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structure of their national prosperity upon the most solid



foundations; the Spaniards and the Portuguese made a fortune



rapidly by means of their discoveries and attained to great wealth



in a very short space of time。 But it was only the wealth of a



spendthrift who had won the first prize in a lottery; whereas the



wealth of the English may be likened to the fortune accumulated by



the diligent and saving head of a family。 The former may for a time



appear more to be envied than the latter on account of his lavish



expenditure and luxury; but wealth in his case is only a means for



prodigality and momentary enjoyment; whereas the latter will regard



wealth chiefly as a means of laying a foundation for the moral and



material well…being of his latest posterity。



    The Spaniards possessed flocks of well…bred sheep at so early



a period that Henry I of England was moved to prohibit the



importation of Spanish wool in 1172; and that as far back as the



tenth and eleventh centuries Italian woollen manufacturers used to



import the greater portion of their wool supplies from Spain。 Two



hundred years before that time the dwellers on the shores of the



Bay of Biscay had already distinguished themselves in the



manufacture of iron; in navigation; and in fisheries。 They were the



first to carry on the whale fishery; and even in the year 1619 they



still so far excelled the English in that business that they were



asked to send fishermen to England to instruct the English in this



particular branch of the fishing trade。(1*)



    Already in the tenth century; under Abdulrahman III (912 to



950); the Moors had established in the fertile plains around



Valencia extensive plantations of cotton; sugar; and rice; and



carried on silk cultivation。 Cordova; Seville; and Granada



contained at the time of the Moors important cotton and silk



manufactories。(2*) Valencia; Segovia; Toledo; and several other



cities in Castile were celebrated for their woollen manufactures。



Seville alone at an early period of history contained as many as



16;000 looms; while the woollen manufactories of Segovia in the



year 1552 were employing 13;000 operatives。 Other branches of



industry; notably the manufacture of arms and of paper; had become



developed on a similar scale。 In Colbert's day the French were



still in the habit of procuring supplies of cloth from Spain。(3*)



The Spanish seaport towns were the seat of an extensive trade and



of important fisheries; and up to the time of Philip II Spain



possessed a most powerful navy。 In a word; Spain possessed all the



elements of greatness and prosperity; when bigotry; in alliance



with despotism; set to work to stifle the high spirit of the



nation。 The first commencement of this work of darkness was the



expulsion of the Jews; and its crowning act the expulsion of the



Moors; whereby two millions of the most industrious and well…to…do



inhabitants were driven out of Spain with their capital。



    While the Inquisition was thus occupied in driving native



industry into exile; it at the same time effectually prevented



foreign manufacturers from settling down in the country。 The



discovery of America and of the route round the Cape only increased



the wealth of both kingdoms after a specious and ephemeral fashion



 indeed; by these events a death…blow was first given to their



national industry and to their power。 For then; instead of



exchanging the produce of the East and West Indies against home



manufactures; as the Dutch and the English subsequently did; the



Spaniards and Portuguese purchased manufactured goods from foreign



nations with the gold and the silver which they had wrung from



their colonies。(4*) They transformed their useful and industrious



citizens into slave…dealers and colonial tyrants: thus they



promoted the industry; the trade; and the maritime power of the



Dutch and English; in whom they raised up rivals who soon grew



strong enough to destroy their fleets and rob them of the sources



of their wealth。 In vain the kings of Spain enacted laws against



the exportation of specie and the importation of manufactured



goods。 The spirit of enterprise; industry; and commerce can only



strike root in the soil of religious and political liberty; gold



and silver will only abide where industry knows how to attract and



employ them。



    Portugal; however; under the auspices of an enlightened and



powerful minister; did make an attempt to develop her manufacturing



industry; the first results of which strike us with astonishment。



That country like Spain; had possessed from time immemorial fine



flocks of sheep。 Strabo tells us that a fine breed of sheep had



been introduced into Portugal from Asia; the cost of which amounted



to one talent per head。 When the Count of Ereceira became minister



in 1681; he conceived the design of establishing cloth



manufactories; and of thus working up the native raw material in



order to supply the mother country and the colonies with



home…manufactured goods。 With that view cloth workers were invited



from England; and so speedily did the native cloth manufactories



flourish in consequence of the protection secured to them; that



three years later (in 1684) it became practicable to prohibit the



importation of foreign cloths。 From that period Portugal supplied



herself and her colonies with native goods manufactured of



home…grown raw material; and prospered exceedingly in so doing for



a period of nineteen years; as attested by the evidence of English



writers themselves。(5*)



    It is true that even in those days the English gave proof of



that ability which at subsequent times they have managed to bring



to perfection。 In order to evade the tariff restrictions of



Portugal; they manufactured woollen fabrics; which slightly



differed from cloth though serving the same purpose; and imported



these into Portugal under the designation of woollen serges and



woollen druggets。 This trick of trade was; however; soon detected



and rendered innocuous by a decree prohibiting the importation of



such goods。(6*) The success of these measures is all the more



remarkable because the country; not a very great while before; had



been drained of a large amount of capital; which had found its way



abroad owing to the expulsion of the Jews; and was suffering



especially from all the evils of bigotry; of bad government; and of



a feudal aristocracy; which ground down popular liberties and



agriculture。(7*)



    In the year 1703; after the death of Count Ereceira; however;



the famous British ambassador Paul Methuen succeeded in persuading



the Portuguese Government that Portugal would be immensely



benefited if England were to permit the importation of Portuguese



wines at a duty one…third less than the duty levied upon wines of



other countries; in consideration of Portugal admitting English



cloths at the same rate of import duty (viz。 twenty…three per



cent。) which had been charged upon such goods prior to the year



1684。 It seems as though on the part of the King the hope of an



increase in his customs revenue; and on the part of the nobility



the hope of an increased income from rents; supplied the chief



motives for the conclusion of that commercial treaty in which the



Queen of England (Anne) styles the King of Portugal 'her oldest



friend and ally'  on much the same principle as the Roman Senate



was formerly wont to apply such designations to those rulers who



had the misfortune to be brought into closer relations with that



assembly。



    Directly after the conclusion of this treaty; Portugal was



deluged with English manufactures; and the first result of this



inundation was the sudden and complete ruin of the Portuguese



manufactories  a result which had its perfect counterparts in the



subsequent so…called Eden treaty with France and in the abrogation



of the Continental system in Germany。



    According to Anderson's testimony; the English; even in those



days; had become such adepts in the art of understating the value



of their goods in their custom…house bills of entry; that in effect



they paid no more than half the duty chargeable on them by the



tariff。(8*)



    'After the repeal of the prohibition;' says 'The British



Merchant;' 'we managed to carry away so much of their silver



currency that there remained but very little for their necessary



occasions; thereupon we attacked their gold。'(9*) This trade the



English continued down to very recent times。 They exported all t

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