Some comprehension of the mercantile condition of Europe in general during the Middle Ages is necessary in order to understand the early importance and wealth of the Flemish cities.  Southern Europe, and in particular Italy, was then still the seat of all higher civilization, more especially of the trade in manufactured articles and objects of luxury.  Florence, Venice and Genoa ranked as the polished and learned cities of the world.  Further east, again, Constantinople still remained in the hands of the Greek emperors, or, during the Crusades, of their Latin rivals.  A brisk trade existed via the Mediterranean between Europe and India or the nearer East.  This double stream of traffic ran along two main routes—­one, by the Rhine, from Lombardy and Rome; the other, by sea, from Venice, Genoa, Florence, Constantinople, the Levant, and India.

On the other hand, France was still but a half civilized country, with few manufactures and little external trade; while England was an exporter of raw produce, chiefly wool, like Australia in our own time.  The Hanseatic merchants of Cologne held the trade of London; those of Wisby and Luebeck governed that of the Baltic; Bruges, as head of the Hansea, was in close connection with all of these, as well as with Hull, York, Novgorod, and Bergen.

The position of the Flemish towns in the fourteenth century was thus not wholly unlike that of New York, Philadelphia, and Boston at the present day; they stood as intermediaries between the older civilized countries, like Italy or the Greek empire, and the newer producers of raw material, like England, North Germany, and the Baltic towns.

In a lost corner of the great lowland flat of Flanders, defended from the sea by an artificial dike, and at the point of intersection of an intricate network of canals and waterways, there arose in the early Middle Ages a trading town, known in Flemish as Brugge, in French as Bruges (that is to say, The Bridge), from a primitive structure that here crossed the river.  A number of bridges now span the sluggish streams.  All of them open in the middle to admit the passage of shipping.

Bruges stood originally on a little river, Reye, once navigable, now swallowed by canals; and the Reye flowed into the Zwin, long silted up, but then the safest harbor in the Low Countries.  At first the capital of a petty Count, this land-locked internal harbor grew in time to be the Venice of the North, and to gather round its quays or at its haven of Damme, the ships and merchandise of all neighboring peoples.  Already in 1200 it ranked as the central mart of the Hanseatic League.

It was the port of entry for English wool and Russian furs:  the port of departure for Flemish broadcloths, laces, tapestries, and linens.  Canals soon connected it with Ghent, Dunkirk, Sluys, Furnes and Ypres.  Its nucleus lay in a little knot of buildings about the Grand Place and the Hotel de Ville, stretching out to the Cathedral and the Dyver; thence it spread on all sides till, in 1362, it filled the whole space within the existing ramparts, now largely abandoned or given over to fields and gardens.  It was the wealthiest town of Europe, outside Italy.