Hansa Silver Export In the First Half of the 16th Century and It’s Role in the Fate of the Novgorod German Yard

Silver coming through the Hanseatic trade routes to Livonia and further to Russia, was a constructively significant element of the Russian-Hanseatic system of exchange of goods. As a merchandise — “currency”, it replenished the volume of Hanseatic goods entering the Russian market, insufficient for trading on the barter basis, and provided loans and advance payments for trade transactions in the context of the development of trade cooperation. The restoration of the Hanseatic office in Novgorod (German yard) in 1514 was used by Revel in order to establish its own control over the supply of silver to Novgorod and for the transformation of the German yard into a kind of depository or “money place” (Geldstelle), the existence of which was provided for by the order of Hanseatic trade if credit transactions have taken place. This German yard function explains Hanseatic perseverance in the preservation of their Novgorod office.Revel's strategy was aimed to gain leadership in Russian trade and therefore assumed the suspension of Danzig, closely tied with the Fuggers, from the supply of silver to Russia, blocking the Riga- Dorpat-Pskov channel, as well as the management of the company for the unification of its purity standards and the establishment of standard labeling, which facilitated the use of silver as a merchandise — “currency”. Since the beginning of the 1520s, silver inflow to Novgorod has significantly decreased due to the monetary reform carried out by the Livonian Landsgerrs and the introduction of the restrictions (since 1537 — prohibition) on the export of silver from Livonia.The consequence was the destruction of the traditional order of trade between Novgorod and Hansa through mediation by the Livonian cities, led by Revel who controlled the German yard, and creation of a new system based on Lubeck.