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Vasilief, A History of the Byzantine Empire

Byzantium and the Crusades

Ιnternal affairs under the Comneni and Angeli 

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In the commercial situation of the Empire under the Comneni and Angeli an exceedingly important change took place as a result of the crusades: the West and East began to engage in direct commercial relations with each other and Byzantium lost the role of intermediate commercial agent between them. It was a severe blow to the international economic power of the Eastern Empire. Then in the capital itself, as in some other places, Venice had already gained a strong footing at the beginning of the reign of Alexius Comnenus. Under the same emperor the Pisans obtained very important commercial privileges at Constantinople; they received there a landing place (scala) and a special quarter with stores for their merchandise and private houses; reserved seats were guaranteed to the Pisans at St. Sophia during divine service and in the Hippodrome for public spectacles. Towards the end of the reign of John Comnenus the Genoese opened negotiations for the first time with Byzantium, and it is certain that the main cause of these negotiations related to commercial questions. Manuels policy was always closely connected with the commercial interests of Venice, Pisa, and Genoa, who, undermining the economic power of the Empire, were, in their turn, in a state of permanent commercial competition. In 1169 Genoa received exceptionally advantageous trade privileges all over the Empire, except in two places on the northern shores of the Black and Azov Sea.

After the terrible massacre of the Latins in 1182 their position became again more favorable under the Angeli; and finally in November 1198 a chrysobull was reluctantly granted by Alexius III Angelus to Venice, reciting and confirming the previous bull of Isaac Angelus regarding the defensive alliance with Venice, renewing the trading privileges and adding a number of new provisions. The boundaries of the Venetian quarter remained unchanged. According to one writer, some clauses of this treaty exerted very great influence upon the institution of consular jurisdiction in the Ottoman Empire.

Not only in the capital, but also in many provincial cities and islands of the Empire, the Venetians, Pisans, and Genoese took full advantage of their trading privileges and held quarters of their own. Thessalonica (Salonica) was, after Constantinople, the most important economic center of the Empire. There, as a source of the twelfth century testified, every year at the end of October, on the occasion of the feast of St. Demetrius, the patron of the city, a famous fair was held; and at that time Greeks and Slavs, Italians, Spaniards (Iberians) and Portuguese (Lusitanians), Celts from beyond the Alps (French), and men who came from the distant shores of the Atlantic, swarmed to Thessalonica and carried on their business transactions. Thebes, Corinth, and Patras in Greece were famous for their silks. Hadrianople and Philippopolis, in the Balkan peninsula, were also very important commercial centers. The islands of the Aegean also took part in the industry and commerce of that time.

As the fatal year 1204 approached, the commercial importance of Byzantium was thoroughly undermined by the commercial efficiency and initiative of the Italian republics, Venice, Genoa, and Pisa. Venice occupied the first place. The monarchy lost, as the Italian historian, Cognasso, said, its power and wealth in favor of the aristocracy, just as it is forced to lose its numerous other rights in favor of the commercial cosmopolitan class of the great cities of the Empire

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