this trade, many Venetians settled themselves in the city, and they soon extended it very considerably, and introduced the manufacture itself into Venice, with so much success, that the silks of Venice equalled those of Greece and Sicily.  The monopoly of the trade of the Black Sea was also obtained by them, after the capture of Constantinople; and thus some of the most valuable articles of India and China were obtained by them, either exclusively, or in greater abundance, and at a cheaper rate than they could be procured by any other route.  In consequence of all these advantages, Venice was almost the sole channel of commerce in this part of Europe, during the period of the Latin empire in Constantinople.  This empire, however, was of very short continuance, not lasting more than 57 years.

In the interval, the merchants of Florence became distinguished for their commercial transactions, and particularly by becoming dealers in money by exchange, and by borrowing and lending on interest.  In order to carry on this new branch of traffic, they had agents and correspondents in different cities of Europe; and thus the remittance of money by bills of exchange was chiefly conducted by them.  Other Italian states followed their example; and a new branch of commerce, and consequently a new source of wealth, was thus struck out.

In the year 1261, the Greek emperor regained Constantinople through the assistance of the Genoese; and the latter, as usual, were amply repaid for their services on this occasion.  Pera, the chief suburb of Constantinople, was allotted to them:  here they had their own laws, administered by their own magistrates; and they were exempted from the accustomed duties on goods imported and exported.  These privileges raised their commerce in this part of the world above that of the Venetians and Pisans; who, however, were still permitted to retain their factories.  The Genoese soon began to aim at more extensive power and trade; and under the pretext that the Venetians were going to attack their new settlement, they obtained permission to surround it, and their factories in the neighbouring coasts, with fortifications.  The trade of the Black Sea was under the dominion of the Greek emperor, who, by the possession of Constantinople, commanded its narrow entrance:  even the sultan of Egypt solicited liberty to send a vessel annually to purchase slaves in Circassia and Lesser Tartary.  The Genoese eagerly looked to participating in the valuable commerce of this sea; and this object they soon obtained.  In return they supplied the Greeks with fish and corn.  “The waters of the Don, the Oxus, the Caspian, and the Wolga, opened a rare and laborious passage for the gems and spices of India; and after three months march, the caravans of Carizme met the Italian vessels in the harbours of the Crimea.”  These various branches of trade were monopolized by the diligence and power of the Genoese; and their rivals of Venice and Pisa were forcibly expelled.  The Greek emperor, alarmed at their power and encroachments, was at length engaged in a maritime war with them; but though he was assisted by the Venetians, the Genoese were victorious.