ns w ere m ad e b y th e C ourt o f D ir e cto rs w ork in g th ro ugh th e c e n tr a l m an ag eria l co m mit te es in L ondon. C ap it a l su m s w ere assig ned to in div id ual “ fa cto rie s” fr o m L on d on . 262 T he bu sin ess m odel w as o f c o urse im po rt- d riv en , w hic h in tu rn im plie d ( a ) a m assiv e e x p o rt o f c a p it a l to fin an ce im po rts a n d ( b ) th e v it a l p art p la y ed b y th e r e -e x p o rt tr a d es “ in c lo sin g th e g ap th at w ould oth erw is e h av e o pen ed u p in B rit a in ’s v is ib le t r a d e b ala n ce .” 263 I n t h e E IC ’s c a se , c a p it a l e x p o rts t o ok th e fo rm , o verw helm in gly , o f p re cio us m eta ls , w hic h w ere p u rc h ase d in it ia lly in L ondon fr o m th e gold sm it h -b an kers an d la te r, fr o m th e eig hte en th ce n tu ry , on th e co ntin en t (in C ad iz an d Am ste rd am ).

264 T he C om pan y’s A sia n im po rt p o rtf o lio w as “ so f in ely d if fe re n tia te d t h at it t o ok m ore th an t w o h undre d p ag es i n t h e L ed ger B ooks t o l is t t h em ,” 265 b u t b y a n d l a rg e i m po rts w ere d om in ate d by a fe w k ey c o m modit ie s su ch a s c o tto n a n d silk p ie ce g oods, ra w silk , p ep per, te a, a n d so o n.

Dis tr ib u tio n a t t h e L ondon e n d t o ok t h e f o rm o f q u arte rly s a le s a tte n ded b y i n div id ual m em bers o f t h e Com pan y w ho w ere th em se lv es s u bsta n tia l e x p o rte rs a s w ell a s b y w hole sa le d eale rs fr o m H olla n d, Germ an y, a n d e ls e w here , 266 w it h o rd ers fo r fu tu re s u pplie s b ein g a d ju ste d o n th e b asis o f th e a ctu al pric e s r e ce iv ed a t t h ose a u ctio ns.

At th e In dia n e n d, th e a d van ce c o ntr a cts h ad to b e m ad e in a n tic ip atio n o f th e e x act o rd ers a n d fin an cia l r e so urc e s t h at w ere t o c o m e f r o m E ngla n d. T he p o st- R esto ra tio n p erio d s a w c a lic o es r a p id ly gain in g in p o pu la rit y , a n d b y th e 1 680s th e C om pan y w as im po rtin g m ore th an a m illio n a n d a h alf pie ce s, w it h th e te x tile sh are o f to ta l im po rts e x ce ed in g 8 0 p erc e n t b y v alu e.

267 T o se cu re th is v ast su pply t h e C om pan y r e lie d o n s u bsta n tia l lo ca l m erc h an ts a ctin g a s b ro kers w it h t h e p o w er t o e n su re th at o rd ers w ould b e f u lf ille d o n t im e. “ [T ]h e C om pan y’s s e rv an ts a d voca te d t h e u se o f m id dle m en o n th e g ro und th at if th ey d ealt d ir e ctly w it h th e w eav ers, ‘a tt th e y eare s e n d, w hen w e e x p ecte d to b e in veste d o f o ur g oods, w e s h ould u ndoubte d ly c o m e s h orte o f h alf o ur q u an tit y e.’” 268 I n o th er w ord s, th e r is k o f d efa u lt b y t h e w eav ers w as s h if te d t o t h e s h ould ers o f t h e m erc h an ts . C hau dhuri n ote s, “ A ll co m merc ia l ris k s w ere to b e b o rn e b y th e In dia n m erc h an ts , a n d if th e la tte r m ad e a lo ss o n th e Com pan y’s b u sin ess t h ey w ere s till e x p ecte d t o c a rry o n c o ntr a ctin g f o r g oods a s b efo re .” 269 W eav ers, of co urse , re fu se d to w ork w it h out su bsta n tia l ad van ce s w hic h C hau dhuri co nfu sin gly ca lls th eir “w ork in g c a p it a l,” 270 w hen t h e a d van ce s, t h e ca pit a l l a id o ut o n l a b o r a n d o n r a w m ate ria ls , c a m e f r o m th e C om pan y. T he “ w ork in g c a p it a l” w as s tr ic tly th at o f th e C om pan y, s in ce th e d is b u rse m en ts o f ca sh m ad e th ro ugh th eir b ro kers (a n d la te r, m ore d ir e ctly th ro ugh th e ag en ts ca lle d gum ash ta s ) in volv ed a c ir c u la tio n o f t h at p art o f t h e C om pan y’s c a p it a l w hic h w en t i n to e n ab lin g t h e l a b o r p ro ce ss, in clu din g r e p ro ductio n o f w eav ers’ l a b o r p o w er.

