By the 11th cent. in Europe, associations of merchants had begun to form for the protection of commerce against the feudal governments. Those merchant guilds became extremely powerful as trade in the Mediterranean and across Europe increased. Some of the Italian merchant guilds, such as those in Genoa and Florence, became dominant in local government. In England and in Germany the merchant guilds also exercised enormous power in the growing towns. Commerce was becoming less and less a local affair, and the guilds in some cases developed into intercity leagues for the promotion and protection of trade. The most striking example was the Hanseatic League of N Europe, which established and controlled some of its own trading cities. The merchant guilds had vast influence in the development of commerce during that period.
No less important were the craft guilds, the associations of artisans of a particular industry, e.g., the weavers guild. These grew with great rapidity as towns developed in the 12th cent. and tended to share power with the merchants or even, in some cases, to supplant them in power. Generally the members were divided into masters, apprentices, and journeymen. The masters were the owners of the shops and instructors of the apprentices. The apprentices were bound to the masters; they were accepted for a stipulated sum paid to the masters for training and were given a subsistence wage for a number of years; the amount paid and the length of time varied from one craft to another and one place to another. The apprentices were strictly under the control of the masters, but the conditions of control were set by guild regulation. The journeymen were men who had finished their training as apprentices but could not attain the status of masters, the number of masters being limited.
The guild reflected a predilection for ordering society. Each guild set the terms of its craft: the forms of labor, standard of product, and methods of sale. With the rise of nationalism in the West, those things were increasingly subject to royal and national law. The relationship of the feudal ruler to the guilds was ideally one of cooperation. Actually the wealthy guilds were able to gain some immunity from interference by noble or king either by paying them large sums of money or by intimidating them. Sometimes, as in the weaving towns of Flanders, the guilds led revolts against feudal authority (e.g., in Bruges and Ghent). The tendency in the industrial towns was for the guilds to assume dominance in municipal government, and traces of that control have persisted in the local governments of Western Europe. The guilds of London (see livery companies) had wide social obligations and prominence in the city government.
The strengthening of the power of nations in the 15th and 16th cent. tended to increase royal power, and the king in some instances was able to reduce the guilds to subservience. The improvement of communications, the expansion of trade, with the introduction of foreign-made goods, and finally the appearance of the capitalist and the entrepreneur hastened the end of the guild system. The guilds, with their rigorous controls and emphasis on stability and quality, were not equipped to cope with the expanding production of a more capitalistic age. They tended to guard their monopolies jealously and to oppose change.
As time went on, the guild system became increasingly rigid, and the trend toward hereditary membership grew very marked. Thus the development of new trade and industry fell to the capitalists, who adapted themselves to new demands in an age of exploration and expansion. By the 17th cent. the power of the guilds had withered in England, and their privileges were officially abolished in 1835. In France the guilds were abolished (1791) in the French Revolution. The German and Austrian guilds were abolished in the 19th cent. as were those in the Italian cities. In Eastern Europe guilds grew numerous in the great market cities, and the power of some long persisted, notably in Novgorod and Kraków.
The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2012, Columbia University Press. All rights reserved.