Henry VII's Overseas Trade Policies

Henry VII recognized the importance of overseas trade in developing England's economy and implemented several policies to promote it.

Highlight: Henry VII's trade policies were crucial in expanding England's commercial interests and increasing crown revenue.

Key aspects of Henry's trade policies include:

1. Merchant Fleet Development: Henry built a new merchant fleet to rival those of other European powers, enhancing England's ability to conduct overseas trade.

2. Navigation Acts: The Navigation Acts of 1485-86 promoted the use of English ships for trade, boosting the domestic shipping industry.

3. Support for Merchants: Henry supported the Merchant Adventurers and attempted to break the monopoly of the Hanseatic League, promoting English commercial interests.

4. Trade Clauses in Treaties: Every treaty Henry signed included a trade clause to increase his revenue, demonstrating his consistent focus on commercial benefits.

Quote: "Henry believed wealth from trade would help secure his dynasty"

This quote illustrates Henry's understanding of the link between economic prosperity and political stability.

Cloth Trade: Woollen cloth was the cornerstone of English exports during Henry's reign:

• Cloth made up 90% of exports and increased by 60% during his reign.
• Main cloth-producing regions were Yorkshire, East Anglia, and the West Country.
• In 1487, Henry banned the export of unfinished cloth and wool to encourage the finishing process in England, adding value to exports.

Vocabulary: Merchant Adventurers - An English company of merchants engaged in foreign trade, especially with the Netherlands.

Development of Industry: Henry's reign also saw growth in other industries:

• Tin mining in Cornwall
• Lead mining in the Pennines
• Coal mining in Durham and Northumberland, with coal shipped from Newcastle to London to meet growing demand

Example: The shipping of coal from Newcastle to London demonstrates the growing interconnectedness of England's regional economies during Henry's reign.

While industry in England remained relatively small-scale compared to later periods, these developments laid important groundwork for future economic growth.

Henry VII's Economic Successes

Henry VII's reign marked a period of significant economic growth and financial stability for England. His policies aimed to strengthen the crown's finances and expand trade.

Highlight: Henry VII increased the crown's annual income from £12,000 to £40,000 through efficient management of crown lands and customs revenues.

The Treaty of Etaples in 1492 brought in an additional £742,000, payable at £50,000 per year, which represented a substantial 5% of the annual income. Henry's active involvement in crown finances led to a remarkable increase in royal wealth.

Example: By 1497, Henry had an income of £100,000, and by his death in 1509, he had amassed a total of £1.8 million.

Henry's economic policies also focused on expanding trade. The Navigation Acts of 1485 and 1489 were instrumental in promoting English shipping and trade. These acts required English goods to be transported in English ships, boosting the domestic shipping industry.

Vocabulary: Navigation Acts - Laws designed to promote the use of English ships in trade.

The cloth trade became a cornerstone of England's economy during Henry's reign. Cloth exports increased by 60% and accounted for 90% of England's exports. This growth was supported by improved profitability in sheep farming and increased demand for wool.

Henry also encouraged the growth of mining and coal industries. Food prices remained stable throughout his reign, contributing to overall economic stability.

Definition: Patronage - The support or encouragement given by a patron, in this case, Henry VII to his loyal supporters.

Henry used patronage to reward loyal supporters, strengthening his political position. For example, Jasper Tudor was made Duke of Bedford, illustrating how economic and political strategies were intertwined in Henry's reign.