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Venice。（1*）



　　　　England　in　that　respect　only　followed　the　example　of　those　who



were　her　forerunners　in　acquiring　supremacy　at　sea。　Yet　the



proposal　to　enact　a　navigation　Act　in　the　time　of　the　Long



Parliament　was　then　treated　as　a　novel　one。　Adam　Smith　appears　in



his　comment　on　this　Act（2*）　not　to　have　known；　or　to　have　refrained



from　stating；　that　already　for　centuries　before　that　time　and　on



various　occasions　the　attempt　had　been　made　to　introduce　similar



restrictions。　A　proposal　to　that　effect　made　by　Parliament　in　1461



was　rejected　by　Henry　VI；　and　a　similar　one　made　by　James　I；



rejected　by　Parliament；（3*）　indeed；　long　before　these　two　proposals



（viz。　in　1381）　such　restrictions　had　been　actually　imposed　by



Richard　II；　though　they　soon　proved　inoperative　and　passed　into



oblivion。　The　nation　was　evidently　not　then　ripe　for　such



legislation。　Navigation　laws；　like　other　measures　for　protecting



native　industry；　are　so　rooted　in　the　very　nature　of　those　nations



who　feel　themselves　fitted　for　future　industrial　and　commercial



greatness；　that　the　United　States　of　North　America　before　they　had



fully　won　their　independence　had　already　at　the　instance　of　James



Madison　introduced　restrictions　on　foreign　shipping；　and



undoubtedly　with　not　less　great　results　（as　will　be　seen　in　a



future　chapter）　than　England　had　derived　from　them　a　hundred　and



fifty　years　before。



　　　　The　northern　princes；　impressed　with　the　benefits　which　trade



with　the　Hansards　promised　to　yield　to　them　　inasmuch　as　it　gave



them　the　means　not　only　of　disposing　of　the　surplus　products　of



their　own　territories；　and　of　obtaining　in　exchange　much　better



manufactured　articles　than　were　produced　at　home；　but　also　of



enriching　their　treasuries　by　means　of　import　and　export



duties；（4*）　and　of　diverting　to　habits　of　industry　their　subjects



who　were　addicted　to　idleness；　turbulence；　and　riot　　considered



it　as　a　piece　of　good　fortune　whenever　the　Hansards　established



factories　on　their　territory；　and　endeavoured　to　induce　them　to　do



so　by　wanting　them　privileges　and　favours　of　every　kind。　The　kings



of　England　were　conspicuous　above　all　other　sovereigns　in　this



respect。



　　　　The　trade　of　England　（says　Hume）　was　formerly　entirely　in　the



hands　of　foreigners；　but　especially　of　the　'Easterlings'（5*）　whom



Henry　III　constituted　a　corporation；　to　whom　he　granted　privileges；



and　whom　he　freed　from　restrictions　and　import　duties　to　which



other　foreign　merchants　were　liable。　The　English　at　that　time　were



so　inexperienced　in　commerce　that　from　the　time　of　Edward　II　the



Hansards；　under　the　title　of　'Merchants　of　the　Steelyard'；



monopolised　the　entire　foreign　trade　of　the　kingdom。　And　as　they



conducted　it　exclusively　in　their　own　ships；　the　shipping　interest



of　England　was　in　a　very　pitiable　condition。（6*）



　　　　Some　German　merchants；　viz。　those　of　Cologne；　after　they　had



for　a　long　time　maintained　commercial　intercourse　with　England；　at



length　established　in　London；　in　the　year　1250；　at　the　invitation



of　the　King；　the　factory　which　became　so　celebrated　under　the　name



of　'The　Steelyard'　an　institution　which　at　first　was　so　influential



in　promoting　culture　and　industry　in　England；　but　afterwards



excited　so　much　national　jealousy；　and　which　for　375　years；　until



its　ultimate　dissolution；　was　the　cause　of　such　warm　and



long…continued　conflicts。



　　　　England　formerly　stood　in　similar　relations　with　the　Hanseatic



League　to　those　in　which　Poland　afterwards　stood　with　the　Dutch；



and　Germany　with　the　English；　she　supplied　them　with　wool；　tin；



hides；　butter；　and　other　mineral　and　agricultural　products；　and



received　manufactured　articles　in　exchange。　The　Hansards　conveyed



the　raw　products　which　they　obtained　from　England　and　the　northern



