By her extensive trade and navigation Venice raised herself to a degree of prosperity and magnificence which recalls the memory of the most flourishing period of ancient Greece. She established a republican form of government, built gorgeous palaces (that of the Doge or Governor), magnificent churches (the Cathedral of St. Mark), and splendid squares (that of St. Mark), and made the city the wonder of the world. The Venetians supplied salt and fish to nearly the whole world, a trade in which they had a complete monopoly; and in every instance where a treaty was made with a foreign power a clause was introduced reserving to Venice the exclusive privilege of supplying these commodities. Besides its enormous trade, Venice engaged extensively in manufacturing, and exported its wares to all parts of Europe and Asia. Silk was one of the most valuable products of its artisans, the art of weaving this into beautiful tissues having been learned from the Persians. Another product was glass, which they made from the sand of their own islands in such a high degree of skill that Venetian glass became celebrated everywhere for its clearness and beauty. This art the Venetians had learned from the Arabs, and, with the decorative art and skill which they possessed, were able to produce glass work of rare beauty. They also made woolen and cotton cloths from the raw products which they imported from Spain, Greece and Egypt, and carried on extensive manufactures in brass and iron, so that their shields and armors were the most beautiful and excellent in Europe. The Venetians kept constantly developing their shipping facilities. They made extensive improvements in the methods of marine and naval construction, established arsenals and eventually acquired naval supremacy.

But this energetic and progressive people seemed possessed of a natural faculty for finance and commerce. They were natural born traders and financiers. A great feature of the wealth of the city was its banking facilities. The bank of Venice, established in 1171, was the first regularly organized bank in the world, although it did not develop all of the functions of a modern bank until long after. The republic, being hard pressed for money, on three different occasions was obliged to levy forced contributions upon the citizens, and in return gave them perpetual annuities at certain rates per annum on the amount loaned. The offices for the payment of these annuities were consolidated and became the Bank of Venice. The annuities or interest on the government loans being punctually paid, the amount of the loan as registered upon the books of the bank came to be considered as a species of property and passed from one person to another by devise, descent and assignment. Debts were frequently paid in this manner, and by allowing the mutual cancellation of debts by the transfer of credits on the books of the bank, the use of money was at first saved to a considerable extent, and later certificates, payable to bearer, the equivalent of bank bills, were used to obviate the necessity for entries upon the books.

The "Rialto" was their great commercial exchange where the merchants met and did their trading. The transactions of this exchange had a wider influence on the commerce of the world at that time than any other market. The Venetians were the first to reduce finance to a science. They were the originators of the system of double entry book-keeping, which we use with modifications to this day. They are credited by some authorities with having a knowledge of printing prior to Coster and Gutenberg (A.D.1440), having (as has been asserted) received it from the Chinese, by whom the art had been practiced for two thousand years. We know that Venice took the lead of all Europe in the manufacture of books and that newspapers were first issued by them, thus indicating that Italy stood in the van of progress and enlightenment at the close of the fifteenth century.