Thoughtheycontinuedpowerfulforatimeowingtothespirit
ofyouthfulfreedomwhichpervadedthem，yettheseleagueslacked
theinternalguaranteeofstability，theprincipleofunity，the
cement。Separatedfromeachotherbytheestatesofthenobility，
bytheserfdomofthepopulationofthecountry，theirunionwas
doomedsoonerorlatertobreakdown，owingtothegradualincrease
andenrichmentoftheagriculturalpopulation，amongwhom，through
thepoweroftheprinces，theprincipleofunitywasmaintained。
Thecities，inasmuchastheytendedtopromotetheprosperityof
agriculture，bysodoingnecessarilywereworkingattheirown
effacement，unlesstheycontrivedtoincorporatetheagricultural
classesorthenobilityasmembersoftheirunions。Forthe
accomplishmentofthatobject，however，theylackedtherequisite
higherpoliticalinstinctsandknowledge。Theirpoliticalvision
seldomextendedbeyondtheirowncitywalls。
Twoonlyoftheseconfederations，SwitzerlandandtheSeven
UnitedProvinces，actuallycarriedoutthisincorporation，andthat
notastheresultofreflection，butbecausetheywerecompelledto
it，andfavouredbycircumstances，andforthatreasonthose
confederationsstillexist。TheSwissConfederationisnothingbut
aconglomerateofGermanimperialcities，establishedandcemented
togetherbythefreepopulationsoccupyingtheinterveningtracts
ofcountry。
TheremainingleaguesofGermancitieswereruinedowingto
theircontemptfortheruralpopulation，andfromtheirabsurd
burgherarrogance，whichdelightedinkeepingthatpopulationin
subjection，ratherthaninraisingthemtotheirownlevel。
Thesecitiescouldonlyhaveattainedunitybymeansofan
hereditaryroyalauthority。ButthisauthorityinGermanylayin
thehandsoftheprinces，who，inordertoavertrestraintsupon
theirownarbitraryrule，andtokeepboththecitiesandtheminor
noblesinsubjection，wereinterestedinresistingthe
establishmentofanhereditaryempire。
HencetheperseveringadherencetotheideaoftheImperial
RomanEmpireamongstGermankings。Onlyattheheadofarmieswere
theemperorsrulers；onlywhentheywenttowarweretheyableto
bringtogetherprincesandcitiesundertheirbanner。Hencetheir
protectionofciviclibertyinGermany，andtheirhostilitytoit
andpersecutionofitinItaly。
TheexpeditionstoRomenotonlyweakenedmoreandmorethe
kinglypowerinGermany，theyweakenedthoseverydynastiesthrough
which，withintheEmpire，intheheartofthenation，a
consolidatedpowermighthavegrownup。Butwiththeextinctionof
theHouseofHohenstaufenthenucleusofconsolidatedpowerwas
brokenupintoathousandfragments。
Thesenseoftheimpossibilityofconsolidatingtheheartof
thenationimpelledtheHouseofHapsburg，originallysoweakand
poor，toutilisethenation\'svigourinfoundingaconsolidated
hereditarymonarchyonthesouth-easternfrontieroftheGerman
Empire，bysubjugatingalienraces，apolicywhichinthenortheast
wasimitatedbytheMargravesofBrandenburg。Thusinthe
south-eastandnorth-easttherearosehereditarysovereignties
foundeduponthedominionoveralienraces，whileinthetwo
westerncornersofthelandtworepublicsgrewintoexistencewhich
continuallyseparatedthemselvesmoreandmorefromtheparent
nation；andwithin，inthenation\'sheart，disintegration，
impotence，anddissolutioncontinuallyprogressed。Themisfortunes
oftheGermannationwerecompletedbytheinventionsofgunpowder
andoftheartofprinting，therevivaloftheRomanlaw，the
Reformation，andlastlythediscoveryofAmericaandofthenew
routetoIndia。
Theintellectual，social，andeconomicrevolutionwhichwehave
describedproduceddivisionsanddisruptionbetweentheconstituent
membersoftheEmpire，disunionbetweentheprinces，disunion
betweenthecities，disunionevenbetweenthevariousguildsof
individualcities，andbetweenneighboursofeveryrank。The
energiesofthenationwerenowdivertedfromthepursuitof
industry，agriculture，trade，andnavigation；fromtheacquisition
ofcolonies，theameliorationofinternalinstitutions，infact
fromeverykindofsubstantialimprovement，thepeoplecontended
aboutdogmasandtheheritageoftheChurch。
AtthesametimecamethedeclineoftheHanseaticLeagueand
ofVenice，andwithitthedeclineofGermany\'swholesaletrade，
andofthepowerandlibertiesoftheGermancitiesbothinthe
northandinthesouth。
ThencametheThirtyYears\'Warwithitsdevastationsofall
territoriesandcities。HollandandSwitzerlandseceded，whilethe
fairestprovincesoftheEmpirewereconqueredbyFrance。Whereas
formerlysinglecities，suchasStrasburg，N黵nberg，Augsburg，had
surpassedinpowerentireelectorates，theynowsankintoutter
impotenceinconsequenceoftheintroductionofstandingarmies。
Ifbeforethisrevolutionthecitiesandtheroyalpowerhad
beenmoreconsolidated——ifakingexclusivelybelongingtothe
GermannationhadobtainedacompletemasteryoftheReformation，
andhadcarrieditoutintheinterestsoftheunity，power，and
freedomofthenation——howverydifferentlywouldthe
agriculture，industry，andtradeoftheGermanshavebeen
developed。Bythesideofconsiderationssuchasthese，how
pitiableandunpracticalseemsthattheoryofpoliticaleconomy
whichwouldhaveusreferthematerialwelfareofnationssolelyto
theproductionofindividuals，whollylosingsightofthefactthat
theproducingpowerofallindividualsistoagreatextent
determinedbythesocialandpoliticalcircumstancesofthenation。
TheintroductionoftheRomanlawweakenednonationsomuchasthe
German。Theunspeakableconfusionwhichitbroughtintothelegal
statusandrelationsofprivateindividuals，wasnottheworstof
itsbadeffects。Moremischievouswasitbyfar，inthatitcreated
acasteoflearnedmenandjuristsdifferingfromthepeoplein
spiritandlanguage，whichtreatedthepeopleasaclassunlearned
inthelaw，asminors，whichdeniedtheauthorityofallsound
humanunderstanding，whicheverywheresetupsecrecyintheroomof
publicity，which，livinginthemostabjectdependenceandliving
uponarbitrarypower，everywhereadvocateditanddefendedits
interests，everywheregnawedattherootsofliberty。Thuswesee
eventothebeginningoftheeighteenthcenturyinGermany，
barbarisminliteratureandlanguage，barbarisminlegislation，
Stateadministrationandadministrationofjustice；barbarismin
agriculture，declineofindustryandofalltradeuponalarge
scale，wantofunityandofforceinnationalcohesion；
powerlessnessandweaknessonallhandsindealingwithforeign
nations。
OnethingonlytheGermanshadpreserved；thatwastheir
aboriginalcharacter，theirloveofindustry，order，thrift，and
moderation，theirperseveranceandenduranceinresearchandin
