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trade； and a very trifling disgust will make him remove his
capital； and together with it all the industry which it supports；
from one country to another。 No part of it can be said to belong to
any particular country till it has been spread； as it were； over
the face of that country； either in buildings or in the lasting
improvement of lands。 No vestige now remains of the great wealth
said to have been possessed by the greater part of the Hanse Towns
except in the obscure histories of the thirteenth and fourteenth
centuries。 it is even uncertain where some of them were situated；
or to what towns in Europe the Latin names given to some of them
belong。'（17*）
How strange that Adam Smith； having such a clear insight into
the secondary causes of the downfall of the Hanseatic League； did
not feel himself compelled to examine into its primary causes！ For
this purpose it would not have been at all necessary to have
ascertained the sites where the fallen cities had stood； or to
which cities belonged the Latin names in the obscure chronicles。 He
need not even have consulted those chronicles at all。 His own
countrymen； Anderson； Macpherson； King； and Hume could have
afforded him the necessary explanation。
How； therefore； and for what reason could such a profound
inquirer permit himself to abstain from an investigation at once so
interesting and so fruitful in results？ We can see no other reason
than this that it would have led to conclusions which would have
tended but little to support his principle of absolute free trade。
He would infallibly have been confronted with the fact that after
free commercial intercourse with the Hansards had raised English
agriculture from a state of barbarism； the protective commercial
policy adopted by the English nation at the expense of the
Hansards； the Belgians； and the Dutch helped England to attain to
manufacturing supremacy； and that from the latter； aided by her
Navigation Acts； arose her commercial supremacy。
These facts； it would appear； Adam Smith was not willing to
know or to acknowledge； for indeed they belong to the category of
those inconvenient facts of which J。B。 Say observes that they would
have proved very adverse to his system。
NOTES：
1。 Anderson； Origins of Commerce； pt。 I； p。 46。
2。 Wealth of Nations； Book IV； ch。 ii。
3。 Hume； History of England； Part IV； ch。 xxi。
4。 The revenues of the kings of England were derived at that time
more from export duties than from import duties。 Freedom of export
and duties on imports （viz。 of manufactures） betoken at once an
advanced state of industry and an enlightened State administration。
The governments and countries of the North stood at about the same
stage of culture and statemanship as the Sublime Porte does in our
day。 The Sultan has； notably； only recently concluded commercial
treaties； by which he engages not to tax exports of raw materials
and manufactures higher than fourteen per cent but imports not
higher than five per cent。 And there accordingly that system of
finance which professes to regard revenue as its chief object
continues in full operation。 Those statesmen and public writers who
follow or advocate that system ought to betake themselves to
Turkey； there they might really stand at the head of the times。
5。 The Hansards were formerly termed 'Easterlings' or Eastern
merchants； in England； in contradistinction to those of the West；
or the Belgians and Dutch。 From this term is derived 'sterling' or
'pound sterling'； an abbreviation of the word 'Easterlings' because
formerly all the coin in circulation in England was that of the
Hanseatic League。
6。 Hume； History of England； ch。 xxxv。
7。 M。 I。 Sartorius； Geschichte der Hansa。
8。 II Edward III； cap。 5。
9。 Rymer's Foedera； p。 496。 De Witte； Interest of Holland； p。 45。
10。 Hume； History of England； chap。 xxv。
11。 Edward IV； cap。 iv。 The preamble to this Act is so
characteristic that we cannot refrain from quoting it verbatim。
'Whereas to the said Parliament； by the artificers men and
women inhabitant and resident in the city of London and in other
cities； towns； boroughs and villages within this realm and Wales；
it has been piteously shewed and complained； how that all they in
general and every of them he greatly impoverished and much injured
and prejudiced of their worldly increase and living； by the great
multitude of divers chaffers and wares pertaining to their
mysteries and occupations； being fully wrought and ready made to
sale； as well by the hand of strangers being the king's enemies as
others； brought into this realm and Wales from beyond the sea； as
well by merchant strangers as denizens or other persons； whereof
the greatest part is deceitful and nothing worth in regard of any
man's occupation or profits； by occasion whereof the said
artificers cannot live by their mysteries and occupations； as they
used to do in times past； but divers of them as well
householders as hirelings and other servants and apprentices in
great number be at this day unoccupied； and do hardly live； in
great idleness； poverty and ruin； whereby many inconveniences have
grown before this time； and hereafter more are like to come （which
God defend）； if due remedy be not in their behalf provided。'
12。 Hume； chap。 xxvi。
13。 Hume； chap。 xxxv； also Sir J。 Hayward； Life and Reign of Edward
VI。
14。 Hume； chap。 xxxvii； Heylyn。
15。 Campbell's Lives of the Admirals； vol。 i； p。 386。
16。 Our author would appear to have forgotten； or else unfairly
ignored； the exploits of the British fleet under Lord Exmouth。
17。 Smith； Wealth of Nations； Book III； ch。 iv。
Chapter 3
The Netherlanders
In respect to temperament and manners； to the origin and
language of their inhabitants； no less than to their political
connection and geographical position； Holland； Flanders； and
Brabant constituted portions of the German Empire。 The more
frequent visits of Charlemagne and his residence in the vicinity of
these countries must have exercised a much more powerful influence
on their civilisation than on that of more distant German
territories。 Furthermore； Flanders and Brabant were specially
favoured by nature as respects agriculture and manufactures； as
Holland was as respects cattle…farming and commerce。
Nowhere in Germany was internal trade so powerfully aided by
extensive and excellent sea and river navigation as in these
maritime states。 The beneficial effects of these means of water
transport on the improvement of agriculture and on the growth of
the towns must in these countries； even at an early period； have
led to the removal of impediments which hindered their progress and
to the construction of artificial canals。 The prosperity of
Flanders was especially promoted by the circumstance that her
ruling Counts recognised the value of public security； of good
roads； manufactures； and flourishing cities before all other German
potentates； Favoured by the nature of their territory； they devoted
themselves with zeal to the extirpation of the robber knights and
of wild beasts。 Active commercial intercourse between the cities
and the country； the extension of cattle…farming； especially of
sheep； and of the culture of flax and hemp； naturally followed； and
wherever the raw material is abundantly produced； and security of
property and of intercourse is maintained； labour and skill for
working up that material will soon be found。 Meanwhile the Counts
of Flanders did not wait until chance should furnish them with
woollen weavers； for history informs us that they imported such
artificers from foreign countries。
Supported by the reciprocal trade of the Hanseatic League and
of Rolland； Flanders soon rose by her woollen manufactures to be
the central point of the commerce of the North； just as Venice by
her industry and her shipping had become the centre of the commerce
of the South。 The merchant shipping； and reciprocal trade of the
Hanseatic League and the Dutch； together with the manufacturing
trade of Flanders； constituted one great whole； a real national
industry。 A policy of commercial restriction could not in their
case be deemed necessary； because as yet no competition had arisen
against the manufacturing supremacy of Flanders。 That under such
circumstances manufacturing industry thrives best under free trade；
the Counts of Flanders understood without having read Adam Smith。
Quite in the spirit of the present popular theory； Count Robert
III； when the King of England requested him to exclude the Scotch
from the Flemish markets； replied； 'Flanders has always considered
herself a free market for all nations； and it does not consist with
her interests to depart from that principle。'
After Flanders had continued for centuries to be the chief
manufacturing country； and Bruges the chief market； of Northern
Europe； their manufactures and commerce passed over to the
neighbouring province of Brabant； because the Counts of Flanders
would not continue to grant them those concessions to which in the
period of their great prosperity they had laid claim。 Antwerp then
became the principal seat of commerce； and Louvain th
