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—In England this stage lasted through approximately five centuries, from 1200 to 1700. The merging of one period into another came about so gradually that a definite date can hardly be designated, and the time is so long that undoubtedly many changes occurred in the economic activities as well as in the government and literature of the people.

While it is probable that merchants, middlemen who bought from one person and sold to another, had thrived throughout the earlier civilizations of Asia, Africa, and Europe, and even extended their trade to Britain, merchandising held a comparatively minor position in England until the twelfth century, when merchants became very prominent, so much so that combinations or guilds were formed by them in all the large towns for the purpose of protecting and controlling the conduct of business and, to some extent, of maintaining a monopolistic control of the trade in their particular businesses. A guild was an association or fraternity of persons engaged in the same line of business. It differed from a trade-union in that the guild was an association of masters and employees, whereas the trade-union is an association of employees only.

Many of the merchant guilds grew wealthy and strong; they obtained Royal Charters from the Crown either by direct payment or by an arrangement to pay a special tax, or secured recognition in the borough charters. By authority of these they were endowed with certain privileges such as: (a) limiting the number of their own members and the number who could participate in any line of merchandising; (b) entering into secret price agreements and trade arrangements; (c) controlling the import and export of wares; (d) the establishing of a court which had absolute jurisdiction over its members and others not members engaged in the same line of business. This court “could settle trade disputes, discipline its apprentices with the whip if necessary, could imprison its journeymen who struck work, and could fine its master members who acted against its rules. And, finally, the members of the company were forbidden to appeal to any other court unless their own court failed to obtain justice for them.”[4] Moreover, the meeting together for social enjoyment, feasting, and worship; the helping one another in sickness and poverty; and uniting together for the pursuit of some common cause, naturally brought about very close and fraternal relations.