a. Condition of Trade at the Time of the
Union of the Crowns
In spite of the
political and religious disturbances in Scotland in the sixteenth
century, the trading community seem to have been able to carry on
their business without much interruption and with some success. But
their trade was curiously unaffected by those influences which were
doing so much to transform the economic organisation of other
European countries—the discovery of America and the consequent
influx of silver. Capital was still extremely scarce in Scotland and
manufactures were in a very backward condition, as also was
agriculture. A paper amongst the manuscripts of the Earl of Mar and
Kellie gives some idea of the commodities in which the Scots dealt
and of the extent of their industrial development. It is entitled
the "Table of Scottish Produce exported yearly," and gives a list of
all the commodities exported in the year 1614, together with their
value. The "commodaties of the land" are the most valuable exports,
amounting to £375,085 Scots. These include different kinds of grain,
some flour and beef, £37,655; hides, £66,630; skins, £172,082; wool,
£51,870; feathers, butter, lead ore, coal, £46,850. The value of the
manufactures is £169,097, of which salt, cloth and plaiding, and
linen yarn are the most important. The others mentioned are linen
cloth, coarse cloth, knitted hose, dressed leather, gloves, leather
points, sewed cushions, ticking for beds, shoes. The export of fish
brings £753,354, and of foreign commodities imported and then
exported again, £39,047. The total value for the year is £736,986
Scots. This does not include the "greit quantitie of lynning claythe,
lynning yairne, sheip, nott etc. that is transpoirtted be land dalie,"
presumably to England. The most important exports were therefore
unmanufactured commodities, skins, hides and fish, and the
manufactures exported were those of an economically undeveloped
country.
There were no
companies of merchants organised for trading to particular places,
as the English Merchants Adventurers, Eastland Company, etc. But the
merchants of the Royal Burghs practically formed an exclusive and
privileged company, for only they were allowed to engage in foreign
trade. The Convention of the Royal Burghs looked after their
interests, organising and supervising all the foreign trade of the
country; appointing conservators to watch over Scottish interests in
different places; settling disputes between merchants; and even
making regulations concerning their clothing. In 1529, because many
merchants trading with France and Flanders "takis with tham thar
evill and wirst clais to the dishonour of the realme," the
conservator in Flanders was ordered to insist on their providing for
themselves "honest clais," and in case they should refuse he was
entitled to seize and sell their goods, and with the proceeds to
procure and pay for suitable garments. Scottish merchants seem to
have had a reputation for "parsimony in apparrell and dyet
and...exceeding industriousness and diligence." They had not been at
war with any continental nations for a long time, and their ships
therefore did not require to be equipped for war as well as for
trade. They were as a rule smaller than English ships, required less
ballast, and in proportion to their size and the expense of sailing
them, could take in a larger cargo and charge a smaller freight
rate. Another reason for the cheapness of their freight was the way
in which the crew lived. " The Scotts marriners go not to sea as our
men goe everyone for wages in certainty and feeding on the
Victueller or Owner on the best Beefe Porke Beere Biskett of the
finest Wheat and to care not what they spoile of the owners..., nor
how long time they protract in making their Voyage and Return. But
everyone...finds himself the whole*Voyage eates no Bread but Oaten
Cakes made of Bean baked on the hearth and salt ffish fryed on the
Coales from hand to mouth by himself, nor weares no Cloaths eyther
Lynnen or Woollen (which are very mean) but those of their own
countrey makeing and at cheapest Rate.... And besides... every one
in their ships...is a kind of Merchant himself and will be sure to
bring some Lynnen Scotch Cloth...or Such like from home upon his own
Account and make a like Returne of some Commodities which the
fforeyn Markett yeildeth. Whereas in our English Shipps they are not
much given to this thriveing course as they are prohibited by the
Merchants that fraight them to do it, for the marring of the
Merchants own Markett....The Scotts Owners of Shipps and Mariners
will be able and readie to undergoe a freight to any forreyn parte
for under our Owners rate, and yet by these meanes gain whereas ours
loose by it." A good deal of the Scots foreign trade seems to have
been carried on by pedlars, who, when their ship reached port,
travelled up and down the country with their packs, selling to the
country folk, like the Breton onion sellers of to-day. The crew of
the ship may also have taken part in this peddling trade.