business，theirhoneststrivingafterimprovement，anda
considerablenaturalmeasureofmorality，prudence，and
circumspection。
Thischaracterboththerulersandtheruledhadincommon。
Afterthealmosttotaldecayofnationalityandtherestorationof
tranquillity，peoplebeganinsomeindividualisolatedcirclesto
introduceorder，improvement，andprogress。Nowherewaswitnessed
morezealincherishingeducation，manners，religion，art，and
science；nowherewasabsolutepowerexercisedwithgreater
moderationorwithmoreadvantagetogeneralenlightenment，order，
andmorality，tothereformofabusesandtheadvancementofthe
commonwelfare。
ThefoundationfortherevivalofGermannationalitywas
undoubtedlylaidbytheGovernmentsthemselves，bytheir
conscientiousdevotionoftheproceedsofthesecularisedChurch
landstotheusesofeducationandinstruction，ofartandscience，
ofmoralityandobjectsofpublicutility。Bythesemeasureslight
madeitswayintotheStateadministrationandtheadministration
ofjustice，intoeducationandliterature，intoagriculture，
industry，andcommerce，andaboveallamongstthemasses。Thus
Germanydevelopedherselfinatotallydifferentwayfromallother
nations。Elsewherehighmentalculturerathergrewoutofthe
evolutionofthematerialpowersofproduction，whilstinGermany
thegrowthofmaterialpowersofproductionwastheoutcomechiefly
ofanantecedentintellectualdevelopment。Henceatthepresentday
thewholecultureoftheGermansistheoretical。Hencealsothose
manyunpracticalandoddtraitsintheGermancharacterwhichother
nationsnoticeinus。
ForthemomenttheGermansareinthepositionofanindividual
who，havingbeenformerlydeprivedoftheuseofhislimbs，first
learnedtheoreticallytheartsofstandingandwalking，ofeating
anddrinking，oflaughingandweeping，andthenonlyproceededto
puttheminpractice。HencecomestheGermanpredilectionfor
philosophicsystemsandcosmopolitandreams。Theintellect，which
wasnotallowedtostirintheaffairsofthisworld，stroveto
exerciseitselfintherealmsofspeculation。Hence，too，wefind
thatnowherehasthedoctrineofAdamSmithandofhisdisciples
obtainedalargerfollowingthaninGermany；nowhereelsehave
peoplemorethoroughlybelievedinthecosmopolitanmagnanimityof
MessrsCanningandHuskisson。
ForthefirstprogressinmanufacturesGermanyisindebtedto
therevocationoftheEdictofNantesandtothenumerousrefugees
whobythatinsanemeasureweredriventoemigratetoalmostevery
partofGermany，andestablishedeverywheremanufacturesofwool，
silk，jewellery，hats，glass，china，gloves，andindustriesof
everykind。
ThefirstGovernmentmeasuresforthepromotionofmanufactures
inGermanywereintroducedbyAustriaandPrussia；inAustriaunder
CharlesVIandMariaTheresa，butevenmoreunderJosephII。
Austriahadformerlysufferedenormouslyfromthebanishmentofthe
Protestants，hermostindustriouscitizens；norcanitbeexactly
affirmedthatshedistinguishedherselfintheimmediatesequelby
promotingenlightenmentandmentalculture。Afterwards，in
consequenceofaprotectivetariff，improvedsheepfarming，better
roads，andotherencouragements，industrymadeconsiderablestrides
evenunderMariaTheresa。
Moreenergeticallystillwasthisworkpushedforwardunder
JosephIIandwithimmenselygreatersuccess。Atfirst，indeed，the
resultscouldnotbecalledimportant，becausetheEmperor，
accordingtohiswont，wastooprecipitateintheseasinallhis
otherschemesofreform，andAustria，inrelationtootherstates，
stilloccupiedtoobackwardaposition。Hereaselsewhereitbecame
evidentthatonemightget\'toomuchofagoodthing\'atonce，and
thatprotectiveduties，inordertoworkbeneficiallyandnotasa
disturbingelementuponanexistingstateofthings，mustnotbe
madetoohighatthecommencement。Butthelongerthatsystem
continued，themoreclearlywasitswisdomdemonstrated。Tothat
tariffAustriaisindebtedforherpresentprosperousindustries
andtheflourishingconditionofheragriculture。
TheindustryofPrussiahadsufferedmorethanthatofany
othercountryfromthedevastationsoftheThirtyYears\'War。Her
mostimportantindustry，themanufactureofclothintheMargravate
ofBrandenburg，wasalmostentirelyannihilated。Themajorityof
clothworkershadmigratedtoSaxony，whileEnglishimportsatthe
timeheldeverycompetitionincheck。TotheadvantageofPrussia
nowcametherevocationoftheEdictofNantesandthepersecution
oftheProtestantsinthePalatinateandinSalzburg。Thegreat
ElectorsawataglancewhatElizabethbeforehimhadsoclearly
understood。Inconsequenceofthemeasuresdevisedbyhimagreat
numberofthefugitivesdirectedtheirstepstoPrussia，fertilised
theagriculturalindustryoftheland，establishedalargenumber
ofmanufactures，andcultivatedscienceandart。Allhissuccessors
followedinhisfootsteps，nonewithmorezealthanthegreatKing——
greaterbyhispolicyintimesofpeacethanbyhissuccessesin
war。Spaceiswantingtotreatatlengthofthecountlessmeasures
wherebyFrederickIIattractedtohisdominionslargenumbersof
foreignagriculturists，broughttractsofwastelandinto
cultivation，andestablishedthecultivationofmeadows，ofcattle
fodder，vegetables，potatoes，andtobacco，improvedsheepfarming，
cattlebreeding，horsebreeding，theuseofmineralmanures，&c。，
bywhichmeanshecreatedcapitalandcreditforthebenefitofthe
agriculturalclasses。Stillmorethanbythesedirectmeasureshe
promotedindirectlytheinterestsofagriculturebymeansofthose
branchesofmanufacturewhich，inconsequenceofthecustomstariff
andtheimprovedmeansoftransportwhichheestablished，aswell
astheestablishmentofabank，madegreateradvancesinPrussia
thaninanyotherGermanstate，notwithstandingthatthatcountry\'s
geographicalposition，anditsdivisionintoseveralprovinces
separatedfromoneanother，weremuchlessfavourableforthe
successofsuchmeasures，andthatthedisadvantagesofacustoms
cordon，namely，thedamagingeffectsofacontrabandtrade，mustbe
feltmoreacutelytherethaningreatstateswhoseterritoriesare
compactandwellprotectedbyboundariesofseas，rivers，and
chainsofmountains。
Atthesametimewearenowiseanxious，undercoverofthis
eulogy，todefendthefaultsofthesystem，suchas，forexample，
therestrictionslaidupontheexportationofrawmaterial。Still，
thatindespiteofthesefaultsthenationalindustrywas
considerablyadvancedbyit，noenlightenedandimpartialhistorian
wouldventuretodispute。
Toeveryunprejudicedmind，uncloudedbyfalsetheories，it
mustbeclearthatPrussiagainedhertitletorankamongstthe
Europeanpowersnotsomuchbyherconquestsasbyherwisepolicy
