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bewail　the　weakness　of　human　nature；　to　which　Adam　Smith　has　paid



a　rich　tribute　in　the　shape　of　these　paradoxical；　almost　laughable；



arguments　among　other　instances；　being　evidently　dazzled　by　the



splendour　of　the　task；　so　noble　in　itself；　of　pleading　a



justification　for　absolute　freedom　of　trade。



　　　　In　the　argument　just　named　there　is　no　more　sound　sense　or



logic　than　in　the　proposition　that　a　baker；　because　he　sells　bread



to　his　customers　for　money；　and　with　that　money　buys　flour　from　the



miller；　does　an　unprofitable　trade；　because　if　he　had　exchanged　his



bread　directly　for　flour；　he　would　have　effected　his　purpose　by　a



single　act　of　exchange　instead　of　by　two　such　acts。　It　needs　surely



no　great　amount　of　sagacity　to　answer　such　an　allegation　by　hinting



that　the　miller　might　possibly　not　want　so　much　bread　as　the　baker



could　supply　him　with；　that　the　miller　might　perhaps　understand　and



undertake　baking　himself；　and　that；　therefore；　the　baker's　business



could　not　go　on　at　all　without　these　two　acts　of　exchange。　Such　in



effect　were　the　commercial　conditions　of　Portugal　and　England　at



the　date　of　the　treaty。　Portugal　received　gold　and　silver　from



South　America　in　exchange　for　manufactured　goods　which　she　then



exported　to　those　regions；　but　too　indolent　or　too　shiftless　to



manufacture　these　goods　herself；　she　bought　them　of　the　English　in



exchange　for　the　precious　metals。　The　latter　employed　the　precious



metals；　in　so　far　as　they　did　not　require　them　for　the　circulation



at　home；　in　exportation　to　India　or　China；　and　bought　goods　there



which　they　sold　again　on　the　European　continent；　whence　they



brought　home　agricultural　produce；　raw　material；　or　precious　metals



once　again。



　　　　We　now　ask；　in　the　name　of　common　sense；　who　would　have



purchased　of　the　English　all　those　cloths　which　they　exported　to



Portugal；　if　the　Portuguese　had　chosen　either　to　make　them　at　home



or　procure　them　from　other　countries？　The　English　could　not　in　that



case　have　sold　them　to　Portugal；　and　to　other　nations　they　were



already　selling　as　much　as　those　nations　would　take。　Consequently



the　English　would　have　manufactured　so　much　less　cloth　than　they



had　been　disposing　of　to　the　Portuguese；　they　would　have　exported



so　much　less　specie　to　India　than　they　had　obtained　from　Portugal。



They　would　have　brought　to　Europe　and　sold　on　the　Continent　just



that　much　less　of　East　Indian　merchandise；　and　consequently　would



have　taken　home　with　them　that　much　less　of　raw　material。



　　　　Quite　as　untenable　is　Adam　Smith's　third　argument　that；　if



Portuguese　money　had　not　flowed　in　upon　them；　the　English　might



have　supplied　their　requirements　of　this　article　in　other　ways。



Portugal；　he　conceived；　must　in　any　case　have　exported　her



superfluous　store　of　precious　metals；　and　these　would　have　reached



England　through　some　other　channel。　We　here　assume　that　the



Portuguese　had　manufactured　their　cloths　for　themselves；　had



themselves　exported　their　superfluous　stock　of　precious　metals　to



India　and　China；　and　had　purchased　the　return　cargoes　in　other



countries；　and　we　take　leave　to　ask　the　question　whether　under



these　circumstances　the　English　would　have　seen　much　of　Portuguese



money？　It　would　have　been　just　the　same　if　Portugal　had　concluded



a　Methuen　Treaty　with　Holland　or　France。　In　both　these　cases；　no



doubt；　some　little　of　the　money　would　have　gone　over　to　England；



but　only　so　much　as　she　could　have　acquired　by　the　sale　of　her　raw



wool。　In　short；　but　for　the　Methuen　Treaty；　the　manufactures；　the



trade；　and　the　shipping　of　the　English　could　never　have　reached



such　a　degree　of　expansion　as　they　have　attained　to。



　　　　But　whatever　be　the　estimate　formed　of　the　effects　of　the



Methuen　Treaty　as　respects　England；　this　much　at　least　appears　to



be　made　out；　that；　in　respect　to　Portugal；　they　have　in　no　way　been



such　as　to　tempt　other　nations　to　deliver　over　their　home　markets



for　manufactured　goods　to　English　competition；　for　the　sake　of



facilitating　the　exportation　of　agricultural　produce。　Agriculture



and　trade；　commerce　and　navigation；　instead　of　improving　from　the



intercourse　with　England；　went　on　sinking　lower　and　lower　in



Portugal。　In　vain　did　Pombal　strive　to　raise　them；　English



competition　frustrated　all　his　efforts。　At　the　same　time　it　must



not　be　forgotten　that　in　a　country　like　Portugal；　where　the　whole



social　conditions　are　opposed　to　progress　in　agriculture；　industry；



and　commerce；　commercial　policy　can　effect　but　very　little。



Nevertheless；　the　little　which　Pombal　did　effect　proves　how　much



can　be　done　for　the　benefit　of　industry　by　a　government　which　is



