Byreasonofherinsularposition，Englandnotonlyenjoyed
　　immunityfromterritorialwars，butshealsoderivedimmense
　　advantagesforhermanufacturingsupremacyfromtheContinental
　　wars。Landwarsanddevastationsofterritoryinflictmanifold
　　injuryuponthemanufacturesattheseatofhostilities；directly，
　　byinterferingwiththefarmer'sworkanddestroyingthecrops，
　　whichdeprivesthetillerofthesoilofthemeanswherewithalto
　　purchasemanufacturedgoods，andtoproducerawmaterialandfood
　　forthemanufacturer；indirectly，byoftendestroyingthe
　　manufactories，oratanyrateruiningthem，becausehostilities
　　interferewiththeimportationofrawmaterialandwiththe
　　exportationofgoods，andbecauseitbecomesadifficultmatterto
　　procurecapitalandlabourjustattheverytimewhenthemasters
　　havetobearextraordinaryimpostsandheavytaxation；andlastly
　　theinjuriouseffectscontinuetooperateevenafterthecessation
　　ofthewar，becausebothcapitalandindividualeffortareever
　　attractedtowardsagriculturalworkanddivertedfrommanufactures，
　　preciselyinthatproportioninwhichthewarmayhaveinjuredthe
　　farmersandtheircrops，andtherebyopenedupamoredirectly
　　profitablefieldfortheemploymentofcapitalandoflabourthan
　　themanufacturingindustrieswouldthenafford。WhileinGermany
　　thisconditionofthingsrecurredtwiceineveryhundredyears，and
　　causedGermanmanufacturestoretrograde，thoseofEnglandmade
　　uninterruptedprogress。Englishmanufacturers，asopposedtotheir
　　Continentalcompetitors，enjoyedadoubleandtrebleadvantage
　　wheneverEngland，byfittingoutfleetsandarmies，bysubsidies，
　　orbyboththesemeanscombined，proceededtotakeanactivepart
　　inforeignwars。
　　Wecannotagreewiththedefendersofunproductiveexpenditure，
　　namely，ofthatincurredbywarsandthemaintenanceoflarge
　　armies，norwiththosewhoinsistuponthepositivelybeneficial
　　characterofapublicdebt；butneitherdowebelievethatthe
　　dominantschoolareintherightwhentheycontendthatall
　　consumptionwhichisnotdirectlyreproductive——forinstance，
　　thatofwar——isabsolutelyinjuriouswithoutqualification。The
　　equipmentofarmies，wars，andthedebtscontractedforthese
　　purposes，may，astheexampleofEnglandteaches，undercertain
　　circumstances，verygreatlyconducetotheincreaseofthe
　　productivepowersofanation。Strictlyspeaking，materialwealth
　　mayhavebeenconsumedunproductively，butthisconsumptionmay，
　　nevertheless，stimulatemanufacturerstoextraordinaryexertions，
　　andleadtonewdiscoveriesandimprovements，especiallytoan
　　increaseofproductivepowers。Thisproductivepowerthenbecomes
　　apermanentacquisition；itwillincreasemoreandmore，whilethe
　　expenseofthewarisincurredonlyonceforall。10*Andthusit
　　maycometopass，underfavouringconditionssuchashaveoccurred
　　inEngland，thatanationhasgainedimmeasurablymorethanithas
　　lostfromthatverykindofexpenditurewhichtheoristsholdtobe
　　unproductive。ThatsuchwasreallythecasewithEngland，maybe
　　shownbyfigures。Forinthecourseofthewar，thatcountryhad
　　acquiredinthecottonmanufacturealoneapowerofproduction
　　whichyieldsannuallyamuchlargerreturninvaluethantheamount
　　whichthenationhastofindtodefraytheinterestuponthe
　　increasednationaldebt，nottomentionthevastdevelopmentofall
　　otherbranchesofindustry，andtheadditionstohercolonial
　　wealth。
　　MostconspicuouswastheadvantageaccruingtotheEnglish
　　manufacturinginterestduringtheContinentalwars，whenEngland
　　maintainedarmycorpsontheContinentorpaidsubsidies。Thewhole
　　expenditureonthesewassent，intheshapeofEnglish
　　manufactures，totheseatofwar，wheretheseimportsthen
　　materiallycontributedtocrushthealreadysorelysuffering
　　foreignmanufacturers，andpermanentlytoacquirethemarketofthe
　　foreigncountryforEnglishmanufacturingindustry。Itoperated
　　preciselylikeanexportbountyinstitutedforthebenefitof
　　Britishandfortheinjuryofforeignmanufacturers。11*
　　Inthisway，theindustryoftheContinentalnationshasever
　　sufferedmorefromtheEnglishasallies，thanfromtheEnglishas
　　enemies。Insupportofthisstatementweneedreferonlytothe
　　SevenYears'War，andtothewarsagainsttheFrenchRepublicand
　　Empire。
　　Great，however，ashavebeentheadvantagesheretofore
　　mentioned，theyhavebeengreatlysurpassedintheireffectby
　　thosewhichEnglandderivedfromimmigrationsattractedbyher
　　political，religious，andgeographicalconditions。
　　Asfarbackasthetwelfthcenturypoliticalcircumstances
　　inducedFlemishwoollenweaverstoemigratetoWales。Notmany
　　centurieslaterexiledItalianscameovertoLondontocarryon
　　businessasmoneychangersandbankers。ThatfromFlandersand
　　BrabantentirebodiesofmanufacturersthrongedtoEnglandat
　　variousperiods，wehaveshowninChapterII。FromSpainand
　　PortugalcamepersecutedJews；fromtheHanseTowns，andfrom
　　Veniceinherdecline，merchantswhobroughtwiththemtheirships，
　　theirknowledgeofbusiness，theircapital，andtheirspiritof
　　enterprise。Stillmoreimportantweretheimmigrationsofcapital
　　andofmanufacturersinconsequenceoftheReformationandthe
　　religiouspersecutionsinSpain，Portugal，France，Belgium，
　　Germany，andItaly；asalsoofmerchantsandmanufacturersfrom
　　Hollandinconsequenceofthestagnationoftradeandindustryin
　　thatcountryoccasionedbytheActofNavigationandtheMethuen
　　Treaty。Everypoliticalmovement，everywarupontheContinent，
　　broughtEnglandvastaccessionsoffreshcapitalandtalents，so
　　longasshepossessedtheprivilegesoffreedom，therightof
　　asylum，internaltranquillityandpeace，theprotectionofthelaw，
　　andgeneralwell-being。SomorerecentlydidtheFrenchRevolution
　　andthewarsoftheEmpire；andsodidthepoliticalcommotions，
　　therevolutionaryandreactionarymovementsandthewarsinSpain，
　　inMexico，andinSouthAmerica。BymeansofherPatentLaws，
　　Englandlongmonopolisedtheinventivegeniusofeverynation。It
　　isnomorethanfairthatEngland，nowthatshehasattainedthe
　　culminatingpointofherindustrialgrowthandprogress，should
