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liberty　of　individual　citizens；　in　the　case　of　international　trade



the　highest　degree　of　individual　liberty　may　consist　with　a　high



degree　of　protective　policy。　Indeed；　it　is　even　possible　that　the



greatest　freedom　of　international　trade　may　result　in　national



servitude；　as　we　hope　hereafter　to　show　from　the　case　of　Poland。　In



respect　to　this　Montesquieu　says　truly；　'Commerce　is　never



subjected　to　greater　restrictions　than　in　free　nations；　and　never



subjected　to　less　ones　than　in　those　under　despotic



government。'（10*）







NOTES：







1。　De　l'Ecluse；　Florence　et　ses　Vicissitudes；　pp。　23；　26；　32；　163；



213。







2。　Pechio；　Histoire　de　l'Economie　Politique　en　Italie。







3。　Amalfi　contained　at　the　period　of　her　prosperity　50；000



inhabitants。　Flavio　Guio；　the　inventor　of　the　mariner's　compass；



was　a　citizen　of　Amalfi。　It　was　the　sack　of　Amalfi　by　the　Pisans



（1135　or　1137）　that　that　ancient　book　was　discovered　which　later　on



became　so　injurious　to　the　freedom　and　energies　of　Germany　　the



Pandects。







4。　Hence　Charles　V　was　the　destroyer　of　commerce　and　industry　in



Italy；　as　he　was　also　in　the　Netherlands　and　in　Spain。　He　was　the



introducer　of　nobility　by　patent；　and　of　the　idea　that　it　was



disgraceful　for　the　nobility　to　carry　on　commerce　or　manufactures



　an　idea　which　had　the　most　destructive　influence　on　the　national



industry。　Before　his　time　the　contrary　idea　prevailed；　the　Medici



continued　to　be　engaged　in　commerce　long　after　they　had　become



sovereign　rulers。







5。　〃Quand　les　nobles；　au　lien　de　verser　leur　sang　pour　la　patrie；



au　lieu　d'illustrer　l'etat　par　des　victoires　et　de　l'agrandir　par



des　conquetes；　n'eurent　plus　qu'a　jouir　des　honneurs　et　a　se



partager　des　impots　on　dut　se　demander　pourquoi　il　y　avait　huit　ou



neuf　cents　habitants　de　Venice　qui　se　disaient　proprietaries　de



toute　la　Republique。〃　（Daru；　Histoire　de　Venise；　vol。　iv。　ch。



xviii。）







6。　Esprit　des　Lois；　p。　192。







7。　A　mere　charlatan；　Marco　Brasadino；　who　professed　to　have　the　art



of　making　gold；　was　welcomed　by　the　Venetian　aristocracy　as　a



saviour。　（Daru；　Histoire　de　Venise；　vol。　iii。　ch。　xix。）







8。　Venice；　as　Holland　and　England　subsequently　did；　made　use　of



every　opportunity　of　attracting　to　herself　manufacturing　industry



and　capital　from　foreign　states。　Also　a　considerable　number　of　silk



manufacturers　emigrated　to　Venice　from　Luces；　where　already　in　the



thirteenth　century　the　manufacturer　of　velvets　and　brocades　was



very　flourishing；　in　consequence　of　the　oppression　of　the　Lucchese



tyrant　Castruccio　Castracani。　（Sandu；　Histoire　de　Venise；　vol。　i。



pp。　247…256。）







9。　Sismondi；　Histoire　des　Republiques　Italiennes；　Pt。　I；　p。　285。







10。　Esprit　des　Lois；　livre　xx。　ch。　xii。







Chapter　2







The　Hansards











　　　　The　spirit　of　industry；　commerce；　and　liberty　having　attained



full　influence　in　Italy；　crossed　the　Alps；　permeated　Germany；　and



erected　for　itself　a　new　throne　on　the　shores　of　the　northern　seas；



the　Emperor　Henry　I；　the　father　of　the　liberator　of　the　Italian



municipalities；　promoted　the　founding　of　new　cities　and　the



enlargement　of　older　ones　which　were　already　partly　established　on



the　sites　of　the　ancient　Roman　colonies　and　partly　in　the　imperial



domains。



　　　　Like　the　kings　of　France　and　England　at　a　later　period；　he　and



his　successors　regarded　the　cities　as　the　strongest　counterpoise　to



the　aristocracy；　as　the　richest　source　of　revenue　to　the　State；　as



a　new　basis　for　national　defence。　By　means　of　their　commercial



relations　with　the　cities　of　Italy；　their　competition　with　Italian



industry；　and　their　free　institutions；　these　cities　soon　attained



to　a　high　degree　of　prosperity　and　civilisation。　Life　in　common



fellow…citizenship　created　a　spirit　of　progress　in　the　arts　and　in



manufacture；　as　well　as　zeal　to　achieve　distinction　by　wealth　and



by　enterprise；　while；　on　the　other　hand；　the　acquisition　of



material　wealth　stimulated　exertions　to　acquire　culture　and



improvement　in　their　political　condition。



　　　　Strong　through　the　power　of　youthful　freedom　and　of　flourishing



industry；　but　exposed　to　the　attacks　of　robbers　by　land　and　sea；



