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have　to　bear　extraordinary　imposts　and　heavy　taxation；　and　lastly



the　injurious　effects　continue　to　operate　even　after　the　cessation



of　the　war；　because　both　capital　and　individual　effort　are　ever



attracted　towards　agricultural　work　and　diverted　from　manufactures；



precisely　in　that　proportion　in　which　the　war　may　have　injured　the



farmers　and　their　crops；　and　thereby　opened　up　a　more　directly



profitable　field　for　the　employment　of　capital　and　of　labour　than



the　manufacturing　industries　would　then　afford。　While　in　Germany



this　condition　of　things　recurred　twice　in　every　hundred　years；　and



caused　German　manufactures　to　retrograde；　those　of　England　made



uninterrupted　progress。　English　manufacturers；　as　opposed　to　their



Continental　competitors；　enjoyed　a　double　and　treble　advantage



whenever　England；　by　fitting　out　fleets　and　armies；　by　subsidies；



or　by　both　these　means　combined；　proceeded　to　take　an　active　part



in　foreign　wars。



　　　　We　cannot　agree　with　the　defenders　of　unproductive　expenditure；



namely；　of　that　incurred　by　wars　and　the　maintenance　of　large



armies；　nor　with　those　who　insist　upon　the　positively　beneficial



character　of　a　public　debt；　but　neither　do　we　believe　that　the



dominant　school　are　in　the　right　when　they　contend　that　all



consumption　which　is　not　directly　reproductive　　for　instance；



that　of　war　　is　absolutely　injurious　without　qualification。　The



equipment　of　armies；　wars；　and　the　debts　contracted　for　these



purposes；　may；　as　the　example　of　England　teaches；　under　certain



circumstances；　very　greatly　conduce　to　the　increase　of　the



productive　powers　of　a　nation。　Strictly　speaking；　material　wealth



may　have　been　consumed　unproductively；　but　this　consumption　may；



nevertheless；　stimulate　manufacturers　to　extraordinary　exertions；



and　lead　to　new　discoveries　and　improvements；　especially　to　an



increase　of　productive　powers。　This　productive　power　then　becomes



a　permanent　acquisition；　it　will　increase　more　and　more；　while　the



expense　of　the　war　is　incurred　only　once　for　all。（10*）　And　thus　it



may　come　to　pass；　under　favouring　conditions　such　as　have　occurred



in　England；　that　a　nation　has　gained　immeasurably　more　than　it　has



lost　from　that　very　kind　of　expenditure　which　theorists　hold　to　be



unproductive。　That　such　was　really　the　case　with　England；　may　be



shown　by　figures。　For　in　the　course　of　the　war；　that　country　had



acquired　in　the　cotton　manufacture　alone　a　power　of　production



which　yields　annually　a　much　larger　return　in　value　than　the　amount



which　the　nation　has　to　find　to　defray　the　interest　upon　the



increased　national　debt；　not　to　mention　the　vast　development　of　all



other　branches　of　industry；　and　the　additions　to　her　colonial



wealth。



　　　　Most　conspicuous　was　the　advantage　accruing　to　the　English



manufacturing　interest　during　the　Continental　wars；　when　England



maintained　army　corps　on　the　Continent　or　paid　subsidies。　The　whole



expenditure　on　these　was　sent；　in　the　shape　of　English



manufactures；　to　the　seat　of　war；　where　these　imports　then



materially　contributed　to　crush　the　already　sorely　suffering



foreign　manufacturers；　and　permanently　to　acquire　the　market　of　the



foreign　country　for　English　manufacturing　industry。　It　operated



precisely　like　an　export　bounty　instituted　for　the　benefit　of



British　and　for　the　injury　of　foreign　manufacturers。（11*）



　　　　In　this　way；　the　industry　of　the　Continental　nations　has　ever



suffered　more　from　the　English　as　allies；　than　from　the　English　as



enemies。　In　support　of　this　statement　we　need　refer　only　to　the



Seven　Years'　War；　and　to　the　wars　against　the　French　Republic　and



Empire。



　　　　Great；　however；　as　have　been　the　advantages　heretofore



mentioned；　they　have　been　greatly　surpassed　in　their　effect　by



those　which　England　derived　from　immigrations　attracted　by　her



political；　religious；　and　geographical　conditions。



　　　　As　far　back　as　the　twelfth　century　political　circumstances



induced　Flemish　woollen　weavers　to　emigrate　to　Wales。　Not　many



centuries　later　exiled　Italians　came　over　to　London　to　carry　on



business　as　money　changers　and　bankers。　That　from　Flanders　and



Brabant　entire　bodies　of　manufacturers　thronged　to　England　at