　　restoreagaintothenationsofContinentalEuropeaportionof
　　thoseproductiveforceswhichsheoriginallyderivedfromthem。
　　NOTES：
　　1。Hume，vol。ii，p。143。
　　2。Nodoubtthedecreesprohibitingtheexportofwool，notto
　　mentiontherestrictionsplacedonthetradeinwoolinmarkets
　　nearthecoast，werevexationsandunfair；yetatthesametimethe
　　operatedbeneficiallyinthepromotionofEnglishindustry，andin
　　thesuppressionofthatoftheFlemings。
　　3。Humein1603。Macpherson，HistoireduCommercein1651。
　　4。SeeUstaritz，Th閛rieduCommerce，ch。xxviii。Thuswesee
　　GeorgeIdidnotwanttoexportgoodsandimportnothingbutspecie
　　inreturn，whichisstatedasthefundamentalprincipleofthe
　　so-called'mercantilesystem'，andwhichinanycasewouldbe
　　absurd。Whathedesiredwastoexportmanufacturesandimportraw
　　material。
　　5。Hume，vol。v。p。39。
　　6。Andersonfortheyear1721。
　　7。Priestley，LecturesonHistoryandGeneralPolicy，Pt。II，p。
　　289。
　　8。TheseandthefollowingfiguresrelatingtoEnglishstatistics
　　aretakenfromapaperwrittenbyMcQueen，thecelebratedEnglish
　　statistician，andappearingintheJulynumberofTait'sEdinburgh
　　Magazinefortheyear1839。Possiblytheymaybesomewhat
　　exaggeratedforthemoment。Butevenifso，itismorethan
　　probablethatthefiguresasstatedwillbereachedwithinthe
　　presentdecade。
　　9。Beforehislamenteddeath，thegiftedauthorofthisremark，in
　　hisLettersonEngland，readthenoblesofhisnativecountrya
　　lessoninthisrespectwhichtheywoulddowelltolaytoheart。
　　10。England'snationaldebtwouldnotbesogreatanevilasitnow
　　appearstous，ifEngland'saristocracywouldconcedethatthis
　　burdenshouldbebornebytheclasswhowerebenefitedbythecost
　　ofwars，namely，bytherich。McQueenestimatesthecapitalised
　　valueofpropertyinthethreekingdomsat4，000millionpounds
　　sterling，andMartinestimatesthecapitalinvestedinthecolonies
　　atabout2，600millionssterling。Henceweseethatone-ninthpart
　　ofEnglishmen'sprivatepropertywouldsufficetocovertheentire
　　nationaldebt。Nothingcouldbemorejustthansuchan
　　appropriation，oratleastthanthepaymentoftheinterestonthe
　　nationaldebtoutoftheproceedsofanincometax。TheEnglish
　　aristocracy，however，deemitmoreconvenienttoprovideforthis
　　chargebytheimpositionoftaxesuponarticlesofconsumption，by
　　whichtheexistenceoftheworkingclassesisembitteredbeyondthe
　　pointofendurance。
　　11。SeeAppendixA。
　　Chapter5
　　TheSpaniardsandPortuguese
　　WhilsttheEnglishwerebusiedforcenturiesinraisingthe
　　structureoftheirnationalprosperityuponthemostsolid
　　foundations，theSpaniardsandthePortuguesemadeafortune
　　rapidlybymeansoftheirdiscoveriesandattainedtogreatwealth
　　inaveryshortspaceoftime。Butitwasonlythewealthofa
　　spendthriftwhohadwonthefirstprizeinalottery，whereasthe
　　wealthoftheEnglishmaybelikenedtothefortuneaccumulatedby
　　thediligentandsavingheadofafamily。Theformermayforatime
　　appearmoretobeenviedthanthelatteronaccountofhislavish
　　expenditureandluxury；butwealthinhiscaseisonlyameansfor
　　prodigalityandmomentaryenjoyment，whereasthelatterwillregard
　　wealthchieflyasameansoflayingafoundationforthemoraland
　　materialwell-beingofhislatestposterity。
　　TheSpaniardspossessedflocksofwell-bredsheepatsoearly
　　aperiodthatHenryIofEnglandwasmovedtoprohibitthe
　　importationofSpanishwoolin1172，andthatasfarbackasthe
　　tenthandeleventhcenturiesItalianwoollenmanufacturersusedto
　　importthegreaterportionoftheirwoolsuppliesfromSpain。Two
　　hundredyearsbeforethattimethedwellersontheshoresofthe
　　BayofBiscayhadalreadydistinguishedthemselvesinthe
　　manufactureofiron，innavigation，andinfisheries。Theywerethe
　　firsttocarryonthewhalefishery，andevenintheyear1619they
　　stillsofarexcelledtheEnglishinthatbusinessthattheywere
　　askedtosendfishermentoEnglandtoinstructtheEnglishinthis
　　particularbranchofthefishingtrade。1*
　　Alreadyinthetenthcentury，underAbdulrahmanIII912to
　　950，theMoorshadestablishedinthefertileplainsaround
　　Valenciaextensiveplantationsofcotton，sugar，andrice，and
　　carriedonsilkcultivation。Cordova，Seville，andGranada
　　containedatthetimeoftheMoorsimportantcottonandsilk
　　manufactories。2*Valencia，Segovia，Toledo，andseveralother
　　citiesinCastilewerecelebratedfortheirwoollenmanufactures。
　　Sevillealoneatanearlyperiodofhistorycontainedasmanyas
　　16，000looms，whilethewoollenmanufactoriesofSegoviainthe
　　year1552wereemploying13，000operatives。Otherbranchesof
　　industry，notablythemanufactureofarmsandofpaper，hadbecome
　　developedonasimilarscale。InColbert'sdaytheFrenchwere
　　stillinthehabitofprocuringsuppliesofclothfromSpain。3*
　　TheSpanishseaporttownsweretheseatofanextensivetradeand
　　ofimportantfisheries，anduptothetimeofPhilipIISpain
　　possessedamostpowerfulnavy。Inaword，Spainpossessedallthe
　　elementsofgreatnessandprosperity，whenbigotry，inalliance
　　withdespotism，settoworktostiflethehighspiritofthe
　　nation。Thefirstcommencementofthisworkofdarknesswasthe
　　expulsionoftheJews，anditscrowningacttheexpulsionofthe
　　Moors，wherebytwomillionsofthemostindustriousandwell-to-do
　　inhabitantsweredrivenoutofSpainwiththeircapital。
　　WhiletheInquisitionwasthusoccupiedindrivingnative
　　industryintoexile，itatthesametimeeffectuallyprevented
　　foreignmanufacturersfromsettlingdowninthecountry。The
　　discoveryofAmericaandoftherouteroundtheCapeonlyincreased
　　thewealthofbothkingdomsafteraspeciousandephemeralfashion——
　　indeed，bytheseeventsadeath-blowwasfirstgiventotheir
　　nationalindustryandtotheirpower。Forthen，insteadof
　　exchangingtheproduceoftheEastandWestIndiesagainsthome
　　manufactures，astheDutchandtheEnglishsubsequentlydid，the
　　SpaniardsandPortuguesepurchasedmanufacturedgoodsfromforeign
　　nationswiththegoldandthesilverwhichtheyhadwrungfrom
　　theircolonies。4*Theytransformedtheirusefulandindustrious
