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Article:1.4.4

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= Jewish Trade in Poland Until 1795 =

'''Adam Teller'''

The fundamental shape of Jewish life in general in Poland, and Jewish mercantile life in particular, was first determined in a privilege to the Jews of Kalisz by Prince Bolesław the Pious in 1264. This privilege was later expanded and granted to the Jews in Greater Poland in 1334 and in the regions of [[Community:Kraków|Kraków]], Sandomierz, and [[Community:Lviv|Lviv]] in 1367 by King Casimir the Great. He also granted a third general privilege to the Jews living in all the cities of his kingdom in 1364.

The Jews’ economic activity mentioned in these privileges was moneylending, their major business in the Middle Ages. The privileges’ importance for the development of Jewish trade lay chiefly in their establishment of the Jews as a legally recognized urban group, parallel to the Christian burghers. According to the so-called [https://magdeburg-law.com/magdeburg-law/|Magdeburg Law], which determined every aspect of urban life, the region of the town within its walls was a monopoly zone controlled by the Christian burghers, who therefore had the right to exclude the Jews from economic life. The Polish privileges, on the other hand, established the Jews as a second urban population providing income to the Crown, thus endowing them with royal support in their economic lives.

These formal arrangements set up a tension between the two already hostile groups, which was almost impossible to resolve satisfactorily. It could play out in different ways: in [[Community:Lviv|Lviv]] in 1356, the King, disregarding the complaints of the Christian burghers, expanded the urban groups he favored to include not only Jews, but Armenians, Muslims, and Ruthenians, too; while at the end of the 15th century, the Kraków town council, with royal support, first restricted Jewish trade and then forced the Jews to move out of the city and settle in neighboring Kazimierz. <ref>Hanna Zaremska, ''Żydzi w średniowiecznej Polsce: Gmina Krakowa'' (Warsaw: Instytut Historii Nauki PAN, 2011), 143-171, 493-505.</ref>

As the number of Jews in the Polish towns continued to grow rapidly, a result first of immigration, and then, in the 16th century, of natural increase, their struggle to break into the urban monopoly became more intense. Growing inflation made moneylending less profitable, which led to a significant move from the credit market to mercantile activity. In some towns, it proved possible for the Jews to negotiate trade pacts with the town council, though these were often not very advantageous.

Instead, other strategies were developed. The idea was to find places where Jewish merchants could trade unfettered by the urban restrictions. Perhaps the best venue for this was the [[Extension:Ex-1.4.4-1|annual fair]] that each town held, because for the few days of its duration, the town monopoly was lifted to encourage business. Within a short time, many Jews moved into regional trade. The most important of the annual fairs was the Candlemass (Gromnica) Fair held in Lublin each February. In Greater Poland, the major fairs were those in Łęczyca, Poznań, and Gniezno, in [[Term:Lesser Poland|Lesser Poland]] and [[Term:Red Ruthenia|Red Ruthenia]] those in [[Community:Lviv|Lviv]], [[Community:Kraków|Kraków]], and [[Community:Jarosław|Jarosław]]. However, much of the Jews’ regional trade was carried out in the less important fairs which were within easier reach [[Image:1.4.4-Trade-2|1.4.4-Trade-2]]. Jews from [[Community:Lviv|Lviv]], for example, traded in the typically local fairs of Sniatyn, [[Community:Kolomyia|Kolomyia]], Przemyśl, Ternopil, Belz, Rohatyn, Buchach, Terebovlia, Yazlovets, Zolochiv, Khodoriv, Busk, and Pidhaitsi, among others. <ref>Majer Bałaban, ''Żydzi lwowscy na przełomie XVIgo i XVIIgo wieku'' (Lwów: Nakładem funduszu konkursowego im. H. Wawelberga, 1906), 395-402.</ref>

A different strategy, adopted by less well-off Jews, was to move trade outside the city walls where the urban monopoly was not in force. Jews would wait on the roads leading into town and make deals with those bringing goods to sell there. This gave them a double advantage because, as well as buying what the seller had to offer, they could also broker deals to supply the seller with the goods he had intended to buy in town. Unrestricted by the town council, the Jewish merchants and brokers could offer the seller higher prices than he would receive in town for the goods he wanted to sell as well as lower prices for his purchases. Though this reduced the Jewish merchants’ profit margins, it dramatically increased turnover, which enabled them not just to survive but often to make a good living.

