第4章

Thoughtheycontinuedpowerfulforatimeowingtothespirit

ofyouthfulfreedomwhichpervadedthem，yettheseleagueslacked

theinternalguaranteeofstability，theprincipleofunity，the

cement。Separatedfromeachotherbytheestatesofthenobility，

bytheserfdomofthepopulationofthecountry，theirunionwas

doomedsoonerorlatertobreakdown，owingtothegradualincrease

andenrichmentoftheagriculturalpopulation，amongwhom，through

thepoweroftheprinces，theprincipleofunitywasmaintained。

Thecities，inasmuchastheytendedtopromotetheprosperityof

agriculture，bysodoingnecessarilywereworkingattheirown

effacement，unlesstheycontrivedtoincorporatetheagricultural

classesorthenobilityasmembersoftheirunions。Forthe

accomplishmentofthatobject，however，theylackedtherequisite

higherpoliticalinstinctsandknowledge。Theirpoliticalvision

seldomextendedbeyondtheirowncitywalls。

Twoonlyoftheseconfederations，SwitzerlandandtheSeven

UnitedProvinces，actuallycarriedoutthisincorporation，andthat

notastheresultofreflection，butbecausetheywerecompelledto

it，andfavouredbycircumstances，andforthatreasonthose

confederationsstillexist。TheSwissConfederationisnothingbut

aconglomerateofGermanimperialcities，establishedandcemented

togetherbythefreepopulationsoccupyingtheinterveningtracts

ofcountry。

TheremainingleaguesofGermancitieswereruinedowingto

theircontemptfortheruralpopulation，andfromtheirabsurd

burgherarrogance，whichdelightedinkeepingthatpopulationin

subjection，ratherthaninraisingthemtotheirownlevel。

Thesecitiescouldonlyhaveattainedunitybymeansofan

hereditaryroyalauthority。ButthisauthorityinGermanylayin

thehandsoftheprinces，who，inordertoavertrestraintsupon

theirownarbitraryrule，andtokeepboththecitiesandtheminor

noblesinsubjection，wereinterestedinresistingthe

establishmentofanhereditaryempire。

HencetheperseveringadherencetotheideaoftheImperial

RomanEmpireamongstGermankings。Onlyattheheadofarmieswere

theemperorsrulers；onlywhentheywenttowarweretheyableto

bringtogetherprincesandcitiesundertheirbanner。Hencetheir

protectionofciviclibertyinGermany，andtheirhostilitytoit

andpersecutionofitinItaly。

TheexpeditionstoRomenotonlyweakenedmoreandmorethe

kinglypowerinGermany，theyweakenedthoseverydynastiesthrough

which，withintheEmpire，intheheartofthenation，a

consolidatedpowermighthavegrownup。Butwiththeextinctionof

theHouseofHohenstaufenthenucleusofconsolidatedpowerwas

brokenupintoathousandfragments。

Thesenseoftheimpossibilityofconsolidatingtheheartof

thenationimpelledtheHouseofHapsburg，originallysoweakand

poor，toutilisethenation\'svigourinfoundingaconsolidated

hereditarymonarchyonthesouth-easternfrontieroftheGerman

Empire，bysubjugatingalienraces，apolicywhichinthenortheast

wasimitatedbytheMargravesofBrandenburg。Thusinthe

south-eastandnorth-easttherearosehereditarysovereignties

foundeduponthedominionoveralienraces，whileinthetwo

westerncornersofthelandtworepublicsgrewintoexistencewhich

continuallyseparatedthemselvesmoreandmorefromtheparent

nation；andwithin，inthenation\'sheart，disintegration，

impotence，anddissolutioncontinuallyprogressed。Themisfortunes

oftheGermannationwerecompletedbytheinventionsofgunpowder

andoftheartofprinting，therevivaloftheRomanlaw，the

Reformation，andlastlythediscoveryofAmericaandofthenew

routetoIndia。

Theintellectual，social，andeconomicrevolutionwhichwehave

describedproduceddivisionsanddisruptionbetweentheconstituent

membersoftheEmpire，disunionbetweentheprinces，disunion

betweenthecities，disunionevenbetweenthevariousguildsof

individualcities，andbetweenneighboursofeveryrank。The

energiesofthenationwerenowdivertedfromthepursuitof

industry，agriculture，trade，andnavigation；fromtheacquisition

ofcolonies，theameliorationofinternalinstitutions，infact

fromeverykindofsubstantialimprovement，thepeoplecontended

aboutdogmasandtheheritageoftheChurch。

AtthesametimecamethedeclineoftheHanseaticLeagueand

ofVenice，andwithitthedeclineofGermany\'swholesaletrade，

andofthepowerandlibertiesoftheGermancitiesbothinthe

northandinthesouth。

ThencametheThirtyYears\'Warwithitsdevastationsofall

territoriesandcities。HollandandSwitzerlandseceded，whilethe

fairestprovincesoftheEmpirewereconqueredbyFrance。Whereas

formerlysinglecities，suchasStrasburg，N黵nberg，Augsburg，had

surpassedinpowerentireelectorates，theynowsankintoutter

impotenceinconsequenceoftheintroductionofstandingarmies。

Ifbeforethisrevolutionthecitiesandtheroyalpowerhad

beenmoreconsolidated——ifakingexclusivelybelongingtothe

GermannationhadobtainedacompletemasteryoftheReformation，

andhadcarrieditoutintheinterestsoftheunity，power，and

freedomofthenation——howverydifferentlywouldthe

agriculture，industry，andtradeoftheGermanshavebeen

developed。Bythesideofconsiderationssuchasthese，how

pitiableandunpracticalseemsthattheoryofpoliticaleconomy

whichwouldhaveusreferthematerialwelfareofnationssolelyto

theproductionofindividuals，whollylosingsightofthefactthat

theproducingpowerofallindividualsistoagreatextent

determinedbythesocialandpoliticalcircumstancesofthenation。

TheintroductionoftheRomanlawweakenednonationsomuchasthe

German。Theunspeakableconfusionwhichitbroughtintothelegal

statusandrelationsofprivateindividuals，wasnottheworstof

itsbadeffects。Moremischievouswasitbyfar，inthatitcreated

acasteoflearnedmenandjuristsdifferingfromthepeoplein

spiritandlanguage，whichtreatedthepeopleasaclassunlearned

inthelaw，asminors，whichdeniedtheauthorityofallsound

humanunderstanding，whicheverywheresetupsecrecyintheroomof

publicity，which，livinginthemostabjectdependenceandliving

uponarbitrarypower，everywhereadvocateditanddefendedits

interests，everywheregnawedattherootsofliberty。Thuswesee

