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The　National　System　of　Political　Economy





by　Friedrich　List





translated　by　Sampson　S。　Lloyd；　1885













First　Book：　The　History







Chapter　1







The　Italians







　　　　At　the　revival　of　civilisation　in　Europe；　no　county　was　in　so



favourable　a　position　as　Italy　in　respect　to　commerce　and　industry。



Barbarism　had　not　been　able　entirely　to　eradicate　the　culture　and



civilisation　of　ancient　Rome。　A　genial　climate　and　a　fertile　soil；



notwithstanding　an　unskilful　system　of　cultivation；　yielded



abundant　nourishment　for　a　numerous　population。　The　most　necessary



arts　and　industries　remained　as　little　destroyed　as　the　municipal



institutions　of　ancient　Rome。　Prosperous　coast　fisheries　served



everywhere　as　nurseries　for　seamen；　and　navigation　along　Italy's



extensive　sea…coasts　abundantly　compensated　her　lack　of　internal



means　of　transport。　Her　proximity　to　Greece；　Asia　Minor；　and　Egypt；



and　her　maritime　intercourse　with　them；　secured　for　Italy　special



advantages　in　the　trade　with　the　East　which　had　previously；　though



not　extensively；　been　carried　on　through　Russia　with　the　countries



of　the　North。　By　means　of　this　commercial　intercourse　Italy



necessarily　acquired　those　branches　of　knowledge　and　those　arts　and



manufactures　which　Greece　had　preserved　from　the　civilisation　of



ancient　times。　



　　　　From　the　period　of　the　emancipation　of　the　Italian　cities　by



Otho　the　Great；　they　gave　evidence　of　what　history　was　testified



alike　in　earlier　and　later　times；　namely；　that　freedom　and　industry



are　inseparable　companions；　even　although　not　unfrequently　the　one



has　come　into　existence　before　the　other。　If　commerce　and　industry



are　flourishing　anywhere；　one　may　be　certain　that　there　freedom　is



nigh　at　hand：　if　anywhere　Freedom　was　unfolded　her　banner；　it　is　as



certain　that　sooner　or　later　industry　will　there　establish　herself；



for　nothing　is　more　natural　than　that　when　man　has　acquired



material　or　mental　wealth　he　should　strive　to　obtain　guarantees　for



the　transmission　of　his　acquisitions　to　his　successors；　or　that



when　he　has　acquired　freedom；　he　should　devote　all　his　energies　to



improve　his　physical　and　intellectual　condition。



　　　　For　the　first　time　since　the　downfall　of　the　free　states　of



antiquity　was　the　spectacle　again　presented　to　the　world　by　the



cities　of　Italy　of　free　and　rich　communities。　Cities　and



territories　reciprocally　rose　to　a　state　of　prosperity　and　received



a　powerful　impulse　in　that　direction　from　the　Crusades。　The



transport　of　the　Crusaders　and　their　baggage　and　material　of　war



not　only　benefited　Italy's　navigation；　it　afforded　also　inducements



and　opportunities　for　the　conclusion　of　advantageous　commercial



relations　with　the　East　for　the　introduction　of　new　industries；



inventions；　and　plants；　and　for　acquaintance　with　new　enjoyments。



On　the　other　hand；　the　oppressions　of　feudal　lordship　were　weakened



and　diminished　in　manifold　ways；　owing　to　the　same　cause；　tending



to　the　greater　freedom　of　the　cities　and　of　the　cultivation　of　the



soil。



　　　　Next　after　Venice　and　Genoa；　Florence　became　especially



conspicuous　for　her　manufactures　and　her　monetary　exchange



business。　Already；　in　the　twelfth　and　thirteenth　centuries；　her



silk　and　woollen　manufactures　were　very　flourishing；　the　guilds　of



those　trades　took　part　in　the　government；　and　under　their　influence



the　Republic　was　constituted。　The　woollen　manufacture　alone



