Genoese and Venetian Middlemen

Compared to the riches and vibrancy of the East, Europe constituted a minor outpost of the world trading system. European craftsmen produced few products to rival the fine wares and coveted spices of Asia. In the late Middle Ages, the Italian city-states of Venice and Genoa controlled the European luxury trade with the East.

In 1304 Venice established formal relations with the sultan of Mamluk Egypt, opening operations in Cairo, a gateway to Asian trade. Venetian merchants specialized in goods like spices, silks, and carpets, which they obtained from middlemen in the eastern Mediterranean and Asia Minor. A little went a long way. Venetians purchased no more than five hundred tons of spices a year around 1400, with a profit of about 40 percent. The most important spice was pepper, grown in India and Indonesia, which constituted 60 percent of the spices they purchased in 1400.5

The Venetians exchanged Eastern luxury goods for European products they could trade abroad, including Spanish and English wool, German metal goods, Flemish textiles, and silk cloth made in their own manufactures with imported raw materials. Eastern demand for such items, however, was low, leading Venetians to fund their purchases through shipping and trade in firearms and slaves. At least half of what they traded with the East took the form of precious metal, much of it acquired in Egypt and North Africa. When the Portuguese arrived in Asia in the late fifteenth century, they found Venetian coins everywhere.

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Venice’s ancient rival was Genoa. In the wake of the Crusades, Genoa dominated the northern route to Asia through the Black Sea. Expansion in the thirteenth and fourteenth centuries took the Genoese as far as Persia and the Far East. In 1291 they sponsored an expedition into the Atlantic in search of India. The ships were lost, and their exact destination and motivations remain unknown. This voyage reveals the long roots of Genoese interest in Atlantic exploration.

In the fifteenth century, with Venice claiming victory in the spice trade, the Genoese shifted focus from trade to finance and from the Black Sea to the western Mediterranean. Located on the northwestern coast of Italy, Genoa had always been active in the western Mediterranean, trading with North African ports, southern France, Spain, and even England and Flanders through the Strait of Gibraltar. When Spanish and Portuguese voyages began to explore the western Atlantic, Genoese merchants, navigators, and financiers provided their skills and capital to the Iberian monarchs. The Genoese, for example, ran many of the sugar plantations established on the Atlantic islands colonized by the Portuguese. Genoese merchants would eventually help finance Spanish colonization of the New World.

A major element of Italian trade was slavery. Merchants purchased slaves, many of whom were fellow Christians, in the Balkans. The men were sold to Egypt for the sultan’s army or sent to work as agricultural laborers in the Mediterranean. Young girls, who constituted the majority of the trade, were sold in western Mediterranean ports as servants or concubines. After the loss of the Black Sea — and thus the source of slaves — to the Ottomans, the Genoese sought new supplies of slaves in the West, taking the Guanches (indigenous peoples from the Canary Islands), Muslim prisoners, Jewish refugees from Spain, and by the early 1500s both black and Berber Africans. With the growth of Spanish colonies in the New World, Genoese and Venetian merchants would become important players in the Atlantic slave trade.

Italian experience in colonial administration, slaving, and international trade served as a model for the Iberian states as they pushed European expansion to new heights. Mariners, merchants, and financiers from Venice and Genoa — most notably Christopher Columbus — played a crucial role in bringing the fruits of this experience to the Iberian Peninsula and to the New World.