early as the middle of the twelfth century cloths of Flanders were
extensively worn in France and Germany. In the eleventh century we find
ships of Friesland in the Belt, and even in the Levant. This
enterprising people ventured, without a compass, to steer under the
North Pole round to the most northerly point of Russia. From the
Wendish towns the Netherlands received a share in the Levant trade,
which, at that time, still passed from the Black Sea through the Russian
territories to the Baltic. When, in the thirteenth century, this trade
began to decline, the Crusades having opened a new road through the
Mediterranean for Indian merchandise, and after the Italian towns had
usurped this lucrative branch of commerce, and the great Hanseatic
League had been formed in Germany, the Netherlands became the most
important emporium between the north and south. As yet the use of
the compass was not general, and the merchantmen sailed slowly and
laboriously along the coasts. The ports on the Baltic were, during the
winter months, for the most part frozen and inaccessible. Ships,
therefore, which could not well accomplish within the year the long
voyage from the Mediterranean to the Belt, gladly availed themselves of
harbors which lay half-way between the two.

With an immense continent behind them with which navigable streams kept
up their communication, and towards the west and north open to the ocean
by commodious harbors, this country appeared to be expressly formed for
a place of resort for different nations, and for a centre of commerce.
The principal towns of the Netherlands were established marts.
Portuguese, Spaniards, Italians, French, Britons, Germans, Danes, and
Swedes thronged to them with the produce of every country in the world.
Competition insured cheapness; industry was stimulated as it found a
ready market for its productions. With the necessary exchange of money
arose the commerce in bills, which opened a new and fruitful source of