employed　200　manufactories；　which　produced　annually　80；000　pieces



of　cloth；　the　raw　material　for　which　was　imported　from　Spain。　In



addition　to　these；　raw　cloth　to　the　amount　of　300；000　gold　gulden



was　imported　annually　from　Spain；　France；　Belgium；　and　Germany；



which；　after　being　finished　at　Florence；　was　exported　to　the



Levant。　Florence　conducted　the　banking　business　of　the　whole　of



Italy；　and　contained　eighty　banking　establishments。（1*）　The　annual



revenue　of　her　Government　amounted　to　300；000　gold　gulden　（fifteen



million　francs　of　our　present　money）；　considerably　more　than　the



revenue　of　the　kingdoms　of　Naples　and　Aragon　at　that　period；　and



more　than　that　of　Great　Britain　and　Ireland　under　Queen



Elizabeth。（2*）



　　　　We　thus　see　Italy　in　the　twelfth　and　thirteenth　centuries



possessing　all　the　elements　of　national　economical　prosperity；　and



in　respect　of　both　commerce　and　industry　far　in　advance　of　all



other　nations。　Her　agriculture　and　her　manufactures　served　as



patterns　and　as　motives　for　emulation　to　other　countries。　Her　roads



and　canals　were　the　best　in　Europe。　The　civilised　world　is　indebted



to　her　for　banking　institutions；　the　mariner's　compass；　improved



naval　architecture；　the　system　of　exchanges；　and　a　host　of　the　most



useful　commercial　customs　and　commercial　laws；　as　well　as　for　a



great　part　of　its　municipal　and　governmental　institutions。　Her



commercial；　marine；　and　naval　power　were　by　far　the　most　important



in　the　southern　seas。　She　was　in　possession　of　the　trade　of　the



world；　for；　with　the　exception　of　the　unimportant　portion　of　it



carried　on　over　the　northern　seas；　that　trade　was　confined　to　the



Mediterranean　and　the　Black　Sea。　She　supplied　all　nations　with



manufactures；　with　articles　of　luxury；　and　with　tropical　products；



and　was　supplied　by　them　with　raw　materials。　One　thing　alone　was



wanting　to　Italy　to　enable　her　to　become　what　England　has　become　in



our　days；　and　because　that　one　thing　was　wanting　to　her；　every



other　element　of　prosperity　passed　away　from　her；　she　lacked



national　union　and　the　power　which　springs　from　it。　The　cities　and



ruling　powers　of　Italy　did　not　act　as　members　of　one　body；　but　made



war　on　and　ravaged　one　another　like　independent　powers　and　states。



While　these　wars　raged　externally；　each　commonwealth　was



successively　overthrown　by　the　internal　conflicts　between



democracy；　aristocracy；　and　autocracy。　These　conflicts；　so



destructive　to　national　prosperity；　were　stimulated　and　increased



by　foreign　powers　and　their　invasions；　and　by　the　power　of　the



priesthood　at　home　and　its　pernicious　influence；　whereby　the



separate　Italian　communities　were　arrayed　against　one　another　in



two　hostile　factions。



　　　　How　Italy　thus　destroyed　herself　may　be　best　learned　from　the



history　of　her　maritime　states。　We　first　see　Amalfi　great　and



powerful　（from　the　eighth　to　the　eleventh　century）。（3*）　Her　ships



covered　the　seas；　and　all　the　coin　which　passed　current　in　Italy



and　the　Levant　was　that　of　Amalfi。　She　possessed　the　most　practical



code　of　maritime　laws；　and　those　laws　were　in　force　in　every　port



of　the　Mediterranean。　In　the　twelfth　century　her　naval　power　was



destroyed　by　Pisa；　Pisa　in　her　turn　fell　under　the　attacks　of



Genoa；　and　Genoa　herself；　after　a　conflict　of　a　hundred　years；　was



compelled　to　succumb　to　Venice。



　　　　The　fall　of　Venice　herself　appears　to　have　indirectly　resulted



