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immense property secularised; or at least reduced to what was



actually necessary for their maintenance; if; in consequence of



these measures; civil liberty had gained a firm footing; the feudal



nobility had been reformed and the monarchy limited; if; in a word;



Spain had politically developed herself in consequence of a



Reformation; as England did; and if the same spirit had extended to



her colonies; a prohibitive and protective policy would have had



similar effects in Spain as it had in England; and this all the



more because at the time of Charles V the Spaniards were more



advanced than the English and French in every respect; and the



Netherlands only (of all countries) occupied a more advanced



position than Spain; whose industrial and commercial spirit might



have been transferred to Spain by means of the protective policy;



provided that the institutions and conditions of Spain were such as



would have invited foreign talents and capital to her shores;



instead of driving her own native talents and capital into foreign



countries。



    To what causes England owes her manufacturing and commercial



supremacy; we have shown in our fifth chapter。



    It is especially owing to her civil; mental; and religious



liberty; to the nature and excellence of her political



institutions; that the commercial policy of England has been



enabled to make the most of the natural riches of the country; and



fully to develop the productive powers of the nation。 But who would



deny that other nations are capable of raising themselves to the



same degree of liberty? Who would venture to maintain that nature



has denied to other nations the means which are requisite for



manufacturing industry?



    In the latter respect the great natural wealth in coal and iron



which England possesses has often been adduced as a reason why the



English are specially destined to be a manufacturing nation。 It is



true that in this respect England is greatly favoured by nature;



but against this it may be stated that even in respect of these



natural products; nature has not treated other countries merely



like a stepmother; for the most part the want of good transport



facilities is the chief obstacle to the full utilisation of these



products by other nations; that other countries possess enormous



unemployed water power; which is cheaper than steam power; that



where it is necessary they are able to counterbalance the want of



coal by the use of other fuels; that many other countries possess



inexhaustible means for the production of iron; and that they are



also able to procure these raw materials from abroad by commercial



exchange。



    In conclusion; we must not omit here to make mention of



commercial treaties based on mutual concessions of duties。 The



school objects to these conventions as unnecessary and detrimental;



whereas they appear to us as the most effective means of gradually



diminishing the respective restrictions on trade; and of leading



the nations of the world gradually to freedom of international



intercourse。 Of course; the specimens of such treaties which the



world has hitherto seen; are not very encouraging for imitation。 We



have shown in former chapters what injurious effects the Methuen



Treaty has produced in Portugal; and the Eden Treaty has produced



in France。 It is on these injurious effects of reciprocal



alleviation of duties; that the objections of the school to



commercial treaties appear principally to be founded。 Its principle



of absolute commercial liberty has evidently experienced a



practical contradiction in these cases; inasmuch as; according to



that principle; those treaties ought to have operated beneficially



to both contracting nations; but not to the ruin of the one; and to



the immense advantage of the other。 If; however; we investigate the



cause of this disproportionate effect; we find that Portugal and



France; in consequence of those conventions; abandoned in favour of



England the progress they had already made in manufacturing



industry; as well as that which they could expect to make in it in



the future; with the expectation of increasing by that means their



exportation of natural products to England; that; accordingly; both



those nations have declined; in consequence of the treaties thus



concluded; from a higher to a lower standpoint of industrial



development。 From this; however; it merely follows that a nation



acts foolishly if it sacrifices its manufacturing power to foreign



competition by commercial treaties; and thereby binds itself to



remain for all future time dependent on the low standpoint of



merely agricultural industry; but it does not in the least follow



from this; that those treaties are also detrimental and



objectionable whereby the reciprocal exchange of agricultural



products and raw materials; or the reciprocal exchange of



manufactured products; is promoted。



    We have previously explained that free trade in agricultural



products and raw materials is useful to all nations at all stages



of their industrial development; from this it follows that every



commercial treaty which mitigates or removes prohibitions and



restrictions on freedom of trade in such articles must have a



beneficial effect on both contracting nations; as e。g。 a convention



between France and England whereby the mutual exchange of wines and



brandies for pig…iron and coal; or a treaty between France and



Germany whereby the mutual exchange of wine; oil; and dried fruit;



for corn; wool; and cattle; were promoted。



    According to our former deductions; protection is only



beneficial to the prosperity of the nation so far as it corresponds



with the degree of the nation's industrial development。 Every



exaggeration of protection is detrimental; nations can only obtain



a perfect manufacturing power by degrees。 On that account also; two



nations which stand at different stages of industrial cultivation;



can with mutual benefit make reciprocal concessions by treaty in



respect to the exchange of their various manufacturing products。



The less advanced nation can; while it is not yet able to produce



for itself with profit finer manufactured goods; such as fine



cotton and silk fabrics; nevertheless supply the further advanced



nation with a portion of its requirements of coarser manufactured



goods。



    Such treaties might be still more allowable and beneficial



between nations which stand at about the same degree of industrial



development; between which; therefore; competition is not



overwhelming; destructive; or repressive; nor tending to give a



monopoly of everything to one side; but merely acts; as competition



in the inland trade does; as an incentive to mutual emulation;



perfection; and cheapening of production。 This is the case with



most of the Continental nations。 France; Austria; and the German



Zollverein might; for instance; anticipate only very prosperous



effects from moderately low reciprocal protective duties。 Also;



between these countries and Russia mutual concessions could be made



to the advantage of all sides。 What they all have to fear at this



time is solely the preponderating competition of England。



    Thus it appears also from this point of view; that the



supremacy of that island in manufactures; in trade; in navigation;



and in her colonial empire; constitutes the greatest existing



impediment to all nations drawing nearer to one another; although



it must be at the same time admitted that England; in striving for



this supremacy; has immeasurably increased; a

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