eventothebeginningoftheeighteenthcenturyinGermany，

barbarisminliteratureandlanguage，barbarisminlegislation，

Stateadministrationandadministrationofjustice；barbarismin

agriculture，declineofindustryandofalltradeuponalarge

scale，wantofunityandofforceinnationalcohesion；

powerlessnessandweaknessonallhandsindealingwithforeign

nations。

OnethingonlytheGermanshadpreserved；thatwastheir

aboriginalcharacter，theirloveofindustry，order，thrift，and

moderation，theirperseveranceandenduranceinresearchandin

business，theirhoneststrivingafterimprovement，anda

considerablenaturalmeasureofmorality，prudence，and

circumspection。

Thischaracterboththerulersandtheruledhadincommon。

Afterthealmosttotaldecayofnationalityandtherestorationof

tranquillity，peoplebeganinsomeindividualisolatedcirclesto

introduceorder，improvement，andprogress。Nowherewaswitnessed

morezealincherishingeducation，manners，religion，art，and

science；nowherewasabsolutepowerexercisedwithgreater

moderationorwithmoreadvantagetogeneralenlightenment，order，

andmorality，tothereformofabusesandtheadvancementofthe

commonwelfare。

ThefoundationfortherevivalofGermannationalitywas

undoubtedlylaidbytheGovernmentsthemselves，bytheir

conscientiousdevotionoftheproceedsofthesecularisedChurch

landstotheusesofeducationandinstruction，ofartandscience，

ofmoralityandobjectsofpublicutility。Bythesemeasureslight

madeitswayintotheStateadministrationandtheadministration

ofjustice，intoeducationandliterature，intoagriculture，

industry，andcommerce，andaboveallamongstthemasses。Thus

Germanydevelopedherselfinatotallydifferentwayfromallother

nations。Elsewherehighmentalculturerathergrewoutofthe

evolutionofthematerialpowersofproduction，whilstinGermany

thegrowthofmaterialpowersofproductionwastheoutcomechiefly

ofanantecedentintellectualdevelopment。Henceatthepresentday

thewholecultureoftheGermansistheoretical。Hencealsothose

manyunpracticalandoddtraitsintheGermancharacterwhichother

nationsnoticeinus。

ForthemomenttheGermansareinthepositionofanindividual

who，havingbeenformerlydeprivedoftheuseofhislimbs，first

learnedtheoreticallytheartsofstandingandwalking，ofeating

anddrinking，oflaughingandweeping，andthenonlyproceededto

puttheminpractice。HencecomestheGermanpredilectionfor

philosophicsystemsandcosmopolitandreams。Theintellect，which

wasnotallowedtostirintheaffairsofthisworld，stroveto

exerciseitselfintherealmsofspeculation。Hence，too，wefind

thatnowherehasthedoctrineofAdamSmithandofhisdisciples

obtainedalargerfollowingthaninGermany；nowhereelsehave

peoplemorethoroughlybelievedinthecosmopolitanmagnanimityof

MessrsCanningandHuskisson。

ForthefirstprogressinmanufacturesGermanyisindebtedto

therevocationoftheEdictofNantesandtothenumerousrefugees

whobythatinsanemeasureweredriventoemigratetoalmostevery

partofGermany，andestablishedeverywheremanufacturesofwool，

silk，jewellery，hats，glass，china，gloves，andindustriesof

everykind。

ThefirstGovernmentmeasuresforthepromotionofmanufactures

inGermanywereintroducedbyAustriaandPrussia；inAustriaunder

CharlesVIandMariaTheresa，butevenmoreunderJosephII。

Austriahadformerlysufferedenormouslyfromthebanishmentofthe

Protestants，hermostindustriouscitizens；norcanitbeexactly

affirmedthatshedistinguishedherselfintheimmediatesequelby

promotingenlightenmentandmentalculture。Afterwards，in

consequenceofaprotectivetariff，improvedsheepfarming，better

roads，andotherencouragements，industrymadeconsiderablestrides

evenunderMariaTheresa。

Moreenergeticallystillwasthisworkpushedforwardunder

JosephIIandwithimmenselygreatersuccess。Atfirst，indeed，the

resultscouldnotbecalledimportant，becausetheEmperor，

accordingtohiswont，wastooprecipitateintheseasinallhis

otherschemesofreform，andAustria，inrelationtootherstates，

stilloccupiedtoobackwardaposition。Hereaselsewhereitbecame

evidentthatonemightget\'toomuchofagoodthing\'atonce，and

thatprotectiveduties，inordertoworkbeneficiallyandnotasa

disturbingelementuponanexistingstateofthings，mustnotbe

madetoohighatthecommencement。Butthelongerthatsystem

continued，themoreclearlywasitswisdomdemonstrated。Tothat

tariffAustriaisindebtedforherpresentprosperousindustries

andtheflourishingconditionofheragriculture。

TheindustryofPrussiahadsufferedmorethanthatofany

othercountryfromthedevastationsoftheThirtyYears\'War。Her

mostimportantindustry，themanufactureofclothintheMargravate

ofBrandenburg，wasalmostentirelyannihilated。Themajorityof

clothworkershadmigratedtoSaxony，whileEnglishimportsatthe

timeheldeverycompetitionincheck。TotheadvantageofPrussia

nowcametherevocationoftheEdictofNantesandthepersecution

oftheProtestantsinthePalatinateandinSalzburg。Thegreat

ElectorsawataglancewhatElizabethbeforehimhadsoclearly

understood。Inconsequenceofthemeasuresdevisedbyhimagreat

numberofthefugitivesdirectedtheirstepstoPrussia，fertilised

theagriculturalindustryoftheland，establishedalargenumber

ofmanufactures，andcultivatedscienceandart。Allhissuccessors

followedinhisfootsteps，nonewithmorezealthanthegreatKing——

greaterbyhispolicyintimesofpeacethanbyhissuccessesin

war。Spaceiswantingtotreatatlengthofthecountlessmeasures

wherebyFrederickIIattractedtohisdominionslargenumbersof

foreignagriculturists，broughttractsofwastelandinto

cultivation，andestablishedthecultivationofmeadows，ofcattle

fodder，vegetables，potatoes，andtobacco，improvedsheepfarming，

cattlebreeding，horsebreeding，theuseofmineralmanures，&c。，

bywhichmeanshecreatedcapitalandcreditforthebenefitofthe

agriculturalclasses。Stillmorethanbythesedirectmeasureshe

promotedindirectlytheinterestsofagriculturebymeansofthose

branchesofmanufacturewhich，inconsequenceofthecustomstariff

andtheimprovedmeansoftransportwhichheestablished，aswell