various　periods；　we　have　shown　in　Chapter　II。　From　Spain　and



Portugal　came　persecuted　Jews；　from　the　Hanse　Towns；　and　from



Venice　in　her　decline；　merchants　who　brought　with　them　their　ships；



their　knowledge　of　business；　their　capital；　and　their　spirit　of



enterprise。　Still　more　important　were　the　immigrations　of　capital



and　of　manufacturers　in　consequence　of　the　Reformation　and　the



religious　persecutions　in　Spain；　Portugal；　France；　Belgium；



Germany；　and　Italy；　as　also　of　merchants　and　manufacturers　from



Holland　in　consequence　of　the　stagnation　of　trade　and　industry　in



that　country　occasioned　by　the　Act　of　Navigation　and　the　Methuen



Treaty。　Every　political　movement；　every　war　upon　the　Continent；



brought　England　vast　accessions　of　fresh　capital　and　talents；　so



long　as　she　possessed　the　privileges　of　freedom；　the　right　of



asylum；　internal　tranquillity　and　peace；　the　protection　of　the　law；



and　general　well…being。　So　more　recently　did　the　French　Revolution



and　the　wars　of　the　Empire；　and　so　did　the　political　commotions；



the　revolutionary　and　reactionary　movements　and　the　wars　in　Spain；



in　Mexico；　and　in　South　America。　By　means　of　her　Patent　Laws；



England　long　monopolised　the　inventive　genius　of　every　nation。　It



is　no　more　than　fair　that　England；　now　that　she　has　attained　the



culminating　point　of　her　industrial　growth　and　progress；　should



restore　again　to　the　nations　of　Continental　Europe　a　portion　of



those　productive　forces　which　she　originally　derived　from　them。







NOTES：







1。　Hume；　vol。　ii；　p。　143。







2。　No　doubt　the　decrees　prohibiting　the　export　of　wool；　not　to



mention　the　restrictions　placed　on　the　trade　in　wool　in　markets



near　the　coast；　were　vexations　and　unfair；　yet　at　the　same　time　the



operated　beneficially　in　the　promotion　of　English　industry；　and　in



the　suppression　of　that　of　the　Flemings。







3。　Hume　（in　1603）。　Macpherson；　Histoire　du　Commerce　（in　1651）。







4。　See　Ustaritz；　Th閛rie　du　Commerce；　ch。　xxviii。　Thus　we　see



George　I　did　not　want　to　export　goods　and　import　nothing　but　specie



in　return；　which　is　stated　as　the　fundamental　principle　of　the



so…called　'mercantile　system'；　and　which　in　any　case　would　be



absurd。　What　he　desired　was　to　export　manufactures　and　import　raw



material。







5。　Hume；　vol。　v。　p。　39。







6。　Anderson　for　the　year　1721。







7。　Priestley；　Lectures　on　History　and　General　Policy；　Pt。　II；　p。



289。







8。　These　and　the　following　figures　relating　to　English　statistics



are　taken　from　a　paper　written　by　McQueen；　the　celebrated　English



statistician；　and　appearing　in　the　July　number　of　Tait's　Edinburgh



Magazine　for　the　year　1839。　Possibly　they　may　be　somewhat



exaggerated　for　the　moment。　But　even　if　so；　it　is　more　than



probable　that　the　figures　as　stated　will　be　reached　within　the



present　decade。







9。　Before　his　lamented　death；　the　gifted　author　of　this　remark；　in



his　Letters　on　England；　read　the　nobles　of　his　native　country　a



lesson　in　this　respect　which　they　would　do　well　to　lay　to　heart。







10。　England's　national　debt　would　not　be　so　great　an　evil　as　it　now



appears　to　us；　if　England's　aristocracy　would　concede　that　this



burden　should　be　borne　by　the　class　who　were　benefited　by　the　cost



of　wars；　namely；　by　the　rich。　McQueen　estimates　the　capitalised



value　of　property　in　the　three　kingdoms　at　4；000　million　pounds



sterling；　and　Martin　estimates　the　capital　invested　in　the　colonies



at　about　2；600　millions　sterling。　Hence　we　see　that　one…ninth　part



of　Englishmen's　private　property　would　suffice　to　cover　the　entire



national　debt。　Nothing　could　be　more　just　than　such　an



appropriation；　or　at　least　than　the　payment　of　the　interest　on　the



national　debt　out　of　the　proceeds　of　an　income　tax。　The　English



aristocracy；　however；　deem　it　more　convenient　to　provide　for　this



charge　by　the　imposition　of　taxes　upon　articles　of　consumption；　by



which　the　existence　of　the　working　classes　is　embittered　beyond　the



point　of　endurance。







11。　See　Appendix　A。











Chapter　5







The　Spaniards　and　Portuguese







　　　　Whilst　the　English　were　busied　for　centuries　in　raising　the



structure　of　their　national　prosperity　upon　the　most　solid



foundations；　the　Spaniards　and　the　Po