the　maritime　towns　of　Northern　Germany　soon　felt　the　necessity　of



a　closer　mutual　union　for　protection　and　defence。　With　this　object



Hamburg　and　L黚eck　formed　a　league　in　1241；　which　before　the　close



of　that　century　embraced　all　the　cities　of　any　importance　on　the



coasts　of　the　Baltic　and　North　Seas；　or　on　the　banks　of　the　Oder；



the　Elbe；　the　Weser；　and　the　Rhine　（eighty…five　in　all）。　This



confederation　adopted　the　title　of　the　'Hansa；'　which　in　the　Low



German　dialect　signifies　a　league。



　　　　Promptly　comprehending　what　advantages　the　industry　of



individuals　might　derive　from　a　union　of　their　forces；　the　Hansa



lost　no　time　in　developing　and　establishing　a　commercial　policy



which　resulted　in　a　degree　of　commercial　prosperity　previously



unexampled。　Perceiving　that　whatever　power　desires　to　create　and



maintain　an　extensive　maritime　commerce；　must　possess　the　means　of



defending　it；　they　created　a　powerful　navy；　being　further　convinced



that　the　naval　power　of　any　country　is　strong　or　weak　in　proportion



to　the　extent　of　its　mercantile　marine　and　its　sea　fisheries；　they



enacted　a　law　that　Hanseatic　goods　should　be　conveyed　only　on　board



Hanseatic　vessels；　and　established　extensive　sea　fisheries。　The



English　navigation　laws　were　copied　from　those　of　the　Hanseatic



League；　just　as　the　latter　were　an　imitation　of　those　of



Venice。（1*）



　　　　England　in　that　respect　only　followed　the　example　of　those　who



were　her　forerunners　in　acquiring　supremacy　at　sea。　Yet　the



proposal　to　enact　a　navigation　Act　in　the　time　of　the　Long



Parliament　was　then　treated　as　a　novel　one。　Adam　Smith　appears　in



his　comment　on　this　Act（2*）　not　to　have　known；　or　to　have　refrained



from　stating；　that　already　for　centuries　before　that　time　and　on



various　occasions　the　attempt　had　been　made　to　introduce　similar



restrictions。　A　proposal　to　that　effect　made　by　Parliament　in　1461



was　rejected　by　Henry　VI；　and　a　similar　one　made　by　James　I；



rejected　by　Parliament；（3*）　indeed；　long　before　these　two　proposals



（viz。　in　1381）　such　restrictions　had　been　actually　imposed　by



Richard　II；　though　they　soon　proved　inoperative　and　passed　into



oblivion。　The　nation　was　evidently　not　then　ripe　for　such



legislation。　Navigation　laws；　like　other　measures　for　protecting



native　industry；　are　so　rooted　in　the　very　nature　of　those　nations



who　feel　themselves　fitted　for　future　industrial　and　commercial



greatness；　that　the　United　States　of　North　America　before　they　had



fully　won　their　independence　had　already　at　the　instance　of　James



Madison　introduced　restrictions　on　foreign　shipping；　and



undoubtedly　with　not　less　great　results　（as　will　be　seen　in　a



future　chapter）　than　England　had　derived　from　them　a　hundred　and



fifty　years　before。



　　　　The　northern　princes；　impressed　with　the　benefits　which　trade



with　the　Hansards　promised　to　yield　to　them　　inasmuch　as　it　gave



them　the　means　not　only　of　disposing　of　the　surplus　products　of



their　own　territories；　and　of　obtaining　in　exchange　much　better



manufactured　articles　than　were　produced　at　home；　but　also　of



enriching　their　treasuries　by　means　of　import　and　export



duties；（4*）　and　of　diverting　to　habits　of　industry　their　subjects



who　were　addicted　to　idleness；　turbulence；　and　riot　　considered



it　as　a　piece　of　good　fortune　whenever　the　Hansards　established



factories　on　their　territory；　and　endeavoured　to　induce　them　to　do



so　by　wanting　them　privileges　and　favours　of　every　kind。　The　kings



of　England　were　conspicuous　above　all　other　sovereigns　in　this



respect。



　　　　The　trade　of　England　（says　Hume）　was　formerly　entirely　in　the



hands　of　foreigners；　but　especially　of　the　'Easterlings'（5*）　whom



Henry　III　constituted　a　corporation；　to　whom　he　granted　privileges；



and　whom　he　freed　from　restrictions　and　import　duties　to　which



other　foreign　merchants　were　liable。　The　English　at　that　time　were



so　inexperienced　in　commerce　that　from　the　time　of　Edward　II　the



Hansards；　under　the　title　of　'Merchants　of　the　Steelyard'；



monopolised　the　entire　foreign　trade　of　the　kingdom。　And　as　they



conducted　it　exclusively　in　their　own　ships；　the　shipping　interest



of　England　was　in　a　very　pitiable　condition。（6*）



　　　　Some　German　merchants；　viz。　those　of　Cologne；　after　they　had