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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

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