　　citizensintoslave-dealersandcolonialtyrants：thusthey
　　promotedtheindustry；thetrade，andthemaritimepowerofthe
　　DutchandEnglish，inwhomtheyraiseduprivalswhosoongrew
　　strongenoughtodestroytheirfleetsandrobthemofthesources
　　oftheirwealth。InvainthekingsofSpainenactedlawsagainst
　　theexportationofspecieandtheimportationofmanufactured
　　goods。Thespiritofenterprise，industry，andcommercecanonly
　　strikerootinthesoilofreligiousandpoliticalliberty；gold
　　andsilverwillonlyabidewhereindustryknowshowtoattractand
　　employthem。
　　Portugal，however，undertheauspicesofanenlightenedand
　　powerfulminister，didmakeanattempttodevelophermanufacturing
　　industry，thefirstresultsofwhichstrikeuswithastonishment。
　　ThatcountrylikeSpain，hadpossessedfromtimeimmemorialfine
　　flocksofsheep。Strabotellsusthatafinebreedofsheephad
　　beenintroducedintoPortugalfromAsia，thecostofwhichamounted
　　toonetalentperhead。WhentheCountofEreceirabecameminister
　　in1681，heconceivedthedesignofestablishingcloth
　　manufactories，andofthusworkingupthenativerawmaterialin
　　ordertosupplythemothercountryandthecolonieswith
　　home-manufacturedgoods。Withthatviewclothworkerswereinvited
　　fromEngland，andsospeedilydidthenativeclothmanufactories
　　flourishinconsequenceoftheprotectionsecuredtothem，that
　　threeyearslaterin1684itbecamepracticabletoprohibitthe
　　importationofforeigncloths。FromthatperiodPortugalsupplied
　　herselfandhercolonieswithnativegoodsmanufacturedof
　　home-grownrawmaterial，andprosperedexceedinglyinsodoingfor
　　aperiodofnineteenyears，asattestedbytheevidenceofEnglish
　　writersthemselves。5*
　　ItistruethateveninthosedaystheEnglishgaveproofof
　　thatabilitywhichatsubsequenttimestheyhavemanagedtobring
　　toperfection。Inordertoevadethetariffrestrictionsof
　　Portugal，theymanufacturedwoollenfabrics，whichslightly
　　differedfromcloththoughservingthesamepurpose，andimported
　　theseintoPortugalunderthedesignationofwoollensergesand
　　woollendruggets。Thistrickoftradewas，however，soondetected
　　andrenderedinnocuousbyadecreeprohibitingtheimportationof
　　suchgoods。6*Thesuccessofthesemeasuresisallthemore
　　remarkablebecausethecountry，notaverygreatwhilebefore，had
　　beendrainedofalargeamountofcapital，whichhadfounditsway
　　abroadowingtotheexpulsionoftheJews，andwassuffering
　　especiallyfromalltheevilsofbigotry，ofbadgovernment，andof
　　afeudalaristocracy，whichgrounddownpopularlibertiesand
　　agriculture。7*
　　Intheyear1703，afterthedeathofCountEreceira，however，
　　thefamousBritishambassadorPaulMethuensucceededinpersuading
　　thePortugueseGovernmentthatPortugalwouldbeimmensely
　　benefitedifEnglandweretopermittheimportationofPortuguese
　　winesatadutyone-thirdlessthanthedutylevieduponwinesof
　　othercountries，inconsiderationofPortugaladmittingEnglish
　　clothsatthesamerateofimportdutyviz。twenty-threeper
　　cent。whichhadbeenchargeduponsuchgoodspriortotheyear
　　1684。ItseemsasthoughonthepartoftheKingthehopeofan
　　increaseinhiscustomsrevenue，andonthepartofthenobility
　　thehopeofanincreasedincomefromrents，suppliedthechief
　　motivesfortheconclusionofthatcommercialtreatyinwhichthe
　　QueenofEnglandAnnestylestheKingofPortugal'heroldest
　　friendandally'——onmuchthesameprincipleastheRomanSenate
　　wasformerlywonttoapplysuchdesignationstothoserulerswho
　　hadthemisfortunetobebroughtintocloserrelationswiththat
　　assembly。
　　Directlyaftertheconclusionofthistreaty，Portugalwas
　　delugedwithEnglishmanufactures，andthefirstresultofthis
　　inundationwasthesuddenandcompleteruinofthePortuguese
　　manufactories——aresultwhichhaditsperfectcounterpartsinthe
　　subsequentso-calledEdentreatywithFranceandintheabrogation
　　oftheContinentalsysteminGermany。
　　AccordingtoAnderson'stestimony，theEnglish，eveninthose
　　days，hadbecomesuchadeptsintheartofunderstatingthevalue
　　oftheirgoodsintheircustom-housebillsofentry，thatineffect
　　theypaidnomorethanhalfthedutychargeableonthembythe
　　tariff。8*
　　'Aftertherepealoftheprohibition，'says'TheBritish
　　Merchant，''wemanagedtocarryawaysomuchoftheirsilver
　　currencythatthereremainedbutverylittlefortheirnecessary
　　occasions；thereuponweattackedtheirgold。'9*Thistradethe
　　Englishcontinueddowntoveryrecenttimes。Theyexportedallthe
　　preciousmetalswhichthePortuguesehadobtainedfromtheir
　　colonies，andsentalargeportionofthemtotheEastIndiesand
　　toChina，where，aswesawinChapterIV，theyexchangedthemfor
　　goodswhichtheydisposedofonthecontinentofEuropeagainstraw
　　materials。TheyearlyexportsofEnglandtoPortugalexceedthe
　　importsfromthatcountrybytheamountofonemillionsterling。
　　Thisfavourablebalanceoftradeloweredtherateofexchangeto
　　theextentoffifteenpercenttothedisadvantageofPortugal。
　　'Thebalanceoftradeismorefavourabletousinourdealingswith
　　Portugalthanitiswithanyothercountry，'saystheauthorof
　　'TheBritishMerchant'inhisdedicationtoSirPaulMethuen，the
　　sonofthefamousminister，'andourimportsofspeciefromthat
　　countryhaverisentothesumofoneandahalfmillionssterling，
　　whereasformerlytheyamountedonlyto300，000l。'10*
　　Allthemerchantsandpoliticaleconomists，aswellasallthe
　　statesmenofEngland，haveeversinceeulogisedthistreatyasthe
　　masterpieceofEnglishcommercialpolicy。Andersonhimself，whohad
　　aclearinsightenoughintoallmattersaffectingEnglish
　　commercialpolicyandwhoinhiswayalwaystreatsofthemwith
　　greatcandourcall'sit'anextremelyfairandadvantageous
　　treaty；'norcouldheforbearthena飗eexclamation，'Mayitendure
　　foreverandever！'11*
　　ForAdamSmithaloneitwasreservedtosetupatheory
　　directlyopposedtothisunanimousverdict，andtomaintainthat
　　theMethuenTreatyhadinnorespectprovedaspecialboonto
　　Britishcommerce。Now，ifanythingwillsufficetoshowtheblind
　　reverencewithwhichpublicopinionhasacceptedthepartlyvery
