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in　conjunction　with　all　the　other　complementary　parts。　Everywhere



and　at　all　times　we　see　navigation；　inland　and　foreign　trade；　and



even　agriculture　itself；　flourish　only　where　manufactures　have



reached　a　high　state　of　prosperity。　But　if　freedom　be　an



indispensable　condition　for　the　prosperity　of　navigation；　how　much



wore　must　it　be　so　for　the　prosperity　of　the　manufacturing　power；



for　the　growth　of　the　entire　producing　power　of　a　nation？　History



contains　no　record　of　a　rich；　commercial；　and　industrial　community



that　was　not　at　the　same　time　in　the　enjoyment　of　freedom。



　　　　Manufactures　everywhere　first　brought　into　operation　improved



weans　of　transport；　improved　river　navigation；　improved　highways；



steam　navigation　and　railways；　which　constitute　the　fundamental



elements　of　improved　systems　of　agriculture　and　of　civilisation。



　　　　History　teaches　that　arts　and　trades　migrated　from　city　to



city；　from　one　country　to　another。　Persecuted　and　oppressed　at



home；　they　took　refuge　in　cities　and　in　countries　where　freedom；



protection；　and　support　were　assured　to　them。　In　this　way　they



migrated　from　Greece　and　Asia　to　Italy；　from　Italy　to　Germany；



Flanders；　and　Brabant；　and　from　thence　to　Holland　and　England。



Everywhere　it　was　want　of　sense　and　despotism　that　drove　them　away；



and　the　spirit　of　freedom　that　attracted　them。　But　for　the　folly　of



the　Continental　governments；　England　would　have　had　difficulty　in



attaining　supremacy　in　industry。　But　does　it　appear　more　consistent



with　wisdom　for　us　in　Germany　to　wait　patiently　until　other　nations



are　impolitic　enough　to　drive　out　their　industries　and　thus　compel



them　to　seek　a　refuge　with　us；　or　that　we　should；　without　waiting



for　such　contingencies；　invite　them　by　proffered　advantages　to



settle　down　amongst　us？



　　　　It　is　true　that　experience　teaches　that　the　wind　bears　the　seed



from　one　region　to　another；　and　that　thus　waste　moorlands　have　been



transformed　into　dense　forests；　but　would　it　on　that　account　be



wise　policy　for　the　forester　to　wait　until　the　wind　in　the　course



of　ages　effects　this　transformation？



　　　　Is　it　unwise　on　his　part　if　by　sowing　and　planting　he　seeks　to



attain　the　same　object　within　a　few　decades？　History　tells　us　that



whole　nations　have　successfully　accomplished　that　which　we　see　the



forester　do？　Single　free　cities；　or　small　republics　and



confederations　of　such　cities　and　states；　limited　in　territorial



possessions；　of　small　population　and　insignificant　military　power；



but　fortified　by　the　energy　of　youthful　freedom　and　favoured　by



geographical　position　as　well　as　by　fortunate　circumstances　and



opportunities；　flourished　by　means　of　manufactures　and　commerce



long　before　the　great　monarchies；　and　by　free　commercial



intercourse　with　the　latter；　by　which　they　exported　to　them



manufactured　goods　and　imported　raw　produce　in　exchange；　raised



themselves　to　a　high　degree　of　wealth　and　power。　Thus　did　Venice；



the　Hanse　Towns　the　Belgians　and　the　Dutch。



　　　　Nor　was　this　system　of　free　trade　less　profitable　at　first　to



the　great　monarchies　themselves；　with　whom　these　smaller



communities　had　commercial　intercourse。　For；　having　regard　to　the



wealth　of　their　natural　resources　and　to　their　undeveloped　social



condition　the　free　importation　of　foreign　manufactured　goods　and



the　exportation　of　native　produce　presented　the　surest　and　most



effectual　means　of　developing　their　own　powers　of　production；　of



instilling　habits　of　industry　into　their　subjects　who　were　addicted



to　idleness　and　turbulence；　of　inducing　their　landowners　and　nobles



to　feel　an　interest　in　industry；　of　arousing　the　dormant　spirit　of



enterprise　amongst　their　merchants；　and　especially　of　raising　their



own　civilisation；　industry；　and　power。



　　　　These　effects　were　learned　generally　by　Great　Britain　from　the



trade　and　manufacturing　industry　of　the　Italians；　the　Hansards；　the



Belgians；　and　the　Dutch。　But　having　attained　to　a　certain　grade　of



development　by　means　of　free　trade；　the　great　monarchies　perceived



that　the　highest　degree　of　civilisation；　power；　and　wealth　can　only



be　attained　by　a　combination　of　manufactures　and　commerce　with



agriculture。　They　perceived　that　their　newly　established　native



