INDUSTRIAL EVOLUTION At all times within the historic period trade and industry have reacted profoundly on social life; and as we near the modern period in our own history the connection becomes more and more decisively determinant. In the oldest culture-history at all known to us, as we have seen, the commercial factor affects everything else; and at no time in European annals do we fail to note some special scene or area in which trade furnishes to politicians special problems. Thus the culture-history of Italy, as we have also seen, is in past epochs inseparably bound up with her commercial history. But as regards the north of Europe, it is in the modern period that we begin specially to recognise trade as playing a leading part in politics, national and international. The Mediterranean tradition is first seen powerfully at work in the history of the Hansa towns: then comes the great development of Flanders, then that of Holland, then that of England, which gained so much from the influx of Flemish and Dutch Protestant refugees in the reign of Philip II, but which was checked in its commercial growth, under Elizabeth and James alike, by their policy of granting monopolies to favourites. Sir Josiah Child puts "the latter end of Elizabeth's reign" as the time when England began to be "anything in trade" (New Discourse of Trade, 4th ed. p. 73). Cp. Prof. Busch on English trade under Henry VII, England unter den Tudors, i, 71-85, with Schanz, Englische Handelspolitik, i, 328, where it is stated that in the latter part of the sixteenth century there were 3,000 merchants engaged in the sea trade. This seems extremely doubtful when we note that the whole foreign trade of London was stated in Parliament in 1604 to be in the hands of some 200 citizens (Journals of the House of Commons, May 21, 1604), and the total customs of London amounted to £110,000 a year, as against £17,000 from all the rest of the kingdom. As Hume notes (ch. 45, note), a remonstrance from the Trinity House in 1602 declared that since 1588 the shipping and number of seamen in England had decayed about a third. (Cit. from Anglesey's Happy Future State of England, p. 128.) This again, however, seems doubtful. Broadly put, the fact appears to be that after a considerable development of woollen manufacture in the towns during the Wars of the Roses (above, p. 393), when sheep-rearing must have been precarious and wool would be imported, there was a general return to pasturage under the Tudor peace, the towns falling away, with their manufactures. Attempts were made under Henry VIII and Edward VI to develop the English mining industries by means of German workmen and overseers, but apparently with no great success (Ehrenberg, Hamburg und England im Zeit. der KÖn. Elisabeth, 1896, pp. 4-6). It was after the persecution of Protestants in the Netherlands under Charles V had driven many tradesmen to England for refuge that manufacturing industry notably revived; and in 1564-65 we find the year's exports of England reckoned at £68,190 for wool and £896,079 for cloths and other woollen wares; the whole of the rest of the export trade amounting only to £133,665 (Brit. Mus. Lansdowne MS. 10, fol. 121-22, cited by Ehrenberg, p. 8; cp. Cunningham, Industry and Commerce, ii, 82-83; Gibbins, Industrial Hist. of England, 3rd. ed. pp. 132-33.) After the fall of Antwerp, again, much of the commerce of that city fell to the share of England, some of her commercial and artisan population following it (Froude, Hist. of England, ed. 1872, xii, 1-2). In the same period the commercial life of north Germany, which had hitherto been far more widely developed than that of England (Ehrenberg, pp. 1-11), was thrown back on the one hand by the opening of the new ocean route to the East Indies, which upset the trans-European trade from the Mediterranean, and on the other by the new strifes between the princes and the cities (id. pp. 34-49); and here again English trade came to the front. The "Merchant Adventurers," ready enough to accept monopolies for their own incorporations, were free-traders as against other monopolists; Prof. Thorold Rogers is responsible for the strange proposition (Economic Interpretation of History, p. 186; Industrial and Commercial History of England, p. 321) that the chief source of the silver supply of Europe, before the discovery of the New World, was England. He offers nothing but his own conviction in proof of his statement, to which he adds the explanation that the silver in question was extracted from sulphuret of lead. It seems well to point out that there is not a shadow of foundation for the main assertion. That the argentiferous lead mines were worked seems clear; but that they could produce the main European supply without the fact being historically noted is incredible. On the other hand, silver mines were found in Germany in the tenth century and later, and there is reason to attribute to their output a gradual rise of prices before the fifteenth century (Anderson's History of Commerce, i, 67). In any case, there is no reason to doubt the statement of the historians of the precious metals, that what silver was produced in Europe in the Middle Ages was mostly mined in Spain and Germany. See Del Mar, History of the Precious Metals, 1880, pp. 