　　paradoxicalviewsofthiscelebratedman，surelyitisthefact
　　thattheparticularopinionabovementionedhashithertobeenleft
　　unrefuted。
　　InthesixthchapterofhisfourthbookAdamSmithsays，that
　　inasmuchasundertheMethuenTreatythewinesofPortugalwere
　　admitteduponpayingonlytwo-thirdsofthedutywhichwaspaidon
　　thoseofothernations，adecidedadvantagewasconcededtothe
　　Portuguese；whereastheEnglish，beingboundtopayquiteashigh
　　adutyinPortugalontheirexportsofclothasanyothernation，
　　had，therefore，nospecialprivilegegrantedtothembythe
　　Portuguese。ButhadnotthePortuguesebeenpreviouslyimportinga
　　largeproportionoftheforeigngoodswhichtheyrequiredfrom
　　France，Holland，Germany，andBelgium？DidnottheEnglish
　　thenceforthexclusivelycommandthePortuguesemarketfora
　　manufacturedproduct，therawmaterialforwhichtheypossessedin
　　theirowncountry？Hadtheynotdiscoveredamethodofreducingthe
　　Portuguesecustomsdutybyone-half？Didnotthecourseofexchange
　　givetheEnglishconsumerofPortuguesewinesaprofitoffifteen
　　percent？DidnottheconsumptionofFrenchandGermanwinesin
　　Englandalmostentirelycease？DidnotthePortuguesegoldand
　　silversupplytheEnglishwiththemeansofbringingvast
　　quantitiesofgoodsfromIndiaandofdelugingthecontinentof
　　Europewiththem？WerenotthePortugueseclothmanufactories
　　totallyruined，totheadvantageoftheEnglish？Didnotallthe
　　Portuguesecolonies，especiallytherichoneofBrazil，bythis
　　meansbecomepracticallyEnglishcolonies？Certainlythistreaty
　　conferredaprivilegeuponPortugal，butonlyinname；whereasit
　　conferredaprivilegeupontheEnglishinitsactualoperationand
　　effects。Aliketendencyunderliesallsubsequenttreatiesof
　　commercenegotiatedbytheEnglish。Byprofessiontheywerealways
　　cosmopolitesandphilanthropists，whileintheiraimsand
　　endeavourstheywerealwaysmonopolists。
　　AccordingtoAdamSmith'ssecondargument，theEnglishgained
　　noparticularadvantagesfromthistreaty，becausetheyweretoa
　　greatextentobligedtosendawaytoothercountriesthemoney
　　whichtheyreceivedfromthePortuguesefortheircloth，andwith
　　ittopurchasegoodsthere；whereasitwouldhavebeenfarmore
　　profitableforthemtomakeadirectexchangeoftheircloths
　　againstsuchcommoditiesastheymightneed，andthusbyone
　　exchangeaccomplishthatwhichbymeansofthetradewithPortugal
　　theycouldonlyeffectbytwoexchanges。Really，butforthevery
　　highopinionwhichweentertainofthecharacterandtheacumenof
　　thiscelebratedsavant，weshouldinthefaceofthisargumentbe
　　driventodespaireitherofhiscandourorofhisclearnessof
　　perception。Toavoiddoingeither，nothingisleftforusbutto
　　bewailtheweaknessofhumannature，towhichAdamSmithhaspaid
　　arichtributeintheshapeoftheseparadoxical，almostlaughable，
　　argumentsamongotherinstances；beingevidentlydazzledbythe
　　splendourofthetask，sonobleinitself，ofpleadinga
　　justificationforabsolutefreedomoftrade。
　　Intheargumentjustnamedthereisnomoresoundsenseor
　　logicthaninthepropositionthatabaker，becausehesellsbread
　　tohiscustomersformoney，andwiththatmoneybuysflourfromthe
　　miller，doesanunprofitabletrade，becauseifhehadexchangedhis
　　breaddirectlyforflour，hewouldhaveeffectedhispurposebya
　　singleactofexchangeinsteadofbytwosuchacts。Itneedssurely
　　nogreatamountofsagacitytoanswersuchanallegationbyhinting
　　thatthemillermightpossiblynotwantsomuchbreadasthebaker
　　couldsupplyhimwith，thatthemillermightperhapsunderstandand
　　undertakebakinghimself，andthat，therefore，thebaker'sbusiness
　　couldnotgoonatallwithoutthesetwoactsofexchange。Suchin
　　effectwerethecommercialconditionsofPortugalandEnglandat
　　thedateofthetreaty。Portugalreceivedgoldandsilverfrom
　　SouthAmericainexchangeformanufacturedgoodswhichshethen
　　exportedtothoseregions；buttooindolentortooshiftlessto
　　manufacturethesegoodsherself，sheboughtthemoftheEnglishin
　　exchangeforthepreciousmetals。Thelatteremployedtheprecious
　　metals，insofarastheydidnotrequirethemforthecirculation
　　athome，inexportationtoIndiaorChina，andboughtgoodsthere
　　whichtheysoldagainontheEuropeancontinent，whencethey
　　broughthomeagriculturalproduce，rawmaterial，orpreciousmetals
　　onceagain。
　　Wenowask，inthenameofcommonsense，whowouldhave
　　purchasedoftheEnglishallthoseclothswhichtheyexportedto
　　Portugal，ifthePortuguesehadchoseneithertomakethemathome
　　orprocurethemfromothercountries？TheEnglishcouldnotinthat
　　casehavesoldthemtoPortugal，andtoothernationstheywere
　　alreadysellingasmuchasthosenationswouldtake。Consequently
　　theEnglishwouldhavemanufacturedsomuchlesscloththanthey
　　hadbeendisposingoftothePortuguese；theywouldhaveexported
　　somuchlessspecietoIndiathantheyhadobtainedfromPortugal。
　　TheywouldhavebroughttoEuropeandsoldontheContinentjust
　　thatmuchlessofEastIndianmerchandise，andconsequentlywould
　　havetakenhomewiththemthatmuchlessofrawmaterial。
　　QuiteasuntenableisAdamSmith'sthirdargumentthat，if
　　Portuguesemoneyhadnotflowedinuponthem，theEnglishmight
　　havesuppliedtheirrequirementsofthisarticleinotherways。
　　Portugal，heconceived，mustinanycasehaveexportedher
　　superfluousstoreofpreciousmetals，andthesewouldhavereached
　　Englandthroughsomeotherchannel。Wehereassumethatthe
　　Portuguesehadmanufacturedtheirclothsforthemselves，had
　　themselvesexportedtheirsuperfluousstockofpreciousmetalsto
　　IndiaandChina，andhadpurchasedthereturncargoesinother
　　countries；andwetakeleavetoaskthequestionwhetherunder
　　thesecircumstancestheEnglishwouldhaveseenmuchofPortuguese
　　money？ItwouldhavebeenjustthesameifPortugalhadconcluded
　　aMethuenTreatywithHollandorFrance。Inboththesecases，no
　　doubt，somelittleofthemoneywouldhavegoneovertoEngland，
　　butonlysomuchasshecouldhaveacquiredbythesaleofherraw
　　wool。Inshort，butfortheMethuenTreaty，themanufactures，the
　　trade，andtheshippingoftheEnglishcouldneverhavereached
