Edward IV, who seized the throne through the Wars of the Roses, needed to revive an economy devastated by the tediously long Hundred Years’ War and find ways to check the nobles who now sought to share power with him—especially Richard Neville, Earl of Warwick.
England’s main export at this time was wool.
Wool from English manors was shipped to Italian city-states like Florence.
Cities like Florence processed this wool into high-quality woolen textiles and exported them back to England.
This was naturally a disadvantageous trade for England.
The English kings were well aware of this and implemented primitive protectionist policies and artisan development programs.
To grow the woolen industry, they encouraged migration of foreign craftsmen—mainly Italian—or acquired their techniques.
They then promoted policies encouraging the use of domestically produced woolen textiles, banning the import of foreign woolens, and prohibiting wool exports.
Through these policies, England’s woolen textile industry continued to grow. Simultaneously, the number of wool smugglers began to increase.
Italian woolen textiles remained famous, so successful smuggling could bring enormous profits.
However, due to the Hundred Years’ War, the wool export ban was temporarily suspended.
England exported wool to neighboring countries except France. This was both for securing war funds and as part of diplomacy.
After the Hundred Years’ War concluded and Edward IV ascended to the throne through the Wars of the Roses, he reimposed the ban on importing foreign woolen textiles in 1464 and began preparing legislation to prohibit wool exports again.
This was to strengthen government finances while creating jobs in the woolen textile sector.
“The problem is that woolen textiles alone aren’t enough to become prosperous.”
Edward IV coolly analyzed the situation.
Woolen textiles made in England were still inferior in quality to those made in Italy.
The truly profitable high-end woolen textile market remained dominated by Italian city-states.
“We’ll catch up eventually, but time and capital are the issues.”
Domestically, commercial capital and markets were growing, but there was still a long way to go.
That wasn’t all.
Portugal and Italy—specifically Florence—had another advantage.
They were making enormous profits by acting as intermediaries for goods made in the “Country of the Flower.”
England’s problem was that banning the import of Imperial products was virtually impossible.
Edward IV himself had his bedroom and office filled with Imperial goods, and crystal chandeliers made in the Empire illuminated the ceiling of Buckingham Palace’s banquet hall.
Many items from the “Country of the Flower” were irreplaceable, with superior quality and overwhelming consumer preference. Therefore, rashly banning imports would only result in various losses.
“This is so frustrating…”
Edward IV pondered deeply about the “Country of the Flower,” which posed problems whether left alone or blocked.
***
Unable to sleep properly due to economic and political concerns, Edward IV leapt from his seat when he heard rumors about the “western route.”
“This is it!”
Everyone knew that importing from the “Country of the Flower” brought huge profits.
If a “western route” were discovered, the nation controlling that route could immediately stand as Europe’s central power.
But that wasn’t all.
As seen with “Prince Henry the Navigator,” pioneering new routes was an enterprise requiring enormous capital.
Success in a single attempt was almost miraculous, and one had to be prepared to lose many lives, ships, and capital.
Of course, if the exploration succeeded, massive profits were anticipated.
Ultimately, funding the exploration and development of new routes wasn’t an investment but speculation.
Edward IV found a breakthrough to break the nobles’ influence in this area.
“Right now, only the nobles can provide large sums of money! Mention the ‘Country of the Flower’ and they’ll open their purses immediately!”
Having conceived a way to deplete the nobles’ financial resources through “western route exploration,” Edward IV immediately set to work.
The first task was to use his confidants to find a captain with suitable experience and abilities. Next, he subtly spread rumors in noble society and the market.
- The king is looking for a captain to find the “western route”!
- He’s not just looking for a captain but has actually commissioned shipyards to build vessels!
This was only half true.
He had indeed contracted with shipyards to build vessels.
However, these weren’t for finding the western route but for deployment on trade routes between Calais and Italy.
Searching for a captain was merely a strategic move.
But Edward IV never revealed this.
“Even if I told them, they wouldn’t believe me.”
Edward IV muttered with a satisfied smile. Now that rumors had spread, few nobles would believe Edward IV even if he told the truth.
- No matter what anyone said, the foundation of power was military might. And maintaining that might required financial resources.
- If Edward IV could find an exclusive trade route to the “Country of the Flower,” he could achieve complete monopolization of power.
- Trade with Italy had nearly stopped. Deploying new merchant ships there made no sense.
England’s nobles, regardless of faction, all reached similar conclusions.
Before long, similar investment solicitations began appearing in London’s stock market.
