A

HISTOKY

OF

COMMERCE

BY

CLIVE
KNOX

OF

PROFESSOR
IN

YALE

REVISED

LONGMANS,
FIFTH

55
39

POLITICAL

ECONOMY

UNIVERSITY

AND

ENLARGED

GREEN,
AVENUE,

PATERNOSTER

TORONTO,

Ph.D.

DAY,

BOMBAY,

AND
NEW

ROW,
CALCUTTA

1925

YORK
LONDON

AND

MADRAS

CO.

Copyright, 1907, by
LONGMANS, GREEN, AND

Co.

Copyright, 1914, by
LONGMANS,

GREEN,

Co.

AND

Copyright, 1922, by
GREEN,

LONGMANS,

First

Edition,

Co.

AND

1907

May,

Reprinted, April, 1908; June, 1909; August,

August,

1912

New

Edition,

June,

Reprinted,

February,
August,

August,
Edition

Reprinted,

MADE

thoroughly
February,

IN

1914

1916; April. 1917

1919

September,

New

1910

1920
1921

revised, September.
1923;

May,

1925

THE

UNITED

January,

STATES

1922

1924,

E.

209296

L.

D.

PREFACE

The

have

history.

covering

the

and

added

have

in the

has

period

another
in

The

following.

of

attempt

changes

of

the

time

usually
I have
to

show

rather
student

treated

thought
the

to

of

the

make

have

had
and

from

the

it better, by
for the
omit

the

the

the

the

history

at

that

date,

peace

on

to

commerce

immediately
of

paths

of

matters

which

international

these

has

they

are

subjects,

followed,

hard

for

understand.
CLIVE

IV

are

trade.

outside

commerce

and

commercial

exchange

of

world

the

account

foreign
history

of

accustomed

take

to

because

commerce

book

intelligible the

which

reasons

of

nations

its

this

history

great

in

points

of

narrative

of

touching

course

part

years

from

to

currency

apart

reasons

than

the

far

1914

my

finance,

three

or

commerce

In

public

close

turning

great

revised

to

two

forms.

in

the

part, covering

the

since

departed

of

one

accordingly

recent

and

war

marks

1914

year

DAY

the

CONTENTS

PART
ANCIENT

COMMERCE
PAGE

CHAPTER

1.

II.

CONDITIONS

GENERAL

PERIOD

ORIENTAL

III.

GREEK

PERIOD

17

IV.

ROMAN

PERIOD

26

PART

II

MEDIEVAL
V.
VI.

VII.
VIII.

CONDITIONS

COMMERCE
1000

31

TRADE

TOWN

41

TRADE

LAND

54

FAIRS

IX.

SEA

X.

THE

63
70

TRADE
LEVANT

79

TRADE

XI.

COMMERCE

OF

SOUTHERN

XII.

COMMERCE

OF

NORTHERN

XIII.

YEAR

THE

ABOUT

DEVELOPMENT

OF

90.

EUROPE

102

EUROPE

ORGANIZATION

MEDIEVAL

THE

OF

113

COMMERCE
XIV.

COMMERCE

POLITICS

AND

IN

PART
MODERN
XV.
XVI.
XVII.
XVIII.
XIX.
XX.

EXPLORATION

CREDIT
THE

SPAIN
THE

AND

OF

MIDDLE

AGES

123
.

III

128

DISCOVERY
ECONOMIC

THE

139

ORGANIZATION

150

CRISES
STATE

MODERN
AND

LATER

COMMERCE

AND

DEVELOPMENT

THE

THE

AND

MERCANTILE

SYSTEM..

161
..

174

PORTUGAL

190

NETHERLANDS
v

CONTENTS

VI

PAGE

CHAPTER

COMMERCIAL

XXI.

ENGLAND:

SURVEY

XXII.

ENGLAND:

EXPORTS

209

XXIII.

ENGLAND:

IMPORTS; SHIPPING; POLICY

219

XXIV.

FRANCE

XXV.
XXVI.

STATES

250

STATES

MINOR

AND

XXVIII.

COMMERCE

XXIX.

MACHINERY

263

IV
COMMERCE

COAL

AND

270

MANUFACTURES

AND

XXX.

ROADS

AND

RAILROADS

XXXI.

MEANS

OF

NAVIGATION

XXXII.

THE

WARES

XXXIII.

THE

MODERN

'XXXIV.

COMMERCIAL

XXXIX.
XL.

XLI.
XLII.

317
329
345

DEVELOPMENT,
COMMERCIAL

OF

COMMERCIAL
PRE-WAR

GERMAN

MINOR

XLIV.

EASTERN

400

UNDER

THE

EMPIRE

408
422

STATES

CENTRAL

OF

SOUTHERN

OF

NORTHERN

AND

OF

454

V
STATES

PRODUCTION,

1789

XLVII.

COMMERCE

XLVIII.

NATIONAL

POLICY, 1789-1815
EXPANSION, 1815-1860

AND

IMPORTS,

COMMERCE,

FOREIGN

469

1789

511

1815-1860

DEVELOPMENT,

530
OF

COMMERCE,

1815-1860

1860-1914

540
552

1860-1914

POLICY, DIRECTION

485

498

AND

IMPORTS, POLICY, DIRECTION

EXPORTS,

431
442

TRADE

NATIONAL

EUROPE

ORGANIZATION

EXPORTS,

EUROPE..

EUROPE

INTERNAL

LII.

376
386

XLVI.

LIII.

368

1850-1914

PROBLEMS

UNITED

LI.

POLICY

DEVELOPMENT,

PART

L.

357

..

STATES

GERMANY

STATES

XLIX.

1800-1850..

FRANCE

XLIII.

XLV.

302

COMMERCE

REFORM

ENGLAND

COMMUNICATION

AND

POLICY

ENGLAND:

XXXVIII.

290

COMMERCIAL

ENGLAND

280

ORGANIZATION

OF

ENGLAND:

XXXVI.

229
242

RECENT

XXXVII.

199

..

DEVELOPMENT

COMMERCIAL

OF

PART

XXXV.

DEVELOPMENT..

POLICY

GERMAN

ITALY

XXVII.

SURVEY

FRANCE:

THE

OP

566
OF

COMMERCE,

1860-1914

578

CONTENTS

Vll

PART

VI

WORLD

WAR

CHAPTER

PAGE

LIV.
LV.
LVI.
LVII.
LVIII.

COMMERCE

AND

UNITED

KINGDOM,

FRANCE

AND

CENTRAL

THE

AND

UNITED

STATES,

WORLD

THE

WAR,

1914-1918

1914-1920
PROBLEM
EASTERN
1914-1920

593
607

OF

EUROPE,

REPARATIONS
1914-1920

622
634
648

671

INDEX
.

MAPS

OF

LIST

PAGE

NO.

1.

The

2.

Roman

3.

Tolls

4.

The

5.

Trade

The

7.

Trade

9.

Roads

River

11.

Routes

of

13.

Map

14.

European

85
...

about

Empire

94
...

1400

106
.

about

Europe

of

Italy

1250

108
.

German

the

about

Merchant

114

.Facing

World

Portolano

of

Beazley's

from

1400

129

Reproduced

1351.
"Prince

the

Henry,

(Putnams).

of

the

and

Germany

ian

Navigator,"
Discoveries

Europe

91

of

Map

permission

12.

and

Asia

Commercial

Laurent

of

66

Geography

Medieval

by

58

between

Relations

The

28

Empire

Commercial
Trade

Britain

Loire

between

Routes

Hanseatic

10.

Champagne

of

Venetian

The

Facing

(colored)
Southern

in

the

on

Fairs

6.

8.

World

Ancient

the

World

Known

Powers

131

Portuguese
the

in

in America

Time

Columbus

of

(colored)

132

.Facing

166

15.
16.

17.

The

Spanish

Spheres

.........

Powers

European

175

Monarchy
in

the

East

about

193

1700
.

Trade

of

Seventeenth
18.

The

19.

Germany

20.

Italy,

21.

Waterways

22.

Growth

of

English

Colonial
in

the

the

Early

........

237

Empire

Eighteenth

Century

251
263

1515

of

in

203

Century

French

Companies

of

the

North

Central

European

Europe

Railroads
ix

294
298

LIST

MAPS

OF

NO

23.

PAGE

The

British

Empire,

(colored)

1902

.Facing
.

24.

of

Development

the

German

362

Zollverein

403
....

25.

The

26.

North

27.

United

Trans-Siberian

Railroad
in

America

1782

470

Acquisition

States,

463

of

Territory,

1783-1853

513
.

28.

River

29.

Canals

in

Transportation
of

the

United

1860

517

States

Facing
.

520

30.

Railroads,

1830-1850

524

31.

Railroads,

1850-1860

525

32.

Products

33.

Course

of
of

the

United

Steamship

States
Lines

568
in

1880

587

HISTORY

PART

OF

I."

COMMERCE

COMMERCE

ANCIENT

CHAPTER

CONDITIONS

GENERAL

The

1.

of

purposes

moment

and

the

at

difficulties which

the

successfully carried
As
the

to

getting

purposes

and

energy

the

material

of subsistence

the

farmer

supplying
the

that

work

valuable
who

other

at

when

and

the

time

when

merchant

to

place and

time.

the
as

farmer

they

or

they

attend

the

He

in

does

the

place

not

proper

are.

will show

of

another

the

of

hands

have

we

still

they

only

distribution

of

he is

form
as

of

the

realized
wanted

are

business

the

all
and

farmer

possibilityis

where

are
man

which

It is the

change

manufacturer, but

of

clothing and

and

fruit of the

this

wanted.

are

to

the

means

think

to

aid

Articles

ripe

and

the

they produce

manufacturer,

them;

put

which

them.

use

the

of

food

The

desirable, the

are

the

put into

are

with

little reflection

articles

can

in

him

charged especiallywith

as

us.

in

is consumed

man

accustomed

are

but

to

they

product

they

be

largest part of

The

classes, without

desirable

possibilityof good
only

We

wants,

these

pronounce

finished

commerce

if it is to

overcome

furnish

which

manufacturer

when

them

wants

will stop

of

purposes

ordinary

of culture.

of

only

should

the

be of little use

and

if he

brief.

be

may

of

material

class,would
tools

we

the

our

be

must

things

and

and

the

follow

will

on.

the

time

reader

commerce

consider

to

start

The

"

history of

the
intelligently

more

the

commerce.

of the

wares,

in

things, like

truly a producer

Ice
process,

be

may

may

be

or

it may

HISTORY

be

employed;

he

in

no

wants

saved

COMMERCE

in

manufactured

brought

it makes

OF

from

summer

the

from

summer

which

difference

by the ammonia
precedingwinter, or

Greenland.
one

his ice in summer,

To

of these

and

the

the

sumer
con-

is

methods

trader

it

who

by saving or transportingthe ice is as useful

the ice.
who
makes
of societyas the manufacturer
a member
sonal.
2. Obstacles
to the development of commerce,
(i) Perthe advantages of commerce,
Great as are
ages of
were
requiredto give it the positionwhich it holds
progress
in the modern
its way
It has had to make
world.
against
of these obstacles the
innumerable
obstacles;and to some
reader is asked now
to give his attention.
There
term
which
we
is, first of all,the difficulty
may
of course.
now
personal. A man
accepts trade as a matter
He
devotes
himself to some
specialline of production,the
growing of wheat or the making of shoes,feelingsure that he
else he wants, and
can
exchange his surplus for whatever
making his exchanges without hesitation. An uncivilized man,
in only two ways,
to satisfyhis wants
however, is accustomed
labor in production or by robbing another
man.
by his own
He
is suspiciousof any
and is unoffer to exchange wares,
willing
to apply himself to any
specialline of productionthat
would
him
make
The
dependent on trade.
ignorance and
in early times the greatest hindrances
suspicionsof men
were
to the rise of commerce,
portions
as
they are stillin backward
of the world; it has required generationsof experience to
teach
for things which
wants
men
they did not themselves
produce,and to teach them to satisfythese wants by exchange.
of conCommerce
took
definite proportionsand became
siderable
on
importance only when a specialclass of traders and
merchants
to study wants,
it their business
made
arose, who
to inspirenewr
of satisfying
and to provide the means
ones,
satisfies his wants

"

them.
3.

(2) Physical obstacles.

of commerce,

which

we

"

Another
may

term

in the purdifficulty
suit
physical,appears in

each

from
or

have
Assume

market.

all the

wheat

whether

In

land

are

of

to

himself

and

feeds

while

day;

of the

Another

can

which

or

It has

he
has

secured

boat

estimated

than

or

that

horse

of

number

is the

afford to

not

miles

drag

can

in this question
could

find

may

day and a
strong pack-horse can

roads

that

transportation,

been

considerable

level

from

bad

so

he

facilities for

mile;

who

in
ton

character
wheat

bring

still find it

greater value

make

would

before

requiremore

factor

farmer

might

his horses

long,

of

it to

getting

necessary,

journey

would

first-rate

wagon-load might
be exported from

are

aspect the

of

ton

much

the

is

of

load

water, by pack-animal, cart, canal

or

on

ware.

market

has

horses
on

bearer

further.

even

road

great importance.

three

carry

the

with

city
cost

goods
hundredweight a

move

the

for

carefullythe

many

this

burden

human

half

and

by

steamer,

on

he

consumed

purchaser.

to

that

is slow

progress

count

wagon-load; evidently,if

his

to

need

out

sets

distance
produced at some
to be transported by land

are

they

who

farmer

will

which

that

other, so
A

sea.

grain

of articles

exchange

the

profitableto bring butter, which

the same
bulk, so that the profits
the expenses
of the journey. Gold

in
pay
the

the

interior

of Alaska

transportationof

under

difficulties

other

any

product

impossible.
Risk

(3)

4.

The

"

of

loss

at

to time
for

read

we

from

confiscated
count

TMs

by

to

however,
not

of

no

the
idea

only
peace

on

make

the

the

wars

far

state

was

more
so

term

of

the

of

that

must

his

profits.
of

one

military,by
word.

danger

common,

weak

merchant

character

of this

extent

charged
captured and
rates

figureout

can

may

meaning

current

were

we

be

The

sea.

he

high

may

time

From

source.

of

cargo

clear the

which

of the

another

or

charges before

commerce,

bers.
public enemies or robto face not only physical

newspaper

ship

enemy

illustration will

stretching of

times

an

his insurance

obstacles

when

in the modern

insurance, when

war

has

carrier of merchandise

but also dangers

difficulties,

of

hand

the

It

in earlier

the

some

gives,
times,

but

when

the

merchant,

even

in
in

every

mile

of his progress,
land

on

must

his

bear

OF

HISTORY

COMMERCE

exposed

was

attack

to

by highwaymen

Either the merchant

by piratesat sea.
risks,or pay somebody to protect him

and

own

be the same,
the result would
In either case
against them.
the necessityof charging higher prices for the wares, and so
making sales less attractive and less common.
restrictions.
Still another
element
6. (4) Political
can
often to be an obstacle
in history,
which seems
be distinguished
This element may be termed
to the development of commerce.
A man
the political.
is not only a producer and consumer;
of
of it or not, a member
he is conscious
he is also,whether
kind of political
the state, and subject to some
organization
"

which

restrains

further

efforts to
meant

the

to

him

directs

and

his

in

interests

own

States who

of

to

proposes

import

some

ware

whole

in

merchant

individuals.

by laws
against

restricted

are

protect the interests of the people as

selfishness

life. His

his economic

United

the

another

from

country

only the natural transportation

and insurance
duty in
charges,but possiblyalso a customs
the exchange unprofitable.If he
make
addition,that would
proposed to import a foreign ship for use in the American
coastingtrade he would find that he is absolutelyprohibited
how
much
he might be willingto
from doing this,no
matter
pay as duty.
restraints are
These
imposed nowadays, not because the
will find that

government

he must

pay

not

individuals

that

assumes

cannot

take

care

of

lose money

by making
hurt
purchases abroad, but because it thinks that they may
it prothe interests of producers in the home
market, whom
poses

themselves

to

times

is afraid that

and

protect. We

restrained

producers but

the

also

they

may

shall find that

flow

consumers

of

to

commerce

and

governments

even

the

protect

in
not

merchants

earlier

only
selves;
them-

regulationswere
imposed, of such variety and
in
such strictness,
that they made
a
very important element
the commercial
life of peoples. The church as well as the state
interfered with the course
of exchange in the Middle Ages, and
and

that

GENERAL

CONDITIONS

to safeguard public morals

it necessary
restrictions which have since disappeared.

by

thought

Consider

1.

different

what

TOPICS

AND

QUESTIONS

articles of your

some

the

sources

and

materials

how

the

many

clothing;try
gathered by

were

finished

to

ascertain

the

from
for

merchant

reached

the

product
you.
article
an
o
r
or
knife,
lead-pencil pocket
What
countries were
drawn
of furniture.
to supply the food and
upon
The
of a dinner, Outlook,
of
table?
breakfast
cost
setting
[Compare
your
March
to the Study of
13, 1897, quoted in Clow's Introduction
the

manufacturer,

like for

Silver,Burdett

Commerce,
What

2.

to the

Within

Ice

what
in

of 100?

given

was

times.

Are
be

to

seems

Co., 193-194.]
you

Within
as

radius

radius

without

do

to
a

wares

supply
of your

were

home?

of 1,000?

exception,verifyit by

an

if your

of 10 miles

example of a ware
subject to such

an

all

have
within

things produced

radius

different

"

articles would

limited

3.

implement,

common

Do

which

varies

variation?

greatly at
find

[If you

the wholesale

pricesquoted

newspapers.]
4.

What

5.

Can

is the

detect

you

people in making
What

6.

has

With

trade?

of

use

wheat

between

difference

any

and

speculators?
city people and country

bargain?
been

what

grainelevators

the

attitude

have

wares

of the

traders

Arrange the followingarticles

i.e.,according to the distance

had

American

North
to

tempt

Indians

to

them?

degree of their transportability,

be
carried with
they may
profit:raw
gold,
wheat,
cotton, coal, potatoes, silver,building stone,
cotton
cloth, diamonds, hay, coffee,salt, silk ribbons, copper.
[The
in
the
of these wares
is given
newspaper.]
priceper pound of many
for lack of good
8. Give
instance of articles wasting, unused
an
7.

wagon-roads;
In

9.
some

for lack

what

10.

regions

has

What

effect

11.

In what

12.

To

to submit

what
who

did

piracy persistedto

or

junk trading and

[See reference in

which

of railroads.

descriptionof Borneo

of Chinese

in the

of the

Chinese

the

Civil

recent

times?

PhilippineIslands,or
life.]

[Read

description

river
War

have

on

American

commerce?

chap. 51.]
regionsof the world is land trade stillunsafe?
American
merchant
if any,
does an
restrictions,

desires to trade

in

one

of the

followingwares:

have

cigars,
gunpowder,

whisky, lottery tickets, imported iron, cigarettes,improper

literature?
13.

Government

restrictions

now

are

due

usually to

one

of

three

COMMERCE

OF

HISTORY

(2) protectionof other producers,(3)

objects:(1) collectionof revenue,
and the public. Classifythe wares
above
protectionof the consumer
accordingto the object of the legislation.
of trade,96-137, on
the close relations
14. Read
Bourne, Romance
and commerce.
of politics

recommended

warmly
noteworthy
particularly
are

references
are

are

are

of the

by

by
two

followingchapters

an

was

asterisks.

In

all

sold before

the war,

to listcurrent

are

the

and

are

involved

as

that

cases

pricesgiven

indication of the relative expense

giving some
the purchase of the books; priceshave changed so much

retained

books

asterisk,titlesthat

available in English. The

the book

those at which

cases

marked

marked

restricted to books

are

in most

of most

suggestedfor further reading and study; titles of

titles of books
that

will find at the end

reader

The

during

in
and

impracticable.
war
an
attempt
BIBLIOGRAPHY.
The best available bibliographyof English books
iS'Sonnenschein's Bibliography of social and
the history of commerce
on
London, 1897, reprintedfrom The Best Books and The
political
economy,
after the

pricesappears

""

information will be found also

bibliographical
in Palgrave'sDictionary,
and in the Subject Index of the British Museum
Library,which has been publishedat brief intervals since 1902, and which
Reader's

Guide.

lists all the

Useful

added

books

new

to

the Library. The

American

Economic

which has devoted

quarterlypublication
attention to the bibliography of economic
subjects,and which
particular
of new
should be consulted for the announcement
books, the summary
of articles in periodicals,
and the appreciationof important works
in
book
reviews. The American
Library Association Catalogue, which has
in
various
information about
appeared
editions,
givesfull bibliographical
popular books which are on sale in the American market.
In default of a general bibliographythe student must
refer to books
conditions in England. The most complete and scholarlybibliogdescribing
raphy
is that given by Cunningham, in appendixes to his Growth, etc.

Review,

established in 1911, is

References which
Social England.

to most

Both

students will be

these

sources

cover

given in Train's
teenth
the whole period,into the nine-

more

useful

are

century. For the medieval periodthe generalstudent has a bibliography

to perfectionby Charles
approaching near
Gross, Sources and
literature of English history,
London
and N. Y., 1900, and the student
of the

historyof

will find many

of English mediaeval
economic

London,
which
be

1914.

has been

commerce

A revision of C. K.

undertaken

of great value

when

references

history,edited by

Adams, Manual

by the American

completed.

in the Select bibliography

of

Hall,
historical literature,
Hubert

Historical Association

will

the

history

the

teacher

of

and
economic

English

countries
treats

the

Many

of

advantage
only
*

teacher

England;
from

the

of

"elaborate

atlases

William

look

must

of
The

;and

the

"teacher
In

which
Is

R.

the

to

of

maps

the

serve

McNally

briefly,

be

used

to

The

commerce.

is

here

Traill's

the

cover

extra

ordinary

found

be

historical

will

find

history

N.

his

more

purposes.

revised
with

provided

for

the

Holt,

Y.,
is

atlas

that

for

expense

ed.

full

needs.

Publishing

will

portant
im-

more

can

writers

material,

McKinley

Co.,

rate
sepa-

bibliographies.

mention

Atlas,

economic

the

the

periods

of

general

commerce.

all

England

He

**Historical

will

and

Rand

(Philadelphia),

Company
for

valuable

the

use

both

class.

many

cases

a
**

Longmans'

indispensable

worth

considerable

places,

should

hardly

Shepherd,

outline

and

history

and

Ogg

1885.

to

of

are

includes

1921,
index

atlas.

the

extensive

history

"

studying

in

help

also

has

A.

deserves

1917,

earlier

various

on

Warner,

Frederic

but

special
by

times

student

The

Europe

contributed

earliest

and

receive

can

chapters

commerce

MAPS.

or

which

however,

of

student

Y.,

the

covers

fully,

histories

general

the

it

century

others.

N.

England,

only

provided,

manuals

MacArthur,

and

Europe,

not

Continent;

the

nineteenth
the

modern

of

is

work

smaller

and

Usher,

1920),

embraces

on

by

work,

Social

"of

edition,

it

since

the

neglect

to

Cunningham

by

development

mention

ibut

can

(revised

Economic

afford

history

Cheyney

Price,
*

student

large

Cunningham's

If

proper.

commerce

COMMERCE

OF

HISTORY

be

in
for

the

modern

atlas

School

atlas,

hands

reference

of

every

purposes.

is
N.

desirable

more

Y.,

is

1901,

student,

and

than

an

the

historical

admirable

Century

work,
**

Atlas

of

II

CHAPTER
PERIOD

ORIENTAL

Prehistoric

6.
commerce

civilized
in

lost

are

trade;

we

present

day,

finding

among

and

and

period,

the

the

this

who

had

records

from

which

Three

Egyptians.
the

when

attained
modern

scholars,

more.

of

products

Their

country,

miles

long,

different

and

parts

exchange

commerce

the

peoples,

traced

for

direct

strip

to

the

was

this

early period,

of

before

arts

of

even

were

not

to

miles

growth
a

of

made.

Such

and

little

foreign

hindrance,

left

people

had

the

the

time

already

opinion

thousands

of

commercial

though

so

people.
oped
devel-

they

than

inducement

used

than

trade.

hundred

alike

by

in -its

internal

to

The

commerce.

rather

for

five

much

of

years

efficiency they

over

us

the

were

at

the

history.

time,

its isolation

while

with

have

Christ,

valley
was

prehistoric

their

rather

wide,

offered

and

begin

in

and

great

Nile

the

distances;

was

back

consumption

few
it

great

over

bar

industrial

that

point

agriculture,

the

in

civilization, which,

was

but

of

built, this

were

be

can

idea

the

at

past, from

the

to

writing

engage

ornaments
were

some

years

the

must

of

art

gain

thousand

resource

some

the

early

Egyptians, however,

main

Their

belong

can

developed

The

are,

pyramids

great
a

they

these

among

man

they

they
tribes

of

true

where

acquired

sufficiently

doings

places

of

we

it held

origins of

are

savage

primitive

of

as

sketch

among

that

traces

from

peoples

First

know

we

interesting

evidences,

this

The

"

people

their

of

records

observe

Egypt.

Before

obscurity.

written

can

far

weapons

in

leave

to

Ancient

commerce.

deserts
sea,

in

help,

to

communication.
7.

Rise

of

Egyptian

commerce

;
9

characteristic

wares.

"

10

Egypt

became

never

New

communication

Regular

brought
the

Red
"

brethren
with

carry

as

of

Sea

With

rulers.

so

the

Egypt;

wine, and
linen,and

late

the

eyes

of Ishmaelites

others

Among

here

named

mained
reas

vans
Asia, and caraPhoenicia,Syria,

of

Joseph

period trade

was

his

Gilead

and

myrrh, going
Joseph was sold

characteristic

imports
precious woods, ivory, gold,

were

wares

and

from

came

were

the exports of the country

manufactured

to

Before

company

wares

among

oil.

with

bearingspiceryand balm
to Egypt"; to this caravan

it down
The

established

was

district.

behold, a

slave.

Even

long as it
period known

country

country the products of

to the

their camels

to

commercial

merce
Empire, however, beginning about 1600 B.C., comleast became
more
important than it had been before.

at

and

COMMERCE

OF

its native

under

the

HISTORY

grain,

were

rings,and chains.
by barter,the use
the imports came
as
tribute,

like weapons,
carried on

of coins

of
being rare, and many
for which
the Egyptians needed to make
return.
no
in a later period.
8. Development of Egyptian commerce
turies
Only in the last period of Egyptian independence, a few cenbefore the country was
conquered by Alexander, did
bind it closely to other
commerce
portions of the ancient
"

world.

The

trade,

permitted and

now

in considerable

came

sprang

about

600

discouraged
formerly had
encouraged it; Greek merchants

which

government,

up.

to

Egypt;

and

It is said that

Necho,

the

B.C., sent

numbers

Phoenician

out

up

with

sand, but

was

distinctlytraced, it

king

sailors to

circumnavigationof Africa; and the same

work
of cuttinga canal across
the isthmus
The
canal
completed shortly afterward.

active

an

ruled

who

attempt

king took
of Suez
was

merce
com-

up

which

the
the
was

to fill

allowed

be
reopened later,and its course
may
of the modern
is said, along the route

canal.
9.

Rise

of

commerce

district northwest

valleysof

the

of the

Tigris and

Mesopotamian Valley. The

Persian Gulf, centering in the river

in the

"

Euphrates, offered opportunitiesfor

the rise of civilization which

led to the establishment

of settled

ORIENTAL

governments while
of the

rest

and

Egypt

world.

This

but

lacked

the

other

of the

raw

in

bordered

11

PERIOD

still

was

district

industry. Though
with

part by deserts,communication

far easier than

in the

the

agriculturalproducts,
building materials,

of the
of

from

rich in

was

metals, some
materials

livingsecluded

it

was

other districts

with
Egypt; and commerce
other
countries
early acquired an
importance here which
attained
Egyptian commerce
only in the last period of the
country'shistory. Ancient Babylon, which rose to importance
time
after 3000
Semitic
some
a
people (with a
B.C., under
a
market-place for
language akin to that of the Jews), was
wares
brought not only from the South (Arabia) and West
was

(Syria),but
tablets,used

also from

of

case

East

the

(Iran,the

later

Persia). Clay
like modern
of records,
paper for the preservation
have
been
and
discovered
times, and
deciphered in modern
show
active
trade in the precious metals, grain, wool,
an
buildingmaterials,etc.
10. Development
of
under
the Assyrian and
commerce
Persian
the
mercial
comempires.
Military expeditions extended
relations of the people of this district;
and
the conquests
of an
a
Assyrian, who founded
great empire about
745 B.C., were
considerations.
guided in part by commercial
Babylon, Armenia, Syria, and parts of Iran and Palestine,
were
brought under one rule; peoples on the frontiers were
held in check, and
order was
within;
fairlywell maintained
"

so

that

merchants

empire, and
wares.

The

fell

by the

taken

could

traverse

the

different parts of the

its

capital,Nineveh,
made
Assyrian empire was
by
meet

at

sword

after

The
two

hundred

330

B.C., included

Europe;
the Indus

an

it stretched
on

the

Gulf to the Black

until
area

from

East, from
and

than

the
the

full power

half

Mediterranean
Indian

Caspian seas.

its

Ocean
Within

by

to grow.

for about

Alexander

that
on

and
these

it

place was

continued

its destruction
more

their

the sword, and

brief duration; but

by succeeding states,and commerce

Persian empire, which
enjoyed its
years,

exchange

to

of

in

modern

the West

to

the Persian

boundaries

12

of which

could

protectionof the Great King.

of the commerce
Relative insignificance

11.

The

empires.
to

have

we

positionof

however

great it may

beginnings. It
untouched

depended
Jews

when

seem

have

been

we

such

Oriental

we

it with

compare
of

needs

look

further.

never

the national

positionof the mass

Orient a people whose

must

the

In

"

ancient

considered, commerce

mainly the

economic

trade

of the

importance in

decisive

in the ancient
on

Phoenicians.

hitherto

served

the

seek

we

The

Jews.

which

states

If

now

the

under

grew

regionsof the^ncient world, the products

be exchanged without
passingfrom

of the richest

lay some

life,

its meager

luxury, and left

of the people.
existence

very

"We do not

find the

people,though we are accustomed

nowadays to think of them as devoted
largelyto the pursuit
The descriptions
of the Bible show
that they lived
of trade.
to the time
life;and down
mainly a pastoraland agricultural
of the Roman
for little in the world
of
Empire they counted
A truly commercial
commerce.
people we do find,however,
in
a

to

neighbors of the Jews,

near

strip of land
miles wide

ten

denied

timber

little

scanty food

in abundance

the

peoplesfor

of

Phoenicians,who inhabited
Syria and Palestine,scarcely

placesand

gain

from

the

the

of

hundred

supply
on

interior,but
means

over

the

had

growth

from

miles

the

mountains
to

look

which

level
that

to

trade

their home

them.

12.
trade.

the coast

in most

had

separated them
other

on

could

long. They
ground, and
with

"

Commerce
From
from

of
raw

the

Phrenicians.

materials

which

were

Beginnings
in many

of

cases

sea-

cured
pro-

products which
they manufactured
found
market
Their cloths
a
throughout the ancient world.
and
of
celebrated;they exported large amounts
glass were
metal
and they had a monopoly of the purple dye extracted
ware;
from
which
a
was
species of shell-fish,
highly prized
but a few of those
were
throughout this period. These wares
in which
they regularlytraded; the reader who would have a
more

other countries

detailed account

of the

wares

of Phoenician

commerce,

14

HISTORY

COMMERCE

OF

Cyprus and Spain, also silver and iron in Spain,

the
and gold and ivory in Africa.
They carried westward
words
of the Orient (cf.our
cinnamon, cassia,hyssop,
wares
Hebrew
all from
forms), and manufactures,
cumin, manna,

got copper

in

which

the momentary
only gratified

not

but served

also

of

Establishment

14.

are

and

greatest merchants

thage.
Carby the Phoenicians.
noteworthy not only as the
first navigators of the ancient

the

the leaders also in

world; they were
At points important for commercial
established

with

the natives

(themodern
point from

and

to

which

the

enabled
control

of the

founding of
naval

or

them

the

in the

North,

and

Gades,
Gibraltar,was

sea.

Similar

Mediterranean

far down
stations

colonies.

they
security

reasons

trade

to

Carthaginiansextended

the South.

on

the

the straits of

Cadiz),near

the tin islands

of Africa

which

stations

Europeans

colonies

Phoenicians

The

"

of

for imitation.

models

as

needs

in

for instance
a

rallying-

their voyages

the Atlantic

coast

established

were

to

on

islands

(Malta, Sicily,Sardinia,
of Africa,
founded
the north
coast
on
Balearics);and one
Carthage (near the site of modern
Tunis), grew to especial
of the Phoenicians
importance. The power
declined, a few
many

centuries

after 1000

sions
of internal dissenpartly by reason
and the attacks of land-powers like Assyria,partly by
of the commercial
reason
rivalryof the Greeks, who had risen
to an
independentpositionand cut the lines of communication
between
East and West.
In this period Carthage fell heir to
the Phoenician
establishments
in the western
Mediterranean,

and

B.C.,

maintained

its power
and policyon
substantiallysimilar
lines until it received its great defeats at the hands of Rome.
QUESTIONS
1.

What

evidences

arrow-heads, wampum,

of

AND

TOPICS

prehistoriccommerce

Indian

ornaments,

are

given by Indian

relics of the

mound-

strip-formof Egypt?

[See

or

the

builders?
2.

map

What

modern

of South
3. Are

countries

have

the

America.]

there

any

modern

countries like Egypt

in the

uniformity of

ORIENTAL

products,diminishing the

and

their conditions

[Study,for example,
Are

4.

any

What

it

can

carried

was

map

by

on

to

as

barriers

Write

7.
to that

an

country
What

8.

ancient

empires of
Can

9.

the

less
an

the

deserts

conditions

of

commerce?
and

the

[See
cataracts

Egypt, from references

East?

world

What

fillthe space occupiedby the

do they carry
on?
[See

commerce

why

reasons

any

the

on

essay

economic

Bible.

the

the

of these

commerce

in ancient

regions

times?

conditions

Babylon,
subject-indexof

in the

[See Babylon,

later

of

Bible.]

Write

an

of the
12.

Egyptian

atlas,noting

important than

in
descriptions

11

the fact that

of merchants?

obstructed

of the modern

suggest

you

Write

the Oxford

from

Year-Book.]
much

now

10.

trade

Bible.

countries

Statesman's

seems

in the

securityof

the economic

on

essay

the

bands

caravans,

physical
Longmans' School
Nile.]

of the

from

infer

you

of

33

trade?

Alaska, Nevada, or Australia.]

Egypt still characteristic wares
Statesman's
Year-Book, index under words

the

What

6.

to internal

in

conditions

the

5.

stimulus

of the exports of ancient

country? [See
commerce.]
Egypt,

of

15

PERIOD

essay

the economic

on

life of the Jews

from

the

tions
descrip-

Bible.

Write

similar

on

essay

Phoenicians.

the

[See

Sidon

and

Tyre

in the

subject-index.]
of conditions
in Phoenicia and
in Norway,
Show
the similiarity
forcingthe inhabitants of both countries to the sea.
[Study the physical
in a geography, and
the history of the
characteristics of Norway
note
and
Vikings, and the importance of commerce
navigation in modern
Norway.]
14. Write
a
paedia
report, from information to be got from the Encyclo13.

Britannica,on
(a) The commerce
index

one

(6) The
vol. 10, p.

"

manufactures

and

in the last volume

followingsubjects:

of the

of the ninth
and

manufacture

trade

of the

edit'on,under
in

glassin

[See the
Phoenicians.]
world.
ancient
[See

Phoenicians.

the

647.]

(c) The

Phoenician

purple. [See

the

references

under

the

word

Purple,vol. 20, p. 116, and the index.]

(d) Early navigation. [See the index.]
15.

Wares

of Phoenician

[Bible,Ezekiel, chap. 27.]

commerce.

BIBLIOGRAPHY
ANCIENT

development

COMMERCE.
of the

"

ancient

The
world

best
is

available

survey

Cunningham's

**

of

the

Western

economic

civ"liza-

16

economic

its

in

tion

of

to

made

be

their

an

of

the

manual

Baltimore,

provided

in

by

Roman

vols.,

The

$6.

default

of

can

and

be
is

the
historical

scattered

maps

atlas.

recommended

provided

for
with

an

use

in
index.

of

Provinces

of

little

of

Greece,
Alfred

Oxford,

is

1915,
in

factors

it

from

of

the

Perthes'

Athens

ancient

of

works,

Atlas

history;

N.

give

Y.,

distorted

capital.

history

special

of

provinces

the

Empire,

Roman

now

history

in

histories
the

has

economic

conditions

the

student

the
An

Roman

current

through

Justus

**

account

atlas

an

"

ordinary

ed.,

world

Frank,

viewing

by

commerce

In

seek

conquests

reading.

political

Roman

Tenney

Mommsen's

1887,

the

detailed

1920.

by

MAPS.
must

revised
and

down

History

general

it

vols.;

unfortunately,
*

for

lation
trans-

Alexander's

Myers,

manual

economic

development

good

of

V.

P.

having

Mediterranean

give,

N.

in

ing
interest-

century.

economic

Scribner,

Mahaffy,

is

1894,

the

on

Commonwealth,

of

account

fifth

Rome,

Greek

The

interesting

On

idea

**

in
books

convenient

also

Y.)

throughout.

1894,

Macmillan,

Y.,

(N.

reading

London,

commerce

and

Cambridge

parallel

fortunate
N.

popular

affairs.

times,

Egypt,
are

of

Wheeler

is

for

ancient

history

used

Greece,

The

by

1895,

Zimmern,

the

as

Ancient

English

of

economic

Ginn,

available

is

serve

in

of

century.

to

Boston,

Life

History

results,

attention

E.

to

second

the

and

Holm's

be

COMMERCE

1,

vol.

may

Readers

reliable.

and

may

this

Erman,

Adolf

Egypt,

OF

aspects,

1898;

Macmillan,
On

HISTORY

or

antiquus
it

is

students

commerce

admirably

rely

an

upon

(about

$.75)

executed,

III

CHAPTER
PERIOD

GREEK

15.

the

of
us

to

the

Greeks
who

people

The

that

the

of

of

State

New

it is said, presents
The

than

that

the

coast, and

does

observer

an

another

island,

regular.

the

perils due

but

in

found
the
16.

be

hard

Greeks,

not

was,

could

of Greek

conceive

than

existed

we

and

first get

of

an

surplus

over,
more-

of

or

are

of vast

Greeks

finding the

which

sea,

sailors

so

from

from

perils of the

not

miles

winds

support

longer

mainland

are

when

to

is

very

tance
impor-

faced

real

imagination
inhabited

them
poor

as

without
to

force

of

means

of oil and

sistence.
sub-

wine,

products, especially grain and,

wares.

Colonies.

commerce.

under

the

the

in

manufactured

better

world

Greek

these

as

easily produce

half

richly

most

few

of the

season

hand,

deficiency of other

an

than

coast

the

either

enough

ingenuity

of

has

more

the

the

on

home

other

in

than

navigation,

At

little

In

such

rich
the

on

to

when

of

Greece

little country

more

good

greater.

early period,
Rise

the

inexperience,

all their

use

is

merchants

islands,bays, peninsulas,

island.

an

of

tion
men-

introduces

is, however,

this

plain sight

in

was

They
but

see

leading

part

many

of

The

"

chapter

country

points

conditions

even

which

to

few

and

their

to

exertion,
them

are

early days

were

country

point

is in

Favoring

in

which

No

not

island

every

so

line

there

the

Maine,

no

coast

of Spain.

last

It

and

equal

harbors.

of

York.

geographically,

and

the

time,

State

diversified
area,

of

products.

peninsular

of the

that

less than

for

were,

Mediterranean.

area

close

the

at

and

character

physical

Greece,

nursery

the

for

conditions

knowledge
17

of

"

the
here

them,

Though

it would

growth

of

merce
com-

described,
about

1000

the
B.C.,

18

yet ready

not

were

There

was

hands

of the

took

and

timber

the

hundred

prominence,
colonial

years,

and

the coast

fringeon

opportunities.

it lay

entirelyin

utensils

and

the

cloth and

Little by littlethe Greeks

rose

and

gained the place formerly

strikingfeature of this revolution
which

movement,

ended

settled throughout the

as

brought

metals.

Greek

of their

it is true, but

held by the Phoenicians.

was

COMMERCE

advantage

Phoenicians,who

commercial

to

take

to

commerce,

some

away

OF

HISTORY

about

covered

Greek

600

B.C.

and

established

^Egean

Sea

of Asia

Minor

and

about

five

some

emigrants
themselves

the Black

Sea;

they chose by preferencethe shores of southern

colonies as far as Malaga in
Italy and Sicily,but founded
modern
the
center
on
Spain, and created a great commercial

in the West

site of

Marseilles.

modern

intercourse

with

merchants

ousted

position. The

the

The

mother

the

colonies

country, and

Phoenicians

Greeks

kept

from

Greek
their

active

an

up

sailors

and

commanding

home

for
began to produce wares
not
the colonists but
only among
export, seeking customers
from their
in other markets
also;they emancipated themselves
former
dependence on Oriental manufactures, and developed
the clay,bronze, and woolen industries to a point not dreamed
at

of before.
17.

which

in the fifth

Rapid development
be

may

termed

the

was

The
the

power

the

western

in
was,
most

the

first of

of the Greek

Greek

colonies

Greek

colonies

cities in

kings

in

commercial
about

500

in the East ; at the

same

this,
merce,
com-

Asia;

portance
im-

broke
time

portance
colonies,especiallySyracuse, grew rapidly in imand
forced Carthage to recognize their supremacy

northern'

however,

Mediterranean.

that

was

followed

but

in

The

part of the Greek

strikinggains.

for two

the

the

of the Persian

advance

In

"

preparatory period of Greek

the

the leadershiprested with

Miletos

century, B.C.

The

successful

world

country

which

resistance

showed

to the

itself
the

Persians

development not only in politics

took
as
well, and Greece now
positionwhich England occupies in the

by a remarkable
industry and commerce
centuries the

mother

GREEK

19

PERIOD

"

The

world.

modern

little island

of

^Egina (near Athens),

supporting to-day but 6,000 inhabitants,
rocky and sterile,
for a time the most
became
important market of the Greek
fabulous riches by a commerce
world; it amassed
penetrating
artificial harbor and a strong war
all seas, aided by an
navy.
Another
city, destined to a longer career,
great commercial
of trade with
the natural medium
was
Corinth; this city was
the western
not only because it offered an opportunity
colonies,
without
to reach them
rounding the dreaded promontory of
of the leading
the southern
tip of Greece, but also because some
colonies of the West
Corinthian
were
or
closelyallied to the
Corinthians.
of Athens

leadership. Exports. The city of

Athens, which had developed rapidly in the century preceding
the Persian
to the first place among
the Greek
rose
wars,
cities in the century in which
they occurred (500-400 B.C.).
The
Athenians
broke
of ^Egina in armed
the power
conflict,
Rise

18.

and

to

appropriated its
the

Pirseus, became

world, and remained

300). Readers must
of Greece

built up

its

when

its war-navy

broken

up, it

of the

^Egean

was

and

until the

be referred
an

to

of the

account

Greek

period (about

Macedonian
one

sea-port, the

port of the

leading commercial

of the
way

narrative

in which

tories
his-

Athens

in the

with the South

commerce

Athenian

^Egean Sea, and for the story of the

Even in times of defeat,
its political
power.
scattered and its leaguesand alliances
was
still able to control a large part of the trade
Black
an
important
seas, and maintained

empire
of

the

commerce;

so

for

varied fortunes

"

and

West.

The

favorable

situation

navigators and
business men,
enabled it to conduct a large carrying trade for
of the exports were
other peoples, and many
foreignwares
of the

city,and

the

abilityand

energy

of its

merely transshipped in the Piraeus. Of native

the city,
it exported silver and coin,from the mines near
wares
natural
some
products (oil,figs,honey, wool, marble) of
manufactured
comparatively slightimportance, and especially

which

were

wares,

of which

pottery

was

the chief.

20

Athenian

19.

wheat,

Athens

cityhad

grown

country
Athens

unable

was

the

was

policy. The chief import was

then as dependent as England is
was
so great by trade that the surrounding

to

The

north

of

mainland

wheat

the

to

also from

North.

Sea, and

Black

the

Sicily,Egypt, Syria,
the

Among

other

articles of

manufacturers, and

for the Athenian

breadth

of

great granary

of the Athenian

trade

is

in

are

luxury. The
of

the statement

picturedin

delicacies there

contemporary: "What

imports
materials

materials,salt fish,slaves,raw
ship-building

were

it.

support

extraordinaryefforts to control the narrow

Black
their food
Sea, that they might assure
this source,
not
were
entirely dependent on

the

to

the

"

level country

supply. They
however, and imported
and

and

made

the Athenians
entrance

COMMERCE

OF

imports

which

on

the

now;

HISTORY

or
Sicily,

Lower

Italy,or Cyprus, or Egypt, or Lydia, or on the Pontus, or in

Peloponnesus, or anywhere else,they all are brought to Athens
by her control of the sea."
The
an

the

especiallyto

eye

duties

policy of the Athenians

commercial

levied

were

in the modern

interests of

low, and

were

The

sense.

had

no

export of

on

the home
withheld

20.

Macedonian
narrative
came

nothing like

in the commercial
Contrast

over

and
we

are

the

of

the

ancient

Roman

hope of
advantages were

now

It may
conquer
rules them
as

modern

and
"

world.

the

hold

them

for

foreignterritory,with
as
great empires crumble
readily as

time, it

the

earlier

Each

civilization and
losses with

are

one

clines,
de-

then

other

states.

is true, but

alien interests;and

they

our

great change

strikingfeature.
in

of

course

isolation of

The

sharing its gains and

and

In

effect of

world;

approachinga point when

ancient

be

protectionismcan
period.

modern

conquests.

of

without

leaningto "protection"
desired
articles especially

policy of this

antiquity is their most

lives only unto
itself. It rises

states

What

consumer.

supply, and commercial

with the idea of exercising
political
pressure

other states; but

found

the

with

restricted in the

(wheat, ship-building
materials)was

keeping up
granted or

framed

was

made.

it
the

Thia

22

countries

great

which

OF

COMMERCE

populous, and closer to the

Corinth
the only city which
was

richer,more

were

of

currents

HISTORY

trade.

and extend its trade.

Athens
declined
managed to maintain
importance; and grass grew and cows
rapidly in commercial
had once
which
were
pastured in the streets of other towns
been important markets.
Some
indication of the develop22. Rise of great cities.
ment
of commerce,
and of the rearrangement of its important
centers, can be got from a study of the great cities of the ancient
world.
Before the time of Alexander
there were
only three
cities of the Mediterranean
with a populationof over
100,000,
of these had a population
Syracuse, Athens, Carthage; none
far above
that figure. About
than a
200 B.C., scarcely more
four cities with a populationover
century afterward,there were
200,000, Alexandria,Seleukia,Antioch, Carthage; one city with
a
population far above 100,000, Syracuse; and of cities with a
population about 100,000 there were
Corinth, Rome, Rhodes,
of these
of some
Ephesos, and possibly others. The names
cities are
already familiar to us.
Carthage was
enjoying its
"

last century of commercial

of its influence in the

Rome

greatness, before

northern

Mediterranean.

robbed

it

Syracuse was

the chief Greek

colony of the West, destined also to fall under

the Roman
however,
just before 200. Other names,
power
of great importance
to history,
are
entirelynew
or first became
at this time, and the best idea of the commerce
of the period
be got by considering
the reasons
can
for their greatness.

Alexandria, Seleukia,

23.

suggests,

name

It

situated

was

sea,

near

double

the

founded

was
on

most

Antioch.

by

the

Alexandria,

"

Macedonian

tongue of land between

western

of the

mouths

as

its

conqueror.

lagoon

of the Nile.

and

the

It had

harbor, formed

by the island Pharos, which has given

the name
for lighthousein some
of the modern
languages
celebrated light(French, phare, Italian,fdro),as the most
house
of antiquity was
furnished
Alexandria
erected there.
the only good harbor
for largevessels on the coast of Egypt;
a

it had

access

to the

Nile, tapping one

of the great

granariesof

PERIOD

GREEK

connected

antiquity,and
that

the

from

ran

and

to

Lakes.

had

the world

rich

plain at

Gulf

and

importance

inner

points where the

Persian
highlands met

at the focus

was

Asia

carried

was

two

came

the Mediterranean,
and

the

the

cities,

later than

place

of

in

situated

was

from

the

the
a

Persian

their way
westward.
which the trade with

on

by

Situated

other

even

routes

of the routes
on.

the

known.

the

the

at

was

reached

the far East

founded
Antioch, which were
Alexandria.
Seleukia, on the Tigris,took
earlier Babylon and the later Bagdad; it

Antioch

It.

and

Seleukia

the canal

through

by right the greatest market

it in size and

to

Sea

Bitter

the

from

it became

largestcity that

the Red

with

the sea-route

point where

Next

Nile

23

at

point where

the

Euphrates approaches to within a few days' march of the coast,

of
offers the best means
and where
the valley of the Orontes
reaching the sea from the interior,it had the full benefit of
the

revival

of eastern

of Alexander

and

Rhodes.

24.

the

conquests

enlightenedrule of his successors.

Only one other city,Rhodes, deserves

the

"

attention,and
also

followed

which

commerce

this

because

not

of its size alone

pecial
es-

but

commercial
a
city. The
specifically
little island could offer but scanty products to commerce,
but
gators
it enjoyed an
exceptionally favorable position,where navifrom
Egypt and Syria, avoiding the dangers of the
open

because

was

would

sea,

followed

"t

so

put in for shelter and

to

trade.

Rhodes

far-sightedforeign policy,guided by the idea of

securingthe greatest freedom of trade; it policed the seas and
cantile
repressedpiracy with vigor; and established a code of mera

law

which

celebrated

was

as

model

and

which

invited

skilful navigators,
The Rhodians
were
dealingsin its market.
and
association
to a
developed the principlesof commercial
for wonder, therefore,
point of high efficiency.It is little cause
that

flowed

commerce

Mediterranean
merchants
and

and

sent

that

their

even
sons

hither

from

from

all

the

Black

there to learn

great riches

were

parts of the
the

Sea; that
conduct

accumulated,

eastern

foreign
of

of which

merce;
comone

24

evidence
about

furnished

was

the

HISTORY

OF

the

by

Take

city.

the

Prove

good

AND

off

measure

125

feet

the

show

TOPICS

text, regarding the

the scale 25

on

visible

are

clear),and

air very

in

statement

map,

hills of about
the

colossi,giganticstatues,

many

QUESTIONS
1.

COMMERCE

by

(the Greek
what

Greek

miles,the distance
islands

islands.
at which

mountainous

are

timid
stepping-stones

and

sailors could

advance.
2.

Study

Greece

the

on

in

detail the

influence

their

people and

of the

physical characteristics of
history. [See Myers, chap. 1; Holm, vol.

1, chap. 2.]
3.

Write

4.

Write

the evidences

report on
[Holm, vol. 1, chap. 8.]
vol. 1,

[Holm,

Make

5.

report

the motives

influence

chap. 9.]
careful study

to

the

with
on

carried

early commerce
Greek

colonial

colonization,(6) the

extent

of Greek

mother-country,(d) the mode

commercial

the

Write

early civilization

of the

vol.

[Myers, chap. 5; Holm,

6.

the

on

of

report

and

noting,(a)

movement,

tions
colonies,(c) the relacolonies,(e)the

of life in the

history of the Greek

of Greece.

colonies of the

with

its contest

vol. 1,

Carthage. [Holm,
Syracuse
especially
N. Y., Putnam,
25 ; vol. 2, chap. 6, 29; Freeman, Story of Sicily,
the

Study

on

vol.

2,

map

esp.

modern

chap.
1892,

of the sea-power
or

subjectcities.

ing
empire of Athens, indicat[Myers, chaps. 15, 16; Holm,

and

chap. 17.]
Athenian

exports of this period with

[Statesman's Year-Book.]

Greece.
What

9.

growth

the allied

Contrast

8.

West,

"

$1.50.]
7.

trade.

by Phoenicians.

on

development of the different parts

1, chaps. 12, 13, 14, 21, 25.]

the

on

and

is the

of modern

Greece?

exports of

[Same.]

and the British empires,

essay comparing the Athenian
noting,(a) advantages of geographicalposition,(6) products of the home
and naval
stations,(d)
country, exports and imports, (c) naval power
members
of
the
home
to
commercial
of
the
policy
empire, (e)
policy
country.
[See Myers or Holm, and the chaptersin this book on England; compare
E. A. Freeman, Greater
Greece and Greater
Britain,London, 1886.]
11. Compare the imports of ancient and of modern
Greece.
man's
[States10.

12.

Write

leadingport

the

Year-Book.]
Make
a
chart, naming

from
antiquity,
column

the

an

at the

Egypt
left,and

on

horizontal

line the

leadingstates of

Rome, placingdates (3000, 1500, 1000, etc.)in a

indicatingchanges in the history cf each state in

to

appropriateplace in its column.

GREEK

Draw

13.

comparing
and

Myers,

if

the

Write

influence

Is

16.

the

(The

be

able

18.

D.

C.?

Is

suddenly,
20.

this

there

19.

to

to

be

got

Has

there
in

as

Write
in

commercial

the

in

maps

in

maps

the

size

of

in

change

grow

civilization

on

3,

chap.

esp.

after

Greece

the

suggested

it

out

27.]

the

donian
Mace-

of

currents

trade

as

What

of

the

period

commercial

of

is

cities

later

aid

of

commerce?
but

chapter,

the

dent
stu-

period

the

of

commerce

named

in

ton,
Washing-

section

this

which

commerce?
in

which

great

cities

risen

have

Alexander?

history

history,

beside

later
after

in

the

himself.]

something

any

without

up

is

one

to

been

history

Holm,

27;

exceptions?
any

Roman

vol.

decline

such

rarely

work

to

26,

conquests

4.]

question

this
a

[See

consult

Macedonian

25,

to

cities

there
its

the

Greece?

any

owed

and

conquests,

empires.

available

economic

vol.

of

great

Are

have

may

do

answer

should

on

decline

Why

17.

is

the

the

exposed

England

furthered

of

[Holm,

conquest.

atlas

chaps.

report

Alexander's

Oriental

edition.]

[Myers,

commerce.

15.

of

extent

earlier

historical

teacher's

Study

14.

with

good

no

the

showing

map

empire

Bible,

Oxford

and

the

25

PERIOD

in

or

of
the

in

Syracuse

Carthage

from

Roman

Write

Britannica.

Encyclopaedia
the

information

the

period,

from

the

same

sources.

21.

Write

cities, using
22.

discover

report
vol.

Holm,

Endeavor

its

to

population

the

on

4, and
trace

now,

the

the

and

commerce

history
the

gazetteer.
BIBLIOGRAPHY
See

chapter

ii.

one

of

the

encyclopedia.

later

using

of

civilization

of

one

encyclopedia

of

cities,

these
and

and'

geographical

to

IV

CHAPTER
PERIOD

ROMAN

The

26.

entering
no

the

Roman
the

on

time
world.

in the

last

the

over

and

Romans
centuries

two

subjected

become

is true,

size, it
the

commercial

These

the

to

trade
for

the

such

gave

to

received

such

rich

not

received
peace,

by
which

furnished

before

unknown.

study

suggested
regions

of

in

commerce

above,
which

of

into
the

They

for

in

commerce

.the
a

Roman

study

great

of

subject

earned

all

Roman
26

of

that

was

they

Roman

development

East.

resolves
in

commerce

state

peoples.

centuries, and

Roman

period

they

ment
govern-

Romana,"

commercial

the

the

political in

and

war

for

center

which

of

"pax

warding
for-

administrators

and

unbroken

almost

for
but

arts

labor

the

on

opportunity

an

the

contribution,

great

Development
of

in

siderable
con-

which

service

organizers

parasites.

continued

which

26.

living

mere

one

skill

and
the

city

economic

and

of

carrying
the

not

support

taxes

as

time, and

not

was

to

exports

no

The

their

greatest

by their
in

succeeded
were

the

made

people.
of

world

reward,

were

antiquity, and

They

the

of food

great

no

have

other

of

supplied

up

would

as

exchanges

character; they

built

and

Romans

of

Rome

did

unparalleled

to

grew

sway

noticed,

Rome

well,

however,

came,

her

been

rule
Even

people.

imports

imports

conquerors.

amount,

city

immense

required

to

extended

as

spend

came

already

West

The

need

which

Rome
have

the

center.

and

population.

tribute

of

"

we

city

In

city.

commercial

which

large part

the

when

B.C.,

countries

eastern

of

not

were

commercial

domination

history

earlier

The

not

Roman

of

period

the

over

; Rome

state

the

"

The

itself, as
different

composed.

In

ROMAN

the East
been

described;Alexandria

markets

for Oriental

China;

and

African

trade.

the lines which

developed on

commerce

and

Antioch

coming

wares,

Carthage

27

PERIOD

remained

have

great

India

from

even

and

for

outlet

important

an

to be

continued

now

already

the

Asia

Minor, northern Africa,and southeastern

Europe reached the very pinnacle of their historical development
in the Roman
since
period; these countries have never
attained
to anything like the prosperity they then
enjoyed.
We

shall not

of these
that

have

hereafter

time

regions in detail;the

merchants

had

the

reader

to

notice

may

take

struggledstrenuously to keep

reached, and

that decline

the

it for granted
the

place they
it did

slowly, when

came

commerce

come

later.
Our

attention

West.

It

Europe

arose,

form.

peoples

there that

was

Our

and

27.

there

of

the

West

the most
that

Backward

They

made

have

Indians, and

important

be

grew

Roman

of

sometimes

though

the

to

the

of modern

states

in its modern

what

progress

rule, and

how

the
far

them.
the

people of

far behind

were

mainly

up

know

to

under

condition

hereafter

commerce

developed among

peoples of the West

and

directed

chief interest must

had

commerce

be

must

been

the West.

"

in civilization.

those of the East

compared

comparison

to

The

the American

is inexact

in detail

easilymislead,it givesstill a rough indication of their

backwardness.
from the products of their
They lived more
flocks and herds than from agriculture,
when the Romans
came
in contact
with them; they had practically
no
towns, and no
may

considerable
The

trade.

five hundred

years

strikingchanges

(roughly) of

Roman

rule

made

provinces of the West

(modern Spain, France, England; not Germany
countries
or
farther east). It kept the people in order, and gave them an
opportunity to acquire the elements of a higher civilization.
some

The

fact that modern

remains
on

in the

Roman

Spanish and French are based

strikingtestimony to the Roman

always a
the provincials.

on

Latin

influence

28

Limited

28.

HISTORY

OF

COMMERCE

influence of Rome

of the West.

on

It is easy,

"

the

however,

results of this influence,especiallyso

progress.

Rome

gave

commercial

far

ment
develop-

overestimate

to

the

regardseconomic

as

her subjectpeoples of the West

chance

had
development, but none
sought it and few
structed
conready to profitby it. The Roman
government
of their kind,
a
system of military roads, models

commercial

at
were

which

The

enabled

course

some

of the roads

fair

as

our

is uncertain,

different

according to the authority

road system
picture of the Roman

modern

railroad

provinces.

to

messengers

diminished

or

of

troops and

and

reach

the number

followed.
; it was,

The

would
map

The
purposes,

materials

Romans

of the

roads, however,
and

the

increased

gives, however,

evidently, not

settled in the

so

extensive

provincesas officials
was
acquiredby the

culture
privategentlemen, and Roman
wealthy provincials;cities and large landed
of industry and exchanged manufactured
centers
raw

be

system.

or

the

speedilythe

surrounding
seem

cities

and

to

estates

formed

products for

districts.

have

culture

mainly Roman
depended mainly on

served

30

HISTORY

COMMERCE

OF

QUESTIONS
Endeavor

1.

descriptions
the

following

and

few

produce
for

the

of

the

5.

Study

of

the
Ask

books

manuscript

did
for

the

the

of

people
and

people

conquered

from

of

[See

8, Asia

chap.

and

civilization

Empire.

Europe;

Rome

luxuries

provinces

can

of

of

be

commerce

Mommsen,
vol.

Minor;

one

Provinces,
2,

chap.

the

vol.

esp.

12,

Egypt;

the

West.

chap.

the

the

report

on

Gaul;

3,

civilization

this
in

commerce

the

4,

Roman

classes,
of

contrast

the

chap.

of

(Roman)

upper

would

of

one

Roman

provinces

of

chap.

Germany;
Britain,

and

the
have

classes

period?

5,

Britain.]

distinguishing

life

of

the

the

on

carefully
people.

common

and

extent

manuals

[Consult

[Vol.

ter
charac-

of

English

history.]
6.

Study

[Cunningham,
7.

in

some

Compare
modern

the

economic

West,
the

civ., vol!
fall

cities,

as

of

and

political

1,

170

p.

Rome

with

affecting

the

BIBLIOGRAPHY
See

1,

chap.

Provinces.]
similar

Spain;

effect

the

on

Roman

2,

life

tribute

and

taxes

report

African

chap.

What

wares

food

studying
histories.

beside

wares,

beside

by

text

Roman

importance,

great

no

the

current

import?

the

the

Write

4.

1,

they

7, Greek

chap.

What

them.

the

war-insurance.

Write

provinces

of

What

how

as

3.

13,

did

Show

regarded

commerce

of

export?

rich

2.

items

in

statements

in

questions

for

the

Roman

other

the

verify

to

of

TOPICS

AND

chapter

ii.

in

factors

ff.; Adams,
the

Civ.,
of

growth

prosperity

the

of

fall

chap.

political

commerce.

of

Rome.

4.]
corruption

PART

COMMERCE

MEDIEVAL

II."

CHAPTER

of

system
of

conditions

Political

government.

of

method

of

around
this

wish

We

different

will

find
of

means

the

officials who

in

province
in

are

and, if they fail

the
to

charge

in their

this

path, also, the

the

treasury

Part

army,

needs

the

etc.

of

province

of

to

these

officials

who

Part, however,

Bordeaux;
we

collected

taxes

shall

and
find

on

money

officials,appropriations

for

this

we

sent

road, furthermore,
by

the

central

be

go

take

live

be

must

the

in

road

and

government
31

An

observer

to

united

by

On

of

path.

By

will stream

to

same

the

maintaining

Paris,

at

capital, the

central

to

fulfil the

from

the

capital

its

from

complaints

used

the

Bordeaux;

expended

the

are

reports of the

the

in

be

wares,

find

of

canals, which

the

public works
shall

the

district

the

Bordeaux

will

of

government.

employed

taxes

modern

say

government

at

ditions
con-

France, for

are

duties, petitions and

Paris,

at

government.

support

and

capital
the

he

graphs
transportation, tele-

of

service

of

the

Bordeaux

and

the

peculiar

relations

corner.

private citizens, asking relief,will

to

the

and

Paris

of government

say

country,

communication

constantly employed
from

understand

southwest

that

the

country,

history

times, VvLich

illustrate

can

posts, railroads, highways

and

path

We

modern

the

system

modern

parts of the
the

in

studies

appreciate

can

to

other

to

Bordeaux,

country

faces

by taking

government

capital, Paris,

period

then.

commerce

example.

an

who

of

the

commerce;

reader

that

he

before

understand

must

from

different

entirely

The

"

1000

YEAR

affecting

medieval

in the

commerce

THE

ABOUT

CONDITIONS

30.

going

as

and

the

stream

of

local

local
to

the

salaries
like.

to

On

messages,

subordinates,

32

OF

HISTORY

COMMERCE

in their

directingthem

will answer
the
work; these messages
reports of officials and the petitionsand complaints of subjects.
methods
of govern31. Impossibilityof applying modern
ment
in the period after the fall of Rome.
The
system of
the system used in
government, thus roughly outlined,was
"

period when

the

of Rome
a

of

declined

it became

constantly more
obstacle

every

to

when

the power
difficult to maintain
the free passage

the hold of the government

weakened

wares

But

still strong.

was

system of the kind;

and

men

Rome

on

its

still
provinces. The roads grew worse, and while they were
passablethe danger of traversingthem increased,so that the
of maintaining this government
became
prohibitive.
expense
The reports from officials and the petitionsfrom subjectswere
delayed or lost;only a small part of the local taxes reached
the

treasury at the

side,found

32.

it had

central

government,

on

its

to pay
the bills
longer the means
and found
for salaries and publicworks in the provinces,
that
its commands
received there, or were
not
not
were
obeyed,
because
could no
the government
longer send officials and

troops

that

The

center.
no

to force obedience.

The

feudal

system ; rise and character.

The

"

time came,

the government
when
had to recognize publicly the
finally,
ent
change in conditions,and to adopt a system of quite a differIn substance
it told
the feudal system.
kind, known
as

the

man

no

longer

who

henceforth
have

before

pay

to it

and

been

the
as

salaried official that

he

of land

revenues

must

from

the

feudal

it could
himself

support
would

which

It maintained

taxes.

exacted

that

salaries,and

from

gone

had

still a

formerly

nominal

lords who

now

riority,
supe-

assumed

of government
certain payments for general
responsibility
and more
quently
freof money
public service,occasionallya sum
kind.
tically,
Pracpersonal service of a military or judicial
however, the state had splitinto little pieces; the

the

central
successor

and

government
of

an

had

lost the

and
official,

profitsof government

each

by

right even
was

his son,

to

succeeded
as

though

nominate

the

in the duties
he

had

been

33

petty king. It is impossibleto

state

accuratelythe

of this kind

that

existed in the different

of littlegovernments
of

countries

supposed to

have

varied

ment

only

not

but

by modern
the

in the

it

local

parts of the

in different

but

ofgovernconditions,

everywhere extremely

was

under

periodknown

century, it is

character

accordingto

course,

This

standards.

conditions

The

10,000.

in different countries

measured
survey

exceeded

greatly,of

country,

same

France, in the tenth

in

Europe;

the

which

will be

number

when

low

apparent

commerce

we

as

carried

was

on

Dark

Ages.
33. Difficulties and
dangers of transportation. Attempt
made
essential
the roads, which of course
to maintain
was
are
well as by land, by making the proprietors
to trade by sea
as
land they ran
through whose
responsiblefor their repair.
Many of the proprietorsmanaged to escape contribution,and
what
work
done was
was
largelywasted, through ignorance
as

"

and

lack

in later
were

so

of proper

superintendence.We

periods the roads were

bad that they seem

service to passengers
for wagon
The

than
was

merchant

from

bad

narrow

suffered

early time they

have
been
mere
tracks, of
horseback,but of littleuse

to

or

on

roads.

Government

too

was

centuries,of
from
afar,or
neither shout

blow

nor

or

Restrictions

dangers of

with

others,and

turn

robber

There

reason.

an

"If

early example
out

of the

horn; he

series

whole

continuing for

and

700

come

man

highway, and

is to be accounted

imposed

the

to insure

security.The

requireda merchant to
danger that a merchant

it necessary

for him

constantly to public supervision,and

3

is

he
a

then

thief,

to be redeemed."

travel

made

robbery

ignorant of everythingoutside
interests that they suspectedevery

stranger, go

either to be slain

The

this is

men

so

often with

which

that

weak

so

bad

from

however,

more,

English laws, beginning about

34.

even

in this

bad;

even

people were
sphere of local

stranger, and
of

foot

that

see

traffic.

common;

the

on

shall

to

to

go

market.

"

in company

would

himself

subject himself

get residents who

34

would

act

to

necessary

oath
Such

theft."

that

behavior.

above

man

every

he will neither

be

thief

would

general statute

In

England, even
government
thought

central

"that

law

COMMERCE

good

century, the

pass

make

of age
of

sureties for his

as

eleventh

in the

OF

HISTORY

twelve
nor

it

years

cognizant

surely be

of

little

use.

Many
which
have

if he

have

may

hampered
force

to

was

of

other statutes

helped
trade

to

man

appeared at

at

more

to

repress

the

with

home

time.

same

make

specificnature
robbery, but

his

The

purchases

new

wares

in

were

passed,

which

idea in

must

general

public,so

he could

that

get witnesses

Cattle formed
honestly by them.
a
large part of the personalproperty in early times, and as these
laws were
could readilybe stolen,many
the
passed restricting
included
in the restriction,
Other things were
trade in cattle.
became
more
however, as the need of protecting commerce
not
was
apparent. In England, in the tenth century, a man
allowed to buy or sell any
goods above the value of twenty
where
unless he did it within a town
a
public official
pence,
could legitimatethe bargain. In this practice
and
witnesses
the originof the market, a medieval
institution of
is found
to

prove

that

he

came

will be said later.

market

place appointed
by the government, where bargains could properly be made;
and only small exchanges of household
produce could be made
outside it,in the open
country.
Beginning in the need that
felt to prevent thievingit developed as a publicinstitution,
was
of
which
it profitableto extend
the people found
as
a
means
internal trade.
tolls and of regulating
collecting
of comthe minimum
35. Society organized to exist with
merce;
the medieval
village. The striking and important
not
feature in the life of European peoplesat this period was
the largeamount
of commerce
carried on, but the small amount.
The
organized on a system which enabled them
people were

which

more

was

"

to

support life with

being concentrated
often

called manors,

the

least

in towns,
one

possible. Instead

commerce

they were

of which

of

isolated in little groupsr

would

be

composed

often

ABOUT

CONDITIONS

of less than
mile
to

or

the

discuss

to remark

though it is proper
were
slaves, and
Russian

life
political

social and

that often

more

many

of these

little groups,
of the inhabitants

some

only half-free,like

were

nineteenth

serfs of the

the square
here
necessary

It is not

of land surrounding them.

so

35

1000

got their livingfrom

people,who

100

YEAR

THE

the

century.

of the villages;
low stage of the arts of
Self-sufficiency
is the
life of these villagegroups
production. The economic
side in which
we
are
interested,and the chief point in that
A villagetried to prothe self-sufficiency
of each group.
was
duce
from
that
it
the
be
free
to
tainty
uncereverything
wanted,
of trade.
and expense
We
find,then, that almost all
and these raised
the people in a villagewere
agriculturists,
which
the necessary
food supply by methods
were
always
cumbersome
The
and wasteful.
often very
crude, and were
36.

"

stock

of such

was

been

littlelargerthan

of

sheep weighed

stock

had

fodder

to

be

breed

poor

that

calf of the

often less than

killed before

ox

grown

present day, and

two

the fleece

Many

ounces.

there

winter, as

to have

seems

was

no

of the
proper

often so
keep them, and those that survived were
weak
in the springthat they had to be dragged to pasture on
and
insufficient manure,
a
sledge. Insufficient stock meant
third year
allowed to lie fallow every
though the fields were
to

exhausted
they were
yield of only about
had

to be retained

Not

it

of

from

were
run

materials
wool

of wheat

of

cereals,and

an

acre,

gave

of which

two

but

to be consumed.

the

had

nearly everything else

Houses

forest,clothes

were

to

be

constructed

were

made

out

of flax

villagefields,furniture and implements

made
at home.
Nearly every villagehad a mill,usually
by water, to grind its meal or flour;some
villageshad a

smith
were

crops

for seed.

was

or

to
37.

proceed

from

constant

six bushels

only the food

raised where

and

by

the

carpenter; few specialartisans

be found

in the

ordinary

Evils resultingfrom
to

describe

the

suggested

manor.

the lack of

growth

beside those

commerce.

of European

"

commerce

Before

we

from

36

which

system

regard to

of waste
there

could

be

and

worked

almost

now

ergotism or

food
mere

as

best

at

hovels

the

famine

country, and

and

bad

marked

was

year

every

of

the results of
With

commerce.

the village,
and

inside for lack

up

suppliesoutside

food

lack

outside

market

no

of

the

harvest, on

suffering,because

serious

was

implements.

the

on

consider

an
product, food staples,the result was
A good year brought a surplus
and want.

main

for which
not

based

was

the

alternation

COMMERCE

will be well to stop and

originsit

such

OF

HISTORY

there

and

manor

by

was

famine

often

which

manufacturing skill
other

hand, meant
no
opportunity to buy
bring them to it. Nearly
in

part

one

or

of

another

followed

eases
by pestilence. Disunknown
in the civilized world, like leprosy
St. Anthony's fire,
not infrequent. The
were

was

was

and

coarse

the

monotonous;

houses

were

of

few gara
boughs and mud; the clothes were
ments
of rude stuff.
could
be
procured so long
Nothing better
everything had to be produced on the spot and made ready

for

the

people themselves.
Finally,these people were
and ignorant,with little regard for personal cleanliness
coarse
for moral
or
laws, and with practicallyno interests outside the
bounds
of the little villagein which they lived.
narrow
try.
of higher organization of indus38. Exceptional instances
These conditions existed all over
western
Europe, and
be taken as typical of the period about
the year 1000.
may
better the lack of
the commerce,
or
Though they determined
at this time, they were
not
absolutely universal.
commerce,
by

use

"

Great

feudal

considerable
a

more

princes and great

number
of villagesor
advanced

great lord would

have

manors,

economic

and

duce
tried to intro-

and

system

his shoemaker

each

owned

monasteries

them.

among

tailor,his saddler,

of
number
swordsmith, etc.; and would have a considerable
It is
women
gathered in a sort of factory making clothes.
noteworthy, however, that the difficulties of transportation
were

so

great that for

to

manors

in

concentrate
one

long time

the

place,and

food
the

to

come

suppliesof

owner

would

it
a

was

not

practicable
large group of

have

to

go

to

the

38

COMMERCE

OF

bred

England for export to Ireland,but

in various sections
trade persisted

all over
the

and

HISTORY

41. Distant
such

conditions
modern

confined

commerce

did

of Europe

countries

different wares,
products between

afford to

for the

pay

luxuries.

higher culture
a

and

demand

classes wanted

some

home.

and

Wines

few

of

wares

of

merce
com-

the rich could

Only

area.

with

wares

over

universal

and

foreign wares,

things which
spices

the

any

tance,
dis-

their money
only for valuable
the church, by reason
of their

connection
for

form

now

common

transportationof

they would spend

The
of
dignitaries

and

created

restricted

in its

regularexchange

of the

Most

circulated inside

which

areas

trace

can

we

them.

Under

"

specializein the production of

not

that

so

luxuries.

"foreigncommerce"

is meaningless. The

sense

well;

as

later.

even

to rare

these the term

as

them

could

the
be

not

brought

were

organization,

up

governing

produced

from

at

southern

Europe, along the river routes and over the passes of the Alps,
and furs were
brought down from the North.
Distant

sea

law of about

be

promoted

merchant

over

to

the wide

number

to

voyages

land

the period of which

trade

Scandinavians

we

Institutes

and
of

can

see

London,

the

so

that

begin to get

that
issued

West, and
Asia

only toward

It is

left recordsa

persistedin
the close of

details about

distant

it is firmly established.
the

in

vast

the Baltic countries

and

southwestern

treat.
we

have

and

North

in Russia

with

this period,however, that

commerce,

thrived

merchant

English

vessel" he might
by his own
higher social class; and later laws refer to

of silver coins found

that

"if

An

uncommon.

sea

ships again. The

of adventurous

shows

provided that

900

he fared thrice

still

were

voyages

eleventh

The

century, and

of the town, mention

ships coming:
regulatingthe commerce
from Flanders,from Rouen
and other places in France, and
from
Germany.
Foreign merchants
bought wool and pigs,,
and sold wine, furs,spices,gloves,and fish.
42.

We

Character

know

even

of the merchant

less of the

in the

person

early Middle

of the

Ages.

merchant,

in

"

"

this.

CONDITIONS

ABOUT

of the

A.D.),than

period (about 1000

YEAR

THE

39

1000

that

wares

It is certain,at any rate, that the merchant

that he afterwards became, but was
a

he
not

was

carried.
the specialist

jack-of-all-trades.
He might be wholesaler and retailer,
transporter and pedler,
and often an artisan too.
Nothing like the country store of
the present day existed,and trade outside the few centers
where markets had been established was
carried on by pedlers,
who

carried

merchant

Every
was

their

thrown

wares

was

sure

to be

his

largelyon

the

on

own

back

or

on

of

something

he
as
soldier,
and
self-defence;

for

resources

pack animal.

a
a

garb of a missionary or pilgrim to get

the help of the church in carryingon his trade.
The pilgrim
burdens laid on the ordinary traveler
was
exempt from many
or
merchant, and though this exemption had later to be
to
so
abolished,because it was
frequentlyabused, it seems
have been of great use in helping commerce
through its early
he often assumed

the

stages.
AND

QUESTIONS
1.

Modern

miles.

West

Can

average

the

size of the

county in which

of feudal

you

known
district,

conditions,when
to

you,

has

the

of 200,000 square
about
the year

area

feudal

suggest anything in cow-boy

you

What

has, approximately, an

it with

compare

reminding
3.

the

Calculate

1000r and
2.

France

TOPICS

state

live.

you

life

the State

least

plains of the

the

on

was

commerce

weak?
with

the

outside world?
4.

How

does the

yieldof wheat,

the yield in different parts of the U.

States Census.]

as

given in the text, compare

S.?

[See Abstract

with

of the United

Show

why the lack of commerce

requiressmall groups of people
to produce everything for themselves, and why this self-sufficiency
volves
inlow standard of living.
a
6. How
does commerce
teristic
remedy the waste and want which are characof self-sufficiency?
cannot
Why
people plan to produce just
enough food?
7. Report on
the wares
and workmen
collected on the estates of a
of the Middle
delphia,
great king. [Falkner, Statistical documents
Ages, Phila5.

1896,
8.

country

Name

10

cents,

some

store, which

wares,

2-5.]
important in the stock of

pp.

did not

appear

in

commerce

even

in the

the smallest

period of the

40

Show

manor.

HISTORY

necessity

the

COMMERCE

OF

of

each

the

of

one

mentioned

wares

in

the

text.

could

Why

9.
other

did

wares

What

10.

the

profitable

not

are

the

pay

districts

uncivilized

of

slaves

be

carried

when

on

merchant?

luxuries

the

in

commerce

which

trader

Africa

now

afford

can

into

pack

to

America?

and

BIBLIOGRAPHY

References

Mediaeval

236;
mainly
in

of

manuals

many

Adams,
chap.

nothing,
at

this

smaller

best

Feudal

regime,

of

books

Most
either

of

from

the
the

suitable
time.
manuals

for

See,

or

student's

therefore,
on

Y.,

describing

political

English

Middle

and

the

Holt,

agrarian

Cunningham,
economic

Brief

found

in

accounts,
the

same

in

above,

author's

system

in

tion,
Civiliza-

English

is

Seig-

1903.

in

conditions

reading,

found

Introduction,

119.

be

the

feudal

the

Emerton,

may

in

be

may

Ages,

history,

of

account

feudalism

others

Robinson,

185-191;

N.

of

among

political

Hist.,

The

character

history;
477;

student

9.

and

European

European

**

rise

Europe,
the

for

nobos,

the

on

this

period

standpoint;

discussing
Growth,

history.

the

the

origins
vol.

them

treat

writer
of

1, book

knows

commerce

1,

or

the

CHAPTER

decline

of

the

Roman

Ages,

beginning

place

in

in

the

the

advanced

from
A

town.

of

group

in

In
of

Roman
them.

stimulus

class

districts

during,

depended

Roman

and

could

had
become
later

not

been
a

times

mere
no

for

German
as

in

the

heap
attempt

of
was

it

products
In

seen.

Some

of

disorder

London,
under

41

for
to

when

follow

West.

hundred

the

on

which

good

manufacturing
and

the

the

needed
the

country

period before,

chance

for

of the

exchange

towns

were

followed

which

the

instance, which

for

rule,
it
the

had

the

one

from

Roman

towns

over

made,

the

made

means

themselves

of

of

thousand

security

invasions

rubbish,

several

Such

trade.

itself.

government.
town

the

wares

period

here,

Empire

on

food

have

we

flourishing

the

eat

that

existence, however,

their

maintain

to

the

their

people

to

used

were

them

that

manor

trade.

there

and

to

them

was

Roman

for

or

Roman

France)

afford

after

the

the

notice

to

saying

be

make

can

maintaining

and

in

we

summarize

can

perhaps

and

took

rapidly

necessary

by

will

Middle

so

that

be

village

word

culture,

exchange
it

part of the

advanced

we

hundred,

above,

They

if

the

manufactures

entirely destroyed
of

the

as

several

steadily less,

grew

fall

stage

could

to

but

detail,

of

by

evidently

chance

in

(modern

government

will

It

organization;

striking change

people

history.

Gaul

of

the

the

noted

as

latter

1000,

year

closely together,

large part

existed,

the

In

"

economic

standpoint,

town,

settled

people,

the

political organization

their

least

at

in

economic

the

from

towns

Europe;

changes

important

the

of

in

TRADE

the

and

era

new

now,

after

life

TOWN

towns.

economic

their

this

of

Significance

43.

VI

was

lines

must

have

rebuilt

in

the

old

of

42

streets, and
houses.

HISTORY

streets

new

When

were

OF

COMMERCE

laid out

over

the ruins

of former

actuallydestroyed it ceased
had to take to agricultureto support
to live;the inhabitants
shrank
to a mere
themselves, and the town
village,which
could
the manors
it. Of
not
be distinguished from
about
than 500 modern
French
cities scarcely80 can
be traced
more
back to the Roman
period,and all of these lost their identity
towns
and, became
as
simple villagesin the interveningtime.
after 1000; conditions
44. Rise of towns
determiningtheir
location.
read of towns
in Europe before the year 1000
We
but
rather
the
they were
they scarcelydeserve the name;
from
which
towns
later to spring. Considerable
were
germs
numbers
of people would
collect in the place where
some
great feudal lord spent most of his time, or where a monastery
had
been founded; garrisonswould
be established at places
suitable for militaryoperations. We must
regard such groups,
however, as supported by taxation rather than by the trade
of individuals,from
which
urban
arise. Trade
most
groups
of this kind became, however, so considerable
after the year
1000 that real towns
numbers.
grew up in constantlyincreasing
Their positionwas
determined
by two important conditions of
existence,politicalprotectionand the chance for profitable
trade.
People found the former by nestlingunder the walls
town

was

not

"

of

bear
of

castle

some

the

the

or

monastery; the

of

some

name

church

saint

show

many

how

French
much

which

towns

the

protection
generally

prized. The latter object was

attained
in a line of
break
at some
by founding the town
transportation,where goods had to be transshippedand where
merchants
would
naturallycongregate to rest and exchange
their wares
(cf.Ox-ford, Cam-bridge,etc.). We find the most
considerable
towns, therefore,along the seacoast and rivers,
and

at breaks

45.

rise of
new

pay

era
men

was

or

intersections of the land routes.

The
Development of manufacturing in the towns.
the towns
brought with it,as has been suggested,a
in manufactures.
In the ordinary villageit did not
in the productionof wares, as the market
to specialize
"

was

small.

so

43

TRADE

TOWN

instance,could

for

shoemaker,

livingby selling50 or 100 pairsof shoes a

however, of a villagegrowing into a town
considerable

country population,we

into

widened

an

of size sufficient to

area

specialists.Manufacturing
devoted
much

more

which

would

result
on

enable

and

could

him

support

could

man

afford

market

has

number

of

which

learn

his

make

the

to

men

trade
tools

efficiently.The
productionwhich enabled the people
far more
comfortably than they had

before.

done

Effect

46.

country.

of the

This

"

of

movement

life in the

improving the

in

towns

bound

was

from

work
their

which

another
better

the

tions
condi-

people there

were

the

The

to

condition

other

like the

manors

might actuallybe

had

he

he

one

and
protection,

own

lord.

The

towns

could

day

within

not

be

they

the

walls

reduced

must
to

before.

if

laborers

they

the

to

who

town, became

year

free man,

and

were

of

country, and

stay.

artisans

itself that

lived

attractions

would

his

their

Many

modified

the

to

of serfdom

sea

position. Landlords

in the

results

in

go

In the towns,

free;the

established

his lord,and

against the

keep the

together, and

of

to

provide for
subjectthemselves

of freedom

custom

his former

to

bid

burdens

The
from

escape

need

not

islands

were

of half-freedom.

who

did

nowhere

not

left,where

had

all the populationwere

however, practically
and
were
numerous
intelligentenough to

in

them

serf could

perioda

than

worse

affected

of towns

growth

In the purely manorial

wray.
his condition by running away;

except

their

in the

change

to

country districts. The

artisans of the town.

were

conditions

necessityof devoting part of their time to

of
did well; they could apply most
wThich they never
could
the surplus crop
to agriculture,and
use
energy
exchange with the
they thus obtained, for a profitable

freed

or

by

it most

exercise

to

live

to

area

the

think,

we

surrounded

professionto

time.

increase in

an

was

their

thoroughly,

given

of

most

became

If

year.

that

see

make

not

and

could

found

that

if they

town

agreed

serf

to

lighten

influences

worked

by

factors.

many

44

HISTORY

COMMERCE

OF

kind, in various countries,but the

especiallyof a political
of the
general
country population was
upward movement
than
produced more
Europe. Free men
throughout western
another
influence increasingthe surplusof
serfs,and this was
and furtheringtrade thereby.
the country districts,
that between
47. The
"foreign" trade of this period was
towns,

begun

in

even

the

the

historyof

country.

same

with

commerce

the

who

student

notion,as

has

common

as

foreign trade of a country is more

is impatient to
important than its internal trade, and who
arrive at the descriptionof this foreigntrade, will be disappointed
it is erroneous,

to

that

The

"

the

learn that

in the

even

latter part of the

Middle

We
now
mean
sense.
Ages it scarcelyexisted in the modern
between
the United
states
by foreigntrade that between
States and
Germany, for example. In the manorial
period,
rather that which
has been suggested, foreigntrade was
as
In the period under
discussion it
existed between
manors.
that which
existed between
The towns
towns.
was
existing
of a modern
inside the boundaries
European country did not,
it is true, differ as much
themselves, in their products,
among
of
as
they differed,taking them altogether,from the towns
But the expense
of transportation
restricted
another country.
trade stillto a comparativelysmall radius,and the town,
most
rather than the country, was
The
the natural trading unit.
radius of profitable
small that an
so
was
trade,for most articles,
tions
relaEnglish town would have its most important commercial
"

with
of

the other

foreign countries.

The

Each
regulatingtrade.
and
to a merchant
tariff,
whether

he traded

rather

English towns
town,
town

than

moreover,

would

of London

have
it made

with the towns

the

was

its

own

unit

for

customs

little difference

Southampton or with Paris; national

less important than
regulation was
municipal. Climatic and
historical influences,
it is true, made
marked
tion
distinca clearly
between
the great sections of Europe, the North and the
South, the East and the West, and we shall have to take up
of these sections in detail;but we
shall use
time
some
our
with

46

HISTORY

OF

COMMERCE

once
a
through them
by sending a horseman
and by forcingthe removal
spear held horizontally,

of

Most

the

streets, however, had

villageby-paths and

rarely paved,

and

garbage

saints in the

the

houses

we

in the

chimneys, so that fires were

forced
people to a better
remark
Europe now
upon
and

houses,
should

noted

be

of the

end
their

that

Middle

dark

and
as

They

habitations.

were

repositoryfor all
people
why the towns-

they went
painted with

out, and
them

even

The

on.

no
early period, and there were
frequent and disastrous until they

of

building. Travelers
picturesquebeauty of the

the

their

of

of these

and

that

they

from

the

were

of the

the

character

exposed

were

old
it

very

select few

people lived in narrow

for good work
placesand

Wares

in

construction,but

relics date

indication

drafty,unsuited

from

up

of the

Most

house.

understand

mode

most

crooked.
the

tions.
of obstruc-

grown

when

merits

Ages
give no

time, and

average

the

upon

as

can

pictureswore

of wood

were

served

overshoes

wooden

wore

and

narrow

they

as

of offal and

kinds

were

with

year

of

of

the

quarters,
some
unwhole-

for sale

either

in

in European
market-placeswhich are so common
towns, or in little shops like pedlers'booths at the front of
the house.
The municipalgovernment
spent little or nothing
the
for public works
or
policeprotection;it tried to make
inhabitants share in performingall absolutelynecessary
duties,

the

open

but

succeeded

and

breach

of the

ill that
peace

Improvement

51.

In

so

all the
was

towns

constant

in conditions

sinks of

were

disease,

occurrence.

in the later Middle

Ages.

"

earlyperiod of the towns, say before 1300, conditions

in the last two
centuries
than they were
were
worse
distinctly
of the Middle Ages, when
opment
had attained such develcommerce
that it brought great wealth to some
and comparative
comfort
of Colchester,
the city people. The town
to many
among
in England, ranked
of importance in 1295, but
one
as
a

the

tax

roll of that

in trade

assessed

furniture,in

the

date

shows

strikingpoverty

taxation,in the small

of
amount
insignificant

for

value
most

in the

stock

of household
of the

assess-

and

ments,
stock

and

town

the

of

the

preponderance
agriculturalproduce over

rural
other

wealth
kinds

like live

of

personal
century, however, the population

In the fourteenth

property.
of the

in

47

TRADE

TOWN

doubled, and in
of England
towns

the
in

fourteenth

and

general freed

fifteenth

turies
cen-

themselves

from

accumulated
squalor,

of medieval

wealth, and
in building and improvements.
expended large sums
52. Town
gilds. Much more
organization. The merchant
the worst

features

"

might be said

about

the

to

to its economic

of his time

accept and

historyof

of the

town, but the student

most

generalcharacteristics
life.

must

devote

prepare

himself

commerce

He

must

quite different

conditions

understand

of the medieval

from

those

the world
times, and must try to realize how much
of the commercial
has gained by the advance
organization
the merchants
from
these early stages. In every
town
and
manufacturers
were
organized in gilds and subject to strict
"a contribution
regulation. The Anglo-Saxon word gildmeans
to a common
to be applied to the society
fund," and came
of modern

itself.

Ages

Societies

with

social and

century, with
became

more

dangers

and

the
and

in the

existed

in the

first

part of the Middle

and about the eleventh

religiousobjects,
gilds
springing up of trade, commercial
It

common.

more

difficulties of trade

united

formed

had

for

unsettled

countries

so

journey,as

of the

of

must

bow

stand

journey;in
must
wares

wait

by
case
one

and
one

day

the road

on
was

merchants
became

and

more

permanence

twelve

arrows

help each
member
for

him;

on

other
had

if

the others must

probably temporary
dissolved

at the end

of

are

East.

the
chants
mernow

collection

subject to
obligedto carry
penalty of a fine;they
when
they set out for a

not

one

great that

caravans

that the members

early gild rules shows
regulationslike the following:Every one was

armor,

that

supposed

then

were

in bands

is

were

sold his

was
ransom

the

wares

imprisoned
him.

or

The

others
lost his

zation
organi-

and the company

first,
the trip;but as such caravans

at

regularat any placethere grew

of organization. These
merchant

the

of

tendency to
at
gilds were

48

first also

HISTORY

OF

COMMERCE

formed
privateassociations,

protect themselves; but

to

and

became

they

part of the

the advantage it could

the

voluntarily
by
received

town

public recognition

government

get from

chants
mer-

them

the

as

in

pushing its
trade and
protectingit against the efforts of rivals. They
included not only professional
merchants, but all who bought
and sold,includingmany
artisans.
Of the nine members
who
belonged to the Shrewsbury merchant gildin its earliest period
town

saw

two

fishermen

were

Position

63.

These

"

and

was

merchant

gildsdid

of
gilds; their privilege
exist in all

not

each

from

butcher.

of the merchant

differed much

and

one

in

other

oly.
monop-

parts of Europe,

the

various

regions

England, which we shall choose to

illustrate their operation,they became
regular parts of the
town
most
important
government.
granted one
They were
the
exclusive
privilege,
right of trading within the town.
at this periodthe people from any
"Foreigners,"which meant
where

other town,

forbidden

to

exist.

whether

the town

to

wares

for

did

they

to

in the

purchase

first

there

was

not

townspeople wanted
allowed to keep shops and

not

like modern

which

wares

they were
gilds were

The

division of

no

gave
64.

another

ware

"

The

in
specialization
the

growth

added

in towns
as

the

had

been

discouraged.
made

bargain

rightto share
the portionhe

in it if

has

led,as

; the

grew.

desired.
common

been said,to

impossiblebefore.

was

carried

for them

In

on

in

villageswere

by professionalcraftsmen, and
demand

There

ever,
members, how-

in the towns

which

and
capital,

members.

gildsman

for

of towns

manufactures

of

the
was

the

gildsman had

industries that

continued
were

if a

securitythat he could pay

Development of manufactures

handicrafts.

All

them

competition between
placesthere was a law that

broad, and, in

not

the

profitsamong

"trusts," for,

very

strong feelingof solidarityamong

for any
he

was

associations of men,

were

and

some

the

place, their membership

the second, they

was

allowed to bring their

English or not, were
and to sell them
wholesale,but they were

themselves, and
sell retail.

In

There

new
were

ones

from

49

TRADE

TOWN

of handicrafts which

supported for centuries

the staplemanufacturing groups of the towns:
butchers,bakers,
penters,
carbrewers, blacksmiths,goldsmiths,coppersmiths, masons,
cabinet-makers, wheelwrights, skinners or furriers,
harness makers, weavers,
tanners, shoemakers, saddlers and
and tailors. Most of these terms
will be familiar
dyers,fullers,
to the reader.
Coppersmiths took the place of the modern
a

dozen

to

score

tinsmiths

before

improved

the

introduction

the

of cloth

texture

of

after

tinned

it had

iron.

been

Fullers

woven,

by

beating and washing it with fuller's earth,a clay which absorbs

the grease from the wool; the cloth loses in length and breadth
but gainsin body and thickness.
55. The craft gilds. The craftsmen,like the traders,
were
organized in gilds,which followed shortlyafter the rise of
for their existence was
merchant
gilds. The general reason
"

the
free
the
them
and

the part of members

craft to be
particular
affairs as they pleased,and
to regulatetheir professional
willingnesson the part of the publicauthorities to grant
when
it seemed
this privilege
to promise better work
To
better products for the consumer.
insure efficient

desire

on

regulationthe grant
no

one

was

of

allowed

monopoly
to

of

was

a
practise

necessary,
craft who

and

ingly
accord-

did not

belong

appropriategild. We shall see that the monopoly was

hindrance to
a serious
greatly abused in later times and was
the development of manufacturing. At the start, however,
the craft gildswere
of
liberal;they desired a large number
to

the

members

to

increase their

political
importance,and

admitted

at first
freely;inside the gild the class distinctions were
unimportant. "The regulationsdrawn up by the crafts aimed
of certain
at the
prevention of fraud, and the observance
standards of size and qualityin the wares
produced. Articles
called 'false/just as
in violation
made
of these rules were
'false money.'
For
such
clipped or counterfeit coin was
'false work'
the
makers
were
punished by fines (one half
going to the craft,the other half to the town funds),and, upon
the third or
the trade.
fourth offence,by expulsion from

them

50

Penalties

HISTORY

OF

COMMERCE

for every sort 01

provided,as far as possible,
at the top of a
device; such as putting better wares
were

deceitful

them
below, moistening groceriesso as to make
furs for new,
heavier, sellingsecond-hand
solderingtogether
broken swords, sellingsheep leather for doe leather,and many
bale

than

like tricks."

other

felt

town
a

policy; imports, exports, protection. Every

its inhabitants
and
community of interests among

Town

56.

"

the

competition with

inhabitants

of

other

which

towns,

expressed themselves in a town

policyvery like the national
We
commercial
consider this
state.
can
policy of the modern
municipal policy under several different heads.
tariff,"
(1) Every town had what may be called a "revenue
consistingof duties levied on articles brought within the walls,
additional

with
we

cite

can

giving the
comes

on

horse,
If

...

from

man

pay
or

Every

three
woman

As

of the

one
"

victuals.

shall

of the market.

use

brief extract

customs

upon

excepted.

for the

dues

half-penny,of

one

interestingto

note

whatever
that

this

load of

tariffs,
poultry that

farthings,the

franchise
of

brings any manner

the ground, such

franchise
custom

example

London

horse, and lets it touch

shall pay
for stallagethree farthings. And
if a
it upon
the ground,
his back and placesit upon
poultry upon

an

he

person
carries

man

shall pay
It is
be."

he

may

still survives

in

some

European cities (octroi).

in national
rare
(2) Prohibitions to export goods, now
policy (though suggested recentlyto keep English coal at
in the town
common
home), were
policy,when the supply of
necessaries
small.
"No
was
butcher, or wife of a butcher,
shall sell tallow or lard to a strange person for carrying to the
and scarcity
of the great dearness
parts beyond sea; by reason
that

has

carry

corn

(3)
towns
London

been

The

in

malt

or

modern
number

could

City of late." "No person shall

out of the City,under
penaltyof forfeiture."
idea of protectionwas
applied by the

thereof

not

in the

of different ways.
be sold in another

Bread

from

part, which

one

part of
formed

51

TRADE

TOWN

tained
atprotectionat this period was
more
commonly, however, by aiming it against persons
merchant
the
rather
than
always accompanied his
wares;
at this period,so it was
wares
against
easy to discriminate
specialdues from which
"foreigners,"by making them
pay
members
"of the franchise,"i.e.,
townspeople, were
excepted,
their
chances
for
and
by restricting
profit. Reference has
been made
above
to the monopoly of retail trade reserved to
home
market."
townspeople and designed to protect the
and its regulations. (4) The market
67. The market
was
used
in this period to regulatetrade
for the
institution
an
is applied now
benefit of the townspeople;the name
especially
to meat
regulationswere
shops simply because
imposed on

The
separate jurisdiction.

"

"

butchers

after

other

dealers

freed

were

from

them.

The

afraid that traders bringing provisions for

townspeople were
sale could
impose on their needs and force higher prices by
making separate individual bargains. Therefore they required
the country people to bring their provisions
to a certain place
(market-place)at a certain time, that they might have the
and
benefit of competition among
tried to force the
sellers;
traders

to

sell out

their stock

before

the

close of the market.

townspeople might have an equal chance they

forbidden
their way
to buy goods on
to market
were
stalling");
("forethan they needed
to buy larger amounts
grossing
("en") ; and to buy goods for retailingbefore the ordinary
had supplied their needs
consumers
("regrating"). After the
close of the market
the town
shop-keeperslooked after the

That

all the

needs

of retail trade.

still so powerful in the town

Ignorance and distrust were
were
period that merchants
subject to constant
supervision;
for them,
they had to employ officials to weigh and measure
and could not employ brokers to hunt up customers
unless the

agents
58.
town
wares

were

also officials actingunder

Attempts to regulateprices.

government
must

be

went

sold.

even

so

We

are

far

as

oath.
The

assize of bread.

to set the

"

The

pricesat which

familiar,nowadays, with

in-

52

of the

stances

the

COMMERCE

OF

regulationof pricesby publicauthority,as

fares.

hack

of

case

HISTORY

Such

instances,however, are now

Ages innumerable
attempts

exceptional,while in the Middle

all
at publicregulation,
coveringpractically
at

and

different times
because

up,

suffered

price.

low

too

set

was

the

Thus

it

their

ware

by going

more

was

Most

places.

defeated

they

was

were

made

soon

given

wares,

of them

were

object;when the price

longer offered,and people
than
by paying the higher

own

no

without

found

in

unwise

to set

pricefor

necessary

allowed to work
their
priceswere
own
cure
they offered to an increase in
by the inducement
supply. It was as hopelessto set a fixed price for bread, but
the government
should
determined
that at least the baker
not make
improper profitsfrom the necessities of his customers.
It established,
therefore,the "assize of bread," a sliding-scale
which fixed the weight or the priceof a loaf according to the
of the
market
price of wheat, and so restricted the power
baker
to raise his charges unduly. The
same
system was
applied to ale,and assizes of this kind have lasted down to the
like wheat; and

nineteenth

high wheat

century in

some

countries.

AND

QUESTIONS
Show

1.

what

interruptionof
coal) or
2.

would

happen

to

our

TOPICS
modern

cities if there

were

an

giving out of
political(wars, strikes attended with violence,etc.).
city of such a brief interruptionas a
Study the effect on a modern
either

commerce,

physical (perhaps

the

great blizzard.

growth of the following:London,

York, Paris, St. Omer, Lille,St. Denis, Lyons, Bruges, St. Cloud.
[Use
the
and
a geography
encyclopedia.]
3.

Find

the

reasons

for the rise and

Startingfrom the statements

inhabitants the only specialists
were
4.

think
to

in the text, that

in

perhaps miller and

manor

of 100

smith, try

to

of

who
in size to 1,000;
would
the group
specialists
as
grew
appear
would
the following
when
to
10,000;
100,000; 1,000,000. For example,
watch-maker, artificial limb-maker, shoe-maker, saddler?
appear:

[The business directoryof

5.

of the
6.

How

has

the

supply helpfulsuggestions.]
cities in the U. S. affected the agriculture

citymay

growth of

surrounding districts and the welfare of the farmers?

Compare the

size of medieval

towns

with

that

of towns

and

vil-

VII

CHAPTER
LAND

Roads

59.

The

of the roads

find in the court

of

stretches

road

that

they should

road

had

be

'to

received

left to

neglected,or

maintenance

We

TRADE

little

records

which

be

in bad

bad

The

clergy

Pious

object, as
for the
and

left

and

help travelers

wagon

road

of

were

scattered
other

none

to be
are

on

carried
so

of

road

When
to

the

Scotland

northern

by wagon
general use

an

and

so

to

to

wagon.

pack animals
nearly always went

difficult

travelers

to

the

this distinction.
too

were

much

of transportation.

transport provisions

1300, he requiredfour horses,or, in

counties,eight oxen
was

visitors

feudal

generallevel

English king wanted

about

to

lawyer
path, the
feet, the highway
of sixty-fourfeet.

"

roads:

of sixteen

to raise the

in number

few

too

after their

on

familiar

roads
thirty-two feet, and the Roman
There
was
nothing in realityto correspond to
still in use, but they
The
Roman
roads were
and

caring
repair,

by religiousorders

of

worn

in

this

their way.

five kinds

theory
eightfeet,the

chants
mer-

to
or

in

and

but

themselves

transportationby road.

distinguishedin

leaders

like

established

merchants

Difficulties of

the

visitingthe sick
associations
to keep roads

were

now,

fine; but a
attention, and

were

devoted

they
bequests to allow the work
The
Alpine hospices,which

Switzerland

60.

work

formed

poor;

death.
in

meritorious

also

persons

ordered

of

penalty

maintaining the roads, for their estates

they felt the need of transportation as
did.

"

people reported

it attracted

before

best.

at

the

condition, and

repaired under

very

care

that

manors

were

associations.

still left to local authorities.

was

of

benevolent

Transportation

that

54

were
on

still in

horseback,

LAND

55

TRADE

ridingastride,and twenty miles being

of Bristol was
town
considered
fair day's journey. The
a
the townspeople the
granted a county court in 1373 to save
thirty miles of road, deep,
journey to Gloucester, "distant
especiallyin winter time, and dangerous to passengers." At
the very end of this period (1499) a glover travelingto market
drowned
with his horse in a pit which
at Aylesbury was
a
miller had dug to get clay from
A court acquitted
the road.
the miller on the ground that he had no
malicious
intent,and
of any
other place where
he could get
really did not know
the kind of clay he wanted.
of bridges.
still rare.
61. Lack
Those
Bridges \vere
which
the Romans
had built fell into ruins;they were
rebuilt
in wood, or replacedby bridges of boats, by simple ferries,
or
by mere fords. Complaint was made to the English Parliament
both

and

men

women

"

bound
the bridge over
to maintain
nobody was
the Trent
near
"ruinous," and
Nottingham; the bridge was
"oftentimes
have several persons been drowned, as well horsemen,
refused authority
and harness
: Parliament
as
carts, man
of towns
to keep the bridge in repair. A large number
had
rivers,as is shown, for instance,by the number
grown
up on
of English town
names
ending in -ford,-bridge,-ferry;and
the difficulty
and danger of crossingthe streams
serious
were
obstacles to trade.
Pious and public-spirited
people took up
still unable to undertake,
which
the work
the government was
in 1376

that

"

and

devoted

their

time

and

money

to

the

construction

and

gences
repairof bridges;the church assisted by the grant of indul(remittingchurch punishments for sins) to those who
of some
of the
character
the religious
Even
contributed.
now
European bridges is attested by the chapels built on or near
them.

transportation. The difficulties

it
of land transport led to the use of river navigationwherever
was
European
practicable. It is said that the flow of many
rivers was
full in the Middle
more
Ages than it is now, and
was
by mill dams and
though the course
apt to be obstructed
62.

Advantages

of

river

"

56

and
fish-weirs,
could
have

not

HISTORY

little was

paid for

to

it often
follow

their

to

paid to

carriageon

much

as

as

go far out

navigable

bring salt

done

COMMERCE

the

preserve

water.

500

land.

would

singleboat, it is
pack animals would take,

of the shortest way

It was
cheaper,for

from

Liineburgto Brandenburg by
Stettin,though the direct land route was

and

chants
channel, mer-

transport by rivers bulky articles which

estimated, carried
and

OF

to

market

instance,to

way
of

of Liibeck
far

course

shorter.
63.

of violence

Danger
of travel

on

the

road.

The

"

culties
physicaldiffi-

accompanied by danger of violence of

which
people nowadays have little conception. The church
the safety of merchants, and cooperated
attempted to secure
were

authorities in maintaining the "Peace

political
feudal
The
God," and in repressingdisorder.
system

with

the

developed into
later

period,and

it before
efforts

the

parts

efficient system

more

something

close

of the

of

in the

even

Europe

"caravans,"

merchants
for

collegein England
journey.

better
were

like the

Middle

highway robbery and

occurrences,

or

more

of

But

were

advanced

from

rose

spite of all
regularand normal

Ages.

violence

state

had

in its

government

modern

of

in

countries.

still traveled

protection,and
encouraged to

in

In

many
bands

temporary
students

carry

going
on

arms

to

the

Complicity of feudal lords in robbery. The King of

France
tried in vain, in the thirteenth century, to make
feudal
lords responsible for crimes
committed
in their territories.
64.

The

lords

"

self
accomplicesin the crimes;the King himnot always above
was
dignitariesof
suspicion;and even
the church
heroes of the crusades turned
or
highway robbers
occasion.
An
indication
is given by a
of the conditions
on
Whereas
in 1348.
complaintof the EnglishHouse of Commons
it is notoriouslyknown
throughout all the shires of England
that robbers, thieves,and
foot and on
other malefactors
on
horseback, go and ride on the highway through all the land in
divers places,committing larcenies and
it
robberies; may
were

often

"

king to charge the nobilityof

maintained
by them, privatelynor

be

such

that

the land that

lord the

pleaseour
none

57

TRADE

LAND

they help

to

and

arrest

take

merchants

before, two

such

bad

the

from

openly; but
A

fellows."

continent

tury
cen-

been

had

arrested,but could
for a long time; finallymore
than sixty
be convicted
not
executed
for complicity in this and similar crimes,
persons were
of position,numerous
the number
men
including many
royal
of the king'shousehold.
officials and some
even
Shakespeare's
in

robbed

Hampshire;

at all

it is not

great mistake

only
bad

road

he had

feudal

sums

to

which

the

protect himself
to pay

was

not

the

kept

himself.

and

As

be

prised
com-

expense

transport his goods

over

In addition

tolls: tolls for the

feudal

tolls for

up, and

feudal lord tried to make

true,

It would

"

againstrobbers.

Feudal

be

not

may

merchant's

to

necessary

had

road

authorities.

that

suppose

to furnish

every
of

the

merchant

every
of

to

and

roads

the

exploitson
improbable.

imposed by

Tolls

65.

culpritswere

Hal's

story of Prince
but

the

lords

were

money

out

the time

of

repair
protectionwhich
everywhere,and

of the

movement

Charlemagne (809)
find the central government
we
attempting to keep the ways
of commerce
Charlemagne forbade the compellingof
open.
travelers to use
short-cuts,or the
bridges when there were
building of bridges in dry places to extort passage
money
from
to
streams
travelers,or the stretchingof ropes across
force shipsto pay for the rightof passage with money
or
wares.
men

The

goods.

attempt

was

fell into the

without
66.

hands

of local

we

modern

lords,and

list of seventeen

and

government
exercised by them

was

selfish and

inconceivable.

should

of the central

power

local interests.

of tolls.

variety of

The

"

scholars

Attempts by
fees and

principle
underlay the system.

no
a

as

The

regard to any but

Variety and number

tolls is almost
them

vain.

earlyas

different kinds

incomplete. We can say in

everywhere and on everything.

taxes

are

French

of

classify
useless,because

scholar

to

has

tolls,but this
general that tolls were
Even

feudal

is

made

rough
levied

jongleur^the equiva-

58

HISTORY

OF

COMMERCE

lent to the modern

Paris

could
organ-grinder,
making his monkey show
had to pay toll not only

without
A

way.

man

bridge;he

had

not

the toll

escape
HUDSON

to

RIVER

by going around
FROM

RIVER
f

-="

Places

at which

many

tolls

established

were

different
any

time.

In

the

Rhone

from
60

; so

thirteenth

fourteenth

Roanne
on

the

There

Cologne.

and

Grand

In

few

Same

to

on

Scale

over

could

Loire

as

Riyer

SEA
Miles

near

the river.
seventeenth

did

have

not
as

river,

the

across

the

is inserted

to

tolls

The

were

on

shown

as

and

century,

all of them

pay

fected
afat

distances.

help in estimating

when

or,

side of the

one

thirtymiles.
the Loire,
74 tolls on
Allier;10 on the Sarth;

stretch of littleover

12

la Reole

of
on

hours' walk

were

the

on

Saone;
Pont

line

century there

13 toll-stations

were

down

merchant

Nantes;

between

the

by

century there

Rhone

land-routes
between

to

times

of the Hudson

map

went

it,and

under

TO
THE
Scale
of

marked

are

that

four toll-stations

the

In

The

he

own

place, by lines drawn

different

wares

TROY

TO

.I

one

at

when

his

pay

it.

ORLEANS

FROM
,

levied

were

levied at

were

LOIRE
"";

YORK

NEW

the gates of

pass

off to

he went

toll when

pay

not

70
and

on

Garonne

Narbonne;

Paris
the

the

and

Rhine

around

the

or
on

on

the

Seine

the

Roche-Guyon.

between

Nuremberg

Mainz
one

and

passed

10 stations.

The

traveler

abroad, whose

route

follows the line of medieval

trade, is struck
He

passes.

the

admires

realizingthat
that
reflecting
than

with

each
the

the
castle

Hudson

59

TRADE

LAND

castles

of feudal

number

which

he

picturesque ruins, perhaps, without

was

once

shows

toll station

a
a

higher stage

and

without

of civilization

the Rhine.
67.

Abuses

aggravated by
got nothing in
The
lords

merchants

of

the

tolls.

"

The

of

burden

the

tolls

was

fact,already suggested,that the merchant

return
except the right to look out for himself.
the

forced to associate

were

to

do

what

the

river

tow-paths,drag the river-bed,

build warehouses
The merchant
and wharves.
might pay a lord
for a safe-conduct
him protection
which
was
supposed to assure
in a certain territory,
and then be robbed
by the lord himself.
According to the feudal theory exemption from tolls must
be granted in certain cases.
Supplies for the army and navy,
for the king and
for churches, hospitals,and
higher officials,
monasteries,should pay no toll. Scholars at the universities
in
enjoyed in theory an immunity which they could not secure
fact.
The
merchant, however, was
always regarded as fair
of commerce
which
wares
were
supposed to be
prey, and
their way
to
on
exempt, as in France, for instance,wares
tury
Lyons fair,enjoyed only partialimmunity. A sixteenth-cenFrench
writer instances as an example of the oppression
of tolls the case
of a merchant
who shipped to the East some
neglected:keep

cloth that

up

the

the voyage
Paris to be redyed; all along the
was

wet

on

and
road

had

to

be sent

in France

to be

back

to

the tolls had

on
paid over again. The collectors levied toll even
grain
that was
to be used
being taken to mill,on cattle that were
as
plow animals, on agricultural
implements and manure.
68. Development of the toll system.
With the growth of
the toll-stations of course
increased in value; and
commerce
the practice,
to contractors, who
paid
grew
up of leasingthem
for the privilegeand had to devise,an old author
a high sum
tells us, "ten thousand
frauds and
and unusual tyrannies,
new
exactions"
to make
Many kept
profitfor themselves.
any
for days on
taverns, and managed to detain the merchant
"

60

various
made

HISTORY

pretexts,such
the

merchant

COMMERCE

of the proper

absence

as

relieved

be

to

pay

of

official. Some

necessity of

the

in
unpacked and weighed and measured
detail. Many kept the tariff secret, and extorted what
they
lived far from
the highway,
could on every occasion.
Some
and some
put their offices by design on impracticableroads,
and fined the merchants
heavilywho went by another route.
On
some
Rhine, Bingen to
routes, as along the middle
to be carried
Coblenz, it was almost impossiblefor commerce
on
except along the river,and very heavy tolls could be levied
here without
danger of the merchants
escaping;but under
other conditions
the collectors established
wings, as they were
called,secondary offices on the side-roads to prevent evasion
of the toll. Some
collectors established regular pools,to use
the modern
term
appliedto railroad combination; twenty-five
or
thirty of them, representingperhaps five or six separate
associated
and
toll-areas,
agreed upon their rates; then they
pooled and divided their profits.
of
of trade by tolls.
69. Constraint
The
establishment
toll-stations put an artificial constraint on trade,which
kept it
in the paths most
for the collectors,
convenient
not
most

having

his

OF

wares

"

suitable

to

better roads
would

be

(German

the
to

merchants.

Lords

be

fear that

built,for

impaired.

The

S trass enzwang)

far

was

greater than any

Peculiarlynoxious
which

allow
the

follow

serious

evil

as

customs

clustered

for themselves

around
in the

and

new

old roads

certain

openings;and the loss to

gain by the toll receiver.

feudal lords claimed

the central government

not

profitson

compulsion to
became

developed and sought new

would

routes

commerce

the

public

the

rights

period when

powerless. The rightto a wrecked

ship,which had once been the prerogativeof the king, could be
distorted so that the whole
cargo of a Regensburg ship was
confiscated in 1396 because a singlelittle cask had fallen off
into the Danube.
It was
an
accepted rule in Germany that if
the ground it
broke down
that the axle touched
a
so
wagon
became
a
part of the land and belonged to the lord of the
was

62

Read

6.

of

the
Hal

Prince
What

7.
levied

the

on

Using

8.

the

stretches

and

insert
to

be

the

good

10.

in

railroad
truth

of

charges

nobles.

Compare

medieval

alleged

construction

of

11.

sect.

to

the

method

suggested

70

conditions
the

to

of

low

present

and

home,

at

in

of

charges

the

with

choice

the

apply

how

show

ness
appropriate-

of

railroads

66

sect.

barons."

difference

transcontinental

sary,
neces-

live.

the

of

of

one

if

"robber

in

were

Cologne),

scale

you

discuss
and

of

to

the

called

them,

tolls

length

Mainz

compulsion

modem

attitude

Canal?

the

add

the

the

where

likeness

if

counties?

changing

place

against

Panama

Using
to

and

be

miles

sometimes

of

points

the

example,

this,
the

are

made

of

(for

transfer

entering

indicating

term,

scale

66

officials

medieval

is

then

exploits

the

State

your

inside

even

the

sect.

railroad

or

or

from

in

trade

on

county,

stations;

road

the

effect

find

about

IV,

Henry

highway.

the

every

map

COMMERCE

Shakespeare,

on

the

of

toll

the

to

in

would

mentioned

Assuming

would

Falstaff

Modern

of

of

part

and

some

9.

What

first

border

OF

HISTORY

much

spect
re-

routes.

the

to

statements

medieval

tolls

transportation.

BIBLIOGRAPHY

far

By

life.

"wayfaring
interest
vol.

July,

will
1.

the

A
1897:

be

good
Alice

best
If

reference
a

found

study
Law,

that

library
in
will

Smiles,
be

English

found
towns

Lives
also

and

of
in

the
the

roads

is

available

engineers,
Economic
in

**

Jusserand,

books

older

containing

is

given

be

can

the

London,
Review,

thirteenth

English
of

much

1862,
vol.

century.

7,

CHAPTER

VIII
FAIRS

Fairs

71.

; the

description
far

was

less

for

reason

time

of

those

instance,

seeks

he

If

is

separate

houses, and

make

has

people

who

will

it

rare

buyers

place,

sell

or

and

find

demand

which

dammed

for

greater
72.

the

suggest

the

of

he

is

he

desires.

sellers

of

particular
been

always
trade

to

will

be

oth?r

and

secure

exchange
time
for

as
a

Comparison
Even

to

meet

that

it were;

the

old
63

then

markets
custom

of

dammed

and

time
and

seller

supply

and

of
flow

is

trade
in

much

again.
and

of

find

to

difficulty;

buyer

to

still

the

that

allowed

can

following

certain

current

he

the

at

The

then

with

meet

coincidence

implies.

fairs

to

chance

every

little while,
of

now

adopted

agree

and

the

is

process

wares,

to

individuals

exchange

troublesome

very

what

sell his

can

the

up

Where

be

for

where

store

hunt

again

must

money,

around

going

general

no

the

he

it,

for

surplus

where

city,

money

with

his

by

change
ex-

for

the

to

him

store

store

in

him

give

Nowadays,

give

exchanged

buyers

out

will

products

goods

who

purchaser

desires.

will

special

there

volume

"

trade

institutions

seeks

who

may

desire

each

has

no

what

almost

that

so

dry

if there

purchases

device

he

seek

must

sell

who

the

at

there

he

the

that

will

and

country

merchant

produce

relatively

foregoing

shown

trading

himself

his

brings

purchases

lacks.

who

he

contented;

his

The

"

have

now,

and

wares

that

produce

returns

make

is

to

wares

particular

farmer

his

and

it

characteristic

with

something

makes

will

than

the

person

out

existence.

commerce

extensive
of

their

fairs.

Every
desires

medieval

one

the

"

for

reason

"

modern
market

changes.
ex-

days'

'

64

in
persists

HISTORY

COMMERCE

OF

places,and once
and
country people agreed on a
market-place then to exchange
some

kind

same

of institution

the

certain day, and

their

market,

wares.

and

grew

met

in the

fair

is the

for similar

up

it

it attracted
served

universal;townspeople

was

representeda further step of development, for

buyers and sellers from a far greater area, and

but

reasons,

as

it

of wholesale

needs

fair is,of course,

much

as

well

less advanced

as

retail trade.

than

the

The

modern

changes
ex-

mittent
interproduce),from the fact that it was
instead of being continuous,as well as for other reasons;
the means
in the Middle Ages it was
by which commerce
of commerce
could be measured
strong,and the prosperity

(stock and

but
grew

by

the prosperityof fairs.

The

fairs

business

always

purposes;

attracted

people

for social

well

as

as

life in the Middle

Ages would be regarded

present time, and both townspeople

dull at the
insufferably
and
which
the fair
country people enjoyed the excitement
in plenty, then;
"side-shows"
brought with it. There were
cians,
wild animals, trained dogs, and monstrosities,
poets and musiand
actors
clowns, dancing and gambling halls;and
there was
a good opportunityto turn
a
dishonestlyas
penny
well as honestly. The court roll of the English fairs of St. Ives
tells us of a defendant
who was
a
caught selling
ring of brass
of the purest gold, and
for 5Jd., saying "that the ring was
that he and a one-eyed man
found
the last Sunday in
it on
as

the Church

of St.

Ives, near

the

Cross."

The
fair
of merchants
Privileges
tradingat a fair.
the protectionof some
feudal lord,
ordinarily
grew
up under
73.

"

secular

in every
who
endeavored
ecclesiastical,
further its growth that he might increase his revenue
or

the taxes
attract
way,
cause

imposed on it. The lord of

merchants
by guaranteeingthem

and

he

there

were

of merchants

many

cases

in which

of his fair who

had

way

from

fair endeavored

been

robbed

to

their

protectionon
the lord took

to

up
or

the
treated
mal-

by others, and forced restitution. Furthermore, he

the
endeavored
to secure
on
exemption from tolls for wares

65

FAIRS

and
his fair,

to

way
fair

freed

were

the

Inside

the

The

merchants.
in which

court

be tried.

It

freedom

of the

attachment
of

trade

important of

most

of breach

cases

called the

was

these

of contract

granted
a

the

was

special

like could

(Pie,French
of dusty foot) from
some
said, because
fall from

the

foot.

of
rough and ready means
disputesby referringthem to a committee
a

settlingcommercial
of traders,which
was
highly prizedbecause commercial
stillin its infancy,and no justicecould be looked for
was
manorial

Avould
of

or

feudal

law
in

court.

It
Europe. The fairs of Champagne.
for every country
to give a long list of fairs,
possible
fairs in

Great

74.

of Pie Powder

Court

did give

this court

rate

any

which

was

and

to

for debt.

person

allowed

was

court
pied,foot; curia pedis pulverizati,
the dusty feet of the merchants, or, as
justicewas done as speedilyas dust would

At

their way

on

were
time, and various special
privileges

at the

unusual

the

from

fair

merchants

sometimes

be

Europe had

them

"

in

varying number

at

different

times.

probably that of St. Denis at Paris, which

have been founded
(as its patrons alleged)in the seventh
may
was
certainlyin active operationlong
century, and which
before the time of Charlemagne. In a later period another
Paris fair,that of St. Germain, became
more
important,and

The

oldest

later

was

province of Champagne
in Europe. The
most
prosperityof
flourishing
in part to their geographicalposition,
due
was
fairs in

still the

became

the

these

fairs

which

made

point when

them

commerce

the

French

natural
on

trade

land

was

center

more

and

distributing

important than

that

apparently,to the good government

The
Counts
and
wise policy of the Counts
of Champagne.
tained
and
sufficient protectionboth at home
abroad, maingave
regular and reasonable dues, and did everything to
class. They got an
stimulate the confidence
of the merchant
enviable reputationby their strictness in forcingthe proper
on

sea,

but

execution

still more,

of contracts
to
5

assure

the

made

at

payment

the

fairs,and

of debts

took

contracted

such

cautions
prethat
there

THE
/

Places

jKoutes

Most

traffic of the

of the

and
with

of

Italy.

the

probably

land
went

Champagne

Merchants
The

route.

by

way

fairs

went

North

from

Normandy

ascended

route

of German

merchants

of Bruges.

OF

PAIRS
In which
to and

and
the

CHAMPAGNE
the

from

Fairs
the

South,

by

river

Oise

is unknown,

were

held

Fairs

way
to

but

of

Flanders

its junction
most

of them

67

FAIRS

(or bankers)

merchants

some

went

the fairs

to

simply to

loan

money.

In

76.

Trade

at the

the

thirteenth
six fairs

fairs ; other continental

Champagne

century, the
held

period of

fairs.

"

their greatest prosperity,

different

places in Champagne,
of which
the
Troyes and Provins, southeast of Paris, were
most
important. Each lasted over six weeks, and, following
in rotation,they suppliedan almost continuous
market.
Here
the objectsof comwhich formed
one
merce
might find all the wares
in Europe; textiles of silk,
factures
wool, and linen;minor manuand
and

were

at

jewelry;drugs

and

metals; leather,skins,and

stock

and

slaves.

from

various

and

Belgium)

by

there

passes;

The

bulk

of the

also

were

who

and

came

Germans

and

fairs

declined

heavier

as

by

Alpine
in

Spanish, and,

dues

from

came

chants
mer-

(modern
the

over

number, English,Dutch, and Swiss. Wares

distant countries,
and the eastern
Scandinavia
but changed hands on the way.
The

done

Flanders

up

like salt

drinks, live

and

tradingwas

parts of France
Italians

materials

spices;raw
furs; foods

less
more

Mediterranean,

imposed,
brought directlyunder
were

and

the
was
especiallywhen
Champagne
French
from
diverted the merchants
king, about 1300; wars
Champagne to Flanders, and the growth of sea-trade favored
this

The

movement.

same

and

their

Champagne
place was taken by

Cologne, of Frankfurt
English

76.

of trade

is,and
some

in this
its

"was
an

the

period,instead

from

Channel,

so

distant

for

was

The

the

about

trade

the

with

to

Lyons.
circumference
it

now

of

that

fore,
English fairs,there-

in most

countries.

held

near

insignificanc
Bruges and

being at the center as

highly developed as

countries.

position for
and

of

importance,and

StourbridgeFair
excellent

not

was

Continental

of less

merchants

England

"

the fairs of

the Main, Geneva, and

on

commerce

of the
were

fairs.

fairs dwindled

did not

cases

attract

The

largestEnglish fair

mile

from

the low

distribution

thicklypopulateddistricts of England.

of

in

Cambridge,
countries

across

goods through

Another

the

great English

68

fair

that

HISTORY

OF

COMMERCE

of

beginningon

Winchester, held each year

"The
August 31st.
was
hill-top

with

of

was

streets

Flanders,
in

town,

in

wooden

another

another

the

"

the whole

in

was

precautions which

adventurers

from

one

Caen

merchants
a

and

row,

not

the

under

some

other

Bristol.

there

the

from
Norman

Here

were

drapers;while

palisadewith guarded entrance,

always prevent enterprising

wooden
did

merchants

from

days%

quicklycovered

the

or

of toll

escaping payment

themselves

for

of

those

placed the goldsmiths in

around

in

shops;

for sixteen

by digging a

All

wall.

trade

com-

was

way

pulsorily
suspended at Winchester, and within a 'seven-league
circuit/guards being stationed at outlyingposts, on bridges
and
other places of passage,
that the monopoly was
to see
not infringed.At Southhampton, outside the circuit,
nothing
the
to be sold during the fair-time but victuals,
and even
was
of Winchester

craftsmen

very

hill and

the

to

there

bound

were

carry

to

their

on

selves
them-

transfer

occupationduring

graduated scale of tolls and duties;all

merchants
of London, Winchester, or Wallingford who
entered
free from entrance
tolls;after that
during the first wreek were
date newcomers
of the merchant
paid tolls,
except the members
the

fair.

gildof

There

was

Winchester."
AND

QUESTIONS
1.

show

Following the

why they

have

of railroads
have

upon

2.

declined
the

and

the fairs of

Set down

given in

reasons

in recent

development

times.

to you,

of:

of trade

between

the

rules

of the

of

State.
it has
to

of

solvency of members.]
5. Study, on a good
by land and water, nearness
towns; of their

map,

the

advantages

to advanced

successors

Asia

and

so
difference,
stock exchange.

and

specialsecurity,as in the
exchange, and the pains taken

offeringguarantees

effect will the extension

What

market, fair,produce or
3. Study the history of fairs in your
own
economic
than
fair" once
have more
importance
modern
4. Does
a
stock-exchange seek
occur

explainthe rise of fairs,

sect. 71 to

NijniNovgorod?
pointsof likeness

all the

TOPICS

to

as

they

"county

now?

attract
case

far

the

by

customers

of fairs?
secure

of location

commercial

in commercial

Did

Europe

[Study

honesty

and

(transportation
pagne
people)of the Cham-

importance.

IX

CHAPTER
TRADE

SEA

77.

Rise

of

sea

might suppose, in
on
land, that the
the sea during the
the Middle
Ages

The

commerce.

Scandinavians.

of the difficulties and

view

dangers

We

"

of travel

Europe would have been forced tofeudal period. In the last two centuries of
in fact, a growth of maritimethere
was,
which
commerce
prepared the way for the great discoveries
the
this
oceanic
and
Before
commerce.
period of modern
of navigation were
still so slight
period,however, the means
that regularand extended
the excepthe sea was
commerce
on
tion rather

than

trade

the

of

rule.

the leaders in
were
Europe the Scandinavians
the development of navigation. We
get an idea of the ships
from
few
which
discovered
that they used
one
was
a
years
in
burial
in
southern
where
it
mound
had been
a
Norway,
ago
preserved since the ninth century, it is supposed. It is an
tion;
boat, clinker built,and fashioned to go in either direcopen
has places for 15 oars
it is about
75 feet long, and
on
each side,but no arrangement
for a sail. Similar boats, with
the addition of a rudder and
hutch
still used
at each end, are
in the Lofoten
Isands.
They are well suited to carry passengers
along the coast, but have small cargo capacity,and, of
unfit for long sea
The
Scandinavian
are
course,
voyages.
Vikings,indeed, used them mainly for raidingand piracy,and
in them
of western
harried for centuries the coasts
Europe,
Northern

In

with

recklessness
A

for

chronicle

nearly a
Along with

month

these

war

which

accorded

speaks of
before they

with

Danes

who

made

their

were

tossed

about

landing in England.

vessels the Scandinavians

70

acter.
char-

their warlike

must

have

had.

SEA

the
cargo-ships,

some

modern

writer

of which

details

conceives

71

TRADE

are

unknown

to

us;

clumsy and slow,

flat-bottomed."
Sailingships

them

to

been

have

"tub-shaped,round-bowed, and
were
certainlyused from a very early period.
The
78. Development of shipping in Northern
Europe.
of the conquest
Bayeux tapestry,which pictures the events
in 1066, shows
stantiall
subwhat
of England by the Normans
was
the Viking type of vessel to have been used, in that
at
undecked, and several foundered
expedition;the boats were
anchor
writer thinks that few
before starting. A
modern
carried over
40 or 50
30 tons in size,and that none
were
over
"

men.

About

Dover

show

working
and

far

we

and

over

ship still undecked, but provided with a

and
the side, fightingplatforms at bow

with

mast

trust

can

seals of Sandwich

later the

centuries

two

seal, which

crow's-nest

at the

representationssuch
often

were

top.

executed

by

rudder

It is doubtful

these

as

and

on

persons

stern,
how

the tapestry
unfamiliar

We
to be conventional.
sure
can,
object and were
which
in the chronicles,
if we
choose, follow the statements
would
make
the ships much
or
men
larger,holding a hundred
several hundred; the chronicles are
even
notorious,however,
of statistics,
and the
for the constant
exaggeration in matters
with

the

truth

lies

probably somewhere

information.
with

Down

to

the square sail was

carried two
masts, one

the

in between

two

sources

of

fifteenth century the

the usual
near

our

the

bow, and could spread six sails.

coastingtrade smaller boats were
only by oars.

rig.
center

Some
and

singlemast
vessels,however,
one

toward

the

tripsand for the

propelled
used, sometimes

For

shorter

gation
NaviDevelopment of shippingin the Mediterranean.
developed more
rapidly in the Mediterranean, especially
after the beginning of the Crusades, than in northern
Europe.
It is hard to believe the statements
according to which the
after
Mediterranean shipscarried 1,000 or even
1,500 pilgrims,
all allowance
be perwould
is made
for the crowding which
mitted
at this time, but the Mediterraenan
shipsundoubtedly
79.

"

72

surpassedothers
France
which
decks
100

HISTORY

in size and

OF

COMMERCE

Venice

presentedto
in 1268
110 by 40 feet,
some
ships which measured
were
11" feet deep in the hold and had a height between
of 6" feet.
These ships carried a complement of over

men,

and

must

have

equipment.

measured

400

or

500

tons, while

terranean
English ships of the periodrarelyexceeded 50 or 100. Medivanced
shipping regulationsof about this date show adideas concerning the construction,the equipment, and
the loading of ships;all ships were
could
inspected and none
sail which
did not comply with the regulations.
The
of the Mediterranean
ship-builders
ports retained the
for
oars
type of the classical galley,depending mainly upon
much
its propulsion. The hull was
longerthan in the northern
type of sailingships and did not rise far above the water;
of placing the
both
characteristics depended on
the need
where
oarsmen
they could work to advantage. The three
sails were
a
comparatively late improvement on the
square
of one
earlier rig,which
consisted ordinarily
sail;a fair wind
utilized for helping the boat on its course, but the chief
was
reliance was
placed on the oars.
of the art of navigation. The
control
80. Backwardness
of a ship is as important as its construction,if it is to serve
and the growth of maritime
in the last
commerce
commerce,
centuries of the Middle Ages was
due as much
to improvements
in the art of navigationas to superiorship building. During
the early Middle Ages, as in ancient times, ship captainstook
their lives in their hands when
they ventured out of sight of a
familiar coast.
The only means
they had for determining their
positionat sea was
"dead-reckoning," i.e.,estimating the
distance that they had traveled from a known
point,and the
that they had steered;and to know
their course
course
they
in
had to rely upon
the stars, which
obscured
of course
were
It was
their help was
most
wanted.
stormy weather, when
north or
in the open
customary, on voyages
sea, to sail due
of the destination,then to turn at right
south to the parallel
of 8 or
in the course
angles and sail due east or west; errors
"

SEA

degrees were

10

even

not

73

TRADE

The

uncommon.

of

means

fixing

which
was
weather, the mariner's compass,
discovered
by the Chinese, and is supposed to have been
in Europe.
still unknown
known
at this time, was
to the Arabs
of the compass,
and of navigators'directories.
81. Introduction
of acquaintance with
The first documentary evidence
the

in any

course

"

the

in the

compass

within

fiftyyears

West

find

we

different

places,both

has

suggested that

been

dates

in the

not

it in its

use

rush

little before
in

it mentioned

North

of

of

the

Arabs,

have

but

It

been

that

magnetized needle

dozen

Europe.

sailors may

from

earlyform

1200; and

nearly

South

and

Mediterranean

the first to learn of the compass,

could

from

they

floated

cork, because of the choppy seas; later

the needle was
balanced, as at present, on a point. In 1300
in general use.
the compass
It is possibleto exaggerate
was
of the great maritime
its importance as a cause
explorations;
it the Northmen
had made
their distant expeditions
for without
and West, and with it the Portugese crept along
to the North
on

by

water

the

west

of Africa

coast

As

period.
it

in the

last two

without

the

siderable
only slowly and timidly for a conto regularnavigation,however,
means

indispensable;and

was

voyages

now

or

came

it.

into use;

the

great extension

of commercial

centuries of the Middle

Medieval

these

were

ceivable
Ages is incon"sailing directions"

types of
manuals

the
telling

sailor about

coast, the

tides,the bottom, and other features of the

he was
of them, written
to traverse.
One
route
probably
before 1400, covered
the whole West
of Europe from Spain to
the mouth
of the Finnish gulf,enabling the mariner
who
was
(used for determining the time of
provided with a compass
tides)to navigate the coast with a fair degree of safety.
82. Limits
of early trading voyages.
Maritime
voyages
"

were

made

to

suit the

conditions

of the

time.

In

the

first

part of the
were

period under discussion (say before 1300), they

attempted only for short distances and in the part of the

year when

(November

severe

storms

11) is

to

"

were

tempt

rare.

God,"

To

sail after Martinmas

writes

an

old

chronicler;

74

HISTORY

COMMERCE

OF

a
early days of the Hanseatic League there was
not to sail after November
11,
regulationby which ships were
that time.
Some
to be in port if possiblebefore
and were
amendment
time
afterwards
was
an
adopted which allowed
ships laden with beer, herrings,or dried cod to sail as late
needed
December
or was
as
6, because the cargo was
perishable

in the

and

for the

Lenten

short.

The

of

were

and

seaports;

that

harbors, and

they

could

English town

which

flows

into
into

flows
"the

on

the

Trent, which
the North
Sea, was

Ouse, another

Ports

on

the

for

they gave

in wrecks
of

this kind

which

coast

form
to the

access

the

the

called in

at

sea,

were

of
as

distance.

the

Humber,

official document

an

York, situated
claimed
the Humber,
the
on
though it were
of

the town

branch

in their

water

little river Idle,

into

flows

Vessels

"

considerable

as

kept up.

was

modern.

coast

far

as

go

voyages

Bawtry, lying on

the

share

rightto

seaboard.

rivers for

the

as

would

great depth of

no

port of Bawtry"; and

river

the

of

far

as

go

at first

was

voyage

with

contrast

needed

ascend

So the

which

would

Normandy; the Normans

Flanders;and so the chain of

small

so

of the

extent

and

Medieval

83.

The

sailors of Bordeaux

Brittany

England

market.

those

actuallypreferredto
of modern

great harbors

without

interior markets

times,

the expense

of land

transportation,and they offered better security not

like
onl}ragainst tempests but also against pirates. Towns
Rouen
the Seine, Nantes
the
the Loire, Bordeaux
on
on
on
and
Garonne, Narbonne
Aigues Mortes ("Dead waters"), on
the great French
lagoons of the Mediterranean
coast, were
ports of the early period.
Decline

84.

of

medieval

medieval

seaports in later times.

sionally
Occa-

"

importance later;
from
the list above
select Bordeaux, and there are a
we
can
of other examples in Europe
number
London, Antwerp, and
Hamburg, for instance.
Often, however, the port was
seded
supera

port would

keep

its

"

by
trade

another

of Rouen

system

has gone

on

went
to

the

same

river but

Havre; the trade

Hull; the commerce
to

the

nearer

of the

sea

Humber

of Bremen

; the

river

has gone

The

Bremerhafen.

to

the

Belgium), once
at

of

distance
hundred

seven

Its

as

Bruges, in Flanders (modern

important port in Europe, is situated

town

of

miles

from

most

seven

far

trade

largevessels;in the same

Aigues Mortes has passed to
of maritime
85. Development

and

ideas.

medieval

voyages

sea

After

"

about

much

grew

this

be

might
is

commerce

cerned.
con-

by seaports giving easy

taken

been

to

access

and

the sea,

its present oceanic

as

has

75

TRADE

SEA

the trade

way

of Narbonne

Marseilles.

persistence of
covered
distances
by

commerce;
the

1300

greater. Galleys

were

sailed

and

there
met
Bruges, and
and East of Europe; Englishsailors
vessels from the far North
dinavian
traded regularlywith southern
France, Spain, and the Scanof transportationby sea,
countries.
The
expense
in Bruges
still great. The
price of spiceswas
however, was
it was
in Venice; and
three fold what
two
or
English wool
rowed

from

Venice

all the

to

way

transported to Florence sold there for two to twelve times as

for us, in modern
it brought at home.
It is hard
much
as
times, to realize such facts,but the student should note them
for they go far toward
ment
carefully,
explainingthe slightdevelopof

commerce

even

in the

latter

part of the Middle

Ages.

high cost of transportationis itself a fact demanding

explanation. Inefficient ship-buildingand navigation would
for it in largepart, but other factors are
still to be
account
The

considered.