The Scots in their
small ships did not penetrate very far afield. Their commercial
connections were chiefly with France, Spain, the Low Countries, and
the Baltic. There was also some trade with England. The French and
Dutch trades engaged more merchants and ships than any other. There
had long been a close connection between Scotland and France,
commercial as well as political. According to one authority, the
first commercial treaty had been made by Achaeus and Charlemagne in
787. Coming to more modern times however, in 1510 Francis I exempted
the Scots nation from the payment of customs in Normandy. This was
confirmed by Henry II in 1554, and at the
same time the Scots were exempted from the payment of some new
duties then imposed. Four years later, when Mary was married to the
Dauphin, all Scotsmen were made naturalised subjects in France and
all Frenchmen in Scotland. Scots merchants were therefore free from
all impositions laid upon strangers. These privileges were all
confirmed by Henry IV in 1599. The Scots
traded chiefly to Normandy, Bordeaux and La Rochelle, taking thither
wool, skins, hides, plaiding, kerseys, salmon, and bringing back
wines and salt. A number of Scottish ships were also engaged in the
carrying trade for France. In 1615 it was said that "the greittest
number of the best schippis of Scotland ar continuallie imployed in
the service of Frenchmen, not only within the dominions of France,
bot also within the boundis of Spayne, Italie and Barbarie4."
Trade with the Low
Countries was also important. The Convention of the Royal Burghs
received privileges for their merchants there by a contract with
some city, which was then called the Scots Staple Port, to which
certain specified commodities, including all the most important
Scottish exports to the Netherlands, had first to be brought.
Certain privileges were granted to the Scots merchants in Flanders
in the fourteenth century, but the first definite treaty with
Scotland was made by Bruges in 1407. This city was the headquarters
of the Scots merchants during the greater part of the fifteenth
century, though they also traded with Middelburg, and the Staple was
for a time established there. In 1506 some arrangement was made with
Campvere, and after competition on the part of Middelburg, Antwerp
and Campvere for the monopoly of Scots trade, the Staple was fixed
at Campvere in 1541. There it remained with but two short intervals
until the Staple contract was cancelled in 1799. Scottish shipping
seems to have been considerable in the sixteenth century, if the
following incident may be believed. During Charles V's wars with
Francis I, the Scots, although they were considered neutral, seized
some English ships at Campvere. The Emperor then ordered his
subjects in the Netherlands to make reprisal upon them, but "the
Scots likeweys equipped, and were so much superior at Sea (which
will now hardly gain credit) that they not only confined the Dutch
and Flemish Privateers in their harbour, but interrupted the Trade
of those of the Provinces, Flanders, Zealand and Holland, and of the
great city Antwerp itself." The principal commodities which the
Scots took to the Netherlands were cloth, skins, wool, fish and
salt. They received a good deal of soap, corn and hardware, and a
number of miscellaneous articles. There was also some trade between
the ports on the east coast, Aberdeen, Dundee, the Fife ports and
Leith, and the northern countries, Norway, Sweden, Denmark, and the
Baltic ports. Of this trade we have valuable information in the
Compt Buik of David Wedderburne, a Dundee merchant. The Baltic ports
which the Dundee ships chiefly frequented were Dantzig and
Konigsberg, and also Stralsund and Lubeck. The imports into Scotland
were principally timber, iron, flax, hemp, pitch and tar.