　　suchadegreeofexpansionastheyhaveattainedto。
　　Butwhateverbetheestimateformedoftheeffectsofthe
　　MethuenTreatyasrespectsEngland，thismuchatleastappearsto
　　bemadeout，that，inrespecttoPortugal，theyhaveinnowaybeen
　　suchastotemptothernationstodeliverovertheirhomemarkets
　　formanufacturedgoodstoEnglishcompetition，forthesakeof
　　facilitatingtheexportationofagriculturalproduce。Agriculture
　　andtrade，commerceandnavigation，insteadofimprovingfromthe
　　intercoursewithEngland，wentonsinkinglowerandlowerin
　　Portugal。InvaindidPombalstrivetoraisethem，English
　　competitionfrustratedallhisefforts。Atthesametimeitmust
　　notbeforgottenthatinacountrylikePortugal，wherethewhole
　　socialconditionsareopposedtoprogressinagriculture，industry，
　　andcommerce，commercialpolicycaneffectbutverylittle。
　　Nevertheless，thelittlewhichPombaldideffectproveshowmuch
　　canbedoneforthebenefitofindustrybyagovernmentwhichis
　　anxioustopromoteitsinterests，ifonlytheinternalhindrances
　　whichthesocialconditionofacountrypresentscanfirstbe
　　removed。
　　ThesameexperiencewasmadeinSpaininthereignsofPhilip
　　Vandhistwoimmediatesuccessors。Inadequateaswasthe
　　protectionextendedtohomeindustriesundertheBourbons，and
　　greataswasthelackofenergyinfullyenforcingthecustoms
　　laws，yettheremarkableanimationwhichpervadedeverybranchof
　　industryandeverydistrictofthecountryastheresultof
　　transplantingthecommercialpolicyofColbertfromFrancetoSpain
　　wasunmistakable。12*ThestatementsofUstaritzandUlloa13*in
　　regardtotheseresultsunderthethenprevailingcircumstancesare
　　astonishing。Foratthattimewerefoundeverywhereonlythemost
　　wretchedmule-tracks，nowhereanywell-keptinns，nowhereany
　　bridges，canals，orrivernavigation，everyprovincewasclosed
　　againsttherestofSpainbyaninternalcustomscordon，atevery
　　citygatearoyaltollwasdemanded，highwayrobberyandmendicancy
　　werepursuedasregularprofessions，thecontrabandtradewasin
　　themostflourishingcondition，andthemostgrindingsystemof
　　taxationexisted；theseandsuchasthesetheabovenamedwriters
　　adduceasthecausesofthedecayofindustryandagriculture。The
　　causesoftheseevils——fanaticism，thegreedandthevicesofthe
　　clergy，theprivilegesofthenobles，thedespotismofthe
　　Government，thewantofenlightenmentandfreedomamongstthe
　　people——UstaritzandUlloadarenotdenounce。
　　AworthycounterparttotheMethuenTreatywithPortugalisthe
　　AssientoTreatyof1713withSpain，underwhichpowerwasgranted
　　totheEnglishtointroduceeachyearacertainnumberofAfrican
　　negroesintoSpanishAmerica，andtovisittheharbourof
　　Portobellowithoneshiponceayear，wherebyanopportunitywas
　　affordedthemofsmugglingimmensequantitiesofgoodsintothese
　　countries。
　　Wethusfindthatinalltreatiesofcommerceconcludedbythe
　　English，thereisatendencytoextendthesaleoftheir
　　manufacturesthroughoutallthecountrieswithwhomtheynegotiate，
　　byofferingthemapparentadvantagesinrespectofagricultural
　　produceandrawmaterials。Everywheretheireffortsaredirectedto
　　ruiningthenativemanufacturingpowerofthosecountriesbymeans
　　ofcheapergoodsandlongcredits。Iftheycannotobtainlow
　　tariffs，thentheydevotetheirexertionstodefraudingthe
　　custom-houses，andtoorganisingawholesalesystemofcontraband
　　trade。Theformerdevice，aswehaveseen，succeededinPortugal，
　　thelatterinSpain。Thecollectionofimportduesuponthead
　　valoremprinciplehasstoodthemingoodsteadinthismatter，for
　　whichreasonoflatetheyhavetakensomuchpainstorepresentthe
　　principleofpayingdutybyweight——asintroducedbyPrussia——
　　asbeinginjudicious。
　　NOTES：
　　1。Anderson，vol。i。p。127，vol。ii。p。350。
　　2。M。G。Simon，Recueild'Observationssurl'Angleterre。M閙oires
　　etConsid閞ationssurleCommerceetlesFinancesd'Espagne。
　　Ustaritz，Th閛rieetPratiqueduCommerce。
　　3。Chaptal，Del'IndustrieFran鏰ise，vol。ii。p。245。
　　4。ThechiefexporttradeofthePortuguesefromCentraland
　　SouthernAmericaconsistedofthepreciousmetals。From1748to
　　1753，theexportsamountedto18millionsofpiastres。See
　　Humboldt'sEssaiPolitiquesurleRoyaumedelaNouvelleEspagne，
　　vol。ii。p。652。Thegoodstradewiththoseregions，aswellas
　　withtheWestIndies，firstassumedimportantproportions，bythe
　　introductionofthesugar，coffee，andcottonplanting。
　　5。BritishMerchant，vol。iii。p。69。
　　6。Ibid。p。71。
　　7。Ibid。p。76。
　　8。Anderson，vol。iii。p。67。
　　9。BritishMerchant，vol。iii。p。267。
　　10。Ibid。vol。iii。pp。15，20，33，38，110，253，254。
　　11。Andersonfortheyear1703。
　　12。Macpherson，AnnalsofCommercefortheyears1771and1774。The
　　obstaclesthrowninthewayoftheimportationofforeigngoods
　　greatlypromotedthedevelopmentofSpanishmanufactures。Before
　　thattimeSpainhadbeenobtainingnineteen-twentiethsofher
　　suppliesofmanufacturedgoodsfromEngland——Brougham，Inquiry
　　intotheColonialPolicyoftheEuropeanPowers，PartI。p。421。
　　13。Ustaritz，Th閛rieduCommerce。Ulloa，R閠ablissementdes
　　Manufacturesd'Espagne。
　　Chapter6
　　TheFrench
　　France，too，inheritedmanyaremnantofRomanCivilisation。On
　　theirruptionoftheGermanFranks，wholovednothingbutthe
　　chase，andchangedmanydistrictsagainintoforestsandwaste
　　whichhadbeenlongundercultivation，almosteverythingwaslost
　　again。Tothemonasteries，however，whichsubsequentlybecamesuch
　　agreathindrancetocivilisation，France，likeallotherEuropean
　　countries，isindebtedformostofherprogressinagriculture
　　duringtheMiddleAges。Theinmatesofreligioushouseskeptupno
　　feudslikethenobles，norharassedtheirvassalswithcallsto
　　militaryservice，whiletheirlandsandcattlewerelessexposedto
　　rapineandextermination。Theclergylovedgoodliving，wereaverse
　　toquarrels，andsoughttogainreputationandrespectby
　　supportingthenecessitous。Hencetheoldadage'Itisgoodto
　　dwellunderthecrosier。'TheCrusades，theinstitutionofcivic
　　communitiesandofguildsbyLouisIXSaintLouis，andthe
　　proximityofItalyandFlanders，hadconsiderableeffectatan