These

distant

carried

were

voyages

in .the

on

dangers serious enough, but also of far

credulous
men.
greater dangers imagined by ignorant and
An
English chronicler says that in 1406, when
English ships
were
going to Bordeaux, they entered an unfrequented sea,
and
four
vessels from
Lynn were
engulfed in a whirlpool
which
it forth again
swallowed
the flood and
vomited
up
face

only

not

three

times

sober

and

medieval

of real

day.

realistic in
mariner

The

Arabian

comparison

of the wonders

Nights
with

and

the

have

been

ideas

held

dangers

of the

called

by

the

unknown

parts of the world.

86.

Piracy.
"

At

sea,

as

on

land, the

merchant

faced

76

dangers
to

HISTORY

the

which

of violence
of

growth
Ships

COMMERCE

serious

probably as

an

obstacle

gation.
physical difficultiesof navialways armed, and sailed when
possible

went

alone

were

commerce

as

the

protection. Sometimes

in fleets for better

out

OF

beat

could

off its

that

had

tured
ven-

in the

case

of

one

enemies, as

attacked
in 1391 but
trading ship from Stralsund which was
won
a
complete victory, and brought back (it is said) 100
pirates,packed in casks with only the heads stickingout, for
from
An
a
source.
bloody punishment. Pirates came
every
would
turn
ordinary merchantman
pirateif it met a weaker

vessel from

need
repiisals
England, who had

that

Dorsetshire

be

not

was

seized

and

convicted

in the

far distant

so

feared.

mariner

plundered

merchants, became

later,and

years

which

town

some

fifteenth

century

weak

so

of Winchelsea
vessel

of

mayor

or

owned

Winchelsea

by

Canterbury

in

few

abbot

forced to
plundering a wine ship and was
make
restitution.
Even
ities
ships sent out by the public authorfor protectionagainst piratesattacked
and
plundered
too.
Six
ships not only of other nationalities but of their own
ships which had been organized in 1316 to protect Berwick
from
freebooters
harried the English coast to the south, and
the fleet of the Cinque Ports (fivetowns
the EnglishChannel),
on
and attacking
used its spare time in preyingon Englishcommerce
was

of

English towns.
a
Organized piracy; privateering. Piracy became
regular profession,in which
partners organized for greater

87.

"

efficiency.The
modeled

after that

piracy; their
enemy."
Sea, and
power
sent

north

were

had

long

broken

was

was

in

against them.
attacked

were

and

enormous

"God's

friend

stronghold

and

all the

world's

at

fleet of Venetian

off Lisbon

ships,which

took

organization,
Knights Templars, for carryingon
an

Gotland, in the Baltic

and
terror to traders
fishermen; their
1394 only by a fleet of thirty-five
ships

a
a

formed

Brothers"

the

of

motto

They

of six
men

"Victual

in 1485

killed and

booty;

wounded

galleyson their way

expedition
by a piratical
over

it is said that

four hundred
the

discoverer

78

Measure

6.
of

coast

in

named,
to

show

U.

the

trade

the

Macmillan,

report
in

is

international

and

to

the

the

sea-

lake-

or

Nights,

the

difference

Cassell's

in
between

[Dictionary

of

the

(*)

paper,

war-vessel,
or

some

Sin-

Indian
N.

Mandeville,

Library,

government

of

[Voyages

de

encyclopedia,

and

ports

birth

importance.

romance

John

Sir

and

(f)

sailors.

popular

of

Voyages

in

early

of

death

the

of

position

of

gained

that

credulity

Selections

$1.50;

the

signs

those

Arabian

pirate?

them

Europe

conventional

century;

1900,

and

the

on

the

of

map

declined

ninth

What

9.

apply

and

82,

sect.

outline

using

that

Sailor
in

in

an

82,

sect.

those

COMMERCE

OF

S.

on

Write

8.

bad

distances

the
Indicate

7.

HISTORY

Y.,

$.10.]
a

teer,
privaof

manual

law.]
BIBLIOGRAPHY

Articles
John

Fiske,

shipping,
British

and
*

in

merchant

Discovery
the

by

bibliographies

Economic

service;

of

America;
Review,

Lindsay,

in

Clowes

Alice

Law,

1898,

vol.

History,

vol.

Traill's
Notes

8;
2.

Social

on

English

Cornewall-

England;
medieval

Jones,

The

CHAPTER

of

Wares

88.

"

products
familiarized

and

could

which

the

formed

basis

branches

this

exchange;
the

from

market

great

Asia

western

there

century
Venice.

of

the

by

trade

place

The

shall

we

Spices.

of

which
food

intolerably
whose

world;
condiment

table
and

the

chief

the

in

the

few

of

parts
in the

monotonous

was

diet
to

be

of

the

rich

palatable.
79

its

needed
A

one

development

into
very

world

modern
all
a

of

importance

Ages

from

regularly products
the

the

only

Europe.
important
and

tropical plants

Middle
to

fifteenth

single city
in

of

Europe

of the

imported

was

imported

and

of

the

reciprocal

were

character

product

and

of

from

the

of
the

by

flowed

materials

raw

lack

one

was

in

narrative

were

There

end

slaves

these

Asia,

was

and

very

products

people
and

At

our

the

common

appear

if it

preface

from

exported

Egypt,

of

the

or

desired

there

however,

idea

an

they

were

3,000

wares,

only

coarse

even

be

by spices, the

thrive
of the

to

Among

"

taken

was

the

give

to

description

89.

trees

of

and

Africa.

said

were

Most

direction;

and

where

in

Cairo

at

place

commerce.

which

Slaves

slaves.

was

like

which

the

In

wares

trade

in

trade

produced

were

obtained

medieval

of

colonial

countries.

eagerly

were

Oriental

an

be

cannot

climate,

severe
were

wares

Oriental

of

ware

one

the

near

which

yet

for

important

most

there

the

of

These

classes.

upper

to

because

"

The

"

distant

from

Europe

skill, and

technical

which

wares

produced

be

not

consumed,

be

to

of

imported

medieval

Slaves.

(tea, coffee, spices, etc.) have

world

class

are

of

commerce

trade.

Levant

modern

with

us

home

at

the

the

of

TRADE

LEVANT

THE

even

now.

would

seem

laborer,
parts
great

of

deal

on

the
of

staple import, then,

80

was

the

pepper,

islands of

HISTORY

OF

berry of

Asia, which

was

COMMERCE

vine
used

growing in India and

in Europe by all who

in the
could

afford the

the price
use
luxury of a seasoning. For common
was
even
Islands,were
prohibitive.Cloves, from the Molucca
more
expensive,costingtwo and three times as much as pepper;
used for seasoning food and
drink, and also as
they were

Cinnamon, nutmegs, and

medicine.

gingertook a place among

second
only to pepper.
and

kind

served

mace

medieval

similar pose,
purluxuries of this

Beside
the spices which
Drugs ; perfumes ; sugar.
were
employed in medicine
by medieval apothecariesmany
wares
were
imported which served solelyor mainly for drugs.
rhubarb, aloes,balsam, borax, gum
Among them were
tragacanth, gum benzoin, cubebs, cardamoms, camphor, etc.
the border-line
on
Sugar belongs in this list of wares,
90.

"

medicines

between
to

be

article of

an

small

pieceof

be

evidenced*

It

found

though
and

now

it

commonly

was

used

and

for

table

common

loaf sugar

its main

drink

91.

and

delicacies.

It

was

consumption, and
implied far

more

far too
the

devotion

costly
gift of a

than

would

by a present of the finest confectionery.

employment in medicine, therefore,and
in increasing
for sweetening food
quantities
the medium
preserving,native honey was

used.

Precious

general utility. Another

category of wares,
which
found
the upper
classes of mea
dieval
ready market
among
The part of Europe which
Europe was preciousstones.
now
produces a considerable quantity of these, the region of
the Ural Mountains, was
of supply
still unexplored;the source
in the New
World
of course
was
unknown; and Europe looked
entirelyto Asia and Egypt for its supply. Diamonds, emeralds,
collected in various
rubies,sapphires,lapislazuli,etc., were
hands, and
parts of the East, passed through innumerable
the jewels of some
finallyfound a resting-placeamong
great
Pearls came
lord or lady of the West.
from the Indian
Ocean,
and ivory from
Africa,through the hands of Asiatic traders.
over

articles of

stones; preponderance in general of luxuries

"

THE

Europe

able to make

was

coral

TRADE

LEVANT

in kind

return

the greater part

fisheries;

India

the

ranean
Meditercoral

European
the East, being

and

The

from

of

in
exported to meet the demand
Egypt by Spanish or Italian ships,and
to

81

"

distributed

was

carried

from

to

there

China.

reader

who

has

followed

be struck

thus

far this category

of

preponderance in it
The
of costly luxuries over
articles of general consumption.
of transportationover
great distances and through
expenses

products must

eastern

districts

the

by

of the
fact, so great that most
Eastern
had
in a
to comprise great value
wares
necessarily
small
the upper
bulk, and sought their market
only among
classes of Europe, who
could afford to pay well to gratifytheir

dangerous

in

were,

desires.
material brought
Among the raw
the East there was
only one important class of wares
served
the dyestuffs. Indigo
manufacturing industries,

Dyestuffs

92.

from
which

; alum.

"

the East
from
its name
as
(Greek, Indikon, Indian) came
implies,the chief staplefor it being Bagdad. It gives a fast
in
and
deep blue and had been imported in Europe even

ancient times ; with the revival of commerce

it became
again an article of commerce,
thereafter
substitute

as

for it the

scarlet

native

Southern
to

carmine

or

France

and

it

in

American

found

growing

blocks and
common

was

another

given

was

then

yellow dye

up

of the

the

mustard

insect

name

for

use

Middle

name

in

imported

dyes were

was

suggests

an
an

its redness

(cf.English brazier),and
was

to

in

kermes

it in fact because

Brazil-wood

ground

attempt

red dye which

The

country received its

in it.

the

of these

Brazil-wood.

stantly
con-

Europe,
Charlemagne's laws, and

from

Both

the

produced

of

obtained

Crusades
used

was

of

herb

an

were

one

like glowing coals

seem

South

dyes

Spain.

important import was

American
origin,but
made

woad,

extent, however, and

some

and

dyestuff,in spite of

of the red
family. Some
notably madder, mentioned
the

after the

later from

the

the tree

brought to Europe in
in dyeing and painting.
also
Ages, saffron,was

82

imported when
(orpiment)was
a

dye

well

as

OF

HISTORY

the best
used

as

desired,and

qualitywas
a

yellow arsenic

Lac

pigment.

for varnish.

as

COMMERCE

(shellac)was
important than

More

for

used

of the

any

pensable
to be regarded as indisalum, which came
for fixingthe color when
wool or silk had been dyed
the piece. This was
procuredmainly in Asia Minor, and was

separate dyes was

in

of the most

one

Other

93.

raw

materials

dyes most other raw

as
objectsof trade.

the

both

in its finished
in

manufacture

importance, but
where

flax,and
of
flax

were

of the

of

"

materials
Cotton

form

and

as

was

made

material.

raw

of

In

like its

nothing
established
a

The

mixture

in

cotton

present

Germany,
and

of cotton

of the raw
than the plantacotton
tions
requiredmore
southern
of
Europe could supply. Small amounts
imported from Egypt, because of the superiorquality
it

product.

however, the only

in its raw
important ware

silkworm, which
but

out

Silk- was,
very

trade.

comparison with
of industrywere
tant
unimpor(Arabic kotn) was
imported

industry.

Europe had, of course,

it was
already well

staple cloth

of the eastern

highlyprizedproducts

had

been

material

textile

The

form.

carried

for

on

which
culture

centuries

in

was

the

of

China,

possiblehad been kept a secret from other peoples,

into Europe
spread gradually to the West and was introduced
by the Emperor Justinian in the sixth century. The Arabians
introduced
mulberry plantationsand the raising of silkworms
into Sicilyand
Spain, and the culture thrived so far as to
leave a surplus for export after supplying the home
factures.
manuso

far

as

Christian
in

the

peoples,however,

did

succeed

not

so

well

yet furnish no appreciable

quantityof raw silk,and the output in Italywas unsatisfactory
both
in respect to quality and
quantity. The growing silk
its deficiencyby
in Europe had therefore to meet
manufacture
trade with the East, getting part of its supply of raw
material
from
China and Persia,but the bulk from the countries about
the

culture; France

could

as

Caspian Sea.
94.

Textile

imports ; exports from

Europe.

"

Among

manu-

THE

the

imported from

factures

Asia,

to

only

silk not

of the

princesof

the

bordering

the

in the

in considerable

tities
quan-

of cotton
skill to

of

and

compete

imported large quantities

the church

demanded

Ages

tant
impor-

manufacture

manufacture

and

East;

late Middle

the most

the technical

of
Dignitaries

cloth.

of finished

in the
but

material

raw

textiles held

export them

to

it lacked

but

artisans

the

with

East

strong enough

place. Europe was

and woolen
goods

linen

83

TRADE

LEVANT

and

the

merchant

for

clothingand for
furniture fabrics of finer qualityand of greater quantity than
established
in Spain and
the looms
by the Mohammedans
Sicilycould supply, and sought them chieflyin the countries
district
with

silver threads, and

or

Silk goods formed

satin.

of the
from

India,
animals, and

textile

cloth

glass.

Before

the end

had
to the

East.

other

and

Egypt

of the

Middle

of

throughout
tastes

among

be satisfied
Dark

the

Ages

that

that

the

shows
received

pepper,

stituent
con-

fine cottons

came

camels

Ages the Italian

the

to turn

and

other

silk manufacture

tide,and to export
this period,however,

countries.

exports consisted

As

"

Romans

its

trade

of

Roman
and

rich

stillcarried

the

these

Besides

materials:

raw

food stuffs.

1000, under

with

East

ship
the leader-

had

lasted

rule, and had cultivated

provincialswhich could only
find

continuance, we

was

of

tin),and

about

commerce

period

it

of

sole

and

and

(gold,silver,and

rich

by

the

not

them

greater part of

of Oriental

Italians.

but

hair

advanced

main

wool, hides,metals
of

brocades

as

the woolens
exported to Asia were
were
produced in England, Flanders,

more

the

Revival

often

this

textiles

the

manufactures

95.

the

linens which

common

the

from

from

Through

only European

and

chief

imports; with

strong enough

grown

From

Syria,which surpassed all

Europe depended also on the East for fine

linen

and

china

Mediterranean.

the early types of velvet

the

made

make.

of western

the

of the

great variety of silks,woven

came

gold

end

eastern

on.

evidence
A

even

document

monastery of Corby in northern

cloves,and other spicesfrom southern

in the

dated

716

France

France;

84

and

Marseilles

East.

The

HISTORY

OF

maintained

trade

in

COMMERCE

its commercial

relations with

the

this

carried
on
period, however, was
almost
entirelyby Syrians and Jews; the peoples of western
Europe had not yet learned to profitby active participation
it had
sunk
in it, and
to comparative insignificance.
The
about the year 1000 with the general awakening
revival came
life in Europe which
of economic
had for its most
striking
As the possibilities
for trade
feature the growth of towns.
for luxuries kept pace with
became
greater, and the demand
trade
felt a powerful stimulus, and
them, the eastern
grew
in
It
carried
now
was
on
importance.
rapidly
mainly by the
destined
it until the great disto control
coveries
people who were
left them
outside the path of progress,
the Italians.
in the far south of the Italian peninsula,Bari,
A group of towns
Trani, Brindisi,and Taranto, took advantage of their nearness
to the Levant
lish
(the eastern end of the Mediterranean) to estabreturned
commercial
relations which
large profitsand
of towns
developed into a considerable trade. Another
group
the Bay of Naples, of which
Amalfi was
the chief,shared
near
in the profitsof this trade, and still another
town, standing
the head of the Adriatic Sea, Venice, began already
alone near
to assume
the commanding positionin the Oriental trade which
she wras
destined to make
good against all rivals.
between
Asia and Europe.
The main
96. Routes
routes
serving as the paths of trade between Asia and Europe during
the Middle
central route,
three in number.
The
Ages were
the oldest and
for much
of this period the most
important,
the
foundation
of
began at the head of the Persian Gulf; after
the site of ancient
Bagdad near
Babylon (about 750 A.D.) it
found
there its first important stopping-place.Thence
a caravan
route
led around
and
through the desert to Damascus,
"

"

where

it branched

off to the

direction,to Egypt
this route
the
was

Middle

in the

used

was

Ages, when

it

forced to the south.

was

coast

other.

of ancient
Aside

Phoenicia

from

in

one

ruptions
partialinter-

the close
steadilyuntil near
blocked and commerce
partially

of

86

third

The

OF

COMMERCE

route, entirelyoverland, led from

mountains

the

HISTORY

the

to

from

River

Oxus,

where

it

India

across

joined by

was

China.

Branching near Bokhara, one part

left the
led to the Caspian Sea and up the Volga, another
Caspian to the north and reached Europe at the Black Sea
tain
(Trebizond,Constantinople).This route traversed high mounroute

caravan

and

passes

valuable

carriageof

the

lived

blocked

good

on

of the

assign

to

economic

would

be

life of

the

hope

the

to

Europe

Holy

the

of the

in the

; number
chief

great

interests.

Men

relief from

two

of

which

to

men

few

so

upon

them

an

life to

come

the

perilousjourney
returned.
Indirectly
it had

curiosityand

drawn

surplus energy,

of

medieval

life;ascetic

effect

can

they

could

be traced

in

the

broadened

for their

holy tasks which

The

Not

outlet

monotony

benefit of their souls.

marked

following 1100.
the

To

"

crusades

which

in this movement;

its share

the

crusaders.

part in the

centuries

two

from

sought

of

movement

peoples closer together,stimulated

imposed

about

the

ideals of this life and

vague

Land

had

commerce

For

Mongols or Tartars,
Christians;then it was

the

crusades

of thousands

hundreds

drove

with

motives

distortion

gain but

of

bulk.

kept open by

terms

suitable only for

was

the Turks.

by

Character

97.

stretches,and

articles of small

it was

centuries after 1250

who

desert

long

and
ideals

fulfil to the
increase

an

in the

pilgrimagesof individuals to holy places. The peopleof

Europe needed
only organization and a leader to unite their
scattered
forces;they found their organization in the church,
his delegates,their goal in the
their leader in the Pope and
Holy Sepulcher from the hands
were
abusing Christian pilgrims.
who
engaged
Any estimate of the numbers

deliveryof
who

guesswork. The statistics

always notoriouslyinaccurate,seem
be

must

of

the

pure

in the figuresof
unreliability

different
which

expeditions. The

started

in

1095,

was

main

the

of
to

of the

infidels

in the

crusades

medieval

icles,
chron-

reach

the

acme

crusaders

body

compared

of

engaged in the
the first crusade,

in

number

with

the

LEVANT

THE

of the

sands

seashore

the

or

87

TRADE

in

stars

heaven;

moderate

even

it 600,000 or at least 300,000 strong;

contemporaries made
perhaps it was really100,000. There were six or eightseparate
that a
to 1270, and
we
expeditionslasting down
say
may
less rather
million men,
roughly speaking,and probably many
than

took

more,

part.
aspect of the crusades.

Commercial

98.

this

of

number
have

equipment, must

of

been

great stimulus

shipping. The first

and
by land, but the sufferings

Mediterranean

crusaders
the

as

real crusaders

supplies,turning
crusaders

to

regular way
accompanied

merchants
not

driven

were

but

both

the

their

with

men,

sea

the

Even

"

crusade

to

baggage and
the growth of
almost

went

losses

were

route, and

portation
trans-

tirely
en-

great that

so

this became

ually
grad-

Italian
reaching the Holy Land.
the expedition from
the beginning,
for transportation
and
contractors
as

of

the

needs

the

and

of

successes

the

profit. A fleet from Genoa and

first crusade
along the coast of Syria,

to their commercial

accompanied the
waited
sellingprovisions. The Venetians
been
taken; then fitted out a fleet which
quarreledwith the Greeks, and in return
Pisa

until Jerusalem

had

fought the Pisans,

for very slightservices
rendered
demanded
that in every city
to the crusaders
captured they should have a market, church, and freedom
from taxes.
Whilst the warriors of Christendom
were
fighting
for glory,for kingdoms, or for the tomb
of Christ,the merchants
of Venice
fought for counting-houses,stores, or commercial
other crusaders
impulse,
privileges.""The
obeyed the new
"

the

Venetians

The

fourth

utilized it."

crusade, startings,oon after 1200,

and
captured by the Venetians
expedition for their profit. When

turned
the

time

into
for

was

fairly

commercial

startingcame,

knights,improvident as ever, could not pay the

Venice
and
used her
sum
agreed on for their transportation,
them
to aid her, first to
debtors to force them
over
as
power
capture Zara on the Adriatic,a Christian citybut a commercial
the key to the trade
rival,then to take Constantinopleitself,
the

feudal

88

of the Black

The

Sea.

it
the infidels;

OF

and

COMMERCE

crusade

merely

was

commercial

her

HISTORY

accomplished nothing against

means
by which Venice built up

colonial

empire

at

the

of other

expense

Christians.
Effect

99.
eastern

wares.

Aside

"

Italians

the

of the crusades

in

trading posts

from

the

their

building up
colonies

or

knowledge
help which

on

in the

of the East
the

fleets and

East, they

and

crusades
in

of

gave

establishing
of

were

no

less

for eastern
in
wares
importance in extending the market
and acquired
Europe. The crusaders lost their provincialism,
fashions
new
(shaving the beard and bathing);they became
acquaintedwith fine stuffs and dyes and were no longersatisfied
with the coarse
The
European vocabulary
products of home.
not largeenough to give names
to the new
was
acquisitions,
which
back
words
and
trace
to this period many
we
can

Arabic, the common

language of the
alcove, sofa, mattress, talisman, elixir;many
significance,
bazar, tariff,corvette, barracks.

borrowed

were

from

Mohammedans:
of

commercial

Not

the

only

in many

but

words

native

became

thingsthemselves

the

spread in Europe the cultivation

of the lemon, apricot,watermelon, rice,and sugar cane.
pean
Euroof the Orient,the silks of
literature described the marvels
Syria,the tapestriesof Persia, the preciousstones and perfumes
of Arabia; the names
of eastern countries became
familiar
and

the crusades

cases;

knowledge

of

geography

widened

Selectingany

1.

write

report

and

commerce

Romans,
wares,

its

the

among

more

of

manufactures,

Ure-1
Taking British
contrast

the

important wares,

production, uses, value, and

[Encyclopedia; commercial

commerce.

2.

on

one

TOPICS

AND

QUESTIONS

rapidly.

India

exports

as

then

as

an

article of

geographies; encyclopedias
those

now.

of

by McCulloch, Waterston,

characteristic
and

history as

88-94.

sects.

source

for the

Eastern

[Statesman's Year-Book,

index, India, exports.]

3.

What

seaports of those

named

in sect. 95

are

[Statesman'sYear-Book, index, Italy,shipping.]

stillof

importance?

5.

Which

6.

What

ancient

Asia

railway

books

[Consult
Where

8.

now

Jerusalem?

to

and

encyclopedia;

Palestine

by

Show

the

ancient

What

gulf.

Constantinople?]
of

trade

in

south-western

like

pilgrimages
commercial

from

railway

Persian

centers

in

line

those

Asia.]
the

of

influence?

modern

Christians

[See

Mecca

going

per

in

the

Index.]

the

of

number
number

of

(Droysen's,
each

for

the

the

manuals

history

current

to

year

abroad?

going

example),

that

route

crusaders

Americans

in

descriptions

number

of

development

the
her

comparing

and

commerce

[References

period.

found

their

importance

of

the

along

proposed

the

to

important?

showing

map

of

development

or

the

route

the

sea-route

the

crusades,

apparent.

more

11.

greatness?

most

proposed

the

note

travelers

average

atlas

crusade;

be

may

be

with

historical

each

modern

from

Prepare,

former

the

now

or

valley

of

one

Poole's

the

compare

10.

from

does

How

9.

on

of

is

in

the

by

can

What

constructed

Mesopotamian
have

96, is

sect.

atlas, and

good

description

ports left of their

routes,
been

the

through

Read

times.

of

[See

routes?

may

7.

three
have

railways

this

other

the

89

guide-books.]
of the

one

Minor

effect

have

Baedeker's

[Encyc.;

of

evidences

What

4.

TRADE

LEVANT

THE

in

in

Venice

at

power

the

period

the

two

of

dates

limiting

the

very

little

chapter.]

next

BIBLIOGRAPHY
the

from

Aside
has

appeared

Lincoln

421),

b'on

the

on

Oriental

Journal

of

chapters

on

trade

the

history of

and
and

rise

1901-2,
**

Cheyney,

subject

wares

the

Economics,
and

recommended;
the

of
routes

(Levant

commerce

of
of
16:

Eur.

wares

'the
the

munes,
Com-

Lombard

413-432

(esp.

background,
in

trade.

Levant

chap.

415-

has

two

routes

in

crusades,

in

1;

2).

The
which

be

can

excellent

chap.

Hutchinson,
Quarterly

manuals

current

English

in

reader
there

are

will

have

incidental

(* bibliography);

to

rely largely

references

Emerton,

Med.

to

Eur.

of

accounts

on

commerce:

Adams,*

(bibliog.);

etc.

the

Civ.; Robin-

CHAPTER
COMMERCE

Position

100.

trade

eastern

OF

of Venice
best

can

XI

SOUTHERN

be

EUROPE

The

earlyhistory.
"

followed

in

of the

course

connection

with

the

of the

fortunes

cityof Venice which still shows, in the splendid

palacesliningits canals,the evidence of its former greatness.
The beginningsof the cityare traced back to the period of
invasions
when
barbarian
sought
fugitivesfrom the mainland
shelter

on

the

thus

islands

protected

period, were

at

the

sea, first as

The

Italian

the

short
from

same

fishermen

distance

the
time

from

unending
forced

but

more

to

and

shore.
wars

seek
more

The
of the

itants,
inhabfeudal

their living on
as

merchants.

conquests of the Emperor Justinian (about 500 A.D.),

brought them

Constantinoplewhich were
maintained
before
Even
by trade and frequent embassies.
the year
the Venetians
1000
had won
secure
a
positionin
Constantinopleby an imperial charter which granted them,
other privileges,
freedom
the vexatious tolls and
from
among
officers. Still more
customs
delays imposed by subordinate
charter
of 1082, which
a
important was
granted lands and
buildings in Constantinople for a specialVenetian
quarter,
which

freed

into relations with

the

Venetians

from

all taxes

and

at the

same

time

required their trade rivals,the Amalfitani, to pay taxes to

them
for the rightto trade.
101.
Expansion of Venetian empire during the crusades.
Before
the crusades, therefore,Venice
had
a
commanding
It confirmed
this position by
position in the eastern trade.
series of bitter struggleswith its rivals,especially
the cities
a
of Genoa
and
Pisa which
were
rising to great prominence.
These cities imperiledfor a time Venetian
control of the Black
"

90

COMMERCE

OF

SOUTHERN

EUROPE

91

92

HISTORY

OF

COMMERCE

of the fourth
Constantinople;but the outcome
crusade
a
victory for Venice which left her supremacy
(1204), was
for the time unquestioned.
in the partitionof the Eastern
In the share taken by them
that common
is
which
sense
Empire the Venetians showed
always found at the bottom of all their actions. They left to
the crusaders the inland
provinces and took for themselves
and
islands which
the coast-towns
mercial
promised the best comtrade

Sea

at

and

returns

easiest

were

itself they took

defend.

to

nople
Constanti-

In

large part of the city,in which their

podestatruled almost as an independent sovereign. At places
the all-important
route
to the East, in the
sea
commanding
Peloponnesus or Morea, in Crete and in Euboea, naval stations
established
under
the control of officers sent out by the
were
The
strict rules by which
these officers
home
government.
which
existed
were
governed givesan insightinto the discipline
In every
in the Venetian
foreign service.
place in which the
founded
their capitalwas
Venetians
surrounded
a principality
by Italian colonies;there where one found formerlyonly nests
the terror
of Venetian
of pirates,
found now
one
commerce,
friendlyports, refuges fortified and secure, where Venetian
could ask
captainsand merchants, certain of a good reception,
asylum and protection.
Extent

102.

the

trade

of the

Britain

Great

of Venetian

which

empire

they
eastern

done

followed
since.
for

commerce.

established

than
efficiently
of the

commerce
was

narrower,

the

the

established

Central

more

her colonies

of the

eastern

merchants

Asia

through

or

this

pay

recognition of

Mediterranean

Crimea.

So

and
into

bold

teenth
nineand
never

ciently
suffitheir

shrift.

be

penetrated deep
the

has

given short
trading factories

to

nial
colo-

controlled

flag" in those earlytimes as it

Foreigners might trade if they would

along the shore

Sea; Venetian
into

to the

Venetians

operations

without
privilege;
inferiority
they were
publicenemies

Venice

the

the world

field of

Thanks

"

Mediterranean

has controlled

century; the
"trade

not

the

only
Black

Russia, and
were

their

94

they sold
well

as

studied

HISTORY

their Oriental
the

as

COMMERCE

to other

wares

material

in connection

OF

character

with

the two

This

Europeans.

of

the

commerce,

great branches

TRADE

policy,
be

can

of Venetian

ROUTES

BETWEEN

AND

GERMANY

The

different routes
used

besides

importance
thirteenth

trade
the

in

sea

105.

varied

those

in

importance

indicated

to Venetian

on

trade

at different

periods, and

The Brenner
the map.
Gothard
the
Pass
St.
;

Pass

not

was

some

was

ITALY

routes

always

were

of great

opened until the

century.

Europe,
commerce

Overland

the overland
with
trade

northwestern
with

with

commerce

Germany,

and

Europe.

Germany.

"

As

the

Venetians

OF

COMMERCE

SOUTHERN

95

EUROPE

easier to
essentiallya sea-faringpeople,and as it was
southern
the large cities of central and
reach
Germany by
land than by sea, they took the passivepart in their German
and allowing the Germans
to come
to
trade,staying at home
for wares.
The
them
trip overland from central Germany
little less;trade letters of the
took
or
a
roughly two weeks
were

fifteenth

century

were

month

or

more

on

the

way

between

chosen according
Bruges. Different routes were
of the journey. The chief route was
to the starting-point
that
leadingover the Brenner, one of the lowest of the great Alpine
Venice

and

passes,

lying between

in

Augsburg

and

Germany

Verona

in

struck off to the East

Italy; but very often the merchant
into the valley of the Drave
before reaching Verona
the
or
Brenta.
Coming from the East, from Vienna, for instance,the
Semmering pass was
commonly chosen.
Strict control

106.

On

reaching Venice the

supervision. He could

merchants

German

over

merchant

put

was

choose

his

at

in

Venice.

under

once

"

strict

lodgings,but must
dei Tedeschi"
stay at the "Fondaco
(German factory,using
that word
in its earlier sense
of a trading post). This was
a
used as a
building(in its later form a handsome
palace now
office)which belonged to the city,and which
government
served

at

once

as

the trade.

and

given

which

as

a
a

own

hotel,a warehouse, and

When

room;

served

not

merchant

careful

basis

list

for

the

an

arrived he

was

trolling
con-

disarmed

of all his wares,

made

was

office for

dues; and

government

an

This
inspectorwas
assigned to him.
inspectoracted as an
and
make
his
interpreter
as
a
broker, helping the merchant
bargains,but it would be a great mistake to suppose that he
the merchant's
was
appointed mainly to serve
convenience;
his main
business was
"shadow"
the merchant
to
constantly,
to see that he broke
of the numerous
none
regulations
designed
to

assure

to

the

its dues

government

people their profits. Germans

wares

of their
the

own

Venetians

could

country and
wanted

to

and

bring to

to

the

Venice

of northeastern
carry

on

Venetian

themselves

only the
cause
Europe, bethe

trade

96

with

HISTORY

Flanders; Germans

OF

could

COMMERCE

trade

with

other

foreigners
not
trade even
in Venice, and
themselves,in
among
order that the Venetians
might have the sole market; they
sell out their whole stock in Venice, without
must
the option
of withdrawing part of it and
carrying it further. One is
to Venice
at all,
to
came
tempted to ask why the Germans
submit
restrictions. The answer
is easy; they
to such severe
had no other placeto go to, for the wares
Thanks
they wanted.
to her positionand to her skill in trade and war
Venice had a
which
enabled her for some
time
monopoly of Oriental wares
what
to make
regulationsshe pleased without fear of losing
no

could

her customers.
107.
"

The

estimate

Importance of
German
of the

trade

the trade
in

Venice

between

Venice

amounted,

fifteenth century, to

and

Germany.
according to an

million

ducats

worth
considerably more
period was
with
the
than
the
modern
dollar. It supplied Germany
which we
have alreadyenumerated, and,
coveted eastern wares
with some
of the productsof Venetian
manufactures,
moreover,
which
then highly developed and which
stimulated
were
were
manufactures
included
glass,
by protective tariffs. These
of the city,fine textiles,
which is even
now
a specialty
weapons,
the
other
furnished
The Venetian
trade, on
hand,
paper, etc.
for her metals (gold,silver,
to Germany a market
iron,copper,
of leather
lead, tin),furs,twine, rosaries,and manufactures
textiles.
and horn, and the coarser
With
Commerce
108.
Europe.
by sea with northwestern
the countries west of Germany Venice
carried on an "active"
that is,instead of waiting for foreignersto come
commerce;
to them, as she could well do by
to her she brought the wares
The crusade of 1204, to which
have already
the sea route.
we
referred as
a
turning-pointin Venetian
development, was
composed in large part of knights from northwestern Europe,
and the relations established then with Flanders, Champagne,
continued
and neighboring districts,
were
by trade. The first
in English documents
is dated
reference to Venice discovered
and

the

ducat

of

this

year,

"

COMMERCE

1201, but

before

commerce

with

the

grown

up;
of wool

at

century
one

were

brisk

time

in the

found

in the

trading companies. The trade followed

took to the sea,
across
France, but soon

land route

it
wholly abandoned
less important and was
became
discouraged by specialdues.
109.
Regulation of this commerce
galleys.
; the Flanders
Soon after 1300 the government took charge of this trade and
followed for the two
regulated it on principleswhich were
it remained
hundred
important. Separate
years during which
merchants
a
as
rule,prevented, and Venetian
were,
voyages
in the trade must
who
wished to participate
join in the fleet
of "Flanders
galleys" which sailed at intervals (usuallyonce
On
a
year), as the opportunity for trade seemed favorable.
and

the

thirteenth

2,000 sacks

over

Italian

possessionof

had

97

EUROPE

SOUTHERN

close of the

England

reign of Edward
at first the

OF

though

land

traffic

was

never

"

these
of

occasions

galleysfor

the

the

Venetian

voyage,

voted

senate

and

auctioned

certain

off the

number

rightto freight

and carried
galleywas propelledby 180 oarsmen,
for its protection
a force of archers commanded
by four young
who
sent out that in this way
were
they might see
patricians
their native city. The cargo was
the world and learn to serve
carried on the account
of privatemerchants, but the supreme
control of the fleet was
vested in a captainappointed by the
Each

them.

Venetian

government,

and

bound

to

follow

its instructions.

occupied the greater part of

and traded at many
a
ports along
year, as the galleystouched
the way.
The
route
generallytaken included the following
Capo d'Istria (Pola),Corfu,Otranto, Syracuse,
stopping-places:
Messina, Naples, Majorca, the principalports of Spain and
In the EnglishChannel
the fleet divided,
Morocco, and Lisbon.
some
galleysgoing to Southampton or London, others to
with it by a short canal),
Sluys (the port of Bruges, connected
the city
Middelburg,and Antwerp. The chief objectivewas
of Bruges,the great market
where the trade of northern Europe,
in the hands
of the Hanseatic
merchants, and the trade of
southern Europe in the hands of the Venetians,came
together.
The

voyage

to

Flanders

and

back

98

COMMERCE

OF

HISTORY

and
Development of other cities in Italy; freedom
in
vigor of their policy. Space forbids the consideration
of which
detail of the historyand policyof other Italian cities,
attained
to the first rank in commerce,
some
rose
though none
110.

"

to the

in the
with

The

greatness of Venice.

peninsulaenabled

an

eye to its own

free themselves
in

an

from

each

lack of

city to

interests.

The

the laws and

earlier time, but which

central

frame

its

government

policysolely

Italian cities
that had

customs

lay like fetters

on

were

been

able to
sary
neces-

developing

industry. The cityof Florence,for instance,showed

in its policyregardingland tenure, industry,domestic
a liberality
modern.
The
which
and foreigncommerce,
was
strikingly
result was
an
extraordinarily
rapid development in commerce,
manufacture
and
finance,but also,unfortunately,a jealous
the cities,
which
expressed itself not only in
rivalrybetween
commercial
competitionbut also in destructive wars.
Genoa.
111.
Genoa, situated in a positioncorresponding
to that of Venice
the other side of the Italian peninsula,
on

trade

and

"

grew

great like her in the

with

Pisa, which

Genoa

was

in 1284.

had

of the

course

become

crusades.

In conflict

threatening commercial

complete victor by the

Against Venice the citywas
a

naval

victoryof

not

fortunate.

so

rival,
Maloria
Genoa

part from the blow dealt her by Venice in the

fourth crusade, when
re-established
at
the Greek empire was
some
Constantinope(1261),and won
important naval victories
in the constant
succession of wars
culminating in the battle
recovered

of

in

Chioggia in

The

Genoese

managed always to secure

share of the Oriental
a
trade; they helped to establish the
to
the
system of joint stock companies; and contributed
They lacked,
development of banking and public finance.
however, the advantages of the Venetian situation,both as
regarded their opportunity for trade and their capacity for
defence.
They were drawn into the net of continental politics,
and as at home
shown
tians
of the Venethe ability
they had never
to pacifyor to crush rival factions,
wasted
their force was
in useless political
conflicts.
1380.

OF

COMMERCE

Inland

112.

cities;Florence.
and

of Venice

by industry

The

chief commercial

after

until

carried

on

Great

for

at

years

and

of

of

and
banking institutions,

regal position
113.

the

On

home,

at

great

in

seaport of its

no

Pisa

and

its chief

houses

time, and

ports
sea-

sold

up

the

raw

Bruges, or
finished product
amount

city stimulated

of

facturing
manu-

the

development
bankers
gained not only
voice in
a
commanding

Florentine
but

product, wool

like

the
The

own

Leghorn, it

bought

markets

agencies.

in the

commerce

international

in

settled

network

similar

two

Italy grew
at this period, notably Milan.
interior,however, was Florence

trading

the

cities of northern

commerce

through agents

traveling
through

other

commerce

extensive

an

material

Besides

"

99

EUROPE

cityin the
had
Italy. Though Florence
it overpowered
1400, when

silk textiles.

and

Genoa

and

rich

in central

SOUTHERN

also

politics.

Other

Mediterranean

Mediterranean

cities;Marseilles,Barcelona."
of

the

France

only great port at

this period was
Marseilles,which had developed rapidly in the
It exported to Italy and
of the crusades.
the
East
course
French
textiles (woolen and
linen),wood, metals, wine, oil,
soap,

etc.

In

Spain
point which

contest

between

the

the

parties,and

developed

far above

was

Toward

of

had

the Arabs

states.

One

coast

close

them

an

of

and

contemporary Christian
Middle
Ages, however, the

the
the

actual

Christian

of

the

decline

city, however, Barcelona,

and

of civilization to

that of the

peninsula absorbed

caused

the arts

the

premacy
kings for the subest energies of both

in material

carried

on

very

civilization.
extensive

important ports of the

Mediterranean.
Its
inhabitants
freedom
enjoyed unusual
under
the kings of Aragon and were
the
reputed to be among
best sailors of their time; they had trading stations along the
of the Mediterranean
coast
far as Egypt and
as
Syria, and as
commerce,

merchants

or

was

one

most

piratesfrequented the

Grecian

archipelago.

100

COMMERCE

OF

HISTORY

TOPICS

AND

QUESTIONS

in

Study : (a) the positionof Venice

of the site of the city; and
peculiarities
the history of Venice
of these factors on
1.

Lloyd

toward
Oil

periods.
in

Company.
Oil

cyclopedi
[En-

stantinopl
Conthe

[See

Company

by

Make

Venetian

showing

map

trade

[Falkner, Statistical Documents,

century.

and

relations

for

in

further

the

formation
in-

fifteenth

V.]

of commercial

the account

Summarize

in respect to

sea-empires

(a) extent, (b) duration, (c) policy. [See chapter 2,

Venetian
on
history see Brown.]

5.

influence

Amalfi

Standard

the Athenian

and

Venetian

the

Compare

4.

the

on

its different

(6) the

Tarbell.]

or

3.

report

in

of the

in accounts

rebates

of railroad

account

write

policy pursued by Venice

early policy of the Standard

the

to

Mediterranean

the

Compare

2.

the

transactions

at

that

period.

[Same.]
Write

6.

report

Hist,

[Cf.Beckmann,
Write

7.

Palgrave's Diet., or
9.

What

resemblance
Boer

of the

can

contributions

book-keeping.
1-5.]

banking. [Encyc.,

to

of

find

you

between

policy toward

English

accounts

of conditions

many

to

Library, vol. 1, pp.

banking.]
English equivalents of the Italian

out

one

the

of the Italians

Bohn's

their

on

history

some

Write

and

inventions,
report

8.

Germans,
[See

of

similar

the contributions

on

words

Venetian

in the

South

in sect.

policy

African

preceding the

103.

toward

Republic?
in South

war

Africa.]
10.
route

of
11.

the

From
the

Flanders

Write

centuries

descriptionin

the

Middle

Burckhardt, Civilisation
12.

Write

109

draw

on

an

outline

in

Italy

the

map

galleys.

report

of

sect.

report

report

on

the

politicalconditions

Ages.
of the
on

[Current

manuals

of

Renaissance, London,

the

rivalry of Venice

in

European

the

last

history;

1878.]

and

Genoa.

[Brown,

Venice.]
13.

Write

on

the

chief

periods

in

the

history

of

Genoa.

[Encyclopedia.]
14.

of

Study

the

commercial

and

history of

the

politicallife

Medici
in

family
Florence.

as

showing the character

[Encyclopedia; various

biographies.]
15.

Write

Barcelona.

brief report

on

[Encyclopedia.]

the commercial

history of Marseilles

or

of

XII

CHAPTER

Medieval

these

localities. We
the Flanders

and

every

or

less share

for

period,and

of

on

Levant

site
oppo-

trade

of

cities

confined

not

course,

"

German

to

merchants

refer the

must

the

of

commerce

of

reader

in the

commerce

that

to

description

which

countries

are

not

in detail in this sketch.

treated

Conditions

115.

of the

of

idea

some

North.

the Hanseatic

by

on

general character

the

however,
medieval

in the

alreadyhow

seen

and

galleysunited the North and South of Europe;

of the present European countries took a greater
scribed,
We
have already dein the exchange of wares.

and

one

Europe,

was,

have

South

highest development

carried

trade

Commerce

North.

of the

in

its
of

continent

in the

and

South

EUROPE

commerce

reached

commerce

sides of the
the

of

Development

114.

NORTHERN

OF

COMMERCE

northern

the

and

trade

material

the countries

wares

present

of the Baltic
contrast

of eastern

trade.
to

those
In

commerce.

"

the

The

wares

which
first

nished
fur-

place

and the
Europe found in Scandinavia
Northeast, which formed the tradingground, peopleswho were
their industrial inferiors;
these peoples were
glad to receive
manufactures
instead of supplying them.
Secondly, the cost
of carriagewas
much
less in the North than in the South, not
almost
only because transportation was
entirelyby sea and
over

much

of central

shorter route, but

also because

less than

Asiatic

in

therefore,to trade

the
in

bulky

the

tolls

countries.

articles of

on

trade

were

possible,
comparatively small
It

was

value.
The

exports

luxuries
were

which

formed

large a part of the

scarcely represented in the northern
so

102

eastern

trade.

COMMERCE

Amber

be

can

OF

NORTHERN

though the trade in it

put in this class,

great importance; this

no

found

the

on

was

which

in the

form

item

of candles

was

for
of

luxury, since

as

used

was

of

was

which

resin

considerable

more

perhaps, be regarded

employment

fossilized

Baltic,and

far

was

may,

its chief

of the

coast

Wax
which

103

EUROPE

ments.
orna-

export,
it found

in church

used

services.

Most

from

Exports

116.

of the

the

exports from

Baltic,mainly
northeastern

serving the simpler needs

fish took the first place.
the

herring,which

the

North
to

summer

Sea

and

the

Swedish

in dried

trade

the

does

not

the

open

salted

rules of the church.

but

Northeast

had

no

in its furs it had

highly prized. The

the

of which

use

as

for their

comfort

outside

skin

as

stuffs
the food-

fifteenth century
the

each

waters

of

in late

year

of the

The

this time

at

of

was

course

foodstuffs

whole

lation
popu-

Roman

Catholic,
stimulated
by the

exported were

honey,

textiles to offer to the rest of

for them

substitute

not

that

were

desired
Houses

as

if it

were

Oth,erraw

hard

as

to

come

upper
much

Europe,
most

was

finer

varieties,
classes,but also

for their warmth

poorly heated that

stand,
clothing. We can underGerman
bishop who said
the possession
of a marten

were

into

which

only the

restricted to the

appearance.

strive

so

everlastingsalvation."
skins
exported were
forestryproductswhich

materials

industry,and
mainstay of the

of timber

came

coasts

impossiblewithout thick
therefore,the complaint of a

"we

be the

range

was

that

animal

the

commerce.

furs included

was

grades

common

Until

terials
ma-

salt meat.

butter,and
The

Other

raw

"

"

Baltic;and
one
fish,especially
herring,was

of western

and

were

Among

man.

ocean,

of northern

Europe was
the consumption of fish

Europe

of

German

and

and

of the chief branches

now

materials.

raw

and
were

tallow from
destined

Baltic trade in later times,various

to

forms

later as "naval
products known
stores,"includingpitch,tar, and turpentine.
the West
In
to the Baltic countries.
117. Exports from
and

the

group

of

"

104

return

for its

imports

the

manufactures,
West

of the

merchants

The

beer.

and

list includes

The

among

and
which

products

raw

Northeast.

metals, and,

wheat, wine, salt,and

cloth
"especially

the

in

obtained

be

"could not

the

and

Russia

to

sent

Europe

western

its manufactures

"Scandinavia

COMMERCE

OF

HISTORY

ducted
con-

districts and
only between their home
these countries;
the less developed countries,but also between
they carried herrings,for instance,from Scandinavia to Russia.
cities in
of the history of the commercial
Contrast
118.
took
The
cities of Germany, which
Italy and in Germany.
for trade in the North, were
.advantage of the opportunities
from
like those of Italy in their freedom
royal authority.
There seems,
therefore,a chance that they might fightamong
of them
for the trade, and that one
themselves
might get a
trade

the

not

"

did Venice

"commanding positionas

in the

the

them, however, had

South.

peculiaradvantages
from
freedom
attacks by

positionand the
enjoyed. They were
question of supremacy,
attacks

of feudal

among

themselves.

Hansa

or

commercial

in

meant

League, which

association of the
of the

Rise

119.

that

Instead

Hanseatic

applied to a number
particular
leagueto
^p graduallyin the
merchants

medieval

of

thirteenth

and

word

"hanse"

men,

and

This

fourteenth

was

the

besides

associations

apply it here.

we

remarkable

most

The

"

of commercial

league grew
The

centuries.

to unite
it necessary
for the protectionof their interests abroad, and the beginnings

"of the

of various

quicklythe

period.

League.
society,a band

which

the

was

Hanseatic

early German

Venice

they ran such dangers from the

they could not afford to quarrel
of competing they united, in the

and

lords

which

land

of

one

geographical

to settle

evenly matched

too

of the

No

association

Baltic and
considerable
the

in the

association

which
in the

centeringin

cities found

found

in the

cityof London,

trade.

countries,and
up,

are

German

the

After

their

island

where

of

Gotland,

Germans

carried

while the cities at home

merchants

fourteenth

had

century

in the

started

on

took

up

in

foreign
great league grew

cities at the southwestern

corner

of the

COMMERCE

OF

NORTHERN

105

EUROPE

the chief. Sailors were

Liibeck
still
was
Baltic, of which
around
afraid to navigate the waters
Denmark, because of the
and shoals,so Baltic wares
carried
were
dangerous currents
cities like Liibeck
the isthmus, and
across
great on
grew

this trade

and
Extent

120.

ambassadors
were

asked

that

on

for

the

the

Elbe

valley.
"

When
League.
League in England in

Hanseatic

list of the

down

came

organizationof the

and

of

which

members

who

the

"

made

up

1376

their vast

scornfullythat surely even

they
themselves
could not be supposed to remember
the countless
of towns, big and little in all kingdoms, in whose
names
name
in fact very
extensive, for it
they spoke." The league was
included not only the chief German
seaports, but also towns in
the interior and
outside of Germany altogether.
towns
some
The number
varied from time to time; in the period of greatest
it was
in modern
nearly 100, stretchingfrom Dinant
power
and
in the East, and
Reval
Belgium to Krakau
including
far inland
towns
as
as
Gottingen in Germany. The towns
formed
never
a
very close union, but sent their representatives
they could discuss
every year or so to a meeting-placewhere
of common
the policy to be
matters
interest,decide upon
followed,and raise what resources
they could for carryingthe
policythrough.
121.
Control
of the commerce
of northern
Europe by the
the protectionof commerce
The aim in general was
League.
from the attacks of piratesand feudal lords and the negotiation
of commercial
treaties which
extend
would
the privileges
of
and
members
The
their monopoly of trade.
League
preserve
successful that it obtained
in the closingcenturies of
was
so
the Middle Ages a predominance in the commerce
of northern
Europe comparable to that of the Dutch and of the English
association,they

answered

"

in later times.

other

peoples.

In
In

the

West

this direction

of the

at
voyages;
Venetians,coming in the

many

many

wares

from

it had

western

that

to

Bruges
port the

Flanders

Europe.

share
was

its trade

the terminus

was

of

met

the

secured

also

Hanseatics

galleys,and
This

with

by

no

means.

COMMERCE

OF

107

EUROPE

NORTHERN

They had an
however, the limit of their western
voyages.
important trading station in England, with a great group of
London
bridge,and invested
buildings,the "Steelyard" near
of their favorite voyages
their capitalin English tin mines; one
of the Loire,on the western
coast of
to Bourgneuf, south
was
their

France; and they sent

Spain and Portugal.
North

The

and

greatestsuccess.
Russia, they gained
those

the

trading for them,

easilyforced

do

to

and

were

the

as

however, the field of

Iceland)and
(including

were,

of commerce;

complete monopoly

countries

Germans

Europe

far

periodsas

some

In Scandinavia

their

peoples of

of

East

ships in

that

backward

so

they

important part

most

the governments

were

the

weak

mitted
per-

of their

and

were

desired.
grant the privileges

to

The methods
which
trading; factories.
the Hanseatics
employed in their trade are worthy of special
characteristic
of the time, being
attention,because they were
in the East, and because
very similar to those of the Venetians
Methods

122.

they

have

of

been

"

employed
established

periods. They

under

"factories"

posts (notmanufactories),where
on.

factory

merchants

could

was,

be

in the
safe

similar

most

in the

sense

of the trade

first place, a
from

conditions

fortress

in
of

later

trading
carried

was

where

the

attacks

by the natives; at
enclosed
Novgorod, for instance,the group of buildingswas
and
and by great watch-dogs
was
carefullyguarded by men
both
day and night. The factory was, moreover,
a
place
where

the trade

could

be

pleased

kept

could
under

would

be

regulated,and where the merchants

trade as he
supervision. To let a man

have

subjected not only himself but all his

compatriots to danger, for the natives made littledistinction
between
and would
foreigners
chant
readilyhave punished one merfor the
social

fault of another.

with
life,

The

their

factories

were

rough initiations and their

in training
in commerce;
men
young
such strict discipline
and minute

they were useful

were
kept under
that they seem
like garrisonsin

the

centers

games,

of
and

but they

regulation

enemy's country.

The

follows

map

sale

to

manufactures

123.

contemporary

and

(textilesand

Flanders

the commercial

Venetians

COMMERCE

which
were
brought for
description of the wares
and those difficult
of the less important
Flanders, omitting some
the map,
identify. Of the countries left blank
on
Italy excelled in

Bruges

to

OF

HISTORY

on

and

glass), and France

Bruges.

control
the

other

of the

lay a

"

had

notable

Hanseatics
sort

the

Between
on

of neutral

parties met, centeringin the region

about

This

the

district

was

favored

not

only by

trade in wine.

export

one

regions under
side and

zone

where

the
both

modern

Belgium.

junctionin

it of the

110

OF

HISTORY

COMMERCE

part of the Middle

Ages a still
more
important monopoly, that of wool production. Sheep
were
raised,of course, in other parts of Europe, and the merinos
of Spain yieldeda finer grade of wool than could be produced
in England. For some
however, the sheep industry
reason,
did not prosper elsewhere as it did in England. Possiblythe
and

added

constant

to this in the latter

wars

and

raids

which

disturbed

the

feudal

states

of

modity
prevented the production of a comwhich
could be so easilydestroyed or carried off as
settled political
conditions in
booty. At any rate, the more
became
soon
a
rare
England, where internal war
exception,
the
national
Aided
favored the development of all
resources.
by the prevalenceof peace at home, and by the disappearance
of feudal tolls on trade, the English advanced
rapidly in the
and
instead
of exporting
fourteenth
and
fifteenth centuries
the raw
wool
it into cloth and to export the
began to make
finished product. Trade was
furthered also by the continental
conquests of English kings, which brought England and the
South of France
into close relationship,
and
built up a large
import trade in French wines.
126.
English trade passive until the close of the Middle
Most
of the trade in English wares,
in
Ages.
however, was
the hands
of foreignersuntil the very
close of the Middle
interest in the developAges. The Englishkings showed more
ment
of their resources
chants
by the encouragement of alien merthan they showed
in the extension of commerce
carried
on
Hanseatics
and Venetians
fetched and carried
by natives.

the

continent

may

have

"

the

of distant countries

chants
English; and the "Merof the Staple," a societycomposed largely of aliens,
enjoyed a legalmonopoly of the export of the most important
materials which England suppliedto European commerce
raw
wool and sheepskins,
leather,tin,and lead.
became
English merchants
restive in the inferior position
assigned to them both at home
and
abroad, and before the
end of the Middle Ages began to
fightfor equal rights or for
but they did not secure
privileges,
final and complete victory
"

wares

for the

OF

COMMERCE

until

the

of

beginning

NORTHERN

the

111

EUROPE

modern

the

in

period,

sixteenth

century.
AND

QUESTIONS
Pursue

1.

(sects. 88-94) for the

at

consult

present

The
the

history
article

the

of the

has

Levant

been

2.

Origin of the Hanseatic

3.

What

place

does

[Statesman's

What

4.

have

effect
the

upon

5.

Elbe-Trave

city?

of

table

Canal,

modern

in section

June

opened

S. Consular

[See U.

as

11-29.]

pp.

commerce

last

Germany,

Sweden,

or

many?
Geron

merce.]
com-

16, 1900,

reports and

papers
news-

the

of

organization

the

Hanseatic

and

League

of

the

empire.

6.

Report

7.

Write

in detail

[Zimmern,
an

of the

organization

the

on

essay

League,

and

its weaknesses.

the

life

Hanseatic

of such

in

Hanseatic

[Zimmern,

factory.

London.]

179-201,

Compare

[Descriptions

the

on

202-220.]

Bergen;

137-147,
8.

of the

the

trade

Baltic

date.]

Contrast

Venetian

the

in

of the

prehistoric times.

[Zimmern,

hold

suggested above

interesting study,

an

since

League.

Year-Book,

future

that

about

may

those

index, Norway

made

commerce

Liibeck

may

be

to

character

Year-Book,

in amber

object of

an

the

For

wares.

Statesman's

trade

similar

studies

114-117

sects.

on

TOPICS

posts

can

with

factory
be

found

Indian

an

trading post.

of the

in histories

Hudson's

Bay

Company.]
Write

9.

commercial
10.
commerce

report

rise and

fall of

Bruges

or

of

Antwerp

as

[Encyclopedia.]

center.

Write

the

on

report

on

one

of the

following topics in English medieval

(a) Exports.
(6) Imports.
(c) Shipping.
(d) Attitude

of

(e) Institution

the

[Sufficient material
Growth,
more

and

benefit

if the
than

in the

king.

of the
on

student
in

smaller

Staple.
all these
is able

abstracting

manuals.]

points
to

the

use

may
a

book

summaries

be

in

found
like

that

(often

Cunningham,
he

will

inaccurate

get far
or

leading)
mis-

112

COMMERCE

OF

HISTORY

BIBLIOGRAPHY

For

general

Gross,

consult

bibliography

and

Sources,

Palgrave's

Dictionary.
General

League,

in

It

For

are,

descriptions

Growth,
of

course,

or

to

English

articles

be

sought

in
in

in

found
Hansa

includes

of

the

be
**

Zimmern,

recommended.

**

will

accounts

and

map

En

Towns,
and

in

Traill's

Social

already

this

article

Brit.,

book

which

illustrations,

commerce

manuals

eye.

period

England.
mentioned.

can

but

has

see

Hanseatio
be

no

strongly

raphy.
bibliog-

Cunningham,

Briefer

accounts

CHAPTER
OF

DEVELOPMENT

THE

XIII
ORGANIZATION

MEDIEVAL

OF

COMMERCE

of

Types

127.

has

Enough

medieval

said to

already been

that great wholesale

idea

in the

common

the artisan

who

collected

who
about

in

that

which

Middle

merchants

Ages.

manufactured
a

pack

stock

of

carry

modern

regular type

the

The

"

of the

The

type

of trader
the

goods he sold,or
in

goods

for sale.

would

he

pedler, shopkeeper.
guard the reader against the

traders ;

and

town

pedler'sstock

around

the

pedler

carried
not

was

them
unlike

country nowadays,
An

sewing materials, toilet articles,etc.

was

were

illumination

in

"

manuscript of the fourteenth

century, representingmonkeys
vests, caps, gloves, musical
opening a pedler'sbox, shows
hats, cutlasses,pewter pots, and
instruments, purses, girdles,
other articles.
An
English statute of the fourteenth century,
describinga similar stock in trade, mentions rabbit skins as
in exchange for
the pedlers took
of the articles which
one
them
of the period accuses
their wares,
and an English author
of catching cats for their skins.
The
petty shopkeeper stood
the pedler. He
had a regularshop in a town,
a
step above
where
and
often went
he displayed his wares,
on
trips to the
markets
on

such
128.

of other
trade

as

he

towrns, where

"

up

booth

and

carried

regulationsallowed.

the town

Merchants.

set

Still another

step

above

the

keeper
shop-

merchant, who had his warehouse, from

which
who
he supplied the retail traders, and
bought up
considerable
quantitiesof goods at the great fairs at home
was

and

abroad.

in northern

the

real

It is doubtful

Europe

any

men

whether
who
113

we

devoted

can

find in this class

themselves

entirely

114

HISTORY

OF

COMMERCE

V
RELATIONS

TRADE

A GERMAN

MERCHANT
14OO

About
.SCALE

See

section

128

his German

of each

town

for

description of the trade

business, and

OF

The

MILE8

map

shows

only

roughly, by the size of the circle, the importance

routes.
dealings. Note how trade tended to the water

indicates

in his commercial

of this merchant.

OF

MEDIEVAL

to

wholesale

that

each

ORGANIZATION

trade; and

to

Geldersen

and
of

wealth

and

sold
his

had

so
yet specialized

not

exclusivelyto the trade in a

illustrate the point by a German
We
can
books
have
been
account
preserved so that
follow his business
operations exactly. Vicko
he
was
rose
a
draper of Hamburg, where
high position. He imported cloth wholesale,

would

particularware.
merchant, whose
it is possibleto
von

merchants

115

COMMERCE

OF

devote

it both

himself

wholesale

retail.

and

But

he

made

use

the great cloth

Bruges, which was
market, to send there for sale iron,honey, meat, butter,etc.,
and
to import such
wares
as
oil,spices,figs,and almonds,
which
he sold to smaller dealers in many
cities of Germany.
of the class to which
the
Vicko
Members
belonged were
leaders of commerce
in the North
of Europe during the Middle
wealth
which
seemed
Ages; they accumulated
great at the
aristocratic class in social and political
an
time, and formed
life. Their sons
were
brought up to follow the family business,
and

connection

often

with

trained

it

to

by

extensive

study

and

residence

in

foreigncountries.
129.

Development

of commercial

association

in the Middle

beginnings of that
of association
which
be traced step by step to
can
process
the formation
of the great "trusts"
of the present day, and
which
forms one of the most important features in the development
of commerce.
To
point out the various advantages
which arise from the association
of laborers and of capitalists
would
lead us into political
and to describe in detail
economy;
the development of the various
of association would
forms
into legalhistory equally out of place.
require an excursion
We
must
content
ourselves
with indicatingsome
of the main
features,which are easilyintelligible.
The
need
of association
in the Middle
felt especially
was
his reprethat a merchant
Ages because it was
or
sentative
necessary
Ages.

"

In

the

should
often difficultfor
'in person;

Middle

Ages

his

accompany
a

merchant

he could

not

we

find the

wares

to look

trust

it to

on

after
a

the

road.

commercial

hireling;and

It

was

venture

the slight

COMMERCE

OF

HISTORY

116

professionmade
development of the carryingand commission
it to a class of persons
who
to leave
it impossiblefor him
nowadays make it their business to attend to
The
merchant, therefore,would associate with
could representhis interests;and

who

modern

such

matters.

him

some

author

one

asserts

of business
more
comparison with the amount
many
commercial
companies were formed then than at present. The
of his family,
would choose by preferencea member
merchant
form of association
the prevailing
and family partnerships
were
the growth of commerce,
first. With
at
however, greater
in

that

of association

freedom
to be

limited by considerations

more

or

home

still another

could

advantages

of this

the

benefits

person

who

are

A
of

advanced

could
a

man

who

attend

to

had
age,

"

sales in

distant

but

it in commerce,

contributed

to the

who

would

the
enterprise

perhaps

city.
of

The

capital.
account

on

other

or
physicaldisability,

at

less importance

of not

wealth,

stay

and

the better utilization

accumulated

employ

would

the wares,

apparent, and

are

ceased

group

relationship.
By joiningtogether,two

accompany

arisingfrom

himself

not

could

another

while

the

follow different lines;one

could

men

of

of association.

Advantages

130.

and

demanded,

was

circumstance

joinwith

him

business

necessary

activity.

Capitalists
gainedalso
by

association

in another

to share the

put all his money

into

risks of

an

ship or cargo ran

ruined;and foregoingparagraphs have shown
in the path of commerce
were
by no means
his

one

capitalin

number

enabled

for

they were
enterprise.A

way,

who

man

the risk of being

that

the

dangers

slight. By

tributing
dis-

of

enterprises,however, as
could easilybe done if he entered into association with others,
he could hope to make
up for any probable loss by the profits
of his successful
be regarded as
ventures, and can
insuring
himself.
We
for
find,in fact,that the shippingbusiness was
the

most

131.

part carried
Forms

took

in this way.
of association ; partnership.
on

"

ordinarilythe

form

of

Commercial

"commenda"

ciation
asso-

(Latin

they

other, and

each

Christians

to leave

the

times.

demanded

by

forced

the

where

the

Middle

educated

of business

Ages they

in

the

relations.

indispensable;

were

to their level in

up

with

business,and

of
major part of the slightcommerce
As
Christian peoples developed, however, they
the Jews had won;
the place which
for themselves
long series of restrictions and persecutions they
into some
Jews
particularbranches of business

had

and

of the

extension

the

and

not

were

touch

enjoyed exceptionaladvantages

so

pursuitof commerce
In the earlypart

COMMERCE

throughout Europe they kept

scattered

were

OF

HISTORY

118

to them

Christians

the

could

not

follow

them.

The

church

at interest,
taught for a time that it was wrong to lend money
and discouraged Christians from
seekinggain by this means.
denied
The
Jews, therefore,seized the opportunitywhich was
and became
to Christians,
money-lenders. Their positionwas
and
always precarious,for the law gave them no protection,
subject constantly to robbery by feudal princes
they were
and by the people, who
believed everything evil of them.
for several cenFrom
banished altogether,
turies.
England they were
astonishing skill and fortitude,but in
They showed
the last centuries
of the Middle
Ages they lost their position
even

leaders

as

in credit

Cahors,

from

in the

the Jews
134.

as

southern
south

the

of

of currency

the serious obstacles to the

character

of the

terms

money-lenders

Character

currency

then

mitted
per-

extortionate;and
(named from
Europe, "Caursines"
France) and "Lombards," succeeded

money-lending if the
Christians

church

operations. The

of

not

were

Europe.

in the

Middle

development
in the

various

of

Ages.

One

"

commerce

the

was

countries

of

of

Europe.

the importance of money

Assuming that the reader appreciates
the operations of exchange, and
the
as
knows
facilitating
qualitiesof good money,
confine ourselves to pointing
we
may
out

some

of the characteristic faults of medieval

(1) Merchants
maintain
debased

could

the standard
the

not

rely

of value.

coinage again and

upon

In many

again, to

the

currency.

government

countries
secure

the

the
means

to.

kings
of

MEDIEVAL

OF

ORGANIZATION

COMMERCE

119

of other
kinds.
or
paying public expenses
carrying on war
Every debasement, as it left the coins with less pure metal,
and raised prices;many
cent
innolowered their purchasing power
people suffered and everybody grew reluctant to make

bargains and contracts.

those on
the Continent,
countries,especially
(2) In many
the right to
of the great feudal lords included
the privileges
keep a mint and to issue coins. The central government
restricted this right,as it grew
stronger, but in general the
made
of medieval
Europe was
up of a vast variety
currency
less reliable than that of the king s
of coins of standards
even
if it was
of good
danger that a coin,even
coinage. There was
weight, could not be passed at its full value outside the locality
where

it

(3)

was

Even

put down

was

minted.
in countries
and

where

exceptional,counterfeits
coin

was

very

These

be

found

common.

characteristics
a

England, where feudal coinage

debasement
by the government was
the clippingof
not
were
rare, and
like

of medieval

figurein
everywhere, even
necessary

the

currency

made

the moneychanger

commercial

in the

world; he was to
small towns, buying and

the various coins in circulation.

selling
136.
Difficultyin making payments in distant places.
the money-changer facilitated payments
While
in any
given
of
much
assistance
merchant
to
not
desirous
a
place, he was
of making a payment
in a distant
town
or
country. The
with
merchant, it is true, could buy from him foreignmoney
which
but the transportation of the
to make
the payment;
actual coin was
not
only dangerous and expensive, but also
and was
if possible.
to be avoided
subject to legalrestriction,
The merchant
would
probably preferto send instead of money
which
he could sell to advantage at the destination,
some
ware,
and then with the proceeds make
his payment.
For example,
when
Michael Behaim
of the Nuremberg Company wanted
to
send
it
1,000 gulden from Breslau to Nuremberg, he found
of wax
which
he could sell in
expedient to buy an amount
"

120

for the

Nuremberg
of

and

requiredsum,

convenient

he

might

perhaps he might
in the

Behaim,

shipment only
his

he

shipped that

have

in

Breslau

in

B.

meet

instead

fact
he

resorted

found

owed

the

might not,
his obligations
knowledge,

ship a

to

to

it

ware.

the

wax

impossibleto

of remittance

by the means
of exchange.

Suppose that

to

man

the commercial

necessity,after

from

bill

good opportunity

no

cited,had

case

"

have

not

It

exchange.

for

payment

general,the
in

bill of

be

in this way;

make

of the

Introduction

however, always

A.

COMMERCE

money^.
136.

or

OF

HISTORY

become

now

1,000 gulden,

to

that D. in Breslau
spice;and suppose
the creditor of another
was
C, to the
Nuremberg merchant
It would
of 1,000 gulden,perhaps for furs.
be absurd
extent
for B to ship the money
to go out of his way
to ship wax
or
for C to ship the same
value to D, when
to A, and
the payments
other.
could be made
to cancel each
should
not
Why
B

Nuremberg,

in Breslau

to D

pay

for

the

C to pay the same

amount
be accomplished by means
out
to

order

an

B,

who

would

Nuremberg
Such

to

to

have

in

of bills of

directinghim
thus

to

the

Nuremberg?
exchange; D

pay

means

him,

the

money,

of

paying

and

tell

This

could

could

write

and

sell it

his debt

in

to A.

operation implies,however, not only regularcommerce

an

of

1,000 guldens due

considerable

volume

but

also

mutual

confidence

the

B
know
D
could
whether
participants.How
would
actually had a correspondentin a distant place who
his obligations
meet
promptly? It was not, in fact,until the
thirteenth century that bills of exchange were
used to any
considerable extent; then they were
developed in Italy,and
among

spread

from

there.

Development of banking in Italy. In Italy,also,

the money-changers developed other forms
of banking. As
dealers in money,
in want
of capital
business men
they were
137.

"

for their operationsnaturallysought it of them.

might lend

it from

their

own

stock

or

The
act

as

changers
money-

brokers

MEDIEVAL

and

the

secure

banking

the

the

meet

for

could

ascribed
others

of

to

pass

him

to

he

as

from

loan

and

chose

to

long

had

form

surplus.

of

modern

deposited their surplus

he

had

thus

considerable

he kept sufficient

as

reserve

became
sary
unnecesdepositors. It soon
at all in large transactions;a man
bank

the

on

so

who

common

merchants

121

COMMERCE

man

the

to

lend

demands

money

get

some

money-changer,
he could

stock,which
to

this
when

made

was

with

cash

from

money

step from

short

The

OF

ORGANIZATION

simply by having

books,

could

and

it out.

pay

deposit

assign this loan to

characteristic danger

The

banking, the attempt to make a great deal of credit out of

early in Italy,with its results of failures
a little capital,
appears
and crises. The
advantages of the banking system, however,
and
of
the facilitating
and
the economizing of time
money
of

business

were
operations,
spread toward the

and

so

clear that

banking kept

close of the Middle

Ages

from

its

place,
Italyto

countries.

other

QUESTIONS

TOPICS

AND

difficultand none
no
history of commerce,
topicmore
of
the
the
organization. The student
more
development
who
has learned the facts has made
only a beginning;he must grasp the
significanceof the facts if he is to gain anything from his study. The
the advantages of association
teacher is advised, therefore,to enlarge on
from
one
and cooperation,
as
they are treated,
point of view, in Adam
manuals
Smith's celebrated discussion of the division of labor,and in many

is,in
important

There

the

than

of economics.
So

much

depends

on

his particularenvironment

of the

the degree of advancement

in

country,

town

or

pupil,and

on

city,that it is difficult to

general,the teacher should suggest

reference
to the
the meaning of earlier development by constant
tricts,
dishave
pedlersdisappeared in so many
present organization. Why
What
is
the
where
do they still remain, and why?
proportion of
far
has
the
in your
how
merchants
retail and wholesale
tion
specializacity;
be
found
in a
of wholesale
trade progressed? Answers
perhaps
may
is competent to work
tory
out the hisbusiness directory. The student who
will
fail
town
not
to get new
of business
organizationin his own

questions or
suggest specific

lighton
of

some

to

topics.

In

history of earlier development;

particularbranch of trade at home
the

be

worked

out.

Another

and

should

exercise would

report
be

an

be the

on

the

history

excellent

cise
exer-

history of

the

122

of the

study

choice

The

the

of

history

The

and
be

must

companies),

fall of

left to

the

and

particular

form.

ingenuity

and

teacher.

the

of

discretion

topics here

and

questions

rise

the

behind

lying

reasons

of

joint-stock

(partnerships,

association

of

forms

different

COMMERCE

OF

HISTORY

England

in

currency

[see Cunningham]

is

easier

an

topic.
the

On

review

anticipation, in

hi

or

interest

him

Journal

of

student

is

material

of

abstract

an

National

chap.

will

now,

and

of

de

Alice

on

la

will
of

the

graphical
bio-

"King's

notable
13:

and

or

Richard

Further

etc.

student

(money

Bourne,

names

Pole,

by

report

Fox

ff.; 1903,

309

chap.

hence

exchange,

like

Some

is available
or

him

enable

is

easy

[See

Law,

12:

1902,

trade

(the Jews)

rather

Biography

by

in

either

22:566-576.]
and

William

Review,

which

merchant.

English

some

Romance

Bourne's

If

reading,

origin of the bill

1914,

profitable

provided

Economic

Merchants,"

June,

Canynges,

William

Whittington,

manual

The

Usher,

be

of

Dictionary

the

consult

life of

the

on

is given

the

banking),

should

which

exchange,

institutions

credit

[Cf

Chicago,

Econ.,

exercise

An

the

Pol.

of

origin.

in their

general

some

importance

the

appreciate

to

if he

prepared

best

be

probably

will

student

(bills of

instruments

credit

of

rise

ff.]

411

prepare

may

credit).

BIBLIOGRAPHY
The
this

of

Most

**

to

are

the

new

ed., 1916,
study

London,

man,

of

1915,

of the
and

subject

Hist.

by

London,

in

The

best

in

topics treated
ary.
Diction-

Palgrave's
references

Rev.,
Arthur

development

the
*

in

lish
Eng-

The

The

Apr.
H.

stages

1914,

Woolf,

19:

Short

of

the

in

of

modern

the

talism,
capi-

modern

quintessence

of

psychology

capitalistic

of

Evolution

**

Sombart,

and

Pirenne,

1912.

of

Hobson,

A.

1, W.

history
by

the

articles

foreign.

subject

John

chap.

and

is covered

accountancy,

by

the

capitalism, American

is

of

some

Cunningham.

difficult

and

is treated

organization

and

Ashley

important

appropriate

the

literature

best

of

bibliographies

find

consulting

by

chapter

The

will

student

social

494-515.

history of

talism:
capi-

business

history
One

of

aspect

accountants

XIV

CHAPTER
AND

COMMERCE

Middle

feudal

Ages.
of

system
like

more

which

that

we

wealth,
reality the
the

and

taxes,

who

relieved

from

the

possible

once

more

distant

to

to

loyal

of

the

service.

different

of
the

to

all

the

all

the

French

and

in

their

Even

they

in

the

seemed
of

In

just

in

in

England,
In

before
123

to

the
1500

union

became

troops

by

which

hold

them

the

power

lords.

in

France

it

four

of

and

was

later,

crowns

the

not

down
of

harm

completed

lords

did

power,

the

the

centuries

continued

great

The

"

local

century

which
the

be

feudal

and

last

enjoy great

1789,

to

different

very

the

to

countries.

was

feudalism,

Spain

the

different

cantile
mer-

send

in

afford

It

to

increase

sixteenth

to

the

means

of

siderable
con-

and

sums

officials,and

over

of

could

and

independence.

extending

with

into

in

lords.

expense

early

came

Revolution

Aragon

the

system

and

large

pay

great

above,

remnants

development.
Castile

of

Ages.

kings, though

abolish

It

process,

Middle

was

the

tradition

who

devised

their

to

found

feudal

kings

at

sketched

to

the

development

countries.

gradual

the

of

as

practically

very

result

Ages

make

to

which

supplies

with

touch

possible

people

the

the

population

classes

of

in

intercommunication

They

transport

The

Variety

it

willing

government,

development,

lost

in

keep

central

139.

to

and

headship

oppressions

Middle

established

them.

were

localities, and

could

they

found

upon

manufacturing

the

holding

nominal

conferred

and
pay

of

AGES

place gradually

trade

up

kings

of

had

As

MIDDLE

political system

Romans

grew

the

LATER

close

gave

now.

position

church

the

the

towns

THE

modern

government
which

and

increased,

the

Toward

"

familiar

are

IN

of

Development

138.

later

POLITICS

trial
indusof

process,

124

COMMERCE

OF

HISTORY

the

by establishingnearlyabsolute royalauthority over

part of the peninsula. In Germany and Italythe
The

different.
the

same

the

claimed

Romans,

called himself

who

man,

the

royal power in both

he lost everything.

greater

result

was

Emperor

of

countries,but

He
wasted
the
attempting too much
in vain attempt to establish his authority,and
royalresources
became
a mere
figure-head.The control of government passed
in those countries to local authorities;but it is important to
that these included
not only feudal lords,but also cities
note
in

had

which

almost

to establish for themselves

and

Effect

140.

government.

of

commerce

on

In

"

to throw

strong enough

become

in

country

off feudal

authority

complete independence.

strong and

of

which

cities established

the

weak

central

complete independence they seemed for a time to have gained

Each
city could control its
by throwing off the royal power.
affairs and
shape its policy to suit local interests;and the
great cities of Italyand Germany before the close of the Middle
the most
advanced
and prosperous
Ages were
parts of Europe.
of land they had
Though they controlled only small areas
great

from

resources

hold their

with

own

their

and

commerce,

in
fighting

the feudal lords

in

even

could

war

the old-fashioned

way.

They

strong enough

were

however, strong enough

not.

they

cities and

at the

expense

lands to the west

the

cities and

other

and

become

of them

and

forced

were

to the

used

of the

quietlyengaged

were

to

seemed

for

kings to

make

England

by

the

progress
of the

fitted to
than

any

of

expense

rival

the kings of
country districts,

time

in

one

to

uniting all
rule.

The

lose,because

concessions

to

each

however, they had

only parts of a bigger

country districts. When,

consider

themselves

whole, the nation, they found

better

the

at

power

the country districts,

too, under

cities in France

they

to

their

buildingup

were

fighta feudallord; they were

king. While
fighta modern

to

that

represent their
one

of them

independent cities

of

as

their

interests

sovereign was
and

further

far
their

individually.The struggle
Italy and Germany against the
was

126

OF

HISTORY

COMMERCE

prohibitedbecause they seemed to

legitimate,were
something for nothing. In ordinary trade one
give a man
man
was
thought to make his profitat the expense of another,
and government was
always vigilantto protect the weaker
looked
on
foreigncommerce
party. A government, moreover,
of its citizens than
their right,and
rather as a privilege
as
instead of considering it
used it freelyas a political
weapon
economic
the
an
necessity. The ports of the kingdom were
''king's
gates," which he could open or close at his pleasure,
to further his royal policy.
143.
Characteristic features of commercial
policy. Among
the characteristic features of national economic
policyin the
later centuries of the Middle
Ages we find the following:
(1) Export and import could be carried on only by favor
of royal license,which
from
was
granted to and withdrawn
groups of natives and foreignersas suited the king'sideas.
(2) The export of necessaries was
frequentlyprohibited
with the towns), to increase
(as had previouslybeen the custom
the suppliesof the kingdom and keep an
from getting
enemy
the good of them.
(3) The export of money,
as
a
speciallyvaluable asset of
the kingdom, was
prohibitedand its importationwas favored.
stimulated
(4) The growth of native industries was
by a
variety of regulations. The English cloth manufacture
was
protected,for instance,in the followingways: the export of
material
raw
(wool,teasles,etc.)was forbidden from time to
time, that the home manufacturer
might supply himself more
cheaply;the import of foreigncloth was
and the.
restricted;
limited to certain classes,that the home
wearing of fur was
for woolen
market
manufacture
might be larger. Among the
protected industries was
shipping. Navigation acts," requiring
the use
of native ships,were
narily
though they ordicommon,
in force but a short time and
remained
had not yet
sidered

"

"

hardened

into

(5) The
as

at

system.

foreigntrade

present,

to

certain

of

country

points on

was

the

not

only restricted,

frontier where

duties

collected,but

";ould be

trade

the

quality, and

could

also

make

directingthe

goods where

of

other

Review

of

government

feudalism

Write

2.

in

the rise

as

of

weapon

pleased, and

how

see

the

the

forces

Prot.

decline

or

it

policy,
ing
reward-

so

Rev.,

in power

modern

which

system
created

had

pp.

15-21.

of the

central

period
[Consult the current

Italy, Spain.

connection

In

times

in recent

4.

with

describing the

book,

Italy

following countries, in the

Germany,

insure

readily, and

more
as

then

TOPICS

[Cf. Seebohm,

on

dues,

its

more

]
ment
govern-

France,

1100-1500:

history manuals,

encyclopedia.]

the
3.

the

report

collect

it

AND

feudalism

from

up

or

could

feudalism, and

on

reversed.

of the

one

England,
or

grew

were

one

states.

sections

the

in

government

of trade

use

127

AGES

concentrated

merchants

QUESTIONS
1.

MIDDLE

easily, could

better

punishing

or

often

protect

stream

LATER

staples." The

more

good

IN

was

"

the

special places,
oversee

POLITICS

AND

"COMMERCE

Write

read

140

advantages

under

medieval

on

the

which

by their union

report

sect.

sections

have

come

on

one

later part

of

and

Germany

to

central

strong

doctrines

in

governments.
of

the

following

subjects:
(a) Loans
(6)

in

Profits

[Cunningham,
5.

Write

Cunningham
The

English
6.

What

interest.

at

a
or

corn

has

trade.

Growth,
report

Ashley

Ashley, vol. 1, chap. 3; vol. 2, chap. 6.]

or

"protection"

on

commercial

on

in

medieval

the

policy,

read

or

J.

[See

state.

S.

Nicholson,

laws.]
history of the

the

been

[Dictionaries,especially Murray's

New

meaning

English

of

the

word

staple?

Diet.; Cunningham.]

BIBLIOGRAPHY
The

subject

of this short

of political history, and

further
has

been

French

reading and
well

treated

nation.

he

chapter takes
is referred

references.

by Adams,

The

to

the
the

growth

reader
many

of

within

the

bounds

history manuals
the

French

Civilization,chap, xiii,or

for

monarchy

Growth

of the

COMMERCE

MODERN

III."

PART

XV

CHAPTER

The

144.

changes
of

about

revolution

rapid and

so

life

of

Revolt

in the

also

the

extension

main

of

the

in

the

Europe,
1000,

year

scarcely

the

interests

village in

and

their

in

Palestine

brought

of

this edge

of

Asia, but

what

of

that

the

better

world
with
of

as

educated

mysterious

Levant

interest

and

Mongol

of

or

they thought
and

the

of

Tartar

Empire

Europeans

in

was

began
128

world"

Pilgrims

and

limited
the

to

knew

Romans

darkness
at

even

parts of the

outer

all.
an

year

established
to

meant

knowledge

them

caused
the

About

"

forgotten, and

the

of them

After

commerce.

Asia.

"the

been

crusades

information.

by Genghis Khan,

had

of

growth

Greeks

regions, wrapped

trade
in

the

Africa

rise of modern

the

with

and

zation
organi-

they lived, so

back

people thought

prodigies,when

the

great

and

which

first,

exploration

knowledge.

holy places

continent

attention:

commercial

Europe

these

history of

the

knowledge.

in

people

of

some

by

the

industry and

of

of the

on

revolution

of

the

area

influence

intellectual

the

survey

narrative

geographical

most

than

more

their

were

to

world

cooperation; third,

their

of

to

development
of

and

Growth

145.

the

forms

new

in the

commercial

name

its religious life (the

will occupy

topics

by

the

deserve

they caused

the

to

"

marked

was

only

not

and

necessary

return

discovery; second,
states

be

we

Three

by

they

affected

politicsand

will

before

commerce.

that

Reformation);

of

It

changes

changes

or

world

commerce.

1500

considered.

be

to

year

(the Renaissance)

Europe

Protestant

the

extensive

so

The

revolution.

topics

1500;

about

period centering

The

DISCOVERY

AND

EXPLORATION

penetrate

or

peopled

The

growth

increase

in

when

1200,
in

inner

Asia

Asia

seeking

129

DISCOVERY

AND

EXPLORATION

bassadors
AmMongols against their enemies the Turks.
the
missionaries,merchants, and explorers made
written
frequently that a regularguide-book was

aid from

the

journey so
by an Italian

the

about

1300; and

after

soon

time

same

the

long stay in China and

He had gone
described his travels.
by land, through Persia,
Turkestan, and Mongolia,and, returningby sea, he could tell
also about
Japan, the great Malay islands,Burmah, India,etc.
Before the invention
of printingknowledge spread slowly,but
Venetian

Marco

the

maps

the

results

had

become

Polo

of the

from

returned

fifteenth

of these

explorations were
that Asia

conscious

centuries

sixteenth

and

that

lost,and Europe
by a sea on the

not

bounded

was

show

east.

Need

146.

of

The

explorationsby
spreading knowledge
of the

Levant

trade

traders

who

sought

With

the decline

Turks,
The

land

in Asia

of the

across

available

routes

Asia

became

trade

tolls.

European people were

The

motives

to

seek

this route

out

the

sea

the

the

on

the

and

to

one,

burdened

was

wares

of little assistance to

old routes.

spread of
that

with

the

difficult.

constantlymore

finallynarrowed

Egypt, and

on

power

"

which

from

but

Mongol

navigation.
great importance in

of

were

they were
develop commerce

to

of

means

countries

of the
came,

passage

to Asia ;

route

sea

through

very

heavy

urged by powerful economic

route

to

India

which

was

now

believed to exist.

navigationwere stillthose of the later Middle

adventurous
of the most
Ages. The ships in which some
less. The
taken
of fiftytons
even
rig
or
were
were
voyages
had been improved slightly,
the ships could be handled
so that
more
readily than when they bore the old square sails;and
also
instruments
for ascertainingthe positionat sea
were
improved. Still,when we add to the actual perilof distant
ascribed
the imagined dangers which the minds of men
voyages
to unknown
that the early explorersmet
admit
seas, wre must
The

test

means

of

of courage

147.

The

lead

to which

in

men

maritime

nowadays

rarely put.
exploration taken by Prince
are

130

COMMERCE

OF

HISTORY

Henry of Portugal. Italians were, in general,the guides who

ditions
Conto the East.
led Europeans through the seas of darkness
to seek service abroad
at home, however, forced them
the first of the
in realizingtheir plans, and
Portugal was
"

countries

European

great oceanic

effect

to

The

discoveries.

undeveloped, but it enjoyed in the

fifteenth century the guidance of a singularlyable line of
kings. It had in the person of Prince Henry, "the Navigator,"
his whole life and fortune
enthusiast who devoted practically
an
but twenty-four years old
of discovery. When
to the cause
country

he

small

was

of the

commercial
to

most

motive
the

pilotsfrom
and

in

art

of

he worked

there

Prince

1460.

but

Mohammedans,
and

for success,

the

for

He

the

medieval

character

business-like.

forty

over

combined

Henry
and

southern

the

at

promontory

missionaryzeal

with

entirelymodern
needed

to

country, and

until his death

years,

was

world

the

retired from

extremity

and

his

of

gave

tility
hoswork

what

was

organization;he attracted sailors

and

Europe; stimulated development in the science

navigation;equipped and inspiredexpeditions.
all

of Africa; difficulties,
Coast
Exploration of the West
of Portuguese
real and
The
imagined.
great achievement
navigation was the discoveryof the sea route to India around
148.

"

Africa.

The

well known

coast

of

the

northwest

of

corner

Africa

was

European countries,and the

in many
belief was
current
minds
that circumnavigation was
sailors had
Genoese
possible.Some
actuallyattempted toreach
in the thirteenth century, but they
India in this way
had

to

sailors of several

disappearedwithout

difference in the world

leaving a

between

the

trace.

theory

European navigators;the limit of their

always been Cape Bojador, far north
strong inshore

current

and

short

but

There
and

voyages
on

the
furious

all the

was

the

practiceof

had

practically

west

coast.

storms

made

coastingdangerous. The coast of dreary sand dunes afforded

the air and frightened
no
good anchorage; mist or dust dimmed
sailors with the thought that they were
actuallyentering the
of darkness; Cape Bojador was
sea
a
forbiddingobstacle in

132

had

accumulated

experience and

valuable

long period of preparationfitted

as

the

time

turned

the

by

King,

of
an

of the known

Map

death

as

gained confidence; the

to advance

augury

world

for the future.

in the

time

The

Oceanic

(southwest coast;

charges which
things of
150.

with

commerce

the

had

India

hampered

illness

of Columbus.

of the

Calicut

without

feared;and in 1487, under Diaz,

extremity of the Continent, named
Storms, but renamed
Cape of Good

King prevented the Portuguese from

their discoveryimmediately;but in July, 1497, Vasco
was
despatched with a fleet bound for India, which
at

rapidly

more

had

some

Cape

them

however,

they passed the equator,

1471

southern

the

sailor the

the

Hope

and

In

on.

scorchingthat

they

by

went

They had,

Leone.

Sierra

passed beyond

not

COMMERCE

OF

HISTORY

utilizing
da Gama
anchored

Calcutta), in May, 1498.

had begun, and the tolls and

not

trade

by

the

land

routes

were

past.

Belief that Asia

could

be reached

by sailingwestward.

AND

EXPLORATION

the

While

"

be attained
earth

The

to

route

India,the

the west

coast

minds

some

of

thought that the same

objectcould
easilyby sailingdirectlywest from Europe.

occupied with

were

down

pushing on

were

in their search for

of Africa
men

Portuguese

133

DISCOVERY

more

the

known

was

round

be

to

and

was

thought

to

be

known
to be bounded
actuallyis. Asia was
Why not reach India by sailingaround
by a sea on the East.
the globe? Perhaps, they thought,the east coast of Asia was
of Europe or Africa.
the west
coast
from
but a little way
than

smaller

it

ventured

Skippers who

far from

islands not

objects washed

on

up

the Azores, the

to

Canaries,and

other

Europe, brought back stories of foreign

the beaches, or of land dimly descried

their voyages.

on

land

belief that

The

existed

held, and Columbus

originatingthe idea. Nor
in 1492

be

historyof

regarded as

the

certain

were

to

the

of

the

be very

America

acts

sooner

coast, and

his way

to

Under

these

India

around

of what

is

conditions

the

Discovery of
Europe between

the

Portuguese
from
and

carried

Guinea
currents

their

ships

Portuguese Cabral, on

Cape, actuallydid

Brazil,in

now

the

World

which

The

of

later in circumnavigating

or

equatorialcurrent

an

credit

without

different.

monly
com-

the New

Africa,for they planned to steer due south

latitude of the Cape, to avoid
the calms

westward.

coast

touch

to

discoveryof

his

was

the

deserve

not

of those

one

would

world

does
can

the horizon

beyond

land

the

on

1500.

(1492); partitionof the world

outside
ever,
Spain and Portugal. Columbus, howcertainlydeserves the fame which has been given him,
for the courage
in turning theory into action; and
he showed
the consequences
of the discovery,however
we
apportion the
credit for it,make
it one
of the turning-points
in the world's
151.

history. Europe
a

shorter route

the
that

the

distance

new

India

the

land

between

"

it
disappointed,

was

to

discovery of

America

was

had

been

"South
a

America

found.

Sea,"

continent
and

is true, in the

Asia

or

Balboa

hope that
proved by

Pacific Ocean

and
by itself,

became

known

(1513),
the

great

by

the

134

HISTORY

of Magellan around

voyage

OF

COMMERCE

earth

the

the greatest feat of navigation that

Time
Asia

its
At

The

needed

was

to build

to

European

up

that

prove

world

non-Christian

has

until the
have

performed.""

offered

and

divided

was

been

ever

America

commerce,

not realized
was
possibilities
to
the time Portugalseemed

(1519-1522), "doubtless

the full

between

century.

than

more

of

measure

nineteenth

gained

than

more

these two

Spain.
powers.

by a papal decree, which gave to Portugal Africa and Asia

(except the Philippines)and to Spain the Americas
(except
Brazil). So long as other European states obeyed papal
authorityand feared the might of Spain and Portugal,they
bound
the first period of
to respect this division;and
were
carried on
discoveries was
followed by a series of voyages,
especially
by English and Dutch, seekinga passage northeast
northwest
or
through Arctic seas, that would enable them toevade
the monopoly granted by the Pope.
Effect

152.

growth

of

modern

commerce

the

world

changes both

of

discoveries

commerce.

the

field of

area

and

commerce;

Contrasting medieval

find that the discoveries

we

in the

"

on

and

produced great

in the articles of trade.

Maritime

in the Middle

restricted in general to the

Ages was
of Europe (Baltic,North, Mediterranean, Black) and
to
seas
hindered
the edge of the Atlantic;exchange was
not only by
physicalobstacles but also by the claims of various states ta
the exclusive control of inland waters
(Hansa in the Baltic,.
Venice in the Adriatic). When
sailors had learned to
once
commerce

leave the

boldly into the open ocean, secure

in the consciousness
that they were
approaching not a "sea
of darkness"
but a land much
like that which they had left
behind them, the ocean
of uniting continents
became
a means
that the sea
rather than of separatingthem.
The principle
is free to all was
not accepted,it is true, for some
time; states
tried to extend
the same
to the open
sea
narrow
principleof
exclusion that had
been
practisedwith respect to interior
waters.

sixteenth

coast

These
and

and

steer

claims

led to

seventeenth

bitter

national

centuries,but

conflicts in the

they

fell

gradually

oblivion

into
became

the

as

and

apparent;

into

periodexpanded
had

become

of the

Levant

Europe
course

world

the

on

of

wares

with

that

trade, so

former

commerce.

Asiatic

the

in

wares

market

"

the

for them

was

Portuguese shipsreturned from

Transportationby the sea route, however, with its

well established
India.

diminished

the

of

effective

commerce.

acquainted

when

them

hopelessnessof making
the European commerce

of the discoveries

Effect

153.

135

DISCOVERY

AND

EXPLORATION

and

costs

decline

caused

such

market

for them

first

the

with
in the

greatly increased
priceof eastern goods
What

expanded immensely.

had

cargoes,

that

before

the

been

now
a part of their regular
costlyluxuries for the rich became
for other classes luxuries or comforts
and became
necessaries,
which they could afford to purchase. It is in this periodthat
articles of consumption
common
tea, coffee,and sugar became
The part played by those
in some
of the European countries.

three

articles in the
from

seen

to

wares,

over

such

one
as

Europe before,but
of

trade ;
offered

fourthof
Indian
which

cheaper grades,could

when
large quantities,
154.

advanced

an

the

total

can

be

eighteenthcentury
imports of England.

which
textiles,
too bulky
were
be

now

country

of the

the fact that before the end

they formed
Other

of

commerce

had
to

placed on

protectiveduties

did

not

been

pay

known

for the

the market
exclude

port
imin

them.

Importance of the precious metals in the American

The
continent
American
effect on
prices in Europe.
of prime importance,
class of wares
at first only one
"

The Spanish secured great quannamely, the preciousmetals.

tities
of gold in the early years of their conquests, but about
exceeded
1550 the output of gold was
by that of silver,which
reached
a result of the
enormous
as
discovery of
proportions,
mines
in Mexico
and Peru, and by the use
of the amalganew
mation
Before
1550 the production of the precious
process.
the
metals
Africa exceeded
the supply from
in Europe and
New
World, but then the balance changed; and during the
fold
seventeenth
than fivecentury the American
supply was more
that gained in the Old World.
The result was
increase
an

136

HISTORY

of money

in the stock

OF

in

Europe

pricesensued; silver became so

of it would
purchase only one
fourth

one

even

the

before

or

COMMERCE

half

of

discovery

the

or

what

revolution

plentifulthat

fifth,of

one

great that

so

in

given weight
one
third,sometimes
it would
have bought

American

mines.

serious

The

of this

pricerevolution on different classes in Europe

be left to the imaginationof the reader,as they lie outside
No
other American
peted
product comscope of this manual.
in the earlyperiod,but as the
in importance with silver,

results
must

the

American

North

whites

with

continent

and

and

the

Indies

West

important stapleswere
those parts to Europe.
The islands proved to
well suited to the productionof sugar, while the

from

contributed

but

in tobacco

which

one

negroes

could

brought

some

before

ware

relyon

soon

settled

were

unknown

be

cially
espe-

mainland

in

Europe,

largeand increasingdemand.

Food

stapleslike maize and potatoes continued unimportant,

of commerce
but also as articles of European
not only as wares
production,until comparativelyrecent times.
165.

Improvement

in the

means

and

methods

of

navigation.

needed
were
qualities
the great distances,carryingcapacity
.inships;speed to cover
for the storage of bulky cargoes,
and
stabilitysufficient to
ensure
safetyin tropicalhurricanes or eastern typhoons. The
medieval
galley,rowed with oars, was, of course, unsuited to
The favorite
into universal use.
long voyages, and sails came
"

With

the

extension

of

navigationnew

types of vessel all showed, however, the influence

models.
was
was

made

The

caravel,of small tonnage and

simply a galleyfitted
larger,having two or

with

and

masts

of medieval

easily managed,

sails.

The

galleon

three decks; in it the attempt

was

stability
and dimensions
of a cargo carrier.
Finally,the carrack,with
four or five decks, combined
great carryingcapacity with the
defensive strength of a floatingfortress.
to
Piracy continued
be a plague, especiallyin the Mediterranean
and
in waters
outside
with
siderable
cona
Europe, and the large merchantman
to unite the lines and

number

of

guns

speed of

enjoyed

galleywith

the

great advantage

over

EXPLORATION

smaller

vessels.
The

over.

increased

size

and

read

of

of

in the

London

the

137

DISCOVERY

ships of a thousand
Hanseatic
ships trading

the

much

so

longer pass

no

We

AND

sixteenth

century that

Bridge, or lie at

increase

in the

size of

and

tons

London

to

could

they

the wharf

of the Steelyard;

ships caused

changes in

importance of ports, by which Seville gave place to Cadiz,

Rouen
to Havre, Dordrecht
to Rotterdam.
effected also in the art of navigation,
Improvements were
of determining the position east and
especiallyin the means
The
of the later Middle
west.
simple means
Ages could give
the

idea of

some

The

vessel's latitude,
but very

introduction

sailor to

of the

log in

little of its longitude.

the seventeenth

accurately,and
the invention
of the chronometer
in the eighteenthcentury
of determining
at last a reliable and
practicalmeans
gave
made
longitude at sea.
Progress in scientific astronomy was
a

of service
the

measure

sailors

to

modern

Character

in

2.

and

forerunners

and

of

tions
sailingdirec-

experience,more

QUESTIONS

AND

life of

Portugal. [E. G. Bourne,

printed
Review, Aug., 1894, 3: 187-202, re-

Prince

Navigator,

TOPICS
of

Henry

Yale

criticism,N. Y., 1901;.or

of the

one

ings
read-

bibliography.]

Measure

on

the

sea-route

the

the

map

traversed

indicate

to

dates, that

distances

India;
rapid

the

these

increase

in the

distances

in the

on

voyages
a

of the

extent

in

straight
voyages

be apparent.

may

3.
1 to

the

were

useful.

more

in historical

of the

line,with

which

more

almanac"; and charts

Essays

in the

search

tables

the

Henry

traversed

the result of generations of

as

trustworthyand

1.

by

"nautical

became,

Prince

distance

century enabled

Early

life and

first voyage

of Columbus.

[Bourne, Spain, chaps.

3.]
4.

Early Christian pilgrimagesto

the

5.

European

[Cheyney, chap. 3; Verne,

6.

Write

explorers in
part 1; Beazley,chap. 3.]
Polo.
7.

[See

the

report

on

one

translation

Asia.

East.

of the countries
of his

[Beazley,chap. 1.]

of the East

vol.

1,

visited by Marco

travels.]

Development of geographical science

chap. 5.]

before

1500.

troductio
[Beazley, In-

138

HISTORY

OF

COMMERCE

tracingsof typicalmaps, of antiquity,of the Middle Ages,

them
with a
and of the period of the great discoveries; and compare
in
and
of the world.
Beazley
modern
Cheyney.]
[See maps
map
the
fifteenth
before
Maritime
9.
exploration
century. [Beazley,
chap. 4.]
of navigation in the fifteenth
and methods
the means
10. What
were
century? [See Cheyney, p. 53 ff.,and Fiske, Discovery.]
8.

Make

Voyages in search of a passage to India through the Arctic Ocean.

[Oxley, Romance, chap. 6; Verne, vol. 1, part 2, chap. 3; or Payne.]
of
12. Write a report on the history of tea, coffee,or sugar
as
a ware
11.

[Use the
Baltic trade.]
commerce.

suggested for

references

similar report

the

Levant

or

gold,silver,or tobacco.

13.

Write

14.

Effect of the fall in value

of

wares

on

of silver in England.

[Cunningham,

Growth, vol. 2, sect. 182.]

15. Development of the art of navigationin modern
Brit.,Navigation.]

times.

[Encyc.

BIBLIOGRAPHY
of the period of the discoveries will be found
bibliographies
in Cheyney, and in Cambridge modern
hist.,vol. 1.
General accounts
will be found
also hi those two sources.
Cheyney's
Classified

**

half dozen chapters on important

Background includes some
these chaptersoffer,in some
topicshi the history of commerce;
cases, the
mended.
only available reading in English, and the book can be warmly recom-

European

Another

is

**

Beazley's

and

has

Fiske' s

an
**

book, which

Prince Henry;

leading

of the World
the medieval

For

and

readable, and
inexpensive,

this is full

on

the beginnings

very

of

valuable,

exploration,

The
first part of
especiallygood collection of early maps.
Discovery of America
admirably written survey
presents an

of conditions

merits

is

of the Exploration
explorations. The first volume
by Jules Verne, N. Y., Scribner,1879, 3 vols.,covers

to

the

period as well as that of the great discoveries;it has the

failingswhich the author's name
suggests.

Prince

Henry

and

the

Portuguese discoveries

Stephens,Portugal,chap. 7, Cheyney, chap. 4, or,

account, Oxley, Romance,
chap. 7.

for

see

**

brief and

Beazley,
readable

For

the period following the discoveries,E. J. Payne, Voyages of the

Elizabethan
be recommended;
it contains
London, 1880, can
seamen,

originalaccounts
of Elizabeth

of the

exploitsof

the

great English seamen

(Hawkins, Frobisher, Drake, etc.).Howard

N. Y.,

1912, continue

Macmillan, and David

the

narrative

to

Hannay,

later

The

period.

sea

of the time

caneers,
Pyle, * The Buctrader, London,

140

OF

HISTORY

COMMERCE

Development of manufacturing organization in England

In manufactures,
persistenceof gild restrictions elsewhere.

167.

"

also, there

depending

who
capitalists

and

countries

gildsystem,

became

broke

period is

the

and

in

the

that

in any

At

the

commerce

present time

manufactures

maintenance

the

on

gildsgrew
banded

granted

of

the

industrial

originally
together

certain

privileges,
they might regulate

were

that of monopoly, that

especially
and so protect the
trade more
efficiently
also.

the

the

trade,who

who

and
protect their interests,

land,
historyof Eng-

serious check

most

of artisans

of the union

out

this

the

chants
leadershipof mertions.
through the old gildrestric-

It will be remembered

advance.

to

which

of

in

the

striking feature, however,

The
most

under

them, advanced

on

freedom

shall see, in the

We

greatlyEnglish manufactures,

how

of

toward

movement

countries.

favored

more

was

interests of

the interests of

sumers
con-

consumers

protectedby the competitionof producers,who

sufficiently
do not need government
regulationsto tell them that they
sell good wares
at low
must
pricesif they desire to succeed;
active to
and
as
just as soon
exchange becomes
sufficiently
stimulate
competition the public gains by having restrictions
abolished.
of the European countries,however, the
In most
are

gild privilegesand

restrictions

century, with results

Evils

of

these

quarrelswere

retained

set forth in the

until

the

teenth
nine-

followingparagraph.

gilds. (1) The privilegeof monopoly

abused
to the gild in various
was
by limitingentrance
ways,
that production was
raised to
restricted and
so
prices were
the detriment
of merchant
and consumer.
Laborers suffered,
for their services.
also, by the lessened demand
(2) Gilds
into frequent conflict over
the question as to which had
came
the right to exercise a particularbranch
of trade
or
facture;
manu158.

trade
from
which

unions
the

at

the

were

the

"

present

separationof

ought

long lawsuits.

to

similar

allied

time.

to

those

arisingbetween

Manufacturers

suffered

trades; and time and money,

have
into the business,were
in
wasted
gone
of the gilds,
the masters,
(3) The full members

ECONOMIC

OF

DEVELOPMENT

141

ORGANIZATION

and journeymen) in an
(apprentices
granted promotion by favor rather than

tried to keep the laborers

inferior

and
position,

by merit; laborers lost the incentive to good work

(4) The masters
tempted to idleness and disorder.

and

themselves.
equality among
enterprisingto attempt to
sufficiently

who

Any

preserve

tried

master

extend

were

to

was

his business

by

men
was
introducing improvements or by employing more
pulledback to the general level. (5) Technical improvements
were
prevented also by the regulationswhich were
adopted
to secure
good quality of the product, but which
originally

hardened

into

routine

the
prescribing

details of every

process

did
consumers
(6) After all the restrictions,
when
not get good quality even
they paid high prices. They
could not punish the producers of poor goods by withdrawing
and fraud were
their custom; and scamped work, adulteration,
of manufacture.

common.

Development of the
wholesalers.
Reviewing
159.

of

"

find that

paragraphs we

commercial
the

organization.

substance
in

the advance

of

Rise

last few

the

local
agriculturewas
it failed,in great

incomplete, while in manufactures

from
a
to
displace a wornout
system inherited
measure,
itself were
the changes
preceding period. Only in commerce
of business
rapid and general in western
Europe. Methods
which
before had
been practised in only a few Italian cities,
veloped
now
wrere
adopted in the country north of the Alps, and dedistricts.
rapidly in the leadingcommercial

and

class of

Before
in

time, of course, merchants

considerable
quantities of wrares,
merchants

business

ware.

seem

by sellingin

last century of

merchants
As

merchants

this

medieval

the

wholesale
professional

who

yet they had

An

transactions

have

but

been

small

on

sprang

the

glad to keep

quantitiesto
the Middle
Ages do

consumers.
we

dealt

occasion

even

find

in

up.

leading
up

their

Only in
Germany

entirelyto wholesale trade.

in any
one
particular
specialists
varietyand of the extent of their

confined themselves
not

idea both
can

to

had

now

be

become
of the

gained

from

the

business

of

John

von

142

Bodeck, who
bought silk
Hamburg
in

and

Spain and

sent

in Amsterdam

rye

factors.

to Amsterdam

them
and

Bodeck

"

without

He

1600.

of

the

must

and

he

Antwerp;

and
in
wool

bought

it to Genoa.

sent

knowing much
seeing them.

without

about

in

drugs

Development

160.

in Frankfort

merchant

COMMERCE

Venice, spicesin Amsterdam,

he bought iron and
for sale to Hamburg;
wax
and sent them
to Spain; he bought indigo and

them

sent

was

OF

HISTORY

commission

have

traded

about

them

Such

in

these

would

often

wares

himself, and

business

of

trade; services

generally

have

been

possible
im-

in the Middle

Ages when a merchant accompanied his

It
shared his responsibilities
with a few associates.
or
wares
made
was
possiblenow
by the development of the commission
trade.
Commission
merchants, or faptors,made it their profession
"to buy and sell for other business men
for a certain
profitwhich is given them for their trouble by the principals."
in business on
their own
Sometimes
account
also;
they were
in various
sometimes
lines. A writer of
they were
specialists
the seventeenth
century distinguishedfive classes: those who
lived in a manufacturing or commerical
and bought
center
goods for others; those who sold goods for others; the correspondents
of business
and

remittances

and

forwarded

the agents for

of

and

men

of money

in

who

made

collections

them; forwarders,who received

places of transshipment;and, finally,
for

goods at
who
carriers,

freightwagon
general,were

bankers

distributed
The

duties

collected

and
of

the

load

mercantile

factor,
in
to advise his principal
frequentlyconcerning
the market
for wares, the course
edge
of exchange,etc.,to acknowlletters punctually,and to follow orders exactly. The
commission
varied from 5 per cent of the value of the goods in
a

the

West

Indies

to

city.

per

European countries.
161. Improvement
Commission

business

in

merchants, and

or

even

of

means

of the

paragraphs implied much

among

cent

kind

less in

communication

described

of

some

in the

the

posts.
"

preceding

greater frequency of communication

it is

noteworthy

that

the

system

of

DEVELOPMENT

OF

ECONOMIC

143

ORGANIZATION

in Europe about
the beginning of
founded
public posts was
this period,and developed rapidlyduring it. Relays of horses
with

and
postilions

with

the necessary

by the governments of various

communication; the system was
extended
soon
business,but was
individuals.
statement
to

idea

Some

made

at the

of

of these

countries,to
meant
to

places in

at

serve

advance

opening of

Basel, giving the time

other

the

officials were

first

earlier times.

go

insure

regular

only for

official

the needs
be

can

the railroad

required to

established

The

private

got from

from

Strassburg

the

from

of

one

to the

distance, about

New
York
miles,or less than the distance between
seventy-five
and
covered in the sixteenth century by a
was
Philadelphia,
in six days, in!700
coach in eight days, in 1600 by a diligence
vehicle in four days, and in 1800 by "express"
by the same
(Eilwagen)in two days and a half. In the eighteenthcentury
in England could send a letter fifteen miles for a penny,
a man
increasing
thirtymiles for twopence, and so on up, the sum
with
to

the

New

distance;postage from
York

London

to France

was

tenpence,

shilling.

Merchants

the friendly
longer to rely upon
offices of the traveler who
happened to be going in the desired
of specialcouriers.
free from the expense
direction,and were
Knowledge of market conditions in distant placesspread more
broadlyand more
rapidlythan it had ever done before. Shrewd
make
speculatorscould still sometimes
by getting
great profits
possessionearlyof some
specialbit of news, but the essentials
of commercial
newspaper

that

were

the state
162.

needed

no

information
grew

up,

by

were

several

available for all.

stages, from

The

written

modern

reports

passed around as circulars in this period,tellingof

of the market, prices,
conditions of transportation,
etc.
Need
of closer association
merchants; risks of
among

strikingchange in the organizationof

commerce,
regarding especiallythat with distant countries
and
other continents,was
the growth of association among
merchants.
We
have noted
the development in the Middle
Ages of the partnershipand other forms of association;we
commerce.

"

The

most

144

have

to

now

OF

HISTORY

COMMERCE

the rise of great

study

connecting link with

the

companies

corporationsand

trusts

which

form

of the

present

day.
the

Among

for the

reasons

the following are

to

country's navy extended

Ships in European waters

be

noted.

armed

exposed constantlyto

was

rise of great commercial

but

attack.
small

peace,

and

hostile natives
and

of peace
in

war.

character,and

who

in

Distant
The

commerce

protectionof

distance

threatened

were

by privateersin times
Europe they faced trade rivals from

of

(1)

panies
com-

from

home.

by piratesin
in

war;

outside

waters

other European

times

countries,

bound

by the civilized rules

Distant
was
commerce
essentially
military
required for successful prosecutiongreater
not

were

could afford.
militaryforce than a small group of men
(2)
Partly because of dangers suggested above, partly because of
of the sea under
of navigation
the natural perils
the conditions
of the very novelty of the trade,
at the time, partly because
distant

commerce

was

very

If five

hazardous.

sent

men

out

ship they might make a great fortune,but they might lose

with
themselves
ninety-five
everything. If they associated
others and together sent out twenty ships they were
pretty
of these,but they were
to lose some
sure
pretty sure to make
from the other shipsenough to return large profits.
a

Association

It was
requiredby government; reasons.
of men
the circumstances, that associations
natural, under
in distant
should spring up for carrying on
commerce
parts.
We
must
note
further,however, that these associations were
163.

"

requiredby European governments,

that

assigned to each
and

in which
it was
company
in this field trade by individuals

that

prohibited. The

was

brief,as
(1)
us,

them.

field

certain

was

given a monopoly,
and by other associations

for this

course

were,

in

follows:
The

between
to

reasons

peoples

individual
so

An

all

of

distant

merchants.

countries
As

did

not

distinguish
look

all Chinamen

all Europeans
Englishmen or even
cheated,
unscrupulous trader, who

were

alike

alike to

robbed,

or

DEVELOPMENT

killed
them
on

to

The

home

offences,and it could
required,therefore,that
have

country should
subscribe

and

(2) The
a

their

interest

him

as

in the

contribute

continue.
to

permanent
to the

money

such

punish

not

let them

to

left

later to carry

sought

could

and

It

distant

welfare

of

association,

to its rules.

could

government

labors

seemed

of his crime

proposing to trade

man

diminish

by assuring merchants
trade that they should
not

commerce

up

afford

not

145

ORGANIZATION

government

an

trade,by making

the

ECONOMIC

native,escaped the consequences

be borne by his countrymen
who
trade.

the

OF

by

who

newcomers

proper

to

the

who

spent money

be

deprived of

had

made

in this way

encourage

risks

no

of
in

distant

building

the fruits of

sacrifices.

It

the investment

of

in manufacinvestment
tures
to encourage
as
capitalin commerce
by granting patents.
led naturallyto apply the
(3) Finally,governments were
and
prevalent ideas of gild regulationto distant commerce,
found
easier
some
practicaladvantages in doing this; it was
association
of men
than a number
of
to tax and to regulatean
individuals.
Association

164.

in the

form

of the

regulated company.

"

of the

above
could be obtained
objectsenumerated
by
union
in what
called a "regulatedcompany."
The reguwas
lated
of
had a monopoly
a certain field of trade, and
company
established regulations which
were
binding on the members
secured admission
trading in that field. Every one, however, who
fee and promising obedience
by paying the entrance
thenceforth
with his own
to the rules, traded
capital,and
kept his profitsfor himself;there was no poolingof capitalor
be suggested
profits. The character of such a company
may
of the modern
to readers by the organization
stock exchange.

Many

No

one

is not

member

every

but

who

every

is bound

member

member
to

keeps

can

follow

his

trade

on

the exchange, and

certain rules in his

capitaland

dealings,

profitsdistinct

from

those of the others.

The

largerpart of the early English commercial

companies

146

OF

HISTORY

COMMERCE

regulatedcompanies of this kind. To a certain extent

which
have
been
they attained the objects of association
evils of individual
of the worst
trade
enumerated
above; some
adopted wise regulations
were
impossibleso long as the company
were

force members

could

and

to

form

the

Objections to

165.

live up

the regulatedcompany
Still,

had

traders

Individual

more

as

group.

the

and
associates,

strong and

when

the

diminished
The
was

when

even

commerce,

solution

which

loose

of the

association.

the amount
individual
interests

of

over

company

in

preventionof abuses.
hardly possible,moreover,
of their capital in their own
periods of adversity,so that

push

the interests of the association

bulk

needed.

most

in this condition

before

Europe

it

difficult. The

was

future

of

of affairs

European

of

European civilization,
depended on some
make
from
would
the individual
impulse to

instinctive selfishness of every man,

would
of men
enable a number
to work

gain,the
which

"

difficult the

withdraw

problem set
important as

as

the

available to

resources

best

control

the

policy was

kept

could

and

regulated company.

greater interest in it than

rendered

active

associates

hands,

at

was

weakened

This

the

of the

fees,and regardedtheir momentary

important than the permanent

of their entrance
interests

no

to them.

collective force

for

gain together.

partnershiphad united the interests of a very few men,

of the
simplifyingthe problem by startingwith members
same
family,who were
naturallybound together. The relation
of merchant
and factor was
in the rightdirection,
another move
it united in loyalsupport of each other two men
as
separated
interest
by considerable distance,and with no other common
than
that of their business.
The
principleof association
far beyond the bounds
of factormust, however, be extended
if Europe
ship,or partnership,or of the regulatedcompany,
to rise to the opportunity presented by trade with distant
was
The

countries.
and
its advantages.
joint stock company,
to get: (a) a permanent
was
problem, reviewed briefly,
166.

The

"

The
stock

148

gested above

OF

HISTORY

immediately

secured

were

COMMERCE

the

on

founding of

the

companies. Experiments of various kinds were

tried at the start, and only gradually did the companies take
in modern
law.
the form
which
The
they have assumed
English East India Company, for instance,which was founded
made
into a joint
in 1600 as a regulatedcompany,
was
over
stock
by degrees, and could not be regarded as
company
fifty years.
permanently established on this basis for over
of bitter experiencewere
Generations
requiredto teach people
the possibledangers as well as the possiblebenefits of this
first stock

of association.

form

Incompetence and
of affairs.

give

one

but

prevalentin

corruptionwere
The
a

worst

abuses

faint idea

of

of the

our

the

modern

agement
man-

rations
corpo-

that

enormities

were

perpetratedin the earlyperiodof jointstock history. In spite

of all,the joints.tdck companies accomplished the purpose
for
which
they were
created; they attracted
capitalat home,
the prosecution of a definite policy abroad, and
stimulated
extended

commercial

of association

reader

interests

would

have

remember

been

as

individuals

unable

to

do.

or

other

The

forms

American

that

and
chusetts
MassaVirginiawas founded
was
developed by joint stock companies. Other
forms of association,
suitable
were
more
especially
partnership,
for many
increased
and
constantlyin number; but
purposes,
stock companies .grew up in
alongsidethem several hundred
founded
to develop
Europe of which perhaps a hundred were
and colonial undertakings.
great commercial
may

QUESTIONS

AND

TOPICS

and the rise of modern

report on the break-up of the manor
Indust.
farming
England. [Cheyney,
hist.,chap. 5, or one of the other
manuals
of English economic
history.]
the restrictions of the gildswith those
2. Write
an
comparing
essay
1. Write

in

of modern
3.
was

the

What

trade-unions.
are

the

functions

importance of their rise

of wholesale
at this time?

merchants

and

hence

what

OF

DEVELOPMENT

Who

4.

chap. 12,

Romance,

find

you

can

mentioned

merchants

commission

149

ORGANIZATION

merchants

of the

period? [Bourne,

English merchants.]

or

examples

What

5.

of the notable

some

were

ECONOMIC

of the different classes of

nowadays

in the text?

What

commission

do they

charge?
postal system.
report on the rise of the modern
Encyc. Brit.,articles Post-office,Postage stamps.]
6.

Write

7.

Write

or

for the

changes
is not

association

Study

9.

the

the

understand

to

history of the

[Encyc.

newspaper.

for mercantile

association,
by the government,
viewing
by re-

reasons

of this association

requirement

the

on

Ev., chap. 6.]

Indust.

Endeavor

8.

and

similar report

a
**

Bucher,

[See

conditions

in

or

necessary

since

this

compulsory

period, and

seeing why

now.

Growth, vol. 2, sect. 188, on regulated and

ing
pick out examples of each type in the follow-

Cunningham,

joint-stock companies, and

sections.
10.

India
the

Write

report

for the changes.

reasons

various

forms

which

[Cunningham,

or

the
of

during the first century

assumed

Company

the

on

(English) East

its existence, and

Hunter,

**

Hist, of British

India.]
11.

Write

report

abuses

on

corruption in this

and

company.

[Hunter.]
BIBLIOGRAPHY
A

nomic
bibliography accompanies the chapter by Cunningham on ** Ecochange, Cambridge mod.
hist.,vol. 1, which furnishes the best
brief account*in
English of topics considered in this chapter.
Histories of various

countries

at the

period of the Reformation

of their agricultural,industrial,and
descriptions
but I know
of no
general and comprehensive

topics treated
The

on

Hunter,
in

is

and

Hewins,

Hist.

there is abundant

(East

English business, Trans.

R.

in

English of

Scott,

of the

The

material

**

India

Co.).

Conn.

development

constitution

and

R.

is that

Eur.

B.

men
Westerfield, * Middle-

Acad., May,
of the

1915, 19; 111-445,

organization of marketing,

finance of joint-stockcompanies,

Cambridge
Press, 3 vol., 1910-1912, is
the history of that subject.
Univ.

available

background, chap. 7
colonizing
companies), chap. 8 (typicalAmerican
**
English trade, chap. 3 (trading companies) ;

Brit. India

scholarlystudy
W.

which

organization. See Cheyney,

(chartered commercial
companies)

treatment

present

organization;

here.

only topic

of commercial

commercial

an

authoritative

work

on

XVII

CHAPTER
CREDIT

168.

Growth

AND

of credit business

CRISES

The rise
banking.
great step in the development
credit.
Individual
savings,
and

of

"

jointstock companies was a

of capital and
of
of the power
useless to
and
made
before
which
might have been hoarded
from their hiding-places
drawn
to form the capital
were
society,
the scope of
and loans by which the great companies extended
in this period. Another
commerce
step in advance, which
of
of banking north
the extension
deserves notice here, was
the Alps. The
to take
medieval
doctrine that it was
wrong
interest on
it appeared that loans
loans lost its force when
would
wanted
to a good
who
were
by merchants
put them
the
wise to encourage
societyconcluded that it was
use; and
lending of money
by permittingthe lender to take interest for
it. There
is a great difference,
however, between the lending
what
than he knows
by an ordinary individual,who has more
to do
with, and the business of lending as practisedby a
banker.
The
difference is this, that an
ordinary individual
lends his own
lends that of somebody
while a banker
money,
else. When
credit operations have become
sive
extensufficiently
the banker appears
who
makes
a
as
man
dealing in credit
his profession. He
have
the people who
steps in between
capital'but lack the abilityor inclination to employ it profitably,
and the people who
have the abilityand inclination to
of
conduct
business enterprises
but lack the desirable amount
and by
capital. The banker is a specialistin this profession,
his specialknowledge can
do more
else could to
than any one
collect the surplus capitaland
place it where it can be used
to the best advantage.
of the

150

AND

CREDIT

151

CRISES

Descriptionof the rise of discount and depositbanking

The history of banking is too large a topic to
in England.
be considered
here in detail. The
marked
early banks were
of individual peculiarities,
and occupied often a
by a number
publicpositionas agents of the government; these points need
detain
The
not
us.
development of ordinary commercial
banking can be illustrated by the business of the London
smiths
goldin the seventeenth
The
quired
regoldsmiths were
century.
by the character of their stock to keep strong-boxes
("safes"),which served the purpose of a modern
safe-deposit
vault; and they united dealings in gold and silver coin with
their originalbusiness.
They were
naturallythe persons to
169.

"

whom

cash

and

his person
time

would

man

other
or

valuables

at

considerable
made

apply

who

more

his office

or

wanted

the

of

means

securely than was

home; and thus they

deposits from
some
charge at

merchants

and

keeping
possibleon
received

others.

in

ably
Prob-

first for the

accommodation,
but soon
they were
encouraging deposits by paying some
and
lection
interest,
by undertaking to perform services such as coland remittance
for their customers.
They could afford
of the fact that they did not let the cash
to do this by reason
and to
lie idle in their vaults,but lent it to the government
business men;
they had become banks of discount and deposit.
A tract publishedin 1676, entitled "The
Mystery of the New
of their
fashioned Goldsmiths
or
Bankers," gives this account
operations. "Having thus got Money into their hands, they

they

presumed

upon

and

that

upon

they begun to
Moneths, upon

to

some

come

confidence
accommodate

as

of

fast

others

as

running

men

with

Cash

paid away,
(as they call it)
was

for Weeks

moneys

and

and supply all necessitous

extraordinary gratuities,
Merchants
that overtraded
their Stock, with present
Money for their Bills of Exchange, discounting sometimes
double, perhaps treble interest for the time, as they found the
Merchant

the

less

pinched."
170.
Rise of "money-power"
Fugger family. The reader
more

or

"

as

shown
will

in

the

historyof

perhaps comprehend

152

OF

HISTORY

COMMERCE

clearlythe great development of business in the modern

period if we follow here the historyof one of the families of
the money
to the first rank among
rose
South Germany which
from
descended
a
The
simple
Fugger family was
powers.
in
settled
who
Augsburg and died there in
country weaver,
to high place in the crafts of weavers
His sons
rose
1409.
others,
"and merchants, and accumulated
wealth, like many
Under
and woolen
cloth.
a grandson,
silks,
by trade in spices,
Jacob (1459-1526),who had been trained in Venice, the family
business underwent
a
strikingchange. We should call Jacob
more

financier

rather

than

merchant.

He

and

his brothers

continued, it is true, to deal in merchandise, but they made

their great profits
by dealingin money and capital. If a prince
it to him, charging a good
or
king wanted a loan they made
in commission
and interest,
round
gainingoften a security
sum
for their advance, such as a mine or the right to collect some
taxes, from which they could make good profit. If a king like
to
Charles V, whose dominions
were
widely scattered,wanted
in a distant province,they
of his revenues
disburse some
the necessary
to sell him
undertook
exchange and avoided
transportationof the coin itself. Their business extended
from
Hungary and Poland in the East to Spain in the West,
from Antwerp in the North
to Naples in the South.
The
records of
171.
Descriptionof the Fugger business.
learn the
the Fugger firm have been preserved, and we
can
of its
and character of its business by the statement
extent
in florins,
The figures
resources
are
as
they appeared in 1527.
"of which each had a purchasingpower
equal roughly to eight
the

"

dollars

to-day.

Mines

(Tyrol,Hungary)

Other

real estate

Merchandise
Cash

(in home

(cityand

country)
(copper,silver,brass, textiles)
office and 14 factories)

Loans
Private

accounts

Various

current

of associates

affairs

270,000

150,000
380.000

50,000
1,650,000
430.000

70,000

3,000,000

AND

CREDIT

reader will note

The

the

153

CRISES

appearing under

largesums

mines

merchandise, showing that the Fuggers still maintained

their dealings in wares,
after they made
finance their special
business.
The
chief item, however, is that of loans, which
included
borrowed
sums
by the Pope, the Emperor, and kings
of Europe. The Fuggers and other great financiers had immense
influence on the politics
of their time, for they could command
and credit while sovereigns were
still trying in vain to
money
build up an
fabulous
adequate revenue
system. They made
50 per cent a year, in prosperous
over
periods,and the
profits,
of over
30 per cent
Fuggers managed to make an average profit
of most firms,however,
In the case
a year for over
thirtyyears.
and

there

lean

were

be

would

average

years

well

-as

much

very

fat ones,

as

less.

More

and

profitis the increase in the size of

Italian banking firms, the Peruzzi about

two

Medici

1546,

about

1440, and

find that the

we

in modern

comparing them
capitalwas about

general

strikingthan the
the capital. Taking

of

rate

the

the

1300, and

Fuggers in
follows,expressed

with
as

the

Peruzzi,$800,000,Medici $7,500,-

purchasingpower:

000, Fuggers $40,000,000.

Weakness

172.

The

of the

great financial

have

been

firms

Fugger
of

the

and

other

banking

firms.

century

seem

sixteenth

"

to-

of the
They lacked the permanence
later jointstock companies,for they still retained the medieval
form
of a company
and
based chieflyon family relationship,
in the hazardous
required constant reorganization.Their success
operations of the time depended entirelyon the sagacity
of the heads of the family,and as geniuscannot
be transmitted
in the third generaindefinitely
they went to piecesordinarily
tion

premature.

their establishment.

from
about

1550

tried

to

but
capital,

found

it

in

more

1563
to

and

showed

more

wind

up

The
the

head

business

of the

and

impossibleto do this,and
enterprises.The balance

Fugger

firm

withdraw

involved

became
of

the

the

firm

in

decided

quarrel among
loans

of the family began

weakness; members
lost in unfortunate
themselves; and the firm finally

all
practically

its accumulations.

The

bank-

154

ruptcy of
time

as

the

HISTORY

of these

one

went

carried

contributed

money

"

Description of

173.

century.

business

great firms

all the

have

rose

on

"

the

as

been, of
time, but

Antwerp
forms

new

the

business

medieval

the

sixteenth

of business

from

of the

center

century,

time,
This

Antwerp,

was

port of Bruges declined.

greater cities and

course,

in

represented by agents.

were

of the sixteenth

city,in the first part

which

more

on

firms it will be profitable

to study

standpointof individual
in the city that was
them
the

where

in

consideringthe

After

"

less

nobles,burghers,
ten florins,
servants
even
with the financiers,
and

interest

at

and

more

community
exceed

not

less and

in their fall.

involved

were

and

by members,

peasants whose savings did

deposited their money

"

wide-spreaddisaster,for

their business

on

All classes in the

their credit.

COMMERCE

involved

firms

they

on

OF

greater markets

since

said, has the world

such concentration
of the trade of different peoples in a
seen
singleplace. The town owed its development almost entirely
who flocked there to trade,and though it saw
to the foreigners
less of Italians and
Hanseatics
than Bruges had done, it was
the one
great gathering place for the Portuguese, Spanish,
merchants
who
the leaders.
were
now
English, and German
that

It is said that
the

port in

confused
mixture
seemed
united."

day, and

little world

In contrast

why the merchants

to develop the new
Rise

with

great bourse

English merchants

in short the

of

or

in which

alone

this

forms
the

bourse

in

Antwerp was
perhaps the chief

were

almost
reason

selected it as the place in which

of business.

Antwerp
the

was

Antwerp

all parts of the great

Bruges, trade

of the time

Antwerp presented in
a

of

out

in the

possiblecostumes;

entirelyunrestricted,and

174.

the

or

city. The poet Daniel

the Antwerp exchange, "One
heard
there a
of all languages,one
there a motley
saw

of

of all

is

vessels sailed in

that

20,000 persons

murmur

to be

or

five hundred

over

one

employed over
Rogiers said

before

never

since,it

There

exchange

sixteenth

; its

significance.

century the

exchange, that is, a

place in

"

of

first case
which

men

156

said that

HISTORY

OF

amounting

payments

COMMERCE

to

million

crowns

made

were

singlemorning without the use of a penny of cash.

176.
Advantages offered to industry and commerce
by the
Antwerp and Lyons had served especiallypolitiexchanges.
cal
in their loans; they were
vency
needs
embarrassed
by the insoldeclined.
Their
of royal debtors, and soon
place was
taken
by Amsterdam, London, Hamburg, Frankfort,and other
and with the rise of these new
centers
a
change
cities,
money
The
of importance is to be noted.
new
exchanges attracted
in

"

investment

capital for

in

companies which
Ordinary people with comparatively
have known
(as they would not know

undertakings, serving the

being established.

were

small

savings would

now)

where

not

turn

of

the

the

became

confined
all

sources.

were

put

of

current

price of

the

natural

When
the

on

for their

rebuild

enterprisesseeking
stock.

companies

market

of the

Dutch

in 1602

home; much

after the

who

stock
of

public
not

was

capitalfrom
up
no

money
a

of

which

taken

of the

fire of 1666, and

and

India

East

they were
of Antwerp
by capitalists
at

The

accompaniment

necessary

industrial

shares

money

London

Company
to

siderable
con-

longer had
needed

large part
the Dutch;

to

of the

shares
from
England, came
the English companies trading with Asia and Africa circulated
exchange; a loan to the German
freelyon the Amsterdam

capitalof
of

and

the stock

had

not

regularcommerce,
boundaries, but which drew

national

extent
use

if they had

indication

the objectsof

by

new

an

for

to

the stock company.

Shares of trading and
debts

of the

needs

to invest their money

exchange to
capital,and
exchange was

semi-privateeconomic

private or

Emperor
177.

the

Bank

of

floated

was

Growth

of

in London.

speculation; early abuses.

Modern

"

forms

of

speculativebusiness grew up with the exchanges. A pamphlet

published as early as 1542 described the "monstrous
had devised; they bet with
thing" that Antwerp merchants
each

would

other

on

the

course

be 2 per cent,

one

of

foreign exchange,

3 per

cent, etc., and

one

saying

afterwards

it

they

settled

the

same

that

by paying
operationas
the

When

trade

in

differences.
which
of

shares

157

CRISES

AND

CREDIT

This

is carried
stock

is

the
substantially

regularlyto-day.

on

established

was

traders

of both.
speculateon a rise or a fall,or a combination
Shrewd
gathering and
speculatorsorganized a system of news
forwarding which gave them the first knowledge of important

would

and
enabled them
to
affectingthe price of securities,
London
speculators got
anticipate the turn of the market.
word
through a private channel of the signing of the treaty of
arrived
Rijswijk in 1697, a day before the English ambassador
events

with

the

aroused

stock

suspicion,and

appeared when

the

stock

84

rose

from

Underhanded
would

their

official announcement;

to

was

their

for

reason

published and

the

bank

purchase

price of

the

97.

methods

set afloat

of trade
to

rumors

were

Speculators

common.

and
depressthe priceof securities,

reign of Anne in England a

well-dressed
rode furiously
man
through the street proclaiming
the death
of the Queen.
The news
spread and the funds fell;
the Jew
interest on
the exchange bought eagerly, and were
suspected later of being responsiblefor the hoax, though it was
The
not proved against them.
Englishman, Child, who made

then

buy

fortune

1719

One

spread

caution"; in
ten

the

and who
called
was
speculation,
would
originalof stock-jobbing,"

while
publicly,

out

day during

in

"the

brokers

in.

news

the

buy

to

eagerness

or

rumors

another

of

set

bought

he would

few weeks

twenty per

disaster,and

cent

sell

for him

reverse

in

pamphlet

have

one

set

of
of

little of his stock

"with

privacy and

the process

and

come

ahead.

system of business;promotion of
Dangers of the new
unprofitableenterprises. The appeal of jointstock companies
of the
stock
to the
exchange
public through the medium
proved to be so effective in gathering capitalthat a great
worthless
floated.
When
times were
undertakings were
many
good, that is,when
enterpriseshad proved successful,when
with
for investment
and
looked
people had saved
money
confidence
to the future, almost
anything in the shape of a
178.

"

158

there

that

to its stock.

sides,one

two

were

COMMERCE

OF

could get subscribers

company
note

HISTORY

The
and

good

reader should

bad,

one

to

the

methods

was
being developed. The
by which commerce
of subscribers
facilityof gettingcapitalfrom a great number
and
made
possiblemore
largerundertakings than had been

new

known

before, and
however,
and

be

at all.

of

the

undertaking;the

sink

might

There

become

for

thus

chance

worthless

real need

between
of

contributor

scriber
the sub-

capitalmight

basis of the

enterprise,

which

late

the business
the

new

society. There

came

for the diversion

at

the

when

of

unknown

return

purposes;

powerful, but

more

benefit

economic

of the

his money

was

societyto

to filla

separation before

entirelyignorant

and

unmixed

an

devised

undertakingswere
was,

was

not

of the

capital
organizationhad

time

same

or

delicate

more

and

find in this period the

subject to derangement. We
crises marked
beginningof commercial
by the misdirection of
invested
capital,
disappointmentof investors,and distrust and
lethargy,until spiritsrose with the recovery of lost ground,
and good times began again.
Period"
in England.
179.
Description of the "Bubble
"

Commercial

during this period.

of them

We

the

most

both

and

France

England

crisis in

of the

South

debt,

for which

shall

here, but

descriptionof
The

in all of the

crises occurred

England

not, however, attempt

shall

use

the

available

that
important crisis,

about
was

countries

advanced

an

space

which

meration
enu-

for

affected

1720.

closelyconnected

with

the

course

had
in
been established
Company, which
1711 as a tradingcorporation. The company
had secured
the
right to export slaves to the Spanish colonies,had developed
and was
a
thought to be a largeand
promisingwhale-fishery,
It was
into a financial
then transformed
concern.
flourishing
with the bold plan of assuming the whole
national
company,

offered

by
the

so

the

Sea

it made
company,

extravagant offers.
which

imaginations of

the

dearlypurchased must

made

success

people,who

"The

large sum

stimulated
impossible,
fancied that a privilege

be of inestimable

value,and the

CREDIT

AND

complicationof credulityand
avarice,threw
to

term

dishonesty,of ignorance and

it is scarcelyan exaggeration

positivefrenzy."

All classes rushed

quoted

into what

England

159

CRISES

buy the stock,which

to

1,000. Then

at

the

weakness

of the

at

scheme

apparent; the stock fell as rapidlyas it had risen,and

or

ruined

speculatorswere
of the bubbles

one

this time.

Other

which

in

large numbers.
inflated and

were

companies

time

one

This

which

was

became
investors

only

was

burst

about

making salt
water
fresh, for extracting silver from lead, for trading in
human
Insurance
hair,and for a wheel of perpetualmotion.
now
was
coming into prominence, and this offered a favorite
field for promoters.
received for companies
were
Subscriptions
that
proposed to insure against losses of servants, against
"Plummer
burglars and against highwaymen; one scheme was
and Petty's Insurance
from Death
by drinking Geneva"
(gin).
We get a vivid idea of the spirit
of the periodfrom the fact that
for an undertaking
one
a
promoter, who announced
company
which
shall in due time be revealed,"secured 2,000 guineas in
which he immediately made off.
a singlemorning, with
promoted

were

for

"

The

180.

Just before

crisis of the Company

the time

in character

of the

occurred

in

of the Indies

English crisis

one

in France.

