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。