inpromotingtheinterestsofagriculture，industry，andtrade，and
byherprogressinliteratureandscience；andallthiswasthe
workofonegreatgeniusalone。
AndyettheCrownwasnotyetsupportedbytheenergyoffree
institutions，butsimplybyanadministrativesystem，wellordered
andconscientious，butunquestionablytrammelledbythedead
mechanicalroutineofahierarchicalbureaucracy。
MeanwhilealltherestofGermanyhadforcenturiesbeenunder
theinfluenceoffreetrade——thatistosay，thewholeworldwas
freetoexportmanufacturedproductsintoGermany，whilenoone
consentedtoadmitGermanmanufacturedgoodsintoothercountries。
Thisrulehaditsexceptions，butonlyafew。Itcannot，however，
beassertedthatthepredictionsandthepromisesoftheschool
aboutthegreatbenefitsoffreetradehavebeenverifiedbythe
experienceofthiscountry，foreverywherethemovementwasrather
retrogradethanprogressive。CitieslikeAugsburg，N黵nberg，
Mayence，Cologne，&c。，numberednomorethanathirdorafourth
partoftheirformerpopulation，andwarswereoftenwishedfor
merelyforthesakeofgettingridofavaluelesssurplusof
produce。
ThewarscameinthetrainoftheFrenchRevolution，andwith
themEnglishsubsidiestogetherwithincreasedEnglishcompetition。
Henceanewdownwardtendencyinmanufacturescoupledwithan
increaseinagriculturalprosperity，which，however，wasonly
apparentandtransitory。
NextfollowedNapoleon\'sContinentalBlockade，aneventwhich
markedanerainthehistoryofbothGermanandFrenchindustry，
notwithstandingthatMons。J。B。Say，AdamSmith\'smostfamous
pupil，denounceditasacalamity。Whatevertheorists，andnotably
theEnglish，mayurgeagainstit，thismuchisclearlymadeout——
andallwhoareconversantwithGermanindustrymustattestit，for
thereisabundantevidenceofthefactinallstatisticalwritings
ofthatday——that，asaresultofthisblockade，German
manufacturesofallandeverykindforthefirsttimebegantomake
animportantadvance；1*thatthenonlydidtheimprovedbreeding
ofsheepwhichhadbeencommencedsometimebeforebecomegeneral
andsuccessful；thatthenonlywasactivitydisplayedinimproving
themeansoftransport。Itistrue，ontheotherhand，thatGermany
lostthegreaterpartofherformerexporttrade，especiallyin
linens。Yetthegainwasconsiderablygreaterthantheloss，
particularlyforthePrussianandAustrianmanufacturing
establishments，whichhadpreviouslygainedastartoverallother
manufactoriesintheGermanstates。
ButwiththereturnofpeacetheEnglishmanufacturersagain
enteredintoafearfulcompetitionwiththeGerman；forduringthe
reciprocalblockade，inconsequenceofnewinventionsandagreat
andalmostexclusiveexporttradetoforeignlands，the
manufactoriesoftheislandhadfaroutstrippedthatofGermany；
andforthisreason，aswellasbecauseoftheirlargeacquired
capital，theformerwerefirstinapositiontosellatmuchlower
prices，tooffermuchsuperiorarticles，andtogivemuchlonger
creditthanthelatter，whichhadstilltobattlewiththe
difficultiesofafirstbeginning。Consequentlygeneralruin
followedandloudwailingsamongstthelatter，especiallyinthe
lowerRhenishprovinces，inthoseregionswhich，havingformerly
belongedtoFrance，werenowexcludedfromtheFrenchmarket。
Besides，thePrussiancustomstariffhadundergonemanychangesin
thedirectionofabsolutefreetrade，andnolongeraffordedany
sufficientprotectionagainstEnglishcompetition。Atthesametime
thePrussianbureaucracylongstroveagainstthecountry\'scryfor
help。TheyhadbecometoostronglyimbuedwithAdamSmith\'stheory
attheuniversitiestodiscernthewantofthetimeswith
sufficientpromptness。Thereevenstillexistedpolitical
economistsinPrussiawhoharbouredthebolddesignofrevivingthe
long-exploded\'physiocratic\'system。Meanwhilethenatureofthings
heretooprovedamightierforcethanthepoweroftheories。The
cryofdistressraisedbythemanufacturers，hailingasitdidfrom
districtsstillyearningaftertheirformerstateofconnection
withFrance，whosesympathiesitwasnecessarytoconciliate，could
notbesafelydisregardedtoolong。Moreandmoretheopinion
spreadatthetimethattheEnglishGovernmentwerefavouringinan
unprecedentedmanneraschemeforgluttingthemarketsonthe
Continentwithmanufacturedgoodsinordertostiflethe
Continentalmanufacturesinthecradle。Thisideahasbeen
ridiculed，butitwasnaturalenoughthatitshouldprevail，first，
becausethisgluttingreallytookplaceinsuchamannerasthough
ithadbeendeliberatelyplanned；and，secondly，becausea
celebratedmemberofParliament，MrHenryBroughamafterwardsLord
Brougham，hadopenlysaid，in1815，\'thatitwaswellworthwhile
toincuralossontheexportationofEnglishmanufacturesinorder
tostifleinthecradletheforeignmanufactures。\'2*Thisideaof
thislord，sincesorenownedasaphilanthropist，cosmopolist，and
Liberal，wasrepeatedtenyearslateralmostinthesamewordsby
MrHume，amemberofParliamentnotlessdistinguishedfor
liberalism，whenheexpressedawishthat\'Continentalmanufactures
mightbenippedinthebud。\'
AtlengththeprayerofthePrussianmanufacturersfounda
hearing——lateenough，indeed，asmustbeadmittedwhenone
considershowpainfulitistobewrestlingwithdeathyearafter
year——butatlasttheircrywasheardtorealgoodpurpose。The
Prussiancustomstariffof1818answered，forthetimeinwhichit
wasestablished，alltherequirementsofPrussianindustry，without
inanywayoverdoingtheprincipleofprotectionorunduly
interferingwiththecountry\'sbeneficialintercoursewithforeign
countries。Itsscaleofdutieswasmuchlowerthanthoseofthe
EnglishandFrenchcustomssystems，andnecessarilyso；forinthis
casetherewasnoquestionofagradualtransitionfroma
prohibitivetoaprotectivesystem，butofachangefromfreetrade
socalledtoaprotectivesystem。Anothergreatadvantageofthis
tariff，consideredasawhole，wasthatthedutiesweremostly
leviedaccordingtotheweightofgoodsandnotaccordingtotheir
value。Bythismeansnotonlyweresmugglingandtoolowvaluations
obviated，butalsothegreatobjectwasgained，thatarticlesof
generalconsumption，whicheverycountrycanmosteasily
manufactureforitself，andthemanufactureofwhich，becauseof
theirgreattotalmoneyvalue，isthemostimportantofanyforthe
country，wereburdenedwiththehighestimportduty，whilethe
protectivedutyfelllowerandlowerinproportiontothefineness
andcostlinessofthegoods，alsoasthedifficultyofmakingsuch
articlesathomeincreased，andalsoasboththeinducementsand
thefacilitiesforsmugglingincreased。
Butthismodeofchargingthedutyupontheweightwouldof
course，forveryobviousreasons，affectthetradewiththe
