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the　wants　of　the　manufacturing　population；　now　the　manufacturing



population　produce　a　large　quantity　of　commodities　for　export　to



all　the　nations　of　the　earth；　from　whence　result　profitable　return



freights；　now　the　nation's　naval　power　increases　by　means　of　the



coasting　trade；　the　fisheries；　and　navigation　to　distant　lands；　and



with　it　the　guarantee　of　national　independence　and　influence　over



other　nations；　particularly　over　those　of　South　America；　now



science　and　art；　civilisation　and　literature；　are　improving　in　the



eastern　states；　whence　they　are　being　diffused　amongst　the　western



states。



　　　　These　were　the　circumstances　which　induced　the　United　States　to



lay　restrictions　upon　the　importation　of　foreign　manufactured



goods；　and　to　protect　their　native　manufactures。　With　what　amount



of　success　this　has　been　done；　we　have　shown　in　the　preceding



pages。　That　without　such　a　policy　a　manufacturing　power　could　never



have　been　maintained　successfully　in　the　Atlantic　states；　we　may



learn　from　their　own　experience　and　from　the　industrial　history　of



other　nations。



　　　　The　frequently　recurring　commercial　crises　in　America　have　been



very　often　attributed　to　these　restrictions　on　importation　of



foreign　goods；　but　without　reasonable　grounds。　The　earlier　as　well



as　the　later　experience　of　North　America　shows；　on　the　contrary；



that　such　crises　have　never　been　more　frequent　and　destructive　than



when　commercial　intercourse　with　England　was　least　subject　to



restrictions。　Commercial　crises　amongst　agricultural　nations；　who



procure　their　supplies　of　manufactured　goods　from　foreign　markets；



arise　from　the　disproportion　between　imports　and　exports。



Manufacturing　nations　richer　in　capital　than　agricultural　states；



and　ever　anxious　to　increase　the　quantity　of　their　exports；　deliver



their　goods　on　credit　and　encourage　consumption。　In　fact；　they　make



advances　upon　the　coming　harvest。　But　if　the　harvest　turn　out　so



poor　that　its　value　falls　greatly　below　that　of　the　goods



previously　consumed；　or　if　the　harvest　prove　so　rich　that　the



supply　of　produce　meets　with　no　adequate　demand　and　falls　in　price；



while　at　the　same　time　the　markets　still　continue　to　be　overstocked



with　foreign　goods　　then　a　commercial　crisis　will　occur　by　reason



of　the　disproportion　existing　between　the　means　of　payment　and　the



quantity　of　goods　previously　consumed；　as　also　by　reason　of　the



disproportion　between　supply　and　demand　in　the　markets　for　produce



and　manufactured　goods。　The　operations　of　foreign　and　native　banks



may　increase　and　promote　such　a　crisis；　but　they　cannot　create　it。



In　a　future　chapter　we　shall　endeavour　more　closely　to　elucidatc



this　subject。







NOTES：







1。　Statistical　Table　of　Massachusetts　for　the　Year　ending　April　1；



1837；　by　J。　P。　Bigelow；　Secretary　of　the　Commonwealth　（Boston；



1838）。　No　American　state　but　Massachusetts　possesses　similar



statistical　abstracts。　We　owe　those　here　referred　to；　to　Governor



Everett；　distinguished　alike　as　a　scholar；　an　author；　and　a



statesman。







2。　The　American　papers　of　July　1839　report　that　in　the



manufacturing　town　of　Lowell　alone　there　are　over　a　hundred



workwomen　who　have　each　over　a　thousand　dollars　deposited　to　their



credit　in　the　savings　bank。











Chapter　10







The　Teachings　of　History







　　　　Everywhere　and　at　all　times　has　the　well…being　of　the　nation



been　in　equal　proportion　to　the　intelligence；　morality；　and



industry　of　its　citizens；　according　to　these；　wealth　has　accrued　or



been　diminished；　but　industry　and　thrift；　invention　and　enterprise；



on　the　part　of　individuals；　have　never　as　yet　accomplished　aught　of



importance　where　they　were　not　sustained　by　municipal　liberty；　by



suitable　public　institutions　and　laws；　by　the　State　administration



and　foreign　policy；　but　above　all　by　the　unity　and　power；　of　the



nation。



　　　　History　everywhere　shows　us　a　powerful　process　of　reciprocal



action　between　the　social　and　the　individual　powers　and　conditions。



In　the　Italian　and　the　Hanseatic　cities；　in　Holland　and　England；　in



France　and　America；　we　find　the　powers　of　production；　and



consequently　the　wealth　of　individuals；　growing　in　proportion　to



