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powers。



    It could not have proved a difficult task to a well…organised



league of Italian military powers to defend the independence of



Italy against the aggression of the great monarchies。 The attempt



to form such a league was actually made in 1526; but then not until



the moment of actual danger and only for temporary defence。 The



lukewarmness and treachery of the leaders and members of this



league were the cause of the subsequent subjugation of Milan and



the fall of the Tuscan Republic。 From that period must be dated the



downfall of the industry and commerce of Italy。(4*)



    In her earlier as well as in her later history Venice aimed at



being a nation for herself alone。 So long as she had to deal only



with petty Italian powers or with decrepid Greece; she had no



difficulty in maintaining a supremacy in manufactures and commerce



through the countries bordering on the Mediterranean and Black



Seas。 As soon; however; as united and vigorous nations appeared on



the political stage; it became manifest at once that Venice was



merely a city and her aristocracy only a municipal one。 It is true



that she had conquered several islands and even extensive



provinces; but she ruled over them only as conquered territory; and



hence (according to the testimony of all historians) each conquest



increased her weakness instead of her power 



    At the same period the spirit within the Republic by which she



had grown great gradually died away。 The power and prosperity of



Venice  the work of a patriotic and heroic aristocracy which had



sprung from an energetic and liberty…loving democracy…maintained



itself and increased so long as the freedom of democratic energy



lent it support; and that energy was guided by the patriotism; the



wisdom; and the heroic spirit of the aristocracy。 But in proportion



as the aristocracy became a despotic oligarchy; destructive of the



freedom and energies of the people; the roots of power and



prosperity died away; notwithstanding that their branches and



leading stem appeared still to flourish for some time longer。'(5*)



    A nation which has fallen into slavery;' says Montesquieu;(6*)



'strives rather to retain what it possesses than to acquire more;



a free nation; on the contrary; strives rather to acquire than to



retain。' To this very true observation he might have added  and



because anyone strives only to retain without acquiring he must



come to grief; for every nation which makes no forward progress



sinks lower and lower; and must ultimately fall。 Far from striving



to extend their commerce and to make new discoveries; the Venetians



never even conceived the idea of deriving benefit from the



discoveries made by other nations。 That they could be excluded from



the trade with the East Indies by the discovery of the new



commercial route thither; never occurred to them until they



actually experienced it。 What all the rest of the world perceived



they would not believe; and when they began to find out the



injurious results of the altered state of things; they strove to



maintain the old commercial route instead of seeking to participate



in the benefits of the new one; they endeavoured to maintain by



petty intrigues what could only be won by making wise use of the



altered circumstances by the spirit of enterprise and by hardihood。



And when they at length had lost what they had possessed; and the



wealth of the East and West indies was pouted into Cadiz and Lisbon



instead of into their own ports; like simpletons or spendthrifts



they turned their attention to alchemy。(7*)



    In the times when the Republic grew and flourished; to be



inscribed in the Golden Book was regarded as a reward for



distinguished exertions in commerce; in industry; or in the civil



or military service of the State。 On that condition this honour was



open to foreigners; for example; to the most distinguished of the



silk manufacturers who had immigrated from Florence。(8*) But that



book was closed when men began to regard places of honour and State



salaries as the family inheritance of the patrician class。 At a



later period; when men recognised the necessity of giving new life



to the impoverished and enfeebled aristocracy; the book was



reopened。 But the chief title to inscription in it was no longer;



as in former times; to have rendered services to the State; but the



possession of wealth and noble birth。 At length the honour of being



inscribed in the Golden Book was so little esteemed; that it



remained open for a century with scarcely any additional names。



    If we inquire of History what were the causes of the downfall



of this Republic and of its commerce; she replies that they



principally consisted in the folly; neglect; and cowardice of a



worn…out aristocracy; and in the apathy of a people who had sunk



into slavery。 The commerce and manufactures of Venice must have



declined; even if the new route round the Cape of Good Hope had



never been discovered。



    The cause of it; as of the fall of all the other Italian



republics; is to be found in the absence of national unity; in the



domination of foreign powers; in priestly rule at home; and in the



rise of other greater; more powerful; and more united nationalities



in Europe。



    If we carefully consider the commercial policy of Venice; we



see at a glance that that of modern commercial and manufacturing



nations is but a copy of that of Venice; only on an enlarged (i。e。



a national) scale。 By navigation laws and customs duties in each



case native vessels and native manufactures were protected against



those of foreigners; and the maxim thus early held good that it was



sound policy to import raw materials from other states and to



export to them manufactured goods。(9*)



    It has been recently asserted in defence of the principle of



absolute and unconditional free trade; that her protective policy



was the cause of the downfall of Venice。 That assertion comprises



a little truth with a great deal of error if we investigate the



history of Venice with an unprejudiced eye; we find that in her



case; as in that of the great kingdoms at a later period; freedom



of international trade as well as restrictions on it have been



beneficial or prejudicial to the power and prosperity of the State



at different epochs。 Unrestricted freedom of trade was beneficial



to the Republic in the first years of her existence; for how



otherwise could she have raised herself from a mere fishing village



to a commercial power? But a protective policy was also beneficial



to her when she had arrived at a certain stage of power and wealth;



for by means of it she attained to manufacturing and commercial



supremacy。 Protection first became injurious to her when her



manufacturing and commercial power had reached that supremacy;



because by it all competition with other nations became absolutely



excluded; and thus indolence was encouraged。 Therefore; not the



introduction of a protective policy; but perseverance in



maintaining it after the reasons for its introduction had passed



away; was really injurious to Venice。



    Hence the argument to which we have adverted has this great



fault; that it takes no account of the rise of great nations under



hereditary monarchy。 Venice; although mistress of some provinces



and islands; yet being all the time merely one Italian city; stood



in competition; at the period of her rise to a manufacturing and



commercial power; merely with other Italian cities; and her



prohibitory commercial policy could benefit her so long only

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