"

curiouslysimilar

Scotchman, John Law,

who
able banker and financier,
an
Avas
promoted a Company of
the West, expanded later into the Company
of the Indies,
which
united
with
its commercial
projects an attempt to
finance the government.
formed
of
Extravagant ideas were
the possibilities
of Law's
"system," and the roads to Paris
blocked by people hurrying there to speculate in shares.
were
Two

of the

one

interview,and

against

France.

ablest scholars in France

each

at

the

deplored the
found

next

madness

themselves

at

bidding

other.

Coachmen, cooks, and waiters became

millionaires by lucky speculation;tradespeoplein the street

where
out

the

their

exchange
stalls and

frightenedeven

was

established

chairs.

the promoter

The

made

price of

of the

fortunes
stock

system, who

rose

by letting
until it

interfered in

160

HISTORY

COMMERCE

OF

but who
hope of checking speculation,

the

unable

The

crash which

whole
the

to

consisted

currency

Ruin

difficult for

was

the

made

which

rise

quicklyfollowed

company.

blow

either the

check

was

or

found

the fall of the

stock.

as
especially
serious,

was

of discredited

now

that he

soon

the

issued

notes

by

widespread, and credit received a

promotion of legitimateenterprises

long time thereafter.

TOPICS

AND

QUESTIONS

Prepare yourselfto see the significanceof the facts of this chapter

by reviewing the functions and benefits of credit institutions like banks.
[See Bullock, Introd.,chap. 9, or other current manuals of economics.]
1.

2.

Write

report

on

the way

churchmen

in which

scholars

and

came

justifythe taking of interest on loans.

[Cunningham, Growth,
**
vol.
and
others
EC.
sect.
65
hist.,
following,esp. 72.]
Ashley,
2,

to

3.

Fill in the outline of the text, sect. 169,

Growth, vol. 2,

Cunningham,
4.
one

Write

of the

report

on

the

sect.

by details

biography,and

in

180.

business

career

Gresham,

of Sir Thomas

great English financiers of the sixteenth

Diet, of nat.

be found

to

or

century.

[Encyc.,

references in those sources.]

Antwerp in the sixteenth century. [See Motley,

Rise of Dutch
Republic, N. Y., 1858, vol. 1, 81 ff.,chap. 13.]
6. Benefits and dangers of speculation. [Hadley, Economics, chap.4.}
5.

Write

7. Manias

report

and

on

panics, modern

and

[Bourne, Romance,

recent.

chap. 11.]
8.

Write

report

on

one

of the

followingtopics:

(a) The

of commerce,
tulip mania.
chap. 3.]
[Oxley, Romance
"Bubble"
in
period
England, [Cunningham, Growth, vol.
2, sect. 218; Oxley, chap. 2; cf. Lecky, Hist, of England, and cf Macaulay's
historyof bubbles about the time of the founding of the Bank of England.]
and the MississippiBubble.
(c) John Law
[Oxley, chap. 1.]
The
A
(d)
Fugger family. [Paul Van Dyke,
captain of industry of
the sixteenth century, Harper's Magazine, June, 1910, 120:
276-284.]

(6) The

BIBLIOGRAPHY
As the
and

earlier

The
modern

subjectsof this chapter have been treated generallyby specialists,

considered

in their relation to

modern

history,the reading is scattered,and, for

economics
our

rather

purposes,

than

factory.
unsatis-

chapter by Cunningham in the first volume of the Cambridge

in part the ground of this chapter. The important
historycovers

commercial

crises

are

described

in the histories of

England, France, etc.

CHAPTER
THE

MODERN

STATE

If the

"

under

states

modern

reader

is

the

SYSTEM

the

of

influence

impressed,

1500, with

before

historyof Europe

MERCANTILE

THE

AND

of modern

Growth

181.

XVIII

in

influence

merce.
com-

studying
on

the

commerce

he will be

equally impressed,
in the period from
1500 to 1800, with the strength of government
and
with
the important part it played in commercial
development. We have here to sketch in brief the changes in
conditions,leaving to later chapters a consideration
political
in the historyof different countries.
of the details as they appear
of the lack

of

Commerce

itself

feudalism.
localities

largearea

strong government,

great force that

the

crept through the

Commerce

apart; it established
of

it built

allow

the world

up.

These

to escape

the

were

feudal

from
similar

system of government

circulation

the

broke

of

of

power
that

barriers

kept
through a

wares

wealth

it concentrated

country; and

which

was

in the

cities

to
changes needed
anarchy, and to construct

very

to that

which

the

Romans

had

subjects able and willing to pay

employed. Kings had now
of commerce,
they could transport their
taxes, and, by means
taxes, turn the proceeds into any shape they chose, and apply
them

wherever

it

Decline

182.

was

of

necessary.
feudal

power

with

the

rise of

mercenary

revenues
was
large part of the new
spent by
in .strengthening
their militaryposition. Feudal
governments
lords were
good fightersin the old-fashioned way, and would
without
not give up their local power
a
struggle. They had
before
to yield finally,however,
the standing armies which
kings called into existence towards the close of the Middle

armies.

Ages.

"

Feudal

lords loved

to

fight,but they
161

were

only amateurs,

162

after all,and

afford the

could

counted
the

men;

of

to

the

make

price,but

than

their

let their

and

troops

lords

to the

value

of

training,and

money

to invest

in the latest

Growth

in the

in power

development

had gone

of the

of

of

ready

entirely

in

warfare

again the kings,with

By

pay

armies, by adding

mercenary

"

were

could

almost

gunpowder

central

how

leaders
who

went

of
until

knew

in want

always

of

1500

Europe

ready

advantage.

an

government

the year

of the states

many

The

one

any

of untrained

improvements, had

of taxation.

far that

so

to

armies

here

number

strategy, and

were

advantages of the new

introduction
the kings. The
to
of the
increased the superiority

183.

they

as

drilled them

superiority.

the

money

and

equal number

an

tactics

feudal

as

soon

collected

their arms,

use

more

of

willingto
perfectly
the

to

studied

most

as

naries,
merce-

were

Enterprising men

for far

leaders

kings collected

The

who
submitted
professionals,
disciplinebecause they could make

expense,

living by doing so.

taught them
recruits,

they

business.

fightinga

whom

hand,

certain amount

COMMERCE

OF

make

did not

the other

on

to

HISTORY

as

shown

the process

had

assumed

like that which

shape substantially
they have to-day; and
feudalism
dead.
Government
force was
as
a
great political
could now
proceed to develop on the basis of an extended
of the gain of the central governterritory.Some measure
ment
in power
be had by notingthe increase of its resources
can
from
taxation.
half a million
English taxes yielded about

pounds
the

in the

sixteenth

century, and

next

little over

hundred

century,
about

years

twenty-eight fold.
and

seven

and

half million

forty million towards

the yield of taxes
in

The

revenue

system

was

1800.
Prussia

in
In
creased
in-

still crude

wasteful.

Every European state followed at one time or

another the practiceof raisingmoney
by sellingthe rightto
hold an office. Every European state lost
not only by
money,
the inefficiency
of the revenue
system, but also by corruption
of officials;
often half or more
of money
that the people paid
in taxes

these

never

inevitable

reached

the

treasury.

faults,national

resources

In

spite,however,
were

of

concentrated

164

COMMERCE

OF

HISTORY

these, but unfortunatelythey expended their

objectsthat

useless

were

whatever

into
which

led to

In few

states

an

of the Continent
; he

regulationsthat
An

excellent

the

interests.
too

gone
the

the

famines

very

end

"

of

free to seek

man
a

he

the

network

might

of

his

profit

government

pricesof

might

or

time,

regulation.

government

the rules of his trade, the

fixed

Attention

186.

was

idea

men

not

which

distracted

consciousness

far for the

of the

they
from

internal

that

interests of

designed

were

consume.

commerce

"don't

too

govern

by foreign

strong before

grew

of

school

prevent.

regulationhad

government

eighteenth century, when

to

reforms

physiocrats,protested earnestlyagainst

thinkers,

"let things alone"

much,"

mulas,
for-

Their

it.

(laisser

to be realized in the nineteenth

jaire),were
century. At
time, however, they had little effect;the faith in the power

government
attention

crushed

still strong in the

was
was

the

his

example is furnished by the grain trade, which

laws
cases
regulated so strictlythat in many

governments
caused

entangledin

the articles which

even

wares,

was

moulds

state

an

of

amount

enormous

he would

where

pleases,"was

it

shape

"The

harmful.

or

othei

on

energy

distracted

by

other

resistance of their

absolute

minds

interests.

of

their

rulers,and

of

the

rulers had

When

subjects,and established their

surplus of power which they
The
periodfrom the sixteenth

authority,they had a
inclined to apply abroad.
were
to the eighteenthcenturies is filled with
the
strife between
of
European states,each attempting to get possessionof some
the territory
and power
of a rival.
The states of Europe were
still young,
with all the vigorand all the inexperienceof youth,
and not until they had tried conclusions with each other were
they willingto settle down as they have done in the nineteenth
century.

object

It

of government

Kings
the time
another
power.

said above

was

one

and

of

king by

the

that

internal reform

expenditure

peopleswere

the

point."
stand-

modern

modern, and

to

best

king

of

with
objects appeared to be a war
he might get more
people under his

best

which

not

"from

the

was

MODERN

tracing later

In

it will be

their

examine

religious,
growing
Protestant

with

center, in France
had

first

at

disastrous

civil

Another

Europe

wars

the

were

The

states

of the North

Protestant

at the expense

be

may

ambitions

century the chief

wars

became
the
side

led

movement

wars.

series of
of the

out

grew

of the

comparatively little opposition,but in

where
neither
and
Germany especially,

clear supremacy,

wars,

here to

revolution.

Catholic,and those

"

tries
coun-

these

moment

Some

of the Protestant

out

remained

of the South

stop

we

character.

and

different

to
occasionally

clearness if

to

causes

histories of the
refer

to

necessary

it will conduce

but

to

commercial

the

165

SYSTEM

by religiousand dynasticinterests.

occasioned

Wars

187.

MERCANTILE

AND

STATE

called

of rulers to

dynastic,as

extend

contestants

France.

Spain and

were

power

in

In the sixteenth

rulingfamilies.

of other

their

they

Spain

dropped from the first rank, and France and Austria continued
the strugglefor supremacy
eenth
through the seventeenth and eightof
The
centuries.
to the student
seem
dynastic wars
those that came
the historyof commerce
unfortunate
as
as
from religious
and resources
differences.
They diverted men
from

commercial

development

Wars

188.

aspect of
wars

can

motive

interests;military

commercial

class

Still another

period.
"

extend

of

merchants

present time

this power

At

of the state.

authorityon

the

"

toward

of commerce,

One

however,
in

References

piracy and

of different nations

militarycharacter

the

It was,

consideration.
of

be

of government

commerce.

prevalence

should

reader

extravagant idea of the power

slightindeed.

very

The

predominant.

was

against an

period under

the

this

government.

or
dynastic
distinguishedin which the religious
the commercial
might enter to some
extent, but in which

to

the

by

of

reform

time

same

be

cautioned

seems

in

commerce

the

and

occasioned

motive

to

at the

production to destruction;they checked

fact stands

to

the

far

greater in the

precedingsections

warlike

attitude

each other have

invitingthe
out

historyof India, "No

suggested

armed

clearly,"
says

of

tion
proteca

recent

European nation

has

166

prizein

The

concern."

which

of the East

the supremacy

won

COMMERCE

OF

HISTORY

distant

make

did not

went

commerce

it a national
to the

not

best

producersand merchants, but to the group of the best fighters;

to organize and
but ability
not size and resources,
willingness
the questionof success.
determined
in conflict,
to risk resources
made
her fortune by an eightyyears'
The little state of Holland
Spanish in

broke

she

which

in

war,

East.

the

their national

the

The

of

power

the

Portuguese
still unready to

English were
distant

in

resources

positionin continental India in

by militarysupport which the French
subjects.
Wars

189.

the

New

World.

the

Between

"

of wars,

succession

maintain

or

territorial basis to
armed

for

and

arisingfrom

the

maintain

1815

World

herself

supremacy,

for the

of the

hundred

one

1815

she

from

seven

190.

expense

interests in
a

five

strugglewhen largerstates
and
Spain found their best

repaid,by

which

to

in

Europe

which

tied

victorious

from

the

positionof

she

had

commercial

been

twenty-six years between

had spent more
than half,sixty-four,
in wars
to twelve years in length.

Political

constant

their

the

found

but

European
which
they were seeking
and
Portugal lacked the

conflict;France
energiesabsorbed by dynastic interests
their hands
abroad; England emerged
conflict and

was

that

fact

Holland

extend.

to

conflict of colonial

1600

had colonies in the New

powers
to

arisingfrom

bark
em-

they
the eighteenthcentury
kings refused their

ventures,

their

won

and

and

importance

of

put.

Out

1688

and

ranging

in this

nected
period,conwith
the desire of governments
for ready money.
Commercial
expansion in this period depended, as said above,
the political
of the home
on
country. Did not, on the
power
other hand, the political
of the state depend on
merce?
compower
commerce

"

statesman

of the

time

and
question in the affirmative,

strange

We

think

with

would
an

have

answered

emphasis which

this

would

nowadays that the resources

of a state depend upon
the prosperityof the people,no matter
whether this prosperity
from agricultureor from
comes
manuseem

now.

_J
WEST

INDIA

ISLANDS
S

ihSTANIOLA

STATE

MODERN

AND

MERCANTILE

internal trade

factures,from

from

foreigntrade. Statesmen,
discussion,set a peculiarly
high
regarded it as a more
important

or

however, of the period under

value

industry than

of

branch

and

foreigncommerce,

on

chief

The

other.

any

for this view

reason

167

SYSTEM

lay in

the fact that

of

most

of the precious
European states produced little or none
metals, and could get them only by trade with a neighbor or
Now
with a distant country.
is "the sinews
of war,"
money
when
with
each
and
states
were
other, a
constantlyat war
the

good supply
of

means

do

not

about

worry

It may

have

been

the fact,however,

in the

that

state
early period of the modern
militarysystems operated more
smoothly when

money

in the

country

The

mercantile

191.

of

in the

ready money

or

in

not

the

supply,they
commerce

so

preciousmetals
would
than

make
it

make

in

the

up

favorable

of

system, aiming
country.

the country.

On

to

Whether

"

increase

rulers

the

be

balance
trade.

them,

for then

in coin

merchandise

more

the

foreignerswould

bullion.

or

foreigners

to

This

was

have

to

called

"a

of

into

trade," as tending to bring money

the other hand, if the country became

to an
amount
foreign merchandise
greater
offset by the exports, the country would
owe
a

abroad, and
At

stock

justified

were

for
could

of

that

if it sold

balance

balance

stock

the

about
the money
they showed
it a cardinal point in their policyto regulate
the stock of the
to increase,if possible,
as
the country.
They argued that the country

money

bought

fiscal and

the

abundant.

was

anxiety

made

of

matter

nowadays only as a
of capitalby exchange, and
supply so long as capitalin

money

is abundant.

statesman

money

forms

the

the

to

regard

procuring other

forms

other

seemed

money

necessity. We

first

the

of

this

"unfavorable"

an

was

debted
inthan

cash

balance

of

the

beginning of the period the government tried

to effect its objectsimply by prohibiting
the export of bullion
this was
the "bullionist" policy.
(goldand silver);
Prohibitions
were

were

found

serious hindrance

to

to
some

be

ineffective,
however, and

branches

of commerce,

that

168

COMMERCE

OF

HISTORY

the foreignersdemanded
in which
especially,
considerable
suppliesof the preciousmetals. The export of
generallypermitted,and the governbullion,therefore,was
ment
of
the
in
with
itself
contented
commerce
a
regulation
bullion into
merchandise
which, it hoped, would
bring more

the

with

East

the country than

If the

"

of

the

of the

Features

192.

carried out.

was

mercantile

ports.
system; restriction of im-

system,

as

it

main

the

expressed

was

seventeenth

the

that

will remember

student

mercantile

"

in

object

the

mercial
com-

and

eighteenth centuries,
to increase the credits in a country'sforeigntrade, and
was
diminish the debits,so as to get a balance in cash,the main
features of the policywill be easilyintelligible.
In the first place,imports were
discouraged. A Spanish
mercantilist thought that his country suffered "an
infinite
wrong" from the importationof fish from abroad, which, by
his reckoning,cost the country three million piastersa year;
policy of

he suggested either that

home

that

leave the country, or

the

need

fisheries should

be built up

so

that

permission
from
be obtained
the Pope to eat meat
on
Saturdays,which
would
diminish
the necessity for importation. A
typical
example of the ideas underlyingthe policyis furnished by an
appeal of the English salt-makers in the seventeenth century,
urging that the use of foreignsalt in the curing of fish be
money

not

prohibitedon the ground that it was

or

nation

abroad

which

might

be

if the coin of the nation

happen

war

to

our

is, on
methods

wisdom

taxes

was

and

detriment

to

their

of

kingdom

manufacture
own

at

from

home,

for

be carried out to pay for foreignmanufactures

people left unemployed, then in case a

potent neighbours, the people are

our

pay

is apparent

restrictions

own

with

Mercantilism
AS

"

prevent the importationof any

to

and

the

for the

pacitated
inca-

support of the same."

modern

protectionismeasilyran together,
in the quotation, but
the spiritanimating
in this period mainly mercantilist,
based, that

consideration
of tariff

of

the

flow

of

regulation,
moreover,

precious metals.
differed from

those

The

of

170

though

were

they returned, and

that

revenue

question,the sale of

without
After

one

pointan answer
policyhad no

important

the

countries

and

Gold
of

source

in

hurt

some

wares

effect

silver

cases,

brought from

were

they

needed

were

flowed

from

of the

America,
Spain to

business;it seemed

in

On

assurance;

distribution

the

on

policy

its effects.

were

supply,to Spain,and

where

the

abroad.

given with considerable

be

can

preciousmetals.
chief

they

exports,yet

period for

in this

naturallyinquirewhat

will

reader

the

stimulate

of the characteristics of commercial

this review

the

the

COMMERCE

professeda desire to
generallyretained

statesmen

export duties

OF

HISTORY

as

in an
unconsicous
though all the people of the world were
for checking or
conspiracy to defeat the plans of statesmen
directingthe flow. It is noteworthy that Spain, the country

which

had

the

best chance

treasure
apparently to accumulate
and which pursued a policyof exaggerated mercantilism,was
always complaining of the dearth of gold and silver,while

Oriental states, which

had

heard

of

mulated
mercantilism,acculargestores of bullion. The attempts of European
countries to rob other countries of their treasure
by legislation
for they
present, from one point of view, an absurd spectacle,

all

were

action

applying the

and

reaction

strainingaffected
196.

Important
The

in
principles
equal, and no

same
were

the

never

distribution due

effects

of

the

to

the

much
amount

economic

mercantile

same

of

way,

political

demand.

system in other

policyof the mercantilist periodhad

effects in other directions,
if it did miss the mark
it
at which
aimed.
It was
important, considered merely as a policy of
in checking the exchange of commodities
between
restriction,

ways.

"

states.

city had

Just

commercial

as

aimed

manors

and

the districts centering around

in an
earlier period,so the
self-sufficiency
states of this period were
led by their dislike of imports to
attempt the production of everything possiblewithin their
borders;and an international organization,in which each state
would
best fitted,
specializein the products for which it was
and
would
with others for supplying
depend on commerce
at

MODERN

STATE

was
deficiencies,

obvious

up

Europe

for the

system

of national

has not

the

on

commercial

foreignrelations

entirely

of the

be traced

policycan
of states.

most

It

not,

was

which
vexed
of the many
wars
said,the chief cause
this period; their cause
lay deeper than any theory

at

of favorable

unfavorable

or

balances

to

considerable

look for friends

the

balance

of

grouping
political

of

inclined

to

statesmen

the balance

which

countries with

England, for example, made

herself the allyof Portugalthrough a largepart of the modern
period,because Portugal bought her manufactures, and sold

was

favorable

extent, and

foes in the

or

The

of trade.

theory did, however, affect

countries

mercantile

it,and which

from

effects of mercantilist

is often

trade

grew

The

developing.

basis

171

SYSTEM

yet its mercantilist origins. One

even

in its influence
as

natural

which
protection,

outgrown

from

hindered

furnished

system

MERCANTILE

AND

in return

unfavorable.

or

wines

and

other

could

which

commodities

not

be

produced at home; and England kept alive the traditional

toward
France
because
the trade with that country
hostility
showed
balance.
regularlyan unfavorable
Colonial
196.
policy. Based on considerations like the
marked
preceding, the colonial policy of this period was
by
restrictions entirelyopposed to modern
ideas of commercial
freedom.
A government
which
permitted or encouraged the
"

establishment
to

itself to

see

did not

policyof

that

rob

it

lands,considered

of colonies in distant

other governments
it of the rewards

or

of

duty

selves
the colonists them-

The

success.

colonial

the

been picturedas purely

period has sometimes
the colonists to the interests of
one-sided,selfishly
sacrificing
the people at home.
This view leaves out of account
not only
the generous
help given by European governments to their
of legislation
dependencies, but also a great mass
aiming to
benefit the

colonists by assuring them

country, and
inhabitants
to
were

imposing

there.

the

idea

still citizens

government

that
of

sometimes

native

market

did

no

more

than

on

hold

the
lutely
reso-

they might be,

bound
to
and
help

wherever
state

home

in the

serious restrictions

emigrants,

their

COMMERCE

OF

HISTORY

172

to frame
government tried ordinarily
that mother
its regulations
country and dependency would
so
lines of production,and
to different
so
themselves
devote

maintain

The

its power.

sidered
supplement rather than compete with each other. It conit only natural and proper that the colony should trade
mainly or entirelywith the mother country. As said above,
the European states,
this was
a periodof bitter conflict among
stays
was
and a country'scommerce
thought to be one of the mainit seemed, therefore,to
of its militaryand naval power;
be the plainduty of colonists to contribute by their commerce
of the
the independent existence
which
to the resources
on
whole nation was
thought to depend.

The

will do

student

references

to manuals

TOPICS

AND

QUESTIONS

of the

best, probably, to study carefullyone

in the

to an
understanding
bibliographyas a means
of the topicsof this chapter.
1. An
exercise
time, and
supposing some
requiring considerable
with
narrative
valuable
results,is
acquaintance
history,but promising
the
of the European
states : England, France,
following. Select one
Make
of its wars
a
Spain, the Netherlands.
chronologicalsummary
the wars
under
of the heads
one
during the period 1500-1789, classifying

suggested, and
at

peace.

to

judge of

aiming

Estimate

the

the merits

Sections

2.

to

that

French

nation.]

gains and

of the

181-2

Review

get the total

spent in each

years

losses

by

and

war,

so

kind of

war

reach

position

and

policypursued.
to

cover,

extent, the

some

ground

of

chap.

15.

the history of some

state
chapter,and,
of the political
France, to appreciatethe significance
development. [Adams,

3.
at

if possible,
review

Make

the end

written

summary

like

of the hindrances

of this

to

period. [Taine,The ancient

J. Lowell, The
$2.50; Edward
of the French
eve
Houghton, 1900, $2.]
4.

Thomas
wrote

is
to

own

regime,N.

Mun,

that

an

Englishman

the

regular means
by Forraign Trade, wherein wee
strangers yearly than wee
by which Mun would

opinion

on

the

consume

who

"to
must

our

observe

Y., Holt, 1876,,

Revolution, Boston,

lived in the

encrease
ever

in France

commerce

seventeenth

wealth
this

of theirs in value."

and

treasure

rule;to sell more

State

the arguments

and determine
support this proposition,

question.

tury,
cen-

your

MODERN

Make

5.

and

each

attitude

the

the

difference

of

plate, export

silk

mercantilist

the

which

trade

following

of the

of

statement

173

SYSTEM

between

cantilism
mer-

protectionism.

Define

6.

written

brief

MERCANTILE

AND

STATE

phenomena
of

goods, import

of

import

would

toward

assume

of silver

silk,export

raw

port
knives, import of gold bullion, im-

of salt fish.

of
to

in

Study,

7.

fail in its

[For

and

increasing the

object

of

brief

and

clear

Y., Holt,

Discover,

evidence

of mercantilist

revenue,

Boston,

F.

see

given

Pol.

tribution
dis-

bound

was

in

Walker,

A.

the

try.
coun-

vanced,
ad-

econ.,

176-178.]

views.

speeches of American

[See, for example,

R.

or

determining

mercantilism

in circulation

money

writings and

1884,

influences
how

show

discussion

sects.

in the

the

economics,

on

precious metals,

the

N.
8.

book

W.

Thompson,

protectionists,
Government

Roberts,
of

History

protective tariff

laws, Chicago, 1888.]

Criticism

9.

of

the

old

colonial

policy. [Adam
EC.

4, chap. 7, part 2, reprinted in Rand,

nations, Book

Wealth

Smith,

of

hist.,chap. 1.]

BIBILOGRAPHY
A

students, is appended
also

histories

the
Of

general
above,

which

is abstruse

Political

J.

and

neither

especiallylecture
economic
of
19:

found

**

The

our

by Ingram,

will

sixteenth

**

system,

deserves

lecture

the

6.

of

and
most

land,
Eng-

commerce

its place

by beginners.
the

chap. 6,

is concrete

Expansion

and

in

chapter
century,

background,
which

system;

found

the

Probably

Seeley's

difficult

be

Eur.

purposes.

be

to

mercantile
found

in the

Set.

mercantilism.

between

1400-1650,

old colonial

will be

classic,but

mercantilism,

be

4, the

Schmoller,

for

hist.,vol. 3.
under

choose

Cheyney,

Europe,

satisfactory
will

mod.

thought

of untrained

purposes

Ingram,

must

Political

theoretical, or

is

and

student

of Central

intelligiblediscussion

war.

the

the

to

Cambridge

of

22

by Cossa

Figgis,

N.

institutions

descriptive;

chap.

to

of economics
discussions

noted

and

ill suited

bibliography, unfortunately

as

an

brief account

Encyc. Brit., 9th ed.,

354-358.

Among
McArthur,

the

smaller

chap. 4; Warner,

by forraign trade,
views

manuals

in their

N.

be

can

chap.

9.

Y., Macmillan,
is

typical form, and

students; chapters may

be

an

recommended:

Thomas

1895,
excellent

assigned

Mun,

Cunningham
England's

for discussion

for

treasure

mercantilist

$.75, presents
source

and

somewhat

and

vanced
ad-

criticism.

CHAPTER

XIX

AND

PORTUGAL

SPAIN

Extent

197.
now

the

development
of the

Europe

and

historyof

in different

Iberian
seemed

of the

power

modern

assure

first to

turn

the

its

states

great possessionsoutside

their commercial

Shortly before the close of the

suing
Pur-

"

by studying

commerce

countries,we

peninsula,whose
to

Spanish monarchy.

of

supremacy.

last century of the

Middle

Ages three events of great significanceoccurred in Spanish

the union
of Castile and
of the crowns
history. One was
sula
Aragon, which brought the greater part of the Iberian peninunder
ruler. The second was
the completion of the
one
centuries old war
against the Moors, by the conquest of their
last strongholdin Granada.
The
the discovery of
third was
America
teenth
The
by Columbus.
great Spanish king of the sixthe most
century, Charles V, was
powerfulsovereign in
the world.
He governed at home
with undisputed absolutism;
he was
ruler by one
of the richest
of some
title or another
the Netherlands);
European countries outside of Spain (especially
and he enjoyed in his own
right the sovereigntynot
Asiatic and
only over the greater part of America, but over
African

possessionsas well.
198. Rapid development of Spanish industryand commerce.
The rise to greatness of the Spanish kings was
by
paralleled
the development of the Spanish industrial organization.Spain
"

tad throughout the

Middle

Ages

been

rich

only

in her

raw

materials;she had

exported wool, iron, and wine, and had

imported all her manufactures, largelyin foreign ships. The
dustrial
long wars
against the Moors had turned people from the inarts, so that manufactures
174

were

primitiveexcept

in

80"

40"

60"

175

PORTUGAL

AND

SPAIN

20"

"0"

40"

20"

THE

SPANISH

MONARCHY

The

LongHud"

80"

map

shows

Wen

60"

from

approximately

40 'Onwnirlch

the

0' Lonjltud"

20

extent

of the

(1556-1598).

20"

Ewt

40"

from

Spanish possessions under

60"

Grwnwlcb

Philip II,

176

The

few cities like Barcelona.

and

trade

decided

Jews.

or

sixteenth

till the

noted

be

can

did

movement

ahead.

years

industries based

The

10,000

still merchants
for five

orders

had

and

the demand

supply

not

Ferdinand

from

rose

and

twenty-fiveyears,

under

Moors

gain full headway

ployed
said, the laborers em-

in the textile industries of Toledo

50,000 in about

but

ufactures
man-

not

it is

Then,

century.

Christians

the native

advance

classes in

advanced

most

not

were

the

Isabella,but

and

COMMERCE

OF

HISTORY

or

to

could
ten

even

wool, it is said, grew

on

they supported nearly a third of the population;Spain

silk and export the finished product, a
began to import raw
established
reversal of previousconditions;great factories were
till

make

to

transacted
of the

in

and

from

300

at least

as

to

500

many

Europe.

left

tons

Economic

199.

is this

decline

in the

rapid economic

than the economic

discussion

Over

complex

Lack
causes

one

ships

100
the

nies,
colo-

ports; 50 ships
Maria

together,

there.
ing
Astonish-

"

decline that followed.

actual

Campo

followingperiod.

development, it

in detail of the

an
about, first,

of Santa

manufactured

was

del

Spain yearly for

cleared for European

the salt that

carrying away

the

of

of business

amount

fairs of Medina

the

Spain made

the

and

wares;

it is said,often left the harbor

more,

as

other

important clearinghouses

measuring
or

and

soap

is less
of space

which

striking
forbids

brought

decline of

productivepower, and then

condition so nearly stationarythat Spain was
a
passed by
nearlyall the other states of western
Europe. One important
factor,the colonial system of the Spanish kings,will be reserved
for discussion later as a separate topic. In this placewe shall
take up some
of the significant
facts showing the decline,and
influences that make
it intelligible.
suggest some
The
decrease
was

show
This

the

most

of

under

serious symptom

population. In
six

of

1723

million,three

decadence

the total

million

was

an

actual

populationof Spain

less than

the

figures
for 1594, when
the decline had probably already begun.
decrease is the more
in that it affected largely
significant

urban

groups

whose

numbers

reflect the

prosperityor

178

the

understandingof

no

There
which

suffered

Spain

burden

The

201.

for industrial

that

little doubt

the

opment.
devel-

evil from

prime

(as it stillis)bad government.

The
chief political
taxes.
abuse
"

of taxes

burdensome

so

that

collection

of

method

the

in

of

form

in the

and

was

needed

measures

be

can

COMMERCE

OF

HISTORY

in their

peared
ap-

amount

industry was

stifled.

rapidly in the sixteenth century that in

to 30 per cent on
asserted that they amounted
1594 it was
a
man's
property, and that farmers could not exist no matter
how small a rent they paid;they left Spain or went
to prison.
The "alcabala," a tax supposed to be 10 per cent on a ware
bought and sold,was raised until it absorbed
every time it was
of the profits
of trade and
most
was
a
leading factor in the
of the eighteenth cendecline of industry. A Spanish author
tury
(Ulloa) shows that a man
engaged in the manufacture
of a certain stuff would
have had to pay in taxes actuallymore
than he earned; "hence
it follows that he would
have
gained
more
by making nothing,and in Spain it is profitablenot to
work."
Some
more
industries,
fortunate,paid 60 per cent or
40 per cent of the value of the goods as a tax to the government.
increased

Taxes

Customs

202.
"

The

so

ruinous

same

duties.

duties,on

The

the frontier and

inside the

country.

the

policyin

customs

marked

excesses

established

government

time

enormously high,or absolute

Commerce
penalty for infraction.
altogetherif it had not been for

wares

in

The

wares

Spain

after

were

corruptionof

the

the government,
and

nominal

duty

killed the remnants

for the
Other

favors
measures

prohibitionswith
would
the

have

absolute

destruction

for the

were

the

ceased
need

of home

of

death
almost

foreign

manufactures.

procured partly by smugglers through the

customs
of
guards, partlyby the connivance
which allowed foreignerssuch favors in measurement

valuation
was

the

which

rates

that

paid.

often

This

of active

not

allowed

over
wares

quarter of the
to

enter, but

it

with Europe,
Spanish commerce
refused to natives.
granted to foreignerswere
almost
monstrous
were
as
attempted, and

SPAIN

179

PORTUGAL

AND

failed

only because the government lacked power to enforce

them.
ceased
Spanish shipping declined until it practically
to exist outside the protectedcolonial traffic.
Finally,to complete this pictureof the difficulties under
which
labored in Spain, duties existed not only or!
commerce
the frontiers but in the interior of the country, hinderingthe
free passage
of goods and
the development of resources.
Spanish kings made
attempts to
failed through
frontiers,which
and

persons
that

the

royal need

the internal duties

the

remedy

abolish
the

done

It

Andalusia

kept

customs

interested
until 1717

not

was

with, and

away

and
insufficient,

was

internal

oppositionof

for money.

were

the

then

even

its internal

tariff barriers.

of the

example
furnished
raisers

policy;

evils of the

by the historyof

largelydevoted

flocks grazed in
in

sheep

on

fed

once

Mesta.

The

land

could

The
scended
de-

got such

Mesta

within
agriculture

the

excellent

An

"

productionof merino wool.

the highlands of Leon, and

Estremadura.

to

it killed the

had

the

government's economic
policyis
the Mesta, an association of stock

to the

summer

winter

that
privileges
the

of bad

Examples

203.

its reach.

Where

be alienated

never

for

againstthe Mesta for the

lease of pastures; proprietorsalong the route
of the sheep
sit passive and see the crops destroyedby them.
madura,
Estremust
of the richest provincesof Spain, became
once
one
of the poorest,and parts of it now
one
are
nearlydesert. The
to it other
policy of favoring one
interest,by sacrificing
interests more
characteristic of the diseased
important, was
condition
of Spain; and the wasting of national resources
political
another

purpose;

shown

examples

of

down

sketch

in the

on

which

permanent

Failure
we

find

to

bid

of the

case

Mesta

canals and

the

to deteriorate and

to the

204.

could

one

neglect. The

system,
allowed

no

Moors
go out

detriment

develop

sufficient

had

but

was

aqueducts of
lavished

of use; and

trade.

explanation of

the

the forests

"

tion
irriga-

their care,

of the soil and

colonial

of many

one

In

the

water

the

were

were

cut

supply.
foregoing

decline

of the

180

COMMERCE

OF

HISTORY

have

of Spain; we
industryand commerce
consider the questionwhy the evils of the
for commercial
not repairedby the chances

domestic
to
were

in
had

the

and

Europe

won

to

immense

an

all the

outside of Europe;

build up

ment
move-

the

crown

to-day the
period is attested by

countries

sixteenth

in the

rulers

Protestant

subject the Netherlands,

area

European

to eastern

Spanish

even

at this
Spanish possessions
which the Spanish language still has

hold

system

development

of

the

to suppress

of the

extent

Of

by the attempt

absorbed

was

home

route

sea

attention

the

Before

possessionsopened.

of the

and

discovery of America

the

which

still left

Spain

great commercial

have

to

century

the

was

empire

best

peared
ap-

chance

world-wide

on

world.

which

one

the

based

the

on

to

sessions.
pos-

Why was not this chance accepted?

It was
206.
a misfortune
Spanishcolonial policy. Taxes.
for the Spaniardsthat they quicklydiscovered preciousmetals
in America, and in seekingto increase their supply were
diverted
from
substantial basis of prosperity.But the final
more
a
for failure lies again not with the people nor
blame
with the
of the colonies,but with the government.
The
nature
nation
explais to be sought in the colonial policy of the Spanish
stricted.
kings. At first the trade to America was comparativelyunre"

Before,however, merchants
relations which
both

resources

government
so

would

often

were

the

laid its heavy hand

it

framed

establish the trade

develop the
the
possessions,

them

to

transmarine

held it down

the trade and

on

acquired vigor. Heavy

never

trade, and,

on

enabled

of Spain and

tightlythat

levied

have

could

as

in the

in such

of taxes

taxes

at

home,

short-sightedway

that

case

were

these

they

loss to commerce
than gain to the treasury.
brought far more
The
palmeo," for instance,was an export duty levied in the
eighteenthcentury on wares
merely accordingto their bulk,
"

without

regard to their value; its effect

export of foreignmanufactures,which
small

the

bulk

coarser

so

that

they

could

Spanish exports

were

afford to
taxed

was

to

had

great value

pay
out

encourage

the

the
in

duty, while

of existence.

Restriction

206.

America

sail to

not

had

but
at

the

of trade

to

given time, to
modern
Colon,

collect

merchants
weak

and

Ships could

"

suit

the

convenience

of

chants,
mer-

to

protect the ships at sea, and

but

cargoes,

America

it bound

its official red

helpless.In theory two

for Central

one

or

with

fast

so

appointed fleets.

given port (Sevilleor Cadiz),

given port in America
(Porto Bello near
Vera
Cruz). The government
by this

their

from

taxes

sail from

it easier

made

restriction

to

might

as

181

PORTUGAL

AND

SPAIN

and

tape that

fleets left
for South

one

the

to

of

arms

they

were

Spain each year,

America; in fact

in the eighteenthcentury,
together,especially
when
the colonial possessions
when
fleets did not sail,and
been
might have
entirelynon-existent so far as regarded
benefit to the mother-country.

there

were

years

On

emigration.
"

for

more

find

and

the

on

would

market

arrival in America

tremendous

and
would

of

Restriction

207.

and

advance
more

over

the

by
a

was

be sacrificed

no

time

sold

was

cargo

cost.

frequentlyas

arrival that there

discouragement of
times
some-

ever,
Sometimes, howwent

market

on,

for its

fleet

goods,

back

to Spain unsold.
or
brought
they
A specialreason
for this will appear
refer to
we
later,when
the growth of smuggling. One
general cause, however, for
of Spanish colonial commerce
be noticed
the weakness
must
in this place. In contrast
stimulated
to the English,who

emigration and so built up a market for their

colonies,the Spanish kings kept emigrationunder

wares
a

in the

system of

almost
regulationwhich was
inconceivablystrict. Colonists
in the New
World
not only by
were
discouragedfrom settling
of gettingpermissionto go out, but also by the
the difficulty
for making a livingwhen
they arrived. They,
poor chances
were
strictlyforbidden to engage in any industrywhich could
tied
threaten to compete with a Spanish industry;they were
down
to residence in some
province; and they were
particular
them
about
prevented from
by
developing the resources
restrictions which
applied not only to trade with the mother-

country

but

also

to

intercolonial

trade.

Trade

with

the

182

OF

HISTORY

COMMERCE

closelyrestricted

for instance,was
Philippines,

Districts in the southern

hibited.

part

of South

restrictions.
subjectto similar burdensome
La Plata might have to get his European wares
Continent

the

Porto

isthmus

to

ships a

year

was

established

was

Lima,

to

then

up

the

or

pro~

America

settler

by

coast, and

west

even

were
on

the

tripacross
across

the

of receiving
two
privilege
frontier
Ayres a customs
granted to Buenos
in the interior to prevent goods from
reaching

by this route.
208.
Supply of

the

When

Bello.

Peru

increased
furnished

and

even

were

had

only

an

declined

poor

market

desire

entirelyof

almost

who

Natives

the

As

amount.

vigor, exports

to

The

Spanish exports.

the

from

the

and

razors

they
wares,

home

colonies

Indians

barefoot

went

prices,but of course
other
or
European

for those

inconsiderable
in

for

forced,it is said, to buy

were

exorbitant

stockings at
natural

but

"

customers.

worse

beards

no

market

nists
by smugglers.
Spanish coloand riches,
slowly,therefore,in numbers

the

and
silk

had

and

no

took

manufactures

came

consist

to

other

European countries,
and even
these were
obtained mainly through smugglers. The
its regulationsagainst Spaniards,
government could maintain
but not against foreigners,
who
the most
absorbed
profitable
who
parts of the trade, and spoiledthe market for merchants
obeyed the restrictions. The Englishand Dutch islands became
the stations for an
flourished as the regular
illicittrade which
trade declined.
After 1713 England had the right,by treaty,
to the monopoly of the African slave trade with
the Spanish
and was
to send out nearlyfive thousand
possessions,
privileged
The
the rightto send
a
English had moreover
negroes
year.
.out
one
tradingship of 500 tons; they secretlyenlarged the
capacity of the shipand used accompanying transportsto carry
still more
209.

cargo.
Wares

Spanish America
most

cargo

wares

of the colonial trade.

furnished

to

"

Of the

commerce

productswhich

silver continued

important during the colonial period;the list of

begins always

with

an

enumeration

of the

the

ship's
"plate,"in
a

AND

SPAIN

coin,of

bullion and

left America

which

of them

one

which

but

was

small part

gold. A fleet
comprised 37 ships,"and in every
good as thirtypipes of silver one

in 1582

there

183

PORTUGAL

as

was

another, besides great store of gold, cochinilla,

sugars,
hides, and Cana Fistula (arrow-root?)with other apothecary
drugs." Descriptionsof cargoes in the eighteenthcentury are
enumerated
additional wares
similar;among
we
substantially
find indigo,
sarsaparilla,Jesuit's bark," (quinine)
cocoa, vanilla,
with

"

tea"

"Paraguay
Plata

chief

export from

the

La

ships brought nearly

Most
too bulky to
40,000 in 1723.
agricultural
products were
pay for transportation.
The Spanish exported to the colonies assorted cargoes; one
of

region was

(mate), etc. The

hides, of which

1625

included

210.

Reform

two

"Wines, Figs, Raisins, Olives, Oyle, Cloth,

from an
Cursies (kerseys,lightwoolens named
English town),
Linnen, Iron and Quicksilverfor the mines."
of the

eighteenthcentury

the

pieces.

The

government

execute

the

laws

which

was

meant

colonial

which
to

form

In

the

Spanish colonial system went

recognizedat last that it could

to

system about

1750.

"

old

it had

made, and

the basis of

that

the

not

system

great empire resulted

and in encouragingforeigners
Spanish commerce
only in stifling
still excluded in theory;
to great illegal
gains. Foreignerswere
the importance of the change lay in the opening of the trade
to the Spanish who
had before been excluded
by restrictions
and taxes.
allowed first to send out
Spanish merchants were
ships independent of the fleets,and then in 1748 the fleets
were
commerce
given up altogether. The prohibitionon

between

the

America

were

colonies

was

removed, and

many

new

ports

in

opened to the European trade. An indication

of the results that might follow such a change in policyhad
been furnished by the experience of Havana.
this city
When
was
captured by the English in 1762 and thrown
open to
vessels entered the harbor in less
English trade, 727 merchant
than
Even
a
though the prohibitionof trade with
year.
still retained;the effect of the -reform in policy
was
foreigners

184

duties increased

the customs
The

reform

too

came

colonies

The

system.

magical.

than

nothing less

was

COMMERCE

OF

HISTORY

In

about

ten

the

trade

and

eightfold.

late to benefit

destined

were

years

the Spanish industrial

to

exercise

their

new

strengthin breaking their old bonds; while the home industries

had decayed so far that a revival was
impossiblein competition
We
leave Spain
with industries of more
progressivenations.
found
her in the fifteenth
in the eighteenthcentury as we
tion
century, serving the other countries of Europe by the producthem
and
for
her
of raw
factured
manumaterials,
dependent on
goods. Running through the list of the principal
find among
Spanish exports in the eighteenth century we
them
that had undergone the first stage of manufacture,
some
like wine, oil,soap, soda, and iron; but most
were
simple raw
materials such
211.

as

wool, salt,fruits,and

Portugal; promise

sixteenth century.

perhaps a

million

"

nuts.

commercial

of

littlecountry of

The

inhabitants,built

up

greatness in

the

Portugal,numbering

in the sixteenth

century

empire worthy to rank with that of Spain, and

northern
exceedingin importance that which any of the more
I have alreadyrecounted
states in Europe had yet established.
the achievements
of the Portuguese in maritime
explorations.
The part which they played in these expeditionspreparedthem
for the oceanic commerce
which
developed after the discovery
a

commercial

of America

and

of the

route

sea

to India.

While

other

nations

stronger than
were

and

and industrial development

Portugalin resources
still unready to put forth their strength in distant commerce,
Portugalshared with Spain the extra-European world,

gained

returned

for herself the

Lisbon

in

richest part, the

with

East.

Da

Gama

which

repaid sixty
times the cost of the expedition. This was
the beginningof a
series of voyages devoted especially
to the importationof pepper
and other spices,which
could be bought so cheaply in the
East that they returned
immense
profitsin Europe. Even
the

to

gold and

less valuable

diamonds
to

1499

which

Portugalthan

came

the

cargo

later from

monopoly

she

Brazil
now

were

possessed

186

COMMERCE

OF

HISTORY

The Dutch
developingher commerce.
and the discovery of gold
expelledfrom that possession,
the growth of trade.
stimulated
Comparing the latter

Brazil,for the
were

there

of

means

part of the eighteenth century with

between
seventeenth, the commerce

the

earlier part of the

Portugal and Brazil is

said to have increased twenty-fold. In placeof a dozen ships
sailed every year for America, returningwith sugar,
a hundred
tobacco, hides,brazil-wood,gold,and diamonds.
The
however, went for the most
profitsof this commerce,
part to foreigners.Conditions at home had gone from bad to
The
worse.
slightadvance which the country had achieved
in

agricultureand

been

lost
and

men

by the attraction of
navigation. African

in the fields.

century

on

the

before

manufactures

into
all energetic spirits
slaves

Portugal staked

chance

took

merce
com-

place of

the

free

the sixteenth

everythingin

of commercial

had

discoveries

the

greatness, and

when

she

1754

tugal
Por-

lost,lost all.
Dependence of Portugalon England.
scarcelyproduced anything towards her

215.

Two

"

thirds of her

England

had

and

agents.
commerce

become

all the

The

physicalnecessities were
trade

English

of Brazil.

thither,and

mistress
of the

came

The

to

of the

Lisbon

entire cargo

support.

own

suppliedby England.

entire

country

"In

was

to

of Portugal,

commerce

carried

on

by

monopolize even

of the

vessels that

her

the
were

returned
consequentlythe riches that were
in exchange,belonged to them.
Nothing was Portuguese but
the name."
Reviewing the list of exports to Brazil we find,
in fact,that they were
which
wares
Portugalwas herself unable
to produce, and
which
were
supplied by England: woolens,
hats,stockings,
gloves,metals,linens,etc. England had taken
and
to make
weakness
advantage of her economic
a
political
mere
dependency of her, imposing treaty obligationswhich
the English producers every advantage in her markets,
gave
and which reduced her to a state of pitiablesubjection.
The
made
the
great Portuguese statesman, Pombal, who
statements
quoted at the beginningof this section,attempted
sent

SPAIN

to

industry, and

reanimate

off the

throwing

AND

English

187

PORTUGAL

succeeded

to

At

supremacy.

of

close

the

still only one

eighteenthcentury, however, Portugal had

in

slightextent

the

strong

industry,the production of wine (port,so called from

its place of shipment, Oporto) for the dinner
tables of the
English upper classes;and in spiteof the efforts of Portuguese
national

statesmen

the

even

wine

trade

controlled

was

by English

merchants.

AND

QUESTIONS
What

1.

geography
[Moses,

of the

one

report

in Journal
Write

3.

exports of Spain
Year-Book.]

Statesman's

or

Write

2.

chief

the

are

beggary

on

Pol.

results

the

on

and

Prescott

Econ.;

report

TOPICS

[Commercial

present?

at

in

vagrancy

Spain after

or
Motley.]
the economic
(especially

1500.

results)of

following:

The

Inquisition.
(a)
(6) Expulsion of the Jews.
(c) Expulsion of the Moriscoes.
[See the various books by H. C. Lea.]
4. Verifythe statements
concerning the character of Spanish government
in sect. 200.
[Prescottor Motley.]
With

5.

reference

of taxation

Fiske,

for

in the

S. now?

[See

is

regarded as

manual

of

reasonable

Civics, that

rate

John

by

instance.]

Write

6.

201, what

to sect.

U.

report

result

of

bad

Amer.

Review.]

the

on

government.

7.

In what

8.

Write

of

parts
report

decline

of

Spain

[Moses

in

Jour.

the

on

world

the

is

in

productivepower

Pol.

Spanish

beginnings of

Econ.,

still the

Spanish

Jones

as

in

the
No.

guage?
lan-

common

colonial

policy.

[Bourne, chap. 14.]

9.

Write

report

on

the

Spanish system

of fleets.

[Bourne, chap. 19;

Roscher.]
10.

[See

Was

in

there

Oxley
freebooters.]
11.

pp

the

Write

for the sailingof ships in

good reason
and
chapter describing the exploitsof Drake
any

report

on

the

great Spanish fairs in America.

fleets?
other

[Bourne,

291-293
12.

; Roscher.]
Spanish emigration

Spanish rule.]

to

America.

[Bourne, chap. 16; Moses,

Restrictions

13.

COMMERCE

OF

HISTORY

188

[Bourne, p. 289 ff.;Moses;

intercolonial trade.

on

Roscher.]
[Bourne, chap. 19;
14. History of smuggling in the Spanish colonies.
with the treaty of
of English history in connection
Roscher; manuals
of Jenkins' Ear," 1739.]
1713 and the "War
report on the characteristics and historyas a ware
of the following:cochineal,cocoa, vanilla,cinchona,
of one
of commerce
or
quinine. [Encyc.; Willis,Practical flora;manuals and encyclopedias
of commerce.]
in the list of exports
of the manufactures
16. Assuming that most
do you
infer as to
furnished by other countries,what
from
Spain were
Write

15.

Spain on her colonies

necessityto the dependencies?
hold of

the economic

country

Write

17.

brief

report

that the results throw

with

of the colonial system

the reform

on

trade

was

"

the mother-

and

the

light

p. 295 ff.; Roscher.]

in the sixteenth
century.

earlypolicy. [Bourne,

on

History of the Portuguese in the East

[Stephens,chap. 9; W. W. Hunter, History of British India, vol. 1.]
19. Effects of the sixty years of Spanish rule.
[Stephens,chap. 13-]
20. History of the Portuguese hi Brazil.
[Stephens,chap. 10; Keller
in Yale Review, Feb., 1906.]
18.

BIBLIOGRAPHY

which

be made

may

at this

point to C.

K.

torical
Adams, Manual of hisaid
third ed.,N. Y., Harper [1888],as a bibliographical
literature,
is far from answering modern
requirements,but which may still be

Reference

handling such collections of books as may be found

in a city library. A bibliography of Spanish history in the sixteenth
Hist., vol. 1, chap. 11, and is
century is appended to Cambridge Mod.
of

use

to

continued

Hume,

in

teacher

in later volumes.

The

historyfrom

Spanish people,
the earliest to

bibliographyis given also

N.

book

Y., 1901, a
present times, and which

which
pays

in Martin
covers
some

A. S.

Spanish
attention

to social

history.
Of general books

be put to
to the

good
writingsof

material.
of

Spain

use.
*

Spanish history,Prescott,Motley, etc.,may

on

Attention
H. C.

A useful paper
in the sixteenth

still

should, however, be especiallydirected

Lea, which

by Bernard
century, has

contain valuable

Moses,
been

**

The

social and

economic,

economic

condition

publishedboth

in the Journal

Econ., Chicago, 1892-3, vol. 1, pp. 513-534, and in Report of

Hist. Assoc., 1893, Washington, 1894, pp. 123-133.
Amer.
The Story of
of
the
Nations
in
the
series
is
of
value
for
no
our
Spain
Story
purposes.
On the colonial history and policy of Spain the student has several
E. G. Bourne, ** Spain in America
excellent books:
(with bibliography);
of Polit.

SPAIN

**

Habler,
World,
**

The

vol.

1,

Spanish

of

attention

navigation
vol.

19,

history,

the

1918,

best
For

3,

The

of

The

Klein,

deserve
Trade

Haring,

time

study

lishment
estab-

of
in

the

and

Hapsburgs,

Spanish

economic

1920.

21,

reference

Portugual

on

colonial
in

Mesta,

The

Studies

H.
the

the

1898.

Economic

in

of

Roscher,

1902;

Moses,

Putnam,

Clarence
Indies

the

Co.,

1904,

Y.,

Hist,

Helmolt,
"

Harvard

student:

Portuguese

Portuguese

N.

series

and

vol.

single
the

serious

Julius

Holt,

Y.,

America,

the

Spain

and

1273-1836,

The

chap.

of

in
in

works

between

N.

H.

Mead

Dodd,

Y.,

system,
rule

scholarly

Two

the

colonial

in

Spain,

of

N.

386-422,

pp.

Spanish

The

kingdom

colonial

189

PORTUGAL

AND

the

East,

is

ventures

chap.

H.

see

4,

The

Morse

Keller,

Stephens,
**

Portuguese

tugal.
Por-

Colonization,
in

Brazil.

XX

CHAPTER
NETHERLANDS

THE

216.

of

decline
commerce

The

of th'e United

Establishment

Spain and Portugal

passed definitelyto
first took

which

country

the

next,

its main

province,Holland.

an

but

area

supremacy

the

countries

the

The

of that

fourth

one

the

lead, and

Netherlands,

consider

was

Netherlands.

or

as

With

"

in

European
the

of

which

it is often

York

possessionswhich

North.
shall

we

called from

Netherlands, which

of New

the

has

State, was

now

part

come
by marriage and
the rule of the Spanish crown.
Its natural
under
resources
are
slight,and in the early part of the sixteenth century it
known
far behind
the adjoining Spanish territorynow
as
was
of
the
contained
developed manufactures
Belgium, which
the great port of Antwerp.
The
Dutch
Planders
and
were
capacitiesof the people,
strong, however, in the individual
able to win
and in spite of the disparityof the contest
were
which
their independence from
came
Spain in the Revolution
in the last part of tlie sixteenth
century.
A variety of causes
the Dutch
combined
to urge
to revolt.
They suffered under Spanish rulers politicaloppression,and
ment
movereligiouspersecution designed to crush the Protestant
which
they had embraced.
They suffered also,however,

of

the

under

the

commercial

they could

bear

commerce

by

union

of the

this

outlet,and

and

of

growth.

217.

Rise

so

with
of

forced

of

Spanish policy. These

outlet for their growing
an
through Portugal, but the

restrictions

long as they

trade

crowns

politicshad

Dutch

the

of

found
East

Portugal in 1580
fightfor the means

Spain and
them

to

commerce.

"

The

Dutch

closed

even

of existence

were

forced

to

the

good

progress

before

their

in

their

India

the

by

attempt

Arctic

Van

boldness

northeast

was

maintained

exploring the

route

to

southern

hemisphere.
their independence and
Spanish and Portuguese

seventeenth

with

for

routes

new

up

therefore,they had achieved

needed
no
longer to fear the threats of
rulers,they made
rapid strides in oceanic
the return
1602 sixty-five
ships had made
throughout the

made

especialenergy; and
Land, New Zealand, attest

When,

and

had

showed

Diemen's

in

later

open

establish

they

ocean

Tasmania,

names

to

and

European neighbors
used, also,to distant

revolt.

In the vain

trade.

their

with

commerce

They had become

by explorationsdesigned to

voyages

the

the difficulties of life at home,

by

sea

191

NETHERLANDS

THE

both

Asia

century
and

Before

commerce.

to

voyage
an

active

India,

commerce

America.
We

tempted, by the
took againstSpanish oppression,
positionthat the Netherlands
to ascribe to the Dutch
a
greater love of liberty than they
which
The
government
they established for
actually had.
themselves
marked
was
by serious faults of oppression and
policy was
corruption,and their commercial
nearly as narrow
that of Spain. The exclusion of foreignersfrom
trade with
as
their distant dependencieswas
only natural in this period of
Dutch

218.

the

even

commerce;
as

commercial

they pleased.

minuteness.

which
of

and

areas,

The

"

Dutch, however,

The

colonial

great companies, which

certain

policy.

were

are

not

were

commerce

free to

trade

absorbed

was

granted a monopoly

by

of trade

in

regulated this trade with extreme

companies had a complicated organization
which

and
prevented efficiency

encouraged

the

improper

use

personal and

influence.
political
The Dutch
West
India Company.
West
219.
The Dutch
India Company, founded
of
in 1621, controlled the trade west
"

the

Cape
of

coast

company

high

of Good

Hope, comprising commerce

Africa, and
was

dividends

precariousfor

the

east

coast

of the

with

the

Americas.

west

This

It paid
extraordinaryspecimen of its kind.
for a time, but its earnings were
necessarily
them
the ordinary operations
it made
not from
an

192

OF

HISTORY

COMMERCE

attacks on the
but from armed
colonization,
Spanish silver fleets. It was reallya corporationof privateers.

of

and

commerce

of

character

The

the

be

can

company

estimated

from

the

the Netherlands
it actually opposed peace between
of 1633 it said that the services
Spain;in its remonstrance

fact that

and

desired of it " for the welfare of

Fatherland

our

could

and

the destruction

be

accomplished by
trade with the Indians, or the tardy cultivation of
the trifling
uninhabited
against
by acts of hostility
regions,but in reality,
of

the

hereditaryenemy

our

Dutch

The

Netherland

of Guinea

soon

lost their

York), and

(New

which
possessions

the

Spain and his subjects."

possessionsin Brazil and New
the originalcompany
solved;
diswas

property of the King

shipsand

and

in

South

not

of

the Dutch

America

retained

on

the coast

unimportant. Small
islands in the Gulf of Mexico, which
in themselves
produced
littleof value,served as stations for the Dutch
carryingtrade,
which

continued

220.

founded
the

The
in

East

India

1602, which

monopoly
the

to be

of trade

were

considerable.

Company.
secured
and

"

from

rule from

The

East India

the

the

Dutch

Cape

Company,

government
of Good

Hope

Straits of

It
Magellan, enjoyed a longer existence.
established trading stations on
various points of the Asiatic
coast and in South Africa,but found the mainstay of its power
in the rich islands of the Malay archipelago,
in the
especially
small group
of spice islands and in Java.
Here it broke the
of the Portuguese,and gained for itselfa partial
or total
power
of the products,which were
the most
monopoly of some
among
highlyprizedluxuries of Europe.
In 1677 a fleet consisting
of one
small vessel and six large
of about
100 sailors and
ships,of which each carried a crew
25 marines, brought a cargo
million
booked
at nearly two
mense
gulden (or several million dollars). The cargo included imto

raw

and cinnamon;
quantities of pepper, nutmegs, mace,
silk,and silk and cotton textiles from Persia and India;

indigo,borax, saltpeter,
fine woods, etc.
Neither tea
shellac,
coffee appears
nor
in this list,
but in the next century, when

194

port
a

the North

on

Baltic

or

COMMERCE

OF

HISTORY

In

seas.

total of 3,450 passing through the

Dutch; and
would

this time

at

Thirty to fortyDutch

to

the

west

trade

after 1648,
that

from

exported

but

between

until

Even

France

and

the fisheries

Growth

222.

Dutch

in

as

The

various

forms

tries
coun-

of wool

English together
figure in

the

tures
manufac-

the

Dutch

porary
contem-

occupied

were

persons

the

English
employed over

by

than

combined.
many

and

in

commerce.

of

business

foreign commerce

home.

as

Archangel,
products in

bales

attained

valuable

more

free.

northern

which
fisheries,

England

asserts, indeed, that

and

be

ships almost

the

16,000

to

not

was

said to be

2,000 boats, were

and

French

Dutch

the

Dutch

Spain;

grass

would

Netherlands

exports reached

Dutch

century which

the

the

to

to

year

were

that

ships

carried

Spain

country while

seventeenth

of

every

exporting 15,000

3,000.

1740.

and

of France

coasts

monopolized the
year

shipswent

formerly dealt

had

Hansa

the

which

Baltic

kept

not

were

chief port of Russia, and

the

then

the

to

official declared

trade

Baltic

if the

sold for firewood

Sound

exchange and

Amsterdam

in the

grow

Dutch

of

1640, 1,600 ships out

prosperity of

activity. The
"

reflected

was

in business

activityat

rapidlyoutstrippedthe southern low

under
countries (now Belgium),which suffered cruel repression
of Antwerp passed to
Spanish rule; and the great commerce
Amsterdam.
Speculation and
banking developed in their

of

Europe.

period many
in

and

the

Scholars

Netherlands

features which

for

establishments grew

Dutch

money

business

center

life of this

modern; speculation
strikingly
tures
Manufaccrises,pools,and "trusts."

impulse of

gild system

the

became

find in the

stocks, commercial
felt the

old

Netherlands

progress,
modern

more

up;

are

new

and
forms

industries

broke
of
were

bonds

the

of the

enterprise. Large
introduced
(hats,

silk,
tanning,etc.);the Huguenot refugeesexpelledfrom France
were
granted a welcome for which they gave a rich return.
223.

why

did

Commercial
the

decline

Netherlands

of the

lose the

Netherlands.

commanding

"

When

and

positionin

European

questionswhich
face, and in
given.

are

must

commerce

will be

answers

country took the lead away

What

commerce?

Those

it?

195

NETHERLANDS

THE

the

the

student

from

of the

historyof
followingparagraphs the

lost
point; Netherland
time
when
the leadershipto England. The
this change occurred
be stated with almost
can
equal brevity;it was during
hundred
the one
1650, roughly the date when
years between
Cromwell
gathered up the scattered forces of England to use
them
for her commercial
the
advancement, and 1750, when
of England could no
commercial
longer be quessupremacy
tioned.
There

The

they
One

is

doubt

no

for the

reasons

reason

be

can

here

as

detail,that England was

the Netherlands
side, was

simply fail to keep

224.

Dutch

Reasons

for decline.

increased

commerce

maintained

about

commerce

country
too,

the hold

in

same

The
a

so

very

of the

it lacked

Dutch

"

in

was

strong central
the

hardest

as

topics to be studied.
wards
a
fact,to be proved aftergrowing stronger. On the
growing weaker, or did it
English advance?

So far

the facts

as

are

till about

amount

with

other

to

support

known
and

1730

powers.
commerce

plied,
It imwhen

thermore,
weakening. Furlike the Hanseatic
League in

foreigntrade

on

the

figures afterwards; but world

lands
the Netherrapidlythat relatively
told against
size of the Netherlands

resources

Netherlands
a

the

contest
political

lack of native

the
that

the

growing

was

fell behind.
the

with

pace

usual

as

valuable

most

stated

are

in
Dutch

last

change

certainlythe

are

the

about

power

was

and

separate units

policy,and
of which

gave
it

was
independence
composed. The important units,in the economic aspect, were
small-scale commerce
able to carry on
cities,which
were
a
but which
could not unite to bring their
successfully,
very
best peopleto the front in a big-scale
organizationwhich could
The Dutch
did not pull
compete with that of other countries.
ciency
the most
of what
together to make
they had, and the ineffiand
had
always characterized the
corruption which

great

to

196

local governments

under

which

which

had

and, in

and

labored

Rule

by family
inordinatelyhigh taxes,

and

it favoritism

industries

time.

with

worse

grew

with

rings brought

COMMERCE

OF

HISTORY

dwindled.

Manufactures

declined.
formerly flourished now
comparisonwith other European states

at

of the

the
abroad, the Netherlands
states, retaining in its colonies and

of commercial

East

eighteenthcentury,

in its developed

greatness.

India

In the
Company.
the Netherlands
was
strugglingto

of the Dutch

Character

first rank

of its former

banking system only reminders

home,

eighteenth

fell from

century, weak

226.

Weak

when

"

it was
hindered
rather than
position,
seemed
helped by the East India Company. The company
to have the chance to make
stupendous profits,for it sold its
in
for very high pricesin Europe, and it paid for them
wares
Asia very little or even
nothing. It used its power to force
of these wares
at nominal
the natives to supply it with some
pricesor absolutelygratis. The very fact,however, that the

maintain

its commercial

company

could get its

them

in this way,

wares

by taxation, suggests

like those

of

and

state

that

unlike

the

those

This

shared, to

government

the

an

had

full,the

get

expenses

ordinary commercial
had

company
of

would

state

company

of

corporation. This was the fact;the

the civil and militaryestablishment

as

to

support

regulargovernment.
evils of the
political

efficie
corrupt and inIt was
against the
strong enough to hold its own
Portuguese, or against the English when
they began their
for the English
match
no
expansion in the East; but it was

time;

both

when

their
226.

Dutch
such

Decline
East

to

Company

East

the

it

eighteenthcentury.

after 1700.

fell behind

Company

was

"

After

rapidly.

1700

It

the

enjoyed

high reputation,and

cessfully,
kept its condition secret so sucto
its credit was
unimpaired, and it continued
hundred
For nearlytwo
by borrowing money.

it declared

20, 40,

1602

of the

India

dividends

years

in the

and

strengthdeveloped in

that
pay

home

at

to

or

1796

even
was

dividends
50
over

per

at

rates

ranging

cent; the

18 per

cent.

from

average
The

crash

12}

per

dividend
was

bound

cent

from
to

THE

the
finally;

come

in

dissolved

was

which

were

paid its last dividend

company

1798, leavingdebts

assumed

of

the Dutch

by

QUESTIONS
Commerce

197

NETHERLANDS

fiftymillion dollars,

over

TOPICS

1.

and

industry of the Netherlands

[Blok, vol. 2, chap. 12.]

2.

Commercial

involved

books

in the fifteenth

in the revolt of the

Mod.

[Rogers, Holland, Cambridge

1782, and

government.

AND

considerations

in

Hist.,

or

one

lands.
Nether-

the

of

tury.
cen-

older

like

3.

Motley.]
Beginnings of Dutch

with

commerce

the

Indies.

[Blok, vol. 3,

chap. 9.]
4.

From

Land, New

Dutch

source

bearingthem?

The

Dutch

the

were

Zealand, derived; when

later
5.

what

Tasmania, Van

names

and how

Diemens

they attached

were

to

tries
coun-

[Encyclopedia.]

in North

Netherlands

and

America;

their

was

did the loss of their

commerce

with

New

important,
seriously
of U. S. historyand the references
carrying trade?
[See manuals
given in them; note the effect of the English Navigation Acts.]
6. The
Dutch
in South America.
Dutch
trade on
[See Edmundson,
the Amazon, English Historical Review, 1903, 18: 642-663, and later.]

possessionaffect

their

7.

The

pansion,
policyof the East India Company: trade and territorial exin Java,
monopoly, regulationof production. [Day, Dutch

chap. 2.]
8.

The

9.

Write

Dutch

in the

East

Indies.

Dutch

commerce

modern

trusts

[Rogers,Holland, chaps. 20, 22.]

at the height of its prosperity:
countries traded with, wares,
shipping,fisheries. [Blok, History,vol. 4,
book 6, part 3, chap. 1, part 4, chap. 4 ; vol. 5, book 7, chap. 4.]
10. The
Bank
of Amsterdam;
and historical imporits peculiarities
tance.
of nations,
Smith, Wealth
[Rogers, Holland, chap. 24; Adam
Book 4, chap. 3; C. F. Dunbar, Theory and historyof banking, N.Y., 2d.
a

report

on

ed., 1903, chap. 8.]

11.

Forerunners

Early trusts
369-380.]
12.

The

in

of

in the

Holland, Political Science

naval

Quarterly,N.

[A. Sayous
Y., 1902, 17:

English and Dutch in the time of Cromwell

[Manuals
English history.]
13. Dutch
in the period of its decline.
commerce
[Blok, History,
vol. 5, book 8, chap. 5; vol. 6, book 9, chap. 3, book 10, chap. 4.]
14. Internal troubles of the Dutch.
[Rogers,Holland, chap. 34.]
15. The
East
India
"contingent system" of the Dutch
Company.
[Day, Dutch in Java, p. 61 ff.]
and

Charles II.

war

of the

Netherlands.

of

198

in

[Dutch

COMMERCE

India

East

Dutch

and

Company,

its

faults

3.^

chap.

Java,

the

of

Organization

16.

OF

HISTORY

BIBLIOGRAPHY

his

is

work,

vol.,
I

Dutch

N.

Holland,

Y.,
A

importance.

economic

of

of

Story

**

Blok's

History

of

the

Thorold

E.

James

economist,

English

The

Putnam,

better,

Rogers,

larger

though

people

of

the

included

chapters

several

1889,

has

and

Netherlands.

on

topics

expensive

more

N.

in

Y.,

Putnam,

1898-1912.

have
in

Macmillan,

attempted
their
1904.

most

to

cover

important

the

colonial

dependency

and
in

history

commercial
The

Dutch

in

Java,

of
N.

the

Y.,,

XXI

CHAPTER
SURVEY

ENGLAND:

OF

DEVELOPMENT

COMMERCIAL

about 1500.
Survey of England's positionand resources
The
assumed
in this
importance which English commerce
in pausing at the
us
period and has since maintained, justifies
227.

start

to

consider

the

conditions

prevailingat

of_the^period, aboutJJiOfl
England and Wales together had
than

that

equal to

of most

the

an

of

much

area

of the

the

important continental
and less than that of
Illinois,

beginning^
smaller

states, about
New

England.
Ireland was
sort of colonial possession,
a
counting for little;
till about
Scotland
remained
1700
an
independent kingdom,
and
continued
to be relativelyunimportant after the union.
will be used
England (a term which
roughly for other parts
of the
United
included) had from
Kingdom as they were
nature
of supreme
endowment
one
advantage, separation by
the

area

Chamigl_fromthe

defense

the

Continent, which
of

government

made

unnecessary

military absolutism, and

for

allowed

popular freedom.
From
the economic
vored
standpoint,however, the climate faand
the mineraPresources,
grazing rather than tillage,
still ot comparatively little usei
tin, were
England
asidejrom
well as a small country in 1500, needing to rely
was
a poor
as
the energy
their cooperation
of the people and
upon
upon
themselves
and with the government to win a place
among
the leadingcountries.
among
advanced
228. England's chief advantage ; jier
organization.
Progresshad been made, however, in various lines of which
the importance was
time went
to appear
on.
as
Sgr_fHnm hn.d
disappearedfrom the country districts,and production was
an

earlydevelopment

of

"

199

200

stimulated
of their

by

for work

fair reward

COMMERCE

OF

HISTORY

well done.

On

the English had

nourishing_sheeg_jndustry

cloth_manufacture.which had outgrown

the

the basis

built up a
restrictions

narrow

the inestimable
advantage of
gildsystem, and won
times; the industry was
an
organizationlike that of modern
much
ruled by antiquated custom
or
not
so
by the laws of
who
had invested their
as
guided by specialists
politicians,
or
trade,and who linked their fortunes
capitalin manufacture
of the old

with

in

Finally,
oft^JEn^Ush.poJitii^.cjQnstitutioii.

Benefits

229.

extension.

and

progress

"

advantages which the Englishof this period

enjoyed, we must
put as perhaps the chief and certainlya
development. They were
very important one, their political
to
not only spared from the necessityof using their resources
repela foreigninvasion,they had attained to national unity
themselves;and they had a government which, however
among
crude it may
much
seem
more
closelyin touch with
now, was
the peoplethan that of most
states,and which proved capable
of further development at comparativelyslight
ured
measexpense,
summing

in

the

up

and

men

commercial

The

money.
of

assets

student

in

who,

England during

this

estimating the

period,left

of

out

the

English constitution would go wide of the mark.

and expulsions,
Dutch
Spanish inquisition
corruption,French

account

oppression and
be free from

these

worth

was

Development

230.

people

revolution,German

about

the

Seeley,combats

of the

fifteenth

English into
century.

genius of the

colonizing
people. During the
were

the

not

excellent

said

from

Middle

"

active

an

The

"

English historian,

in the blood

race"

Middle

commercial

to

be

"

of

men,
English-

maritime

and

Ages, in fact,the English

great navigators,in spiteof the facilities offered by

harbors

English commerce
been

to

"

great wealth.

the idea that it is

that it is "the

disunion

Italian

or

in

was

the

carried

rivers
on

previous section.

passive

and

to

Ages, in

active

commerce

the fifteenth and

penetratingfar inland;
has
as
largelyby foreigners,
of the English
The advance
came

sixteenth

at

the

close of the

centuries.

In 1400

202

which

to America, and
frequent voyages
followed by daring expeditionsto the far North
These
to India, either east or west.
of a passage

began

-which

were

in search
distant

COMMERCE

OF

HISTORY

of

series

too

were

voyages

venturesome

they sought
regularcommerce;
who
went
The
English merchant

of

"customs

in

States

now;

Henry

VII

over

other ports,like that of New

York

cent

of the

later the

3 per cent

and

customs

which

The

revenue.

had

been

while
not

The

of the

as

Tyne jjaid

Bristol,destined

of

minor

list of

to

trade, paid only

other port than

No

ports comprises
but

total

of the

cent

per

Ages

it

which

some

were

now

relative importance

of at all.

Partition

reader

much

Flanders

trade,by which

by JBogton.

as

of

time

(Ipswich,Sandwich,
in imporlike Hull, which were
destined to grow
tance,
great modern
ports like Liverpooland Cardiff are

yet heard
234.

cent; the

per

American

great in the Middle

rapidlydecliningin
etc.),some,

for the

exceeded

was

contributed

named

total,while the port

great haven

lead

in the United

yet begun. ^Newcastleupon

not

to the

immense

total in the

coming, and the Guinea

galleyshad ceased
revived later,had

can

fell
port,^Southampton^

(say 1500). The second

period from 18 per cent to

in this

contributed

they

half of the

idea of

An

English ports

is the

it contributed

was

bound

proper,

strikingfact

most

with

shared

trade,and

slave

of the

proportions which
The

revenue.

London.

those

Hawkins

demi-Moor

foreigncommerce

the

be gained from

be

napping,
smuggling, kid-

chieflyto
African

circle of

narrow

"

the relative rank

5 per

the

means

plunder.

or

cord, to record his achievements.

Relative
standing of the English ports.

233.

of

outside

John

robbery, and murder.

of the
Queen Elizabeth the profits
proud to add to his coat of arms
with

rather discoveries

his hand

turned

civilized Europe

be the

to

yet

as

of the field of

will remember

the

commerce

among

discussion

difficulties experienced in this

was

left to

the

merchants

individuals,and
who

traded

the
to

reasons

any

in

companies.
previoussection
"

period when
for the

commerce

association

country. With

that

of

dis-

204

in mind

cussion

the later

not

so

in
organizationof English commerce
sixteenth century and followingyears

strange

it may

as

world

of the

could

specificcompanies, who
routes

of trade

inside

the

much

the

carried

had

on

mapped

modern

companies

Commerce

with

the

only by

members

of

and

out

railroads divide
the

were

North
as

will

only three

with

1600

Portugal.

Beginning in

country.

compass

as

be

about

the

be at first. An-oreU-

to

appear

Englishman could trade

nary
countries:
France, Spain, and
rest

COMMERCE

the

period of
seem

OF

HISTORY

and

follows:

occupied the
the territory
going around
h

Company, trading to Scandinavia and the Baltic;the Russia

Adventurers, controllingtrade from
Company; the Merchant
Denmark
the free-trade gap
to France, where
appears_^_the
Levant Company, tradingin the Mediterranean; the Guinea or
African
Company; the East India Company, with its immense
Asiatic

field;and

then

dents
companies familiar to stuof American
History, the Virginia Company, the mouth
PlyCompany, later the Hudson's Bay Company, etc. By

of the

means

trade

the

of these

various

companies England

marketed

her

her woolen fabrics,and imported the

surpluswares, especially
naval stores from the
goods of which she stood in need
and wine from the Continent,gold from
Baltic,manufactures
Africa
(cf. the English "guinea" of twenty-one shillings),
"

Oriental

products,

colonies which

had
affect

and

been

young

the

early seventeenth
importance.
235.

Characteristics
and

fish from

and

founded

greatlythe

too

to

furs

in the New
sum

century, but
of

the

America.
World

were

The
still

total of English trade

increased

rapidlyin

companies. In
companies show
"

in

mercial
com-

their organization

such variety
development these
that it is impossiblehere to do more
than indicate some
mon
comfeatures of their history. They tended to one
of the two
or
types (joint-stock
regulated)which have been described,
and
sometimes
The
wavered
between
the two.
monopoly
which
they enjoyed made them unpopular with the public,
who
thought that it was used to secure
unduly high profits,

and

still

COMMERCIAL

OF

SURVEY

ENGLAND:

unpopular with
sharing in the

more

205

DEVELOPMENT

private merchants

who

were

trade.
These
merchants
who
prevented from
of lack of
to the companies, because
could not gain admission
lopers"
capital,or distance from London, formed a class of "interor
smugglers trading inside the companies' preserves.
the close of the seventeenth
Toward
against
century the feeling
the companies grew
forced upon
so
was
strong that reform
fees were
lowered or exclusive privileges
were
them; entrance

takerf away

the

and

trade

thrown

was

Some

open.

of the

companies continued to exist,however; the greatest of them

all,the East India Company, kept its hold on the trade with
Asia4and other companies continued as semi-publicor private

corporationsafter

their

chief

privilegeshad

been

annulled.

dissolved
till 1825, and
the
not
was
Company
is still in existence,as an
Hudspn/s Bay Company
ordinary
trading corporation.
in the eighteenth century.
236. Rapid growth of commerce
The period in which the companies were
most
active,roughly
The

Levant

"

the

seventeenth

century,

preparatory

was

the

to

period

of

enterprisewhich in the eighteenthcentury brought

the commercial
states.
England to the leadingpositionamong
The advance
is shown
by the followingtable,givingin millions
of pounds sterling(and a rough equivalent in dollars)the
annual
of trade in the different periods:
average
individual

The

figuresshow

between

five and

advanced

speed

of

"

revolution

An

the

foreigntrade

six fold in the

considerablyin
Relative

237.

that

the

in the

share

indication

course

of

of the

first half,but

England

grew

century; that it
moved

with

the

second.

of different continents
of the

direction

in

of the

merce.
English comtrade, and of

206

COMMERCE

OF

HISTORY

importance of different elements in it,is given in

to round
the following
again being simplified
tables,the figures
of England was
distributed as follows :
The commerce
millions.
the relative

Europe

The

student

not

attempt

the

attempt

perhaps need
outrightsuch

may

to learn

would

be

Asia

America

the caution

that

statistics

are

of

waste

Africa

as

Total

he should

given here;

The

figuresgive
descriptionthe

energy.

of
concisely than any other method
of a country's commerce,
measurement
and are
valuable for
reference.
They must, however, be translated into a more
simple expression of facts before an ordinary student can
In
and hold it permanently in mind.
grasp their significance
more

the few

lines of text

suggestedthe most
and will point out

followingthe

obvious

first table the author

conclusions

to

be drawn

has

from

it,

applicablehere.
The trade with
still by far the most
Europe was
tant
importhan all
part of English commerce,
being equal to more
the rest of the trade together. It grew steadily
throughout
the eighteenthcentury, as the figures
show, but still it was a
less important part of the whole
in 1800 than
it had been in
1700.

At

fourth

of the

The

two

others

the earlier date

total; in

other continents

and
important,America
nearly equal speed, their commerce

with

most

fivefold in the
lead

over

of the

course

its older

but

one

furnished

they

1800

furnished

nearly one half.

Asia, were
coming up
increasingroughly

century.

America

rival,while Africa counted

had

for very

clear

little

in the total.
"

QUESTIONS
1.

Town

2.

Economic

lifeand
and

trade

about

social

AND
1500.

conditions

[Harrison'sDescription,ed. by

TOPICS

[Soc.Eng., 3: 131-145.]
England in the sixteenth

in

L.

Withington, London,

tury.
cen-

1902,

ENGLAND:

SURVEY

but too

readable
he

diffuse for

from

needs

who

student

has not

learned

to select what

book.]

in English agriculture. [Soc.

Significance of the "enclosures"
4: 114-118, 239-241.]
3: 544-550;
in the cloth
Development of the manufacturing system, as seen
hist.,vol. 2, chap. 3.]
[Ashley, Eng. econ.
Political conditions about 1500.
[Seebohm, Prot. rev., 46-55.]

3.

Eng.,
4.

trade.
5.

The

6.

were

they, in what

Adventurers, Univ. of Pa.

Cunningham, Growth; brief account

Pub., 2 series,vol. 2, N. Y., 1902, or

in Cheyney, Eur. background.]
7. English discovery and
exploration in the
[Soc. Eng., 3: 209-228; 477-508.]
Write

Write

of the

account

an

Froude, English

9.

report

sixteenth

century.

[Payne, Voyages;

of Hawkins.

career

Y., Scribner,1895.]

N.

seamen,

similar

they

[Lingelbach,Merchants

English commerce?

8.

did

countries, principlesof organization, services to

what

with

who

Adventurers:

Merchants

and

trade

J. A.

207

DEVELOPMENT

COMMERCIAL

OF

[Same references,or

Drake.

on

Oxley,

chap. 5.]

in sect.
positionof ports named
line by each port with a length proportionalto the importance
the chief ports now?
are
[See a later section
port. What

Indicate

10.

233, drawing

of the
of this book

sketch

its note;

and

Select

11.

on

the

map

Statesman's

of the companies

one

Year-Book.]
in sect.

named

234

and

report in

[Hewins, Eng. trade; Cunningham,

Growth, with references. Brief narratives of the East India Company
will be found in Oxley, chaps. 8. 9.]
and of the Hudson's
Bay Company
and the interlopers.
12. Struggle between
the East India Company
British
Hist,
of
India.]
[Cunningham;
Hunter,
detail

its

on

manner.

of paper,
in the middle, and
one
Lines

career.

ing
graphic chart of the figuresin sect. 236 in the followDraw
a perpendicularline at the left-hand
edge of a sheet
at the top,
mark off two equal spaces, and place the dates,one

Prepare

13.

and

commerce

are

then

the last two

either side of the end

on

of the line.

be drawn, horizontally,proportionalto the figuresof

to

readily be done with the aid of a foot rule,

first the largestfiguresof the
divided into fractions of an inch. Choose
enough
table,in this instance those for 1802, to be sure of having room
trade at each date.

on

the paper

represent

of

is taken
1*5-

of 1802 will be

by
in this
a

case

little over

can

for all the lines.

sum

This

to

million

Let

pounds

represent

littleshort of two

dotted
would

or

be

wavy
a

of the small

one
or

million

inches

ten

divisions of the rule

million dollars.

pounds, the line for the imports

(-fi).Let

this line then be

line to represent exports;

little over

stance,
If,for in-

2-^inches,and the whole line would

4^-inches Grf). Pursue

the

same

method

tinued
con-

the continuation

with

be

the other

208

figures,and the result will

trade during the period.
scale

The

the

Prepare

14.

lines

each

other

but

unless

of the
Make

mind

your

tables "which
resolve

more;

different

total, at
up

to

of

figures

course

they

of

course

plotted

are

to

using different

different

different

with

colors

regions.

continents

remember

of conclusions

number

the

of

capable

are

you
to

with

to

ages
percent-

periods.

to

as

but

methods,

trade

indicate

figures of trade

the

Reduce

15.

or

with

by similar

chart

characteristic

the

suit convenience,

the

scale.

same

or

graphic representation of

to

directlycompared

be

cannot

be

varied

be

may

COMMERCE

OF

HISTORY

remembering

and

those

refer

to

be

to

drawn

whether

"

back

the

to

from

two,

one,

tables

for the

others.
BIBLIOGRAPHY

Gross, Sources, does

As

of

search

best

the

for

of the
be

the

see

England
bibliographieson commerce

useful

manuals

school

the

the
and

**

will

be

the

bibliographical
scholarly but perhaps

less

and

in
here

given

Growth,

and

foot-notes

contains

that

than

kindred

Some

topics.
*

references; Andrews'

classified

give

those

following
which
*

the

starred

is desired

this book

**

abundant

books

Toynbee,

on

History

can

Lindsay

the
and

of the

useful:

Hewins,

is

century

Cornewall-Jones

references

**

and

the

Bourne,

war

(see references

cover

the

he

If

Lecky.
**

for

will avail

written

easily
Social

topical

assume

himself

reports.

sides
Be-

history, already mentioned,

pansion;
English trade; Seeley, * Ex-

unfortunately
on

that
and

reading

revolution.

Seamen

is Traill's

best
my

and

teacher

economic

literature,however,
sixteenth

confined

development,

indispensable for this period;

is

English

Industrial

Stanhope,

the

tion
considera-

is valuable

that

reading

large part

period under

commercial

to

Gardiner, Macaulay,

it offers for

be made

useful; his English

in

hands

material

following can

considerable

in

Growth,

is in the

the

present information

for collateral

I have

England,
reading.
Cunningham,

smaller

consideration

some

pay

are

which

to

of the

English history in

on

Busch, Froude,

singlework

that

works

general

available:

is

student;
Social

**

student

especiallyrecommended.
Of

advanced

an

Traill's

more

period, the

bibliographicalinformation
less satisfactory guides. Cunningham,

on

index.

modern

the

cover

extended

more

rely

must

not

entire

out

and
in

English merchants,

of

print.

merchant

Social

period.

There
navy,

is

cially
espe-

England); and

210

HISTORY

wool, 7.7, or

total, and
It is

noteworthy

exceeded

amounted

item

all the

that

to

over

we

to

come

one

much

as

materials

raw

When

million.

one

include

five items

These
other

no

of
whole; manufactures
steel,2.0; haberdashery

of iron and

cotton, 4.1; manufactures

!."";linens, 1.

of the

fourth

one

over

COMMERCE

OF

as

half of the
million.

one

together scarcely
study the internal

development of England we must look, evidently,for a great

expansion in certain manufacturing industries to explain the
took in trade.
positionwhich their productsnow
240.
(2) Development of production,explainingthe growth
export trade.

of the

Agriculture. Turning our attention now,

the foreigncommerce
of England but to the conditions
find that during
which made this commerce
we
possible,

to

not

at home

the

"

centuries

following1600

there

was

were

grown

steady development
of internal resources.
The
lated
growth of populationstimucultivators
and
improvement in agriculture;
managed,
methods, to increase largelythe output in
by new
crops and
spite of the disadvantages of soil and climate. Root crops
two

(turnipsand
before

had

been

into

better

allowed

to

and

manure,

meat

feedingand

increased

clover

carrots) and

or

even

of

verted
produce, congain. By
pure

head

Potatoes

from

America

fields which

the

almost

was

more.

introduced

on

fallow,and

breedingthe weight

twofold

were

lie

and

and

of stock
other

the

was

tables
vege-

Continent.

farmers
effected such a revolution
in the methods
Capitalist
of agriculture,
that pasture farming became
much
relatively

less

important, and

there

was

and
241.

The

food

the

maintain

supply to

sometimes
Internal

production of

so

that

manufacturing population,

surplus for export.

and

commerce

conditions ^f

cereals increased

intern

nl

of

means

f"r"mTnpr^p

transportation.
"

measured

by

the

culties
diffi-

and

the

dangers of road transportation,

jwere still bad at
beginningof this period,but improved rapidly in the eighteenth
century.

more

writer

said

astonishingRevolution

system of any

country than

in 1767:

"There

accomplished
has

been

within

in
the

never

the

was

internal

compass

of

ENGLAND:

few

etc., is

Merchandize,

England. The Carriage of Grain, Coals,

in general conducted
with little more

Number

half the

than

of

in that

years

of Horses

Business

211

EXPORTS

with

which

it

formerlywas.

than
double
performed with more
Expedition. Improvements in Agriculture keep pace with
The
of Trade."
extended
those
canals, which were
rapidly
of the
after the success
Bridgewater Canal, constructed in

Journies

of

1758

connect

to

distant, lowered

are

Manchester
the

cost

with

of

coal

mines

transportationto

miles

seven
one

quarter

or

districts Which

turers
they served. As a result manufacmaterial
could rely on a steady supply of raw
for their
works, and of food for their employees,and had also a chance
the market.
The eighteenth
to put their finished goods on
was
a
period of great development" in
century; moreover,
English banking, and the extension of credit operationswas
the

less,in

at the

time

same

effect and

an

JIanufactures

242.

of the

cause

growth

advancejFromflftgildto

the

of trade.
domestic

to the history of
significance. We turn now
English manufactures, a topic which is not only, as we have
intimated, of great importance for the growth of English

system and

its

"

'

but

which

is of

general interest
development through which other

commerce,

stages of

showing the
countries passed
as

later.
in
Gilds stillpersisted

England, but they had lost the power

of control which
they had formerly had and which they still
maintained
the Continent.
The more
on
important industries
had passed into the stage known
the "domestic
as
system."
The change, at first view, is not striking,
for the manufacturing
with their
stilldone by petty artisans working at home
was
tools. The ownership of the raw
own
material,however, had
passed from the artisans to an employer, who took the risk
of the manufacture
and reaped profitscorrespondingto his
success

in

Brain
power.

devote

conducting
now

power

The

new

their energy

it.

took
class

of

placein

manufactures

employers

were

men

above

hand

who

could

entirelyto studying the larger questions

212

HISTORY

COMMERCE

OF

from the
production. They had the chance to look away
petty details of work, which had for centuries absorbed men's
both broad-sightedand far-sighted.
attention,and to become
They studied the needs of the market, at home and abroad;
it could be had best
material wherever
they bought the raw
it
the product, wherever
and
cheapest;and then marketed
would bring them the best returns.
The
243.
new
employers aided by the immigration of
in manufacture
still depended
Success
foreign laborers.
largelyon the qualityof labor,and one great advantage which
and
the
was
religiousfreedom
England owed to her political
immigration of skilled laborers seeking refuge from the persecutions
of the Continent.
the Huguenots
Refugees,of whom
from
France
the most
were
important, brought with them
the
manufacture
and stimulated
improvements in the woolen
development of other industries: silk,linen, cotton, calico,
It is,however, hard to see how the labor of these
paper, etc.
people could have had a great effect in extending foreigntrade
if they had not been guided by their employers,who
were
men
of considerable capital,
'with broad
views and wide
ance,
acquaintwillingto take largecontracts and eager to extend the
market
for their goods. An
English pamphlet of the period

of

"

that the towns

says

developed owed
three
which
work

in

men

in which

the silk and

artisans

The

lost their

manufactures

publicspiritof two or
development of this process, by
to
former
independence and came

their industries

each."

"

cotton

to the

of the
employer, can be seen from a statement
economist
"In every
Adam
Smith, who wrote in 1776.
part
of Europe," he said, "twenty workmen
under
master
a
serve
for one
that is independent." This was
not yet true of "every
in the western
states of the Continent
part of Europe, and even
the process had, not advanced
far as in England, where the
so
for

an

"

author

had

made

most

of his observations.

class of
Dependence of technical progress on the new
to
It is noteworthy that the great inventions
employers.
which
has
often
the modern
development of manufactures
244.

"

ENGLAND:

been

could

ascribed

have

not

this system

213

EXPORTS

been

made

of

practicalimportance

organization had developed previously.

The
gilds were
bitterlyopposed to any changes in
their system of routine,and
independent artisans would not
find it worth
their while to introduce
costly improvements.
been
made
before
the eighteenth century
ManyinventiojiflJiad
unless

of

which

have

would

if there

time, or

were

illustration
can

had

sixteenth

which

so
given fire,

other

or

such

an

245.

take

them

German

up

and

ten

who

balls

put

the end

had

to

an

invented

pelletesof lead,
another, having once

after

off, one

before

recommended

countrymen,

shall containe

shall goe

or

harquebuse one may kill ten theeves

without
recharging." The importance of
needs only to be suggested,but, so far as

'that with

invention

one

knows, nothing

The

repeatingfirearm

of his

"one

enemies

the writer

century.

harquebuse,that

all the

to

fell

devised

English statesman
a

one

any

facture
manu-

dead, however, on the world of their

killed by the opposition of petty producers. An
in which
of the way
premature inventions disappeared
from
the
be given
who, to all
experienceof a man

appearances,
the

greatest importance in

of the

been

had

through; they

them

of

been

domestic

further

was

of it.

heard

system preparatory

to the

tion
great revolu-

Not until the

eighteenthcentury.
the times ripe for
latter part of the eighteenth century were
the great technical changes in manufacture, which
duction
the introof machinery implied. Then
with
the advance
came
the speed of revolution.
In the lifetime of an
ordinary man
in manufactures

(1770-1840) the
textile towns

with

face

the

"black

the

canals

up;

districts

to

describe

the

and

to

gave

which

they

the

world;

changes
other

rise

England changed; the great

country" of the coal and iron
railroads cut through the agricultura

and

economic.

factorysystem

of

connect

outside

accompanied the
to

"

whole

and

industrygrew
and

in the

industries

social and

with

each

other

revolution
political

here be made
attempt can
detail,and the discussion of the
No

in

features
can

of the

better

be

present organization

postponed.

The

fol-

214

COMMERCE

OF

HISTORY

lowing paragraphs will suggest the development

England's chief export industries.
246.
Progress of the cotton manufacture.
"

manufacture

was

first to

the

show

applicationof machinery. Two

distinguishedin the manufacture

the

main
of

in

of

some

The

cotton

of the
possibilities
processes

cotton,

in

as

to

be

that

of

are

the spinning of the yarn

from
the fiber,
textiles;first,
into cloth.
first
The
and second, the weaving of the yarn
the invention
by Kay in 1738 of the
great improvement was
other

which
fly-shuttle,

enabled

and

him

now

to

small

industry was
cotton

saved

the

double
and

time

and

of the

energy

his output

of

cloth.

slowly.

The

amount

grew

weaver

Still,the
of

raw

imported from Turkey and the West Indies would seem

exceeded
and was
perfectlyinsignificant,
by the amount

facture
imported from Ireland alone. The cotton manuwas
hampered especiallyby the slowness of cotton
spinning (six spinnersworking with the old-fashioned wheel
needed
ness
to supply yarn to one
were
weaver) ; and by the weakof the yarn, which requiredlinen to be used for the warp

of linen yarn

of

cloth.

Inventions

which

met

these

difficulties

the

were

spinning-jennyof Hargreaves,patented 1770, which enabled

instead of one
a
spinner to make eightthreads at once
(later,
hundred
and
one
twenty, thirty,even
twenty); and Arkwright's roller spinning frame, patented 1769, which made
cotton
by stretchingthe strand
yarn strong enough for warp,
before it was
twisted.
Improvements followed in other processes
used
more
(carding,printing,etc.);water-power was
and a mere
generally,
beginning made with the applicationof
A Kentish
steam.
clergyman, Cartwright,invented a power
loom
which greatlyincreased the possibilities
of weaving but
which

did not

become

century; long

after

1800

practicalsuccess
the

hand-loom

hopelessstrugglein competition with it.

The full effect of all these changes was
nineteenth
measured

until the

kept

weavers

not

nineteenth
up

felt until the

century, but their importance in this periodcan

by

the

imports of

raw

cotton.

In

the

be

forty-three

ENGLAND:

1741-1784, the annual

years,

bales,

in

while

the

215

EXPORTS

imports rose from 4,000

followingthey
years

sixteen

28,000

to

increased

150,000 bales

(1800).
247. ^Slower
manufacture.
development of the woolen
No such rapidity of development as this can
be traced in the
woolen
manufacture, for it had long been England's mainstay,
and
it was
so
changed more
slowly partly because
firmly
Little by little,
established.
however, the spinning-wheelwas
of power
than
the
displacedby the jenny, and other sources
of cotton, power
human
utilized. As in the case
body were
not
facture
weaving was
important until after 1800; but the manuof worsteds
(in which the fibers are longer than in
was
woolens, and are kept parallel)
greatlyhelped by a second
invention
of Cartwright, for wool-combing by machinery.
of
248.
Development of the iron mdustry with the use
pit-coal. The only other industry of this period which our
Until the eighteenth
space allows us to treat is that of iron.
to

"

"

century iron
the

almost

primitiveprocess

times.
and

made

was

ton

load of charcoal

which

of iron
two

entirelyby smeltingwith
can

be traced

requiredtwo

loads

of

wood,

so

back

loads of
that

the

to

coal,
charhistoric
pre-

charcoal,
industry

supply, and was carried on at

petty forgesscattered through England, but established mainly
in the South.
A largeproportionof the English iron supply
was
Coal, as we use the word, called
imported from Sweden.
mined
for
been
then pit-coalor sea -coal,had for centuries
Various
domestic use, but had no importance in manufacture.
tried to smelt iron by coal or coke, but their experiments
men
had no
practicalresult till about 1760, when blast furnaces
and the industrybegan
established,
usingcoal were successfully
a
period of rapid development, furthered about 1790 by the
applicationof steam-power to the blast. Henry Cort invented
in this period the processes
changed to
by which pig was
malleable iron in a coal-puddlingfurnace, and the malleable
iron was, worked
into bars by rollers instead of by the slow

depended largelyon

action

of

the wood

forgehammers.

The

production of

iron had

increased

216

fourfold
in the

OF

HISTORY

COMMERCE

68,000 tons) in the period 1740-1788, and

again
period of eight years following nearly as much
(17,000

to

ing
produced (125,000 tons in 1796). The industries dependiron passed into a new
stage, and the large export of
on
iron and steel in 1800 is explained.
for England's exports.
The
249.
(3) The chief markets
for English wares
market
varied, of course, according to the
The most
favorable market
sent.
they were
country to which
afforded
for manufactures
by the colonies in America,
was
of independence. The
of the war
colonists
until the outbreak
were
a
high grade of customers; they had cultivated tastes
of
and were
willingto work hard to gratifythem.
By reason
than
natural conditions even
more
they found it
by legislation
difficult to establish manufactures, and
bought manufactured
of England with the raw
ment
wares
products which their environA book
afforded in abundance.
published just before
was

"

the

revolution

England with
silk,woolen,

says

materials

that
for

the

"colonies

are

furnished

from

furniture,
wearing apparel,household
and
linen manufactures, iron,cordage, and sails,
great guns, small arms, ammunition, lead,brass,iron,and steel,
whether
wrought or unwrought; in a word England furnishes
them
with almost everything needful for the luxuries,as well
of life,
conveniences
as
except provisions."
In European countries
did not find
English manufactures
such a clear field. There were
branches
some
(silk,
linen,lace,
distinctly
etc.)in which other countries were
paper, tin-plate,
superior,and no European country depended on England as
did the colonies.
English woolens, however, went
practically
metal
everywhere, and other products of the textile and
industries were
of a ready market
in most
countries.
sure
For exports to other continents the English had to choose
articles which
would
stimulate less civilized people to production
and exchange. Very considerable
in gold and silver
sums
sent to Asia, and the half-savageAfricans
were
were
tempted
with gunpowder, iron,rum, spirits,
beads, etc.

218

factory

etc.),

system,

Ure's

in

[Besides

student

and

helpful,

manufactures

references

find

will

and

(domestic

organization

commerce.

the

England
of

in

change

importance

Dictionary

COMMERCE

OF

machinery,

Social

and

Cunningham
and

of

introduction

facture,

HISTORY

the

like

encyclopedia
easier

probably

to

use.]
12.

The

13.

Write

of

books

the

on

of

history

of

one

Samuel

Cartwright,

Dictionary

England,

of

sketch

biographical

Edmund

Arkwright,

[Social

inventions.

great

national

the

591-604.]

459-474,

5:

following
James

Crompton,

biography;

or

besides

Toynbee,

Richard

men:

cyclopedia;
[En-

Watt.
of

one

the

popular

invention.]

BIBLIOGRAPHY

On
*

the

The

industrial

descriptive
The

and
of

suited

of

W.

W.
2

chap.

Eng.,
and

Charles

Beard,
of

bibliography

12-14,
further

gives

T.

vol.,

to

inland

2d

Jackman,
continuous

of

the

treats

references

the

of

needs

of

good

are

the
brief
and

transport
and

ed.,
*

A.

1920.

manufacture

and

sixteenth

Evolution

Kirkaldy

London,

transport,

by

with

1901,

system

the

there

History

Adam

earlier
in

transportation

Pratt,

England,

the

Hobson's

better

by

of

detail,

of

study

but

1904;
is

London,
hist,

organization

On

see,

larger

technical
with

brief

notes.

best

Industrial

1916,

Indust.

considerable

in

changes

A.

revolution,

Usher,

works;

revolution

industrial

D.

The

George

seventeenth

modern

capitalism,

and

surveys

communication,
Evans,
most

Cambridge

of

by

Edwin

London,
and

History
complete

Press,

1912,

economics
is

account

transportation
Univ.

ford,
Ox-

edition,

new

student.

general

Unwin,

centuries,

elementary

Development
paging,

is

in
1916.

vided
pro-

modern

XXIII

CHAPTER

(4) Analysis of English imports

250.

POLICY

SHIPPING;

IMPORTS;

ENGLAND:

in the

modern

period.

English trade we have to

consider the other, the imports which
England purchased with
millions
of pounds the imports
In round
her surplus wares.
as
at the end of the eighteenth century were
follows,in the
order of their values: sugar
7.1, tea 3.1, grain 2.7, Irish linen

"

After

These

l.Q"_
hejnp...

import

1.5, butter

amounted

wares

of 42.6.

side of

one

2.2, wood

2.3, coffee

2.0, cotton

total

of

this survey

If the

list

to

1.0, tobacco

more

extended

were

than
to

half
less

1.0,
of

tant
impor-

goods would be found

on
it, but these evidently could in general be produced to
better advantage in England
than
anywhere else. England
had
herself the "workshop of the world," and
already made
foods
materials
and
drew
from
other
countries
mainly raw
of the colonial
which
could not be produced at home.
Some
later,but a
imports were
shipped again, as will be shown
consumed
at home
tion
large proportion of them was
by a populaenabled by
which
not only growing in size,but was
was
wares

number

of manufactured

paratively
gratify its taste for products comnew
(sugar,tea, coffee,tobacco).
251.
At the
(5) Sources of the imports.
period when
these figureswere
had
interruptedthe trade of
compiled war
active
and
the
England with France
Netherlands, but an
means

of

commerce

to

"

commerce

still continued

with

other

parts of the Continent.

were
imports from
European countries
largely minor
manufactures, which do not appear in the list above, but raw
materials also were
furnished by the less advanced
European

The

219

220

Wool

states.

HISTORY

Spain; hemp, flax,and

from

came

Russia; wood, iron,and

COMMERCE

OF

from

Scandinavia.

from

copper

tallow

important imports we must look to

The
trade with Asia supplied
countries outside of Europe.
all of the tea, and part at least of the other commodities
(coffee,
For

of the

some

most

cotton, sugar) which

as

considerable

of Indian

amount

Company, which had grown

Asia, with a government and
had

had

checkered

it conceded

trade with

Europe

most

to

As

India
in

the

but

membership,

with

Asia

till

it

1793,

in the

certain share

it

home

of bitter attacks

result
its

At

own.

India.

the continent
of

of its

army

of the East

great political
power

monopoly of trade
private merchants

to

Peculiar

252.

be

to

career.

the

still maintained
when

with

century it widened

seventeenth

in the

America, as well
manufactures, especially

associate

now

trade still rested in the control

This

textiles.

we

character

of America

that

in its

of the

that

we

English

must

performances

turn

and

colonies.

for the field outside

in its

promises

After the early periodof

English commerce.

It is to

"

offered

tion,
explora-

piracy, English colonization in

form
Emigrants
entirelyits own.

treasure-hunting,and
America

developed

in

to seek

gold mines or to establish tradingstations,

but to found
homes.
Emigration was not so much a government
of
policy as a popular movement, that attracted some
the best stock of English blood.
There
were
great differences
between
the people of the different colonies on
the Atlantic
coast, as every student of American
historyknows, and there
was
again a difference between the colonies in the South and
out, not

went

those

on

the

islands.

European country
quality of its

England
first census

could

colonial

in the

But

in

vie with

be

may

England

said

United

colonists of

States in 1790

that

no

commercial

in the

could

population. Certainlynone

quantity of

of the

general it

stock.

European

rival
The

population
(nearlyfour million),merely in this group of former English
colonies,amounting to nearly half that in England and Wales.
253.

Resources

and

showed

industries of the colonies

in America.

"

ENGLAND:

the

Though
on
was

the

the

IMPORTS;

of
personalqualities

the

English were
duplicated
Atlantic,the physical environment
the forest,
Products of the field,
and

side of the

other

absolutelydifferent.
eagerlydesired
sea, which were
in abundance

be had

to

were

for

manufacture,

and

in the

the

on

capitaland labor found such

industries
(the production

other

an

attractive

of

raw

get in England,
The

tions
condi-

unfavorable;

were

field in the extractive

material),that there
in the

engage

the South
Even

and

in the

difficulties of life and

manufacture

made

to

World.

hand,

temptation for the colonies to

goods. In the plantationcolonies of
almost
manufactured.
nothing was
the

hard

New

little

North, where

221

POLICY

SHIPPING;

the

was

of
finishing
the islands
and

center

talents

of

the

industries
practicable,most
of a household
were
character,rough clothingand implements
in the spare
hours at home; or were
being made
ordinary
tures
villagetrades, milling,
tanning, etc. All the fine manufac-

people

more

"

bought

were

from

with

England

raw

or

semi-raw

products.
The
of different colonies.
island colonies
Specialties
(Jamaica, Barbadoes, etc.) sent plantation products. The
molasses
supplied sugar and
and, by a simple
sugar-cane
until Whitney's
American
cotton
process of manufacture, rum.
254.

"

invention

of the

the

islands,and

the

same

cotton-ginin
indigo and
The

source.

1793

various

colonies

greater varietyof products, by

Nearly

all of them

almost

came

drugs
the

on

entirelyfrom
secured

were

mainland

from

supplieda

of their climatic differences.

reason

contributed

the

supply of skins
and furs;and lumber
and naval stores (pitch,
tar, turpentine)
from
secured
the forests all the way
from New
were
England
to Georgia. Different sections,
however, had their specialties;
the Carolinas sent rice,Virginiatobacco, New
England codfish
and

to

whale-oil.
255.

Commerce
in

the

with

commerce

Africa.
with

"

There

was

marked

liarity
pecu-

Thejexportsto this
a consHerable
imports~by

Africa.

the direct
country always exceeded
An English writer of the eighteenthcentury
sum.

tells about

222

which

manufactures

the

last whereof

the

were

gold, teeth

in return,

have,

OF

HISTORY

is

very

COMMERCE

sent

out, and

continues:

(i.e.,
ivory),wax,

and

"we

negroes;

beneficial traffic to the kingdom,

as

prodigiousan employment to our people

His meaning is this: the slave trade
both by sea and land."
"beneficial" because the slaves which
were
so
purchased
was
not brought to England but shipped
with beads and rum
were
The
colonies where
to the American
they were
put to work.
therefore,that they got not only the price of
English figured,
the slaves in American
products,but also had the business of
carryingthem to America, and could hope for a future return
it occasionally
gives so

from
a

their labor in the field.

were

year

chief

sent

port of the

It is estimated

that 20,000 slaves

during the eighteenthcentury, and the

trade, Liverpool,employed 190 ships as

out

slavers in 1771.
At the beginning
carryingtrade.
we
are
studying (1500-1600) the
were
emancipating themselves from
their former
of
dependence on foreign ships. In the course
the period they learned to carry not only their own
goods but
the
those of other nations as well, and
took from
the Dutch
The reader will
leadershipin the carrying trade of the world.
note, if he refers to the figuresshowing the trade of England
about
to about
42 million
1800, that the imports amounted
but
were
pounds, while the exports of British merchandise
29 millions.
been
to have
seem
England would
gaining a
of goods for nothing, or to have been going in
great amount
debt for them.
The
difference is to be explained in part by
the earnings of English freight,which
other countries paid in
but in the largerpart by the export of goods which
wares,
were
brought to England from other countries merely to be
transshippedand exported again. At the close of the century
value
of over
to the
11 millions
was
foreign merchandise
exported,,the wares
being mainly those of colonial origin
(coffee,
tobacco, tea, indigo,etc.).
sugar, Indian textiles,
257.
and government with the
Struggle of English seamen

(6) Shipping and

of the period which
English,as we have seen,
256.

the

"

ENGLAND:

Dutch.

Two

"

separate

sets of forces

English merchant

marine,

the

The

government.

could

navigate

not

of

English
cheaply

as

for the

largercrews

those

in

same

been

individuals
the

but

abreast

or

to

have

development
were
ship-building

of

navigation;and

The

government,

effort to

the

other

they

seem

ahead

hand,

those

eager

quired
re-

in the
eral
gen-

facilities for

unusual

was

of

century

of the

colonies.

in their American

offered to them
on

and

seventeenth

work,

eighteenth century

to raise the

Dutch, since they

the

as

at work

were

223

POLICY

SHIPPING;

IMPORTS;

to foster every

of its
English shipping,not only because
economic
advantage, but because of the addition to the naval
Until
of the kingdom in war
with
other powers.
resources
after 1650 the English merchant
marine, in spiteof individuals
and
ments
Statewas
government,
greatly inferior to the Dutch.
which
doubtless
are
exaggerated give us still some
of the difference;
four
said to own
the Dutch
measure
were
fifths of all the ships engaged in oceanic commerce,
or as
many
eleven kingdoms of Christendom; ten Dutch
as
ships traded
to Barbadoes
for one
teenth
English. The latter half of the sevencentury is filled with a bitter strugglefor supremacy
between the Englishand the Dutch, waged with all the weapons

both

extend

of peace

and

war.

Navigation Acts; victory of English over Dutch

shipping. "The first nail in the coffin of Dutch greatness,"
the Navigation Act
an
passed
English historian,was
says
268.

The
"

under

Cromwell

in

1651.

This

was

but

one

of

series

of

extending before and afterward, designed to further

the English carryingtrade at the expense
of rivals. Briefly,
goods from a European country could be brought to England
only in English ships or in ships of the country, so that, for
to England;
instance,the Dutch could not carry Baltic wares
while the products of other continents could be imported or
that
were
wares
exported only in English ships;and some
enumerated
be brought to England
must
(sugar,tobacco, etc.).
before they could be exported to any other European country.
To maintain
this policythe Englishengaged in a long contest
measures

224

with

smugglers

wars

with

HISTORY

in

America, and

victory for English commerce

hard

how

policy,and
who

effect of the

in the West;

the

among

also

eighteenthcentury

of the individuals

at this

period.

to build ujp

was

in the

the^pqrts

eighteenth

distribution

The

of trade

total,while the remaining third

the ports of the

parts among

stilltwo

to London

gave

Dutch, though it is
given the government

prominence

grew.

seen,

ports did not, however, change greatly. An

of the
of the

Bristol

trade

into

Liverpoolcame

and

century,

oceanic

new

great naval
have

we

to the energy

due

was

buildingup English business

were

The

much

be

several
as

the

over

credit should

much

how

to say

fought

result was,

The

Dutch.

the

COMMERCE

OF

divided

was

south, and

east, the

mate
esti-

thirds

in

equal

the

west

coasts.

(7) Government

269.
as

shipping,so

in

individuals

to

policy.

in other

make

money

and

Commerce

war.

the
interests,

commercial

for themselves

"

Just

efforts of

restrained

were

or

furthered

by government
regulationsaiming to advance the
of commerce
was
English people as a whole.
Every matter
in
at the same
of politics.Mention
made
time a matter
was
an
introductorychapter of the part played by England in the
of the period. It will be remembered
that English
great wars
policyin general was characterized by a shrewd recognitionof
the commercial
advantages to be gained in war, either by
territorial acquisitions
in
and every war
or by tradingprivileges,
which
England engaged ended, as a rule,with a treaty that
gave

her

trade

with

some

and

was

because

had

desired.

hand,

advantages

market

Customs

sistently,
con-

enmity, but because

her

in

own

and

England,
India

because

and

that

England

Portugal,on the other

countries was
tary
complemen-

allied herself with

the trade

rather than

in

rival,refusingEnglish manufactures

possessionsin America

England

because

260.

some

or

of old traditions of

commercial

attempting to

France

market

European country. England fought France

not

France

colonial

new

of the two

competitive.
policy. The
"

customs

policy of

the

period

226

OF

HISTORY

COMMERCE

England, grew up not only without any

favor but under actual discouragements.
Colonial policy. An English historian who has been
262.
quoted several times before said that England conquered and
peopled half the world in a fit of absence of mind," implying
of natural expansion rather than
that the movement
one
was
true when
contrast
of conscious policy. This seems
we
English
other
the government
colonization with that of
Still,
powers.
in

of any

portant

"

"

the first the idea that the colonies

held from

contribute

should

country, and

home

these

advancement, and

ideas grew

in

were

part of the

specialways

stronger and

its

to

took

more

in size. The
colonies grew
government
of men
and capitalto America
under
permittedthe movement

definite form

that the

the condition
to

the

as

of the colonies should

resources

supplement, not compete with, the

We

country.

have

government ideas
at

the

colonists

the

on

time.

their commerce,

"

were

and

regulationsin

here the

note

of the

mother

which

the

embodied.

were

Restrictions

263.

Acts

to

resources

be made

colonial

enterprise,regarded as justifiabl
By the applicationof the Navigation
requiredto employ English ships for

to send

certain

enumerated

wares

of their

production to England before they could be disposed of to

another
restricted in
county ; and by other acts they were
the manufacture
or
exchange of certain articles (woolens,hats,
desired
bar-iron,and steel)for which English manufacturers
to

the

reserve

colonists

were

market.

Aside

from

these

restrictions the

left free to

produce and to trade as they pleased.

duties,as a rule,on wares
enteringthe

They paid the usual

when
the wares
allowed a drawback
English ports, but were
were
exported again.
Comparing these restrictions with, for instance,those of
when
still more
Spain, we are struck with their liberality;
so
it is added

that

the

specialfavors to
the colonists in the form
of bounties,and colonial ships were
put on an equal footingwith those built at home, so that New
England was a great gainer by the stimulus to ship-building
government

gave

some

ENGLAND:

sailing. England

and

and

the

was

natural

market

the

colonists,as we
temptationsto go into manufacturing.
therefore,bore with great weight
colonial wares,

of

AND

Make

1.

as

suggested above

Insert

2.

chart of

the

[Cunningham,
vol. 2.]

wares

of the

East

Growth;

B.

chap. 20)

and

Write

5.

of the

one

that

report

thirteen

French

West

The

English
by the

and

reasonable

the

Revolution.

with

present

ditions,
con-

and

the

followingsections

in the

continents,sect. 237.

market

of

in the
and

eighteenth century.

sword, London,

1903,

England with that of Spain (see

(seechap. 25).
the

on

tions,
restric-

exports.
in 251

Company
Willson, Ledger

of France

few

and
colonists,

the

compare

India

Compare the colonial

4.

of

under

of these
the

on

had

seen,

None

of the

TOPICS

imports and

named

imports accordingto

History

3.

of

graphic chart

have

evaded.

1733) was

was

QUESTIONS

for most

with

accepted as natural
generaluntil shortlybefore

colonial system
colonists in

Act

Molasses

(by the

Indies

in their trade

interfere

to

attempt

an

227

POLICY

SHIPPING;

IMPORTS;

economic

and

colonies,in the

commercial

period preceding

characteristics
the

Revolution.

[See the chapters describingthe condition of the separate colonies in 1765,

N. Y., Harper, 1881, $3.]
in Lodge, English colonies,
to stimulate exports
6. English imports of naval stores, and schemes
Industrial
from America.
[Lord,
exper., part 2.]
the

commercial

of the island
history of one
erences
[See encyclopedia,and refcolonies,(a) Jamaica, or (6) Barbadoes.
Martin, History of the British colonies,
there; R. Montgomery
vol.
London, 1834,
2, chap. 2, Jamaica; chap. 7, Barbadoes, chap. 16,
Write

7.

West

Indian

report

on

K.

Amos

commerce;

Fiske, West

Indies, N. Y., Putnam,

1899, $1.50, chaps. 18-19, Jamaica; chap. 37, Barbadoes.]

vol.

8.

History of

2,

sect.

the African

tradingcompanies. [Cunningham, Growth,

194.]

[Cunningham, index, and references

in his notes; Weeden, index; Encyc. Brit.]
10. The plantations,the Royal African Company
and the slave trade,
1672-1680.
[E. D. Collins,in Rep. of Amer. Hist. Assoc., 1900, Washington,
9.

History of

the

1901, vol. 1, pp.

slave

trade.

139-192.]

History of the merchant

navigation. [See the articles
11.

Eng., vols. 3, 4,

5.

The

navy;
on

student

the

development
Navy, by W.

should

endeavor

to

of

and
ship-building

Laird
extract

Clowes, Soc.
from

these

228

articles, which

rather

are

OF

COMMERCE

only

fragmentary,
should

and

marine,

merchant

HISTORY

guard

those

against

facts

which

confusing

bear

this

the

on

with

the

war

navy.]
Write

12.

foreign
the

Y.

N.

Y.

1900,

L.

George
16:

582-611;

what

Of

13.

to

from

America?

furs

The

14.

vol.

Growth,
Rise

15.

of

trade,

1786,

chap.

17.

[Lecky,
18.

Journal

London.,
19.

of

Abuses

of
of

one

The

the

chap.

Hist.,

16,

of

Cromwell's

1899,

Sci.

Firth,

13:

4:

228-245;

Quarterly,

1901,

gold

from

three
the

be, according

Acts

Africa;

and

their

the

to

spices

tion
Naviga-

from

effects.

India;

ham,
[Cunning-

222.]
and

[Encyc.,
commercial

policy

of

references

treaties,
the

the

Cabinet

article

and

duties,
ed.,

legislation

Economics,

period.

of

there.]
of

1703,

[Hewins,

1713,

English

with

1899-1900,

5:

of

the

reform

by

the

younger

Pitt.

ff.]

295

England

that

title

14:

1-29;

and

by

W.

the
J.

republished

American

colonies,

Ashley,
in

Quarterly

his

Surveys,

it

practised;

1900.

American

it prove

the

smuggling,
English

1660-1760:

policy

to

have

336-360.]
BIBLIOGRAPHY
See

to

Liverpool.
the

customs

commercial

[See
of

Jan.,

among

8; Roosevelt,

causes

Polit.

have

Spain;

204,

illustrating

as

chap.

5, chap.

The

Review,

Navigation

sects.

port

on

following,

well's
Crom-

5.]

1660-1760.

does

the

Report

16.
and

of

2,

the

1888,

book

1900,

policy,

ships

from

the

of

policy

to

Lond.

Strong,

Hist.

would

wool

carry:

Y.

economic

country

Acts,

made

of

aspects

46-70.]

17:

1902,

N.

Amer.

Cromwell's

Beer,

be

Frank

also

See

expedition,

Indian

West

ff.

225

p.

commercial

Harrison,

Morley,

John

19;

and

may

F.

Cromwell:

of

chap.

1900,

colonial

[Reference

policy.

biographies

N.

the

on

essay

an

chapter

xxi.

to

been

what

extent

oppressive?

was

[Ashley,

Surveys,

XXIV

CHAPTER

Natural

264.

took

time

We

the

other states, to understand

and

note

to

below

far

so

period.
"

which

the
leading place in commerce
among
have
to study the development
now

the

of Europe.

countries

considered

have

we

in the modern

of France

advantages

precedingsections

In

DEVELOPMENT

COMMERCIAL

OF

SURVEY

FRANCE:

share

possiblethe

as

they

took

states

of the

in commerce,

which

causes

for

them

kept

leaders.

the

Taking first France, we find a country which throughout

the period enjoyed the reputation of being the richest state
and
Not
of Europe.
population did it greatly
only in area
eltceecTTts
traditional rival,England; it had also advantages
of soil and

beyond

all others.

Atlantic,with
a

by

Nor

coast.

the
can

inferior

capacity.
during
which

access

to the

be

regarded

the

both

Fronting

positionfor

interior of

were

easy

it to

caused

and

Mediterranean

Baltic,it had

Sea and

North

favored

as

of the

periodthan any
facilitated
country, while internal transportationwas
remarkable
system of navigable rivers,that brought the

better

other

which

climate

its

would

to

Before
course

have

the

country
we

say

those

sea

commerce

into
that

easy
the

of other

communication

French

people of

countries

in

with

this

the

period

their economic

beginningof the period and at intervals

they give evidence of productive ability

the

led to very

different

results under

conditions

people,like the English,enjoyed. This

of production in
holds true even
of manufacturing,a branch
have
which the French
commonly been considered inferior by
natural bent to the English.
265. The chief reason
why France did not rise to leadership.

such

as

more

favored

229

230

HISTORY

OF

COMMERCE

spiteof size,resources, and population,France did not

the second
above
place mainly through the fault o|__thfi"

In

"

rise

French
for

had

the arrangements that

organization,
working together. We may compare

the

French

the

nation

French

state

which
has a largecapital
corporation,
invested in a valuable plant,and has good business openings;
the
but in which
the business is wrecked
by quarrelsamong
stockholders,and by such a poor organizationthat president

to

industrial

modern

and

directors

can

conduct

affairs for their selfish

company's

point will
historyof
of

the

disregard the interests

can

in

resources

be

made

more

in

commerce

country from

Revolution

and
profit,

enterprisesthat
clear if,as an
France,

the

do

later Middle

the

Ages

the

waste

can

not

The

pay.

introduction

sketch

we

stockholders,

of the

to

the

general history
to

the

French

of 1789.

with
Years' War
Progress checked by the Hundred
conflicts.
In the fourteenth century
England,and by religious
it seemed
as
though France were
going to lead Europe in the
development of a new
period. Agricultureand manufactures
internal trade was
were
flourishing;
active;and French shipowners,
far
ventured
to longer voyages,
growing accustomed
266.

"

down

the west

even

into

on

the

coast

coast

of Africa and

of Guinea.

The

established

country

trading stations

was

plunged again

Years' War
by
than England
(1336-1453),a war that hurt France vastlymore
it was
because
fought entirelyon French soil. French and
English armies, and "free companies" of organized bandits
ravaged the country; the weight of taxes grew; trade dwindled,
cities declined,
and artisans emigratecl.
The country had hardly recovered
from
this war
(which
ended in 1453), when
it was
again disturbed,this time by a
a

condition

of medieval

series of civil

wars

by the

unfortunate

same

between

the Hundred

chaos

Catholics,attended
effects. The religious
flict
con-

Protestants
economic

and

finallyclosed by a settlement which was

the French
disastrous;
Protestants,to the number
half a million and
making up the most valuable
was

even

of

more

nearly

industrial

OF

SURVEY

FRANCE:

231

DEVELOPMENT

COMMERCIAL

expelledfrom France as thfl

and
Moriscoes
had
been expelled from
Jews
Spain. The loss
be measured
to France
can
by the gain of other countries;the
establishment and development of important manufactures
can
be traced in each of three countries,England, Prussia,and the
Netherlands, to the influx of the Huguenot refugees.
Effect of the absolute
267.
monarchy on French
ment.
developfrom
France
secured
freedom
foreign invasion
finally
and
from
internal
The
dissension,but at a terrible cost.
whole
of the state was
vested in the hands of the king.
power
in the

element

population,were

"

stockholders

The

Rarely

and

Louis

was

strong, like Henry

IV.

XIV

it

was

wielded

by

wasted

the

wise; who

not

was

this

to

power

company.
wise

lost all power

fruitless wars,

direct

the

exercised

by

During the

king
rich

who

king both
long reign of
a

strong but who

was

of his

resources

of the

concerns

country

in

neglectedthe opportunitiesfor reforms

and
for commercial
Too
at home
often
expansion abroad.
the rule was
held only in name
by the king, but in fact by the
who
worthless adventurers
royalfavorites,
by pleasingthe taste
of the sovereign gained the power
to direct as they chose the
policy of this great country. This evil is especiallymarked
in the eighteenthcentury, when
England was prepared to take
advantage of every mistake of France, in building up her
world

while

he

power.
Failure

268.

to reform

conditions

inherited from

the feudal

period. The absolute monarchy played a vital part in the

of comnot only by its disregard
mercial
historyof French commerce,
"

interests abroad, but

home

affairs.

it is necessary

points. The

by

As

the details will appear

here to call attention

kings did not

country by breaking down

of business

its lack

complete

sense

in

in the

followingpages
general
only to some
the

unification

of

the

barriers,of which
remained
until the Revolution.
some
They encouraged the
separation of classes,just as they allowed the separationof
sections;the French were
splitinto groups, mutually jealous
and hostile,
which
lacked the feelingof common
interest,and
the

feudal

toll

232

HISTORY

unable

were

to

OF

COMMERCE

The

cooperate.

distinction

serious

most

tween
be-

Nobles and clergy

regard to taxation.
often of a kind that hindered
were
tion,
producgranted privileges,
while they paid very little to the public treasury. The
and
productive classes,on the other hand, the business men
The weight of this
laborers,bore nearly the whole burden.
burden was
tremendous, for the machinery of government had
and
efficien
inbecome
and more
more
more
complicated and more
classes

with
to demand

in

was

the

the

public service.

An

eighteenth century
peasant is estimated
of his gross

nothing
shown

of

of

condition

the

fact

in the
that

half to four

which

him

gave

Levant

had

their return

different

went

to

in

silk
some

the
fifths

almost

century

Returning

"

as

from

now

history of commerce
proper, we
name
standing out prominently
that

the

cloths

Jacques Co3ur,

of

contemporary

says

of

him:

"His
of the

merchandise

and

Egypt and
stuffs,and all kinds of spices. On
the Rhone,
of these shipsascended

they

supply

carried back

Catalonia

in this way

branch

Coeur.

commerce,

East

provinces, competing
Catalonians

one

French

their arrival in France

others

the

1500

the

to

in the fifteenth

Jacques

Bourges.

ships carried
kingdom. On

alone

gathered from
paid from one

commerce

to

year

historyof

merchant

while

of the

government

of French

political
survey

in the

idea

accomplish very

to

taxpayers

had

in return.

find before the

the

to

in the business

this

have

to

income

Bloom

269.

be

can

the government

that

time, so

great deal from

little in the

of

passage

of trade

with

that

from

and
the
up

the

neighboring

Genoese
to

that

and
time

the

they

exploited." At the height of his fortunes,about

1450, he had a silk factory in Florence, did business with
England and thought of establishingan office in Flanders also.
The work
of Cceur survived him, and French
oped
develcommerce
rapidlyin the intervals of peace following. Great interest
felt in France in the explorations
was
of the sixteenth century,
and
guese
Portubehind
the Spanish and
though the French were
in the work, they led the English and Dutch, and the

XIV,

Louis

were

IV

Henry

Under

industries

new

in the

shown

was

taxes

land

by
and

the whole

on

COMMERCE

OF

HISTORY

234

low, the

were

and

periodof

water

prosperityof

fairs.

progress,

of internal

means

restored

were

introduced.

were

and

peace

The

The

and

munication
com-

improved,

revival

of

trade

ister,
great foreignmin-

mainly in questionsof politics,

and
by heavy
hampered the development of French resources
continued
the
work
he
of Henry IV.
taxes, but in some
ways
The
"Kings of the
English of this period called themselves
interested

Richelieu,was

Richelieu

termed

and

Sea"

"fresh-water

admiral"; French

ships, afraid to refuse the English a salute and unwilling to

accord
it,sailed under the Dutch flag. Richelieu said, in the
"France, bounded
by two seas, can
government newspaper,
herself

maintain
of

navy

only by

power," and

sea

would

which

give

the construction

began

confidence

the

to

merchant

marine.

Founding

273.
"

The

companies, and

of commercial

revival

of

French

commerce

colonial

evidenced

was

distant

incorporationof companies designed to trade

parts of the world, and by the encouragement

growth

of

by

the

colonization.

The

list of

commercial

pansion.
ex-

with
and

companies

to
founded, 1599-1642, includingreorganizations,amounted
twenty-two, includingin its scope Canada, the West Indies,
Guinea, the west coast of Africa, Madagascar, East India,

and

the

Malay Archipelago (Java, etc.). The government

accorded
great privilegesto the companies, and the royal
influence was
exerted
in every
to help them; men
were
way
forced
even
by intimidation to invest in them, and nobles
allowed to participate
without
were
lowering the dignity of
their order.
The
colonies were
likewise pushed by the force
of the government; emigration was
encouraged and discharged
soldiers and poor girlswere
sent
out
by the government to
further the growth of population. The number
of Europeans
in Canada
was
perhaps 2,500 in 1660, and increased to 10,000
in the
settled

next

also

twenty

years;

in various

considerable

islands

of

the

West

number

of

Indies.

French
France

stood
the

next

of

failure

the

measuring merely by

lay claim.

and

commercial

these

of these

enterprises. Most
failures.
enterpriseswere

colonial

"

the characteristic faults of the time:

showed

They

for

could

235

DEVELOPMENT

colonial power,

she

which

Reasons

274.

of

Spain as

to

to

area

COMMERCIAL

OF

SURVEY

FRANCE:

failure to

a
organization,

inefficiency

appreciate the difficulties of

theit

impatience in their attempts to solve the problems.

had
in their
special elements of weakness, moreover,
artificial character,and
in the fact that they carried

task, and
They
rather

abroad

them

with

home

time

of

French

had

1700

have

enabled

them

to

for

was

and

commerce

failures

sufficient

prejudicesof

century

in distant

experiment

attained

and

seventeenth

large proportion of

to

class distinctions

Still,the

country.

nations

the

of

measure

the

before

success

the international

enter

al't

zation;
coloni-

natural, and

was

the

tition
compe-

with

eighteenthcentury
good prospects. Their
lost its opportunity to
blighted,and France
prospects were
become
a
"world-power" by the fault of the French political
constitution,which
put the interests of the people at the
of one
man, the king.
mercy
of the

Mistaken

275.

Louis
Leibnitz

when

that

saw

wanted

choose

of the

urged
of trade

to

the

the

to

the

either

land

and
alternative,
of

arch,"
Mon-

philosopher
French
history

period in
be

Great

The

advisers.

and

sea

"

The

"

or

sea

base its
He

commerce.

said

permit an expansion of
to be
the richest prizesof power
were
occupation of Egypt, to give France
at

peace

thought that

he found

the

he

good

this critical

abroad, where

control

Louis
and

needed

XTV.

select the latter

control

on

France

its power
had; and
the

it should

Louis

lack

not

country could

greatness
that

LV, did

proposed, at

the

power,

policy of

French

home

Levant

to

and

frontier

the
was

far

too

East.

near

to

But

Paris

the other side of it;

on
territory
the arrogance
of the Dutch
gallingto his pride;he
the Pyrenees by putting a French
to raze
prince on

tempting

Spanish

continental

morsels

throne.

wars

He

of

engaged, therefore,in

continuingnearlyfiftyyears,

which

series of
returned

236

little or

continents.
sad

of

comment

of

several nations

COMMERCE

destroyedthe power of France

Louis' policyprompted his biographer
"The
inhabitants
of the
significance,

gain in Europe,

no

in the other
to

OF

HISTORY

and

have

Europe

scarce

ever

any

interest in the

of their

sovereigns."
brilliant
This sovereignfound France
vigorousand offering
promises of development; he left her weighted with taxes and

wars

distinguishedFrenchman

debt.

reign that

and

of the remainder

alms, they
century.

The

"

England

over

so

Decline

276.

to

were

of the

tenth

this

half

colonial

to

close

of

beggary,

condition

no

empire

which
possessions

close of the

at the

reduced
in

were

the

to

give

beggary themselves.

of the French
colonial

toward

people were

one

to

near

said

in the

eighteenth

surrendered

France

tory,
(the Hudson's
Bay TerriNewfoundland) seem
comparatively
wars

Scotia, and
unimportant, but their loss was significant.The two countries
had chosen different paths. England continued
to build up
in
colonial empire; France
continued
to spend her resources
a
Nova

continental

wars,

The

Seven

Years'

end

of the conflict.

France

the

North

continent,and

Indies

at the cost

of her

War, ending

American

in

and

commerce

1763, marks
all her

surrendered

her colonies.

the
practically
on
possessions

of those in the West

some

and

forever the hope, at one

Africa; and abandoned
time most
So
promising, of buildingup an empire in India.
little were
the colonies appreciated in France
that some
good
Frenchmen
rejoicedat their loss,and only wished that more
of "those
wretched
possessions"might have been transferred,
to ruin the enemy!
in
Growth, notwithstanding,

277.
"

The

French

reader
commerce

century.

only

not
was

Colonial

from
return

must

which

had

French

policyis

stationaryor

expansion
a

after the

colony

infer from

was

the

of France.

commerce

preceding paragraphs that

decliningin the eighteenth
often

ment,
long-time invest-

country could

lapse of

established
apparent

hope to recover
generations,sometimes

its freedom.

only

in the

The

the

after the

full effect

nineteenth

full

of

the

century, and

FRANCE:

SURVEY

OF

COMMERCIAL

DEVELOPMENT

237

238

HISTORY

which

elements

into account

profitedby

France

which

her size and

have

already

figuresshow

The

which

the

of livres

with

various

the

described
up

will be

teenth
eigh-

subject of

(and

later,

great

apparent

remarks

same

the

on

in millions

of France

the trade

other

the

build

to

resources

made

been

In

will be

of this trade

features
Some
foreign trade.
from
the following table, to

that

passed by

misguided
spite
spiteof a vicious organization of

manufactures

and

taken

foreignpolicy,in

in

taxes, and

internal trade

has been

France

be

must

for industrial supremacy.

race

century, in spiteof
of burdensome

yet considered

not

explainwhy

to

in the

countries

have

we

COMMERCE

OF

apply

statistics.

rough equivalent)
continents
in 1716, when
a

was
just recovering from war and commerce
unduly depressed,and 1787, when a short period of unusually
Revolution.
active trade preceded the French

the

country

was

COMMERCE

OF

FRANCE

CONTINENTS

BY

1716

Analysis of

278.

Without

"

which

are

few

some

grew

at

century.
much

French

to

be

to

draw

inaccurate,we

important conclusions.
rate

The

not

in the

commerce

attempting

known

1787

far from

that
of

commerce

of

too
can

The

tury.
eighteenthcenmuch
from
figures

base

on

of

commerce

England's in

France, however,

this table

the

France

eighteenth

continued

in

European; the chief trade of the

with
its neighbors,Italy and
country was
Germany, and,
after them, with England and the Baltic.
To these countries
France
sent
manufactures
amounting to less than one third
of the
up

greater degree to be

total

exports (122 million),the remainder

of articles of food and

drink

and

various

other

being
raw

made

materials.

failure of France

The
their

weakness.
with

to

be

must

France

million

eleven

over

would

regarded

later years

the

to

sent

which

hold

her vital

as

illustrated in the

it

see

(1781-1783)

amounting

goods

well
especially
States.
During the

We
United

the

market

239

DEVELOPMENT

manufacture

to

world

in the

own

COMMERCIAL

OF

SURVEY

FRANCE:

of the

United

livres

States
A

year.

trade
lution
Revo-

exports

few

years

(1787-1789), when the restoration of peace should

the trade, it had dropped to less than
stimulated
two

afterward
have

The

millions.
hold

the

had

sent

when

Value

of

of the

French

the

French

free to

were

keep
capable

of their

could

not

compete again.

colonies.

sugar

to

and

wares,

poor

the English

trade

279.

fortune

French

It

"

colonies

the

was

in America

of the most
just those which were
rapid economic
West
India islands in which sugar
development. They were
was
produced by slave labor.
Comparatively few Frenchmen
had settled in the islands,and in the long run
to
they were
prove

of

little advantage

eighteenth century they

the

to

veritable

were

country, but

home

gold mines.

The

in

the

ing
lead-

production,which had first been taken

by the Portuguese in Brazil,passed early from them to the
English,and was taken before 1750 by the French, who soon
positionin

controlled
from

the

Africa

while

the

American

sugar

European

market.
from

comprised sugar

African

slave trade

part, also,of the imports

islands

in the Indian

ocean,

exploitedfor the benefit of

was

planters.
QUESTIONS

1.

Striking characteristics

AND
and

chief

TOPICS

"

weaknesses

of

the

political
system
[Seebohm,
40-46, 210-212; Cheyney,
rev.,
Eur. background, 115-121; Taine, Ancient regime.]
of

2.

France.

Effect
of the

of the

Prot.

Hundred

Years'

king. [Adams, Growth,

War

(a)

on

the

people, (6) on

the

chap. 9.]
religiouswars, and the emigration of
the Huguenots. [Adams, 180 ff.,
227 ff.]
4. Write
the career
of Jacques Coeur.
a report on
[Encyc. Brit.]
5. Write
of the French
a report on
one
explorers. [Manuals of U. S.
historyand references;Thwaites, France in Amer., chap. 1: Parkman,
Pioneers of France.]

power

3.

Effect upon

France

of the

240

Write

6.

HISTORY

brief report on

OF

the

COMMERCE

historyof the

of

commerce

Marseilles.

[Encyc.]
Reforms

7.

under

Henry of Navarre.

[Adams, Growth, p. 183 ff.;

1893, $1.50,chap. 8.]
[J. B. Perkins, Richelieu,

P. F. Willert,Henry of Navarre, N. Y., Putnam,

Reforms

by Richelieu, 1624-1642.
N. Y., Putnam, 1900, $1.50,chaps.6, 9.]
of the French
9. Economic
in America.
organizationand commerce
vol.
in
Camb.
mod. hist.,
[Bateson
7, chap. 3; Thwaites, France, chap. 8;
Old
Parkman,
regime,part 2.]
of the wars
10. Make
written summary
of Louis XIV, showing
a
in the rest of the world.
in Europe and
gains and losses of territory,
8.

[Adam

Growth,

%1.
power.

p. 216

Opportunity
[Mahan, Sea

ff.]

lost
power,

by Louis XIV
chap. 2, and

to
pp.

build up
141

an
empire by
ff.,198 ff 219 ff.]

sea

.,

of the results of the French

of
wars
Prepare a written summary
the eighteenthcentury. [Adams, Growth, chap. 14.]
the table of figures,
13. Prepare a graphic chart from
sect. 277, as
suggested above in the case of England, and study the conclusions to be
12.

drawn

from

figuresand chart.