neighbouringGermanstatesmuchmoreinjuriouslythanthetrade
withforeignnations。Thesecond-rateandsmallerGermanstateshad
nowtobear，inadditiontotheirexclusionfromtheAustrian，
French，andEnglishmarkets，almosttotalexclusionfromthatof
Prussia，whichhitthemalltheharder，sincemanyofthemwere
eithertotallyoringreatparthemmedinbyPrussianprovinces。
JustinproportionasthesemeasurespacifiedthePrussian
manufacturers，wastheloudnessoftheoutcryagainstthemonthe
partofthemanufacturersoftheotherGermanstates。Addtothat，
thatAustriahadshortlybeforeimposedrestrictionsonthe
importationofGermangoodsintoItaly，notablyofthelinensof
UpperSwabia。Restrictedonallsidesintheirexporttradeto
smallstripsofterritory，andfurtherbeingseparatedfromone
anotherbysmallerinternallinesofcustomsduties，the
manufacturersofthesecountrieswerewell-nighindespair。
Itwasthisstateofurgentnecessitywhichledtothe
formationofthatprivateunionoffivetosixthousandGerman
manufacturersandmerchants，whichwasfoundedintheyear1819at
thespringfairheldinFrankfort-on-the-Main，withtheobjectof
abolishingalltheseparatetariffsofthevariousGermanstates，
andontheotherhandofestablishingacommontradeand
custom-housesystemforthewholeofGermany。
Thisunionwasformallyorganised。Itsarticlesofassociation
weresubmittedtotheDiet，andtoalltherulersandgovernments
oftheGermanstatesforapproval。IneveryGermantownalocal
correspondentwasappointed；eachGermanstatehaditsprovincial
correspondent。Allthemembersandcorrespondentsboundthemselves
topromotetheobjectsoftheuniontothebestoftheirability。
ThecityofN黵nbergwasselectedasthehead-quartersofthe
union，andauthorisedtoappointacentralcommittee，whichshould
directthebusinessoftheunion，undertheadviceofanassessor，
forwhichofficetheauthorofthisbookwasselected。Inaweekly
journaloftheunion，bearingthetitleof\'Organdesdeutschen
Handels-undFabrikantenstandes，\'3*thetransactionsandmeasures
ofthecentralcommitteeweremadeknown，andideas，proposals，
treatises，andstatisticalpapersrelatingtotheobjectsofthe
unionwerepublished。EachyearatthespringfairinFrankforta
generalmeetingoftheunionwasheld，atwhichthecentral
committeegaveanaccountofitsstewardship。
AfterthisunionhadpresentedapetitiontotheGermanDiet
showingtheneedandexpediencyofthemeasuresproposedbytheir
organisation，thecentralcommitteeatN黵nbergcommenced
operations。DeputationsweresenttoeveryGermanCourt，and
finallyonetotheCongressofPlenipotentiariesheldatViennain
1820。Atthiscongresssomuchatleastwasgained，thatseveralof
thesecond-classandsmallerGermanstatesagreedtoholda
separatecongressonthesubjectatDarmstadt。Theeffectofthe
deliberationsofthislast-namedcongresswas，first，tobring
aboutaunionbetweenW黵tembergandBavaria；secondly，aunionof
someoftheGermanstatesandPrussia；thenaunionbetweenthe
middleGermanstates；lastly，andchieflyinconsequenceofthe
exertionsofFreiherrvonCottatofusetheabove-namedthree
unionsintoageneralcustomsconfederation，sothatatthis
presenttime，withtheexceptionofAustria，thetwoMecklenburgs，
Hanover，andtheHanseTowns，thewholeofGermanyisassociatedin
asinglecustomsunion，whichhasabolishedtheseparatecustoms
linesamongstitsmembers，andhasestablishedauniformtariffin
commonagainsttheforeigner，therevenuederivedfromwhichis
distributedprorataamongsttheseveralstatesaccordingtotheir
populations。
Thetariffofthisunionissubstantiallythesameasthat
establishedbyPrussiain1818；thatistosay，itisamoderate
protectionisttariff。
Inconsequenceofthisunificationofcustoms，theindustry，
trade，andagricultureoftheGermanstatesformingtheunionhave
alreadymadeenormousstrides。
NOTES：
1。ThesystemmustnecessarilyhaveaffectedFranceinadifferent
mannerthanGermany，becauseGermanywasmostlyshutoutfromthe
Frenchmarkets，whiletheGermanmarketswereallopentothe
Frenchmanufacturer。
2。ReportoftheCommitteeofCommerceandManufacturestothe
HouseofRepresentativesoftheCongressoftheUnitedStates，Feb。
13，1816。
3。OrganoftheGermanCommercialandManufacturingInterests。
Chapter8
TheRussians
Russiaowesherfirstprogressincivilisationandindustryto
herintercoursewithGreece，tothetradeoftheHanseaticTowns
withNovgorodandafterthedestructionofthattownbyIvan
WassiljewitschtothetradewhicharosewiththeEnglishand
Dutch，inconsequenceofthediscoveryofthewatercommunication
withthecoastsoftheWhiteSea。
Butthegreatincreaseofherindustry，andespeciallyofher
civilisation，datesfromthereignofPetertheGreat。Thehistory
ofRussiaduringthelasthundredandfortyyearsoffersamost
strikingproofofthegreatinfluenceofnationalunityand
politicalcircumstancesontheeconomicwelfareofanation。
Totheimperialpowerwhichestablishedandmaintainedthis
unionofinnumerableBarbarichordes，Russiaowesthefoundations
ofhermanufactures，hervastprogressinagricultureand
population，thefacilitiesofferedtoherinteriortrafficbythe
constructionofcanalsandroads，averylargeforeigntrade，and
herstandingasacommercialpower。
Russia\'sindependentsystemoftradedates，however，onlyfrom
theyear1821。
UnderCatherineII。tradeandmanufactureshadcertainlymade
someprogress，onaccountoftheprivilegessheofferedtoforeign
artisansandmanufacturers；butthecultureofthenationwasstill
tooimperfecttoallowofitsgettingbeyondthefirststagesin
themanufactureofiron，glass，linen，&c。，andespeciallyinthose
branchesofindustryinwhichthecountrywasspeciallyfavouredby
itsagriculturalandmineralwealth。
Besidesthis，furtherprogressinmanufactureswouldnot，at
thattime，havebeenconducivetotheeconomicinterestsofthe
nation。Ifforeigncountrieshadtakeninpaymenttheprovisions，
rawmaterial，andrudemanufactureswhichRussiawasableto
furnishif，further，nowarsandexterioreventshadintervened，
Russiabymeansofintercoursewithnationsmoreadvancedthan
herselfwouldhavebeenmuchmoreprosperous，andherculturein
generalwouldinconsequenceofthisintercoursehavemadegreater
progressthanunderthemanufacturingsystem。Butwarsandthe
Continentalblockade，andthecommercialregulationsofforeign
nations，compelledhertoseekprosperityinotherwaysthanbythe
exportofrawmaterialsandtheimportofmanufactures。In
consequenceofthese，thepreviouscommercialrelationsofRussia
byseaweredisturbed。Heroverlandtradewiththewestern
continentcouldnotmakeupfortheselosses；andshefoundit
