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foreigners。 Hence they sought; by a system of restrictions;



privileges; and encouragements; to transplant on to their native



soil the wealth; the talents; and the spirit of enterprise of the



foreigners。 This policy was pursued with greater or lesser; with



speedier or more tardy success; just in proportion as the measures



adopted were more or less judiciously adapted to the object in



view; and applied and pursued with more or less energy and



perseverance。



    England; above all other nations; has adopted this policy。



Often interrupted in its execution from the want of intelligence



and self…restraint on the part of her rulers; or owing to internal



commotions and foreign wars; it first assumed the character of a



settled and practically efficient policy under Edward VI;



Elizabeth; and the revolutionary period。 For how could the measures



of Edward III work satisfactorily when it was not till under Henry



VI that the law permitted the carriage of corn from one English



county to another; or the shipment of it to foreign parts; when



still under Henry VII and Henry VIII all interest on money; even



discount on bills; was held to be usury; and when it was still



thought at the time that trade might be encouraged by fixing by law



at a low figure the price of woollen goods and the rate of wages;



and that the production of corn could be increased by prohibiting



sheep farming on a large scale?



    And how much sooner would England's woollen manufactures and



maritime trade have reached a high standard of prosperity had not



Henry VIII regarded a rise in the prices of corn as an evil; had



he; instead of driving foreign workmen by wholesale from the



kingdom; sought like his predecessors to augment their number by



encouraging their immigration; and had not Henry VII refused his



sanction to the Act of Navigation as proposed by Parliament?



    In France we see native manufactures; free internal



intercourse; foreign trade; fisheries; navigation; and naval power



 in a word; all the attributes of a great; mighty; and rich



nation (which it had cost England the persevering efforts of



centuries to acquire)  called into existence by a great genius



within the space of a few years; as it were by a magician's wand;



and afterwards all of them yet more speedily annihilated by the



iron hand of fanaticism and despotism。



    We see the principle of free trade contending in vain under



unfavourable conditions against restriction powerfully enforced;



the Hanseatic League is ruined; while Holland sinks under the blows



of England and France。



    That a restrictive commercial policy can be operative for good



only so far as it is supported by the progressive civilisation and



free institutions of a nation; we learn from the decay of Venice;



Spain; and Portugal; from the relapse of France in consequence of



the revocation of the Edict of Nantes; and from the history of



England; in which country liberty kept pace at all times with the



advance of industry; trade; and national wealth。



    That; on the contrary; a highly advanced state of civilisation;



with or without free institutions; unless supported by a suitable



system of commercial policy; will prove but a poor guarantee for a



nation's economic progress; may be learnt on the one hand from the



history of the North American free states; and on the other from



the experience of Germany。



    Modern Germany; lacking a system of vigorous and united



commercial policy; exposed in her home markets to competition with



a foreign manufacturing power in every way superior to her own;



while excluded at the same time from foreign markets by arbitrary



and often capricious restrictions; and very far indeed from making



that progress in industry to which her degree of culture entitles



her; cannot even maintain her previously acquired position; and is



made a convenience of (like a colony) by that very nation which



centuries ago was worked upon in like manner by the merchants of



Germany; until at last the German states have resolved to secure



their home markets for their own industry; by the adoption of a



united vigorous system of commercial policy。



    The North American free states; who; more than any other nation



before them; are in a position to benefit by freedom of trade; and



influenced even from the very cradle of their independence by the



doctrines of the cosmopolitan school; are striving more than any



other nation to act on that principle。 But owing to wars with Great



Britain; we find that nation twice compelled to manufacture at home



the goods which it previously purchased under free trade from other



countries; and twice; after the conclusion of peace; brought to the



brink of ruin by free competition with foreigners; and thereby



admonished of the fact that under the present conditions of the



world every great nation must seek the guarantees of its continued



prosperity and independence; before all other things; in the



independent and uniform development of its own powers and



resources。



    Thus history shows that restrictions are not so much the



inventions of mere speculative minds; as the natural consequences



of the diversity of interests; and of the strivings of nations



after independence or overpowering ascendency; and thus of national



emulation and wars; and therefore that they cannot be dispensed



with until this conflict of national interests shall cease; in



other words until all nations can be united under one and the same



system of law。 Thus the question as to whether; and how; the



various nations can be brought into one united federation; and how



the decisions of law can be invoked in the place of military force



to determine the differences which arise between independent



nations; has to be solved concurrently with the question how



universal free trade can be established in the place of separate



national commercial systems。



    The attempts which have been made by single nations to



introduce freedom of trade in face of a nation which is predominant



in industry; wealth; and power; no less than distinguished for an



exclusive tariff system  as Portugal did in 1703; France in 1786;



North America in 1786 and 1816; Russia from 1815 till 1821; and as



Germany has done for centuries  go to show us that in this way



the prosperity of individual nations is sacrificed; without benefit



to mankind in general; solely for the enrichment of the predominant



manufacturing and commercial nation。 Switzerland (as we hope to



show in the sequel) constitutes an exception; which proves just as



much as it proves little for or against one or the other system。



    Colbert appears to us not to have been the inventor of that



system which the Italians have named after him; for; as we have



seen; it was fully elaborated by the English long before his time。



Colbert only put in practice what France; if she wished to fulfil



her destinies; was bound to carry out sooner or later。 If Colbert



is to be blamed at all; it can only be charged against him that he



attempted to put into force under a despotic government a system



which could subsist only after a fundamental reform of the



political conditions。 But against this reproach to Colbert's memory



it may very well be argued that; had his system been continued by



wise princes and sagacious ministers; it would in all probability



have removed by means of reforms all those hindrances which stood



in the way of progress in manufactures; agriculture; and trade; as



well as of national freedom; and France would th

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