Combine

the

charts

for

clusions
England and for France, and draw conif
by extending your
comparison. Endeavor,
possible,
settle
the
which
this
will
to
comparison
reading,
questions
suggest. Note,
however, that the figuresrefer to different dates, that they are a far less
accurate
that the
index of the facts than you would suppose, and, finally,
reduction to modern
is
currency
very rough.
15. Write
of one
of the followthe historyand commerce
ing
a report on
West India islands under French
loupe,
rule: (a) San Domingo, (6) Guade(c) Martinique. [Encyclopedia; Homans'
Cyc. of commerce;
C. B. Norman, Colonial France, or Bryan Edwards'
History,if that book
is available.]

14.

from

the

BIBLIOGRAPHY
Of
French

the

general works

on

French

history,Adams,

**

Growth

of the

nation, is excellent.

kins
periodsall the books of James Breck Perparticular
for the attention paid to economic
ditions;
conbe highly recommended
can
the
A.
L.
A.
Richelieu.
See
book
I refer above only to the small
on
don,
century, LonCataloguefor titles of others. Paul Lacroix, The XVIIIth
no
date, is a popular illustrated work, with a chapter on commerce,
of no
great importance. Books discussing the conditions leadingto the
French Revolution
valuable for the lightthey throw on the organization
are
Books
modem
of France in the period of
history.
by Taine, E. J.
Lowell,and R. H. Dabney will be useful in this connection;and vol. 4,

Of the works

on

CHAPTER

XXV

FRANCE:

280.
survey

POLICY

History of the French

of the development of

tariff.

customs

French

After

"

gain
greater growth

commerce

we

appreciationof the opportunitiesfor still

that were
lost,by consideringthe obstacles with
an

merchant
First

tariff

on

had

of

to

this

can

which

the

contend.

all,as

matter

of course,

This

the frontier.

went

there

through

was

the

the customs
normal

course

The govdevelopment in the period under consideration.

ernment
of system the
sort
attempted to reduce to some
the influence
scattered duties of the earlier period;and under
of

of mercantilist

doctrines

it ceased

to

use

the

duties

chieflyfor

using the tariff to protect home

which
at first held vaguely and
was
industries,
applied only
made
gained strength with time and was
by
occasionally,
in
tariff
minister
of
Louis
the
chief
the
'Colbert,a
XIV,
point
The

raisingrevenue.

system.
raised to
and

idea of

again three years later,the duties were

raised twofold
manufactures; duties were
protect home
and when
found still entering the
wares
were
more,
In

1664, and

in some
cases
kingdom they were
absolutelyprohibited. The
the part of other countries,and
on
high tariff led to reprisals
strained political
of the causes^
relations with them; it was
one
of open
with
the Dutch.
It remained
war
throughout the
industrial
with advanced
perioda serious obstacle to commerce
countries

like

England and

Netherland;

it

treaties were
by commercial
and smuggling formed
in France
valve

of the

281.

commercial

Persistence

the

breaches

made

in

comparatively unimportant;
in England the real safetyas

system.

of customs

frontiers
242

inside

France.

"

Far

the frontier tariff

serious than

more

of France.

inside

politicalunion

the

by

their

used

We

commerce.

internal

which

duties

country

and

had

never

evidences

of

former

purposes

of

distinguishthree different sections of

in
an
area
North, roughly speaking,was
in which
the provinceswere
was
free,i.e.,

must

The

country.

the

their

territoryfor the

their

unify

to

made

fragments,

abolish

to

the customs

were

kings had

feudal

of

great power

separationand
the

Trench

The

243

POLICY

FRANCE:

trade

barriers.
The South, on the other
separated by customs
hand, was
composed of provinces "reputed foreign" which
had
that trade here was
not
so
free,and
kept their tariffs,
had to
this and other parts of France
wares
passing between
the East, "provinces
duty. Still a third section was
pay
foreignin fact"; these provincesdid not form part of France
at all,
commerciallyspeaking,for they were outside the national
customs
frontier,
enjoying free trade with other countries and
to other parts of France.
paying duties when they sent wares
not

If the

reader

will recall the

evils that

economic

resulted in the

Ages from the separationof districts he will readily

appreciate how much France lost by carrying over a medieval
Middle

make
A

modern

to

system

the most

producer did

not

have

times.
of its

France

was

resources

have

not

It

for

France

for his

impossiblefor a district to
in production.
by specializing
market;

supply; each

of

source

did

consumer

bound

was

by

provincialrestrictions.
Persistence

282.

is not

complete.

consider the

to

There

case

of

toll barriers.
not

were

merchant

of cloth to

package

had

local

but also local customs

of France

of

pay

not

England

only

the

"

inside the
of Paris

national

picture

tariffs inside
provincial

only

in the

Still the

who

provinces.
desired

sixteenth

to

Let

export

century.

export duty, but

us

He

also at

down
the Seine he had to pay local
the way
Rouen
he must
provincialcustoms; and we
pay

fifteen
placeson
customs;
must

add

at
to

carried from
next

Wine
his list of expenses
etc.
freight,pilotage,
Bercy (near the Swiss frontier)to Paris, in the

century, had

to

pay

sixteen

different dues

on

the way

to

244

tolls

customs

or

Loire; in the

the

on

in the

but

was

needed

to

hundred

century there

Orleans

the

were

Nantes;

to

Conditions

and
proved
im-

above

figuressuggest,
obstructed
by the opposition of local
lution
by the delay of the law; and the Revo-

retarded

interests and
was

of time,

course

improvement

over

Revolution.

French

persistedtill the

were

next

stretch from

the

still twenty-eighton
some

century there

In the sixteenth

market.

COMMERCE

OF

HISTORY

wipe

others.
Ages with many
283.
Manufactures;

these remnants

away

the

maintained

gildsystem
leave

of the Middle

in

spiteof

commercial

the

historyof
France
in this period we
must
consider still another subject,
the organizationof manufacturing, to understand
why the
better use
of its resources, and why it
country did not make
entered the nineteenth
century handicapped in competition
with a country like England. Three
general topics will be
considered: (1) the gildsystem; (2) the national regulationof
manufactures; (3) the royal or privilegedmanufactures.
(1) The gildswhich in England during this period gave
modern
efficient system persisted
and more
place to a more
its bad

in

effects.

France

convenient

on

in want

subjectsof
and

the old model.

and

of

Separation of trades.

distinct corporations,
each

with

"

economic

artisans

merchant

to

which
or

Amiens

the

gilds more
artisans;for
advantages,

unite

in

rigidseparation of

processes

At

When

the

scattered

for any

was

complication of
incrediblystupid to a modern
modern
factory.
284.

than

not

result

influence.

it found

money

compelled

even

The

their

taxation

therefore,and

encouraged

trades

we

extended

even

was

fiscal reasons,

it

"

and

government

Before

as

to

would
the

there

gilds

allied
seem

head

of

were

nine

regulations,
engaged
specific
woolens
alone.
Every gild watched
to see that another
jealously
gild did not infringeon its petty
interminable
them
field,and there was
an
bickeringamong
the question of monopoly. The
over
quarrel of the goosethe poultererslasted half a century, and
roasters and
went
in

the

manufacture

of

its

POLICY

FRANCE:

against the

poulterers,who

245

restricted

were

the

to

sale

of

emerged from the conflict

flushed with a
only to meet another foe,the cooks, who were
recent
triumph over the gildof vinegarers-mustarders (who
made
ceeded
sauces); and after another half-centurythe cooks sucin limitingthe rightof the roasters to sell cooked meat.
This is an example of the conflicts which all the time absorbed
of people who
and
the resources
the energy
were
engaged in
kindred
lines of retail trade and
manufactures; cobblers and
and tailors;watchmakers
and
shoemakers; old-clothes men
uncooked

but

game;

the

roasters

"

clock-makers;bakers
a

listthat

long

and

and
restaurant-keepers;

interminable.

seems

list of enemies.
of

certain

lines

sixteen

decisions

The

Some
mercers,

dry-goods, in
of

the

"

supreme

the

tradesmen
for

on

had

instance,who

course

court

so

of

through

specially
dealt

in

century had
(Parlement) in their
a

glovers;and fought also the "bonneterswhose wares

cappers,"and nearlyall the other tradesmen
they
who had the rightto make
The question,
and sell buttons,
sold.
rose
nearly to the dignity of a question of state; search was
in privatehouses
for illegal
made
uals
buttons, and privateindividarrested in the street for wearing them.
were
of the gildsin preventing technical progress.
Influence
285.
Space is lacking for a descriptionof all the evils that the
gild system entailed on French
industry in this period,and
the reader is referred to the generaldiscussion
of the gildsin
the assurance
that all the evils there
a previous chapter, with
well representedin France.
"enumerated
We cannot
leave
were
notice of the obstacles which
the topic,however, without
the
gildsput in the way of inventions and technical improvements.
A coppersmith who
devised a new
helmet
set upon
was
by
the armorers;
a
hatter, who improved his wares
by mixing
silk with the wool, was
attacked by all the other hatters;the
inventor of sheet lead was
opposed by the plumbers; a man
in print-cloths
who
had made
forced to return
success
a
was
to antiquated methods
by the dyers. The gildsmen opposed
not only new
and methods, but also the use of machinery
wares
conflict

"

with

the

246

HISTORY

OF

COMMERCE

production on a large scale. A Lyons silk-weaver could

keep only four looms; a Lille serge-maker secured the rightto
have twenty looms, that he might carry on experiments looking
to improvement of the manufacture, only by specialprivilege
In
and againstthe vigorous protest of the city government.
culties
improvement, but the diffispite of all oppositionthere was
have
failed
were
so
great that nine reformers must
where
succeeded.
The history of the French
one
gildsof this
period is a history of wasted opportunities.
manufactures
restrictions imposed on
286. Narrow
by the
tied down- not only by the
(2) Industries were
government.
of the gildsbut also by laws of the central
narrow
regulations
Every government believed in this period that
government.
and

"

it

unwise

was

to

let manufacturers

all respects,
to stand
the

public.

Even

or

follow

their

fallaccording to their

England

had

an

extensive

ideas in

own

in

pleasing
ing
system, prescrib-

success

if it

products of certain manufactures.

English system, however, did comparatively little harm,
accomplished little good, while there can be no question

that

the
The

standards

for the

similar system in France

serious

check

to

industrial

was

carried

so

development.
most
regulationwas
Louis
XIV, to whom

far that
This

it

was

excessive

under
marked
growth of government
reference has
Colbert,the minister of
already been made as a leader in the extension of the protective
and the system continued
tariffs;
throughout the period.
Colbert fixed
for an illustration,
Taking the cloth manufacture
by law, for each kind of cloth,the length and breadth, the
dimensions
of the selvage,
the number
of threads in the warp,
the qualityof the raw
of manufacture.
materials,and the method
His instructions for dyeing contained
to
317 articles,
which
fix responsibility
and force
conform.
To
dyers must
compliance all cloth had to bear the specialmarks of the
the seal of the gild,and sometimes
dyer, and finisher,
weaver,
another mark.
These regulations
plicated;
comconstantly more
grew
officialsaid in 1787 that the regulations
factures
manuan
on
filled eightvolumes
in quarto.

FRANCE:

be

can
or

question,either

no

agents everywhere
manufacturers, that
than

the

There

"

of Colbert's intentions

honesty

carryingthem

out.

He

sent

out

know

cannot

hundred

businesses better

Colbert and
on.
carrying them
deceived
ignorant of many
points,were

were

are

result

The

others.

many

manufactures.

on

study industries and to talk with the

he might legislate
to the best advantage.

who

men

successors

in

247

to

however,

man,

of the

he showed

of the energy

One

restrictions

of these

Burden

287.

POLICY

was

of

mass

his
in

regulationsof which

utterlybad, injuringboth producer and consumer.

minimum
breadth for cloth would
The regulation
a
prescribing
have killed an industryin one
part of France that wove
strips
for flags,an
industry in another
part that could sell cloth
breadth
that one
could
a
man
cheaper by weaving so narrow
after a tedious and expensive
These
tend the loom.
industries,
delay,secured exemption from the law; others,less fortunate,
ran
were
always the risk of having
destroyed. A manufacturer
bad and people
his wares
confiscated,not because they were
in some
did not want
them, but because they failed to conform
regulations.An officialinspector,
shortly
point to hide-bound
were

many

Revolution, said that in every week of

80 or 100 piecesof cloth,good except

before the French

past

he

had

seen

standpoint,cut in piecesor burned

irregular.Even the French revolted at some
they were
and
evaded
with
half of the laws were
regulations,
the

years
from

because

government

of the
the

nivance
con-

of officials.

Special privilegesgranted to certain manufactures;

the government
restricted in
(3) While
resulting abuses.
this fashion
the natural
development of manufactures, it
288.

"

granted

taken

grants of money
industries.
grew
to

and

This

under

and

expand
to

coming

reach
as

after Colbert.

the

natural

would

in

higher grade
in

to

the

It enabled

otherwise

growth

own

taxpayers

practice,begun

they

as

from

its

from

only exemption

not

of

have

rules but

favored

stimulate
sixteenth
certain
been

liberal

century,
industries

unable

to

do,

organizationwhich was
England. Unfortunately,how-

248

HISTORY

COMMERCE

OF

deservingbut to the
To
adroit claimants.
most
loudest and
gain the privileges,
included
which
everything from exemption from taxes and
the manufacturer
to titles of nobility,
subsidies down
handsome
that he had some
technical improvedid not need to show
ment
sufficient if he promised to bring in
to introduce;it was
to extend
one
a
already in existence
foreign industryor even
The
to raise
at home.
royal factories abused their power
went
privileges

the

ever,

prices to the

in

showed
which

We
French

resulted in ways

have

may

the wages

us
apparent, and justify

of the

of the

characteristics

career.

of the

manifestations

to lower

unaided, and

thrive

shorter

the most

to

laborer.

regarded as publiccalamities.

to be

came

general the

cannot

longer or

and

consumers

of them

Some

not

in

can

say of them

policyof
unknown

hothouse

of them

most

the

to

They
plant,

failed after
of many

as

other

good

period;some

us,

but

the

evils

are

the policybad.
calling

AND

QUESTIONS

TOPICS

protectivepolicy,as applied by Colbert. [Palgrave'sDiet.;

Sargent, Economic
policyof Colbert,N. Y., 1899, chap. 4.]
2. Measure
of the stretches on
the length of one
more
on
a
or
map
1.

The

A. J.

which

distance separating
levied,sect. 282; estimate the average
toll barriers;
apply to a map of your own
vicinity.
familiar
with
the
modern
3. If you
are
facture
manuorganization of some
write an
how
would
be
showing
efficiency
impaired by
essay
the separationof allied trades.
student
will
on
insisting
[The advanced
find helpfuland suggestiveon this and similar topics,
Biicher. Indust. ev.,
chaps. 6, 7, 8.]
4.

tolls

Write

iowing the
5.

report

on

strict division

Write

technical
trade

were

report

instances known

any

of

on

you of bad
trade unions.
to

occupations among
any

instances

of

of

oppositionto
machinery, etc., by modern

known

improvements, the introduction

results fol-

to

you

unions.

Attempt of Colbert to establish regulationsfor manufacturers:

object, methods, variety of regulations,results.
[Sargent,Colbert,
6.

chap. 3.]
7.
to

"

With

what

object and

regulate manufactures?
N. Y., Macmillan, $1.]

to

what

extent

[Fairer, State

do

governments

in relation

to

now

seek

trade, London

CHAPTER
GERMAN

THE

289. -Political survey

a

to

of

for the

instructive

it will be

STATES

Germany

country in which

speak, too strong

XXVI

the

about

central

1500.

After

"

government

interests of commercial
to

take

up

countries

sidering
con-

was,.,

so

ment,
developin which

it

and Italy.
too weak, Germany
certainly
and
Germany presenteda strikingcontrast in its political
in its economic
development at the beginning of the period,
the central government
about
In political
1500.
organization,
it was
the mere
of a reality.
shadow
had almost no
power;
of petty states, of which
The
real power
rested in hundreds
was

some

were

but

few

square

miles

in extent.

There

was

no

keep in order these littlestates and the

The history
different classes of people which composed them.
of Germany
in this period is a sad story of conflicts between
classes,
princes; conflicts
peasants, burghers, knights, and
the states
between
Catholics and Protestants;conflicts between
themselves.
In these strugglesthe best energies of the Germans
were
absorbed; they were
marking time or even
going
backward
while the more
fortunate
peoples of Europe were
advancing. The Germans learned at last to despairof realizing
authoritywhich

could

"

their dream

of

national

government.

country, however, were

the rule of princeswho

Not

all

parts of the

under
came
equallyunfortunate;some
managed to build up a strong power at
arid abroad.
home
of these local states are
of especial
Two
importance, for between them they have divided the fragments
of the old Germany, and made
Europe.
great states in modern
of them, Prussia, is the nucleus
One
of what
call
now
we
Germany. The other, Austria, which included the Germans
250

South, added

of the

other

by

contrast, it

the

made
of

Development

290.
was

and

races,

them

to

the

fragments of territorypeopled
state of Austria-Hungary.
economic
organization. There
"

the

said,between

was

lack

,The very

development.

251

STATES

GERMAN

THE

of

and
political
central

the

power

nomic
eco-

had

GERMANY
IN

18th

Boundary

The

THE

CENTURY
of

t/te

Empire

objects of the map

(Prussian)
are:
(1) to show the possessionsof the Hohenzollerns
many
Hapsburgs (Austrian); (2) to show the small fragments of which remaining GerTo
of
smaller
was
the
not
clearness, many
fragments
composed.
are
preserve

and

indicated.
did

not

enabled

Note

include

that

the Empire

all German

states

of the

some

by freeingthem

included

and

control.

who
agricultural
classes,

had

who

again

were

to be reduced

oppression

to

which

states

not

German

(Flanders), and

(East Prussia, Silesia).

sections

from

some

constant

classes to

In

been

the

fifteenth

gave

later

by

rapidly

century the

serfs in the Middle

to serfdom
wars

advance

the

rise,were

Ages

and

political
free

and

252

The

prosperous.
those

of

cities

manufacturing and
and

Germany
extending
wealth.

over

German
of any

energy

countries

Fuggers

great"promoters
all Europe, from

were

rich

more

were

The

too.

commerce

COMMERCE

and

populous than
country north of Italy. Not only had
mining made rapid progress, but banking

other

any

OF

HISTORY

north

of the

of the Continent

and

of southern

with
financiers,

which

showed

merchants

the Welsers

and

they

the

drew

other

among

which

wares

enormous

enterpriseand

most

Alps;they distributed
the Levant

interests

they

secured

of the West
of
Venice,and they controlled the commerce
We shall begin our
sketch
Europe with the North and East.
"of the decline of German
to the
commerce
by returning now
historyof the Hanseatic League, which we left in full control

from

of this last branch

of trade.

Condition

291.

of

the

Baltic

suffered in the period about

had

merchants

caused

decline

which

in the

from

1500

control.

no

trade.

The

demand

The

"

Baltic

influences

of its

some

which

Reformation

Protestant

for

over

trade

staplewares:

vices,
largelyused for candles in church serand
fish,of which the consumption had been greatly
furthered by the Catholic periodsof fasting. The most
valuable
the herring,
ceased to enter the Baltic Sea, and
fish,moreover,
by limitingf heir feedingground to the North Sea enabled the
Dutch
to become
leaders in the fishingindustry. Imitation

wax,

of

had

been

Italian fashions

in

dress, with

French

the

which

became

All these
for furs.
1500, caused less demand
changes hurt the Baltic trade,but they were far from destroying
it. This trade grew, in fact,throughout the period;it could

acquainted about

afford to

dispensewith

the
The

stores.
are

to

292.

luxuries

of

and

meat,

necessaries,grain
reasons

be sought not

character

the

of the
Decline

for the

decline

in the character

League

for it

commerce

of the

lumber

and

Hanseatic

of the trade

trolled
con-

naval

League

but

in the

itself.

of the Hanseatic

League.

"

of which
towns
organization. The many
were
so
separated by physicaldistance and

The
it

League lacked
was

composed

by divergence of

GERMAN

THE

253

STATES

They were
they could not cooperate efficiently.
which
sought to enter
strong enough to crush other towns
their field,
but they were
unequal to the contest with national
of the
countries
of
the
consolidation
states; and
political
interests that

with
whom
Europe raised up enemies
In nearly twenty years (1476-1494)
they could not compete.
Dissensions
only one common
meeting of delegateswas held.
broke
out inside the towns, and
they began to quarrelamong
themselves.
Liibeck, in the center, put forth claims opposed
the
the edge of the League, on
to the interests of towns
on
and in Prussia.
in the
lower Rhine
towns
Rising commercial
and Amsterdam,
western
part of the Netherlands, like Rotterdam
in opposition to it.
outside
the League and
grew
up
northern

and

western

turning-pointin

The

Denmark

the decline

Sweden

and

Russian
trade

trade
in the

Baltic

They

flooded

when

the

the

Hansa

only

Bremen,
293.

and

of the

the cities of north

trade

India.

The

fought

with

proof

exists

the

Archangel.

say

fallen out, the

great League

soon

Liibeck,

members,

from

Germany
them

German

by

hold

on

While

"

largeshare

growing
of their

the

to
route
discoveryof the ocean
(Nuremberg, Augsburg, Ulm, etc.)

their

maintain

carried

ceased

to

obtain

had

themselves

with

content

found

South

cities

they

Germany.

losingtheir

were

desperationto
that

of south

Italyafter they
to

Of

commerce

the cities of the

taken

prosperous

Hamburg.

Decline

commerce,

at

of the

Englishman could

an

Hanseatic

as

into

English cloths,and
of
expelledthe members

1601

their head."

remained

towns

Ocean

of their teeth have

"Most

looselyin

three

In

up

ships

war

larger part

's-

with

market

England.

towns:

sit but

rest

the Arctic

on

German

the

English built

resisted,Elizabeth

Hansa

the League from

of the

Sea and

carryingthe

were

The

to the Dutch.

the Hansa

into the Baltic to the

threw

Sweden

enemy's country.

1535, when

at

put

to break

strong enough

were

monopoly by opening the passage

other states
of all peoples. Soon
the

be

may

on

active

an

there

commerce,

with

commerce

the Oriental wares,

Italian

products.

and

Even

and
this

254

trade, however, fell to

flooded
Italians,who
Germans

out

OF

HISTORY

COMMERCE

large extent into

southern
Germany
a

the
and

hands

of the

drove

native

of business.

entirelyunprepared for the changes

for they had long gone in considerable
followingthe discoveries,
numbers
to the Spanish peninsula,by land through southern
Germans

The

France

from

or

great merchants
at

its source,

also for

French

or

of south

in Lisbon.

brief

Italian

harbor

settled in

had

Germans

Many

not

were

Barcelona.

to

for

Portugal,and
Germany shared in

the

The

financiers shared

period in

great German

the

of the

commerce

time

Indian

New

the

trade

World.

and Welsers leased the copper

mines of San Domingo;
Ellingers
the Crombergers had silver mines at Sultepeque; the
Tetzels exploitedthe copper
mines
of Cuba.
The
Welsers
founded
Venezuela by a military
expeditionwhich they financed,
and held the country for a few years.

The

294.

The

chief

of

cause

decline

of

German

commerce

in

political. The most obvious explanationof

the failure of Germany to take a placewith the other states in
the
commercial
expansion followingthe discoveries is the
sion
disadvantage of her position. It has been said that the diverof commerce
to the oceanic routes
exposed the countries
of
of central Europe (Italy,Germany, etc.) to a condition
commercial
glaciation,such as Norway would
experience
if it lost the warm
of the Gulf Stream.
The
current
physically
this

period was

difference
thousands

"

in distance
does

of

few

hundred

miles

in voyages

of

No physicaldifferences
explain the matter.
suffice to explainwhy Amsterdam
and why Hamburg
rose
fell so rapidly. The weakness
of Germany was
not physical.
Nor
it economic; German
of this period had
merchants
was
free capital,more
business
more
abilityand greater energy
than the merchants
of any other country.
ness
Germany's weakwas
political.The payments which merchants and other
Germans
in the form
of taxes
made
and loans to political
authoritydid not form a singlefund which could be used for
interests at home
and abroad.
The money
furtheringGerman
not

THE

to

went

of rival

great number

in their

hurting German
The

255

STATES

GERMAN

natural

was

helping but

particularquarrels,not
business

and

governments,

sumed
con-

actually

interests.

outlets

of

stopped by hostile
The
weakness
of Germany
other
enabled
states.
political
states, now
risingto power, to crumble off fragments of the
policyhostile
country, in which they established a commercial
interests.
Before long the mouth
of every one
to German
of
the large rivers which
outlets of
the natural commercial
were
The Rhine was
the country had passed under foreigncontrol.
Dutch; the Weser Swedish; the Elbe Danish; the Oder Swedish;
Tolls hampered the passage
of wares
the Vistula Polish.
as
surrounded
as
effectually
though Germany were
by a physical
barrier on the sea
side;and German
ships almost disappeared
295.

commerce

"

from

the

ocean.

especiallyby
independent position. So long

German
Dutch
the

to

an

great market

of the Continent

it,and

through it
Antwerp was

for

Dutch

The

had

to

Lisbon.

different

very

the

raisingthe
control

the

substitution
blow

of Amsterdam

German

to

those

ideas from

themselves

trade

as

interests.

of the

and

to

Flemish;

force other

They
dependence on them.
lower
Rhine
practicallyuseless for their rivals,
and thereby coming into a
tolls sixfold and
more,

of the trade

296.

The

rise of the

Antwerp was
traded
freelywith

Germans

serious

most

to do all
they wanted
peopleto a positionof

made

the

suffered

commerce

The

as

commercial

far
done

damage

as

Frankfort

by

internal

on

the Main.

dissensions

and

by

the

Germany was not only cut off from the

but cut up inside by the tolls
outside world by tariff barriers,
of cities and territories. Every cityon
wanted
route
a trade
to
make
all goods passing the
itself a "stapl","i.e.,have
vicinitybrought there for taxation and for sale. Frankfort
the Oder, for instance,demanded
on
that all boats passing
Thirty Years'

down

they
The

the
could

War.

river

Warthe

should

come

up

to

Frankfort

before

the Oder to Stettin.

journey down
Stettin,Frankfort, and Breslau, all situated on

continue

cities of

"

their

256

the

instead

Oder,

made

OF

HISTORY

of

using

commercial

bitter

(1618-1648),
cost Germany
exaggeration,
of

years

the

On

still

peaceable exchange,

other

with

after

worse

terrible

tolls and

the

Thirty

conflict which, without

hundred, perhaps two hundred,

of transportation
physicalmeans
instance,the dikes ceased to be

one

for

Elbe,

for

each

on

The

development.

declined.

river

grew

War

Years'

that

war

prohibitions.Conditions

COMMERCE

repaired,the tow-path disappeared,the

banks

crumbled; and
became
that navigation was
sand
bars and snags
common
so
difficult and costly. Tolls not merely doubled; they increased
fivefold and
more.
Space is lacking for a descriptionof all
the

of
a reproduction
practically

evils;they were

which

left behind

had

happier states

them

the conditions

five hundred

years

before.
Restriction

297.

manufactures
French

followed

which

given them

who

said

have

been

they
in

asked

to

some

new

in

by

the

did not

of

marry

no

the

or

because

had

at

best to

horse
pay

or

this artificial restriction

only kept

drunk

high

very
on

the

the ordinary workmen

French

be

must

direct his attention

to

ceeded
gildssucfamily monopoly

of

because

number

master.

One

wife

whose

from

come

shepherd's

they

had

executioner.
become

who

master

married

an

who

man

any

become

fees to

also raised the price of goods to the

widow

with

in

of

gild. Many

trade

had

he

alleged to have
family; other gildsexpelledmembers
executioner's

to

seem

the

reader

the

way

could

man

daughter

man

of

of the

the exercise

the

to

put in the

full member

regulation that

gild expelled a
grandmother was
an

but

century

they

than

narrow

the

worthy
gild organization. Speciallynote-

obstacles

making

of the

gilds merited

Germany";

more

old evils reappear,

these for granted and

that

as

The

same

become

"

of the seventeenth

respects even

the

German

gilds.

course

above.

"curse

the

aspects, of the

to

same

economist

an

were

some

take

are

desired

by

traced

the

by

the

about

have

we

term

gilds. The

of manufactures

ridden
A

master, and

of full members
wretched

consumer.

man

not

position,but

258

remarkable
industrial

of

HISTORY

interests

made

were

strong government

zollern rulers did not

of scattered

group

resources,

which

subordinate

over

in

territories

for

making

of which

itself

The

people.
a

and

Hohen-

rich state

some

They

of

out

in natural

were,

poorest in Germany.

strong state, which

commercial

to the establishment

united

succeed

the

among

COMMERCE

state-making,in

of

example

OF

did

make

.a,

the great
place among
and later took the lead in unifyingGermany.
powers,
There
in the historyof the Hohenzollerm
moment
was
a
it seemed
when
the idea of
possiblethat they might anticipate
William

won

II: "Our

future

lies upon

the water."

If the

Great

Elector

of the
coast
(1640-1688) had secured the Pomeranian
Baltic or kept even
Stettin,he might have realized the plans
he held to turn Prussia into a sea power,
with fleet,
colonies,

and

transmarine

the

state

land, however, and

on

secured

was

Great

later it

urged,

was

was

fixed

Fortune

commerce.

too

when

the

good
change.
a

late to

interests
Baltic

of

harbor

Frederick

the

century afterward, to direct his policyto

the sea, and actuallyfounded

some
companies for trade with
the East, but the time had passed,or had not yet come,
for
the

of Prussia

success

Reforms

in oceanic

in Prussia

trade.

favoringeconomic

development.
In regard to their internal conditions,however, the territories
of the Prussian state enjoyed a great advantage over
others
300.

in

Germany.
stapleswere
their

The

removed

The

cumbrous,
furthered

was

countries;and
from

the

the

of

the

protected,as

privileges.New
land

number

was

of

the

were

in the

form

of tolls and

interests did not require

political
tariff systems, enormously complicated
revised.
The
tures
growth of manufac-

by attractingskilled artisans from other

city of Berlin received a great stimulus

Huguenots

abuses

worst

new

when

maintenance.
and

were

obstacles to trade

"

in

who

gildswere

refuge there.
reformed, and

France, by

customs

duties and

applied

in

methods

opened

to

found

were

settlement

laborers,however,

and

Some

of the

manufactures

by royal

agriculture,and
cultivation;a large

still remained

unfree.

It

THE

would

be easy

GERMAN

259

STATES

details,but in closingthis section

on
Germany the reader is again advised that the important
side of Prussian
not economic.
historyin this period was
political,
Prussia was
preparing herself for the work of unifying
Germany, and to accomplish that work a strong government
was

needed

to

Germany

to

add

rather
in

than

our

which

of

started

rich

people.

The

riches

have

come

time.

own

Contrast

301.

many

Prussia
in the

and

Austria.

"

Prussia

was

Germany (near Berlin),

and remained
almost
it spread. Austria,
as
entirelyGerman
the other hand, was
on
originallya territoryon the southern
border of the German
people,the rulers of which managed by
skill and luck to extend
their power
over
fragments of adjoining
and other Slavs
Bohemians
peoples of a different stock, over
garians
Hunthe Magyars or
(relativesof the Russians), and over
other
(relativesof the Turks). These
peoples were
behind
in their industrial development; they had
the Germans
into Europe later,had
been
less subject to civilizing
come

state

influences

and

sixteenth

they

controlled

for

the mines

quarrelsand

internal

to

were

Germans

Austria

of

wars.

the

other

industriallydependent

in the

Germans

Austrian

century.
into

and

exposed

more

Furthermore, the
Germans, on whom

heart

the

from

behind

were

sale,carried

North
on

took

their

factures
manu-

of Austria

the trade

of Austria.

hindering development of the lands

The
territories subject to the
subject to Austria.
ruling
family of Austria,the Hapsburgs, began the period,therefore,
in a backward
out
condition,and they had no opportunitythroughthe period to c#tch up.
hindered not
Internal trade was
only by the national diversityof German, Slav, and Magyar,
but also by the persistenceof provincial
went
which undertariffs,
Political

302.

factors
"

no

not

important reform

abolished

Germany

from

crisis of the

had

even

until

then.

civil war,

nearly 1800, and

Austria

not

suffer

so

much

were
as

Germany went through the

which nearly ruined Bohemia; and
of the Turks
the advance
resisting

but

religiouswars,
in
plague of its own

did

which

like

260

moreover,

Peninsula.

from

absolute

the national
not

in the

of the

progress

the

which

people as

of

in

often

too

and

commerce.

Austria

1700

stood

of

products

raw

is,

It

"

positionit had occupiedtwo

same

used

whole.

industry

like France,

royalfamily and

interests of the

country exported the

The

suffered

government

surprisingthat

in about

COMMERCE

Austria

in the

interests

therefore,not
before.

an

resources

Slow

303.

OF

Balkan

the

from

HISTORY

cially
commer-

centuries

industry,

wool, flax,linen,hides, copper, etc.,and received them again

been
manufactured
after they had
by other peoples. An
of

economist
Austria

were

the

time

said

not

equal

to

the

that

those

of

this small amount

Leyden. Even
by gilds,and suffered from
the

of

total

of

manufactures

single Dutch
manufacture

city
was

like
trolled
con-

the characteristic faults of

gildsystem.
In the

eighteenth century, however,

the

government began

ment.
developappreciatethe importance of national commercial
It fought the claims to monopoly put forward
by the
their business,
to extend
gilds,and encouraged manufacturers
trian
Ausin France
and Prussia.
as
by premiums and privileges,
iron and
in
made
steel wares
a
place for themselves
the cloth industryof Bohemia, once
ruined by war,
commerce;
revived
the factory system; stockings, glass,
again under
etc., were
porcelain,
produced in increasingquantities.

to

Attempts

304.
"

The

government

by
The

of the

its customs

duties

government

stimulated
tariffs

as

well

development.

development
as

by

of manufacture

its internal

policy.

thought could be
made
raised rapidly,especially
at home
after 1700, and
were
became
in many
cases
prohibitory. Undoubtedly the growth
of manufactures
furthered by this policy,though many
was
industries betrayed the weakness
of their origin by failing
after a short period of apparent prosperity. The tariff gave
rise,however, to much
smuggling and corruption,and injured
greatlysome

Italy and

on

articles which

the

to stimulate

the government

parts of the country: the Tyrol,which

Germany

and

had

prospered

on

the

lies between
transit

trade;

GERMAN

THE

like Hungary

sections

and

To

in

atone

the

protectivesystem,
aid

the

treaties

made

Consuls

sent

were

in the trade
305.

which

gave

made

were

free-

tariff frontier

of the

to

extend

to

her

renounce

claim

to

out

the

to

represent Austrian
made

were

to

interests

secure

share

India.
still backward

commerce

attained

trade

outside

attempts

with

Austrian

Austrian

Fiume

forced

was

also

Adriatic,and commercial
with Turkey, Russia, and states in northern

foreigncounries,and

even

the

on

right to navigate

were

Africa.
in

Venice

trade.

exclusive

put

and

rials,
mate-

raw

results of

necessary

attempted

government

to

attract

produced only

for these

Triest

foreign commerce.
they were
ports, i.e.,

to

which

measure

some

261

STATES

with

no

1800.

great development. The

hand

one

in

took

with

the other.

"

Still

ment
govern-

Special

of the
did not
make
privileges
up for the general weakness
productive organization.Rulers complained that in spite of
all their efforts commerce
languished. Most of the foreign
trade was
absorbed
by five companies,which divided the field.
of them
limited locally,
Two
were
trading with Turkey and
with Asia Minor
while the other three traded in
respectively;
with various
countries.
One
specialwares
imported colonial
like sugar;
another
wares
exported linens; while the third
materials to Italy,France, and
Spain.
exported various raw
merchants
Austrian
beginning in 1776
During the wars

attempted

build

to

up

agent of the government

but during the
of

success

in

was

followingyears

of the
of

Write
Middle

installed at
of peace

on

the

Ages, and

the

report

AND

Austria

had

no

chance

TOPICS

constitution of Germany at the end

political
resultingconditions.
[Baring-Gould,Story

Germany, chaps. 46, 52; Seebohm,

vol. 2, book

America, and an
Philadelphiain 1783,

North

competition with trade rivals.

QUESTIONS

trade with

Prot.

rev.,

4, chap. 1; Freytag, Pictures,XVIIIth

Janssen, Hist.,
cent., vol. 1, chap. 4.]

26-33;

at the beginning
Development of business and business methods
of the period. [See above, chap. 18; Cunningham's chapter on Economic
2.

262

OF

HISTORY

COMMERCE

change in Cambridge mod. hist.,vol. 1; Janssen, Hist., vol. 2, book

cent., vol. 1, chap. 10.]
chap. 3; Freytag, Pictures,XVth
3. Condition

manufacturing.[Janssen, Hist., vol. 2,

of

3,

book

3,

chap. 2.]
agriculture.[Janssen,Hist.,vol. 1, book

3, chap. 1.]
of the Baltic trade.
5. Decline
towns, period 3.)
[Zimmern, Hansa
in
324-353
of
Hansa
Decline
the
6.
]
England. [Zimmern,

4.

Condition

7. Write

of

brief report

on

the commercial

historyof (a) Nuremberg,

Germany.]

(6) Augsburg. [Encyc.; Guide books of south

troubles about
and economic
1500.
8. Class conflicts,
[Seepolitical
**
Frank
vol.
book
Prot.
4,
bohm,
7;
136-140; Janssen, Hist.,
rev.,
of the fifteenth century, Yale
Review,
Goodrich, * A social reformer

Aug., 1896,
9.

Do

in sect. 295

5:

168-181.]

the

Germans

at the

control the mouths

of

all the rivers mentioned

present time?

Thirty Years' War, from the

economic
and commercial
standpoint. [S. R. Gardiner; Thirty Years'
War
N.
Y., 1874, 217-221; Anton
(Epoch Ser.),
Gindely, Hist, of the
Thirty Years' War, N. Y., 1884, vol. 2, chap. 11; Freytag,Pictures,XVth
cent., vol. 2, chaps. 3, 5, 6.]
11. Write
of the
the commercial
brief report on
a
history of one
t
owns:
Frankfort
the
on
following
Main, Leipzig (or Leipsic),Hamburg,
Bremen.
for the early nineteenth
of
[Encyc.; Homans, Cyc.
commerce,
10.

Write

report

the effects of the

on

century.]

protectivetariff in buildingup the Prussian silk

industry. [Schmoller,Merc, syst.,pp. 81-91.]
13. Indicate on
sketch
of Austria-Hungary the spaces occupied
a
map
garians,
by the followingpeoples: Germans, Bohemians, Ruthenians, HunSouthern
Slavs.
[Atlas,Encyc.]
14. The wars
with the Turks:
how
long did they last;how far did the
Turks penetrate Europe; what was
the effect on industry? [S.Whitman,
Austria, N. Y., Putnam, 1899, $1.50, chap. 16; E. A. Freeman, Ottoman
in Europe, London, 1877, chaps.4, 5.]
power
15. Reforms
in Austria in the eighteenthcentury, and their effect.
[L. Leger,Hist, of Austro-Hungary, N. Y., Putnam, 1889, 379 ff 388 ff.].
16. Write a brief report on the commercial
[Encyc.]
historyof Vienna.
12.

Effect of the

.,

BIBLIOGRAPHY

Writings in German
the

period

translation
recommended

German

are

concerned

of

Janssen 's
for the

are

voluminous; English books on the historyo':

almost
entirelywith politicalaffairs. The
History, St. Louis, Herder, 1897 ff.,can

beginningof

life,London, 1862, contains

the
some

period,and
readable

Freytag's
and

useful

Pictures

be
of

descriptions.

XXVII

CHAPTER
ITALY

AND

MINOR

Political condition

306.

of

the

history

that

entered

that

would

The

history of Italy in

and

the

end

of

Germany

the

modern

enable

it to

the

Middle

Italyin
have

the modern
the

"

this

seen

fate

of

period presents

At

the

conditions

same

the
there

Ages

important states in
peninsula: Milan, Venice,
five

were

the

and

Florence, Rome,
None

was

unite

the

country;

enough

another

from

The

border

whose

Naples.

enough

strong

strong

to

each

to
was

prevent

reaching that end.

territoryof Savoy,

rulers

have

united

the
ITALY

peninsula

in

"treat

Italyas

an

of one,

to

artichoke,to be

yet for little. The

quarrelsof

leaf

eaten

by leaf," counted

the Italian states

by stronger neighbors, Spanish, French,

the prey of adventurers
and
Italy became

and

lived

as

parasiteson

industry and
307.

Italian

the

that

resources

should

invited
and

ference
inter-

Austrian;

tyrants who
nourished

have

commerce.

Position

Venice,which
her

1515

solving,
times, re-

recent

in the words

as

In

period.

country
period lacking a political
organization
hold its own
in competition with rivals.
we

results.

same

of

STATES

had

states,

of Venice

enjoyed

saw

prosperitywhich

in the

only

the

at

the

beginning of

commercial

Portuguese
263

primacy

discoveries

the strongest

the

measures

period.
"

the

among
a

threat

could

to

avert.

264

There
the

was

no

route

sea

HISTORY

COMMERCE

OF

why Venice should

physicalreason
to India,and, if necessary,
fightwith

for the

Indian

trade

the

however, pointed

at

other

its

involved

into

her in continental

at sea, at the very

expansion

an

on

The

her

sea

island

the mainland

intriguesand sapped

time when

were

important,all

tied up in the route through Egypt; and, most

her resources
were
requiredin the Mediterranean.

city had been drawn

traditions,

investments

all her

which

her strength

of the greatest

was

power

adopt

the Portuguese

All her

source.

way;

not

velopin
the navy
Turks
of the Ottoman
was
rapidlydeand the scourge
of the Barbary pirates (from the

importance;
Mediterranean
308. Blows
to

India.

the

two

Venetian

to procure

its

that would

policy with

made

maps,

halted

Venice

moment

routes.

information

begun.
trade both by sea

at Venetian
For

"

of Africa) had

coast

ambassadors
letters from

help the home

respect to the recent

repeated attempts

and

land

undecided

routes

between

structe
especiallyin-

were

all other

and

voyagers,

determine

government

Venice

developments.

buy from Portugal the right to

disposeof all the spicesbrought to Lisbon, a propositionthat
naturallywas declined. Venice had to buy in small lots,on
what terms the Portuguese chose to set; more
and more
silver
flowed from Italyto Lisbon,and it became
difficult
increasingly
to get spices in Venice.
Meanwhile
the government
was
to

sending explorerseastward,in the hope of opening one of

old routes
to trade,and
seriouslyconsidered for a time
piercingof the Suez isthmus with a canal. Venice found
Ottoman
had

Turks

when

time

Cairo

Relative

the

was

the Turks

prepared herself in

her old commercial

of Venetian

Venice

removing her chief staple from

Cyprus, but this too was lost in

Turks

the

in

Alexandria
1571

an

Mediterranean.

for the Turkish

after

to
a

tions
connec-

in 1517.
From

"

absorbed

were

measure

the

commerce.

in the eastern
a

the

through their dominions, but

finally
captured by

decline

energiesof

conflict with
had

to trade

the strength to maintain

not

309.

favorable

the

this

unequal
Venice

advance, by
the

island

of

heroic defense.

266

national
the

while

unfair

crushed

were

agent who

commercial

great number

country
of distinct

which

they

industryand

were

both
foreigners,

Jewish

commercial

included

The

commercial

and

conditions
in Scandinavia

state

weakness

Middle

trade

lost among

were

few

of

great

largelycontrolled by

was

countries.

Scandinavian
here
of

to

are

of

course

and

necessary

for

extensive

forests for fuel and

merce
com-

Europe during this period,and

will close with

in the

the

trace

It would

"

North

brief

and

East.

already familiar

descriptionof

to

The

districts

the reader

an

towns

into

forces

trade
important field for the Hanseatic
Ages. The population was sparse, industry was

forming

to

Christian.

states

book

report

tariff barriers

by

scattered and

unprofitableto attempt
part of the

taxes.

scarcelyany
tries
development of indus-

and

in the

in all the other

producing

of which
territories,

were

towns,

Conditions

312.

the

give play for the

endeavoring to protect. The

commerce

of small

number

to

shows
divided

was

and

ravaged

the Austrian

by

sent

1754

Turks

little better.

were

was

Italy in

large enough

were

by heavy

Tuscany conditions

of

investigateupper
everywhere. The

this

abroad

and

be

COMMERCE

home;

North

wasted

were

resources

OF

coast, kidnapping slaves, at

classes

of

HISTORY

in

as

the

veloped,
unde-

small; the knowledge and capital

lacking,and
and let foreignmerchants
content
to stay at home
people were
with manufactures
their surplus
to them
and take away
come
products. The iron industryof Sweden, favored by rich ores,
considerable
to be

raw

an

active

independent trade

abundant

were

water

importance;but the exports

those used
materials,especially

power,

continued
in food

attained
in

general
and for ship
development

building. Governments
attempted to hurry the
of their peoplesby protectiveduties and by the founding of
commercial
AdolGustavus
companies, with slightsuccess.
in the seventeenth
phus, a king of Sweden
century, formed the
bold projectof making the Baltic "a Swedish
lake," by control
of the entrance
and the coasts, but his successors
proved unable
The keys of the Baltic
to maintain
the positionwhich he won.

ITALY

of

fell into the hands

Denmark, and that country made

profitby collectingtolls

the

of

Rise
about

states

Russia

1700.

Scandinavian

to

of

trade

which

to

even

was

Like

states.

merchants

the

positionamong

Russia

"

Hanseatic

the

on

flow

the

on

good

it

little itself.

contributed
313.

267

STATES

MINOR

AND

for

backward

more

it had

them
its

European

been

dependent

with

commerce

than

western

passiveafter their fall,acceptingwhat

reached it overland or through the port of Archangel on
wares
the Arctic coast, whither
English and Dutch shippersventured.
the West," by
Until Peter the Great opened his "window
on
the founding of St. Petersburgon the Baltic about 1700, Russia
Peter attempted, with remarkable
was
hardly a European state.
to bring Russia
to the
European standard in
energy,
and industry as well as in politics.He reformed,
commerce
though he did not abolish,the system which gave the Czar a
monopoly of trade in the most important wares; he revised
the tolls on trade; he sent young
abroad to study commen
merce,
remained

Europe, and

and

tried in other

Peter

did not

from

its

to

dependence

build

up

Russian
gone

in his

succeed

merchant

before

this from

better.

Siberia*
to

the

longtripfrom Peking to Moscow;

the trade

which

the

Character

314.

crown

of

had

Russian

failure.

The

China.

which

caravans

Occasional

his

account

merchant

to free Russian

was

on

own

the

consumed

and

class.

commerce

his

merchants, and

marine

fared

commerce

attempt

western

on

elevate

to

ways

In

attempt

the

East,
had

caravans

Czar
three

individuals

now

years

sent
on

developed

stimulated.
in

the

eighteenth
Russia could be regarded in the eighteenthcentury
century.
It belonged, however, to the Europe of
as
a European state.
the Middle Ages rather than of the modern
period. Most of
the population, includingeven
the few who
were
occupied
with manufacturing,were
serfs.
The
people as a whole were
on
of living,
a low standard
and were
mercial
densely ignorant. Comlaw was
undeveloped,and trading practiceswere those
of a half civilized community.
interfered
The
government
"

commerce

268

HISTORY

OF

exchange by arbitraryand

with

COMMERCE

vexatious

restrictions.

The

only raw products.

country could export, with rare exceptions,
China
it imported tea, silk,
From
gold,jewels,etc.,of which
dependent on
kept at home; while it was
only a part was
western
(sugar,coffee,
Europe for most of its colonial wares
spices,and drugs),and for all the
metal, pottery,paper, etc.).

1.

with

of

Condition

TOPICS

AND

QUESTIONS
Italy about

[Seebohm, Prot.

1500.

21-26.

rev.,

sketch-map.]
2.

Venice

about

1500:

government,

commerce,

land.

[Horatio F. Brown, Venice, chaps.16, 17;

vol. 1, chap. 8, by the same
author.]

and

(textile,

finer manufactures

3.

Contest

4.

Decline of Venetian

the

routes

of Venice

with

the Turks.

Cambridge

and

sea

mod.

hist.,

[Brown, Venice, chap. 19.]

Lybyer, The Ottoman Turks

[A.
trade, English Hist. Rev., Oct., 1915, 30:
H.

commerce.

of Oriental

or

policy on

577-588.]
Attempt of Gustavus Adolphus
[Encyc. Brit., Gustavus
II.]
5.

6.

Social and

economic

to make

of Sweden

in Russia

conditions

about

great power.

1700.

[W.

R.

Morfill,Story of Russia, N. Y., Putnam, 1900, $1.50, chap. 13; H. M.

Thompson, Russian politics,N. Y., 1896, chap. 2.]
7. History of Russia
in the eighteenthcentury. [Manuals of European
history; Thompson, chap. 3.]
BIBLIOGRAPHY
Aside

from

fragmentary sections in

the

current

of English will find littleliterature available

manuals

the reader

history of commerce
states.
in the minor
Such suggestions for collateral reading as are given
above
will probably satisfy
the needs of students who are not sufficiently
to use
advanced
foreign languages.
TOPICS
After

FOR

on

the

REVIEW

in different countries the

covering the history of commerce
student will find it profitableto review certain general topics,piecing
together what he has learned of their local history and endeavoring to get
clear conception of the general development.
The following are
a
gested
sugfor study in the modern
portation
trans:
period (1500-1800) (a)shipping;(6)
roads and rivers; (c)production and exchange of foodstuffs;
on
(d) production and exchange of textile materials (flax,wool, cotton,
silk);(e) production and exchange of finished textiles (linen,woolen,

ITALY

silk);

cotton,

of

system
of

(/) production

European

with

Asia;

(gild,
(t)

colonial

(m)

trade

effect

of

systems;
of

MINOR

and

manufactures

banking;

(/)

AND

Europe

of

exchange
domestic

wars

and

on

(k)
with

269

STATES

the

iron;

factory

systems)
of

commerce

policy;

commercial
North

({/)'development

and

South

different

(I) trade
America.

of

(h)

the

ment
developcountries;

of

Europe

COMMERCE

RECENT

IV."

PART

CHAPTER

XXVIII
AND

COMMERCE

315.

Statistical
the

entering
period

nineteenth

which

in

in

people

whose

time

insignificancewhen
since
the

units

1850, 17;

growth
however,
those

warn

the

further,to

of

1,359

to

we

the

in themselves

fair

to

commerce

pictures

of marks

(roughly,

have

world,
many

backward

world's

270

chapter

figures.

in the

the

for

figures,

The

out.

at

merce
com-

astonishing
instances

particular countries,

as

in the

all,and

at

of the

in

place,

Assuming,

figures here

millions

scarcely trade
quarter

the

the

the

encountered

before

that

of

out

of the

"

pointed

expansion,

mind

in

end

in this century

We

be

not

of accuracy

be

is necessary,

regarded only

be

can

commerce.

degree

of recent

figures,especially

studying

of

way

It

to the

turn

may

increased

whole

the

commercial

of the

these

It may

foreign

commercial

who

of

author

table.

century,

to

them

countries, the
continents

to

almost

striking features

that

best

of

cent.

bear

must

include

the

to

world

of remarkable
but

student

from

per

sink

growth

trade

following

truth.

the

discussion,a

of the
of

the

student

growth

conclusions

some

rate

the
as

Great

purposes

the

to

advise

suggestions
316.

of

earlier part of the

approximations

for

Some
in

for the

these

milliards

the

dollars): 1700, 0.5; 1750, 1.0; 1800, 6;

shown
to

seemed

German

import

follows,in

as

1899, 76.

are

by

In

"

notable

most

have

the

1800.

approaches
the

may

with

and

export

million

achieved

occurred,

estimate

of the world

of 250

they

recent

student

advances

compared

of the

progress

countries

as

1800.

the

has

former

as

since

development

century

commerce

Great

progress.

of

survey

COAL

the

supposed

are

well

as

interior

the
of

gressive
pro-

great

Chinese, perhaps

population,

who

trade

COMMERCE

still to but
in

slightextent.

countries

some

to
figures

the

pointat

COMMERCE

FOREIGN

317.

Clearly the growth

have

must

been

which

of

commerce

to raise the total

enormous

find them.

we

PRODUCTION

AND

271

COAL

AND

OF

THE

COUNTRIES

OF

THE

WORLD

importance of commerce.
less striking than this growth in absolute quantity,as
Not
in current
measured
values, is the growth compared with the
Increase

estimated

in the

of

capita ("by head")

and
of

the average

value

index

in different times

increase in

however,

has

the share
trade

and

capita had remained

per

absolute

has

grown

over

per

is secured

by

in commerce,
of the relative importance

same

very

average

human

tenfold.

Let

make

to him

of inhabitants;

person

we

even

faster than

being in
the

whether

if this

regard the

should

important fact.

actuallyincreased much

of the

value

The

places. Now,

the
as

commerce

the difference it would

for

share of each

some
furnishes,therefore,
commerce

population.

country's commerce
of trade by the number

total amount

it shows

"

of the world's

increase

dividingthe

relative

merce^
Comlation;
popu-

the world's

student
he had

reflect

$2

or

on

$20

given time, and consider the extra

articles he could buy with the largersum;
he will then be better

spending money

in

272

able to

HISTORY

OF

COMMERCE

appreciatethe broadening and deepening of

in recent

current

world

The

318.

The

"

of
significance

passing through
is

in

now

of

the statement

of the world

commerce

an

almost

may

will show

that

the

the latter half of the

dare

to

which

when

say

find

we

life.

1871, could say with

Columbus

and

the

have

results upon

defined

in

commerce

American

An
truth

that

produced

its close

at

stilldo

we

"the
more

not

The

change
affects equally other
author, Adams, writingin
discoveries of Guttenberg
and more
startling
clearly

destinies of the

the

creation

the figures

to

will slacken.

movement

marked

Reference

"the

the midst

livingin

are

the

in
change quickened strikingly

century, and

the

so

sides of human

of

process

tion.
revolu-

be said to be the

years." We
past seventy-five
vast, though silent,revolution.

commercial

positionto understand
English writer,that

of the
of

mercial
com-

times.

now

student

the

human

within

race

twenty-fiveyears than in any other equal period of

Have
the results
during the four previous centuries."
in the quarter-century that followed?
other
Anless startling

last

time
been

economist, Wells, said about

American

historian

to

the

future

but

very
in
time
similar epochs
it."

Is the

that

it takes

the

world.

It

few, and
in any

perhaps

less

is unnecessary,

none,

in 1915

important place

of modern

to

of the centuries

generation terminated

Share

319.

writes

the

history of the nineteenth

by
century he will doubtless assign to the period embraced
portance,
the life of the generationterminatingin 1885 a place of imconsidered in its relations to the interests of humanity,
second

of

1890, "When

countries
I

in

in

of the

that have

the

preceded

willing to

historythan
commerce

many

admit

its predecessor?
of

the

to impress
hope, to say more
the student the fact that a period of great change in
upon
which
the world's history,
tinues;
began half a century ago, still conand that the coming generation will be called upon
to
carry on this change, and guide it for the welfare of humanity
in the future.
Leaving, therefore,generaldiscussion and spec"

274
and

domestic

use

of

Prime

Hard

"

of the

invention,of
of

man

disentanglethese

need

much

still be

to

been

the

discovery,and
Technical

nature.

great
of the

different

the

question

no

of

era

recent

which

nineteenth

the

leading importance during

scientific

over

factors,especiallythe

contributed

century has

This

century.

have

world, there

of the

been

it is to

as

factors, all of which

has

COMMERCE

of technical

importance

coal.

progress

OF

in politics
or
organization),
(political
zation,
organiand foreignpolicy).

commercial

321.

HISTORY

increase

material
in power

therefore, is

progress,

the

first"
subjectto be studied.

question as to which feature of

technical progress
holds first place. Electrical appliances?
steam-engine? Applied chemistry? All
Machinery? The
those
things,with the vast benefits which
they confer on
basis: coal.
on
one
Vegetable
humanity, rest now
practically
has
of past geological
matter
fossilized,
ages, that has become
undergone mysterious chemical changes and has shrunk to
there

Again,

one

tenth

to

who

raise

no

bulk, furnishes now, after hundreds

centuries,the means
by which we maintain

of

develop pur
power.

be

of its former

thousands

322.

need

material

Power
There

civilization and

in coal.

"

Coal

offers

our
men

great

or

and

commerce.

all

what

men

seek,

"spring" enough hi it,when properlyapplied,

million times its own
weight a foot high. A man
horse and cart to fetch a ton of coal,occupying
a

sends

four hours

on

2,800 times

is

the way,
that

secures

power

in the coal

theoretically

bringing it; and can

probably
of useful force exceeding by 100 times
get from it an amount
that of the horse employed in carting. A few decades
or
more
far less than it is now,
ago (1865),W7hen the output of coal was
expended

in

two
calculated that forests of an
area
English economist
and a half times as largeas that of the United
Kingdom would
be required to furnish
theoretical equivalent of the
even
a
annual
of course,
coal produce; practically,
the use
of wood
for an
estimated,
equivalentis out of the question. It was
an

somewhat

later (before1880),that if the whole

area

of

England

COMMERCE

AND

275

COAL

good land, devoted solelyto raisingforage,it would not

support a horse-power equal to that obtained from the English
coal mines; and that an area
perhaps ten times as large would
food
be required for the mere
beings of
supply of human
equivalentforce.
were

be

great mistake

most

chemical
heat

the

on

and

obtained

build

denied

the

manufacture

of

of coal

or

eight

to

coal.

coal necessary

now

coal, to break

from

almost

to

of coal.

use

down

It would

"

only
for
not

its

in its

engines.
entirely,
raw

terials
ma-

infinitesimal

tries
indusMetallurgical
proportionsif they

It has

estimated

its finished products.

up

shrink

would
were

consider

to

industry on

that of generatingsteam
application,
industrydepends largely,though

common

The

of modern

Dependence

323.

been

the

that

pig iron requiresthe use of two tons

while an
equal quantity of steel requiressix
Still,the use of coal for the steam-engine is

more;
tons.

of

ton

and we
can
gain
undoubtedly its most important application;
some
conceptionof the placethat coal has taken in the world's
by consideringthe growth of steam power,
economy

Importance

324.

horse-power,the
working capacityof
to the force that

from

or

number

Now

four.

wrorld

human
a

technical

horse-power.
adopted for measuring the

unit

"

equal
engine,is for practical
purposes
be got from several (perhapsthree)horses,
men
variouslyestimated at ten to twentynumbers
the steam
horse-power of the

century,

in arithmetic

equivalent,now

modern

in steam

an

million and

of the

operation

of

in round

was

the end

can

coal,estimated

of

to

half in 1840, and

fiftytimes that

will show

done

country, Germany,

by
we

the

steam.

find

had

increased,at
A

amount.

of

amount

simple

work,

.Taking,for example,
engaged

in

industry and

ten million people,while we

over
transportationslightly
engaged beside them another population of mechanical

slaves
one

(steam-engines),
variously estimated

hundred

slaves cost
and

burial

to

two

for food
expenses

hundred

as

fiftymillion
(coal),attendance, doctor's
and

(includingthe

in

cost

of

find
iron

equivalentto
people. These
bills (repairs),
replacingthem

276

OF

HISTORY

COMMERCE

in

twenty-fiveyears),only about $2.50 a year

some
exaggerationin the figures,and stillthe
labor is most
the cost of human
striking.

once

Admit
with

history of

325. Technical

the

apiece.
contrast

The
steam-engine.
in Europe since about
"

steam-

1700.
engine has been in practicaluse
The
earliest Engines, however, seem
ludicrouslycrude now,
and could be used only for_gumping water.
Progress was
slow until the last part of the

eighteenthcentury, when James

improvements/separate condenser,double-

introduced

Watt

of cut-off,
etc.),which

acting piston,use

of the engine,and caused a

efficiency
from mining to manufactures.
The
use
engine about
condensing,high-pressure

for the
which

of steam

use

the steam

it is allowed

though
Since

it

possible under
the

prepared the way

compound engine, in

or

more

about

cylindersbefore
the

time,

same

brought into generaluse until about

improvements in details of the engine and
enhanced

ideal

rapid progress
achieved

progress

engines requiredten

1850.

in the

stillfurther the efficiency

of steam

produces

now

non-

1800

The

two

of the

not

until it

no

introduction

invented

was

escape,

form of boilers have

now

through

passes

to

was

then

power,

railroads.

on

greatly increased the

gradual extension of its

about

conditions.

two

thirds of the

Practical

work

engineers expect

of
startlingchanges. Some measure
is furnished by the fact that Watt's

or

pounds

of coal

an

hour

for each

power,
horse-

the engines of the next

the

best

rare

modern

cases,

generationrequiredfive,while
engines require but one and a half, or, in

one.

The

engine
previous paragraph referred to the reciprocating
in which the piston moves
constantlyforward and back.
Since rotary motion is the form in which the power is commonly

transmitted
motion
made
the

and

applied,it

would

in this form
to make

case

be

and many
originally,
rotary engines. Success

of the steam

desirable

to

attempts have
has

been

De

Laval

of Sweden

to

been

attained

turbine,in which jets of steam

it to
turbine wheel, and cause

againstthe blades of a
Originallyappliedby Dr.

get the
in

strike
revolve.

operate the

COMMERCE

277

COAL

AND

cream
centrifugal

separator which

into

for the generation of electricity

and

use

common

he had

devised,it has

come

for the

turbine has proved its

propulsion of ships. While the steam
it is less adaptable than the
efficiencyfor specialpurposes
old form of reciprocatingengine,and stillleaves to that the
larger part of the field.
326.

internal

The

combustion

In

engine.
"

the

ordinary

plant there are two units, the boiler in which steam

is generated,and the engine in which the steam
is put to work.
An internal combustion
engine is designed to burn the fuel in
the engine itself. This is practicablewhen
the fuel is a gas or
power

liquidwhose

form

it is

will unite with

The

explosive mixture.

an

offers several
more

vapor

the oxygen
of the air to
internal combustion
engine

the steam

advantages over

plant: it

power

uses

effectivelythe heat that is generated,it is less bulky,

In spite of characteristic disadvantages,
more
easilytended.
the need of an auxiliarystarter,and restricted
particularly

as
flexibility
regards speed and power, the internal combustion
the
engine has proved indispensable. In large units it serves
steel mills,which put the waste
gases from their blast furnaces
to work, and in its applicationto the automobile
it has effected
revolution in transportation and travel.
a
Although in the

of the United

manufactures

States

engine still accounted

in

1914

for less than

the internal
of the

5%

bustion
com-

total

horsepower,the aggregate horsepower of the gasoline engines

of automobiles
has since that time considerablyexceeded
the
total horsepower from all sources
employed in manufacturing
industry.
AND

QUESTIONS
1. Do

not

attempt

possibly the firsttwo

Prepare
on

the table.

any

of the figuresin sect. 316, unless

of the last line.

graphic chart in the following way.

the horizontal
near

to remember

TOPICS

the

This

line at the bottom

right-hand margin,
will insure space

the perpendicular into, say,

of your

Lay off the time periods

the dicular,
perpenlay off the figuresof the last line of

in the

forty units.

paper,

and

on

chart for all the lines.

Each

unit

may

then

Divide
be made

278

HISTORY

OF

COMMERCE

represent: 1,000 million dollars of value; $1 per capita;40 million tons

of coal; 2 million tons of iron. Indicate the figuresfor 1913 on the perpendicular
(commerce 40, per capita commerce
24, coal 36, iron 39);
and perform the same
operation for the figureson perpendicularsabove
Use for each item a characteristic mark, (cross,
each of the other dates.
triangle,square),which will enable you to distinguishit from the
circle,
others.
Then unite the marks of each kind by a curved or crooked
line.
Choose
of line (dotted,wavy,
a characteristic form
or
colored) for each
If the chart be made
item.
scale
and
with
sufficient
on
a large
neatness,
later tables of statistics (development of railroads,trade of particular
it.
countries,etc.),can be entered upon
With regard to each one of the items: when was
the increase (measured
the
of
slope the line)greatest? When least? What relation is apparent
by
to

in the increase of different items?

Many

of the

questionssuggestedby

study of the figureswill be treated in later sections.

value
2. Prepare a small chart of the figures,giving the estimated
in the nineof commerce
teenth
1700-1899; note the enormous
gains made
century.
3.
recent

in
printing,especiallyof periodicalpublications,
International or Supplement
[Encyc., preferablythe new

Development
years.

of

to the

Britannica, under Printing,Newspaper, etc. Cf Scribner's Magazine,

1897, vol. 22, p. 447 ff.,on the modern newspaper
business; Taylor
in
in Depew, One hundred
Williams
chap. 26.]
chap. 25,
years,
same,
4. Divide the perpendicularon the right-hand side of your
chart into
indicatingthe shares of the chief countries in commerce.
spaces,
out a list of three changes coming under each one
5. Make
of the three
heads
discussed.
technical
wireless
telegraphy;
Example:
progress,
.

business

6.

international
organization,trusts; political,

Early historyof the coal trade.

[R.

L.

iprocity.
arbitration,rec-

Galloway, The

rise of the

coal trade, Contemporary Review, 1892, 62: 569-578.]

7. Industrial and commercial
importance of coal.

son,
[Edward AtkinCoal is king,Century Magazine, 1897-98, 55: 828-830.]
8. Effect of a stoppage of the coal supply. [Stephen Jeans, The coal
crisisand the paralysisof British industry,Nineteenth
Century, 1893, 34:
791-801.]
9. How

does the increase in steam

in the output of coal?

horse-power compare

with the increase

growth of commerce?
historyof the steam-engine (to about 1700). [Thurston,
chap. 1, sect. 1.]
11. Earliest applications of the steam-engine. [Thurston, chap. 1,
sect. 2.]
With

the

10. Earliest

12.

Development of the engine before Watt.

[Thurston, chap. 2.]

COMMERCE

13.

Development

AND

Watt

by

and

279

COAL

contemporaries. [Thurston,

his

chap. 3.]
improvements.

14. Recent

[Thurston, chap. 6; lies,chap. 5.]

BIBLIOGRAPHY

Bibliographicalaids become

broader

great literature scattered through

value

found, is made
continuations; books in print,if not
will be found
which

in the A. L. A.

suppliesfull titles and

Various

cyclopedias and

in the nineteenth

of

dictionaries

**

and

Statistics

periodicals;the

annual, and will meet

The

student

Hazen,

the

been

lished
pub-

following,in English, may

editions; Waterston,
statistics,
1850; Homans,

brought

are

Statesman's

nineteenth

in various

date

to

up

is an

Year-Book

of teacher and
is often

commerce

century

may

**

class.

the

to

turn

to

tories
general his-

be mentioned
M.

books
year-

indispensable

forced

Among

Europe, N. Y., Holt, 1920; C.

Modern

its

useful repositoriesof information,

Commercial

all ordinarydemands

in the

and

Dictionary, various

of the history of

of Europe

have

commerce

politicalhistories for information.

narrative

D.

**

Index

(American Library Association) Catalogue,

prices.

Cyclopaedia,1847; Macgregor,
Cyclopaedia,1858.

articles of

technical for the general public,

too

century;

McCulloch,

period. The
lasting

recent

accessible by Poole's

they are
especiallyof statistics. Among them
be mentioned:

the

in which
periodicals,

often to be

are

in

Andrews,

Charles
*

Modern

Pol. hist.

Y., Putnam, 1899; Seignobos,

of the century in
written, of course, on the progress
Ure's Dictionary, various editions,
various technical lines.
describes the

Europe;

N.

Much

has been

part of the century; and the student will probably

national)
one
encyclopedias (Britannica,with Supplement; Interof information
recent
the most
on
satisfactorysource
progress.
No
in this or the following chapters to cover
the
be made
attempt can
**
Jevons'
Coal question should,
great field of technical literature.
advances

find

of the first

of the modern

however, be

still of great interest and

value.

Nicolls,
Martin,
Y., Appleton
Story;
1896; or R. Meldola, * Coal and what we get from it,N. Y., Young,
1897 can
C. Eckel, Coal,
be assigned for reading by the class. Edwin
iron and war,
is
a
nd
N. Y., Holt, 1920,
an
suggestive study
interesting
*

mentioned

Edward

as

A.

Story of

piece of

in the physical bases of national industry. On

coal,N.

the steam-engine, Robert

History, N. Y., Appleton, 1902 will probably be found

most
Smiles are a valuable history of
useful. The biographiesby Samuel
recent
technical progress,
books,
interestingand trustworthy. Of more
the
and
for
designed
popular reading, George lies,Flame, electricity
H.

Thurston's

camera,

N.

Y., Doubleday,

features of technical progress.

1900

contains

attractive

accounts

of many

XXIX

CHAPTER
AND

MACHINERY

MANUFACTURES

of

our
vey
suragriculture. Pursuing now
of the technical advances
of the century, we
notice
must
first the oldest and perhaps the most
important branch of

327.

Development

"

production,agriculture.An
to

be told that

introduction
so

better

now

and
and

work

farm

American

has

reader

been

does

not

need

greatlychanged by

the

of

plement
improved tools and machinery. Even an imold and apparently so simple as the plow will do
work with half the force formerlyrequired. Cultivating
harvestingmachines of various kinds spare land

labor.

The

given

to the agriculturist.
efficiency
of
328.
Progress less in agriculturethan in other branches
is^the branch
allTs said,agriculture
when
production. Still,
new

freedom

of artificial fertilizers has

introduction

and

"

of
the
to

which
prooTuction"
The

century.
the

weather.

farmer

Steam

least

affected

has been

is stillbound
power

has

by

to the
not

the

soil

made

changes of
and subject

for

itself the

In
once
place which sanguine men
thought it would win.
quated
antiEurope reforms have been effected in sweeping away
the personalliberty
institutions affecting
and property
in free association,
work
who
can
rightsof cultivators,
now,
far more
other
than
In
continents
the
before.
efficiently
extension
of the modern
transportationsystem has effected a
revolution
in the choice of crops and the means
of marketing
them.
Neither transportation,
steam
nor
machinery,
power,
however, has vitallyaffected the methods by which crops are
grown;

and
and

when
a

the

of
first fertility

new

growing populationclamors
280

land
for

has been
a

cheap

hausted
ex-

food

282

time

and

HISTORY

materials.

importance,inmany
cost

far below

describe

To

Finally,and
lines of work

the

this is the

point of decisive
at
they furnish.ihe__product

labor.

that of hand

Revolution

331.

COMMERCE

OF

in old industries

manifold

effected

"

applicationsof machinery

century, within the limits

nineteenth

by machinery.

of this

in

the

is

manual,

impossible.
Let the reader glance from
the book
to the objects
list of the ten objectswhich
a
surrounding him, and make
first attract
If he will trace
their historyhe
his attention.
will find,in all probability,
that they are all the products of
has been developed from
the
complicated machinery, which
of the century.
He
will
simplest beginnings in the course
in finding a familiar object
probably experience difficulty
which has not been subjectedto machine
in
processes unknown
1800.
tain
Machinery has heightened human
productivityin cerlines
"otton

hundred

or

even

fold.

thousand

Expositionof 1881, two

At

the Atlanta

carders,two

and one
spinners,
from the mountain
region of Georgia,could produce
weaver,
cotton
cloth in a day of ten hours.
The
"ightyards of coarse
of persons
in a modern
number
cotton
same
factory could
produce 800 yards by machinery. The cotton
goods produced
for home
in
the
United
States by 160,000
consumption

laborers

at

that

time,

16,000,000 laborers
woman

can

enables

ones.

80

her to make
Introduction

332.

only

knit

revolutionized
A

have

would

without
stitches

the

of

services

machinery. Again,
minute
by hand; a

skilful

machine

480,000.
of

industries.

new

"

old industries;it has

distinguishedAmerican

opinion,about

required

1890, that

half of

Machinery
created

economist

all those

has

many

not
new

expressed the
who

were

then

earning their livingby industrial pursuitsdid so in occupations

that not only had no existence,but which had not even
I may
write with
been conceived of,a hundred
years before.
a

ever
steel pen, with a fountain
pen, or with a typewriter;whichchoice I make
I am
giving employment to a group of

mechanical

laborers

who

did

not

exist

in

1800.

Taking

AND

MACHINERY

283

MANUFACTURES

of
particularcity as an example, the industrial specialities
Leipzigare said to have increased from 118 in 1751 to 557 in
Nor
must
limit our
view
we
1890, a growth of 372 per cent.
of the effects of machinery to the mechanical
pursuits which
Increased
due to the use
carried on
about us.
are
efficiency
free from
other pursuitsto engage
of machinery has set men

education, domestic

in commerce,

service,etc.

of iron

in

the

when

he

said that

One
machinery.
deserves
here, by
specialconsideration
of the qualityof its product rather than of the quantity
reason
of laborers employed or the mere
exchange value of the output.
Without
iron the modern
be, at best,
age of machinery would
characterized
ern
of stunted growth. Jevons
admirably the mod-

Importance
particularindustry
333.

industrial system
iron

and

power

is the

and

fulcrum

think, to challengethe ordinary

name

The

of iron.

wholly
depends

of
from

our

waited

iron

in the

Great

long for

cost

modern

our

to

almost

industry

"Without

iron.

it

before

as

was

full

1800
in

of material."
the

nineteenth

iron

century.

find ourselves in

we

"

different

well into the nineteenth

realization;

age

turning
Re-

scarce
relatively
A youth
possibleway.

part in the

of

getting cheap

iron remained
in every

present day

improvepreviouschapter the ments

of iron in the eighteenth
manufacture
the promise of these improvements, it

described

effected

century.

and

want

periodabout

I have

world.

safe, I

"

the

to the

of the

It is

composed largelyor

structure

of

lever.

"

Scarcityof

334.

whole

is its motive

steam

the

reader

"

the power-loom, the gas- and

spinning-jenny,
in fact,
iron vessel,the bridge,the railway
would
be ticable
most
impracimportant works

water-pipe,the
one

is not

tjiemeans

on

the engine, the

each

which

machine

of

age

and

dear

destined

(Joseph Nasmvth')

to

and

was

play

visited

the

tury
cen-

spared
leading
Carron

which
he gives
description
of a celebrated foundry and machine
shop, associated with the
construction
of the
first working steam-engine by Watt.
Much
of the machinery continued
to be of wood.
Although
Iron

"

Works

in

1823, and

here is the

284

HISTORY

effective in

monstrously cumbrous.

was

and

power

COMMERCE

It

while
capabilityof resistance,

being so in reality." If this was the condition

Iron Works, what
it have been in ordinary
must

far from

it was

it

generalway

the idea of vast

gave

OF

at the Carron

factories?
335.

Iron

was

tools
Development of machine
little used, partly because
it

for
was

working
hard

to

iron.

get and

hard to work.
There
in England
were
partlybecause it was
about 1800 only three good machine
shops,where small steamthe best machine
built. The equipment of even
engineswere
now
shop would seem
wretchedly inadequate, and Stephenson
was
greatlyhampered, in building his first locomotive, by the
lack
of good machine
William
tools, for working metals.
said in his presidential
address
before the British
Fairbairn

Association

"When

Manchester,

at

the

whole

the

this

city
by

executed
machinery was
hand.
There
neither
were
planing, slotting,nor
shaping
machines; and, with the exception of very imperfectlathes,
and
few drills,
the preparatory operationsof construction
a
effected entirely
About
were
by the hands of the workmen."
for iron1825 to 1830, however, with the growth in demand
working apparatus, there began a rapid development of this
branch of manufacture, one
step in advance leadingrapidlyto

[about 1813]

We

another.

of

first entered

trace

may

the

in the

process

descriptionthat

shop, a shed measuring

Nasmyth gives us of his first machine
thither my
24 by 16 feet. "I removed
to
father's foot-lathe,
I had
which
previouslyadded an excellent slide-rest of my
own
making. I also added a 'slow motion/ which enabled
to

me

turn

Mandsley
Its

lathe.

first child

surfaces
8

cast-iron

inches

in the
wide.

was

most

and

cast-steel

had

soon

the latter

planing machine

perfectstyle;it

Armed

with

these

portions of my
great
complete and in action.
capable of executing

was

two

3 feet
most

long by 1 foot
important and

generallyuseful tools,and by some

specialadditions,such as
had a progeny
boringmachines and drilling
machines, I soon
of

legitimatedescendants

crowded

about

my

little workshop,

so

that

himself

which

know

I often did

not

made

speciallyimportant

one

"

1839; the old

bit

by

"

bit

to

way

turn."

Nasmyth

contribution

of the steam

invention

the

working machinery, by

285

MANUFACTURES

AND

MACHINERY

iron-

to

hammer

system of welding became

in

henceforth

unnecessary.

Steel,character and utility. While the limits of our

of
space will not permit us to trace further the development
machine
tools,which have been made marvelously efficient in
while
also forego a study of the
must
recent
we
years, and
details of iron production, the topic of steel manufacture
consideration.
some
Ordinary cast iron,
certainly deserves
336.

while

by

"

strong and

enough

for many

largeproportionof

of the

reason

hard

stillis brittle

purposes,

carbon

and

other

impurities

in
be burned
out
impuritiesmay
the puddling process, and the nearly pure iron thus obtained,
called malleable or wrought iron,has a toughness enabling it
to

resist far greater strains than

between

carbon, more
be

These

it contains.

which

made

or

even

than

harder

is

temper"
till well

iron.

the

Its

known

steel have

sparingly;it

peculiarproperty

been

century it could

commonly

manufactured

prohibitedthe

process

iron

wrought
more;

and

337.

cost

the

An

the

valuable
but

ages,

used

only

of this

expense

most

the

purposes;

finished steel $250

the

or

to-day inconsiderable.

seem

improvements

in
men

the

associated

manufacture

have

oT'steel to its present

names

The

steel for
and

ton

process/"Many

the manufacture

only

of

use

output would

Recent

the Bessemer

notice

$75

with

be

by first making
of puddling, and
then
charcoal until they had

of carbon.

amount

proper

process

"taking

prized for

nineteenth

was

the

and

known

of

The

readers.

most

to

wrought iron, by the tedious

heating the iron bars in contact
absorbed

mediate
Inter-

irons,and containingone per cent of

less,is still another product,steel,which may
than
tenacious
more
wrought iron, or even

probably

into

stand.

can

the two

cast

propertiesof

iron

cast

with

contributed

and
efficiency,
the

of
to
we

steel;
bring
may

ments.
greatest improve-

Englishman, Bessemer, patented in

1855

the idea,

286

HISTORY

OF

COMMERCE

simple as it is ingenious,of turning cast iron directlyinto

steel by blowing air through it when
melted, and so consuming
as

the

of carbon.

excess

proved possibleto make good

originalidea, but with a slight
been wonderfully successful;in

Bessemer's

according to

steel

It has not

has
his process
present practiceall the carbon

modification

is burned

by

out

the air current,

is added
before the metal is
requisiteamount
of phosphorus is
Ore containinga largeamount
poured out.
lined with lime, which
treated by melting it in a converter
this dangerous impurity ("basic process").
removes
Still
338. .The
open-hearth (Siemens-Martin) process.
and

the

then

"

contribution

another
known

the

as

to

"open-hearth,"or,

the Siemens-Martin
since about
of

combination

from

process,

manufacture,

names

has been

of
from

of iron, and,

kinds

different

the

steel is made

The

1870.

of steel

methods

modern

of its introducers,

tance
great imporore

from

or

by peculiar

economizing the heat of the furnace, the process

be continued
so
long and regulatedso carefullythat a
may
product of high qualitymay be turned out at a moderate cost.
for

devices

The
a

result of all these

luxury

40

per

tied in

to

necessityof

knot

or

punched

has been

iron, and
in the

change steel

to

life. Modern

modern

stronger than

cent
a

processes

is

shape

mild

steel is

tough enough

of

bowl

from

to

when

be

cold.

for iron in
efficiencydue to its substitution
machinery, railroads,ships,and structural work is simply

The

increase

in

incalculable.
339.

Development

at
detailing

in the

such

of the

lengthas

of

I have

done

chemical

the

industry. In
of machinists
exploits

tempt the reader to undervalue

scientists. To guard against that error

past century, I may

contributions

modern

"

the
let

brieflythe development of the chemical industry,

which, like the iron industry,renders a service to modern
of dollars and
The
civilization beyond any
cents.
measure
Frenchman, Lavoisier,had established chemistry on a scientific
basis before 1800, but industrial chemistry used stillthe primitive
had
been employed for ages.
Let us
methods
which
us

consider

287

MANUFACTURES

AND

MACHINERY

of

take, for instance,the singlesubstance, carbonate

prime importance in industrial chemistry,for on
the

industries

various

of

soda, of

it

depend

photography,
in the eightstill obtained
This substance
etc.
was
eenth
paper,
and
seashore
seaweed
plants and
century, by burning
treatingtheir ashes; Spain had a considerable export of barilla,
she attained in the
and owed to this product whatever
success
manufacture.
Leblanc
emancipated the soda industry
soap
from
kelp and barilla,by introducing the process based on
sulphuricacid and salt;step by step improvements have been
dustry,
made
since then.
Sulphuric acid, discarded in the soda inhas grown
in importance notwithstanding;it is the
of other acids,commerelement in the manufacture
cial
controlling
fertilizers,
alum, ether, glucose,etc., and in oil refining;
and it is produced at a priceand of a qualityformerlyunknown.
The discoveryof the anilin colors,in 1859, has revolutionized
the art of dyeing. The chemist
will make you, from coal tar,
almost
or

he

color

any

flavors;and,
has

such

least

at

or

shade

desired.

He

will make

if he has failed to construct

learned, in

antipyrin and

as

glass,pottery, soap,

his

perfumes

you

quinine artificially,
to

attempts,

substances

make

phenacetin,of equal

value

for other

purposes.
Influences

340.

determining the

local distribution

of

factures.
manu-

chapter,with its
have built up modern
discussion of the factors which
industry,
should suggest to the reader the countries which
have enjoyed
exceptionaladvantages in the modern
manufacturing period.
of coal and
Resources
of great importance.
are
iron, clearly,
That they are not decisive,however, is proved by the absence
A

"

of the contents

review

of modern

manufactures

suppliesof

coal and

the North

of

industry is
exist at

they
raw

are

in

China, where

iron, and

Ireland,where,

for

iron

considerable

distance

from

materials

and

abundant

are

in districts like

instance,a great ship-building

imported

by

there

their presence

fed with

served

of this

and

coal.

their

source

Factories
of

can

supply if

transportationsystem which will fetch

finished products cheaply; efficient
carry
a

288

OF

HISTORY

essential.

transportationis

COMMERCE

other

Many

elements

might

be

in
suggested as going to form the basis of national success
manufactures, but of them all I desire here to emphasize only
and
two:
Manufactures
men.
good government
intelligent

country where

unwise

or

rob the investor of his

gains.

Nor

thrive in

cannot

of taxation

whatever

other

to

The

will have

reader

the truth

test

attention

can

of these

opportunity,in

an

statements;

they prosper,
if it lacks

be directed to the

may

Germany, as those countries which

proved their fitness for manufacturing.

Development of the science and

century. [Encyclopedia.]
1.

later

chapters,

have

most

signally

TOPICS

AND

QUESTIONS

energetic

meanwhile, in anticipation,
United States,England,

and

2.

corrupt methods

have,
advantages a country may
and
steady laborers,or clear-sighted

and
intelligent

leaders.

art of

Artificial fertilizers. [Peacock, in

in the nineteenth
agriculture

Cosmopolitan Magazine, Nov.,

1895.]
3.

modern

wheat

531

ff.;Edgar, Story

are

not

typicalof

modern

4.

What

is coal

without

use

farm.

of

[Scribner'sMagazine, 1897, vol. 22,

grain of wheat.

Note

in general.]
agriculture
without
a steam-engine?

steam-engine?

What

use

is

that "bonanza"

What

use

steam-engine

p.

farms

is machinery

without

coal

or

would
Which
the world give up most
machinery?
readily,coal,steamengine,or machinery ?
5. Character
and
advantages of machinery. [Hobson, Mod.
cap.,
sects.
3,
chap.
1-3.]
6. How
much
have women
gained by being relieved of the necessity
of making cloth for family use?
of the labor of spin[Read description
ning,
Colonial
dames
in
Alice
M.
colonial
times; see
Earle,
weaving, etc.,
and
and
G.
or
1895,
Boston,
Fisher,
Men, women
Syndey
goodwives,
in colonial

manners

7.

Effect of the

times. Philadelphia,1898.]
introduction

of

machinery

in different

on

the

demand

for labor

occupations. [Hobson, Mod. cap., chap. 8.]

8. The growth of factories. [Bourne, Romance, chap. 9.]
9. Organizationof a modern
factory. [P. G. Hubert, The business of
factory,Scribner's Magazine, 1897, vol. 21, p. 306 ff; Fred J. Miller,

The

machinist, same,

1893, vol. 14,

p. 314

ff.]

XXX

CHAPTER
ROADS

importance of the subjectsof the chapter.

the
all inventions, the alphabet and
printing-press
Commercial

341.
"

Of

"

RAILROADS

AND

alone

excepted,those

done

most

which

civilization of

for the

celebrated

inventions

our

civilization in general. With

appliesto

sentence

abridge distance have

species." Macaulay's

regard to the material civilization depending upon commerce,

provemen
certainlyno factor has been of greater importance than imin the means
of transportation
and communication.
has been effected during the
An improvement in these means
in the world's history;
scripti
and a depast century, without a parallel
of
of the changes deserves
the most
careful attention
be allowed the subject.
the student in the short space which can
of reference

means

For a convenient
development.
introduce,in this place,a statistical table

Statistical survey

342.

of

(on oppositepage) showing

modern

instruments

of

the stretches of canal which

universal

of

means

the road.

Some

to the condition

and

to

the

French

roads

century, and

close,when
labor

was

the

of roads.

"

Aside

from

been

the
brought into operation,
1800
was
transportation about

English highways

Continent

for

portant
development of the most imand communication.
transportation

reference has been

of

were

had

inland

improvements

the

on

the

in the condition

Jmprovement

343.

"

made

an

earlier

chapter

in the

marked

which

in

than

eighteenthcentury,
that period. Conditions
those

in

England.
tracks in the first part of the eighteenth
mere
the most
stillhopelessly
bad at its
part were
system of maintaining the roads by forced
were

worse

abolished.
290

ROADS

From
we

may

the

near

date

in the roads

close of the

beginning of

the

of western

291

RAILROADS

AND

eighteenthcentury, however,
period of rapid improvement

The

Europe.

the

turnpike system, which

of

improved highways,
of capitalin these undertakings.
encouraged the investment
The teachingsof Telford and Macadam, two great road-engineers
the
of
who
necessity using good materials
emphasized
and securing proper
drainage,were
generallyapplied. In the
allowed

tolls to be

period from

to meet

1800

charged for

to

the demands

use

the roads

1850

which

made

commerce

the introduction

of the railroad,and

condition

attracts

which

of Europe

the

were

attention

upon

were

reformed

them,

before

put in the excellent

of American

travelers

reduced
to
freighttransportationwas
half or less of what it had been, and the speed of passenger
service increased
correspondingly. An Englishman, Porter,
notes
that in 1798
he occupied nineteen
hours in traveling
considered
"fast coach"; when
a
eighty miles by what was

to-day.

The

cost

of

he wrote, in 1838, the trip was

344. Importance

of

roads

made
in

the

in eight hours.

present transportation

292

system.

leave this

many

within

were

warning
study more

years

twentieth

one

in the most

OF

of

subjectto

Not
not

word

"

HISTORY

ago

of the

less than

advanced

COMMERCE

be

may

advisable

recent

French

economist

settlements

of the

day's distance from

countries

of

means

the extent

before

tion.
transporta-

estimated
inhabited

we

world

railroad.

of roads

that

Even

far exceeds

do products
only in the rarest cases
without having traversed a stretch of comreach the consumer
mon
road.
The road, therefore,takes a place in our
modern
more
we
important than,in our carelessness,
generally
economy
that

of

railroads,and

admit.
unit for

is the
measuring the expense of transportation
railroad
moving a ton one mile; on a modern American

The
cost of

the average
cost of a ton-mile is less than one
cent.
the excellent roads of Europe the cost is ten cents
while

it has

been

estimated

farm

Even
or

are

carried

nine hundred
expenses

in

million

year,

more;

that

the average
cost of moving
roads of the United
the common

produce to market over

States is twenty-five cents per ton-mile.
Assuming
haul is twelve miles, and that three hundred
average

tons

on

the

dollars,a

expense
sum

reaches

the

million

the

greater than

of all the railroads of the United

that

total of

the operating

States before 1900.

It has been

force which
proved by actual test that the same
draws one
earth road will draw four tons on
ton on a muddy
macadam
road.
One of the greatest improvements in
a hard
in large part, neglectedby the American
transportationis still,
people; and intelligent
energy will find in no field richer results
than
would
and

in the

reform

economize

time

of

our

and

common

force,would

roads.
reduce

Such
wear

reform

and

would

tear,

greatlybetter the business positionof the farmer

time for marketing his goods
by enablinghim to choose his own
and making his purchases.
The
_345. Advantage of transportationby water; canals.
student may,
that in the Middle "Ages the
perhaps, remember
of transportationby road led people to choose rivers
expense
for conveying their goods, whenever
this was
practicable.It
"

AND

ROADS

two

three

or

the

from
the

from

canals.

for

Locks,

Ibs.)could with
highway, or 1,200

110

on

enormous

flow and

the
controlling
the

toward

end

of canalg had

extent

before

had

none

invented

were

of

early times

where

water

centner

level of the water,

Middle

of the

Ages,

constructed

been

England.

period which

be limited

may

roughly by

and

siderable
con-

the Continent

on

Bridgewater canal, described above, was

The
real era
of the canal, however,

the

its back

on

carry

ing
resultgain in efficiency,
of the slightest
difference in level and
in friction,
force wasted
suggested to
for
the idea of establishingchannels
previouslyexisted,that is,of building

avoidance

reduction

in

people

This

could

is about

centner

drag twenty

dead-water.

through

horse which

(a

centner

exertion

equal

that

estimated

has been

293

RAILROADS

opened
in

was

the dates

in

the
and

1750

1850.

of

amounts

their

lines which
now,

through
by

county of Durham

was

materials

now

along

largepart
which

passenger

period of

and

parts of central and

with

than

more

no

for water

spot south

fifteen miles

the

from

Canals

relieved

carried
growing traffic,

have

enjoyed

borne
even

considerable

munication,
com-

of the
means

many

of

the expense
a

like

along the
the highways

established

were

railroads.

of the

that

eastern

country

advantages

Factories
the

Of

canal-boat.

be said in 1838

could not

by road,

nature

conveyance.

of

in this

the

most

leaving

it could

canals,as

Immense

"

American
European and
constructed substantiallyon the
barge canals were
A traveler could then,
they have since retained.

voyage

water

in canals

invested

capitalwere

Europe without
England, endowed

of

canals, 1750-1850.

great importance; and

systems of
as

of

Development

346.

raw

tation
transporshare

of

traffic.

Of canals
importance of canals.
of roads it may
be said that their days of usefulness are far
as
from
past. One class,indeed, that of the great ship canals,
has grown
Many
rapidly in importance in recent
years.
economists
the barge canals should be mainbelieve that even
347.

Relative

decline

in

"

ROADS

AND

improved. There is still an

in Germany, and in
Europe, especially
notable
project for extending the
a
tained

on

active canal traffic in

and

consideration.

The

of

introduction

the

of canals

future

295

RAILROADS

the last-named
canal

is under

system

depend largely
motor
(electricity,
to

seems

forms

improved

country

of

gasoline).
yieldedthe placeof first importance
Its great merit,
in internal transportationto the railroad.
of
cheapness, has declined in importance with the reduction
canal has certainly

The

rates, while

railroad
under

only

conditions

the
much

slower

vital weakness
is

its drawbacks
of

and

is the

uncertain

fact that

destroyed during

felt

business.

modern

more

are

in

at least

and

more

canal

The

than

temperate

the

more

is not

railroad;its
its

climates

part of the winter.

fulness
use-

Since

slowly,if at all,and in some

countries
greatly. Nearly half of the
they have declined
controlled by the railroads;some
are
English canals are now
and traffic is diverted from others by
closed and out of repair,
heavy tolls.
railroad.
Soon after 1800 the
the steam
348. JMginof
1850

canal

systems have

grown

"

American

could

inventor, Evans,

manage

to

drive

asserted
on

wagons

expressed an idea that was

then floatingin the minds

by

no

of many

more

than

once

railways by
means

new,

men.

He

steam.

and

said

that

that

he
He
was

ever,
truly,how-

generationis enough, and that the

monstrous
railways could not
leap from bad roads to steam
be taken at once.
Roads
were
improved, canals were extended,
of transportation.
for better means
and stillthere was
a demand
and then of iron, had long been laid to
Rails, first of wood
and
enable
heavier loads at mines
horses to draw
quarries.
ing
others,conceived the idea of applyGeorge Stephenson, among
and
guished
distinthese railways,
the motive
steam
as
on
power
himself above
all predecessors
by constructing,in 1814,
ing
a
locomotive, Puffing Billy, which proved capable of haulto
the mine
coal
stretch of nine
over
a
miles, from
tide-water.
Stephenson improved his original model, esthat

one

step in

and

draft

so

the

increase

COMMERCE

of the

introduction

the

peciallyby

OF

HISTORY

296

blast to

steam

of the

power

help tha

boiler;and

in

1825

the Stockton
and
on
adoption of the locomotive
The call for this improvement
Darlington Railway in Yorkshire.
become
had now
pressing. The port of Liverpool and
the important manufacturing center, Manchester, distant only
connected
about thirty miles, were
now
by three canals, yet
the

secured

these

were

month

for cotton

opening
with
an

of

with

crowded

so

reach

to

factories from

the

Liverpool and

the

it took

traffic that

Manchester

sometimes
the

The

sea.

in 1830,

Railway

locomotive, the Rocket,which made twenty-nine miles

be taken
the completion of the period of
as
hour, may
a

beginningof

the

"experiment,and

of

Early period

349.

after

1830

was

rapidlyextended, and
operationin 1835, the men

expected from it a speed of 75

-State Engineer of Virginiatook
of

rate

speed of

bounds

of

than

more

it

miles

as

to learn

six miles

an

by prudence, though some

railwaysextend this limit to

hour

fact

would

of the
nine

men

hour, while the

an

admitted

an

set

of

stillmuch

transportation.Some

100

or

era.

motion
locoThough steam
and though railroads
had been brought into
had

of the time

instrument

new

"

success,

1,600 miles

were

concerning their

raikoad

railroad.

the

proved

the

"

that

the

exceed

cates
sanguine advo-

miles

hour."

an

In

localities the steam

railroad,from the start, performed

great service in freightcarriage. At the Pennsylvania coal
mines, for instance,it reduced the cost of hauling a ton nine
certain

miles to the river from

high;a charge

was

$4.00 to $.25.

of ten

Still the cost

per ton-mile
people believed

cents

general

authorized

was

that

in

some

early charters;and

could

with the canal in the transportation

compete successfully

of

in

Improvements
which

beyond

have

the dreams

simple.
.cars

the railroad

ordinaryfreight.
350.

far

few

in

has been

locomotives.

extended

increase

the greatest factor

The

technical

the usefulness

of its earlier

Mere

"

of the railroad

promoters have

been

in size of locomotives
in increased

provement
im-

paratively
com-

and

efficiency.The

298

12-ton

to

cars

train, and

furnished

30; each improvement

carry

reduction

the dead

weight

in

Steel

bridges over

of 500

span

feet,with

of 250

span

for the

to

saving in

consequent

material

COMMERCE

14-ton

or

represents

carried,enablinga
as

20,

carry

of this kind
the

OF

HISTORY

cost.

which

the

feet to be constructed

the

iron

cars

of

has
are

readily
formerlyemployed.
as

GROWTH
OF

THE

EUROPEAN
KAIX.ROADS

BORHAY

The

size of the small

intervals.

year

and

those

352.

circles indicates

To

for 1890

are

shaded.

Development

railroad

in

the

of

Note

the

mileage

of each

the circles for 1850

are

country

printed

the disproportion of mileage and

railroad

system

after

CO.

at

ten

black,

area.

1850.

"

construction,the equipment, and the

railroads,for the mere
suggestion of which there

Improvements
operation of

the

facilitate comparison,

ENS.

ROADS

is

299

RAILROADS

AND

of the railroad

scarcelyspace here, explainthe rapid growth

but

middle

the

the

of

of the

opening
of

cent

per

that

beginning in

mere

99

over

1840, and

since

constructed

the

figuresat

that

noted

It will be

made

in the

shown

system

mileage has

in 1850

even

chapter.

the

world

railroad construction.

century began

been

About

toward

movement

had

the

which had formerlybeen operated

lines,
existing
student
in short stretches by independent companies. The
that this consolidation
should note
proceeded largelyalong
fashion by the union
the length of railroads,
not in the modern
of parallel
and competing lines;and it is almost
impossibleto
of
exaggerate the benefits that resulted,in increased efficiency
About
this
improved service,and lower rates.
management,
built across
the Alps; the
time
(1854) the first railroad was
Union
and Central Pacific route was
opened in 1869, beginning

consolidation of

the

of the transcontinental

era

who

into

out

the

found

and

older

investors and

roads; and
more

sections

advanced

suppliedwith railroads,began now

to open
new
territory,
up fresh land

build

to

and

neers,
engiquately
ade-

lines fa*

develop new

trade.
353.

will be

railroads

Importance of
paid hereafter

railroad has

exercised

the

to

on

at

recent

present.
"

attention

Some

which

influence

decisive

the

development; and

commercial

countries the thoughtful

particular
when
student will not fail to recognizethis influence even
In leaving the subject at
it is not specifically
pointed out.
be gratefulfor a sumthis point,however, the student
mary
may
estimate
of the relative importance of railroads and
modern
life. A good
of production in our
other instruments
third of
one
authorityhas estimated that one quarter or even
the total invested capitalof civilized nations
has taken the
in the

form

historyof

of railroads.

establishments
while

the

world's

thousand

It is doubtful

of the world

fraction of them.
1900

in

commerce

whole
The

million

are

stock

whether

equal in
of

the

value

would

money

railroads of the United

tons

of freight at

manufacturing
to its railroads;

buy

States

cost

of

but

carried in

thousand

300

HISTORY

million dollars,and
a

cent

country, and

could

in the

to

attempt

it

carry

that

the

figures,

individual
work

they

in

do

1. See the

suggestionon

on.

AND

QUESTIONS

TOPICS

the treatment

the statistics of the sections 315

below,

See

to

of the
and

statistics in sect. 315.

in

342

one

chart, if practicable.

354, for the

sect.

is estimated

steamer

average

these

in use a century ago,

accomplishedby the means
whole annual product of the country were
dered
squan-

if the

Combine

from

may,

assured

rest

may

three quarters of

be

not

even

student

The

the service of railroads to the

estimate

the

COMMERCE

the rate of less than

at

ton-mile.

per

OF

a
explanation of carrying power;
four times the efficiency
of a sailingvessel,

have

in this table.
What

2.

What

may

Write

Office

an

essay

of Road

probably be
(a) The

one

and

secured

maintenance

of the

Inquiry, U.

S.

of

is

in your

vicinity?

pursued?

followingtopics,from the circulars of

Department of Agriculture. (Copies

application.)

gratison

method

proper

no.
[Circular

on

roads

transportationover

of construction

system
3.

the

of

is the cost

constructingand

repairingearth

roads-

8.]

roads.
(6) Methods of constructingmacadamized
[No. 21.]
of
macadamized
roads.
(c) Repair
[No. 30.]
(d The best system of maintaining roads.
[No. 24.]
(e) Systems of State aid. [No. 32, Minn.; No. 35, N. Y.]
4.

Effect

the

on

of
agriculture

of the U. S. Industrial
5.

The

place

of

the

Commission,

canals

in the

S. of the present roads.

U.

port
[Re-

1900, vol. 10, pp.

ccix-ccxvi.]
transportationsystem of a modern

[O. Eltzbacher, The lesson of the German

European state.
water-ways,
86:
Contemporary Review, Dec., 1904,
778-797.]
6. Early history of the railroad.
[See a biography of Stephenson,
by Smiles,or in one of the encyclopediasor biographical
dictionaries.]
7. Early locomotives.
[Thurston, Hist.,chap. 4.]
and
8. American
way,
cars.
improvements in locomotives
[Amer. Railp.

9.
10.

100 ff.]

Improvements
Feats

of

in railroad

railroad

construction.

construction.

[Same, p. 1 ff.]
[Same, p. 47 ff.;Vernon-Har-

court, chap. 2.]

bridges. [Vernon-Harcourt, chaps. 6, 7.]

11.

Modem

12.

Modern

Railway,

149

railroad

ff.]

management

in

the

United

States.

[Amer

AND

ROADS

pp.

railroad

of

Development

13.

301

RAILROADS

its

and

organization

effects.

[Same,

344-359.]

BIBLIOGRAPHY

article

good
Review,

engineers,
Harris,
the

For

the

probably
Jeans,

E.

Water-ways;

transportation.
along
articles
matter

with

All
economic

contributed

of

value

the

E.

burgh
Edin-

Lives

of

the

Stanley
book

Tristram's

**

interest

Railways;

A.

historical
The

authors

various
to

the

books

many

James,

include

these

on.

student

following
railway;

the

Hadley,

of

S.

matter,

made

Magazine,

history

will
J.

Railroad

descriptive
Railway,

Scribner's
of

T.

lies,,

and

the
and

and

American
to

Bowker

see

Canal

J.
*

Johnson,

criticism.

by
and

R.

of

or

the

railroad,

the

O.

railroads

and

Among

serviceable:

most

1882,

canals

of

Dictionary.

be

Smiles'

before
W.

in

found

1893.

bibliography

Palgrave's

be

also

See

England

London,

days,
London,

ff.

340

p.

in

conditions

coaching
subject,

same

and

for

119,

will

highways

of

history

vol.

1864,

and,
Old

the

on

up

has

commerce.

much

of

CHAPTER
MEANS

XXXI
AND

NAVIGATION

OF

COMMUNICATION

and

Transportation by sailingvessels

354.

steamers.

"

in the course
of the century, the
itself,
commanding place in sea transportationas well as in land
transportation. The
struggle with competitors has lasted
gation,
longer and the victoryhas been less complete. Steam navihowever, offers such advantages in sureness, safety,
speed, and cost, that sailingvessels have been forced out of
of the most
and must
some
important branches of commerce,

Steam

content

has

for

won

themselves
to

the

with

table at

will enable the student

what
the

the steamers

opening

to follow the

of

leave them.

erence
Ref-

of the

precedingchapter
development of the means

transportationby sea in the course

observe the growth in importance of

of the
the

century, and

steamer.

In

to

nation
expla-

figuresof carrying-powerit should be said that

is regarded as having three or four times the efficiency
a steamer
of a sailingvessel of equal tonnage; such an
estimate is,of
a
mere
approximation, and, indeed, the figuresof
course,
tonnage, especiallyin the earlier part of the century, are
of the

themselves

very

uncertain.

Development of sailing vessels.

European sailing
vessels at the opening of the century followed substantially
the clumsy lines of the old East Indiamen.
The chief credit
for the improvement of wooden
vessels is due to the Americans,
whose clipperships,marvels
without
of grace and speed,were
rivals in their day. The
the
clipper Dreadnought made
from New
York to Queenstown in less than ten days,
passage
and
in 1846
the American
Tornado, startingfrom England
with an
of the Cunard
early steamer
line,reached America
356.

"

302

MEANS

before

OF

her.

was
clipper,
the world;

The
of

Great

3,400

Republic,

tons

and

was

303

COMMUNICATION

AND

NAVIGATION

an

American

four-masted

the largestsailingvessel in

sand
ships of this periodrarelyexceeded a thoutons in register.
The
met
at first
suggestionof iron for buildingships was
with
ridicule;some
people, of course, thought that an iron
serious objections
found
were
ship would surelysink,and more
in the cost, the derangement of the compass,
and the fouling
of the ship'sbottom.
Iron, however, came
graduallyinto use
for steamers, and, after 1850, was
and
more
applied more
generallyto the constructions of sailingvessels. Iron vessels
were
actuallysuperior in buoyancy to wooden, drawing less
and
water
with a given tonnage; they
carrying more
cargo
were
cheaper in the long run, because they are stronger, more
durable,and less exposed to destruction by fire. Furthermore,
iron was
to be
absolutelyessential if the size of ships was
increased.
of wyooden
limited by the
Builders
ships were
height of trees, and, in spiteof all devices,could not
average
construct
frame
a
strong for a vessel exceeding
sufficiently
about 300 feet in length. The size of an iron or steel ship is
of metal
The cost of ships constructed
practicallyunlimited.
British

has decreased

with

advances

in the

of iron

manufacture

and

for the
have
been found
steel;remedies, fairlysatisfactory,
and
derangement of the compass;
though it has been found
ing
to apply copper
impracticable
sheathingto steel ships,the foulof the bottom
is an evil of minor importance.
Relative
of sailing vessels,notwithstanding
decline
356.
improvements.
During the second half of the nineteenth
"

century the wooden

giving place
steel.

The

will appear

to

ship graduallydisappearedfrom

vessels constructed

country which

later,was

the

suffered

United

prepared to profitby it was

rapidlyenlarged the dimensions
their rig and
of
model.
Some
5,000 tons of cargo, or even
more.

the

first of iron and

most

from

the

seas,

then

of

change, as

States; the country best

England. The English now
of their ships,and improved
steel ships carry
the modern
A study of winds prevailing

304

on

HISTORY

the

ocean,

which

to

OF

an

COMMERCE

American

officer,
Maury, made
sailingvessels to choose a

enabled
important contributions,
course
which, on many
routes, shortened

the

third

voyage

or

and

Steam

more.

has been

the

duration

of the

applied for handling

managing the rudder and sails.

In spiteof all improvements the sailingvessel has not been
able to keep its share of sea-borne commerce.
So much
pends
debusiness that the merchant
will
on
certaintyin modern
gladly pay a higher freightrate to be relieved of the element of
to attend
uncertainty which is bound
navigation by sails.
Steamers
exceed the sailingvessels of the world not only
now
in tonnage, and still more
in effective carrying capacity,but
even

cargo,

in number

for

also,if only vessels

of 100

tons

and

above

are

counted.
357.
American

Steamers

used

inventors

for internal
at firstchiefly

made

"

of steam

navigation
after 1800; a brief notice of their work will be given
soon
later. The
steamer
used at first,however, chiefly for
was
internal navigationand for short coastingvoyages.
of
It was
immense
importance in furtheringthe development of the
made
a place for
MississippiValley in America; and it soon
itself on the European rivers. About
1840 there was
a rapid
rivers,
development of steam
transportation on the German
and this has not
ceased to grow
in volume
and efficiency.
Chains have been laid alongsome
of the river beds; on the Elbe,
for instance,a chain extends all the way
across
Germany and
enabled
into Bohemia; and by this means
steamboats
even
are
The
to haul their barges up-stream against a strong current.
of
to ocean
applicationof steam
navigation did not become
great importance until about the middle of the century. At
that time only one
fifth of the steam
tonnage entering British
from foreignports; the rest was
ports came
employed stillin
the coasting trade.
The
358. Beginnings of steam
navigationof the Atlantic.
credit for the first passage
has
the Atlantic by steam
across
often been ascribed to the American
ship Savannah, which
a

practicalsuccess

navigation.

"

306

the

In
have

second

added

Early

steamers

such

low

log-book of

the

in

of
efficiency

to the

under

ran

find recorded

century various

half of the

still more

COMMERCE

OF

HISTORY

steam-pipe,lapped it with
Higher pressures

steam

and

steamer.

ocean

that

pressure

"Broke

one,

canvas

the

improvements

the

we

larboard
and

rope-yarn

ceeded"!
pro-

introduced,and after about

1870 the steam
was
more
fullyutilized by compound engines,
four sets of cylinders.The
of which some
have three or even
introduction
of twin screws, first applied to the City of New
York (1889),has added rather to the safetythan the speed of
a
by permittingfurther development of the system
passage,
of water-tightcompartments.
360.

were

in size.

resultingfrom increase

Gains

Another

"

most

has
important factor in the development of efficient steamers
been mere
varies as
growth in size. A ship'scarryingpower
the cube of her dimensions, while the resistance offered by the
increases only a little faster than the square
of her
water
dimensions.
less coal per ton
consume
Large ships,therefore,
of cargo,

and

coal more
engines consume
than small ones, there is a double gain. Here again,
efficiently
in the case
the introduction of cheap steel has
of railroads,
as
been of immense
importance, and may
fairlybe said to have
as

revolutionized
1880

large boilers and

the

nine tenths

of

art

of British steamers

iron,the proportionhad
and

the employment

steel

are

express

constructed
steamers

sunk

in 1890

of steel is
the

were

steamer

stillconstructed

of

almost

now

Empire

one

twentieth,

universal.

great cargo-carriersand

of the modern

British

in

1875.

to less than

oceanic

service.

of the progress that has been made

In 1841
with earlier conditions.
of the

While

since
ship-building

was

(Leviathan,Majestic)

can

the

Some

fast

tion
concep-

be got by

parison
com-

the total steam

188,000; nowadays
has

From

tonnage

in

nage
ton-

single
of

excess

mated
estiin 1841 was
50,000. The horse-power of British steamers
at 75,000; nowadays a singlesteamer, has an indicated

horse-poweralmost equalto
express

steamer

that total.

(Teutonic)were

The

boilers of

requiredto evaporate

modern
120

tons

of water
it

hour),yet

every

said of

was

AND

NAVIGATION

OF

MEANS

steamer

would

sheet of paper

some

move

writer

competent

could

before,a

twenty years

years
ton

Resulting decline

361.

thoroughlyis the

so

in

heat utilized that

that the

ago

this

Even

"

in 1884

interestingstatement:

of 3,000 tons

steamer

burning of

mile.

freightrates.

make

307

COMMUNICATION

had

to allow

for

given voyage 2,200 tons, and must

confine the cargo to the remaining space;
at the date when
he wrote the great improvements had reversed the proportions,
needed for motive power
and 2,200
that only 800 tons were
so
coal and

machinery

on

would
Manifestlysteamship owners
be enabled by a change of this character to lower greatlythe
charges for transportation,and freightrates have, in fact,
of the century.
declined steadilyin the course
Lancashire
were

devoted

to

cargo.

spinners could transport their

cotton

raw

from

the

source

of

supply in America at one sixteenth the cost which they had

Even
in the last quarter of the
to bear sixtyyears before.
freightrates dropped to one half, one third,
century ocean
in 1874.
or
even
one
fourth, of the figuresprevailing
Conditions such as have been thus briefly
suggestedexplain
the immense
increase in sea-borne traffic during the century.
For the carriageof that traffic the merchant
has now
at his
disposalnot only the sailingship and the "tramp," the generalutilitysteamer, but also a multitude of specialboats for special
for transportingliquidscheaply,
services: the tank-steamer
the cattle steamer
for live stock,and the steamer
with refrigerators
meat, the fruit steamer, etc.

for dead
as

fuel and

the introduction

type promise
362.

of explosion motors

use

of oil

of the Diesel

to raise stillhigherthe

Modern

of the

The

of transportation.
efficiency
This survey
of the developship canals.
ment
of navigation may
fitlybe closed by a
"

means

brief consideration

of the modern

were

of

growth

There

their

tribution
con-

1900, a round
dozen
of these canals, capable of receivingsea-going ships.
Some, serving special ports (Amsterdam, Manchester, etc.)
to the

of trade.

ship canals and

purely local importance.

were,

Others

in

have

disappointed

308

of Corinth

isthmus

COMMERCE

their promoters.

expectationsof

the

OF

HISTORY

has been

The

distinct

canal

and
failure,

the

across

the Kaiser

Canal, between the North and Baltic seas, has not

which its projectorspromyet acquiredthe share of commerce
ised
aside
the
St.
for it. Leaving
Mary's canal in America
there was
ship canal which had proved its
up to 1914 but one
commanding importance, namely the Suez Canal.
Wilhelm

of the world

map

by

nature

men

to

almost

as

shows

two

though

with

the

and

continents

seas, but

miles in the routes

of trade.

through

runs

sand, with

The

American

above

parts actuallybelow
scheme

50

or

almost

the Suez

entirely of

with

able
consider-

sea.

Suez

said in the first chapter,had

useless in the Middle

between
is said to have

Europe and the

been

been

made

of Christ,and

East

increased

of Suez,

practicable

had

been
as

dered
renmerce
com-

in volume.

by Napoleon I among
accomplishment belongs to

entertained

credit for its

The

"

certain to rise

Ages, was

of

presents

canal,but

60 feet and

the level of the

for small vessels before the time

the

isthmus

Canal, and its services to commerce.

the isthmus
of reopening the route
across
The

which, as

but

of

thousands

saves

district composed

elevation

no

and

great oceans,

great difficultiesto the construction

363.

design of stimulating

pierce them, the isthmus of Suez and the isthmus of

A canal at either point unites not countries or small

Panama.

route

stripsof land left

narrow

It

others,
a

French

than
Lesseps. After more
engineerand promoter, Ferdinand
work was
ten years spent in preparation,
finally
begun in 1860,
and the canal was
ready for use in 1869.
be gaged, from the
The
of the Suez Canal
success
may
investor's standpoint,by the fact that dividends
20

per

cent, from

the

publicstandpoint by

have

risen to

the fact that the

by the canal in 1891 exceeded ten million,

and in generalhas been roughly
in 1907 exceeded twenty million,
equal to the tonnage enteringand leaving any one of the great
tonnage accomodated

seaports of the world.

has

been

shortened

The

by

duration
a

of the

third,and

more

voyage

than

to

dia
In-

half of

MEANS

OF

NAVIGATION

AND

309

COMMUNICATION

through the canal

the Cape of Good
rather than around
Hope. The canal has
been an important influence in furtheringthe growth of the
barred to sailing
world's steam
tonnage, for it is practically
vessels by the difficulties of navigation in the Red
Sea; no
It
sea-goingsailingvessel has passed through it for years.
of bulky wares
has made
formerly
possiblethe movement
of transportation:
excluded from the trade with the East by the expense
ever,
rice,wheat, petroleum,and coal. It has not, howproduced one result which was
expected,the diversion
of trade to the countries of southern
Europe, as in the time
around
the Cape had
been
before the passage
discovered,.
Three quarters, in tonnage, of the ships using the canal have
been British,and ships from the countries of northern Europe
the

voyages

make

up

364.

America

most
The

the

the

to

East

are

now

made

of the remainder.
Panama

success

Canal.
which

"

he had

Lesseps could
attained

not

at Suez.

match
A

in

French

in 1881,
promoted by him started work at Panama
but became
much
bankrupt before it had made
progress.
Mismanagement at home, disease on the isthmus, above all
the tremendous
difficultieswhich nature has placed in the way
of a canal at sea level,contributed to this result. The United
States took up as a national enterprisea work
which
now
offered but littleattraction to private capital,
bought out the
and in 1904
French
made
arrangements to begin
company,
operations. Taught by the experience of the past the government
decided on
canal
with locks, reaching an
altitude of
a
85 feet above sea level,
and took the precautionssuggestedby
sanitaryscience to protect the laborers against the menaces
of plague,yellow fever and malaria.
Under
engineers
army
the work
carried on
to a successful conclusion,
and the
was
canal was
The cost of construction
opened to traffic in August, 1914.
about $350,000,000.
was
In the firstyear of its operation the Panama
Canal accomodated about five million tons of shipping; in the year ending in
1920 the figure had risen to about ten.
The
dislocation of
company

310

traffic caused

by
traffic slow

HISTORY

the

by

OF

European

COMMERCE

and

War,

casioned
interruptionsoc-

earthslides in the Gaillard cut, made

and

the growth of

irregular.Figures for the traffic

of the Suez Canal given in the precedingsection show that the
the American
isthmus could not rival in its early
canal across
of its older competitorfor the world's trade.
years the position
Even
more
impressive is a comparison with the figuresof
traffic through the Sault Ste. Marie
canals,on the northern
border

somewhat

of the United

tonnage by the lake

cargo

that carried through the

eight-fold
isthmus.
The
Panama
Canal, to 1920, had just about paid
the expense
of operationand maintenance.
There seems
no
siderations,
question,however, that apart from important militaryconthe construction of the canal will be justified
by
the contribution that it will make
to the commercial
ment
developroute

in

The

States.

1920

was

over

of the Pacific.
365. The

postal service about

sending communications
of the

to

1800.

in
facility

Increased

"

has

distance

attended

provemen
the im-

transportationby land and sea.

During the early part of the century the postal service was
stillcramped by old methods
and high charges. In England,
for instance,in the period after 1827 and before the reform,
riage
charged for the carpostage of fourpence (eightcents) was
of a letter any distance not exceeding15 miles,and the
postage increased
12

pence

some

the

with

for 300, 15

charged,in

of

means

distance:

pence

cases,

pence

for 600, etc.

nearly five

hundred

for 80

The
times

miles,

government
the actual

naturally,was made
of the post, and it carried,
annual average,
on
an
only three
letters for each member
of the population. Many letters were
and the postal
sent illicitly
of conveyance,
by privatemeans
before
remained
revenue
nearly stationary for many
years
1839, in spiteof the growth of the country in populationand
business activity. Conditions
better in some
states of
were
the Continent, notably Germany, but would stillbe regarded
everywhere as backward.
cost.

Under

these conditions

little use,

MEANS

reforms

Postal

366.

AND

NAVIGATION

OF

and

311

COMMUNICATION

their results.

"

new

era

in the

the introduction

by Rowland
Hill of the penny
post; after 1840 a letter weighing not over
could be sent to any placein the United Kingdom
half an ounce
Similar reductions
if prepaid by a stamp costing one
penny.
facilities were
tended
exwere
adopted in other countries; and new
for the mailing of cards,printedmatter, and periodicals,
samples of merchandise, etc. An international Postal Union
established in 1874 among
the chief countries of the world,
was
which agreed on common
rates of foreignpostage, and arranged
the postal service. This Union
to cooperate in carrying on
has improved greatlythe means
tion,
of distant postalcommunicaEnglishpostalsystem

dates from

has grown
to include practicallythe whole
world, with the exception of China.
and

It is easy

follow the effects of the various

to

improvements

in the increased

use

of the mails.

civilized

reforms

and

In the United

of letters sent per head of

Kingdom, for instance,the number
the population has increased as follows: 1839, 3; 1840, 7;
1872, 28; 1882, 35. The post has developed from a luxury
into a social and industrial necessity,and the extent to which
it is used

in any country furnishes

judge of the country'sadvancement.
may

be

taken

as

by which to
followingcountries

fair index
The

examples, the figuresshowing the number

of

pieces of mail sent annually about 1900, per head of the

many,
population: United States,100; United Kingdom, 85; Gersian
81; France, 55; Italy,17; Japan, 13; Spain, 12; RusEmpire, 5.
367. The

telegraphbefore

In passing to another
ourselves

steam,

so

means

of

manifold

before

"

we
subject,electricity,

may

stillconsider

continuingthe discussion of the applicationsof

for the
dependent are we still on coal and steam
force.
producing and using this new
Among the
in modern
life we
must
applicationsof electricity
ourselves to its use

telegraph,a word
men

applicationof electricity.

as

here confine
The

the

as

means

of communication.

meaning "far-writing,"existed long

to its operation.
thought of applying electricity,

.312

COMMERCE

OF

HISTORY

quickly to distant placeshad

sending messages
led in many
countries,before 1800, to a system of signaling
much
like the semaphores of the
of instruments
by means
railroad. The crudeness of such a system is apparent.
modern
of

need

The

on
depended entirely

Communication

Under

from

six to

were
"

forwarded
never

to

by

the

attained

to

government
368.

from

The

about

and

the

careful

twenty-fourhours late,while half had to be

ordinary post. Aerial telegraphy,therefore,
great importance,and was restricted largely

electric

telegraph.
"

1840, when

were

with

an

the

Practical

the inventions

Englishman Wheatstone,
as

the

business.

possiblewherever
purpose

conditions

and

speed of signaling
was
reallysurprising;a despatch could be sent, for instance,
in 65 minutes.
It
from Paris to Strassburg,by 45 stations,
was
estimated,however, that of the messages received only a
quarter reached their destination promptly, another quarter
observers.

favorable

clear weather

insulated

telegraphy dates

of the American

made

conductor

the

use

could

of

Morse,

electricity

be laid.

perfect
Im-

earlyinstruments

remarkable

they accomplished their

The telegraph,indeed,has

success.

of its extension
probably undergone less change in the course
and practical
development than any other invention of equal
importance. We must look, therefore,to explain the great

extension of its use,

as

of the

so

for
the

much

in the statistics at the

opening

for technical

improvements as
of the telegraphon the part of
a recognitionof the value
roads,
public. It found an immediate
applicationon the railand provided them
with a means
of intelligence
and

control
human

chapter,not

shown

almost

as

important

Little

being. It
by littleit

found

its chief field of

as

is the

nervous

used at once, moreover,

made
its way
into business
was

system

to

by governments.
where
life,

it has

and where
it has effected
usefulness,
most
some
important changes,to be noted later.
Since about 1880 the telephonehas made
a place for itself
beside the telegraph,serving the convenience
of individual
the telegraph serves
the needs
of the great
as
consumers

314

HISTORY

with the shore.

other and

each

with

and can
of emergency,
agents so that their movements

time

In

of markets.

1914

Ships can
regularlykeep in

aid in

summon

touch

with

their

be directed to suit the need

can

wireless

500

over

nearly ten-fold

land, and

on

COMMERCE

OF

stations had
that

number

been
on

tablished
es-

board

ship.
TOPICS

AND

QUESTIONS

marine, chap. 12;

clippers. [Marvin, Amer. merchant
vol.
92
ff.]
117, p.
Clark, in Harper's Magazine, 1908,
will drive sailing vessels entirely
2. Is it probable that steamers
from the seas? People once
thought that railroads would cause a decline
1. American

for draft-horses; has that

in the demand

life of the

The

3.

merchant

Magazine, July, 1893,

4.

Early voyages

5.

Improvement

[W.

the case?
Clark

the Atlantic.

[Fry, 33-42.]
engines. [Thurston, chap. 5: Maginnis,

steam

across

of marine

chap. 11 (technical,good plates and pictures);Chadwick

pp.

6.
pp.

buildingof

112
9.

ships,
steam-

an

[Rideing,in Ocean

steamer.

ocean

[Gould, Scribner's Magazine,

steamers.

ocean

steamships,

steamships,p. 217 ff.]

[Same, Magazine, April, 1891, Steamships,
Passenger travel.
ff.]
Steamship lines of the world. [Hunt, Scribner's Magazine, Sept.,

Nov., 1891,
p.

in Ocean

1-56.]

The

91-111.]
7. Freight traffic by
8.

Russell, Scribner's

3-19.]

14:

by

been

sailor.

or

in Ocean

ff.; Encyc. Brit.]

of the great steamship companies:
the history of one
10. Write
Lloyd, Hamburg American,
Cunard, Inman, White Star, North German
etc.
[Fry, Maginnis.]
in modern
11. Engineering achievements
ports. [Vernon-Harcourt,

1891, Ocean

steamships,p.

253

chaps. 9, 10.]
12.

in Yale
13.

The

Review,
The

vol. 3,

Corinth

[Vernon-Harcourt, chap. 13; Porritt

ship canal.

Manchester

295-310.]
[Vernon-Harcourt, chap. 14; U. S. Monthly

Canal.

Summary, Dec., 1901.]

14.

Construction

of the Suez

Canal.

[Vernon-Harcourt, chap. 14;

Encyc.]
15.

Effects of the Suez

Canal.

[Fairlie;U. S. Monthly Summary,

Dec., 1901.]
16. Effect of the Panama

Canal

on

routes

and

traffic.

[Hutchinson

MEANS

NAVIGATION

OF

315

COMMUNICATION

AND

givesa study of results as anticipated;see U. S. Statistical Abstract and

periodicalliterature for actual results.]
of the English postal system in the nineteenth
17. Development
century. [SocialEngland, 6: 237-246; Ward, Reign of Queen Victoria,
2:

of

ff.]

118

railroad mail

18.

The

19.

From

the

giving

figuresof trade given in

the

population in

the

commerce

with

[Amer. railway, p. 312 ff.]

service.

Statesman's
per

Year-Book

of the

head

sect.
a

table

can

from

the

figures

be constructed

people of different states, for

the postal statistics in the text.

statistics include

and

319

parison
com-

Note, however, that these

domestic

mail, while figures of internal commerce

to have but slightcommerce
lacking. The U. S.,for instance,would seem
of
the
in
active
of
the
use
mails,because the bulk of
per capita, spite
trade is internal and

does not

Development

are

our

in statistics.

appear

of the

telegraph. [lies,chap. 13.]

21. Extension of the telegraphsystem in the United States. [Eckert
in Depew, One hund. years, chap. 19.]
22. History of the submarine
telegraph. [lies,chap. 14; Charles
Bright,The story of the Atlantic cable, N. Y., Appleton, 1903, $1; U. S.
and Finance, Jan., 1899, pp. 1653-1675.]
Monthly Summary, Commerce
23. Development
of the telephone. [Hudson in Depew, One hundred
20.

years,

chap. 20.]

24.

Distribution

of wireless

stations.

[Map

in Statesman's

Year

Book, 1914, plate 4.]

BIBLIOGRAPHY
For

studied
carefully

accounts

of

ocean

transportationin its different

Joseph R. Smith,
Organization of ocean
Boston,
commerce,
carrier,by the same
1905, The ocean
author, N. Y., 1908, and Emory R.
Johnson and G. G. Huebner, * Principles
of ocean
N, Y.,
transportation,

aspects

1919.

see

These

books

offer bibliographies
which

be used to

supplement
development of sailingships,beside the
older books
W. Kirkaldy,
by Lindsay and Cornewall-Jones,see Adam
British shipping, London, 1914, A. H. Clark, The clippership era, 1911,
books by Basil Lubbock
on
shipsof the clipperperiod,and references given
later for American
shipping; on steamshipsthere are satisfactoryaccounts
in Fry and Maginnis and in the collection entitled Ocean
steamships.
Excellent chapters on
the different ship canals, with further references,
are
given in Johnson and Huebner.
See also Lincoln Hutchinson, The
Panama
Canal, N. Y., 1915.
of the development of the postal service,satisSummary accounts
factory

references here given.

for the purposes

On

may

the

of most

readers of this book, will be found

encyclopedias.A scholarlystudy of

the

in the

in the
development, particularly

316

half

first
of

the

of

the

nineteenth

British

applications

aiming

to

in

Philip

electrical
the

is

provided

are

fully

applications

the

L.

A.

J.

Hemmeon,

C.

University,

treated
for

Science
A.

by

Harvard

Contemporary

Consult

COMMERCE

Cambridge,

electricity

of

describe

Atkinson.

OF

century,

office,

post

various

Tunzelmann

HISTORY

the

Series,

Catalogue

by

lies.

for

The

1912.

Other

public

general
Park

History

books

are

Benjamin,

further

references.

by
and

XXXII

CHAPTER

371.

Effect

to

discuss

time
which
back

the

effects

the

summarized

and

have

they

control

over

enabled

men

the

which

wares

with

the

connection

of

the

countries
Of

of

stimulus

growth

Comparing

the

advance

in

the

necessary

to

in

the

realizing the

very

of

Growth

specialization

the

of

ideal

any

and

rich

means

working

than

Second,

and

result

new

of the

settlement

other

has

of
and

resources,

with

and

earlier

that

the
with

it

of

of

sphere
"

early

The
free
317

powerful

account

for the

be

nineteenth
we

Ages

luxuries
served

since

commerce

of

life; that

mainly

1800, it has

considerable

part

and

commerce

world

century.

characterize

may

Middle
the

period,

existence

production.

the

periods

in

would

together

during

recent

of the

other

which

the

each

alone

(1500-1800)

the

as

mineral

with

one

entirely

period

while

the

briefly

World.

commerce

saying

modern

comfort;

372.

of

itself almost

concerned

in

cheaply

more

system,

soil and

three

present

by

be

nature

Third,

countries

Old

the

trade;

to

astounding
the

these

factors

three

these

unknown.

virgin

the

may

history.
of

wares

transportation

the

of

countries

new

old

before

were

development

materials

and

forces
manufacture

to

changes
Following

each

to

nearer

world's

the

in

before

been

ever

effects

improvement

an

regions vastly

different

of

goods

technical

now

transportation,

and

of communication

the

chapters,

First,

follows.

as

It is

"

preceding chapters.

in

of those

substance

progress.

of the

commerce

on

described

been

have

of technical

commerce

on

COMMERCE

OF

WARES

THE

has

trader, that

gone

men's
become
of

kind.
man-

resulting
far toward

wherever

man

318

should

might be, he
other

HISTORY

share

wherever

men,

check

the

able

been

powerless to stop

which

was

grew

in

then

included

in the productive

it.

time

advantages of

Customs

all

tariffs have

of commerce;

they have
The
sphere of ordinary trade,
hamlet
mere
or
village;which
with its surrounding country;

movement

the manor,
a
to be the town

once

COMMERCE

they might be.

been

to

OF

the whole

in the modern
nation; and became
period international, this sphere of regular and ordinary
"

trade
the

is

world.

the

now

different

production of

districts

countries

now

specializein

individuals

as
articles,

or

small

did.

once

Northwestern
its food

Whole

Europe

supplies and
and

raw

has become

materials

from

great factory,drawing
distant parts of the

exporting manufactured

products in exchange.
Beside Europe stands the continent of North
America, supplying
in largepart the needs of its own
people for manufactures,
and producing a surplusfor export. North
America, indeed,
stands in one
aspect above Europe, for it has unexhausted

world,

stores

the

of natural

world

which

richly endowed.
positions. They

it lavishes

less

subordinate
procure

resources

from

Europe and

The
are

North

other

enabled
America

other

on

parts of

continents

by
the

take

commerce

to

manufactured

in the production of
they require,and specialize
materials
for the means
various food supplies and raw
of
purchasing these goods.
373. Abolition of the slave trade.
The description
of the
of production,and of the exchange
present world-organization
of wares
it givesrise,belongs to the department of
to which
commercial
geography. It is proper here, however, to call
attention to some
of trade
of the marked
changes in the wares

goods

which

"

which
One

have

taken

place since

1800, of great commercial

importance,and which yielded immense
profitsto those who
dealt in it,has disappeared with the abolition of the slave
trade by all civilized nations.
Long before the abolition of
slaveryitself,
humanity revolted against the horrors of the
ware

which

1800.

was,

before

WARES

THE

319

COMMERCE

OF

passage," and the protests took effective form about

after
agreed, one
1800; the states of Europe and America
another, that the slave-trade under their flags,and for the
should cease.
supply of their territories,
"

middle

374. The
of

great

survey

summary

before

1800

classes,colonial
in ensuing

of

wares

be

can

the most

"

important

For
wares

the pose
purof commerce

designatedas belonging to
and

products

_Coal.

commerce.

te^ilea.We

shall have

the two
to

note,

strikingchanges affectingboth of these

of commerce
classes,and the addition to the important wares
of two new
classes,mineral products and foodstuffs.
Taking first the mineral products,and includingcoal with
in doing, we
us
justifies
find,at first
them, as common
usage
the modern
sight,that this article takes a far lower rank among
than we should expect from its commanding
wares
importance
in industrial life. There has been, it is true, a great growth in
the coal trade, and considerable
quantitiesare exported from
England, Belgium, Germany, on occasion the United States,
There
etc.,for use in countries lackingcoal mines, or at sea.
is

an

sections,

immense

half of the

internal

tonnage

in coal.

commerce

carried

on

the

In

railroads

1900

more

of the

than
United

mining products; and of these coal certainly

formed
a
considerable,perhaps the major, part. Still
very
the chief wares
of foreigntrade.
_coaldoes not rank among
An
375. Metals
and
Manufactures.
explanationof the
of coal in foreigntrade is found in
comparative insignificance
the value
its bulk.
An active industrial people can
compress
the mines for the production
of coal,as it were, by usingit near
States consisted of

"

and transformation
iron

and

remains

of other materials.

manufactures, and
stillthe real power

so

behind

Coal

loses its

is transmuted

into

identity,though

it

the exports of that character.

and the manufactures

depending
stool,
of the century,
on
thorn,has increased enormously in the course
the reader may
as
Supplies of iron and
readily suppose.
machinery flow from the centers of production to the less
advanced
countries,and the simpler tools penetrate every
( 'ommerce

in iron and

320

and

nook

forms

now

like the United

its

use

and

States

is the

Nor

"

century the trade in mineral

become

in

item

exchanges of
commercial

new

significance

to

the metals.

oil

(petroleum,"kerosene")

part of the world's

necessary

countries

Germany.

products confined

of mineral

COMMERCE

Copper has grown

greatly in
for electrical appliances has extended,

considerable

Petroleum.

376.

OF

of the earth.

corner

importance, as
and

HISTORY

In the last half

One

economy.

in manufactures

has

result

and

transportation
mination
was
a
demand, from all sides,for more
light. Artificial illuneeded for the full utilization of machinery and
was
of transportation;
and to providelightfor the newspaper
means
reading,study,and recreation to which peoplegave themselves
in increasing
numbers.
The firsthalf of the century witnessed

of the great improvements

of
the

the invention

improvements:

many

glasslamp-chimneys, the spread

of

use

new

oils for illumination.

compares

in

petroleum

could

however,
crude

of matches, the introduction

efficient

of

means

No

importance with
made

be

the

illumination.

is

knowledge, and

of

matter

common

of little more

the importance of the service which

grain trade

377. The

Important

and

it

discovery that
of

cheap
development of

The

space

the

source

petroleum trade in the

and
lighting,
previous advance,

of gas

than

as

the

generation

is

readilyexplainedby
performs.

slightdevelopment before

characteristic

and

the trade in mineral

1800.

"

products

has grown
to be in the nineteenth
century, it is stillfar from
the branches
first place among
The
of the world's commerce.

primacy belongs, without

especiallygrain.
Before

the

commerce

the

condiments

question,to

development
in

of the modern

foodstuffs

rather

the trade

than

concerned

the

in foodstuffs,

system of transportation
itself

largelywith
aliments, with spices and

seasoning rather than the substantial food staples. Even at

a
freightrate of 15 cents per ton-mile (and the expense of
certainly
transportationon European roads before 1800 was
be limited to
far above that),wheat
at $1.50 a bushel would

322
for

England

with

HISTORY

OF

cereals,at

sea

COMMERCE

at

time.

one

As

formerlythe

depended on the farmer of a nearby county

the inhabitants of
for the supply of his daily bread, so now
people in the Dakotas, in
England in general depend upon
California,in the Argentine Republic, in Egypt, in India,or
The
in Australia.
to
Englishman is enabled, by commerce,
share in the agricultural
advantages of any and all those
countries;he applieshimself to his specialtyand exchanges
the product for his food.
citizens of London

379.

in

Commerce

other

foodstuffs.
the whole

"

In

respects

some

of far less

though on
striking,
importance,
in stock and meat.
has been the growth of foreigncommerce
of marketing meat
About
1800 the common
to drive
was
way
it to market
the hoof; the tripmight consume
of
on
a number
days, and the animal would arrive in poor condition and with
For
transportation to distant countries
weight diminished.
Fresh
had to be preserved by picklingin brine.
meat
meat
of good qualitywas
the average
a luxury,and
consumption of
has solved the problem of
small.
meat
Modern
was
progress
using the great grazing spaces of North and South America,
and Australia for the supply of distant peoples,in two ways.
by land and sea have allowed
Improvements in transportation
of miles,in good conthe carriageof live-stock for thousands
dition.
artificial
The use of refrigerating
appliances,
especially
of steam
has permitted the
refrigeration
by means
power,
distance without deterioration.
carriageof dead meat the same
Furthermore, the applicationof scientific principlesto the
has enabled
preservationof meat
suppliesof that article to
be utilized which would
uted
otherwise be wasted, and has contribeven

more

new

form

of

ware

to

modern

trade.

Other

foodstuffs

fresh vegetables)have profitedby similar advances

ffpiit.
sffld
in the means
of transportation
and preservation.
380. The textiles ; changes in relative importance.
In this
brief survey
classes of wares
be noted, the
only two more
may
and colonial products. Trade in wares
of both these
textiles,
classes has undergone a great development and
important
"

WARES

THE

in the

transformation
no

course

OF

of the century,

revolutionarychanges

such

323

COMMERCE

as

in the

case

it presents

though
of

described

wares

above.
continued

textiles have

to be among

the most

important
A population,advancing rapidlynot only
of commerce.
wares
in numbers
but in average
purchasing power, has demanded
constantlyincreasingsuppliesof clothingmaterial. There has
been, however, a noteworthy change in the kind of fabric
demanded.
material
Measuring by the weight of the raw
consumed, the English textiles about 1800 were
composed as
follows: over
two
fifths woolen, over
two fifths linen,considerably
fifth cotton.
Note
less than one
the change as
now
shown
by conditions about 1880: wool made up one fifth of
the total,linen little more
than one
tenth, while cotton had
The

risen to
better

two

than

thirds.
those

of any
cheap and

they present a
they have
largeextent.
381. Commerce
"

The

been

in

raw

some

other

purposes

cotton

fabrics

material, for other

are

purposes

quently
satisfactory
substitute;and conseable to displaceother textiles to

materials

for the textile manufacture.

rise in importance of cotton

responsiblefor
trade.