The Jews’ best customers in this enterprise were noble landowners coming to town with grain to sell and a shopping list of luxury items. In addition to the profit motive, however, the ''szlachta'' (the Polish nobility) preferred the Jews over the Christian burghers because they were interested in weakening the townspeople as potential rivals for positions of power and influence in the state.

As far as the Jews were concerned, the economic relationship they built with the nobility was extremely important because it significantly bolstered their position vis-à-vis the burghers. For a start, all the high administrative positions in the royal towns were filled by nobility, who could offer the Jews support if they needed it. More significantly, however, on their own estates, the noble owners were the sole source of authority, making estates much more comfortable places for Jews to live.

Thus, beginning in the late 16th century and continuing through the end of the 18th, there was a constant wave of Jews moving out of royal towns into the so-called “private towns” (i.e. towns owned by noblemen rather than the king) on the noble estates. Since the bulk of these estates were in the eastern parts of the country, the center of Jewish settlement began to move east, too.<ref>Gershon D. Hundert, “The Role of the Jews in Commerce in Early Modern Poland-Lithuania,” ''Journal of European Economic History'' 16/2 (1987), 245–275.</ref>

Jewish trade flourished, with Jewish merchants increasingly selling agricultural produce on behalf of the nobility, either directly in the form of grain or flour, or indirectly in the form of alcohol (beer and vodka). This, however, was by no means the full scope of their trade. Jews bought and sold many different kinds of merchandise, including honey, timber, fur, leather, textiles, fish, and even cattle and horses [[Image:1.4.4-Trade-3|1.4.4-Trade-3]]. Here, too, the relationship with the ''szlachta'' brought benefits. Since the Jews' noble lords were exempt from taxes, if a Jewish merchant was formally acting on behalf of a ''szlachcic'', all the goods in his possession, including his own, were exempt from taxes, too.

A key aspect of Jewish trade was the Jews’ ability to supply goods from outside the Commonwealth, particularly to their noble customers. The 16th and early 17th century was the period when Poland-Lithuania was the major supplier of grain to central and western Europe via the Baltic Sea. Jews were largely excluded from this highly profitable business, but by acting as agents for the ''szlachta'' who sold their grain in Gdańsk, they were able to conduct their own trade there, buying salt, salt herring, iron, and textiles for resale on Polish markets. The peripatetic nature of Polish Jewish trade, with merchants traveling from fair to fair, helped significantly with the distribution of these imported goods.

In addition to the above, Polish-Lithuanian Jews, though never the most prominent figures in foreign trade, maintained a transregional mercantile network of their own. So, for example, the Jews in the two major towns in western Poland in the 16th and early 17th centuries, Poznań and [[Community:Kraków|Kraków]], not only did business with the Christian merchants of Breslau, but also exploited family and other connections in order to trade with the Jewish communities of Vienna and Prague, as well as with Frankfurt a.M., Nuremberg, and Leipzig. There was also lively trade with the Ashkenazi Jewish communities of northern Italy, particularly Venice. The major exports to these, as to all the foreign markets, were hides and leather, furs, homespun, honey, and wax; the imports, fine textiles, wine, and metal goods.<ref>Ignacy Schiper, ''Dzieje handlu Żydowskiego na ziemiach polskich'' (Warsaw: Centrala Związku Kupców, 1937), 71-93.</ref>

A specific feature, typical exclusively of the Jews of future Galicia in the Middle Ages, was their involvement in the pepper trade with the East via the Genoese Caffa on the Crimean Peninsula and their involvement in the salt trade from the Wieliczka salt mines and from numerous salt refineries in Sub-Carpathian [[Term:Red Ruthenia|Red Ruthenia]].

On the Commonwealth’s eastern border, the Jews of [[Community:Lviv|Lviv]] traded both with the flourishing Jewish communities of the Ottoman Empire, in particular Istanbul, as well as Bucharest in Walachia and Iasi in Moldavia. Imports included luxury textiles, fine wines, metal goods (including firearms), and spices. This was also the route by which Polish-Lithuanian Jews received the ''etrogim'' they needed to celebrate the Sukkot festival. A community of Sephardic merchants from the Ottoman empire was established in Zamość in 1588 by its owner, the noble Jan Zamoyski.

The Khmelnytskyi uprising (1648-1654), and the subsequent Polish wars with Russia (1654-1667) and Sweden (1665-1660), caused enormous damage to the Polish-Lithuanian economy, hitting the Jews very hard indeed. Reconstruction took decades and was interrupted by the Great Northern War (1702-1720).

