HANSA LEAGUE TRADE: POSSIBILITY COMPARISON APPROACH.

(EHA 2018 Montreal,

Hansa league (HL) as the first economical union which  required explanations by economic science & currently  mostly scientists are thinking that it was a Law of one price (LOP) (N.Khan, Ogilve, K.Person), so HL as value of institutional formation (A.Greif, R.Allen) have a great significance due to in political Germany  was a fragmented on hundreds states.

We have 2 areas with delivers of cloth material: wool & fur. Not strange that 2 sorts havn’t competition. (But it was continuing before 17 th.cent). Turnover, English consumers need more & more fur squirrel at first – ordinary fur also luxury ermine, sable, marten.

1. Problem economic Geography of Hansa Legue.

British Brexzit  allows to further consider the historical and economic problems of trade unions, the most to avoid of them and most studied HL. Achieving the English, American & European historiography HL had a hierarchical structure of binomial cities, where on the coast of goods delivered from the depth of the continent (Morsa D., 1992, Stabel P., 1992, Uytven  R., 1992, Lesger, 2006). In this way, gradually formed a few Centers,  Low counters and Northern German cities. In the middle ages Danzig & Konigsberg were German –eastern Prussia (Attman A. 1973, North M., 1987, Boguchka M., 1987). So  we have 3 main places of trade activates  HL which was a Anker of Medieval Europe: Danzig also Lubeck & Bruges-Brussels-Antwerp.

Were geographic  border  of this  union ? From the west – Calaus, than borde-lines goes cities: London, Bergen in Norway; Visby on the Sweden Gotland island & the last Novgorod (Smolensk) in Russia. This almost North Europe. Between  London & Novgorod currently 1370/2200 miles/km.

There are contors-offices in the every towns of HL, which reflected interests German merchants more the country – said T.H.Lloyd, L.D. Neal.

All of them brought their goods into centers of HL. But as additional we must to note that main

Mediation as if center was  Lubeick where  sale  sea fish from Bergen (Burkhardt M.,2010; Karsten J., 2014) &  biggest market with Flandreau & second market place eastern Prussia –Danzig (Gdansk).

The studding geographical situation  about hierarchical distribution of the Germans town why Novgorod have a great fur export potential  export most of them  export on the Baltic sea: Revel, Riga , also Danzig.  At this time Novgorod was a biggest internal market  in Russia where delivered  exports goods from Moscow, Tver, Siberia (Ugra) as well as.

So Novgorod as I say above concentrated export goods &  sale to the German merchants in contours (companies)  or Flandreau’s representative contour of Fikengausen. Logistic of the good stream  was from 2 point reloading.  Riga-Revel & Dantzig also by the road to Danzig, passing Konigsberg. Here according J.Attman, were high taxes. Its’ explain absent great participant in Baltic trade.

Than from this trade center the novgorodian goods  direct  into Brugge. Well-known exchange  from whence English merchants  buy Russian furs for own  profit.

Therefore logistic of the novgorodian allows to establish improve sale prices. It was 2 time not mention intermediate   data – Riga & Revel. At first in Dantzig, The second in Brugge.  It was absolute non profit for English merchant & they put maximum efforts for buy  Russian goods cheaper.

Dantzig but not Konigsberg  was main trade place on the South Baltic where brought their goods merchant from Visby. The merchant from Gotland sale here there goods without risk to take the goods around Demark across Zund strait dui it pirates.  Such  all risks they assume  north German  traffic.

The Danzig port was a main logistic center from Poland as well  as modern Belarus,  also Russian Smolensk. Scientist from Poland said that for deliver grain into Baltic cost from  agrarian center  was the towns first step. Such as Polotzk, Kaunas, Krakov, Dresden. The grain intended for Scandinavian but fur to Bruges exchange.

Modern researcher  showed  clustered organization so easy to get credits.

The English merchants  was not  disadvantageously to buy it in Brugge due it silver went into Low countries.  So  the sources fixing  aspiration merchants to overcoming monopoly of HL & to take good not in Bruges but in Dazing rather than in Riga where they played golden coins — nobbles. As well as the trade with North Italian cites – Genova & Venice, have a great financial & trade interests in London. For example Trade House Bardy from Florence.

