Hence he was subjected to regulations, limitations and charges for permission to carry on his operations. The next stage is reached when reciprocal free trade is recognised as an advantage and mutual concessions are made, restrictions and duties becoming, so to speak, implements of war, often enough proving two-edged. [Sidenote: Henry's commercial policy] Henry VII. was not an economist far in advance of the theories of his age; but economic considerations, as they were then understood, carried much more weight, and generally played a much larger part in his policy than was customary with the king-craft of the times, or with state-craft outside the commercial republic of Venice, the commercial association of German Free cities known as the Hansa or Hanseatic League, and the Netherlands. Accordingly we find him using every available means to obtain a footing in fresh foreign markets for the main English products of his day--wool and woollen goods; to secure for English merchants the rights and privileges which would enable them to compete on equal terms with the foreigner, and to curtail those privileges of the foreigner in England. In the matter of wool, the primacy of the English article was so thoroughly established that little extraneous aid was required. But with manufactured woollen goods the case was different, since the Flemings held the lead; and shipping also demanded artificial encouragement--first, because it was necessary to enterprise in the development of the export trade, at present largely carried on in foreign bottoms; second, because the King was, at least to some extent, alive to the strategic uses of a fleet which could be requisitioned for war purposes. [Sidenote: The Netherlands trade] The great mart for English wool was the Netherlands, whose manufacturing business required the raw product: the Netherlanders were more dependent on England than the English were on them. Hence this trade was used by Henry throughout his reign as a political lever--a means to political ends rather than an end in itself. If his own subjects suffered from a customs war, Philip's suffered more. So long as Burgundy made trouble on behalf of Perkin Warbeck the battle went on. In 1496 Philip gave up the contest, and the _Intercursus Magnus_ followed. Soon after the beginning of the new century the fight was renewed, to be terminated by what the Flemings called the _Intercursus Malus_, an arrangement so one-sided and pressing so hard on them that its terms were practically impossible of fulfilment; and Henry assented to their modification before his death, partly with a view to overcoming the reluctance of Margaret of Savoy to accept his matrimonial overtures. [Sidenote: The Hansa]