Economy and Trade of the Teutonic State
The economy of the Teutonic state in Prussia was, by the standards of the late Middle Ages, a remarkable achievement. In the space of a century and a half, the Order and its subjects had transformed a conquered, depopulated and partly destroyed territory into one of the most prosperous commercial regions of the Baltic. The principal pillars of the economy were the agricultural production of the demesne and peasant lands, the amber trade of the Baltic coast, and the transit trade of the Hanseatic League, in which the great Prussian towns — Danzig, Thorn, Elbing and Königsberg — played a major part. The state’s economy was, a sophisticated example of a late-medieval commercial economy, integrated into the wider network of the Baltic and the North Sea.
The Agricultural Base
The agricultural production of the Prussian state was, the foundation of the economy. The state was generally an agricultural region: the great majority of the population lived in the countryside, and the great majority of the export trade was in agricultural produce. The principal crops were rye, wheat, oats, hops and flax. The principal livestock were cattle, sheep, pigs and horses. The principal forest products were timber, furs, honey and wax.
The Order introduced, or substantially extended, the three-field system to much of the state. The three-field system — in which the arable land of a village was divided into three fields, two of which were cropped in any given year and one of which was left fallow — was, by the standards of the time, an efficient system of agriculture, and it allowed a substantial increase in the productivity of the land. The Order also drained the marshes of the lower Vistula, a substantial engineering project that added a substantial area of fertile land to the agricultural base of the state.
The agricultural surplus of the state was, large. The state was, by the standards of the time, well-administered, and the agricultural surplus was, in most cases, well-managed. The surplus was exported through the great ports of Danzig and Elbing to England, the Netherlands, the Iberian kingdoms, and other western European destinations, in a trade that made Danzig one of the great grain ports of the late medieval Baltic. The grain trade was, the foundation of the state’s commercial prosperity, and it was the source of a substantial part of the Order’s revenues.
The Towns and the Merchants
The towns of the Teutonic state were the commercial centres of the region. By the middle of the fourteenth century there were more than a hundred chartered towns in the state, of which the most important were Danzig, Thorn, Elbing, Königsberg, Kulm, Marienburg (the town, as distinct from the castle), Braunsberg, Heiligenbeil and Balga. The towns were, governed by municipal councils (Räte) elected by the patrician burghers. The Order reserved to itself the right to confirm the councils, to hold the high courts, and to collect the customs and the Pfundzoll, a transit duty on the Vistula trade.
The towns were, prosperous. The principal towns — Danzig, Thorn, Elbing and Königsberg — were among the larger towns of the Baltic region, and they were major centres of long-distance trade. The patrician class of the towns was, wealthy, and the towns were major consumers of the luxuries of western Europe — fine cloth, wine, spices, and the products of the great western European cities. The towns were, important nodes in the commercial network of the Baltic, and they were major contributors to the prosperity of the state.
The Hanseatic League
The most important commercial network of which the Prussian towns were members was the Hanseatic League, the great confederation of north German and Baltic towns that dominated the trade of northern Europe from the thirteenth to the fifteenth centuries. Danzig, was one of the principal members of the Hanseatic League, and the city was a major node in the league’s network of contacts with the English wool trade, the Flemish cloth trade, and the Scandinavian timber and fish trades.
The Order’s relations with the Hanseatic League were, close. The Order was, in effect, the sovereign of several of the principal members of the league, and the Order’s commercial interests were, aligned with those of the league. The Order was, interested in the security of the Baltic trade routes, the protection of the league’s members from piracy, and the maintenance of the commercial privileges that the league had obtained from the rulers of England, Flanders and the Scandinavian kingdoms.
The Order’s relations with the league were, however, not always easy. The Order and the league disagreed, on a number of occasions, about the terms of trade, the level of customs, and the privileges of the Order’s subjects in the league’s towns. The disagreements were, in most cases, resolved by negotiation, but they were a constant source of tension between the Order and the league.
The Amber Trade
The amber trade was, a smaller but distinctive part of the state’s economy. The Baltic coast of Prussia was, and remains, the principal European source of amber, and the Order held a strict monopoly on its collection, processing and export. The amber trade was, however, difficult to police, and the smuggling of amber was a constant concern of the Order’s customs administration.
The amber trade was, a luxury trade. Amber was used, in the late Middle Ages, principally for the production of rosaries, amulets, and other devotional objects, and the demand for amber was, in most cases, driven by the demand for these objects. The principal markets for amber were the western European kingdoms, particularly England, France, and the Iberian kingdoms, where amber was a fashionable material for the production of devotional objects and personal ornaments.
