"which" is a relative pronoun referring to "inclosure". The second-hand sailors' clothes were fluttering against the palings of the inclosure. The (logical) subject of "seemed" is "second-hand sailors' clothes".
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The (logical) subject of "seemed" is "second-hand sail
park sang joonThen I was wondering why there is the comma before "that seemed."It is the first of a pair setting off the non-defining relative clause "that seemed to have overflowed the shop".