Venice, Amsterdam, and London During the Renaissance

Venice, Amsterdam, and London all were leaders in commercial development during the Renaissance. This is due in part to their outlook on diversity, the proximity to waterways, and their ability to structure stable financial institutions. Venice started the commercial revolution in Europe during the 1300s. They encouraged people of different ethnic backgrounds to move to their city. This diversity allowed a variety of specialists and experts to set up shop in the city. These experts gave them the knowledge to create infrastructures that would support a commercial industry. Banks were set up to accumulate capital to finance international commercial venture, promissory notes were devised to aid in the easy transference of money to and from the New World and other exotic locations, assembly line factories were set up to increase the out put of commodities that could be used and sold, artisans perfected their techniques and created quality goods for sale, the beauty of the city attracted tourists and brought in additional money to the Venice economy. (Rabb and Marshall, 1993, pp. 166-169). All of these factors created the stability and commercial success Venice enjoyed for centuries.

Around 1600, however Amsterdam began to develop its own commercial industry. Like Venice, Amsterdam welcomed people from different ethnic and religious backgrounds, and they had access to trade routes and waterways. Unlike England and other countries in Europe, Amsterdam had a population that was more than 50% urban. (Rabb and Marshall, 1993, p. 171). This increased population in the city meant that there were fewer people working in the agricultural trade. In order to meet the food needs of these people, dikes were built to extend land out into the sea for farming. In addition to these plots of land, herring was caught. Herring was a cheap fish that had been traditionally used as a food source in the Netherlands for thousands of years. Their adjunctness to the sea and their fishing industry also made Amsterdam a good ship building center. In addition to these elements Amsterdam’s economy was further supported by cheap labor consisting of women, children, and destitute. (p. 171). Amsterdam expanded its commercial operations to include international trade. To accommodate their capital needs they set up two joint-venture trading companies: the West India Trading Company, and the East India Trading Company. (p.174). In order to keep the costs associated with International Trade down and to increase their dominance in International Trade, institutions in Amsterdam utilized efficient shipping methods, pooling of capital through joint venture companies, and provided insurance for investors to encourage investments. (pp. 174-175). Their final line of defense that helped to strengthen the Amsterdam commercial industry was the creation of the Amsterdam Bank.

England took a different approach to their commercial development. Because they were not able to compete fairly with Amsterdam, England adopted a financial principle known as mercantilism. (Rabb and Marshall, 1993, p. 175). This idea suggests that there is a limit amount of trade that can be supported by the economy. It was therefor most advantageous for one country to acquire as much of that market as possible. To do this, England used oppression and hostilities. Like Amsterdam and Venice, London had opened up to the idea of allowing freedom of religion and an intermingling of classes within the structure of the country. It also had developed a thriving urban environment by 1690, which flourished with newspapers, overseas trade, sales of stocks, and a wide variety of crafts and trades. (p. 176). The creation of the Bank of England also aided in the development of England’s commercial industry as it provided the public funds to support governmental investments and activities. What made England different from the other cities mentioned above, England’s bank was made up of funds deposited by merchants, aristocrats, and commoners. These deposits were secured by taxes collected and paid an annual dividend. This made the Bank of England a sound investment that further encourage investment and exploration.

References

Durant, Will. (1953). The Renaissance: A History of Civilization in Italy from 1304-1576 A.D. New York: Simon & Schuster.

Rabb, Theodore. (1975). The Struggle for Stability in Early Modern Europe. New York: Oxford University Press.