astheestablishmentofabank，madegreateradvancesinPrussia

thaninanyotherGermanstate，notwithstandingthatthatcountry\'s

geographicalposition，anditsdivisionintoseveralprovinces

separatedfromoneanother，weremuchlessfavourableforthe

successofsuchmeasures，andthatthedisadvantagesofacustoms

cordon，namely，thedamagingeffectsofacontrabandtrade，mustbe

feltmoreacutelytherethaningreatstateswhoseterritoriesare

compactandwellprotectedbyboundariesofseas，rivers，and

chainsofmountains。

Atthesametimewearenowiseanxious，undercoverofthis

eulogy，todefendthefaultsofthesystem，suchas，forexample，

therestrictionslaidupontheexportationofrawmaterial。Still，

thatindespiteofthesefaultsthenationalindustrywas

considerablyadvancedbyit，noenlightenedandimpartialhistorian

wouldventuretodispute。

Toeveryunprejudicedmind，uncloudedbyfalsetheories，it

mustbeclearthatPrussiagainedhertitletorankamongstthe

Europeanpowersnotsomuchbyherconquestsasbyherwisepolicy

inpromotingtheinterestsofagriculture，industry，andtrade，and

byherprogressinliteratureandscience；andallthiswasthe

workofonegreatgeniusalone。

AndyettheCrownwasnotyetsupportedbytheenergyoffree

institutions，butsimplybyanadministrativesystem，wellordered

andconscientious，butunquestionablytrammelledbythedead

mechanicalroutineofahierarchicalbureaucracy。

MeanwhilealltherestofGermanyhadforcenturiesbeenunder

theinfluenceoffreetrade——thatistosay，thewholeworldwas

freetoexportmanufacturedproductsintoGermany，whilenoone

consentedtoadmitGermanmanufacturedgoodsintoothercountries。

Thisrulehaditsexceptions，butonlyafew。Itcannot，however，

beassertedthatthepredictionsandthepromisesoftheschool

aboutthegreatbenefitsoffreetradehavebeenverifiedbythe

experienceofthiscountry，foreverywherethemovementwasrather

retrogradethanprogressive。CitieslikeAugsburg，N黵nberg，

Mayence，Cologne，&c。，numberednomorethanathirdorafourth

partoftheirformerpopulation，andwarswereoftenwishedfor

merelyforthesakeofgettingridofavaluelesssurplusof

produce。

ThewarscameinthetrainoftheFrenchRevolution，andwith

themEnglishsubsidiestogetherwithincreasedEnglishcompetition。

Henceanewdownwardtendencyinmanufacturescoupledwithan

increaseinagriculturalprosperity，which，however，wasonly

apparentandtransitory。

NextfollowedNapoleon\'sContinentalBlockade，aneventwhich

markedanerainthehistoryofbothGermanandFrenchindustry，

notwithstandingthatMons。J。B。Say，AdamSmith\'smostfamous

pupil，denounceditasacalamity。Whatevertheorists，andnotably

theEnglish，mayurgeagainstit，thismuchisclearlymadeout——

andallwhoareconversantwithGermanindustrymustattestit，for

thereisabundantevidenceofthefactinallstatisticalwritings

ofthatday——that，asaresultofthisblockade，German

manufacturesofallandeverykindforthefirsttimebegantomake

animportantadvance；(1*)thatthenonlydidtheimprovedbreeding

ofsheep(whichhadbeencommencedsometimebefore)becomegeneral

andsuccessful；thatthenonlywasactivitydisplayedinimproving

themeansoftransport。Itistrue，ontheotherhand，thatGermany

lostthegreaterpartofherformerexporttrade，especiallyin

linens。Yetthegainwasconsiderablygreaterthantheloss，

particularlyforthePrussianandAustrianmanufacturing

establishments，whichhadpreviouslygainedastartoverallother

manufactoriesintheGermanstates。

ButwiththereturnofpeacetheEnglishmanufacturersagain

enteredintoafearfulcompetitionwiththeGerman；forduringthe

reciprocalblockade，inconsequenceofnewinventionsandagreat

andalmostexclusiveexporttradetoforeignlands，the

manufactoriesoftheislandhadfaroutstrippedthatofGermany；

andforthisreason，aswellasbecauseoftheirlargeacquired

capital，theformerwerefirstinapositiontosellatmuchlower

prices，tooffermuchsuperiorarticles，andtogivemuchlonger

creditthanthelatter，whichhadstilltobattlewiththe

difficultiesofafirstbeginning。Consequentlygeneralruin

followedandloudwailingsamongstthelatter，especiallyinthe

lowerRhenishprovinces，inthoseregionswhich，havingformerly

belongedtoFrance，werenowexcludedfromtheFrenchmarket。

Besides，thePrussiancustomstariffhadundergonemanychangesin

thedirectionofabsolutefreetrade，andnolongeraffordedany

sufficientprotectionagainstEnglishcompetition。Atthesametime

thePrussianbureaucracylongstroveagainstthecountry\'scryfor

help。TheyhadbecometoostronglyimbuedwithAdamSmith\'stheory

attheuniversitiestodiscernthewantofthetimeswith

sufficientpromptness。Thereevenstillexistedpolitical

economistsinPrussiawhoharbouredthebolddesignofrevivingthe

long-exploded\'physiocratic\'system。Meanwhilethenatureofthings

heretooprovedamightierforcethanthepoweroftheories。The

cryofdistressraisedbythemanufacturers，hailingasitdidfrom

districtsstillyearningaftertheirformerstateofconnection

withFrance，whosesympathiesitwasnecessarytoconciliate，could

notbesafelydisregardedtoolong。Moreandmoretheopinion

spreadatthetimethattheEnglishGovernmentwerefavouringinan

unprecedentedmanneraschemeforgluttingthemarketsonthe

Continentwithmanufacturedgoodsinordertostiflethe

Continentalmanufacturesinthecradle。Thisideahasbeen

ridiculed，butitwasnaturalenoughthatitshouldprevail，first，

becausethisgluttingreallytookplaceinsuchamannerasthough

ithadbeendeliberatelyplanned；and，secondly，becausea

celebratedmemberofParliament，MrHenryBrougham(afterwardsLord

Brougham)，hadopenlysaid，in1815，\'thatitwaswellworthwhile

toincuralossontheexportationofEnglishmanufacturesinorder

tostifleinthecradletheforeignmanufactures。\'(2*)Thisideaof

thislord，sincesorenownedasaphilanthropist，cosmopolist，and

Liberal，wasrepeatedtenyearslateralmostinthesamewordsby

MrHume，amemberofParliamentnotlessdistinguishedfor

liberalism，whenheexpressedawishthat\'Continentalmanufactures

mightbenippedinthebud。\'

