In order to better understand the commerce of Germany we must go back a little in point of time to the middle ages, and glance at the civilization and commerce which had grown up in the north of Europe. In the time of Charlemagne (768-814) there were a number of important trading towns established, which grew into local centers of commerce. These began with Bruges in Flanders and one or two Rhine cities in the west, and were scattered through what is now Germany and Austria and along the coast of the Baltic Sea as far as Russia. Many of these towns later organized themselves into small republics, after the manner of the Italian cities, for self-protection against the territorial lords, who, under the Feudal system, ruled and plundered the country about them. Then in order to protect themselves from common enemies, such as the predatory inroads of barbarians and Turks, and the pirates which infested the seas - chiefly the Northmen who swarmed in the North and Baltic Seas - they formed themselves into one grand combine, called the Hanseatic League. They used the power thus acquired for gaining greater security for their commerce.

The commerce of Europe during the middle ages may be said to have been divided into two great dominions, viz., the commercial cities of Italy in the south of Europe and the Hansa towns in the North. The connecting links between these two commercial domains were the highways built chiefly by the Romans, and more especially the rivers Rhine, Danube, Elbe and other waterways. The centers of the Hanseatic League were Lubec on the Baltic Sea, and Hamburg and Bremen on the other side of the Cimbric peninsula. Later they were joined by Brunswick, Dantzig, Mun-ster, Magdeburg and the ancient city of Cologne. The nobles tried to obstruct the formation of this league, which was in a great measure designed to withstand their exactions, but without avail, and in 1300 there were eighty cities in the confederation, stretching from Belgium to the gulf of Finland. The towns were divided into four colleges or districts, of which Lubec, Cologne, Brunswick and Dantzig were the centers. The capital of the confederation was Lubec, and there, once in three years, meetings or congresses called "Diets" were held of delegates from all the various towns of the confederation. At these congresses the commercial interests of the various districts were discussed and ways and means provided to improve the general state of trade, chiefly by affording security to property. The highways had been infested with robbers, who plundered wagon trains of their cargoes as they proceeded through the country, or dragged innocent travelers into captivity and held them for ransom. These depredations were chiefly instigated by princes and nobles who inhabited strongly fortified castles upon almost inaccessible rocks, and lived in ease and profligacy by means of their piracy upon commerce, both land and sea. In order to resist this wholesale robbery the congress required each town to furnish its quota of men and money for the general defense and punishment of offenders both by land and sea, and in addition to this to maintain a militia of both cavalry and infantry proportionate to its size or population. These were armed with cross bows, battle axes, maces and lances. The martial spirit was kept up by reviews. In addition to the regular militia, the larger towns employed mercenary troops, the whole amounting to almost an army. Thus peace and security were secured largely through the administration of the congress at Lubec, and as a result, an astonishing success marked the history of Hansa commerce. Under direction of the congress agents were appointed in the different Hansa towns, with the special view of developing foreign commerce. Agencies were opened in new territory, and some of these afterward became permanent settlements, as London, England, and Novgorod, Russia. In order to improve the money systems prevailing, mints were established in several of the important towns, and although no uniform system of coinage was in use the coins of several towns were current throughout a large extent of territory.

The proceedings of the Hansa congress are interesting on account of it being the first purely representative body ever convened for commercial purposes, and are especially valuable as indicating the beginning of the idea of co-operation among peoples having diverse interests. There can be no doubt but these deliberations were highly beneficial in promoting civilization as well as commerce, for we find from about the middle of the fourteenth century evidence of a general improvement and a rapid increase in wealth. By this union, piracy was driven almost wholly from the North and Baltic Seas and compelled to seek its prey on the shores of France or Britain; the vehicle and caravan trade by land was protected, and a general spirit of order began to prevail throughout central Europe, affording security to property and promoting intercourse among the people, thus beginning the dawn of that intellectual and commercial awakening which was to follow the night of the dark ages of lawlessness and ignorance. The result was seen in the improvement in agriculture and manufacture all over central Europe, and even in adjoining countries. Fields were cultivated where forests stood before. Towns and villages sprang up where huts were located. People began to discard the use of the skins of bears and wolves for clothing, and to substitute woolen, cotton and silk cloth. The League exerted its power and influence to protect shipwrecked sailors from murder, a barbarity which had been all too common before. It passed navigation laws, and improved the art of shipbuilding. Its good work continued until the Thirty-years' war (1619-1648) prostrated the commerce and industries of Germany, and then its functions gradually ceased, after having rendered inestimable service to the cause of commerce in mediaeval and modern Europe.