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§ 2. Geographical Discoveries and the beginning of a World Trade.

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The fifteenth century from its beginning had seen one geographical discovery after another. Perhaps we may say that the sailors of Genoa had begun the new era by reaching the Azores and Madeira. Then Dom Henrique of Portugal, Governor of Ceuta, organised voyages of trade and discovery down the coast of Africa. Portuguese, Venetian, and Genoese captains commanded his vessels. From 1426, expedition after expedition was sent forth, and at his death in 1460 the coast of Africa as far as Guinea had been explored. His work was carried on by his countrymen. The Guinea trade in slaves, gold, and ivory was established as early as 1480; the Congo was reached in 1484; and Portuguese ships, under Bartholomew Diaz, rounded the Cape of Good Hope in 1486. During these later years a new motive had prompted the voyages of exploration. The growth of the Turkish power in the east of Europe had destroyed the commercial colonies and factories on the Black Sea; the fall of Constantinople had blocked the route along the valley of the Danube; and Venice had a monopoly of the trade with Egypt and Syria, the only remaining channels by which the merchandise from the East reached Europe. The great commercial problem of the times was how to get some hold of the direct trade with the East. It was this that inspired Bristol skippers, familiar with Iceland, with the idea that by following old Norse traditions they might find a path by way of the North Atlantic; that sent Columbus across the Mid-Atlantic to discover the Bahamas and the continent of America; and that drove the more fortunate Portuguese round the Cape of Good Hope. Young Vasco da Gama reached the goal first, when, after doubling the Cape, he sailed up the eastern coast of Africa, reached Mombasa, and then boldly crossed the Indian Ocean to Calicut, the Indian emporium for that rich trade which all the European nations were anxious to share. The possibilities of a world commerce led to the creation of trading companies; for a larger capital was needed than individual merchants possessed, and the formation of these companies overshadowed, discredited, and finally destroyed the gild system of the mediæval trading cities. Trade and industry became capitalised to a degree previously unknown. One great family of capitalists, the Welser, had factories in Rome, Milan, Genoa, and Lyons, and tapped the rich Eastern trade by their houses in Antwerp, Lisbon, and Madeira. They even tried, unsuccessfully, to establish a German colony on the new continent—in Venezuela. Another, the Fuggers of Augsburg, were interested in all kinds of trade, but especially in the mining industry. It is said that the mines of Thuringia, Carinthia, and the Tyrol within Germany, and those of Hungary and Spain outside it, were almost all in their hands. The capital of the family was estimated in 1546 at sixty-three millions of gulden. This increase of wealth does not seem to have been confined to a few favourites of fortune. It belonged to the mass of the members of the great trading companies. Von Bezold instances a “certain native of Augsburg” whose investment of 500 gulden in a merchant company brought him in seven years 24,500 gulden. Merchant princes confronted the princes of the State and those of the Church, and their presence and power dislocated the old social relations. The towns, the abodes of these rich merchants, acquired a new and powerful influence among the complex of national relations, until it is not too much to say, that if the political future of Germany was in the hands of the secular princes, its social condition came to be dominated by the burgher class.

A History of the Reformation (Vol. 1&2)

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