The comparisons trade in the North & Black Sea we me used article which  studies trade relation between India & Europe in the Last Medevial (Broadberry St., Gupta B. 2006).

The cluster organization of own London’s  merchant according to A.Grief, J.Colson  allow to comparisons merchant in Novgorod. Where were from Teutonic orden 2 companies, also merchant from Flandreau & Visby.

So, when  studding trade situation in another  trade centers we can better understand  position in Novgorod where less  data base.

2. The problem of price formation in the trade of Hansa legue.

The price problem on of the HL & in Medieval in general very dispute. I think the prices have a change die it devaluation of national currency.

Now we not discus the sketch of Parshe & laskers –German encomiasts of 18 cent. who using currently. But we here  to do  try how worked mechanism  price formation on the foreign trade.

Apparently technical analysis  it’s usual mean for studding economical process we must find & describe fundamental bases trade witch impossible without price there change.

In general price determined  the value of goods according J.Hicks.  Hierarchical structure sites of Low countries  allows to suppose deferent value of the some things. Therefore appearance movement those things from depth  sites to the cost. Here was demand. So price formation dui it deference  prices according deferent value  of the  things.

And Medieval scholars “recognized that economical value of price & price are determinaed with respect to human utility…” (Kaye J.,1997, p.123).

The enormous difference in weights and measures and the absence of uniform standards of quality (Lesger, 2006. P.252). Since 1341 German cites became mint golden coin «Gulden» not very match numerous & England 1344 start output gold nobles (Allen M. 2012, Gulbekk 2014). German monetary  authority had made attempt to create untied coin system was  Wendischer Münzverein of other German Hansa towns. 1379 — 1569. Because at Cologne and at Lübeck marks were quite independently trans-formed into units of account, of 12 and 16 schillings respectively, and pounds were not used there (Nightingale, 2007, p.237; Spufford, 1986. P.XXI-XXII & map). So in modern calculation became to use weight money units in grams that allows to comprise dates from others countries (Retsö,  Söderberg, 2015, S.1-5; Söderberg 2013. P.82-85; Khan 2015).

Such mean we can establish purchasing power parity (PPP) and compare value  1 gramm precious metal.

The price of Novgorodin furs increased: Primary in Novgorod was 5 roubl  per  thousand skins.(1 kg). In Danzig the measure not in Russian ruble but in Prussian marks 30 by quantities (5.6kg) &10 livres in Brugge (6,5 kg). Increasing in 6,5  times.

So HL acted the Law of One Price (Lo, Zivot, Volcraft, Wolf, Khan, Person, Ogilvi).as economical mechanism supported exchange trade in HL as fundamental base.

In Flanders British merchant bought  furs on his gold nobles. J.Munro (1972. P. 53) wrote: English merchants spent the golden Nobel in Flanders with such persistence, as if they wanted to cause damage and the Crown.

Only cross-course transaction allows British merchants get income. The pursuit of royal profit thus prevented local money, many of whom were prominent merchants possessed of both capital and financial expertise, from developing banking services. Instead the Crown turned to the Jews, and then to the Italians(Nihgtangale, 2007. P.373).

Novgorod’s export havn’t statistic but allows to establish what part of money stream can to have of Novgorod.

The data of coins output in England, new data of fish trade on the line Bergen to Lubeck &some data from Sweden &Demark. May be it’s fantastic. Nearest task to reveal sources of  study novgorodian trade. On the level statistic data: M.P. Lesnikov & “Das Rigische Schuldbuch(1286-1352)”.

3. Some numerical values

We proceed from the fact that national borders in the Middle Ages were not constant, whereas the habitats of fauna were only constantly compressed. Therefore, the definition of modern researchers of belonging to one or another territory with fur animal resources allows to provide new arguments for understanding of the political process in the Middle Ages. The methodology of statistical measurements. Besides, the homogeneous static conclusions do not always show the historical differences.

Available material not only allows to show the potential of the “proven reserves” of fur raw materials, but also the number of extracted skins, which reflect both the added value and size of the fur animals’ population calculable by indicator of the “output skins”.

