7.4: Economic Recovery Sparks Change

I. Agricultural Revolution Cause = Peasants Adopt New Farming Tech. made fields more productive Iron Plows more effective in N.Europe/New harnesses to use horses…could plow faster Fields got larger, more food produced = population began to grow Lords had peasants clear land/drain swamps to increase their income Three-field crop rotation = grain, legumes and a fallow field to restore fertility

II. Revival of Trade & Travel 1100’s = feudal warfare & foreign invasions decline People feel safer, begin to travel more Merchant companies are formed, regular trade routes established…Constantinople & Venice become centers of trade (receive goods from Asia) with Northern Europe & Britain 1200’s = German towns along Baltic Sea form the Hanseatic League

III. Growth of Towns & Cities Merchants waited out winter near town or castle Winter Months Attracted to these settlements Sell their wares to merchants Artisans First medieval cities 10, ,00peo ple Largest towns since Roman times Trade centers evolved into towns

IV. Commercial Revolution Trade revived Demand for capital increases = money is needed for investment Merchants begin to extend credit Capital Groups of merchants pooled their money Increased ability to acquire capital Reduced risk to individuals Partnerships Underwriter were paid a small fee to insure goods being shipped by merchants If goods were lost, underwriter paid the value of damages Insurance

V. Societal Changes Use of money undermines serfdom Most became tenant farmers…paid Lord in cash Demand for $ continues to increase Church forbade Christians to lend $ at interest…Jews barred from other professions became $ lenders…Success leads to resentment & anti- Semitism