　　earlyperiodindevelopingindustryinFrance。Alreadyinthe
　　fourteenthcentury，NormandyandBrittanysuppliedwoollenand
　　linenclothsforhomeconsumptionandforexporttoEngland。At
　　thisperiodalsotheexporttradeinwinesandsalt，chiefly
　　throughtheagencyofHanseaticmiddlemen，hadbecomeimportant。
　　BytheinfluenceofFrancisIthesilkmanufacturewas
　　introducedintotheSouthofFrance。HenryIVfavouredthis
　　industry，aswellasthemanufactureofglass，linen，andwoollens；
　　RichelieuandMazarinfavouredthesilkmanufactories，thevelvet
　　andwoollenmanufacturesofRouenandSedan，aswellasthe
　　fisheriesandnavigation。
　　OnnocountrydidthediscoveryofAmericaproducemore
　　favourableeffectsthanuponFrance。FromWesternFrancequantities
　　ofcornweresenttoSpain。Manypeasantsmigratedeveryyearfrom
　　thePyreneandistrictstothenorth-eastofSpaininsearchof
　　work。Greatquantitiesofwineandsaltwereexportedtothe
　　SpanishNetherlands，whilethesilks，thevelvets，asalso
　　especiallythearticlesofluxuryofFrenchmanufacture，weresold
　　inconsiderablequantitiesintheNetherlands，England，Spain，and
　　Portugal。OwingtothiscauseagreatdealofSpanishgoldand
　　silvergotintocirculationinFranceatanearlyperiod。
　　ButthepalmydaysofFrenchindustryfirstcommencedwith
　　Colbert。
　　AtthetimeofMazarin'sdeath，neithermanufacturingindustry，
　　commerce，navigation，northefisherieshadattainedtoimportance，
　　whilethefinancialconditionofthecountrywasatitsworst。
　　Colberthadthecouragetograpplesingle-handedwithan
　　undertakingwhichEnglandcouldonlybringtoasuccessfulissue
　　bytheperseveringeffortsofthreecenturies，andatthecostof
　　tworevolutions。Fromallcountriesheobtainedthemostskilful
　　workmen，boughtuptradesecrets，andprocuredbettermachineryand
　　tools。Byageneralandefficienttariffhesecuredthehome
　　marketsfornativeindustry。Byabolishing，orbylimitingasmuch
　　aspossible，theprovincialcustomscollections，bythe
　　constructionofhighwaysandcanals，hepromotedinternaltraffic。
　　Thesemeasuresbenefitedagricultureevenmorethanmanufacturing
　　industrybecausethenumberofconsumerswastherebydoubledand
　　trebled，andtheproducerswerebroughtintoeasyandcheap
　　communicationwiththeconsumers。Hefurtherpromotedtheinterests
　　ofagriculturebyloweringtheamountsofdirectimpostslevied
　　uponlandedproperty，bymitigatingtheseverityofthestringent
　　measurespreviouslyadoptedincollectingtherevenue，by
　　equalisingtheincidenceoftaxation，andlastlybyintroducing
　　measuresforthereductionoftherateofinterest。Heprohibited
　　theexportationofcornonlyintimesofscarcityandhighprices。
　　Totheextensionoftheforeigntradeandthepromotionof
　　fisherieshedevotedspecialattention。Here-establishedthetrade
　　withtheLevant，enlargedthatwiththecolonies，andopenedupa
　　tradewiththeNorth。Intoallbranchesoftheadministrationhe
　　introducedthemoststringenteconomyandperfectorder。Athis
　　deathFrancepossessed50，000loomsengagedinthemanufactureof
　　woollens；sheproducedannuallysilkmanufacturestothevalueof
　　50millionsoffrancs。TheStaterevenueshadincreasedby28
　　millionsoffrancs。Thekingdomwasinpossessionofflourishing
　　fisheries，ofanextensivemercantilemarine，andapowerful
　　navy。1*
　　Acenturylater，theeconomistshavesharplycensuredColbert，
　　andmaintainedthatthisstatesmanhadbeenanxioustopromotethe
　　interestsofmanufacturesattheexpenseofagriculture：areproach
　　whichprovesnothingmorethanthattheseauthoritieswere
　　themselvesincapableofappreciatingthenatureofmanufacturing
　　industry。2*
　　If，however，Colbertwasinerrorinopposingperiodical
　　obstaclestotheexportationofrawmaterials，yetbyfosteringthe
　　growthandprogressofnativeindustrieshesogreatlyincreased
　　thedemandforagriculturalproducethathegavetheagricultural
　　interesttenfoldcompensationforanyinjurywhichhecausedtoit
　　bytheabove-namedobstacles。If，contrarytothedictatesof
　　enlightenedstatesmanship，heprescribednewprocessesof
　　manufacture，andcompelledthemanufacturersbypenalenactmentsto
　　adoptthem，itshouldbeborneinmindthattheseprocesseswere
　　thebestandthemostprofitableknowninhisday，andthathehad
　　todealwithapeoplewhich，sunkintotheutmostapathybyreason
　　ofalongdespoticrule，resistedeveryinnovationeventhoughit
　　wasanimprovement。
　　Thereproach，however，thatFrancehadlostalargeportionof
　　hernativeindustrythroughColbert'sprotectivesystem，couldbe
　　levelledagainstColbertonlybythatschoolwhichutterlyignored
　　therevocationoftheEdictofNanteswithitsdisastrous
　　consequences。Inconsequenceofthesedeplorablemeasures，inthe
　　courseofthreeyearsafterColbert'sdeathhalfamillionofthe
　　mostindustrious，skilful，andthrivinginhabitantsofFrancewere
　　banished；who，consequently，tothedoubleinjuryofFrancewhich
　　theyhadenriched，transplantedtheirindustryandtheircapitalto
　　Switzerland，toeveryProtestantcountryinGermany，especiallyto
　　Prussia，asalsotoHollandandEngland。Thustheintriguesofa
　　bigotedcourtesanruinedinthreeyearstheableandgiftedworkof
　　awholegeneration，andcastFrancebackagainintoitsprevious
　　stateofapathy；whileEngland，undertheaegisofher
　　Constitution，andinvigoratedbyaRevolutionwhichcalledforth
　　alltheenergiesofthenation，wasprosecutingwithincreasing
　　ardourandwithoutintermissiontheworkcommencedbyElizabethand
　　herpredecessors。
　　Themelancholyconditiontowhichtheindustryandthefinances
　　ofFrancehadbeenreducedbyalongcourseofmisgovernment，and
　　thespectacleofthegreatprosperityofEngland，arousedthe
　　emulationofFrenchstatesmenshortlybeforetheFrenchRevolution。
　　Infatuatedwiththehollowtheoryoftheeconomists，theylooked
　　foraremedy，inoppositiontoColbert'spolicy，inthe
　　establishmentoffreetrade。Itwasthoughtthattheprosperityof
　　thecountrycouldberestoredatoneblowifabettermarketwere
　　providedforFrenchwinesandbrandiesinEngland，atthecostof