38-43 and refs.; also Ehrenberg, Hamburg und England im Zeitalter der KÖnigin Elisabeth, 1896, pp. 4, 9; Menzel, Geschichte der Deutschen, Cap. 276, end; and Kohlrausch, History of Germany, Eng. tr. 1844, p. 261. The direct search for gold as plunder developed into the pursuit This was soon recognised by Spanish economists, who probably followed the French physiocrats, as represented in the excellent chapters of Montesquieu on money (cited above, p. 363). See the passage from Bernard of Ulloa (1753) cited by Blanqui, Hist. de l'Écon. polit., 2e Édit. ii, 28. Cp. Samber, Memoirs of the Dutch Trade, Eng. tr. 1719, pref. Apart from the habits set up by imperialism, the Spaniards were in part anti-industrial because industry was so closely associated with the Moriscoes (Major Hume, Spain, p. 195); and the innumerable Church holidays counted for much. Yet in the first half of the sixteenth century Spain had a great development of town industrial life (Armstrong, Introd. to same vol. pp. 83-84). This is partly attributable to the new colonial trade; but probably more to the connection with Flanders. Cp. Grattan, The Netherlands, pp. 66, 88. About 1670, however, manufacture for export had entirely ceased; the trade of Madrid, such as it was, was mainly in the hands of Frenchmen; the Church and the bureaucracy alone flourished; and although discharged soldiers swarmed in the cities, what harvests there were had to be reaped by the hands of French labourers who came each season for the purpose. Hume, as cited, p. 285. This usage subsisted nearly a century later (Tucker, Essay on Trade, ed. 1756, p. 25) Holland in the seventeenth century presented to the European world, as we have seen, the new and striking spectacle of a dense population thriving on a soil which could not possibly be made to feed them. "Trade" became the watchword of French statesmanship; and Colbert pressed it against a froward nobility; The turn seems to have been taken in the most natural way, after Parliament was able to force on James I a stoppage of the practice of granting monopolies. At his accession, the King had sought popularity by calling in and scrutinising the many monopolies granted by Elizabeth, which constituted the main grievance of the time. It was a triumph of the trading class over the upper, nothing more. As for the corporations, they were as avid of monopolies as the courtiers had ever been; and independent traders hampered by monopolist corporations were only too ready to become monopolist corporations themselves. Part of the result was that about 1635 "there were more merchants to be found upon the exchange worth each one thousand pounds and upwards than there were in the former days, before the year 1600, to be found worth one hundred pounds each." Everywhere in the seventeenth century, however, the new development meant new strife. Protestant England and Holland, Catholic France and Protestant Holland, flew at each other's throats in quarrels of trade and tariffs; and for the monopoly of the trade in cloves, Dutch and Spanish and English battled as furiously as for constraint and freedom of conscience. The primitively selfish and mistaken notion men had formed of commercial economy was on a level with the religious impulse as it had subsisted from the beginning of Christendom; and even as each Christian sect had felt it necessary to throttle the rest, each nation felt that its prosperity depended on the others' impoverishment. To spite the Dutch, the Cromwellian party in 1651 passed the Navigation Act, prohibiting all imports of foreign goods save in English ships or those of the nations producing them. In practice it was a total failure, the effect being to injure the English rather than the Dutch trade; but the Dutch themselves, who were fanatical for their own Asiatic monopoly trade, believed it would injure them, and went to war accordingly. The eulogy of the Navigation Act as "wise" by Adam Smith (put, by the way, with a "perhaps") is one of his worst mistakes. Roger Coke in 1672 testified (Treatise on Trade, p. 68, cited by M'Culloch) that within two years of the passing of the Act England lost the greater part of the Baltic and Greenland trades; and Sir Josiah Child's New Discourse of Trade shows in detail that the English by about 1670 or 1690 had lost to the Dutch even much of the trade they formerly had. (See Preface to second and later editions, and compare M'Culloch, note xi to his edition of the Wealth of Nations, and McCullagh, Industrial History, ii, 340.) The one direction in which the Act seems to have been successful was in stimulating shipbuilding and seafaring in the American colonies. (See Prof. Ashley in the Quarterly Journal of Economics, Boston, November, 1899, pp. 4-6.) Joshua Gee, in his Trade and Navigation of Great Britain Considered (1730, 6th ed. p. 113), expressly ascribes a "prodigious increase of our shipping" to "the timber trade between Portugal, etc., and our plantations," one result being that English ships have "become the common carriers in the Mediterranean, as well as between the Mediterranean, Holland, Hambro', and the Baltic." He says nothing of the Navigation Act, but lays stress on the cheap building of ships in New England, and notes (p. 114) that the Dutch habitually hire