Growth of Trade and Towns

Growth of Trade and Towns

Barriers to trade during the Early Middle Ages1. Manors (Self-sufficient)2. Little Money (barter system)

3. Poor Roads 4. Few Bridges 5. Feudal lords charged tolls for use of roads

and bridges.6. Church (rules for business)

A. “Just Price” (no profit allowed)

B. Usury – Charging of interest

Trade Routes Emerge

Begin trading again first in Italy.

Why? What about Italy made it a center for world trade?

1. Trading spread from Italy to Northern Europe along coastal shipping lanes

2. The Hanseatic League is formed.

3. Flanders becomes a center for trade

The Crusades caused an increase in the demand for trade.

From EuropeFur Timber Fish WoolGrain LeatherWine WeaponsOil Armour

From Middle EastSpices CottonMedicine LinenPerfumes IvoryDyes GoldSilk Silver

Why?

Markets and fairs emerged. How did this help Europe?

Increased trade led for the need of more products = manufacturing

Domestic System – All work done at home.

Trader buys wool

Sells product to highestbidder

Increased trading leads to investment.People start building capital.

Why would the building of capital further improve the European economy?

Define “Capital”

A “market economy” emerges – Land, Labor and Capital is controlled by individuals.

What is a market economy?

Changes in European society as a result of the growth of towns

1. Rights of townspeople

2. Guilds Form

3. Rise of the Middle Class

Rights of Townspeople

1. Freedom – If no one challenged the status of a serf for a year and a day they became free.

2. Exempt Status – Did not have to perform services to the manor.

3. Town Justice – had their own courts.

4. commercial privileges – could sell products openly and freely.

Guilds – Association of a group of people that have the same/similar trade.

Merchants Guilds

Craft Guilds

There were two types of Guilds that formed in the growing towns of

Europe

Merchant Guild1. Exclusive right to trade in town.

2. Outside merchants had to pay a fee to trade in town.

3. Charitable organizations

A. loans to members

B. supported widows and orphans of deceased members.

Craft Guild1. Set hours and conditions of labor

2. Regulated quality of work

3. Gave loans to members and charity

Stages

1. Apprentice

2. Journeyman

3. Master

Stages of Craft Guild

1. Apprentice - Age 7 parents sent boy to work with master and learn trade.

(3-12 years)2. Journeyman - Worked for daily

wages. Became a master by submitting proof which would be

judged by masters.3. Master - could start own business

Change in society

The revival of the towns, the increase in trade and the formation of the Guilds caused a revolutionary change in European society.

There arose in late Medieval Europe a new class, neither

Noble nor Serf - one that would have a profound impact on

human history from that time on……

The Middle ClassThe Middle Class

Rise of the Middle Class

Middle class was called burgesses in England and

Burger in Germany.

Why was the political power of the middle class increasing

during this time period?

Life in Medieval Towns1. Pop. Ranged from 5,000-80,0002. Construction

3. Extremely poor conditions

A. Untreated SewageB. Garbage in streetsC. No police, private body guards.D. No lightingE. Lots of diseaseF. Animals roaming freely

1. As the number, size and influence of the towns increased, the number of serfs decreased

2. If the Serfs remained on the land and did not move to the cities, they had a market for their excess food.

3. New and improved farming techniques and methods reduced the need for farmers. More serfs left the land and moved to the towns and cities where there was opportunity for freedom.

Decline of Serfdom

The Black Death

Enter – THE RATand the Bubonic Plague

Discuss how the plague impacted the social, economic and religious institutions of Europe.

Big Picture Questions1. How did the growth of towns decrease the political power of

nobles?

2. How did guilds help to improve the economy of Europe?

3. How did the growth of towns change the social structure?

4. Why did it take Europe 100 years to recover from the Black Plague?