　　permittingtheimportationofEnglishmanufacturesuponeasyterms
　　atwelvepercentduty。England，delightedattheproposal，
　　willinglygrantedtotheFrenchasecondeditionoftheMethuen
　　Treaty，intheshapeoftheso-calledEdenTreatyof1786；acopy
　　whichwassoonfollowedbyresultsnotlessruinousthanthose
　　producedbythePortugueseoriginal。
　　TheEnglish，accustomedtothestrongwinesofthePeninsula，
　　didnotincreasetheirconsumptiontotheextentwhichhadbeen
　　expected，whilsttheFrenchperceivedwithhorrorthatalltheyhad
　　tooffertheEnglishweresimplyfashionsandfancyarticles，the
　　totalvalueofwhichwasinsignificant：whereastheEnglish
　　manufacturers，inallarticlesofprimenecessity，thetotalamount
　　ofwhichwasenormous，couldgreatlysurpasstheFrench
　　manufacturersincheapnessofprices，aswellasinqualityof
　　theirgoods，andingrantingofcredit。When，afterabrief
　　competition，theFrenchmanufacturerswerebroughttothebrinkof
　　ruin，whileFrenchwine-growershadgainedbutlittle，thenthe
　　FrenchGovernmentsoughttoarresttheprogressofthisruinby
　　terminatingthetreaty，butonlyacquiredtheconvictionthatitis
　　mucheasiertoruinflourishingmanufactoriesinafewyearsthan
　　toreviveruinedmanufactoriesinawholegeneration。English
　　competitionhadengenderedatasteforEnglishgoodsinFrance，the
　　consequenceofwhichwasanextensiveandlong-continuedcontraband
　　tradewhichitwasdifficulttosuppress。Meanwhileitwasnotso
　　difficultfortheEnglish，aftertheterminationofthetreaty，to
　　accustomtheirpalatesagaintothewinesofthePeninsula。
　　NotwithstandingthatthecommotionsoftheRevolutionandthe
　　incessantwarsofNapoleoncouldnothavebeenfavourabletothe
　　prosperityofFrenchindustrynotwithstandingthattheFrenchlost
　　duringthisperiodmostoftheirmaritimetradeandalltheir
　　colonies，yetFrenchmanufactories，solelyfromtheirexclusive
　　possessionoftheirhomemarkets，andfromtheabrogationoffeudal
　　restrictions，attainedduringtheEmpiretoahigherdegreeof
　　prosperitythantheyhadeverenjoyedundertheprecedingancien
　　r間ime。ThesameeffectswerenoticeableinGermanyandinall
　　countriesoverwhichtheContinentalblockadeextended。
　　Napoleonsaidinhistrenchantstyle，thatundertheexisting
　　circumstancesoftheworldanyStatewhichadoptedtheprincipleof
　　freetrademustcometotheground。Inthesewordsheutteredmore
　　politicalwisdominreferencetothecommercialpolicyofFrance
　　thanallcontemporarypoliticaleconomistsinalltheirwritings。
　　Wecannotbutwonderatthesagacitywithwhichthisgreatgenius，
　　withoutanypreviousstudyofthesystemsofpoliticaleconomy，
　　comprehendedthenatureandimportanceofmanufacturingpower。Well
　　wasitforhimandforFrancethathehadnotstudiedthese
　　systems。'Formerly，'saidNapoleon，'therewasbutonedescription
　　ofproperty，thepossessionofland；butanewpropertyhasnow
　　risenup，namely，industry。'Napoleonsaw，andinthiswayclearly
　　enunciated，whatcontemporaryeconomistsdidnotsee，ordidnot
　　clearlyenunciate，namely，thatanationwhichcombinesinitself
　　thepowerofmanufactureswiththatofagricultureisan
　　immeasurablymoreperfectandmorewealthynationthanapurely
　　agriculturalone。WhatNapoleondidtofoundandpromotethe
　　industrialeducationofFrance，toimprovethecountry'scredit，to
　　introduceandsetgoingnewinventionsandimprovedprocesses，and
　　toperfectthemeansofinternalcommunicationinFrance，itisnot
　　necessarytodwelluponindetail，forthesethingsarestilltoo
　　wellremembered。Butwhat，perhaps，doescallforspecialnoticein
　　thisconnection，isthebiassedandunfairjudgmentpassedupon
　　thisenlightenedandpowerfulrulerbycontemporarytheorists。
　　WiththefallofNapoleon，Englishcompetition，whichhadbeen
　　tillthenrestrictedtoacontrabandtrade，recovereditsfooting
　　onthecontinentsofEuropeandAmerica。Nowforthefirsttimethe
　　EnglishwereheardtocondemnprotectionandtoeulogiseAdam
　　Smith'sdoctrineoffreetrade，adoctrinewhichheretoforethose
　　practicalislandersconsideredassuitedonlytoanidealstateof
　　Utopianperfection。Butanimpartial，criticalobservermight
　　easilydiscerntheentireaBsenceofmeresentimentalmotivesof
　　philanthropyinthisconversion，foronlywhenincreasedfacilities
　　fortheexportationofEnglishgoodstothecontinentsofEurope
　　andAmericawereinquestionwerecosmopolitanargumentsresorted
　　to；butsosoonasthequestionturneduponthefreeimportationof
　　corn，orwhetherforeigngoodsmightbeallowedtocompeteatall
　　withBritishmanufacturesintheEnglishmarket，inthatcasequite
　　differentprincipleswereappealedto。3*Unhappily，itwassaid，
　　thelongcontinuanceinEnglandofapolicycontrarytonatural
　　principleshadcreatedanartificialstateofthings，whichcould
　　notBeinterferedwithsuddenlywithoutincurringtheriskof
　　dangerousandmischievousconsequences。Itwasnottobeattempted
　　withoutthegreatestcautionandprudence。ItwasEngland's
　　misfortune，notherfault。Allthemoregratifyingoughtittobe
　　forthenationsoftheEuropeanandAmericancontinents，thattheir
　　happylotandconditionleftthemquitefreetopartakewithout
　　delayoftheblessingsoffreetrade。
　　InFrance，althoughherancientdynastyreascendedthethrone
　　undertheprotectionofthebannerofEngland，oratanyrateby
　　theinfluenceofEnglishgold，theaboveargumentsdidnotobtain
　　currencyforverylong。England'sfreetradewroughtsuchhavoc
　　amongstthemanufacturingindustrieswhichhadprosperedandgrown
　　strongundertheContinentalblockadesystem，thataprohibitive
　　r間imewasspeedilyresortedto，undertheprotectingaegisof
　　which，accordingtoDupin'stestimony，4*theproducingpowerof
　　Frenchmanufactorieswasdoubledbetweentheyears1815and1827。
　　NOTES：
　　1。'ElogedeJeanBaptisteColbert，parNecker'1773OEuvres
　　Completes，vol。xv。。
　　2。SeeQuesnay'spaperentitled，'Physiocratie，ouduGouvernement
　　leplusavantageuxauGenreHumain1768，'Note5，'surlamaxime
　　viii，'whereinQuesnaycontradictsandcondemnsColbertintwo
　　briefpages，whereasNeckerdevotedahundredpagestothe
