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foreigners are serviceable and welcome to communities in the early



stages of their civilisation; so long as their agriculture and



manufactures still remain undeveloped。 Owing to want of capital and



of experienced seamen; they are willing to abandon navigation and



foreign trade to other nations。 Later on; however; when they have



developed their producing power to a certain point and acquired



skill in shipbuilding and navigation; then they will desire to



extend their foreign trade; to carry it on in their own ships; and



become a naval power themselves。 Gradually their own mercantile



marine grows to such a degree that they feel themselves in a



position to exclude the foreigner and to conduct their trade to the



most distant places by means of their own vessels。 Then the time



has come when; by means of restrictions on navigation; a nation can



successfully exclude the more wealthy; more experienced; and more



powerful foreigner from participation in the profits of that



business。 When the highest degree of progress in navigation and



maritime power has been reached; a new era will set in; no doubt;



and such was that stage of advancement which Dr Priestley had in



his mind when he wrote 'that the time may come when it may be as



politic to repeal this Act as it was to make it。'(7*)



    Then it is that; by means of treaties of navigation based upon



equality of rights; a nation can; on the one hand; secure undoubted



advantages as against less civilised nations; who will thus be



debarred from introducing restrictions on navigation in their own



special behalf; while; on the other hand; it will thereby preserve



its own seafaring population from sloth; and spur them on to keep



pace with other countries in shipbuilding and in the art of



navigation。 While engaged in her struggle for supremacy; Venice was



doubtless greatly indebted to her policy of restrictions on



navigation; but as soon as she had acquired supremacy in trade;



manufactures; and navigation; it was folly to retain them。 For



owing to them she was left behind in the race; both as respects



shipbuilding; navigation; and seamanship of her sailors; with other



maritime and commercial nations which were advancing in her



footsteps。 Thus England by her policy increased her naval power;



and by means of her naval power enlarged the range of her



manufacturing and commercial powers; and again; by the latter;



there accrued to her fresh accessions of maritime strength and of



colonial possessions。 Adam Smith; when he maintains that the



Navigation Laws have not been beneficial to England in commercial



respects; admits that; in any case; these laws have increased her



power。 And power is more important than wealth。 That is indeed the



fact。 Power is more important than wealth。 And why? Simply because



national power is a dynamic force by which new productive resources



are opened out; and because the forces of production are the tree



on which wealth grows; and because the tree which bears the fruit



is of greater value than the fruit itself。 Power is of more



importance than wealth because a nation; by means of power; is



enabled not only to open up new productive sources; but to maintain



itself in possession of former and of recently acquired wealth; and



because the reverse of power  namely; feebleness  leads to the



relinquishment of all that we possess; not of acquired wealth



alone; but of our powers of production; of our civilisation; of our



freedom; nay; even of our national independence; into the hands of



those who surpass us in might; as is abundantly attested by the



history of the Italian republics; of the Hanseatic League; of the



Belgians; the Dutch; the Spaniards; and the Portuguese。



    But how came it that; unmindful of this law of alternating



action and reaction between political power; the forces of



production and wealth; Adam Smith could venture to contend that the



Methuen Treaty and the Act of Navigation had not been beneficial to



England from a commercial point of view? We have shown how England



by the policy which she pursued acquired power; and by her



political power gained productive power; and by her productive



power gained wealth。 Let us now see further how; as a result of



this policy; power has been added to power; and productive forces



to productive forces。



    England has got into her possession the keys of every sea; and



placed a sentry over every nation: over the Germans; Heligoland;



over the French; Guernsey and Jersey; over the inhabitants of North



America; Nova Scotia and the Bermudas; over Central America; the



island of Jamaica; over all countries bordering on the



Mediterranean; Gibraltar; Malta; and the Ionian Islands。 She



possesses every important strategical position on both the routes



to India with the exception of the Isthmus of Suez; which she is



striving to acquire; she dominates the Mediterranean by means of



Gibraltar; the Red Sea by Aden; and the Persian Gulf by Bushire and



Karrack。 She needs only the further acquisition of the Dardanelles;



the Sound; and the Isthmuses of Suez and Panama; in order to be



able to open and close at her pleasure every sea and every maritime



highway。 Her navy alone surpasses the combined maritime forces of



all other countries; if not in number of vessels; at any rate in



fighting strength。



    Her manufacturing capacity excels in importance that of all



other nations。 And although her cloth manufactures have increased



more than tenfold (to forty…four and a half millions) since the



days of James I; we find the yield of another branch of industry;



which was established only in the course of the last century;



namely; the manufacture of cotton; amounting to a much larger sum;



fifty…two and a half millions。(8*)



    Not content with that; England is now attempting to raise her



linen manufacture; which has been long in a backward state as



compared with that of other countries; to a similar position;



possibly to a higher one than that of the two above…named branches



of industry: it now amounts to fifteen and a half millions



sterling。 In the fourteenth century; England was still so poor in



iron that she thought it necessary to prohibit the exportation of



this indispensable metal; she now; in the nineteenth century;



manufactures more iron and steel wares than all the other nations



on earth (namely; thirty…one millions' worth); while she produces



thirty…four millions in value of coal and other minerals。 These two



sums exceed by over sevenfold the value of the entire gold and



silver production of all other nations; which amount to about two



hundred and twenty million francs; or nine millions sterling。



    At this day she produces more silk goods than all the Italian



republics produced in the Middle Ages together; namely; thirteen



and a half million pounds。 Industries which at the time of Henry



VIII and Elizabeth scarcely deserved classification; now yield



enormous sums; as; for instance; the glass; china; and stoneware



manufactures; representing eleven millions; the copper and brass



manufactures; four and a half millions; the manufactures of paper;



books; colours; and furniture; fourteen millions。



    England produces; moreover; sixteen millions' worth of leather



goods; besides ten millions' worth of unenumerated articles。 The



manufacture of beer and spirituous liquors in England alone greatly



exceeds in value the aggregate of national production in the days



of James I; namely; forty…seven millions sterling。



    The entire manufacturing production of the

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