During the sixteenth
century there was a good deal of intercourse between Scotland and
Spain. In 1581 "certan writis evidentis and privilegis granted be
the King of Spain under his greit seill, for the weilfair of the
Scotis natioun" were obtained. The trade chiefly developed during
the wars of England with Spain, when the English merchants traded
with Spain under cover of the Scots trade. Several instances of this
are given in the Calendar of State Papers (Spanish). "Two Scotch
Ships either have left or will shortly leave London....One of them
is of 150 tons burden called the New Ship of St Andrews...loaded
with wrought iron and tin and lead in pigs and a quantity of English
serge. The goods bear the leaden seal of Edinburgh, but are made in
England and the seal is placed on them to deceive....The other ship
is from Little Leith...carries similar merchandize; The value of the
cargoes is estimated at £14000." The Editor, in a note to this
reference, says, "The above is given as a typical instance of the
continual trade in English merchandize with Spain under cover of
Scottish merchants during the period when all commercial
communication between England and Spain was prohibited." In 1603 the
Venetian Secretary in London writing to the Doge, in reference to
the question of peace with Spain, says that James I has often been
helped with money by Spain, "especially before Spanish and Flemish
commerce came to Scotland. It was then that the revenue which
ordinarily did not exceed 100000 crowns, was greatly increased, as
the King was able to tax the seaports, which were growing rich, by
imposing customs upon wine and other commodities." In another letter
the Secretary declares that the revenue in Scotland has increased to
400,000 crowns, "thanks to having an open trade to France, Spain and
all the northern countries." The political connection with England
before the Union was slight, and the commercial relations of the two
countries were also of little importance. There was some trade in
linen cloth and yarn, salt and sheep from Scotland; and from England
were brought wheat, beer, bark, woollen cloth, etc. The Scots
frequented chiefly the ports of London and Newcastle, but Plymouth
and other harbours in Devonshire and the West were also visited.
There was also some trade by land, but the disturbed state of the
Borders on either side made peaceful traffic difficult. There was no
Scots conservator in England, and though the King suggested in 1599
that one should be appointed, because of the complaints of merchants
trading thither, the Convention of Burghs declined to do so. They
declared that a conservator was not " necessar to thair estait bot
rather hurtful and chargeabill to the samyn." Some figures given in
"An Estimate of the Customes and Subsidies of Tonnage and Poundage
as well Inwardes as Outewards payd by Scottishe Merchantes for
VII yeares," from 1597 to 1603, shew that
the trade was but small. In London the duties inwards paid for the
seven years Amounted to £743. 19s. 4d, and outwards to £595. 0s. 1d.
The duties paid at the outports were £1366. 18s. 6d. and £1679. 12s.
6d. respectively3. In Scotland the customs paid for a year, 1605-6,
on the English trade were £1083, paid by Scots and English
merchants.
As yet the Scots had
not penetrated across the Atlantic. Fynes Moryson says that though
the "Scots are very daring...they have not hitherto made any long
voyages rather for want of riches, than for slothfulnesse or want of
courage." They had not yet been inspired by the general impulse of
the sixteenth century to compete for the "golden ball of trade."
b. Negotiations for
Commercial Union
James
VI, on his succession to the throne of
England, was extremely anxious that his two kingdoms should be fused
into one homogeneous whole; that Scotland and England should lose
their separate names and nationalities, and become the kingdom of
Great Britain. For the first few years of his reign he made great
endeavours to accomplish this end, but English hostility and
Scottish indifference were too much for him, and with the growth of
other interests in England the project was allowed to drop. One of
James's first acts when he came to England was an "Act authorising
certain Commissioners of the Realm of England to treat with
Commissioners of Scotland for the weale of both Kingdoms."