English ships "to transport their goods from Spain, etc., to Amsterdam, and other places." Even among expert merchants there was no true economic science, only a certain empirical knowledge, reduced to rule of thumb. Hence the traders were for ever tending to strangle trade, and the ablest administrators fell into the snare. Everywhere they tended to be possessed by the gross fallacy that they could somehow sell without buying, M. Dussieux (as cited, p. 127) frames a deplorable demonstration that Holland was impoverishing France and destroying all industry there by selling more articles than she bought. As if any country could go on buying in perpetuity without selling in payment. M. Dussieux goes on to admit that France before Colbert had some great industries, and a great agricultural export trade, as must needs have been. His argument shows the survival of the mercantilist delusion that trade can drain a productive country of its bullion. It is evident that Colbert helped trade more by checking fiscal abuses and promoting canals and roads than by protecting new industries. On the whole he seems to have gravely injured agriculture (id. pp. 89, note, and 133); and Adam Smith's criticism (Wealth of Nations, bk. iii, ch. ii; bk. iv, ch. ix) remains valid. He was "imposed upon by the sophistry of merchants and manufacturers, who are always demanding a monopoly against their countrymen," and by prohibiting export of grain he depressed agriculture, the natural and facile industry of France, and so promoted the rural misery which at length inspired the Revolution. It was essentially by way of reaction against his error that the Physiocrats fell into theirs—the denial that any industry was productive except agriculture. Even if he had not prohibited export of grain, his import duties, in so far as they excluded foreign products, would have checked the grain exports which had formerly paid for these. Thus, as M. Dussieux admits, Colbert failed to secure prosperity for the peasantry while he was helping industry. (Cp. Brandt, BeitrÄge, as cited.) Colbert in the nineteenth century had the benefit of the doctrine that monarchism prepared for democracy in France, and there is some truth in the protest of Morin that on this and other grounds he became the object of "un culte ridicule qui brave les notions les plus ÉlÉmentaires de l'Économie publique" (Origines de la dÉmocratie, Introd.—written in 1854—p. 48). Morin goes so far as to charge on Colbert equally with Louvois the misfortunes of France under Louis XIV (id. pp. 88, 120). Of course the rival nations were equally self-seeking. Prohibitive tariffs were necessarily lowest with the most specifically commercial State, the Dutch; and the free trade doctrine began early to be heard in England. E.g., from Dudley North. Macaulay, ed. cited, i, 253. See the quotations in M'Culloch, as above cited. Pepys, in his Diary, under date 1664, February 29, tells how Sir Philip Warwick expounded to him the "paradox" that it does not impoverish the nation to export less than it imports. For earlier instances of right thinking on the subject see the author's Trade and Tariffs, p. 65 sq. The repeal in 1663 of statutes against exporting bullion was carried in the interests of the East India Company, and apparently on a false theory; see it in Child, New Discourse, p. 173. Cp. Shaftesbury, Characteristics, Treatise II, pt. i, § 2, end, as to the advantage of a "free port." This had been partially insisted on, as we have seen, by the Merchant Adventurers in the days of Elizabeth and James; and Raleigh strongly pressed it in his Observations touching Trade and Commerce with the Hollander and other Nations, presented to James. Works, ed. 1829, viii, 356-57. Raleigh, however, was a bullionist. But whether rulers leant in the direction of free trade or strove to heap up import duties as did France, they went to war for monopolies and for imposts. Holland had as determinedly sought the ruin of Antwerp as England did that of Holland. And as the race-principle embroiled nations on the score of trade, so the class-principle set up new feuds of class in all the nations concerned. The new trading class fought for its own hand as the trade gilds of the Middle Ages had done; and the fact of its connections with the gentry did not prevent animosity between gentry and traders or investors in the mass. Thus were the old issues complicated, for good or for ill. Prof. Cunningham (English Industry and Commerce, ed. 1892, ii, 16-17) offers an unexpected defence of the "Mercantile System," under which bullion was striven for as "the direct means of securing power." "The wisdom of the whole scheme," he writes, "is apparently justified by the striking development of national power which took place during the period when it lasted. England first outstripped Holland and then raised an empire in the East on the ruins of French dependencies." After this argument Dr. Cunningham falters, observing: "But even if the logic of facts seems to tell in its favour, there is a danger of fallacy: success was attained, but how far was it due to the working of coal, and the age of mechanical invention, and how far to the policy pursued?" There is really no need to suppose such an antinomy between "the logic of facts" and any