necessary，therefore，toworkupherrawmaterialsherself。After
theestablishimentofthegeneralpeace，adesirearosetoreturn
totheoldsystem。TheGovernment，andeventheEmperor，were
inclinedtofavourfreetrade。InRussia，thewritingsofHerr
StorchenjoyedashighareputationasthoseofMonsSayin
Germany。Peoplewerenotalarmedbythefirstshockswhichthehome
manufactories，whichhadarisenduringtheContinentalBlockade，
sufferedowingtoEnglishcompetition。Thetheoristsmaintained
thatiftheseshockscouldonlybeenduredonceforall，the
blessingsoffreetradewouldfollow。Andindeedthecircumstances
ofthecommercialworldatthetimewereuncommonlyfavourableto
thistransition。ThefailureofcropsinWesternEuropecauseda
greatexportofagriculturalproduce，bywhichRussiaforalong
timegainedamplemeanstobalanceherlargeimportationof
manufacturedgoods。
ButwhenthisextraordinarydemandforRussianagricultural
producehadceased，when，ontheotherhand，Englandhadimposed
restrictionsontheimportofcornforthebenefitofher
aristocracy，andonthatofforeigntimberforthebenefitof
Canada，theruinofRussia\'shomemanufactoriesandtheexcessive
importofforeignmanufacturesmadeitselfdoublyfelt。Although
peoplehadformerly，withHerrStorch，consideredthebalanceof
tradeasachimera，tobelieveintheexistenceofwhichwas，for
areasonableandenlightenedman，nolessoutrageousandridiculous
thanthebeliefinwitchcraftintheseventeenthcenturyhadbeen，
itwasnowseenwithalarmthattheremustbesomethingofthe
natureofabalanceoftradeasbetweenindependentnations。The
mostenlightenedanddiscerningstatesmanofRussia，Count
Nesselrode，didnothesitatetoconfesstothisbelief。Hedeclared
inanofficialcircularof1821：\'Russiafindsherselfcompelledby
circumstancestotakeupanindependentsystemoftrade；the
productsoftheempirehavefoundnoforeignmarket，thehome
manufacturesareruinedoronthepointofbeingso，alltheready
moneyofthecountryflowstowardsforeignlands，andthemost
substantialtradingfirmsarenearlyruined。\'Thebeneficial
effectsoftheRussianprotectivesystemcontributednolessthan
theinjuriousconsequencesofthere-establishmentoffreetrade
haddonetobringintodiscredittheprinciplesandassertionsof
thetheorists。Foreigncapital，talent，andlabourflowedintothe
countryfromallcivilisedlands，especiallyfromEnglandand
Germany，inordertoshareintheadvantagesofferedbythehome
manufactories。
ThenobilityimitatedthepolicyoftheEmpireatlarge。As
theycouldobtainnoforeignmarketfortheirproduce，they
attemptedtosolvetheprobleminverselybybringingthemarket
intoproximitywiththeproduce——theyestablishedmanufactories
ontheirestates。Inconsequenceofthedemandforfinewool
producedbythenewlycreatedwoollenmanufactories，thebreedof
sheepwasrapidlyimproved。Foreigntradeincreased，insteadof
declining，particularlythatwithChina，Persia，andother
neighbouringcountriesofAsia。Thecommercialcrisesentirely
ceased，andoneneedonlyreadthelatestreportsoftheRussian
MinisterofCommercetobeconvincedthatRussiaowesalarge
measureofprosperitytothissystem，andthatsheisincreasing
hernationalwealthandpowerbyenormousstrides。
ItisfoolishforGermanstotrytomakelittleofthis
progressandtocomplainoftheinjurywhichithascausedtothe
north-easternprovincesofGermany。Eachnation，likeeach
individual，hasitsowninterestsnearestatheart。Russiaisnot
calledupontocareforthewelfareofGermany；Germanymustcare
forGermany，andRussiaforRussia。Itwouldbemuchbetter，
insteadofcomplaining，insteadofhopingandwaitingandexpecting
theMessiahofafuturefreetrade，tothrowthecosmopolitan
systemintothefireandtakealessonfromtheexampleofRussia。
ThatEnglandshouldlookwithjealousyonthiscommercial
policyofRussiaisverynatural。ByitsmeansRussiahas
emancipatedherselffromEngland，andhasqualifiedherselfto
enterintocompetitionwithherinAsia。EvenifEngland
manufacturesmorecheaply，thisadvantagewillinthetradewith
CentralAsiabeoutweighedbytheproximityoftheRussianEmpire
andbyitspoliticalinfluence。AlthoughRussiamaystillbe，in
comparisonwithEurope，butaslightlycivilisedcountry，yet，as
comparedwithAsia，sheisacivilisedone。
Meantime，itcannotbedeniedthatthewantofcivilisationand
politicalinstitutionswillgreatlyhinderRussiainherfurther
industrialandcommercialprogress，especiallyiftheImperial
Governmentdoesnotsucceedinharmonisingherpoliticalconditions
withtherequirementsofindustry，bytheintroductionofefficient
municipalandprovincialconstitutions，bythegraduallimitation
andfinalabolitionofserfdom，bytheformationofaneducated
middleclassandafreepeasantclass，andbythecompletionof
meansofinternaltransportandofcommunicationwithCentralAsia。
ThesearetheconqueststowhichRussiaiscalledinthepresent
century，andonthemdependsherfurtherprogressinagriculture
andindustry，intrade，navigationandnavalpower。Butinorderto
renderreformsofthiskindpossibleandpracticable，theRussian
aristocracymustfirstlearntofeelthattheirownmaterial
interestswillbemostpromotedbythem。
Chapter9
TheNorthAmericans
Afterourhistoricalexaminationofthecommercialpolicyof
theEuropeannations，withtheexceptionofthosefromwhichthere
isnothingofimportancetobelearnt，wewillcastaglancebeyond
theAtlanticOceanatapeopleofcolonistswhichhasbeenraising
itselfalmostbeforeoureyesfromtheconditionofentire
dependenceonthemothercountry，andofseparationintoanumber
ofcolonialprovinceshavingnokindofpoliticalunionbetween
themselves，tothatofaunited，well-organised，free，powerful，
industrious，rich，andindependentnation，whichwillperhapsin
thetimeofourgrandchildrenexaltitselftotherankofthefirst
navalandcommercialpowerintheworld。Thehistoryofthetrade
andindustryofNorthAmericaismoreinstructiveforoursubject
thananyothercanbe，Becauseherethecourseofdevelopment
proceedsrapidly，theperiodsoffreetradeandprotectionfollow
closelyoneachother，theirconsequencesstandoutclearlyand
sharplydefined，andthewholemachineryofnationalindustryand
Stateadministrationmovesexposedbeforetheeyesofthe
spectator。
TheNorthAmericancolonieswerekept，inrespectoftradeand
industry，insuchcompletethraldombythemothercountry，thatno
sortofmanufacturewaspermittedtothembeyonddomestic
manufactureandtheordinaryhandicrafts。Solateastheyear1750
ahatmanufactoryintheStateofMassachusettscreatedsogreat
sensationandjealousyinParliament，thatitdeclaredallkindsof