For

is partly,not

great change in the character

entirely,

of the textile

exceptionof silk,which has always, because

of its high price,been of restricted use, the raw
materials for
the textiles had formerly been
produced in the country of
manufacture.
England and the Netherlands, it is true, had
begun before 1800 to import wool from Spain, but wool was
then an object of internal rather than foreigntrade,in general,
and flax was
raised for home
all
consumption in practically
the European countries. The introduction of the cotton manufacture
in Europe introduced
of this
a change, for in the case
textile the raw
material as well as the finished product was
of foreign trade.
The
necessarilya ware
past century has
witnessed a vast increase in the commerce
in raw
cotton, and,
the establishment
of an
important trade in raw
moreover,
wool.
In 1850 Europe still supplied four fifths of the wool
With

the

324

HISTORY

COMMERCE

OF

consumed, and has continued since that date to produce about

the same
quantityas then. The proportionwhich it contributes
to the total supply has, however, declined to less than one
increase in the production
third. There has been an immense
America

of wool

in South

advance

in the amounts

and

furnished

continents,and

flows to

less notable

Europe from

in the form

to them

returns

by Africa and Asia.

wool

present time, therefore,raw

other

Australia,and

At

the

all the

of finished

goods.
382.
our

Colonial

attention

will be

received

wares

"

their

entirelyon
The

that

tea, coffee,and

of which

name

modern
At

of the

an

like

products,

familiar

because, before
what

to engage

wares

so-called colonial
are

sugar

of countries

commerce

last class of

distant parts of the world

reader will remember

in the

The

products.

examples. The
pended
1800, Europe defor their

supply.
important part they played
England and France, in the

period.
least

has been

one

added

of the century.

ware

of considerable

to the list of colonial

Rubber (usingthat

article with

somewhat

commercial

products in

word

to

different

cover

importance
the

course

also gutta-

counted
qualities),
before 1830.
Soon
for little in commerce
after that time,
however, it was regarded as "promising," and the discovery
of the vulcanizing
process by Goodyear enabled manufacturers
to gain the full benefit of its valuable
qualities,
elasticity,
an
indispensable article in.
impermeability,etc. It is now
and though the production has risen to a
applications,
many
hundred
million pounds a year the demand
for it has increased
stillmore
rapidly,and the pricehas risen.
The
old wares
have not only retained but also increased
in human
their importance as elements
consumption. The
people of Germany consumed, on an individual average, about
2 pounds of coffee in 1840, 6 pounds in 1900; 4 pounds of
tries
Figures from other counsugar in 1840, 30 pounds in 1900.
mand.
variations,the same
growth in depresent, with some
demand
The
over
people of the United States now

percha,an

of

pounds

10

OF

WARES

THE

coffee

per

325

COMMERCE

capita, and

70

over

pounds

of

sugar.

383. Rise of beet

colonial

the

of

methods
the

course

sugar

sugar,

and

effect

on

commerce.

"

One

of

demands

The
special attention.
productionEaveundergone a complete change in
wares,

sugar,

of the century, and

have, in

some

cases,

the former

currents

actually been

of trade

reversed.

in

Before

people relied entirelyfor their sugar supply on the cane

known
plantationsof the colonies. It was
already,however,
contained
that beets
a
large percentage of sugar, and during
the Continent
closed in large
the Napoleonic wars, when
was
made
to secure
part to colonial imports, an attempt was
sugar
of supply. The attempt was
from this native source
sufficiently
1800

successful to stimulate

protectionfrom
established
That
of

on

the

further

efforts.

governments

the Continent

in the

industrysuppliedin 1860 one

the sugar of the world, in 1882

With

beet

industry was

sugar

first half of the

quarter
one

the aid of liberal

century.

of the total amount

half,in

1900

nearlytwo

thirds.

change in the method of manufacturing sugar has had

Countries
with cane
far-reachingeffects on commerce.
tations
planhave seen
the price of sugar fall under the increased
output of European factories,equipped and operated with
scientific accuracy;
they have lost a large part of their former
of them
have been almost ruined.
market; some
England,
which
made
and
once
great profitby importing cane
sugar
it among
the other European countries,now,
on
distributing
the contrary, goes to the Continent
for the largerpart of its
sugar supply; and continental states like Germany and France
export sugar instead of importing it.
The
reader
384. The
European sugar bounty system.
due
should,however, note carefullythat these changes were
in largepart to a system of protectionwhich had grown
midable
to forproportions. European governments have found in
object of taxation,but have desired at the
sugar a convenient
time to further the growth of the home
same
sugar industry,
The

"

326
and

HISTORY

for it

OF

market

COMMERCE

in

foreigncountries. They have

sumer,
sought to combine the two objectsby taxing the home conand by remittingthe tax and giving specialpremiums
to

to the

of

secure

exporter. A pound of sugar

Europe where

it

far

cost

in

more

country

manufactured, than in the country to

which it was
exported; every pound sold at home had to bear a
pound sent abroad received a premium which
tax, and every
enabled

it to be

industry,for
in

sold

which

spiteof the

the
the

of

expense

Such
in

more

the town

Scotland,because
market.

was

sugar

The

of Dundee

is famous, could flourish

of affairs

admitted

was

aspects it became

some

marmalade

orange

transportingthe fruit from Spain to

was
artificially
cheap in the English

condition

cheaply.

absurd.

intolerable and

bounty system became

Continent
agreed upon

of

measures

The

to

be

wholesome;
un-

burden

of

the governments

of

reform,which

went

into

effect in 1903.

QUESTIONS
1. Make

under

brief written

the heads

AND

TOPICS

of the contents

summary

of Europe indicate
outline map
in different periods,with
sphere of commerce
2. On

3.
N.

an

Suppression

precedingchapters

of

the

slave

trade.

areas

correspondingto the

approximate

[Schuyler, Amer.

dates.

diplomacy,

Y., 1886, chap. 5.]

4. Recent

or

of

of section 371.

slave

trade in Africa.

[Biography of

modern

missionary

explorer.]
5. The

coal trade

at

the

close of the

century.

[Special Consular

for American
coal; U. S.
Report, No. 21, 1900, part 1, Foreign markets
of Commerce
and Finance, April, 1900, vol 7, no. 10,
Monthly Summary
pp. 2815-2927, or Sept., 1902, vol. 10, no. 3, pp. 663-757.]
6. On

the

wares

of 375

and

the following sections prepare

reports,

of the
the following points: total amount
possible,
world's product; the leading countries (perhaps six),the share of each,
and their relative advantages; the chief importing countries; peculiar
characteristics of the trade.
[Commercial geographies,encyclopedias.]
of the following topics:
7. Report on
one

indicating,where

it is

(a) Development of the uses of petroleum.

(6) History of the production and transportatiopof petroleum.
(c) The Standard Oil Company.

WARES

THE

OF

327

COMMERCE

[Martin, Coal; encyclopedias;Gilbert

Montague, The rise and

Oil Company,
N. Y., Harper, 1903, $1; Ida M.
progress of the Standard
Tarbell,The History of the Standard Oil Company, N. Y., 1904.]
outline map
the distance from
profitablybe carried by different means

8. Indicate

wheat

could

[See below,

on

an

and

U.

Explain

value

Provision

to which

transportation.

export of wheat

from

the

stract.]
[See statistics in U. S. Statistical Ab-

commerce.

trade of the world.

[Edgar, Story, chap. 4.]

[U. S. Monthly Summary,

2297-2347.]
canning interests.

1900, vol. 7, no.

Feb.,

8. pp.

13. American
years,

of

century.

in modern

Wheat

12.

of

statistics.]
wheat.
[Edgar, Story, chaps, 1, 2.]

great fluctuations in the

the

S. in the nineteenth

11.

home

your

387, for convenient

sect.

9. Character
10.

H.

[Judge in Depew,

One

hundred

chap. 57.]

14.

What

spend in

15. The

does

amount
year

for each

cotton

trade

for

an

American

of the

household, your

own

for

chief textiles: cotton, wool,

of the United

suggestion of

States
mode

and

of the

instance,

linen,silk?

world.

[See

of

ject;
simple
treating a large subbe amplifiedas time permits. F. Wilkinson, Story of
the topicmay
don,
industry,Loncotton, N. Y., Appleton, $1; S. J. Chapman, The cotton
in
statistics
U.
S.
1905; George Bigwood, Cotton, London, 1918;
Monthly Summary, vol. 7, no. 9, pp. 2543-2635.]
16. The wool trade.
don,
Lon[John H. Clapham, The woolen industries,
1907; Frank Ormerod, Wool, London, 1918.]
of the following,
of commerce
17. Write a historyof one
in
as a ware
the nineteenth
century: rubber, tea, coffee.
18. History of sugar
[See the doctor's dissertation
as a commodity.
D.
Ellen
Ellis,Philadelphia, 1905.]
by
of tea, coffee,and sugar does your
19. What
amount
household
sume
conin a year?
(Note that sugar is frequently purchased in preserves,
cake, etc.)
literature;
20. History of beet sugar, [Encyclopedias; index to periodical
U. S. Monthly Summary,
Jan., 1902, vol. 9, no. 7, pp. 2585-2763.]
21. Some
effects of the system of sugar bounties. [Charles S. Parker,
Free trade and cheap sugar,
Fortnightly Review, 1898, 70: 44-53.]
22. The
Brussels sugar
conference.
[Economic Journal, June, 1902,
12: 217 ff.; same,
March, 1904, 14: 34 ff.; Quarterly Journal of Economics,
17:
Nov., 1902,
Iff.,Contemporary Review, Jan., 1903, 83:75.]

above,

sect.

378,

BIBLIOGRAPHY
As

this

chapter touches

for bibliography and

the

field of commercial

general reading,

to the

current

geography I refer,
manuals

on

that

328

subject:

C.

Handbook,
commercial

C.
N.

the

Adams,

in

Questions

and

history

the

of

OF

N.

quantity
Topics
commerce

COMMERCE

N.

Text-book,

Longmans;

Y.,

geography,

References
the

HISTORY

Y.,

Joseph

G.

Appleton;

Russell

Smith,

Chisholm,

S.

Industrial

and

Holt.

Y.,

sufficient

above;
of

for
further

specific

students

ordinary
references
countries

will
is

considered.

are

be

given

given

when

in

330

HISTORY

OF

COMMERCE

relatively
stable,and, for the most part, are a matter
have not yet reached perfectionin
of public knowledge. We
this respect, as is shown
by the wide-spreadcomplaintsagainst
but we
railroad managers,
have approached nearer
American
have been imagined possiblea century ago.
to it than would
386. jPrrpihpty Certainty brings with
it regularity.
which are sure
to arrive within a certain period can
Steamers
be advertised to leave on certain days. Merchants
and producers
their preparations,and the
are
encouraged to make
whole body of people is stimulated
to new
ciency.
activityand effiConsider
the following example, which, however
trivial in itself,
is typicalof the course
of development in the

now

are

nineteenth

century.

"

Before

the

establishment

of

steam-

vessels,the market at Cork was most irregularly

supplied with
the surrounding district;at certain seasons
they
eggs from
and cheap, but these 'seasons
were
were
exceedinglyabundant
and high prices,and
to be followed by periodsof scarcity
sure
been difficult to purchase eggs at
at times it is said to have
At the first opening of the improved
any pricein the market.
channel of conveyance
to England (the steamer),the residents
of Cork had to complain of the constant
high priceof this and
other articles of farm produce; but as a more
extensive market
was
now
permanently open to them, the farmers gave their
attention to the rearingand keeping of poultry,and, at the
in the
present time (1838),eggs are procurableat all seasons
market
at Cork, not, it is true, at the extremely low rate at
which
they could formerly be sometimes
bought, but still at
less than the average
much
priceof the year. A like result has
followed the introduction of this great improvement in regard
to the supply and cost of various other articles of produce."
387. Frjinnmyi
A- to the economy
in the carriageof
has already
wares
resultingfrom recent improvements much
find in the
been said in other chapters,but the student may
author, a helpfulsummary.
followingestimate,by a German
For
$3 a hundred
kilogram^ of wheat (220 pounds, a little
less than 4 bushels) could be carried the followingdistances

THE

MODERN

331

ORGANIZATION

(about five eightsof a mile): on a common

road
100,on a good road 400, on an earlyrailroad 1,500,on a modern
railroad 4,500, on
steamer
an
ocean
25,000. There is little
the advantage to
danger that the student will underestimate
in kilometers

of this reduction

in the cost of

but he should
carriage,
note
also the economy
resultingfrom the speed and certainty
of transportation. A considerable part
instruments
of modern
of the world's capital,a century ago, was
locked up in goods
in transit or in warehouse.
These
of no
to
goods were
use
anybody. Nowadays not only are goods put where they are
wanted, they are put there with such speed and certaintythat
do not need to keep a large stock on hand, and the
merchants
In the India
small.
stock in transit is relatively
trade, for
around
the Cape of Good
instance,when a voyage
Hope took
a good part of a
year, and the time of arrival could not be
commerce

within

calculated

keep great stocks

to

the

make

steamers

month

meet

two, India

or

the

trip by the Suez

of their arrival is exact

the time

varying
to

merchants

demand.

Canal

in

had
Now

to

that

month, and

day, dealers order goods

have been
needed, and the great India warehouses
rendered
in large part useless for their originalpurpose.
The modern
commercial
388. Sensitiveness.
organization
of its regularity.
has been likened
to clock work, because
be said that it is
Carrying further this comparison, it may
as

they

are

"

like

chronometer, in which

delicate

in the

appears

commerce

exchanged through
the readiness
even

with

reversed

difference of

metal, a quarter of
of

commercial
shock.

cent

world

on

one

become

When

quantitiesof

power

of modern

wares

which

occasion.

It has

are

is shown

by

turned

are

been

said

or

that

globe to the other on a

of grain,a dollar on a ton of
on
a bushel
teenth
a cent
a yard on
a textile fabric,or
a sixSo sensitive has the
a
pound of sugar.

from
cent

vast

The

its sensitiveness
its agency;
of trade
which the currents

suit the

to

turns

commerce

every

of friction.

with the minimum

attended

is

movement

every

the

side of the

to

every

McKinley

stimulus

that

tariff bill

was

it feels also

passed

in

332

HISTORY

OF

COMMERCE

States,it is said that the next day several thousand

of pearl buttons in a
workmen, employed in the manufacture
thrown
Brief interruptions
out of work.
city of far-off Austria,were
of commerce,
by the outbreak of epidemic diseases,
by storms or other natural phenomena, or by strikes of workers
serious anxiety. The
rouse
sitiveness
senengaged in transportation,
of modern
be shown, further,
commerce
by the
may
of the division of labor has
refinements to which the principle
the United

been
are

carried.
sometimes

economies

It is said that in the leather manufacture

sent

the

across

in subordinate

ocean

four

times, to

skins
effect

treatments.

Importance of the telegraph,illustrated by conditions

While
the various
preceding its introduction.
changes in
be ascribed largelyto the use
indicated above
commerce
can
of steam
in transportation,
in_
they would be inconceivable,
their present form, if the electric telegraph had not been
389.

"

extended

over

all lands

and

under

all

seas.

"""""""""""""""""^^"("^"""^""i

trated
be illuscan
importance of the telegraphin commerce
by conditions in Shanghai about 1870, before the cable
reached that port. The
rate of foreignexchange, a decisive
factor in all commercial
mined
at that time detercalculations,was
The
by European advices brought by post steamers.
would
the Chinese
make
tael
steamer
news
brought by one
equivalent to 7.25 francs; on the arrival of another steamer
the rate would
rise to 8.10.
As merchants
bought in taels
and sold in francs or other European currency,
their profits
and losses were
largelydependent on variations in the rate.
mercantile houses of Shanghai had found it worth their
Two
while to invest a large sum
in the construction
of special
could
like modern
be made
vessels,which
torpedo boats,
practicallyall machinery and hence very fast, as the only
a
they had to carry was
singleletter,bringing from
cargo
Singapore or Hong-Kong the European news
affectingthe
hours in advance of the regularsteamer.
rate of exchange, many
The
few merchants
who
enjoyed the benefit of this news
service had, of course, a great advantage over
their competitors,
The

THE

buying

and

the

shared

introduction
alike in such

in rates

Quotations

violent

the rate would

of the

cable,however, all merchants

information,and, furthermore,by

communication

continuous

the

333

ORGANIZATION

sellingwith full knowledge of what

With

be.

MODERN

thus
became

established,the

former

thing of the past.

390. Services of the telegraphto the modern
organization.
Newspapers spread broadcast the market quotations which are
a

"

by the telegraph to all parts of the world, and the

in the South,
farmer in the American
West, the cotton grower
"oF"the sheep raiser in Australia, can
learn with
what
ease
priceshis staplebrings in the great markets and what price
carried

he

ask

can

for it.

the centers

At

of business

the great

chants,
mer-

in touch,

sumers
by the post and telegraph,with both conproducers,study to apportion the supply so that
in need of it,and seek to
those who stand most

and
it will reach

regulatefuture production so
want
when
the product
nor

that there may

be neither waste
is brought to market.
The
markable
re-

of 3razil

in

coffee

production has been

explained by a student of the subject as due in large part to
the spread of the telegraphin South America
and the layingof
cable to Pernambuco
in 1874, bringing the country into
a
progress

communication
The
with

with

whole

now

Merchants

army
were

been

enabled

country of

find

to

the
more

of production

on

to

and

useful

who

employments.
their buyers

fast steamers, transmit

their

bring the wool directlyto the

consumption, cutting out entirelythe middlemen

through

get cotton

broker;

1 per cent.

old system, but

by telegraph,and

the firstAtlantic

system, and

dispensa

merchants, and

trade,for example, send

London, Antwerp, and Havre, who

Before

to

commerce

commission

under

necessary

in the wool

instructions

coffee markets.

of middlemen,

released

to the countries

of

world's

telegraphhas, moreover,

brokers, who
have

the

the

in

was

the hands

cable
dozen

cable

did

away

years

the

once

controlled the trade.

laid it cost about

of the commission
with

the

charge was

old

3 per

cent

merchant

consignment

reduced

to about

334

391. Functions

HISTORY

OF

of the

merchant.

elimination

of unnecessary

middlemen

seem

COMMERCE

"

middlemen.

unnecessary,

and

spoke above
To

fit

many

of the

people all

only for elimination.

people regard as worthless drones all who are not engaged

in the work of raisingraw
of
materials, manufactures,
who merely
or of transportation;
they see no reason
why a man
receives reports and writes letters,
sits in an office,
who perhaps
he "handles, should grow rich off society.
rarelysees the wares
be given in the words
The defence of the middleman
may
of an
English writer, describingthe important part which
merchants
play in marketing the great output of the British,.
merchant
iron industry. "The
usually has a better knowledge
different markets
than the producer.
of the conditions affecting
with the buyer; he knows
He comes
more
directlyin contact
credit can
better to whom
safely be given, and is prepared to
would
risk credits that the manufacturer
often refuse; he is
well posted in railway and
shipping rates and conditions,
understands
the peculiarities,
practices,and requirements of
commercial
particularmarkets, and has all other necessary
information,includingfreightsand tariff duties,at his fingers'
ends."
Surely the functions thus suggested are sufficiently
important to keep specialists
employed, with profitto society
well as to the individuals engaged.
as
and varietyof the mercantile
in number
392. Growth
class.
In fact, the class of middlemen, those who
are
occupied
merely in the exchange of wares, has increased greatlyin the
These

"

""

course
now

of the
with

such

century.
power

The

great commercial

machine

runs

smoothness, only by the help

get their livelihood by tending it.
and

of

In
who
myriads of men
merchants
of wholesale
or
Prussia,for example, the number
firms increased twenty-foldin sixty years.
The change would
lack a large part of its present significance
It has
of middlemen.
if it affected only the number
been a change in quality as well as quantity. The increase in
business has furnished the opportunity for a redistribution of
which was
before impractasks,and has led to a specialization

MODERN

THE

To

ticable.

be

of supreme

man

be a
jack of all trades nowadays one must
of one
branch
of trade
genius; to be master

is sufficient for the

It pays

man.

Rouse,
Most

men

of'iVr to

to

and

energy

iV\v

the ambitions

of the

ordinary

to take the

way
positionof Charles Broadbuy anything and to sell everything.

merchants

wholesale

335

ORGANIZATION

content

are

to

confine

themselves

of trade: lumber,

iron,wool, leather,grain,etc.
of these merchants, moreover,
Most
rely further on specialists
with certain parts of their business.
to help them
They depend
warder,
constantlyon the banker, the speculator, the broker,the forthe commission
the warehouseman,
merchant, and
different kinds.
It is impossible,
in this book,
agents of many
than suggest the complex commercial
to do more
organization
of the century. Only a few
which has grown
up in the course
be treated in the following
of the most prominent features can
to

branch

one

sections.
393.
ance

can

has made

us

speculation,
"

familiar
wren

me

The

means

practiceof insur-,
by which producers

of the risks of their business.

against some
farmer can
insure his growing crop againsthail,a merchant
insure
insure his stock againstloss by fire,
a shipowner can

secure

and

Insurance

themselves

For a small annual

against loss at sea.
payment,
well spare, he secures
himself against
which the producer can
to
a loss which
might prove ruinous,if it chanced to come
He
him.
gains relief from anxiety,strengthenshis credit (he
the securityof uninsured
could not borrow
on
goods), and
of operation which
is essential to the
that regularity
secures
greatest efficiency.
So obvious are the advantages of insurance that every one
his vessel

accepts it

as

service which

benefit.

We

have

now

to

see

how

the

same

producer by the insurance

is performed for the merchant
by the speculator.
company
is that of pricechanges
Among the greatest risks in commerce
due to great events
or
(wet seasons
dry seasons, war or peace,
foresee. A
neither control nor
etc.)which the merchant
can
excellent
grain merchant, for instance,who has bought some
is performed for the

336

wheat

in

HISTORY

OF

COMMERCE

Dakota, has made

advantageous arrangements for

confident of findinga ready sale to

and is
transportation,
an
English miller,may find the whole transaction results not
in profitbut in loss,if the level of wheat
pricesfalls before
his sale is accomplished,by reason, perhaps,of the unexpected
yieldof wheat in a distant country, or by the conclusion of a
Why does he not sell the wheat in advance to the
great war.
miller,and so protect himself from this danger? He would
simply be shiftingthe burden to shoulders still less able to
needs to give all
bear it. The miller is a manufacturer,who
his thought to the technical details of his business,and who
illafford to buy wheat
when
it is high, only to find when
can
he comes
the flour that it has dropped in price,in
to market
sympathy with a decline in wheat.
The class
394. Services of the speculatorto commerce.
of speculatorshas grown
of the century, to
up in the course
such risks. It can
do great harm
to business by creating
assume
risks where
none
naturally existed,producing artificial
scarcityby "corners," etc.; this danger should not blind us
to the benefits it confers when
it confines itselfto its legitimate
this business of specubusiness.
Let us see how, in practice,
lation
its

"

serves

commerce.

bought wheat or cotton in America,

for sale in the Liverpool market, sells immediately an equal
he expects to
quantity for future delivery,at a time when
have his ware
ence
ready for sale in England. It makes no differto him
then whether
the generalprice of his ware
goes
If pricesgo up he will have to pay more
to
up or down.
"cover"
his sale of futures,but he will also get more
for his
real ware.
If pricesgo down he may
not be able to get as much
for his real wheat
he expected,possiblynot as
cotton
or
as
much
as he paid for it; but he will make
up justthe difference,
He renounces
all
cover.
by the low price at which he can
himself against great
chance
at great gains,but also secures
to attain
loss,and is glad to pay the speculator'scommission
this result. He makes
his profitby the differences in the price
A

merchant

who

has

338

HISTORY

produce exchanges
countries.

in

Germany,

characteristic trade

of

the

COMMERCE

found, with

be

to

are

and

handled

wares

OF

variations

in the

pursued, in all advanced

for instance, offers facilities for the
a produce exchange (including
dealings
system

in futures),in the following articles: wheat, rye,

maize, oats,

flour,crude alcohol,rape-seedoil,kerosene, cotton, coffee,

rye
raw

of the

Contrast

396.

in manufactures

and

and

granulatedsugar,

sugar,

carded

wool.

of association

character

transportation.

or

"

in

commerce

previous section,

of merchants
in the nineteenth
describing the specialization
in the
has made
century, suggests the gain which commerce
of cooperation. The
tendency, however, has been to
way

splittasks
individuals

small

or

of

numbers

into small pieces,and

up

strictlycommercial

rather

groups,

under

men

one

to distribute these

than

to

We

management.

do

undertakings the tremendous

aggregations

and

men

have

invaded

have

effected

the field of

here.

carried

on

in which

More

397.

What

indicated

is

modern
is true,

certain extent, and

in

improved methods
development may be

the

interestingsubject

an

for

be allowed to detain
subject which cannot
for the most
Mercantile
enterprisesare still,
part,
by individuals,by partnerships,or by corporations
is predominant.
the personaland local element

but
speculation,
us

products.

thus

line

of their chief economies

some

of marketing their

along the

to

commerce

great
find in

not

capitalwhich have become characteristic of

Modern
trusts, it
transportationand manufactures.
of

among

associate

efficient utilization of capitalin modern

middleman, therefore,cannot
which he needs for carrying on his
The

as

rule

trade.

"

the capital

secure

business

securities
by offering
for publicsubscriptionthrough the stock exchange. He seems,
in this respect, at a disadvantage- in comparison with the
manufacturer, the railroad,or the steamship operator. He is,

however, better off in

of
with
old

an

the

earlier time.
same

conditions.

amount

The

at

least two

First,he
of

respects than
can

capitalthan

great technical

do much

his
more

sors
predecesbusiness

possibleunder the
improvements have rewas

THE

suited

in

much

merchant

339

ORGANIZATION

"turn-over"

rapid

more

sells out

now

rapidly than he
trade, given in

capital,and

of

far

replenishes his stock

and

more

formerly do. The instance of the India

The
section above, illustrates this fact.
a
ruled this trade by their great
princes" who once

"merchant

capitalhave
make

MODERN

could

given place to

many

smaller

merchants, who

can

less capital suffice by its rapid turn-over.

398.

Benefit

merchant
because

can

he

of

borrow

reader

results of the

be

content

with

in which

deserving
formerly,

tage.
better advanof the

summary

in the

of the

course

the details of its

to treat

throughout the world.

the unused
capitalof the community
able
of enormous
a fund
dimensions, availOn
loans.
the security of business paper

history. Banks have

They have attracted
until they control now
for mercantile

to much

of banking

space

the

capital than

easilyand

development

century, for there is no

Second,

"

smaller

more

must

trade.

to

with

manage

can

The

banks

followed

business

of exchange, bills of lading,drafts,notes, etc.),

merchants
(bills

the

secure
now

only by

of the
to

course,

or

the

capital,and

the extent

banker

accord
to

of this

use

judge

to

withhold

find their

the

of the

use

they

are

comparatively rare

either direction compromises the bank's

the

commercial

since 1841, to aid bankers

of judging the
399.

of this business,and
bank's

because

and

made, of

are
a

mistake

grown

up

in this delicate task

merchants

credit of Individuals.

Criticism of the present organization; crises.

general power

in

tutions,
Specialinsti-

success.

credit agencies, have

and

ing
accord-

money

promise of the enterprise. Mistakes

but

function

It is the

of their business.
of the soundness

limited

means

Of the

"

and

of the present organizationthere

efficiency
be no question. It meets
the supreme
test of maintaining
can
in any previous periodof the world's
a population greater than

history,on a scale
perfect,however, no
the many
view, but

of comfort
sensible

criticisms directed
must,

not

omit

That

formerly unknown.
man

believes.

against it

the

from

consideration

We

cannot

it is

discuss

various

points of

of

confessed

one

340

HISTORY

OF

COMMERCE

organizationis wonderfullyefficient in normal

times, but it is unsteady. It passes, at intervals,through
culminatingin a crisisand followed
periodsof feverish activity,
of the world's
showing the course
by dull stagnation. A curve
trade during the century would
not present a steady rise,but
series of waves,
with distinctlymarked
and trough.
crest
a
of labor and capitalin all periods of a crisis.
There is a waste
strain themselves
to build railroads
In the good times men
where
machines
for which
they are not needed, or to make
Sooner or later they come
there is no profitable
to their
use.
with a shock, and realize that they have been wasting
senses
their time; then they are as depressedas they formerly were
sanguine,and are too timid for a time to make good use of
the capitalwhich the crisis has left on their hands.
The tendency of the commercial
400. Crises before 1850.
organization to these interruptionsin its regularityof operation,
which was
countries before 1800,
apparent in advanced
in the nineteenth century; and, with
has grown
marked
more
crises now
the spread of the modern
affect the
organization,
The

weakness.

"

whole

world.

Crises have

years

since 1800.

crisis marked

Another

in 1815.

wars

by speculation in
unwise
from

investments
its

was

States in 1837.

The

at intervals of about

the end

eleven

of the

Napoleonic
followed in 1825, occasioned,in England,
and
and
banks, turnpikes,
by
canals,

in South

depressiononly

1836-39, which

occurred

to

felt with

America.

Commerce

recovered

decline

again after the crisis of

particularseverityin the United

last of the crises in the first half of the

the first crisis for whick

railroad

speculationcan
be held largely responsible,followed in 1847, and
the
was
the Continent because it coincided with a period
severe
more
on
of political
revolution.
century, and

401.

the

Crises since 1850.

of steam

Toward

the middle

of the century

transportationbegan to work
their great changes. At just this time, moreover,
the discovery
of gold in California (1848) and in Australia (1851) led
increase in the world's stock of gold, which is
immense
to an
new

instruments

"

THE

said

to

have

doubled

inflation
results,
the

money

new

MODERN

and

had

in little

marked

as

The

years.

though

as

of paper, and a periodof over-trading

of the crisis of 1857, which
outbreak
United

States to

and

England

thence

Continent.

longer period than

ten

been

only with the

spread quicklyfrom the
the

341

than

more

were
speculation,

ceased

to

ORGANIZATION

usual

intervened,broken only by
great English banking firm in

of a
(failure
1866, "Black Friday" in the United States,1869). The crisis
of 1873 was, perhaps,on this account, more
serious;it led to
all branches
of trade,
a
depressionof many
years, affecting
local disturbances

and

even

distant countries

Beginning, this time, on

the

Franco-Prussian

like Australia

the
and

war

and

Continent,where
the

South

the outcome
of the

payment

America.

great

of
war

indemnity had led to unprecedented speculation,it found a

ready field in the United States, where there had been an
active speculationin land and stocks, and proved to be the
greatest international

though

the air had

disturbances
A

of

danger;

currency
402.

been

far

crisis in France

States in 1884
and in

more

were

in the

has

known.

restricted
and

succeeding

in their

action.

railroad crisis in the

the chief events

of the next

times have followed

the German

As

period

the American

industrial crisisof 1901.

price level since 1896.

"

Toward

the close

change became
apparent in the
basis of business,namely in the world's money
in which
very
prices are
expressed. The prices of different commodities
rise or fall exactlyin unison, but it is possibleby statistics
never
the change in the average
to show
of pricesor the price
level,as it is called;and a study of recent statistics shows a
rise in pricesso extensive and so rapid as to make
it clearly
a
topic deserving serious attention from the student of commercial
development.
Taking for the basis of comparison the average of pricesin
the decade 1890-1899, the priceof stapleraw
in
commodities
of the

nineteenth

more

in 1882

recent

crisis of 1893, and

Rise

the world

cleared by this great storm,

been

have

banking

United

crisis which

century

342

the United

HISTORY

States had

COMMERCE

OF

risen in 1910

by almost 40%; or, comparing

priceswere
lowest,by 66.3 %,

1896, when
two-thirds.
The change has
with

1910

almost

wares,

for it has been

in methods

of

Effects

offset to

in

certain extent

factured
manu-

provemen
by im-

production,but stillit is very

nearly 30 % compared with

40 % compared with 1896.
403.

less marked

been

of increase

the decade

in the

before

1900, and

world's

great

over

gold production.
in one
Countless factors have contributed to this result,
or
way
another, but economists are generallyagreed that the one cause
overshadowing all others is the increase in the world's output of

gold.

The

metal

has

become

system

purchaser of

priceshave

wares

which

is the

basis of the

"

world's

currency

plentifulthat it has cheapened; and the

has now
to give more
gold for them, that is,
so

risen.

the time of the Californian and the Australian

coveries
gold disfor almost half a century, the world's annual gold output
over
was
one
curiouslyconstant, at a figure somewhat
hundred
million dollars. The discovery of new
gold fields and
effected a revolution.
the perfection of new
The
processes
output of 1896 firstexceeded the figureof two hundred million,
of three hundred, in 1906 and in
in 1899 it passed the mark
fell below four hundred
succeeding years past 1910 it never
From

million.
While

some

classes in the

community

lose in

periodof rising

come
inand bond-holders
whose
prices,particularly
wage-earners
rises slowly in comparison with the increase in the cost
find
of living,the speculators,
and manufacturers
merchants
in such a period a great opportunityto make
and business
money
rapidly expands. The following pages will describe a
noteworthy development of industry and trade iff the period
immediately preceding the World War; and the reader will
when
to it,that the change
reference is made
even
no
realize,
in the pricelevel has been an important factor in the development.

One
advisable.

point particularly
the
of the statistics following,in which

caution,however,

Many

seems

at this

development

MODERN

is

pictured,are

given

no

figuresgrow with
change in the physical amount

and

are

to

an

of

index of the volume

accurate

reduced

are

in terms

of money
the rise in prices,even
when

These

an

343

ORGANIZATION

THE

AND

QUESTIONS

there

is

business

transacted,
of trade only when
they

correspondingwith

extent

values.

the rise of

prices.

TOPICS

386, distinguishthe producer, the

of these gained by
how
each one
Show
transporter,and the consumer.
lose by it?
in organization. Did
one
the advance
any
still kept in storehouses,and
2. Of what
are
large amounts
wares
the

In

1.

example given,

sect.

[Cf. U. S. Monthly Summary, Oct., 1903, vol. 11. no. 4, pp. 1033industry in U. S.]
1095, Warehousing
from
3. Study,
accounts, the effect of an interruptionof
newspaper
of the causes
suggested in the text.
commerce
by one
and consumer,
show
what
4. Distinguishing producer, middleman,

why?

has been

effect

the

on

Service of the

5.

hund.

postalsystem
the

of

Development

Depew, One hund. years,

7. Nobody complains
does not
who

also make

makes

telegraph.
[James in Depew, One

commerce.

flour

the flour

or

modern

system

of

advertising. [Ayer in

chap. 13.]
the farmer

because

or

cloth.

of

who

Is there any

cloth should

Study the biography

8.

to

chap. 5.]

years,

6.

of the

introduction

of the

each

also market

grows

good

reason

wheat

why the

people,or made

wool
n.an

it?

great merchant, and find

some

or

out

whether

for

people and kept only

[James Burnley, Millionaires and kings of enterprise,
a share for himself.
made in business,London, 1884, 2 vols.]
Lond. and Phila.,1901; Fortunes
9. Make
a
genealogicalchart, showing how, from a single ancestor

he made

money

(the medieval
trade

have

out

of

artisan) the

many

money

in modern
specialists

proceeded. [Small and

Vincent, Introduction

of this character, which

society, contains a chart

guidance. See the U. S. Census

or

manufactures

business

may

to

Study

be

used

and
of

for

directoryfor suggestions

present organization.]
trade or manufacture,
have personal knowledge of some
10. If you
its
write a report on the development of
organization and the resulting
specialization.
the advantages to society of (a) fire insurance,
11. Write a report on
of
or
(b) speculation. [Hadley, Economics, chap. 4, or other manual
stock
the
and
produce exchanges
economics; H. C. Emery, Speculationon
7:
of the United States, N. Y., 1896, Columbia
Studies, 283-512.]

of the

344

A
Write

12.

market

the

HISTORY

history of

fair,which

or

has

existed

importance

colonies and

of the older States

The

13.

neighborhood.
of

[Residents

the

Has

it any

original thirteen
early legislation

subject.]

expositionof

London

periodicaltrade, like

will find in local histories and

this

on

for

in your

present?

at

information

COMMERCE

institution

any

ever

commercial

much

OF

[McCarthy, Hist.,vol. 1, chap.

1851.

21.]
produce exchange. [Emery, Speculation;
of
the
exchange.]
biography, reports

the history of

Write

14.

local history and

Note, in connection

15.

has become

capitaland
on

railroads, trusts,
1897,

the

21,

organization

fruitful

bankers

business

present

For

follow

cannot

the

of

importance

the books

see

zation
organi-

economies,

on

department
in the

in

the treatment

of

interestingand

many

[Scribner'sMagazine, 1897, vol.

and

commercial
I find

men;

text, but

bank.

economics

on

of

forbid

space

studying it.]

modern

[Scribner's Magazine,

store.

banking.]

and
no

credit

agencies.
of

historical treatment

[Question
the topic

English.]

in

19.

Character

20.

Write

Jones,

of

benefits

and

available

found

be

business

The

18.

industrial

that this book

periods.

4ff.; restrictions of

retail trade

ff.; manuals

575

p.

enterpriseat

the

etc.

p.

of

topipsmay
The

17.

21,

vol.

times

in earlier

of the modern

Advantages

16.

394, that

sect.

in recent

treated

were

large scale

of

with

complex

so

topics which

out

some

Bowker

and

of

course

the

history of

and

lies,and

commercial

crisis.

[Manuals

particular crisis.

some

period,and periodicalarticles.]
of the gold discoveries
21.
Effect
chap. 10, from Cairnes.]

about

nomics.]
eco-

[Bibliography in

narrative

Palgrave; consult

of

histories of the

[Rand, EC.

1850.

hist.,

BIBLIOGRAPHY
This

chapter touches
duplicate

to

by the manuals
and

Bullock's

on

that

so

the

closelythe field of economics

references

subject.

Introduction

to

the

See

Study

full classified bibliography of commercial

Jones, Economic
book
econ.

which

covers

changes.

crises,N.
most

on

are

supplied in

of

Economics,

N.

crises will be found

1900,

topics treated

specialtopics are

here

pp.

is

necessary
un-

abundance

bibliography Bowker

Y., Macmillan,

fully the

References

which
for

that it seems

Y.,

and

lies,
A

1897.

in Edward
225-245.

D.
The

Wells,** Recent

given above.

346

HISTORY

OF

COMMERCE

flag,and

which
the life
on
sought to destroy the commerce
of England depended by sendingout innumerable
privateersto
it.
France enjoyed,apparently,an extraordinarily
prey upon
favorable positionfor making this policyeffective. The port
carried on more
than half of British foreigntrade ; of
of London

ships which

the

fourteen

or

contributed

thousand
the

through

to pass

at sundown
sailing
ground before it

its annual

record

of thirteen

departures,two
English Channel; and French

thirds had

to

entries and

from

home

port, could reach their cruising

lightagain.

was

privateers,

Some

of the French

privateers
A large one,

inflicted very serious loss on

the British.
captured in 1799, is said to have taken 160 prizesin four years,
and to have cleared for her owners
in Bordeaux
five million
dollars.

forced to gather in convoys,

sailing
Englishshipswere
under
the protectionof ships of war.
Fleets of 200 or 300
vessels were
500 or
not
unusual, and sometimes
1,000 were

together,in dangerous placeslike the Chops of the Channel

seen
or

the entrance

and

to the Baltic.

of English

money

amounted

total volume

of British

the

her enemy

other

fact,not
the

by this

1800

France

and

America

less than

and

exported

to

406.

in the

trade.

her
hand, saw
singlemerchant
In

seas.

Napoleon

those
and

system consumed

merchants, and
perhaps to 2

which
losses,

crush

This

means
commerce

did not
per

the time

entirelyprevent

cent

or

more

of the

to
Still,the effort of France
was
clearlyfutile. France, on
decline until,as a literal

vessel

flyingthe

received

directlyfrom

$300,000 worth
continents

French

of

flagwas on
Asia, Africa,

goods altogether,

only $56,000.

the Continental

System.

"

new

period

be dated from the reopening

can
againstcommerce
of hostilities,
after a brief interval of peace, in 1803.
Napoleon,
the ruling spiritin France, found that a direct contest
now
with the English on their own
element, the sea, was
hopeless.
His

war

schemes

at

conquest of his great enemies

may

be

he
direct invasion,from
which
first,
always deterred by the English sea power; second, a blow
England through her eastern empire, to which the Egyptian

summarized
was

for the
as

follows:

COMMERCIAL

347

POLICY

expeditionwas
preparatory; and finally,the "commercial
strangulation"of England by the exclusion of her goods from
rowed
Europe. This last scheme, to which his efforts finallynarthemselves, simply continued a policy which had already
and ships of
applied in France, of excluding the wares
British commerce.
dinary
Napoleon was able,however, by his extraoron
successes
land, to extend the system of prohibition
of France, and make
far beyond the bounds
it truly deserving
been

of its

of Continental

System. By 1809 he had closed to

and Portugal.
English trade all Europe except Turkey, Sicily,
from
Decrees
named
the place at which
issued
they were
name

(Berlin,Milan), sought
openings through which
trade

and

recruit

Commerce

their

with

thoroughness to stop all

English might carry on their

savage

the
resources

"

for the

with

against him.
Napoleon's plan, was to
war

Europe, accordingto
be carried on exclusively
by his allies or by neutrals like the
Americans; and the English, by being totallyexcluded,were
to

be

starved

into submission.

407. English reprisals

; the positionof neutrals.

"

To

these

England repliedwith various Orders in Council which

matched
in spiritNapoleon's decrees.
As Napoleon sought to
exclude England from European commerce,
so
England sought
of Napoleon's allies from the sea, and,
to drive the commerce
aid her in her measures
furthermore,to make neutral commerce
An
order of 1807 required any neutral trading
against him.
measures

with the Continent

to

stop

at

British station both

going and

coming, to land and reship the cargo, and to pay certain duties.
Its purpose
of
to make
was
England the center and warehouse
the world's commerce.
Neutrals were
placed between the upper
and

the

nether

millstone.

by
were

the

The

merchants

earlystages of

obeying

themselves

the

of either

to the

forced into the seclusion of the embargo

later),and were
with England

orders

punishment of the
had profited
of the United States,who
the war
to extend their commerce
greatly,

belligerent
they exposed
other.

In

led in 1812

to

the

(to be described

declaration

of open

war

348

HISTORY

OF

COMMERCE

408. Failure of the Continental

needed

politicalallies in
of the

of most
The

own.

obstacles

System.

in which

contest

people of Europe

to

with

commerce

the pricesof articles like the colonial

tenfold,what

even
triple,

will remember

that

manufacture

can

forces

they

the

too

the material

the Continent

from

parts of
himself

beet

terests
in-

her

caused

double,
reader
sugar

mercial
Com-

strong for any

restrictions,
political
people who wanted and

all the great ports from

the

The

this period of dearth.

smugglers brought goods to the

would pay for them, despiteall penalties. At
reached

rise to

to

wares

in

were

and

when

allied with

were

England.
practical beginnings of

be dated

were

England scarcely

"

Riga

to Triest

interior

time

were

(1809-10)

closed,goods
islands,Malta,

still,
through the Greek
Spain,the Channel Islands,and Heligoland. Napoleon
had
to
recognize the impossibilityof making the

Continental

System effective. He clad his own

Englishcloth,sold constantlylicenses to evade his
and

sought to

the

introduction

win the profitsaway

armies

in

decrees,
from smugglers by allowing
own

of colonial

products on payment of duties

equivalentto the smugglers'gain. Certain branches of production
and manufacture
furthered on the Continent
were
by
the restrictions on trade,but the Continental
System, on the
whole, resulted only in loss to the people and in the defeat of
Napoleon's own
plans. It furnishes a signalexample of the
like England,
futilityof attempting to crush a sea power
without
element.
meeting it on its own
409. Effect of the
of the

war

England
and the prohibitivesystem

to British commerce,

The

war

and

on

showed

and

France.

was

itself in

"

The

effect

injurious
necessarily
a

decline of British

injury,however, far from being mortal, was

extremelyslight.Smuggling was incessant,and if one opening
to British trade was
closed another was
quicklyfound. When
Holland became
allied to France
and hence closed to England,
British exports to Germany increased rapidly; the German
British goods, but acted
not
people were
consuming more
the goods reached
merely as distributing
agents,through whom
exports.

COMMERCIAL

their old markets.

the last

On

defiance

hope

day

of that

forever

not

the

Czar

England

suffered

part, by the profitswhich

she secured

maritime

entered

and
etc.),
primacy

the nineteenth

open

Even

up, in considerable

from

trade.

1810.

beyond

campaign.

the expansion of

England gained valuable

empire (Malta, Heligoland,Cape

neutral

bade

it crumbled

made

were

before

of Russia

and

System;

whole

in northern

of the governments,

of repairafter the failure of the Moscow

the losses which

coerce

generallyevaded

was

year

the Continental

to

could

Napoleon

continent,and his blockade

Europe, with the connivance

349

POLICY

additions

to

her

Colony, Ceylon,

century with her commercial

beyond dispute. France, on the other

at home
and shorn
hand, emerged from the struggleweakened
stillfurther of possessionsabroad.
Hayti (or San Domingo)
had been lost by a native revolt; the Louisiana territory
had
been
had

established

States; and some

passed into the hands of England.
ceded

410.

to

the United

Other

of the

wars

century.

After

"

the

the world

enjoyed a long interval

ternal
nineteenth
of peace.
The
century has been marked
by inpoliticaldevelopment, rather than by international
the idea that
strife. The growth of the spiritof nationality,
people conscious of likeness in language,religion,
etc.,should
the same
be grouped under
government, has led to several
states; but these have, in general,
sharp strugglesbetween
conclusion

been

of this great

nineteenth

of her small islands

short

and

of

war

great commercial

no

significance. More

lution
standpoint,has been the revoimportant, from the commercial
merly
in South
America, which has enabled the people,for-

by the restrictions of
establish independent trade relations.
by the Civil War
affected,
moreover,
bound

which

closed to the world

supply of cotton.
the lack; a
(one fifth,it

was

for

few

the

colonial

Commerce
in the
years

system, to

seriously

was

United

its great

States,
source

ing
proved incapableof supplyconsiderable
portion of the English people
said then), supported by the cotton
facture,
manuOther

suffered from

countries

of

the stoppage

of work;

and

consumers

350

forced

were

for many

HISTORY

use

years,

COMMERCE

other

clothingmaterials,and
Of
cotton as freelyas before.
that had great
the only one

adopt

to

OF

did

not,

the other

economic
preceding 1914
the war
between
was
Japan and Russia in 1905,
significance
which
Asiatic
an
brought into the rank of the great powers
commercial
ambitions.
country with far-reaching
wars

411. Removal
benefit which

of old obstacles to

Europe enjoyed from the

the ensuing

wars

harmful
This

of

period
to

the removal

was

institutions which
late

commerce.

had

Of

of many

these

in the German
especially
in depriving of a large part of their
German
by nature
rivers,which were
means

any

flourished

of transportation. It

and

of feudal

it were,
none

to

was

this
more

states, and
commercial
the

resulted

value

cheapest and

the
best

impossible to travel far on

German
river without reaching a staple,where the boatman
was
subject to delay, inconvenience, and considerable
On

expense.

the

Rhine,

stations of this character

As

Revolution

remnants

remnants

greatest

the feudal institution of the staple.

than

commerce

French

persisted,petrifiedas

history.

The

"

far

regarded the

as

for

instance,there

where

effect

on

dues

were

commerce

thirty-two

were

stilllevied in 1800.
the flow of the rivers

It was
a
interruptedby cataracts.
these interruptions
great step in progress,
therefore,when
in the first half of
were
removed, as little by little they were
the nineteenth
The principle
of free navigationwas
century.
extended
gradually to include important international rivers

might

well have

was

as

like the Scheldt

and

that in the Middle

parts of the
straits

Elsinore

to

levy

and

toll

interested

on

the Danube.

The

reader

Ages various countries tried

itself. Denmark

leadinginto

at

412.

sea

been

pay

the

will remember
to

monopolize

had

kept its hold on the

the Baltic Sea, and requiredships to stop
it sold out its right
until 1857, when
toll,
by the countries
payment of a lump sum

in free navigation.

Customs

tariffs; the

prohibitive
system.

important topic which

remains

is that

policyas

of commercial

to be considered

shown

"

The

most

in this chapter

in the customs

tariffs.

COMMERCIAL

details of tariff

The

of

be left to later

policymust

chapters,in
separately;place
the generalcourse

the different states will be considered

which

here

be found

can

351

POLICY

only for
for

development, and

which

brief review

consideration

of
of

of the factors

some

explain the great changes.

few years before the outbreak
of the French
lution
RevoFrance
and England had agreed to a commercial
treaty,

Only
which

marked

great departure from

of the old mercantilist

era

of freedom

in trade.

almost

new

system

and

changed

policy,and

the

as

soon

The
as

seemed

outbreak
it had

of peace

return

found

to

of

been
the

relations between

attitude of fierce antagonism which

The

the restrictive principles

promise

new

destroyed the

war

carried into effect,

two

into that

states

has been

described

above.

the tariff systems of both

France

and

England set in the old lines. The tariffs included a vast

number
of duties,both on imports and on exports; the rates
were
high and often prohibitive; the protection of national
maintained.
Similar characteristic
shipping by navigation acts was
marked

the

tariffs of other

this period may

be termed
fitly
commercial
policy.
413. The

the

era

European
of

states,and

in
prohibition

periocLof free trade,1860-1880.

"

The

recent

prohibitive

system held its ground, however, only by force of custom

by

the

active support

writings of French

of small

groups

whom

it favored.

and
The

Adam
English economists,of whom
Smith
the great representative,
had convinced
was
thinking
that the people and countries of Europe would benefit by
men
of trade, and governments waited
greater freedom
only for
favorable
and economic, to lower their
conditions,political
customs

duties.

and

The

movement

toward

in England
local,
findingplace especially

reform
and

was

at

first

Germany. Soon
after the middle of the century, however, it became
generalin
Europe, and led to such sweeping changes that the period
extending,roughly,from 1860 to 1880 has often been called
the free-trade period in commercial
the
history. This was
time when
the technical inventions,
the application
especially

352

HISTORY

OF

COMMERCE

and transportation,
largescale to manufactures
first showing their full power
in increasing
were
productiveness.
At this time a state which secluded itself commerciallyseemed
to share in the great movement
to be renouncing the chance
Industrial states sought markets
of progress.
for their manufactures
of supply for their food and raw
and sources
materials.
the offers for their surplus products
states found
Agricultural
So many
too tempting to be refused.
profitableopenings
appeared everywhere that there was littledread of competition
and little call for protection.
414. Reduction
duties.
of customs
In this period,therefore,
there was
a generaloverhaulingof the old tariffs. Export
duties disappeared. Prohibitions
were
dropped, and import
duties were
reduced.
Narrow
restrictions,
designed to favor
merchant
reformed.
Liberal commercial
ties
treashipping,were
became
the fashion,and Europe was
covered with a
soon
of them
network
had set the exafter England and France
ample
of steam

on

"

in 1860.
because

These

treaties became

of

especialimportance

favored

included generallythe clause of "the most

they now
nation," by which a participantin the treaty was

assured

that it should

of recompense,
The
states.
reduction

of

1882, found
been

in any

share, without
favors

that

delay and

might

be

without

need

granted to

other

concession,therefore,effected a general
slightest
duties in Europe. An English author,writing in
that in the period from 1860 to 1880 tariffs had

raised in

only

of the sixteen

European states. Apart

from these two exceptions,
which
not important, tariffs
were
had undergone substantial reductions; of 2,140 items existing
in 1860 only 136 had been raised,while 900 had remained
the
and no less than 1,104 had either been lowered
same
or
moved
reedly
undoubtaltogetherfrom the list. These reforms were
responsible in part for the remarkable
growth of the
world's commerce
in the period which
they covered.
415. The return to protection. The free-trade movement
two

"

has

been

decided

followed,in the last quarter of the century, by

reaction to protection. Since about 1880 increase

in

354

416.

Colonial

HISTORY

OF

COMMERCE

Colonial

policy.

policy,a topic which has

had for some
can
years a leadingplace in public discussion,
receive only brief consideration in this history. The colonial
of the recent
in time bring forth the
ventures
period may
"

results which

commercial

their projectorspromise; up to the

present the results have been small. Until far into the century
European governments showed littleinterest in the expansion
of their people
of the world.
domestic

the extension

or

of their power
in distant parts
attention was
absorbed by the problems of

Their

and

foreignpolicyin Europe.

The

colonial

question,
however, like every other politicaland economic
question,
assumed
a
new
aspect under the changes wrought by steam
and the telegraph. Distant continents were, by those changes,
to European capitalsthan
brought nearer
parts of the home
increase
of transmarine
territoryhad been before. The immense
which

commerce

marked

the latter part of the century

was

carried

on

people,and
largelyby English-speaking

to

promise

to

states

could
had

Continent

their

broadcast

spread

done.

of the

people

best parts of the world

The

it is true, but

seemed

similar results if they

and

power

had

as

England

alreadybeen

great stretches of territorywere

pied,
occu-

stillfree

began to raise
her flagover
in Africa,Asia,and Oceanica; the
new
territory
Belgian king established his authority in the region of the
quickened to a scramble in the '80's;
Congo; the movement
from

and

claimants

soon

all

of European

parts of the habitable

in Asia and

of European
with

powers.

stilla

them

questionof

the

The

from

yet become

2.

manual
The

vol. 5, pp.

of recent

English

navy

tries
coun-

part of history;it is

day.
TOPICS

AND

table
Prepare a chronological
a

except certain

"

QUESTIONS
1.

world

been

has not

"

France

brought under the sovereignty

what
to do
colonial question
that they have been secured,how

Africa had

these possessionsnow

to govern

descent.

of the

wars

of the nineteenth

history.
during the Napoleonic wars.

391-401, 541-544;

the

sea

stories of

century,

[Social England,

Captain Marryat.]

COMMERCIAL

355

POLICY
its effects.

merce,
[Levi, Hist. Brit, compart 2, chap. 4, reprintedin Rand, EC. hist.,chap. 5; Rose in
Kirkpatrick, Lectures on hist, of nineteenth century, Cambridge, 1902,

3. The

Continental

and

System

59-78.]
4.

Effect

[Audrey

Napoleon's commercial

of

Cunningham,
1910.]

British

measures

on

British

finances.

credit in the last Napoleonic war,

bridge,
Cam-

question of neutral rights. [Schuyler, Amer.

diplomacy,
of
the
of
freedom
the
Two
conceptions
chap. 7; Reeves,
seas, in Amer.
Hist. Rev., April, 1917, 22: 535-543.]
6. The
for independence in South
movement
America, and its commercial
results.
[Helmolt, Hist, of the world, vol. 1; History of South
D. Jones, London
transl.
(N. Y., Macmillan), 1899.]
America,
by Adnah
5.

The

7.

Free

chap. 6,
8.

p.

The

navigation of European rivers. [Schuyler,Amer.

345 ff.]
Dues.
Sound
[Same, p. 306 ff.].

Divide

graphic

chart

of

commercial

diplomacy,

statistics into

blocks,
be chosen as
correspond with periods of commercial
policy; dates may
Be cautious, however, about any
follows, 1800, 1860, 1880, 1900.
clusions
con9.

your

to

that
10.

suggest themselves.

may

Relative

share of different factors in recent

commercial

progress.

Gladstone, Free trade,railways,and the growth of commerce,

Nineteenth
Century (Magazine), Feb., 1880, 7: 367-378; but do not regard
this article as settlinga problem still unsolved.]
11. Significanceof the "most
favored nation"
clause in tariffhistory.
treaties,389-416.]
[Reciprocityand commercial

[Cf. W.

12.

E.

Various

systems

of tariff policy.

[Reciprocityand

commercial

treaties,
461-467.]
BIBLIOGRAPHY
The

best single reference

of the

on

the

commercial
*

conditions

and

policy

Historical

Lingelbach,
Napoleonic period
investigationand
of
the
in
Amer.
Hist. Rev., Jan.,
history
Napoleonic era,
1914, 19: 257-281; this provides a scholarlysurvey of the whole literature
of the subject and can
be used as a guide to further study. Of later works
should be noted Frank
E. Melvin, Napoleon's navigation system, Univ.
of Penn.
thesis,1919, N. Y., Appleton.
is

the commercial

On
**

commercial

Commerce

policy in general the best reference

of

is Bastable's

treats
international trade, the theory
nations, which
policy brieflybut with admirable clearness.
The historyof the commercial
policyof particularcountries will be covered
in followingchapters. A survey
of modern
tariff systems is provided in
*
treaties,published by the U. S. Tariff
Reciprocity and commercial

and

the history of commercial

356

Washington,

Commission,
combines

1898,
of

the

tariff

Colonial

is

referred

relating

to

colonization,

given.

1919;

of

J.

receive
the

W.

Tariff

Root,
the

tariff

commercial
but

bibliography

Washington,

COMMERCE

of

important

can

to

OF

discussion

general

policy
policy

student

there

HISTORY

scant

and

second

Liverpool,

with

question

review

countries.

in

treatment

by

trade,

A.

P.

ed.,

C.

1900,

this

List

Griffin,
and

book.

to

the

The
of

books

references

CHAPTER
ENGLAND:

417.
to

COMMERCIAL

DEVELOPMENT,

1800-1850

of England.
Importance of the commerce
the study of the development of commerce

countries

we

shall take

In returning

"

in different

first the country which

up

the nineteenth
jginning_Q.f
the

XXXV

century, and

at its end

at
as

the be-

well,held

English author has made

the statement
that "in the eighteenthcentury foreigntrade
of so little importance to the majority of the inhabitants
was
of England, that with one
important exception (wheat) the
whole of it might have been destroyed without
making any
appreciable change in the habits or wealth of the people."
is an
This statement
exaggerationwhich can hardly be supported,
but yet it suggests a truth of great importance; English
in 1800 was
commerce
merely an aid to the development and
welfare of the country, while it had become
in 1900 absolutely
loading position,England.

to the

necessary
418.
The

An

existence

mere

of the people.

1800-1850.
growth of commerce,
the second half of the
rapid growth was

Statistics of the

period of

nineteenth

most

century, and

consideration

"

this period will be reserved

littlelater.

development in the first half

the accompanying table,which

The

of the century is set forth in

gives the figuresfor imports retained

the

exports

valuation

in

of
use

As the population doubled

country, and
the

to

for
of

system

of these items.

in this period it is apparent that

than
which
more
foreigncommerce,
important place in the
taking a more

before. In the

in the

produce, according
this period,with the sum

home
in

for special

doubled

in value,

national

economy

first quarter of -the century, when

357

was

than

England

358

HISTORY

passingthrough
recovering from

was
was

it made

but
time

COMMERCE

the struggleof the Napoleonic

trade
their effects,

in the twenty-five years

up

that had

OF

been

If

lost before.

we

was

wars

nearly stagnant,

that followed

measure

and

commerce

for the
not

by their physicalquantity,the
far more
increase was
striking;pricesof many
articles,
cially
espeof the manufactures
exported, fell during this period,
bulk of trade would be represented
and consequentlythe same
by much smaller figuresin pounds sterling.If we returned to
of measuring trade,which retained
the old method
official"
of market
values that did not
change with the movement
of measuring an
prices,and which therefore affords a means
should find,comparing the
increase in the bulk of trade,we
two
from 24 million
years, 1800 and 1849, that exports grew
increase
to 190 million pounds sterling,
giving the enormous
by

the value

of the wares,

but

"

of 682

per

cent.

ANNUAL

AVERAGE

TRADE

OF

(Millionsof Pounds

419.

"

in the relative

THE

and

UNITED

KINGDOM

Dollars)

importance of different exports.

We
can
expect, by studying the details of exports in this
period,to find the branches of production in which the English
to supply other people
were
strong enough to enable them
and to extend their commerce.
Taking the figuresfor 1850,
Change

COMMERCIAL

ENGLAND:

find the

we

stapleof

evidence

increased

It had

it

in value, and

of

formed
over

less than

now

It had

fourth.

one

been

of the
into

thrust
had

destined

century, the

remain

to

throughout

made

up

other

changes in the list we

28 out

steel,the

and

seventh

one

the

Cotton
fffnmncr T^n^j^T^P-gp^yj^^
Iparh'np-Jfpm

iron

in quantity.

stillmore

place by the rival textile cotton, which

was

Among

and

manufactures

ceased, however, to be the standby of the English

exports instead

as

old

important changes. The

some

since 1800

exporter; this item

the second

of

359

1800-1850

English export trade,woolen

the

had

yarn,

DEVELOPMENT,

of

are

those

which

hardware

remained

steam-engines and

and

yarn

factures
manu-

total of 71 million

interestingbecause

items

become,

and

they

below

the

pounds sterling.
the growth of the

note

the

coal
still so

small;
million-pound mark
are

machinery, pottery,

and

Some

exports.

tin

among
were

plate.

It is apEnglish manufactures.
parent
marked
that this period was
by a rapid development
of English manufactures.
Taking two manufactures, typical
420.

of

an

the

of

Development

industrial state,iron and

advanced
increase

"

in

production is estimated

cotton,
at

over

we

find that

tenfold

or

quantity of populationhad
merely doubled it is apparent that its quality,or the character
of its occupations, underwent
a
revolutionarychange. It is,
in fact,in this first half of the nineteenth
century that the
latent in the inventions of the eighteenth
enormous
possibilities

more

than

1000

cent;

per

as

apparent and

century became

the

were

realized.

The

tions
great inven-

enough, in themselves,to transform industry.

They needed to be developed by practicalbusiness men, who
could secure
the necessary
capitalto utilize them to the best
advantage,who had the talent for organizationenablingthem
to build up an
efficient force of laborers,
who
could stimulate
not

were

further

technical

improvements

and
great inventions,

who

enablingthem

and

Some

buy

to

necessary

on

supplement the

could

develop a mercantile system

sell largequantities
tage.
to good advan-

English manufactures

carried

to

in the home

remained

of the

"domestic"

workman,

dustrie
in-

but the most

360

advanced

HISTORY

OF

COMMERCE

thug
factory system, and were
enabled to get the full advantage from technical improvements.
421. Introduction of machinery.
It is in this period that
the knowledge and experiencenecessary
to the proper
handling
of machinery spread from narrow
circles to broad groups
of
The
market
for machinery was
thus established,
and
men.
the manufacture
underwent
of tools and machines
a corresponding
"difficultto point out any
development; in 1836 it was
leadingmechanical process, the details of which have not been,
and the article produced brought
by this means,
simplified,
from other countries sought
to perfection." Inventors
nearer
British shops to perfecttheir devices,and British factories in
which
Some
of the best textile machinery
to introduce them.
of this period was
invented
in the United
States and other
but was
first put to practicaluse in England.
"countries,
422. Steam
and railroad transportation. It is in
power
this period,also,that the steam-engine became
a
practical
force in English manufactures.
The
steam-engine had been
introduced
in Birmingham in 1780, but the number
of engines
in that risingcenter
in -1815 only 42 and
of manufactures
was
in 1830 still only 120, while in the nine years followingthe
In 1835 the textile factories
number
to 240, or doubled.
rose
"of England employed only a little over
50,000 mechanical
horse-power,and of this total nearlya quarter was stillobtained
from water-wheels.
The beginningsof transportationby steam
railroads can
1830.
be dated, as said before,from about
423. Gradual
development of the cotton manufacture.
The statement
in a previous paragraph, that time was
needed
to develop the inventions before they could be made
to serve
the interests of manufacturers
and merchants, is borne out
by the history of the most important manufacture, that of
Most
of the basic inventions
in cotton
ootton.
machinery
made
in the last quarter of the eighteenthcentury. As
were
early as 1812 a man,
using the improved appliances,could
could be got from
the old
as
produce 200 times as much
1830
until 1820
that
not
or
spinning-wheel. Yet it was

important

to

the

"

"

"

362

been

almost

HISTORY

OF

COMMERCE

sufficient for manufactures

in 1800, needed

now

be

supplemented by large imports from abroad; silk

the list of textiles away
taken the third place on
from
and hemp.
to

"

in importance of trade with distant continents.

Increase

If

attempt to trace the changes in the direction of English

we

in the first half of the nineteenth

the

maze

out

as

evident

looked
and

important. The

and

but
steadily,

with

jealousy on

checked

the

restrictions.

We

United

States

ports of the continent

third

one

of the

total

(1849) nearly one

with

exports

our

"It

their

distance

amounted
to

the

great

affords

that

than

of the

and

export mainly of

century, when

Napoleon,

United

millions
across

raw

the

as

middle
of the

are

removed

to

Atlantic,have
of our shipments

the

population fifteen times

States of America, and with
a

to

our

wants, which

of exchanging for the

The

at

the

much

as

strong evidence

half of the value

one

productions suited

looms."

the

tomer,
cus-

trading relations with

English author in 1838,
States of America, which

twelve

of Europe, with

naturallydesirous

mines
an

of

an

of 3,000 miles

us

more

whole

abundance
are

from

States.

our

United

populationof only
to

as

the

to

the United

England's best

away,

closed by

unsatisfactory
footingupon which
Europe are established,"wrote
"that

the British merchant.

English exports, and

fifth.

development,
by severe

unimportant
America, Asia, and

with

beginning of

were

states

Africa stillremained

far and

was,

the

taking, near

continental

of Europe for the field of

importance of the trade

Great

other countries

industrial

standpoint,but
with
measure
increasing

Australia dealt in

The

of the

Most

look outside

must

standing

slowlyas a rule,and did not

which
English trade was making

commercial

the

426.

trade with

England's

expansion of English trade.

from

facts

exchange of commodities

free

find,in

we

grew

the progress
parts of the world.

in other

century,

figurespresented for study, some

of

in Europe grew
keep pace with

flax

425.

trade

"

had

United

products of

States paid for the

materials,and

wares

expeciallyof

as
an

they
our

by

cotton.

160

Jaltgmant,

drttn

120

HO
f Co., Sew

1'arh

100

80

"0

40

10

CO

80

100

120

110

160

180

COMMERCIAL

ENGLAND:

DEVELOPMENT,

363

1800-1850

During most of this period England drew three fourths of her

supply of raw cotton from the southern States.
with

Trade

427.

distant countries.

other

"

Other

American

of the British manufacturer;

good customers
from England in 1849 than
Brazil,for instance,bought more
did England's nearest
pendent
neighbor,France.
Among other indecountries

were

China

states

country had

been

deserves

included

mention.

in the

Trade

monopoly

with

of the East

that
India

it was
thrown
to British
1834, when
open
merchants
in general; the trade grew rapidly thereafter,
but
suffered from the restrictions imposed by the Chinese
until,
of 1842, the English
War
as
a result of the so-called Opium
until

Company

secured

the cession of

Hong-Kong

and

the

opening of

number

of ports.
428.

between

country
British

Trade
one
were

with

British

fourth

and

sent

to

India, almost

one

dependencies:

India.

"

In

1850

third of the .exportsof the mother

British
continent

dependencies. Among
itself if

we

consider

these

its area,
the complexity

population almost equal to that of Europe, and

of its peoples, took the leading place. British India
tenth of the English exports. So long
alone took about one
controlled by the East
with
this country
the trade
was
as
declared
India Company
it remained
small; and the company
and peculiarcustoms
of the
that because
of the backwardness
The
natives it could not be increased.
privilegeof trading
in 1793, but
with India was
granted to individual merchants
restrictions that it led to slight
under such burdensome
results;
and the nineteenth
century opened with the Indian trade still
but a small item in England's total. In 1813, however, the
trade was
and the effect was
at last thrown
immediately
open,
manifest; in the firstyear of the new
policyprivatemerchants
did the company,
and
than
soon
they had
exported more
of by the monopdeveloped the trade to an extent undreamed
olists.
India proved to be just the country which
English
merchants
were
seeking as a market for the expanding cotton
manufacture.
In the eighteenthcentury protectionwas. deits

364

HISTORY

OF

COMMERCE

England againstthe competitionof Indian textiles,

the tables were
in India
but soon
turned, and manufacturers
being ruined by the importation
complained that they were
of English cotton goods; about 1850 British India took more
than any other country, and nearly one
manufactures
cotton
sixth of the total exports of this most
important commodity
of England.
manded

in

429.

importance to
American

America

in North

Colonies

British India

and

the

Australasia.

the two

came

Australian

and

colonies.
in

groups

The

"

in

of the North

colonies

spite of

Next

on

the

their

political
than the republicon
far less important market
a
allegiance,
border which had declared its independence in
their southern
1776.
They supplied,however, a fairlysteady and a growing
demand
for English products which put them in sharp contrast

continent

of North

with

West

the

America

Indian

were,

colonies.

These

island

colonies

had

been, in the early part of the century, the field of rich returns
in trade, but their productivenessdepended on
a
system of
and when
slave plantations,
slaverywas abolished in them in
1833

their

declined

commerce

Thanks

the

to

wide

rapidly.

extent

of

her

colonial

dominions,

England could hope to gain in one part of the world if she

lost in another,and the development of the Australian colonies
in this period promised to atone for any decline in the West.
The
British flag was
first raised in Australia in 1788.
The
colonies were
out of the track of the trade of the time,
young
and
seemed
of such small importance that one
made
was
a
penal settlement, but the natural resources, especiallythe
induced
fitness for sheep-raising,
a
steady growth of population,
and a considerable trade,even
before the gold discoveries
in the middle

of the century.

AND

QUESTIONS

TOPICS

try's
speak of the "importance"of a counreflects upon
this question will find
commerce?
The reader who
that at least three different standards are taken to measure
importance.

1. What

do

we

mean

when

we

366

A
Review

4.

HISTORY

the substance

the great inventions

and

OF

COMMERCE

ff.,or read the account

their effects in Rand, EC. hist.,chap. 2.
of sections

Mining and metal production up

5.

245

to

of

Soc. England,
[Traill,

1846.

6: 194-199.]
6.

Coal

7.

Development

mining.

[Same,

6:

367-379.]

of the

English transportation system.

[Same, 6:
Hist. vol. 1, chap. 4; Ward, Reign, 2: 83-111.]

199-211; McCarthy,
of the textile manufactures.
8. Development

[Soc. England, 6: 69-

75.]
Study the items in

9.
10.

Review

sect.

that the United

note

continents

412,

in the way
suggested for sect 419.
the tariff policy of the period in Europe;

sect.
on

States had

424

low tariff,
and

that trade in the other

free.
practically

was

The

Opium War.
[McCarthy, Hist.,vol. 1 chap. 8; Robert
Douglas, China, N. Y., Putnam, $1.50, 1899, chap. 8.]
11.

12.

Ledger
13.

India

East
and

in the nineteenth
Company
chaps. 12, 13.]

[Willson,

sword, vol. 2,

Commerce

of British India.

[William W.

Empire, third ed.,London, 1893, chap. 19;

of Dalhousie, Oxford, 1890, chap. 10.]

same

Hunter, The Indian

author, The Marquess

in the nineteenth century. [George

Bay Company
history of the Hudson's Bay Company, N. Y., ScribBryce, Remarkable
London
(N. Y., Dodd), 1900,
ner's,1900; Willson, The great company,
vol. 2, chap, 36; G. R. Parkin, The great Dominion, London, Macmillan,
14.

The

century.

K.

Hudson's

1895, chap. 8.]

plantationsin the British West Indies. [A. K. Fiske,

The West Indies,N. Y., 1899, chap. 10; James
Rodway, The West Indies,
London
(N. Y., Putnam), chaps. 7, 10; F. W. Pitman, Development of
the British West
Indies, New
Haven, 1917, chap. 1.]
16. Emancipation of the slaves and its results. [Rodway, chaps. 14,
15.]
17. Development of Australia.
[Encyclopedia; Helmolt, Hist, of
World, vol. 2, p. 252 ff.]
15.

Slave

"

BIBLIOGRAPHY
Useful

references

can

be obtained

on

England,

as

on

other countries

later,by consulting the Subject Index of the British

logue
Museum
Library for books publishedsince 1881, and the A. L. A. Catafor books in print,of a popular character.
Of the general histories of England in the nineteenth century, that by
able
London, Longmans, 1878-86, devotes considerSpencerWalpole, 5 vols.,
the teacher's
attention to economic
developments, and is worth
*
of
is
attention. Justin McCarthy,
own
History
our
times, better suited

to

be

considered

ENGLAND:

the

to

attract

in

an

in

the

of

Traill's

changes

revised

1913,
The

best
from

notices

smaller

reader.

with

Smart,

the

and

London,

1919,

is

useful

very

student
the

1912,

of

history

Commerce

editions

the

covering

1910-17,

and

have
aims

to

**

of

to

London,

print.

first

half

and

the
little

volume

graphic
of

the

of

outgrowth
special

is
it

charts;

needs

the

of

topics;

small

the

to

tending
ex-

comparatively

of

an

Levi,
Cunningham

the

pay

serve

Leone

other

to

confined

annals

years

is,

ordinary
successful

of

aspect

of

published.

the

Other

**

statistics

century,

commercial

policy

The

review,

which

study

nineteenth

briefly.

historical

the

treats

proper

careful

his

of

1801-1830,

M'Culloch,

bring

relation

the

country.

Economic

volumes,

been

is

its

to

England,

Bowley's

Bowley's

compilation.
a

to

in

in

number

volume

commendation

of

out

history

prize,

commerce

making
nation

like

industry,
2

that

volume

treatment

Cobden

particular

William

in

book,

for

written

trade

of

noteworthy

statistical

McCarthy
last

commerce.

modern

changes

development.

Chapman's

essay

is

by

written

undated.

Co.,

last

for

to

progress

of

Making

economic

English

commercial

too

economic

and

The

1899.

cordial

unfortunately,

his

of

most

Y.,

most

commercial

important

contribution,

however,

the

attention

commerce

it is

published

scant

Mifflin

English

1878;

to

of

to

useful

of

manuals

attention

and

history

devotes

but

century,

Houghton,

1763

some

Slater,

edition

of

**

been

vols.,

of

description

has

deserves

which

Gilbert

is

but

pays

chapters,

topical

N.

367

1800-1850

short

history

Series,

that

desire

who

into

shorter

England
books

smaller

divided

Nations

Social

political

style.
the

of

Story

students

it is

student;

interesting

Of

DEVELOPMENT,

COMMERCIAL

of

second,

the

revision
down

Tables

of

dictionary,
of

Porter

to

date.

by

F.

W.

Page,

statistics,

importance

Porter,

are

marks
W.

of

of

sources,

subject,

Commercial

ed.,

1815-1914,

statistical

length

tendency

same

**

London,
at

**

which

Hirst,

Progress
various

London,

to

CHAPTER
ENGLAND:

430.

REFORM

Burden

in

shall consider

on

COMMERCIAL

of

attend

must

we

and

trade

development

English commercial

We

OF

of tariff

this survey
of the
half of the century

XXXVI

groups

to

of

manufactures.

English trade

in the

first

important change

most

After

"

lies mainly in this

policy,which

three

POLICY

period.
of the

topics: the reform

generaltariff;the repealof the corn laws, protectingagricultural

wheat; and the repeal of the navigation
products,especially
laws, protecting shipping.
England entered the nineteenth century with a cumbrous
inherited from the past, from which
of tariff regulations
mass
had been pruned by statesmen
like
only the worst excesses
laws had accumulated
for 500
Walpole and Pitt. Customs
"

to the

years

contradictory,sometimes
which
a

obtainable

was

manufactured

or

another

enforced

with

mummy

from

unintelligible."Hardly

abroad, whether

it

product, escaped the

of these

The

laws.

articles which

raw

duties

the

customs

material

man
was

tariff.

or
one

heavy and were

who
imported

were

non-enumerated

nearly $1,000. Internal

at

escaped

was

ware

any

duties levied under

unreasoning severity; a
told that it
Egypt was

manufacture, dutiable

confused, often

1,500 statutes, "often

of

amount

The

taxes
taxes

reached
on

the

an
so
on
heavy that they amounted
publicationof books were
ordinaryedition to one seventh of the whole cost, and exceeded

the

remuneration

had

to pay

when

it

excise

or

was

of the

only an
brought

not

internal tax

author.

The

import duty

on

in

on

cotton

his

raw

manufacturer
cotton

foreignship); he had to
calico which he printed; and
a

368

(higher
pay

an

he had

ENGLAND:

to

taxes, in

pay

materials

he

OF

REFORM

used

another, on all the important

flour, starch, leather,
manufacture,
could not
timber, brick,tiles. A man
it,or feed and clothe his workmen,

form

one

in

or

"

dyestuffs,
paper,
build a factory, or run
without
paying taxes at every step.
431. Prevalence
of smuggling.

soap,

"

of the

burden

369

POLICY

COMMERCIAL

partialrelief from

the

obtained

by smuggling. Tariffs
could hinder but could not absolutelystop the natural movement
of commodities.
a
Smuggling was
regular profession,
the regulartariff,
with a tariff modeled
but enough lower
on
to invite business; the smuggler's charge varied ordinarily
15 to 40 per cent ad valorem.
from
of the
Large numbers
common
people were
leagued with the smugglers to defy the
the legislators
themselves,
law, and the upper classes,even
A member
of the
accepted smuggling as a matter of course.
House

customs

of Commons

was

once

flourished

his silk bandanna

kerchief
hand-

that
House, saying: "Here is a foreignware
is totallyprohibited. Nearly every one
of you has a similar
illicitarticle in his pocket. So much
for your
prohibition."
before the

The

government

framed

its duties with

an

eye

to the

ease

of

evading them; it laid a higher duty on fancy silks than on

ling
at a disadvantagein handplain,because the smugglers were
the former, which had to be brought in at once, before the
fashions changed, while plaingoods could wait the smuggler's
convenience.
432.

Beginning of

the reform

and

movement,

England's

1820.

"

commercial

More

and

capacity
the evils and abuses of the system appreciated.
were
increased,
ripe for a change, and the movement
By 1820 the times were
initiated in that year by a petitionfrom a group
to reform was
of London
The
merchants.
petitionurged the principleof
Adam
free trade which the economist
Smith had supported in
his "Wealth
of Nations"
(publishedin 1776), and prayed that
all restrictive regulations,
of the
not
imposed on account
includingall duties of a protectivecharacter,might
revenue,
be repealed at once.
more

as

time

went

on,

370

of

Reform

433.

HISTORY

COMMERCE

OF

tariff under

the

1825, included

about

condensation

tion and

(2) Reduction

laws.

the

into

form

manageable

"

of the

of the duties

removal

or

The

early
under the leadership of_Husfollowing:(1) The simplifica-

stages of tariff reform, effected

kisson

Huskisson.

on

customs

materials.

raw

of the duties on manufactures,generallyto 30

(3) Reduction
that such a duty was
the principle
ample
per cent or less,on
could be made
at home
to advantage.
if a ware
for protection,
removal

(4) The

affected

restrictions had

goods, and

of the restrictions

of most

materials, partly manufactured

raw

themselves.

artisans

even

keep skilled workmen

tried to

export. These

on

The

found

but

home,

at

had

government

that

it

forced them to evasions,and

discontented,
left the
they had once
kept them from coming back when
still
country: it left them henceforth free to emigrate. It was
unwillingto allow machinery to be exported freely,for fear

merely made

that

other

them

would

countries

build

competition in

up

of making
recognizedthe difficulty
and relaxed them
effective,
greatly.

but

434.

and

results of the
those

industries

removal

exceeded

taxed

for the

only

small

done
The

market

before in
work

on

750

Peel, who

did

only

slow

the

system

of

wool.

raw

progress

and

high

in

rapidlynow

the

rapidlyafter

export of

made

the

of

revision

secured

duties

decade

The

and

than

it

century.
was,

however, stillfar

incongruitiesand

business

stage in the advance

Sir Robert

the

had

more

many

oppressive by the

l^*W^fci^^^

stuffs increased

under

of reform

the tariff retained

second

gained by the

prohibitionon

advanced
prohibitions,
had

anticipations.Not

The

"

support of others,but the protected

themselves

silk manufacture, which

reform.

the

(likecotton, for instance) had

export of woolen

of the

of

completion

benefit which

previously been
The

later

reform

industries

laws.

its restrictions

it

Results

factures,
manu-

in 1842

interests
to

of

free trade

secured

was

from

complete;

felt still to be

the- country.
was

The

effected under
of duties

the reduction

^^^^^""""""""H

and
articles,

in 1845

abolished

430

out

of

total of

ENGLAND:

REFORM

OF

371

POLICY

COMMERCIAL

Peel's reforms
left still a considerable
import duties.
and the final acceptance of
element of protectionin the tariff,

813

free trade waited

tillGladstone's

laws

1860, which
lowered and then swept away
import dutiesT"y the hundred,
in its present shape.
and left the English tariff substantially
The

system of "free trade"

of 1853

and

England has since maintained

does not imply a complete lack of import duties; more
than
fifth of the total revenue
from taxes is now
one
yielded by
the customs.
Import duties,however, have been restricted
few commodities, and are
to a very
"revenue," not "protective"
that they do not encourage
the
duties, in the sense
production in England of anything which can be produced
more
cheaply abroad.
435. The

corn

and

laws

great changes which

which

their

turned

effects.

England

into

interests which
country, the agricultural
had

to

the

manufacturing

controlled

Parliament

in framing
of protection
good measure
the tariff laws.
The importation of grain was
prevented by
high duties; and the export was favored by bounties when the
plentifuland the price fell below about
supply was relatively
and more
the
$1.50 a bushel.
more
rare
as
Export became
home

themselves

Previous

"

assured

demand

industrial

for foodstuffs

population; and

century it became
could

ever

produce

at

grew

toward
more

home

with

the

increase

in

the

the close of the

eighteenth
serious questionwhether
land
Engsufficient food for her growing

made
the laws so as to
to arrange
people. An attempt was
keep the priceof wheat steady at about 48s. a quarter ($1.50
but the laws did not succeed in preventing violent
a bushel),
fluctuations in the price. At the close of the great wars, in
demanded
continuance
of the
a
1815, English agriculturists
had afforded them
protectionwhich the stoppage of commerce
and the import of foreignwheat was
prohibitedso long as the
price at home did not rise above 80s. (about $2.50 a bushel,
about $.30 for the quartern loaf of bread). Landlords
or
got
high rents as a result,but farmers who leased their land suffered
when
were
prices fell to a reasonable level,and consumers

372

HISTORY

OF

forced to pay extortionate

of thousands
of the
of starvation

verge

(about $3.50

112s.

436.

the

laws.

corn

reform

of

The

"

of

dreds
prime necessity.Hun-

working classes
the

by

were

price of

brought to the
wheat
risingto

bushel).

Movement

pricesfor

1817

in

COMMERCE

English manufacturers
of

House

Commons,

for

even

repeal of

after the electoral

1832, afforded but little representationto the

manufacturingand mercantile classes;four fifths of its members

and though they made
belonged to the landed interests,
some
slightconcessions they refused to grant adequate relief. It
for the opposition,which
was
organized under the
necessary
of the Anti-Corn-Law
name
League, to carry on its campaign
outside of Parliament; it could report, at the annual meeting
of 1843, that nine million tracts had
been distributed,
and
Inside of Parliament
meetings had been held in 140 towns.
the movement
engaged the energies of orators like .Cobden
in it a question of life and death
and Bright, who
for
saw

English manufactures.
the

which

How

such

the

was

manufacturer

to

pay

costly food

supply required? To
whom
he to sell his goods when
so
was
largea proportion of
and
English incomes had to be expended for bare necessaries,
when
England refused to take from foreign countries the
commodities
which
they offered in exchange? Even
among
the sole gainers.
the agriculturalclasses the landlords were
The
laborers were
serted
aswretchedly poor; Cobden
agricultural
wages

that

of them

none

in manufactured

they bought
the

smaller

of time

passage

spent

of

amount

laws

corn

and

with

English manufactures

and

its

the

bad

of

and

times

on

bad

year

that
than

"

to

of the
worse.

industrial
The

in business

bination
com-

in 1841

manufacturing population to seek

estimated to be earning
while other thousands
were
relief,

forced
poor

harvest

significance. With

growth

changed from

bad

$7.50

excepted, and

were

population conditions
a

about

than

more

articles,if shoes

people of Brazil.
437. Repeal of the

the

thousands

the average

of

the

less than

a
shilling

week.

It needed

only

374

HISTORY

OF

COMMERCE

policyof reprisalwhich forced England to admit American

ships freelyto English ports, and threats of similar action by
European countries led in 1824 and the years immediately
followingto a series of treaties putting foreignships on an
equalitywith English.
439. Final repealof the navigation acts.
The navigation
had grown
into a most
acts
complicated system, and it is
impossibleto describe in detail their gradual relaxation. By
1830 English ships had lost all their privileges
except in the
coastingtrade,and in the trade with and between the colonies.
Even this amount
of protectioncame
to be regardedas a burden
and was
abolished
but on shippingitself,
not only on commerce
in 1849 and 1854.
Every step in the reform of the navigation
acts was
bitterlyfought by adherents of the old system, who
denied protection
prophesied ruin to Englishshippingif it were
How
and left to make
its own
the
groundless were
way.
be seen
in the following
fears of those who opposed reform can
table, giving in millions the tonnage of English ships in the
period 1800-1850:
1800, 1.6; 1810, 2.2; 1820, 2.4; 1830, 2.2;
a

"

1840, 2.5; 1850,

3.5.

AND

QUESTIONS

TOPICS

Would
a
equally burdensome?
and chisels
by taxing saws
country fare as well if it raised its revenue
instead of cigarettesand playing cards?
2. What
the effects of smuggling on
(6)
(a) the public revenue,
are
honest
consumers?
merchants, (c)
3. How
do the rates of the English tariff,
as established at this time,
1. Are

with

compare

On

4.

[See

6:

The

what

corn

of

equal

amount

of the present tariff of the United States?

articles are import duties still levied in Great Britain?

the rates

Statesman's

5.

EC.

all taxes

Year-Book,

Britain,customs.]
[Morley, Cobden, chap. 7; Rand.

index, Great

laws and their effects.

hist.,chap. 9.]
6. English agricultureunder

the

corn

laws.

[Traill,Soc. England,

75-84, 211-217.]

laws.
[McCarthy, vol. 1,
agitationfor repeal of the corn
chap. 14; Morley, Cobden, chap. 6.]
laws.
8. The repealof the corn
[McCarthy, vol. 1, chap. 15.]
7.

The

the

after

agriculture

English

9.

375

POLICY

COMMERCIAL

OF

REFORM

ENGLAND:

[Traill, Soc.

repeal.

England,

6:

599-607.]

404-421,

What

10.

above,

358,

sect.

or

main

the

study

the

of

features

main

the

were

navigation
in

provisions

Rand,

acts?

EC.

[See

hist.,

dix
appen-

1.]
Conditions

11.

vol.

6:

Reign,

Ward,

392-404;

merchant

the

of

Development

12.

the

when

time

Acts

repealed.

were

[Lindsay,

6.]

chap.

3,

the

at

marine.

Soc.

[Traill,

England,

111-118.]

2:

BIBLIOGRAPHY

single

best

The
**The

of

fall

and
*

History

on

Cunningham,

W.

of

best

London,
are

and

Cobden,

1905,

1904,

subject

navigation
third

The

480-501,

be

is to

Mongredien,
**

Free-trade

Similar

in

concluding

**

scope

chapters

in

study

brief

of

the

John
the

bread

in

of

History

Life

the

but

laws

corn

London,
Review,

temp.

English

Life

Bright,

tax,

Con

compass,

**

Morley's

life under

of

memories,

law

in

found

life under

forties:

thoughtful

in

last

acts

are

of

volume

in

are

protection,
**

hensive
compre-

laws,

corn

is

not

suited

reading.

topical

the

with

conditions

of

Nicholson,

S.

J.
is

assignent.

Trevelyan's

Corn

Snowden's

64-71.

88:

The
in

J.

and

London,
to

K.

topical

laws

corn

hungry

The

by

more

mentioned

Armitage-Smith,

movement,

pictures

Graphic

provided

to

Macaulay

George

1913.

1904;

the

of

account

may

Holland,

changes.

projected

recently
The

suited
Free-trade

**

Of

1913.
be

and

movement,

is well

which

movement,
is

the

London,

books

elementary
free-trade

is Bernard

chapter

this

of

topics

1840-1850,

protection,
more

of

the

on

source

periodical

Lindsay.
literature:

Contemporary

years

687-707.

of

the

treated

Review,

navigation

by

Holland,

The

best

John

acts,

recent

Rae,

1905,

and

87:

**

at

considerable

contributions

English

666-675;

English

length

Hist.

shipping
J.

H.

Rev.,

the

on

under

Clapham,
1910,

25:

CHAPTER

COMMERCIAL

ENGLAND:

440.

table

accompanying
down

to

in the

previous

the

merely

the
as

of

imports

and

gives the

wares

imported

would
than

foreign

of

have
under

the

table, therefore,
the

preceding

have

left

is not

shipped

other

that

the

of

giving

remind

to

making

If

the

figure

both

as

in

that

year
less

pounds
values.

with

This
of

table

the

of

student

this

the

between

gap

under

1854;
of

"real"

the

sum

precious metals).

million

directly comparable
and

again.

imports

the

foreign

items, the

in

twenty-eight

enjoyed

re-exports,

changed

values

try,
coun-

indicate,

English

away

the

to

trade

the

To

(since they

imports

vacant,

years

of

(excluding

at

chapter;

few

but

system

new

column

in

produce.
the

An

"

figures refer, as

consumption

Irish

1850.

English

The

which

of

entered

been

and

"official"

of

for

added

trade

of

course

War.

doubled

and

valuation

system

World

add

be

wares

exports),

gross

the

commerce

system
old

of

since

commerce

imports

to

middlemen

these

amount

the

forth

of British

share

colonial

The

sets

of the

table,

exports

to

however,
and

English

outbreak

1850-1914

DEVELOPMENT,

of

Development

and

XXXVII

two

tables.
441.

trade

of

the

sufficient
Some
but

to

idea

and

at

progress

show

"

the

and

mere

glance

world

at

about

the
of

close

be

middle

of the

has

British

of

been

trade,

period,

only

from
to

foreign

the

to

be

will

since

made

not

in

Empire
table

this

at

gathered

total

estimated

of the

other

of this

large, can

the

cent) of the

that

progress

importance

amounted,
per

world.

England

of the

'to the

(23

of

Importance

1850.

England

fact

it

that

nearly one-fourth

trade

of

the

world,

period, (1912), in spite of the commercial

countries, it

was

376

still one-sixth.

If

we

ex-

ENGLAND:

COMMERCIAL

ANNUAL

AVERAGE

STERLING,

tend
North

TRADE

to

one-fourth
A

EQUIVALENTS

embrace

Empire,

of the

considers

within

that

trade

lay within

of the

the United
world's
442.
commerce.

total sea-borne
Chief
"

causes

The

brieflyas

advanced,

people

in the

and

in

in the

ing
form-

of this group

sea-borne

39 %

over

trade

even

between
between

was

of which

over

of which

by

land-

across

more

of the world

was

the trade
was

trade

trade, is

trade

(in value)

amounted

Kingdom

DOLLARS

only

Thus

The

OF

consideration

the Empire

world.

MILLIONS

world.

the British Empire, and

terminals

MILLIONS,

from

15%

foreign countries.

IN

IN

the total sea-borne

it is estimated

KINGDOM,

find the trade

of the

omits

377

1850-191^

only the little islands

depending on them and

not

we

trade

which

survey

and
frontiers,
impressive. Of

most

UNITED

THE

Sea, but all the countries

the British

and

OF

ROUGH

WITH

view

our

DEVELOPMENT,

in 1912
countries

the Empire
one

both

or

half of the maritime

terminal

one

itself to about

was

40 %

in

of the

trade.
of

rapid development of English

of this development may
be sumcauses
marized
follows: (1) The
the
English people were
industrial and mercantile
ability,of any

world.

the

They had

trade, and

the start

reaped

the

on

others

benefits

of

in

their

factures
manu-

early

378

trainingin

this

England, and
its coal,made
to

HISTORY

period. (2) The

physicalresources

geographicalsituation of
of the country, especially

the English superior to most

peoples and

equal
manufacture
by

this age of transportation and

(3) The commercial
policyof the government

steam.'

people to

make

the close of the

told

COMMERCE

in

any,

the

the

OF

Benjamin

the

of their

most

eighteenthcentury

an
"

of his idea

Franklin

allowed

advantages. Toward
had
English statesman

to make

England a free
especiallyfitted by
port, for which he said the English were
connections, and
nature, capital,love of enterprise,maritime
the

positionbetween

of Europe, and

south

for trade

could

old and

that those
but

world, and

new

who

were

the

north

and

best circumstanced

gainers by having trade open."

This idea waited long for its realization,
but on that account
led to the more
rapid progress when it was carried into effect.
Within
five years of the repeal of the corn
laws exports rose
hundred
million pounds sterling
to one
factures
manufifty
per annum;
not

and trade

be

developed by leapsand

bounds.

trade

Free

alone cannot

be credited with allthe progress that England made

in this period. It was, perhaps, the least of the three factors
factors would

two

443.
a

have

been

less effect without

of much

of English exports.

Character

This trade had

"

graduallyassuming

and

which

examples of advanced
first the exports,

(in value) have

consisted

Only one
is coal,which

value

we

of exports.

make

find that
of

of the most

in the world.

commerce
over

in

now

been

able
remarking
Consider-

three-fourths

wholly or mainly

wares

of them

tured.
manufac-

has gone out in great quantity;

has contributed about one-tenth of the total
material

raw

Aside

from

coal few

relativelyslightimportance, have
crude

it one

it.

it had

pronounced form, the characteristics which

more

this

importance that the other

of such

it was
enumerated, but still^

wares,

and

those

islands

left the

in

of

their

form.

444.

the exports.
factures
manuCotton
Leading items among
kept their place at the head of the list of exports,

comprising about

"

one

quarter of the total.

England

in 1913

DEVELOPMENT,

COMMERCIAL

ENGLAND:

379

1850-1914

thousand
million
of over
seven
sum
exported the enormous
The exports of iron and steel
yards of cotton cloth a year.
in this period to the second
and their products rose
place;
of
now
purveying to other nations the means
England was
manufactures
modern
which
and
on
raising the structure
The growth in the exports of machinery
transportationare based.
is especially
striking;this item increased over fivefold
within the fiftyyears to 1900, and doubled
again in the short

period before
items
and

of the

the outbreak

Below

war.

these

leading

alreadyfamiliar (woolen
which
had
gained promanufactures) and some
motion
leather
of
the list
goods, chemicals,jute
exports;
which

others with

come

linen
on

we

are

manufactures, pottery, etc.

The
fact sug445. Imports; prominence of foodstuffs.
gested
by the listof exports, that England has specializedmore
"

and

more

in manufactures, is borne

during the past

trade

grown

that the largestitem

In

contrast

only luxuries like wines

find

transportation,we
to

the adoption of the free-

England

from

is that

in its absolute

rapidlyboth

of the total imports.

when

Since

the list of imports

policy the English people has been freed from dependence

the home
sities
on
supply of food and has supplied its necesthe imports, therefore,
Among
by purchases abroad.

find

we

half century.

by

out

the

now

countries

and

of

which
foodstuffs,

value

and

in its

with

the

medieval

spices could
great food

thousands

of miles

has

proportion

period,
for their

pay

staples flowing
distant.

provement
Im-

transportation,due especiallyto the use of

steam, have enabled bulky cargoes to pay for their passage,
and the weight of the imports in tons
has increased much
of transportation
more
rapidly than their value.
Improved means
and preservationhave moreover
enabled the English
and vegetables,
to import perishable articles like meat, fruits,
and
have
dairy products; and the imports of these wares
increased from ten to twentyfoldin weight.
in

446.
same

Imports

conditions

of

raw

have

materials

affected

the

and

manufactures.

imports of

raw

"

The

materials.

380

the

century ago

would

have

HISTORY

OF

manufacture

COMMERCE

of iron from

imported

ore

been

thought an absurdity,but it has become a

that freights
are
so
regularpracticenow
low; and the import
of minerals
materials

is

respectableitem in

for the

list in which

the

raw

textile

of course, most
industry are still,
important. Free trade encouragedalso a great increase in the
importsof manufactures, which grew nearlytenfold in the fifty
less important than foodstuffs
years to 1900, though they stillwere
and raw
materials. The largest
item among
them after
the crude metals,was
for the manufacture
of which other
silk,
nations have always shown more
aptitude;but the listincluded
woolens,hardware,leather (bootsand shoes),paper, and many
other items.
447. Explanation of the

of

imports over exports.

A feature of England'sforeigntrade deservingcomment
and
of imports over
explanation is the great excess
exports. It is
natural to expect that these two items,which seem
to represent
the two
sides of a balance sheet, should be nearly equal to
each other; but in fact the value of exports has for many
years
been far below that of imports,and the difference in the years
toward
to

1900

amounted

excess

to the

$900,000,000a year.
England did not receive

but earned

enormous

"

total of $700,000,000

this surplus of

goods

as

gift,

it by services in the past and

in the present which

to her.
The
English
obligations

put

other

had

invested

pay

tribute for the services and

countries

under

fore
abroad,and had the right theremarine
did a
to interest and dividends;their merchant
largepart of the carryingtrade of the world, and naturally
had a largebill for freight
to render to other people; London
the financial center of the world,and made
the foreigner
was
There
on

were

the whole

other

enormous

items

some

England

countries

in the

sums

on

commissions

executed

for him.

the other side of the account, but

had
form

the

rightevery year to
of goods vastly more

take from
than

she

exported to them.
448.

The

Detailed

items which

items
go to

England's international balance.

make up the credits and debits of Engin

"

382

by

HISTORY

OF

the increase in size of the

COMMERCE

ships and by the substitution of

that the
sailingvessels. It will be remembered
protectionafforded by the navigationacts was removed before
The
has made
the beginning of this period.
government
fused
payments for the carriageof mails, but still has regenerous
steam

for

regularsubsidies or bounties for the encouragement

has held its
of shipping. English shipping,nevertheless,
Of the steam
own.
shipping built in the twenty years preceding
built in the United Kingdom,
the war, two-thirds were
the British flag.
and over
one-half was
built to sail under
While soon
marine carried not
after 1850 the Englishmerchant
of the country,
much
than half of the foreigncommerce
more
the proportion grew
in later years to two-thirds
and nearly
in more
three-quarters.This proportion declined somewhat
the competition of Continental
recent
steamers,
years, under
but it is estimated
that in 1913 British shipping carried over
one-half of the total sea-borne
trade of the world, including
nine-tenths of the trade inside the Empire, nearly two-thirds
of the trade between
the Empire and foreign countries,and
nearly one-third (30%) of the trade between foreigncountries.
The great commerce
450. Relative rank of English ports.
of the United Kingdom was
unequally distributed among
very
its parts, nine-tenths of it going to England and Wales
and
to

pay

"

most

of the remainder

still kept its

place as

to the

the

lowlands

of Scotland.

chief port not

London

only in the United

of its import
Kingdom but in the world, mainly by reason
of exports by the second
trade; it was exceeded in the amount
port, Liverpool,which distanced all rivals in the important
trade with the United
States.
immense
An
separated
gap
these two
leading ports from the others, Hull, Manchester,
famous
Glasgow, Southampton, etc. Ports whose names
were
in the Middle
in later times have dropped into
Ages and even
with fortunate exceptionslike Harwich
and Grimsby,
obscurity,
which have recovered
their positionsin recent
times.
Their
placeswere taken by ports from which cotton and coal products
but now
united
are
shipped: Manchester, once an inland village

COMMERCIAL

ENGLAND:

with the

sea

through
by which

them.

DEVELOPMENT,

383

1850-1914

by a ship canal and standing (1913)fourth on the

list,the Tyne ports, Cardiff,etc.
in the preceding
measured
The importance of ports was
paragraph by the value of the cargoes imported and exported
While

this appears
commercial

to determine

the value

-consider not

"enteringand

of cargoes,

clearingfrom

tonnage of vessels London

before the World
and
451.

about

and

the

the

century,

have

roused

find

of

also to

shipping
by the

given port. Measured

but littlesuperiorto Liverpool
York

and

burg,
to Ham-

and

Antwerp.
different countries
in England's
the direction of

now

changes in

we

but the volume

Rotterdam

of

up

best standard

ranking it is proper

inferior to New

was

share

Taking

"

was

with

even

Relative

commerce.

abroad

War,

the

be

to

its

ourselves

England'strade

during the last half of

approaching questionswhich

course

political
controversy. Reserving for future
consideration changes which
have shown
themselves
in the
most
recent period we
note conditions as they were
about
may
1900.
England stillfound the trade with her European neighbors
the most
important part of her commerce,
making up
about two-fifths of the whole; this trade had increased by over
acute

one-half

during the
importanceto it was
a

fortyyears

slowly.

more

continent

or

between
from
she

which

other

any

of

group

States,between
the United

bought from

England

countries

two

States in 1901
the next

and

grown
a

half

all countries beside those

with

them

only to

had

about

on

place we
one

dependencies,
increased

may

put, not

country, the United

the trade
earth.
than

more

more

than

was

one-eighthof

greater than

England bought
twice

much

as

and

as

she sold

she sold to all the

Empire. This part of English

more
rapidly than any other,
in the period. Grouping together

enumerated,

remained

in

had

largestseller (France);

States in that year

'Countries embraced
in her great
had

whole,which

countries,but

and

century. Next

the British

the third

In

the United

trade, moreover,
increasing
by once

of the

the trade with

littleless than one-quarter of the

somewhat
a

last

we

find that the trade

nearly stationary,and
the total.

amounted

384

HISTORY

OF

QUESTIONS
1.

that
2.

with

has

already been

Compare the

in the
graphic representation,

suggested.

suggest themselves

of the United

commerce

TOPICS

given for the increase

resons

that may

reasons

AND

the statistics,
sect. 440, by

Treat

manner

COMMERCE

States.

[See

to

you

320

sect.

of

British

commerce

for the growth of the

for

reference to Gladstone's

views.]
following list gives,in million pounds, the value of the chief
exports of home produce in 1900: cotton manufactures
62.0, do. yarn 7.7,
do.
woolen manufactures
15.6,
6.1,linens and yarn 7.1,jute and yarn
yarn
and
haberdashery 6.8,ships8.6,iron and steel 32.0,hardware
2.4,apparel
and cutlery2.1,copper
2.9,machinery 19.6,coal,etc.,38.6,chemicals 9.2.
Total exports of home
produce 291.4, exports of foreign and colonial
Treat
the figuresas suggested under
produce 63.0, grand total 354.5.
sect. 419.
man's
[The figuresare from the preliminaryreport for 1900, Statesof
iron
details
and
steel
Year-Book, 1901, pp. 85, 87;
exports will be
3.

found

The

88.]

p.

Development of the iron industry. [Jeans, The iron trade of Great

Britain,London, 1906, or in Ashley,Brit. Industries,2-37; Bell in Ward
Reign, 2: 196-237; Lady Bell, At the works, London, 1907.]
of the textile industry. [Soc. England, 6: 589-599.]
5. Development
cotton
6. The
industry. [Slagg in Ward, Reign, 2:153-195; Helm in
Ashley, 68-92; S. J. Chapman, The cotton industry and trade, London,
4.

1905.]
7.

woolen

The

1907.]

industries,London,
9.
10.
11.

[Patterson in Ashley, 120-150.]

Pottery. [Soc. England, 6: 379-392.]
[Edgar, Story, chap. 5.]
England as a wheat market.
food supply of London.
The
[Quarterly Review, Oct., 1899,
and

Linen

467-486;

190:

[Hooper in Ashley, 93-119;

Clapham, The woollen and worsted

industries.

in Lectures, chap, 10; J. H.

Graham

8.

worsted

and

flax.

Jan., 1900,

191:

117-137.]

England's food supply in time of

12.

Seton-Karr
National

in North

Rev., 1896,

Amer.
27:

war;

need

of the navy.
W.

E.

Rev., 1897, 164: 651-663;

133-144; Quarterly Review, 1905,

[H.

Bear

in

203-572-

598.]
Project of national granariesfor storinga supply of food. [R. B.
in Nineteenth
Marston
Century, 1898, 43: 879-889; Yerburgh hi Nat.
Rev., 1896; 27: 197-207.]
13.

14.

No.

British

Amer.

1911;

215:

capitalabroad

and

the

balance

of trade.

[Mulhall in

in Quarterly Rev.,
Rev., 1899, 168: 499-505; Crammond
London, 1914.]
43-67; C. K. Hobson, The export of capital,

DEVELOPMENT,

COMMERCIAL

ENGLAND:

[Ginsburg in Ashley,
173-195; Taylor in Forum, 1900-01, 30: 463-477.]
[Root in Atlantic,1900, 85: 38716. British shipping subsidies.
of the

Development

15.

merchant

385

1850-1914

marine.

394.]
[Ackland in Nineteenth
Century,
in
Feb.
113:
Browne
411
42:
190-199.]
Contemp.
Rev.,
1918,
ff.;
1897,
and
[Owen in Lectures,
improvements.
18. The
port of London
in National Rev.,
chap. 4; QuarterlyRev., 1903, 197: 252-269; Marchant
Miller
in
'with
Fortnightly
Rev., 1902, 78:
1902-3, 40: 715-737,
map;
British

of

Growth

17.

ports.

796-805.]
[Cowie in Contemp.
supply of British seamen.
in English Rev., 1911, 9: 114-121;
73: 855-865;
Tomlinson
Nineteenth
1114-1130.]
Cent., 1912, 72:

Rev., 1898,

The

19.

Longford in

BIBLIOGRAPHY
The

and

measure,

few books

has

commerce

it

publications upon

Only

century.
the

of English

course

attracted

multiply, as

be noticed

can

we

interest in increasing

approach the end of the

here; the reader is referred

topics for references to other books and periodical articles.

Ward,
Reign of Queen Victoria, contains good chapters on
*

of

development
and
and

from
good starting-point

Root, Trade

J. W.

trade.

1903, provides
Similar

books

Money.

have

British commerce,

written

1918, is

W.

recent

**

at

dustrial
in-

Trade, population,
1870-80,

the

survey

commerce

the

course

Empire,
close

the

of

pool,
Liverof the

question of tariff changes.

Pulsford

issue, London,

and
John
1911.

L. G.
H.

Chiozza

Schooling,

Lectures

on

P.

Reeves, is mainly a description

J. Sargent, * Seaways of the Empire,

A.

of the

geography of British trade; and

British shipping, London,
1914, includes both
survey

organization.

Ashley, is,however, the book

nowhere

to

is provided by

preface by W.

good

Kirkaldy,

history and

by Edward

book, fourth

with

which

the pending

to

present organization.

London,
Adam

of English

survey

been

trade

Bourne,

relations of the British

statistical survey

useful

British

of the

special reference

period, with

*The

reign. Stephen

1880, is a careful analysis of the decade

food, London,

furnishes

recent

the

to

else will the reader

**

British industries,edited

deservingof the

warmest

by W.

J.

recommendation;

find such

good descriptionsof the leading

industries of Great
Britain.
Each
industry is described by a specialist
of recognized authority, and though the book
does not go far into history
it gives indispensable information
the recent
results of historical
on

development. More popular and less valuable is Great industries of Great

Britain,London, Cassell, no date (about 1880?), 3 vols.

CHAPTER
ENGLAND:

452. Relative
The

"

and
from

PRE-WAR

PROBLEMS

decline in value and

qualityof English exports.

questionsagitatingthe minds of English business men

statesmen
a

XXXVIII

at

the

consideration

opening

of the

of the immediate

twentieth

past and

century

rose

of the future

While the country had enjoyed a full

English commerce.
had witnessed
of prosperityin recent
measure
a
years, and
considerable increase in the quantity of its foreigntrade,the
qualityof this trade awakened
forebodings. The increase had
been almost entirelyconfined to imports. Since 1872 the exports,
though they had increased in bulk, had remained almost
stationaryin value; they had kept pace neither with the growth
of population in England, nor
with the growth in value of the
of

exports of other

countries.

In

the

twenty years, 1881-1900,

foreigncountries enlargedtheir purchases (imports) by 11 per
cent, while England augmented her sales

to them

(exports)by

only 4 per cent; the British possessionsenlargedtheir purchases

by 17 per cent, while Englishsales to these dependenciesshowed
The exports of which England
actual decrease of 1 per cent.
an
has been
most
proud, as indicatingher superior industrial
had
creased
the textiles,
and iron and steel
either instrength
slowlyor shown an actual decline. On the other hand,
"

the exports which

"

had

increased

the

in value

were

of

kind

which

English viewed with disfavor. Many of them

(apparel
and slops,preserves,
the product
soap, furniture,etc.) were
of cheap and unskilled workers
and seemed
to show
a degradation
of English labor.
Others
of them, potter's clay and
materials which
the English would
raw
especiallycoal,were
have preferredto use
in their own
industry at home.
386

453.
"
-

Growth

in

exportsbut

that

in relative share of trade.

decline

table of trade of the United

The

387

PROBLEMS

PRE-WAR

ENGLAND:

period of
a marked
export trade ended about 1900, and that there was
that date and
between
after allowance
1914, even
recovery
is made, as it should be, for the rise in the generallevel of prices,
which magnifies the actual growth. Studying the course
of
the dates
trade during the generation comprised between
increased the
or
1880-1909, the United Kingdom maintained
value of its sales in all but two of the more
important markets
of the world; and the two countries to which British exports
have declined,
Russia and Roumania, would not by themselves
form very serious exceptions. If,however, we select for study
ing
the bare figuresof export values,but the figuresshownot
the percentage which British sales to any country form of
that country'stotal imports, the result is very different;for we
standard
then measuring British progress not by the home
are
but by the standard
set by commercial
competitors.
The
of Japan.
454. Illustration by the recent commerce
distinction is so important that it deserves illustration by a particular
choose for the purpose
a country
example, and we may
which during the recent periodhas furnished a rapidly growing
of the world,namely, Japan.
market
to the merchants
chapter shows

the

Kingdom in the preceding

stagnation in the English

"

ANNUAL

IMPORTS

AVERAGE

(Values in

The

JAPAN

millions

Japanese monetary unit,the

in value
exact

OF

in the

equivalentfor

it

can

be

RECENT

DECADES

of yen)

yen,

ably
has declined consider-

period,and therefore no
given; but even allowingfoi this
of the

course

IN

388

PERCENTAGE

OF

HISTORY

OF

JAPAN'S

COMMERCE

IMPORTS

EACH

FROM

export trade

COUNTRY

Japan appears
satisfactoryif the student regards merely the figuresin the
If we
firstcolumn.
apply,however, the comparative standard,
decline the

and

growth

the British exports to Japan

measure

other

of British

the
countries,

alongsidethose

from,

same.

of the United

decline

455. Relative

the

result is not

to

in the world's

Kingdom

Pursuing the comparative method, illustrated by

find that the United
the last preceding table, we
Kingdom
markets.

"

showed

during the generation1880-1909

only three of the minor

It
ArgentineRepublic, Sweden.
sales in

Switzerland

and

Norway;

but

an

markets
almost

in most

increased

of the world:
held its own
of the

in

share of

Spain,
France,

important

kets
mar-

it lost

ground seriously.
in its trade with the British dependenciesthe United
Even
Comparing the percentage of
Kingdom did not hold its own.
British exports to a dependency with its total imports,we find
that the United Kingdom kept its placein only one of its colonial
while
markets, Mauritius, a purchaser of relative insignificance,
of the world

tralia,
foreigncountries gained ground from it in British India, AusCanada
and all the other important colonial markets.
456. Significanceof the decline,and three possible explanations

not

of

it.

imply

that

The

"

relative decline

the country

but it did mean,

leadership; and
to meet

it

was

in

English exports did

approaching industrial

ruptcy,
bank-

if long continued,the loss of industrial

of this decline and

the

causes

are

worthy of careful attention.

remedies
The

posed
pro-

decline

390

OF

HISTORY

COMMERCE

tures, by preventing the introduction

of

improved machinery

(3) Technical education was even more

backward
than general education; improved processes
were
introduced
earlier and developed further in other countries,
for lack of a class of trained manufacturers
in England. (4)
Finally,and probably the most important point of all,English
manufactures
appeared to suffer from the very fact that they
had been long established.
An
divided among
industry was
to the plant,
independent firms,each clingingresolutely
many
and

by limiting
output.

the processes
in the past.

and

the methods

which

had

won

for it

success

Foreign countries learned all that the Englishhad

field in which they
to teach,and applied the lessons in a new
could build up great manufacturing units,with
fresh machineryflexible
adapted to production on a largescale,and with a more
and more
efficient organization.It was
ing
charged that the directclass in England had lost its original
and did not
energy,
realize its serious responsibilities.
An
vestigat
English expert who inthe American
a

industryreported that there

cotton

was

great difference in the energy,

of the

ness

managing

of the United

class in

and adventurousintelligence,
the two countries,
vantage
all to the ad-

States.

of the English mercantile organ(2) Allegedweakness

ization.
have
the preceding paragraph we
In
suggested
in English manufactures,which
various elements
of weakness
bound
to affect the power
in greater or less degree were
lying
have now
We
to consider
behind
the English export trade.
another set of conditions,which
are
easilyconfused with the
but which are better kept separate. English manufacturers
foregoing,
might be strong, and still they would have but a
to the wants
small export trade if they were
not informed
as
tastes
of their customers, and did not study their customers'
be
in supplying goods. This set of conditions,which
may

459.

"

termed

mercantile,the business

of the

manufacturer,

findingout

what

it has

made,.

been

is

of the merchant

study under two

wanted; (6) sellinga suitable
we

may

rather
heads:
ware

than

(a)
when

knowledge

Insufficient

460.

complaint

(a) The

of the needs

generalthat

was

of

the scouts

travelers,were

the commercial

391

PROBLEMS

PRE-WAR

ENGLAND:

"

of British

few

too

foreigners.
merce,
com-

in number

and

in their
ill prepared,especially

knowledge of
foreignlanguages. The English exporter shipped goods which
without knowledge or regard of the
he thought were
suitable,
that

they

were

desires of his customers.

business

who

man

had

had

seven

is a
years' experience with trade in the Empire said,"There
universal complaint: 'You Englishwill not make
your goods to
suit

them

leave

or

send

You

markets.

our

them

you

"

your

don't

samples and
which.

care

thingsyou either refuse to do

prohibitive
prices." In countries where
to

alter

(Persia,Sumatra, South
worse.

The

tell us
If

we

Marks

ask

you

else you demand

Englishis not spoken

it

or

America, etc.)the conditions

Merchandise

to take

still

were

Act, the originof the familiar

Germany," was
designed to protect the British
colonist from having foreign-madegoods palmed off on him as
English, and thus help the English manufacturer; but it
served only to advertise foreign manufactures, and
led the
"Made

in

import goods directlyfrom foreign countries,

instead of taking them
through English hands.
461. Unwillingness to adopt foreign trade customs.
(6)
colonists

to

"

Finally,when wares
manufactured,they

suited
need

to sale in any

market

have

been

to be

sold,to maintain trade. English

criticised for allowing their wares
to be
exporters were
driven out of foreignmarkets by other wares, no better in themselves
but
Here

for

some

again the

reason

commercial

more

attractive

traveler

was

at

to

the

customer.

fault,but part

of

the blame

be made
in small
lay on the exporter. Sales must
lots and on long credit in some
if they are to be made
countries,
disinclination to adapt
at all; and the English had shown
a
themselves
had enabled
others (esto such conditions which
peciall
Germans) to take trade from them. When other things
are
nearlyequal slightdifferences in packing and shipping may
turn the scale. The
English lost trade in Australia because

they

sent

tacks

in

paper

packages

instead

of in cardboard

392

HISTORY

OF

COMMERCE

hundred
they sent cartridgesin lots of one
instead of lots of twenty-five. An interesting
example of an
in the career
of an
opportunity well met occurs
Englishman
who left the field of manufacture
to become
man
a leadingstatesHe
found
that the trade with
Joseph Chamberlain.
France
in his product,wood-screws, was
small; he introduced

boxes, because

"

metric

the

system of measurement,
the size usual in France

packages of
trade.

had

If there

been

more

England there
the protectivepolicywhich he
troubles of English business.
462. Tendency
that

wrapped in blue
like Chamberlain

men

have

advocated

been

as

remedy these faults.

basis

paper

less need

remedy

There

"

in
of

for the

is no

doubt

for these

charges against the

and
British manufacturer
of them
merchant, though some
doubtless were
exaggerated,and it is impossibleto apportion
exactlythe weight that should be allowed to any one of them.
The

there

to

in

screws

developed a largeexport

would

in

manufactures

and

customer, and

familiar to the French

the

put up

was

good

crisis of the World

War

needed

was

to

sweep

away

the

long past. The stimulus of a

for
strugglefor national existence,with the insistent demand
effected reforms
the highest attainable
reaching
efficiency,
and

customs

traditions

of

whole

previous generation.
Even before 1914, however, many
in responsiblepositions
men
in Englishpolitics
and business recognizedthe need of mending
dustry
the pace if England was
to keep abreast of competitors in in-

deeper and

further than

and

those

of

Interest

commerce.

in elementary and

technical

directed to the means

by
quickened; inquiry was
which
getting ahead; the government,
foreign rivals were
associations and individuals worked
togetheror independently
to further efficiency.
education

which

A parliamentary committee
War

made

course

of the World

the prospects of British industry and

the followingconclusions as regardsconditions in

careful

trade reached

in the

study of

the previous decade.

England

developmentof

modern

some

had taken

but

small part in the

the chemindustries,
particularly

PRE-WAR

ENGLAND:

393

PROBLEMS

the country had

ical and electrical;

made

comparativelylittle
in which it was
entirely
progress in the iron and steel industry,
overshadowed
by Germany and the United States; but it had
wholesome
shown
vigor and capacityfor growth in some
great
manufactures, such as the textiles,ship-buildingand some
of machine-making.

branches

British trade

abroad

found

was

competition of foreignerswho were

found,
of organization
at least,to be followingmethods
in some
cases
efficient than those
and marketing that were
more
distinctly
which the British pursued.
the

to suffer from

influence

(3) Adverse

463.

of foreign tariffs;
proposals to

Under
conditions of
English policyof free trade.
adversitythere is always an inclination to lay the blame, rightly
serted
or
wrongly, on others. A considerable party in England asthe

revise

rather

"

the

than

economic, resultingfrom

reasons

decline

recent

of the

and

policyof England

political

were

the protective tariffs of

this party asserted that

other states; and

British

for the

that

colonies

change
needed

was

in the tariff
to

rescue

commerce.

There

can

be

questionof

no

the main

fact,that protective

tariffshad

increased considerablyduring the last quarter of the

century.

It is estimated

valorem

in most

in

cases

some

(72

cent

per

be

can

no

these restrictions;
every

is,however,

help herself by

change,if any,
464.

principal English exports

equivalentto 10 to 30
states,but amounting to far more

Russia). There
It

the

duties

with

burdened

were

that

open

to

per

cent

than

ad
that

in United

States, 130 per cent in

questionthat England suffered from

commercial
grave

state

doubt

suffers from

whether

them.

England could

change in policy; and the question of what

ought to be made, remained unsettled.
a

for

Demand

customs

duties
"

as

means

tariff reformers"

of defense

clung to
as the policy
the ideal of free trade,and favored its maintenance
tions
of the country in general. It would, however, permit deviaThe adherents
of this view
it in particular
from
cases.
and the
asserted that England strippedherself of the armor

and

retaliation.

"

One

group

of

394

of commercial

weapons

trade.

HISTORY

She

OF

when

war

could make

to

retaliate.

The

suffer

she

adopted complete

effective protest when

no

raised tariffs against her,marked

she must

COMMERCE

other nations

nations;
perhaps by offensive discrimi-

everythingbecause

adherents

free

of this view

she

forbidden

was

laid particularstress

turers
"dumping," as it is called. The manufacfrom England's
of protectednations,themselves,secure
competition,market their surplusoutput in England at prices
less the profits,
which may
the costs,much
not cover
of production.
It is cheaper to do this than to break pricesin the protected
it kills the English industries and
market
at home;
in the long run
enables foreign manufacturers
to raise prices
For retaliation
level in the English market.
to a profitable
and for defense against "dumpagainst protectivecountries,
ing,"
this school demanded
that the English government
be
on

the practiceof

armed

with the power

to impose heavy duties,to be temporary
in character and to be removed
their immediate
as
soon
as

objecthas

been

accomplished. Such

policyhas

been

adopted

in Canada.
union.
Another
Proposal of an imperial customs
school of tariff reformers,led by Joseph Chamberlain,accepted
in general the views just indicated,but laid particularstress
another possibility
in shaping English commercial
on
policy.
465.

It would

"

the whole

make

great group

of

Englishdependencies

well,bound
union
that
so
together in an imperial customs
(Zollvereiri),
trade would flow from placeto place within the Empire instead
not

of

unit
only a political

crossingits

various

to

commercial

It is not

unit

possiblehere

aspects of this proposal,of which

important
The

frontier.

but

some

as

discuss the

to

of the

most

in character.
politicalrather than commercial
attractiveness of the plan is at once
apparent; it promises

assure

are

to

and
colonies,
materials

England

market

to the colonies

in

England. The
however, equallyapparent;
this result if the various

for her

protectedmarket
practicalweakness
a

law would

for their
of the

be necessary
parts of the Empire found
no

in the

manufactures

raw

plan is,
to

secure

it advan-

ENGLAND:

PRE-WAR

395

PROBLEMS

tageous to trade with each other,and the

mere

suggestionthat
cramped and the

law is necessary
shows that trade would be
interests of individuals hurt by such an arrangement.
a

466.

Obstacles

has,in fact,taken
of

to

lines

union.

customs
more

and

more

"

The

course

opposed

of trade

to the scheme

union.

During the first part of the century,

when
still protectionist,
and when
the mother
England was
country made the laws for its dependencies,the plan could be
carried out with comparativelylittlefriction;
the colonies were
engaged chieflyin the production of raw materials,and were
Since about
glad to exchange these for English manufactures.
and the economic
1850, however, both the political
organization
of the Empire have changed. The self-governing
colonies have
received the right to make
their own
laws, and have used it
to raise protectivetariffs,
againstEngland as well as against
other countries.
Behind
the barriers of the tariff they have
developed a considerable manufacturing industry. They were
wide their markets to English
to open
now
unwilling,
therefore,
manufacturers; and showed an increasing
tendency to buy what
manufactures
land.
they did import from other countries than Engunable, on the other hand, to supply in full
They were
for raw
the English demand
materials; and any measure
a

customs

materials to some
source
suppliesof raw
inside the British Empire threatened
mjury to producer and
colonies gave evidence
The self-governing
at home.
consumer
tial
affection by enacting differenof the strength of their political
tariffs favoring the British producer. Canada
began the
practice in 1894, and later enlarged the concession until it
amounted
to a remission of one-third of the regularcustoms
duty. New Zealand, South Africa and Australia adopted after
1900 the same
making their concessions less extensive.
principle,
The differential advantage thus offered the English exporter

designed to

restrict

of trade. The
evidentlyhave had an effect on the course
new
keenly resented in Germany, where it was
policy was
ascendancy to
picturedas an abuse by England of her political
depriveother countries of the benefit that should go to superior

must

396

economic
been

HISTORY

On
efficiency.

less important
the flow of

in

before
War

Relative

War.

of

progress

ABSOLUTE

channels
of

Germany
INCREASE

made

commercial

advance
and

IN

decisive influence

other

countries

countries.

that

she

OVER

OP

of the World

It is interesting

had

made

with

the

States.

ANNUAL

THE

AVERAGE

just

start in the efforts

new

of the United

TRADE

in determining

of trade.

England and

to have

to have

factors

Just before the outbreak

"

the

compare

policyseems

ordinary economic
goods, and certainlyhad no

England appeared
keep her place among
to

the

than

progress

the World

COMMERCE

the other hand

changing the customary

467.

to

OF

AVERAGE

1910-13

1895-99.

with rough equivalent

(Figures in millions of " sterling,

in

$)

noted,give not the total commerce

of any country, but the gain which
each country had made
of
the period in question. The figuresdo not take account
difference in population in the three countries; they treat
The

figures,it should

three different countries

fail to

cannot

for commercial
how
the

view

be

as

The

reader

in

the
the

studying them

impressed by the closeness in the struggle

stand
leadership,and will be better prepared to underbe

the situation if in

precariouswas
was

units.

in

dominant

interests,to be
could render, if

that

furthered
necessary

by
by

commercial
any

the

one

interests

assistance
sword.

of the countries

which

were

the

group
state

398

HISTORY

COMMERCE

OF

Faults

9.

of

organization. [Lambert

English mercantile

Century, 1898,

44:

940-956;

Greenwood

in same,

1899,

in Nineteenth
45:

538-

547.

of prevention. [Ashley,
Meaning of "dumping"; effects;means
Tariff problem; Marshall, Industry and Trade.]
of the commercial
situation.
11. Balfour's view
[A. J. Balfour,
insular free trade, N. Y., Longmans, 1903, $.30;
notes
Economic
on
Tariff reform, $.10.]
12. Criticism of Balfour's proposals. [Quarterly Review, 1903, 198:
10.

613-648.]
Chamberlain's

13.

The

policyof

of the commercial

situation.

[Chamberlain,

National
imperialpreference,
of Chamberlain's

Discussion

14.

view

Review, 1903-4, 42: 351-370.]

proposals. [Nelson in North Amer.

in Monthly Review, 1903, 12:

1903, 177: 183-191; Goschen
July, 38 ff.;Quarterly Review, 1903, 198: 246-278, Edinburgh Review,
1904, 200: 449-476.]

Review,

projectof

The

15.

an

imperialcustoms

union.

[Mahan in National
Amer.
Review, 1903,

390-408; Colquhoun in North

177: 172-182; Giffen,in Nineteenth
Century, 1902, 51: 693-705; Bastable
12:
in Econ. Journal, 1902,
507-513.]
Review, 1902,

39:

BIBLIOGRAPHY
I cannot
recent

attempt
from

years

survey

of the vast

the discussion of the

literature which

proposalto

change

has sprung

in

the commercial

policy of

England.
bibliographyof 38 pages compiled under the supervisionof A. P. C.
Select list of references on the British tariff movement
lain's
(ChamberGriffin,
defense
of the
For
1904.
at
a
Washington,
published
plan),was
see
protective policy the reader may
Ashley, Tariff problem; for representative
A

statements
return

to

of the free trade views

protection,London,

importance attaches
did much

to arouse

surveys

Fuchs, The
British

are

William

Macmillan, 1904; and

London, King, 1903.

of the fiscal problem,

Elements

Useful

see

to the books

L.

Smart, The
G. C. Money,

Considerable

torical
his-

by Gastrell and Williams, which

interest in the great commercial

question of the^day,

provided in translations of two foreign works, Carl J.

Britain,London, 1905, and Victor Berard,

trade policy of Great

imperialism and

commercial

supremacy,

London,

1906.

substantial character is offered in books which

Reading of a more
the
analyze
organizationof industry and discuss the merits and defects
of the English.
For a survey
from the standpoint of theory see Alfred
Marshall, Industry and Trade, London, 1919, which is adapted only to
concrete
advanced
discussions, suited to topical
students,and for more

ENGLAND:

reprinted

volumes,
3

and

in

the

London,

Commission,
and

1901,
fex"

and
The

S.

U.

by

of

Society.

later

be

found

of

British

methods
of

Report

and
the

engineering

industry,

1906,

Work

two

and

results

wages,

in

Moseley

land
Eng-

Industrial

competition,

N.

(gun-making),

by

Y.,

"Arti-

1907.

commercial
studies

in

London,
**

Chapman,
of

American

London,

"Opifex,"
analysis

decay

efficiency,
J.

comparisons

1903,
of

Causes

will

Sydney

one;

Interesting

1904H4.

vol.,

in

later

Industrial

**

Shadwell,

Arthur

reading,

399

PROBLEMS

PRE-WAR

statistics
to

be

found

in
in

Schooling
the

Journal

and
of

Fuchs
the

Royal

is

plemented
sup-

tistical
Sta-

CHAPTER

of the commercial

Connection
of

Germany.

of its commerce

of the century, if not

This

in this sketch

is

1900

to

the

development
political
in the extent

England

country which

at the

certainlyfar below
last,was
We shall have to note,
country is Germany.
commercial
development in the nineteenth
examples of commercial
by the United States,was

of

expansion.

them, furnished
a
spread of a people,originally
small, over
great
The
resources.
other, furnished by Germany,
different

greatlydifferent

not

of

1900, and
of

to which

the

that which

from

nature

given but

no

Germany

divided

people were

to

the

area

rich in

was

due

to

occupied a territory
composed the Germany

has

was

due

of 1800

Germans

There

resources.

however;
of

The

causes.

beginning

the

among

remarkable

century, two
One

of

and

Standing next

"

about

the leaders.

STATES

GERMAN

THE

468.

XXXIX

up

moderate

ment
endow-

at the earlier

among

date,

great number

forces were
by
cramped therepetty states,and their economic
The commercial
to hinder their development.
so
as
ress
prog-

century has depended largelyon

of the

the reform

of these

conditions.
political
469.

It will be
development.
political
in the followingpages, to refer frequently
therefore,
necessary,
of political
of
to the events
history,and for the convenience
the reader

history.

The

from
middle

between

of

the

is here

Napoleonic
of

the

three hundred

over

"

brief summary

backward

most

of the

Summary

wiped

wars

German
to

by

about

which

out

the

course

of that

smallest

and

states, reducing the number

century, progress

these states

given of the

forty. Then,
depended on

the worst
400

until

near

the

negotiations

effects of their separa-

GERMAN

THE

tion

removed.

were

In

1848

401

STATES

liberal movement

reformed

the

of the important states on modern

lines,
government of some
for
and strengthenedthe demand
a unified Germany, leaving
Prussia
still undecided, however, the question whether
or
The war
of 1866 between
Austria was
to be the leadingstate.
of
the two states gave the leadershipto Prussia; and the war
led finallyto the foundation
of the modern
1870 with France

Empire, under which at last the people found room

with
for commercial
expansion and advanced
astonishing
German

rapidity.
In spite of the
Germany about 1815.
the smallest
service which Napoleon did Germany by abolishing
still splinteredinto pieces in 1815.
states, the country was
the land, cutting the
of tariff frontiers covered
A network
and
great rivers and the natural high-roads of commerce,
of wares.
Not only did each state
preventingthe movement
had internal tariffs in addition.
The
have its own
tariff;some
470.

of

Conditions

"

of Prussia had

some
altogether
sixtytariffs. Some
made
of scattered pieces,interspersed
of the states were
among
the territories of their neighbors; even
small state might
a
consist of eight or ten fragments. A merchant, to reach the
of the country from the national frontier,
crossed about
center

singlestate

sixteen tariff boundaries.

Not

The

only the

tariffs consumed

customs

separatismwhich

they

time

and

money.

represented spread into all parts of

seventeen
different postalsystems
organization
; there were
in the country; nearly threescore
different laws on
bills of
exchange; hundreds of different coins.

the

471.

Backwardness

difficulties of internal
of the

of

and

commerce

commerce

were

manufactures.
so

great that

The

"

the

life

arranged in large part to enable them to

trade.
of the people were
Most
engaged in
saries
suppliedthemselves with nearly all the neces-

people was

exist without

agricultureand
of

life.

Manufactures

were

still carried

on

almost

exclusivelyby scattered artisans. The German

governments
still clung to the old ideas of the gildsystem and publicregu-

402

lation.
the

Little

by

HISTORY

that

COMMERCE

littlethese ideas fell into the

first half of the

to note

OF

they

nineteenth
still a

were

century, but

livingforce

in

background in
it is important
Germany when

England had discarded them and was in the full rush of the
developingfactory system.
472. Factories dependent on antiquatedsources
of power.
Hindered
in development by the persistence
of old institutions,
and by the lack of any considerable market
for the product,
"

German

remained

manufactures

the

on

stage

same

which

on

they had been for centuries previously. Even the textile and
mining industries were conducted accordingto the time-honored
methods

of the

past; little progress

had

been

made

in the

applicationof machinery, and the steam-enginewas practically

In Electoral Saxony, the seat now
unknown.
of a great cotton
and woolen
done by hand
manufacture, all spinning was
up
and
in
the
small
1812
to 1786,
factories were
still dependent
on

this

their power

from

oxen

by water;

were

run

by

steam.

473.

of power.

source

No

"

and

factories of medium

no

marked

would

picture of the development of German

of its backwardness
as

1842.

At

from

this time

one-tenth of what

it

was

century, but
estimate

an

give an

we

gain

can

for

made

foreigntrade
1900, and it must

less in earlier years,

described immediately. The
is
agricultural

before the reforms

fact that

shown

the

in the

so

have

fact that

date

little over
been

siderably
con-

will be

which

country

early
idea

some

late

was

raw

accurate

in the

commerce

German
in

export of

the

by

statistics exist which

part of the nineteenth

size got

horses; only the large factories

spinningwas as yet done entirely

small, and

Commerce

materials.

and

The

was

the

dominantl
premost

materials and foodstuffs,

raw
important items in export were
especially
grain. The industrial populationhad not advanced
far enough to work
the raw
wool produced in the
even
up
considerable
exported to
quantitieswere
country, of which
of manufactured
England. Germany did export, it is true, a number
in generalthose which could be
but they were
wares,

THE

403

STATES

GERMAN

facture
home, and in the manustill the important
of which
cheap hand labor was
In the products,however, affected by the improvefactor.
ments

made

from

which
confessed

materials

raw

been introduced

had

her

produced

weakness,

and

at

Englishfactories,
Germany
purchased large quantitiesof
in

DEVELOPMENT
OF

GERMAN

yarn

and

iron

of

English

THE

ZOLLVEREIN

for

manufacturers

use

inside

the

country.
474.

Formation

of the Zollverein

conditions

called

mercantile

classes.

parts of Germany
We

must

content

(customs union).
"

forth, naturally,remonstrances
Business

began

soon

ourselves

men

and

Tariffs inside the separate states

manufacturers

the
hi all

agitatefor a reform.
noting only the main steps.
were
reformed,and the navi-

after 1815
with

from

Such

to

404

important, the
tariff

OF

the gr,eatrivers

gation of

customs-union

with

easier.

Finally,and most
began to draw
together in
with a common
(Zollvereiri),

states

the frontier and

on

COMMERCE

made

was

separate

forming

groups,

HISTORY

free trade

inside.

The

ment,
move-

three
first,culminated
rapidly in 1828, when
such groups
were
formed, one in the North (Prussiaand others),
in the South
one
(Bavaria and Wurtemberg), and a third
slow

at

central

includingstates

from

liked to remain

isolated when

about

great union, embracing

population
formed.

out

From

people within
commercial
could

"

had

the

German

this time

the union

Empire

the

1834

one

and

area

later to be

was

slowly,but

more

grew

afford

now

of

state

begun.

once

developed by

two-thirds

of which

it could

had

No

wait, utilizingits

to

the
new

and confident that the other Germans

opportunities,

long resist

not

its attractions.

475.

Development followingthe formation

The

introduction

opposed then,
at

consolidation

of this transition stage there

Out

to the coast.

Germany

large would
of others

as

of

free

(,rade inside

the establishment

be now, by
in the same

of the Zollverein.

of

Germany

of free trade

producers who

feared

line of business.

was

in the world
the

Some

competition
producers

lost

by the change, and were

compelled to seek other lines of
work.
Many manufacturers, however, who opposed the change
because

they

actually to
and

market

gave

demand

it would

great increase

German

customers.

supply

feared

The

both

consumers,

in

rich reward

that

it led

prosperity; it extended

their

them,

to those

manufactures
which

abroad.

hurt

before

who

found

best served

developed
had

been

met

and

their

began

to

by purchases
was
checked,

importation of foreignmanufactures
and half
while there was
increase in the imports of raw
an
manufactured
materials
(dyes, coal, iron) and of colonial
products (sugar, coffee),indicating a growth in industrial
and in welfare.
The non-industrial population gained
power
wares,

as

and

as

industrial class.

supply of manufactured
producers,sellingproducts to the developing
by the

better

406

OF

HISTORY

COMMERCE

and "Germany
for the Germans"
was
a rallying
feeling,
cry of
which the protectionist
made
A great commercial
good use.
and
the expenditure of the huge
crisis,followingthe war

indemnity received

at

and

found

could

continue

bound

were

had

urgent demands

greatlyextended
market

not

the iron producers it

under

only with

third could continue

one-third

who

that they could

now

profitable
prices. Of

one-third

France, caused

the manufacturers

relief from
works

from

the

was

said that

that
existingtariff,

whether

their

the product

the aid of protection,and

to be ruined

for

they received

one-

that
tection
pro-

not.

or

479. Return

to

protectionin

1879.

Even

"

the agricultural

joinedthe protectionists;they found their foreign

market
appropriated and their home market threatened by
grain imports from Russia, America, and India; they were
largelyin debt and were paying the heavier taxes of the empire.
to induce a
factors united with the economic
Finally,political
his positionand
to reverse
change. Bismarck found it politic
to advocate
protectioninstead of low duties or free trade;
adroitness he engineered the change which
with remarkable
The
realized in the tariff of 1879.
was
existingduties on
manufactures
were
raised;old duties which had been abolished
products were
were
restored;and duties protectingagricultural
with changes which
shall notice
This tariff,
introduced.
we
later,has formed the basis of the existingtariff.
classes

now

AND

QUESTIONS
1. Review
course

2.

of

in

of the smaller

one

development
political

Political condition

3.

