ÿþ<html> <head> <title> WHKMLA : Historical Dictionaries : Mercantilism </title> <!-- copyright Alexander Ganse, 2005 --> </head> <body bgcolor="lightblue" text="black" link="blue" vlink="red" alink="brown"> <style> <!-- A{ font-weight: bold; font-size: 10pt; font-face: arial; } --> </style> <DIV align ="center"> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD align = "center" valign = "center"> <A HREF = "../../index.html"> <img src = "../../whkmla2.jpg" border = "0"></a></TD></TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width = "150" height = "36" align = "center" valign = "center"> <font size = "2" face = "arial"><B> Timeline </b></font></TD> <TD width = "36" height = "36" align = "center" valign = "center"> <A HREF = "../../timelines/nhb/tlmerc.html"> <img src = "../../region/arrowleft.gif" width = "36" height = "36" border = "0"> </a></TD> <TD align = "center" valign = "center"> <A HREF = "../../timelines/nhb.html"> <img src = "../banhistdic.jpg" border = "0"> </TD> <TD width = "36" height = "36" align = "center" valign = "center"> <img src = "../../region/arrowright.gif" width = "36" height = "36" border = "0"> </a></TD> <TD width = "100" height = "36" align = "center" valign = "center"> <font size = "2" face = "arial"><B> </b></font></TD></TR></TABLE> <font size = "3" face = "arial"><B><i>First posted on April 12th 2005, last revised on August 29th 2007</i></b></font><BR><BR><BR><BR> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD align = "center" valign = "center" width = "900"> <font face = "Times Roman" size = "5"><B> Historical Dictionaries : Mercantilism </B></font> <BR> <font face = "Times Roman" size = "2"><i> http://www.zum.de/whkmla/histdic/nhb/hdmerc.html </i></font> </B></font></TD></TR></TABLE> <BR><BR> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <B>Bank of England</B> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> Established in 1694. The first successful national bank, her purpose to manage the stability of the British paper currency, by maintaining a significant stock of bullion and promising to exchange paper money into bullion on demand. Attempts by the French to establish a similar national bank failed in 1694, 1720 </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <A NAME = "bullionism"><B>Bullionism</B></A> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> The theory of trying to control the flow of bullion, i.e. to prevent bullion from leaving the country and to attract as much influx in bullion as possible. The flow of bullion was regarded an indicator of the success of the economy. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <A NAME = "cadastre"><B>Cadastre</B></A> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> Land survey, a basis for the taxation of cultivated land, as well as for planning of ameriorations such as river regulation, the partitioning or reassigning of common lands etc. An early state to have its entire territory surveyed was Savoy-Piemont (begun in 1728). </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <A NAME = "cameralism"><B>Cameralism</B></A> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> A theory of Mercantilism, aiming at monopolist state-owned companies (manufactures) serving entire sectors of the national economy. The leading political theory in Habsburg Austria; also state policy in Prussia, but applied more flexible </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <B>Canals</B> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> The cities of Holland were able to concentrate much of Europe's international trade, because a dense system of canals provided them with an excellent transportation network. Elsewhere canals were constructed to facilitate navigation, to shorten shipping routes, to drain lakes or swamps, or for a combination of these. The location of St. Petersburg was chosen to create a Russian Amsterdam. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <A NAME = "canaldumidi"><B>Canal du Midi</B></A> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> Canal connecting the Garonne and the Mediterranean, constructed 1667-1681. Ships from <A HREF = "../../region/france/xfrance.html">France</A>'s Atlantic sailing for the Mediterranean could use it, save a trip round the Iberian Peninsula. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <A NAME = "coffee"><B>Coffee</B></A> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> Originally from Ethiopia; the drink first introduced to christian Europe in 1615; coffee cultivation introduced to Java by the V.O.C. in 1696, ca. 1735 to Saint Domingue (Haiti), which in 1788 produced c. 60 % of the world's coffee. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <B>Colonies</B> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> Mercantilist theory advocated that an attempt should be made to produce everything within the country. As certain crops (sugar cane, coffee, tea, cotton) did not grow in a European climate, the ogical step then was to plant a European flag on an island (easy to defend) with the proper climate. In the early 17th century, a number of new colonial powers - <A HREF = "../../region/eceurope/xcourland.html">Courland</A>, <A HREF = "../../region/scandinavia/xdenmark.html">Denmark</A>, <A HREF = "../../region/scandinavia/xsweden.html">Sweden</A>, <A HREF = "../../region/germany/xbrandenburg.html">Brandenburg</A> - emerged, for Mercantilist reasons. They established colonies in the Caribbean, trading factories in West Africa, India. