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as　the　aristocracy　became　a　despotic　oligarchy；　destructive　of　the



freedom　and　energies　of　the　people；　the　roots　of　power　and



prosperity　died　away；　notwithstanding　that　their　branches　and



leading　stem　appeared　still　to　flourish　for　some　time　longer。'（5*）



　　　　A　nation　which　has　fallen　into　slavery；'　says　Montesquieu；（6*）



'strives　rather　to　retain　what　it　possesses　than　to　acquire　more；



a　free　nation；　on　the　contrary；　strives　rather　to　acquire　than　to



retain。'　To　this　very　true　observation　he　might　have　added　　and



because　anyone　strives　only　to　retain　without　acquiring　he　must



come　to　grief；　for　every　nation　which　makes　no　forward　progress



sinks　lower　and　lower；　and　must　ultimately　fall。　Far　from　striving



to　extend　their　commerce　and　to　make　new　discoveries；　the　Venetians



never　even　conceived　the　idea　of　deriving　benefit　from　the



discoveries　made　by　other　nations。　That　they　could　be　excluded　from



the　trade　with　the　East　Indies　by　the　discovery　of　the　new



commercial　route　thither；　never　occurred　to　them　until　they



actually　experienced　it。　What　all　the　rest　of　the　world　perceived



they　would　not　believe；　and　when　they　began　to　find　out　the



injurious　results　of　the　altered　state　of　things；　they　strove　to



maintain　the　old　commercial　route　instead　of　seeking　to　participate



in　the　benefits　of　the　new　one；　they　endeavoured　to　maintain　by



petty　intrigues　what　could　only　be　won　by　making　wise　use　of　the



altered　circumstances　by　the　spirit　of　enterprise　and　by　hardihood。



And　when　they　at　length　had　lost　what　they　had　possessed；　and　the



wealth　of　the　East　and　West　indies　was　pouted　into　Cadiz　and　Lisbon



instead　of　into　their　own　ports；　like　simpletons　or　spendthrifts



they　turned　their　attention　to　alchemy。（7*）



　　　　In　the　times　when　the　Republic　grew　and　flourished；　to　be



inscribed　in　the　Golden　Book　was　regarded　as　a　reward　for



distinguished　exertions　in　commerce；　in　industry；　or　in　the　civil



or　military　service　of　the　State。　On　that　condition　this　honour　was



open　to　foreigners；　for　example；　to　the　most　distinguished　of　the



silk　manufacturers　who　had　immigrated　from　Florence。（8*）　But　that



book　was　closed　when　men　began　to　regard　places　of　honour　and　State



salaries　as　the　family　inheritance　of　the　patrician　class。　At　a



later　period；　when　men　recognised　the　necessity　of　giving　new　life



to　the　impoverished　and　enfeebled　aristocracy；　the　book　was



reopened。　But　the　chief　title　to　inscription　in　it　was　no　longer；



as　in　former　times；　to　have　rendered　services　to　the　State；　but　the



possession　of　wealth　and　noble　birth。　At　length　the　honour　of　being



inscribed　in　the　Golden　Book　was　so　little　esteemed；　that　it



remained　open　for　a　century　with　scarcely　any　additional　names。



　　　　If　we　inquire　of　History　what　were　the　causes　of　the　downfall



of　this　Republic　and　of　its　commerce；　she　replies　that　they



principally　consisted　in　the　folly；　neglect；　and　cowardice　of　a



worn…out　aristocracy；　and　in　the　apathy　of　a　people　who　had　sunk



into　slavery。　The　commerce　and　manufactures　of　Venice　must　have



declined；　even　if　the　new　route　round　the　Cape　of　Good　Hope　had



never　been　discovered。



　　　　The　cause　of　it；　as　of　the　fall　of　all　the　other　Italian



republics；　is　to　be　found　in　the　absence　of　national　unity；　in　the



domination　of　foreign　powers；　in　priestly　rule　at　home；　and　in　the



rise　of　other　greater；　more　powerful；　and　more　united　nationalities



in　Europe。



　　　　If　we　carefully　consider　the　commercial　policy　of　Venice；　we



see　at　a　glance　that　that　of　modern　commercial　and　manufacturing



nations　is　but　a　copy　of　that　of　Venice；　only　on　an　enlarged　（i。e。



a　national）　scale。　By　navigation　laws　and　customs　duties　in　each



case　native　vessels　and　native　manufactures　were　protected　against



those　of　foreigners；　and　the　maxim　thus　early　held　good　that　it　was



sound　policy　to　import　raw　materials　from　other　states　and　to



export　to　them　manufactured　goods。（9*）



　　　　It　has　been　recently　asserted　in　defence　of　the　principle　of



absolute　and　unconditional　free　trade；　that　her　protective　policy



was　the　cause　of　the　downfall　of　Venice。　That　assertion　comprises



a　little　truth　with　a　great　deal　of　error　if　we　investigate　the



history　of　Venice　with　an　unprejudiced　eye；　we　find　that　in　her



case；　as　in　that　of　the　great　kingdoms　at　a　later　period；　freedom



of　international　trade　as　well　as　restrictions　on　it　have　been



beneficial　or　prejudicial　to　the　power　and　prosperity　of　the　State



at　different　epochs。　Unrestricted　freedom　of　trade　was　beneficial



to　the　Republic　in　the　first　years　of　her　existence；　for　how



otherwise　could　she　have　raised　herself　from　a　mere　fishing　village