states　to　their　establishment　at　Bruges　（founded　in　1252）；　and



exchanged　them　there　for　Belgian　cloths　and　other　manufactures；　and



for　Oriental　products　and　manufactures　which　came　from　Italy；　which



latter　they　carried　back　to　all　the　countries　bordering　on　the



northern　seas。



　　　　A　third　factory　of　theirs；　at　Novgorod　in　Russia　（established



in　1272）；　supplied　them　with　furs；　flax；　hemp；　and　other　raw



products　in　exchange　for　manufactures。　A　fourth　factory；　at　Bergen



in　Norway　（also　founded　in　1272）；　was　occupied　principally　with



fisheries　and　trade　in　train　oil　and　fish　products。（7*）



　　　　The　experience　of　all　nations　in　all　times　teaches　us　that



nations；　so　long　as　they　remain　in　a　state　of　barbarism；　derive



enormous　benefit　from　free　and　unrestricted　trade；　by　which　they



can　dispose　of　the　products　of　the　chase　and　those　of　their



pastures；　forests；　and　agriculture　　in　short；　raw　products　of



every　kind；　obtaining　in　exchange　better　clothing　materials；



machines；　and　utensils；　as　well　as　the　precious　metals　　the　great



medium　of　exchange　and　hence　that　at　first　they　regard　free　trade



with　approval。　But　experience　also　shows　that　those　very　nations；



the　farther　advances　that　they　make　for　themselves　in　culture　and



in　industry；　regard　such　a　system　of　trade　with　a　less　favourable



eye；　and　that　at　last　they　come　to　regard　it　as　injurious　and　as　a



hindrance　to　their　further　progress。　Such　was　the　case　with　the



trade　between　England　and　the　Hansards。　A　century　had　scarcely



elapsed　from　the　foundation　of　the　factory　of　the　'Steelyard'　when



Edward　III　conceived　the　opinion　that　a　nation　might　do　something



more　useful　and　beneficial　than　to　export　raw　wool　and　import



woollen　cloth。　He　therefore　endeavoured　to　attract　Flemish　weavers



into　England　by　granting　them　all　kinds　of　privileges；　and　as　soon



as　a　considerable　number　of　them　had　got　to　work；　he　issued　a



prohibition　against　wearing　any　articles　made　of　foreign　cloth。（8*）



　　　　The　wise　measures　of　this　king　were　seconded　in　the　most



marvellous　manner　by　the　foolish　policy　pursued　by　the　rulers　of



other　countries　　a　coincidence　which　has　not　unfrequently　to　be



noted　in　commercial　history。　If　the　earlier　rulers　of　Flanders　and



Brabant　did　everything　in　their　power　to　raise　their　native



industry　to　a　flourishing　condition；　the　later　ones　did　everything



that　was　calculated　to　make　the　commercial　and　manufacturing



classes　discontented　and　to　incite　them　to　emigration。（9*）



　　　　In　the　year　1413　the　English　woollen　industry　had　already　made



such　progress　that　Hume　could　write　respecting　that　period；　'Great



jealousy　prevailed　at　this　time　against　foreign　merchants；　and　a



number　of　restrictions　were　imposed　on　their　trade；　as；　for



instance；　that　they　were　required　to　lay　out　in　the　purchase　of



goods　produced　in　England　the　whole　value　which　they　realized　from



articles　which　they　imported　into　it。（10*）



　　　　Under　Edward　IV　this　jealousy　of　foreign　traders　rose　to　such



a　pitch　that　the　importation　of　foreign　cloth；　and　of　many　other



articles；　was　absolutely　prohibited。（11*）



　　　　Notwithstanding　that　the　king　was　afterwards　compelled　by　the



Hansards　to　remove　this　prohibition；　and　to　reinstate　them　in　their



ancient　privileges；　the　English　woollen　manufacture　appears　to　have



been　greatly　promoted　by　it；　as　is　noted　by　Hume　in　treating　of　the



reign　of　Henry　VII；　who　came　to　the　throne　half　a　century　later



than　Edward　IV。



　　　　'The　progress　made　in　industry　and　the　arts　imposed　limits；　in



a　much　more　effective　way　than　the　rigour　of　laws　could　do；　to　the



pernicious　habit　of　the　nobility　of　maintaining　a　great　number　of



servants。　Instead　of　vying　with　one　another　in　the　number　and



valour　of　their　retainers；　the　nobility　were　animat