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <A NAME = "comptrollergeneral"><B>Comptroller General</B></A> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> Or Controlleur General, title for the administrator of <A HREF = "../../region/france/xfrance.html">France</A>'s finances. Fran&ccedil;ois Fouquet (1653-1661), Jean-Baptiste Colbert (1661-1683) were the most important holders of this office. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <A NAME = "cornlaws"><B>Corn Laws</B></A> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> Laws designed to maintain the prices for corn (i.e. wheat) high, by imposing a tariff on the import of corn. Intended to secure the revenues of the gentry - which was represented in Parliament and supported these laws. In England, as well as in <A HREF = "../../region/lowcountries/xbelgium.html">Belgium</A>, abolished in the 1840es. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <A NAME = "courtjew"><B>Court Jew</B></A> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> In order to rule without having to call parliament (the Estates General), monarchs, desiring to rule absolute, needed a financial advisor who develped new sources of revenue. In most cases, Jews functioned as such - the "Court Jews". </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> Crop Rotation </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> see in chapter <A HREF = "hdagrrev.html#croprotation">Agricultural Revolution</A> </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <A NAME = "enclosure"><B>Enclosure</B></A> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> Following an act in which the King of England granted property rights over a village green to a private owner "for the purpose of improvement", the latter had the area in question fenced in and the villagers' animals and keepers expelled. The general idea was that the change of usage would result in higher yields and ultimately raise the welfare of society. It caused great resentment and occasional unrest among the villagers. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <B>Immigration Policy</B> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> In order to attract new industries, countries granted privileges to immigrants with know-how. These included up to 7 years without taxation, freedom of male descendants from being pressed into military service, and - in many cases - freedom of religion (see religious tolerance) </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <B>Laissez-Faire</B> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> The policy of minimalistic state interference in the economy, advocated by Adam Smith (Wealth of Nations), a policy defined as an alternative to Mercantilism </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <A NAME = "lotteries"><B>Lotteries</B></A> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> Popular in the 18th century, private enterprises, an easy way to make money. Venetian Giacomo Casanova developed the concept of a monopolized state lottery, as a means to fill state coffers. Temporarily there was a lottery craze. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <A NAME = "louisianabubble"><B>Louisiana Bubble</B></A> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> Scotsman John Law attempted to introduce a Bank of France (and paper money). He acquired and merged several colonial companies, and floated the stock, hoping the colony of Louisiana would become as profitable as recently acquired <A HREF = "../../region/caribbean/xhaiti.html">Saint Domingue</A> (Haiti) had become. The bubble burst in 1720; John Law had to flee <A HREF = "../../region/france/xfrance.html">France</A>. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <B>Mercantilism</B> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> An economic policy aiming at raising the revenue of the king. Many mercantilistic measures may have benefitted the national economy, such as the abolition of internal tolls, the improvement of roads, the construction of canals etc.; some, such as the sale of monopolies and the operation of state loteries, were rather harmful. Initially successful in <A HREF = "../../region/france/xfrance.html">France</A> and England, many European governments adopted the policy. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <A NAME = "monopolies"><B>Monopolies</B></A> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> Colonial trade was conducted by monopolist companies, because the risks and costs were too large, and competition might have caused the ruin of the entire trade; the V.O.C. was founded as a monopolist company only when political pressure was applied on the individual merchants engaged in the India trade. Later, monarchs in need of cash used the sales of monopolies in order to address momentary problems. In <A HREF = "../../region/germany/ahindex.html">Austria</A> (cameralism), the state attempted to operate a significant sector of the economy as monopolist (Cameralism). </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <A NAME = "navigationact"><B>Navigation Act</B></A> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> In 1651 passed by the English Parliament, stipulating that any goods from overseas could only be imported in English ships or ships of the country of origin. A law intended to harm Dutch trade; the main cause behind the four Anglo-Dutch wars. Valid into the 19th century. In 1722 <A HREF = "../../region/scandinavia/xsweden.html">Sweden</A> passed the Product Act, a Swedish version of the Navigation Act. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <A NAME = "porcelain"><B>Porcelain Manufactures</B></A> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> Porcelain was a costly, highly sought-after product imported from China. In <A HREF = "../../region/germany/xsaxony.html">Saxony</A>, alchimist J.F. B&ouml;ttger (virtually held prisoner by Duke-Elector Augustus the Strong) discovered how to make porcellain (1708); in 1713 the Porcelain Manufacture at Meissen was established as a ducal monopoly. Soon many monarchies in Europe operated their own porcelain manufacture, as state monopoly. Some still exist. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> Potato Revolution </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> see under <A HREF = "hdagrrev.html#potato">Agricultural Revolution</A> </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <B>Privileges</B> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> The medieval and early modern economy was presumed to be rather static. Guilds, mills, markets etc. had privileges eliminating competition within a certain radius, and were keen to see their privileges observed. Such privileges often were an obstacle to economic develpment. Originally, privileges were issued by monarchs. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <A NAME = "religioustoleration"><B>Religious Toleration</B></A> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> Religious toleration is a practical policy growing out of the need to accomodate settlers with know-how rather than the implementation of political conviction. Joseph II. argued vis-a-vis his mother, Maria Theresia (<A HREF = "../../region/germany/ahindex.html">Austria</A>), that he despised Lutheranism, yet believed that toleration would benefit the country economically. The enlightenment philosophers made religious toleration a key political issue </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <B>River Regulation</B> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> was conducted in order to shorten the riverbed and turn the riverside marshes into farmland. Conducted on a wide scale in the 18th century; in <A HREF = "../../region/germany/xprussia.html">Prussia</A> the Oderbruch drainage and farmland reclamation 1747-1773 </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <B>South Sea Bubble</B> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> In 1720 the stocks of the South Sea Company, traded at the London Stock Exchange, traded high on speculation of future profits; in 1721 the stock collapsed. An example of wind trade. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <A NAME = "statistics"><B>Statistics</B></A> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> In 1749, <A HREF = "../../region/scandinavia/xsweden.html">Sweden</A> established the Tabellverket (presently the Statistical Bureau); begin of population statistics. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <B>Stock Exchange</B> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> During the Dutch Revolt, the Antwerp bourse lost significance. Amsterdam, the leading economic center in Europe from 1600 to 1770, long managed without one central stock exchange, a number of auction houses taking its function. Bourses were founded elsewhere, the London Stock Exchange in the later 18th century becoming the most important one. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <A NAME = "transmigration"><B>Transmigration Policy</B></A> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> Maria Theresia despised Lutheranism, but wanted to avoid the economic damage of losing productive subjects by forcing them into emigration. When crypto-Lutherans were discovered in Styria, they were forced to transmigrate to <A HREF = "../../region/eceurope/xtransylvania.html">Transylvania</A> - the only region in the <A HREF = "../../region/germany/ahindex.html">Habsburg monarchy</A> where Lutherans were officially tolerated. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <A NAME = "tulipomania"><B>Tulipomania</B></A> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> a wind trade in tulip bulbs at the Amsterdam Bourse in 1634-1637. The most expensive tulip bulb in history was traded at 6,000 hfl; for comparison : the Dutch paid 25 hfl. for Manhattan Island in 1625. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <B>Wind Trade</B> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> Greatly inflated stocks / price levels at the bourse. Most notable cases the Amsterdam Tulipomania of 1634-1637, the (Paris) Louisiana Bubble of 1720 and the (London) South Sea Bubble of 1721. </font></TD> </TR></TABLE> <BR><BR> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD align = "left" valign = "center" width = "700"> <font face = "Times Roman" size = "2"> PRINTED REFERENCE : <BR> </font></TD></TR></TABLE> <BR><BR> </DIV> </DIV> <DIV align="center"> <A href="mailto:aganse@hotmail.com"> <IMG src="../../email.gif" border="0"></a><BR><BR><BR><BR><BR><BR> <!-- Start of CH Counter --> <script type="text/javascript"> //<!-- // chCounter v2.0.0 // settings: cstatus = "active"; visible = "0"; path_to_counterfile = "http://www.zum.de/whkmla/counter/counter.php"; urlhp = "http://www.zum.de"; //////////////// url = unescape(location.href); file = url.substring(url.lastIndexOf(urlhp) + urlhp.length, url.length); file = (file.charAt(0) != "/") ? "/" + file : file; referer = (document.referrer) ? document.referrer : ""; document.write("<script type=\"text/javascript\" "); document.write("src=\"" + path_to_counterfile + "?chCounter_mode=js&status=" + cstatus + "&visible=" + visible); document.write("&seite=" + file + "&referer=" + referer + "&res_width=" + screen.width + "&res_height=" + screen.height + "\"></" + "script>"); //--> </script> <!-- End of CH Counter --> <BR> </div> </body></html>