AtlengththeprayerofthePrussianmanufacturersfounda

hearing——lateenough，indeed，asmustbeadmittedwhenone

considershowpainfulitistobewrestlingwithdeathyearafter

year——butatlasttheircrywasheardtorealgoodpurpose。The

Prussiancustomstariffof1818answered，forthetimeinwhichit

wasestablished，alltherequirementsofPrussianindustry，without

inanywayoverdoingtheprincipleofprotectionorunduly

interferingwiththecountry\'sbeneficialintercoursewithforeign

countries。Itsscaleofdutieswasmuchlowerthanthoseofthe

EnglishandFrenchcustomssystems，andnecessarilyso；forinthis

casetherewasnoquestionofagradualtransitionfroma

prohibitivetoaprotectivesystem，butofachangefromfreetrade

(socalled)toaprotectivesystem。Anothergreatadvantageofthis

tariff，consideredasawhole，wasthatthedutiesweremostly

leviedaccordingtotheweightofgoodsandnotaccordingtotheir

value。Bythismeansnotonlyweresmugglingandtoolowvaluations

obviated，butalsothegreatobjectwasgained，thatarticlesof

generalconsumption，whicheverycountrycanmosteasily

manufactureforitself，andthemanufactureofwhich，becauseof

theirgreattotalmoneyvalue，isthemostimportantofanyforthe

country，wereburdenedwiththehighestimportduty，whilethe

protectivedutyfelllowerandlowerinproportiontothefineness

andcostlinessofthegoods，alsoasthedifficultyofmakingsuch

articlesathomeincreased，andalsoasboththeinducementsand

thefacilitiesforsmugglingincreased。

Butthismodeofchargingthedutyupontheweightwouldof

course，forveryobviousreasons，affectthetradewiththe

neighbouringGermanstatesmuchmoreinjuriouslythanthetrade

withforeignnations。Thesecond-rateandsmallerGermanstateshad

nowtobear，inadditiontotheirexclusionfromtheAustrian，

French，andEnglishmarkets，almosttotalexclusionfromthatof

Prussia，whichhitthemalltheharder，sincemanyofthemwere

eithertotallyoringreatparthemmedinbyPrussianprovinces。

JustinproportionasthesemeasurespacifiedthePrussian

manufacturers，wastheloudnessoftheoutcryagainstthemonthe

partofthemanufacturersoftheotherGermanstates。Addtothat，

thatAustriahadshortlybeforeimposedrestrictionsonthe

importationofGermangoodsintoItaly，notablyofthelinensof

UpperSwabia。Restrictedonallsidesintheirexporttradeto

smallstripsofterritory，andfurtherbeingseparatedfromone

anotherbysmallerinternallinesofcustomsduties，the

manufacturersofthesecountrieswerewell-nighindespair。

Itwasthisstateofurgentnecessitywhichledtothe

formationofthatprivateunionoffivetosixthousandGerman

manufacturersandmerchants，whichwasfoundedintheyear1819at

thespringfairheldinFrankfort-on-the-Main，withtheobjectof

abolishingalltheseparatetariffsofthevariousGermanstates，

andontheotherhandofestablishingacommontradeand

custom-housesystemforthewholeofGermany。

Thisunionwasformallyorganised。Itsarticlesofassociation

weresubmittedtotheDiet，andtoalltherulersandgovernments

oftheGermanstatesforapproval。IneveryGermantownalocal

correspondentwasappointed；eachGermanstatehaditsprovincial

correspondent。Allthemembersandcorrespondentsboundthemselves

topromotetheobjectsoftheuniontothebestoftheirability。

ThecityofN黵nbergwasselectedasthehead-quartersofthe

union，andauthorisedtoappointacentralcommittee，whichshould

directthebusinessoftheunion，undertheadviceofanassessor，

forwhichofficetheauthorofthisbookwasselected。Inaweekly

journaloftheunion，bearingthetitleof\'Organdesdeutschen

Handels-undFabrikantenstandes，\'(3*)thetransactionsandmeasures

ofthecentralcommitteeweremadeknown，andideas，proposals，

treatises，andstatisticalpapersrelatingtotheobjectsofthe

unionwerepublished。EachyearatthespringfairinFrankforta

generalmeetingoftheunionwasheld，atwhichthecentral

committeegaveanaccountofitsstewardship。

AfterthisunionhadpresentedapetitiontotheGermanDiet

showingtheneedandexpediencyofthemeasuresproposedbytheir

organisation，thecentralcommitteeatN黵nbergcommenced

operations。DeputationsweresenttoeveryGermanCourt，and

finallyonetotheCongressofPlenipotentiariesheldatViennain

1820。Atthiscongresssomuchatleastwasgained，thatseveralof

thesecond-classandsmallerGermanstatesagreedtoholda

separatecongressonthesubjectatDarmstadt。Theeffectofthe

deliberationsofthislast-namedcongresswas，first，tobring

aboutaunionbetweenW黵tembergandBavaria；secondly，aunionof

someoftheGermanstatesandPrussia；thenaunionbetweenthe

middleGermanstates；lastly，andchieflyinconsequenceofthe

exertionsofFreiherrvonCottatofusetheabove-namedthree

unionsintoageneralcustomsconfederation，sothatatthis

presenttime，withtheexceptionofAustria，thetwoMecklenburgs，

Hanover，andtheHanseTowns，thewholeofGermanyisassociatedin

asinglecustomsunion，whichhasabolishedtheseparatecustoms

linesamongstitsmembers，andhasestablishedauniformtariffin

commonagainsttheforeigner，therevenuederivedfromwhichis

distributedprorataamongsttheseveralstatesaccordingtotheir

populations。

Thetariffofthisunionissubstantiallythesameasthat

establishedbyPrussiain1818；thatistosay，itisamoderate

protectionisttariff。

Inconsequenceofthisunificationofcustoms，theindustry，

trade，andagricultureoftheGermanstatesformingtheunionhave

alreadymadeenormousstrides。

NOTES：

1。ThesystemmustnecessarilyhaveaffectedFranceinadifferent

mannerthanGermany，becauseGermanywasmostlyshutoutfromthe

Frenchmarkets，whiletheGermanmarketswereallopentothe

Frenchmanufacturer。

2。ReportoftheCommitteeofCommerceandManufacturestothe

HouseofRepresentativesoftheCongressoftheUnitedStates，Feb。

13，1816。

3。OrganoftheGermanCommercialandManufacturingInterests。

Chapter8

TheRussians

Russiaowesherfirstprogressincivilisationandindustryto

herintercoursewithGreece，tothetradeoftheHanseaticTowns

withNovgorodand(afterthedestructionofthattownbyIvan

Wassiljewitsch)tothetradewhicharosewiththeEnglishand

Dutch，inconsequenceofthediscoveryofthewatercommunication

withthecoastsoftheWhiteSea。

Butthegreatincreaseofherindustry，andespeciallyofher

civilisation，datesfromthereignofPetertheGreat。Thehistory

ofRussiaduringthelasthundredandfortyyearsoffersamost

strikingproofofthegreatinfluenceofnationalunityand

politicalcircumstancesontheeconomicwelfareofanation。

Totheimperialpowerwhichestablishedandmaintainedthis

unionofinnumerableBarbarichordes，Russiaowesthefoundations

ofhermanufactures，hervastprogressinagricultureand

population，thefacilitiesofferedtoherinteriortrafficbythe

constructionofcanalsandroads，averylargeforeigntrade，and

herstandingasacommercialpower。

Russia\'sindependentsystemoftradedates，however，onlyfrom

theyear1821。

UnderCatherineII。tradeandmanufactureshadcertainlymade

someprogress，onaccountoftheprivilegessheofferedtoforeign

artisansandmanufacturers；butthecultureofthenationwasstill

tooimperfecttoallowofitsgettingbeyondthefirststagesin

themanufactureofiron，glass，linen，&c。，andespeciallyinthose

branchesofindustryinwhichthecountrywasspeciallyfavouredby

itsagriculturalandmineralwealth。

Besidesthis，furtherprogressinmanufactureswouldnot，at

thattime，havebeenconducivetotheeconomicinterestsofthe

nation。Ifforeigncountrieshadtakeninpaymenttheprovisions，

rawmaterial，andrudemanufactureswhichRussiawasableto

furnishif，further，nowarsandexterioreventshadintervened，

Russiabymeansofintercoursewithnationsmoreadvancedthan

herselfwouldhavebeenmuchmoreprosperous，andherculturein

generalwouldinconsequenceofthisintercoursehavemadegreater

progressthanunderthemanufacturingsystem。Butwarsandthe

Continentalblockade，andthecommercialregulationsofforeign

nations，compelledhertoseekprosperityinotherwaysthanbythe

exportofrawmaterialsandtheimportofmanufactures。In

consequenceofthese，thepreviouscommercialrelationsofRussia

byseaweredisturbed。Heroverlandtradewiththewestern

continentcouldnotmakeupfortheselosses；andshefoundit

necessary，therefore，toworkupherrawmaterialsherself。After

theestablishimentofthegeneralpeace，adesirearosetoreturn

totheoldsystem。TheGovernment，andeventheEmperor，were

inclinedtofavourfreetrade。InRussia，thewritingsofHerr

StorchenjoyedashighareputationasthoseofMonsSayin

Germany。Peoplewerenotalarmedbythefirstshockswhichthehome

