section_path: History/Late Middle Ages/Early capitalism
section_name: Early capitalism
paragraph_text: Early capitalism
  
  While particularism prevented the centralization of the Empire, it gave rise to early developments of capitalism. In Italian and Hanseatic cities like Genoa and Pisa, Hamburg and Lübeck, warrior-merchants appeared and pioneered raiding-and-trading maritime empires. These practices declined before 1500, but they managed to spread to the maritime periphery in Portugal, Spain, the Netherlands and England, where they "provoked emulation in grander, oceanic scale". William Thompson agrees with M.N. Pearson that this distinctively European phenomenon happened because in the Italian and Hanseatic cities which lacked resources and were "small in size and population", the rulers (whose social status was not much higher than the merchants) had to pay attention to trade. Thus the warrior-merchants gained the state's coercive powers, which they could not gain in Mughal or other Asian realms – whose rulers had few incentives to help the merchant class, as they controlled considerable resources and their revenue was land-bound.
  
  In the 1450s, the economic development in Southern Germany gave rise to banking empires, cartels and monopolies in cities such as Ulm, Regensburg, and Augsburg. Augsburg in particular, associated with the reputation of the Fugger, Welser and Baumgartner families, is considered the capital city of early capitalism. Augsburg benefitted majorly from the establishment and expansion of the Kaiserliche Reichspost in the late 15th and early 16th century. Even when the Habsburg empire began to extend to other parts of Europe, Maximilian's loyalty to Augsburg, where he conducted a lot of his endeavours, meant that the imperial city became "the dominant centre of early capitalism" of the 16th century, and "the location of the most important post office within the Holy Roman Empire". From Maximilian's time, as the "terminuses of the first transcontinental post lines" began to shift from Innsbruck to Venice and from Brussels to Antwerp, in these cities, the communication system and the news market started to converge. As the Fuggers as well as other trading companies based their most important branches in these cities, these traders gained access to these systems as well. The 1557, 1575 and 1607 bankruptcies of the Spanish branch of the Habsburgs though damaged the Fuggers substantially. Moreover, "Discovery of water routes to India and the New World shifted the focus of European economic development from the Mediterranean to the Atlantic – emphasis shifted from Venice and Genoa to Lisbon and Antwerp. EventuallyAmerican mineral developments reduced the importance of Hungarian and Tyrolean mineral wealth. The nexus of the European continent remained landlocked until the time of expedient land conveyances in the form of primarily rail and canal systems, which were limited in growth potential; in the new continent, on the other hand, there were ports in abundance to release the plentiful goods obtained from those new lands." The economic pinnacles achieved in Germany in the period between 1450 and 1550 would not be seen again until the end of the 19th century.
  
  In the Netherlands part of the empire, financial centres evolved together with markets of commodities. Topographical development in the 15th century made Antwerp a port city. Boosted by the privileges it received as a loyal city after the Flemish revolts against Maximilian, it became the leading seaport city in Northern Europe and served as "the conduit for a remarkable 40% of world trade". Conflicts with the Habsburg-Spanish government in 1576 and 1585 though made merchants relocate to Amsterdam, which eventually replaced it as the leading port city.