other logic. The only legitimate logic of facts is that which takes in all the facts. Now, seeing that France was as much devoted as England to the Mercantile System, and that If at this stage we seek to discover the manner of life of the working class in England, we shall find it hard to reach a confident conception. Many phrases in Shakespeare remind us that as towns grew there grew with them a nondescript semi-industrial class, untrained for any regular industry and unable to subsist without industry of some sort. In the latter part of the seventeenth century we seem to see a process of elimination at work by which the organisms capable of enduring toil are selected from a mass to which such toil was too irksome. In 1668 Sir Josiah Child writes that the English poor in a cheap year "will not work above two days in a week; their humour being such that they will ... just work so much and no more as may maintain them in that mean condition to which they have been accustomed." That, accordingly, a high price for bread was a good thing, as forcing the poor to industry, became the standing doctrine of such publicists as Petty. It is in the reign of the last of the Stuarts, whose sex made her perforce rely on ministers to rule for her, and whose unenlightened zeal To make a new aspiration pass for a law of progress merely because it is new would, of course, be only a fresh dressing of old error. There is no security that the scientific form will make any ideal more viable than another; every ideal, after all, has stood for what social science there was among its devotees. The hope of a moral transformation of the world is a state of mind so often seen arising in human history that some distrust of it is almost a foregone condition of reflection on any new ideal for thoughtful men. A dream of deliverance pervades the earliest purposive literature of the Hebrews; a fabled salvation in the past is made the ground for trust in one to come. Wherever the sense of present hardship and suffering outweighs the energetic spirit of life in the ancient world, the young men are found seeing visions, and the old men dreaming dreams; and the thought of "the far serenity of Saturn's days" becomes a foothold for the Virgilian hope of a golden age to come. A hundred times has the hope flowered, and withered again. Confident rebellions, eager revolutions, mark at once its rise and its fall. In our own age the new birth of hope arises in the face of what might have seemed the most definitive frustration; it becomes Without such a hope, the study of the past would indeed be desolating to the tired spectator. Followed through cycle after cycle of illusory progress and conscious decline, all nevertheless as full of pulsation, of the pride of life and the passion of suffering, as the human tide that beats to-day on the shores of our own senses, the history of organised mankind, in its trivially long-drawn immensity, grows to be unspeakably disenchanting. Considered as a tale that is told, it seems to speak of nothing but blind impulse, narrow horizons, insane satisfactions in evil achievement, grotesque miscalculation, and vain desire, till it is almost a relief to reflect how little we know of it all, how immeasurable are the crowded distances beyond the reach of our search-light. Alike the known and the unknown, when all is said, figure for us as fruitless, purposeless, meaningless moments in some vast, eternal dream. Poi di tanto adoprar, di tanti moti The untranslatable cadence of Leopardi has the very pulse of the wearied seeker's spirit. Yet, through all, the fascination of the inquiry holds us, as if in the insistent craving to understand there lay some of the springs of movement towards better days. We brood over the nearer remains, so near and yet so far, till out of the ruins of Rome there rise for us in hosts the serried phantoms of her tremendous drama; till we seem to catch the very rasp of Cato's voice, and the gleam of CÆsar's eye, swaying the tide of things. Still, the sensation yields no sense of fruition; Rome the dead, and Greece the undying, drift from our reach into the desert distance. Beyond their sunlit fragments lies a shoreless and desolate twilight-land, receding towards the making of the world; and there in the Save for such a conception and such a purpose, the civilisations of to-day could have no rational hope to survive in perpetuity any more than those of the past. The fullest command of physical science, however great be the resulting power of wealth-production, means no solution of the social problem, which must breed its own science. The new ground for hope is that the great discipline of physical science has brought with it the twofold conception of the reign of law in all things and the sequence of power upon comprehension, even to the controlling of the turbulent sea of human life. With the science of universal evolution has come the faith in unending betterment. And this, when all is said, is the vital difference between ancient and modern politics: that for the ancients the fact of eternal mutation was a law of defeat and decay, while for us it is a law of renewal. If but the faith be wedded to the science, there can be no predictable limit to its fruits, however long be the harvesting. FOOTNOTES: |