Nonetheless, since the process of rebuilding the country and its economy fell largely to the highest nobility, the fabulously wealthy magnates who owned huge estates, the Jews were able to benefit from it. Remembering the economic services they had received from the Jews before the wars, the magnates decided to renew the connection, inviting Jews to settle on their estates and giving them economic incentives to do so. Their goal was to exploit the Jews’ proven mercantile skills to improve their income from their lands. Central to this was the Jews’ role in the sale of the grain produced on the estate farms. This was achieved largely through the [[Article:1.4.3|sale of alcohol]], either in estate taverns leased and run by Jews, or through licenses to sell liquor in the towns.

Also key to the magnate plan for economic reconstruction was bringing the Jews into their towns to revivify trade. As a result, the great royal towns that had dominated Jewish life before 1648, such as [[Community:Kraków|Kraków]], [[Community:Lviv|Lviv]], and Poznań began to decline in favor of private towns, such as Leszno in Greater Poland and Pinczów, [[Community:Tarnów|Tarnów]], and Rzeszów in [[Term:Lesser Poland|Lesser Poland]]. In [[Term:Red Ruthenia|Red Ruthenia]], [[Community:Lviv|Lviv]] lost ground first to [[Community:Zhovkva|Zhovkva]], a private town belonging to the Sobieski family, and then to nearby [[Community:Brody|Brody]]. This last had a meteoric rise, helped by a loan of 1,000,000 zloties, which its owner, Józef Potocki, extended to the Jewish community to encourage its growth following a disastrous fire in 1742.

It did not take long before Jews formed a third, a half, or even more of the urban population on the magnate estates, particularly in the small agricultural towns in the Commonwealth’s eastern regions. With the support of the magnates, the Jews were able finally to overcome existing mercantile restrictions and soon came to dominate the urban markets. By the mid-18th century, foreign visitors were reporting that the only people engaging in trade were Jews [[Image:1.4.4-Trade-4|1.4.4-Trade-4]].<ref>Adam Teller, “Jews in the Polish-Lithuanian Economy, 1453-1795,” in J. Karp, A. Sutcliffe (eds.), ''The Cambridge History of Early Modern Judaism. Volume Seven: The Early Modern World, 1500-1815'' (Cambridge: Cambridge University Press, 2017), 576-606.</ref>

This had significant implications for Jewish life. First, the Jews were no longer limited to separate quarters in the towns. By the end of the 17th century, it was commonplace for Jewish merchants to own most, if not all the houses in the central market square. The rhythm of life in these small towns (''shtetlach'') became increasingly Jewish: no business was conducted on Shabbat or Jewish holidays – and if the local market was traditionally held on one of those days, it was rescheduled.<ref>Moshe (Murray) Rosman, ''The Lords’ Jews: Magnate-Jewish Relations in the Polish-Lithuanian Commonwealth during the 18th Century'' (Cambridge: Harvard University Press, 1990); Gershon D. Hundert, ''The Jews in a Polish Private Town: The Case of Opatów in the Eighteenth Century'' (Baltimore: Johns Hopkins University Press, 1992); Adam Teller, ''Money, Power, and Influence in Eighteenth Century Lithuania: The Jews on the Radziwiłł Estates'' (Stanford: Stanford University Press, 2016).</ref>

The Jewish demographic explosion that had begun in the 16th century continued, leading to a population growth that outstripped the growth in economic opportunities. With more and more Jews competing for the same market, economic competition became increasingly cutthroat and growing pauperization ensued.

As a result, Jewish women’s contribution to mercantile activity grew in importance. The active participation of Jewish women in trade had been a feature of Jewish life in Polish-Lithuania since the 16th century. When the Jewish men started to travel to regional markets, their wives remained behind to run the family stores, while poor Jewish women began to engage in petty trade on the streets. As Jewish control of mercantile activity grew in the 18th century, women became even more active. Amongst the better off, Jewish women became highly prominent in the textile trade while increasingly large numbers of poor Jewish women were forced to support the family budget by peddling – even despite strict religious and social prohibitions.<ref>Moshe Rosman, “Lihiyot ’isha yehudiyah be-Polin-Lita be-reishit ha-‘et ha-ḥadashah,” in The Broken Chain. Polish Jewry through the Ages, eds. Israel Bartal and Israel Gutman. Jerusalem: Zalman Shazar Center, 1997, 415-434.</ref>

Jewish merchants remained active in international trade. They continued their business activities in the Baltic ports, such as Gdańsk and Königsberg, by renting space on the noble barges plying the rivers with grain from their estates. To the south, a new market opened up in Hungary, where Jews from towns such as [[Community:Lviv|Lviv]] and Bolekhiv in the east and [[Community:Kraków|Kraków]] and Nowy Sącz in the west, traveled to [[Extension:Ex-1.4.3-1|buy wine]].