manufactoriestobe\'commonnuisances，\'notexceptingironworks，
notwithstandingthatthecountrypossessedinthegreatest
abundancealltherequisitematerialsforthemanufactureofiron。
Evenmorerecently，namely，in1770，thegreatChatham，madeuneasy
bythefirstmanufacturingattemptsoftheNewEnglanders，declared
thatthecoloniesshouldnotbepermittedtomanufacturesomuchas
ahorseshoenail。
ToAdamSmithbelongsthemeritofhavingfirstpointedoutthe
injusticeofthispolicy。
Themonopolyofallmanufacturingindustrybythemother
countrywasoneofthechiefcausesoftheAmericanRevolution；the
teadutymerelyaffordedanopportunityforitsoutbreak。
Freedfromrestrictions，inpossessionofallmaterialand
intellectualresourcesformanufacturingwork，andseparatedfrom
thatnationfromwhichtheyhadpreviouslybeensuppliedwith
manufacturedgoods，andtowhichtheyhadbeensellingtheir
produce，andthusthrownwithalltheirwantsupontheirown
resources：manufacturesofeverykindintheNorthAmericanfree
statesreceivedamightystimulusduringthewarofrevolution，
whichinitsturnhadtheeffectofbenefitingagriculturetosuch
anextentthat，notwithstandingtheburdensandthedevastation
consequentuponthethenrecentwar，thevalueoflandandtherate
ofwagesinthesestateseverywhereroseimmenselybutas，after
thepeaceofParis，thefaultyconstitutionofthefreestatesmade
theintroductionofaunitedcommercialsystemimpossible，and
consequentlyEnglishmanufacturedgoodsagainobtainedfree
admission，competitionwithwhichthenewlyestablishedAmerican
manufactorieshadnotstrengthenoughtobear，theprosperitywhich
hadarisenduringthewarvanishedmuchmorequicklythanithad
grownup。AnoratorinCongresssaidafterwardsofthiscrisis：\'We
didbuy，accordingtotheadviceofmodemtheorists，wherewecould
buycheapest，andourmarketswerefloodedwithforeigngoods；
EnglishgoodssoldcheaperinourseaporttownsthaninLiverpool
orLondon。Ourmanufacturerswerebeingruined；ourmerchants，even
thosewhothoughttoenrichthemselvesbyimportation，became
bankrupt；andallthesecausestogetherweresodetrimentalto
agriculture，thatlandedpropertybecameverygenerallyworthless，
andconsequentlybankruptcybecamegeneralevenamongour
landowners。\'
Thisconditionofthingswasbynomeanstemporary；itlasted
fromthepeaceofParisuntiltheestablishmentofthefederal
constitution，andcontributedmorethananyothercircumstanceto
bringaboutamoreintimateunionbetweenthefreestatesandto
impelthemtogivetoCongressfullpowersforthemaintenanceof
aunitedcommercialpolicy。Congresswasinundatedwithpetitions
fromallthestates——NewYorkandSouthCarolinanotexcepted——
infavourofprotectivemeasuresforinternalindustry；and
Washington，onthedayofhisinauguration，woreasuitof
home-manufacturedcloth，\'inorder，\'saidacontemporaryNewYork
journal，\'inthesimpleandimpressivemannersopeculiartothis
greatman，togivetoallhissuccessorsinofficeandtoall
futurelegislatorsamemorablelessonuponthewayinwhichthe
welfareofthiscountryistobepromoted。\'Althoughthefirst
Americantariff1789leviedonlylightdutiesontheimportation
ofthemostimportantmanufacturedarticles，ityetworkedso
beneficiallyfromtheveryfirstyearsofitsintroductionthat
Washingtoninhis\'Message\'in1791wasabletocongratulatethe
nationontheflourishingconditionofitsmanufactures，
agriculture，andtrade。
Theinadequacyofthisprotectionwas，however，soonapparent；
fortheeffectoftheslightimportdutieswaseasilyovercomeby
Englishmanufacturers，whohadtheadvantageofimprovedmethodsof
production。Congressdidcertainlyraisethedutyonthemost
importantmanufacturedarticlestofifteenpercent，butthiswas
nottilltheyear1804，whenitwascompelled，owingtodeficient
customsreceipts，toraisemorerevenue，andlongaftertheinland
manufacturershadexhaustedeveryargumentinfavourofhavingmore
protection，whiletheinterestsopposedtothemwereequally
strenuousupontheadvantagesoffreetradeandtheinjurious
effectsofhighimportduties。
Instrikingcontrastwiththeslightprogresswhichhad，onthe
whole，beenmadebythemanufacturersofthecountry，stoodthe
improvedconditionofitsnavigation，whichsincetheyear1789，
uponthemotionofJamesMadison，hadreceivedeffectual
protection。Fromatonnageof200，000in1789theirmercantile
marinehadincreasedin1801tomorethan1，000，000tons。Underthe
protectionofthetariffof1804，themanufacturinginterestofthe
UnitedStatescouldjustbarelymaintainitselfagainsttheEnglish
manufactories，whichwerecontinuallybeingimproved，andhad
attainedacolossalmagnitude，anditwoulddoubtlesshavehadto
succumbentirelytoEnglishcompetition，haditnotbeenforthe
helpoftheembargoanddeclarationofwarof1812。Inconsequence
oftheseevents，justasatthetimeoftheWarofIndependence，
theAmericanmanufactoriesreceivedsuchanextraordinaryimpetus
thattheynotonlysufficedforthehomedemand，butsoonbeganto
exportaswell。AccordingtoareportoftheCommitteeonTradeand
ManufacturestoCongressin1815，100，000handswereemployedin
thewoollenandcottonmanufacturesalone，whoseyearlyproduction
amountedtothevalueofmorethansixtymilliondollars。Asinthe
daysoftheWarofIndependence，andasanecessaryconsequenceof
theincreaseinmanufacturingpower，thereoccurredarapidrisein
allprices，notonlyofproduceandinwages，butalsooflanded
property，andhenceuniversalprosperityamongstlandowners，
labourers，andallengagedininternaltrade。
AfterthepeaceofGhent，Congress，warnedbytheexperienceof
1786，decreedthatforthefirstyearthepreviousdutiesshouldbe
doubled，andduringthisperiodthecountrycontinuedtoprosper。
Coerced，however，bypowerfulprivateinterestswhichwereopposed
tothoseofthemanufacturers，andpersuadedbytheargumentsof
theorists，itresolvedintheyear1816tomakeaconsiderable
reductionintheimportduties，whereuponthesameeffectsof
externalcompetitionreappearedwhichhadbeenexperiencedfrom
1786to1789，viz。ruinofmanufactories，unsaleabilityofproduce，
fallinthevalueofpropertyandgeneralcalamityamong
landowners。Afterthecountryhadforasecondtimeenjoyedinwar
timetheblessingsofpeace，itsuffered，forasecondtime，
greaterevilsthroughpeacethanthemostdevastatingwarcould
havebroughtuponit。Itwasonlyintheyear1824，afterthe
effectsoftheEnglishcornlawshadbeenmademanifesttothefull
extentoftheirunwisetendencythuscompellingtheagricultural
interestofthecentral，northern，andwesternstatestomake
commoncausewiththemanufacturinginterest，thatasomewhat
