LONDON (COMMERCE). 



529 



mercial intercourse. After this, little is known of 

 its trade, until the close of the second century, when 

 it is again mentioned as having become " a great 

 and wealthy city." In 359, it is said of England, 

 that its commerce was so extended, that 800 vessels 

 were employed in the port of London for exportation 

 of corn only. Three centuries after, Bede styles it 

 " an emporium for many nations repairing to it by 

 land and sea.' 7 Fitz-Stephen, who lived in the reign 

 of Henry II., says, " that no city in the world 

 exports its merchandise to such a distance as Lon- 

 don." He does not, however, inform us what goods 

 were exported, or to what countries they were car- 

 ried. But among the imports, he mentions gold, 

 spices, and frankincense, from Arabia ; precious 

 stones from India, and palm-oil from Bagdad. In 

 1296, the company of Merchant adventurers was 

 first incorporated by Edward I. The Hanse mer- 

 chants also received considerable privileges about 

 the same time. 



It was not, however, till the reign of Elizabeth 

 that England began to feel her true weight in the 

 scale of commerce. She then planned some settle- 

 ments in America, particularly in Virginia. About 

 this period the civil dissensions in Flanders caused 

 multitudes of families to flock to London, and to 

 bring with them their trades and their riches. This 

 great addition to the population of the city, and the 

 consequent increase of its commerce, led to the erec- 

 tion of the Royal Exchange, by Sir Thomas Gresham. 

 In 1579, the Levant or Turkey company, and also 

 the Eastland company, were established. On the 

 3 1st December, the queen granted the first patent to 

 the East India company. The first adventure prov- 

 ing successful, the company continued its exertions, 

 and hence has arisen the most splendid and powerful 

 mercantile association that probably ever existed in 

 the world. Assurance and insurance companies 

 were now established in London ; and the company 

 of Spanish merchants was likewise incorporated. In 

 the reign of James I., the foreign trade rapidly 

 increased. Many of the patents granted by Eliza- 

 beth were annulled, and the trade thrown open. 

 Among the circumstances which occasioned the vast 

 increase of trade during this reign, may be reckoned 

 the colonization of America and the West India 

 islands. The new discoveries, likewise, which were 

 every day made in different quarters of the world, 

 had a powerful effect in stimulating numbers of 

 speculating persons to commercial exertion and 

 adventure. 



During the peaceful part of Charles I.'s reign, the 

 commerce of the metropolis still continued to make 

 rapid progress. The augmented commerce of its 

 port may in some measure be estimated by the quan- 

 tum of ship-money^ which this monarch imposed on 

 the city in 1634. About this time Prices current 

 were first printed and in 1635, an order was issued 

 by the king in council to " the post-master of England 

 for foreign parts," requiring him to open a regular 

 communication, by running posts, between the metro- 

 polis and Edinburgh, Ireland, and a variety of other 

 places. Previous to 1640, it was usual for the mer- 

 chants to deposit their money in the Tower mint. 

 But this deposit lost all its credit by the ill-advised 

 measure of a forced loan, which the king thought 

 proper to make. The merchants, in consequence, 

 were obliged to trust their money to their apprentices 

 and clerks. The circumstances of the times and 

 opportunity holding forth great inducements to 

 frauds, many masters lost at once both their servants 

 and their money. Some remedy became necessary. 

 Merchants now began to lodge cash in the hands of 

 the goldsmiths, whom they commissioned also to 

 receive and pay for them. Thus originated the 



practice of Banking; for the goldsmiths soon per- 

 ceived the advantage that might be derived from 

 possessing disposable capital, and began to allow a 

 regular interest for all sums committed to their care ; 

 'and at the same time they commenced the discounting 

 of merchants' bills, atan interest superior to that which 

 they paid. In 1651, the celebrated navigation act 

 was passed, the provisions of which greatly contri- 

 buted to promote the naval and commercial greatness 

 of Britain. This year coffee was introduced into 

 London by a Turkey merchant named Edwards. The 

 sugar trade was now likewise established, and upwards 

 of 20,000 cloths were sent annually to Turkey, in 

 return for the commodities of that country. The 

 plague, in 1665, almost wholly suspended the com- 

 merce of London, so that scarcely a single foreign 

 vessel entered the port for the space of three years. 

 The great fire also occasioned incalculable loss to 

 many of the most opulent merchants. Notwithstand- 

 ing these disastrous events, the spirit of the survivors 

 was roused to uncommon exertions, and in the course 

 of a few years the city rose from its ashes with greater 

 magnificence and splendour. Indian muslins were 

 first worn in 1670, and soon became prevalent. In 

 this year also, the Hudson's-bay company was estab- 

 lished, with very extensive powers. The Green- 

 land fishing company was incorporated in 1693, and 

 the institution of the Bank of England rendered the 

 following year justly memorable in the commercial 

 annals of the metropolis. The great progress that 

 commerce made in a few years may be inferred from 

 the following statement : the number of vessels 

 belonging to the port of London in 1701, amounted 

 to 560, carrying 84,882 tons, and 10,065 men. In 

 1710, the customs of this city are stated at 1,268,095, 

 and those of all the out-ports only at 346,081. 



During the reign of George I., the trade of Lon- 

 don made little, if any, progress, owing to the South- 

 Sea scheme, the rebellion of 1715, and the Spanish 

 war. But in 1732, commerce began to revive : its 

 advances, however, were comparatively slow, till the 

 peace of Aix-la-Chapelle in 1748, after which it 

 extended with uncommon rapidity. The next check 

 it sustained was occasioned by the American war. 

 But no sooner was peace signed, than it proceeded 

 with renewed vigour ; for so early as 1784, the 

 value of exports to America only had increased to 

 3.397,500, considerably above the greatest amount 

 in any year before the war. The net sum of duties 

 levied in the port of London, and paid into the 

 exchequer this year, rose to the vast sum of 

 4,472,091. From this period to 1790, the com- 

 merce of London continued uniformly increasing. In 

 that year, however, in consequence of the commence- 

 ment of the war, the value of exports was upwards 

 of 2,000,000 less than the preceding year, though 

 the imports scarcely suffered any diminution. Num- 

 erous bankruptcies consequently took place, but the 

 cimely interference of the legislature, and the voting 

 of exchequer bills to the amount of 5,000,000, for 

 the use of such persons as could give sufficient 

 security, soon checked the growing distress. In the 

 course of three succeeding years, the appearance of 

 things was entirely changed. In 1796, the exports 

 of London amounted in value to 18,410,499, and 

 the imports to 14,719,466. The number of British 

 ships that entered the port amounted to 2007, carry- 

 ing 436,843 tons ; and 2169 foreign vessels carrying 

 287,142 tons. The total, entering coastwise, was 

 11,176, including repeated voyages, which made a 

 tonnage of 1,059,915. The following year, some 

 alarm was spread among the merchants, by the stop- 

 page of bank-payments in specie ; but, through the 

 intervention of parliament, confidence was soon 

 restored. The net amount of the customs was 

 2 L 



