Northern Italian cities led the way in the great commercial revival of the eleventh century (see "The Rise of Towns" in Chapter 10). By the middle of the twelfth century, Venice, supported by a huge merchant marine, had grown enormously rich through overseas trade, as had Genoa and Milan, which had their own sizable fleets. These cities made important strides in shipbuilding that allowed their ships to sail all year-round at accelerated speeds and carrying more and more merchandise.

Another commercial leader, and the city where the Renaissance began, was Florence, situated on fertile soil along the Arno River. Its favorable location on the main road northward from Rome made Florence a commercial hub, and the city grew wealthy buying and selling all types of goods throughout Europe and the Mediterranean.

Florentine merchants also loaned and invested money, and they acquired control of papal banking toward the end of the thirteenth century. Florentine mercantile families began to dominate European banking, setting up offices in major European and North African cities. The banking profits that poured back to Florence were pumped into urban industries such as clothmaking. Profits contributed to the city’s economic vitality and allowed banking families to control the city’s politics and culture.

By the first quarter of the fourteenth century, the economic foundations of Florence were so strong that even severe crises could not destroy the city. In 1344, King Edward III of England repudiated his huge debts to Florentine bankers, forcing some of them into bankruptcy. Soon after, Florence suffered frightfully from the Black Death, losing at least half its population, and serious labor unrest shook the political establishment. Nevertheless, the basic Florentine economic structure remained stable, and the city grew again. In Florence and other thriving Italian cities, wealth gave many people the free time and resources to appreciate and patronize the arts. Merchants and bankers commissioned public and private buildings from architects. They hired sculptors and painters to decorate their homes and churches.