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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
for a long time maintained commercial intercourse with England; at
length established in London; in the year 1250; at the invitation
of the King; the factory which became so celebrated under the name
of 'The Steelyard' an institution which at first was so influential
in promoting culture and industry in England; but afterwards
excited so much national jealousy; and which for 375 years; until
its ultimate dissolution; was the cause of such warm and
long…continued conflicts。
England formerly stood in similar relations with the Hanseatic
League to those in which Poland afterwards stood with the Dutch;
and Germany with the English; she supplied them with wool; tin;
hides; butter; and other mineral and agricultural products; and
received manufactured articles in exchange。 The Hansards conveyed
the raw products which they obtained from England and the northern
states to their establishment at Bruges (founded in 1252); and
exchanged them there for Belgian cloths and other manufactures; and
for Oriental products and manufactures which came from Italy; which
latter they carried back to all the countries bordering on the
northern seas。
A third factory of theirs; at Novgorod in Russia (established
in 1272); supplied them with furs; flax; hemp; and other raw
products in exchange for manufactures。 A fourth factory; at Bergen
in Norway (also founded in 1272); was occupied principally with
fisheries and trade in train oil and fish products。(7*)
The experience of all nations in all times teaches us that
nations; so long as they remain in a state of barbarism; derive
enormous benefit from free and unrestricted trade; by which they
can dispose of the products of the chase and those of their
pastures; forests; and agriculture in short; raw products of
every kind; obtaining in exchange better clothing materials;
machines; and utensils; as well as the precious metals the great
medium of exchange and hence that at first they regard free trade
with approval。 But experience also shows that those very nations;
the farther advances that they make for themselves in culture and
in industry; regard such a system of trade with a less favourable
eye; and that at last they come to regard it as injurious and as a
hindrance to their further progress。 Such was the case with the
trade between England and the Hansards。 A century had scarcely
elapsed from the foundation of the factory of the 'Steelyard' when
Edward III conceived the opinion that a nation might do something
more useful and beneficial than to export raw wool and import
woollen cloth。 He therefore endeavoured to attract Flemish weavers
into England by granting them all kinds of privileges; and as soon
as a considerable number of them had got to work; he issued a
prohibition against wearing any articles made of foreign cloth。(8*)
The wise measures of this king were seconded in the most
marvellous manner by the foolish policy pursued by the rulers of
other countries a coincidence which has not unfrequently to be
noted in commercial history。 If the earlier rulers of Flanders and
Brabant did everything in their power to raise their native
industry to a flourishing condition; the later ones did everything
that was calculated to make the commercial and manufacturing
classes discontented and to incite them to emigration。(9*)
In the year 1413 the English woollen industry had already made
such progress that Hume could write respecting that period; 'Great
jealousy prevailed at this time against foreign merchants; and a
number of restrictions were imposed on their trade; as; for
instance; that they were required to lay out in the purchase of
goods produced in England the whole value which they realized from
articles which they imported into it。(10*)
Under Edward IV this jealousy of foreign traders rose to such
a pitch that the importation of foreign cloth; and of many other
articles; was absolutely prohibited。(11*)
Notwithstanding that the king was afterwards compelled by the
Hansards to remove this prohibition; and to reinstate them in their
ancient privileges; the English woollen manufacture appears to have
been greatly promoted by it; as is noted by Hume in treating of the
reign of Henry VII; who came to the throne half a century later
than Edward IV。
'The progress made in industry and the arts imposed limits; in
a much more effective way than the rigour of laws could do; to the
pernicious habit of the nobility of maintaining a great number of
servants。 Instead of vying with one another in the number and
valour of their retainers; the nobility were animated by another
kind of rivalry more in accordance with the spirit of civilisation;
inasmuch as they now sought to excel one another in the beauty of
their houses; the elegance of their equipages; and the costliness
of their furniture。 As the people could no longer loiter about in
pernicious idleness; in the service of their chieftains and
patrons; they became compelled; by learning some kind of handiwork;
to make themselves useful to the community。 Laws were again enacted
to prevent the export of the precious metals; both coined and
uncoined; but as these were well known to be inoperative; the
obligation was again imposed on foreign merchants to lay out the
whole proceeds of goods imported by them; in articles of English
manufacture。'(12*)
In the time of Henry VIII the prices of all articles of food
had considerably risen; owing to the great number of foreign
manufacturers in London; a sure sign of the great benefit which t