The Mercantile System and its Historical Significance [2]
the larger towns, seeks to shut itself up to itself as an economic whole, and, at the same time, in its relation to the outside world, to extend the sphere of its influence, both economic and political, as far as possible. It is not without significance, that, during a considerable period of ancient and of mediaeval history, all complete political structures were city-states, in which political and economic life, local economic selfishness and political patriotism, political conflict and economic rivalry, all coincided. The economic policy of the German towns of the Middle Ages, and their economic institutions, have played so controlling a part in German life down to the seventeenth and eighteenth centuries, they project themselves, so to speak, in so many directions, into our own time, that we must pause a moment to speak of them more at length.
Not only separate jurisdiction (Immunitat), but also the right of holding a market, of collecting tolls, and of coining money, were, from early times, the privileges of the growing urban communities. This exceptional position was strengthened by the abolition of payments and services in kind, as well as by the legal advantages flowing from the principle that "town-air makes free"; and, finally, by the conquest of the right of self-government and legislation by the town council. Each separate town felt itself to be a privileged community, gaining right after right by struggles kept up for hundreds of years, and forcing its way, by negotiation and purchase, into one political and economic position after the other. The citizen-body looked upon itself as forming a whole, and a whole that was limited as narrowly as possible, and for ever bound together. It received into itself only the man who was able to contribute, who satisfied definite conditions, proved a certain amount of property, took an oath and furnished security that he would stay a certain number of years. It released from its association only the man who solemnly abjured his citizenship before the council, who swore that he would bear his share of responsibility for the town's debts, and contribute to the taxes of the town for a number of years, and who handed over to the town ten per cent of his property. The omnipotence of the council ruled the economic life of the town, when in its prime, with scarcely any limit; it was supported in all its action by the most hard-hearted town selfishness and the keenest town patriotism, - whether it were to crush a competing neighbour or a competing suburb, to lay heavier fetters on the country around, to encourage local trade or to stimulate local industries. Market-rights, toll-rights, and mile-rights (Meilenrecht) are the weapons with which the town creates for itself both revenue and a municipal policy. The soul of that policy is the putting of fellow-citizens at an advantage, and of competitors from outside at a disadvantage. The whole complicated system of regulations as to markets and forestalling is nothing but a skilful contrivance so to regulate supply and demand between the townsman who buys and the countryman who sells, that the former may find himself in as favourable a position as possible, the latter in as unfavourable as possible, in the business of bargaining. The regulation of prices in the town is, to some extent, a mere weapon against the seller of corn, wood, game, and vegetables from the country; just as the prohibition of certain industries or of trade in the rural districts, and the restrictions placed upon peddling were intended to serve municipal interests. The acquisition by the town of crown-rights (Regalien) was utilised, in the first instance, to bring about a reconstruction of these regulations for the benefit of the town. Thus the market-toll was usually abolished so far as burgesses were concerned, and only retained for the countryman and the unprivileged "guest" (Gast). A complicated system of differential tolls was everywhere devised, by which some towns were favoured and others put at a disadvantage, in each case either in return for corresponding
Not only separate jurisdiction (Immunitat), but also the right of holding a market, of collecting tolls, and of coining money, were, from early times, the privileges of the growing urban communities. This exceptional position was strengthened by the abolition of payments and services in kind, as well as by the legal advantages flowing from the principle that "town-air makes free"; and, finally, by the conquest of the right of self-government and legislation by the town council. Each separate town felt itself to be a privileged community, gaining right after right by struggles kept up for hundreds of years, and forcing its way, by negotiation and purchase, into one political and economic position after the other. The citizen-body looked upon itself as forming a whole, and a whole that was limited as narrowly as possible, and for ever bound together. It received into itself only the man who was able to contribute, who satisfied definite conditions, proved a certain amount of property, took an oath and furnished security that he would stay a certain number of years. It released from its association only the man who solemnly abjured his citizenship before the council, who swore that he would bear his share of responsibility for the town's debts, and contribute to the taxes of the town for a number of years, and who handed over to the town ten per cent of his property. The omnipotence of the council ruled the economic life of the town, when in its prime, with scarcely any limit; it was supported in all its action by the most hard-hearted town selfishness and the keenest town patriotism, - whether it were to crush a competing neighbour or a competing suburb, to lay heavier fetters on the country around, to encourage local trade or to stimulate local industries. Market-rights, toll-rights, and mile-rights (Meilenrecht) are the weapons with which the town creates for itself both revenue and a municipal policy. The soul of that policy is the putting of fellow-citizens at an advantage, and of competitors from outside at a disadvantage. The whole complicated system of regulations as to markets and forestalling is nothing but a skilful contrivance so to regulate supply and demand between the townsman who buys and the countryman who sells, that the former may find himself in as favourable a position as possible, the latter in as unfavourable as possible, in the business of bargaining. The regulation of prices in the town is, to some extent, a mere weapon against the seller of corn, wood, game, and vegetables from the country; just as the prohibition of certain industries or of trade in the rural districts, and the restrictions placed upon peddling were intended to serve municipal interests. The acquisition by the town of crown-rights (Regalien) was utilised, in the first instance, to bring about a reconstruction of these regulations for the benefit of the town. Thus the market-toll was usually abolished so far as burgesses were concerned, and only retained for the countryman and the unprivileged "guest" (Gast). A complicated system of differential tolls was everywhere devised, by which some towns were favoured and others put at a disadvantage, in each case either in return for corresponding