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in conjunction with all the other complementary parts。 Everywhere
and at all times we see navigation； inland and foreign trade； and
even agriculture itself； flourish only where manufactures have
reached a high state of prosperity。 But if freedom be an
indispensable condition for the prosperity of navigation； how much
wore must it be so for the prosperity of the manufacturing power；
for the growth of the entire producing power of a nation？ History
contains no record of a rich； commercial； and industrial community
that was not at the same time in the enjoyment of freedom。
Manufactures everywhere first brought into operation improved
weans of transport； improved river navigation； improved highways；
steam navigation and railways； which constitute the fundamental
elements of improved systems of agriculture and of civilisation。
History teaches that arts and trades migrated from city to
city； from one country to another。 Persecuted and oppressed at
home； they took refuge in cities and in countries where freedom；
protection； and support were assured to them。 In this way they
migrated from Greece and Asia to Italy； from Italy to Germany；
Flanders； and Brabant； and from thence to Holland and England。
Everywhere it was want of sense and despotism that drove them away；
and the spirit of freedom that attracted them。 But for the folly of
the Continental governments； England would have had difficulty in
attaining supremacy in industry。 But does it appear more consistent
with wisdom for us in Germany to wait patiently until other nations
are impolitic enough to drive out their industries and thus compel
them to seek a refuge with us； or that we should； without waiting
for such contingencies； invite them by proffered advantages to
settle down amongst us？
It is true that experience teaches that the wind bears the seed
from one region to another； and that thus waste moorlands have been
transformed into dense forests； but would it on that account be
wise policy for the forester to wait until the wind in the course
of ages effects this transformation？
Is it unwise on his part if by sowing and planting he seeks to
attain the same object within a few decades？ History tells us that
whole nations have successfully accomplished that which we see the
forester do？ Single free cities； or small republics and
confederations of such cities and states； limited in territorial
possessions； of small population and insignificant military power；
but fortified by the energy of youthful freedom and favoured by
geographical position as well as by fortunate circumstances and
opportunities； flourished by means of manufactures and commerce
long before the great monarchies； and by free commercial
intercourse with the latter； by which they exported to them
manufactured goods and imported raw produce in exchange； raised
themselves to a high degree of wealth and power。 Thus did Venice；
the Hanse Towns the Belgians and the Dutch。
Nor was this system of free trade less profitable at first to
the great monarchies themselves； with whom these smaller
communities had commercial intercourse。 For； having regard to the
wealth of their natural resources and to their undeveloped social
condition the free importation of foreign manufactured goods and
the exportation of native produce presented the surest and most
effectual means of developing their own powers of production； of
instilling habits of industry into their subjects who were addicted
to idleness and turbulence； of inducing their landowners and nobles
to feel an interest in industry； of arousing the dormant spirit of
enterprise amongst their merchants； and especially of raising their
own civilisation； industry； and power。
These effects were learned generally by Great Britain from the
trade and manufacturing industry of the Italians； the Hansards； the
Belgians； and the Dutch。 But having attained to a certain grade of
development by means of free trade； the great monarchies perceived
that the highest degree of civilisation； power； and wealth can only
be attained by a combination of manufactures and commerce with
agriculture。 They perceived that their newly established native
manufactures could never hope to succeed in free competition with
the old and long established manufactures of foreigners； that their
native fisheries and native mercantile marine； the foundations of
their naval power； could never make successful progress without
special privileges； and that the spirit of enterprise of their
native merchants would always be kept down by the overwhelming
reserves of capital； the greater experience and sagacity of the
foreigners。 Hence they sought； by a system of restrictions；
privileges； and encouragements； to transplant on to their native
soil the wealth； the talents； and the spirit of enterprise of the
foreigners。 This policy was pursued with greater or lesser； with
speedier or more tardy success； just in proportion as the measures
adopted were more or less judiciously adapted to the object in
view； and applied and pursued with more or less energy and
perseverance。
England； above all other nations； has adopted this policy。
Often interrupted in its execution from the want of intelligence
and self…restraint on the part of her rulers； or owing to internal
commotions and foreign wars； it first assumed the character of a
settled and practically efficient policy under Edward VI；
Elizabeth； and the revolutionary period。 For how could the measures
of Edward III work satisfactorily when it was not till under Henry
VI that the law permitted the carriage of corn from one English
county to another； or the shipment of it to foreign parts； when
still under Henry VII and Henry VIII all interest on money； even
discount on bills； was held to be usury； and when it was still
thought at the time that trade might be encouraged by fixing by law
at a low figure the price of woollen goods and the rate of wages；
and that the production of corn could be increased by prohibiting
sheep farming on a large scale？
And how much sooner would England's woollen manufactures and
maritime trade have reached a high standard of prosperity had not
Henry VIII regarded a rise in the prices of corn as an evil； had
he； instead of driving foreign workmen by wholesale from the
kingdom； sought like his predecessors to augment their number by
encouraging their immigration； and had not Henry VII refused his
sanction to the Act of Navigation as proposed by Parliament？
In France we see native manufactures； free internal
intercourse； foreign trade； fisheries； navigation； and naval power
in a word； all the attributes of a great； mighty； and rich
nation （which it had cost England the persevering efforts of
centuries to acquire） called into existence by a great genius
within the space of a few years； as it were by a magician's wand；
and afterwards all of them yet more speedily annihilated by the
iron hand of fanaticism and despotism。
We see the principle of free trade contending in vain under
unfavourable conditions against restriction powerfully enforced；
the Hanseatic League is ruined； while Holland sinks under the blows
of England and France。
That a restrictive commercial policy can be operative for good
only so far as it is supported by the progressive civilisation and
free institutions of a nation； we learn from the decay of Venice；
Spain； and Portugal； from the relapse of France in consequence of
the revocation of the Edict of Nantes； and from the history of
England； in which country liberty kept pace at all times with the
advance of industry； trade； and national wealth。
That； on the contrary； a highly advanced state of civilisation；
with or without free institutions； unless supported by a suitable
system of commercial policy； will prove but a poor guarantee for a
nation's economic progress； may be learnt on the one hand from the
history of the North American free states； and on the other from
the experience of Germany。
Modern Germany； lacking a system of vigorous and united
commercial policy； exposed in her home markets to competition with
a foreign manufacturing power in every way superior to her own；
while excluded at the same time from foreign markets by arbitrary
and often capricious restrictions； and very far indeed from making
that progress in industry to which her degree of culture entitles
her； c