Merchant Networks in the Islamic Empires

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English Dress Made of Indian Printed Cotton Cloth Early British traders in India were impressed with the quality of the textiles made there and began ordering designs that would be popular with the English. This dress, created around 1770–1780 in England, is made of printed cotton (chintz) from the southeastern part of India. Chintz became so popular in England that it was eventually banned because it was threatening local textile industries.(Victoria & Albert Museum, London, UK/Art Resource, NY)

The shifting trade patterns associated with European colonial expansion brought no direct benefit to the Ottomans and the Safavids, whose merchants could now be bypassed by Europeans seeking goods from India, Southeast Asia, or China. Yet merchants from these Islamic empires often proved adaptable, finding ways to benefit from the new trade networks.

In the case of India, the appearance of European traders led to a rapid increase in overall trade, helping Indian merchants and the Indian economy. Some Indian merchants in Calcutta and Bombay, for instance, made gigantic fortunes from trade within Asia carried on European ships. Block-printed cotton cloth, produced by artisans working at home, was India’s chief export. Through an Islamic business device involving advancing payment to artisans, banker-brokers supplied the material for production and money for the artisans to live on while they worked; the cloth brokers specified the quality, quantity, and design of the finished products. This procedure resembles the later English “putting-out” or “domestic” system (see “Technological Innovations and Early Factories” in Chapter 23), for the very good reason that the English took the idea from the Indians.

Within India the demand for cotton cloth, as well as for food crops, was so great that Akbar had to launch a wide-scale road-building campaign. From the Indian region of Gujarat, Indian merchant bankers shipped their cloth worldwide: across the Indian Ocean to Aden and the Muslim-controlled cities on the east coast of Africa; across the Arabian Sea to Muscat and Hormuz and up the Persian Gulf to the cities of Persia; up the Red Sea to the Mediterranean; by sea also to Malacca, Indonesia, China, and Japan; by land across Africa to Ghana on the west coast; and to Astrakhan, Poland, Moscow, and even the Russian cities on the distant Volga River. Indian businessmen had branch offices in many of these places, and all this activity produced fabulous wealth for some Indian merchants. Some scholars have compared India’s international trade in the sixteenth century with that of Italian firms, such as the Medici. Indian trade actually extended over a far wider area, however. Indian merchants were often devout Hindus, Muslims, Buddhists, or Jains, evidence that undermines the argument of some Western writers, notably Karl Marx (see “The Birth of Socialism” in Chapter 24), that religion retarded Asia’s economic development.

Throughout Muslim lands both Jews and Christians were active in commerce. A particularly interesting case involves the Armenian Christians in the Safavid Empire in the sixteenth to eighteenth centuries. Armenian merchants had been trading from their base in Armenia for centuries and were especially known for their trade in Persian silk. When the Portuguese first appeared on the western coast of India in 1498 and began to settle in south India, they found many Armenian merchant communities already there. A few decades later Akbar invited Armenians to settle in his new capital, Agra. In 1603 Shah Abbas captured much of Armenia, taking it from the Ottomans. Because defending this newly acquired border area was difficult, he forced the Armenians to move more deeply into Persia. Among them was the merchant community of Julfa, which was moved to a new suburb of Isfahan that was given the name New Julfa. The old city of Julfa was burned down so that the residents could not return. Shah Abbas made use of the Armenian merchants as royal merchants and financiers, but their economic mainstay continued to be long-distance trade.

Surviving letters and account books have allowed scholars to reconstruct the expanding trading networks of the Armenian merchants — networks that stretched from Venice and Amsterdam in western Europe, Moscow in Russia, and Ottoman-controlled Aleppo and Smyrna to all the major trading cities of India and even regions farther east, including Guangzhou in southern China and Manila in the Philippines. Many Armenian communities in these cities became quite substantial, built churches, and recruited priests. Kinship connections were regularly used to cement commercial relations, and members of the community living in these scattered cities would return to New Julfa to marry, creating new kinship connections. Business, though, was conducted through contracts. The merchant about to take a journey would borrow a sum of money to purchase goods and would contract to pay it back with interest on his return. Using couriers, these Armenian merchants sent long letters describing the trade environment and the prices that could be realized for given goods. These letters were written in a dialect of Armenian known to few outside their community, making it easier to maintain confidentiality in reports on trade conditions.

The Armenian merchants would sail on whatever ships were available, including Dutch and Italian ones. The goods they dealt in included silver, gold, precious stones, indigo and other dyestuffs, silk, cotton cloth, and tea. The merchants could often speak half a dozen languages and were comfortable in both Islamic and Christian lands. In India Armenian merchants reached an agreement with the British East India Company that recognized their rights to live in company cities and observe their own religion. By the 1660s they had settled in Manila, and a few decades later they entered what is now Malaysia and Indonesia. By the end of the seventeenth century a small group of Armenian merchants had crossed the Himalayas from India and established themselves in Lhasa, Tibet. By the mid-eighteenth century they had also settled in the Dutch colony of Batavia (Indonesia). Clearly the Armenian merchants were able to operate profitably in cities European powers dominated.

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Armenian Brass Bowl The inscription on this bowl dates it to 1616 and places it in New Julfa, the Armenian quarter of Isfahan. It would have been used by an Armenian Christian priest to wash his hands.(© Ana Melikian 2007)

In the mid-eighteenth century the Armenian community lost its center in New Julfa because of religious persecution by a zealous shah, and the community scattered. Still, Armenian merchants remained prominent in many trading centers, including Russia, the Mediterranean, and especially India, well into the nineteenth century.