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The National System of Political Economy





by Friedrich List





translated by Sampson S。 Lloyd; 1885













First Book: The History







Chapter 1







The Italians







    At the revival of civilisation in Europe; no county was in so



favourable a position as Italy in respect to commerce and industry。



Barbarism had not been able entirely to eradicate the culture and



civilisation of ancient Rome。 A genial climate and a fertile soil;



notwithstanding an unskilful system of cultivation; yielded



abundant nourishment for a numerous population。 The most necessary



arts and industries remained as little destroyed as the municipal



institutions of ancient Rome。 Prosperous coast fisheries served



everywhere as nurseries for seamen; and navigation along Italy's



extensive sea…coasts abundantly compensated her lack of internal



means of transport。 Her proximity to Greece; Asia Minor; and Egypt;



and her maritime intercourse with them; secured for Italy special



advantages in the trade with the East which had previously; though



not extensively; been carried on through Russia with the countries



of the North。 By means of this commercial intercourse Italy



necessarily acquired those branches of knowledge and those arts and



manufactures which Greece had preserved from the civilisation of



ancient times。 



    From the period of the emancipation of the Italian cities by



Otho the Great; they gave evidence of what history was testified



alike in earlier and later times; namely; that freedom and industry



are inseparable companions; even although not unfrequently the one



has come into existence before the other。 If commerce and industry



are flourishing anywhere; one may be certain that there freedom is



nigh at hand: if anywhere Freedom was unfolded her banner; it is as



certain that sooner or later industry will there establish herself;



for nothing is more natural than that when man has acquired



material or mental wealth he should strive to obtain guarantees for



the transmission of his acquisitions to his successors; or that



when he has acquired freedom; he should devote all his energies to



improve his physical and intellectual condition。



    For the first time since the downfall of the free states of



antiquity was the spectacle again presented to the world by the



cities of Italy of free and rich communities。 Cities and



territories reciprocally rose to a state of prosperity and received



a powerful impulse in that direction from the Crusades。 The



transport of the Crusaders and their baggage and material of war



not only benefited Italy's navigation; it afforded also inducements



and opportunities for the conclusion of advantageous commercial



relations with the East for the introduction of new industries;



inventions; and plants; and for acquaintance with new enjoyments。



On the other hand; the oppressions of feudal lordship were weakened



and diminished in manifold ways; owing to the same cause; tending



to the greater freedom of the cities and of the cultivation of the



soil。



    Next after Venice and Genoa; Florence became especially



conspicuous for her manufactures and her monetary exchange



business。 Already; in the twelfth and thirteenth centuries; her



silk and woollen manufactures were very flourishing; the guilds of



those trades took part in the government; and under their influence



the Republic was constituted。 The woollen manufacture alone



employed 200 manufactories; which produced annually 80;000 pieces



of cloth; the raw material for which was imported from Spain。 In



addition to these; raw cloth to the amount of 300;000 gold gulden



was imported annually from Spain; France; Belgium; and Germany;



which; after being finished at Florence; was exported to the



Levant。 Florence conducted the banking business of the whole of



Italy; and contained eighty banking establishments。(1*) The annual



revenue of her Government amounted to 300;000 gold gulden (fifteen



million francs of our present money); considerably more than the



revenue of the kingdoms of Naples and Aragon at that period; and



more than that of Great Britain and Ireland under Queen



Elizabeth。(2*)



    We thus see Italy in the twelfth and thirteenth centuries



possessing all the elements of national economical prosperity; and



in respect of both commerce and industry far in advance of all



other nations。 Her agriculture and her manufactures served as



patterns and as motives for emulation to other countries。 Her roads



and canals were the best in Europe。 The civilised world is indebted



to her for banking institutions; the mariner's compass; improved



naval architecture; the system of exchanges; and a host of the most



useful commercial customs and commercial laws; as well as for a



great part of its municipal and governmental institutions。 Her



commercial; marine; and naval power were by far the most important



in the southern seas。 She was in possession of the trade of the



world; for; with the exception of the unimportant portion of it



carried on over the northern seas; that trade was confined to the



Mediterranean and the Black Sea。 She supplied all nations with



manufactures; with articles of luxury; and with tropical products;



and was supplied by them with raw materials。 One thing alone was



wanting to Italy to enable her to become what England has become in



our days; and because that one thing was wanting to her; every



other element of prosperity passed away from her; she lacked



national union and the power which springs from it。 The cities and



ruling powers of Italy did not act as members of one body; but made



war on and ravaged one another like independent powers and states。



While these wars raged externally; each commonwealth was



successively overthrown by the internal conflicts between



democracy; aristocracy; and autocracy。 These conflicts; so



destructive to national prosperity; were stimulated and increased



by foreign powers and their invasions; and by the power of the



priesthood at home and its pernicious influence; whereby the



separate Italian communities were arrayed against one another in



two hostile factions。



    How Italy thus destroyed herself may be best learned from the



history of her maritime states。 We first see Amalfi great and



powerful (from the eighth to the eleventh century)。(3*) Her ships



covered the seas; and all the coin which passed current in Italy



and the Levant was that of Amalfi。 She possessed the most practical



code of maritime laws; and those laws were in force in every port



of the Mediterranean。 In the twelfth century her naval power was



destroyed by Pisa; Pisa in her turn fell under the attacks of



Genoa; and Genoa herself; after a conflict of a hundred years; was



compelled to succumb to Venice。



    The fall of Venice herself appears to have indirectly resulted



from this narrow…minded policy。 To a league of Italian naval powers



it could not have been a difficult task; not merely to maintain and



uphold the preponderance of Italy in Greece; Asia Minor; the



Archipelago; and Egypt; but continually to extend and strengthen



it; or to curb the progress of the Turks on land and repress their



piracies at sea; while contesting with the Portuguese the passage



round the Cape of Good Hope。



    As matters actually stood; however; Venice was not merely left



to her own resources; she found herself crippled by the external



attacks of her sister states and of the neighbonring European



powers。



    It could not have proved a difficult t

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