In the latest Age of Invention newsletter, Anton Howes considers the changing nature of English foreign trade as possibly one of the main drivers of the unprecedented growth of London from 1550-1650, and how both English and Dutch sailors differed from most of the rest of Europe:

An English merchant ship of the late 16th to early 17th century: this is a replica of the Susan Constant at the Jamestown Settlement in Virginia. The original ship was built sometime before 1607 and rented by the Virginia Company of London to transport the original settlers to Jamestown.
Photo by Nicholas Russon, March 2004.

I am fairly convinced that this transformation was sparked by the changing nature of England’s trade, with its merchants taking near-total control of it themselves, whereas once they had relied on foreign merchants to bring many of their imports to them. And thanks to their adoption of celestial navigation techniques from the Iberians and Italians — learning to read the stars, to find their latitude at sea — the English gained the ability to discover new routes, noting details down for others to come back again and again and create more permanent new trades. In merchants’ parlance of the time, the English increasingly went in search of “the well head” — to buy things at source, where they were cheapest.

This sounds like the common-sense thing to do. But it was surprisingly rare. Very few countries’ merchants attempted to take advantage of such opportunities for arbitrage — to buy where things were cheapest and sell them where they were most expensive. Even the English themselves, despite their newfound search for well heads, rarely exploited arbitrage opportunities to the full. Although they bought at source, they tended, at first, to sell the goods they’d acquired back in London, to serve English consumers rather than taking them to wherever the goods would sell for the highest prices. This was instead the strategy of the Dutch, whose trading techniques were by 1600 said to surpass all others. Indeed, the Dutch were also some of the only merchants who discriminated on prices within markers, “not shaming to retail any commodity by small parts and parcels”, as one English merchant complained, charging a multitude of buyers according to what they thought they could get from them — something that “both English merchants and Italians disdain to do in any country whatsoever.” It was seemingly considered beneath them.

I’m not wholly clear why the English only sold wholesale when they knew that price discrimination was a Dutch advantage. It seems, at first, to be irrational. But I suspect it had something to do with the wider difficulties of trading abroad. For the English and Dutch were quite unusual in Europe in the early seventeenth century for being among the only merchants willing to risk sailing to shores where their own rulers held no sway.

The Hanseatic merchants of the North Sea and Baltic, who had once been dominant in London, had been stripped of their privileges there and displaced by the English, later confining themselves largely to the Baltic. German mercantile efforts were otherwise generally concentrated inland. And French merchants were apparently under-capitalised, or so the English suspected, because “gentlemen do not meddle with traffic, because they think such traffic ignoble and base”. French merchants did occasionally sail down the Atlantic coast to Spain, and into the Mediterranean to trade with Italy and the Ottoman Empire, but overall they were content to have third parties to come to them — there was always the attraction to foreign merchants of being able to buy French wines, salt, linens, and grain.

As for the once-great Italians, they had apparently been impoverished by the Portuguese discovery of a direct route around Africa to the Indian Ocean, and perhaps by the depredations of various Mediterranean predators too — Algerian corsairs, Ottoman galleys, and the like. Although their rulers could themselves be merchants — the Grand Duke of Tuscany, a Medici, was considered the greatest merchant of them all — by this stage the Italians only rarely ventured far abroad themselves, except over land. Indeed, the English considered them impious for not risking the seas, accusing them of blasphemy for not trusting their lives and livelihoods to God. Whereas the Venetian merchant-nobility had once been required to spend time aboard ship, English commentators by 1600 noticed that their mariners were now overwhelmingly Greek. “Their customs have decayed, their ships rotted and their mariners, the pride of their commonwealth all become poltrones” — that is, loafers or idlers — “and the worst accounted in all those seas”. A Tuscan exploration of the coast of South America in 1608, to look into founding a colony in what is now French Guiana, had to be captained and piloted by Englishmen. What reputation the Italians maintained was as financiers and money-exchangers — perhaps because the Genoese were the only merchants permitted to take the vast quantities of New World silver out of Spain.