anxious　to　promote　its　interests；　if　only　the　internal　hindrances



which　the　social　condition　of　a　country　presents　can　first　be



removed。



　　　　The　same　experience　was　made　in　Spain　in　the　reigns　of　Philip



V　and　his　two　immediate　successors。　Inadequate　as　was　the



protection　extended　to　home　industries　under　the　Bourbons；　and



great　as　was　the　lack　of　energy　in　fully　enforcing　the　customs



laws；　yet　the　remarkable　animation　which　pervaded　every　branch　of



industry　and　every　district　of　the　country　as　the　result　of



transplanting　the　commercial　policy　of　Colbert　from　France　to　Spain



was　unmistakable。（12*）　The　statements　of　Ustaritz　and　Ulloa（13*）　in



regard　to　these　results　under　the　then　prevailing　circumstances　are



astonishing。　For　at　that　time　were　found　everywhere　only　the　most



wretched　mule…tracks；　nowhere　any　well…kept　inns；　nowhere　any



bridges；　canals；　or　river　navigation；　every　province　was　closed



against　the　rest　of　Spain　by　an　internal　customs　cordon；　at　every



city　gate　a　royal　toll　was　demanded；　highway　robbery　and　mendicancy



were　pursued　as　regular　professions；　the　contraband　trade　was　in



the　most　flourishing　condition；　and　the　most　grinding　system　of



taxation　existed；　these　and　such　as　these　the　above　named　writers



adduce　as　the　causes　of　the　decay　of　industry　and　agriculture。　The



causes　of　these　evils　　fanaticism；　the　greed　and　the　vices　of　the



clergy；　the　privileges　of　the　nobles；　the　despotism　of　the



Government；　the　want　of　enlightenment　and　freedom　amongst　the



people　　Ustaritz　and　Ulloa　dare　not　denounce。



　　　　A　worthy　counterpart　to　the　Methuen　Treaty　with　Portugal　is　the



Assiento　Treaty　of　1713　with　Spain；　under　which　power　was　granted



to　the　English　to　introduce　each　year　a　certain　number　of　African



negroes　into　Spanish　America；　and　to　visit　the　harbour　of



Portobello　with　one　ship　once　a　year；　whereby　an　opportunity　was



afforded　them　of　smuggling　immense　quantities　of　goods　into　these



countries。



　　　　We　thus　find　that　in　all　treaties　of　commerce　concluded　by　the



English；　there　is　a　tendency　to　extend　the　sale　of　their



manufactures　throughout　all　the　countries　with　whom　they　negotiate；



by　offering　them　apparent　advantages　in　respect　of　agricultural



produce　and　raw　materials。　Everywhere　their　efforts　are　directed　to



ruining　the　native　manufacturing　power　of　those　countries　by　means



of　cheaper　goods　and　long　credits。　If　they　cannot　obtain　low



tariffs；　then　they　devote　their　exertions　to　defrauding　the



custom…houses；　and　to　organising　a　wholesale　system　of　contraband



trade。　The　former　device；　as　we　have　seen；　succeeded　in　Portugal；



the　latter　in　Spain。　The　collection　of　import　dues　upon　the　ad



valorem　principle　has　stood　them　in　good　stead　in　this　matter；　for



which　reason　of　late　they　have　taken　so　much　pains　to　represent　the



principle　of　paying　duty　by　weight　　as　introduced　by　Prussia　



as　being　injudicious。







NOTES：







1。　Anderson；　vol。　i。　p。　127；　vol。　ii。　p。　350。







2。　M。　G。　Simon；　Recueil　d'Observations　sur　l'Angleterre。　M閙oires



et　Consid閞ations　sur　le　Commerce　et　les　Finances　d'Espagne。



Ustaritz；　Th閛rie　et　Pratique　du　Commerce。







3。　Chaptal；　De　l'Industrie　Fran鏰ise；　vol。　ii。　p。　245。







4。　The　chief　export　trade　of　the　Portuguese　from　Central　and



Southern　America　consisted　of　the　precious　metals。　From　1748　to



1753；　the　exports　amounted　to　18　millions　of　piastres。　See



Humboldt's　Essai　Politique　sur　le　Royaume　de　la　Nouvelle　Espagne；



vol。　ii。　p。　652。　The　goods　trade　with　those　regions；　as　well　as



with　the　West　Indies；　first　assumed　important　proportions；　by　the



introduction　of　the　sugar；　coffee；　and　cotton　planting。







5。　British　Merchant；　vol。　iii。　p。　69。







6。　Ibid。　p。　71。







7。　Ibid。　p。　76。







8。　Anderson；　vol。　iii。　p。　67。







9。　British　Merchant；　vol。　iii。　p。　267。







10。　Ibid。　vol。　iii。　pp。　15；　20；　33；　38；　110；　253；　254。







11。　Anderson　for　the　year　1703。







12。　Macpherson；　Annals　of　Commerce　for　the　years　1771　and　1774。　The



obstacles　thrown　in　the　way　of　the　importation　of　foreign　goods



greatly　promoted　the　development　of　Spanish　manufactures。　Before



that　time　Spain　had　been　obtaining　nineteen…twentieths　of　her



supplies　of　manufactured　goods　from　England。　　Brougham；　Inquiry



into　the　Colonial　Policy　of　the　European　Powers；　Part　I。　p。　421。







13。　Ustaritz；　Th閛rie　du　Commerce。　Ulloa；　R閠ablissement　des



Manufactures　d'Espagne。











Chapter　6







The　French







　　　　France；　too；　inherited　many　a　remnant　of　Roman　Civilisation。　On



the　irruption　of　the　German　Franks；　who　loved　nothing　but　the



chase；　and　changed　many　districts　again　into　forests　and　waste



which　had　been　long　under　cultivation；　almost　e