the　liberties　enjoyed；　to　the　degree　of　perfection　of　political　and



social　institutions；　while　these；　on　the　other　hand；　derive



material　and　stimulus　for　their　further　improvement　from　the



increase　of　the　material　wealth　and　of　the　productive　power　of



individuals。



　　　　The　real　rise　of　the　industry　and　power　of　England　dates　only



from　the　days　of　the　actual　foundation　of　England's　national



freedom；　while　the　industry　and　power　of　Venice；　of　the　Hanse



Towns；　of　the　Spanish　and　Portuguese；　decayed　concurrently　with



their　loss　of　freedom。　However　industrious；　thrifty；　inventive；　and



intelligent；　individual　citizens　might　be；　they　could　not　make　up



for　the　lack　of　free　institutions。　History　also　teaches　that



individuals　derive　the　greater　part　of　their　productive　powers　from



the　social　institutions　and　conditions　under　which　they　are　placed。



　　　　The　influence　of　liberty；　intelligence；　and　enlightenment　over



the　power；　and　therefore　over　the　productive　capacity　and　wealth　of



a　nation；　is　exemplified　in　no　respect　so　clearly　as　in　navigation。



Of　all　industrial　pursuits；　navigation　most　demands　energy；



personal　courage；　enterprise；　and　endurance；　qualifications　that



can　only　flourish　in　an　atmosphere　of　freedom。　In　no　other　calling



do　ignorance；　superstition；　and　prejudice；　indolence；　cowardice；



effeminacy；　and　weakness　produce　such　disastrous　consequences；



nowhere　else　is　a　sense　of　self…reliance　so　indispensable。　Hence



history　cannot　point　to　a　single　example　of　an　enslaved　people



taking　a　prominent　part　in　navigation。　The　Hindoos；　the　Chinese；



and　the　Japanese　have　ever　strictly　confined　their　efforts　to　canal



and　river　navigation　and　the　coasting　trade。　In　ancient　Egypt



maritime　navigation　was　held　in　abhorrence；　probably　because



priests　and　rulers　dreaded　lest　by　means　of　it　the　spirit　of



freedom　and　independence　should　be　encouraged。　The　freest　and　most



enlightened　states　of　ancient　Greece　were　also　the　most　powerful　at



sea；　their　naval　power　ceased　with　their　freedom；　and　however　much



history　may　narrate　of　the　victories　of　the　kings　of　Macedonia　on



land；　she　is　silent　as　to　their　victories　at　sea。



　　　　When　were　the　Romans　powerful　at　sea；　and　when　is　nothing　more



heard　of　their　fleets？　When　did　Italy　lay　down　the　law　in　the



Mediterranean；　and　since　when　has　her　very　coasting　trade　fallen



into　the　hands　of　foreigners？　Upon　the　Spanish　navy　the　Inquisition



had　passed　sentence　of　death　long　ere　the　English　and　the　Dutch



fleets　had　executed　the　decree。　With　the　coming　into　power　of　the



mercantile　oligarchies　in　the　Hanse　Towns；　power　and　the　spirit　of



enterprise　took　leave　of　the　Hanseatic　League。



　　　　Of　the　Spanish　Netherlands　only　the　maritime　provinces　achieved



their　freedom；　whereas　those　held　in　subjection　by　the　Inquisition



had　even　to　submit　to　the　closing　of　their　rivers。　The　English



fleet；　victorious　over　the　Dutch　in　the　Channel；　now　took



possession　of　the　dominion　of　the　seas；　which　the　spirit　of　freedom



had　assigned　to　England　long　before；　and　yet　Holland；　down　to　our



own　days；　has　retained　a　large　proportion　of　her　mercantile　marine；



whereas　that　of　the　Spaniards　and　the　Portuguese　is　almost



annihilated。　In　vain　were　the　efforts　of　a　great　individual



minister　now　and　then　under　the　despotic　kings　of　France　to　create



a　fleet；　for　it　invariably　went　again　to　ruin。



　　　　But　how　is　it　that　at　the　present　day　we　witness　the　growing



strength　of　French　navigation　and　naval　power？　Hardly　had　the



independence　of　the　United　States　of　North　America　come　to　life；



when　we　find　the　Americans　contending　with　renown　against　the　giant



fleets　of　the　mother　country。　But　what　is　the　position　of　the



Central　and　South　American　nations？　So　long　as　their　flags　wave　not



over　every　sea；　but　little　dependence　can　be　placed　upon　the



effectiveness　of　their　republican　forms　of　government。　Contrast



these　with　Texas；　a　territory　that　has　scarcely　attained　to



political　life；　and　yet　already　claims　its　share　in　the　realm　of



Neptune。



　　　　But　navigation　is　merely　one　part　of　the　industrial　power　of　a



nation　　a　part　which　can　flourish　and　attain　to　importance　only



in　conjunction　with　all　the　other　complementary　parts。　Everywhere



and　at　all　times　we　se