doubling the Cape, he sailed up the eastern coast of Africa, reached Mombasa, and then boldly crossed the Indian Ocean to Calicut, the Indian emporium for that rich trade which all the European nations were anxious to share. The possibilities of a world commerce led to the creation of trading companies; for a larger capital was needed than individual merchants possessed, and the formation of these companies overshadowed, discredited, and finally destroyed the gild system of the mediæval trading cities. Trade and industry became capitalised to a degree previously unknown. One great family of capitalists, the Welser, had factories in Rome, Milan, Genoa, and Lyons, and tapped the rich Eastern trade by their houses in Antwerp, Lisbon, and Madeira. They even tried, unsuccessfully, to establish a German colony on the new continent—in Venezuela. Another, the Fuggers of Augsburg, were interested in all kinds of trade, but especially in the mining industry. It is said that the mines of Thuringia, Carinthia, and the Tyrol within Germany, and those of Hungary and Spain outside it, were almost all in their hands. The capital of the family was estimated in 1546 at sixty-three millions of gulden. This increase of wealth does not seem to have been confined to a few favourites of fortune. It belonged to the mass of the members of the great trading companies. Von Bezold instances a “certain native of Augsburg” whose investment of 500 gulden in a merchant company brought him in seven years 24,500 gulden. Merchant princes confronted the princes of the State and those of the Church, and their presence and power dislocated the old social relations. The towns, the abodes of these rich merchants, acquired a new and powerful influence among the complex of national relations, until it is not too much to say, that if the political future of Germany was in the hands of the secular princes, its social condition came to be dominated by the burgher class. § 3. Increase in Wealth and luxurious Living.