In th e 1 720s A le x an der H um e n ote d , “ T he E nglis h a n d D utc h , w ho a re th e g re ate st T ra d ers in th is co untr y (B en gal) , d o th eir b u sin ess w holly b y th eir B ro kers, w ho a re th eir p rin cip al M erc h an ts .” 271 Forw ard co ntr a cts w it h la rg e w hole sa le m erc h an ts w ere th e ru le b o th in th e C oro m an del an d in Ben gal, 272 w it h m erc h an ts w ho c o ntr a cte d fo r th e in vestm en t fr e q u en tly b o rro w in g “ la rg e su m s o f money to c a rry it o n” a n d w ealt h y b an kers a ctin g a s th eir g uara n to rs.

273 T he C om pan y w ould n’t alw ay s se cu re su ch g uara n te es. “ T he w ealt h y m erc h an ts liv in g in H ugli o r K asim baza r h ab it u ally re fu se d th e C om pan y’s dem an d fo r fin an cia l se cu rit y as th eir cre d it an d bu sin ess sta tu s w ere unim peach ab le .” 274 H um e s ta te s in t h e s a m e m em oir t h at t h e g re ate r t h e a d van ce t h e m ore c e rta in t h e Com pan y w as o f r e ce iv in g th e g oods o n tim e, w hic h is p ro bab ly w hy in B en gal th e g ro up k now n a s dad ni o r dad an m erc h an ts w ere u su ally p aid a s m uch a s 5 0 to 7 5 p erc e n t o f th e c o ntr a ct v alu e in ad van ce .

275 F ro m t h e 1 750s, w it h l a rg e p arts o f I n dia r e elin g u nder t h e i m pact o f t h e M ara th a i n cu rsio ns an d t h e d am ag e i n flic te d o n m erc a n tile f o rtu nes, t h e s u bsta n tia l m erc h an ts w ho a cte d a s b ro kers f o r t h e Com pan y f o und it le ss a n d le ss p o ssib le t o g uara n te e d eliv ery a n d t h e s y ste m b ro ke d ow n. T he dad an merc h an ts w it h dre w fr o m th e C om pan y’s tr a d e, th us fo rc in g it to e sta b lis h m ore d ir e ct c o ntr o l o ver pro duce rs, a d riv e th at c u lm in ate d in a s e rie s o f r e g ula tio ns ( b etw een 1 773 a n d 1 793) th at s o ught to re d uce w eav ers to th e sta tu s o f C om pan y em plo yees, w it h re str ic tio ns o n th eir m obilit y , tig hte r su perv is io n o f l o om s, a n d a m ore o vertly c o erc iv e u se o f d eb t.

276 I n deb te d ness b eca m e a n “ in te g ra l p art of p ro ductio n fo r th e C om pan y” in th e fin al d eca d es o f th e eig hte en th ce n tu ry , an d ab sc o ndin g work ers w ere p u rsu ed r e m orse le ssly .

277 Dutc h e x p o rts fr o m th e C oro m an del r a n a t a lm ost tw o m illio n g uild ers b y th e la te 1 660s, 278 w hile to ta l E IC e x p o rts w ere o fte n i n e x ce ss o f £ 1 m illio n a y ear a c e n tu ry l a te r.

279 V olu m e p ro ductio n m ean t th at th e E uro pean c o m pan ie s d ealt w it h w hole c lu ste rs o f w eav in g v illa g es, e it h er o n th eir o w n o r more u su ally t h ro ugh t h eir b ro kers ( “ p rin cip al m erc h an ts ” ), o n a m odel b ro ad ly s im ila r t o t h e w id ely dis p erse d Verla g n etw ork s th at S outh G erm an co m merc ia l fir m s lik e th e F uggers h ad b u ilt th eir pro sp erit y o n in th e th ir te en th to s ix te en th c e n tu rie s.

