In Part 1 we briefly saw that the sovereign Magellan sailed for, although correctly titled ‘King of Spain’ and (from July, 1519 on) as ‘Holy Roman Emperor’, was in fact a Fleming, born and raised. Charles V’s administration was of course dependent on financing in order to function – as all governments are and were. Expeditions like Magellan’s required real capital to fund them and that capital had to be sourced, either borrowed from merchant bankers or allocated from some existing revenue source.
Vasco da Gama's route across the bottom tip of the African continent to reach the spice emporiums of Calicut in India is of nearly equal importance as Columbus' westward voyages.
It is important here to recall that it was only twenty years before Magellan’s departure – in 1499 – that Vasco da Gama had broken the Venetian-Arab monopoly on spices.[ii] By sailing to India by way of rounding the Cape of Good Hope, da Gama broke the Venetian-Arab monopoly on the distribution of Asian spices to Europe. Instead of hundred-pound sacks sent on a sea journey from the emporiums of India and then large camel caravans traveling at 2 miles an hour across the Arabian deserts to Mediterranean ports and a final dash avoiding pirates before reaching Venice[iii], bulk cargoes in the hundreds of tons could be tran-shipped across the Indian Ocean and, after rounding Africa’s southern tip, sail up around the western coast of Africa before docking in Lisbon.
Even though da Gama’s trip had taken three years to complete, and he had lost all but one ship (and the European goods that they had brought to trade sold in India at roughly 10% of their cost), the profits on the spice cargo made huge profits for investors – 60 times the cost of the expedition or over 4,700% return on investment.[v] The pepper that Da Gama purchased in Calicut, India for 3 ducats per hundredweight (which was already marked up by the Chinese, Malay, and Indian traders at each leg of the journey before it came to market in Malacca), was sold in Portugal for 80 ducats per hundredweight.[vi] In the context of broader trade numbers, at least 1,000 tons of pepper were imported annually into Europe.[vii] Moreover, it was not so much used as a casual confection, but more critically as a preservative for Autumn-slaughtered livestock, especially as the meat spoiled and rotted into the Spring.[viii] So the potential for great riches from a new channel of access to not only pepper but cloves, mace, nutmeg, and the rest[ix] was truly unimaginable.
Meet The Fuggers
Trade and finance have always had a symbiotic relationship. In early modern Europe, no less, trade was not only the engine of economic growth but also the primary source of taxes for the royal treasury. Since the royal treasury of young Charles V was seemingly always in need of extra cash, merchants who could extend loans to the sovereign, found trading privileges easier to come by.[x]
Jakob Fugger as painted by Albrecht Durer between 1518 and 1520 - exactly the time when Magellan was preparing for and departing on the first leg of his circumnavigation.
An excerpt from the "Trachtenbuch" (Book of Achievements) of Matthias Schwarz. Schwarz joined Fugger's business in 1516 at the age of 19. The picture here shows Jakob Fugger telling Matthias Schwarz what to enter into the books.
Part 3 of this series will discuss Christopher De Haro of Antwerp and other Flemish contributions to Magellan's preparation for the world's first circumnavigation. Part 4 will detail the individual Flemings in the expedition.
Albrecht Durer's and Johannes Stabius' depiction of the world circa 1515, just before Magellan's circumnavigation.
[i] Ludovico Guicciardini, “Antwerp, The Great Market” in James Bruce Ross and Mary Martin McLaughlin, eds., The Portable Renaissance Reader, (New York: Penguin, 1982), pp.185-201, especially pp. 186-187.
[ii] Ludovico Guicciardini, “Antwerp, The Great Market” in James Bruce Ross and Mary Martin McLaughlin, eds., The Portable Renaissance Reader, (New York: Penguin, 1982), pp.185-201, especially p. 196.
[iii] “Venice at this time was not only Europe’s chief market place, but also its greatest shipbuilding center, its foremost transport agent, and one of the leading manufacturing communities, rivaling Ghent.” Charles McKew Parr, Ferdinand Magellan, Circumnavigator: His Life and Explorations, 2nd ed., (New York: Thomas Y. Crowell Co., 1964), p. 160.
[iv] For a recap of the historiography around this seminal turning point in history, see Peter Rietbergen, “Westerse geschiedschrijving en niet-wsterse geschiednis, onmogelijkheid of noodzaak, of wel: Europa in de ‘Vasco da Gama-era’” in Tijdschrift voor Geschiednis, 111e jaargang, aflevering 4, 1998, pp.533-544.
