That was when the Venetians made an important discovery. More money could be...

That was when the Venetians made an important discovery. More money could be made buying and selling salt than producing it. Beginning in 1281, the government paid merchants a subsidy on salt landed in Venice from other areas. As a result, shipping salt to Venice became so profitable that the same merchants could afford to ship other goods at prices that undersold their competitors. Growing fat on the salt subsidy, Venice merchants could afford to send ships to the eastern Mediterranean, where they picked up valuable cargoes of Indian spices and sold them in western Europe at low prices that their non-Venetian competitors could not afford to offer. This meant that the Venetian public was paying extremely high prices for salt, but they did not mind expensive salt if they could dominate the spice trade and be leaders in the grain trade. When grain harvests failed in Italy, the Venetian government would use its salt income to subsidize grain imports from other parts of the Mediterranean and thereby corner the Italian grain market.

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