economic development chapter 5 tudors

the economy at the start of 1485

Henry inherited a weak, unstable economy suffering from the aftermath of the War of the Roses, Black Death, and earlier economic slumps

Navigation act (1489)

built upon the 1485 Act by specifically prohibiting foreign ships from carrying goods between England and its overseas possessions,By restricting foreign shipping in these routes, Henry VII strengthened English control over trade, increased customs revenue, and supported the development of a national maritime economy.

first navigation act

1485

requiring that all goods imported into England be transported exclusively on English ships This aimed to strengthen England’s merchant fleet, reduce dependence on foreign vessels.

The acts' protectionist nature and restrictions meant that they were not universally successful and did not last in their original form. 

intercursus malus

1506

It was intended to be highly advantageous for English merchants, granting them favorable trade terms in Burgundy, including the removal of duties on English cloth exports. However, the treaty was so unfavorable to Burgundy that it was never fully ratified by the Burgundians

intercursus magnus

1496

• A major trade agreement with Burgundy, restoring normal trading links after Margaret of Burgundy backed Warbeck. Helped boost cloth exports.

• This treaty re-opened the Flemish markets to English cloth, vital for English exporters and customs income.

• The treaty reflected Henry’s pragmatic foreign policy balancing trade and dynastic diplomacy

trade embargo

1493 (Netherlands/Burgundy): Henry imposed a ban on all trade with the Netherlands (Burgundy) because Archduke Philip and Margaret of Burgundy were providing support and hospitality to the pretender Perkin Warbeck. This embargo forced English merchants to move their trading base from Antwerp to Calais. The ban lasted until 1496, when it was ended by the Intercursus Magnus treaty after Philip withdrew his support for Warbeck

Customs duties

Taxes on imports and exports, particularly wool, brought significant revenue to the crown.

The cloth trade generated about 90% of England’s customs revenue during Henry’s reign.

33,000 in 1485 and 40,000 by 1509

what did henry vii grant to john canot

he recieved authorisation from henry vii to “ search out any isles countries regions or provinces”

Henry built up the English navy, leaving Henry VIII with nine ships

when did he set sail

1497 and discovered what became known as Newfoundland and reported existense of exstensive fishing grounds

in what ways did they facilitate the switch toward sheep farming

peasant farmers were having their strip farms and access to open fields and common rights removed

Henry VII approach to trade

• Henry VII had no specific "economic policy". Crown approach to trade was inconsistent; he prioritized customs revenue and dynastic security, often sacrificing trade interests, as seen with the embargo on the Netherlands due to Perkin Warbeck. The period saw "relative economic stability," with prices and wages generally steady and some labourers experiencing rising real incomes in the 1490s compared to later Tudor periods.

economic impact of trade

Wool exports were around 40,000 sacks annually

• In the 1490s, English wool export revenues were about £40,000 per year, an increase from pre-war levels.

• Wool and cloth were England’s main foreign exchange earners.

1. What was the population of England at the beginning of the 15th century?

1. 2.2 million people

1. Where did most people live?

1. The countryside and relying on some type of farming for a living

1. What % lived in towns? Name 5 with population figures.

1. Londons population exceeded 50,000 ,

2. Norwich exceeded 10,000

3. bristol york and coventry had populations between 8000 and 10000

1. What were the main industries in cities?

1. Increase in finished cloth led to development of weaving, fulling and dyeing → offered opportunities for rural employment → some historic cities decayed with the move to newer manufacturing centres

1. What dominated in the 1480s and 1490s and why?

1. Sheep farming - this was a reflection not only of the profitability of cloth farming but also the increasing demand for wool as the population grew and trade overseas developed

1. What were the negative aspects of the move towards sheep farming?

1. Peasants lost their access to land and common rights and were left destitute in the process

How much of English exports were made up of the cloth trade?

90%

How much did the cloth trade increase by under Henry VII’s reign?

60%

1. Where was finished cloth exported from and to where?

From London through the merchant adventurers . From Antwerp English cloth was exported all over Europe

1. What was the role of the Merchants Adventurers?

1. Founded in 1407, they were a trading organization . the king also used their expertise in negotiating trade treaties such as the intercursus magnus and the intercursus malus

1. When and why did Henry impose a trade embargo on the Netherlands?

1. As a result of the fear and insecurity brought about by MArgaret of Burgundy’s support for Perkin warbeck,instead of trading directly with the netherlands merchants were required to direct their trade through calais he did this in 1493

1. What was Henry’s attitude towards exploration by sea?

1. Henry VII sponsored John Cabot’s son in an unsuccessful attempt to find the “northwest passage”

customs duties

customs duties increased from £33,000 in 1485 to over £40,000 1509

Did economy change under henry vii

1. The period saw advancements in farming techniques and land use., with landowners converting arable land into pasture for sheep farming, which catered to the growing wool trade raised incomes but also left many peasants destitute 

2. Henry VII established important trade agreements, including the Intercursus Magnus with the Netherlands in 1496, which increased English exports and facilitated a rise in merchant activity. Agriculture and trade expansion

merchant adventurers

Merchant Adventurers + Merchants of the staple→ controlled exports particularly in wool 

- Cloth exported through London to Antwerp (then the rest of Europe) by Merchant Adventurers (could never fully dominate because of privileges of the Hanseatic League).

Balance: Increasingly it was finished cloth that dominated the trade, wool trade reduced therefore the company’s influence reduced

- Other industries failed to compete with the rest of Europe E.g. Germany is better with mining. Spanish, Portuguese and Dutch were better at shipbuilding.

agriculture

largely agrarian economy, open field husbandry, common rights (increasingly under threat due to enclosure)

-Pastoral farming North/West (highland zone), Mixed farming in South/East (lowland zone)

-Increase in pastoral farming due to cloth trade

exploration

John Cabot  arrived in Bristol from Spain around 1494 at a time when sea merchants were looking for new fishing grounds

 →voyage to find open fishing ground, found what came to be known as ‘newfoundland’ 1497

-1498 Second voyage he didn't return.

-William Weston, 1499/1500 the first englishman to lead an expedition to the new world

-Sebastian Cabot→ sponsorship from the king (shows Henry VII’s interest in exploration)  to try and find ‘north west’ passage to Asia in 1508

-Henry was responsible for the creation of a small royal navy and Europe’s first dry rock at Portsmouth he leaves Henry VIII with nine ships

trade with the hanseatic league

1486: Henry confirmed the rights of the Hansa

1487: Henry banned the export of unfinished cloth by alien merchants 

1489: Prohibition on the Hansa’s exportation of bullion

1493: Henry paid minimal compensation when the Hansa’s London headquarters were attacked at League’s privileges 

1504: Henry restores Hansa’s privileges - instead gains the Yorkist claimant Earl of Suffolk