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individual cities; and between neighbours of every rank。 The



energies of the nation were now diverted from the pursuit of



industry; agriculture; trade; and navigation; from the acquisition



of colonies; the amelioration of internal institutions; in fact



from every kind of substantial improvement; the people contended



about dogmas and the heritage of the Church。



    At the same time came the decline of the Hanseatic League and



of Venice; and with it the decline of Germany's wholesale trade;



and of the power and liberties of the German cities both in the



north and in the south。



    Then came the Thirty Years' War with its devastations of all



territories and cities。 Holland and Switzerland seceded; while the



fairest provinces of the Empire were conquered by France。 Whereas



formerly single cities; such as Strasburg; N黵nberg; Augsburg; had



surpassed in power entire electorates; they now sank into utter



impotence in consequence of the introduction of standing armies。



    If before this revolution the cities and the royal power had



been more consolidated  if a king exclusively belonging to the



German nation had obtained a complete mastery of the Reformation;



and had carried it out in the interests of the unity; power; and



freedom of the nation  how very differently would the



agriculture; industry; and trade of the Germans have been



developed。 By the side of considerations such as these; how



pitiable and unpractical seems that theory of political economy



which would have us refer the material welfare of nations solely to



the production of individuals; wholly losing sight of the fact that



the producing power of all individuals is to a great extent



determined by the social and political circumstances of the nation。



The introduction of the Roman law weakened no nation so much as the



German。 The unspeakable confusion which it brought into the legal



status and relations of private individuals; was not the worst of



its bad effects。 More mischievous was it by far; in that it created



a caste of learned men and jurists differing from the people in



spirit and language; which treated the people as a class unlearned



in the law; as minors; which denied the authority of all sound



human understanding; which everywhere set up secrecy in the room of



publicity; which; living in the most abject dependence and living



upon arbitrary power; everywhere advocated it and defended its



interests; everywhere gnawed at the roots of liberty。 Thus we see



even to the beginning of the eighteenth century in Germany;



barbarism in literature and language; barbarism in legislation;



State administration and administration of justice; barbarism in



agriculture; decline of industry and of all trade upon a large



scale; want of unity and of force in national cohesion;



powerlessness and weakness on all hands in dealing with foreign



nations。



    One thing only the Germans had preserved; that was their



aboriginal character; their love of industry; order; thrift; and



moderation; their perseverance and endurance in research and in



business; their honest striving after improvement; and a



considerable natural measure of morality; prudence; and



circumspection。



    This character both the rulers and the ruled had in common。



After the almost total decay of nationality and the restoration of



tranquillity; people began in some individual isolated circles to



introduce order; improvement; and progress。 Nowhere was witnessed



more zeal in cherishing education; manners; religion; art; and



science; nowhere was absolute power exercised with greater



moderation or with more advantage to general enlightenment; order;



and morality; to the reform of abuses and the advancement of the



common welfare。



    The foundation for the revival of German nationality was



undoubtedly laid by the Governments them selves; by their



conscientious devotion of the proceeds of the secularised Church



lands to the uses of education and instruction; of art and science;



of morality and objects of public utility。 By these measures light



made its way into the State administration and the administration



of justice; into education and literature; into agriculture;



industry; and commerce; and above all amongst the masses。 Thus



Germany developed herself in a totally different way from all other



nations。 Elsewhere high mental culture rather grew out of the



evolution of the material powers of production; whilst in Germany



the growth of material powers of production was the outcome chiefly



of an antecedent intellectual development。 Hence at the present day



the whole culture of the Germans is theoretical。 Hence also those



many unpractical and odd traits in the German character which other



nations notice in us。



    For the moment the Germans are in the position of an individual



who; having been formerly deprived of the use of his limbs; first



learned theoretically the arts of standing and walking; of eating



and drinking; of laughing and weeping; and then only proceeded to



put them in practice。 Hence comes the German predilection for



philosophic systems and cosmopolitan dreams。 The intellect; which



was not allowed to stir in the affairs of this world; strove to



exercise itself in the realms of speculation。 Hence; too; we find



that nowhere has the doctrine of Adam Smith and of his disciples



obtained a larger following than in Germany; nowhere else have



people more thoroughly believed in the cosmopolitan magnanimity of



Messrs Canning and Huskisson。



    For the first progress in manufactures Germany is indebted to



the revocation of the Edict of Nantes and to the numerous refugees



who by that insane measure were driven to emigrate to almost every



part of Germany; and established everywhere manufactures of wool;



silk; jewellery; hats; glass; china; gloves; and industries of



every kind。



    The first Government measures for the promotion of manufactures



in Germany were introduced by Austria and Prussia; in Austria under



Charles VI and Maria Theresa; but even more under Joseph II。



Austria had formerly suffered enormously from the banishment of the



Protestants; her most industrious citizens; nor can it be exactly



affirmed that she distinguished herself in the immediate sequel by



promoting enlightenment and mental culture。 Afterwards; in



consequence of a protective tariff; improved sheep farming; better



roads; and other encouragements; industry made considerable strides



even under Maria Theresa。



    More energetically still was this work pushed forward under



Joseph II and with immensely greater success。 At first; indeed; the



results could not be called important; because the Emperor;



according to his wont; was too precipitate in these as in all his



other schemes of reform; and Austria; in relation to other states;



still occupied too backward a position。 Here as elsewhere it became



evident that one might get 'too much of a good thing' at once; and



that protective duties; in order to work beneficially and not as a



disturbing element upon an existing state of things; must not be



made too high at the commencement。 But the longer that system



continued; the more clearly was its wisdom demonstrated。 To that



tariff Austria is indebted for her present prosperous industries



and the flourishing condition of her agriculture。



    The industry of Prussia had suffered more than that of any



other country from the devastations of the Thirty Years' War。 Her



most important industry; the manufacture of cloth in the Margravate



of Branden

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