Commissioners were appointed in Scotland also, and the two
deputations met, discussed conditions and drew up a Treaty of Union,
to be proposed to their respective Parliaments. Some of the articles
were afterwards incorporated in the two acts—"An Act for the utter
Abolition of all memory of Hostilitie and the Dependances thereof
between England and Scotland," and "An Act anent the Union of
England and Scotland." The latter declared " That all the particular
hostile Laws.. .maid be Scotland aganis England as Enemies sail be
abrogat and in all tyme cuming all utterlie extinguished." The other
clauses of the treaty were not carried into effect. A number of the
articles dealt with the subject of commerce, though an entire
commercial union was not suggested. It was proposed that there
should be free trade in the native commodities of either country,
with the exception of wool, sheep, sheepfells, cattle, leather,
hides and linen yarn. This "mutual liberty of exportation and trade"
was to serve "for the inward use only of either realm." Commodities
of which the export or import was prohibited for either country were
to be prohibited for both. Otherwise import and export were to be
free for subjects of either kingdom. Import from France was excepted
until inquiry should be made into the extent of Scottish privileges
there. Imported foreign goods that had paid custom once were not
required to pay it again on passing from one country to another. The
fisheries within fourteen miles of the coast were to be retained by
each nation respectively. Merchants of either country were to be
allowed to join the companies of the other, which meant that Scots
merchants might join English companies, as the Scots had no
associations of merchants. Certain sources of future difficulties
are obvious in the conditions of this treaty. The customs rate
differed in each country, being as a rule lower in Scotland.
Therefore some foreign commodities paying duty in Scotland might be
sold at a profit in England, where the duties on the same
commodities were higher, although the cost of. transport might
equalise matters. The regulation of import and export in different
interests by different authorities would always be a difficulty.
English manufactures, for instance, were more developed than those
in-Scotland, and therefore the export of raw materials was
restrained in England, whereas Scotland's chief trade was in
unmanufactured goods.
The union project
aroused much opposition amongst English merchants. They objected to
the idea of any union at all, and in detail to almost every clause
of the treaty. They declared that the Scots were so poor that their
incorporation with the English trading community could be no benefit
to England, for the "kingdom of Scotland noway affordeth commodities
in any reciprocall course with England for trade and merchandising."
The merchants said that they "do already of themselves vent all the
Commodities of this land, and yet are they hardly able to live one
by another. Quando minus therefore shall they be able if they admit
such an unnumbered sort of people of another nation to intermingle
themselves among them in an equall communion of commerce." Also the
Scots "trade after a meaner sort and condition in foreign parts than
we, as by retailing parcels and remnants of cloth and other
commodities up and down the countries as we cannot do because of the
honour of our country." It was feared that poor Scots would flock to
England "in such multitudes as that death and dearth is very
probable to ensue and wheresoever any artifizer or tradesman of that
nation shall dwell or abide it is very likely that in a short time
he will gather unto himself the wealth of his neighbours, and
undermine them in profit as the horse will undereat the ox such is
their, parsimonious life in respect of ours and their poverty will
be evermore a spur unto them to make them industrious to thrive but
to be satisfied there is no hope for." As an illustration of the
"parsimony and diligence of ye Scotch above ye English nations," the
following tale is told. At Dartmouth, "two ships (the one English
and the other Scotch) being both ready to Wey Anker and bound for
wyne at Burdeaux the wind happening fair for them on Mas Day the
Scotch accordingly weyed Anker, and hald over to his consort the
Englishman and asked him why he did not Wey Anker accordingly So
when the Englishman Answered I have all my men on board and am ready
but I have bid my neighbours to a Michmas Goose and I will goe but
on shore and eat it and come presently. In which little Interim the
Scotch Ship was no sooner freed of the Harbour but the wind cast
about, So as when the Englishman came aboard after dinner he could
not wind out of ye Harbour though that wind Served the Scotchman at
sea well enough. About 6 weekes after the Scotch ship revened with
her full loading of Wine into the same Harbour upon the foresaid
Englishman haling for newes the Scotch answered that they had
brought Wine for their goose." One would conclude from this incident
that the Scots were not given to wasting their opportunities.
Presumably, from the many complaints as to their "mean way of
trade," their expenses were less and their profits greater in the
few branches of trade in which they came into contact with English
interests.