from　this　narrow…minded　policy。　To　a　league　of　Italian　naval　powers



it　could　not　have　been　a　difficult　task；　not　merely　to　maintain　and



uphold　the　preponderance　of　Italy　in　Greece；　Asia　Minor；　the



Archipelago；　and　Egypt；　but　continually　to　extend　and　strengthen



it；　or　to　curb　the　progress　of　the　Turks　on　land　and　repress　their



piracies　at　sea；　while　contesting　with　the　Portuguese　the　passage



round　the　Cape　of　Good　Hope。



　　　　As　matters　actually　stood；　however；　Venice　was　not　merely　left



to　her　own　resources；　she　found　herself　crippled　by　the　external



attacks　of　her　sister　states　and　of　the　neighbonring　European



powers。



　　　　It　could　not　have　proved　a　difficult　task　to　a　well…organised



league　of　Italian　military　powers　to　defend　the　independence　of



Italy　against　the　aggression　of　the　great　monarchies。　The　attempt



to　form　such　a　league　was　actually　made　in　1526；　but　then　not　until



the　moment　of　actual　danger　and　only　for　temporary　defence。　The



lukewarmness　and　treachery　of　the　leaders　and　members　of　this



league　were　the　cause　of　the　subsequent　subjugation　of　Milan　and



the　fall　of　the　Tuscan　Republic。　From　that　period　must　be　dated　the



downfall　of　the　industry　and　commerce　of　Italy。（4*）



　　　　In　her　earlier　as　well　as　in　her　later　history　Venice　aimed　at



being　a　nation　for　herself　alone。　So　long　as　she　had　to　deal　only



with　petty　Italian　powers　or　with　decrepid　Greece；　she　had　no



difficulty　in　maintaining　a　supremacy　in　manufactures　and　commerce



through　the　countries　bordering　on　the　Mediterranean　and　Black



Seas。　As　soon；　however；　as　united　and　vigorous　nations　appeared　on



the　political　stage；　it　became　manifest　at　once　that　Venice　was



merely　a　city　and　her　aristocracy　only　a　municipal　one。　It　is　true



that　she　had　conquered　several　islands　and　even　extensive



provinces；　but　she　ruled　over　them　only　as　conquered　territory；　and



hence　（according　to　the　testimony　of　all　historians）　each　conquest



increased　her　weakness　instead　of　her　power　



　　　　At　the　same　period　the　spirit　within　the　Republic　by　which　she



had　grown　great　gradually　died　away。　The　power　and　prosperity　of



Venice　　the　work　of　a　patriotic　and　heroic　aristocracy　which　had



sprung　from　an　energetic　and　liberty…loving　democracy…maintained



itself　and　increased　so　long　as　the　freedom　of　democratic　energy



lent　it　support；　and　that　energy　was　guided　by　the　patriotism；　the



wisdom；　and　the　heroic　spirit　of　the　aristocracy。　But　in　proportion



as　the　aristocracy　became　a　despotic　oligarchy；　destructive　of　the



freedom　and　energies　of　the　people；　the　roots　of　power　and



prosperity　died　away；　notwithstanding　that　their　branches　and



leading　stem　appeared　still　to　flourish　for　some　time　longer。'（5*）



　　　　A　nation　which　has　fallen　into　slavery；'　says　Montesquieu；（6*）



'strives　rather　to　retain　what　it　possesses　than　to　acquire　more；



a　free　nation；　on　the　contrary；　strives　rather　to　acquire　than　to



retain。'　To　this　very　true　observation　he　might　have　added　　and



because　anyone　strives　only　to　retain　without　acquiring　he　must



come　to　grief；　for　every　nation　which　makes　no　forward　progress



sinks　lower　and　lower；　and　must　ultimately　fall。　Far　from　striving



to　extend　their　commerce　and　to　make　new　discoveries；　the　Venetians



never　even　conceived　the　idea　of　deriving　benefit　from　the



discoveries　made　by　other　nations。　That　they　could　be　excluded　from



the　trade　with　the　East　Indies　by　the　discovery　of　the　new



commercial　route　thither；　never　occurred　to　them