The

4; Seignobos, end
4.
5.

of European

manuals

Germany

of the German

during

states

at

the

the

history the

century.

beginning of the

parts of chaps. 12, 14; Henderson, vol. 2,

vol. 3, chap. 1.]
Zollverein. [Rand, EC. hist.,chap. 8; Bigelow, vol. 3, chap.

[Seignobos,
chaps. 6, 7; Bigelow,
century.

in

TOPICS

first

of chap. 14.]
tariff of 1818.

The

Prussian

The

conflict between

Prussia

[Bigelow, vol. 3, chap. 17.]

and

Austria.

[Henderson, vol. 2,

chap. 9; Seignobos, chap. 15.]

return
to protection. ["Veritas," chap. 5.]
6. The

THE

GERMAN

407

STATES

BIBLIOGRAPHY

The

**

earlier

the

on

English

in

of

1858,

p.

in

seek

before

published
in

connection
above

Poultney

Bigelow,

the

on

book

history

to

of

1902,

1904,

given
323-328.

which

by

M.

is

The
W.

Fiske

H.

Review

been

derson,
Hen-

1902;

liberty,
"Veritas"
includes
it

best

The

convenient
in

**

whole

English,

Protection
it

century;
of

summary

throughout
of

vols.,

chapters

book

Dawson,

in

given
F.

by

valuable

relations
in

ing
read-

only

Macmillan,

make

the

covers

read.

commercial
G.

which

clopedias
ency-

German

English

for

1902,

English.

merely

not

American
is
25:

of

policy

King,

studied,

German

century

March,

be

readers

commercial

London,

Germany,

book,

policy

of

Ernest

Y.,

must

general

the

Y.,

English

have

struggle

Longmans,

commercial
to

German

N.

articles
N.

development

vols.,

anonymous

London,

German

of

An

to-day,

information

of

source

is

of

history

however,
in

History

of

**Seignobos;

German

of

given

references

Topical

the

the

there
Most

bibliographies.

in

in

economic

up

Germany,
of

1896-1903.

Empire

German

of

history

Harper,

Y.,

century.

histories:

narrative

general

the

is

commerce,

reading
or

Ogg,

commerce,

number

of

books,

descriptions

takes

full

to

to

the

history.

political

short

of

parts

confined

similar

1870,

available

readily

the
A

on

earlier

with
to

N.

the

is

which

and

ment
develop1921.

14,

notably

Cyclopedia

is

economic

chap.

references

Homans,
who

and

gives

including

in

M'Culloch

Homans,

commerce

Germany,

student

The

814.

but

century

The

Cambridge,

industry,

10,

the

found

be

will

of

part

**

Clapham,
1815-1914,

chap.

bibliography

H.

J.

Germany,

development,

Econ.

brief

and

France

of

is

reference

single

best

Reviews,

the
teenth
nine-

the
N.

Y.t

CHAPTER
GERMANY

480.
of the
until

Effect

Empire.

UNDER

economic

on

THE

EMPIRE

development

Leaving

"

XL

it in

now

the

of the establishment

topic of commercial

policy

concluding paragraph, we must

attend
Down
to the material
to
development of Germany.
the foundation
of the Empire in 1871, progress, if steady,still
slow.
The best energies of the people were
absorbed
in
was
the great political
conflicts out of which united Germany was
delicate questions of the relations between
to emerge;
the
German
and much
needed
stillto be
states had to be settled,
inside the
accomplished in the reform of industrial legislation
As late as 1862 it was
estimated
of
states.
that five-eights
the people were
stillengaged in agriculture
in other extractive
or
industries.
In comparison with this period of preparation
the progress which Germany has made
since 1871 is startling.
The direct gainswhich Germany made
in the war
with France,
we

return

to

the

acquisitionof the rich provinces of Alsace and Lorraine,

and the receiptof about
indemnity,
$1,000,000,000,as a war
were

large,but

the

establishment

still they

less than

were

the

indirect results:

of national

unity on a lastingbasis,freeing
the people from politicalanxieties,and encouraging them
to
face their economic
and pride in
problems with a new
energy
their strength,and
with a new
This
hope in the future.
and intangibleas it may
political
factor,
be, is stillmost
vague

important; without it the recent

Germany could be regarded only
481.

between

Development
the

of commerce,

founding of

the

economic
as

of

miracle.

1870-1913.

Empire and
408

development
"

In the

the outbreak

period
of the

World

War

the

THE

UNDER

GERMANY

409

EMPIRE

populationof Germany

increased

from

41 to 67

million,about 63%, while the foreign trade increased almost

exactly250 %, four-foldas fast. Comparing the figuresin the
accompanying table with those given for the United Kingdom
in a precedingchapter we
that in 1872 the Germans
see
were
much
behind the English,separatedroughly by an interval of
ten years of development, but that they were
closingthe gap
time passed,and at the end of the period had passed the
as
English in the value of their export trade.
SPECIAL

COMMERCE
OP

While
the

in 1871

GERMANY,

OP

60

proportion had

MARKS

men

out

AND

SELECTED
OP

of 100

fallen in

of

IN

MILLIARDS

DOLLARS.

were

1907

brought about not by an absolute

that
agriculture,
though sometimes
the young
men
and commercial

YEARS

to

engaged in agriculture,
27.
The
change was

decline

of the

number

in

observable,but by
leaving the country for the mines, factories,
centers.
Germany had in 1840 only 12 cities
was

100,000 inhabitants,while at the end of the century it

28, of which the chief,Berlin,was
growing more
rapidly

over

had
than

Chicago; and in 1910 it had 48. The industrial development

duringthe generationending in 1900 may be inferred from

410

HISTORY

OF

COMMERCE

the

following:coal production increased over

pig iron production nearly 400 per cent, and

250

cent,

per

shipping 500

cent.

per

of recent

482. Character
characterized

in

German

commerce.

precedingparagraph

England

"

of the

"offeringone

as

was

in the world."
examples of advanced commerce
In an
earlier period England stood alone; it offered the most
remarkable
example. In 1913 Germany stood alongsideEngland,
not merely as regards the quantity but also as regards
the qualityof her trade. 'In Germany as in England manufactures
most

remarkable

formed

the

major part
approached

of the total value

Exports of
to

materials

raw

less than

coal,as

the other hand

had

if it did not
crude

in

England,

the imports of

until they amounted

grown

food

total imports.

Of

the

took

stuffs had

to about

total value

among

declined

exports of

the dominant

material

raw

proportion
the English.

reach

one-quarter of the total,and

this character
On

and

of the exports; their

and

food

place.
stuffs

of
three-quarters

of imports finished

the

factures
manu-

formed

only 13 per cent,a proportionactuallyless than

that of the English,whose policyof free trade permittedwares
excluded
from Germany by the
to be brought in which
were
the wares
tariff. If we
customs
imported in 1913 in
arrange
do not find a singlefinished manuthe order of their value we
facture
the first 26 items, which
include all those exceeding
among
in value; crude copper
100 million marks
fifth on
was
the list,
but we find no product of factoryindustryuntil we reach
the twenty-seconditem, woolen yarn, which itselfwas
destined
factories and in largepart to be exported
to feed the German
in
we

finished form.
need

first of

Germany's

in
and
one

understand

recent

all,evidently,to study

German
the

commerce

development

of

manufactures.

483. Rapid

founding of

To

development

the

of

factory industry. Before the

of the people engaged in manufactures
"

Empire most
Germany still worked
no

steam

power.

of the industrial centers

In

chinery
home, with simple maSaxony, for instance,now

at

of the country, the manufactures

GERMANY

UNDER

EMPIRE

THE

411

still carried on outside of

cloth,stockings,lace,etc.,were
factories in 1868.
The
proportion of people working in this
has
simple way is still large in Germany, but the number
declined in many
lines of work
(weaving,milling,shoemaking,
etc.),and the great growth of the recent period has been in
the modern
factory industry. Since 1882 the rate of growth
of the factory populationhas been about fourfold that of the
general population. The results of this development have
been indicated in the previous paragraph, and they furnish a
at the time of the
strikingcontrast to conditions as they were
Centennial Exposition of 1876, when the German
representative
reported that in the industrial field Germany had received a
defeat equal to two
Sedans, that German
industry produced
only articles of poor qualityand of slightvalue ("schlechtund
and that Krupp guns were
the only product of which
billig"),
the Germans
could be proud.
484. Resources
of coal and iron.
Germany was favored
in buildingup its modern
by some
important physicalresources
industry. The country had a rich supply of coal, the great
and took in Europe a place barely
of modern
source
power,
second to England in coal production,far ahead of any other
well supplied also with
the raw
was
Germany
country.
materials for the staple products, iron and steel. The
ore
supplies in the province of Lorraine,taken from France in
1871, are the most extensive in Europe. At the time when they
were
acquiredthey were thought to be of poor quality,because
the basic
in them, but under
of the phosphorus contained
made
to yieldmetal of excellent grade, and
they were
process
in addition a valuable fertilizer,
obtained
from the phosphate
with a rapidity
slag. Germany has developed its iron resources
exceeded
only in the United States. It contributed only onetwenty-seventh of the world's iron supply in 1866, but had
of

"

raised its share to one-sixth

at the end

of the century, and

to

passed England in steel

production shortlyafter 1890, and in iron production about
ten years
later: it raised constantlythe figureof its output
about

one-fourth

before

1914.

It

412

while
the

that

of

decade
that

HISTORY

England

before

the

OF

remained
war

it

was

COMMERCE

relatively
stationary,and in
fold
advancing at a rate seven-

of

England.
The richest resource
485. Quality of the people.
of Germany,
however, was its people. The past poverty of the country
and the trials through which
it had gone nurtured
ness
steadia
and thriftiness among
the working classes which
made
them
admirable
members
of the modern
productive organization.
An
effective system of elementary education
was
established in parts of Germany
long before a similar step
had been taken in most
other countries; and practically
all
the people had not only the rudiments
of education,but also,
what
is perhaps more
important, a respect for knowledge,
the best use
desire to learn and to make
of their learning,
a
which were
in striking
contrast with the careless spiritof other
the primary schoolteacher
peoples. It has been said that it was
"

who

for the Germans

won

the victories of 1866

and

could hope now

to beat their industrial
1870; and the Germans
rivals as they beat their militaryopponents, by method
and
and dash.
steady applicationrather than by brilliancy
486. Superiority in technical
training. The effects of
evident in the class of the responsible
careful trainingwere
as
of Germany's industries as in the laboring class.
managers
reached so high a
in Europe had technical education
Nowhere
the appliances,methods, and
development. Not only were
system of organizationsuperiorto those of other states; the
ing
traintechnical schools reached a largerpart of the population,
but
them
not only in the fundamental
subjectsof science,
also in the specialbranches
of production (mining,weaving,
"

dyeing, etc.).
industry;
everywhere apparent in German
to instance chemicals,sugar, glass,and electrical appliancesis
to pick only a few examples from a list which could be greatly
the readiness of the
extended.
Especially noteworthy was
Germans
which
first
to adopt a new
was
process or machine
other country. Englishmen invented
brought out in some
The

results

were

414

demand
and

for

long

build up

so

HISTORY

OF

COMMERCE

credits in that

their trade and

not

and

still avoid

with

content

other

countries;

eastern

serious losses.

sending abroad

The

their

ordinary
the English,Americans, and others;
trade catalogues,as were
they sent personal representatives
speaking the language of
exporters

were

the country,

at least reached

or

communication

in his

prospectivecustomer
Trade

language.

by

some

for

foreign
circulation were
printed in Germany in the followinglanguages:
English, French, Russian, Spanish, Portuguese, Turkish,

Japanese, and
489.

papers

Chinese.
factors

Other

rapidityof their
a departurefrom
forms

own

in

commercial

industrial and
the methods

"

commercial
of the

past, and stimulated

of co-operation in business.
in the

The

aggregations of capitalknown
in

somewhat

States

Germany the "cartel,"of a

had its shady sides but which
followed

banks

methods
the

United

rise of the
"trusts"

great

produced

similar nature, which

some

very

important

tributions
con-

in the making and marketing of goods.

efficiency

to

German

made

new

period which

same

by the
generallyas

marked

was

United

development. The
development forced

so

which

course

in contrast

of the old established banks

States

period when

appeared speculative,but

many

and
profitable^

conditions
effective.

of

to the

England

which

favorable

were

The

in

servative
con-

and
this

mensely
proved im-

great German

banks

new
promoted and financed to a successful conclusion many
enterprisesin industryand trade. The government played an
active part, not merely by such services as were
expected of
the State in other countries,but also by more
butions.
positivecontriIts control of internal transportation,
by the system

in
canals,gave it great power
directingand assistingeconomic
development; and it supported
and
of
most
generously the development
shipbuilding,

of state-owned

the extension

railways and

of German

lines of shipping, for the benefit of

the exporter.
490. Deductions
-~We

must

note

to be made
some

in

estimatingGerman

factors which

help to

account

progress.
for the

GERMANY

THE

UNDER

415

EMPIRE

but which should be

great development of German
commerce,
and
which
therefore do not
offset by other considerations,

represent

contributions

net

themselves

The

export industries from

heavilyon

bounties

actual

government

stimulate

to

had

but
of the

German

The

mans
Ger-

of the

These

exports.
form

nevertheless

taxpayer

possiblefreed the

as

which weighed
tariff,
country, and beyond that,gave

in the

concealed, for instance

far

so

the burden

classes in the

some

welfare.

being taxed for the particularbenefit of

were

the export trade.

the world's

to

to

and

commonly

were

of

portation,
specialrates in transbe paid out of the pockets

business

Furthermore,

man.

the same
privateorganizationsfollowed substantially
practice.
The great "cartels,"kept priceshigh at home to gain resources
with which they might finance their fightagainstcompetitors
much
in foreignmarkets.
it
They won
trade,but they won
sometimes
and sometimes
siders,
at costs, borne
by Germans
by outwhich

need

to be taken

there
Finally,

to be struck.

into account

must

be put

on

if a fair balance

is

the debit side of the

in commerce,
made
not
gains which the Germans
by greater efficiencybut by less honesty: by the imitation of
trade marks, by the briberyof agents, etc. In this regardthey
account

some

the

not

were

their

only

trade

standards

in
of

offenders.

this

Their

way.

commercial

did not

They

morality

an

understand

the

can

see

the

wares

why

to manufacture

development

German

of other

brewery got

them

market

to

wares,

to

of the German

even

when

countries,won

of

accepted
reputation.

If

"

we

add

all

their

goods, to
advantage,we can
export trade,and

they were

better than

no

foreign markets.

the first prizeat Baden

bulk

least,sufficient

unenviable

in trade.

success
Examples of German
these influences helping Germans

enable

at

were,

491.

those which

the

departures from

trade methods

to establish for German

win

Baden,

but

German

French
beer

German
brewers
along the Parisian boulevards.
of their beer to the British colonies
sent an
increasingamount
and India,because they had learned not only all that English
was

sold all

brewers

car

teach

them,

but

they

had

learned,too, the

tastes

416

HISTORY

COMMERCE

OF

and had adapted their

countries,
product to suit these tastes, while English brewers clung fast
to the old methods.
They had greatly extended their trade
in textiles,
carpets,etc.,"not so much because they are cheaper,
in fitting
dexterous
because
as
they are quicker and more
of the market."
their supply to the changing demands
They
had taken away
a
large part of the French export trade in
dolls,by taking pains to fit the doll for the country to which
it is going,gettingEnglish cloths in which to dress a doll for
etc.
England, reproducingexactlynational types of furniture,
placed
the British consul at Paramaribo, disGerman
wrote
wares,
Sheffield wares
in his district,
not because
they were
but because they were
more
cheaper,were
polished
serviceable,
and painted, and arranged for displayin shop windows, while
shelf.
the English wares
laid away
in brown
were
on
a
paper
in distant

of their customers

German

Measuring

commerce

as

we

have

measured

England, by noting the percentage which German

country formed of the country'stotal imports, we
the

period

off in only

and,

on

from

1881

greatly,in nine
The

1909

foreignmarket

one

the other

492.

to

German

ten

of

sales to any
find that in

Germany's share of sales fell

of importance, the Netherlands,

hand, its share

of the

that

grew,

and

great markets

tariff and

the

in

some

cases

grew

of the world.

agrarian party.

It is

"

impossibleto say just how far the progress of Germany in

this period was
furthered
by the government's commercial
policy,for,as will appear, this policyretarded development in
be said
lines to favor it in others.
some
This, at least,may
with assurance,
that the policy was
strikinglycharacteristic
of the
on

The

the

attitude

conditions

recent

discussed
and

of the

German

preceding the
historyof commercial

under

its relation

two

state, and
outbreak

throws

much

of the World

policy in Germany

aspects: its relation

light

to

domestic

War.
may

be

politics

foreign politics.
The protective tariff of 1879 was
to
designed particularly
favor the growing manufactures
of the country. Agriculture
had been in the past an export industry,and the agrarianrepto

GERMANY

resentatives

had

favored

signs of that

were

distant

stuffs from

UNDER

417

EMPIRE

THE

free trade.

Already,however, there
far-reachingchange by which cheap food

parts of the world

were

enabled

to

sell
under-

product; and a moderate protectiveduty on

The
German
the cereals was
granted in the tariff of 1879.
producers of bread stuffs and meat found, however, that they
had underestimated
the danger to which
exposed,
they were
the domestic

and

fices
market
only by sacrithey could keep their home
tions
which appeared to them
desperate. They obtained addi-

that

to the

duties; they managed, under the guiseof sanitary

precautions,to subject the importation of certain foods to
and

expense

and

in the

not

only

when

it was

altogether
prohibited;
in 1902, they obtained
general revision of the tariff,
general increase in the agrarianduties but also a
delay,even

not

prevented the government from

these duties below a certain point, in treaties which

specificprovision which
might make
interest

with

other

powers.

These

favors

to the

ducing
re-

it

agrarian

accompanied by the revision of rates in the

interest of manufacturers, but the government
was
evidently
taking with one hand from the producer what it appeared to
were

offer him

with the other hand.

that

the

higher duties

and

checked

threatened

the
to

in

food

rise in the

is unmistakable

with

evidence

stuffs restricted

standard

of

consumption
living. The policy

impair the abilityof the industrial and

classes to compete
burdened

on

There

foreignrivals

who

were

tile
mercan-

not

thus

gettingthe necessaries of life. On the other hand,

it offered but slight
advantage to the major part of the German
who carried on mixed farming on a small scale;
agriculturists,
its benefits were
of large
mostly restricted to the owners
estates,east of the Elbe river,who specializedin the production
of grain and meat
with hired labor.
What, then, is the
explanation of the policy? It was, to use" the German
phrase,
The characteristic agrarian
a Machtfrage,
a question of power.
was
a Junker, a Prussian
bitions
squire,devoted to the militaryamof the Hohenzollerns,endowed
and indeed
by custom
influence. In spiteof its indusby law with superiorpolitical

418

HISTORY

OF

COMMERCE

democratic features
development, and in spite of some
of its constitution,
archy.
Germany was stillat heart a militarymondetermined
The course
of policywas
by reference not
to the generaleconomic
welfare,but to the interests of those
and militarytraditions
specialgroups which shared the political
of the Prussian monarchy.
trial

International

493.

in

foreignrelations

the

traditional

was

not

was

active

an

of states
France

"

tariff

view

that

wise
Like-

colored

policywas

commercial

by

competition

chants,
struggleof individual producers and merin which
the state should
a
conflict,
group
of the particular
nesses
weakpart, making the most
opposed to it. In 1871 Germany had forced

to the

principlethat each country would

grant the other all commercial

Being

tariff policy.

the

subscribe

to

German

Prussian

merely
but

take

aspects of German

favors accorded

another

power.

minable;
interpart of the treaty of peace this provisionwas
it could be amended
only by formal treaty. Germany

at the time

her

appeared

to

get

more

than

she gave.

she realized

As

strength,however, she
became
dissatisfied with a position of mere
equality. About
1890, under Chancellor von Caprivi,Germany began the policy
of making specialbargains with individual states by treaties
In the negotiations
with Russia each
fixingthe tariff rates.
party stood out obstinatelyfor certain favors, and since
agreement appeared impossibleeach party sought to punish
the other by imposing punitive rates, amounting to prohibitions.
industrial

This

and

commercial

of tariffslasted less than

war

disastrouslythe commerce
each was
glad to reach

between

so

The

she

commercial

Canada, and
a

and

which

to

seems

States

country

relations

similar

conducted

United

agreement

spirit,
however, which

same

in the

an

but

which
was

by

wars

for it affected

year,

the two

countries,that
concession.

mutual

this contest, appeared

of Germany

tariff
have

marked

with

other

against Spain

meditated

like action

states;

and

against
againstthe

prudently refrained from a breach with

was
approaching industrial independence

the

source

of indispensable raw

materials.

GERMANY

tariff of

The

494.

under

treaties framed

passed
The

1906.

to

the

is

the treaties that

of

economic
forward

of

an

academic

the

early years

to be

and

way,

dominance

only

their

economic

her

to further

characteristic
that

policy, and
followed

if

plans
of

had
a

their

German

long been
had

in

long

to many

the

means

had

so

to

look

when

the

customs

discussed

in

Germans

in

practicable plan, shortly

free trade

promise
that

military

summary

results
war.

she

ately
immedito

that

assure

could

resources

manifesting themselves

won

have

international

been

expansion.

of

as

project of

others

ambitions,

significant index

Germany

wars

Germany

it did

for commercial

did not

of Europe

introduce

the

over

but

The

states, but

mercial
com-

bargains in

1917-1918

appeared

to

to wage

on

practice of bargaining

years

as

granted

hard

which

had

War

propose

such

Germany

which

every

Germany

tariff

states

expired.

of the World
not

the

to

to

duties.

tension

many
Ger-

government,

this act, but

the

which

its member

among

some

caused

Europe,

realized,did

driven

by treaty,

treaties

Central

triple

Still,the

apprehension

German

important
union

that

relations
with

of

introduced

vigorously developed,

the

the power

preceding period, to

advantage

enable

to

countries, in spite

to

gave

under

opening foreign markets.

for commercial

not

have

to

until treaties

the concessions

demanded,

framed

were

in the

as

recourse,

and

new

put into effect until

not

made

imposition

supposed

commonly

principle of granting

was

nation;

the

by

war

the

if occasion

hand,

the other

in suspense

individual

to

many
expire Ger-

campaign.

was

the

Before

"

to

ingeniously devised

treaty

favored

most

it,and

to
a

held

was

special favors

which

with

due

were

commercial

was

adherence

nominal

country

tariff

new

offer

to
of

under

Europe.

Caprivi

in 1902, but

419

EMPIRE

Central

1902;

another

negotiated

be

could

THE

Count

for

prepared
tariff was

UNDER

use

well,

as

The

plan

of the

was

encies
tend-

in German
would

have

420

HISTORY

OF

AND

QUESTIONS
other

1. What

by

examples
for

war

COMMERCE

can

TOPICS
find of countries

you

independence

national

or

vigorate
apparently in-

unity?

of

Germany.
development
[Seignobos,chap. 16;
political
chap.
6.]
Schierbrand,
Dawson, chap. 11;
of commerce
under
the Empire. [Whitman, chap.
3. Development
12; Dawson, Evolution, chap. 4.]
4. Prepare, in the
manner
suggested in the chapter on England,
of the chief imports and exports. [Statisticsin
graphic representations
2.

Recent

Year-Book.]

Statesman's
5.

Recent

of

commerce

Germany

in international

526-546;

Bernstein,Growth

[Schierbrand,chap. 13; Arndt,

International

commerce,

of German

Williams, Made

775-787;

1903, 84:

Germany.

five years
Germany
after,
Gastrell,chap. 8 (statistical).]

Review, 1901-2, 38: 130-144;

6. Development of factory industry and
[Dawson, chap. 3.]
The

8.

Methods

Krupp

iron works.

and

1902, 5:

exports, Contemporary Review,

in

National

7.

Monthly,

"

condition

of

factory labor.

[Schierbrand, chap. 14.]

results of education.

[Dawson, chap.

brand,
Schier-

chap. 18.]
in manualleged to explainGerman
superiority
factures
Made
in
and commerce.
Germany,
[Williams,
chap. 7.]
chemical industry,[O. Eltzbacher, in Contemporary
10. The German
Review, 1904, 85: 627-639; or Barker, Mod. Germany, chap. 25.
the mercantile organization. [Findlay,
11. Effect of education
on
Genesis of the German
clerk,FortnightlyReview, 1899, 72: 533-536;
Bashford
in FortnightlyRev., 1905, 84: 692-707.]
12. The German
colonial movement.
brand,
["Veritas," chap. 7; Schierchap. 20; Birchenough in Nineteenth Century, 1898, 43: 182-191;
Keller,Colonization,
chap. 14; Dawson, Evolution, ch. 18, 19.]
13. Development of German
shipping. [Bashford in Fortnightly
Review, 1903, 79: 287-302; Schierbrand, chap. 15: Barker, chap. 24.]
14.
German
transportationsystem and policy. ["Veritas," chap.
6: Dawson,
Evolution
chap. 11: Barker, chap. 22, 23.]
15.
German
tariff policy to about 1890.
[Villard in Yale Review,
9.

Various

1892-3,
16.

1:

reasons

10-20.]

Commercial

17.

The

18.

Tariff

in Forum,

treaties about

agrarian

movement.

policy about

1900.

1: 20-34.]
[Farnam in same,
[Schierbrand, chap. 9.]
[Schierbrand, chap. 12; Schoenhof
Eltzbacher
in Nineteenth
Century,

1890.

1901-2, 32; 105-115;

1903, 54: 181-196; H. Dietzel in Quarterly Jour, of Econ., 1902-3, 17:
in Econ. Jour., 1902, 12: 15-23.]
365-416; W. H. Dawson

XLI

CHAPTER
FRANCE

495.

before

of France

Condition

the Revolution.

"

France

the richest and most

considered,as the reader will recall,
the end of the eighteenth
powerful state of Europe till near
than double
more
century. The populationof the country was
envied by all other
were
that of Great Britain,the resources
exceeded
was
only by English commerce
nations,the commerce

was

and

in

surpassed that
were

considered

respects. The

some

the

most

valuable

French

colonial

sugar

nies
colo-

possessionin

world, and France surpassed England in trade with her

direct neighbors (some of the German
states, Italy,Spain).
and economic
the political
Under
system, however, which had
of time, growth
the country in the course
fastened itself on
was
hampered; and oppositionrose until it burst out finally

the

in the Revolution

of 1789.

Then

followed

period of twentyof bitter war, ending

a

five years of rapid political

change and
finallywith the defeat of Napoleon in 1815.
496.

Effect

of

the

Revolution.

"

The

losses

of

France

need
and colonial territory
during this period in men, money,
only to be suggested;the effect of the wars on French commerce
has already been
described.
here to emphasize
It is proper
the good of the Revolution.
In appearance,
it swept
at least,
all the old institutions,
and liberated the people from
away
which
burdens
ished
they had been bearing for centuries. It abolthe former
class divisions and inequalities
in taxation;
it freed the agricultural
the ownership
classes,and extended
of land; it amended
the former
restrictions on
the pursuit
of manufactures
and
handicrafts; and it established perfect
freedom

of trade

inside

the

country.
422

423

FRANCE

Backward

497.

country

make

can

after 1815

was

industry and

entire breach

an

more

The

suppose.

may

of

features

with

like France

before

people had

not

commerce.

its
1789

No

"

past, and
than

France

the reader

acquired the

skill and

which
the English had
industry and commerce
by generationsof experience. The government after 1815
with strong absolutist tendencies,
still highly centralized,
moved
more
by personal influences than by far-sighted
in

boldness
won
was

and

of the welfare

views

in the

of the whole

of commercial

course

had

people. These

facts appear

tion.
policy followed after the Restora-

made

only the barest beginnings in the

modern
industries depending on
coal and iron, and on
the
applicationof machinery, at the time of the Revolution,and
was
though industries developed when commerce
interrupted
in organizationand technique,and
weak
by war, they were
protection when peace returned,and opporloudly demanded
tunities
for commerce
developed.
France

498.

The

result

tariff in the

French

The
was

tariff system

sluggishdevelopment
the

which

of French

to the

Colbert's

well

as

as

and

tariff of 1664

explain the

in the first part of

to

sumac

the finished
1667

far to

goes

"

protection to shipping,to

century.

materials

raw

part of the century.

commerce

It gave
agriculturalproducts,from wheat
nineteenth

first

has

and

garden roses,
products of industry.

often

been

cited

as

an

tariffs of the
example of high protection,but the French
of the
period before 1850 imposed still higher duties on some
materials of industry (wool,cotton, flax,
most
important raw
duties had risen to a propig and bar iron,steel,alum); many
hibitive

height,and
499.

time

there
of

Sluggishness

when
when

England

many

industrial

buildingup

was

decade

every

were

was

marked

actual

prohibitions.

development.
her system

by

some

"

At

the

of manufactures,

important step

in industrial progress, France

resolutelyexcluded herself from
the influences which would
have stimulated progress at home.
While

England

was

endeavoring

in the country,

to

keep her improved

by forbiddingexport, France

chinery
ma-

aided her

'424

HISTORY

OF

COMMERCE

machinery duties running up to 100 per cent.

invented by a French.Means to spin linen by machinery were
man,
first utilized in England; and
Girard, in 1810, but were
.England could show nearly a million and a half spindles in
by imposing on

1849, against a quarter of

-estimated

in

.amounted

to

in

there

2,000 steam-enginesin France.

The

French

secured

was

480,000.

the

for the iron

to

be

producers

$10,000,000

of the tariff

Effect

-tariffin

on

at

direct loss to the

and

year,

be

can

exports

better customers
of trade

"amount

indirect

an

declared

were

great states in

for

less than

one

France; England

Spain, in Turkey, or in Chile. The

fact somewhat
larger,for smugglers

the restrictions of the

devices

the two

effect of the

in
in

was

The

"

in the fact that in 1829

seen

seventieth of British

commerce.

between

checking commerce

period

"evaded

industry

larger.

500.

found

iron

and in output, but

English in efficiency
home
market
by protective duties,and built

^country estimated
Joss far

still less

were

the

largefortunes

this

the

1840

far behind

was

"up

but

to

Frenchman

steam-engines in Great Britain

while they amounted
6,400,000 laborers,

force of

About

France

"than

that

1827

million in France.

(includingthe

and
tariff,
use

by

of trained

genious
of in-

number

dogs),succeeded

in

wanted
them.
to the people who
bringingwares
This one
example indicates how the French were
losingthe
opportunitiesfor commercial
expansionwhich this period offered
to them
to other peoples. No
more
as
strikingcommentary
the historyof the commerce
be
at this time can
of France
on
furnished than the followingfact: nearly sixtyyears after the
French

Revolution

the

specialcommerce

of the

only just beginningto exceed the figureswhich

-at the

was

it had

attained

The

ing
astonish-

earlier date.

501.

of the tariffby

Reform

increase of French
less than
to

country

two

the reform

this time

commerce

Napoleon m.
in the decade

five milliards of

"

(from
due chiefly

1850-1860

francs) was
of the tariff by Napoleon III. Attempts before
to

to lower

over

duties had

failed because

of the determined

425

FRANCE

and

resistance

organizationof
strong political

the
the

but

the

tectionist
pro-

enjoyed a positionof exceptional

not fettered by the dependence on
which
had
stopped action by the

Emperor

new

strength,and
manufacturing

tne

was

class

decrees he lowered
or
By his mere
previous government.
products and on important
suspended duties on agricultural
material (coal,iron,steel,wool, etc.).
raw
Effect of the reform

502.

commerce.

on

French

"

industry

checked so long in their development,responded

and commerce,
with surprisingquickness. In a period of little over
ten years,

(1847-1859) the
The

steam

period of twenty
in

With

years.

etc.,it doubled.

French

quickly that, according

to

more

than

503.

to

French

its lost ground

estimate,it

three-fifths of

the country

countries

recovered

commerce

so

and

England, which in the previous,

merely doubled, now
quintupled

had

years

fold.
three-

over

Portugal and Greece commerce

rupled;
quadwith Germany,
Switzerland,Brazil,etc., it tripled;
Belgium, the Netherlands, Spain, Italy,the United States,

ten

with

with

commerce

increased

of France

power

took

English commerce
easilysecond place among

amounted

about
the

I860,

trading

of Europe.
The

free-trade

decade

which

toward

greater freedom

have

we

treaty of 1860,

been
of

"

At

the end

of the

studying,in 1860, the movement

trade progressedstillanother stage

between
France and
by the ratification of a treaty of commerce
Richard
Cobden
the
was
England. Free traders,of whom
chief,convinced the Emperor that France would benefit by a
further

reduction

of

duties.

operativesworked 20 per cent

wages, and paid upwards of 10
than

the

class in

Cobden
more

asserted
time

per cent

and

more

for 20

that
per

for their

French
cent

less

clothing

promised the Emperor

that the French
would share in the advantages of the English
if they would
only adopt a similar commercial
policy. The
desirous of winning the good-willand
Emperor, moreover,
was
support of the Englishto strengthenhis international position;
and agreed to the proposalspartlyon this account.
England
same

England;

426

HISTORY

abolished the duties

the

reduced

and

removed

all

on

of articles of French

number

duties

wine

on

and

spirits;while

trade, and

on
prohibitions

half their former

about

COMMERCE

OF

in

amount

origin,
France

scaled duties down

between

commerce

to

the two

to last ten years from its

treaty, which was
of the turning-pointsin European
ratification in 1860, is one

This

countries.

the extension of the free-trade

policy; it marked
from England to the other states of Europe; and it
movement
inaugurated a succession of similar treaties on the part of
commercial

and

France
504.

been
and

other

states

of the

Results

the Continent.

on

treaty of 1860.

oppositionin France

to

the further

people prophesiedthat the

many

There

"

had, of

reduction

course,

duties;

to free trade

movement

entail the industrial ruin of the country.

would

of

The

results

did not

expanded greatly,
justifythese predictions.Commerce
in the period 1859-1869
from
to be expected; it grew
as
was
5.4 to 8 or from 3.9 to 6 milliards of francs,accordingas the
general or specialtrade of the country is taken as the standard
This commerce,
of measurement.
however, was servingFrench
There
and not
destroying them.
industry and agriculture,
materials
increase in the importationof the raw
was
a marked
of wool and silk brought into the
of industry; the amount
country for manufacture
in

spiteof

there
The

was
use

the

more

disastrous

in ten

and

years,

Civil War

effects of the -American

iron,both important indexes of industrial

of coal and

development, extended
industry and commerce
the period 1861-1866.

largely;and the populationengaged in

by nearly a million workers in
grew
The increase in the products of French

market

doubled

increase in the importation of cotton.

considerable

industry found

than

both

abroad

and

at

The

home.

it is true, but slowlyexcept

increased,
in the case
of specialproducts; but the consumption of manufactures
within the country extended greatly,
as new
purchasers
which formerlyhad been beyond their means.
appeared for wares

exports of manufactures

505.

It has

Return

long

been

to

protectionafter

the misfortune

the

war

of France

with

Germany.

to have

her

"

com-

427

FRANCE

industrial interests at the mercy

this point in her growth her progress
was

of

mercial and
at

outbreak

of the

losses of

the

great

with

war

Germany.

From

the

country

recovered

surprisingto those who

did not

realize the

of the

power

war

French

established.

to continue

for

protection. It
French

Though
a

was

agriculturewas

its merits, lent itself too

allowed

were

tendency was

the

French

new

with all
republic,
of class
representation

the

easilyto

of protective duties.

Growth

tariff

new

was

which
established,

quarter, though it allowed

one

abated
duties

by

treaties with

multiplied.

now

also agriculturebecame
a

quintal (about

centimes
to

treaties

he

sectional interests.
506.

on

the

system which

strongly toward
period of bad times in business, and
beginning to feel the competititionoi

countries outside of Europe;

and

saving

war

the commercial

few years,

direct

quickness

thrift and

also of the liberal commercial

the overthrow
had

with

the

led, however, to the

Napoleon III, and in time to

of

of the government

overthrow

The

people.

politics;and
stayed by the

220

free traders

While

they

whether

had

they

a
1881, therefore,

duties

many

of the higher rates

states.

Proposals

to

about
to be

increase

only manufacturing industrybut

clamorous
for protection. The
duty
pounds) of wheat, which had been 60

Not

raised to 3 francs in 1884, to 5 in 1887,

since 1861, was

7 in 1894.

raised

many

other

In

"

in the
become

had
past the agriculturists

by

1890

raised wheat

almost

been

unit for protection,

cattle,
grapes
tariff
new
was
entirely
or

or

sugar-

an
beets,hemp or
adopted,
tant
imporconsiderablyhigher than that of 1881, affectingsome
freedom
in the
and not affordingthe same
raw
materials,

flax. In 1892

negotiationof commercial
507.

Attitude

of the

treaties.
French

toward

commerce.

"

A writer

published a study of the French tariff system in 1892

thought that public opinion would force a revision of the
Such was
the country'scommerce.
tariff if it checked
recent
actuallyits result. Exports and imports did not reach again the
figuresof 1892 for five and six years respectively.Neverthe-

who

428

less the

that

northwestern
in

raised

were

prevailedin

which

French

The

Europe.

and

commerce

COMMERCE

OF

protective duties

.far above

career

HISTORY

had

extend

not

choose

between

of the

traditional

to

maintenance

the

could

organization. They

again in 1910 to a level

the neighboring states of

their

trade

without

willing
unlowering the barriers of their tariff. This step they were
it would
have
entailed
to take, apparently because

efforts and

sacrifices in the

The

and

caution

of their industries.

readjustment

disinclination to

change, which

peasant population of the country, appear

the

to have

and to have
policy,
to hold fast to what they had, rather than
involved in a strugglefor a higher place
In such a strugglethey were
"of the world.
because
of the scarcityof their mineral

the great
determined

decided

of commercial

course

mark

the French
the chances

to take

in the open
at

market

disadvantage,

and

resources

still

of the many
backward
features in their industrial
-organization.On the other hand they could comfort themselves
more

because

with

the reflection that

were

qualifiedas

of trade.

The

possiblean
not

be

they

were

to

of the

neighboring states
the possiblebenefits

renounce

of the country make

great agriculturalresources

approach

to

which
self-sufficiency

Statistics of French

table

in the

if any

elsewhere

could

considered.

508.

The

few

on

page

commerce

429,presentingthe

course

commercial

on

comparison with the

509.

Position

has

been

said

"

of French

commerce

of the World

period immediately precedingthe outbreak

War, illustrates what

period.

in the recent

regardingthe

checks

expansion; and provides the

commercial
development of other

of France

of taste and

of artistic

Americans.

Thus

in recent

commerce.

"

posed
imof

means

countries.
In matters

in which
personal aptitude and
finish,
rivaled;
untrainingare the important factors,the French remained
in production on
a
large scale,in which elaborate
organizationand the extensive use of machinery determine
did not compare
with English,Germans, or
success, the French
the

positionin

French, though always assured

the

commerce

of the

world, could

spectable
re-

not

430

have

resorted

been

of two

payment

marines

the

1901, 70

vessels, a

per

of

under

tonnage

transportation

the

French

flag

that

in

form

of

out

now

and

ships in

in the

was

sailing

for

of the

in

were

France

of

date

two-fifths

1912

rather
is noteworthy

It

merchant

tonnage

foreign commerce;

of

hurt

commerce.

of

more

merchant

have

to

ing
build-

no

other

the

to

the

done

while

trade,

led

aid

to

have

seem

French

have

year

They

and

output

of the

cent

means

purposes

of

total

stationary

fleet

interests

of the

that
in

ships.

rapidly advancing,

were

helped

than

French

the

keep

dollars

million

of French

renewing

and
than

four

to free

movement

1880, and

again since

to

to

of the

period

the

during

large extent

COMMERCE

OF

HISTORY

the

most

total

form

of

sailingships.

Burdens

1.

from

by the Revolution.
Adams,

Hayti

chap.

20

3.

Growth,
4.

about

St.

The

on

France
The

is the

under

difference

10.

The

International

after

[Adams,

1815.

of

manufactures,
p.

1860.

commerce,

tariff,

customs

ff.].

710

[Seignobos, chap.

III.

between

Year-Book,
the

third

protectionist
6:

[A. K. Fiske

state.

6.]

Hist., vol. 2, chap.

[McCarthy,

chap. 32.]

Cobden,

Journal, 1896,

hist.,chap. 3;

following topics in French

Cyclopedia,

treaty

[Statesman's
8.

freed

1884, chaps. 2, 3, 10.]

France

of

trade,

export

Napoleon

commercial

9.

of the

[Homans,
under

What

independent

an

condition

one

and

import

Morley,

EC.

were

Seignobos, chap. 5.]

report

as

John, Hayti, Lond.,

political

system.

6.

colony and

French

chap. 18;

France

industry

Rand,

chap. 25, above;

["Review

ff.; Spenser

5.

7.

Backward

1850:

colonial

41;

as

Write

and

commerce

chap. 15.]

Growth,

2.

French

which

TOPICS

AND

QUESTIONS

"general"

France,

and

"special"

merce?
com-

Commerce.]

republic. [Seignobos, chap. 7.]

reaction.

[Herbert

A.

L.

Fisher,

in

Econ.

341-355.]

situation

Monthly,

of France

1901, 3:

in international

252-273.]

commerce.

[Lebon, in

XLTI

CHAPTER

four

1912

commercial

EUROPE

importance.

the

In

"

nearly one-half of the

than
oneworld, considerably more
carried

great states
of the

foreign commerce

NORTHERN

AND

CENTRAL

minor

of

States

511.
year

OF

STATES

MINOR

on

Three
of
dependencies be counted with them.
these, England (includingthe British Empire), Germany, and
the
the subject of study, and
France, have already formed
fourth, the United States, will be considered at length in a
attend to the commercial
later section.
We must
ment
developnow
in other countries,reviewing their history more
briefly
shall take up
accords with their minor
importance. We
as
and Belgium, which stand
first two
countries,the Netherlands
would
rank high
the leaders,and which
far below
not
even
half if their

them

among

remind

to

Spain

when

it

for their small

the

reader

or

Austria

that

It may

Belgium

is

was

for

Commerce

not

be

sary
unneces-

of the

creation

province subject

until the
time

joined to the Netherlands

1830, established d,s an
512.

size.

century; the country had formed

nineteenth
to

but

of the

period of the French Revolution

incorporated in France, then (1815)
in a singlekingdom, and finally,
in
independent state.
Netherlands

to 1830.

"

Dutch

merce
com-

had

long passed its best days when, toward the close of

the eighteenth century, it received
what
seemed
to be its
death blow in the war
with England, growing out of the American
of independence. Before the Netherlands
had begun
war
to recover
it was
from its reverses
engulfed in the movements
of the French
Revolution; was
conquered and heavily taxed
nental
by the French; suffered under the ban of Napoleon's contisystem;

and

lost for

time
431

its most

valuable

colonial

432

HISTORY

OF

COMMERCE

the close of the wars, in 1815, it recovered its

colonies,except Ceylon, the Cape of Good Hope, and parts of

possessions.At
Guiana, which
it could

not

and

for them

Rotterdam

as

their

saw

Netherlands

had

the

commercial

merchant

and other ports. In

Hamburg,
periodthe

possessionof

its former

recover

done

once

in the

learned to do for themselves

peopleshad
had

remained

position. Other

what

and

the Netherlands

carrier;and

commerce

dam
Amster-

London,

to

pass

with the earlier

contrast
striking

in 1824-5

English,but

only 7 largeships under

the

England had about 800. The union with

Belgian provinces,lastingfrom 1815 to 1830, increased

the

area

construction

while

and

hindrance

rather
The

commerce.

the

the

framed
tariff,
sentiment

internal
than

trade

help

of the
the

to

Belgian industries
to meet

in the

both

country, but

development of foreign
required protection,and

their demands

Netherlands

was

which

and

had

grown

period of decline,hampered free commercial

ist
protectionin the

up

relations

with

other states.
513.

Dutch

after the

since 1830.

commerce

separationof Belgium
remained

and
tariff,

outside

"

The

Netherlands,even

in 1830,clung to the protective

the

great

current

of

commerce.

the culture-system,
as
adopted in
policy known
their East Indian possessions,
Java, returned a large
especially
to the government, but prevented commercial
revenue
ment
developthere,while the West Indian possessionssuffered severely
from
the lack of labor followingthe abolition of slavery.
for freft trade had grown
Meanwhile, however, a movement
A

colonial

up

which

they

were

resulted,after 1850, in
little more

than

nominal

lowering of
in

amount.

tariff rates
The

until

growth

railway system gave to the Netherlands

destined for
a new
importance as a place of import for wares
central Europe; and the country profitedlargelyby the growth,
either side,of the two great industrial powers, England and
on
Germany. In the last half of the century the growth of the
The
has been rapid and nearly constant.
Dutch
commerce
of the

annual

European

value

of the total

specialtrade (exportsplus imports,

CENTRAL

in this

AND

NORTHERN

including the precious metals) was

case

ten-year intervals from

433

STATES

MINOR

follows

as

at

1910, in milliards of dollars:

.1,.2,.2,.6,1.0,1.5,2.4. Figuresfor the general trade of the
would
country, includinggoods imported and then re-exported,
be considerablylarger.
514.

Position

Netherlands

of

1850

the

suffers

to

Dutch

from

country is largely"made"
which

the great rivers have

chief

occupation.

in

lack

recent

commerce.

of mineral

of sand

the

as

resources,

land, composed

The

"

and

silt

depositedat their entrance to the

The
sea.
Dutch, therefore,have been handicapped in their
attempts to share in the development of modern
industry,
and
find in agriculture rather than
in manufacturing their
have

They

succeeded

in

certain

special

manufactures

(diamond-cutting,chocolate,oleomargarine),in
gaining a leading place,but cannot compete with other nations
in the staple machine
industries.
They produce a surplusof
materials
and
dairy products for export, and import raw
manufactures
at

be

cannot

produced in sufficient quantity

the

but

strikingfeature of their trade

general the same
products appear
among

home;

that

which

in

is the

fact

both

the

imports and the exports. The Dutch, favored by their national

training and geographicalposition,and diverted from other
of livelihood

by lack of resources, are the middlemen

of Europe, arranging exchanges between
other countries.

means

515.

far

early industrial development.

it

area

produced

with

mineral

in 1912

before

Belgium

was

Flanders

the
a

and

full value

of

of

ore

these

half

as

districts have

resources

been

spiteof its

much

coal

as

iron,and other metals.

was

industrial state,and for

distinctly
other

in

resources;

than

more

France, and has also rich suppliesof

Even

Belgium is

"

richlyendowed

more

small

Belgium

noted

many

realized
centuries

for their

factures.
manu-

did the Netherlands,

as
Belgium did not suffer,therefore,
from
the period of French
occupation; it was freed by
the French

from

gild period,and
which

many

trammels

it found

enabled

on

in France

it to

endure

industrydating from
a

market
the

for its

the

factures
manu-

restrictions of the

434

HISTORY

OF

COMMERCE

System. During the period of union with the

Netherlands
to
(1815-1830) Belgian industries continued
and colonies;
develop,with the aid of Dutch capital,
commerce,
the districts representedby Ghent, Brussels, Charleroy, and
for the manufacture
of textiles,
widely known
Liege became
checked
for a time by the
iron wares,
etc.
Progress was
breach
with the Netherlands
(1830),but this was
just the
and
period when steam
began to be applied to manufactures
force Belgium quickly
and with the aid of this new
to railroads,
recovered
her former
position. The prosperityof Antwerp,
the one
Belgium, was
seriously
important port of modern
in closingthe Scheldt to
threatened
by the act of the Dutch
willingto pay for this means
navigation; but the Belgianswere
of access
to the sea, and finally
bought outrightthe privilege
of using it.
516. Belgian commercial
policy. During the firstdecades
of Belgian independence the tariff which
had been inherited
from
the period of Dutch
made
rule was
more
strict,and
before the middle of the century it had been changed so as to
grant considerable protectionto agriculture,
industry,and the
carrying trade. Belgium, however, like the Netherlands, is
too small a country to be able to afford high protection. After
Continental

"

1850

free-trade movement

led to lower

duties and

to

liberal

commercial

the policy which has since been followed

treaties,
in this period to
in the main.
at work
Many influences were
further commerce,
chief among
them
the technical improvements
in manufactures
and transportation;so it is dangerous
to argue
that the prosperityof Belgium in the followingperiod
due to the policyof greater freedom of trade. It is certain,
was
could not have attained the
however, that Belgian commerce

development it did without this policy.

517.
merce.
Survey of the recent
development of Belgian comGiving figures roughly in millions of dollars,the
in the protectionist
total commerce
rose
period, 1840 to 1850,
from 70 to 80. Tn the followingten years of transition it rose to
190; in 1880, after twenty years of nearly free trade,it had
"

CENTRAL

AND

risen to 560, and

600, 856 and

in the decades

1480.

Antwerp owed

NORTHERN

the recent

been

expansion the port of

second

positionas

the ports of the Continent.

of which

435

STATES

since then the figureshave

this commercial

To

its

MINOR

only to Hamburg among

analysisof the different items

An

trade of the Belgians was

composed shows

exportingindustries were manufactures

(yarns
while they were
port
iron, glass,etc.),
textiles,
obliged to ima large part of their food
supply,and of the raw materials

that their strong

and

for their industries.

518.

Another
that of

Switzerland

to industrial

obstacles

development.
exceeding
country, small in area but with a commerce
With
its agricultural
greater states,is Switzerland.
many
:

"

restricted by the area

covered by mountains,
capabilities
with no
important mineral resources, Switzerland has to

and

depend

In

asset.

the

it,but also
unit,and
The

early part

hindrances

519.

of the nineteenth

into small

cut

was

peoplemade
loweringof

its chief industrial

people as

the fact that it had

from

1848, when

of its

century it suffered

the restrictive tariffs of the states

from

only

not

the character

upon

Switzerland

trade

Position

of the

to extend

Swiss

trade.

on

finallyswept away
federal republic; and

greater freedom

tariffrates abroad

tolls

in

were

became

of their

use

itselfnot

piecesby dues and

internal

to

surrounding
become
a political

in recent

at home

their

and

of the

rapidly.

commerce

commerce.

the

"

land
Switzer-

has

tures.
developed almost entirelyalong the line of manufacThe
agriculturalpopulation has actually decreased
easier to purchase food products
since 1870, as it has become
from abroad by the export of manufactured
products : silk and
clocks and watches, etc. Swiss industries have
cotton textiles,
not

reached

the

countries,and much
and

with

simple

hard

work

and

securingin
starving in
scanty

of the work
home

those

is stilldone

machinery.

in

more

some

share

attempt

These

factories,
conditions
imply

of their

own

in the world's

to

choose

between

commerce,

support themselves

country.

advanced

outside of

low returns, but the Swiss must

this way
the vain

resources

of

development

by

or

the

436

HISTORY

OF

COMMERCE

520.

of commercial
Austria-Hungary: survey
ment.
developThe state of Austria-Hungary,though it was
in size
the third in Europe, ranked only seventh in commerce
in 1912,
taking place after the Netherlands, Belgium, and Russia.
earlier chapter,describingconditions before
Reference
to an
1800, will suggest that Austria-Hungary entered the nineteenth
and political
conditions.
century handicapped by its economic
It requiredroughly a full half of the century to remove
the
"

serious obstacles

more

century has
win

to

time

given

not

place with their

and

progress,

enough
advanced

more

the latter half of the

enable

to

the

people to

neighbors of

the West

of Europe.
521.

to the

Obstacles

which

Of the difficultiesunder
are

the most

among

which

growth

of

and

commerce

labored

commerce

industry.
"

the following

important: (a) the character

of the ernment,
govlike that in France

personalabsolutism
before the French Revolution, absorbed
by the family interests
of the ruling house and by questions of foreignpolicy,and
to the interests of the people as a whole;
attendingbut slightly
which
maintained
was
(6) the system of prohibitive,
tariffs,
was

in any

than
strictly

more

separationof

other state

of central Europe;

different parts of Austria-Hungary

(c)the

by tolls and

tariffs;(d) the slightdevelopment of manufacturing industry,

due

not

to the lack of natural

of the people and

from

the

522.

persistenceof restrictions dating

period of the gilds.

Gradual

of 1848
which

ness
to the backward-

but

resources

to the

removal

began

of these

movement

obstacles.

"

for constitutional

led in time to the fall of absolutism

and

representativeassemblies.

the

of modern

(a)The

At

tion
revolu-

government,

the introduction
same

ever
time, how-

of nationalism
the various
awakened
was
spirit
among
in Hungary
claims (especially
peoples,and their conflicting
and in Bohemia) have seriouslyaffected the working of the
parliamentarysystem. (6) The prohibitivesystem, which had
had
or
absolutelyexcluded the most important manufactures
allowed them
to be imported only as a specialfavor and by

the

438

HISTORY

OF

COMMERCE

bounties,in developingits shippingtrade to important

proportions. The first shipsto pass through the Suez canal in
three steamers
1869 were
of the Austrian Lloyd, but in 1913
less than one
twentieth
of the tonnage using the canal was
Austrian.
The
two
ports that served the monarchy, Triest
for the Austrian part and Fiume
for the Hungarian, were
vored
facould
by every sort of assistance that the government
render,but remained stillports of the second class,surpassed
in importance by a score
of other ports in Europe.
525. The
Scandinavian
states; their position in recent
The Scandinavian
states (Sweden,Norway, Denmark)
commerce.
generous

"

held

which

others

lower

rank

will be

among

commercial

countries

than

later,but in a geographical
be properly considered
grouping they may
here; and their
in proportionto the irrelatively
commerce
was
important,at least,
small population. These
in
states were
characterized,
general,by a lack of coal and by the slightdevelopment of
tageous
manufactures; and by a soil and climate which are disadvanculties
diffito the ordinary operationsof agriculture. The
inhabitants to emigrate,and
of life have forced many
of their
the most
forced those who
stayed at home to make
the products
extractive industries (forestry,
mining, dairying),
favored
of more
of which they could exchange for the wares
nations.

The

great branches

mentioned

when

time

of world

of

the

trade

Baltic

was

one

of the

long past. The rest

been but slightlyaffected if it had
while such a
Scandinavian
countries,
was

commerce

Europe would have

been separatedfrom the
separationwould have entailed ruin

on

them.

Denmark, with a population

had
taken
of but slightly
advantage
two million,
over
dustry,
in the dairy infacilities to specialize
commercial
of modern
in which it has been a leader and teacher of Europe.
add to butter the pork products raised in connection
When
we
and the eggs from Danish
with the dairies,
poultryyards,we
526.

have

Denmark.

The

"

the articles which

total value

of the

littlestate of

made

up

more

country'sexports.

than

two

thirds of the

CENTRAL

627.

country

AND

Norwegian

Norway;
so

NORTHERN

that

barren

suited to cultivation

great that

the

tenth

1 per

Norway, also,a
of its

cent

is

area

portant
plough, dairyinghas been an imdairy and forest industries supplied

The

people

In

"

439

the

the

of the exports.

most

STATES

shipping.

far less than

by

industry; and

MINOR

difficulties of life
forced

were

of the

to

take

land

on

the

to

were

so

they
fisheries,

sea;

national

income
from
the
gained one
and
merchant
had, in proportion to their numbers, more
shipping than any other people. In 1913 Norway ranked
second in tonnage of sailingships (afterthe United
States),
total
fourth in
tonnage (afterGermany), and fourth in tonnage
of steamers.
The
positionof Norwegian shipping was
even
iron
and when
higher before the use of
shipshad become general,
way
Norway could utilize its forest products in shipbuilding.Norenjoyed the most brilliant period of its shipping in the
generation following1850, when it took the place of the United
States as one
of the great carryingnations of the world.
628.

than

Sweden.

the other

Sweden

"

somewhat

was

Scandinavian

countries

fortunate

more

in its agriculturalresources,

during part of the century has been able to export

a
duced
surplus of grain. It has been recently,like the others,reand found its chief strength
to importing the cereals,
From
in products of the forest,the pasture and the mine.
its
and

rich iron
the iron

depositsit contributed raw materials for maintaining

England.
industry in other countries,especially

A
and

profitableexercise

on

commerce,

chart.

and

reduction

of the minor

each

in the following chapters is

TOPICS

AND

QUESTIONS

study

countries

of the statistics of

statistics to

of these

treated

the form

in this

present-day
a
graphic

of

[Statesman's Year-Book.]

Experience of the chief Dutch colony during the Napoleonic wars.

[Day, Dutch in Java, chap. 5.]
2. The
culture system.
[Same, chaps. 7, 8.]
1.

3.

Political and

social

conditions

Y., 1901; Campen

479-492; National Review, 1890,
Dutch

life,N.

in

the

Netherlands.

in Westminster
15:

748-763.]

[Hough,
Review, 1890, 134:

440

HISTORY

A
4.

Recent

5.

Recent

6.

Labor

OF

COMMERCE

political
historyof Belgium. [Seignobos,chap. 8.]
history of the Swiss. [Seignobos, chap. 9.]
conditions

in

Switzerland.

[Scaife in Forum,

1901,

31:

30-46.]
in

Austria-Hungary
[Seignobos, chap. 13.]

Conditions

7.

monarchy.

of

Political development

8.

the

in

period of the absolute

Austria-Hungary in

the

last half of the

[Same, chap. 17.]

century.

Austria-Hungary's colonial experiment. (Bosnia-Herzegovina.)

[Monthly Review, 1902, 8: 72 ff.]
commercial
10. Recent
policy. [Philippovichin Economic
Journal,
9.

1902,

177-181.]

12:

conflict of nationalities.

The

11.

[Edinburgh Review, 1898, 188;

1-36; Quarterly Review, 1901, 194: 372-395, with

Fortnightly Review, 1901, 76: 605-614.]
states.
12. Recent
history of the Scandinavian

map;

Coubertin

in

[Seignobos,chap.

18.]
14:

agriculture. [Westenholz in Monthly

Danish

13.

Feb., 69-77; Givskor

Iceland.

Modern

14.

Rev., 1902,
[QuarterlyReview, 1894,

12:
179:

Review,

1904,

410-419.]
man's
58-82; States-

Book.]

Year

Danish

The

15.

in Economic

West

Indies.

[Waldemar

Westergaard, The

Danish

Indies,1ST.Y., 1917.]

West

BIBLIOGRAPHY
narrative history of the minor

The

present conditions

Neighbors,

are

described

states

in volumes

is well treated in
of the series Our

Seignobos;
European

N.

Y., Putnam.
On Belgium, see Belgium, its institutions,
industries,and commerce,
Brussels,1904, a handbook
published by the government for the Louisiana
Purchase

have been
Exposition. Similar handbooks
published for the
Scandinavian
peninsula; they include much historical material and are
valuable
and

Karl

for

sources

our

purposes.

See Norway,

Fischer,Kristiania,1900; Sweden,

edited by Sten

Konow

its

people and its industry,

Industrial
Sundbarg, Stockholm, 1904.
Drachmann,
development and commercial policiesof the three Scandinavian
countries,

edited

by Gustav

published for the Carnegie Peace Endowment

of commercial
student

development,

but

is not

an

in 1915, is the best survey

book for the elementary
easy

published a valuable historical sketch of

the development of Scandinavian
shipping in Journal of Polit. Econ.,
1:
329-364.
1891-2,
to

use.

Kiaer

has

CENTRAL

Switzerland

On
and

C.

D.

of
in

the
the

London,

series

On

1897.

N.Y.,

Habsburgs,
of

Our

Swiss

The

see

Cunningham,

London,

NORTHERN

AND

Confederation,
1889,

and

Austria-Hungary
Lovell

European

[1893],

Neighbors,

by

W.

and

Francis

Dawson,

H.

see

441

STATES

MINOR

S.

the

volume

N.

Y.,

O.

Social

by
Putnam.

land,
SwitzerThe

Whitman,
F.

H.

Adams

E.

realm
Palmer

CHAPTER
STATES

OF

XLIII

SOUTHERN

EUROPE

Condition

529.

of Italy in the first half of the century.

of southern Europe none
has gained so rapidly

Of the countries

"

Italy in the latter part of the nineteenth

century. The
explanation,however, must be sought largelyin the fact that
sunk so low as Italy in the first part of the century.
none
was
earlier period, described
Conditions
of an
in the previous
Here
is the
chapter on Italy,lasted far into recent times.
description given by an
English author, writing in 1878:
"Before
1848, Italy,all except Piedmont, seemed
hopelessly
crushed.
held her in
Austria, the Pope, and the Bourbons
Even
their grasp.
the comparatively native
sovereigns of
and all Italy groaned like a
Tuscany had turned oppressor,
in the grasp
of the torturer.
Commerce
man
languished,
divergent fiscal laws and arbitrary raids on private wealth
as

choked

up

the channels

of intercourse

between

one

part of the

and

kingdom

tures
shipping, without manufacanother; without
or
foreigntrade of a solid kind, possessedof no political
security,Italy was, thirty years ago, more
insignificantin
the eyes of neighboring nations than Greece or Spain is now."
In southern
Italy the government was incompetent to perform
the first of its public duties,the protectionof its citizens. It
could
who

not

withstand

the half-civilized corsairs of Tripoli,

even

pillaged the Neapolitan ships,and

United

States

had

pirates,bought
530.
was

Lack

of

divided

shown

from

the

them

and
political
among

seven

proper

finally,
long

way

to

deal

after the

with

such

disgracefulpeace.
commercial

union.

"

The

sula
penin-

independent states,so stratified

442

STATES

as

the natural

to cut

development

the

six had

states

lines of

the

trade,and

national

of any

443

EUROPE

SOUTHERN

OF

to

prevent effectually

commercial

life. Of

these

protective tariffs characteristic of the

period,and

toll stations existed

hibitive
pro-

inside the frontiers.

even

manufacturer, shippingsilks to Florence (about

stations in 150 miles; a merchant
1840), had to pass eightcustoms
his way from Bologna to Lucca was
stopped at seven
on
A Milan

stations in the stretch of about

have

been

in

miles.

125

desperatestraits except
the sea, and

all but

find

commercial

importance,

not

to

two

of the

some

advantages of situation

the

productiveresources

about

1900, sixth in the list of Italian ports, and

prosperityat
and

freedom"

were

denied
631.

in

in other

or

It

parts of Italy.
of

Italian

herself
extricating
of customs

impressionin Italy,and
a

but

"

by the formation
form

Genoa.

had

gained its
this time simply by
the comparative security
which
foreignersfound there,and which they
going to Naples

Establishment

Germany,

or

surrounding territory;it stood,

to the

fraction of the trade

of

could

would

opening for
trade.
It is noteworthy,however, that the leadingcommercial
which
one
city of Italy in this period was
people now
many
would
be puzzled to place on the map,
Leghorn. It owed its
touched

states

hence

that

Commerce

similar

union.

unity.
"

from

somewhat

example

of

similar situation

unions,made, naturally,an

led in 1847
The

The

attempt

to
was

an

attempt

there

paralyzed by

to

the

oppositionof Austria,who saw in it a blow aimed at her political

influence in the peninsula. The
Italian states, unlike the
commercial
union only as a result of
German, could secure
national

of preparation for it. National

unity,not as a means
in the brain of a great
unity was in preparation,nevertheless,
obtained
statesman, Cavour, and was
through his far-sighted
he served,Victor
plans and the cooperation of the king whom
Emanuel, ruler of Piedmont, In the few years following1859
real kingdom of Italy was
and the country,
a
established,
which
for nearly fifteen hundred
had formed
the prey
years
of rival powers, became
at last a power
herself,
worthy to rank

444

with

other

the

COMMERCE

disappeared,and

the

whole

tariff of Piedmont, which

the customs

The

of Europe.

states

great

trade

internal

OF

HISTORY

old barriers to

accepted

country

extremely liberal.

was

have changes of
Rarely, if ever, in the history of commerce,
such sweeping importance taken place so quickly. The tariff
extreme
to choose
of the Two
of the Kingdom
an
Sicilies,
of
$2,500 on a centner
example, which levied a duty of over
silk goods, gave place to a tariff of United Italy,in which the
of $10.
correspondingduty reached a minimum

Survey of

532.
on

Italian

upheaval
political

of this great

commerce

since 1860.

commerce

The

"

effect

instantaneous.

was

1861, we find that in this

than doubled.
brief interval the value of imports into Italymore
It will be convenient
to insert here figuresgiving the total
value (exports plus imports) of the specialtrade of Italy,at
Contrasting the

1860

figuresof millions they

in round

from

rapid rate

Then

came

decline,and

the value

end of the decade

in the ten

1860

years

to

in

stoppage;

Reduced

1910.

to

320, 440, 440, 590, 1,020. The

at

and

1859

years,

intervals from

ten year

given

two

follows:

as

are

130,

reader will note

that trade grew

1870, and

slowly

some

more

there

years

of exports

than

to dollars and

was

to

actual

an

considerably less

was

1880.

at

the

beginning. There was a recovery

after.
1900, and a rapid advance there-

at its

closingin

figures show, however, that Italian commerce

but slowly in the latter part of the century, and

Italy had

The
advanced

study

of conditions
then

commerce

movement

to the inhabitants

the great states

its close would

far from

large population.
annual

at

The
of

that

commensurate

with

share

of each

average

much

was

commerce

of most

show

the

country's

Italian in the

less than

that falling

of the other states of Europe.

only Spain

and

Russia

Among
lower, in this

ranked

respect.
This

survey

suggests the topics which

in the

followingsections. We
rapid development of Italian
for the check

to progress

know

must
commerce

after that

demand
the

discussion

reasons

1880, and

till about

date; we

want

for the

an

explana-

446

HISTORY

OF

henceforth

under

labored

merce

increased

duties

One

disastrous

been

half of her

or

result of the

new

revenue

tariff appeared

Italyand
Italy'sbest customer, taking at
total exports and furnishingabout

the outbreak
had

new

high

duties,under
protect Italian manufactures, and,
increased duties on
agricultural

designedto

furthermore, under
products.

COMMERCE

of

tariff war

between

quicklyin

France.
one
a

France

time

nearly

quarter of her

the two
countries had, however,
imports. Trouble between
been brewing for years;
they were
followingdifferent lines in
both sides of the
on
foreignpolitics,and the protectionists
which
with jealousy a commerce
stimulated
frontier viewed
tries.
the development of international rather than national indusThe
tariff of 1887 called forth a reply in kind from
met
by a rejoinder from Italy; and so the
France; this was
reduced the
duties grew rapidly on either side,and had soon
.

between

commerce

the countries

to

small

part of its former

important export industries of Italy

(wine,raw silk,fruits,live stock, eggs) suffered severely,and
absolutelyruined.
producers were
many
The
535. Italian agriculture; poverty of the
people.
of tariff policyexplains,in large part, the check which
course
had experiencedin the last decades of the
Italian commerce
dimensions.

The

most

"

century.

Reasons

why

this

commerce

was

so

small

in proportion

review now
some
we
as
populationwill appear
features of the Italian productive organization.
so
of the large states of Europe showed
Few
large a proportion
small a proporof the peopleengaged in agriculture,
so
tion
siderably
found in modern
in manufactures, as were
Italy. Conthan half the people lived directlyfrom the land.
more
in this respect; the
Not
only did Italy show backwardness
The land
itselfbackward.
character of Italian agriculture
was
courage
worked
was
largely"on shares," a system which does not enimprovement or stimulate efficiency.A government
commission
reportedin 1881 that production depended almost
conlabor, and that capitaland intelligence
entirelyon mere
to

the

STATES

tributed
and

only a

OF

minimum.

the

understand

surplus which

why the

must

treatingthe

demanded

government

and

of

advantages of soil and

that, of the small

of the

mass

the

When

share

for

consider

we

taxes,

we

can

wretchedly

were

bare

nullify

agriculturist
obtained,

people

with

ful
waste-

far to

went

crop,

climate.

good

themselves

content

447

EUROPE

Antiquated implements and

careless methods

the natural

SOUTHERN

living.

poor,

It is worth

noting that about 1900 the consumption of sugar in Italy

was
only about six pounds per head, less,
even, than in Turkey,
while in most
from 20
European countries people consumed
to

pounds or even
heavily taxed.

50

was

favors
who

farmers

to

of the

mass

536.

branch
than

as

any

not

chieflythe great landlords,while

were

for bread

more

protection for

need

industrial

the

what

see

to market

strongest

Italian

more

turists
agricul-

products,
products in free

their
from

abroad.
in

the Italian tariff had

success

of it.

suffer

to

the

of their

most

imported

wares

because

agriculture was

As

"

they did need the chance

to

extend

to

manufacturers, but the people

to

bound
production in Italy,it was
other from
the protectivetariff.

exchangtefor
now

well

people simply paid

did
and

protectivetariff appeared

Manufactures.
of

luxury, which

The

as

gained by it

Salt itself was

more.

have

We

building up

forced,in large
industry on which the people were
part, to rely.
yond
beItalian manufactures, in 1880, had scarcelyadvanced
the meager
Nearly
beginnings which we found in 1860.
all conditions were
adverse.
tant
Capital was
scanty. Of impor-

the native

the country lacked

materials

raw

at

an

expense

which

serious,perhaps, of all
industrial leaders,men
energy.

We

may

in

orders,for

no

take

Naples,
other

business to make

both

of technical

who

reason

nearly doubled
the

difficulties was

as

silk and

manufacturing,had

of modern

Coal, the mainstay

all but

typicalthe
declined
than

that

ends meet, and

its
lack

knowledge
case

of

to

hemp.
be

ported
im-

price. Most
of

and

macaroni

class of
business
facturer
manu-

important foreign
he had, as it was, enough
for adding
saw
no
reason
some

448

OF

HISTORY

COMMERCE

to life. The

singleimportant advantage which

that of cheap labor. The
Italian manufacturers
enjoyed was
lax in its factory legislation,
and
allowed
government was
their labor supplyfrom women
and children,
employers to secure
a

at

worry

new

extremely low rate.

The
great development, therefore,which

an

shown

have
been

due

natural

into

pricespaid by
The

is shown

close of the

attract

artificialcharacter

men

of Italian

the fact that at the very

of the protected manufactures

one

strong enough to contribute

was

solely
enough

by
strikingly
not

century

to

facturers
manu-

century has

consumers

disadvantages,and

manufacturing industry.

manufactures

of the

fitness of the country, but

raised

has

counterbalance

last decades

natural

to any

which
tariff,

to the
to

not

in the

Italian

in any

considerable

degree to

the exports of the country.

537.

Shipping;

features

of Italian

national

vanity,of

they

had

state

resemble

feelingwas

colonies.

Some

"

policy seem
the desire

on

for themselves

made

to

of the most
have

been

the part of
a

unfortunate
the

result of

now
Italians,

that

great state, to make

their

other

in all respects. This

great powers
tion
certainlyresponsiblein part for their determina-

the

to build up

system of national manufactures,regardless

It led them

of expense.

to

profuse expenditures for the

shipping, which

of

resulted,
indeed,in

couragement
en-

growth
of the merchant
marine, but created in it merely a costly
luxury. The Italian navigationcompanies charged high freight
antiquated vessels.
rates, and included in their fleets many
The

instinct of

the lead of other

led
imitation,finally,

the

colonial fever

money

and

lives

the African

disastrous

the attempt to build up a dominion

Their attempt ended in
side of the Red Sea.

(Adowa, 1896), and

such

enterprises
grew

dare

to

Italian station

expansion. They did not

prevalentin the eighties,and spent

in
lavishly,

failure

carry

the Italians to follow

in colonial

powers

escape

on

out
on

so

later

the

popular oppositionto

strong that the government

projectfor

coast

of China

the

establishment

(San Mun,

did not
of

1899).

an

STATES

Recent

638.

OF

of

progress

449

EUROPE

SOUTHERN

The

Italy.
"

preceding sections
designed to make

avowedly critical in tone, and are

clear the great gap which separates Italy from the leaders in
It is important,however,
the world's industry and commerce.
that the reader should distinguishItaly,on the other side,from
been

have

such backward

Spain and Portugal. Though Italy

not so poor
as
they, and it offered vastly richer
was
poor it was
promises for the future. In the closing years of the century
it showed

countries

marked

an

in

advances

awakened
showed

as

lines.

Italian

agriculturists
of their profession;they
the possibilities
to improve their methods, and by various

to

eagerness

many

forms of association and cooperationthey scored great advances.

The

exports of dairy and

and

ten years,

became

more

secured

Italian manufacturers
assistance

to

natives

the technical

eigners.
they formerly depended entirelyon foremancipated themselves,in part, from coal,
of water

their skilful management

enjoy a high reputationfor

of power
liberal

more

from

now

for which

They

by

poultry products doubled in about

important than the export of wine.

and

by

and

power,

have

come

electrical appliancesfor the transmission

other purposes.

treaties with

The

other

tariffhas been
and

states

by

made

ation
reconcili-

in the period before

France; and commerce
evidence of the capacity for healthy growth.
gave
639. Spain.
much
Spain, with an area
largerthan

with

1914

that

"

of

Italy,and

with

population more

in 1912

lay not

with the country, which

less than

commerce

in mineral

which

under

of the Moors

bloom

like

made

to

period before

1800

not

of various

succeeded

in

large,had

has been

families and

garden, but
their

betteringconditions

with

the

opportunities.

evil that bad

shaken

even

fault

is perhaps

resources

century, but experiments in constitutional

monarchs

as

the skilful agriculture

people who have neglected or misused

Spain furnishes a strikingexample of the
work
in economic
can
development. The
of the

half

half that of the Italian. The

the richest in Europe, and

was

than

politics

personal absolutism
off in the nineteenth

government

under

under

republic,have

greatly.

The

mass

of

450

HISTORY

people remained

the

inefficient and
life under

OF

ignorant,and

corrupt.

There

these conditions.

enterprisesmerely

as

can

Shrewd

of their leaders

be

wholesome

no

were

economic

used economic
politicians

draw

to

means

most

from

money

the

public

while the investor

pockets of consumers,
worker
without political
influence was
deterred from enteror
prise
by the heavy taxes which were
heaped upon him.
in the first half of the century.
540. Spanish commerce
A partial reform
of the Spanish colonial system toward
the
close of the eighteenth century led to a growth of trade with
the colonies,so that it formed, if the figurescan
be trusted,
which was
a considerable
part of the total Spanish commerce,
small at best. The promise of commercial
development inside
the Spanish Empire was
of short duration.
While Spain was
stillharassed by the Napoleonic wars, revolutions began among
the Spanish colonies on the American
continent; and as soon
as
they had achieved their independence they used it to trade
with states like England rather than with the country which

treasury

from

COMMERCE

or

the

"

had

asked

The

commerce

much

so

of them

and

could

offer them

so

little.

Spain with other countries was hampered by

the Spanish commercial
policy,which an Englishman of the
time
the
on

of

called "one

systems

of

imports

and

50 to 100

per

perniciousand

trading exclusion."
on

exports, and

but also many

been
would
have

cent

commerce

the

of the most

government

which

set

these

Duties
included

absolute

restrictive of all
were

levied both

only rates of
prohibitions.Spanish

starved
rules had

not

out

of existence

if

ciency
not, by its ineffi-

of evading them.
corruption,furnished the means
A veritable army,
including,it is said, 300,000 persons, of
whom
third were
one
armed, found its chief occupation in
maintained
factories only
smuggling; Spanish manufacturers
members
of
to mask
the sale of contraband
goods, and even
trade.
the government
engaged in the contraband
The
541. Recent
of Spain.
commerce
turning-pointin
the recent historyof Spanish commerce
about the middle
came
and

"

of the century, when

the worst

abuses

of the old tariff

were

STATES

The

off.

shorn

SOUTHERN

OF

reform

followed

was

country'strade,which

to

grew

451

EUROPE

by

rapid increase in the

than

more

fourfold in the

forty

the increase in this

following.Especiallynoteworthy was
periodof the importation of the implements and raw materials
of industry (coal,
machinery, textile fibers,etc.),
showing that
at last beginning to seek a place for herself among
Spain was
years

not, however, blind

must

attained

by

our

colonial and

Such

nations.

commercial

modern

commercial

to the United

important colonies

the

to

eyes

of the old restrictive features.

many

indications

of

progress

fact that

policy which

The

loss of the

States in the

it

retained

remaining

of 1898

war

was

was

Spanish industries,and they have been supported

since then by a protective tariff which
bore heavily
in Spain. The
on
producersas well as on all the consumers
many
considerable development in mining (iron,
quicksilver,
copper,
due
and
and capital,
the native
to foreignenergy
etc.)has been
than
Spaniards offered as exports to other countries littlemore
dessert for their dinner tables: wine, fruit,nuts, and raisins.
that Spain suffered seriously
It is noteworthy and significant
a

blow

severe

from

competitionof California in the sale of fruit in Europe;

perishableof wares, in which a nearby country ought

the

this most
to

to

without

the market

control

such

in

effort,was

slovenly fashion

people 6,000 miles distant could

offered to
from

the

1890

the

1910

remained

commerce

542.

excel them

in Paris

consumer

to

ported
packed and transby the Spaniards that a

In

"

London.

qualitythey

In

figuresshowing the value

almost

Portugal.

or

in the

the
of

period
Spanish

stationary.

all the

respects which

concern

dent
stu-

Portugal is but a miniature of Spain,

with the faults of Spain exaggerated rather than lessened by
of recent

the weakness
but
credible,
in the

as
were

and

smaller

when

size of the

it is nevertheless
condition

same

these words
well

commerce

of

an

they

engaged

as

it was

fact,that
some

English author
were

in

written

"It is

scarcely
agricultureis nearly

country.
hundreds

would

in 1843.

of years

apply
Few

now

of the

since";

nearly as
ants
inhabit-

rich
occupations other than agriculture;

452

HISTORY

COMMERCE

OF

remained

unworked, and manufacturing has remained

throughout the century. After 1850 it could still
insignificant
be said of the Portuguese that "their entire faith is reposed in
and
high duties."
protectionism,monopolies, restrictions,
Portuguese trade, nearly ruined already,received a further
blow by the separationof Brazil about 1820; and though considerable
the East
colonial possessionsin Africa and
were
retained,the Portuguese have shown no capacity to base on
of any
them
commerce
importance. By exports, of which
the most
wine and cork were
important, the Portuguese were
but the backwardness
able to satisfytheir most
pressingnecessities;
mines

of

can

of this country,

trade
the

commerce

be

approximately equal

in 1911

Netherlands,was

it is realized that the

when

seen

less than

one

in

population to

twentieth

of Dutch

trade.

Social and

1.

vol. 1,

economic

TOPICS

AND

QUESTIONS

conditions

in

Italy after 1800.

[King, Hist.,

chaps. 3-5.]
of United

Italy. [Seignobos,chap. 11, middle part.]

of Italyabout 1850.
3. Commerce
[Romans, Cyclopedia,p. 1114 ff.]
4. Burden
of debt and taxes.
[King and Okey, p. 270 ff.,chap.
Taxation
and business in Italy,Forum,
chap. 4; W. Calkins,
15; Villari,
1902, 33: 333-345.]
5. Italian agriculture. [King and Okey, chap. 8; Villari,
chap. 11.]
of
classes.
6. Life
Peasants
of Romagna,
the agricultural
[Phillipps,
68:
FortnightlyReview, 1897,
407-417.]
7. Poverty of the people. [King and Okey, chap. 6; Villari,
chap.
4; Strutt,Monthly Review, 1901, 4: August, 62 ff.]
8. Emigration.
gration
[King and Okey, chap. 17; Schuyler,Italian immiinto the United
States, Polit. Science Quarterly,1889, 4: 480Formation

2.

495.]
Italian manufactures.

9.
10.

1897,
11.

The

148:

[King and Okey, chap. 7: Villari,

chap. 12.]
Italian colonial venture.
[Edwards in Westminister
Review,

Keller,517-531.]

477-489;

Recent

commerce

of

Italy.

exports, imports, countries traded

12.

Amer.

Commerce

of Italy with

Review, 1903,

177:

treat
[Statesman's Year-Book;
has been already suggested.]

with, etc.,as

the United

247-259.]

States.

[Luzzatti,in North

CHAPTER

XLIV
EUROPE

EASTERN

543.
"

The

Great

size and

attention

and

small

of the Russian

commerce

imagination of

men

have

Empire
long been

impressed by the size of the Russian

empire, which included

at the full.
an
area
greater than that presented by the moon
Combining the characteristics both of Europe and of Asia,
Russia was
almost a world in herself,
and, indeed,was called by
of her rulers "a sixth part of the world," worthy to rank
one
continent.
Yet this great state took a place in modern
as
a
below

commerce

petty

Belgium. A country of
by internal trade many

countries
such

like the

Netherlands

and

size

might, of course, secure

of the advantages which
smaller
seek in international
countries must
exchange. The United
States presents an example of a territoryso largeand so richly
endowed
that it can
afford,in considerable degree,to renounce
with the rest of the world, and can
still maintain
commerce
from its own
resources
a
high industrial civilization. Russia
has not enjoyed a similar success.
It had
a
comparatively
sluggishinternal trade; and it lacked industrial civilization.
We
seek in the history of commerce
must
an
explanation of
vast

these facts.
Historical

for backward

The
development.
few paragraphs devoted
in a previous chapter sugto Russia
gested
ing
Durthe main reason
for the country's backwardness.
ing
advancwhile the peoplesof the West were
centuries,
many
the people of Russia were
in civilization,
facing away from
against Asiatic
Europe, occupied in defending themselves
of
of the great movements
princes. Russia shared in none
early European history: feudalism, chivalry,crusades, rise
544.

reasons

454

"

EASTERN

EUROPE

455

of towns,

It was
devoted
Reformation, Renaissance.
entirely
to the strugglefor self-preservation.
When
it became
part of
the European world, therefore,about 1700, it brought with it
into modern

times

characteristics of

many

unformed, halfthat date it has been trying,

up with the rest of Europe.

developed organization; and since

and

it is
545.

stilltrying,to catch

now

Russian

toward

so

far

as

grew

1800.

Peter

The

"

Great

fluctuations,
during
expression in commerce
we

before

1800

as

time

nine fold the volume

to

the

various

it found

last fiftyyears

So

initiated by

progress,

continued,with

about

commerce

an

however,
slight,

had

in

that it amounted

been

of

movement

about

In

regard the
rapid advance; commerce

which

can

it showed

in 1750.

the beginnings of Russian

only

1700,

the century.

trade,

about

fiftymillion dollars.
still practically
in the position which
Russia was
it had
occupied in the time of the Hansa, dependent on the West
for all its finer manufactures, and supplying raw
materials in
1802

to

and flax,crops
which
exchange. Hemp
rapidly exhaust the
soil,and for the cultivation of which the great tracts of fresh
land in Russia offered an advantage, were
the chief exports,
wood, grain,tallow,hides,furs,
Among others on the listwere
feathers,etc. The Russian nobles exported a certain amount
of linen,which they forced their serfs to make
for them
that

they might
manufactured

have

the

means

of

and
purchasingforeignluxuries,

also iron for sale abroad.

The

among

appearance

metal, which we are used to associate with

advanced industrial countries,is explainedby the fact that
of fuel for the iron
still an
charcoal was
important source
manufacture, and of this the boundless Russian forests offered
abundant
an
supply.
of transportation. Almost
546. Means
nothing had been
of transportation the vast
done
as
yet to unite by means
Roads
existent,
nonstretches of territoryin Russia.
were
practically
and goods were
transportedby land only in winter,
the
the rough ground on
when
they could be sledged over
the exports of this

"

snow.

The

water-ways, with which

the

country is

so

abun-

456

HISTORY

dantlyprovided,had
and

the

were

OF

COMMERCE

been connected

chief

feet of water, and

when

the ice melted.

broken

were

built to draw

boats

with

the

or

current

rudely constructed,and

were

fire-wood

or

only two

at the end

of the trip.

portation
uncertaintyof such a system of transobvious, but it was, nevertheless,
remarkably
water
routes
some
were
on
only one or two cents

are

cheap;

The

water

flat-boats,
holding

on

floated down

were

were

and

inconvenience

The

laden

tons, but

for timber

up

importantcanals,

transportation. Goods
winter, to await the high

several hundred

three

few

of

means

brought to them on sledgesin

of the springfreshets. They were
sometimes

by

rates

ton-mile.

per

Chief

547.

almost
the

"

all the

the

Archangel,situated
of the White

the time

of Peter

conditions

foreigntrade

across

commerce

coast

The

ports.

of Russia
frontier

western

the river

on

Sea, and

the

of transportationconfined
to

the

sea,

and

insignificant.

was

Dwina, a few miles from the

leadingport of Russia before

the Great, stillretained

respectableshare
of commerce,
and was
visited every year by ships from England
In relative importance, however, it had
and the Netherlands.
declined greatlyafter the foundation
of St. Petersburg, which
the

became

soon

trade.

rival

South, where

important

most

was

Russia

rapidlyin
Napoleonic wars,

1793, rose
the

outlet

for the

this time, however,

at

Sea.

commercial

up

the

in the

territory

Odessa, which was founded in

importance, especially
during

the Baltic trade

when

country's

growing

only recently secured

had

the shore of the Black

on

suffered

severe

check.
548.

During

Development

that

of this check
of

to the

Crimean

the first half of the nineteenth

grew

behind

up

can

be found

(1854r-1856).
"

century Russian

steadilybut slowly; the rate

of the precedingfiftyyears.
to progress

War

of increase
A

in the

was

merce
com-

much

partialexplanation

adoption,in 1822,

factures
tariff;the importation of many
foreignmanuprohibitive
lutely
absowas
textiles,
porcelain,glassware,etc.),
(clocks,
forbidden.
Shortly after the middle of the century,

EASTERN

however,

came

457

EUROPE

turning-point. The

England

and

other

Russia.

It awakened

Crimean

War, in which
Russia, is generally

engaged with
admitted
to have yielded to neither of the chief combatants
volved.
it inadvantages proportional to the costs which
in one
It was
benefit to
however, of immense
way,
states

were

the

It raised

first to

heed.

Reforms

the

was

549.

attention.

but scant

1861, by which
from

liberated

free

the

The

Russia.

the

Czar

system.

lines to which

himself

The

"

we

form
re-

can

pay
of the serfs in

emancipation

part of the Russian

of government.

system

result of the

tions
antiquated condi-

people were
resembling medieval bondage, and
It secured at least a partial improvemen
It was,

greatest influence

for the introduction

occasion

of

railroad

fruit in many
It led to the

land-holders.

in the
name

of the

condition

realization of its backwardness.

for reform

considerable

politicallife,which

growth

bore

movement

became

and

economic

in

demand

to

country

on

of the modern

had

found

to
finally,

the

commerce,

railroad system in

itself

hampered in
carrying on the war
by the lack of transportationfacilities,
bent every energy to remedying the defects. The
that it now
of the war
at the outbreak
railroads of Russia measured
only
In the ten
about
600
miles.
following the railroad
years
system grew to over
2,000 miles, and in the next decade to
government

so

built mainly to
10,000. Though the first lines were
serve
designed
militarypurposes, those constructed later were
of the country; and it is
to develop the economic
resources
the importance of this development of
hard to overestimate
of modern
to a country which stood
the means
transportation,
about

in such

need

sore

550.

Development
can

followed

be

after the middle

foreigncommerce
what
the

of it

it had
commerce

Russia.

as

of

commerce.

in

the

of the century.

The

"

growth

of Russian

In the decade

of the country increased

been, and
of any

was

other

results of the

growing

at

to

commerce

1860-1870

more

this time

forms
re-

than

the

double

faster than

country in Europe, except that

458

HISTORY

OF

COMMERCE

neighboring state, Austria-Hungary. Some

significant
appeared in the direction and character
changes, moreover,

of

The

trade.

of Russian

great gains of the period

were

made

Russia, where the wheat fields of the rich "black"jarth" district were
It
brought within reach of a market.

by

southern

was

about

exports

that wheat

the first place among

the
from flax and its products. Commerce
by way
Sea increased very rapidly,while the Baltic did

this time

away

of the Black

won

share in the commerce

of the country,
keep its proportional
and the proportion of trade findingits outlet by the Arctic
not

had

Commerce
with the west
insignificance.
the land frontier,
which
of Europe across
formerly had been
restricted by the difficulty
of transportation,
faster
even
grew
and gave an entirelynew
than the Black Sea commerce,
portance
imrelations with neighboring states.
to trade
land
Engshare of Russia's commerce
had enjoyed the largest
during
Ocean

sunk

to

the first part of the century, but could not

in competition with
then

by

in

of

course

soon

other

many

of

of

middle

of the

this time

Europe,

but

the

trade

freedom

at

of industries

Character

551.

they

have

Russia

at

the

"

Russia,like

states, enjoyed the

been

greatest
the

duties levied in Russia

considered

lower

century, and

than

much

high

in

western

the

rates

rulingin

lower

than

the rates

century's close.

at this time

was

stillalmost

exclusivelyagricultural.

supply their simple needs for clothing

but nothing like the
and implements by domestic
industries,
of power
with its extensive use
western
factoryorganization,
machinery, had as yet appeared. Attempts to stimulate such
and protection,
had resulted in
an
organization,
by privileges
failure. The Russians
not a people with a giftfor mechare
The

serfs had

commerce.

customs

much

were

in it.

period followingcloselyafter

The

century.

the first half of the

in force

the

would

country,

enabled
development, was
rapidlyin Russian commerce,

and

European

in

forth
hence-

industrial

rapid

her way
the largestsharer

was

own

This last-named

Germany.

the railroads to win

and

hold her

learned

to

EASTERN

It has

anism.
the

their

samovar,

expositionof
few

were

for the

country

which

world

invention

from

came

part by Germans.

most

wares

of the

manufacture

stillalmost

were

only

is

for

apparatus

samples of modern

owned

that their

The
world
making tea.
displayedsamples of Russian industry,but
the products of villagecraftsmen, and the

1867

of these

most

said of them

been

459

EUROPE

entirelyraw

The

of the

exports of the

products,and

the country contributed

factories

the

to the

factured
manu-

commerce

simple description:yarn of
flax and hemp, cordage, string,and sacking.
552. Recent
In spite of these conditions
history of the tariff.
the government
pursued since about 1870 a policy
of protection, which
strict with the
constantly more
grew
of time, and which furnished at the end of the century
passage
the most
extreme
example of protection to be found among
were

most

"

Comparing the tariff of 1868, which was

comparatively liberal,with the tariff of 1891, we find that
duties on some
in the following
rose
important manufactures
cotton
measure:
on
goods and glassware,to double; on rails
Even
and locomotives
to quadruple or
more.
more
striking
and
the increase on
serious was
more
partly manufactured
civilized states.

Duties

wares.

on

rose

leather and

yarns

to

twofold

or

more;

petroleum and wrought iron to threefold;on sulphuricacid

This is the
to four or seven
fold; on cast iron to tenfold.
seeking commercial
advantage
period in which Germany was
by bargainingin tariff rates with other countries,and in which
on

occurred

the
At

above.

bring her
Russia
Berlin
rates

had

tariff

war

was

great borrower
market.

of the

tariff in

reduced

that

has

Russia

and

needed

the

raised still more,

noted

been

again later Germany was

neighbor to terms by financial

money

been

Germany

able

and

this time
eastern

with

to

pressure;

support

of the

however, the

after these
1903, and even
by treaty bargains they left the general
a

revision in

level

higher than before.

553. Development
and cost of manufactures.
policym Russia gained its object,an

"

The

increase

tectionist
proin the

460

HISTORY

COMMERCE

OF

manufacturing industryof the country. The product of home

manufactures
rose
greatly in value, and the importation of
declined in proportion. This
foreign manufactures
object,
however,
suited
other

attained

was

modern

the

to

which

states

at

great

was

of manufactures

system
have

we

Russia

cost.

considered.

than

It

less

even

Italy or
capital,

lacked

tellige
knowledge, leaders, laborers of steadiness and inwhich
practically
everythingexcept raw materials,
present in abundance.
Manufactures, therefore,were

technical

"

were

conducted

at

an

far above

expense

that

in

common

other

countries,and could be maintained

only by forcingthe people
to pay
far higher pricesfor their wares.
A person
could not
without
as
a sewing needle
get so much
contributingan extra
the

support of the home

to the

sum

manufactures.

The

policywas

questionable,as the profitsof these manufactures

in large part to foreignstock holders,who
went
utilized an
still unpreopportunity for which the native Russians were
pared.
Even
from the political
the
of
standpoint
policy protection
in Russia
attended
with danger; many
events
was
more

indicated

the factory laborers

that

against the autocracy which

554.

Effect

of the tariff

had

adapted

to

machinery, such

of

use

agriculturein America.

costly,whether
that it was

of the

not

type, and

afford

machinery
even

stillused

people, at best, were

still the bad

so

much

United

the

the

such

effects of the

servile

culture.
agri-

peculiarly
harvesting

were

to

of

progress

machinery
in

so

Russia,

Russian

mated
esti-

found

much

for agricultural

or

bound

it profitable

The

Russians.

scythes of

antiquatedmakeshifts.
ignorant and

serious

States

as

plows, harrows,

being.

most

cultivatingand

times
as

into

The

imported or manufactured
A
to only a slight
extent.

were

the farmers

and

them

country

tariff made

spend nearly twenty

implements
could

modern

The

introduced

that
to

it

the

the first to turn

its effect upon

tariff was

contributed

as

brought
"

great plains of
the

be

agriculture.

on

aspect, however, of the Russian

The

would

The

mass

peasants
a

modern
of the

by custom, showing
condition from which
they

462

policy has

HISTORY

made

been

OF

only

COMMERCE

glaringby

more

these

occasional

exceptions.
Commercial

556.
"

for Russia's

reasons

eastern

movement.

of the historical influences

Preceding sections have sketched some
which prevented Russia from taking a part in world-

with

commensurate

commerce

great state, which

This

map.

place in commerce
Belgium and the

the

space

in the

she

covered

sixties took

on

the

only

sixth

above
countries, rose
Netherlands
in the earlypart of the seventies,
and secured fourth place,only to be passed again by these
littlestates and for a time even
by Austria-Hungary. In 1912
sixth among
Russia
still ranked
European countries,eighth
all countries of the world,in the value of foreigntrade.
among
due largelyto
This decline in commercial
importance was
the conscious
restricted
the West.

European

among

voluntary action

and

which

of the government,

people and the people

government, however, regardsall commerce

No

and
injurious,

its

between

commerce

the

for losses in the

government endeavored
by expansion in the East.

Russian
West

to

of
as

atone

In

that

her industrial inferiors.

people who were
imports which would
By trade with them she hoped to secure
not compete with her own
products,and sought to win a market
for her newly founded
factories. The manufactured
products
which were
too high in priceto compete in European markets
of western
could be sold in the East so long as the cheaper wares
ever,
extended,howEurope did not reach the field. As commerce
direction Russia

met

in the last decades

markets

eastern

them

the

in the

unless

policy of protectionwhich
and

the government

doors

of eastern

check

in the

the

Course

was

she

saw

could

she had
forced

markets
war

of

the

to

with

other

which

powers,

that her

apply

to

established

into the

expansion,designed to
political

militaryand

557.

century, Russia

threatened

were

same

West;

of

of the

icy
pol-

close the

received

its

Japan.

Asiatic

trade.

"

In

no

period of

the

her Asiatic
across
century has Russian commerce
frontier formed
important fraction of her total foreign
any
nineteenth

EASTERN

29

EUROPE

464

HISTORY

OF

trade.

At

second

half of the century, for

COMMERCE

the

beginning and end of the century it was about

tenth of the total; in the interveningtime it was
one
rather
less. The difficulty
of transportationover
the great stretches
of almost trackless territory
confined the trade with the Far
East to objects comprising great value in small bulk
(tea,
a
nd
directed
Russian
rather
the
to
Asiatic
commerce
cloth,etc.),
countries on her southeastern
frontier (Persia,etc.). In the
showed
and

lent liberal aid in

The

most

the

was

furtheringRussian

strikingevidence
extend

to

government

interests in the East.

of the determination

its influence
of

construction

rather

the

toward

of the Russian

the Pacific Ocean

Siberian

Railway (1891). This

economic
an
undertaking; it was
failed to develop sufficient traffic

politicalthan
enormously expensive, and
was

above, the government

interest in this branch of trade,

increased

an

noted

reasons

commercial
its way
as
a
enterprise. Its failure also
in the field of international politics
tory
was
signalizedby the victo

pay

of Japan in the
Russia's
definitely
Far

558.
examine
date

the

States

of the

map

of Europe

state

of Turkey

Peninsula,and
north
the

ambitions

of the

to

Balkan

included

of most

some

half dozen

their

place in

have

neither in their

dominant

Asiatic

If the reader

"

considerable

European

system.

nor
political

of the

territories

Balkan
to

even

the

century has witnessed

nineteenth

states

will

he will find that at that

1800

of this land

part in the

power.

occupied the whole

independent

the

play
an

checked

in 1905, which

Peninsula.

about

The

Danube.

liberation

reached

Russia

put in her place

and

East

with

war

from

Turkish

rule;

have

emerged

and

These

and

taken

states, however,

in their economic

tion
organiza-

eastern
maturity. Like the Russians, the peoples of south-

Europe belonged for centuries to Asia rather than to

Europe, and the period of Turkish misrule,lastingdown into
checked
their development.
recent
times, has effectually
very
Their

states

were

constantlydisturbed by
ization
dynasticquarrels. Their economic organ-

stillin the making,

and
religious,
racial,
in large part, medieval.
was
still,

Roads

were

scarce,

EASTERN

roads

good

and

of

methods

almost

were

with

for

and

singlehandle,

plow

by gildslike
559.

those

of the

of the

Commerce

Manufactures

rapidlychanging, as

railroads and
have

of the Balkans, however, has been

its promise than

by

to less than

million dollars.

"

Conditions
have

brought

them

West.

The

The

and

Servia

cases,

cised
exer-

have

reached
in touch

commerce

yet important rather by

as

its performance.

the contiguous states

some

steamers

civilization of the

advanced

the

still

were

Ages.

States.

the peoples of the Balkans, and

1882

crooked

Middle

Balkan

and

piece of wood
their grain on
the open

it.

over

implements

primitivedescription.

and were, in
stage of the handicrafts,

in the

with

The

threshed

ground by driving horses

been

unknown.
of the most

were
agriculture

cultivators stillused

Some

465

EUROPE

total

tween
be-

commerce

Bulgaria amounted

The

aggregate

in

commerce

countries,Roumania, Bulgaria, Servia and

to considerably less than
one
1910-11, amounted

of the four Balkan

Greece, in

of the total trade

per

cent

the

commerce

of Sweden
The

Denmark.

depended
currant,

almost

seedless raisin which

it

in Servia

took

Spain

foreigncommerce
entirelyon one

Corinth, whence

pig

or

that of the currant

world, and

of the

of the

kingdom of Greece
product, the so-called Zante
got the

carried to

was

in

name

from

of currant

The

the island of Zante.

positionalmost

by

of the littlecountry

even

or

exceeded

was

equal

in

importance

Greece; great herds of swine

to

kept

were

in the oak

forests,and contributed largelyto the chief export,

that of animal products. On the plains of Roumania
wheat
for export by a wretched
was
populationof tenants and
grown

laborers,who

were

still serfs until

1864.

The

governments

by protectivetariffs
and various privileges
to stimulate the growth of a mining and

of

some

of the

states

have

endeavored

manufacturing industry; but the countries of

Peninsula will find in agriculture
their chief resource
time

to

come,

by exchanging

and

will develop their

their surplus of

of central

and

western

raw

commerce

the
for
most

products for the

Europe.

Balkan

long
rapidly
a

factures
manu-

466

HISTORY

OF

QUESTIONS
Character

1.

COMMERCE

AND

TOPICS

of internal trade in Russia.

[Wallace,chap. 12; Palmer,

chaps. 10-12; Schierbrand,chap. 9.]

The

period of Mongol rule and its effects. [Wallace, chap. 14;

Rambaud, History of Russia, N. Y., Burt, $2, vol. 1,chap. 10; Thompson,
chap. 2; Noble, chap. 3.]
of people and production in the time of serfdom.
3. Condition
lace,
[Walchap. 28; Palmer, chap. 5.]
4. Traveling by roads and rivers in modern
Russia [Wallace, chap.l.]
2.

Crimean

The

War.

[Seignobos,chap. 27, first part.]

6. The period of reforms.
[Wallace, chap. 27.]
7. Faults of the Russian
administration.
[Wallace,chap. 24, Schierbrarid,chap. 11; Thompson.]
8. Emancipation of the serfs. [Wallace,chap. 29; Thompson, chap.
4; Noble, chap. 7.]
9. What
the chief exports and imports of Russia; with what
were
5.

countries

was

the most

important

of Russia conducted?

commerce

man's
[States-

Year-Book.]
10.

Character

[Hourwich

and

in Journal

11.

Domestic

12.

Recent

of the foreign trade of modern

significance
of Polit. Econ., 1892-3, 2:

manufactures.
fiscal policyand

Russia.

284-290.]

[Palmer, chap. 20.]

brand,
protection. [Wallace, chap. 36; Schier-

chap. 3.]
13.

in modern

Manufactures

4; Oseroff,The

1899,

chap.
129-144.]

Russia.

industrial

brand,
[Palmer, chap. 19; Schierof
development
Russia, Forum,

27:

agricultural population after emancipation.

[Wallace,chap. 31; Palmer, chap. 8; Schierbrand,chaps. 5,6; Thompson,
chap. 4; Noble, chap. 7.]
life of the rural population.
15. Political,social, and
economic
[Palmer, chap. 4; Wallace, chaps. 6-9.]
Russia.
16. Famines
in modern
[Articlesby various authors in
14.

Condition

of

the

Fortnightly Review,

1891, 56: 636-652; Forum, 1892, 13: 575-582:

etc.]
Century, 1892, 31: 1-6; Century, 1893, 46: 560 ff.,
of
in
Yale
Faults of the modern
agriculture.
[Hourwich
system

Nineteenth
17.

in Columbia
Review, 1892-3, 1: 411-433; in greater detail,
Studies,vol. 2,
N. Y., 1892.]
trade in China.
18. Russian
[Calderon in Contemporary Review,

1900,

78:

389-396.]

19.

Russia's

20.

Russian

1899,

72:

hold

on

Persia.

[Forum, 1900,

railway policy in Asia.

914-925, with map.]

29:

147-153.]

[Long in FortnightlyReview,

EASTERN
Territorial expansion in the

21.

467

EUROPE
East.

fWallace, chap. 38; Noble,

chap. 10; Schierbrand, chap. 1.]

Siberian railroad.
22. The
of
[See A. L. A. Catalogue, or use one
articles: Norman
in Scribner's,1900, 28: 515-541;
the followingperiodical
in Century, 1904, 67 : 940 ff.;Kinloch in Monthly Review, 1901,
Davidson
and with specialreference to trade possibilities;
2: 60-71, with map,
Mikin North
hailoff,
Review, 1900,

Amer.
1:

Choose

23.

Rev., 1900, 170: 593-608; Colquhoun in Monthly

Nov., 40-55, with two maps.]

one

of the

important

more

states

(Turkey, Roumania,

and

Bulgaria, Servia, Greece)

history during the century. [Seignobos,chaps.

(a) Trace its political
20, 21.]
(b) Study its recent commerce.
[Statesman's Year-Book.]

BIBLIOGRAPHY

Though
there

are

good books

many

and

Empire;

For

years.

history of Russian

no

considerable

bibliographysee

on

has

commerce

appeared in English,

historyand conditions of the Russian

number
have been published within a few
the

the A. L. A. Catalogue and

recent

issues of

complete bibliography, with

pare,
Comwill be found in Skrine, pp. 347-358.
chronologicalclassification,
of
N.
Y.,
also,A. L. Morse, Reading list on Russia, Univ. of State
American

the

Review;

more

Library Bulletin,Jan., 1899, Bibliography, nos.

State

to articles

and

Historical

Russian

on

15-17.

References

in the first half of the century, in

commerce

English

Homans, Cyclopedia,p. 1659.

umental
Economic
History of Russia, London, 1914, 2 vol.,is a monMavor,
of
institutional
its
for
ment.
developvaluable
study
work, particularly
The
history of Russia in the nineteenth century is treated by
will
periodicals,

American

found

be

in

Seignobos, adequately for most

of Russia, London,
1900
Historical
The

more

Series.

most

of which

most

sion
fullyby Skrine, Expanin
the
Cambridge
(N. Y., Macmillan),

purposes;

the descriptiveworks,
are
purposes
First of these
material.
historical
considerable

useful books
contain

for

our

Russia, 'N. Y., Holt, 1877, 1905;

Anatole Leroyreferences in the topics are to the revised edition, 1905.
**
Beaulieu, The empire of the tsars, N. Y., Putnam, 1893, has the rank
treats topics removed
of a classic,
but a large part of its three volumes

should

be mentioned

D.

M.

Wallace,

**

useful are
the smaller books the most
Among
*
1901,
N. Y., Putnam,
the following:Francis H. E. Palmer,
Russian life,
*
Edmund
Noble,
W. von
1904,
Schierbrand, Russia, N. Y., Putnam,
Russian
politics,
H.
M.
Thompson,
Russia, Boston, Houghton, 1900,
from

N.

our

direct interest.

Y., Holt,

1896.

468

deserving

work

English

the

Columbian

John

Russia's
mentioned

April,

above.

and

the

Finland,

text

offers

with

bibliography;

no

distinct

is

for

excellent

an

of

and

the
on

aids

Russian.

another

map;

Finance,

the

on

in

graph,
mono-

1904.
of

the

treatment

**

Finland,

which

the

London,
full

especially

book,

and

literature

bibliographical

series

Frederiksen,

factures
Manu-

5, Siberia

material

this

Russia

of

C.

N.

this

in

in
vols.

commerce),

Commerce

with

cover

mass

the

to

various

appeared
part

see

space,

of

railroad,

Russia,

the

Summary,

compilation

Trans-Siberian

European

on

On

Monthly

S.

U.

contained

1899,

Empire

The

that

for

1893,

foreign

on

4, Mining;
here

cover

refer

Petersburg,

lished
pub-

edited

and

continuously,
(brief

Forestry;

cannot

and

policy,

eastern

Trade

Russia,

of

Chicago,

at

St.

2, paged

and

and
I

Railroad.

Industries

Crawford,
and

surveys)

Agriculture

covers

Trans-Siberian

**

is

Exposition
M.

Volumes

historical

(with
volume

by

charts.

COMMERCE

mention

special

World's

and

maps

OF

translation

the

for

with

HISTORY

on

1902,

economic

matters.

The

Balkan

accords

with

their
*

Laveleye,

see

conditions

of

The

Day,
Balkan

have

States

Balkan

commerce

pre-war

the

commerce

Peninsula,

Among

by
of

the

canals;
raw

topics

may

for

be

just

of

(e)

steam

finished

and

N.

Rev.,

FOR

general

by

power

Y.,

survey

On

1887.

World

the

1920,

the

War

9:

see

of

approaches
May,

than

the

277-298.

REVIEW

review

of

(a)

railroads;

textiles;

before

writers

general

Putnam,

commercial

the

suggested:

(c) transportation

textiles;

policy.

suitable

following

Y.,

and

TOPICS

1900),

N.

for

peninsula

Geographical

from

importance;

Peninsula,

in

attention

more

commercial

recent

The

attracted

(/)

machinery

coal;

period,

recent

shipping;
(d)

in

the

(b) transportation

production
(g)

(1800-

iron

manufactures;

and

and

exchange

steel;
(i)

(h)

cial
commer-

troduction
in-

AMERICA,

NORTH

in 1782
SCALE

sOo

OF

ooo

MILES

900

1200

THE

ORGANIZATION

OF

PRODUCTION,

471

1789

The

1789 and 1914 indicates clearly

sharp contrast between
the importance of the subject which
will be treated in the
of
followingchapters of the book, the history of the commerce

the United
first to

detailed

1789.

States.

for

development

Chief

is asked

study of conditions

appreciatingthe
561.

student

of conditions

survey

of the

The

at

national

date

colonial

the year

will furnish

period,and

of

progress

exports in 1790.

give his attention

existingabout

that

of the

to

more

mary
sum-

basis
times.

recent

Following the plan pursued

"

in earlier

chapters we shall attend first to the exports of the

which
could be produced
country, composed of those wares
to such
advantage that the people could sell a surplus of
them
the imports of which
abroad, and so secure
they stood
in need.
The
following table gives the chief items for the
first year

of

national

our

EXPORTS,
Northern

existence:

1790,

products.
"

IN

MILLIONS

OF

DOLLARS

Flour

4.5

Wheat

1.3

Lumber

1.2

Corn

1.0
9

Fish

Potash
Southern

products.

"

Tobacco

4.3

Rice

1.7

-_5

Indigo
(including decimals

Total

exports, including items

characteristic

One
has

marked

the

present.

consisted
but

of

the

not

few

it will be

value, and
over

omitted)

Total

half.

The
of

exports of
great

many

great staplessold

16. 6
20. 2

noteworthy because it
country from this earlytime to
States have
the United
always
articles sold in small quantities,
in large quantities. Nine items,

of this table

exports of the

omitted

is

three fourths of
observed, comprised over
the two
items, breadstuffs and tobacco,

the total
made

up

472

HISTORY

562. Predominance
table

The

"

States

at

OF

COMMERCE

of agriculture
; experiments with crops.
clearlythat the strength of the United

shows

this time

lay in

what

the economists

call extractive

to the

industries,devoted

productionof raw materials. Some

of the wares, it is true, had undergone the first stages of manufacture
lumber, potash, indigo),but their chief value
(flour,
In contrast
material.
with present
consisted stillin the original
conditions

it

estimated

was

this time

at

that

nine

tenths

of

engaged in agricultural
pursuits,and that
in New
most
even
England, where industrial pursuitswere
employed in manufactures,
diversified,
only one eighth were
Of twenty-one
trade,or other occupationsbesides agriculture.
farmers
presidentsof the United States (to 1880) fifteen were
the

people

the

or

were

of farmers.

sons

agriculturalproducts of
results of nearly two centuries
It is not easy
profitable
crops.

the

The
the
for

of

table

above

experiment in

to determine

represent
the search

what

cultures

will pay under the conditions of a new

country. Early settlers
with
had extravagant hopes of supplyingthe European market

silk,wine, olive oil,drugs, dyes, etc., and learned

and
bitter experiencethat the conditions of nature
America
southern

to

Europe

a
or

commercial
Asia.

grasses

were

introduced

Indian

corn

being, of

thoroughly had

of the

to this

country from

that in the hundred

course,

the

speciesof cultivated
importance to be enumerated

people of
or

Indian

"

the American
corn.

that

of

and

crops

other continents,

exception; and so
of experiment been carried out
process
only one
years followingthe Revolution
cient
plant (sorghum) was introduced,of suffi-

the

663. Breadstuffs.

important

tined
des-

man

different from

career

Most

only by

This

notable

in the

census.

of greatestimportance to the
colonies was, without question,maize

The

crop

crop,

and
parts of the colonies,

of native

origin,flourished

yielded,under

the

in all

conditions

of

than could be secured

far richer returns
primitive agriculture,
from any of the European grains. To the domestic food supply

it

was

indispensable.For

export

purposes,

however,

it

was

THE

less

ORGANIZATION

and
desirable,

abroad

every

in the

OF

473

1789

moderate

though

the demand

year,

PRODUCTION,

of

quantitieswere
shipped
foreignmarkets, as appears

chieflyfor wheat and wheat flour. Wheat

at this time a costlyluxury in New
was
England, but it could
to advantage in the middle
be grown
colonies and in Virginia;
and in the particular
period which we are studying it assumed
the exports. European countries
a
leading position among
had formerly been unwilling to receive a product which competed
table, was

with

their

agriculture,but

own

Europe, the outbreak

the

long wars

for

our

had

who

French

caused a great increase

following,
products, and gave rich returns

food

farmers

of the

the failure of crops in

Revolution
(1789),and
in the demand

the

to

wheat

been

sufferingfrom the lack of a market.

564.
Other
products of northern agriculture. Aside from
the cereals the agricultural
exports of the middle and northern
colonies were
unimportant. Many attempts had been made
"

flax and

to grow

of Russia

and

hemp,
other

to sell in

Baltic

competition with the produce

countries.

The

seed

of the

flax

some
exported, but the preparation of the fiber was too troubleto pay
the producer, and though coarse
fabrics for home

was

wear

made

were

the invention

of it and

of the wooden

fiber remained

hemp

The

it

was

shoe

used

for

peg,

the export of flax and

sewing

shoes

until

insignificant.

second

exports of northern
place among
agriculture,
after breadstuff's,
taken
was
products.
by stock and meat
The
abundance
of pasture land encouraged farmers to raise asurplus of live stock for sale,though as yet they paid but
littleattention
of the
West
for
The

to

animals.

to the proper

breeding or
Horses

shipped

were

and

Indies,while salt beef

provisioningships,and
export of live animals

to less than
565.

one

Southern

products above
and
colonies,

to

Canada
a

the

fattening

and

salt pork had

for export to

and

and

care

to

the

ready

sale

West

Indies.

provisionsamounted, however,

million dollars.

staples;
mentioned

all of them

tobacco.

could
were,

in

be

"

Many
raised

of

the

in the

fact,produced

export

southern

there to

some

474

The

extent.

HISTORY

people

OF

of the

finding conditions suited

crops, which, unlike those
to

South, however,
to

in trade.

The

fortunate

were

production of

the

of the

advantage in Europe, and

taken

COMMERCE

North, could

which

therefore

Southerners

be

were

followed

special

some

not

in

produced
ily
read-

more

their

interests,
therefore,by raisingof foodstuffs only what they absolutely
needed, and by applying themselves to their specialstaples.
Of these tobacco
was
by far the most important throughout
the colonial period. It was
asserted at one
time that a man
could provide grain for five men
and clothes for two, by the
sale of the tobacco
rise of the cotton

staples,and had
through

which

he could

culture tobacco

was

grow

unassisted.

king

the southern

among

rival export at the North

no

Until the

of

equal importance;

eighteenthcentury it formed about half

of the total exports of the colonies to England, and only just
before the close of the century did it yield the .leadingplace
to wheat.
Disadvantages of a one-crop system, entailingsharp
fluctuations in priceand periods of dearth,the rapid exhaustion
of the soil under
tobacco, and the encouragement of negro
land
slavery, all these evils could not turn the planters of Maryand Virginiafrom
the whole, yielded
a
crop which, on
the

"

rich returns.
566.

held

Rice

and

by tobacco

indigo.
"

in other

In Carolina

southern

rice took

colonies.

Its

the

position

cultivation

it
practicalimportance only toward 1700, starting,
is said,from the giftof a small parcel of rough rice by the
captain of a ship bound from Madagascar to Liverpool,who
forced to put into Charleston for repairs.The grainfound
was
a
ready market in southern Europe and in the West Indies,
and became
soon
an
important article of export, though the
became

modern

of

method

of water

culture

was

not

introduced

until

nearly 1800.

only other item of southern produce deservingspecial

mention
in this place is indigo. This plant, the reader will
of a blue dye which
the source
at the time
remember, was
was
highly prized and which, indeed,has only recentlybeen
The

THE

ORGANIZATION

OF

PRODUCTION,

475

1789

displacedby anilin colors. Attempts had been made in the

attended
early colonial period to raise indigo,but no success
until about

them

1750.

Carolina

in South

and

handsome

however,
soaked

an

Georgia;

returns.

unwholesome

in water,

aided

bounty from the

plantersexported largequantitiesand

the

British government
secured

After that date the culture flourished

by

The

preparation of indigo was,

occupation,as the plant,after being

left to rot, giving out

was

offensive odor

an

and

flies. It was
indication of progan
drawing innumerable
ress,
that
culture
declined
therefore,
indigo
rapidlyafter 1790;
planters gladly took up the cotton
culture,and the United
States soon
secured by importation from abroad
the ware
of
which

it had

formerly produced a surplus.

of agriculture. Though agriculture
567. Methods
as

"

of wealth

source

overshadowed

all other

industries

in

the

with methods
it was
conducted
which we should now
colonies,
consider extremelyinefficient and wasteful.
Washington wrote
in England: "An
to an
agriculturalspecialist
English farmer
soil
must
have
indifferent opinion of our
American
a
very

when
8 to

he hears that
10 bushels

countries

where

an

acre

of wheat;

much
prefer cultivating
The
plow, the most

but

he must

cheap and

is

land

of it produces

to

no

than

more

in all

forget that

not

is dear

labor

from

the

people

well."
cultivating

important implement of agriculture,

stillat the time of the Revolution
was
substantiallyunchanged
The mould-board, of wood
from the models of ancient times.
as

the

name

sometimes

implies,was

plated with

sheet iron

or

President Jefferson
of old horseshoes.
out
stripsmade
improved the shape of the mould-board, and about the end of
into common
the century the cast-iron plow began to come
with

sickle gave
place to the scythe and cradle,but
threshingwas stilldone with a flailor by drivinghorses over

use.

The

the

grain. There was

agriculturalscience and

national government
in many

states, and

marked
methods

increase
about

in the

the

time

interest in
when

the

societies were
began, agricultural

founded

thenceforth

rapid.

progress

was

more

476

COMMERCE

OF

HISTORY

reader,after this
review of the agricultural
ning
exports of the country at the beginof its national existence,will refer again to the table
portance
above, he will find that export products of considerable im568.

The

eastern

that trees

were

the colonists.

"

also from

derived

were

If the

products ; potash.

Forest

the fisheries and

the forests.

so
slope of the country was
heavily wooded
regarded rather as a hindrance than a help by
It was
good philosophy,however, to make the

them; and the British government, during the colonial

period, encouraged the export of forest products, to avoid
depending on the Baltic countries for the supply of wood and
best of

naval
was

stores.

that

been
arrow,

of the

reserved
and

The

most

great

for the

which

were

spectacularexport of this description

masts

and

government
hauled

out

spars,

by

the

which
mark

of the woods

formerly had
of the

broad

in winter

by

wood, however, left

and heading,which were
the country in smaller form:
staves
Indies and there set up into casks and hogssent to the West
heads
etc.
for the carriageof sugar products; boards,shingles,
When
wood
ashes are leached,.and the water
evaporated,
the product is potash; if this be refined by heating it is termed
pearlash. It is an impure carbonate of potassium,and at this
importance
earlystage of chemical industryit had an immense
of glass,
in the arts, being used in bleaching,the manufacture
Besides enjoying a ready sale potash had another
soap, etc.
peculiar advantage in this period; it was, besides the naval
stores
(pitch,tar, turpentine,rosin),the only wood product
which could be readilytransported on land.
It was, therefore,
land was
when
a great resource
cleared; and practically
every
new
settlement,in the northern colonies at least,had its potash
converted
into a valuable
works, in which useless wood was
export product.
fisheries first and mainly placed
"The
569. Fisheries.
New
England on its legs." The people of the northern shore
driven to the sea by the difficultiesof life on land; and
were
of
used the proceeds of the fishingindustry as the means
fiftyyoke

or

of

more

"

oxen.

Most

of the

478

purchase articles

HISTORY

of

food, of

of necessaries,which
This

home.

could
has

feature

of the country.

trade

OF

COMMERCE

the nature
not

ever

be

rather of luxuries than

produced

advantage at
since characterized
the import

In the recent

to

of the United

commerce

find,beside the class of colonial products,two other

classes comprising the bulk of the remaining imports, manufactures

States

we

material

and

for

classes masked

these two

behind

that

articles of

Were

manufacturing.

large item

of the table

classifiesthe

ules?
imports only with reference to tariff schedin the
The
be given, without
answer
can
hesitation,
materials for manufacturing were
ever,
howaffirmative.
Raw
still,
comparativelyunimportant; most of the imports to this
finished
country, at the beginningof its national existence,were
The statement
made
manufactures.
by a writer in 1818 held
which

and

habit
but

arts and

Our

proportion of

small

very

the character

in detail would

be

of these

to

of practicallyall the

Europe.

In

with

contrast

restricted

have

been

from

earliest times

diversified.

The

our

always to
to

the

manufactures

handicrafts

and

factories

the
of

exports of the country, which

a

few great

present, have

the imports,
staples,

extraordinarily

been

imports included,besides the items specified

large part or the whole of the metals

used in the country (tin,copper,
lead, pewter, brass, and
of metal.
iron),and manufactures
They comprised,further,
a
great quantity of the various textiles,of woolen, cotton,
such as glass
linen,and silk;and miscellaneous manufactures
and

table

the

imported

task, for they included

arduous

an

products

in the

is subservient

them

manufactures."

describe

To

"

imports consist chieflyof articles which

fashion have made
for our
consumption:
necessary

at this time

true

earthen
572.
now

above,

leather wares, etc.

Significanceof the import of manufactures.
as

ware,

paper,

the most

important

characteristic

seek

to

realize

Anticipatingthe

why

substance

this
of

was

so,

and

we
articles,

what

followingsections

ing
Accept-

of the imports

of this period the preponderance of manufactured

must

"

it

it may

signified.
be said,

ORGANIZATION

THE

OF

PRODUCTION,

that the people of the United

in summary,
articles by their
their need for manufactured
so

far

to

but that
possible,

as

make

the manufacture

wares

the
skill,
of business.

less than

The

land

on

sea

Even
led

himself

as

of manufactures

the

at
a

life of

fortunate

bounds

the

ported
im-

population,

comprised
of the

many

surplus sufficient
the

beyond

end

necessaries,

of the

colonial

if he
to

by his toil

won

provide him

of his absolute
"

with

periodcan
in

consumed

necessities.
with

contrast

simplicityof the standard

scarcelybe exaggerated. Most of the
The
produced at home.
family were

the

of life

scale of living the

modern

most

tion,
strugglingand priva-

self-sufficiency. In

Household

573.

at this

think

at

articles

few

nical
required high tech-

this amount

well

as

American

average

or

of which

head; yet

luxuries

and

could

and

it unprofitableto attempt

total amount

people enjoyed.

period the

handiwork,

own

large in proportion to

not

was

$5 per

of the comforts
the

supplied

machinery, and an advanced organization

for all the
They depended on Europe, therefore,

annually

which

States

of

use

finer manufactures.

being

they found

479

1789

articles
house

perhaps
begun with the help of neighbors,and was finished,
Domestic
sils,
utenlong afterwards,by the inmates themselves.
stillmade,
household
furniture,and farm implements were
The
used.
the farm where
to a large extent, on
they were
every-day clothing of the people,made from linen or wool or
was
from a combination
of the two ("linsy-woolsey"),
spun
into clothes,with comparatively
and woven,
cut out and made
was

littleprofessionalhelp.
in the

spun

family,sent

either at home
of

the

been

in

family

Carpets

were

made

from

woolen

only to be dyed, and then woven

neighborhood. The self-sufficiency

away

or

in the

group

was

not

so

complete

in

1800

1700, but it continued stillto be the dominant

in economic

life,and

yarn

in

districts lasted

some

as

it had
feature

for decades

to

come.

self-sufficiency. Articles which were not made

in the household
rule,made in the town, and did
as
a
were,
of distant trade or of foreign
to the volume
not contribute
574.

Town

"

480

of the

United

States

few

hundred

perhaps

COMMERCE

OF

important unit

The

commerce.

HISTORY

in the economic

this period

at

inhabitants.

organization

the

was

rural group
of
of the people were

Most

farmers,as has been said above, and very few were

entirely
independent of farming. Some, however, had the skill and
implements which enabled them to supply the needs which
could hardly be met
by household production. Nearly every
and, if conditions favored,a sawmill.
villagehad a gristmill,
blacksmith
The village
to be found in almost every
ment,
settlewas
and performed an
astonishingvariety of work for the
a
a
people. Toward
tannery had become
1800, moreover,
common
though not a universal feature of villagelife,and
most

towns

could

boast

now

of

shoemaker.

Some

still

depended, however, on the itinerant cobbler,and few were

to special
largeenough at this time to furnish paying custom
artisans; and relied on travelingtinkers, glaziers,
coopers,
curriers,
etc.,to perform the services proper to their trades.
575. Development of household
manufactures.
Only in'a
few lines of manufacture
had the organization
developedbeyond
The
the simple lines sketched
above.
making of cloth is an
operation requiringmuch
time, considerable technical skill,,
machinery such as few households
and, for some
processes,
"

would

1700

By

possess.

it had

become

customary

to

rely

the process which compacts the

for fulling,
professionals
mills were
fibers of the cloth,and fulling
widely distributed in
the fibers of woo]
1800.
Carding machines, for straightening

upon

before spinning,were
more

and

more

to

in many
also,to have the

be

common,

house,though this process was

immediate
neighborhood. With
cloth in

excess

some

outside

parts of the country

of their needs, and could

Nearly every town, moreover,

had some
industry which
colonies,
the inhabitants,and

people in

the colonies

gave
or

them

abroad.

it

weaving done
attended to
ordinarily

the

the people of

towns, and

found

use

were

For

of

in the

able to produce

the surplus in trade.

utilized the
means

out

aid of this character

in the northern

the

was

and
spare

central
time

of

of exchange with
characteristic

descrip-

THE

tion take

ORGANIZATION

the

had

town

OF

PRODUCTION,

followingof Raynham,
population of about

481

1789

Mass., 1793, when

1,000:

"

Besides

the

the
usual

of

here employed in the

are
husbandry, numbers
manufactories
of bar iron,hollow ware, nails,
irons for vessels,
iron shovels,potash, shingles,
"c."
business

576.

Appreciation and

at this time.

It would

"

in detail the
various

criticism of American
be tedious

petty manufactures

and

unprofitableto study
which
cropped up in the

of this

period. Let
followingstatement, applying

the

towns

domestic

"The

1800:

manufactures

accept

us

to

manufactures

the

as

decade

ending

best established

of

leather,iron, flax,potters'wares,
malt liquors,
cider,paper of
spirits,

summary

are

in

those

includingbricks,ardent
all kinds, hats, stuff and

silk shoes,refined sugars, spermaceti and tallow candles,copper,

tin wares,
brass and
carriages,cabinet wares, snuff, gunpowder
and
In

salt."

studying this descriptionthe

reader

should

bear

certain

it seems,
is far
required for the satisfaction of

facts in mind.

First,the list,however

from

long

includingall the wares

stated
are
Second, though these manufactures
ordinarywants.
all
them
there was, among
best established,
to be the ones
only one sufficiently
strong to produce a considerable surplus
for sale outside

the country;

this

was

the

rum

manufacture.

importationsfrom foreign
of
enumerated.
of the wares
countries for many
Third, many
these manufactures
(bricks,cider,snuff,and salt,for example;
flour and sawmill
products might properly be included)were
of a very simple character,requiringno great technical skill or
used widely,but steam
elaborate machinery. Water
was
power
and improved machinery had
had not yet been applied,
power
The factory system,
from
not yet been introduced
Europe.
with its extensive use of machinery and its strict organization
of labor,was
first permanently established in the United States

The

in

people still relied largelyon

1790,

not, for
An

at

Pawtucket, R. I.; and

many

English

years,

committee

the American

English standard
reported in 1791 that

reach

the

factories did
of efficiency.
the

American

482

HISTORY

cotton

manufactures

and

higher pricethan

of

OF

of

were

1790

do

How

Has

those

country

any

States in the nineteenth

us

in rapidity of

Prepare

3.

it for
4.

those

AND

of the
ever

comparison
What

proportion of

is the

country

that

as
or

States in

live now?

you

growth

United

of the

countries

in

United

come

previouslysuggested,and

exports

State where

such

What

way

with

of the

area

in which

State

century?

the

TOPICS

settled

enjoyed

progress?
chart, in the

State? in the

your

coarse

population and

the
with

compare

2.

grade, of worse
quality
Manchester.
produced at

QUESTIONS
1.

COMMERCE

near

preserve

later periods.

occupied in agriculturein
the proportion is highest? [Abstract of
persons

now

Census.]
What

5.

and wheat
in your

comparative advantages and disadvantages

commercial

as

vicinity,and
Write

6.

and

the

are

crops? Which
why?

report on

one

history in the United

of the

crop

occupies the greater

of

corn

acreage

followingcrops, its preparation,uses,

States:

("Encyclopedias;E. A. Whitman,

Flax

culture, Boston,
1888, Barker in Quarterly Jour. Econ., 1917, 31: 500-529.]
(") Hemp.
[Encyclopedias; C. R. Dodge, Report no. 8, U. S. office
(a) Flax.

of fiber

investigations.]

7.

Profits and

8.

Do

losses in the colonial tobacco

know

you

of any

culture.

suffers from

region which

[Bruce.]
the

evils of the

single-cropsystem now?
Advantages and disadvantagesof rice as a crop; where is it chiefly
now?
[Encyc.; commercial
geographies.]
grown
10. Experience of a woman
as
an
indigo planter. [Earle,Colonial
dames, Boston, Houghton, 1895, $1.50, pp. 76-83.]
9.

11.

and

What

is the

average

crop

of wheat

in your
vicinity? [Census.]
Details of colonial agriculture.

12.

The

lumber

in New

per

acre

now,

in the U.

S.,

[Coman, 47-62.]
[Lord, Indust.

England.

industry
exper.,
71-79.]
Wright,
chap.
3,
1;
part
Metre
fisheries. [Coman, index; Van
14. History of the American
in Carnegie Hist., vol. 2, part 2.]
Hist., 1: 63,
15. The whale fishery. [Weeden, chap. 11; McMaster,
13.

with

references.]
16.

Manufactures

imported by Virginiain the colonial period. [Bruce,

chaps. 15, 16.]

17. What

parts of the United

States

are

now

in

positionlike that

ORGANIZATION

THE

OF

PRODUCTION,

1789

of the colonies,devoting their labor to the production of

from

importing manufactures
What
foreign countries are
and

18.

Write

report

Alice

[Books by
19.

the

regions of advanced
this position?

the household

on

materials

industry?

industries of the colonial period

Earle.]

M.

household

What

still in

raw

483

industries

are

declining now?

[The preserving

suggest other

examples.]
of Braintree,
20. A
England town.
[See the description
Three
in
F.
C.
Adams,
Boston,
1892.]
episodes,
Mass.,
The
textile industry in the colonial period. [Wright, Ind. ev.,
21.

of fruit may

typicalNew

43-60.]
22.

[Lord,
23.

The

rise of manufactures

Indust.

exper.,

iron

The

and

the

attitude

of Great

Britain.

part 3, chap. 2;

industry.

Coman, 62-76.]
[Wright, Ind. ev., 80-103.]

BIBLIOGRAPHY
GENERAL

BIBLIOGRAPHY.

"

Channing,

Hart

and Turner,

Guide,revised

ed., Boston, 1914, (general)Bogart, Lippincott,Emery in Cambridge Mod.

E. R. Johnson,
Coman, (alphabetical);
Hist., 7: 825-829, (classified);
A. L. A.
(railways);Dewey, Financial History, N. Y., Longmans, (fiscal);
tory,
HisCatalogue, (popular books in print). The Literature of American
ed. J. N. Larned, Boston, 1902, has been continued (formost years,
to and including 1917), by annual
lists,Writings on American
history,
Press.
the
1912
Yale
since
University
published
by
**
tions
ContribuThe most
GENERAL.
important single works are the
economic
to American
history from the Department of economics
History of
and sociology of the Carnegie Institution of Washington:
of the U. S.,by E. R. Johnson, T. W. Van
domestic and foreign commerce
and D. S. Hanchett, 2 volumes
(cited hereafter
Metre, G. G. Huebner
in the U. S.,before 1860,
as Carnegie History) ; History of transportation
in the U. S.,
under direction of B. H. Meyer;
History of Manufactures
"

Foreign trade is treated in connection

1607-1860, by Victor S. Clark.
with other topics in N. S. Shaler,ed., * The U. S.,N. Y., Appleton, 1894;
T. D. Woolsey, ed., First century
C. M. Depew, ed., * Amer.
commerce;
*
Hist, (generalnarrative);
of the Republic, N. Y., Harper, 1876; McMaster,
*
Econ.
ment
develophist.,(manual); Lippincott,
Bogart, *Econ.
Ind.
(manual); Coman, * Ind. hist, (manual).
ev.
(manual); Wright,
History of trade
On specialbranches
of foreign trade see S. J. Chapman,
between
United Kingdom and U. S.,Lond. and N. Y., 1899; F. R. Rutter,
The South American
trade of Baltimore, Baltimore, 1897; J. M. Callahan,
American

relations in the Pacific,Baltimore, 1901.

COMMERCIAL

POLICY.

best guide; of the

many

"

On

other books

on

**

Taussig is by far the

the subject (see bibliographies

tariff history

484

above)

most

merchant

the

W.

W.

Boston,
N.

Y.,

Bates,

American

1902;

for

TOPICS.

and

SOURCES.

for the

chief

later

1789

to

reports

indispensable

**

various
*

Andrews,

M.

policy of the

in

in the

Paine,
*

**

before

Callender,

William

1893,
Pol.
in U.

sidies,
sub-

tion,
Navigamarine,

A.

Econ., Boston,
First

462-614;

T.

Econ., Chicago,

Nov.,

stages
W.

Congressional

and

M.

of

Hill

Chicago
N.

**

Page;

1901-2,

S., Baltimore, 1884.

10:

ed., 1911,

War

111-162.

below)
of

Univ.

Household

A.

A.

Penn.,
factures
manu-

shipping,

on

R.

E. Pea-

1912.
of 1812, vol.

On

1; Fiske,

**

McMaster,
the

development

business
8:

History,

tions
corpora-

449-465;

G.

S.

enterprises, Quarterly
On

policy, Pub.

commercial

Amer.

commercial

Henry

Fiske,
cial
commer-

Y., 1909, and

banking

161-192;

John
On

Press;

April, 1903,

Earlier

cited

1789,

Tryon,

of

and

tariff
**

3d.

ter
general in charac-

Hist., vol. 7.

1902, 17:
of

Reports

Fisher.

G.

1899, $2;

Review,

transportation

Nav.

State

More

Salem, Boston,

Mod.

Hist.

and

ments.
docu-

Catalogue)

Sydney

Mahan,

Houghton,

Cambridge

Amer.

Early

**

Beer.

of old Salem,

"

commerce

"

organization, S. E. Baldwin, American

1789,
**

Hill,
8:

PERIOD.

9 of

L.

Univ.

of old

Ringwalt,

publications.

Rolla

S., 1640-1860,

of

of American

set

of

set

legislation before
see

venturers

on

Washington,

(besides Beer,

Sailors

bibliographies listed

COMMERCE

Earle,

see

period, Boston,

Chapter

of

(see A.

Ships and

of the commercial

Jour,

writings

NATIONAL

Critical

and

and

merchant

histories

collected

Bruce,**

manufactures

Merchant

EARLY
**

Marvin,

American

report

in the

AMERICAN

commercial

U.

annual

using government

Morse

the
The

Documents,

**

Alice

prove

sought

Public

colonies

On

1910.

Y.,

body,

dents.
stu-

especially useful.

in the

Weeden,

American

Giesecke,

D.

L.

of protection

by abbreviation, Com.

are

be

of

aid

"

the

are

R.

W.

see

Wells, Our

consult

is the

1823

must

Check-list

COLONIAL.

to

source

EARLY

N.

of immature
**

Boston, 1893,

industries.

is cited hereafter

from

The

C.

defence

A.

should

likely

are

The

"

years

Papers;

For

criticism, D.

particular

on

Swank

navigation, which

an

hands

shipping policy

marine,

Readers

"

for references

Hammond,

is

and

J. Abbot.

W.

in the

put

1890.

SPECIAL
above

COMMERCE

be

to

marine

Spears, and

J. R.

OF

prejudiced

too

are

On
**

HISTORY

C.

Econ.

policy,
Adams,

policy,
Assoc.,

Journal
*

Taxation

of

486

HISTORY

When
the

there

carried

were

transport

dozen

of the

in
as
transportation,
Alleghany Mountains,

in wagons,

sometimes

for

miles; but such instances of extensive

and the freightcharges were
exceptional,
of

were

high that only articles of the

for carriage.
could pay
579. Sparsityof passenger
died in the town where they were
a

of

means

west

so

town

COMMERCE

the roads

over

of hundreds

distance
land

other

no

of the settlements

case

wares

was

OF

miles

distant.

first necessity,
as salt and

traffic.

Some

"

There

was

lived and

men

born, without

iron,

another
visiting
little intercourse

so

adjoiningtowns of Easthampton and Southampton,

on
Long Island,that each town preserved individual peculiarities
of pronunciation down
to 1800.
even
Throughout the
in the days of the early Federal
colonial period, and
even
difficult to collect delegates at a
government, it was
very
for men
to make
political
gathering;and it was not uncommon
their wills before starting to a State convention
in Pennsylvania.
Travel by stage-coach did not become
of importance
between

the

until well

into

the

consuming

nineteenth
week

century.

days

In

1783

two

coaches,
stage-

the

trip,sufficed for
and New
Boston
the travel between
York; though a few years
later (1794) twenty stages were
employed. Postage rates for
a
single letter ranged from 8 to 25 cents, according to the
infrequent.
distance,and mails were
580. Relativelygreat importance of waterways.
Like the
people of the Middle
Ages, the inhabitants of the United
States at this period were
driven to the use of water
transport
Rivers which are
of transportation on land.
by the difficulty
then imporused now
and pleasure boats were
tant
only by canoes
of communication
and transportation. The Connecticut
means
a

or

ten

on

"

River

has

now

scant

traffic

as

far

as

Hartford,

necticut
forty miles from its mouth; in 1816 we read, "The ConRiver
is navigable 200 miles above
Hartford, for
Boats, of 15 tons, and 50 miles higher,for Floats and Pine
carried down
the
Timber"; large quantitiesof potash were
about

river

even

from

the

Canada

line.