Passing from general
to particular objections, English merchants seemed to fear that the
Scots would get cloth from the northern counties more cheaply than
their own merchants in the south, would transport it abroad and thus
ruin their trade. Also that the Scots would sell English commodities
which were not allowed to be exported, to French and Flemings in
Scotland. Then, too, the taxes and customs differed in the two
countries, and were as a rule higher in England than in Scotland.
The English merchants failed to see why the Scots, with fewer
burdens on their trade, should share English advantages. The
greatest obstacle, however, was the question of the Scottish
privileges in France. As has been said, the Scots obtained the
privileges of naturalisation in France in 1558, and therefore traded
on the same terms as natives of the country. It was possible for
English subjects to become naturalised in France, but only on
payment of a certain fee, generally 100 crowns, and they were then
regarded as foreigners in England8. All Scotsmen, on the other hand,
were naturalised Frenchmen, and at the same time kept their position
as Scots subjects. The benefits accruing to the Scots were
considerable. They could hold offices and acquire land in France,
which the ordinary Englishman could not do. They paid fewer
impositions and customs, only four pence in the pound; while the
English merchant paid the four pence, and two other impositions as
well. Also English merchants were only allowed to sell their cloth
at the Freehall at the ports to which they resorted. Other goods had
to be displayed for sale on the wharf for a certain time, paying a
rent meantime for using it. Scots merchants could sell their goods
in their ships or anywhere else they pleased They could also
buy goods freely, and were permitted to sell them again in the
country. But the privileges for export were only observed for goods
to be conveyed into Scotland; if they were to be transported
elsewhere, the Scots merchants had to pay the same duties as other
foreigners. Nevertheless, the English feared that the Scots would
undersell them in the French trade.
Almost all objections
made against a union were answered, and the difficulties shewn not
to be insuperable. A proposal was even made to equalise the customs.
This would have removed the principal obstacles in the way of a
commercial union at the time, but unless the union was parliamentary
as well, there could be no satisfactory guarantee that either
customs or regulations as to imports and exports would remain the
same in the future. To inquire into the differences in the French
trade it was agreed that two representatives from either side should
be sent to Normandy to inform themselves of the state of affairs
there, and also in other parts of France. In the Bordeaux trade
neither appeared to have much advantage over the other. The work of
the commissioners was, however, vain as far as the discussions on
commerce were concerned. The English Parliament only abolished all
hostile laws against Scotland. In the Scottish Parliament the whole
treaty was passed, but with the proviso that " the same should be in
like manner ratified by the parliament of England, otherwise the
conclusion taken should not have the strength of a law." As England
did not ratify the treaty, it never became valid in Scotland. One
most important result of the Union was achieved, not by Parliament,
but by the decision of the judges—the naturalisation in England of
all Scotsmen
tborn after James's
accession to the English throne. In fact neither nation was at this
time at all anxious for a complete union. The merchants of London
declared that "it cannot otherwise prove to be but an impoverishment
to both nations and will in the sequell of time... turn also to the
hurt and detriment of the state of both the kingdomes." The Scots
spoke of "that Union so greitlie hated by them," the English, "and
so little affected by us"; and hoped that his Majesty "would be
pleased to desist fro any further moving of this Union." The mutual
hostility of over three hundred years was not to be overcome merely
by the accession of a Scottish king to the English throne. Bacon's
vision of "England, with Scotland united, with Ireland reduced, with
the Low Countries contracted, with Shipping maintained...the
greatest Empire that hath been heard of in many Ages" was not to be
realised in the seventeenth century.
Although the scheme
for commercial union failed, there was for a few years, while the
negotiations were being carried on, free trade between the two
countries. The merchants of both countries seemed at once to
conclude that James's accession in England of necessity brought with
it freedom of trade. A Proclamation in November, 1603, declared that
both Scots and English had transported goods by "fels and other
by-passages," by which his majesty was defrauded of his customs.