280 F or m ost o f th e s e v en te en th a n d e ig hte en th ce n tu rie s th e C om pan ie s w ere cru cia lly dep en den t on lo ca l m erc h an t ca p it a lis ts 281 w ho had th e re so urc e s to ru n th eir o w n co m merc ia l n etw ork s an d ev en fin an ce p ro ductio n o n b eh alf o f th e Com pan y. B oth t h e E nglis h a n d t h e D utc h u se d t h e b ig m erc h an ts o f K asim baza r f o r t h eir s ilk b u yin g in N orth B en gal.

282 B en gal silk , C oro m an del c a lic o es, A gra a n d B ay an a in dig o, e tc . w ere a ll, lik e Mala b ar p ep per, h ig hly c o m petit iv e m ark ets ; f o r e x am ple , “ th e c o ntr a ct p ric e f o r s ilk w as a n o bje ct o f in te n se barg ain in g betw een th e (B en gal) m erc h an ts an d th e Euro pean tr a d in g co m pan ie s.” 283 How ev er, b y th e e ig hte en th c e n tu ry th e c o m petit io n o f priv a te , m ostly E nglis h , m erc h an ts in je cte d a new d im en sio n in to th e c o m merc ia l d ynam ic s o f th e E ast I n dia C om pan y. B rit is h p riv ate c a p it a l a n d it s in volv em en t in th e c o m merc e o f I n dia s a w a s te ad y e x p an sio n in th e e arly p art o f th e e ig hte en th ce n tu ry an d th en a b ig ger an d m ore ra p id ex p an sio n in th e la te r eig hte en th ce n tu ry , fo llo w in g dev elo pm en ts th at qu ic k ly open ed th e in la n d tr a d e of B en gal to priv ate ca p it a l an d sa w th e co nte m po ra n eo us c a p tu re o f S ura t i n 1 759.

Alr e ad y b y t h e l a te r s e v en te en th c e n tu ry ( th e 1 660s, i n f a ct) t h e C om pan y e x te n ded a “ w id e m easu re of o ffic ia l to le ra tio n” to th e p riv ate sh ip pin g th at e m erg ed in In dia n p o rts w it h siz e ab le E uro pean tr a d in g co m munit ie s over w hic h th e B rit is h had so m e co ntr o l.

284 M asu lip atn am (n ot a B rit is h se ttle m en t b u t a c o sm opo lit a n p o rt) , 285 M ad ra s a n d C alc u tta b eca m e, in tu rn , th e m ajo r h ubs o f a bu rg eo nin g “ co untr y tr a d e” th at w as p ro gre ssiv ely d om in ate d b y p riv ate c a p it a l. In th e c o nte x t o f Com pan y d om in an ce , t h e t e rm “ p riv ate c a p it a l” is o f c o urse a m biv ale n t, s in ce it w ould h av e t o c o ver th e p riv ate tr a d in g a ctiv it ie s o f o ffic ia ls lik e th e G overn ors o f M ad ra s w ho w ere b ig -tim e p riv ate tr a d ers a t th e s ta rt o f th e e ig hte en th c e n tu ry , o th er C om pan y s e rv an ts w it h c o m merc ia l in te re sts o f th eir o w n, as w ell as th e g re ate r m ass o f so -c a lle d fr e e m erc h an ts w ho w ere en tir e ly o uts id e th e Com pan y. I n 1 681 c a m e th e C om pan y’s “ d ra m atic a n d s u dden d ecis io n to w it h dra w fr o m th e lo ca l tr a d e o f th e In dia n O ce an ,” 286 an d a p o te n tia lly v ast fie ld o pen ed u p fo r th e ex p an sio n o f n on- Com pan y c o m merc ia l c a p it a l, w here t h e m ain c o m petit io n s te m med n ot f r o m t h e C om pan y it s e lf b u t fr o m in dig en ous A sia n c a p it a ls t r a d in g t o t h e R ed S ea a n d t o m ark ets lik e A ch eh a n d t r a d in g b etw een th e m ain c o asta l re g io ns o f In dia . In th e tr a d e b etw een S ura t a n d B en gal, th e fr e e m erc h an ts w ho ev en tu ally gain ed co ntr o l of C alc u tta ’s sh ip pin g fa ce d “fo rm id ab le co m petit io n fr o m A sia n sh ip o w ners.” 287 Y et B rit is h d om in an ce o f In dia ’s c a rry in g tr a d e w as sw if t, a n d b y th e 1 730s A sia n - ow ned s h ip s h ad la rg ely c e ase d to tr a d e b etw een B en gal a n d S ura t.