The Pfundzoll
The Pfundzoll — a transit duty on the Vistula trade — was, the Order’s principal commercial tax. The Pfundzoll was, in effect, a duty on every shipment of goods that passed along the Vistula, and it was, in most cases, levied at the Order’s customs posts at Danzig, Marienburg and other points along the river. The Pfundzoll was, a substantial source of revenue for the Order, and it was one of the principal means by which the Order financed its operations.
The Pfundzoll was, however, also a source of friction between the Order and the towns. The Order was, in the early fifteenth century, increasingly interested in using the Pfundzoll as a means of increasing its revenue, and the Order’s attempts to increase the rate of the Pfundzoll were a particular source of tension between the Order and the Prussian towns. The Pfundzoll was, one of the principal grievances that led to the formation of the Prussian Confederation in 1440 and to the outbreak of the Thirteen Years’ War in 1454.
The Kornkäppel and Other Trade Restrictions
The Order’s trade policy was, directed at securing the commercial position of Danzig as the principal port of the Prussian state. The Order’s principal instrument in this policy was the Kornkäppel — a prohibition on the export of grain through ports other than Danzig. The Kornkäppel was, in effect, a measure to protect the commercial position of Danzig against the competition of the smaller ports of the state, and it was, in most cases, effective. The Kornkäppel was, however, also a source of friction between the Order and the smaller ports, and it was one of the principal grievances that the smaller ports brought against the Order in the fifteenth century.
The Order’s other trade restrictions included the Bierzoll, a duty on the export of beer; the Wollzoll, a duty on the export of wool; the Holzzoll, a duty on the export of timber; and a series of restrictions on the import of foreign goods. The restrictions were, in most cases, designed to protect the commercial position of the Order’s subjects against the competition of foreign merchants, and they were, in most cases, effective. The restrictions were, however, also a source of friction between the Order and its subjects, and they were one of the principal grievances that led to the formation of the Prussian Confederation.
The Mints
The Order was, responsible for the minting of coin in the Prussian state. The Order’s mints were located at Danzig, Thorn, Elbing, Königsberg, Marienburg and other principal towns, and the Order was, in most cases, responsible for the production of the silver and copper coinage that circulated in the state. The Order’s coinage was, a substantial source of revenue, and the seigniorage — the difference between the face value of the coin and the cost of producing it — was, in most cases, substantial.
The Order’s coinage was, stable. The Order was, in the early years, responsible for a number of different denominations, including the Skot, the Pfennig, the Schilling, the Mark, the Groschen and the Gulden. The Order’s coinage was, in most cases, accepted in the principal commercial centres of the Baltic, and the Order’s coinage was, in most cases, a reliable medium of exchange.
The Long-Term Significance
The economy of the Teutonic state was, a remarkable achievement. The state was, by the standards of the time, prosperous, and the state was, in most cases, well-administered. The state was, an important example of a late-medieval commercial economy, integrated into the wider network of the Baltic and the North Sea.
The economy of the state did not, however, survive the political upheavals of the fifteenth century. The Thirteen Years’ War of 1454 to 1466 was, a disaster for the state’s economy. The war devastated the countryside, disrupted the trade routes, and led to the loss of the western portions of the state, including Danzig, Thorn and Elbing. The economy of the state was, after the war, substantially reduced, and the state never recovered its pre-war prosperity.
The legacy of the state’s economy is, however, a substantial one. The legal and commercial traditions of the state became, in due course, the basis for the commercial traditions of the duchy of Prussia and, eventually, of the Kingdom of Prussia. The towns of the state — particularly Danzig, Thorn and Elbing — continued to be major commercial centres well into the early modern period. The commercial and administrative institutions developed during the state’s period of prosperity became, an important part of the commercial infrastructure of the modern Baltic region.
Sources
- Biskup, Marian, and Gerard Labuda. Dzieje zakonu krzyżackiego w Prusach. Gdańsk: Wydawnictwo Morskie, 1986.
- Boockmann, Hartmut. Der Deutsche Orden: Zwölf Kapitel aus seiner Geschichte. Munich: Beck, 1981.
- Dollinger, Philippe. The German Hansa. Stanford: Stanford University Press, 1970.
- Töppen, Max, ed. Acten der Ständetage Preussens unter der Herrschaft des Deutschen Ordens. 5 vols. Leipzig: Duncker & Humblot, 1867–1886.
Related Reading
The grain trade and the principal commercial network of the state are examined in the article on the Hanseatic relations, and the distinctive amber trade is examined in the article on the amber trade. For the political context of the state’s economy, see the main article on the Teutonic state and the article on the establishment of the state. For the consequences of the state’s economic policies, see the article on the Thirteen Years’ War and the article on the Second Peace of Thorn.