highertariffwaspassedinCongress，which，however，asMr
Huskissonimmediatelybroughtforwardcounteractingmeasureswith
theviewofparalysingtheeffectsofthistariffonEnglish
competition，soonprovedinsufficient，andhadtobesupplemented
bythetariffof1828，carriedthroughCongressafteraviolent
struggle。
Recentlypublishedofficialstatistics1*ofMassachusetts
giveatolerableideaofthestarttakenbythemanufacturesofthe
UnitedStates，especiallyinthecentralandnorthernstatesofthe
Union，inconsequenceoftheprotectivesystem，andinspiteofthe
subsequentmodificationofthetariffof1828。Intheyear1837，
therewereinthisStateMassachusetts282cottonmillsand
565，031spindlesinoperation，employing4，997maleand14，757
femalehands；37，275，917poundsofcottonwereworkedup，and
126，000，000yardsoftextilefabricsmanufactured，ofthevalueof
13，056，659dollars，producedbyacapitalof14，369，719dollars。
Inthewoollenmanufacturetherewere192mills，501machines，
and3，612maleand3，485femaleoperativesemployed，whoworkedup
10，858，988poundsofwool，andproduced11，313，426yardsofcloth，
ofthevalueof10，399，807dollarsonaworkingcapitalof
5，770，750dollars。
16，689，877pairsofshoesandbootsweremanufacturedlarge
quantitiesofshoesbeingexportedtothewesternstates，tothe
valueof14，642，520dollars。
Theotherbranchesofmanufacturestoodinrelativeproportion
totheabove。
ThecombinedvalueofthemanufacturesoftheStatededucting
shipbuildingamountedtoover86milliondollars，withaworking
capitalofabout60milliondollars。
Thenumberofoperativesmenwas117，352；andthetotal
numberofinhabitantsoftheStatein1837was701，331。
Misery，brutality，andcrimeareunknownamongthe
manufacturingpopulationhere。Onthecontrary，amongthenumerous
maleandfemalefactoryworkersthestrictestmorality，
cleanliness，andneatnessindress，exist；librariesare
establishedtofurnishthemwithusefulandinstructivebooks；the
workisnotexhausting，thefoodnourishingandgood。Mostofthe
womensaveadowryforthemselves。2*
Thislastisevidentlytheeffectofthecheappricesofthe
commonnecessariesoflife，lighttaxation，andanequitable
customstariff。LetEnglandrepealtherestrictionsontheimport
ofagriculturalproduce，decreasetheexistingtaxesonconsumption
byone-halfortwo-thirds，coverthelossbyanincometax，andher
factoryworkerswillbeputintothesameposition。
Nonationhasbeensomisconstruedandsomisjudgedasrespects
itsfuturedestinyanditsnationaleconomyastheUnitedStatesof
NorthAmerica，bytheoristsaswellasbypracticalmen。AdamSmith
andJ。B。SayhadlaiditdownthattheUnitedStateswere，\'like
Poland，\'destinedforagriculture。Thiscomparisonwasnotvery
flatteringfortheunionofsomedozenofnew，aspiring，youthful
republics，andtheprospectthusheldouttothemforthefuture
notveryencouraging。Theabove-mentionedtheoristshad
demonstratedthatNatureherselfhadsingledoutthepeopleofthe
UnitedStatesexclusivelyforagriculture，solongastherichest
arablelandwastobehadintheircountryforameretrifle。Great
wasthecommendationwhichhadbeenbestoweduponthemforso
willinglyacquiescinginNature\'sordinances，andthussupplying
theoristswithabeautifulexampleofthesplendidworkingofthe
principleoffreetrade。Theschool，however，soonhadto
experiencethemortificationoflosingthiscogentproofofthe
correctnessandapplicabilityoftheirtheoriesinpractice，and
hadtoendurethespectacleoftheUnitedStatesseekingtheir
nation\'swelfareinadirectionexactlyopposedtothatofabsolute
freedomoftrade。
Asthisyouthfulnationhadpreviouslybeentheveryappleof
theeyeoftheschoolmen，soshenowbecametheobjectofthe
heaviestcondemnationonthepartofthetheoristsofeverynation
inEurope。Itwassaidtobeaproofoftheslightprogressofthe
NewWorldinpoliticalknowledge，thatwhiletheEuropeannations
werestrivingwiththemosthonestzealtorenderuniversalfree
tradepossible，whileEnglandandFranceespeciallywereactually
engagedinendeavouringtomakeimportantadvancestowardsthis
greatphilanthropicobject，theUnitedStatesofNorthAmericawere
seekingtopromotetheirnationalprosperitybyareturntothat
long-explodedmercantilesystemwhichhadbeenclearlyrefutedby
theory。AcountryliketheUnitedStates，inwhichsuchmeasureless
tractsoffruitfullandstillremaineduncultivatedandwherewages
ruledsohigh，couldnotutiliseitsmaterialwealthandincrease
ofpopulationtobetterpurposethaninagriculture；andwhenthis
shouldhavereachedcompletedevelopment，thenmanufactureswould
ariseinthenaturalcourseofeventswithoutartificialforcing。
ButbyanartificialdevelopmentofmanufacturestheUnitedStates
wouldinjurenotonlythecountrieswhichhadlongbeforeenjoyed
civilisation，butthemselvesmostofall。
WiththeAmericans，however，soundcommonsense，andthe
instinctofwhatwasnecessaryforthenation，weremorepotent
thanabeliefintheoreticalpropositions。Theargumentsofthe
theoristswerethoroughlyinvestigated，andstrongdoubts
entertainedoftheinfallibilityofadoctrinewhichitsown
discipleswerenotwillingtoputinpractice。
Totheargumentconcerningthestilluncultivatedtractsof
fruitfulland，itwasansweredthattractsofsuchlandinthe
populous，well-cultivatedstatesoftheUnionwhichwereripefor
manufacturingindustry，wereasrareasinGreatBritain；thatthe
surpluspopulationofthosestateswouldhavetomigrateatgreat
expensetothewest，inordertobringtractsoflandofthat
descriptionintocultivation，thusnotonlyannuallycausingthe
easternstateslargelossesinmaterialandintellectualresources，
butalso，inasmuchassuchemigrationwouldtransformcustomers
intocompetitors，thevalueoflandedpropertyandagricultural
producewouldtherebybelessened。Itcouldnotbetotheadvantage
oftheUnionthatallwastelandbelongingtoitshouldbe
cultivateduptothePacificOceanbeforeeitherthepopulation，
thecivilisation，orthemilitarypoweroftheoldstateshadbeen
fullydeveloped。Onthecontrary，thecultivationofdistantvirgin
landscouldconfernobenefitontheeasternstatesunlessthey
themselvesdevotedtheirattentiontomanufacturing，andcould
exchangetheirmanufacturesagainsttheproduceofthewest。People
wentstillfurther：WasnotEngland，itwasasked，inmuchthesame
position？HadnotEnglandalsounderherdominionvasttractsof
fertilelandstilluncultivatedinCanada，inAustralia，andin
otherquartersoftheworld？WasitnotalmostaseasyforEngland
totransplanthersurpluspopulationtothosecountriesasforthe
NorthAmericanstotransplanttheirsfromtheshoresofthe