Therefore all goods were ordered to be sent by Berwick or Carlisle,
or shipped at some known port. The defrauding of the customs
continued, and in 1605 and 1606 arrangements were made for books to
be kept by the farmers of the customs in both countries, in which
all goods passing from one country to the other were to be entered.
These were to be compared every six months in order for the "escheiving
of all fraud that may be useit heireftir." Next year, however,
James, "being myndit...to unite thir twa famous kingdomes under his
Majesty's royall crowne and sceptour and to remove all markis of
separatioun betwixt the same...in the mean-tyme of the treaty of
this Unioun and for the better introduction of the Same," commanded
that no customs should be taken for commodities transported between
the kingdoms. Caution was to be taken for the payment of the customs
in case "the same treaty tak not effect." The commodities which were
freed from duties were to be only enough for the use of each
country, not for exportation. This policy was not found to be
successful, and in 1611 the duties were reimposed again. It was
found that not only did the King lose revenue, but goods which were
not allowed to be exported from one country were secretly conveyed
into the other and thence exported. Goods transported by land were
therefore ordered to be taken through Berwick or Carlisle on the
English side, and by Aytoun, Jedburgh, Kelso, Dumfries or Annan on
the Scottish border.
Four years later
another proclamation dealing with trade was issued. James declared
that "ever sithence Our comming to the possession of the Imperial
Crowne of the Kingdomes of England and Ireland, Our ful resolution
and constant purpose and meaning was, and always hath beene by all
good meanes to set forward and advance Trade, Trafique and
Merchandize, aswell Within Our Kingdome of Scotland, as in Our
Kingdomes of England and Ireland, and to augment and increase the
Ships, Shippings and Navigation of the same Kingdomes of England,
Scotland and Ireland for the Wealth; Strength and prosperitie of the
same Kingdomes, And for that purpose and to give the better
encouragement unto Our natural Subjects of the said Kingdome
of Scotland to set forward and increase their Trade." Therefore
orders had been given that no other duties were to be paid by Scots
ships or goods than were paid by English or Irish ships or goods, in
England and Ireland, and the "Hands under the Dominions of the
same." Also Scottish ships were no longer to be considered
"Strangers Bottomes but free Bottomes." English and Irish ships and
goods were to have the same privileges in Scotland. This was
confirmed by Charles I in 1631 in "a Proclamation for enabling all
His Majesties Subjects to Trade within His Severall Dominions
without being further charged with Customes, or other dueties, than
they of that Kingdome wherein they trade, ought to pay." Certain
staple commodities were not allowed to be exported to Scotland. In
1622 the exportation from England of "Woolles, Woolie-fels, Yarne,
Fullers earth, and Wood-ashes into any forraine parts, or into Our
Kingdome of Scotland" was forbidden. Apparently great quantities of
hides and leather were conveyed into Scotland, and in 1626 their
transportation was also forbidden. In 1632 the transportation of
these commodities, and also of corn, out of England was prohibited.
During the reigns of the first two Stewarts, therefore, the Scots
and their ships were treated as natives and not as aliens.
Under Commonwealth
rule there was an approach to a system of laissez faire and absence
of regulation. In this period Scotland was commercially united with
England, and there were no restrictions at all upon trade between
the two countries. With the Restoration Parliament began to take a
much larger share in the regulation of economic affairs in both
countries. The English Parliament adopted a strong protective
system. As far as they could see free trade with Scotland neither
had been nor could be of advantage to English commercial interests;
they had no desire to promote Scottish prosperity, and, though
Charles was anxious for a commercial union between the two
countries, Scotland was treated as a foreign country by the
legislation of the English Parliament. The Scottish Parliament also
adopted a protective policy, and, in return for English
restrictions, laid heavy burdens on English trade with Scotland. The
first period of the seventeenth century, therefore, was more
favourable to the interests of Scottish trade with England than the
period of parliamentary regulation after the Restoration.