Henry VII - Economy

Overseas trade

Overseas trade

Henry built a new merchant ship to rival Europe’s.

The navigations acts (1485-86) promoted use of English ships. Henry supported the merchant adventures and tried to have monopoly of Hanseatic league.

For every foreign treaty signed Henry added a trade clause to increase revenue - 1490 treaty with Florence, English merchants could trade in the Mediterranean.

Cloth trade

Woollen cloth made up 90% of English exports.

Henry increased cloth exports by 60%, and was exported to Europe mainly Antwerp.

1487 Henry banned the exports of unfinished cloth and wool to encourage the finishing process in England.

Main trade agreements

1486 Henry negotiated a treaty with France to remove all trade barriers from 1487.

1489 Medina del Campo, Spain and England had favourable import duties.

1490 Treaty to allow English wool to be imported into Pisa.

1489 a Treaty was signed with Denmark to give English fishermen access to Icelandic waters.

Agriculture, engrossment & enclosure

Agriculture - 90% of people lived off the land, mostly arable farming (crops) however pastoral farming (animals) was becoming popular.

Enclosure- fencing off land for private use that was once common land. At worse forced people off land, left peasants with no land, which caused entire villages to disappear.

Engrossment - several farms were joined together to be more profitable.

The Hanseatic League

German merchants with special trading privileges and monopoly for purchase and carriage over wool, cloth , tin & coal in Germany, Russia, Scandinavia & Britain.

Henry VII tried to break up their monopoly (but failed) as they were the prime carriers of English goods and the reason for decline of English merchant shipping.

Exploration

1497 Henry VII patronised John and Sebastian Cabot who claimed land in North America for him such as Newfoundland where there were extensive fishing grounds.

Re- coinage

Henry VII created new coins like the ‘sovereign’ & ‘shilling’. He also introduced the portrait of the king on the coins.