　　expositionofColbert'ssystemandofwhatheaccomplished。Itis
　　hardtosaywhetherwearetowondermostattheignoranceof
　　Quesnayonmattersofindustry，history，andfinance，oratthe
　　presumptionwithwhichhepassesjudgmentuponsuchamanas
　　Colbertwithoutadducinggroundsforit。Addtothat，thatthis
　　ignorantdreamerwasnotevencandidenoughtomentionthe
　　expulsionoftheHuguenots；nay，thathewasnotashamedtoallege，
　　contrarytoalltruth，thatColberthadrestrictedthetradein
　　cornbetweenprovinceandprovincebyvexatiouspoliceordinances。
　　3。AhighlyaccomplishedAmericanorator，MrBaldwin，ChiefJustice
　　oftheUnitedStates，whenreferringtotheCanning-Huskisson
　　systemoffreetrade，shrewdlyremarked，that，likemostEnglish
　　productions，ithadbeenmanufacturednotsomuchforhome
　　consumptionasforexportation。
　　Shallwelaughmostorweepwhenwecalltomindtheraptureof
　　enthusiasmwithwhichtheLiberalsinFranceandGermany，more
　　particularlythecosmopolitantheoristsofthephilanthropic
　　school，andnotablyMons。J。B。Say，hailedtheannouncementofthe
　　Canning-Huskissonsystem？Sogreatwastheirjubilation，thatone
　　mighthavethoughtthemillenniumhadcome。ButletusseewhatMr
　　Canning'sownbiographersaysaboutthisminister'sviewsonthe
　　subjectoffreetrade。
　　'MrCanningwasperfectlyconvincedofthetruthofthe
　　abstractprinciple，thatcommerceissuretoflourishmostwhen
　　whollyunfettered；butsincesuchhadnotbeentheopinioneither
　　ofourancestorsorofsurroundingnations，andsincein
　　consequencerestraintshadbeenimposeduponallcommercial
　　transactions，astateofthingshadgrownuptowhichtheunguarded
　　applicationoftheabstractprinciple，howevertrueitwasin
　　theory，mighthavebeensomewhatmischievousinpractice。'The
　　PoliticalLifeofMrCanning，byStapleton，p。3。Intheyear
　　1828，thesesametacticsoftheEnglishhadagainassumeda
　　prominencesomarkedthatMrHume，theLiberalmemberof
　　Parliament，feltnohesitationinstigmatisingthemintheHouseas
　　thestranglingofContinentalindustries。
　　4。ForcesproductivesdelaFrance。
　　Chapter7
　　TheGermans
　　InthechapterontheHanseaticLeaguewesawhow；nextin
　　ordertoItaly，Germanyhadflourished，throughextensivecommerce，
　　longbeforetheotherEuropeanstates。Wehavenowtocontinuethe
　　industrialhistoryofthatnation，afterfirsttakingarapid
　　surveyofitsearliestindustrialcircumstancesandtheir
　　development。
　　InancientGermania，thegreaterpartofthelandwasdevoted
　　topasturageandparksforgame。Theinsignificantandprimitive
　　agriculturewasabandonedtoserfsandtowomen。Thesole
　　occupationofthefreemenwaswarfareandthechase；andthatis
　　theoriginofalltheGermannobility。
　　TheGermannoblesfirmlyadheredtothissystemthroughoutthe
　　MiddleAges，oppressingagriculturistsandopposingmanufacturing
　　industry，whilequiteblindtothebenefitswhichmustaccruedto
　　them，asthelordsofthesoil，fromtheprosperityofboth。
　　Indeed，sodeeplyrootedhasthepassionfortheirhereditary
　　favouriteoccupationevercontinuedwiththeGermannobles，that
　　evenintheourdays，longaftertheyhavebeenenrichedbythe
　　ploughshareandshuttle，theystilldreaminlegislativetheabout
　　thepreservationofgameandthegamelaws，asthoughthewolfand
　　thesheep，thebearandthebee，coulddwellinpeacesidebyside；
　　asthoughlandedpropertycouldbedevotedatoneandthesametime
　　togardening，timbergrowing，andscientificfarming，andtothe
　　preservationofwildboars，deer，andhares。
　　Germanhusbandrylongremainedinabarbarouscondition，
　　notwithstandingthattheinfluenceoftownsandmonasteriesonthe
　　districtsintheirimmediatevicinitycouldnotbeignored。
　　TownssprangupintheancientRomancolonies，attheseatsof
　　thetemporalandecclesiasticalprincesandlords，near
　　monasteries，and，wherefavouredbytheEmperor，toacertain
　　extentwithintheirdomainsandinclosures，alsoonsiteswherethe
　　fisheries，combinedwithfacilitiesforlandandwatertransport，
　　offeredinducementstothem。Theyflourishedinmostcasesonlyby
　　supplyingthelocalrequirements，andbytheforeigntransport
　　trade。AnextensivesystemofnativeindustrycapableOfsupplying
　　anexporttradecouldonlyhavegrownupbymeansofextensive
　　sheepfarmingandextensivecultivationofflax。Butflax
　　cultivationimpliesahighstandardofagriculture，whileextensive
　　sheepfarmingneedsprotectionagainstwolvesandrobbers。Such
　　protectioncouldnotbemaintainedamidtheperpetualfeudsofthe
　　noblesandprincesbetweenthemselvesandagainstthetowns。Cattle
　　pasturesservedalwaysastheprincipalfieldforrobbery；while
　　thetotalexterminationofbeastsofpreywasoutofthequestion
　　withthosevasttractsofforestwhichthenobilitysocarefully
　　preservedfortheirindulgenceinthechase。Thescantynumberof
　　cattle，theinsecurityoflifeandproperty，theentirelackof
　　capitalandoffreedomonthepartofthecultivatorsofthesoil，
　　orofanyinterestinagricultureonthepartofthosewhoowned
　　it，necessarilytendedtokeepagriculture，andwithitthe
　　prosperityofthetowns，inaverylowstate。
　　Ifthesecircumstancesaredulyconsidered，itiseasyto
　　understandthereasonwhyFlandersandBrabantundertotally
　　oppositeconditionsattainedatsoearlyaperiodtoahighdegree
　　oflibertyandprosperity。
　　Notwithstandingtheseimpediments，theGermancitiesonthe
　　BalticandtheGermanOceanflourished，owingtothefisheries，to
　　navigation，andtheforeigntradeatsea；inSouthernGermanyand
　　atthefootoftheAlps，owingtotheinfluenceofItaly，Greece，
　　andthetransporttradebyland；ontheRhine，theElbe，andthe
　　Danube，bymeansofviticultureandthewinetrade，owingtothe
　　exceptionalfertilityofthesoilandthefacilitiesofwater
　　communication，whichintheMiddleAgeswasofstillgreater
　　importancethaneveninourdays，becauseofthewretchedcondition
　　oftheroadsandthegeneralstateofinsecurity。
　　Thisdiversityoforiginwillexplainthediversity
　　characterisingtheseveralconfederationsofGermancities，suchas
　　theHanseatic，theRhenish，theSwabian，theDutch，andthe
　　Helvetic。