to　a　commercial　power？　But　a　protective　policy　was　also　beneficial



to　her　when　she　had　arrived　at　a　certain　stage　of　power　and　wealth；



for　by　means　of　it　she　attained　to　manufacturing　and　commercial



supremacy。　Protection　first　became　injurious　to　her　when　her



manufacturing　and　commercial　power　had　reached　that　supremacy；



because　by　it　all　competition　with　other　nations　became　absolutely



excluded；　and　thus　indolence　was　encouraged。　Therefore；　not　the



introduction　of　a　protective　policy；　but　perseverance　in



maintaining　it　after　the　reasons　for　its　introduction　had　passed



away；　was　really　injurious　to　Venice。



　　　　Hence　the　argument　to　which　we　have　adverted　has　this　great



fault；　that　it　takes　no　account　of　the　rise　of　great　nations　under



hereditary　monarchy。　Venice；　although　mistress　of　some　provinces



and　islands；　yet　being　all　the　time　merely　one　Italian　city；　stood



in　competition；　at　the　period　of　her　rise　to　a　manufacturing　and



commercial　power；　merely　with　other　Italian　cities；　and　her



prohibitory　commercial　policy　could　benefit　her　so　long　only　as



whole　nations　with　united　power　did　not　enter　into　competition　with



her。　But　as　soon　as　that　took　place；　she　could　only　have　maintained



her　supremacy　by　placing　herself　at　the　head　of　a　united　Italy　and



by　embracing　in　her　commercial　system　the　whole　Italian　nation。　No



commercial　policy　was　ever　clever　enough　to　maintain　continuously



the　commercial　supremacy　of　a　single　city　over　united　nations。



　　　　From　the　example　of　Venice　（so　far　as　it　may　be　adduced　against



a　protective　commercial　policy　at　the　present　time）　neither　more



nor　less　can　be　inferred　than　this　　that　a　single　city　or　a　small



state　cannot　establish　and　maintain　such　a　policy　successfully　in



competition　with　great　states　and　kingdoms；　also　that　any　power



which　by　means　of　a　protective　policy　has　attained　a　position　of



manufacturing　and　commercial　supremacy；　can　（after　she　has　attained



it）　revert　with　advantage　to　the　policy　of　free　trade。



　　　　In　the　argument　before　adverted　to；　as　in　every　other　when



international　freedom　of　trade　is　the　subject　of　discussion；　we



meet　with　a　misconception　which　has　been　the　parent　of　much　error；



occasioned　by　the　misuse　of　the　term　'freedom。'　Freedom　of　trade　is



spoken　of　in　the　same　terms　as　religious　freedom　and　municipal



freedom。　Hence　the　friends　and　advocates　of　freedom　feel　themselves



especially　bound　to　defend　freedom　in　all　its　forms。　And　thus　the



term　'free　trade'　has　become　popular　without　drawing　the　necessary



distinction　between　freedom　of　internal　trade　within　the　State　and



freedom　of　trade　between　separate　nations；　notwithstanding　that



these　two　in　their　nature　and　operation　are　as　distinct　as　the



heaven　is　from　the　earth。　For　while　restrictions　on　the　internal



trade　of　a　state　are　compatible　in　only　very　few　cases　with　the



liberty　of　individual　citizens；　in　the　case　of　international　trade



the　highest　degree　of　individual　liberty　may　consist　with　a　high



degree　of　protective　policy。　Indeed；　it　is　even　possible　that　the



greatest　freedom　of　international　trade　may　result　in　national



servitude；　as　we　hope　hereafter　to　show　from　the　case　of　Poland。　In



respect　to　this　Montesquieu　says　truly；　'Commerce　is　never



subjected　to　greater　restrictions　than　in　free　nations；　and　never



subjected　to　less　ones　than　in　those　under　despotic



government。'（10*）







NOTES：







1。　De　l'Ecluse；　Florence　et　ses　Vicissitudes；　pp。　23；　26；　32；　163；



213。







2。　Pechio；　Histoire　de　l'Economie　Politique　en　Italie。







3。　Amalfi　contained　at　the　period　of　her　prosperity　50；000



inhabitants。　Flavio　Guio；　the　inventor　of　the　mariner's　compass；



was　a　citizen　of　Amalfi。　It　was　the　sack　of　Amalfi　by　the　Pisans



（1135　or　1137）　that　that　ancient　book　was　discovered　which　later　on



became　so　injurious　to　the　freedom　and　energies　of　Germany　　the



Pandects。







4。　Hence　Charles　V　was　the　destroyer　of　commerce　and　industry　in



Italy；　as　he　was　also　in　the　Netherlands　and　in　Spain。　He　was　the



introducer　of　nobility　by　patent；　and　of　the　idea　that　it　was



disgraceful　for　the　nobility　to　carry　on　commerce　or　manufactures



　an　idea　which　had　the　most　destructive　influence　on　the　national



industry。　Before　his　time　the　contrary　idea　prevailed；　the　Medici



continued　to　be　engaged　in　commerce　long　after　they　had　become



sovereign　rulers。







5。　〃Quand　les　nobles；　au　lien　de　verser　leur　sang　pour　la　patrie；



au　lieu　d'illustrer　l'etat　par　des　victoires　et　de　l'agrandir　par



des　conquetes；　n'eurent　plus　qu'a　jouir　des　honneurs　et　a　se



partager　des　impots　on　dut　se　demander　pourquoi　il　y　avait　huit　ou



neuf　cents　habitants　de　Venice　qui　se　disaient　proprietaries　de



toute　la　Republique。〃　（Daru；　Histoire