manufactories，whichhadarisenduringtheContinentalBlockade，

sufferedowingtoEnglishcompetition。Thetheoristsmaintained

thatiftheseshockscouldonlybeenduredonceforall，the

blessingsoffreetradewouldfollow。Andindeedthecircumstances

ofthecommercialworldatthetimewereuncommonlyfavourableto

thistransition。ThefailureofcropsinWesternEuropecauseda

greatexportofagriculturalproduce，bywhichRussiaforalong

timegainedamplemeanstobalanceherlargeimportationof

manufacturedgoods。

ButwhenthisextraordinarydemandforRussianagricultural

producehadceased，when，ontheotherhand，Englandhadimposed

restrictionsontheimportofcornforthebenefitofher

aristocracy，andonthatofforeigntimberforthebenefitof

Canada，theruinofRussia\'shomemanufactoriesandtheexcessive

importofforeignmanufacturesmadeitselfdoublyfelt。Although

peoplehadformerly，withHerrStorch，consideredthebalanceof

tradeasachimera，tobelieveintheexistenceofwhichwas，for

areasonableandenlightenedman，nolessoutrageousandridiculous

thanthebeliefinwitchcraftintheseventeenthcenturyhadbeen，

itwasnowseenwithalarmthattheremustbesomethingofthe

natureofabalanceoftradeasbetweenindependentnations。The

mostenlightenedanddiscerningstatesmanofRussia，Count

Nesselrode，didnothesitatetoconfesstothisbelief。Hedeclared

inanofficialcircularof1821：\'Russiafindsherselfcompelledby

circumstancestotakeupanindependentsystemoftrade；the

productsoftheempirehavefoundnoforeignmarket，thehome

manufacturesareruinedoronthepointofbeingso，alltheready

moneyofthecountryflowstowardsforeignlands，andthemost

substantialtradingfirmsarenearlyruined。\'Thebeneficial

effectsoftheRussianprotectivesystemcontributednolessthan

theinjuriousconsequencesofthere-establishmentoffreetrade

haddonetobringintodiscredittheprinciplesandassertionsof

thetheorists。Foreigncapital，talent，andlabourflowedintothe

countryfromallcivilisedlands，especiallyfromEnglandand

Germany，inordertoshareintheadvantagesofferedbythehome

manufactories。

ThenobilityimitatedthepolicyoftheEmpireatlarge。As

theycouldobtainnoforeignmarketfortheirproduce，they

attemptedtosolvetheprobleminverselybybringingthemarket

intoproximitywiththeproduce——theyestablishedmanufactories

ontheirestates。Inconsequenceofthedemandforfinewool

producedbythenewlycreatedwoollenmanufactories，thebreedof

sheepwasrapidlyimproved。Foreigntradeincreased，insteadof

declining，particularlythatwithChina，Persia，andother

neighbouringcountriesofAsia。Thecommercialcrisesentirely

ceased，andoneneedonlyreadthelatestreportsoftheRussian

MinisterofCommercetobeconvincedthatRussiaowesalarge

measureofprosperitytothissystem，andthatsheisincreasing

hernationalwealthandpowerbyenormousstrides。

ItisfoolishforGermanstotrytomakelittleofthis

progressandtocomplainoftheinjurywhichithascausedtothe

north-easternprovincesofGermany。Eachnation，likeeach

individual，hasitsowninterestsnearestatheart。Russiaisnot

calledupontocareforthewelfareofGermany；Germanymustcare

forGermany，andRussiaforRussia。Itwouldbemuchbetter，

insteadofcomplaining，insteadofhopingandwaitingandexpecting

theMessiahofafuturefreetrade，tothrowthecosmopolitan

systemintothefireandtakealessonfromtheexampleofRussia。

ThatEnglandshouldlookwithjealousyonthiscommercial

policyofRussiaisverynatural。ByitsmeansRussiahas

emancipatedherselffromEngland，andhasqualifiedherselfto

enterintocompetitionwithherinAsia。EvenifEngland

manufacturesmorecheaply，thisadvantagewillinthetradewith

CentralAsiabeoutweighedbytheproximityoftheRussianEmpire

andbyitspoliticalinfluence。AlthoughRussiamaystillbe，in

comparisonwithEurope，butaslightlycivilisedcountry，yet，as

comparedwithAsia，sheisacivilisedone。

Meantime，itcannotbedeniedthatthewantofcivilisationand

politicalinstitutionswillgreatlyhinderRussiainherfurther

industrialandcommercialprogress，especiallyiftheImperial

Governmentdoesnotsucceedinharmonisingherpoliticalconditions

withtherequirementsofindustry，bytheintroductionofefficient

municipalandprovincialconstitutions，bythegraduallimitation

andfinalabolitionofserfdom，bytheformationofaneducated

middleclassandafreepeasantclass，andbythecompletionof

meansofinternaltransportandofcommunicationwithCentralAsia。

ThesearetheconqueststowhichRussiaiscalledinthepresent

century，andonthemdependsherfurtherprogressinagriculture

andindustry，intrade，navigationandnavalpower。Butinorderto

renderreformsofthiskindpossibleandpracticable，theRussian

aristocracymustfirstlearntofeelthattheirownmaterial

interestswillbemostpromotedbythem。

Chapter9

TheNorthAmericans

Afterourhistoricalexaminationofthecommercialpolicyof

theEuropeannations，withtheexceptionofthosefromwhichthere

isnothingofimportancetobelearnt，wewillcastaglancebeyond

theAtlanticOceanatapeopleofcolonistswhichhasbeenraising

itselfalmostbeforeoureyesfromtheconditionofentire

dependenceonthemothercountry，andofseparationintoanumber

ofcolonialprovinceshavingnokindofpoliticalunionbetween

themselves，tothatofaunited，well-organised，free，powerful，

industrious，rich，andindependentnation，whichwillperhapsin

thetimeofourgrandchildrenexaltitselftotherankofthefirst

navalandcommercialpowerintheworld。Thehistoryofthetrade

andindustryofNorthAmericaismoreinstructiveforoursubject

thananyothercanbe，Becauseherethecourseofdevelopment

proceedsrapidly，theperiodsoffreetradeandprotectionfollow

closelyoneachother，theirconsequencesstandoutclearlyand

sharplydefined，andthewholemachineryofnationalindustryand

Stateadministrationmovesexposedbeforetheeyesofthe

spectator。

TheNorthAmericancolonieswerekept，inrespectoftradeand

industry，insuchcompletethraldombythemothercountry，thatno

sortofmanufacturewaspermittedtothembeyonddomestic

manufactureandtheordinaryhandicrafts。Solateastheyear1750

ahatmanufactoryintheStateofMassachusettscreatedsogreat

sensationandjealousyinParliament，thatitdeclaredallkindsof

manufactoriestobe\'commonnuisances，\'notexceptingironworks，

notwithstandingthatthecountrypossessedinthegreatest

abundancealltherequisitematerialsforthemanufactureofiron。

Evenmorerecently，namely，in1770，thegreatChatham，madeuneasy

bythefirstmanufacturingattemptsoftheNewEnglanders，declared

thatthecoloniesshouldnotbepermittedtomanufacturesomuchas

ahorseshoenail。

ToAdamSmithbelongsthemeritofhavingfirstpointedoutthe

injusticeofthispolicy。

Themonopolyofallmanufacturingindustrybythemother

countrywasoneofthechiefcausesoftheAmericanRevolution；the

teadutymerelyaffordedanopportunityforitsoutbreak。

Freedfromrestrictions，inpossessionofallmaterialand

intellectualresourcesformanufacturingwork，andseparatedfrom

thatnationfromwhichtheyhadpreviouslybeensuppliedwith

manufacturedgoods，andtowhichtheyhadbeensellingtheir

produce，andthusthrownwithalltheirwantsupontheirown

resources：manufacturesofeverykindintheNorthAmericanfree

statesreceivedamightystimulusduringthewarofrevolution，

whichinitsturnhadtheeffectofbenefitingagriculturetosuch

anextentthat，notwithstandingtheburdensandthedevastation

consequentuponthethenrecentwar，thevalueoflandandtherate

ofwagesinthesestateseverywhereroseimmenselybutas，after

thepeaceofParis，thefaultyconstitutionofthefreestatesmade

theintroductionofaunitedcommercialsystemimpossible，and

consequentlyEnglishmanufacturedgoodsagainobtainedfree

admission，competitionwithwhichthenewlyestablishedAmerican

manufactorieshadnotstrengthenoughtobear，theprosperitywhich

hadarisenduringthewarvanishedmuchmorequicklythanithad

grownup。AnoratorinCongresssaidafterwardsofthiscrisis：\'We

didbuy，accordingtotheadviceofmodemtheorists，wherewecould

buycheapest，andourmarketswerefloodedwithforeigngoods；

EnglishgoodssoldcheaperinourseaporttownsthaninLiverpool

orLondon。Ourmanufacturerswerebeingruined；ourmerchants，even

thosewhothoughttoenrichthemselvesbyimportation，became

bankrupt；andallthesecausestogetherweresodetrimentalto

agriculture，thatlandedpropertybecameverygenerallyworthless，

andconsequentlybankruptcybecamegeneralevenamongour

landowners。\'

