Recovery and New Patterns of Credit, 1300–1304

Abstract

This chapter describes how the withdrawal and re-minting of the imitation sterlings renewed confidence in the coinage and doubled the credit in the certificates for 1300–1304. However, London and eight counties, including five neighbouring the city did not share in this growth, probably because the Italians there were reducing their wool exports. Most likely this happened because of the debasement of continental currencies, and the fall of sterling against the florin, which affected the exchange rates that were crucial to their businesses. In return for their paying a new import tax, Edward issued his Carta Mercatoria in 1303 which granted the aliens new trading privileges in the city. These encouraged them to increase their imports and attracted more provincial merchants to buy them from them there by selling more wool to them in return. The chapter discusses how other leading counties benefited from these new circumstances.