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      Alexander's successor, Sigismund I. Yaghello (1506–1548), King of Poland and Grand Duke of Lithuania, favored a more liberal policy towards his Jewish subjects. Though a staunch Catholic, Sigismund was free from the spirit of anti-Jewish clericalism, and he endeavored to the best of his ability to live up to the principle proclaimed by him, that "equal justice should be meted out to the rich and mighty lords and to the meanest pauper." This lofty principle, so little compatible with the policy of class discrimination, could, however inadequately, be applied only there where the power of royalty was not handicapped by the mighty Shlakhta and the other estates. The only part of the Polish Empire where such a condition still existed in the time of Sigismund I. was Lithuania, the patrimony of the Yaghellos. There the royal, or rather the grand ducal, authority was more extensive and its form of manifestation more patriarchal than in the provinces of the Crown, or Poland proper. By intrusting a large part of the public tax contracts and land leases to the Jewish capitalists, the King could feel easy in his mind as to the integrity of his budget. The general contractor of the customs and other state revenues in Lithuania, Michael Yosefovich (son of Joseph), a Jew from Brest-Litovsk, exercised occasionally also the functions of grand ducal treasurer, being commissioned to pay out of the collected imposts the salaries of the local officials as well as the debts of his royal master.

      Prompted by the desire of rewarding the services of his financier and at the same time putting the communal affairs of his Jewish subjects in better order, Sigismund appointed Michael Yosefovich to serve as the elder, or, to use the official term, the "senior," of all Lithuanian Jews (1514). The "senior" was invested with far-reaching powers: he had the right of conferring directly with the king in all important Jewish affairs, dispensing justice to his coreligionists in accordance with their own laws, and collecting from them the taxes imposed by the state. He was to be assisted by a rabbi or "doctor," an expert in Jewish law. Whether the Lithuanian Jews acknowledged Michael Yosefovich as their supreme authority is open to doubt. The wealthy contractor, whom the will of the King had placed at the head of the Jews, could not in point of fact preside over their autonomous organization and their judiciary and rabbinate, since what was required was not officials, but men with special knowledge and training. All Michael could do was to act as the official go-between, representing the Jewish communities before the King and defending their rights and privileges as well as their commercial and fiscal interests. In any event Michael was more useful to his coreligionists than his brother Abraham Yosefovich, who, likewise a tax-farmer, sacrificed his Judaism for the sake of a successful career. King Alexander conferred upon Abraham the rank of Starosta of Smolensk, while Sigismund raised him to the exalted position of Chancellor of the Lithuanian Exchequer. Abraham and his offspring were soon lost in the ranks of the higher Polish nobility.

      In agricultural Lithuania with its patriarchal conditions of life the antagonism between the classes was in its infancy, and as a result the right of the Jews to freedom of transit and occupation was but rarely contested. They lived in the towns and villages, and were not yet so sharply marked off, in language and mode of life, from the Christian population as they became afterwards. The Jewish communities of Brest, Grodno, Pinsk, and Troki, the last consisting principally of Karaites, who had a municipality of their own, were important Jewish centers in the Duchy, and enjoyed considerable autonomy. The rabbi of Brest, Mendel Frank, received from the King extensive administrative and judicial powers, including the right of imposing the herem and other penalties upon the recalcitrant members of the community (1531).

      In the large cities of Poland proper the position of the Jews was not nearly so favorable. Here commercial life had attained a higher stage of development than in Lithuania, and in many lines of business the Jews competed with the Christians. Taking advantage of the autonomy granted to the estates in the shape of the Magdeburg Law, the Christian business men and handicraftsmen, represented by their magistracies and trade-unions, were constantly endeavoring to restrict their rivals in their commercial pursuits. This was particularly the case in Posen, Cracow, and Lemberg, the leading centers respectively of the three provinces of Great Poland, Little Poland, and Red Russia (Galicia). In Posen the Jews were hampered by the burgomaster and the aldermen in carrying on their business or in displaying their goods in stores outside the Jewish quarter. When the Jews protested to the King, he warned the authorities of Posen not to subject their rivals to any hardships or to violate their privileges (1517). The Christian merchants retorted that the Jews occupied the best shops, not only in the center of the town, but also on the market-place, where formerly only "prominent Christian merchants, both native and foreign [German], had been doing business," and where, in view of the concentration of large masses of Christians, the presence of Jews might lead to "great temptations," and even to seduction from the path of the "true faith." The reference to religion, used as a cloak for commercial greed, did not fail to impress the devout Sigismund, and he forbade the Jews to keep stores on the market-place (1520). The professors of Christian love in Posen similarly forbade their Jewish fellow-citizens to buy foodstuffs and other articles in the market until the Christian residents had completed their purchases. A little later the King, in consequence of the influx of Jews into Posen, gave orders that no new Jewish settlers be admitted into the city, and that no houses owned by Christians be sold to them, without the permission of the Kahal elders. The Jews were to be restricted to definite quarters and to be denied the right of building their houses among those belonging to Christians (1523).

      The King was powerless, however, to shield the Jews against other unpleasant manifestations of the Polish class régime, such as the extortions of the officials. The highest dignitaries of the court no less than the local administration were ever ready to fish in the troubled waters of the conflict of classes. The second wife of Sigismund, Queen Bona Sforza, an avaricious Italian princess, sold the offices of the state to the highest bidder, while the courtiers and voyevodas were just as venal on their own behalf. The queen's favorite, Peter Kmita, Voyevoda of Cracow and Marshal of the Crown, managed to accept bribes simultaneously from the Jewish and the Christian merchants, who lodged complaints against each other, by promising both sides to defend their interests before the Diet or the King.

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