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Economy, trade and empire, 1625-88
The changing cloth trade
− Wool trade was the production of woollen cloth
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− Merchant/clothier gave the fleece (raw materials); the children would card the fleece (brush); women would spin the
fleece into thread (spinsters); men would weave the thread into cloth using looms; the cloth was taken by the
merchant/clothier and sold
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o The best quality was exported
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o The domestic system was also unregulated because it was based in homes and often not in town
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5million
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o Some cloth production areas decline as a result
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o The Dutch had higher standards of skill so became important in the trade
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o They also introduced a knitting machine to speed up knitting
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Population of roughly 575,000
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− It started to grow rapidly, possibly due to many minor developments working together…
→ Banking & insurance industries developed in London
→ It was the centre of the legal system – Inns of Court
→ Transport was good – both roads and the river Thames
→ Population growth due to better opportunities
→ More skilled and better educated workforce
→ Important markets in London influenced the price of markets around the country, e
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grain,
livestock and cloth
− All social classes migrated to London
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− The gentry could look for a loyal career or one in the chartered companies e
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The East India Company
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− Service industries grew to support the other industries
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Antwerp was the financial centre until the end of
the 16th century
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Interest rates for loans…
w 1571-1624: 10%
w 1624-1651: 8%
w 1651-1714: 6%
w Credit became more attractive
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− Money scriveners⇒ arranged loans or leant money
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Between 1652 and 1555, over £1million passed through his
firm
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He made over £3,000 interest a year and produced the first cheque
in 1659
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They also bad secure vaults to store gold
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Goldsmiths accepted bills and notes from
other banks
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− Marine insurance⇒ covers losses to ships and cargo
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1601 marine insurance law created an ‘Assurance Court’ to deal with insurance
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Premiums dropped due to increase in trade
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− Fire insurance⇒ boomed in 17th century, state funded insurance began in Germany in 1623
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1638 Charles I’s scheme to insure London lapsed
due to the civil war
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A 1667 Act for rebuilding mentioned insurance
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Changed to agricultural techniques
− Introduction of new crops which improved soil productivity e
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clover
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− Market gardens
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o One owner from each field instead of many
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o Originally for sheep farming but extended to arable farming
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o Enclosure helped some farms to improve their techniques
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He tried
to improve food production
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o Clover was grown to improve the soil
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1700: 1
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o Potatoes, turnips, flax, hops, cabbage and hemp were grown
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− Water meadows
o Developed by diverting streams to keep an area of land damp
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o Working animals benefitted, the number of horses doubled and started to replace oxen
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g
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The development of specialised farming and the growth of employment
− Specialised farming
o With the introduction of new techniques, many began to realise that different regions could specialise in
certain farming types which suited their local conditions
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o Small tenants lost land through enclosures and became agricultural labourers
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o The 1662 Settlement Act made it easier to employ labourers
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Capital investment in agriculture
− Free hold: land is owned with no obligations
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− Investment was needed to enable changes in agriculture, this meant that only the higher gentry and aristocracy
benefitted by investing in modernisation, e
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enclosures ad new crops
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− Also, due to extension of markets from local to regional, farmers could supply areas where demands were high
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They produced arable crops; usually wheat
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− Tenancies improved production as tenants paid high rents, which landowners could invest and tenants had to
maintain buildings and fences
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− Landlords could loan money to tenants to improve roads and water courses
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The traditional charter market system regulated by the
government was no longer efficient
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− Market gardens developed around London, plus river transport gave rural areas access to the city
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Before 1663, parishes maintained roads but did not do so efficiently
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− 1657: first stagecoach network from London to Bristol and Bath