The

Hudson

and

other

INTERNAL

rivers

the

were

collected

TRADE

and

and

western

and

"arks"

AND

channels

brought
New

the

through

to

York

FOREIGN

the
sent

Delaware

which
and

sea,

their

487

COMMERCE

export products
the farmers
to

wares

were

of central

market

by rafts

and

Susquehanna. Waterways
of especialimportance in the southern
were
States,where the
of land transportationwere
less developed than
means
even
in the North; tobacco
was
brought to the wharves on inlets
and rivers by "rolling-roads,"
which
the
rough tracks over
rolled with the assistance of a horse.
hogsheads were
681. Importance of the country store.
The great institution
of trade at this period was
the country store, which collected
the surplusproducts of the townspeople and gave them
in exchange the wares
imported from abroad.
Every town of
of these stores, and only the largesttowns
any size had one
had distinct shops for the sale of specialarticles. The stock
in trade of one
of the typicalcountry stores included all of the
mentioned
articles which
the imports of
have
been
among
the country : sugar, molasses,tea, coffee,
metals,and hardware,
The
list on
cloth,thread, books, glass,earthenware, etc.
books would
be as long,
the other side of the store-keeper's
for it included
all the export products of the country, and
in the large towns
sent to market
which
or
some
wares
were
must
in other States.
merchant
The
always be prepared to
of all kinds,beef,pork,
receive in pay for his goods "Grain
poultry, cheese, butter, eggs, nuts, berries, hides, tallow,
braided straw
candles,lard,domestic flannels,feathers,quills,
hats,potatoes, apples and other fruits,both green and dried,
home-made
brooms, flax and flax seed, cider and domestic
wines, etc." At the period which we are studying,well past
stillthe usual form
the close of the colonial period,barter was
of exchange, and money
rarelypassed at the transactions in
the townspeople and the
the store or in the trade between
on

"

villageartisans.
682.
The

Benefits

country

economic

but

and

store
in

was

disadvantages
the

focus

and
political

of

the

of the

social life

country store.

village,not
as

well.

only

There

"

in

was

488

no

better

trainingschool

nature

and

of

business

the

HISTORY

stores, and

the

it

OF

COMMERCE

in the world

development of business
times

life of the

sense.

study of human
all
Practically

concentrated

was

that
not surprising,
is,therefore,

later in the mercantile

to eminence

for the

period of apprenticeshipin

world

who

of them.

in these

few
had

men

rose

passed

not

Charles

Tiffany,
Levi P. Morton, E. D. Morgan, H. B. Claflin;of a later period
Marshall
Field,Pullman, Pillsbury,
Armour, J. D. Rockefeller,
J. J. Hill,and many
others; all these rose from the positionof
a

"clerk in

to the

generalstore

one

placewhich

they attained

in later

life.

standpoint of
great disadvantage to have
From

the

the

villagers,
however,

the

for

market

their

it

was

produce

restricted to the store in their immediate

in the

smaller

had

towns

practical
monopoly of trade of
in drivinghis bargains. In the
a

difficultiesof
the
of the

attain

store

country

largertowns.
off,sometimes
sleighswith

leveled

transportationwere

peoplecould

certain

by the

would

agree

independence

tripsto
upon

of winter,

snows

of

measure

by making market

Neighbors
in

keeper
vicinity.The storeno
competitors,and enjoyed
which he took full advantage
northern
where
the
colonies,

date

of the

one

and

troop of fiftyor sixty. They loaded

set

their

journey, and with the

produce of the farm and household, and sought out the
dence,
nearest
large town, Portland, Newburyport, Boston, ProviIn one
of these market
Springfield,
Hartford, etc.
centers
much
better bargains than
at
they could make
a

supply

of food

for the

home.
583.

Relative

smallness

of interstate

trade.

"

When

the

products of the country had been collected at the large coast

towns
by the farmers and store-keepers,they were, for the
most
part, exported to foreigncountries. Interstate commerce
There was, it is true, an active
was
as yet comparativelysmall.
coastingtrade,but this was employed chieflyin the collection
and distribution of goods along short stretches of coast.
Small
vessels pliedfrequentlyfrom the largeports like Boston. New

INTERNAL

TRADE

AND

FOREIGN

489

COMMERCE

York, Philadelphia,and Charleston,to the country districts

either side,but rarelymade
extensive trips,
on
from Boston
as
to Charleston, for instance.
between

Commerce
and

South

Carolina

in absolute
their

The

amount.

surplus of

trade

with

live

rum,

South,

which

England

other

as

existed and

cloth to the
on

States

distant

northern

and

it

but that
584.

was

insignificant

means

sent

part of

brought
cash.

back

made
home-

tobacco

bills

or

Still,comparing this
trade, with the foreign

interstate
it is not

of later

commerce

that

it

was

large,

so

small.

so

of different States in

Share

no

colonies

of internal

time, or with
strikingthing about

times,the

Massachusetts

as

stock, dairy products, and

of the

commerce

by

was

they could

elements

even

foreigncommerce.

of different parts of the

relative contributions

The

"

country

its

to

be shown
can
by the followingsummary,
foreigncommerce
giving the exports by localities in the year 1791. The chief
States ranked
as
follows,giving values in millions of dollars
and indicating
the leadingports in parenthesis:Pennsylvania,
3.1 (Bermuda Hundred, Norfolk);
3.4 (Philadelphia);
Virginia,
South Carolina,2.6 (Charleston);Massachusetts, 2.5 (Boston);
New
York, 2.5 (New York); Maryland, 2.2 (Baltimore). No
million; and
as
one
other State or port exported as much
to little
exports from all the other States togetheramounted
over

of the total of nineteen

tenth

one

millions.

strikingfeature of the table is the relative importance

an
States in foreign commerce,
importance
of the southern
The

which

they

that

the

that there would

was

be

the

in the first year

were

New

York

long time
be

It must
to the

to

Taking

as

of duties

as

come,

remembered,

export trade,and

rough

means

collected,we

if

we

of

could
uring
meas-

find,for

ample,
ex-

government, that though

and third in
the list,the second

of the national

Pennsylvania again headed

rank

considerable changes in rank

import trade.
imports the amount

include

for

developed.
figuresrefer only

industry

the cotton

however,

destined to hold

were

and

Massachusetts

while
respectively,

490

the southern

HISTORY

States ranked

period which we
rapid change, marked
This

OF

COMMERCE

lower by very

considerable

amounts.

of
one
studying was, moreover,
especiallyby the development of the
central and northern
colonies.
Taking the year 1795, when
these colonies were
by a great increase in their food
profiting
the cotton
trade was
still undeveloped,
exports, and when
York
had risen to the second placein exports and MassaNew
chusetts
the

to

585.

are

third.
of the

Development
in

seaports named

chief seaports into cities.

The

"

the

preceding section had gained from

of wealth
trade an
amount
and population,which, however
small it may
from the modern
seem
standpoint,put them in
class above
the ordinary towns, and made
them
the reprea
sentatives
of a more
advanced
business organization. The
most
populous of these placeshad in 1790 a populationof only
York
30,000 (in thousands, New
33, Philadelphia 28,
Boston
of peoplelivingin towns
18, etc.)
; and the total number
still only about
of over
8,000 inhabitants was
130,000. In
in thirtylived in a large town
other words, only one
person
about

or

city. The

cities retained

budding

acteristic
of the rural char-

many

A mere
they had grown.
in paving the streets, and many
beginning had been made
people still kept kitchen gardens. The price of provisions,
ent
however, was risingrapidly,and the cities had become dependof the towns

on

trade

supply.
New
and

York

with

Cattle
and

buildingwas

the

were

which

from

country districts for

fattened

most

in the Connecticut

Philadelphiamarkets, and
brought by coastingvessels

of. their

valleyfor

wood

the

for heating

from

considerable

distances.
The

large towns
population,in which
were

could

boast

of

special branches of manufacture

shops; Boston was credited
represented,and of numerous

with 366
bank

stores

many

in the enumeration

of discount

and

of 1789.

banks

of this kind

The

deposit in the United

operationsin Philadelphia in 1782, and

33

diversified industrial

in the

country.

about

first commercial
States began

1800

there

were

INTERNAL

586.

AND

Foreign countries

to the

of

TRADE

United

FOREIGN

of the

States.

"

An

491

COMMERCE

greatest commercial
indication

of the

tance
impordirection

is furnished

by the followingtable,showing the

chief countries to and from which the United
States shipped
in 1790.
wares
Figuresgive the values in millions of dollars.
commerce

Exports
Great

Britain and

her dominions

Including British West

France

and

Indies

and

Including Dutch

4.6

2.0

2.0

.3

1.9

1.1

1.2

.5

her dominions

West

15. 2

3.2

Netherlands

9.3
2.0

her dominions

Including French West Indies

Spain and her dominions
Including Spanish West Indies
The

Imports

Indies

Portugal and her dominions

The

figuresof imports are based on estimates,and no sum

is given for the total amount
of the year;
the total exports
but slightly
above twenty million,and countries the names
were
of which do not appear
received but insignificant
of
amounts
our
goods.
587.

Some

Insignificanceof

reasons

direct trade

with

for the direction of American

Asia and
commerce

Africa.
at

"

this

periodwill appear in the next chapter,in which the commercial

I propose
policy of European countries will be discussed.
here merely to point out some
of the strikingfacts shown
by
the table,and to indicate their connection
with the development
in the colonial period.
of American
commerce
of
Attention
be drawn, first of all,to the significance
may
omissions from the table. In the year in questionthe United
States sent to the two
great continents of Africa and Asia
less than

one

third of

million

dollars of exports.

The

ports,
im-

larger,
probably somewhat
Asia, were
for American
vessels had begun to frequent the ports of East
the rich carIndia and China, and to bring direct from them
goes
which formerly had reached America
through the hands
estimate of the
of English middlemen.
Still,
any reasonable
especiallyfrom

492

with

trade

HISTORY

distant

comparison with

OF

would

continents

leave

it

trade,which

the European

of American

COMMERCE

in
insignificant

formed

the

stay
main-

commerce.

Unique positionof England in trade with the United

Of the European countries there was
which
States.
one
occupied a positionof commanding prominence. Great Britain
588.

"

received of
and

sent

could

states
at the

and

own

far

supply.

It is

of her

us

time,that
which

all the rest of Europe

than

more

were

all the other

noteworthy, and

this country, after

commercial

bonds

than

goods more

our

bitter

independence, and
supposed to hold

after
her

together,
European

regarded
strugglefor political
having broken the
was

so

in subjection to the

the trade relations

English market, should voluntarilyresume
which had formerly been considered so oppressive. The great
trade with England is the more
of our
amount
remarkable, as
it covered

considerable

England

felt

forwarded

to

received.

Of

as

yet

no

other

of trade with

amount

great need for

countries

export products,and

our

considerable

other countries.

part of what

she

imports which we received from England,

the other hand, while the greater part was
doubtless the
on
product of English manufacturing industry,there were
many
which
from other countries,
but which we
found
wares
came
could be purchased more
conveniently in England than at
the originalplace of production.
589.

natural

with

Commerce
that

the

United

importance with

some

which
as

the

were

stillamong

surprisingthat

with

that with

this

the

rest

States

have

and

leaders;and

it can

commerce

England.

should

like France

states

the

of Europe.

Our

was

so

trade with

"

the

It

was

commerce

but

of

Netherlands,

only be regarded
small in comparison

Europe was
carried on so largelythrough England that Germany
and the
make
but an
Baltic countries would
showing if
insignificant
in the table.
included
Our
trade with southern
they were
Europe, however, was
evidentlygoverned by other conditions.
of their
Portugal and Spain could furnish few desirable wares
own

production,except wine;

eastern

the table shows

that the

imports

494
in

Europe,

supply, and
all other

crops

great

labor,were
and

to the

amounts

of

same

drawn

the

Indies.
world's

The
sugar

production,under the
great that planters neglected

produce
They

even

were

sufficient amount

to

eager

the direct exchange of sugar

by

West

sugar

so

did not

the

in
source

advantages of

for their laborers.

of food
either

the

of slave

system

the

become

COMMERCE

desired

keenly

were

had

islands

OF

HISTORY

and

purchase food

molasses,or,

what

thing,by givingthe seller bills on Europe

products shipped thither. They offered

against sugar
a
ready market, therefore,for the wheat, flour,corn, meat,
and fish of the mainland, and purchased also largequantities
and shinglesfor building,staves for hogsheads,etc.
of lumber
colonies of the mainland

The

of sugar and molasses

also for the manufacture

took in pay considerable

for their own
use, and took

amounts

molasses

of rum,
of which part was
exported.
the whole, however, the mainland
exported to the islands

On

them, and had thus a credit balance

with which it could liquidate
its debts for European manufac-.
rise to a triangulartrade:
The
conditions thus gave
tures.
the mainland
shipped food and lumber to the West Indian
islands;the islands shipped sugar products to Europe; and
to the American
mainland, thus
Europe shipped manufactures
demand
So strong was. the economic
closingthe transaction.
for a trade of this description,
that the attempts of European
than

more

it received from

proved entirelyunsuccessful in
evaded
the colonial period; restrictions were
by smugglers or
were
openly defied. The problems of policy relatingto this

governments

and

check

it had

trade after 1789

other parts of the American

in the next

of the United

resource

before
about
were

which
were,

will be treated

chapter.

in
Development of ship-building

592.

to

of
close this survey
1789, was the buildingand
at first dependent

they used. Most

however, abundant

on

conditions

the

in

of

of ships.
sailing

the mother

of the

raw

period.
"

deserves to be mentioned,

States which

we

the colonial

The

colonies

country for the vessels

materials

America;

commerce

and

for

ship-building

the construction

of

TRADE

INTERNAL

FOREIGN

AND

495

COMMERCE

rather helped
was
ships,unlike other manufacturingindustries,
than hindered
by British colonial policy,which put colonial
vessels on the same
built at home,
footingas those which were
and protectedthem from the competition of the ships of other
An

countries.

active

ship-building
industry grew

England,
especiallyin New
finest qualitywas
abundant, and

where
where

fore,
there-

up,

ship timber

of

the

the difficultiesof life

the discouragement of staple exports forced the people to

and
make

the most

in 1746

calls

of every

"the
ship-building
the Town

Manufacture

in

$50 to $60

cost

ton, and

petitionof Boston

ancient

of Boston

ship could
England, France, or

towns

while

resource.

be

ever

and

almost

had."

In

built of oak

the

Netherlands

citizens
the

chusetts
the Massa-

for $24
an

ton,

vessel

oak

the fir vessels,built

even

only

the

on

Baltic,inferior in strength and durability,cost $35 a ton.

The colonies,
could supply not only their own
wants,
therefore,
but

also could

than

sell ships abroad;

third of British tonnage, it is said,was

593.

Extension

of American

in the sailingas
proficient
carried on
a
large part of the
as

needs

before the Revolution

of American

built.

shipping. The colonists were

in the building of ships,and
"

traffic which

ocean

In the firstyear

commerce.

than

considerablymore

government

American

more

served

the

of the national

half of the tonnage entering

foreigncountries was
the only serious competitors.
American, and Englishships were
The
bulk of American
engaged in the West
shipping was
India trade, but American
ships carried also nearlyhalf of the
the ports of the United

the

States

United

between

the

American

policy of European
commerce
ships from

colonies.

Driven

further

Europe, in spite of
states, designed to exclude

States

commerce

adverse

from

afield

with

by

and

them
this

and

with

their

policy,American

with more
connections
skippers began to seek commercial
had reached them hitherto
distant countries,
from which wares
American,
An
ship sailed for the
only through middlemen.
advertised
first time to China in 1784; in 1788 two ships were
as
loadingat Boston for the Isle of France (Mauritius) and

496

India, and

HISTORY

OF

COMMERCE

to that part of
wishing to adventure
have
the world
an
opportunity of sending goods on
may
afterward
the round
a Philadelphiaship made
freight"; soon
in less than a year.
A vivid impressionof
to China
voyage

"anybody

skill of American

and

the boldness

mariners

of this period is

of the Experiment to China.

This boat,
given by the voyage
a sloop of eighty tons, no
largerand no more
seaworthy than
the sloopswhich now
River to
bring bricks down the Hudson
of fifteen men
and boys safelyto
New
York, carried her crew
Canton and back, despitethe perilsof the sea and of pirates.

another

1. Name
winter

in which

country

transportation

before the introduction

in summer,

than

TOPICS

AND

QUESTIONS

easier in

was

of railroads.

History of the navigationof the Connecticut River. [W. D. Love,

Antiq. Society, April, 1903, reprinted Worcester, 1903.]

2.

Proc.

Amer.

Write

3.

an

the country

on

essay

the

and
economic,social,

store, in the past and

political
importance of

present.

named
in
biographicalsketch of one of the business men
Index
and
section 582.
QPoole's
continuations; current biographical
dictionaries.]
4. Write

What

5.

live? To

is

what

States does it
with

the interstate

now

States does it export its

import? How

its foreign

does its

products,what
with

commerce

in bulk

commerce

of the State in which

commerce

and

products of
other States

you

other
pare
com-

[Ask. questions of

value?

visit freight yards.]

steamship men;
Comparing the figuresof sect. 584 with the figuresfor total

railroad and
6.

561, what

sect.

each

State

formed

guess

the bulk

of the exports from

port?

or

7. Write

do you

ports,
ex-

brief commercial

historyof one of the citiesnamed.

CLocal
histories;Encyc.; commercial
cyclopedias.]
8. Episodes of Boston commerce.
[M. A. D. Howe, Atlantic Monthly,
a

1903, 91: 175-184.]

Prepare and study a graphicchart,sect. 586, and preserve it for

comparison with later conditions.
African slave trade.
10. The
[Weeden, chap. 12; Abbot, chap. 3.]
9.

11.

traded
12.

What
with

reasons

England

occur

so

History of the

P?itman;

Weeden

or

much
commerce

to

you

more

why

the

than

with

Americans
other

of the colonies with

Bruce, Index, West

Indies.]

states

should

have

of Europe?

the West

Indies.

13.

this

time.
14.

573-581;
15.

559-565;

of

Character

Pirates

Abbot,

in

ship-building

privateers
chap.

5,

of

the

Howard

BIBLIOGRAPHY

See

preceding

chapter.

the

the

colonies.

chaps.

Marvin,

23-42;
and

in

commerce

West

Indies

at

Fiske.]

of

Wright,

and

497

COMMERCE

FOREIGN

production

[Pitman;
History

AND

TRADE

INTERNAL

1,

colonial

Pyle,

The

[Weeden,

252-267,

2.]

period.
buccaneers.

[Weeden,
3

chap.

9,

AND

COMMERCE

POLICY,

1789-1815

594.

Importance of commercial
policyin this period.
preceding chapters have described the conditions of

two

The

"

in the United
reference

the

to

directingand

States about

influence

1789, with but

which

the
restricting

interfere with

period governments

that the interests of the

suffer from

the

of

the

free

people

exercised
In

wares.

whole

modities,
com-

not

may

merchants.

in

every

exchange of

as

selfishness of individual

occasional

an

governments

movement

merce
com-

the

In

period under consideration,

lasting through the second war
with England, the influence of governments
the fortunes
on
of our
more
foreigntrade was
pronounced than it has ever
been in later times; and the topic of commercial
policymust
the leading place in this present chapter.
occupy
595.
which

of

Questions

The

policy.
"

Revolution

English colonies was

independent state, claiming to rank
a

shocked
we

can

of

group

the ideas of

hardly

conceive.

system of the time

centuries
active
be

the

European

for
of

states

and
political

an

was

had

commercial

power;

found

only semi-civilized
influence,and colonies,under
to

mother

countries.

Each

pleased the commercial

to

in the

American

been

the

European

political

to

had

of
were

European

complete control
state

For

source

in other continents

states, subject
the

which

state.

sole

an

equal,

extent

an

place

no

into

England's

as

independent

Europe

1776, by

transformed

statesmen

There

of

of

the

regulated as

it

relations of its colonies with the mother

country, with other European countries,and with their colonies,

Now

that the United

States had

won

498

its

independenca
political

COMMERCE

AND

by England as though it was

given its former privileges
though

colony, and

subject to the former

its commerce,

welcome

prevent,

they

were

or

Finally,what
the

the

Old

and

Revolution
596.

New

England

United

stillan
it

was

English

longer

no

European
could

with
States

states

longer

no

European

and

its

frame

serious

the

was

other

it like

treat

themselves

attitude

that it could

among

to

Were

that

now

with

restrict its trade

now

restrictions?

499

1789-1815

it to be treated

was

to

POLICY,

state, and

their

colonies?

itself to

adopt,

it

policyas
pleased? These were
of
problems that perplexed the statesmen
of the American
Worlds, as the success
assured.

became

Policy of England.

has been

Reference

"

made

in

to the

strikingfact that the colonists had

the war
of independence than they returned to
no
sooner
won
active commerce
with the country againstwhich they had
an
been fighting. Comparing the six years preceding the Revolution
with the six years followingthe treaty of peace
(1783),
previous paragraph

we

find that

the volume

of trade

between

the United

States

and

The
American
England was
substantiallythe same.
for lack of the manufactures
people suffered during the war
which
to purchase from
they had been accustomed
England,
and which they found then could be purchased to such advantage
nowhere
as
else; and as soon
peace permitted they began
it
eagerly to buy English products again. For a moment
this trade; the
appeared that England was
ready to welcome
aimed
bill which
to
a
English statesman, Pitt, introduced
the American
trade
not
only with England but
encourage
also with her colonies.
Such
a
policyimplied too serious a
breach
The

in the

old

Americans

England;

growing

market

States

afforded.

The

closed

to

up

American

commerce

which

carried

that country could

for its manufactures

ports of the West

merchants;

punished for their insubordination

of

not

was

into

effect.

encouraged to
not afford to give

indeed, permitted and

were,

trade stillwith
the

system, and

was

to

them

the

the United

which

Indies,however,
Americans

by exclusion
of the

first

to

were

from

were

be

branch

importance.

500

HISTORY

597.

Policy of

OF

France

and

COMMERCE

other

states.

learned,not only from England but also

that an
independent state must
powers,
could hope for no
commercial
favors.
that

suppose

the

countries

The

"

from

Americans

other

European

shift for itself and

They might fairly

had
joined in their war
Netherlands) would take

which

againstEngland (France,Spain, the

advantage of the successful issue of the conflict to seek to
trade which England had hitherto monopthe American
secure
olized.
They found, indeed, that these and other countries
were
willingto sell their goods to the United States; but still
reluctant to take in exchange American
these countries were
for which
most
wares
they felt no specialneed, and were
reluctant to open the trade of their colonies to people of any
John Adams
nationalitybut their own.
might say of France
in 1780, "All the world will allow the flourishing
state of her
and

marine
and

be

to
negotiations,

United

the decisive influence of her councils

and

commerce,

owing

to her

connections

new

with

the

might be in the statement,

France
to express her gratitudeby the grant
of commercial
privileges.France found, actually,that after
the return of peace the Americans
ceased to buy her manufactures,
French
and flocked for trade to the Englishmarkets.
merchants
of them
merce
ever
gained in comcomplained that none
with
American
France

the United

or

other

any

In

maintained

of American

great markets
a

English merchants, why

the

on

Continent

should

relax the
home

the

re"

market

for the benefit of natives?

spite of the unfavorable

the

all the best part of the

designed to protect

were

Conditions

to

country

the colonial market

598.

when

States:

went

custom

strictions which
and

truth there

States" ; whatever
certainlyrefused

considerable

trade with

attitude
of the
commerce,

Europe

of the powers

world, the
as

was

in 1789.

which

United
shown

"

trolled
con-

States

by the

ever,
of previous chapters. This commerce
descriptions
was, howcarried on under serious disadvantages. Reviewing the
staple exports of the country we find that breadstuffs wer"
generallysubject to prohibitoryduties in England, and that

502

its

and

HISTORY

OF

COMMERCE

of the world,
other great powers
humble
national positionin
was
our

influence by
political

it is hard

to realize how

commercial
future.
our
1789, and how precariousseemed
1789-1815.
601. Survey of American
Starting
commerce,
have now
of our
from these beginningswe
to trace the course
the fluctuations
commerce
through the period. So sharp were
in this early stage that I give the annual
statistics,
and, for
attention
which will be apparent later,call particular
reasons
"

to

the

distinction
in the

domestic

between

United

States,and

exports, of articles duced

proforeign exports, of articles

other country and re-exported. No exact

brought from some
figuresfor the imports of this period can be given, but it is
safe to say that the value of the imports did not divergegreatly
from

the value
EXPORTS

OF

of the exports.
THE

UNITED

STATES,

IN

MILLIONS

(Fiscalyears, ending Sept.30 of the

602.
and

Fluctuations

in the

of foreign exports.

the column

"

will cast

appreciateat

once

DOLLARS

given)

export trade; share

If the reader

of totals he will

date

OF

of domestic

his eye down

the unsteadiness

COMMERCE

of

AND

POLICY,

503

1789-1815

trade

during the period under consideration. For a

almost constant.
few years the figure of exports was
Then,
in 1793, began a rapid rise; the export trade doubled,tripled,
than quadrupled. A check to this growth was
more
apparent
in the few years after 1801, but it began again, and the figures
their highestpoint in the years
of exports reached
1806 and
than fivefold in fifteen years.
1807.
more
They had grown
The year of 1808 showed
a precipitous
decline,and, after an
the figuresreached their lowest
interval of partial recovery,
point in 1814. At the close of the period prospects seemed
brighter.
Returning to the table,to analyze the part borne in the
we
changes by domestic and by foreignexports respectively,
find that the foreignexports were
chieflyresponsiblefor the
No
figurescan be given for the earlier
great fluctuations.
our

years,

but

it

can

be

stated

with

assurance

that

of the total

fraction,probably much
only an insignificant
less than one
million,was composed of the products of other
in
had been a tremendous
There
countries.
gain, therefore,
this branch
of our
trade,before 1796, and it proved capable
the other hand, it
of great expansion afterwards,while, on
declined in one
almost
to nothing. Domestic
exports,
year
also,showed a great increase in the early years of the table,
but they soon
to the limit of their expansion,and
near
came
hovered generallyabout the figureof fortymillions; the table
shows, moreover, that they resisted depressinginfluences better
than the foreignexports.
603. Varying fortunes of foreign trade not explained by
for the growth of American
conditions at home.
The reasons
trade after 1790 are to be sought mainly in conditions abroad.
sufficient to
at home
There was
no
development of resources
The United States,
for the great expansion of trade.
account
it is true, gained a new
export product in cotton, which was
shipped in rapidly increasingquantitiesafter the invention of
took the first place among
the cotton-gin in 1793.
Cotton
exports in 1790

"

southern

exports after 1800, and

the extension

of the

cotton

504

A. HISTORY

OF

COMMERCE

culture

helps to explainthe growth of domestic exports. Still

did not rise to the positionof king among
cotton
exports until
the followingperiod,and the descriptionof the rise of the
cotton trade will be referred to a later chapter.
We cannot
the credit for removing
statesmen
give American
the restrictions on
described
our
above, and so
commerce,
enablingit to expand uncramped. In spiteof all their persistence
and ingenuitythey secured only slightand partialconcessions.
The treaty with England, negotiatedby John Jay
of our grievances,
in 1794, removed
but proposed to open
some
India trade on such humiliatingconditions that the
the West
offer was
indignantlyrefused. A treaty with Spain gave us
merely the right to navigate the lower MississippiRiver,
without other commercial
and even
the acquisition
privileges;
of Louisiana,in 1803, had but an inconsiderable effect on our
at the

commerce

time.

604.

Conditions

domestic

exports.

not

to

we

wars

our

commercial

Europe found themselves after the outbreak

These wars
were
followingthe French Revolution.

importance to
first place they caused an

from
subsistence,

our

in two

commerce

they could

ways.

In the

increase in the demand

immense

the states

When

foodstuffs.

their very existence

of their former
of

on

wars

of

of decisive

our

rapid

European

growth
own
strength,and not to the favor of European
owed
it to the necessities of the positionin which

the countries
of the

effect of the

owed

We

"

our

states;

abroad;

of

not

Europe

afford to

for

fightingfor
uphold the principles

were

and welcomed
policy,
protective
whatever
they might
source

the

means

The

come.

in the armies
agricultureto serve
diminished
the supply of food in Europe and called for large
States, for which high prices were
exports from the United
paid. Taking for illustration the little country of Portugal,
withdrawal

we

of

find that

our

in the

course

years

from

from

men

exports

1810

the Peninsular

War

of the
to

1813.
was

to

that country increased

about

fold
ten-

largein
period,being especially
These

years

at its height,and

mark
when

the
the

time

the

when

largearmies

COMMERCE

AND

quartered in the country

could not possiblybe met
Effect

605.

The
in

wars

domestic

our

exports;
the

in

flag of

France

or

capture by British

Britain

or

of

but

was

which
United

The

the

"

the

over

"

of the tremendous

figured

so

involved

wars

ship flying the

constantly exposed
ship flyingthe flagof Great
a fair prize for the French

; a

an

was

In

seas.

the great conflict

extensive merchant

neutrality,and

maintain

to

marine,

this

the

was

carrying trade of the world fell into our

of
countries of Europe, forced by the exigencies
The

States.

hands.

cruisers

allies

country, with

managed

and

of Europe.

of her

swarmed

one

sources.

this period. The

of her allies was

one

privateerswhich
there

native

at

of any

supply of food which

the sole cause

they were
foreign exports, which

commerce

our

505

1789-1815

carrying trade.
only responsiblefor a great gain

of the important states

most

to

from

not

were

increase

largelyin

demanded

foreign exports

on

European

POLICY,

war,

gave

and

threw

The

rightsof

of
principles

the cherished

up

the trade with

open

neutral

states

their colonial

their colonies and

of

in time

war

policy,

themselves.
it is true,

were,

ship captains and merchants

were
subjectto arbitraryand humiliating interference on the part
of the belligerents.In the early part of the war, however,
still unsettled.

American

the results of this interference

were

of

means

practicalimportance, and

restrictions which
forbade

all trade

the

sail direct from

their
the

West

port of the United

some

and

sometimes

her

enemies

The
to

European
a

new

era

wars,

of

than

evade

to

When

the

England

skippers did

not

Europe, but touched at

States,entered the cargo for import,
Indies

actually landed

Prosperityof

rather

(France, Spain, the

colonies,American
to

it.

consumption in this country and was

exported to its destination in Europe,
of domestic
products.
606.

found

were

belligerents
imposed.

between

Netherlands) and

of sentimental

American

It

soon
as

commerce

therefore,introduced

prosperity. "No

one

was

was

for

meant

not

and

withdrawn

though it
and
American

limited

were

posed
com-

shipping.
"

commerce

to any

one

506

HISTORY

branch

of

trade; the

COMMERCE

OF

individual

same

concerned

in voyages
Europe." Our

was

Asia, South America, the West Indies,and

ships gathered the products of distant countries,
coffee,
sugar,
and
them
to
the
of
people
purveyed
tea, pepper, etc.,
Europe.
to

many

the value

of

foreignexports exceeded that of

domestic
exports; in 1806 it was. half as large again. The
reader will better appreciatethe contrast with present conditions
In

years

when

learns that

he

amounted

country

only

the

in 1914
to

foreign exports of the

sixty-seventhpart

one

of

the

domestic.
merchant

The

conditions

former

of the

United

and
favoringconditions,

these

under

marine

spiteof complaints that

been reversed,and that ships could be

had

cheaper abroad than at home.

engaged in foreign trade,which in
in

The

in

900,000

The

1810.

proportion of

correspondingly; and
second

was

growth

Checks
of

Had

the

without
the

to

merchant

be

to

not

500,000 in 1795, and

American

ships in

that of Great

States

of the

tonnage

and

Britain

prosperityafter 1800.

the

grew

United

superior

is

1801

the

explained by
Europe, which

doubt,

check

further

decline

European countries resumed

conclusion

lasted from
there

proved permanent

peace

The

"

on

the

apparent in the figuresfor the few

commerce

the states of

between

the

only
to

our

after

years

appeared

tonnage

other country in the world.

to that of any

607.

national

entering the ports of the United

total of those

States

1789

100,000, exceeded

of

excess

rapidly

grew

in

built

much

States

would

in American

their former

of
1801

peace

to 1803.

have
commerce,

commercial

been,
as

tions.
rela-

however, the Americans

enjoyed the advantages of their previousposition; the exports
hundred
millions in value, and
of 1806 and 1807 exceeded
a
marked
a height which
exports did not again reach for nearly
Our commercial
prosperity at this time was
twenty years.
the period in which
Napoleon and
precarious. It was
very
With

England

were

described

in

the

reopening of

war,

the Continental
over
waging war
System, as
looked on
previous chapter. Each belligerent

COMMERCE

carrier

neutral

the
much

as

AND
not

now

of

source

help

In the

as

of

and

1803

gain

and

enemy,

though it were

periodbetween

507

1789-1815

source

the

to

restrict neutral trade,even

it.

POLICY,

determined

The

best sailors

1,500 American
the greater part of them

battles

fight the

to

in

involved

States

of

it claimed

England.

enforce

for its merchants

from

into

American

ships
shipping was

American

; embargo and

commerce

prepared to

not

was

of

carried

unequal struggle.

an

Decline

608.

impressed from

were

to

some

seized in Europe, and

ships were
condemned, for violatingthe restrictions then
effect.

so

destroy

to

necessary

1812

itself

to

and

by

war.

arms

sailors.

The

"

United

the

rightswhich

The

government

and

adopted instead the policyof commercial

to terms
hoping to bring the European powers
restriction,
by
refusingto trade with them until they reformed their conduct.
shrank

war,

made

forbiddingthe importation
of English manufactures, and in December, 1807, a general
laid on all vessels,forbiddingthem to leave port
embargo was
A

short trial was

for

but its effect

ways,

on

measures

in

both from

the attacks

of its friends

Effect

with

colonial times.

from
as

this

commerce

this

source

to

the restrictions

declined

it

still further

to which

on

commerce

the

that

the

many

The

the

we

were

source,

war

with
home

development

people maintained

they obtained

supply, and

declined.

period,contain

suffering

positionwhich

the

England,

While

Europe

and
of

and

abroad

of milder

now

commerce,

interruptionsof

The

embargo

"

from

wares

tries
export indus-

1812.

manufactures.

manufactured

with

war

decline of

of the

commerce

like the

Our

in various

substitution

home, could not recover

before the embargo, and

finallyforced in June,
of American

and

at

of

evaded

was

the

of its enemies

after the declaration

active

forced

1809.

February,

reached

609.

embargo

foreigncommerce

our

disastrous,and

was

act

an

The

foreign country.

had

with

as

of their

most

they had

England

cut

manufactures

in

done

due

commerce

an

to

acts

them

off

grew

up

letters of Jefferson,written

references

to the

growth

of

manu-

at

508

HISTORY

OF

COMMERCE

factures in his

and in other parts of the country,

State,Virginia,
in New
especially
England, the development of a native manufacturing

industry

was

even

marked.

more

American

factures
manu-

began, in this period,to outgrow the simple forms

of domestic
industry,and to attract the capitalnecessary for
the establishment
of regularfactories. Many companies were
of power
chinery,
maincorporatedto manufacture
goods by means
and industrial methods
which had long been practised
first introduced
in England were
in this country on
now
an
The
extensive scale.
development of the textile industries
was
especiallyrapid. It was estimated that in 1800 the cotton
factories of the country had consumed
only 500 bales of raw
had risen to 10,000 and
material,while in 1810 the number
in 1815 to 90,000. A cotton
factory established by Francis
C. Lowell at Waltham, Mass., in 1814, is said to have been the
first in the world
manufacture

product, were
studied

all the

goods, from

carried

on

in

one

the

processes

raw

material

involved
to

under
establishment,

in the

the finished
a

carefully

system.

610.

of

in which

Considerations

determining early tariff policy.

"

The

at this time
development of manufactures
rise,in the
gave
for protection which
marks
a
followingperiod,to a demand
the
turning-pointin the tariff historyof the country. When
first national tariff was
adopted, at the founding of the Federal
in 1789, the legislators
had a difficult problem of
government
of the country
policy to solve. They found the commerce
fenced in by foreigntariffs composed of high duties and of
actual prohibitions. They desired the reduction of these
some
duties that American
commerce
might expand. Many of them
other
if no
expressed their belief in a policy of retaliation,
means

availed to

the commercial

secure

the reduction.

positionof the country

At
was

this time, however,

not

strong enough

with which
to
permit the tariff to be used as a weapon
menace
foreignstates. Other countries showed but a languid
desire for the products which
then our
were
staple exports,
and we
had great need of the foreignwares
composing our
to

510

indicate
at

relative

the

the

top

has

been

Constitution
S.

G.

be

the

European

the

last

S.

[U.

the

and

the

chart
of

Exports,

1789-1800.

of

S.

U.

tution
Constiview?
of

above.
total

to

exports

about

1800.

total

values.]
chap.

second

4.]
with

war

Hist.]

McMaster,

Chan-

in

references

history;

fluences
in-

to

spread

[Marvin,
the

Prof.

the

and

merchandise,

171-180;

Coman,

[Manuals

Federal

latter

conditions

to

chief

due

this

exports

leading

the

contrary,

suggested

to

the

prosperity.

beginning

foreign

room

period.
of

support

as

contrast

carriers,

7;

chap.

Embargo.

Hart.]
Rise

12.

showing

marine,

neutral

on

in

prosperity,

the

facts

Index,

merchant

of

[Marvin,
The

11.

caused,

as

write
the

and
of

What

importance

to

in

adoption

growth

the

on

century,

of the

Grievances

England.

insert

Abstract,

Expansion

10.

dates

the

business

the

America,

relative
of

Statistical

9.

ning

the
half

in

that

the

and

wars,

Study

8.
in

of

list

commerce

that

successful.

and

popular

Prepare

7.

course

Leave

exports.

written,

are

growth

outside

domestic

of

believed

suggested

from

acting

dates

the
the

great

has

Callender

to

where

.to

and

foreign

generally

led

COMMERCE

OF

of

affecting

events

It

6.

share

bottom,

or

historical

HISTORY

of

[Coman,

industry.

manufacturing

Wright,

180-193;

117-131.]
13.

Considerations

above,

see

chap,

the

determining

commercial

earlier

[Page;

policy.

xlv.]

BIBLIOGRAPHY

See

covering

1889-91,

general
is

by

now

free

sea,

statistics

New

the

special
1920,

period

2d

**

Mahan,

best

Phila.,

works;

may

1818,

ed.,

1835

is
be
or

War

elaborated

Timothy

Adams,
volumes,
Boston,

1812,

Paine,

D.

description.

interesting

found
in

nine

of

Ralph

account.
an

Henry
in

1800-1817

period

the

Haven,

of the

1817,

general

for

narrative.

far

annals,
Haven,

xlv

chapter

in

Pitkin,

Adam
*

N.

History,
is the

most

Little,

vols.,

commercial

Seybert,

Statistical

plete
com-

fight for

The

The

Y.,

view,

tical
StatisNew

CHAPTER
NATIONAL

612.

from

extending

EXPANSION,

of commerce,

Survey

1815

the

comparative

An

indication

1860,

to

which

the

with

contrast

study,

we

by the slowness

growth

of

in this

of trade

course

following table, in

the

marked

was

In

"

period which

next

in the

steadiness

of the

1815-1860

1815-1860.

1815, the

in

period ending

the

XLVIII

foreign

and

commerce.

period is given by
millions

of

can

give only

the

figures here

figures represent

dollars

Though
rough

the

sufficient

the

foreign

again the
of

the

for

Not

period, however,

some

the

attained

mark

figures for

of

of

commerce

show

1860

they had

previously

years

three

hundred

millions.

613.

Reasons

for

these
and
been
peace

changes

in

home.

at

due
the

mainly
states

our

Our
to

of

foreign

trade

prosperity
the

European

Europe

1815

reach

exports

Towards

the

they attained,

must

the

the

approaching

growth.

in

after

years

our

which

be

The

"

end

sought both

With
from

the

their

but
sum

for

reasons

abroad

preceding period

wars.

escaped
511

did

been

of

slowness

period

increasing strength; the

limit

upper

in this

nearly stationary,

was

1807.

year

showed

they

the

twenty

1835

the

trade

our

country

until

in

of

about

For

accuracy.

years

development,

striking features

actually declined.

or

selected

of

commercial

of

picture

given suggest
with

statistics

the

had

return

commercial

of

512

HISTORY

dependence

the

on

OF

United

COMMERCE

States.

Our

domestic

exports of

provisionsdeclined as Europe returned to the

policyof protectingthe domestic food supply; and our foreign
more
rapidlywhen we lost our privileged
exports declined even
and our
merchants
had
positionof the great neutral carrier,
to face not only the active competition but also the adverse
of other countries.
Through most of the period
legislation
about twenty
the annual foreignexports of the country were

breadstuffs

and

million dollars in value.

did

conditions

change

Not
to

our

until

the end

near

advantage.

of the period

The

repeal of the
previous chapter,

EnglishCorn Laws in 1846, as was noted in a

marked
a
policy,which
departure in commercial
export industries.
openings to American
Absorption of

614.

the national

energy

offered

new

in territorial sion.
expanof the United
States

the people
home, moreover,
were
occupied in this period with tasks which turned their
from foreign
thoughts and interests to a large extent away
trade.
It was
a
period of great territorial expansion. A
comparison of maps indicatingthe distribution of population
in the interval
that extraordinarychanges occurred
shows
At the former date the people were
between
1810 and 1860.
stillgathered mainly along the Atlantic seaboard,face to face
with Europe; and most of the territorywest of the Appalachian
The center of populastillleft to the Indians.
mountains
tion
was
not far from
was
Washington, D. C. In 1860, on the
Ohio.
other hand, the center of populationwas
near
Chillicothe,
of population
movement
This change indicates an
enormous
to the Mississippi
westward.
The
country extending west
almost
river had, by 1860, 'been covered
continuously with
settlements;many
people had spread out on the great plains
facingthe Rocky Mountains; and the populationon the Pacific
At

"

Coast

sufficient to entitle that

was

California
615.
The

and

district to the two

States

Oregon.

Relative

decline in the importance of foreigntrade.

expansion of population,
necessary
of the country,

proved

in its

as

it was

to the

early stages to

"

ment
develop-

contribute

514

HISTORY

COMMERCE

OF

The
comparativelylittle to the growth of foreign commerce.
growth of our trade did not keep pace with the growth of
inhabitant in
population. While the share of the average
little over
$30 in 1800, it was
over
$20 in
foreigntrade was
of the
$10 and $15 through much
1860, and ranged between
interveningperiod.
if the people of the country, after the close of
It seems
as
their gaze away
the war
of 1812, had turned
from Europe,
which
the continent
they had for centuries regarded as the
and had fixed their attention on
of civilization,
their
source
its resources
to make
own
continent,with the determination
able.
satisfytheir needs, so far as they were
Many of the
settlers in the western
country led lives of extreme
simplicity,
unable to find a market
for the surpluswhich
the fertile soil
returned
to them, and
consequently forced to restrict their
purchases of foreigngoods to the bare minimum.
616. Importance of the problem of transportationin this
people expanded and occupied
period. As the American
territoryfar beyond the limits of their originalsettlements,
of increasingimthe question of transportation
became
portance
one
rather than solved
The early colonists had evaded
the problem of transportation,
by choosing for settlement
""

districts connected

with

the

by short

sea

routes, and

water

tion
by renouncing,in largepart, the attempt at intercommunicaby land. The problem could no longer be set aside,as
the people spread out in the great interior valley. The
of the

West

East, and
of the
to

could

of

be

contribute

could

country, unless

market
In the

with

no

advantage

nothing

means

were

to

to

the

found

the

resources

people of the

foreigncommerce
to bring the wares

profit.
shall
we
remaining sections of this chapter,therefore,
in this
of transportation
development of the means

study the
period,that

appreciate the details

of the export and import trade,described in followingchapters.
ing
617. The turnpike era.
Even in the earlier period,followwe

may

be better

able to

"

1789, the condition

of the

common

roads

was

felt to be

NATIONAL

EXPANSION,

515

1815-1860

and a movement
for their reform set in. Stock
intolerable,
companies were
chartered,to improve the more
important
and
allowed
to
their investment
were
secure
a return
on
roads,
much
for a one-horse cart, so
so
by charging toll on traffic
"

much

for

two-horse

companies

were

alone
constructed

by

wagon,

chartered
over

them

Hundreds

in the different

2,000 miles
at

etc.

the

of

of

States,and
improved roads

close of the

turnpike
in Pennsylvania
had

been

first quarter of the

century.
Until

better

of

transportationwere

provided the
turnpikes were
important channels of trade. They united the
districts of the interior with the coast
and with navigable
rivers,and made possiblethroughout the year a freighttraffic
which formerly had been restricted to the sleighing
A
season.
and Hudson
turnpike,running
great highway, like the Mohawk
studded
from
so
Schenectady to Albany, was
thickly with
taverns
that the traveler was
out of sightof the swinging
never
sign-boards.
the country's demands.
618. Failure
of the turnpikes to meet
The success
of the turnpikesstimulated the national
road from
to construct
a
government
Cumberland, on the
Potomac
River in the western
part of Maryland, to Wheeling
the Ohio River.
This road was
on
designed to furnish the
so
connection, that was
keenly desired,between the districts
lyingon either side of the mountains; and was for many
years
an
important route for passenger travel. The expense of wagon
transportation,however, prevented a great growth of freight
traffic on this or on other land routes of considerable length.
The
the roads of this period has
cost of moving freightover
been
estimated
roughly at ten cents per ton-mile, and this
cost prohibited the movement
of ordinary freightto a great
distance. The turnpike,therefore,did not solve the problem
of transportation for the country, and turnpikes declined as
About
better means
of transportation
were
brought into use.
the middle of the century the idea of building roads of wood
and plank roads were
of men,
took strong hold of the minds
"

means

516
with

constructed

great vigor for

led to

proved impracticableand
619.

of the

its effects

country

but

years;

the idea

important results.

Vastly more
foreigncommerce

waterways.

the internal and

on

the

was

few

no

of the western

Importance

important in

COMMERCE

OF

HISTORY

development

of the

"

of water

means

that no
transportation.Tt has been said of North America
with perhaps the exceptionof South America,
other continent,
excellent natural

offers such
as

the system of rivers and lakes

Mountains.
Early in the historyof

is furnished

the

Rocky

Spanish rule;

under

United

mouth.
and

the

and

river route

boats

plying

started in 1794, and

was

down
the
float cargoes
of that river,however, made

employed
current

to

difficult. The

of the

crews

lying east

of

western

our

the

Mississippi
at New
Orleans,then
purchase of 1803 gave

market

of the

line of packet

Cincinnati

flowinginto

the Louisiana

control

States

the rivers

with

connection

secure

the

by

traders used

settlements
to

facilities for intercommunication

from

between

Pittsburg

flatboats

many

to

source

were

Mississippi.The swift
ascending navigation

flatboats had

home

to return

by

land,going generallyon foot through nearly a thousand miles

the round trip.
and using about six months
of wilderness,
on
could be ascended
The
stream
only in small boats propelled
by poles and sails. Though the freightrate down the river
low as one
cent per ton-mile,the charge in the other
as
was
direction
better

six times

about

was

of

means

propellingboats

against the

steamboat, like
was

not

from

of the Federal
constructed
miles

of

singleman,

Constitution

hour

which

our

was

made

be

rivers.

western
"

The

of technical progress,
but

was

maintained

developed by

Before

sources.

current

been

steamboat.

(1789)Fitch

againstthe

some

that it would

the

instruments

several different

steamboats
an

applicationof
other

many

the invention

contributions

seven

and

Invention

of

current

had

stronglyfelt;and long before the steamboat

the predictionwas
common
practicalsuccess
on
developedto serve the needs of commerce
620.

need

The

much.

as

the adoption

Rumsey had
speed of four to

and

of the Potomac

and

518

Delaware

HISTORY

rivers; and

OF

these

COMMERCE

successful

experiments

lowed
fol-

were

others in this country and in Europe. Robert

by many
Fulton, therefore,scarcelydeserves the credit commonly accorded
him for invention,but his service was
portant.
not the less imcombined

He
transferred

the ideas and

the steamboat

from

the

inventions of others,and

sphere of technical experiment

operation. The Clermont,

practicalbusiness
York
which started from New
August 7, 1807, and arrived in
Albany, 150 miles distant,in 32 hours,was the first steamboat
in the world which maintained
continuous
traffic
a regularand
in the publicservice.
of

to that

621.

Development

of Fulton's

years

of river

transportation. Within

steamboats

success

"

were

introduced

on

few
the

rivers,and after an interval of trial proved their

In ten years
(1817) a
capacity for meeting the conditions.
Orleans to Louisville in
the trip from New
made
steamboat
consumed
25 days instead of the three months
by barges;
made
the tripin
after another ten years (1827) a steamboat
western

littleover
the time

The

week.

of voyages

steamboats

than

did

to reduce

at first to reduce

more

the rates

of

transportation,

carriage declined

of
gradually as the means
improved. The followingfigures,
transportationwere
giving;
the number
of steamboats
employed on the rivers of the West,
show
how rapidly steam
navigationincreased in importance:
but

the

of

cost

1818, 20; 1829, 200; 1842, 450; 1848, 1,200. Size and

capacitywere

growing also,and

it is said that in 1847

steam

tonnage of the MississippiValley exceeded

whole

British

"Pittsburg city, the

Empire.

ing
carry-

the

that of the

Pennsylvania
book published

styled in a
and other cities,as
in 1830, grew
traffic,
great by steamer
Cincinnati, Louisville,and St. Louis, flourished under the

great western

same

emporium,"

influence.

The

as

most

it

was

obvious

effect

of

the

extension

trade,especially
South.
This trade, however, was
North
and
that between
for it
of great importance to our
foreign commerce,
indirectly
of steam

navigationwas

enabled

the

people of

the

the

growth

South

of internal

to

apply

themselves

almost

NATIONAL

EXPANSION,

519

1815-1860

exclusivelyto the growth of export products, like cotton,

relyingon other parts of the country for food and manufactures.
Demand

622.

for canals

in this

period.

While

"

the river

system offered great opportunitiesfor developingthe

of the

West,

it afforded

filled

be

it

necessarily
incomplete in the

was

with

other

other

by

Mississippiand
rivers
gaps

It left gaps, to
three
transportation, between

of

country, drained

respectivelyby

tributaries,
by the Great

the

Lakes, and by the

The need of bridging these

flowing into the Atlantic.
in the transportation system was
felt acutely in the

second

quarter of the

interior of the
of

of

its

connections

parts of the country.

means

important sections

resources

country, and
the

adequacy, by
There

century,

had

been

was

first met, with

construction
many

population spread

as

in

the

degree

some

of canals.

projects for canals in the colonial

short stretches were

constructed
before 1800.
period,and some
in general, however, with the
themselves
People contented
natural
and

waterways, and sought merely

to

regulatetheir channels

of dams.
The era
regulatethe flow of water by means
of activityin canal construction
began after the close of the
second
with England, in 1815.
war
623. The
easiest
The
Erie
Canal
(1825), and others.
route
lachian
by which a canal might be carried through the Appato

"

ridge lay

mountain

in the

the

valley of the Mohawk

route
were
recognizedin
of
the

war

without

utilizingthem

of

1812, when

and

in 1825

River.

River.

The

colonial

became

along this route

the firstboat passed from Lake
of

Other

canal

canals

were

York, along
advantages of this

of New

bility
period,and the advisafelt especiallyduring and after
was
political
danger of leavingthe country
the

of intercommunication

means

construction

the

State

constructed

was

apparent.

The

begun in 1817,

Erie to the Hudson

to connect

Lake

Cham-

further
with the Erie Canal, and
Ontario
plain and Lake
the people
south, in New
Jersey and Pennsylvania especially,
entered activelyinto the work of canal building.
Further

west,

canals

were

constructed

to

unite

Lake

Erie

520

the Ohio

with

HISTORY

River,and

OF

Lake

COMMERCE

with

Michigan

the

Mississippi

(1848),and just before the close of the period which we

are
studying the St. Mary's Falls Canal (1855) opened the
from
Lake Superiorto the other lakes to boats with a
passage
River

draft of twelve

feet.

Commercial

624.

reduction

effected

trade

an

on

In

and

tolls which

find

different

tended

which

grew

York

had

the total

the total

in abundance

and

Canal,

manufactured

canals

placed

ered.
they covton-mile,on

per

of about

about

charge to

three cents.

not

were

cent,

one

the

same

charges represented a great

the early days of the canals,

the passage
of time.
The
the fertile lands of western

on

begging

the

in

less with

grow

gone

cents

different articles and

on

The

"

lines that

of movement

cost

canals,but
to

canals.

the cost of ten

saving in transportation even

and

the

footingalong the

brought

tolls varied

of

transportation charges which

with

contrast

turnpikes,we

on

in

entirelynew

the

The

benefit

before

inhabitants

the

had

construction

been

able

to

crops
New

of the

Erie

purchase few

foreignarticles. A letter from the Genesee

country (eastof Buffalo),written in 1799, said that grain was
low in priceas to be scarcelyworth the raising,while European
so
to
acre
goods were
very dear; it took the produce of one
Conditions
had improved somewhat
buy a pair of breeches.
before

or

1825, with

increase

in the

this

and
district,

first made

consumption in the

period
to

Canals

New

less

Important
was

the

York

local rather

were

than

the

Susquehanna River,but

the

new

its rich
market

important
as

and
traffic,

the

turnpikes and

with

than

era

of

available

resources

and

prosperity to

for extensive

rivers

for

for

export.

distant

ments.
ship-

canals,their influence in this

slow
national.
Managers were

the

adopt the practiceof reducingrates

distant

We

of

brought nevertheless

Canal

"

extension

navigation of

Erie

625.

the

canals

on

served

long haul,to
mainly local

late
stimuneeds.

to
read, it is true, of cotton being carried from Alabama
York
over
Philadelphia by canal, and of wheat reaching New
It is noteworthy, howthe Erie route from Ohio and Indiana.

NATIONAL

ever, that
on

in 1840

even

York

New

EXPANSION,

canals

seventh

only one
from

came

521

1815-1860

of the

freightcarried

outside the State.

The

river

system of the Mississippiproved stillto be the most valuable

outlet for the products of the great interior
and about
valley,
the value

1850

double

that

its canals.
Ohio

of the

which

wares

it carried to the coast

reaching the seaboard

A

marked

line drawn

River and
by the Hudson
and west through the center of

east

the commercial

watershed

between

the

competing
shippedby

all goods were

routes; north of that line practically
lake and
and

canal,while south of it only articles like tobacco,wool,

manufactured

products
and

were

shipped by

In the

canal

by

and

Reviewing the
the

new

decided

route

of

double

was

trade and

by
we
precedingsections,

the conditions.

none

to

railroads.

find that of

develop the

yet proved adequate to

Transportation on

the

turnpikeswas

expensive to permit the carriageof bulky freightover

distances.

River

and

by

service

connections

too

great

in

opening
stillwas
tied fast to channels cut by
at least be supplemented by feeders

navigation,valuable

the interior to commerce,

nature; the rivers must

"

available in internal

them

had

movement

ascending the

met

transportationadopted

foreigncommerce,

the

that

improvement

of the country and to make

resources

meet

substance
of

most

Mississippi.Indiana

advantage, and

the

for further

means

route, and

tendency to the river

direction,however, the northern route,

reverse

Demand

that

by

of the

way

stillmore

lake, had
to the interior by this
Mississippi.
626.

sent

were

wares

Illinois showed

route.

was

the country.

across

as

it

was

Canals

were

of great

stricted
rerivers,but they too, were
in their course
by the conditions set by nature, and,
like the rivers,
could be used in northern districts during only
as

supplements

part of the year.

What

to

the

of
the country needed was
a means
throughout the year, free to follow

transportationavailable
clined,
inmost
the paths toward
which
the interests of merchants
the exchange of common
and cheap enough to encourage
articles between
points widely separated. The need was met,
in the course
of time, by the development of railroads.

522

HISTORY

COMMERCE

OF

railroads little used for freighttraffic.

Early American
railroads began in this country and
The operation of steam
in England at almost the same
time; the Baltimore and Ohio
627.

"

railroad
and

line

the railroad

Old

World

was

much

this

pool
the Liver-

early period,

valuable

more

found

instrument
and

England

In

New.

railroad

the

In

opened.

was

in the

than

countries

European

in 1830, when

of construction

course

Manchester

however,
in the

in

was

other

great manufacturing

and

with large volumes

already established,

of

shipping centers
valuable freight
to

be carried short distances;the task before

it

was

comparatively

along our

wanted

was

Conditions

seaboard,but

eastern

the railroad

easy.

were

somewhat

in the United

similar

States in

general

districts with
develop agricultural
population, separated from industrial
to

comparatively sparse
of miles.
The traffic offered
and shippingcenters by hundreds
by these districts could not bear the high charges imposed by
railroads in their earlyperiod; these charges greatlyexceeded
in some
those paid for canal transportation and seem
cases
to have equaled those paid for carriage on
turnpikes. Aside
railroads carried
from
coal and
the early American
cotton
comparativelylittlefreight;and they played but a slightpart
in the development of commerce.
a

1850.

of the

Extension

628.

In

"

there

1850

were

railroad

with

MississippiValley could show

Not

and
in all the

mile of railroad had

there

was

country

railroad

no

west

been

of the

coast

thousand

the States of

little over

built in Iowa

connection

sand.
thou-

one

and

nesota,
Min-

the

East

with

Mississippiand

after
of the

west

nearlyseven

miles of line in the States along the eastern

the upper

West

in the

railroads

still few

In contrast

Alleghany Mountains.

system

north

of the

State of Missouri.
Conditions
railroad
West

saw

system
many

were

ready at. last

for

the

extension

of the

through the interior of the country and

thousand

miles

of line constructed

the

in its

The New
York Central,
in the decade ending in 1860.
territory
and Ohio, and other
the Erie,the Pennsylvania,the Baltimore

524

HISTORY

OF

COMMERCE

NATIONAL

33

EXPANSION,

1815-1860

525

526

HISTORY

their o,wn; and the

merchant
tonnage.

ship was

builders

COMMERCE

periodis marked
Down

stillsupreme

American

OF

to

about

by

great increase in

the

1850

in its control of the

ocean

developed the ship to

its

our

wooden

sailing
carryingtrade.
highesttype, the

clipper,and led the world in the art of naval construction.

Their skill,
and the cheapness of good ship timber, more
than
offset the higher prices which
the tariff forced them
to pay
for materials and equipment such as iron,copper, cordage,and
sail-cloth. The officers and crews
of American
vessels enjoyed
international reputation for their efficiency.
an
631.

Position and prospects of the merchant

In 1855

"

than

the tonnage built in the United

before

since; the

marine

States

in 1860.

greater

was

California

gold discoveries had

caused a great increase in the demand
for transportation to
the Pacific Coast, from which the government excluded foreign
War
forced European governments
vessels,and the Crimean
to

ever

charter

many

or

American

vessels for transport service.

At

period (1861)the tonnage of the United States,

includingthat engaged in domestic trade,was not far from one
third of the total tonnage of the world; the British Empire
had slightly
over
one
tries
third; and the tonnage of all other counthan our
Our
own.
grouped togetherwas but littlemore
merchant
fleet exceeded
for the
by half the amount
necessary
carriageof all our exports and imports,and earned a large
from the foreigncountries which
revenue
sought its service.
In one
important point, however, the prospects of the
American
merchant
marine
not
not bright. We
were
were
keeping pace with the peoples of Europe in the construction
of steamers
for ocean
service,and of iron vessels in general.
portance
imsteamers
American
not able to win a place of any
were
ening
in the foreigncarryingtrade; and before 1860 a slackof activityin the buildingof wooden
sailingships was
the close of the

noticeable.
The
Navigation policy: reforms and restrictions.
of the restrictions
period was marked by the removal of many
on
foreignshippingwhich had been a regularfeature of govern632.

"

NATIONAL

EXPANSION,

527

1815-1860

burdened
ships were
at first by heavy dues or by prohibitionsin foreignports, and
it was
retaliated by taxing
but natural that our
government
foreign ships enteringour ports. The disadvantagesof this

policyin previous centuries.

ment

became

system

century, and

apparent

commerce

in the nineteenth

grew

series of reciprocitytreaties removed

discrimination,and
the

as

Our

put the ships of all nations

United

footing. The

same

the former

States held

tially
substan-

on

fast,however,

to certain features of the old

trade,which
by

coast

was

of the Isthmus

way

reserved

was

could

navigationpolicy. The
interpretedto include the trade to
of Panama

Ships built abroad

though they had

country.

flag even
by citizens of

the

United

could not
been

Prepare
years,

no

vessel

the American

sail under

purchased

and

were

owned

States.

AND

QUESTIONS
1.

Cape Horn,

registryunless it had been built in this

American

secure

around

the Pacific

vessels;and

American

absolutelyto

or

coastwise

TOPICS

chart, sect. 612.

[Figures of
showing fluctuations,will be found
a

for the intervening

commerce

in the U. S. Statistical

Abstract.]
2.

of the commercial
Review, in previous chapters,the accounts
states
this
during
period.
The westward
tory;
of population. [Manuals of U. S. hismovement
in Atlas of the Census.]
maps
The population of the country was
as
follows,in round millions

policyof European
3.

4.

(counting half

million

or

over

as

10; 1830,13; 1840,17; 1850,23;

per

5. The

capita, and

indicate

it

one) : 1790, 4; 1800, 5; 1810,7; 1820;

Determine

1860,31.
on

the average

merce
com-

the chart.

town.
history of a western
[Selecta town in one
of the States of the Mississippi
Valley, admitted during this period,and

commercial

determine, from
with

local histories and

biographies,the

extent

of its trade

other parts of the country and with foreign countries.]

What
towns
of the colonial periodwere
situated at a distance from

6.

the sea?

What

towns

grew

to

country in this period,and what

[Consult historical

considerable
were

maps,

their
as

size in the

means

of land

those in Hart's

interior of the
or

water

portation?
trans-

can
Epochs of Ameri-

History.]
7. (a) Write

report

on

the

historyof turnpikesin the State in which

528

A
live.

you

contents

HISTORY

OF

COMMERCE

[Consult State and local histories,

making
and
index.]

full

use

of table of

(6) Development of roads in the U. S. [Hulbert, vol. 11, chap. 1.]

(c) The Pennsylvania State Road in 1796. [Hulbert,vol. 11, chap.2.]
(d) The Catskill turnpike. [Hulbert, vol. 12, chap. 6.]
8.

Cumberland

The

What

countries

the

are

them?

between

compare

Development
chap. 4.]
11.

Character

12.

The

Thurston's

with

of the boats

and

invention

those

of the United

used for river traffic.

an

gaps

exist

river

of the steamboat.

report

[Hulbert,vol. 9,

men.

Magazine, 1905, 9:

the influence of the steamboat

on

States?

[Same, chap. 5.]

[Encyclopedias; U. S. histories;

life of the western

Fulton, N. Y., 1891; S. Bullock in Conn.

excellent article with illustrations.]

Write

what

do the facilitiesfor river transportation in different

10.

13.

especially
chap. 4,

see

of the country;

chief river systems

How

of Europe

440-455,

[Hulbert,vol. 10;

freight traffic.]

stages and
9.

Road.

in building up

of the cities named.

[Local histories.]
14. Early canal projects. [Hulbert, vol. 13; chaps. 2, 3.]
River
route.
15. The Mohawk
[Hulbert,vol. 14, chap. 1.]
16. Early projectsfor a canal in the Mohawk
Valley. [Same, chap.2.]

one

17. The

Erie

Canal.

[Same, chap. 4.]

[Hulbert, vol. 14, chap. 5.]
[Johnson, chap. 2.]

effects of the Erie Canal.

18.

Economic

19.

Origin of American
Did any
European

railroads.

present conditions like those of the

U. S.,in respect to railroad development?
What
has been the history of
railroads in Russia?
[See chap. 44.]
railroad system.
21. Growth
of the American
[Johnson, chap. 3;
20.

Hadley, chap. 2; Coman,

22.

Because

the Ohio

follow that railroads have

to

234-242.]
farmer

received

raised the

more

for his products, does it

priceof articles and forced

consumers

for them?

more

pay

country

of the merchant
[Marvin,
marine, 1815-1860.
Development
chaps. 9, 11, 12; Abbot, chaps. 1, 2.]
24. American
whalers.
[Marvin, chap. 8.]
criticism.
25. Navigation laws of the U. S.: history and
[Wells,
Merch.
marine; Carnegie History, chap. 39.]
23.

BIBLIOGRAPHY
See

chapter xlv for general works.

SPECIAL
from

1820

Sterns, ** Foreign trade of U. S.

1840, Jour. Pol. Econ., Chicago, Dec., 1899, 8: 34-57, 452-

ACCOUNTS.
to

"

Worthy

P.

NATIONAL

J.

SPECIAL

Industrial

"

The

of

paths

(with

railway,

history

of

N.

Y.,

1916;

N.

Y.,

1903.

1913;
and

planck

D.

L.

M.

W.

Chittenden,
N.

Y.,

canal

12)

1904-05)

**

the

E.

Old

Lippincott,

J.

History

of

Baltimore,
of

beginnings
The

fur

History

trade
of

in

canal

the

West,

Far

in

the

Ohio

valley

to

River,
and

Soc.,

Hist.
of

State

New
for

development

the

K.

Y.,

Madison,

Wisconsin,1812-1825,

manufactures

vol.,

N.

M.

H.

1908;

Engineer

State

West:

The

1903.

Ver-

waterways

the

in

route

don,
Lon-

E.

Missouri

of
of

Rep.

to

ship
whaler,

W.

(Buffalo

1908,
system

trade

Wabash

The

Benton,

Buffalo,
the

(Supplement

vol.,

Northwest,

Economic

Thwaites,

1906,

State,

Y.,

of

review

Historical

Hill,

the

1907;

the

on

*The

Fulton,

N.

Hudson,

Maritime

navigation,

Robert

navigation

York

New

Whitford,

Albany,

York,

of

in
E.

N.

W.

H.

story

Y.,

Jr.,
cotton

clipper
of

steam

N.

Adams,

Paine,

The

American

the

of

sloops
steamboat

early

Canals:

construction

vol.

The

Collyer,

D.

Clark,
real

days,

steamboat

F.

Amer.

eastern
**

R.

Dickinson,

W.

H.

Old

Buckman,

of

C.

the

Morison,

H.

The

Johnson,

1921;

A.

Verrill,

R.

in

briefly

more

in
E.

Samuel

History

Morison,

of

Cyclopedia;

trans.

transportation

1920;
T.

navigation:

History
1903.

A.

E.

1920;

Boston,

Haven,

1910;

H.

River

of

1783-1860,

Y.,

John

and

Railroad

Hadley,

Shipping:

New

N.

T.

History

1908.

marine,

1843-1869,

era,

; A.

Massachusetts,

merchant

old

Y.,

highways,

Haven,

New

Phillips,

N.

1860,

to

B.

Homans,

Historic

commerce,

references)

U.

Railroads;
belt

inland

S.

J.

resources.

Hulbert,

TOPICS.

529

1815-1860

statistics;

Commercial

DeBow,

B.

D.

McGregor,

J.

490;

EXPANSION,

Coman,
R.

1912;
Wise.,

1860,

N.

G.
I.

1912;

Y.,

1914.

CHAPTER

XLIX

EXPORTS,
633.

Chief

the chief items

1816-1860

exports in 1860.

1802-1804,
changes.

made

as

years

EXPORTS

The

followingtable gives

the exports of the country

among

correspondingitems

"

basis

OF

from

up

U.

634.

from

S., MILLIONS

the annual
which

OF

to

in

1860, and

average

of the

appreciate the

DOLLARS

It will be noted, as said above,

Changes since 1800.
that the foreign exports of the country did not increase during
the period,and were
about
actuallyless in 1860 than they were
1800.

"

Comparing

merchandise
our

we

commerce,

the years

chosen

the

figuresfor the total exports of domestic

find that this,the most
important branch of

increased
for

eightfoldin value between

comparison. All of the separate classes
about

530

532

HISTORY

OF

COMMERCE

at this

time, that it was protectedby a duty of three cents a

pound on imported cotton, included in the first national tariff.
in importance of cotton.
636. Growth
Various influences,
1789 to bring into prominence the
about
however, combined
of cotton
The great improveas
a
regularcrop.
possibilities
ments
in textile machinery caused
at this time
increased
an
"

demand
then

for the

raw

material.

The

other

crops

which

were

raised in the

not
territorynow
occupied by cotton were
which
have been
flourishing.The indigo culture,for reasons
noted abovQ, was
unpopular; rice culture had declined during
had broken
the Revolution, as the war
up the organizationof
slave labor in the rice districts;
tobacco
was
giving smaller
exhausted
cropping.
by continuous
returns, as the land was
had recentlybeen introduced
A new
varietyof cotton, moreover,
sea-island or long-staple;the
from the Bahamas, known
as
of fine
fibers were
long and silky,suited to the manufacture
threads
and
more
fabrics,and they were
readilyseparated
the fibers of the ordinaryshort-staple
from the seeds than were
an
or
upland variety. The cultivation of this variety was
in the narrow
assured success
stripalong the coast where it
and further inland,where
sea-island cotton
could be grown;
to
could not be raised,people began to strive persistently
the difficulties of the cultivation
of the upland
overcome
variety.
of cleaning cotton.
The
for efficient means
637. Demand
chief obstacle to the cultivation of upland cotton
was
now
To
the difficulty
of separating the fibers from
the seeds.
perform the process by hand-picking was out of the question,
in this way
could clean only one
as
a man
pound of cotton in
had been
devised to effect
a
day. Various simple machines
the separationof the seeds, and these were
fairlysuccessful
to clean
when
applied to sea-island cotton, enabling a man
of them, however, was
success
a
fiftyor sixty pounds. None
when
applied to upland cotton, whose short fibers adhered
very tenaciously to the seeds.
solved by a native of New
The problem was
England, Eli
"

EXPORTS,
who

Whitney,
the

had

south

gone

teacher,and who invented

proved capable of cleaning

as

gin (engine) which

cotton

533

1815-1860

the cultivation of that crop a

upland cotton, and so made
commercial
be described in
possibility.The conditions may
to the government,
words, used in a memorial
Whitney's own
asking for an extension of his patent. He showed
"That,
in
of
in
the
the
he
informed
state
was
being
Georgia
year 1793,
by the plantersthat the agricultureof that State was unproductive,
where
it
in the interior,
produced little or
especially
to
nothing for exportation. That attempts had been made
cultivate

interior

the

prospect of

of the various

flattering.That
the

that

cotton, but

of them

none

seed cotton,which

was

so

kinds

which

this

speciesof

advantage, if any
it from
would

638.

by the
relied for
and

in

with
raw

monopoly

minor

time

the surface

of which

to

as

courage
dis-

generally

might be cultivated

both

to the

with

great

public and the inventor."

gin by Whitney, 1793.

the national patent law, on
saw

"

aged
Encourwhich

he

of his

had

invention,Whitney set to work,

devised a form
of cotton-ginwhich,

has remained
alterations,
fed through a wire
was

cotton

fibers and

of

terms

short

of the

green

of separating
expeditiousmethod
discovered,and that such a discovery

highlybeneficial
Invention

it was

the

and

its seeds could be

be

That

tried in

been

productive,except
extremely difficult to clean

cotton

cheap

had

not

was

were

all further attempts to raise it.

believed

success

were

wires

in

use

ever

The

since.

grating to a cylinderon
saw
teeth, that caught the

or

through, the seeds being retained by

the grating. The gin was
a complete success,
enabling a man
to clean several hundred
pounds of cotton in a day. Whitney
himself reaped comparatively little benefit from his invention,
he found it impossible to prevent infringements;he said in
as
which
1812, with slightexaggeration,that the total amount
he
one

had

pulled them

realized

hour

however,
successful

was

less than

by his machines
was

an

immense

cultivation

the

then

in

saving in cost effected in

operation. The country,

gainer, for the last obstacle

of cotton

was

removed.

to

the

534

invention,had
bales,in
1843

five hundred

1822

million,in

two

the

only two
1802
they passed

In

coast, in which

Atlantic

continued

three

for many

in 1834

million.

one

The

thousand

million,in
States along

culture

cotton

to be the main

years

hundred

one

thousand,

1858

increase of exports.

1793, the year of Whitney's

thousand
bales, rose by leaps

been

bounds.

COMMERCE

in

exports of cotton, which

The

and

OF

and
of cotton cultivation,

Extension

639.
"

HISTORY

first sprang
up,
seat of the industry.

1812, however, the cultivation of cotton

spread in the Southwest, where rich river bottoms and prairie
After

the

of

war

lands offered soil of

and
exceptionalfertility,

rivers facilitated transportation. The

from
and

we

are

in the

exports of cotton

supply.

cotton

At

the close of the period which

studying (1860) over

three

640.

half of the total crop was

raised
Alabama, Mississippi,and Louisiana.

States

King

this country
and

ous
numer-

tenfold in the years 1816 to 1830,

the western
States produced the larger

at this later date

part of the

the

increased

Orleans

New

where

cotton.

"

"

The

attended

was

aspects of the

such

topics as
bringingon the
Never

cotton

results
by far-reaching

political
history. We

commercial

of the

success

culture

in

in economic

must

restrict ourselves

cotton

industry,without discussing
slavery and its influence in

its relations

to

here to the

Civil War.

-in the world's

historyhave

producersenjoyed such

that which was

held by
as
positionin commerce
the planters of the cotton
The
States.
larger part of the
world's supply of an article regarded as of the first necessity
The
in the South.
from a comparativelyrestricted area
came
used to
people of Europe and other continents had become
an

exalted

to manufacture
textiles,
great factories had grown
up
and
as
them, but it seemed
though people must
go unclad
factories must
stop work, if the United States should refuse
cotton

to

of

deliver
a

cotton

Cotton

raw

cotton.

had

famine

took

For

years

haunted

positionin

before

the minds

national

the

Civil War

of European

commerce

fear
facturers.
manu-

equal

in

EXPORTS,
which

535

1815-1860

occupied in international trade.

it furnish directlymore
than half of the total
exports of the United States;it shared its prosperitywith other
industries,and influenced the development of every part of
made
the country. Northern
merchants
fortunes in handling
that

importance to
Not
only did

and

it

transporting southern

district found

cotton; the manufacturers

in the South

market

where

people had plenty

too busy to make;

of money
to buy goods which
they were
the farmers of the Northwest
suppliedin considerable
needs

of the

for food.

part the

The

people of the South were

not blind to these facts, and
tended, indeed, to exaggerate
their importance. As a sample of their attitude this extract
from

South

of every

"Without

firinga

make

war

on

What

would

I will not

is

on

we

to

would

No

on

641.

cotton

depictwhat
with

cotton.

Power

1858

may

be

taken:

drawing a sword, should

bring the whole world to our

could

happen if no

stop

in

without

civilized world

cotton

"

us,

gun,

certain, England

whole

Hammond

speech by Senator

was

every

furnished
one

for three

No,

the earth

dare

you

dares

feet.

years?
this

imagine,but

can

topple headlong,
her.

they

and
not

to make

the

carry

make

war

war

on

it

is

king."
Slightcontributions of

the South

to

exports, aside from

period before the Civil War, when southern

worked
plantationswere
by slaves,it was considered to be the
best policyto plant cotton
continuously,without alternation
diversification of crops, though this policy led necessarily
or
to
of the soil and required frequent removals
to exhaustion
fresh land.
Cotton
therefore,the single product which
was,
in great quantitiesto the internal and
the South contributed
tained
mainforeign trade of the country. The rice culture was
the eastern
and was
extended
coast
on
along the Gulf,

cotton.

but
was

the

"

there

In the

was

consumed

of the Ohio

after the middle

rice,as the

crop

Indigo disappeared from

products. Tobacco
production spread

largely at

list of American

in the States
rose

little increase in the export of

home.

valley,and

the

exports of this

of the century to double

the value

ware

which

536

had

they

HISTORY

OF

COMMERCE

about

1800, but a comparison of the figuresgiven

the opening of the chapter shows
that tobacco
declined

at

still further

In

from

642.

Trade

1860

only

the

had

North,

from

came

the

the North.

closelythose of colonial
The

held

in colonial times.

South,

third,approximately, of

one

of the southern
trade.

positionit

between

of the country
resembled

the

for the

States

and

the

West

Indies

"

total exports

Conditions

times,with

Europe.

in this

period

the substitution

in the

triangleof

North

than it
imported from Europe far more
could export in return; it shipped South, however, largequantities
of foodstuffs and manufactures; and the South gave
in
drawn
exchange bills on Europe which were
against the great
quantities of cotton sent thither. Cotton from the South to

Europe, manufactures
and

foodstuffs

three

from

sides of the

643.

Chief

of

now

North

North, manufactures

South:

such

The

North

the

were

still so

item

could

fisheries and

those

small

in

that

total.

our

industries

grown

they

The

had

which

increased,

become

items

tures,
exports of manufac-

rapidly,and

very

trade.

had

no

forestry,

purchasing the foreignwares

exports from

were

"

like
industries,
of

means

considerable

this class

the

North.

the

slightimportance in the
the other hand, had
on
a

to

to the

triangle.

colonial

required. The

it is true, but

the

Europe

exports from

longer look to
to provide the
it

from

The

South

formed

contributed

(manufactured tobacco, turpentine,

cottonseed
oil cake),but the products of developed manufacture
of
almost
came
entirelyfrom the North; manufactures
and of iron were
cotton
The rise of these
the leading items.
manufactures
will be treated in the next chapter. At the
North, however, as at the South, agricultural
productsheld the
first placeamong
the exports. Foodstuffs and animal products
were
exported to the value of about fiftymillion dollars,and
these wares
The total is small in
came
chieflyfrom the North.
to

some

wares

comparison with that of the

and
ninety million),
which

was

gave

cotton

export (one hundred

little promise of the remarkable

to follow after the Civil

and
pansion
ex-

foodstuffs
War; still,

EXPORTS,
and

animal

the

products were

537

1815-1860

mainstay

of the

Northern

port
ex-

trade.
644.

Gradual

increase

in the

exports of foodstuffs.

increase in the exports of northern

than

would

numbers
For

and

many

in wheat

be

expected from
provided with

an

rather less
was
agriculture
in
people rapidly increasing

flour

languished,and

export of those articles was

of the century.

There

less than

fertile land.

war

of 1812

commerce

even

toward

1840

it had

talk, even,

was

of

abundance

after the close of the

years

and

The

"

of

been

at the

imposing

the

opening
duty on

wheat, to protect the farmers of the Atlantic seaboard from

the only grain-exporting
imports. As late as 1835 Ohio was
district of the West, and
the first grain shipment on
the
Great Lakes, of which
there is record,was
made
about that
time.
of importance as a center
of grain
Chicago became
shipments only about 1850. In the decade from 1850 to 1860,
however, the Chicago shipments increased (roughly)from two
to twenty million bushels, and the total exports rose
rapidly;
canals and railwayswere
at last bringingthe cheap grain from
the West
at last were
to the people of Europe, who
ready to
welcome
it. The export of animal products was
growing also.
Lard and pickled pork were
the chief items under this head,
for the lack of modern
appliancesprevented the export of
fresh meat; but the priceof hogs at Cincinnati doubled in the
fifteen years
farmers
were
couraged
enpreceding 1860, and western
attention to the supply of animal
to give increased
products.
645. Exports of precious metals; result of the California
The last item in the list of exports given
gold discoveries.
at the beginning of the chapter is that of precious metals,
which
than fifty
we
shipped abroad to the value of more
million dollars. Ordinarilythe exports and imports of precious
metals
in the figures of a country's
not included
are
"

trade.

Coin

and

accounts

between

one

and

year

may

bullion

are

used

to make

up

different countries;they may

return

to it the next

year;

the balance
leave
and

of

country

they

repre-

538

HISTORY

no
sent, therefore,

in the

quantitiesof
surplus. The
much

to

countries
not

to

An

like that

commerce

exceptionmust

of the

ever,
made, howof the few countries which
case
produce such
gold and silver that they can regularlyexport a
mines of preciousmetals are to these countries

commercial

as

COMMERCE

contribution

of merchandise.

shipment

was

OF

like

resource

England

and

the coal

are

The

Germany.

these

at first among

little gold and

as

favored

be

or

iron mines

United

countries:

States

it produced

less

and needed
of the
to import most
silver,
and in
precious metals which it required for use as currency
the arts.
These
conditions
were
suddenly reversed by the
discoveryof gold in California in 1848. The gold production
of the country, which
had been formerly less than a million
dollars a year, had risen by 1850 to fiftymillion,and provided
the country with a handsome
surplus which it could
afford to exchange abroad
for merchandise.

Prepare

1.

with

graphic chart of the figures,sect. 633, for comparison

earlier and
2.

The

Review

later

the

conditions.

distinction

between

exported

principalforeign wares

in millions of dollars: coffee

0.7.

From
3.

Write

(a)
(6)
(c)
(d)

The

what
a

plant and

cotton

from

2.2,sugar

cotton

and

domestic
the U.

foreign exports.

S. in 1860

were

lows,
fol-

as

2.1,tea 1.9,hides 1.6,tobacco

countries do you think these

report on one of the following

wares

came?

topics:

fibre.

Different varieties of cotton.

History of cotton, outside America, before

History of cotton in America before 1800.

[Encyclopedias; commercial
references in bibliography.]
4.

TOPICS

AND

QUESTIONS

Invention

of

the

cotton

1800.

geographies; Hammond,
gin by Whitney,

pp.

[Hammond;

3-33,
Amer.

Hist. Review, Oct., 1897, 3: 90-127.1

5.

What

changes have

been

made

in the cotton

tion?
gin since its inven-

[Encyclopedia.]
6.

How

long

do

you

think

the world

would

have

had

to wait

for

an

Whitney had not supplied the need?

before the Civil War.
7. Importance of cotton in southern agriculture

efficient gin if

CHAPTER
IMPORTS,
646.
States

have

imports

been

with

classifythem
in this

so

OF

DIRECTION

POLICY,
Chief

1860.

in

varied

COMMERCE,

The

"

section,however,

imports

in character

to

indicate

of the

that it is

An

exactness.

any

1815-1860

attempt

the

United

impossible to
will be

leading items

made
in

our

millions of dollars.
1860, giving values in round
Of the total of the year, 354, the largestshare fell to manufactures.

imports

in

this head

Under
textiles
third

(wool 38,

of the

these four
of the
5

total

33,

imports

other

chief

cotton

taken by
place was
32, linen 10); nearly

of the

country

manufactures

raw

forms, amounting

the

fell below

imported

millions; a noteworthy exception

with

is the

materials,to be used

the

one

Most
of

mark

In

imported, the

for manufacture

the

from

of iron

item

millions.

21

to

of manufactures

amount

derived

was

of the textile manufacture.

leading branches

steel in various

of

silk

the

and
parison
com-

class

in this country,

of
purchased abroad considerable amounts
hides and skins, wool, etc., but in general we
either manufactured
out of materials
our
wares
procured at home or sent
abroad
colonial wares
had
for the finished product. The
gained both in value and in the proportion which they formed
still small;

was

of the

total

we

imports; the chief items

31, coffee 21,

tea

amounting

8, cigars and
to

about

one

in this class

tobacco

were

6, molasses

fifth of the

sugar

gether
5, altoof the

imports

year.

647.

Significanceof

general character

changed greatly in
of the national

of

the

our

the

import trade at this time.

import trade, evidently,had
"

seventy years

government.

The
540

since the

attractions

of

The
not

establishment

farming

were

DIRECTION

IMPORTS,

great, when

so

there

when

OF

fertile land

was

an

that
foodstuffs,
to raisingraw
energy

had

in abundance

products

people stillgave

materials; and found

look to other countries

of its

for much

541

1815-1860

for such

American

the

be

to

was

demand

eager

and

COMMERCE,

it

and
cotton

as

of its

most

profitablestillto

supply of

manufactured

The

established in
policy of protection, which was
the period under
had not as yet succeeded
in
consideration,
of
buildingup manufactures
capable of supplying the wants
The
the home
market.
of materials
comparatively small amount
wares.

imported for

our

factories showed

that

our

manufactures

still local in

were

denied

the

sources

the

character,without the strength,

opportunity,to reach out and draw from
materials which they could work up and
raw

to the currents

The

of the world's

growth

the increase

of

luxuries
these

else

or

distant
return

trade.

in the

imports of colonial products represented

sume
enabling the people to congeneralprosperity,
in

of
Dividing the amount
imported by the population of the country, and

wares

greater quantity.

to each individual,
falling
find that the per capita consumption rose
follows from
we
as
1790 to 1860:
coffee from about
1 pound in 1790 to over
5
30.
pounds in 1860, sugar from less than 5 pounds to over
so

securinga rough

648.

Growth

idea of the share

of domestic

of manufactured

period, it

was

wholly dependent

as

it had
numbers

which

been
and

in

1790.

be assumed

not

in welfare

stimulated

increased

wares

of this

must

manufactures.

Though

"

greatlyin

the imports

the

course

that the United

States

in 1860
foreignmanufactures
population growing rapidly both
on

caused

demand

as

in

for manufactures

producers to choose manufacturing

instead of farming for their livelihood,
and the government
aided these individuals
by taxing imported wares, and so
givingthe domestic produceran advantage in the home market.
In the followingsections we
shall survey
the chief branches
of manufacture

some

which

time, and consider

development.

the

grew

up

in the

bearing of

the

United

States

at

protectivetariff on

this
their

542

HISTORY

in the

649. Increase
of modern

of coal.

use

forms

COMMERCE

Some

"

of manufacture

idea of the

in the

ment
develop-

United

States

gained by tracing the historyof coal,the great source

for the developed system of factoryindustry. The
power
be

can

of

demand

for coal

the century;
a

OF

million

still very

was

the total

in 1830

tons, and

of the

century

of steam
iron

second

and

power,

making;

marked

was

by

place among
with
in

seems

the

1850

by

over

less than

was

The

second

great extension

successful

the

first quarter of

United

States

in the

had

of the world

comparison with the output

quarter

applicationof

six million

half

surpassed in coal

was

Europe.

the countries

output of

an

States

of

states

in the

production

United

the

output by four of the

small

of Great

coal

reached

in coal

to

the

tion,
produc-

Small

tons.

use

as

Britain

this

at that

time

the output of the United

States in 1913
(54 million),
or
advance
conditions as
(over 500),it marked
a tremendous
over

they were about 1800, and showed that at least the country had
passed through the preparatory stage of industrial development.
650. Sluggish development of the iron industry.
While the
of coal is perhaps the best index of a country's development
use
in the modern
forms
of manufacturing and
transportation,
the use
of iron is also certainlyof great significance;
iron
is the fulcrum
through which the power of steam is applied,
"

repeat Jevons' figureof speech. Great

importance attached,
has been noted in previous chapters, to the improvement
as
therefore,
introduced in the English iron manufacture
towards
1800, by which it was freed from dependence on charcoal,and
to

was

iron

enabled
at

slackness
the

to

which

methods

iron

quantitiesof pig

increased

out

prices. American

reasonable

improved

American

turn

we

find it hard

processes.

Coal

manufacture

and
until

now

iron
to

coke
about

and

bar

showed

makers

forgivein adopting

were

not

used

1840, and

in the

the

new

had transformed
the
which
puddling and rolling,
English iron industry,were
appliedin this country only shortly
before that date,about half a century after their introduction
in England. Some
be found for our
excuse
can
delay in the
of

DIRECTION

IMPORTS,

OF

COMMERCE,

of transportation facilities for

lack

543

1815-1860

bringingthe

iron

and

ore

unfortunate.
A
together. The result,at any rate, was
laid on
imported iron,to protect the home
heavy duty was

coke

did

producer, but

make

for his

It was
inefficiency.
therefore,throughout the period,to import a considerable
necessary,
pig and bar iron and steel,
part of the necessary
and the machine
paying the higherpricescaused by the tariff;
not

industries could not but

to

suffer from

the added

Down

expense.

iron

not strong enough to export

industry was
iron in any
ceeded
quantity, though American
ingenuitysucfor considerable quantities
in finding a market
of iron

1860

crude

up

our

manufactures.
651.

Success

branches
had

of the cotton

manufacture.

With

"

of the

one

of textile manufacture, that of cotton, the Americans

Thanks

success.

more

to

the

alertness

of the

cotton

introducingimproved machinery, and to the

advantages they enjoyed in their supply of raw material,they
had soon
outgrown^theneed of protection. The higher wages
which
laborers were
than offset
more
they paid to American
by the quantity of work turned out, and in the manufacture
of the common
sorts of piece goods they did not fear the competition
other country.
of any
Large manufacturing towns
for cloth which
England to meet the demand
grew
up in New
manufacturers

in

formerly had

been

and

made

by 1850 there were

England as there

New

in the
as

that

Englishmanufacturers

our

ten

and

exports of
million
not

of the American

plain cloth; the

fancy products.
652.
The

Failure

United

and

condescended

consumer,

spindlesat
American
other

cottons

foreignmarkets

to imitate

in 1860

in

work

them, and

amounted

to

over

products,
the export of forest products. The strength
manufacture
cotton
lay in the productionof
bulk of the imports consisted of finer and

more
dollars,

far below

America

manufactures

cotton

cotton

inhabitants.

readilyin South

sold

so

many

were

were

of the

household

than double

to establish

States

was,

the export of fish

strong woolen

of course,

manufacture.

peculiarlyfortunate

"

in its

544

HISTORY

of

supply

material

raw

OF

COMMERCE

for the

manufacture.

cotton

It

joyed
en-

The
wool
advantage with respect to wool.
American
sheep were
comparatively short, and

such

no

fibers from
unsuited

of the finer woolens

to the manufacture

Manufacturers

in their

hampered

were

and

worsteds.

of other

use

wools

by

designed to protect the sheep growers, and paid for

materials
other raw
higher prices than their competitors in
England, while they could not, as in the cotton
industry,
in
make
this country by the skilful
for the higher wages
up
applicationof machinery. Under these conditions the duties
designed to check the importation of woolen manufactures
from abroad
were
only a partialprotection to the American
did not flourish in this
producer; and the woolen manufacture
could in large part supply the demand
of the
country. We
home
fabrics (flannels,
market
for coarser
blankets,etc.),but
a

tariff

we

manufactured

wool

no

for

we

continued

to

the finer fabrics.

import
653.

Other

textile

manufactures.

productswhich

were

silk and

country, but

the

In

"

the

manufacture

of other

imported in considerable amounts,

States made
no
important progress

linen,the United
during this period. Sewing silk
in the

export, and

and

great bulk

and
England,
bought in France
beginningsof a linen manufacture

silk

trimmings

were

made

of silk manufactures

were

while

there

in this

were

only

the

country before the

Civil War.
Other

important of them

most

processes
to

existed

manufactures

our

point is

were

besides

those

devoted

named, but

chieflyto

the

the
first

in

working up raw materials,and scarcelycorrespond

ideas of manufacturing at the present time.
This
illustrated

from

by

the

list of domestic

manufactures

ported
ex-

1860, as given by the government.

Of the total of 37 millions,the items cotton
10.9 and
iron
5.7 were
the product of developed manufacture, and the same
and brass and their
be said,perhaps, of the item copper
may
the other items, however, the
manufactures, 1.6. Among
the country in

leading products

were

of

different

character,and

showed

IMPORTS,

strengthin

raw

DIRECTION

OF

materials

rather

tobacco
household

which

1.6,

the

on

North

North.

The

for manufactured

of the manufactures

States in this

prevalence of

period were
slaveryin the

lished
estabSouth

the attractions of

rise

of

South
than

any

fifth

one

thus

termed

as

much

adapted

the

balanced

South
The

Europe.

book

"In

one

the North

results

every

day of

in

at the age

of maturity

youth

we

we

are

we

more

In
are

instructed

are
we

it has

been

sow

our

followingextract

in

Southerner

lives.

our

in the

forth

muslin; in childhood

gewgaws;

Conditions

triangulartrade, as

set

were

another

or

the

surplus shipments from the North

surplus shipments from the South to

published by
way

in Northern

the mills of the North.

as

to

the

of its staple product, cotton, less

even

above, by which

the

from

in that section prevented

agriculture
considerable
manufacturing industry; and

manufactured

were

to

South

in the United

up

grew

in the

and

of the

It is noteworthy that most

"

factured
(manu-

1.0).

Dependence

wares.

in manufacture

than

545

1815-1860

3.3, spiritsof turpentine 1.9, oil cake

furniture

654.

COMMERCE,

or

1857:

less subservient

infancy we
humored
out

are

to

swaddled

with Northern

books;
Northern
soil;

of Northern

'wild oats'

on

remedy our eyesightwith Northern

we
are
physic;
drugged with Northern
die,our inanimate bodies,shrouded in

in the decline of life we

...

spectacles;in old
when
and, finally,
Northern
grave

cambric,

in

we

see

the bier,borne

upon

carriage,entombed

memorized

shall

with

Northern

with

to

the

Northern

slab!"

followingsections,reviewingthe course
took opposite
the North
and the South
the protectivetariff. The South, which

in the

of tariff policy,that
sides with

stretched

are

Northern

spade, and
We

age

respect to

no
manufactures, desired free trade, that it
practically
might make its purchases in the cheapest market, while the
North
desired protectionfor its growing manufactures.

had

1816.
Beginning of the system of protectivetariffs,
directed to the
previous sections (609-611) attention was
655.

In

fact that the earliest tariffs were

"

but

protective.The
slightly

546

HISTORY

OF

of manufactures

establishment

interruptionof commerce
with England
of the war
protection.At the close of

COMMERCE

stimulated

was

at the time

the

than

by

much

of the

more

by

embargo and

deliberate

policy of
of 1812, however, the time
the war
for the legislators
to intervene in favor
seemed
to have
come
of American
manufacturing industries. The privationsof the
war
people to the dependence of the United
period awakened
States on Europe, which seemed
unworthy of a free state and
which seemed unsafe from the militarystandpoint. The manufactures
which had grown
were
exposed,at
up during the war
threatened
the return
of peace, to a flood of imports which
market for the foreignmanufacturer.
the American
to reconquer
number
of duties
The
tariff of 1816, therefore,included
a
designed to restrict imports for the benefit of the American
moderate, the highest perproducer; the scale of duties was
manent
duty being 20 per cent.
The
656. Course
conflict of
of tariff policy,1816-1860.
any

"

interests

different

between

sections

of

the

led

country

to

changes in the tariff schedules, and occasioned some

Without
bitter political
contests.
attempting to recount the
dency
that the course
of the tenit may
be said in summary
details,
toward
some
was
higher duties till about 1830, when
many

of the duties amounted

The
who

high duties

considered

to 40 per cent

50 per cent

obnoxious
particularly

were

them

and

tax

from

taken

or

more.

Southerners,
their pockets for the
to

for a reduction.
North, and who fought persistently
steadily
They finallysecured a hearing; and duties were
reduced
in the period from 1833 to 1842 until they stood, at
The
tariff
the later date, at a general level of 20 per cent.
it gave
remained
at this low level only two
months, when
place to another tariff with higher duties; the average of the
benefit of the

duties
rose

levied

far above

valorem

ad

the

per

cent, while

was

maximum

generallevel

was

some

duties

Finally,from 1846 until the Civil

reduced
under a low tariff;duties were
24 per cent, while
protectiveduty was

this rate.

War, the country

until the

33

was

about

20

per

cent.

548

by

HISTORY

the railroads and

but

thirds

two

of New

way

OF

the Erie

Canal, took second place,showing

export values leaving the country by

of the

Orleans.

This

cotton-growingcountry

the

its export of the

merchandise

COMMERCE

one

from

the

was

of the lower

natural

New

York.

outlet for

Mississippi
valley,and

cotton, exceeded

ware,

shipped

port

It

in value

all the

cotton, again,

was

standingto the ports next in rank, Mobile, Charleston,

the exports from these cities,
aside from that
and Savannah;
insignificant.Old ports like Boston and
singlestaple,were
had
seventh
Baltimore
sunk
to the sixth and
place, while
the leader,was
stilllower on the list,
and
Philadelphia,once
outranked
was
by San Francisco,if the gold shipments from
that gave

that

port be counted.
ports and the import trade.

659. Northern
remembers

of trade

course

that

what

has

been

said

above

in this period will not

"

The

about
be

reader who

the

triangular
surprisedto learn

the

figuresof imports tell a very different story. New

York
enjoyed an import trade nearly double that of all the
other ports of the country together; it was
the great distributing
point for European manufactures, from which the various
in
of their supply. Second
ports of the country secured most
another
rank, but separated by an immense
interval,was
northern

while

port, Boston;

third,and
named.

Philadelphia and
Other

Baltimore

was

followed

but

in the

poor

order

ports, ranking high in the value

southern

their exports, had

Orleans

New

only

an

inconsiderable

import

of

trade.

character
of
Changes in the direction of trade. New
the trade with England.
There
had been changes also in the
direction of our
The followingbrief table gives
trade abroad.
be compared
figuresin round millions,for 1860, which may

660.

"

with

the

figuresfor

It will be noted

1790

that

given in

section 586.

trade with

our

people
English-speaking

A
important part of our total commerce.
noteworthy change had taken place,however, in our trade with
earlier period we
the British possessions. At any
imported

formed

from

stillthe most

them

far

more

than

we

could

sell to them

in return; the

DIRECTION

IMPORTS,

balance
had

of trade

been

by

COMMERCE,

as

said.

men

the rise of the cotton

549

1815-1860

This

condition

trade, and

was

to

by our export of foodstuffs. Great

Britain was
now
dependent on us for the raw material of her
most
important manufacture, and was
seeking from us also
increasingsupply of food, for her factorypopulation.
be

still further

against us,

was

reversed

OF

661.

Trade

affected

with

and

Canada

the West

Indies.

"

Our

trade

comparativelyrecent growth. Restrictive

northern
duties had
formerly checked
exchange with our
neighbor, but as populationand industries developed on either
for greater freedom
of exchange
side of the frontier a demand
made
itself felt; duties were
reduced, a reciprocity
treaty was
articles were
exchanged
negotiated(1854),and under it many

with

Canada

was

of

free of all duties.

It will be

noted

that

trade

with

the

British West

Indies

developed to a similar degree; and it would be apparent,

included in the table, that our
if other figureswere
far less important than it
West
India trade in general was
had been in the earlier period of our
history. Trade with the
Indies was, in fact,less in 1860
French
and the Dutch
West

had

not

Among all the West India islands Cuba alone

was
a prominent exception to this tendency to decline. Slavery
industry,
in that island; and the sugar
still maintained
was
which had felt severelyin other islands the abolition of slavery,
than

in 1790.

continued

to

flourish there.

Expansion of American
It
America, and the Far East.
662.

"

commerce

may

be

Europe, South
said,in general,that
in

550
our

commerce

which
the

HISTORY

had

broken

OF

through the rather

formerly directed

had

West

Indies.

continent

COMMERCE

We

were

of Europe.

Our

much

so

of it to England

building up
trade

bounds

narrow

with

trade

our

France

had

and

with

to

the

increased

the liberal commercial

greatlyunder

policyof Napoleon III,

and
with other
we
were
establishingprofitableconnections
European states, as is shown by the followingfiguresfor our
in 1860 (millionsof dollars):German
total trade with them
states
10, Italian states 9.
33, the Netherlands
Still more
noteworthy is the extension of our commerce
to the South and to the Far East.
During the period under
review

the states

of Central

and

South

had

America

their

won

free to establish
now
Europe, and were
such trade relations as they chose.
With
Mexico
and various

independence

from

of South

states

Republic) we
sixty million
about

America
had

dollars.

which

while

immediate

no

had

opened

the

1. See

sect.

comparison

3.

abroad

our

reward

China

amounted

trade with

ports of that country, it

prise
enterwas

at

Why
than
What

import trade

this
it

was

to

TOPICS
be

may

charted

make

with that of England

of the U. S. compare

time?

cheaper for the Americans

them

is the effect of

at

to

buy

manufactures

home?

(6) on

[Nicolls,part 1; commercial
geographies.]
7. Early transportations
of coal by rivers and canals. [Nicolls,
chaps.
17, 18.]
8. Assuming that the protectiveduty on iron raised its priceto purchasers,
6.

American

for

later development.

did the

about

AND

protectivetariff,(a) on commerce,
production, (c) on the price of the product?
5. Industrial development, 1790-1860.
[Wright, 132-142.]
4.

to

Japan (about

for the American

for figures of imports which

695

with

How
at

with

promise for the future.

QUESTIONS

2.

trade

Our

twenty million;and

$150,000)gave
least

in

Brazil and the Argentine

(especially
1860
a
commerce
amounting to about

what

coal fields.

must

have

been

[Compare the sections

the effect
on

on

manufactures

Russia, above.]

and

tion?
transporta-

IMPORTS,

chap.

Depew,
Depew,

Huston;

of

the

[Depew,

chap.

2:

ff.,3:

101

S. by

of the

Tariff

15.

Why

try

have

North

in

improvements

in

machine

tools.

what

South

before

the

[DeBow,

war.

1:

the

at

close of the War

of 1812.

[Histories

Adams.]

Henry

[Taussig.]

the

was

see

in the

and

of 1816.

South

effect

in

Study

16.

the

detail

character

of

opposed
industries

protection in this period?

to

and

of North

commerce

protective duty

histories

of the

manufactured

on

and
wares

view
[ReSouth,
would

influences,economic

of the following

[Tariffhistories

and

tariff acts:

by Taussig

mining
political,deter-

1824, 1828, 1832,

and

others; narrative

S.]

U.
the

Study

the
one

1833, 1842, 1846, 1857.

commercial

history of

of the

one

ports named,

sects.

[Local histories; Encyclopedias.]

645-6.
18.

Commerce

of the

South

before

War.

the

[Maury

in DeBow,

3, Iff.]

vol.

19.
to

[Taussig;

Southerners.]

on

17.

manufacturer.

S. to

U.

conditions

the description of the

to

[Taussig;

1860.

ff.].

24

McMaster

14.

and

industry before

Swank.]

woolen

manufactures

Industrial

13.

iron

551

1815-1860

by Sellers.]

49

Cotton

12.

COMMERCE,

482.]

p.

Contributions

11.

of U.

by

46

Difficulties

10.

OF

of the American

Development

9.

233,

DIRECTION

have

been

import trade:
of

20.

chart

by

importance

Make

Effect

22.

America.
vol. 8;
23.

History

the

of the

railroad

rank

in

the

tributing
of harbor, facilities for dis-

facilities?

Can

you

add

other

list?

figures,sect.
with

Canada

660, and

compare

it with

the

of the

reciprocity treaty of

Robinson.]

list

commerce

Curtis

between

in Senate

Exec,

the

United

doc.,

first

States

and

South

session,51st Cong.,

2685.]

Development

of American

commerce

BIBLIOGRAPHY
See

relative

seems

period.

of the

[Rutter;
check

excellence

following factors

their

determining

Europe,

commerce

on

[Haynes,

1854.

to

chart

in

waterways,

for the earlier

21.

to

nearness

goods
factors

important

most

of the

list of ports, which

the

Reviewing

chapter xlviii.

in the

Pacific.

[Callahan.]

LI

CHAPTER
NATIONAL

DEVELOPMENT,

1860-1914

In
Survey of commercial
development, 1860-1914.
in the
the chapters introductory to the history of commerce
directed to the increasing
nineteenth
century, attention was
663.

"

half of the
makes
which
the second
rapidity of movement,
distinguishedabove all others by
century a period by itself,
That
the United
commercial
its wonderful
development.
of the world's progress in comStates enjoyed a full measure
merce
is shown
by the followingtable,which gives the figures
of imports and exports in millions of dollars.

in the last quarter of the century, so that

falling
in the text, givingthe value of imports and exports,
the figures
of trade.
do not do justice
to the growth in the physicalvolume
On the other hand
pricesbegan to rise just before 1900 and,
therefore,the figuresexaggerate the increase of trade in the
most
recent period. Prices of 1913 were, however, only about
one-third
higher than in the decade 1890-99 so that after

Prices

were

552

NATIONAL

allowance

is made

in this
664.

DEVELOPMENT,
for their rise the

period remains

553

1860-1914

growth of American

merce
com-

extraordinary.

Internal

development of the country.

During this
period the natural growth of population was augmented by a
of

steady stream
and

has

"

made

to

this growth, the

been

even

more

to

person

the

small

appear

of people to

movements

has

immigration,which
the

increase

in comparison

country.

in

the

close of the century than

of the

In

value

rapid,and the share

commerce

increased

with

time

all previous

spite,however, of

of

foreigntrade has
contributed by the average

country

greater at

was

the

previous period. The average

inhabitant
had in 1913 a share of about $18 in the imports,
and of about
$25 in the exports.
While the precedingperiod was
called the periodof national
at any

expansion,the period lastingfrom

the Civil War

to

the close

of the century may

fitlybe termed that of national development.

The
population continued,it is true, to spread out
the national frontiers.
It occupied the great plains

within

leading up

to

the

Rocky

region,and the stripof

tains
Coast, and penetratedthe moun-

Mountains

fertile land

along the Pacific

mineral wealth
and semi-arid region in all parts where
and agricultural
possibilities
promised returns to the laborer.
The most
strikingfeature,however, in the progress of the last
the breaking-in of new
forty years has been not so much
adopted for making the most
territoryas the improved means
of all resources, in old and new
territoryalike. Improvements
of

technical

character

transportation and

transformed

have

manufacture, and

new

the

methods

methods

of

of cooperation

changed the aspects of business life completely.

first subjectrequiringattention is the development of

have
The

the transportation system.

665.

Extension

of railroads.

"

history of the
States the most noteworthy

In the recent

transportationsystem of the United

feature has been, of course, the development of railroads. The
divided almost
railroad mileage of the country in 1860 was
the North, the South, and the West, each
equally between

554

section

HISTORY

having roughly 10,000

keenly the need

most

and

wasted
lack

of

where

the

corn

was

reach

to

means

miles.

of increased

where

agricultural
West,

COMMERCE

OF

rapidly extended

section

railroad

through

After

the

which

felt

facilities was

products of rich farm

used
not infrequently

market.

The

lands
for

the

1860

the
were

fuel,for
railroads

MississippiValley,
and in 1869 the first transcontinental
route
was
completed
(Union and Central Pacific). Railroads
reaching out like
feelers into new
regions attracted population and stimulated
were

traffic not

where
districts,
multipliedby
the

of

the

the

and

country but also in the older settled

opportunitiesfor profitablebusiness

were

increased

the

had

country

1860, to over
40,000 miles

new

materials and by
supply of raw
market
for finished products. Old lines were
built until,in 1913, the mileage
lines were
new

widened

extended

in the

only

upper

in

risen from

about

250,000, showing an
a
decade, a greater

30,000

gain

average
amount

it

as

than

in

was

of

about

the total of

1860.

Equal
Improvements in the operation of railroads.
in practicalimportance to the extension of the railroad system
the improvements effected during the period in the conwere
struction
the time in
and operation of the lines. This was
which steel rails and bridgeswere
introduced,which permitted
the use
efficient locomotives, drawing heavier trains,
of more
and so reducing the expense
of carriage. Lines which
had
666.

been

"

constructed

in short sections under

companies

were

thousands

of miles

been

now

the control of different

merged in great corporations,operating

of track.

The

railroads

had

previously

not
independent of each other that there was
standard gage for the track; some
lines set the rails 6
so

7 feet
5

apart,

California

feet,while the Missouri

law

fixed the

Pacific had

gage
gage

in that

even
or

even

State

at

of 5 feet 6 inches.

difference in gage necessitated,

of course, the unloading and
line to another, and proin passage from one
reloadingof wares
hibited
distant freightmovements.
Soon after 1860 a movement
toward

the

present standard, 4 feet 8| inches,brought

556

COMMERCE

OF

the expense of transportationover

a distance exceeding
hundred
miles, and distant freighttraffic was restricted

not

pay

many

and

to manufactures
as

HISTORY

The

live stock.

reduction

market

for the

western

States,and

of all

of the

now

of ores,
scarcelyhave

channels

other
it may
of the

of the

products,such

chargeshas opened
accessible the

would

count

In

country.

natural

for
1913

resources

nothing among
than

more

railways of the United

other products of mines,

carried at all in 1860.

been

profitable

the

on

coal, and

The

half

States
which

railroads

far

exceeding that transported through

(rivers,
lakes,canals,and coasting trade); and

tonnage

of farm

agriculturalproducts of distant

otherwise

carried

tonnage

carry

in

has made

assets

consisted
could

valuable

commonest

kinds,which

the economic

the most

be said in sober

earnest

that

considerable

proportion

people in the country would starve, without the means

if the railroad improvements that have
of earninga livelihood,
since 1860 were
come
suddenly swept away.
Some
idea of the growth of railroad service in the United
be gained from the accompanying
States in recent
years can
brief table,which picturesthe contribution of the railroads in
the carriageof freightand the
their two important activities,
carriage of

passengers.
RAILKOAD

SERVICE

IN

THE

U.S., 1890-1910

(Figuresin milliards: 000,000,000 omitted)

669.
"

The

done
but

Relative

decline in transportation
by canals

development of the railroad system has

with the

away

it has

decline is

reduced

previoussystems
them

to

noticeable
especially

of internal

subordinate
in the

case

and rivers.
not

entirely

transportation,

importance.
of canals.

Even

The
in

NATIONAL

DEVELOPMENT,

557

1860-1914

nearlyhalf of the total canal mileage had been abandoned

and a largenumber
of the canals remaining in operationwere
not paying expenses.
The cost of transportationon the canals
has been reduced
by deepening them to take in largerboats;
tolls have been entirelyabolished,as in the case
of the Erie
Canal ; and stillthe superiorspeed and certainty
of transportation
1880

rail have

by
Some

of the

River
but

robbed

river

system,

canals

have

routes

territoryit

it in importance, and

of the

fared

better.

the

serves

The

railroads far outrank

of the inland

most

of the traffic.

bulk

Mississippi
important channel of trade,

notably,is still an

in the

even

the

have

waterways

lost

their previous significance.

670.

While

Importance
the

country could

loss,the rivers and

as

now

canals

Great

Lakes

along

which

1825.

in

It

Erie

until the

not

was

through
to

and

and

fallen

cheap
In

formerly so important
illafford to dispensewith
boundary. In the first

below
of

1855

of
a

of

means

resources

as
possibilities
ducted
might be con-

be best utilized. Between

they could
on

their

Lakes

the Great

sixfold,
wooden
sailing
grew

access

to
was

market.

completed

at the outlet of Lake

and

channels

improved,

has

of the world.

to

avoid

Superior,and
become
The

Lake

products essential

to modern

industry.

rapids in

the

this canal,

of the

one

great

Superiorregion

has proved to be wonderfully rich in iron,copper,

other

nication
commu-

ever,
century, how-

half of the

second

in

more

canal

Mary's River
since deepened
commercial

useful

carryingcapacityas
Freight rates have
place to large steel steamers.
tenth of a cent per ton-mile,and immense
one
have thus found
a
ore, coal, grain, and lumber
even

means

St.

was

lakes showed

the tonnage

1900

gave

amounts

serious

very

were

the national

which

districts where

increased

vessels

without

"

the

that the three western

channels

Mary's Canal.

growing States of the West, and gained

importance with the construction of canals after

with

greatly

; St.

renounce,

its northern

half of the century Lake

1860

Lakes

of transportation,it could

means

the

of the Great

timber, and

In 1913

the ton-

558

OF

HISTORY

COMMERCE

passing through the St. Mary's Canal was

greater than the tonnage enteringthe seaports of the United
and was
than double
States from all foreigncountries,
more
the tonnage passingthrough the Suez Canal.
nage

of vessels

671.

Decline

of American

great development of the

have

to

country
and

"

was

in

in 1913

entitled the

foreigntrade.
nearly double

United

with

the

of internal transportationwe

means

note, in this period,a decided

shippingengaged

In contrast

shipping.

States

decline in the American

The

total tonnage

what

to

it had

in 1860,

been

positionhigh

of the

up

among

third of this total, however,

one
trading countries. About
was
employed on the Great Lakes, and most of the remainder
was
engaged in the coastingtrade. Both of these branches of
navigationcould be, and were, protectedby law against the
competition of foreignship-owners. The trade of this country
with
other countries,however, could
not
be restricted to
American
vessels without
and the attempts
danger of retaliation;
of the United States to favor its own
vessels in foreign
trade,by taxingforeignvessels at the port of entry, had been
in this branch
of shipping, in
given up before 1860. Now
which the vessels of all countries of the world compete on equal

terms, the tonnage of the United

million in 1860
672.
Of

Effect

States

declined

from

2.5

to 1.0 in 1913.

of the

Civil War

this great loss in tonnage

on

the

the

merchant

largerpart
period of the

marine.

"

fell in the years

The
Civil War.

immediately following1860, the

southern
States,unable to break the blockade which closed
their ports and prevented the sale of their cotton, sought to
retaliate by loosingswift cruisers to prey on the ships which
celebrated of
sailed under the United
States flag. The most
these cruisers,
the Alabama, was
fitted out in England, and
for two

by the Kearsarge in 1864,

haunted
the chief routes of trade,and captured no less than
69 vessels. Other cruisers were
but altogether
less successful,
261
a

years,

Northern

until its destruction

vessels

were

taken.

The

decline in tonnage far greater than

fear of capture caused

the actual

losses at sea;

NATIONAL

DEVELOPMENT,

559

1860-1914

American

ship-owners found their profitseaten up by heavy

insurance
charges, and sold their vessels to foreigners,
who'
could navigate them in safety under a neutral flag. Altogether
the country

shipping less

recovered

iron

had

at

experienceto compete
construction,and

that the

taxes
an

it led to

of all kinds.

ship than
English owner.

an

the

country

This

merchant

the

was

this tune

neither the

with

English in

the

before

even

but

war

period in

extension,and

the
it

war

both

more

new

forms

was

apparent

fortunes

it had
Add

that the West

for the investment

now

both

before

cost
to

to build

of

and

the

the

nor

Moreover, the

the

on

just entering

was

the

resources

war

had,

heavy
navigate

to

to

war

of

American

great increase in the tariff and

It cost

American

cost

it faced.

great influence

indirectly,a

American

the losses of the

drawing ahead.

Englishwere

shipping,for

from

of

beginning.

The

"

million tons

began to gain rapidly on sailingships,and

began to be extensively used in ship-building.

Americans

naval

about

at the

of decline.

have

steamers

in which

with

war

owned

difficulties which

for other
which

it had

causes

would

marine

The

than

Other

673.

of the

out

came

it

than

or

these influences the fact that

the

period of great railroad

offered wonderful

nities
opportu-

capital;and

of labor and

people turned from the

surprisingthat the American
to the land, and resignedthe high position which
they
formerly held in foreign carrying-trade.
not

it is
sea

had

Since
marine.
position of the merchant
States has relied mainly upon
1860, therefore, the United
Of the tonnage
the seas.
foreignersto carry its freightacross
674.

that

Recent

ports of the United

cleared from
in 1913

The

"

about

one

quarter sailed under

effective service of American

for

States

tries
foreigncoun-

the American

ships did not, however,

flag.
respond
cor-

in value of

proportion; they carried only about one-tenth

Various attempts
out by sea.
the exports that went

have

made

to this

been

to

stimulate

the construction

of American

ships by the grant of subsidies

government,

but

the

success

has been

very

and

from

navigation
the national

moderate, and the

560

HISTORY

people have

general unwilling to levy taxes for the

particularindustry. In one respect legislation

support of this

liberal;the

more

under
possible,

it at last

Canal

Panama

somewhat

Act

of 1912

made

to register
restrictions,

severe

flagforeignbuilt vessels engaged

the American

under

COMMERCE

in

been

has become

OF

in

foreign

trade.
675.

diverted

energy

the

of national manufactures.

Development

the

from

found

sea

1860

to

the advance

marked

1914

fruitful field of labor in

of the country

developingmanufactures

beyond

experiment in the history of American

close of this

United

period the

requirements for manufactured

surplus for export to other
the

The

made

labor

has

available
been

population and
have

arisen

railroads

have

so

at the

producing

The

from

the

the

necessary

indispensablecondition

of

brought all parts of

of

to

been

granted on
capitalhas been

the

to

in

have

production. Abundant
growth of the native

parts of the world, who

share

our

commercial

of the continent

resources

investors in all

opportunity

large

of

people, stimulated
has

own

development

closely together,in
centers

the

at

of its

most

supplied both by the

by the increasingflow of immigrants.

rapid promotion which

ability;and

of trial and

and

countries.

sense, that the choicest natural

been

the age

the greatest manufacturing

was

wares,

the

domain

period from

manufactures;

States

was

transportation system

this progress.
great national

The
.

world, supplying

of the

country

of the

Part

"

have

Leaders

by

energy

the

proof of signal
contributed
by

sought eagerly

industrial

gains. Finally,our
factories have
enjoyed an advantage beyond those of any
country, in the great market which has stood waiting to receive
their products. Within
boundaries, each of which measures
thousands
of miles,
lay an area absolutelyfree to trade,provided
with the most
of transportationand comefficient instruments
munication,
and settled by a people numbering nearly a hundred
producers and educated consumers.
million,of prosperous
676.

productionand the
period did the country

Coal

until this

our

use

of steam

power.

realize the full value

"

Not

of its

NATIONAL

mineral

hidden

and

wealth.

The

coal

to be richer than

thought

are

DEVELOPMENT,

the

of any
coal mines

Valley has
resources
agricultural

depositsand rich
is unmatched.

depositsof

those

Ohio

The

561

1860-1914

in

the United

other

States

whole

nent,
conti-

together with
combination

coal production of 1860

iron

which

(13 million tons'!

considerablylargerthan in previous decades,but it seems

in comparison with 240 million of 1900, or
the
insignificant
Bituminous
509 million of 1913.
coal,the kind chieflyused
in manufactures, formed
only one third of the total output
was

in 1850

States

and

only

half

one

four

fifths of the whole.

now

led the world.

The

1870, while in

In coal

it found

but

power

In

prised
com-

United

able
product was used in innumerchief employment in furnishing

its

studying the historyof

that the country did not

is inclined to say
of steam

until after the

Civil War.

employed

in manufactures

in 1869

Machinery.

dividingline

in

coal

productionone
reallyenter the age
total horse-power

The

derived

was
(2.3 million),

equalproportion. In the period

employed increased about ten-fold
the increase steam
suppliednearly

That

"

the

Civil

industrial progress

our

to the factories

in almost

and water

closingin 1914 the power

(to 22.5 million),and of
three-quarters.
677.

productionthe

transportationsystem, and

to the

of the country.

from steam

it

1913

increase in the coal

vast

ways,

motive

in

even

War

is shown

a
really marks
by the history

war

Office; within a few years after the close of the

the number
of patents granted increased greatly,and the

new

level thus established

of the Patent

machine

American
steadilymaintained.
tributions
in this period their great conmade
progress: the system of interchangeable

manufacturers
to mechanical

and

parts, automatic

was

machines,
specialized

by-products,etc. Brass screws

only at great expense;
manufacturers

would

if the customer
them

to

keep

would
the

make

now

furnish

chips of

at

one

utilization of

the

time

could

be

it is characteristic that
them

absolutelyfree

the brass

brass which

were

rod

and

duced
prosome

of charge,

would

allow

cut off in the process.

562

It
in

impossible

is

detail,but

taken

for

modern

that

little

half the

carpets

has

rudest

increase
The
this

in

of

the

678.

be

may

of

had

been,
of

northeastern

States

plants,and

also

the

product

and

Civil

War
Since
the

industry, by

reduced

has

that

formerly paid

stimulated

national

brief

immense

an

the

and

competed

with

Mississippi Valley.

contributed

Southern
now

an

industrial

Birmingham,

and

rapid.

Appalachian

important share

centers

other

were

Southern

the

in

The

manufacturing
rivalled

state

had

The
the

to

southern

North

to

or

increasing quantities,

in

for the

mills

South.

manufactures

of

development

phenomenally

was

the

The

northern

their

cotton

it

and

country.

South.

the

22.8

to

change

the

American

1.0

West

European

no

raw

in

24.2.

to

noteworthy

and

West

manufacture

to

the

greatly extended

sending their

of

1.9

throughout

but

from

grew

in
a

moreover,

manufactures

statistics,in thousand

from

grew

manufactures

had

into

began

fields of

yards

looms.

which

to

has

by

output:

Europe,

South

of

manufactures

in

States,instead

large

which

relativelyto population

England

now

in the

Brussels

or

the

hand

machinery,

power

at

invented,

after
on

1835

worked

were

even

great advance

shown

of the

Extension

extended

looms

be

may

about

weavers

dollars; the capital invested

distribution

New

industry

still woven

ingrain, and

value

There

the

Power

were

carpets,

looms, producing

but
by little,

improved

of

consumption.

period

while

"

hand

rapid development

millions

that

unknown;

price of fine tapestries and

for the

history of manufactures

carpet

were

the

come

of

the

the

day.

per

introduced

introduction
the

methods

carpet

time

COMMERCE

trace

In

old-fashioned

of inferior

nearly

to

illustration.

with

were

here

OF

single manufacture,

factory

home

HISTORY

The
range

of the

growing
cities.

up

of the

markets

iron

production

rich

coal

were

and

in

iron

opened,

total output,

in

and

while

Chattanooga,

564

HISTORY

with the United

opinion,compare

in your

of manufactures:
21.
22.
23.

chap.

COMMERCE

OF

States

as

field for the

ment
develop-

Belgium, China, Germany, Russia, France?

Industrial development, 1860-1890.

[Wright, 159-188.]
Transportation of coal by railroads. [Nicolls,
chaps. 19, 20, 21.]
Geography and organizationof the coastingtrade in coal. [Nicolls,

22.

coal mines.
employed in American
[Nicolls,part 2.]
25. Power
[U. S. Census, Manufactures,
employed in manufactures.
of the census
General report, Abstract
of manufactures.]
26. The
South.
New
[Coman, 292-298.]
24.

Methods

BIBLIOGRAPHY
BIBLIOGRAPHY.

See

"

continuations, Annual
literature;debaters'
Debaters'

handbook

GENERAL.

"

chap, xlv and

library index

Poole's

Index

Readers'

guide

Ringwalt,

E. R.

and

its

periodical
Nichols, and

to

series.

Wells,

**

Rec.

N.

H. R.

and

handbooks, ed. R. C.

add:

Y., 1890,
progress,
Hatfield,ed.,* Lectures on

econ.
*

changes; Edward

Distribution
commerce,

Atkinson,

of products. N.

Chicago,

1904:

dustrial
In-

Y., 1892;

J. F. Rhodes.

History of U. S.,N. Y., 1893 ff.;R. Mayo-Smith and E. R. A. Seligman,

**
Commercial
policy, 1860-1890, Leipzig, 1892.
New
SPECIAL.
Railroads: J. Moody, **The railroad builders,
Haven,
*
The story of the railroad,N. Y., 1898; C. F. Adams,
1920; Cy Warman,
"

Lake
trade:
Henry Adams, Chapters of Erie, Boston, 1871.
*
J. C. Mills, ** Our inland seas, Chicago, 1910; G. Tunnell,
tation
Transporthe Great Lakes, Jour, of Pol. Econ., June, 1896, 4: 332-351;
on
Charles Moore, editor,
The Saint Marys Falls canal,Detroit, 1907,S. V. E.
Jubilee
annals of the Lake Superior ship canal, Cleveland, 1906.
Harvey,
Industrial: H. Thompson, ** The age of invention, New
Haven, 1921;
*
J. W.
tool builders, New
Haven, 1916;
Roe,
English and American
B. E. Hazard, Organization of the boot and shoe industry before 1875,

Jr.,and

Cambridge, Harvard
Press, 1921; M.
industry,Cambridge, 1912.
SOURCES.

period much
and

"

Material

richer and

in
more

T.

government

Copeland, The
documents

cotton

becomes

facturing
manu-

in

this

the reports on Commerce

specialreports on Internal Commerce)

varied.

Beside

Navigation (includingmany
and Commercial
Relations,see the Statistical Abstract, Monthly Summary
of Commerce
graphs),
and Finance
(includingcurrent statistics and useful monothe Census, Reports and Statistics of the Interstate Commerce
Commission, Report of the Industrial Commission, 1900-02, Reports of
the Tariff Board
and Tariff Commission
(including noteworthy reports
of Manufactures,
cotton
and wool manufactures, 1912.) The Bureau
on

NATIONAL

termed

later

series,

in

of

commerce

38,

the
do.

countries,
commerce,

before

just

manufactures

no.

of

Bureau

Miscellaneous
conditions

13;

DEVELOPMENT,

for

S.,

of

charges,

of

markets;
1913;

15,
23,

no.

etc.,

14,

33,
at

Ports
68

Trade

for

World

of
of

selected

the

of

survey

War;

Annual

of

Trade

issued

Commerce,

useful
the

no.

no.

no.

Domestic

reports

outbreak

1914-15;

1913-14;

port

number
the

foreign
U.

and

Foreign

565

1860-1914

no.

review

U.
the
U.

S.

with

U.

S.
S.

ports).

the
with

(terminal

its

commercial
American

11.

of

in

the

foreign

world,
other

1912-

can
Ameri-

facilities,

1860-1914

EXPORTS,

exports in 1913.

Chief

679.

export trade

of the

following table, with

section

United
which

The

"

States

principalitems of the
1913
are
given in the
compared the table in

in

should

be

633.
EXPORTS

OF

U.S., 1913, MILLIONS

OP

DOLLARS

Cotton

steel and

Iron and

manufactures

547
305

Breadstuffs

211

Provisions,including dairy
Copper and manufactures

154
140

Mineral

137

Wood

oils
manufactures

and

116

Total

of these items, omitting decimals

Total

exports of domestic

1,610

merchandise, includingitems

omitted

2,429
37

Total

foreign exports
Exports of preciousmetals

680.

that

in

Noteworthy

changes since 1860.

general respect
unchanged; seven

one

remained

of the immense

149

total of the

the
items

export
made

exports.

"

The

trade
up

While

table

of the

nearly two

shows

country
thirds

the country

tinued
con-

of purrely upon a few great staples for the means

chasing
worthy
noteforeignwares, there had been since 1860 some
changes in the relative rank of the chief items and in
continued
the general character of the export trade.
Cotton
stillat the head of the list in 1913.
to be a leadkigitem, and was
In interveningyears it had for a time yielded first place to breadstuffs;and another item associated with the agricultureof the
had risen to prominence.
northern and western states,provisions,
to

666

EXPORTS,
item

includes

dairy products

meat, but

does not

include live animals.

This

the

of the country
agriculture

position which
1860

American

the value

half.

the country

its natural

resources

trade,it had

no

as

various

kinds

of

In

general,however,
ing
longeroccupied the command-

held

once

well

as

in

our

export trade.
than

agriculturesupplied more

of domestic

less than
While

it had

567

1860-1914

In

four fifths of

exports of the country; in 1913

American

industry had become

it plied
supdiversified.

stilldepended
for the

broadened

largelyon the raw productsof

of exchange in its foreign
means

the field of its activities to include its

wealth, and had begun to

agricultural
sell an increasingshare of its products in the form of manufactured
wares.
or
partly manufactured
The change
681. Change in character of the export trade.
in the generalcharacter of American
export trade through this
period can be best illustrated by comparing the whole group
and manufactured, with the group
of
of foodstuffs,
both raw
industrial products (manufactures for further use
in manufacturing,
and
manufactures
ready for consumption). The
table of figuresshows that in the generationfrom 1880 to 1910

mineral

as

well

as

its

"

these

two

groups

they played in

changed placesin
practically

American

export trade.

The

the part that

value

of the total

EXPORTS,

product

1860-1914

569

of

did not cease

agricultureat home
to grow,
and
indeed rose
rapidlyand steadily.The home market, however,
fast that the surplus available for export remained
so
grew
nearly stationary,and formed a constantlysmaller part of
the expanding total. The country began to look to its industrial
to buy what
it wanted
resources
from foreignlands.
682.

The

Reasons

for

great growth

the

in

increase

the

agreement
an

that

area

land
this

can

with

other

no

War, and

"

northern

agricultural
improvements in transportation,
Old

World

to the food

the

New.

There

part of the

is

earth's surface

plies
sup-

general

presents

in

quantity and qualityof agricultural

the MississippiValley. The
largerpart of
compare

still awaited

area

agriculturalexports.

of

exports

due
to the
products was
which opened the markets
of the
produced so abundantly in
that

of

cultivation

brought under

at

the

close of the

Civil

it.
plow in the period following
Good
land could be had free of chargeby settlement under the
homestead
laws,or could be bought for priceslittleabove what
European farmers had to pay as rent or interest.
683. Improvement of agricultural
The proimplements.
ductivene
of American
furthered
in this
agriculturewas
plements
period by still another factor,the improvement of farm imAmerican
and machinery.
ingenuity,always proverbial,
of
getting the largest
applied itself to the problem
devised means
which
with the least labor, and
were
crops
was

the

"

peculiarlysuited
times.

The

automatic

of the

conditions

the

to

reaper,

on

which

country and

inventors

had

the

long

by the middle
practicalsuccess
of the century, and spread rapidly after its merits had been
An
in 1851.
advertised
agricultural
at the Crystal Palace
and
"The
writer expressed himself as follows in 1866:
reaper
institutions
have
become
necessity, and no
a
mower
The machinery for
farmer of any standing ignores their use.
raking and loading hay in the field,and the unloading in the
barn and on the stack, the potato digger,the corn
cutter, the
and bean
bean puller,the cultivator,the corn
planter and
been

working, had

become

'

'

"

570

OF

HISTORY

COMMERCE

shellers,fanning mills,
threshing machines, corn
and root cutters,hay rakes,tile ditchers,
"c.,"c., though

seed sower,
straw
not

all of recent

and

improved;

all been

have
introduction,

greatlysimplified
farm husbandry,

implement of
tions
the hoe to the reaper, has undergone various transforma."
for the better since the late change of the times.

from

in short

every

led to another.
The
was
reaper
Every step in advance
accomplished the same
displaced by the harvester, which
results with less labor; and this in turn gave
place to the
showed

binder, which

twine

and

Wheat

684.

flour.

exported fell to

breadstuffs

still greater

efficiency.
leading place among

The

"

wheat.

had

found

its market

before the Civil War.

The

closingof

wheat

crop

actually ninefold from

time, when the South
soldiers from

the

settled

1860

in the southern
this market

1863.

to

opened

was

disbanded

the

to

by

States,
threw

war

exports increased

They declined for a

trade,but rose again as

armies

prairies;and

the western

on

can
large part of the Ameri-

Europe, and the wheat

surplus on

the whole

the

and

about

other

1880

colonists
to very

grew

of transportationwas
large figures. The method
improved by
building great elevators and introducingmachinery to handle

the

all

grain at

points of transshipment; a system

classification enabled

and

without

regard

storage and

to

small

For
as

it

by

many

grain,and

wagon
years

of wheat

ton

it cost
hundred

be

to

specificlots; and

after 1860

carried

in bulk,

charges for

the

of modern

instruments
from

grading

Minneapolis

to

before,

farmer, thirty years

miles.
most

milled abroad.

was

wheat

fell greatly. The

movement

transportation carried
Liverpool for less than
to haul

the

of

The

of the wheat

was

introduction

exported

of European

improvements, producing flour not by the old millstones but

established again the
by gradual reduction between
rollers,
reputation of American
flour; and about half in value of the
wheat
685.
with

country in the manufactured

export left the

Indian

wheat

corn.

among

"

the

No

other

cereal

compared

exports of the United

States.

form.
in

value
In

his

572

HISTORY

OF

COMMERCE

of the

South, and it absorbed so much of the capitalas

to crippleproductive power
for a considerable
period. It
the system of slavery,and forced the people to
swept away
serious of changes. It leftto this most
adjust themselves
of the country,
untouched, however, the natural resources
and
the New
South, which has risen since 1880, devoted
itself to the task of developing these resources
with energy
and success.
Meanwhile, however, parts of the country which
hardly counted in foreigntrade before 1860, had been brought
within reach of the seaboard,and had been settled by millions
of active producers. The
balance
of commercial
was
power
thus changed, not by the decline of the South but by the rise

merce

of other
688.

parts of the country.

Cotton.

English manufacturers, who had been in

great straits for cotton during the Civil War, and had in vain
endeavored

"

to find the

in sufficient

material

raw

quantity and
world, returned

of

satisfactory
quality in other parts of the
of supply, the southern
States.
gladly to their former source
The
cotton
brought high prices,the records of cotton
crop
soon
production and export in the years before the war were
and
culture continued
reached
surpassed, and the cotton
to

down

grow

since 1890

years

the

South

staplecrop,
more

was

and

of other
to

producers; and
sufferingfrom

would

fare

to

States

found
have
trade.

made

leave

have

to have

seem

begun

supply
most

and

followed

to furnish

of food

the

products,

with the

course

of the food shipments

however, to have
substitute for cotton
as
an
export product, and
that still their single great staple in foreign

in the
no

to

vised
constantly ad-

were

direct contrast

when

as

less cotton

if it grew

considerable

of trade before the Civil War

low

been

suggested
over-productionof its

farmers

fruit and vegetables,in

especially

were

an

certain extent, and

with

so

have

it has often been

better

Southern

crops.

There

century.

diversifytheir products. They

this advice
northern

of the

the price has fallen

when

littleprofitfor the
that

end

the

to

other

direction.

They

seem,

EXPORTS,
689.

Export

by

eminent

an

other

than

any

have

most

metal

of mineral

except

products : iron.

geologistthat

continent

contributed
tin

has

573

1860-1914

in the
the

to

been

It has

"

North

America

mineral

in

of

serted
as-

is richer

substances

development

found

been

which

Every

man.

quantities of economic

ourselves here chiefly

concern
with the
importance. We must
one
metal, iron,that which has held the chief place in economic
in recent
times, and in the production of which the
progress
United
States has made
Before 1860, as
surprisingadvance.
noted
at

1860

above, the United States had merely followed England

of iron making.
Since
respectfuldistance,in the methods
of America
have
the iron makers
outstripped all competitors,
methods
in the efficiency
of their
and in the quantity

of their

output, and

have

country of the world

industry has

demands

immense
for

shown

made

in iron

the United

production.

itself competent
of the

home

not

States the
The

American

only

market, but

leading

-to meet

also to

iron
the

produce

export in competition with other countries the largeamounts

shown
690.

by

the figuresat the opening of this

Recent

development

of the

American

chapter.
iron industry.

of the iron
followingtable shows that the advance
industrywas slow for a long time, and that its present power
is of very
recent
growth.
"

The

574

OF

HISTORY

COMMERCE

contributingto this result one of the

Among the causes
most
important has been the development of the rich ore
Economies
depositsof the Lake Superior regionand Alabama.
of steam
shovels and carriers,
in handling the ore, by means
and railroad,
and in transportingit by water
have enabled it
to be brought to the heart of the coal and coke regions at
In the reduction of the ore and
comparativelyslightexpense.
in the

various

makers

in recent

processes

times

of manufacture

have

the

American

iron

been

quick to introduce improvements

in other countries; and
discovered
have
themselves
contributed
important devices by which the efficiencyof the
has been greatlyincreased.
labor employed in iron manufacture
691. Machinery.
The
least valuable
part of the iron
or
partly
export is that which leaves the country in the raw
manufactured
The singleitem of machinery (electrical,
state.
sewing machines, locomotives,typewriters,etc.),makes
up
nearlyhalf the value of the iron and steel exports; while other
items (agricultural
implements, cars, bicycles,
etc.),made up
largelyof iron and steel,would swell the importance of the
"

exports of iron manufactures

if
stillfurther,

they were

included

in the list.
The
among

however

Americans
the

machine

have

recentlytaken the place of leaders

builders of the world, and no
country,

high it may have ranked in the past, can afford now

offered by American
machinists.
to neglectthe contributions
The cheapness of raw
materials,iron and steel,has aided the
recent
machine
industry,but
development of the American
has not caused it. We
look further,to the ingenuityof
must
inventors encouraged by a liberal patent system, and to the
how
to make
use
genius of business leaders who have known
of the contributions of technical science to industrial efficiency.
We
must
recognize that the Americans
positive
got some
benefit from the fact that they entered late into this part of
the field of production. They were
tied to the past by
not
sanctified by tradition.
heavy investments, or by methods
note
again the stimulus of the American
Finally,we must

EXPORTS,

575

1860-1914

market, the broadest and richest in the world, constantly

expanding and offeringunparalleledrewards to those who met
for improved instruments.
its demands
692. Copper.
Copper is a metal which has long been
prized as one of the components of brass, and which has been
"

still

increased

industry has
of the

middle

since the

highly valued

more

the

development

field of its

Until

use.

century, however, the United

and
from

recent

The

times.

opening

of the

after the

States had

foreign countries,chieflyChile,for most

the importance of copper
article
an
as

upon

of electrical

of its
of

mines

rely
supply,
to

export dates
of

the

Lake

Superior region,the richest copper mines of the world,enabled

for this metal from
the country by 1860 to supply the demand
native
and
the later development, including new
sources,
of

sources

1880

supply in

large surplus

Montana, has furnished since

and

Arizona

sale abroad.

for

The

copper

mines

of

Michigan, which reach a depth of nearly a mile, are said to be

economical
of skilful and
the best examples in the world
able
mining, and improved processes of reduction have made availwhich
ores
formerly would not pay the working.
copper
693.

