The Golden Age of the Dutch Republic 233

regents (wealthy merchants and bankers) of the provinces. Any possibility of

the Netherlands becoming an absolute state ended.

Expanding Economy

The Dutch economy developed more rapidly during the first two-thirds of
the seventeenth century than did the economies of its competitors England
and France. The increased affluence brought by foreign trade helped the
Dutch carry on the war against Spain. In 1609 following the signing of a
truce w ith Spain the Amsterdam Public Bank opened its offices in the tow n
hall. The bank’s principal function was to facilitate Amsterdam’s burgeoning
foreign trade by encouraging merchants to make payments in bills drawn on
the bank. Foreign merchants were attracted to Amsterdam particularly after
mid-century; w hen bills of exchange became acceptable as currency.
Amsterdam’s banking credit and warehousing facilities were soon
unmatched in Europe. Although an ordinance in 1581 had included bankers
among those occupations considered disreputable—along with actors jug­
glers and brothel keepers—and therefore excluded them from receiving
communion in the Dutch Reformed Church* bankers came to be respected
by the beginning of the seventeenth century. Good credit allowed the United
Provinces to raise loans by selling negotiable bonds at low interest rates.

The Amsterdam Bourse in the seventeenth century. Merchants had fixed places at

the Stock Exchange where they met to arrange various financial matters.