AtlantictothebanksoftheMissouri？Ifso，whatoccasionhad
Englandnotonlycontinuouslytoprotectherhomemanufactures，but
tostrivetoextendthemmoreandmore？
Theargumentoftheschool，thatwithahighrateofwagesin
agriculture，manufacturescouldnotsucceedbythenaturalcourse
ofthings，butonlybybeingforcedlikehothouseplants，wasfound
tobepartiallywell-founded；thatistosay，itwasapplicable
onlytothosemanufacturedgoodswhich，beingsmallinbulkand
weightascomparedtotheirvalue，areproducedprincipallybyhand
labour，butwasnotapplicabletogoodsthepriceofwhichisless
influencedbytherateofwages，andastowhichthedisadvantage
ofhigherwagescanbeneutralisedbytheuseofmachinery，by
waterpowerasyetunused，bycheaprawmaterialsandfood，by
abundanceofcheapfuelandbuildingmaterials，bylighttaxation
andincreasedefficiencyoflabour。
Besides，theAmericanshadlongagolearntfromexperiencethat
agriculturecannotrisetoahighstateofprosperityunlessthe
exchangeofagriculturalproduceformanufacturesisguaranteedfor
allfuturetime；butthat，whentheagriculturistlivesinAmerica
andthemanufacturerinEngland，thatexchangeisnotunfrequently
interruptedbywars，commercialcrises，orforeigntariffs，and
thatconsequently，ifthenationalwell-beingistorestona
securefoundation，\'themanufacturer，\'touseJefferson\'swords，
\'mustcomeandsettledownincloseproximitytothe
agriculturist。\'
AtlengththeAmericanscametorealisethetruththatit
behovesagreatnationnotexclusivelytosetitsheartuponthe
enjoymentofproximatematerialadvantages；thatcivilisationand
power——moreimportantanddesirablepossessionsthanmere
materialwealth，asAdamSmithhimselfallows——canonlybe
securedandretainedbythecreationofamanufacturingpowerof
itsown；thatacountrywhichfeelsqualifiedtotakeandto
maintainitsplaceamongstthepowerfulandcivilisednationsof
theearthmustnotshrinkfromanysacrificeinordertosecure
suchpossessionsforitself；andthatatthattimetheAtlantic
stateswereclearlytheregionmarkedoutforsuchpossessions。
ItwasontheshoresoftheAtlanticthatEuropeansettlersand
Europeancivilisationfirstsetafirmfoot。Here，atthefirst，
werepopulous，wealthy，andcivilisedstatescreated；herewasthe
cradleandseatoftheirseafisheries，coastingtrade，andnaval
power；heretheirindependencewaswonandtheirunionfounded。
ThroughthesestatesonthecoasttheforeigntradeoftheUnionis
carriedon；throughthemitisconnectedwiththecivilisedworld；
throughthemitacquiresthesurpluspopulation，material，capital，
andmentalpowersofEurope；uponthecivilisation，power，and
wealthofthesesea-boardstatesdependthefuturecivilisation，
power，wealth，andindependenceofthewholenationanditsfuture
influenceoverlesscivilisedcommunities。Supposethatthe
populationoftheseAtlanticstatesdecreasedinsteadofgrowing
larger，thattheirfisheries，coastingtrade，shippingengagedin
foreigntradeandforeigntradeitself，and，aboveall，their
generalprosperity，weretofallofforremainstationaryinstead
ofprogressing，thenweshouldseetheresourcesofcivilisationof
thewholenation，theguaranteesforitsindependenceandexternal
power，diminishtoointhesamedegree。Itisevenconceivable
that，werethewholeterritoryoftheUnitedStateslaidunder
cultivationfromseatosea，coveredwithagriculturalstates，and
denselypopulatedintheinterior，thenationitselfmight
neverthelessbeleftinalowgradeasrespectscivilisation，
independence，foreignpower，andforeigntrade。Therearecertainly
manynationalitieswhoareinsuchapositionandwhoseshipping
andnavalpowerarenil，thoughpossessinganumerousinland
population！
Ifapowerexistedthatcherishedtheprojectofkeepingdown
theriseoftheAmericanpeopleandbringingthemundersubjection
toitselfindustrially，commercially，orpolitically，itcouldonly
succeedinitsaimbytryingtodepopulatetheAtlanticstatesof
theUnionanddrivingallincreaseofpopulation，capital，and
intellectualpowerintotheinterior。Bythatmeansitwouldnot
onlycheckthefurthergrowthofthenation\'snavalpower，but
mightalsoindulgethehopeofgettingpossessionintimeofthe
principaldefensivestrategicalpositionsontheAtlanticcoastand
atthemouthsoftherivers。Themeanstothisendwouldnotbe
difficulttoimagine；itwouldonlybenecessarytohinderthe
developmentofmanufacturingpowerintheAtlanticstatesandto
insuretheacceptanceoftheprincipleofabsolutefreedomof
foreigntradeinAmerica。IftheAtlanticstatesdonotbecome
manufacturers，theywillnotonlybeunabletokeepuptheir
presentdegreeofcivilisation，buttheymustsink，andsinkin
everyrespect。Withoutmanufactureshowarethetownsalongthe
Atlanticcoasttoprosper？Notbytheforwardingofinlandproduce
toEuropeandofEnglishmanufacturedgoodstotheinterior，fora
veryfewthousandpeoplewouldbesufficienttotransactthis
business。Howarethefisheriestoprosper？Themajorityofthe
populationwhohavemovedinlandpreferfreshmeatandfresh-water
fishtosalted；theyrequirenotrainoil，oratleastbutasmall
quantity。HowisthecoastingtradealongtheAtlanticsea-boardto
thrive？Asthelargestportionofthecoaststatesarepeopledby
cultivatorsoflandwhoproduceforthemselvesalltheprovisions，
buildingmaterials，fuel，&c。whichtheyrequire，thereisnothing
alongthecoasttosustainatransporttrade。Howareforeigntrade
andshippingtodistantplacestoincrease？Thecountryhasnothing
toofferbutwhatlesscultivatednationspossessin
superabundance，andthosemanufacturingnationstowhichitsends
itsproduceencouragetheirownshipping。Howcananavalpower
arisewhenfisheries，thecoastingtrade，oceannavigation，and
foreigntradedecay？HowaretheAtlanticstatestoprotectthem
selvesagainstforeignattackswithoutanavalpower？Howis
agricultureeventothriveinthesestates，whenbymeansof
canals，railways，&c。theproduceofthemuchmorefertileand
cheapertractsoflandinthewestwhichrequirenomanure，canbe
carriedtotheeastmuchmorecheaplythanitcouldbethere
produceduponsoilexhaustedlongago？Howundersuchcircumstances
cancivilisationthriveandpopulationincreaseintheeastern
states，whenitisclearthatunderfreetradewithEnglandall
increaseofpopulationandofagriculturalcapitalmustflowtothe
west？ThepresentstateofVirginiagivesbutafaintideaofthe
conditionintowhichtheAtlanticstateswouldbethrownbythe
absenceofmanufacturesintheeast；forVirginia，likeallthe
southernstatesontheAtlanticcoast，atpresenttakesa
profitableshareinprovidingtheAtlanticstateswithagricultural
produce。