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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