Thisconditionofthingswasbynomeanstemporary；itlasted

fromthepeaceofParisuntiltheestablishmentofthefederal

constitution，andcontributedmorethananyothercircumstanceto

bringaboutamoreintimateunionbetweenthefreestatesandto

impelthemtogivetoCongressfullpowersforthemaintenanceof

aunitedcommercialpolicy。Congresswasinundatedwithpetitions

fromallthestates——NewYorkandSouthCarolinanotexcepted——

infavourofprotectivemeasuresforinternalindustry；and

Washington，onthedayofhisinauguration，woreasuitof

home-manufacturedcloth，\'inorder，\'saidacontemporaryNewYork

journal，\'inthesimpleandimpressivemannersopeculiartothis

greatman，togivetoallhissuccessorsinofficeandtoall

futurelegislatorsamemorablelessonuponthewayinwhichthe

welfareofthiscountryistobepromoted。\'Althoughthefirst

Americantariff(1789)leviedonlylightdutiesontheimportation

ofthemostimportantmanufacturedarticles，ityetworkedso

beneficiallyfromtheveryfirstyearsofitsintroductionthat

Washingtoninhis\'Message\'in1791wasabletocongratulatethe

nationontheflourishingconditionofitsmanufactures，

agriculture，andtrade。

Theinadequacyofthisprotectionwas，however，soonapparent；

fortheeffectoftheslightimportdutieswaseasilyovercomeby

Englishmanufacturers，whohadtheadvantageofimprovedmethodsof

production。Congressdidcertainlyraisethedutyonthemost

importantmanufacturedarticlestofifteenpercent，butthiswas

nottilltheyear1804，whenitwascompelled，owingtodeficient

customsreceipts，toraisemorerevenue，andlongaftertheinland

manufacturershadexhaustedeveryargumentinfavourofhavingmore

protection，whiletheinterestsopposedtothemwereequally

strenuousupontheadvantagesoffreetradeandtheinjurious

effectsofhighimportduties。

Instrikingcontrastwiththeslightprogresswhichhad，onthe

whole，beenmadebythemanufacturersofthecountry，stoodthe

improvedconditionofitsnavigation，whichsincetheyear1789，

uponthemotionofJamesMadison，hadreceivedeffectual

protection。Fromatonnageof200，000in1789theirmercantile

marinehadincreasedin1801tomorethan1，000，000tons。Underthe

protectionofthetariffof1804，themanufacturinginterestofthe

UnitedStatescouldjustbarelymaintainitselfagainsttheEnglish

manufactories，whichwerecontinuallybeingimproved，andhad

attainedacolossalmagnitude，anditwoulddoubtlesshavehadto

succumbentirelytoEnglishcompetition，haditnotbeenforthe

helpoftheembargoanddeclarationofwarof1812。Inconsequence

oftheseevents，justasatthetimeoftheWarofIndependence，

theAmericanmanufactoriesreceivedsuchanextraordinaryimpetus

thattheynotonlysufficedforthehomedemand，butsoonbeganto

exportaswell。AccordingtoareportoftheCommitteeonTradeand

ManufacturestoCongressin1815，100，000handswereemployedin

thewoollenandcottonmanufacturesalone，whoseyearlyproduction

amountedtothevalueofmorethansixtymilliondollars。Asinthe

daysoftheWarofIndependence，andasanecessaryconsequenceof

theincreaseinmanufacturingpower，thereoccurredarapidrisein

allprices，notonlyofproduceandinwages，butalsooflanded

property，andhenceuniversalprosperityamongstlandowners，

labourers，andallengagedininternaltrade。

AfterthepeaceofGhent，Congress，warnedbytheexperienceof

1786，decreedthatforthefirstyearthepreviousdutiesshouldbe

doubled，andduringthisperiodthecountrycontinuedtoprosper。

Coerced，however，bypowerfulprivateinterestswhichwereopposed

tothoseofthemanufacturers，andpersuadedbytheargumentsof

theorists，itresolvedintheyear1816tomakeaconsiderable

reductionintheimportduties，whereuponthesameeffectsof

externalcompetitionreappearedwhichhadbeenexperiencedfrom

1786to1789，viz。ruinofmanufactories，unsaleabilityofproduce，

fallinthevalueofpropertyandgeneralcalamityamong

landowners。Afterthecountryhadforasecondtimeenjoyedinwar

timetheblessingsofpeace，itsuffered，forasecondtime，

greaterevilsthroughpeacethanthemostdevastatingwarcould

havebroughtuponit。Itwasonlyintheyear1824，afterthe

effectsoftheEnglishcornlawshadbeenmademanifesttothefull

extentoftheirunwisetendencythuscompellingtheagricultural

interestofthecentral，northern，andwesternstatestomake

commoncausewiththemanufacturinginterest，thatasomewhat

highertariffwaspassedinCongress，which，however，asMr

Huskissonimmediatelybroughtforwardcounteractingmeasureswith

theviewofparalysingtheeffectsofthistariffonEnglish

competition，soonprovedinsufficient，andhadtobesupplemented

bythetariffof1828，carriedthroughCongressafteraviolent

struggle。

Recentlypublishedofficialstatistics(1*)ofMassachusetts

giveatolerableideaofthestarttakenbythemanufacturesofthe

UnitedStates，especiallyinthecentralandnorthernstatesofthe

Union，inconsequenceoftheprotectivesystem，andinspiteofthe

subsequentmodificationofthetariffof1828。Intheyear1837，

therewereinthisState(Massachusetts)282cottonmillsand

565，031spindlesinoperation，employing4，997maleand14，757

femalehands；37，275，917poundsofcottonwereworkedup，and

126，000，000yardsoftextilefabricsmanufactured，ofthevalueof

13，056，659dollars，producedbyacapitalof14，369，719dollars。

Inthewoollenmanufacturetherewere192mills，501machines，

and3，612maleand3，485femaleoperativesemployed，whoworkedup

10，858，988poundsofwool，andproduced11，313，426yardsofcloth，

ofthevalueof10，399，807dollarsonaworkingcapitalof

5，770，750dollars。

16，689，877pairsofshoesandbootsweremanufactured(large

quantitiesofshoesbeingexportedtothewesternstates)，tothe

valueof14，642，520dollars。

Theotherbranchesofmanufacturestoodinrelativeproportion

totheabove。

ThecombinedvalueofthemanufacturesoftheState(deducting

shipbuilding)amountedtoover86milliondollars，withaworking

capitalofabout60milliondollars。

Thenumberofoperatives(men)was117，352；andthetotal

numberofinhabitantsoftheState(in1837)was701，331。

Misery，brutality，andcrimeareunknownamongthe

manufacturingpopulationhere。Onthecontrary，amongthenumerous

maleandfemalefactoryworkersthestrictestmorality，

cleanliness，andneatnessindress，exist；librariesare

establishedtofurnishthemwithusefulandinstructivebooks；the

workisnotexhausting，thefoodnourishingandgood。Mostofthe

womensaveadowryforthemselves。(2*)