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− Water routes were improved making rivers wider, e
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Thames, Severn and Duse
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g
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− Lowland Scotland improved around Edinburgh
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The significance of North America and Jamaica
− North America…
o Jamestown colony in Virginia 1607
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o Few slaves so indentured servants (poor people on fixed term contracts) were widespread
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1680 - Scottish Presbyterians
settled in Norfolk, Virginia
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o Puritan colonies set up in Nicaragua and Massachusetts
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o Puritans set up religious colonies
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o 17th century English settlements start 1612 Bermuda, 1624 St Kitts
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o 1620’s, Spain declined in power, so Britain took over Montserrat, Barbados and Antigua & Barbuda
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o This led to the expansion of the slave trade
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o As a result, sugar was grown instead of tobacco and led to further use of slaves
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o The sugar trade became extremely important
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o Decline of the Spanish empire - due to war, religion and loss of territory
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o Mercantilism - Protection of trade by government
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o Navigation Acts - Goods imported to England had to be on English ships, crewed by at least half the
sailors being English
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o However these Acts were repealed in 1660 and replaced by George Downing
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o 1663 Staple Act - said all goods going from the continent to the Caribbean had to through England
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The effects of Anglo-Dutch commercial rivalry
− Early rivalry…
o Main trading rival was the Dutch – international trade, manufacturing
o 3 Anglo-Dutch wars (1652-54, 1665-71, 1672-74)
o William of Orange ran Britain and Holland as separate countries
o Rivalry was over trade in the east
o Also there was rivalry over American colonies – New Amsterdam renamed as New york
o Cloth finishing was another issue – English unfinished cloth was finished in Holland (unsmooth/bobbly)
o Also the English wanted to establish fishing grounds – which would affect the Dutch finishing industry
− The Anglo-Dutch wars…
o 1649 – Dutch ended their war with Spain, their economy improved compared to England
o 1651 – Navigation Act sought to protect English sea interests and led to 1st Anglo-Dutch war 1652-54
o 1654 - Treaty of Westminster failed to prevent future war
o 1660 Navigation Act attempted to exclude foreigners from English trade
o 1663 – Charles II set up the Royal African company to complete with the Dutch in Africa
o 2nd Anglo-Dutch war (1665-67), the Dutch sailed up the Thames
o 3rd Dutch war (1672-74) due to Charles II’s alliance with France
− The end of Anglo-Dutch Rivalry:
o By 1670, the English were against further wars with the Dutch for economic reasons
o Political reasons were that William III became ruler of the Dutch in 1672 and married his cousin, Mary in
1677 (Charles II niece)
o Religious reasons – Charles II allied with William III against the French
o 1685 – Louis XIV revoted the Edict of Nantes ending protection for protestants in France

The role of the East India Company
− In 1600, 242 London merchants agreed to found the east India Company and their fleet travelled to India for the first
time in 1601 under the command of Captain James Lancaster, their funds totalled £68,000
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− The local rules in the East Indies and India were reluctant to trade their commodities for British goods as they had no
use for them – instead asked for a trade in silver
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− 1623: English activity in the East Indies ended abruptly, a number of British company officials were executed by the
Dutch for attempting to expel the Dutch from their base on the Island of Ambon
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− Peace was made with Portugal who controlled the India region of Goa in 1635
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− The Company’s charter was finally withdrawn by Cromwell in 1657
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− The relations with the Portuguese improved when Charles married Catherine of Braganza in 1662
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− By 1688 the company was a popular choice for investment by wealthy couriers, in the 1860s profits exceeded
£600,000 compared to the £100,000 between 1600-40
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The significance of British control of the triangular trade
− The triangular trade consisted of slaves being taken to Caribbean and North American colonies and sold for local
produce, such as tobacco or sugar, which would them be taken to Europe, it made significant profits
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− In 140 there were no slaves in the English colonies of North America
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− The barbarity associated with slave labour was not acknowledged by the English government, they saw slaves as
property
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− The gold taken from Africa in this trade contributed to the Royal Mint, strengthening the economy
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Was the economy transformed between 1625 and 1688?
− Changes in the agricultural techniques contributed to a growth in output
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− The beginnings of a British monopoly of the triangular trade can be seen at the expense of other powers such as
Portugal and Spain
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− Resentment towards this developed as the government based in London was seen as distant and out of touch
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− Although the economic development was strong, there is a clear correlation between the slowdown in population
growth and a slowing in economic success in the second half of the 17th century
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− Although some changes were made to transport and industry, they were limited
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− Heavy industry was virtually non-existent
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