We have data on  quantities fur animals from Medieval Russia  that to calculate for deliverance into the West. Apart Sable Novgorodian land (Country), which areal inhabitant was in Far east, including Siberia had ermines, martens, also usual squeals. Currently we  noted about exogenous  condition  of extraction & transportation of natural resources  without increasing returns for economical  growth (Natural Resources and economical growth.., 2015. P.55).

Despite on widest distribution martens & ermines  in ‘export of Novgorod they were not very  big part – just only 2-3 % as we can see form  report on Burgundian company of Hildenbrandt Feckenhausen.

Soviet historian Lesnikov found data 450th skins one time and a priori suggests improve to  rise into 2 time for to calculate pre year.  According Tar-model of O.Volkart turn speed of money in Baltic trade of Hanse league was during 8-12 month And for establishment quantities of silver for service this trade flow we must to calculate on 1 year period.

And numerous of  value fur skins may be to ignore as statistical  error.

So when we are studding datas J.Martin –A.Choroshkevich about 500-840th maximum skins delivers we was on the right road. So we have in sum not more 1.5M per year from Novogorod, part of them was payed on barter.

English nobles wearied furs  especially in winter time also when was rain because in Medieval humanity havn’t water-repellent cloth . British people had own wool material, directed on export including into East Baltic but another material – cotton, silk was delivered from China, India & Iran, (Mokyr, 1976, p.200-205).

Soviet and modern historians can’t to decide question about ratio gold\silver when with enter English nobles appeared phenomenon “bimetallism” Now P.Spufford (1988) established almost all relation medieval currency with gold\silver.  Anywhere I wrote about 1\12 ratio in Eastern Prussia on data trade in Riga & Novgorod with use English gold coins. So transaction on 22 th nobles on 7 gr.must be 154 kg gold as equivalent  1848 kg of silver. Sure the story on base which Lesnikov found this datas means that  convoy of ships gone from Danzig to the Brugge or London. The way was across Zund. Apparently  for calculated silver deliverers into Novgorod per year we  must to improve on 1,5 and to divide on 5,5 excess cost in Prussia, Raga-Revel over Novgorod due it hierarchical structures cites organizing of Hansa league as well-know on Belgium-Netherlands economical historiography.

If we summarizing above data with data ef export squirrels J.Martin –A.Choroshkevitxh in maximum 840 th per year. We ‘ll have fulldata of fur ordinary fur from Novgorod is about 1,5 M.

Here we used all calculation not only on money units but in weight those units of coins & bars. It’s methodological approach which itself  have a significance for identification rate of differences of money systems and using rarely Sweden scholarships .

So Novgorod  can to get 1,5 tonn of silver  in  internal prices sailing 1,5M of squirrel skins per year.  These data very important for next theoretical exploration because we have speed money turn as well as  monetary stream and prices.

Great Fisher’s formaula MV = PV, which used Nik.Mayhem.(Coffman 20013). Thank J.Nef we know about mint silver in ALPS & Hungary in 27-52 tonn per year & part of 1,5M skins could be payed on barter.

Meanwhile Novgorod not need in gold for money circulation, Ie this country used silver in bar-from as commodity for sale “down”. But Poland –need (Kubijak). As evidence we must to reminder the treasury on gold coins  in Slytzk (Belorussia)1902.

The West-East borders of Hansa Legue (HL) at the last Medieval were London & Novgorod (Smolensk)approximately 1370\2200 miles\km. of course here were some trade are on gegraficcal sense having less three meridian trade directs. Main of them was Londo-Low countreis (Calaus) –Kolon. Also: Bergen-Lubeck & Visby- Danzig.

The act of LOP allowed to  merchants  seek deferent ways from Russia fur & other agricultural raw into the end consumer witch  was London.

1.Novgorod (N)–Danzzig – Brugge ;

2. N — (Pskov, Derpt) –Riga- London;
3. N.-Revel-Visby-London;
4. N – Revel – Visby — Danzig;

In collusion fur competition appearance with a supply from North America, when in Europe became deliveries beaver wool (Carlos A., 2006. P.305-306; The fur trade of Canada, 1977, p,70-72).