Thislastisevidentlytheeffectofthecheappricesofthe

commonnecessariesoflife，lighttaxation，andanequitable

customstariff。LetEnglandrepealtherestrictionsontheimport

ofagriculturalproduce，decreasetheexistingtaxesonconsumption

byone-halfortwo-thirds，coverthelossbyanincometax，andher

factoryworkerswillbeputintothesameposition。

Nonationhasbeensomisconstruedandsomisjudgedasrespects

itsfuturedestinyanditsnationaleconomyastheUnitedStatesof

NorthAmerica，bytheoristsaswellasbypracticalmen。AdamSmith

andJ。B。SayhadlaiditdownthattheUnitedStateswere，\'like

Poland，\'destinedforagriculture。Thiscomparisonwasnotvery

flatteringfortheunionofsomedozenofnew，aspiring，youthful

republics，andtheprospectthusheldouttothemforthefuture

notveryencouraging。Theabove-mentionedtheoristshad

demonstratedthatNatureherselfhadsingledoutthepeopleofthe

UnitedStatesexclusivelyforagriculture，solongastherichest

arablelandwastobehadintheircountryforameretrifle。Great

wasthecommendationwhichhadbeenbestoweduponthemforso

willinglyacquiescinginNature\'sordinances，andthussupplying

theoristswithabeautifulexampleofthesplendidworkingofthe

principleoffreetrade。Theschool，however，soonhadto

experiencethemortificationoflosingthiscogentproofofthe

correctnessandapplicabilityoftheirtheoriesinpractice，and

hadtoendurethespectacleoftheUnitedStatesseekingtheir

nation\'swelfareinadirectionexactlyopposedtothatofabsolute

freedomoftrade。

Asthisyouthfulnationhadpreviouslybeentheveryappleof

theeyeoftheschoolmen，soshenowbecametheobjectofthe

heaviestcondemnationonthepartofthetheoristsofeverynation

inEurope。Itwassaidtobeaproofoftheslightprogressofthe

NewWorldinpoliticalknowledge，thatwhiletheEuropeannations

werestrivingwiththemosthonestzealtorenderuniversalfree

tradepossible，whileEnglandandFranceespeciallywereactually

engagedinendeavouringtomakeimportantadvancestowardsthis

greatphilanthropicobject，theUnitedStatesofNorthAmericawere

seekingtopromotetheirnationalprosperitybyareturntothat

long-explodedmercantilesystemwhichhadbeenclearlyrefutedby

theory。AcountryliketheUnitedStates，inwhichsuchmeasureless

tractsoffruitfullandstillremaineduncultivatedandwherewages

ruledsohigh，couldnotutiliseitsmaterialwealthandincrease

ofpopulationtobetterpurposethaninagriculture；andwhenthis

shouldhavereachedcompletedevelopment，thenmanufactureswould

ariseinthenaturalcourseofeventswithoutartificialforcing。

ButbyanartificialdevelopmentofmanufacturestheUnitedStates

wouldinjurenotonlythecountrieswhichhadlongbeforeenjoyed

civilisation，butthemselvesmostofall。

WiththeAmericans，however，soundcommonsense，andthe

instinctofwhatwasnecessaryforthenation，weremorepotent

thanabeliefintheoreticalpropositions。Theargumentsofthe

theoristswerethoroughlyinvestigated，andstrongdoubts

entertainedoftheinfallibilityofadoctrinewhichitsown

discipleswerenotwillingtoputinpractice。

Totheargumentconcerningthestilluncultivatedtractsof

fruitfulland，itwasansweredthattractsofsuchlandinthe

populous，well-cultivatedstatesoftheUnionwhichwereripefor

manufacturingindustry，wereasrareasinGreatBritain；thatthe

surpluspopulationofthosestateswouldhavetomigrateatgreat

expensetothewest，inordertobringtractsoflandofthat

descriptionintocultivation，thusnotonlyannuallycausingthe

easternstateslargelossesinmaterialandintellectualresources，

butalso，inasmuchassuchemigrationwouldtransformcustomers

intocompetitors，thevalueoflandedpropertyandagricultural

producewouldtherebybelessened。Itcouldnotbetotheadvantage

oftheUnionthatallwastelandbelongingtoitshouldbe

cultivateduptothePacificOceanbeforeeitherthepopulation，

thecivilisation，orthemilitarypoweroftheoldstateshadbeen

fullydeveloped。Onthecontrary，thecultivationofdistantvirgin

landscouldconfernobenefitontheeasternstatesunlessthey

themselvesdevotedtheirattentiontomanufacturing，andcould

exchangetheirmanufacturesagainsttheproduceofthewest。People

wentstillfurther：WasnotEngland，itwasasked，inmuchthesame

position？HadnotEnglandalsounderherdominionvasttractsof

fertilelandstilluncultivatedinCanada，inAustralia，andin

otherquartersoftheworld？WasitnotalmostaseasyforEngland

totransplanthersurpluspopulationtothosecountriesasforthe

NorthAmericanstotransplanttheirsfromtheshoresofthe

AtlantictothebanksoftheMissouri？Ifso，whatoccasionhad

Englandnotonlycontinuouslytoprotectherhomemanufactures，but

tostrivetoextendthemmoreandmore？

Theargumentoftheschool，thatwithahighrateofwagesin

agriculture，manufacturescouldnotsucceedbythenaturalcourse

ofthings，butonlybybeingforcedlikehothouseplants，wasfound

tobepartiallywell-founded；thatistosay，itwasapplicable

onlytothosemanufacturedgoodswhich，beingsmallinbulkand

weightascomparedtotheirvalue，areproducedprincipallybyhand

labour，butwasnotapplicabletogoodsthepriceofwhichisless

influencedbytherateofwages，andastowhichthedisadvantage

ofhigherwagescanbeneutralisedbytheuseofmachinery，by

waterpowerasyetunused，bycheaprawmaterialsandfood，by

abundanceofcheapfuelandbuildingmaterials，bylighttaxation

andincreasedefficiencyoflabour。

Besides，theAmericanshadlongagolearntfromexperiencethat

agriculturecannotrisetoahighstateofprosperityunlessthe

exchangeofagriculturalproduceformanufacturesisguaranteedfor