- “Seeking investors for the ‘Western Route Expedition’!”
What would later be called the “Atlantic Bubble”—a massive speculative frenzy—had begun.
***
As Edward IV anticipated, nobles showed the most enthusiasm for investing in the expedition.
Newly emerging commercial capital was at a disadvantage in competing with nobles in various ways, and consequently dropped out first.
“Now that we’ve gotten rid of those who would just nibble away at shares, things are more comfortable!”
Having eliminated competitors, the nobles soon began forming investment groups—clans—in small gatherings.
These nobles, having pooled their capital, began seeking capable captains.
However, the captains’ responses were negative.
“Let me see… Just one caravel? You want me to cross uncharted open seas with just one caravel? I refuse!”
“Then how many ships…”
“At least five are needed, sir! We must depart from Calais, and that area is swarming with pirates and rogues disguised as pirates from Portugal, Spain, and France!”
“Pirates?”
“Haven’t you heard of the Barbary pirates?”
“Don’t they mainly plunder in the Mediterranean?”
“Their operations have greatly expanded these days.”
“Oh dear…”
In the end, the nobles had to provide additional funds.
Even after that, the nobles had to continue investing more money.
The first “war of money” broke out over recruiting the lead captain to command the expedition.
Captains with the ability, experience, and reputation to lead their crew and other ships’ captains without objection were rare.
Naturally, competition to recruit such captains intensified. “Premiums” became standard in this process, and it wasn’t uncommon for contracts made one day to be broken the next.
As a result, premiums piled upon premiums, but the nobles couldn’t back down from the competition.
With a proper lead captain, they could fill the positions of subordinate ship captains and crew with relatively vetted individuals.
The second “competition of money” centered on ships, or more precisely, shipyards.
One couldn’t set sail on an old vessel for a voyage fraught with unknown dangers.
Orders naturally flooded the shipyards, but the problem lay in the limited number of yards and their construction capacity.
“I’ll pay extra if you build our ship earlier than other clans!”
“Proper shipbuilding requires proper effort. Rushing leads to problems!”
“That’s exactly it! We’re asking you to postpone the other clans’ ships and build ours first! That’s why we’re offering extra money!”
“My lord, your clan isn’t the only one with prominent members. Other clans have their own dignitaries! Would I risk my reputation for a few extra coins? Please respect the order!”
As the bubble expanded, get-rich-quick scams also began to emerge.
“I can arrange a capable captain for you. He’s currently contracted with another clan, but I know him well. With a suitable broker’s fee and penalty payment, I can have him sign a contract right away.”
Some would speak like this, take the money, and disappear, while others impersonated renowned captains to commit fraud.
That wasn’t all.
“Shipyards are the investment of the age! They’ll be geese that lay golden eggs! I plan to recruit a renowned shipbuilding craftsman from Spain!”
Some began collecting investment funds claiming they would bring famous shipbuilding craftsmen from Spain to build shipyards, only to flee overseas.
Amid these various incidents and accidents, the bubble grew insanely large.
Gradually, nobles who fell behind in the competition began to be eliminated.
With investments approaching nearly infinite amounts, clans that lost in the competition had no choice but to disband.
The problem was that even if a clan disbanded, most of the invested money had vanished into thin air.
As a result, bankruptcies among nobles became increasingly common.
Edward IV’s desired outcome had begun to materialize.
Among the bankrupt nobles were some who supported Edward IV, but he lightly dismissed them.
“They are chaff.”
Edward IV’s true core supporters had already been tipped off. They either didn’t invest at all or merely pretended to invest while observing the situation.
- When things settle down, it won’t be too late to make a move.
While these core supporters were watching and waiting, the first exploration fleet assembled and set sail.
It was the expedition that included the “Golden Mary,” captained by Thomas.
***
Though they had departed, Captain Thomas’s fleet wasn’t fully prepared.
There was a severe shortage of crew members.
“Well, I know there’s no cliff at the edge of that sea, and I know there’s no boiling sea, but I still won’t go.”
“You want me to go somewhere without sea charts? If we get lost in the middle of that vast ocean, we simply die. Why would I do something so crazy?”
“For this meager wage, you want me to do something so insane? Never, even if I die!”
“Success bonus? If I die, it’s all for nothing… No advance payment, no deal!”
While some readily accepted this unprecedented challenge of crossing the Atlantic, most sailors refused to participate.
Despite the “success bonus” incentives offered by the clans, the situation remained at an impasse.
In the end, the clans and captains had no choice but to seek an alternative.
“Let’s procure slaves.”