[v] Charles Corn, The Scents of Eden: A History of the Spice Trade, (New York: Kodansha, 1999), p.xxiv
[vi] Richard Humble, The Explorers, (New York: Time-Life, 1978), p.104. I have searched vainly for a more authoritative source and would welcome any suggestions on where that might be found.
[vii] Peter Spufford, Power and Profit: The Merchant in Medieval Europe, (New York: Thames and Hudson, 2002), pp. 380-381. Spufford says that at the end of the 14th century – 100 years before Magellan – the Venetians imported 500 tons of pepper annually and the Genoese and Catalans a further 200 tons each.
[viii] See the clearest explanation of this in Charles McKew Parr, Ferdinand Magellan, Circumnavigator: His Life and Explorations, 2nd ed., (New York: Thomas Y. Crowell Co., 1964), p. 157.
[ix] “Spices such as clove[s], cinnamon, nutmeg, ginger, and numerous drugs such as rhubarb, cassia, agaric, dragon’s blood, mummy, senna-leaf, colocynth, scammony, tutty, mithridate, and treacle.” See Ludovico Guicciardini, “Antwerp, The Great Market” in James Bruce Ross and Mary Martin McLaughlin, eds., The Portable Renaissance Reader, (New York: Penguin, 1982), pp.185-201, especially p. 196.
[x] See, for example, the string of translated documents online relating to Charles V’s constant borrowings from King Henry VIII in 1517 here: http://www.british-history.ac.uk/report.aspx?compid=93638 'Spain: 1517', Calendar of State Papers, Spain, Volume 2: 1509-1525 (1866), pp. 286-289. URL: http://www.british-history.ac.uk/report.aspx?compid=93638 Date accessed: 31 October 2009.
[xi] The Fugger family website: http://www.fugger.de/en/1_geschichte.htm
[xii] Albrecht Durer, the famous painter, wrote in 1520, a year after Magellan’s departure: “I have been into Fugger’s house in Antwerp. He has newly built it in very costly fashion, with a noteworthy tower, broad and high, and with a beautiful garden. I also saw his fine horses.” From Durer’s “Travel Diary,” in W.M. Conway, Literary Remains of Albrecht Durer, (Cambridge: University Press, 1889), quoted in “A Painter’s Travels” in James Bruce Ross and Mary Martin McLaughlin, eds., The Portable Renaissance Reader, (New York: Penguin, 1982), p. 230.
[xiii] William Maltby, The Reign of Charles V, (New York: Palgrave, 2002), p.72.
[xiv] For a fascinating glimpse into this process see the excerpt of a letter from the Emperor Maximilian I to Paul Von Liechtenstein, dated September, 1511, and the ‘collection letter’ from Jakob Fugger to Charles V in 1523, from J.Stieder, Das reiche Augsburg, (Munich, 1938), in Mary Martin McLaughlin (trans), “The Hapsburgs and the Fuggers”, trans. In James Bruce Ross and Mary Martin McLaughlin, eds., The Portable Renaissance Reader, (New York: Penguin, 1982), pp.175-181
[xv] See the excerpt of a letter from the Emperor Maximilian I to Paul Von Liechtenstein, dated September, 1511, and the ‘collection letter’ from Jakob Fugger to Charles V in 1523, from J.Stieder, Das reiche Augsburg, (Munich, 1938), in Mary Martin McLaughlin (trans), “The Hapsburgs and the Fuggers”, trans. In James Bruce Ross and Mary Martin McLaughlin, eds., The Portable Renaissance Reader, (New York: Penguin, 1982), pp.176-177. Maximillian pawned both the crown jewels (p.176) as well as “the four best chests of treasure, including our robes of investiture” (p.177).
[xvi] William Maltby, The Reign of Charles V, (New York: Palgrave, 2002), p.68.
[xvii] William Maltby, The Reign of Charles V, (New York: Palgrave, 2002), p.68. Interest rates that Charles V was charged on these loans could be as low as 12% per annum and as high as 100% per annum – such as immediately following his defeat at the Battle of Metz in 1552!
[xviii] The captain of the ship for the equivalent of a few hundred dollars in trade goods netted a profit of $4 million. See Charles McKew Parr, Ferdinand Magellan, Circumnavigator: His Life and Explorations, 2nd ed., (New York: Thomas Y. Crowell Co., 1964), p. 166.
[xix] Charles McKew Parr, Ferdinand Magellan, Circumnavigator: His Life and Explorations, 2nd ed., (New York: Thomas Y. Crowell Co., 1964), p. 167.