allfuturetime；butthat，whentheagriculturistlivesinAmerica

andthemanufacturerinEngland，thatexchangeisnotunfrequently

interruptedbywars，commercialcrises，orforeigntariffs，and

thatconsequently，ifthenationalwell-beingistorestona

securefoundation，\'themanufacturer，\'touseJefferson\'swords，

\'mustcomeandsettledownincloseproximitytothe

agriculturist。\'

AtlengththeAmericanscametorealisethetruththatit

behovesagreatnationnotexclusivelytosetitsheartuponthe

enjoymentofproximatematerialadvantages；thatcivilisationand

power——moreimportantanddesirablepossessionsthanmere

materialwealth，asAdamSmithhimselfallows——canonlybe

securedandretainedbythecreationofamanufacturingpowerof

itsown；thatacountrywhichfeelsqualifiedtotakeandto

maintainitsplaceamongstthepowerfulandcivilisednationsof

theearthmustnotshrinkfromanysacrificeinordertosecure

suchpossessionsforitself；andthatatthattimetheAtlantic

stateswereclearlytheregionmarkedoutforsuchpossessions。

ItwasontheshoresoftheAtlanticthatEuropeansettlersand

Europeancivilisationfirstsetafirmfoot。Here，atthefirst，

werepopulous，wealthy，andcivilisedstatescreated；herewasthe

cradleandseatoftheirseafisheries，coastingtrade，andnaval

power；heretheirindependencewaswonandtheirunionfounded。

ThroughthesestatesonthecoasttheforeigntradeoftheUnionis

carriedon；throughthemitisconnectedwiththecivilisedworld；

throughthemitacquiresthesurpluspopulation，material，capital，

andmentalpowersofEurope；uponthecivilisation，power，and

wealthofthesesea-boardstatesdependthefuturecivilisation，

power，wealth，andindependenceofthewholenationanditsfuture

influenceoverlesscivilisedcommunities。Supposethatthe

populationoftheseAtlanticstatesdecreasedinsteadofgrowing

larger，thattheirfisheries，coastingtrade，shippingengagedin

foreigntradeandforeigntradeitself，and，aboveall，their

generalprosperity，weretofallofforremainstationaryinstead

ofprogressing，thenweshouldseetheresourcesofcivilisationof

thewholenation，theguaranteesforitsindependenceandexternal

power，diminishtoointhesamedegree。Itisevenconceivable

that，werethewholeterritoryoftheUnitedStateslaidunder

cultivationfromseatosea，coveredwithagriculturalstates，and

denselypopulatedintheinterior，thenationitselfmight

neverthelessbeleftinalowgradeasrespectscivilisation，

independence，foreignpower，andforeigntrade。Therearecertainly

manynationalitieswhoareinsuchapositionandwhoseshipping

andnavalpowerarenil，thoughpossessinganumerousinland

population！

Ifapowerexistedthatcherishedtheprojectofkeepingdown

theriseoftheAmericanpeopleandbringingthemundersubjection

toitselfindustrially，commercially，orpolitically，itcouldonly

succeedinitsaimbytryingtodepopulatetheAtlanticstatesof

theUnionanddrivingallincreaseofpopulation，capital，and

intellectualpowerintotheinterior。Bythatmeansitwouldnot

onlycheckthefurthergrowthofthenation\'snavalpower，but

mightalsoindulgethehopeofgettingpossessionintimeofthe

principaldefensivestrategicalpositionsontheAtlanticcoastand

atthemouthsoftherivers。Themeanstothisendwouldnotbe

difficulttoimagine；itwouldonlybenecessarytohinderthe

developmentofmanufacturingpowerintheAtlanticstatesandto

insuretheacceptanceoftheprincipleofabsolutefreedomof

foreigntradeinAmerica。IftheAtlanticstatesdonotbecome

manufacturers，theywillnotonlybeunabletokeepuptheir

presentdegreeofcivilisation，buttheymustsink，andsinkin

everyrespect。Withoutmanufactureshowarethetownsalongthe

Atlanticcoasttoprosper？Notbytheforwardingofinlandproduce

toEuropeandofEnglishmanufacturedgoodstotheinterior，fora

veryfewthousandpeoplewouldbesufficienttotransactthis

business。Howarethefisheriestoprosper？Themajorityofthe

populationwhohavemovedinlandpreferfreshmeatandfresh-water

fishtosalted；theyrequirenotrainoil，oratleastbutasmall

quantity。HowisthecoastingtradealongtheAtlanticsea-boardto

thrive？Asthelargestportionofthecoaststatesarepeopledby

cultivatorsoflandwhoproduceforthemselvesalltheprovisions，

buildingmaterials，fuel，&c。whichtheyrequire，thereisnothing

alongthecoasttosustainatransporttrade。Howareforeigntrade

andshippingtodistantplacestoincrease？Thecountryhasnothing

toofferbutwhatlesscultivatednationspossessin

superabundance，andthosemanufacturingnationstowhichitsends

itsproduceencouragetheirownshipping。Howcananavalpower

arisewhenfisheries，thecoastingtrade，oceannavigation，and

foreigntradedecay？HowaretheAtlanticstatestoprotectthem

selvesagainstforeignattackswithoutanavalpower？Howis

agricultureeventothriveinthesestates，whenbymeansof

canals，railways，&c。theproduceofthemuchmorefertileand

cheapertractsoflandinthewestwhichrequirenomanure，canbe

carriedtotheeastmuchmorecheaplythanitcouldbethere

produceduponsoilexhaustedlongago？Howundersuchcircumstances

cancivilisationthriveandpopulationincreaseintheeastern

states，whenitisclearthatunderfreetradewithEnglandall

increaseofpopulationandofagriculturalcapitalmustflowtothe

west？ThepresentstateofVirginiagivesbutafaintideaofthe

conditionintowhichtheAtlanticstateswouldbethrownbythe

absenceofmanufacturesintheeast；forVirginia，likeallthe

southernstatesontheAtlanticcoast，atpresenttakesa

profitableshareinprovidingtheAtlanticstateswithagricultural

produce。