288 B y th e 1 780s fr e e m erc h an ts were g ro w in g r a p id ly i n n um bers a n d w ealt h , 289 b eg an t o s u pply a l a rg e p art o f t h e C om pan y’s e x p o rts of t e x tile s ( in t h e D hak a ara ng s v astly m ore t h an e it h er t h e C om pan y o r it s C om merc ia l R esid en t) , 290 an d t o ok t h e le ad in o pen in g u p n ew a re as f o r t r a d e.

291 O ne u psh ot o f t h is s u rg e o f p riv ate c o m merc e was th at a s m uch a s ca . £15 m illio n c o uld b e s e n t h om e in r e m it ta n ce s o ver th e tw en ty -se v en y ears betw een 1 757 a n d 1 784.

292 B y t h e 1 790s t h e m assiv e e x p an sio n o f B en gal in dig o, m uch o f w hic h c a m e fr o m A wad h a n d f u rth er a fie ld , w as d om in ate d b y p riv ate m erc h an ts .

293 T heir c h ie f c o ntr ib u tio n t o t h e co m merc ia l h is to ry o f b o th B rit a in a n d I n dia w ere th e “ h ouse s o f a g en cy ” w hic h C alc u tta -b ase d f r e e merc h an ts w ere la rg ely r e sp o nsib le f o r e sta b lis h in g. I t w as th is la y er o f c a p it a l th at h elp ed to d estr o y th e m onopo ly o f t h e E ast I n dia C om pan y e arly i n t h e n in ete en th c e n tu ry .

294 The tr a n sa tla n tic tr a d es w ere ro ughly a ce n tu ry ah ead o f B rit is h p riv ate en te rp ris e in A sia in in novatin g t h e c o m mis sio n s y ste m a s t h e c h ie f m eth od o f t r a d in g t y pic a l o f c o m merc ia l c a p it a ls i n t h at se cto r. T he r e aso n s h ould b e o bv io us: p riv ate c a p it a l w as d om in an t in t h e c o lo nia l t r a d es b y t h e m ain part o f t h e s e v en te en th c e n tu ry , in deed it n ev er f a ce d t h e c h alle n ge o f t h e b ig “ C om pan y m erc h an ts ” ex ce p t fo r th e R oyal A fr ic a n C om pan y’s sh ort- liv ed m onopo ly o f th e sla v e tr a d e. T his p re co cio us dev elo pm en t o f n on-m onopo ly , p riv ate e n te rp ris e w as sig nif ic a n t b eca u se a lr e ad y b y th e 1 660s th e co lo nia l tr a d es w ere “ am ong th e g re ate st o f E nglis h tr a d es.” 295 In In dia , H ouse s o f A gen cy o nly ev olv ed f r o m t h e 1 770s a n d t h en m ore r a p id ly f r o m t h e 1 790s, f o llo w in g C orn w allis ’s b an o n s e rv an ts of th e E ast In dia C om pan y e n gag in g in p riv ate c o m merc ia l e n te rp ris e .

296 B ut th e C alc u tta a g en cy house s a re th e m ost p alp ab le lin k b etw een th e tw o m ain p erio ds o r “ ep o ch s” o f B rit is h c o m merc ia l ca p it a lis m , w hose d iv id in g lin e lie s a t th e s ta rt o f th e “ lo ng n in ete en th c e n tu ry ” ( 1 784– 1914), in th e years afte r 1784 w hic h sa w th e en din g o f th e A m eric a n W ar o f In dep en den ce , a b o om in n ew co m mis sio n h ouse s, 297 a n d a r a d ic a lly n ew e co nom ic c o nju nctu re t h at s a w b an kin g r e v olu tio ns o n b o th sid es of th e A tla n tic , a dra m atic ex p an sio n of th e co tto n in dustr y in B rit a in , an d a su rg e in man ufa ctu re d ex p o rts to th e U S an d o th er in te rn atio nal m ark ets . M ean w hile , th e E IC ’s tr a d in g monopo ly w as f o rm ally t e rm in ate d i n 1 813, t h at o f t h e L ev an t C om pan y i n 1 825.