Trade with central and western Europe flourished, encouraged by the growth of new Jewish communities there, as well as by the ascension to the Polish throne of the Saxonian Wettin dynasty (1697-1763). The rapid growth of Warsaw as a Jewish mercantile center in the later 18th century also opened up a new and highly significant trade route connecting the Jews there to Jewish merchants in Frankfurt am Oder, Berlin, and Amsterdam.<ref>Cornelia Aust, ''The Jewish Economic Elite: Making Modern Europe'', Bloomington: Indiana University Press 2018.</ref>

By this time, however, the magnate regime in Poland-Lithuania, which had focused on noble consumption at the expense of economic development, had so weakened the country that reform was desperately needed. Under the rule of King Stanisław August Poniatowski (1763-1795), various ideas were developed, many of which involved strengthening the towns at the expense of the nobility – a development which would have deprived the Jews of their greatest defenders and so threatened their economic life. However, so entrenched were the magnates that the plans for reform came to nothing. Perhaps the best sign of the Jews’ continued importance in trade is that, between 1764-1800, Jews made up over 85% of all the Polish-Lithuanian merchants who did business at the major international fair in Leipzig.<ref>Gershon D. Hundert, ''Jews in Poland-Lithuania in the Eighteenth Century: A Genealogy of Modernity'', Berkeley-Los Angeles: University of California Press 2004, 32-56.</ref>

In the less developed regions, such as Galicia, however, the Jews' dominance in trade continued to be measured by the fact that all the merchants and tradesmen in the towns were Jewish and that Jews owned most, if not all the houses around the central market squares. [[Image:1.4.4-Trade-1|1.4.4-Trade-1]]

'''Select Bibliography'''

Aust, Cornelia. ''The Jewish Economic Elite: Making Modern Europe''. Bloomington: Indiana University Press, 2018.

Bałaban, Majer.'' Historja Żydów w Krakowie i na Kazimierzu, 1304-1868'', vol. 1. Kraków: Nadzieja, 1931.

Bałaban, Majer. ''Żydzi lwowscy na przełomie XVIgo i XVIIgo wieku'', Lwów: Nakładem funduszu konkursowego im. H. Wawelberga 1906

Hundert, Gershon D. ''Jews in Poland-Lithuania in the Eighteenth Century: A Genealogy of Modernity''. Berkeley-Los Angeles: University of California Press, 2004

Hundert, Gershon D. “The Role of the Jews in Commerce in Early Modern Poland-Lithuania.” ''Journal of European Economic History'' 16/2 (1987): 245–75.

Kalik, Judith. "Szlachta Attitudes Towards Jewish Commerce During the 17th and 18th centuries – Utility Versus Ideology." Gal-Ed 13 (1993), 43-57 [in Hebrew]

Kazusek, Szymon. ''Żydzi w handlu Krakowa w połowie XVII wieku''. Kraków: Societas Vistulana, 2005

Rosman, Moshe (Murray). ''The Lords’ Jews: Magnate-Jewish Relations in the Polish-Lithuanian Commonwealth during the 18th Century''. Cambridge: Harvard University Press, 1990

Schiper, Ignacy. ''Dzieje handlu Żydowskiego na ziemiach polskich''. Warsaw: Centrala Związku Kupców, 1937

Teller, Adam. “Jews in the Polish-Lithuanian Economy, 1453-1795.” In J. Karp, A. Sutcliffe (eds.), ''The Cambridge History of Early Modern Judaism. Volume Seven: The Early Modern World, 1500-1815''. Cambridge: Cambridge University Press, 2017, 576-606.

Teller, Adam. ''Money, Power, and Influence in Eighteenth Century Lithuania: The Jews on the Radziwiłł Estates''. Stanford: Stanford University Press, 2016

Zaremska, Hanna. ''Żydzi w średniowiecznej Polsce: Gmina Krakowa''. Warsaw: Instytut Historii Nauki PAN, 2011

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