manufactures　could　never　hope　to　succeed　in　free　competition　with



the　old　and　long　established　manufactures　of　foreigners；　that　their



native　fisheries　and　native　mercantile　marine；　the　foundations　of



their　naval　power；　could　never　make　successful　progress　without



special　privileges；　and　that　the　spirit　of　enterprise　of　their



native　merchants　would　always　be　kept　down　by　the　overwhelming



reserves　of　capital；　the　greater　experience　and　sagacity　of　the



foreigners。　Hence　they　sought；　by　a　system　of　restrictions；



privileges；　and　encouragements；　to　transplant　on　to　their　native



soil　the　wealth；　the　talents；　and　the　spirit　of　enterprise　of　the



foreigners。　This　policy　was　pursued　with　greater　or　lesser；　with



speedier　or　more　tardy　success；　just　in　proportion　as　the　measures



adopted　were　more　or　less　judiciously　adapted　to　the　object　in



view；　and　applied　and　pursued　with　more　or　less　energy　and



perseverance。



　　　　England；　above　all　other　nations；　has　adopted　this　policy。



Often　interrupted　in　its　execution　from　the　want　of　intelligence



and　self…restraint　on　the　part　of　her　rulers；　or　owing　to　internal



commotions　and　foreign　wars；　it　first　assumed　the　character　of　a



settled　and　practically　efficient　policy　under　Edward　VI；



Elizabeth；　and　the　revolutionary　period。　For　how　could　the　measures



of　Edward　III　work　satisfactorily　when　it　was　not　till　under　Henry



VI　that　the　law　permitted　the　carriage　of　corn　from　one　English



county　to　another；　or　the　shipment　of　it　to　foreign　parts；　when



still　under　Henry　VII　and　Henry　VIII　all　interest　on　money；　even



discount　on　bills；　was　held　to　be　usury；　and　when　it　was　still



thought　at　the　time　that　trade　might　be　encouraged　by　fixing　by　law



at　a　low　figure　the　price　of　woollen　goods　and　the　rate　of　wages；



and　that　the　production　of　corn　could　be　increased　by　prohibiting



sheep　farming　on　a　large　scale？



　　　　And　how　much　sooner　would　England's　woollen　manufactures　and



maritime　trade　have　reached　a　high　standard　of　prosperity　had　not



Henry　VIII　regarded　a　rise　in　the　prices　of　corn　as　an　evil；　had



he；　instead　of　driving　foreign　workmen　by　wholesale　from　the



kingdom；　sought　like　his　predecessors　to　augment　their　number　by



encouraging　their　immigration；　and　had　not　Henry　VII　refused　his



sanction　to　the　Act　of　Navigation　as　proposed　by　Parliament？



　　　　In　France　we　see　native　manufactures；　free　internal



intercourse；　foreign　trade；　fisheries；　navigation；　and　naval　power



　in　a　word；　all　the　attributes　of　a　great；　mighty；　and　rich



nation　（which　it　had　cost　England　the　persevering　efforts　of



centuries　to　acquire）　　called　into　existence　by　a　great　genius



within　the　space　of　a　few　years；　as　it　were　by　a　magician's　wand；



and　afterwards　all　of　them　yet　more　speedily　annihilated　by　the



iron　hand　of　fanaticism　and　despotism。



　　　　We　see　the　principle　of　free　trade　contending　in　vain　under



unfavourable　conditions　against　restriction　powerfully　enforced；



the　Hanseatic　League　is　ruined；　while　Holland　sinks　under　the　blows



of　England　and　France。



　　　　That　a　restrictive　commercial　policy　can　be　operative　for　good



only　so　far　as　it　is　supported　by　the　progressive　civilisation　and



free　institutions　of　a　nation；　we　learn　from　the　decay　of　Venice；



Spain；　and　Portugal；　from　the　relapse　of　France　in　consequence　of



the　revocation　of　the　Edict　of　Nantes；　and　from　the　history　of



England；　in　which　country　liberty　kept　pace　at　all　times　with　the



advance　of　industry；　trade；　and　national　wealth。



　　　　That；　on　the　contrary；　a　highly　advanced　state　of　civilisation；



with　or　without　free　institutions；　unless　supported　by　a　suitable



system　of　commercial　policy；　will　prove　but　a　poor　guarantee　for　a



nation's　economic　progress；　may　be　learnt　on　the　one　hand　from　the



history　of　the　North　American　free　states；　and　on　the　other　from



the　experience　of　Germany。



　　　　Modern　Germany；　lacking　a　system　of　vigorous　and　united



commercial　policy；　exposed　in　her　home　markets　to　competition　with



a　foreign　manufacturing　power　in　every　way　superior　to　her　own；



while　excluded　at　the　same　time　from　foreign　markets　by　arbitrary



and　often　capricious　restrictions；　and　very　far　indeed　from　making



that　progress　in　industry　to　which　her　degree　of　culture　entitles



her；　c