Petroleum.

oil in the

mineral

the surface

on

when

country

lightwas

fiftyfeet

was

of
the presence
colby the film which lected

in colonial times

Even

"

was

known

of certain springs, and

applied to

discovered

it.

the bank

on

which

well of oil which

of the Cumberland

took

fire

spouted
River

publishedin 1853,"it was found

and is bottled and exported for
to be useful only medicinally,
that purpose." The interest in this new
product,which seemed
to offer possibilities
beyond its use as a proprietarymedicine,
Oil Company";
led to the organizationin 1854 of a "Rock
Pa., four
driven near
and the first oil well was
Titusville,
in

1830,but,as stated in

years

one

Mineral

of the
oil

country, and

book

the export of oil to foreigncountries

come
to belittle idea that the trade thus started was

later. Soon

began, with

was

after 1860

foreigncommerce.
of the leading exports of the
still larger place in the exports

great features of American

in

would

1913
take

one
a

576

HISTORY

COMMERCE

OF

given at the beginningof this chapterif various by-products,

included in the figures.
such as paraffin,
were
of the oil industry.
694. Development
The
chief obstacle
as

"

development of the oil trade

of transportation. The
difficulty
the

to

the

was

railroad

with

the oil to market

and

furnished

after 1860

system

profit,and

manufacture

the

and

and

the market

enlargedby

have

Chart

at home

products

great reduction

the

figures,as

and

bringing

developed

given place to

perfected,that

carried

and

of the

the transportation

been

with

on

full utilization of all

QUESTIONS
1.

of

times

of oil productshave

with

for oil

extension

in recent

Tank
cars
wonderfullyhigh efficiency.
pipe lines;refineries have been extended
the reduction
of the crude oil might be

early years

means

to

greatest economy

in its

the

by-products;

abroad

has been

of prices.
TOPICS

AND

previouslysuggested,for comparison with

earlier conditions.
2.

What

Valley in

other

parts of the world

quality and

in the character
3.

quantity of

come

land?
agricultural

machinery.

the

Mississippi

do they

How

the facilitiesfor

of the people, and

History of farm

to

nearest

pare
com-

transportation?

[Quaintance in Pub.

Amer.

Econ.

Assoc.,1904, vol. 5, pp. 799-809; Census, 1900, 10: 341-377; Depew,

chap. 50 by Fowler.]
4. Effect of improved farm machinery on production. [Quaintance,
pp.

810-826.]
5. Agricultural progress,

[U. S. Census, 1900,

1850-1900.

5:

xvi-

XXXV.]
[Edgar, Story, chaps. 7, 8.]
7. The grain trade of the U. S.
[Monthly Summary, Jan., 1900.]
8. Grain
elevators and warehouses.
[Rep. Ind. Comm., 1900, 10:
Monthly Summary, Oct., 1903.]
cccxvii-cccxxxix;
6.

Cultivation

9.

The

of wheat

What

commercial
11.

The

S.

flour millingindustry. [Edgar, Story, chaps. 10, 11; Depew,

chap. 39 by Pillsbury; U. S.
10.

in the U.

are

the various

Census.

products obtained

geographies.]
packing industry. [Depew,

chap.

1900, 9: 385-429, 1910, 10: 333-353.]

12. The
dairy industry. [Census, 1900, 5:
Comm., 1900, 6: 268-296.]

from

55

maize?

by Armour;

[Encyc.;
Census,

clxv-clxxxvi;Rep. Ind.

EXPORTS,
Economic

13.

effect

Mod.

of

7, chap.

hist., vol.

the

Civil

War

by Schwab;

19

57?

1860-1914
the

on

Rhodes,

South

Hist.

U.

[Cambridge

S.]
.

cultivation

14.

The

15.

Recent

17.

by Huston;

46

Census,

1900,

The

20.

21.

The

U.

[Hammond,
chap.

by

34

[Depew,

324-

pp.

Edmonds.]
67

chap.

by

industry.

[B. W.

Arnold,

American

iron

Monthly

Monthly,
Summary,

Lectures,

in

[Fawcett

ore.

Mines,
of

industry.
4:

1901,

Aug.,

[Depew,
211-250;

1900.]

ff.; Thurston

131

in

562-568.]

61:

Census,

iron

1902,

Magazine,

1900-

393-431.]

pp.

[Fawcett

iron.

Century

in

Century

Magazine,

851-863.]

61:

Write

the

[Hatfield,

transportation

1900-1901,
22.

of

mining

industry.

International

1-77;

10:

1900-1901,

712-725;

61:

of
in

industry.

Magazine,

Century

the

cxlix,

steel

The

19.

1901,

7:

Depew,

120-228.]

$.50.]

well

Cro

1900;

Virginia tobacco

development

Recent

18.

trade.

pp.

58-5-594.]

the

of

[Hammond,

I860.

cotton

cotton

9:

1897,

Baltimore,

History,

the

1900,

history

Recent

the

March,

of

Census,

Chancy;

since

of

Summary,

By-products

16.

chap.

development

S. Mo.

U.

350;

of cotton

report

S. Census,

of

one

on

Manufactures,
of

(i) Manufacture

the

following
for

Reports

machine

topics, using

volumes

of

industries.

principal

tools,

machines.

(6) Sewing

(c) Typewriters.
(d) Watches.
23.

47

of

Development

by Cowles;

chap. 27,

the
p.

American

182, by

industry.

copper

Rothwell;

[Depew,

Mines,

Census,

chap.

1902, 467-

505.]
24.

The

and

uses

first monograph;
25.

Mines,
of

Development

by Folger;

G.

production

H.

1902,
the

Montague,

of
pp.

American

The

BIBLIOGRAPHY

chapter

li.

719-764;
oil

Standard

1903.]

See

petroleum.

[Census,

vol.

10,

chap.

31

Encyc.]

industry.
Oil

1880,

[Depew,

Company,

N.

Y., Harper,

CHAPTER
IMPORTS,
695.

DIRECTION

POLICY,

Survey of

LIII
OF

import trade, 1860-1914.

the

import trade of the United

of the

in the following table,which

shown

of dollars of merchandise

696.

COMMERCE,

Changes

in

1860-1914

The

"

States

givesthe

opment
devel-

since 1860

values

is

in millions

imported:

the

of

character

of the table furnish

imports.

The

"

centages
per-

of

comparing the
relative importance of different classes of imports at the beginning
and

end

of the

ready

period.

The

means

strikingchange

most

the decline in importance of the class of manufactured

ready

for

the total value

of

quarter in 1913.
was

to

imports in 1860, and

sank

The

which

indication

supply
depending so much

learning

without

amounted

consumption,

to

its need
as

here

to

given

for

that

one

articles
half of

less than
the

manufactured

previouslyon
578

over

is

one

country
wares,

foreignproducers,

580

abroad.
cultivate

In

HISTORY

generalit

farmer better to
paid the American
like cotton
and wheat, which
are
peculiarly
-conditions of soil,climate,and labor in the

crops

adapted to the
United States,rather
well

or

There

has

than

those

crops

which

can

be grown

as

abroad.

better
has

COMMERCE

OF

been

determined

effort,lastingfor
suppliesof sugar

more

than

at home.
century, to raise the necessary
The
established industry in
was
an
growing of sugar cane
Louisiana by 1800, and has been continued
since in that
ever
State. During most of the time the industryhas received the
help of protectiveduties or of bounties,but it suffers in this
and it has never
country from the danger of earlyfrosts,
grown
strong enough to relieve the United States from dependence
of supply.
on
foreign sources
Better prospects seem
to favor the beet-sugarindustry.
first grown
Sugar-beets were
successfullyon a commercial
a

scale in California
of sugar-beets
and

about

spread

the

to

after 1907 beets furnished

Including all

sources

of the continental

of

Since

1890.

that

prairie and
more

sugar

States

was

the

mountain

than

supply, however,

United

time

American

the

sugar

stillless than

one

culture

States,
cane.

product
quarter

people.
materials
699. Increase
in raw
imported.
Turning now
faced by the great increase
to other classes of imports we
are
in articles,
both crude and manufactured, used to supply the
needs not of consumers
but of producers. Articles of this
character had always formed
a
part of our imports, but the
growing use of them in this period is clear testimony to the
American
internal development of the country.
industries,
which previouslyhad attained strength only when
they were
supportedby a generous supply of raw materials close at .hand,
to reach out to all parts of the world for the
were
prepared now
supplieswhich they required.
It is significant,
also,that the great increase in these supplies
materials.
of raw
Articles wholly or
took the form
were
imported still for use in Ameripartiallymanufactured
of the amount

requiredby

the

"

DIRECTION

IMPORTS,
industries.

can

to

one

name

These

OF

articles

COMMERCE,

of many
different
important class,that of chemicals and

very

materials

crude

700.

the

by

fact that

imported in the crude

millions);the country
be made

in

pace

relative
with

importance,

the increase of

imports.

among

tin

industries in 1913

the

nearly

enumerated

wares

millions of dollars.

trade of the country since 1860

was

in

state

Of

"

stated in round

are

in the metal

revolution

the necessary

keep

articles increased

comprised in the

were

Values

in this section.

is shown

in

materials

raw

five sixths in value

The

and

imported for domestic

materials

raw

These

imported.

chief

The

value

respect did they

in neither

but

absolute

in

kinds;
dyes,

were

will suggest their general character.

greatly both

581

1860-1914

the only metal

considerable

which

was

quantities (53

supply itself with most of

An exceptionmust, however,
mineral substances.
Of the products
the case
of precious stones, 50.
could

now

materials for
vegetable kingdoms the raw
most
the textile industry were
prominent. The first place
taken by raw
was
silk,85; then follow the vegetable fibers,
49 (sisal
hemp, jute,flax);wool, 36, cotton, 23.
grass, Manila
that
The
singleitem of greatest value in the whole list was
portance
of hides, 117; while India rubber, 101, representedthe imstillcomparativelynew, but
of an industry that was
of the

animal

and

rapidly growing to a place of prominence.

ported.
imin importance of finished manufactures
701. Decline
materials increased greatly
While the imports of raw
value, the imports of finished manufactures, ready for the

that

was

"

in

showed

consumer,

the
textiles,

great relative decline.

important

most

greater than

only about
as

whole

two-thirds
was

over

of the manufactures

the value

two

dates

there

first the

the finished

total value

in 1860, but

the

factures
manu-

in 1913

was

increase

was

the increase in the import trade

four-fold. In round millions the value
while

imported

60, vegetable fibers and

the

among

the

find that

imported, we
indeed

group

Taking

had

grasses

been

was

as

follows in 1913:

77, silk 31, wool

a

16.

cotton

Between

great growth of population

582

HISTORY

and

of wealth

was

met

The

list of textile

OF

COMMERCE

in the country, but

the increase in

mainly by the development of home

materials

raw

consumption

manufactures.

imported for manufacture

America, given in the preceding section,shows

great gain

in every
staple. The growth of domestic manufactures
of two
wool and
caused in the case
important textiles,
an

absolute
the

while

decline in the value

only

of

case

of the

manufactures

into extensive

come

be

to

noted

jute, etc.,which
vegetablefibers,
until after the middle

use

had

silk,
imports;

of the manufactured

great increase is

in

in the

had

not

of the century.

seek to
If we
Variety of imported manufactures.
explorethe imports of manufactures, outside the singlegroup

702.

"

by the
variety of articles as in previous periods.
china,and glass;jewelry,clocks,works
of the

textiles,we

and

paper

leather

articles like those

millions

more

It is
to

of metal.

named

imports ranging

showed

above

of art, and

books;

furs, and

from

two

or

three to ten

or

of dollars.

probable that

the United

States

will

always continue
named
above, in

like those

wares

great varietyand amounting in the total

cannot

find earthenware,

We

Roughly, a round dozen of

be found, of which
each
can

in value

import manufactured

We

bewildering

same

matting, manufactured

wares;

manufactures

various

confronted

are

afford to refuse the

to considerable

contributions

value.

of peoples who

of inherited
lines,and by reason
natural resources,
taste and skill,
or with the aid of exceptional
offer us what we
cannot
can
readilyproduce ourselves. Since
to depend less and less on
our
1860, however, we have come
in
specialized

have

foreign trade

various

for the

manufactures

which

serve

the

of
needs, and the home product of many
imported from
greatlyexceeds the amount

simpler

household

the

named

abroad.

wares

The
policy since the Civil War.
manufactures, to which I have alluded
growth of American
has often been explained by
frequentlyin precedingsections,
703.

the
War.

Change

change
The

in

tariff

"

in tariff policywhich

reader must

look

came

in other

of the Civil

at the time

books

for

discussion

583
of that

question,on which opinions differ so widely.

of our
attempt here merely a brief summary
recent
history.
the

At

outbreak

duties

of the

war

in force.

was

tariff with

The

I shall

tariff

moderate

tective
pro-

strain of the conflict forced

Washington to adopt every available means

of raisingrevenue.
laid on manufacturers
Heavy taxes were
and other producersin the country, and the tariff was
raised,
increased revenue
from the importers and consumers
to secure
Such an increase was
of foreignwares.
necessary, not only to

the government

raise

but

revenue

to hold

at

their

also to enable

the American

manufacturers

in the home

market, in spite of the taxes

which they paid. Actually,however, the increase was
greater
than was
for these purposes, and by the act of 1864
necessary
dutiable commodities
the average
rate on
had risen to nearly
50

per

cent.

704.

the
be

own

Increase

in

"

period were
repealed when the
war

to normal

however, when

The high duties of

protectiveduties.
imposed with the idea that they should
war

was

and

over

business conditions.
the internal taxes

on

had

the country

turned
re-

At the return

of peace,

manufactures

were

pealed,
re-

casion
peculiarconditions which had formed the ocduties
the protective
for the high tariffno longerexisted,
were
actuallyraised. The people in
kept unchanged or were
generaldid not pay so much attention to the tariff as to other
and did not realize that it was
on
a tax
questionsof politics,
while the manufacturers
them
vigorouslyopas
posed
consumers;
raised
been
had
Duties which
reduction.
by 10
any
were
kept at the higher
per cent to 30 per cent during the war
level which
special
they had reached, and duties on some
articles were
arrangedso that they furnished the unprecedented
The duty on
150 per cent.
protectionof 100 per cent or even

and

the

to more
for example, amounted
rails,
product which England was ready to

steel
the

who
ton
lor

built railroads about

for rails which

$31 to $36.

could

1880

have

had

been

than

the cost of

sell us, and

to pay

cans
Ameri-

$61 to $67 per

purchased in England

584

705.

The

reduction

HISTORY

tariff at the

of the

tariff

OF

close

COMMERCE

of the

century.

parties in the country.

in details,
but the general tendency was

The

tariff

viduals
indi-

changed

was

rather toward

of the protectiveduties.

1880

various

seriouslyurged by

was

and

than reduction

After

"

increase

At the close of the

tury
cen-

the average
duty was not far from 50 per cent of the value
of the goods. The British Board
of Trade
estimated that the

imported into this country from England

important wares
Such a high tariff was
unheard
of in
paid about 70 per cent.
earlier times,in the United States or in Europe; and was
ceeded
exin 1900
The
only by the tariff of Russia.
PayneAldrich

1909, the first general revision

act of

of the tariff that

details but left

some
placefor twelve years, amended
its generalcharacter unchanged; the Underwood
act of 1913
went
further,and is credited by a competent authoritywith
making the greatest change in the tariff system since the Civil

had taken

War.

considerable

It made

left rates

reductions

on

some

items, but

high as before on about half of the chief dutiable

commodities
imported. Before the effect of this last measure
could fairlybe judged the outbreak
in Europe set
of the war
loose forces which
of the world's trade
changed the currents
with

as

little regard to the policiesof lawmakers.

706.

Leading ports,

of the

eastern

country, is shown

(64

by

1860-1914.

seaboard, in

the

the fact that

in 1913

cent) of the total

per

through

The

"

tance
impor-

foreign trade

of

nearly two

in merchandise

commerce

ports. It should

the Atlantic

continued

however

the

-thirds

passed

be noted

that

decliningin relative importance; in 1900

they enjoyed nearly three quarters (73 per cent) of the whole.
these

ports

Next

in rank

cent)

per
was

by
(6

per

The

the customs

; commerce

growing more

the Atlantic.

cent)

was

ports of the

the

were

cent),and

15 per

(12

were

In

houses

Gulf
on

of Mexico

the northern

(1913,
frontier,

by the southern and northern

rapidlythan the old established

ways
gatetrade

comparison the trade of the Pacific Coast

unimportant.

port of New

York

stillstood

without

rival in

impor-

IMPORTS,
Over

tance.

its

DIRECTION

COMMERCE,

half of the total

one

importswas

country.

received

though its share of exports was

nearly half (46 per cent)of the total

stood

York

other

No

port had

through
smaller,it

even

in

1882),and

(56

per

been

distribute among
great foreigntrade.

cent

to

New

York

much

trade of the

10 per cent.
higher,however, in the middle of the

gateway had

heavy charges and

as

the

The

ports

New

as

tendency of recent

other

585

1860-1914

harbor, and

conducted

our

OF

an

period

years

had

share
increasing

concentration

of

of traffic at the

entailing
apparentlyled to congestion,
delays,and encouragingthe use of

not
transportationlines to other ports whose facilitieswere
so
thoroughlyexploited. There have been many changes in
the relative standing of the individual ports; the order of their
the figuresgivingthe perimportance in 1913 was as follows,
centage
of the total commerce
of the country (values of
merchandise
exports) passing through each:
imports and
Orleans, 6; Boston, 5; Philadelphia,
Galveston,7; New
4;
Baltimore, San Francisco, and Puget Sound, 3 each. The
Gulf ports owed their positionmainly to their export trade,
in which cotton
the leadingitem; the secondary ports
was
diversified traffic,
the Atlantic seaboard had a more
on
by which

the pressure on the port of New

707. Direction of commerce
distribution of

York

abroad.

was
"

somewhat
The

relieved.

changes in the

foreigntrade from 1860 to 1913 are apparent

in the following
table,which givesthe percentage,in round
numbers, of the total exports and importsof the United States
in its

commerce

convenience

our

with

For
the great divisions of the world.
of comparison the figuresfor 1800 are included:

586

Relative

708.
the

world.

HISTORY

COMMERCE

commercial

importance of different parts of

the
figuresbring out in a strikingmanner

The

"

OF

close connection

of

and

commerce

civilization.

The

continent

of Europe, in

spiteof its small area and in spiteof its inferiority

far more
than half of our
to Asia in population,contributed
commerce
throughout the century. The proportion of our
trade with Europe grew
during the first part of the century,
to decline again during the latter part, leaving the figures
The
for 1913 very nearly equal to those of 1800.
percentage
share

of imports from

Civil War

(1850, 70

exports in the

cent).

that
The

America

direction

with

the

in the United
a

kind

States

formerly been

In

the

stillas
continents
but

obtained

buyers rather

special foodstuffs and

them

exporting to
growth

of

stillonly
709.

headed

than

with

from

the Old

gain, but

and

Asia

materials

raw

and

had

Africa

population in
our

those

list of the countries

with

which

in 1913

of

"

those

industry,
our

England

we

formed

traded.

of

import trade, exceeding,therefore,our

total

peared
ap-

own

with
mained
re-

commerce.

the United

our

we

parts, but

imports from

Kingdom

terests.
in-

grown,

aggregate

English trade.

expect

from

for

share

the

to

importing
sellers,

our

which

commercial

our

America

small fraction of
of

of

of

World.

one

reason

no

relativelysmall

Oceania

civilized

Importance
the

recovery

important parts of

direction

of South

markets

products. Trade
the

in the

sweeping change

this country

figuresso small that it gave

in absolute

rivals in

from

encouraged exports

comparison with these two most

trade the remaining branches
showed
any

North

in

diversification of industries

the

In

was

per

in importance

were

Europe, but showed

to

when

years,

had

that

of

together.

neighbors

of this continent

countries

materials

raw

recent

more

Europe exceeded

immediate

our

the

(1880,86

parts of the world

all other

before

in importance in the first half of the nineteenth

shrank

century, when
in

later

came

trade with

the

its peak

the greatest concentration

of Europe

with

commerce

the export of

cent);

per

in 1913

Even

reached

Europe

16 per

still
Our
cent

imports

588

from

whole

the

HISTORY

continent

America, Oceania
the United
Kingdom

South
to

OF

COMMERCE

of Asia

and

Africa

formed

cent) of the total exports, and

all four

exports to
stood

which
1913

another

was

neighbor,and

importance
with

in 1913:

of

our

Empire

The

commercial

our

other

of other

almost

countries

countries

States

can

be

share each took in

United

with

commerce
was

exports

(24

the aggregate
above.

of

of

per
our

country

relations in
Canadian

our

these two

bers
mem-

exactly one-third

of

foreigntrade.

our

with

the United

givesthe

of

Trade

710.

continents

English-speakingcountry,

the value

the total value

named

importance in

British

of the

the

together;while our
nearly one quarter

exceeded

continents

in

next

from

or

The

"

in their commercial
in the

seen

total

our

Kingdom,

Europe.

21

relative
relations

which
followinglist,
in merchandise

commerce

cent; Canada,

many,
13; Gerand Japan,

per

12; France, 7; Cuba, 5; Netherland, Brazil

each; Mexico, British East India,Italyand Belgium, 3 each.

An

extension

student.
of four
for

-more

groups,

whole

If

of this list would

confuse

divide the twelve

we

countries

Among
kept her place of
country had

grown

among

our

for

more

note

we

customers

in

with
won

not

that
dence
prece-

by

her

demand

for

our

and

her

raw

materials.

Reviewing

the

other

from

had

Europe

development

of Russia

that France

Continental

industrial

the absence

first two

the
two-thirds;
three-quarters.

importance; commerce
slowly,and Germany had

high

will note

than

the

relative
but

aid the

named

find that the first group,

than one
half of our
total commerce;
than
eightcountries,accounted for more

together accounted
the European states

than

into groups
four countries,accounted

we

twelve

reader

rather

growing

of

Europe the
the list of the great empires

and

states

Austria-Hungary,and the presence of such little

and Belgium. Area
and population
states as the Netherlands
are
obviously factors which have no decisive influence on
the commercial
importance of a country.
711. The
and
Asia.
Attention
has
Americas
already
been directed to the fact that although the major part of our
"

589

interests still lay in

commercial

interests there had

our

reader

The

of time.

Europe the concentration

graduallyless

grown

will note

the evidence

of this

dispersionin the fact that of the twelve

the most
important in their commercial
States in

United
were

1913, six

with

these countries

took

on

the

the

American

states

position in

of

an

relations

on

British

of countries

group

of

the

value

of

skins,etc.)which
similar but

with

the United

as

as

the

States

industrial state, offering

finished
of

for sugar and for coffee

to the south of us made

consumer,

respectively.These and other states

small purchases in the American
relatively
with

named

industry. The other two

the list owed
the importance of their
largelyto their abilityto meet special

of the American

demands

countries

active

more

materials

raw

trade

our

tendency to

were

became

character

for

products

the passage

extra-European. Two of these

neighbors in North America; exchange

immediate

our

with

of

India

East

bought from

of the

were
us

market.

in 1913

same

Our

that

kind;

less than

lations
re-

tenth

one

products (coarse textile fibers,burlap,

it sold to the American
importer.A tendency
the

showed

less marked

itself in the trade with

Japan

of the total American

imports,but
took less than 3 per cent of our
exports. Noteworthy is the
three hundred
absence from the list of China, numbering over
million inhabitants,but accounting for less than 2 per cent
which

supplied5

of the trade

per

cent

of the United

QUESTIONS
1.
as

well
2.

of

Chart
as

the absolute

U. S. and
The

TOPICS

695, and

note

the changes in the relative

importance of different classes of imports.

States in 1913

of Germany.

decline in import of manufactured

was

abroad,

else

Which

AND

Study the indications of trade

other countries given by these comparisons.
or

the country
or

in 1913.

the import trade of the United

Contrast

England
3.

the figures,sect.

States

is the

wares

between

view?

the

implied either that

buy finished products

growing poorer, and so was unable to

was
competent to supply its
growing more

correct

with that

own

needs.

590

HISTORY

COMMERCE

used in the household

supplies,

food

What

4.

OF

in which

live,come

you

foreign countries?

from

there been

Has

5.

If

farmer

American

an

and

wheat

amount

of foreign food

in the past

household

generation?
by raising cotton or
can
get
sugar
why he should
exchanging his surplus, is there any reason

products consumed
6.

change in the relative

any

in your

more

raise sugar?

industry. [Depew, chap. 37 by Searles;

Pub. Amer.
Econ. Assoc., 1904, 5: 79-98; Census, 1900, 6: 443-494;
1910, 10: 477-483; U. S. Bureau of Manufactures, Misc. Series,no. 53,
7.

The

American

The

beet

cane

sugar

1917.]
8.

industry. [Census, 1900, 9:

sugar

471-477; Rep. Ind. Comm., 1900, 10:

55th Cong., 2d Session; Poole's Index.]
9.

The

chemical

industry of the U. S. [Depew, chap. 63 by Bowers:

10: 523-569; 1910,10: 531-550;
1900,7: clii,

Census, 1880, 2: 985-1028;

Bureau
10.
uses,

of

of Foreign and
Write
one

report

of the

543-555; 1910, 10;

Doc. 398,
ccli-cclxxiv;House

raw

Dom.
on

Commerce,

Misc.

the history,sources

materials mentioned

82, 1919.]

Series,no.

of supply,
in sect.

700.

commerce

and

mercial
[Encyc., com-

geographies,U. S. Census.]
with respect to
followingindustries,
from
abroad:
production at home and importation
(a) Glass. [Depew, chap. 40 by Gillinder; Census, 1880, 2: 102911.

Write

report

on

one

of the

1152, 1900, 9:947ff.; 1910, 10: 975-884; U. S. Bureau of manufactures,

Misc. Series,no. 60, 1917.]
and potteries.[Depew, chap. 41 by Moses; Census,
(6) Earthenware
of Manufactures,
1900, 9: 899 ff.; 1910, 10: 849-871; U. S. Bureau
Misc. Series, no.
16, no. 21.]
of leather. [Depew, chap. 75 by Foer(c) Hides and manufactures
derer; Census, 1900, 9: 699-738; 1910, 10: 717-732.]
(d) Boots and shoes. Depew, chap. 87 by Rice; Census, 1900, 9:
For. and Dom.
Commerce,
739-767; 1910, 10: 697-714; U. S. Bureau
Misc.

Series, no. 76.]

[See Depew and Census

Abstract
12.

for exports and

Study in detail

for many
imports of

one

of the

other

industries; see

products of industries.]

following chapters in

policy:
(a) The

war

Statistical

tariff.

(6) The failure to reduce the tariff after the

rates.
(c) Increase of duties above war
(d) The Act of 1883.
(e) The Act of 1890 (McKinley Tariff).

war.

recent

tariff

IMPORTS,

DIRECTION

(/) The

Act

(0) The

Act

of 1894

Act

of 1909

(1) The

Act

of

COMMERCE,

(Dingley Tariff).
(Payne- Aldrich).
(Underwood).

1913

[Taussig or

and Seligman.
The student
Mayo-Smith
tariff histories by Stanwood, Rabbeno, etc.,narrative
periodicalarticles.]
contemporary

The

13.

sketch

draw

country

the figures and

commerce

imports,the second

On

lines from

extending out

of relative importance
of

sult
con-

histories and

passing through the eight principalports in 1900.

of the

map
to

also

may

followingfiguresgive, in millions of dollars,the

in merchandise

591

1860-1914.

(Wilson Tariff).

of 1897

The

(h)

OF

the different ports tional

proporto sea;
thus giving graphic representation
The

of the ports.

that of exports.

first figure is that

New

York, 1,048,918; Galveston,

170;
Orleans, 82,
Boston, 147, 70; Philadelphia,93, 76;
8, 281;
Baltimore, 33, 116; San Francisco,63, 66; Puget Sound, 51, 63.
best be charted by the use of colored
sect. 707, may
14. The figures,
New

giving each

crayons,

grand divi sion its own

equal units,by the

of 100

into sixteenths

long (16

of

the charts

as

not

at

line

composed
scale; a foot rule,divided
a

the line 65 inches

exports separately,and

importance

of

our

trade

study

with

the

different periods.

ages,
carefullythat the figuresof the text, page 585, are percentwith
a
slight
The total values are
given below,
total values.

Note

difference of arrangement;
and
dollars,

decimal

and

imports

representing the relative

different continents
15.

Chart

or

Draw

be employed, making

inch, may

an

6j =100).

of dividers

use

color.

dashes

place of

are

each

unit

inserted when

of the figuresrepresents ten

the values

do not

unit.

(Units of

ten

million dollars.)

come

million

within

one

592

HISTORY

COMMERCE

OF

figures:the imports from Oceania in 1860

roughly three million dollars in value, in 1913, forty millions (the
were
$37,543,441).
precisefigure was
illustrate the

To

The

off

the

studying our

development

of

our

commercial

relations in the

with

commerce

different

tinents
con-

large sheets of paper, for the three different dates.

the largestfigures (Europe, 1913, 89 imports plus 148 exports)
three

take

Lay

be used in

figuresmay

following ways:
(a) To show

of the

use

scale at the top of

to a convenient

showing the total

that date.

with

commerce

one

sheet,and below it draw other lines

of the other

each

Distinguisheither imports

grand divisions

exports by the

or

use

the

at

of wavy
or
These

same
Prepare the other charts, using
while
the charts based
the growth of American
commerce,
figuresin the text show only changes in proportion.
importance of the continents
(ft)To show the relative commercial

dotted

lines.

scale.

charts will show

on

(excluding Oceania)

at

certain time,

in 1913, the

as

followingmethod

in equal squares,
sheet of paper
or
a
a
procure
may
the paper a map
of Europe
sheet of plottingpaper already ruled. Draw
on
will include as nearly as possible237
to such a scale that the land area

Rule

be adopted.

squares

but
error

the

is impracticable,
(89 imports plus 148 exports.) Exactness
result
the
should
make
experiments
sufficiently
accurate; an
is of littleimportance. Draw
of 10 or 20 squares
then the maps
of
few

other

continents

so

that

correspondingto its share in

each

our

contains

the

number

of squares
trade (North America, exclusive of U. S.,
one

98; Asia, 40; South

America, 37, etc.). The contrast between the

if other maps,
will be sufficiently
strikingeven
showing the
in their true proportions, are
not made
for comparison.

16.

Methods

the

commerce

information

is

tinents
con-

tinents
con-

similar to those already employed may

be used in studying
Full statistical
of the U. S. with separate countries.

comprised in the Reports

on

Commerce

and

Navigations.

BIBLIOGRAPHY
See

chapter li.
TOPICS

FOR

REVIEW

The

followingtopics are suggested for use in a general review of

commerce:
(a) historyof American shipping; (6)transportation
tion
by road,river,canal and lake; (c) transportationby railroad;(d) producand exchange of wheat and flour; (e) cotton; (/) animal products;
(g) textiles,
(cotton,wool, silk); (h) iron and steel; (i) other mineral
with European countries; (k) commerce
with
products; (j ) commerce
with the West Indies and South America; (m) history
Asia; (I) commerce
American

of American

seaports; (ri)tariff history.

PART

VI."

THE

WORLD

CHAPTER
COMMERCE

712.

AND

Commercial

the World

War

conditions
be

WORLD

antecedents

in the

as

of

1914-1918

WAR,
the

necessary

war.

To

"

picture

result of the

period immediately preceding

distortion of the facts.

LTV

THE

of 1914-18

WAR

The

to

recourse

is

arms

mercial
com-

would
tary
volun-

act, and this war, like others precedingit,would not have

taken placeif one
chosen to use
party to it had not consciously
force to
and

inevitable

hand,
so

obtain

there

what

it wanted.

result of economic

periods in

are

intense that it puts

one

or

War

another

which

strain

on

is

never

conditions.
commercial

international

On

necessary

the

other

competitionis
relations,
ing
tempt-

party in the struggleto further the interests

of its

nomic
people by threats of force or by force itself. The ecostrain is particularly
likelyto lead to rupture if the political
is
if
of
international
the
period
faulty,
politics
system
provide no effective way for the just settlement of differences,
and if national politics
fail to represent the interests of the
people as a whole but sacrifice these to the selfish interests of
Keen competition does not cause
a group.
petition
war, but keen comand
in combination
are
faulty politics
apt to do so.
713.
The
of war.
and the outbreak
dangerGermany
spot in the international situation before 1914 was
Germany.
That country had achieved extraordinary success
in its recent
due only
economic
was
development. Its progress, moreover,
"

in minor

degree

to

its endowment

of natural

resources;

proceeded from

the industrial virtues of the people, from

of
efficiency

and
organization,

the

593

from

it
the

the leadershipof scien-

594

The

tific experts.

proud,

be

reward

HISTORY

of their
had

which

OF

Germans

were

success.

They

world-trade,and

found

could

not

them.

They

the

and

proud,

accorded

been

their future.

however, about

COMMERCE

world

had

complain of the

They

had

troubled,

were

to

come

right to

depend

largelyunder

the

upon

political

It is true

control of rival states.

that in that very world they

prosperity; but the foundations of their

enjoyed abounding
prosperity appeared
ideas about
and

development

them

to

uncertain.

the power
to further

commercial

in central

Europe

quated
Inheriting anti-

of the state

to

guide economic

puted
interests,
they imcountries
other
to
the
politicaldesigns which
were
of thought. They saw
peculiarways
products of their own
in the high tariffs of the United
States and Russia, in the
union in the British Empire,
spread of the idea of a customs
influence in Morocco, so many
in the expansion of French
evidences of a plan of their rivals to hem them
in, and misuse
of their deserts. Should they not,
to rob them
political
power
too late,"break
before it was
establish
through the iron circle,"

great state

and

Mediterranean

the

was

merely

not

"

this

for

"

win

their

Gulf,take

with

accorded

politics"which
so

the Persian

extending down
the

conviction

"place in

own

of many

the

right path the civilization of the world

the prevalenceof ideas like these, given an

strong; given the old-fashioned

were

of international

rupture
714.

diplomacy, the

whole?

stress

was

and

outworn

system

irresistible and

the

came.

Direct costs of the

effects of the "World War

chapter and
some

as

antiquated
exaggeratedinfluence to dynastic
the forces impellingGermany
to

political
system that allowed
and
and militaryinterests,
war

Germans

rect
sun," but also di-

in the

Given

the

placein "worldeconomic
merits, and

their

sincere

to

of the

It will be

the
more

war.

For

"

will be

generationsto

working themselves

followingwill attempt
obvious

convenient

to

effects upon
have

of the costs of the war,

the

at hand

and

merely a
historyof

for reference

the table

come

out.
survey

the
This
of

commerce.
some

gives those

mates
estithat

596

are
necessarily,

the estimates

not recorded

HISTORY

OF

COMMERCE

of losses due

to

the

which

war

in the

in the

expendituresof governments.
Figures
idea of the nature
and
accompanying table give some

extent

of these indirect

were

costs.

INDIRECT

COSTS

(Figuresin

OP

WAR

THE

milliards

of dollars)

Money value of lives lost,military

Money value of lives lost,civilian

34

Property losses

30

on

34

land

Property losses at sea

Loss of productionby diversion of labor.
Voluntary

war

7
45

relief

Loss to neutrals

Total

Grand

153

total,direct and indirect

339

costs

of the items more

explanationwill make some
clear. Human
beingshave not, since the days of slavery,been
counted in a census
of national wealth,but they represent nevertheless
and the largin every country the heaviest investment
est
The figures
in the text are based on the
of income.
source
and
assumption of about 13 million deaths in militaryservice,
A few words

value

money

of

of the

individual

ranging from about $2,000

$5,000 (United States). The

(southernand eastern Europe) to

assumption that the war caused at least as heavy a loss in the
civil as in the military population is probably conservative.
The
loss due to the diversion of labor from
production is
tive
figuredon the basis of 20 million men, of an average produc-

capacityof $500
and

716.

country there is
war

business
the

scale.

year,

half years.
Effects of the

one

whose

world

The

small

of

group

down

into the

figureof twenty

from

commerce.

on

war

it is to tear
went

withdrawn

men

and

wrecking
million

men

industryfor
"

In

known

four

modern

wreckers,
destroy. During the
business

as

on

engaged

grand

in it is

an

COMMERCE

AND

THE

for the whole

average

double

that number

WORLD

under

We

arms.

of the effects of this situation

some

In

country that

every

and

imperative demand

trade,first of

the

have

engaged
than

he

had

used

up

clothes

an

been

used

always

was

shelter in all sorts

commerce.
war

there

immediate

was

for the tools of the

mediate
im-

an

wrecking

wrecker

was

more

food

the

road, requiringsubsistence and

out-of-the-wayplaces. War therefore

on

of

nearly
to study

and wasted
he
consume,
more;
and implements at an
appalling

to

shoes

and

war

now

all for guns and ammunition.

The
arduous
occupation; he demanded

in

rate; he

entered

on

597

1914-1918

the close of the

period; at

were

WAR,

serving these needs:

and the industries
chemical,metallurgical,
textile,
agricultural,
providing and operating the equipment of transportationon
put

an

strain

land

and

from

constructive

time

it intensified

sought by

the

On

water.

hand

other

war

withdrew

workers

industry,and restricted supply at the very

demand.
Every country at war, therefore,
of

means

the industries

on

to relieve the strain

commerce

on

its

own

importing needed suppliesfrom abroad; each group

belligerents
sought to prevent the other group from profiting

resources,
of

The

this process.

by

accompanied by

tendency

tendency

to

to

an

increase of

imports

was

A country

decline in exports.

in its

foreign
trade.
If it could supply its militarynecessities by paying
actual cash for its imports, or by promising to pay for them at
from
workers
export
future time, it could withdraw
some

at

could

war

not

afford to do

industries,
serving
serve

more

717.

the

needs

business

of

as

usual

and
foreigners,

pressing needs at home.

Commercial
position of the

Central

make

them

and

Powers

of

Germany and her allies, Austria-Hungary,

Bulgaria, Turkey, enjoyed a great military advantage of
the Central
which
the character is suggested by their name,
the

Entente.

Powers;
move

than

"

they had

interior lines of communication

their forces from

could

one

their opponents.
commercial

to

another

They

front much

would

have

advantage if they could

and
more

could

easily

responding
enjoyed a corhave brought

598
the
at

HISTORY

to

war

home

The

with

conclusion

acquired in

or

mobilize in

OF

one

powers

part

or

COMMERCE

stocks

of supplies accumulated

invaded

another

of the Entente,

on

which
territory,
they could
of their territory
as they pleased.
the other hand, desired in vain

exchange of the wheat of Russia for the guns and

of France
or
ammunition
England. In a long war, however,
to be effected not by stocks accumuin which the decision was
lated
tion
in the countries immediately engaged but by a mobilizaand activities of the whole
of the resources
world, the
at a critical disadvantage. They had
Powers
Central
were
immediately open to them only the territoryof small neutral
states (the Netherlands, Switzerland,the Scandinavian
states);
to effect

an

the path to

richer

control of the

sea

rested,from

in the hands

war,

718.

The

of

sources

war

the sea; and

the end of the

Entente.

against

commerce.

hundred

The

"

conditions

were

before,when England was

engaged in the desperate strugglewith Napoleon. In neither
scruple in departing from
period had the belligerents
any
The
Entente
established
principlesof International law.
It stopped the
{proposedto starve Germany into surrender.
the territoryof neutral states by
outlets of Germany
across
in substance
amounted
to a rationing of the
edict* which
people of those states; these people might have enough food,
immediate
fodder, cotton, etc., for their own
needs, but no
Germany
surplus that they might transfer to Germany.
much

like those of

of the

supply lay across

the beginning to

protestedagainst this

years

infraction

principleof freedom
of the seas, and retaliated by proclaiminga war
about the
zone
British islands,within which
German
submarines
ruthlessly
destroyed the merchant
shippingon which England depended
for her supply of food.
These measures
either side,took
on
The
of the
measures
shape in the early years of the war.
Powers
Entente
effective in sealing the Central
from
were
commercial

intercourse

policyfailed.

with

It remained

in the latter part of the

a
war

of the

the outside
menace,

when

world.

which
the

grew

danger

to

The
more

German
serious

England

was

COMMERCE

AND

THE

WORLD

WAR,

599

1914-1918

real,but in its moral influence,

instead of breaking the
spiritof the English,it did much to rouse
the spiritof neutral

very

countries.
United

719.
in the

the

on

bringing the
The

war

on

destruction
than

more

The

the occasion

States

factor in

to

As

one

figuresin

for the entry into the

side of the
conflict to

Entente

it

was

of the

war
a

decisive

conclusion.

shipping. The
action
by enemy

war

"

of

shippingresulted
tonnage amounting

on
a

quarter of the world's total tonnage in 1914.

the

followingtable indicate the extent and

distribution of the losses,and show
at the same
time how
rapidlythey were
repaired by the construction of new
ships.
Changes in the relative standing of the different countries
affected also by another
were
bution
factor,namely by the distriother countries of ships of the Central Powers,
among
taken during and after the war.
Germany was second in rank
maritime
nations in 1914, with a tonnage of 5.5 million;
among
in 1920 its tonnage had been reduced
to less than
1 million,
almost entirelyby forced transfer.
(Figuresin

U.S.

The

millions

figuresof the table, quoted

Department

of Commerce,

official figures. It should

1920,

be noted

of gross tons)

from
p.

Lloyd's Register

170,

employed

in

Report

slightlyfrom

U.S.

that the gross tonnage of American

less: 1.0 million in 1914,
very much

foreign trade was

9.9 million in 1920, according to officialfigures.
vessels

differ

in

600

HISTORY

720.

of the

Influence

to the

peculiarcast

comm

prevailedin

the earlier
reference

which
the

be

can

history of
The

strain every

issue of paper
the case
with

gold

these

its

meet

total of 110

from

those

that

it

had

of such

were

omitted

in the

practical

altogether.
had, of course,

war

country

for their necessary

they all adopted was

which
us

consider,to

which

had

to

penditures.
ex-

the

illustrate the matter,

been

doing

business

of say 100, using that figureto express

of million francs, marks, dollars or other unit.

government
to

left behind

get the funds

Let

and

"

currency

number

If the

to

money.

of

be

cannot

expedient

An

which

but

involved

resource

World

money.
War
gave

These
results of the
period of peace.
to questionsof currency
and foreignexchange
treated only superficially
in a book
on

they

governments

of paper

period

different

very

commerce,

importance that

issue

of the

rce

conditions

involve

the

Naturally, the

commercial

war

COMMERCE

on

war

is itself abnormal.

War

the

OF

printed 10

now

extraordinary

in circulation.

of paper

expenses,

Price

wyould

there
rise

used

and

money

would

be

roughly to

respond;
cor-

is,the unit would buy less than before. The

in other
gold unit would, however, be worth roughly as much
countries as it was
before, and would be sent abroad to make
purchases,instead of being used at home where its purchasing
was
diluted,as it were, by the issue of the paper units.
power
that

After

of

periodof readjustment 10

the currency

would

have

returned

gold would

have

its former

to

gone

level.

out;
The

gain of 10, for the paper money

cost practicallynothing to print. Has
anybody lost? No;
circulates readily at home, and does
not if the paper
money
the work which an equal amount
of gold money
had formerly
done. The country has simply "realized" part of its gold stock,
and selling
the
using a cheap substitute for money
purposes,
dear gold to other people who were
glad to exchange products
government

has

made

net

for it.
721.

Effect upon
the
of the war

the flow

of

gold.

"

From

the very

governments of the European

states

ning
beginprac*

COMMERCE

AND

THE

WORLD

tised this expedient, paying out

WAR,

paper

601

1914-1918

and

money

gettingin

for it the

goods and services which they needed for

military operations. Gold went out of circulation and was
The government
did not choose, however,
replacedby paper.
to let private individuals profitby the exchange of this gold
with people abroad.
By an appeal to patriotism and by the
threat of penalties each government
sought to bring into its
*
own
treasury the gold which had been in the pockets and in
return

the

as

cash-boxes

The

It

people.

opened the

well by locking up
of its paper
as
It cherished the
sending it abroad.

by

asset:

of its

way

for the circulation

gold in its vaults

gold as a precious

in time of need.
sign of solvency and a ready resource
of the belligerentsincreased conof some
siderably
gold reserves
a

in the
GOLD

of the

course

RESERVES

war.

EUROPEAN

OP

(Figures in

millions

BELLIGERENTS

of dollars)
1913

1918

~170

~528

France

679

664

Italy
Germany
Austria-Hungary

288

244

279

539

251

53

Kingdom

United

not in active
implies,were
gold reserves, as the name
It
circulation.
Gold
passed entirely out of circulation.

These

flowed

into

the

part of it

treasury, and

was

retained

there.

largerpart flowed through the treasury, and was employed

Some
by the government in purchase of war material abroad.
in
part of this outflow from the belligerentstates remained
The

Europe; Spain and

the Netherlands

the

increase

war

the

notable

greater part of

of it

going

going

to

I do

to

the Far

the

United

East

pretend
exposition.
not

the

and
to

in their

gold

left

showed

South

course

of

gold holdings. By far

Europe altogether,most

States, very
to

in the

considerable amounts

America.

mentary
recognize technical distinctions in this ele-

602

HISTORY

722.
Let

assumed

COMMERCE

of paper money;
to a consideration

Over-issue
return

us

OF

now

worldwide
of the

inflation.
which

case

"

was

If we supworking of paper money.

pose
the government issues 10 units,20 units,and so on up to
100 units we
in each case
that a corresponding
assume
may
of gold is driven out of circulation,
to be impounded
amount
in the treasury or sent abroad; in either event
the number
of
units

to illustrate the

in circulation

the

price level remain

Suppose the issue of

before.

has

money

value

no

it in the treasury.

except

and

as

of

means

reissue it when

abroad.
The

it

The

would

purchasingservices
back

of taxes, else it would

to the

half

inflation.

The

paper
as

would

need

to

be

to

it would

issued it

and
supplies,

be left then double

before.

as

government
but

money,

before

much

as

have

keep
must

treasury in the payment

of units in circulation;priceswould

buy only

paper

will not

not

as

all its advantages in the collection

renounce

There

or

same

The

100.

government

government

comes

of the tax.

additional

an

the

the unit would

Depreciation would follow

gain still by the issue of

would
have

double;

the number

to issue twice

as

units

many

the dose would

given purchasing power;
constantly increased to produce a given effect.

get

would get its gain

on
Furthermore, the government from now
of its,people. Its gain would
be offset
only at the expense
all along the line by the losses of individuals who would receive
for their services and products perhaps a greater number
of
a smaller actual purchasingpower.
monetary units but certainly
Not

even

the neutral

countries

could

escape

the effects of

the issue of paper money

Even
by the belligerents.
remained
on
a gold basis they had
now
so
many
driven

out

from

the

countries,that
belligerent

itself

depreciated. The

world

and

723.

resulted in

when
more

the

gold unit

dilution of currency
spread
world-wide
inflation.

Statistics of currency

inflation and

they
units,

over

of prices.
"

the

I have

described

conditions,in preceding sections,in an artificially

elements
that would
simple form, and have neglected many
have

to be included

if there

were

space

for

more

preciseand

604

HISTORY

OF

COMMERCE

of

The
exchange on the gold standard.
nifica
sigbe most
of the change can
readilyappreciated if we
consider a simple case, say that of an English spinner who buys
725.

raw

Par

cotton

"

in the United

States.

The

American

wants

dollars;

pounds sterlingto offer. It does not

unit the bargain is expressed,whether
the
in which
matter
American
gets the right to draw an order on the Englishman
for so many
pounds sterlingand sells this to a bank for dollars,
and the Englishthe priceis fixed at so many
dollars,
man
or whether
with his
makes
payment by buying a bill for that amount
pounds sterling.In either event one party to the bargainmust
the

Englishman

has

deal in the monetary

unit of the other.

Under

the old system

perfectlydefinite weights of gold. A merchant

he had to pay
to
or
limits,how much
knew, within narrow
receive. The gold in "1,000 was
equal to the gold in $4,866.
when
the pound
York
at par in New
Sterlingexchange was
was
quoted at 4.866. Exchange could not vary far from par,
for the cost of shippingthe gold itself was
only about two cents
and the gold of either country was
perfectly
per pound sterling,
acceptablein the other.
726. Foreign exchange on
standard.
Consider
a
paper
culation
the situation after England has driven gold out of cirnow
The pound sterling
by the over-issue of paper money.
has become
the value stands in no
a "paper pound," of which
fixed relation to a definite weight of gold,but is determined
by
set of factors,
a new
particularly
by the condition of the English
treasury and the prospect of an expansion or contraction of
The American
the paper currency.
no
can
longer count with
both

units

were

"

any

assurance

on

the value

to him

in dollars of

sum

due

him

in

pounds sterlingthree months hence; the Englishman is no

he
pounds sterling
longerin a positionto calculate how many
will need

to

pay

debt

contracted

in

dollars.

The

rate

of

exchange,instead of being fixed close to 4.866,may go down to

there is no limit to its depressionor to the
4.50,4.00, 3.00
sharpness of its fluctuations. The student should note particularly
elements which are
two
important in an analysisof
"

AND

COMMERCE

WORLD

THE

WAR,

605

1914-1918

First,international transactions involve a considerable

time interval,say three months, within which events
that will make
occur
sweeping changes in rates. Second,
may
of paper
at home, where
the purchasing power
prices
money
affected
does
fixed by contract or
not change in
are
by custom,
the situation.

with

accordance

the

rate

at

which

it is estimated

in

foreign

"

mining
exchange. As a result there is a "spread in the factors deterprofitor loss in international transactions which makes
and makes
its flow fitful
foreign trade extremely speculative,
and

irregular.
TOPICS

AND.

QUESTIONS

constitution. [W. H.
political
Dangers arisingfrom the German
with Germany?, London, 1915; Veblen, Imperial
Dawson, What is wrong
Germany, Chap. 5.]
[H.
2. "German
industry considered as a factor making for war."
Germany, London, 1915, a pamphlet of 33 pages.]
Hauser, Economic
in the war.
man
[Snow and Krai, Geraims of Germany
3. Commercial
1.

the war,

trade and

do you

How

4.

Entente

by the

family? [Tabulate

cost

of government
exertion, diminished

of the

fell upon

war

Estimate

bonds?

"real"

individual

your

costs

war

Powers?

Who

taxes, contributions,losses.

under

costs

money

those of the Central

double

than

more

bears the cost

of extra

11-14.]

pp.

explainthe fact that the direct expenditures for

portion of the

What

5.

were

Washington, 1918,

in the form

consumption, decline hi purchasing power

family income.]
[Ogg, National progress,
question of neutral rights,1914-1916.
chap. 18; Paxson, Recent history of U. S., chap. 44.]
conflict departed
that both partiesto the European
7. Assuming
did the United
from established principlesof international law, why
of the
6.

The

States choose
8.

What

Have
was

the side of the Entente?

previouswars led to the issue and over-issue of paper money?

the experienceof the United States in the Revolution; in the

Civil War?
9.

rise of

Did

your

prices?

family gain or lose by the inflation of

Does

the country

as

whole

gam

currency

lose

or

and

by these

the

ments?
move-

BIBLIOGRAPHY

Whelpley, The trade of the world,

of the more
popularlywritten,of the commerce

James

states

D.

just before the outbreak

of the

war.

count,
Y., 1913, is an acimportant European

N.

General

histories of the

war

606

the

attention

incidental

give

of

topic
Of

the

in

the

work

Endowment

World

the

great
The

into

the

wealth

upon

topics

of

great

material

Annalist,
financial
National
his

time

foreign
Taussig,
deserves

of
a

Federal

the

papers,

City,

Guaranty

by

careful

exchange,
**

Principles

particular

9,

in

and

foreign

is

1920.

of

the
of

are

recommendation.

Times,

in
2

3d

of

student
On

1920,

and

International

will

of

ed.,

see

The

the

money

Y.,

other

Reserve,
best

economics.
N.

discussion

besides

paper

the

Secretariat

(Federal

manuals

vol.,

of

monthly),
and,

of

the

and

student

principles

present

sources.

Brussels

banks

ordinary

the

presented

economics,

Y.

studies

the

London,

facts

York

New

lead

by

and

Influence

usual

(Washington,

N.

The
of

the

current

careful

Smith,

war,

of

reports

Board

Trust).
review

the

Carnegie

costs

his

fact.

Press,

indirect

presented

the

after

of

the

important

exchange

Foreign

matters

for

Russell

from

apart

For

bulletins

of

1919.

of

for

and

J.

Y.,

quite

Reserve

they

as

and

Currencies

publication

weekly

Direct

N.

Bureau

comprise

most

many
Ger-

ful;
thought-

University

Peace,

ter
Chap-

most

for

Oxford

compilation

comprised
of

war,

Bogart,

prices,

Nations,
is

the

only

Imperial

the

published

the

no.

is

report,

the

by

under

Veblen,

useful

65,

the

which

literature

Conference

Financial

1919,

convenient

of

League
of

Bulletin

fact

L.

money,

of

of

field,

shipping,

mass

of

questions
of

war

fully

treat

given

1915,

Carnegie

heading

Y.,

N.

War,

above,

no.

of

Peace

Ernest

24,

no.

are

great

studies

the

Germany,

government

Series

Misc.

the

of

parts

purposes

and

under

of

London,

is

Krai

International

hereafter

but

commerce,

Topics

revolution,

economic
for

various

and

Questions

Commerce,

Preliminary

cited

on

Snow

by

of

course

responsibility

the

industrial

Domestic

and

the

COMMERCE

activity.

the

the

and

OF

to

submarine

references

and

XL

in

HISTORY

employ
and
F.

1921-1922,

of
W.

CHAPTER
UNITED

THE

727.
the

KINGDOM,

1914-1920

Statistics of

English trade, 1913-1919.

Statistics of
of the United
Kingdom in the war
period

general trade

given in
showing the

"

the

followingtable,to which is added a

value of the imports of merchandise
excess
value of the import (I),or
showing the excess

are

column

(E),of

column
and

export

gold.
(Figures in

LV

Figures of gold
is lacking.

millions

of pounds sterling.)

for 1917

movement

and

1918

are

unofficial;figure

for 1919

728.

Interpretationof
in the

period are
points particularly
should, be
war

figures. (1) The

statistics.

the

inaccurate,and
necessarily

statistics omitted

the

facts.

The

be

much

correction

an

the

607

merce
com-

two

analyzing these

trade in ment-owned
governof
movement
chandise
mer-

immense

actual

larger to give
would

in

in mind

borne

goods; figures of
should

Statistics of

"

an

accurate

idea

apply particularlyto

of
the

608

of the war,

earlier years

exports.*
(2) Prices
in 1919
The

of 1913.

of

volume

HISTORY

OF

and

COMMERCE

would

affect

imports

than

more

risingrapidly,with the inflation of the currency;

the prices
they were about two-and-one-half-fold
correction to be applied,to ascertain the physical
were

trade, would

affect both

imports and

exports.

of the United

not
Kingdom, if measured
of physical
in paper values or in gold values but in quantities
The
most
shrinkage was
goods, declined during the war.
colonial merchandise.
marked
in re-exports, of foreign and
of the business that they had
most
The Englishhad to renounce
been used to transact
as
middlemen, distributing
through the

Clearlythe

trade

July, 1917, and thereafter the

imported and exported in publicas well
In

for the

use

as

of British troops in the

figuresof exports included

a

accounts

field.

included

all articles of food.

from

the facts may

from

the United

for the

same

be got

States

calendar

year

Before

the

except that they

idea of the divergence of the

by comparing
to

but omitted

figuresof imports omitted

of allied governments,

Some

United

the American

Kingdom

of imports from

ports
ex-

July, 1917, the

property of the allied governments,

of the British and

merchandise

privateownership, except

large part of that of the British government;

property both

included

with

the United

would
Normally the British figures of imports, c.i.f.,

figures

statistics of exports

British statistics
States.

exceed

ican
the Amer-

The divergence in
figures of exports, f.o.b.,as they did in 1913.
ciently
the opposite direction of the two sets of figuresin following years is suffiif
the pound sterlingisrated at $5.
strikingeven

THE

world

UNITED

the goods of other

exports also declined

returned

they

actual

at

have

values

to half
seriously,

find

rise in value

indicates

we

favored

perhaps increased in amount.

should anticipate. "Business
as
by the private merchant, but one

less.

or

Only

that

keeps pace
goods that persisted

flow of

and
what

of domestic

the war, and though

their former level,the volume
of

we

the rise in prices,and

The

beginningof

shrunk

of imports do

case

the

609

1914-1920

countries.

later to about
must

wares

in the
with

KINGDOM,

These

results

usual"

is

are

motto

which

spellsruin
To make
for a people engaged in war.
war
effectively
they must
abandon
their usual employments, turn
their regular
away
customers, seek from outsiders only the things that offer a
militaryadvantage, but seek all that they can get of those
things.
729. Problem
of acquiring and of paying for the imports.
The most
serious problem for England was
to get the goods
infested by submarines, in ships that had conacross
sea
a
stantly
to be renewed, through terminals
choked
traordinary
by an ex-

"

congestion of traffic. This was the vital problem,

which strained the energiesboth of the militaryand industrial
forces of the country, but which
by their cooperation was
solved.
A problem of secondary importance at the time, but
that of paying for the goods.
important always, was
of
England had long been used to import goods in excess
value
those exported. The figuresfor 1913, "134 million excess
of imports

exports, may

over

be

taken

as

normal

measure

Let the reader,

period of peace.
of imports
however, glance down the column givingthe excess
than
to more
in the years
following,amounting 1914-1918
"2,000 million,and he will appreciatethe magnitude of the
problem involved.
of conditions

730.

payment

in the recent

Details

of the

is indicated
"200

method

of

payment.

"

in the table,in the column

million of

gold were

exported (inexcess

The
in the three years 1915-1917.
and particularly
in 1918 England was

One

mode

of

ments.
gold shipof imports)

of

fact that in the year 1914

able to add to the govern-

610

HISTORY

cial
strikingevidence of the country's finanof gold exported, 1914-1918,
net excess

gold reserve
strength. The
amounted
only to
toward

Reference
other

sums

the

which

million,and

of merchandise

excess

chapter (section 448)

the country had

at its

little

imported.

will

indicate

disposal. British

ceived
refreightfor foreignersduring the war
ships were
pressed
extraordinarily
high rates, but many
were
lost,and considerable
service,many
government
had to be paid to neutral carriers. Net earningson shipping
the level of the periodbefore
could hardly have maintained
estimate they are
credited with a
although in one
war,

contribution,1914-1918, of "600
ideal

resource,
to

but

went

carried

ships which
into

for the

earlier

an

resources

"120

about

payment
to

COMMERCE

is

merit's

way

OF

than

more

as

The

that

in 1914

to

England

"4,000 million

from

returns

"

was

made

had

made

in other
to have

the total adverse

twice

been

"mobilized

arrangement
government
or

"

under

which

the

of

balance

have

Actually they

earlyin the war, by

holders
exchanged them

the government

bonds; they were then used as

sold outright. Estimates
were

foreigninvestments

amounted

would

in the

by

countries.

kept intact the annual

1914-1918
five years
to nearly half of the bill to be met.

amounted

them

considerable

more

adequate in amount
it,lay in the
upon

is estimated

imports. If they had

merchandise

abroad

that

and

asset

of these investments

sum

were

"liquid"

demand

any

investments

vast

million.

thus

sold vary from

borrowed
government

an

for

collateral for loans

of the

"500

to

amount

of

lion.
"1,000 milover
"1,000

abroad
Finally the
which
for the merchandise
million; that is,it paid the foreigner
he had shipped by getting another
foreignerto advance the
to

money

The
but

abroad
She

figuresgiven above
at the minimum

even

above

him.
are

they

in most

cases

amount

to

rough estimates,
total considerably

quired.
re"2,000 million which was suggested as the sum
In fact,England was
herself lending large amounts
herself borrowing.
in the very period in which she was

the

found

it necessary

to

support

some

of her dominions

and

612

HISTORY

making,
imports

and

was

those

OF

showed

items

in the

recorded

not

COMMERCE

the most

statistics.
marked

Among

increase

the

which

primary needs of subsistence (rice,wheat flour,

bacon
and hams, cheese,milk, cocoa, etc.),or were
directly
available for militaryuse
and
(fueloil,gasoline,copper, arms
ammunition, chemicals,etc.).
The war
732. Sources of imports.
entailed changes even
in the direction of English trade than in the
more
sweeping
items composing it. Among the countries of the world Germany
had an importance second only to that of the United
States
of imports into the United Kingdom.
If to Germany
as a source
be added the other Central Powers, and Belgium, of which all
but a small fragment was
soon
cut
occupied,a territorywas
one-sixth of the imports
out which in 1913 had furnished over
for consumption in the United Kingdom.
The followingtable
indicates how
these losses were
made
good, and where the
additional supplieswere
demanded.
procured which the war
served

the

"

PERCENTAGE

The

Empire

extent

is the

OF

VALUE

to which
more

OF

IMPORTS

England

remarkable

FOR

CONSUMPTION

satisfied her

because

needs, within

of the distance of

the

some

which
put an additional
important possessions,
strain on
shipping that already had to do double duty.*
Most
striking,however, of any feature of the table,is the
positionof extraordinary importance it gives to the United
States,to be explained by the fact that this country was relof the

most

tion
In 1915 Egypt was
changed in the British classificationfrom the posiof British Possession.
of foreign country to that
Imports from
in 1913
"16,000,000 and increased rapidlytoward the end of
Egypt were
the war, to "5,000,000 in 1918.
*

THE

ativelynear,
the

credited

abundance

an

the

and

1917

years

613

1914-1920

inclined to the Entente

was

In

war.

KINGDOM,

blessed with

was

required,and

UNITED

of the commodities
before it entered

even

the

1918

United

States

is

with

having "furnished from 50 to 95 per cent of the

United
Kingdom's total imports of wheat, wheat flour,corn,
oats, barley, bacon, hams, glucose,kerosene, motor
spirits,
fuel
iron
and
crude
oil,pig
lubricatingoil,
steel,raw copper,
spelter,raw
cotton, tobacco, etc."
for exports.

Markets

733.

is in

general more

sources

from

reversed

which

in time

Central

exports of

of the

closingof

this market

the time.

The

diminished

so

flow

of

volume
much

goods

One

that

country

France

SPECIAL

The
the

have

is

already been

and

Powers

that there

United

The

effected

war

from

that

reasons

condition

Belgium took 13 per

the United
Kingdom in 1913, but the
of relatively
at
was
slightconsequence
of British products available for export

country, France,

general rule.
The

for

The

were

few

markets

to which

the

to the United
Exports even
in spite of the phenomenal increase

barely held their own,

of imports from this country.

States

from

of peace a country
for its exports than in

in markets

maintained.

was

times

supply its imports.

to

of war,

The

suggested.
cent

interested

In

"

an

more

outstanding exception to the

Kingdom had been used to import
it exported thither.
in value than

was

an

abrupt reversal of the situation;imports

declined,exports

TRADE

OF

UNITED

of
interpretation

battlefield

on

thither

KINGDOM

these

the western

WITH

increased

FRANCE,

enormously.
1913-1919.

changes is simple. France was

British exports thither
front.

HISTORY

OF

COMMERCE

destined to relieve
suppliesfor the front,or were
labor and
Toward
products for military service.*
France
of the war
was
taking about two-thirds of the

either

"were

Prench
end

the

total British export of iron and

By

concentration

here the

was

war

of

in various

and

in the British Possessions

which

to turn

which

the markets

was

war

she had

had

was

lecting
neg-

countries

United

them

of the Far

States

from

East

many
Gerforced

were

serious of the

of the most

period followingthe

the

The

the

formerly reached

had

One

Japan.

to

to

turn

to

the countries

England;

or

pictured

as

parts of the world, both

foreigncountries.

forced

were

for manufactures

energiessuch

Meanwhile, however, England

won.

America

and

resources

her old customers

.of South

steel manufactures.

problems of

the recovery
of
to sacrifice in the stress of the
to

England

conflict.
734.

Effects

the influence

of the

of the countries
revolution

in

of the

conditions.

The

war

forces; the countries

they were

is

course,

before 1914.

"

War

on

follow

To

the internal

out

organization

A
the scope of this book.
that described in the last few

beyond

such

commerce

agriculture.

on

World

engaged

of
reflected,

pages

war

as

in internal

correspondingchange

dissolved

old traditions

engaged in it will
There

is space

here

never

and
be

only to

loosed

new

again what

sketch

briefly

few of the

changes.
The
for food, when
imperative demand
incoming cargoes
were
constantly being sunk before they reached port, put on
British agriculturea strain which was
felt more
keenly because
a

of

the

into
laborers drawn
large proportion of agricultural
militaryservice. One result which promised to have a lasting
the introduction of improved mechanical
effect was
equipment,
the modern
The heavy taxes on the owners
tractor.
particularly
*

These

government

figures of exports omitted, before July, 1917,

property, and

even

British troops in the field. The

inclusion of these items would

impressivethe concentration
England.

more

most

after that date government

in France

of the

flow of

British

suppliesfor
make

even

goods from

UNITED

THE

of

been

held

and

laws

were

businesslike

as

social rather than

issue of these

Effects

It

It

hazardous

more

of
of

predict the

to

In

"

the

more

manufacturing industry the changes were

the permanence

of their effect appears

control was
general and

Government

heavy-handed, and

was

attended

by much

accumulate

and

and

ruthless

it

be

industrial organization.

on

certain.

more

was

investment;

to further the growth

particularly
deeply rooted,however, are the traditions

likewise sweeping and

despotic.

economic

changes.

important field of
be

an

of land which

areas

basis,and

English rural life that it would

to

great

passed designed 'to put agricultureon

small holdings. So

735.

615

1914-1920

forced into the market

largeestates

had

KINGDOM,

friction and

disseminate

the

often

was

It did at least

waste.

best

ineffective.

technical

information

in

scrappingantiquated equipment. It
stimulated original
and constructive thought,if only by reaction
manufacturers
against its own
escaped
arbitraryrules. When
from
it at the close of the war
they had already learned
was

much

about

them,

and

their
in

were

business
the

that

way

of

was

and

new

learningmore

valuable

by

their

to
own

initiative.

English,like other peoples,had depended very largely

Germany for syntheticdyes; that is,those dyes which are
The

on

manufactured
which
the

have

laboratory by chemical process 3s, and

from
of the natural coloringmatters
driven most
in

the

field of industry.

suffered

for this

After

dependence

the
on

outbreak
two

of the

accounts;

war

they

first in their

textile industry by the lack of dyes of good qualityand of the

variety,second in the field of military operationsby
requisite
the

of
superiority

to which

the Germans

the plant of

dye

factories is well

of

explosives,
adapted. Early in

in the manufacture

formed
in 1915, "British Dyes, Limited" was
the war, therefore,
with the encouragement and financial support of the ment.
governThis

was

combination

of manufacturers

using dyes,

designed to organize the production of syntheticdye-stuffs

by the most advanced methods and with a liberal provisionfor

616

scientific research.

HISTORY

This

OF

company

COMMERCE

did not

drive from

the field

individual

producers,who actuallymade great progress during

It is significant,
the war.
however, of a tendency toward combination,
which had been less marked
in England than in Germany
in the United
or
States,and which had hampered the
control
English in competitionwith their rivals. Government
during the war
greatly facilitated the movement, which appeared
in other industries and promised to break
down
the
separatism of the old-fashioned English manufacturers.
736. Effects on mercantile and financial organization. In
the broader
fields of marketing and finance the English took
stock of their deficiencies and set to work
to remedy them.
There
toward
was
a
noteworthy movement
amalgamation in
the banking business,reducing the number
of competing units
effective the resultinginstitutions.
and making more
ularly
Particthe organization under
significantwas
royal charter
of the British Trade
Corporation, with an Authorized capital
of "10 million. This company
was
actuallya bank, much like
the great German
banks
of the period before the war, but it
meant
to offer
not officially
was
so
styled,because it was
"

services

which

had

not

been

characteristic

of

conservative

Englishbanking.
"It

will not

endeavour

to

compete

with

the

business

of

existingBritish banks and merchants, and it will not accept

deposits at call or short notice,except from parties who are
facilities. Its aim will
proposing to make use of its overseas
tions
be to assist with the co-operationof banks and other instituthe inceptionof new
undertakings,and for this purpose
it will promote the formation
of syndicatesand the placing of
for overissues. When
British capitalis raised by its means
seas
that orders in connection
it will seek to secure
enterprises,
with new
undertakings are placed in this country. It will
schemes, and for this
pay specialattention to the study of new
Bureau
with representait will develop an Information
tives
purpose
which will keep in touch with the Department of
abroad
of the Board
of Trade.
It will also
Commercial
Intelligence

THE

be

ready

better

Effects

demand

labor.

on

for

of laborers from
service
most

which

in

war

some

for promoting

arrangements

"

In

the

world

of

labor,as in the
wrought far-reaching
changes. The

in the field necessitated

men

the withdrawal

the very time when the demand

support the military establishment

to

There

urgent.

to

industryat

home

at

617

1914-1920

organisation of British industries."

sphere of leaders,the
sudden

KINGDOM,

give financial assistance

to

the
737.

UNITED

cases

followed

strain

allowed

was

for
was

the forces of labor

on

the

to over-tax

capacityof

the

worker, not only to his own

personal injury but also to the
the laborer,
disadvantage of the public; while in some
cases
in patriotism and thrift,
not properly educated
exploited the
situation to extort high wages
which he spent extravagantly.
In the course
of time these extremes
evened out, but they
were
illustrate the
and

structure

the end

which

permeated the whole

industrial

persistedin one form or another until

There was
a great "dilution
necessarily
"

of the

of skilled

which

stresses

war.

labor,with

the labor of

and

women

of unskilled

men

and

the strict
youths. Trade unions for a time renounced
time they extended
while at the same
applicationof their rules,
greatlytheir membership. Conflict with employers was postponed,

general,during the

in

burden

absolute

only
which

thrown

was

employer
a

had

can

industrial

an

of labor

effect upon
738.

revolution

Russian

the

war

came

feeling

share

that the
and

appears

the

of the

capitalisttoo

nearly

to have

had

spread of these doctrines,

the natural
With

democracy.

conflicts

undue

an

returns

to

long continued,had

was

product of

ditions
con-

war

the close of the

war

mining
head, and one in coalserious
a
particularly

industry in general.

Control

government
was

of the

share

slightinfluence on
fairlybe considered

which

it

The

that

But

war.

worker, and

very

number

in the

the

upon

undue

an

control.

in
a

of labor

strong in the ranks

grew

of the

course

of

commerce

and

the trade of the United

under

obviously

strict control.
proper

to

assure

policy.

commercial

Kingdom

"

was

In the emergency

the

priorityof

Early

placedby
of the
national

the
war

over

618

HISTORY

COMMERCE

OF

and the shortage of ships made

privateinterests,
regulation
wares
was
doubly important. The importation of some
hibited
prorestricted to a definite
was
wares
outright,of some
allowed under government license.
wares
was
quantity,of some
to keep the needed
Similarlyexports were placedunder control,
stocks at home, and to make
that enemy
did not
sure
powers
All these measures
had
a
profitby British trade.
military
with regard to the traditional
object,and had no significance
policyof free trade. In the second war budget,however,taking
effect in
include

1915, the list of dutiable

some

manufactured

wares

extended
to
imports was
(cinema films,clocks and

musical
watches, motor
instruments),which were
cars, and
subjectedin generalto an import duty of 33^ %. The measure
was
designed to give revenue, not protection,and it had little
practicalimportance; the importationof most of these articles
was
soon
ciples
absolutelyprohibited.As a departurefrom the printhat had been followed in the precedinghalf century it
had considerable significance.
attached also to the
Significance
preferential
rates,
arrangement in a later budget by which
usuallytwo-thirds or five-sixths of the full rate,were established
of the articles subject to duty, and an
most
on
opportunity
was

thus afforded to make

for the

preferenceswhich

739.
An

Report

Economic

of

some

return

they

had

Committee

the

Conference

to the British dominions

long allowed.
on

of the

Allies

Commercial
was

Policy.
"

held

discussed
the commercial
1916, at which was
pursued by the allied powers at the close of the

at

Paris

policy
war.

be

to

The

in

ference
con-

into*
probably designed to frightenthe Germans
making peace, and had no practicalresults of importance.
It did, however, bring to the attention of the English the
questions of policy which they must face, and occasioned the
was

appointment

of

Policy after

the

Committee

War, includinga

influential

members, which

substance

of the report

The

committee

Commercial

on

made

was

condemned

as

number

and
of

Industrial

prominent

its final report in 1918.

and
The

follows.
the

a
plan of establishing

com-

620

HISTORY

AND

QUESTIONS
Chart

1.

the

COMMERCE

OF

statistics of British

TOPICS

trade, 1913-1919, continuing if

practicablethe graph previously constructed.

Immediate

2.

oversea

in

The

in

war

on

the

course

of British trade.

ish
[Brit-

time, Quarterly Rev., Jan. 1915, 223:

time,Polit. Quarterly,1916, no. 7, 99-121.]

commerce

265; Trade
3.

effects of the

war

balance

252-

war

of trade

in

"H. J. Jennings in Fortnightly

1916.

Rev., 1917, 107: 302-312.]

In what

4.

way

by the United

did each of the imports in the list of those

supplied

States contribute to maintain

militaryefficiency?
5. Effects of the war
on
agriculture. [J. B. Firth in Fortnightly
Rev., 1917, 107: 595-605; A. W. Ashby, in Edinburgh Review, 1917,
225: 343-363; H. Wyatt, Development of the agricultural
terly
motor, Quar-

194 ff.]
Rev., 1917, 227:
in Quarterly Rev., 1917,
6. Agriculturalpolicy. [L. Smith Gordon
227:
178 ff.; F. D. Acland in Contemp. Rev., May, 1917, HI:
570-578;
in
107:
100
E. Lipson
Fortn. Rev., 1917,
ff.]
in the war.
7. Industrial efficiency
[A. Shadwell in Edinb. Rev.,Jan.
1915,221 : 151-177; B. S. Rowntree, Nineteenth Cent., 1917, 81: 399-412.]
8. The British Trade
Corporation. [H. J. Jennings in Fortn. Rev.,
1916, 106: 841-851; R. H. I. Palgrave in Quart. Rev., Jan., 1918, 229:

143-153; C. S. Addis in Edinb. Rev., July, 1918, 228: 43-58.]

9. The labor movement
[G. D. H. Cole in Amer.
during the war.
Econ. Rev., Sept., 1918, 8: 485-505; J. A. Hobson
in Contemp. Rev.,
in Contemp. Rev., Oct.,1917,
Nov., 1920, 118: 638-645; R. S. Rowntree
112:

368-379.]
10.

Railroads

in and after the

J. H.

80:

[E. A. Pratt in Nineteenth

war.

Balfour-Browne

398-410;
1916,
619-636; Edinb. Rev., Jan., 1917, 225:
National Rev., 1919-20, 74: 256 ff.]
11. Shipping at the close of the war.

83:

in

Cent.,
Cent.,.1918,

Nineteenth

84-103;

W.

[J. Hilton

M.

Acworth

in

in Edinb.

Rev.,
Century,
Apr. 1918,
1918, 84:
359-382;
471-488;
1116-1129; C. Maughan in Quart. Rev., Oct., 1919, 232:
A. Hurd in Fortn. Rev., 1920, 113: 584-597.]
of 1916, regardingtrade policy
12. Proposalsof the Paris Conference
S. Brooks

227:

in Nineteenth

Rev., July, 1916, 224: 189-208; J. A. R.

Marriott in Nineteenth
Century, 1916, 80: 1097-1112.]
Commercial
13. Report of the Committee
on
Policy. [Beauchamp
L.
J.
Reid in same,
in Contemp. Rev., May, 1917, 111:
July,
545-552;
after the

1918,

[H. Cox

war.

114:

in Edinb.

35-40.]
policyat the close of the

14. Tariff

Apr. 1917, 225:

to

war.

379-408, and Oct., 1918, 228:

contemporary

opinion.]

[H. Cox
387

in Edinb.

with
ff.,

many

Rev.,
ences
refer-

THE

UNITED

KINGDOM,

621

1914-1920

BIBLIOGRAPHY
of

Most
to

be found

economic

useful

Of

and

For.

of the

United

Dom.

Commerce,

F.

of

and

publications

make

L.

Gray,

of the

presentation
The

A.

The

(Labour

in

criticism

of the

on

and

is lacking here

1915,

existing system;

for

for reference

brief

report

United

for the
and

to
to

Misc.

it

railways;
J. A.

series

as

to

period.

war

experience

critics

of

land,
Eng-

excellent

an

policy [Cd.
13, with

set

for 1918, vol.

on

special industries.

title.

no.

extensive

L.

from

is

policy, and

was

to

on

Mr.

Cole

Space
Councils,
A

of For.

Bureau

1918, attends

relatively
as

serve

committee

published

report

Price,
186-201.

the

73, Washington,

made

vigorous

of "reconstruction."

aspects

be

Cole

H.

Whitley

on

uation
sit-

describe

to

D.

found

29:

1919,

publications

of Burleigh's

9035], which

L.

G.

edited

labor

aimed

be

see

stimulated
been

The

on

of

writings

corrective

various

Series

have

report

reconstruction,

Balfour

an

that

the

In

the many

the

of Science

etc., etc.) will

if necessary

can

full report of Lord

industrial

the

4,

promises

the

Y., 1919, which

N.

commercial

and

commerce

Kingdom;

vol.

British

which

war,"

Journal, June,

Economic

entitled

Commerce,
to

and

legislation.

of

which

published

time, London,

Gild

Dom.

Hibbard,

control

first of

British

following

H.

of the

knowledge

the

policies.

and

Socialism, etc., and

and

is the

1919,

history;

and

Advancement

France,

problems, Economic

labour

Financial

of industry:

and

Federation

Civic

war

the

11, B.

Endowment

published under

and

conditions

impartially

Paton, The

Government

conditions

our

the

for

finance

Britain

in Great

United

subject.

"Labour,

National

vol.

administration

accepted by competent

Kirkaldy

W.

to

control

Association

British

inquiries into

by

time

Wrar

Endowment

McVey,

War

A.

are

96.

no.

Baker,

Peace

contributions

N. Y., 1918, is

Peace

labor

Carnegie

the

of

important

Howard

British

Series

Control, Oxford, 1821,

Salter, Allied Shipping

of

L.

of the

William

Kingdom:

F.

importance

Abstract

1912-1918, Washington,

18, C. W.

7,

by

Misc.

Parmelee,

J. H.

Hammond,

B.

vol. 14, M.

vol.

industry;

Dixon

H.

Kingdom,

United

vol.

agriculture;

upon

operation

the

to

commercial

is offered

compilation

special attention

pay

primary

of the Statistical

publications of the Carnegie

the

Effects

of

volumes

annual

position

of

facts

statistical

in the

Kingdom.

Bur.

the

on

in the

shipping

and

full

on

ticularly
par-

the

substitute
commercial

parliamentary
other

reports

LVI

CHAPTER
AND

FRANCE

of the

Effects

741.

THE

PROBLEM

OF

the

REPARATIONS

of

belligerent
The commerce
of the United Kingdom
and of neutral states.
has been treated at considerable length
in the period of the war
itself an
it was
mining
not only because
important factor in deterthe outcome
of the struggle,but also because it illustrated
the general conditions of the period. War
brought to
the other belligerent
states the same
urgent need of imports,
affected in a similar way
the organization of production,and
restricted exports.
the neutral
To
states the war
brought
some
losses,but it brought also a great commercial
dangers and some
in a position to supply the
opportunity. If they were
needs of the belligerentsthey could charge unheard
of sums
war

upon

commerce

"

for their services.

made

Individual

and

in

states, however, the

grew

few

some

who

seized the opportunity

navian
great fortunes,in the Netherlands, in the Scandi-

states

while

merchants

Spain.
waste

individuals

In neutral
of

war

as

well

brought
richer the

grew

in

belligerent

loss and

suffering;

mass

as

of the

people

poorer.

742.

Statistics

of

French

important features
period of the war
appear

most

table does not

currency

in

commerce,

the

course

of France

"

The
in the

in the

take into account

in the

commerce

1913-1919.

of the

accompanying table. As the

the depreciationof the French
and gives merely nominal
war

the reader should be cautious in the comexchange equivalents,

parison
of figures
in the upper
and lower part of a column, and in
the comparison of these "paper" figureswith figuresrepresenting
actual gold dollars,
as
given in the statistics of the United
622

FRANCE

AND

THE

PROBLEM

OF

States.*

Figuresin any horizontal row

they represent an equal amount

since

TRADE

(Figures

REPARATIONS

are

of

623

strictly
comparable,
depreciation.

FRANCE, 1913-1919.

OP

hundred

in

millions of dollars; 1 signifies

approximately
$100,000,000. The left-handcolumn under every heading gives imports;
the righthand column
givesexports.)

743.

imports and exports.

Attending first
to the horizontal row
giving conditions in 1913 we find France
able to enjoy a surplus of imports by reason
of her foreigninvestment
Changes

in

in Russia

"

and other

countries;the imports consisted

materials,to a less extent of food

mainly of industrial raw

The country made
products, still less of manufactures.
ment
payfor its imports mainly by finished manufactures, but
exported also raw materials and food products. Now following
down

the

decline of the value

power

The

by the
When

of the war,

course

then made

will note

in terms
much

more

$.193, declined
but

was

kept

of the allied governments

action

absolute

depreciated

serious shrink-

rapidly in purchasing

close to
in

of

an

par

"pegging"

in

change
foreign ex-

the exchange.

ceased to control the rate, in the Spring of 1919, it

below $.06 in Dec. 1920,
below
$.10 in Dec., 1919, was

the government

fellsharply; it was
and

course,

franc, nominally worth

in the

reader

of exports, even

implied,of

this

currency;

the

vertical columns

recovery.

624

HISTORY

quantitiesof

age in the
movement

was

in

values

France

was

of

of

Changes

in the

received

had

important

as

aside from

followingtable
to obtain

the

IMPORTS

for

means

INTO

FRANCE,

(Figures in hundred

The
of the

13

import trade.

the

had

half

Russia

been

not

Germany

of the
as

total

much;
the

had

so

source

not

the

COUNTRY

been

exports of France, measured

1
.

WHICH

turned

OBTAINED

signifies
approximately

even

in the inflated value

countries

of most

case

France

The

war.

FROM

of dollars;
$10,000,000.)

in the

considerable.

to which

sources

carryingon
BY

divergence

supply, and trade with the Central

millions

period,declined

cent

per

actual

signifiedthat

countries alone involved

Germany

indicates

about

this

of the

an

From

"

Belgium about

of

source

of trade.

direction

in 1913

of one-fifth of the French

Powers

resultingin

and

imports, from
that the closingof those two

so

value

indicate

to

trade, and

of her

value

in the nominal

branches

some

Accompanying

imports
exports which
incurring a heavy debt abroad.

in the

France

sold abroad.

wares

in the volume

744.

COMMERCE

rapid expansion

imports, sufficient
increase

OF

of

mercial
com-

Italy,to
importance; the noteworthy exception was
double or triple
of the war, exports were
which, in the course
the usual value of the preceding period of peace.
745.
were

French

in bad

finances

condition

during

the

at the outbreak

war.

of the

"

war.

French

finances

Expenditures

FRANCE

AND

THE

PROBLEM

OF

625

REPARATIONS

had increased greatlyin the decade

before 1914, and the ment

governslow to recognize the necessityof heavier taxes.
In

was

the years 1908-1914

but one
every year
deficit. After mobilization,
which even

had

shown

actual

an

in August, 1914, had

called out

and early in 1915 had called

nearly 4 million men
5 million,it was
over
difficult to devise and apply
particularly
new
the enemy
had occupied
taxes; while in the meantime
of the richest industrial districts,
some
contributingnormally
about 15 per cent of the public revenue.
In consequence
the
raised

by

taxation

only a small proportion of the

funds required by the expendituresof the war
period (Aug. 1,
1914
Apr. 1, 1919),about one-eighth,
as compared with
onequarter in the United Kingdom and one-third in the United
States. Stating figuresapproximatelyin milliards of francs the
incurred a total expenditure of 181, and met
it
government
as follows : 22 by taxes, 86 by loans placed at home, 26 by loans
from
of France, 27 by foreignloans,leavinga floatthe Bank
ing
debt of 20 stillto be provided for in 1919.
The last three
items had an
relations
important bearing on the commercial
government

"

of France.

bank

from

notes, paper

tended

the Bank

the normal

floatingdebt

of

par;

tended

of France

which

money,

to raise the rate

far above
the

Loans

inflated the

foreignexchange
the unsettled
to

took

on

the form

and

currency

other countries

finances evidenced

by

of the

violent fluctuations

cause

of

foreigndebt would, if interest were paid on it,involve

remittance
at high rates and would
ports
requirean increase of exrate;

if

no

other

resource

were

available.

The
done
to
devastated
districts.
the
Damage
of the damage done to property in that part of France
amount
be known
where
the fightingtook place will probably never
with any approach to accuracy.
affected was
not very
The area
large,perhaps 10 per cent at most of the total area of France,
of which
the smaller part, perhaps 4 per cent of the total,lay
fiercest.
in the devastated
the fighting was
districts where
746.

"

Unfortunately for
almost

one-third

France

of her

her

best

coal and

iron

mines

manufacturing industrylay within

and
the

626

of

area

linen) and
her

the

half of

dependence

United
had

or

of

more

able

(woolen, cotton, flax and

in the occupied
workers, were

metal

the

upon

imports

on

would

Kingdom

been

nine-tenths

to

seriouslyhandicapped during the

was

inabilityto draw

Her

COMMERCE

textile manufactures

France

zone.

OF

one-half

from

invasion;

of the

some

HISTORY

not

resources

from

the

have

been

her

maintain

to

suffered from

She

the
the

of that she and her allies won

of the

war

by

occupiedregions.

United

States

and

the

nearly so great if she

impaired.
productive organizationunlack of product,but in spite
Then

war.

she faced

greater

capital of generations,
plant, the accumulated
but also in dwelling
representednot only in mines and factories,
loss,that

of

houses, in roads and bridges,in the

districts peace
liability.She

devastated

the

fields themselves.

very

restored

her

to

not

an

In
asset

owed
to her own
people the
grievous
obligationof repairing the damage and restoringthat which
had
been
destroyed,at a time when she was
crippled by
but

other burdens

which

the

had

war

cast

her.

upon

Conservative

ranged from 10 to 15 milliards of gold

estimates
(unquestionably exaggerated for
francs; other
purposes) went up to 65 or 75 or more.
political

estimates

of the

loss

Territorial

747.

rendered

France

gains of
Most

side of the account.

and

from

of her annual

by-product

and

important

the restoration

Germany

included

had

treaty of

be put

on

the other
the territorial

her, among

to

peace

of the

provinces of Alsace

taken

and

the richest bed

of iron

had

held

since

in

Europe;
had derived,since the developthat province Germany
ment
of steel manufacture, three-fourths
of the basic process
Lorraine

1871.

The

"

benefits that may

some

changes, was
Lorraine, which

France.

supply

of

of the

basic

ore.

The
process,

great bed of potash in Alsace

ore

phosphate slag,which
was

valuable

offered another

was

fertilizer;
important

for the wanton

extent
To atone to some
resource.
agricultural
damage done to the French coal mines, which could not be
repairedfor years, Germany ceded ownership in the coal mines
did not,
of the Saar basin,on the border of Lorraine,which

628

milliard

HISTORY

but
dollars,

when

OF

COMMERCE

the necessary
deductions
milliard for reparations.

made

were

they offered scarcelyone

749. Principleconditioning Germany's capacity to pay.
fixed in the country,
of Germany
Most
of the wealth
was
"

and

not

was

confiscatingand

in

sense

directlyavailable

could

that wealth

reparation. There

distributingit.

The

was

reader

no

will

that essential

better understand
how

for

point if he will face the question:

the benefits arising from
the ownership of

be transferred

other

to

countries

be

to

enjoyed in

them?

Suppose that you are granted, to repair your losses

in the war, the ownership of a German
farm or factory; how
will you get any good from it? You
real material
want
some
good, something that you could enjoy yourself,or could
exchange to advantage. A piece of paper would not satisfy
Gold would
had little
be acceptable,but the Germans
you.
of that left,needed
minimum
them
amount
to enable
to
a
continue in business,and could get more
only as they bought
it abroad.
To
would
something real the Germans
pay
you
have to ship out something real,whether
they paid it directly
to you
or
bought with it "foreign exchange," that is,the right
to something real,
in the country
gold or its material equivalent,
in which

you

live.

After

quick assets, Germany

the

of German

excess

time

that

might

be

could pay

exports

only a
This

country's
value to

equal in

sum

the

was

of payment

amount

of the

imports during

over

determined.

principlelimitingthe
could

the initial payment

in

any

period of

fundamental

reparations that

be imposed.
effectively

750.
There

Practical

were,

limits of amount

therefore,two

the amount

to be exacted:

could

and

pay,

should

extend.
that

the

factor.

Various

to

the amount

period of payments.
be

considered

per year

of years

over

that

which

reached
Trustworthy investigators

Germany
a

factors

number

beforethe

unimpaired,would
dollars

and

year.

have

Here

was

considerations

in

fixing

Germany
payments
the

clusion
con-

with its productive organization

war,

able to pay about

given the maximum

been

set

"

limit to the other

one

for

liard
milone

factor,

FRANCE

THE

AND

the period of time

On

this

as

OF

during which

other

on

PROBLEM

the situation at the close of the

in
participants

it to

friends of the western

judge

should

payments

points there

was
war

be exacted.

general agreement;

no

too

was

tense

the question

calmly.
alliesbelieved,however, that

of the allies themselves

629

REPARATIONS

required the limitation

permit

to

Fair-minded
the interests

of the

period

during which the payment should be made to a definite and

reasonably short time, say thirtyyears, the span of a human
generation.This restriction was prompted by regard to justice,
by the impropriety of visitingon future generations the sins
It accorded with considerations of political
of their ancestors.

expediency;the payment
an

and
and

of strain

element

which
political,
of
practically

derived

mount

sums

must

up

when

they

process

of discount.

to

one

offer

more

dollar
than

as

Finally,

how

knows

quickly
He

interest.

shrink

in the future

is

be

to

of payment

the time

compound

be made

to

computed by

will you give for my

pledge
foolish if you
You
hence?
are

much

How

fiftyyears

small fraction

at

put

are

their present value

correspondinglywhen
pay

rapidlyless

reader doubtless

The

realize that payments

should

be too

not

economic

greatest importance, the benefit

the

extended.

was

both
relations,
long continued.

in international

reparationsgrew

from

certain to introduce

of reparationswas

five cents, when

over

the rate

of interest is 6 %.

With
and

regard to

due

might

which

payment
to

amount

milliards

751.

lump

sober

question believed that the

be imposed on
should
Germany

of the

students

competent

maximum

all the factors in the settlement

sum

in

present value of

ten to fifteen

of dollars.
Provisions

of

the

regarding
Versailles (article231)

Treaty of Versailles

reparations. By the Treaty of

and her
of Germany
accepted "the responsibility
Germany
allies for causing all the loss and damage to which the Allied
"

and

Associated

and

Governments

subjectedas a consequence
the aggressionof Germany

of the
and

have

their nationals
war

imposed

upon

her Allies." The

been

them

by

treaty itself

630

recognizedthat

the

HISTORY

OF

COMMERCE

of

not sufficient
Germany were
for complete reparation, but, most
unfortunately,did not
which
itself fix a definite sum, the maximum
Germany might
reasonably be expected to pay with reference to the practical
have
been sketched
in the preceding section.
factors which

Some

of the

resources

leaders

European

in

the

extravagant prospects of indemnity

unwillingas yet

to confess

therefore

their

to

the facts.

left to be

Entente

The

had

held

people,and

exact

out
were

of payment

terms

settled later

by a Reparations
which
Commission
to get the
was
given far-reachingpowers
it could up to a limit set so high that it manifestlyexmost
ceeded
Then
followed a period of
German
capacity to pay.
bitter contest in which the Allies by threats,by fiscal penalties,
and by actual occupation of German
sought to make
territory
fell behind in payment
good their claims, while the Germans
the demands
and stolidlyprofessed their inabilityto meet
ously
seriRecovery and reconstruction were
imposed upon them.
delayed, both in western and in central Europe.
were

752.

settlement

London

approach toward
of reparations
was
1921, and

May,

of

practicablesettlement
in conditions

made

imposed

on

be

are

not

worth

drawn
under

Germany

of the district of the Ruhr.

and

1921.

May,

The

terms

"

of

the

up

in London

of interest

as

question

threat
are

for
detailed description

amended, but they are

substantial

of

an

in
cupation
oc-

complicated,
will

they
probably
the form that
indicating

of the
possiblytake. A summary
stated
in
most
important provisions follows: figures are
milliards of gold marks, a unit roughly equal to 250 million

the

final settlement

may

dollars.

payments under two heads:

of 2 milliards,
first a fixed sum
second, a sum
equal in amount
to about
one
quarter (26%) of the value of German
exports

Germany

bound

was

to annual

for the year, but not less than

annual payments of a minimum
issue German
interest could

bonds

of

be

paid

1 milliard.

the basis of these

of 3 milliard the allies

face value of 50
and

On

still leave

milliard,on
available

were

which

half

to

5 %

mil-

FRANCE

Hard

AND

employed
debt; after

would

Germany

present value
thus

PROBLEM

to be

year

of the
years

THE

in

OF

sinkingfund

be free.

The

allies

well within

before

the

milliard

about

carry

the

and

and

of 26%
in

total

the
cent

dollars.

milliard

bonds

Germany
amounting to 8
pay.

assumed

arrangement

the

allies that

they

possible issue of more

of 82 milliard,making
over
thirty thousand

"

be

to

were

distributed

among

in the following proportions:France

issue,United

the

for the

the amount

to

132

The

the remainder

and

this

exports assured
made

were

capitalsum

allied states
of

export trade

Germany's prosperity if it actually did return;

this basis up

on

million

of 3 milliard marks

capacityto

while

over,

of the

arrangements

the

to realize the

share

bonds

thirty-seven

that the exports could

milliard,but assumed
burden of a heavy tax.
The provisionfor the variable

payment
would

the German

had, indeed, an

war

marks

only

tinction
ex-

and
by sellingthem to investors,
for economic
reconstruction;while they

professed to believe that the minimum

was

hoped

the

of the bonds

get ready funds

year

toward

period of about

631

REPARATIONS

per

22, Italy 10, Belgium 8,

Kingdom

to other

52

countries.

tion
AttenObjectionable aspect of reparationpayments.
should now
be directed to an interestingand important

753.

"

feature of the reparationquestion. Germany,

could

indemnity only by

an

pay

Might
be

an

not

curse

might it

not

the
flow

would

to

has

been

surplus of exports

said,

over

Likewise, the allies in the long run could

indemnity only in the form of a surplus of imports.
this flow of goods, forced by pressure on Germany,
rather than a blessingto the country receivingit;

long period of
receive

as

years.

undermine

producer

neutral

at

home
home

markets, where

find himself

crowded

industries?

might

it not

the British
out

by

Or, if a tariff protected

simply divert this
or

French

exporter

competition that

was

unyieldingbecause of the military pressure behind

home
it
of his own
government!
the military pressure
she not at the end of
If Germany endured
the strain would
of the world, win the world by
a generation rule the markets
fierce and
"

632

losingthe

The

war?

to realize how

is hard

of exports could

COMMERCE

OF

paradoxicalthat it
is its import. Only by a surplus

situation
serious

Germany

would

which

take

HISTORY

pay.

sounds

form could these exports

What

interests

injure some

not

so

in

the

allied

countries?
It is
in time

probable

to

considerations

that

considerable

this kind

of

of the demands

moderation

will lead

imposed

in 1921 arrangethat even

Germany. And it is significant
ments
were
being made for the payment in kind,by the delivery
able
coal,timber,buildingmaterial of all kinds,of a consider-

upon

of

fraction of the

1.

Report upon

(a) Switzerland.
series

sum

due to France.

of the neutral states

one

[Report of

Bureau

during the

of For. and

Dom.

war:

Commerce,

Misc.

90.]

no.

(6) Netherland.
1917, 107:

443

ff.,1918, 110:

Abraham,

in

Fortnightly Rev.,
110 ff.; P. Geyl in Contemp. Rev.,

no.
[Same series,
91;

B.

228-294.]
World's Work, Feb., 1918,
[E. Bjorkman in American
35: 437-447.]
134-152;
(d) Spain. [L. A. Bolin in Edinb. Rev., July, 1917, 226:
1918, 113:

(c) Scandinavia.

Cent., 1918, 83: 386-402.]

in Contemp. Rev., March,
[E. Cammaerts
1920, 117: 349-365; J. M. Price in Fortnightly Rev., 1920, 113: 467-i77.]
financial effort of France
3. The
[J. F. Bloch in
during the war.
Annals of Amer.
Academy Soc. and Pol. Sci.,Jan., 1918, 75: 201-206.]
in Europe.
4. Territorial gains of France
world,
[Bowman, The new
E. J. Dillon

2.

in Nineteenth

Recovery of Belgium.

86-91; Haskins, in What

5.

Alsace-Lorraine.

6.

The

Saar

Basin

really happened, etc., 45-66.]

[Haskins, Some
problems, chap. 3.]
problems, chap. 4;
[Haskins, Some

Tardieu,

chap. 8.]
7.

Territorial interests of France

outside Europe.

[Bowman, 91-118.]

[R. L. Buell in Amer. Polit. Sci. Rev.,

Feb., 1921, 15: 27-51; H. A. Gibbons in Fortnightly Rev., July, 1919, 112:
64-76; Tardieu, chap. 12.]
8.

Reconstruction

9.

The

in France.

question of reparations: the

French

position. [Tardieu,

ahap 9.]
10.

The

chap. 5.]

questionof reparations:criticism of the settlement

[Keynes,

FRANCE
The

11.

AND

THE

PROBLEM

OF

question of reparations: the American

chap. 11, and Young, chap. 12, in What

13-75.]

633

REPARATIONS

position. [Lament,

reallyhappened, etc.: Baruch,

Working

12.

of the reparation settlement.

[Tardieu, chap. 10.]
Contributions
of the peace
treaties to the control of commercial

13.

practicesand policy. [Young, in History of the Peace Conference;

ed. by
H. W. V. Temperley, vol. 5, London, 1921, chap.
1, part 3.]
BIBLIOGRAPHY
B. M. Anderson, Jr.,Effects of the war
on
credit and banking,
money,
N. Y., 1919, Carnegie Peace, vol. 15, covers
both France and the United
of commercial
States,and describes the course
affairs in connection
with
the question of
French

foreignexchange.

both

May,

excellent

finance is provided by Gaston

On

also Gide

the writers named

1921, 95:

survey

of the

course

of

The economic and financial

Jeze.,
in 1920, in Quarterly Journal of Economics, Feb., 1921,

positionof France
35:
175-214; see
and

An

in Econ.

Journal,June, 1919,

in Annals

Amer.

Acad.

29:

Soc. and

129-137,
Pol.

Sci.,

151-160.

the peace

can
settlement,** What reallyhappened at Paris,by AmeriE.
and
M. House
C. Seymour, N. Y., 1921, is welldelegates,ed.,

informed

and

represents the American

positionwith regard

to

points at

issue better than any other book.

and R. H. Lord, ** Some
C. H. Haskins
problems of the Peace
Univ. Press,
Conference, Cambridge, Harvard
**
is
The new
1920, restricted to territorial questions. I. Bowman,
world,

Yonkers, 1921, treats particularly the problems in political

geography
due
attention
to historical and
arising from the settlement, but pays
economic

On

and

factors,and includes
the subject of

Young.

economic

valuable

many

M.

Baruch,* The

account

material

will be found
W.

V.

in the elaborate

Temperley, of which

are

of economic

History

is that

extensive; it reprints

sections of the treaty, N. Y., 1920, is more

all clauses of the Versailles treaty which

ed. H.

is indispensable.

by Lamont
making of the reparationand

reparationsthe best brief

Bernard

the book

maps;

interest.

of the Peace

five volumes

had

been

Further

Conference,

publishedin

1921.

Tardieu, The truth about the treaty, Indianapolis,1921, is

an
eloquentplea for French claims in their entirety; J. M. Keynes, The
the reparations
economic consequences
of the peace, N. Y., 1920, condemns
Andr6

settlement

as

Convenient
time

too

severe.

sources

will be found

Either book
of information

in Current

the N. Y. Times, and in Economic

weekly in London.

may
on

mislead

uncritical reader.

the changing conditions

History, a review
Review

an

of the

publishedmonthly by

of the Foreign Press,published

LVII

CHAPTER
CENTRAL

EASTERN

AND

1914-1920

EUROPE,

of
Germany.
By the terms
ceded
and
Germany
territoryin the west to France
peace
Belgium, in the north to Denmark, in the east to Poland.
The
serious losses were
most
comprised in the provinces of
and Lorraine, and in part of the province of Silesia.
Alsace
mineral
deposits,particularlycoal,
Upper Silesia contained
asserted to be indispensable
which the Germans
to the industrial
the rights
development of their country, and the contest over
than two years after the
involved
delayed a decision for more
signingof the Treaty of Versailles. The final award, rendered
of the League of Nations, divided
between
by a commission
the territoryin dispute but arranged
Germany and Poland
that for a period of fifteen years the whole area
be kept under
Territorial

754.

the

control

of

abandon

output of

in

by
had
in

still more

were

intercourse.

of great industrial

The

serious.

country

mines

supplying about one-quarter

coal,three-quartersof the iron output,

Internal

losses

of the

of peace were
already suffered in the
was

1,800,000,and

68,000,000.
the

obliged

was

of the
even

annual
a

higher

of zinc.

the terms

1914

free economic

particular resources

proportion of the output

765.

maintain

ture
recognize the mix-

Germany, measured in area, population,

industrial resources,
ranged from 10 to 15

Losses

cent.

importance
to

should

should

total losses of

agriculturaland
per

"

which

commission

of interests and
The

of

losses

number

country.

added

Deaths

634

the

of the

course

of

to

losses fixed

loss which

Germany

war.

in the

wounded

These

"

army
was

The

population

amounted
over

to

4,000,000.

636

of

Commerce

757.

OF

HISTORY

Germany

active commercial

maintained

COMMERCE

during the

relations with

war.

"

Germany

the other

Central

foodstuffs from the rich plain

Powers, importing particularly
of the Danube
basin,and lignite(brown-coal)from Bohemia.
distant allies,
Trade with the more
Bulgariaand Turkey, proved
difficult and relatively
unimportant. Railroad facilities were
in such

Danube

of troops and

the movement

front,that they could hardly be spared for

service in southeastern
Europe; water carriageon the
was
preferredbut was slow and ineffective.

of munitions
distant

for the transfer

demand

There

was

to the

marked

increase

in the

value

of trade

with

and
states,of which three,Switzerland,Netherland
directlyadjacent,while Norway and Sweden
Denmark, were
were
separated only by water which lay outside the control
neutral

of navies

of the

These

Entente.

states

accounted

for about

(14%) of the total trade of Germany in 1913,

and took on a new
importance when Germany was denied other
The German
from which to supply her wants.
sources
ment
governhas not supplied statistics by which to measure
changes
in trade during the war, but they can be traced in the commercial
one-seventh

istatisticsof the

neutral

states, and

are

lowing
illustrated in the fol-

table.

FOREIGN

TRADE

(Values

in million

OF

DENMARK,

crowns;

crown

1913-1919

equals $.27)

CENTRAL

feature

AND

EASTERN

EUROPE,

of the table which

deserves

637

1914-1920

particularattention

is the

small amount
of foreignwares
relatively
which reached
Doubtless
Germany
through Denmark.
of this kind
wares
the border in considerable
were
smuggled across
quantities,
in the statistics;
and so do not appear
but the strictness with
which England, in behalf of the Entente,regulatedthe importation
of these wares
the
neutral
allowed no large
by
countries,
surplus for export to Germany, and strangledthe overseas
trade

of that country.
stuffs,
Germany imported from all these neutral countries foodand fats; from particularcountries she
meat
especially
imported iron ore, metals, and special textiles for military
Payment was made largelyin coal and iron products,
purposes.
for which the small states had been used to relyon Germany,
and which they sorelyneeded.
758. Effects of the political
Sections above
revolution.
enumerated
various losses which Germany suffered as a result
of the war.
To
appreciate the condition and prospects of
"

the

after

it is necessary
another
to consider
element of weakness, of which the importance cannot
be tioned,
quesit
be
hard
to
estimate.
This
even
though may
is,namely,
the

country

1918

revolution which
political

accompanied the armistice.

All the faults of the militarymonarchy of the Hohenzollerns
appeared prominently in the outbreak and in the conduct of
the war.
The world paid a tremendous
priceto be rid of it,and
did not count
the cost.
The evils inherent in the old political
system
"some

should

merits

not

that

be allowed,
it

They

however,

had, notably its

should

not

to

blind

honest

obscure

the

and

our

eyes

to

ministra
efficient ad-

important fact

that the old system, however

that to which
bad it might be, was
the German
people were
used, and without which they were
at

loss.

life. Most

The

monarchical

system

was

deep-rootedin German
with sincere conviction;

people accepted it
the opposition to it,as exemplifiedin the party of the Social
Democrats, was perfunctory rather than popular. In reliance
the monarchy the people had been content to retain a pason
of the

638

sive

HISTORY

attitude;they

COMMERCE

OF

lacked

of individual

responsibili
political
and lacked political
initiative. When, therefore,
the people realized at last that their trust had been misplaced,
which was
that the war
to be over
(so they had been assured
to be ended
at its beginning)by Christmas, 1914, was
never
until they had confessed to utter defeat,they swept away
the

old system but

did not

sense

know

how

to

machine
operate the political

tion
they erected in its place. Attempts at social revoluinfected by Russian
by the radical Spartacists,
doctrines,
of the old militarymonarchy,
and at reaction by adherents
rendered the new
republicinsecure at its foundations; while
the desperate conditions of life prevailingat the close of the
shattered
the former
administrative
war
organizationand
administration
rendered
the new
costly and ineffective.
which

Peculiar

759.

importance

of sound

Germany

to

politics.
"

will have a more

serious effect
political
efficiency
in Germany than it would have
the productive organization
on
in other countries for two reasons.
(1).The state has taken a
affairs. Its
active part in the control of economic
particularly
them was
of the war,
over
greatlyextended in the course
power

decline in

and

is still so

of this power.

taxation

great that much

(2).The

the burden

be and

ought to be a
paid annually,under

state

or

16

or

proportion,if we
unduly high. Many,

will transmit

the

wise

exercise

people by

to the

paying reparations. This burden

The minimum
amount
heavy one.
of the

the terms

28 per cent

The

on

will

of

1921, is variously estimated

to 8

depends

by

London

of the total real income

choose

Settlement

economists

German

the middle

to be

of

to amount

of the country.

figure,does

not

seem

families could
perhaps most, American
sacrifice one-sixth of their income, and stillretain the essentials
of health

and

Germany

at

happiness.

Conditions

the close of the

war.

were

very

considerable

different in

part of the

on
a stage of livingwhich
fairlybe termed a
people was
may
minimum;
depressionbelow that stage implied an actual loss
of
it was
in productive efficiency.Under
these conditions
peculiar importance that the tax system should be just in

CENTRAL

AND

EASTERN

EUROPE,

639

1914-1920

and
principle,economical
impartial in administration.
No
attaches to the fact that the governslightimportance, therefore,
ment
in 1921, three

even

unable

balance

after the

years

its

budget, and
and
obligations by issuingmore
which
and

to

in the long

is of all

run

in its immediate
760.

before

end

still was

distress.

The

dominance

of

and

the

money,

tax

taxing devices the least effective

while

war,

had

been

minority, and

time

"

the

of resistance

power

strong, Austria-Hungary

state
a

paper

iniquitous.
Austria-Hungary. Some

of

of the

Germany

more

effects is the most

Dismemberment
the

was

still
armistice,was
meeting its domestic

held

together by

the end of the

as

evidence

gave

in
of

the

military
approached

war

failure of the

military party was

evident,the state
dissolved into its component
parts by a natural process quite
independent of any action of the Entente.
Fragments

the

of

old

dual

monarchy

absorbed

by
-shaped province

were

borderingcountries. Galicia,the great crescent

lyingto the east of the Carpathian mountains, went to the new
It had been grievouslyravaged in the course
state of Poland.
of the war, but promised to develop in time considerable agricultural
and was
prized for its supply
particularly
resources,
of petroleum in the
district attached

east

coal mines

the

and

Teschen

Transylvania,with parts

it in the west.

to

of the

rich
area
an
adjacent provinces,brought to Rumania
fertile
and some
mineral resources
in forest products,with some
became
by these
grain land (Banat of Temesvar). Rumania
of Bessarabia,on the Russian
accessions and by the acquisition
of

some

of the

border,one
(about

Kingdom

which

was

union

with

the

million)double

in the Balkan

state

old

16

of Europe, with

that of

Jugo-Slavia,the

peninsula. This

new

state grew

population
next
out

largest
of the

began, and
by
for its sufferingsin the war

of Serbia, in which

finallyrewarded

the World

War

people along the Adriatic coast and in

slavia
old dual monarchy. The trials of Jugowith the war, for it had stillto make good

the kindred

southwest
were

largerstates

not

of the
ended

its claims to Fiume, its natural outlet at the head

of the Adriatic.

640

The

justiceof
to

open

HISTORY

its claims

serious

OF

COMMERCE

not, in the opinion of the writer,

were

dispute, but Italy,which

its

had

already pushed
districts occupied by

Alpine frontier far past the Austrian

Italian population,was
an
jealous of a possible rival in the
Adriatic,and refused to agree to the occupation of Fiume by
of the Italian bravado,
another power.
The unfortunate
exploits
D'Annunzio, complicated the issue,but it was at least settled
which promised in
by a compromise between the two powers
of time to give Jugo-Slavia the commercial
the course
outlet
essential to its prosperity.
761.

Czecho-Slovakia.

the boundaries

of

Of

"

the

new

formed

states

Austria-Hungary that which

within

the greatest

gave

Czecho-Slovakia,comprising the
and Moravia, and extending to the
old kingdoms of Bohemia
southeast
merly
to include the Slovak
population which had forbeen included in the kingdom of Hungary.
This new
most
state took that part of the old monarchy which
was
promise

of

prosperitywas

richlyendowed

with

natural

resources

and

which

had

attained

the

highest industrial development. Stating the proportions

approximately it included only one-fifth of the area of AustriaHungary, but in that fraction comprised one-third of the
factoryworkers and over one-third of the mining population.
The land was
fertile and highlycultivated,
supporting a dense
population and providing a surplus of food for export. The
Czechs
could look back
with pride to a period in the past
when they were
of the leadingpeoplesof Europe, and they
one
had prepared themselves
for self-government
by long struggles
the
of
German
rulers.
oppressions
against
it
the sea
is far distant from
Although Czecho-Slovakia
has means
of access
to it both by the Elbe and by the Danube,
and

is at the heart

of the railroad system

of central

Europe.
Provided
with a surplus of products keenly desired in neighboring
states, particularlycoal,iron and food, its commercial
future

appears

762.
was

Magyar

to be assured.

Hungary;

the condition

German

of the two

Austria.

"

Far

able
less favor-

states,Austria and Hungary,

CENTRAL

had

which

past, and

AND

been

EASTERN

the seat

which

EUROPE,

of the power

1914-1920

of the

641

Hapsburgs in the

had

prospered when they had been supported

shorn of
now
by the labor of subject peoples,but which were
in the world.
this support, and given each its own
to make
way
The
Magyar state of Hungary offered at least tolerable
prospects of

Although

success.

it lost the border

formerly supplied practicallyall

had

of its minerals,it retained

much

the

of

one

exchange

to

of

granaries
its

products and

and fertileterritory,

compact

central

surplus wheat

its forest

lands which

Europe, and could hope

for the products which
it

needed.
Austria

German

It retained

condition.

left by the terms

was

of peace

populationof only 6

in

pitiable
million,including
a

people in the old dual

Of this total nearly one-third (1.8million,1920)

half of the German-speaking

less than

monarchy.
was
comprised in the singlecity of Vienna, which had grown
to this size largelyby the political
advantage that it enjoyed
Much
of the area
of the
of a great state.
of the capitals
as
one
state was
new
mountainous, suited to grazingbut not adapted
of the presto intensive agriculture.Before 1914 the territory
ent
able to produce perhaps two-thirds of the necessary
state was
by its inhabitants;in 1920, with powers
it could render only one-quarter. Endowed

food suppliesconsumed

depletedby the

war,

Austria could
mineral resource, iron mines inStyria,
of life only by the
the food requiredfor the maintenance

with only one

buy
exchange

of industrial

of imported
of the

materials.

raw

country
with

resource

products made

with

imported

At the close of the

war

coal out

the situation

desperate, for the people had no

in the process of foreign
make
a start

indeed

was

which

to

basis of
opened, and some
found for the beginningof commercial transactions,
credit was
the government had plunged deep in the issue
but meanwhile
which depreciatedso far that itself formed a
of paper
money,

Gradually markets

trade.

grave

obstacle to economic

for years
or

to

come

to

international;and

were

recovery.

Austria

seemed

destined

relyupon charity,whether private,public

questionedthe wisdom of the peace
many

642

settlement

which

HISTORY

forbade

OF

the

COMMERCE

union

of this

fragment
Germany.

of the

German-speaking people with the rest of

763. Poland; earlier history.
The World
War
made
its
of Europe not by the transfers of
greatest change in the map
between
to
territory
borderingstates,important as these were
the partiesconcerned, not by the creation of new
states
like
Czecho-Slovakia
but by the resurrection of an old state,Poland.
Poland had played no great part in commerce
in the previous
period of its existence. The surplussupplies of wheat grown
the great estates of its landlords had been carried by road
on
and river to Danzig, to be shipped to western
change
Europe in exfor metals, manufactured
and exotic products
wares
"

that made
The

the life of the Polish

country

from

as

whole

the centers

was

of European

of the commercial

member
The

of
partitions
keenly as they were
the life of the

too

Poland

nobleman
backward

progress

too far removed

to become

at the end of the

an

important

eighteenthcentury

felt

by patriots,made little difference in

of the people The divided people went
neglectedby Austria,schooled and drilled

mass
:

by Prussia,
givenin

Russia at least

later to be

was

and

system of the time.

their separate ways

which

comfortable.

more

access

great stimulus

to

an

enormous

to manufacture.

market

Most

under a system of
agriculture
serfdom like the medieval.
freed from this in the
They were
of the
nineteenth century, and acquiredin small holdings much
A turning
land which had formerly been held in great estates.
in the
point in the economic history of the Polish people came
of the

people were

last quarter of the

employed

nineteenth

developed rapidly in
protectivetariff.
764.

Resources

in

Russian

of the

new

century, when

Poland, fostered
Poland.

"

The

manufactures

by the high
new

state

of

supported by the Entente as a check

With
on
a
Germany.
population of about 25 million it had
claim to a place among
the largerpowers
of Europe. Its economic
endowment
was
adequate if not abundant; besides a
of arable land and great forests it had coal supplies
sufficiency

Poland

was

welcomed

and

644

HISTORY

Since the Russianhad

gatheringin

been

these to

Japanese

explosionby

an

OF

COMMERCE

war

of 1904
The

Russia.

the

the forces of revolution

World

War

brought

sufferingsthat it imposed upon

that it made
of the weakness

people and by

the exposure
corruption of the autocratic

In

government.

the
and

March, 1917, an

Petrograd initiated a revolution that in six months

ran
through nearly as many
stages, tendingalways in a radical
direction and leaving the government
finallyin the control of
outbreak

at

the Communist
767.

formed

great influence

on

democratic

The

which

movement,
of

Soviets

England

by Soviets,councils,
represent workers in factories,

and

of the

traditional leaders of the old

features

were

of

world-wide

their counterpart in the

United

left the future of this movement

stages of the

exercised

was

basis to

found

In the earlier

"

soldiers,
againstthe

peasants and

regime.

party.

Bolsheviks.

and

Soviets

revolution

Bolshevik

or

States.

The

popular

shop-councils

close of the

war

stillin

doubt,but it appeared to
offer a wholesome
and welcome
change in industrial relations,
provided the workers were
responding
corwillingto accept responsibilities
that they claimed.
to the powers
It is important ta
an
understandingof the Russian revolution to realize that the
democratic
The
120

features of the soviet system

Bolsheviks

counted

million;they

the adult

numbered

as

the

Difficulties

soon

million in

certainlyless than
and

abandoned.

population of
2 per

cent

vigor they

of

nated
domi-

they maintained the pretence of

will they acted as tyranicallyand unscrupulously
autocracy which had preceded them.

and
situation,
deferringto the popular

accepted

population. By their boldness

the

768.

less than

were

of

while

the

Bolsheviks.

"

The

Bolsheviks

doctrines of Karl Marx, the

gospel the economic
founder of modern
enthusiasts for social
socialism,and many
have expressed regret that
experiments ("parlor-Bolsheviks")

they

as

did not

have

Russia

better field in which

to

trines.
try out these doc-

the
to desperation when
alreadyw^-worn
revolution took place. Fighting continued,not alone on the
external front but now
also in civil conflicts which ravaged the
was

CENTRAL

face

of the

AND

EASTERN

The

country.

merely that they had lost

them

EUROPE,
of the

states

Entente

ally,but also that

an

645

1914-1920

found

new

not
to

enemy

had

arisen,preaching doctrines subversive of the established

order and
their power
threateningto undermine
when
the strugglewith Germany was
at its height. They stimulated
in Russia opposition to the rule of the Bolsheviks,and sought
so

far

lest it

they

as

able to seal Bolshevik

were

profitby the exchange

769.

of Bolshevist

Failure
Bolshevism

it showed
In

its

communism.

disastrous

own

capitalinherited

properly,not

Railroads

only

also because

of

and
of

because

yield of agriculturedeclined
population
whole

provinces. Pretensions

other

governments

did

critical examination

to be

nothing over
elementary needs

of the

Prospects of

770.

Russian

revolution
disturb

promised

to

By

communism

that
the
may

1921

would
basis of
be

commerce.

sure,

ceased

was

function

to

far that

large part

starvation

the

that

but
The

of the
visited

of social service which

too

were

often

found

on

gross

neglectto provide for

the

people.
begun the
of development, and

after it had

Years

"

still in process

was

people for years

recognizedfailure,but

the life of the

was

for

and

out

wore

shams; they certainlycounted

mere

in the re-establishment

of

to

come.

the

lines

society on

prediction. Of this we
lowing
decades, perhaps for a generationfol-

private property
that

destitution.

to

efficiencyof laborers.

render

Russia.

followed

be

Russia

order

to forms

against the

for

ditions
con-

depreciationof equipment
so

not

the

Curiouslyenough
field of militaryaffairs.
bution
production and distri-

factories

with

threatened

was

old

in the

decline

the

from

Under

"

failure.

in the
efficiency
particulardepartment, the
economic
goods, it brought

replaced.

not

was

in isolation

goods, and spread its doctrines.

its greatest

of
Fixed

of

Russia

defied

for little in the history of

the war, Russia will count
will be reorganized.
structure
Little by little its economic

The
from

other

uals
privateindividportion
countries,including probably a large pro-

leaders in the process

of Germans.

The

process

will be

will be slow

because

it will

646

OF

HISTORY

COMMERCE

by political
instability.Russia can
hardly be
divided into parts; Russia can hardly be governed as a whole.
will be a tedious and painful process because
Economic
recovery
of a people
the political
education
wait upon
it must
but the barest beginnings in national
who in 1914 had made
be

retarded

self-government.
AND

QUESTIONS
Territorial losses of

1.

.in What

Germany

TOPICS

in the peace

settlement.

[Haskins

chap. 10.]
really happened, etc., chap. 3; Bowman,
E.
[A.
Germany.
Taylor in American
on
Work, Oct., 1919, 38: 590-600; W. J. Ashley in Quart. Rev.,

Effect of the blockade

2.

World's

Oct., 1915,

German

3.

444

224:

ff.]
finance.

war

[W. S. Ford in FortnightlyRev., Apr., 1919,

616-624.]

111:

[W. J. Shepard in Amer.

government in Germany.
Polit. Sci. Rev., Aug., 1919, 13: 361-378.]
5. Partition of Austria-Hungary.
[Seymour in What reallyhappened,
4.

The

new

etc.,chap. 5.]

[Bowman, chap. 15.]

enlarged state of Rumania.
7. Jugo-Slavia. [Bowman, chap. 14.]
of Fiume
and the Adriatic.
8. Problem
really
[Johnson in What
happened, etc., chap. 6.]
9. Czecho-Slovakia.
[Bowman, chap. 13; M. O. Williams in Nat.
Geog. Magazine, Feb., 1921, 39: 111-156.]
10. The new
Hungary.
[Bowman, chap. 12.]
11. The republicof Austria. [Bowman, chap. 11; Fortnightly Review,
Century, 1920, 87:
April,1919, 111: 625-635; S. Hoare in Nineteenth
6.

The

409-423.]

[Lord in What reallyhappened, etc.,

chap. 4;
Lord, Some problems, chap. 5.]
13. Problems
of the new
Poland.
[Bowman, chap. 19.]
14. Agriculture and
[Arctowski, Geog.
landownership in Poland.
Rev., Apr., 1921, 11: 161-171.]
12.

The

resurrection of Poland.

in Haskins

15.

Elements

and

in the Russian

revolution.

[Sir S.

Buchanan

nightly
in Fort-

Rev., 1918, 110: 819 ff.; P. Vinogradoff in Quarterly Review,

184-200.]
July, 1917, 228:
16. The
Soviets.
[Spargo, chap. 2, 3.]
17. The land question and the revolution.
[Spargo, chap. 5.]
the Soviets.
18. Industry under
[Spargo, chap. 8.]
19.

Nationalization

of

industry. [Spargo, chap. 9, 10.]

CENTRAL

AND

EASTERN

EUROPE,

647

1914-1920

BIBLIOGRAPHY
The
the

German

period
of

the

other

German

war,

and

Commerce,

Misc.

this

trade,

covers

finance,

and

in

the

annual

the

Y.,

and

On
all

the

C.

N.

Y.,

The

of honest

and

English

on

stood

central

in

J. J.

For.

Krai,

and

Dom.

compilation;

substitutes, cartels,

B.

and

and

ot'

topics,

encyclopedic
Poland;

The

the

as

Polish

edited

people,
and

in

Poles,

Europe
Chicago

volumes,

in

history,

the

peasant

in

agents.

account

her

in

man's
States-

consular

Poland

Znaniecki,

is mainly
accounts

on

such

English

Boswell,
on

F.

and

Europe

depend

to

in annuals

entitled
A.

interests

Questions

eastern

have

brief

the

on

the

and

of American

study

of

by
Labour

the

John
be

the

of

criticism

Bolshevism

of the

N.

the

question,

revolution,
and

International

conditions

industrial

of

those

1920.
N.

as

filled with
inclined

Bureau

of

Russia,

to

evidenced
Albert

the

1921;

Russell, The
Hindus,

G.

gives

prepared

London,

favor

Williams,

London,

Maurice

Labor,

in

facts,

by

H.

Bertrand

Y., 1920,

questionnaire

in Soviet

conditions.

book

such

failure

greatest

as

Y., 1920;

London,

Bolshevism,

The

crisis in Russia,

The

republic,

**

is amply

revolution,

Ransome,

and

the

Spargo,

recommended

well

failure

peasant

version

can

Russian

agrarian

the

light

and

tions
publica-

chapter.

gathered

Piltz,

Arthur

theory

material

*nuch

found

English

1916;

partisans

The

Russian
of

E.

1920,

Y., 1919;

Malone,

practice

of

revolution

The

L.

in

S. Thomas

Bolsheviks.

N.

and
of

convenient

settlement

preceding

elaborate

W.

general

writings

the

may

an

in

Lenin,

be

consult

London,

by

will

reports

on

Russian

has

Snow

during

the

to

1919-1920.

the

history,

which

D.

Bureau

materials

peace

statistics

by

and

Boston

of trade

look

to

C.

found

the

states

on

reader

etc.,

1919;

obliged

1918,

be

raw

of

readers

version

America,

1918,

65, will

of

new

and

Book,
the

industries,

is

Washington,

effect

the

on

English

N.

the

encyclopedias,

Poland

information.

manufacture,

languages;

Year
On

for

no.

bibliography

foreign

student

Austria-Hungary

Literature
in

the

war,

Series

to

and

the

official statistics

no

etc.

References

Germany

and

governments

trade

labor,

supplied

government

of

good

from

entitled

count
ac-

mentary
docuin

the

1920, throws

LVIII

CHAPTER
THE

771.

the

in the

American

of

will appear

specie is

The

table

reducing

commercial
in

1914, and

UNITED

from

convenient

1 milliard

by

during

following

table,

in

movement

both

STATES,

1914r-1920

of dollars; calendar

Report

not

the

years,

which,

the

war

appears

for

sons
rea-

of merchandise

exports

have

I have

altered
total

in
the

excess

the

corrected

accord

1920,
specie are

and
the

1914, to accord
figures of excess
to

31)

Currency,

merchandise

both

fiscal year.

and

ending Dec.

Comptroller of

figure for exports

statistics,and
for 'total

of

because

source

by calendar,

enumerated

accompanying

OF

is taken
a

States

The

"

indicated.

(Values in millions

vol. 1, p. 14,

United

immediately

later,the

TRADE

the

peace

of the

1914-1920.

Commerce,

of

years

statistics

of

of

commerce

few

that
and

the

of

course

and

Statistics

1914-1920

STATES,

UNITED

with

table
with

by

fied
veri-

of exports
this

tion.
correc-

to U.
S. Statistical
figures by reference
Abstract, 1920, p. 773, should not be dismayed by finding there the exports
for 1915 listed at 2,555 millions; it is another
of a milliard
dollar
example

The

student

who

checks

the

error.

648

THE

772.

of
Interpretation

this table

should

covering the
only

be

STATES,
the

Statistics.

of trade

course

those

compared

from

649

1914-1920
With

"

the

figuresof

given in section

1860

663,
Attending

1913.

to

the

the reader
figuresgivingthe value of merchandise
that the imports in the earlyyears of the war
remained

to

will note
about

UNITED

their former

at

part of the war,

and

level,that they

increased

in the latter

particularlyafter its close. The

exports,

the other

hand, showed the effect of the war almost from

its beginning. They had first exceeded
1 milliard dollars in
1896, and had grown
steadilywith the growth of population
on

and

with

the rise in

passing the mark

shot

now

to the increase

of 2 milliards in 1911.

in

gold output,
that level they

From

3, 4, 5, 6, 6, 8, 8 milliards in the individual

historydoes not provide another example of such prodigious

years;

to

up

growth.
imports, which

As

had

result the

in recent

of the increase

Part

exports,

of

was

the
correction

war.

To

in the

due

course

"index-number"

to

of the

wholesale
the average
1913-1914.
the years

been

dollars

value

of exports

about

half

over

milliard,

year.

imports and of
the rise in prices which accompanied
value,

both

the student

enable

for this factor

excess

years

4 milliard

1, 2, 3, even

to

grew

pricesdue

of

Department

priceswere
Evidently

in any

the necessary
table suppliesthe

to make

of the

column

of

Labor, showing what

compared

year

with

were
prices in 1918-1919
double what they had been just before the war, the figuresfor
the value of trade in those years should be divided by 2 to

if

give an idea of the actual quantitiesof goods exchanged.

Applying this process of correction the student will note that
of the war,
the volume
of imports actuallyshrank in the course
of reduction,
but that the exports, in spite of this process
reached

level which

had

fact the

figuresfor exports in

do not

take

from

the

account

not

1918

before

dreamed

of the great

quantitiesof

stores

country in transports of the government, and

reported to the customs

raised by perhaps one-third

of.

and for parts of 1917 and

In
1919

shipped
fore
there-

the figuresshould
officials;

not

be

been

to

give a comprehensive idea

650

of the total
national
773.

did the

HISTORY

OF

COMMERCE

quantityof goods sent

out in that

periodof greatest

exertion.
in value

Increase

thoughts of

of exports to

the whole

world

Europe.

"

Not

only

in

Europe during
of the world flowed thither,in unexampled
the war; the wares
sons
volume, to be used to destroy and to be destroyed. For reacut down
their
alreadygiven the European belligerents
exports,and

strove

far

so

of their imports. The

While
the

it

as

they could

United

States

stillneutral,and

was

center

to increase the volume

was

in the

tion.
posi-

reverse

likewise after it entered

from which the

(April,1917),it was the great source
European states suppliedthe needs which they had not time
or
Although the larger part
strengthto supply themselves.
war

Europe was cut off by the blockade

and by the difficultiesof transportation,the exports of the
United States to Europe, which before the war
had run a little
increased to 2, 3 and 4 milliards. In the first
1 milliard,
over
full year of peace, 1919, when
the larger part of Europe was
ing
endeavoragain open to trade,and the exhausted peoples were
5 milto restock,the value of exports to Europe exceeded
of central and

Hard

of eastern

dollars in value.

774.

Increase

in value

of

exports

to

other

continents.

"

figuresof the preceding section give,however, but a partial

which
the
of
the
and misleading idea
peculiarposition
in the economy
United States assumed
of the world during the
In spite of the great increase in value, and increase in
war.
quantity,of exports to Europe, the proportion of the total
little. As shown
to Europe rose
exports which went
very
above (sect.708), the United States had tended, in the years
The

before the war, to distribute its exports more

widely. The proportion
which exports to Europe formed of the total dropped
from
to

four-fifths in the '80's to

about 1900, then

three-quarters

60 per cent.
two-thirds; in 1913 the proportion was
The figuresfor the war
period were
71, 69, 69, 63; in

the

figuresdropped

to

54.

It is apparent that

great expansion of exports in this period,not

but to other parts of the world

as

well.

there

1920

was

only to Europe

652

ties which

1917

by
hand
The

United
the

the

made

was

in

importance; before the

war

had

consume

that

it

dollars in the years

it rose
1
to about

an

produced.

The

In

milliard; in

the

to

the

about

earlyyears

of peace

years

million

500

of the

it amounted

1918

trade which

expansion was

export of foodstuffs.

export of foodstuffs,

declined

1910-1913.

part of American

the other

period immediately preceding

proportion of
ever-increasing

in the first two

and
milliards,
figure.
2

total exports, but

one-eighth. On
in the

they

in the

tended

to

war

about

great increase

States

of the

one-third

manufactured, had

and

That

materials

only

up

foodstuffs

raw

the total exports. Raw

for about

they

there

up

declined

accounted

COMMERCE

OF

togethermade

for manufacture
had

HISTORY

almost

to

it exceeded

showed

war

the most

that

ordinary
extra-

Before

export of manufactures.

aged
exported had averabout 700 million. In 1915 the figureexceeded
1 milliard;
in 1916 and succeedingyears, 2 milliards;in 1920, 3 milliards.
The
growth was
particularlynoticeable in trade with nonindustrial countries,which had previouslyrelied in large part
and found now
the supply
on
wares
Europe for manufactured
from that source
from the
cut off. Exports of manufactures
United
States to Asia, South
America, and Africa increased
about five-fold,
comparing the years 1914 and 1920. Exports
of manufactures
increased
to
even
Europe, including such
important items as railroad supplies,agricultural
implements,
machinery,petroleum products,etc. ; and it was estimated that

the

the value

war

in 1920
demand

United

was

the United

States

Effect
States

as

the

has

of

the

made

the greatest

war

of that

very

source

upon

its commercial

its exports, and

it renounced

in the

wares

already been

reverse

supplying one-third of the total

was

for manufactured

777.

War,

of finished manufactures

of

the

trade

of the

import trade.

contribution

said,by following a

to

world.
"

The

the World
which

course

panded
European belligerents;it exrestricted its imports.
Of necessity

of the

large part of that trade which

supply,the

trade in

had

been

imports from Europe.

THE

Before
per

cent

the

war

seventh

the

UNITED

STATES,

653

1914-1920

Europe supplied about half of our needs (49

of total value of imports, 1913). In the last year of
to less than
imports from
Europe amounted
oneof the total (14 per cent in the year ending June 30,
war

1918). The

varied

manufactures

which

had

we

been

used

to

import from the industrial states of western

no
Europe were
luxuries
longer in .the market.
were
Many of these wares
but not involving
appealingindeed to the taste of the consumer,
any

serious economic

when

consequences

the supply failed.

Others, notably the chemicals and the specialkinds of glass

and
had
porcelain which
previously been imported from
Germany, played an important part in industrial processes,
and had if possibleto be replaced. American
manufacturers
entered a field which the Germans
had long regarded as their
own
peculiarprovince,and which,indeed,they would probably
if they had not broken the
to dominate
have long continued
peace.

and

diversification of

industry by
but also of many
the demands
not only of the American
foreign
increased proportion of
the country imported an
consumers,
crude materials for use in manufacturing as the proportion of
finished manufactures
ready for consumption declined. Raw
wool, raw silk,crude rubber and items of that character rose
toward
the top of the list of wares
imported, and gave a new
Forced

to

importance
778.

an

to

The

extension

the trade

excess

value

with

South

of

exports

America
over

and

Asia.

imports.
"

The

war

increase in the
alreadygiven,to an enormous
ning
value of exports over
imports. The table at the beginexcess
without parallel
of the chapter presentsfigureswhich were
of any other country: an annual
in the historyof this,
or indeed
in the years 1915-1920
averagingover 3 milliard dollars
excess
amounting to
for the period 1914-1920
a year,
a total excess
The
18.5 milliards.
following table shows how unequal was
balance in trade with the different continents,and indicates
our

led,for

the

reasons

close connection

European

war.

of the great

excess

of exports with

the

654

BALANCE

HISTORY

TRADE

OF

IN

(Calendaryears;

imports, [-3, or

of the United

alone

States

North

1920.

America

large"favorable"
that

accounted

South
as

America

had

was

millions

STATES, 1913-1920

of dollars,giving excess

of exports, [+], of the U.

the

S.)

of exports to

excess

value of

the

credit

milliards in the years 1914the only other continent showing a

20

over

was

Canada

for most

of this.

and

Asia

with

UNITED

OF

balance,and

usual

been

COMMERCE

MERCHANDISE

figuresin

Taking Europe

OF

the

was

The

in the past, but

to

in trade

balance

againstthe

was

singlecountry

an

United

States,

which

passed

extent

of any previous experience.

Items in the international balance

with

the bounds
779.
In

approaching

United
most

the

subject of

the

before

balance

the

of trade

war.

of the

during the war it is desirable to have in mind the

national
important items which, before 1914, constituted the interStates

credits and

debits

of the

country. The

table below

picturesthese items in the form of a simple balance sheet,as

The figuresare given in round
estimated
in 1910.*
they were
no
pretence to statistical
indicatingthat they make
sums,
merely as showing the
they are to be understood
accuracy;
of several items no
In the case
tendency of a normal year.
*

I have

National
No.

adapted the figures from

Monetary
579,

pp.

Commission,
153-213.

61st

George Paish to the

DocuCongress, 2d session,Senate ment
the report of

THE

UNITED

STATES,

than
to do more
attempt is made
that might be expected,year in and
BALANCE

INTERNATIONAL

OP

UNITED

THE

millions

(Figures in

655

1914-1920

indicate the net

year

balance

out.

STATES

BEFORE

WAR

THE

of dollars)

The most
Explanation of the "favorable" balance.
important feature of the table is the great credit item due to
the excess
of exports over
imports. Ever since 1873, with
rare
exceptions(only four years altogether)the United States
has shown
of this kind, a "favorable"
balance
a credit balance
780.

as

it

was

"

called in the

days

when

people believed that it would

able"
country. Actually,the "favor-

bring preciousmetals into the

balance impliednothing more
country, bound

to

export

more

than

than

that

we

could

we

were

import

debtor

from

the

of the

world, to meet our obligations.The character of

these obligationsis indicated in the column
of debit balances.
ocean
Foreignersdid more
carriagefor us than we did for them,
and had a balance due to them
that account; the figure
on
in the table would be considerablylargerif the freightbill had
not been partiallyoffset by the considerable
purchases of coal
and stores made
by foreignships in our ports, which counted
rest

of

course

of

private persons,

to

the credit of the United

States.

largelyof immigrants

The

to this

remittances

country sent

656

HISTORY

OF

COMMERCE

to a surprisingly
agents or relatives in their old home, amounted
large aggregate. Funds would be remitted,say, by a
the foreign government
postal money-order, but of course

to

this order would

that honored

which
post-office,

exports to meet

would

dividends

of

payments,

have

the debt.

of American

expenses

So

depend

to

in the

travelers and

we
European investors,

and

made

them

to the American

on

our

of the

case

the claims
bound

were

so

to

on,

to make

much

imports.
of specie in the periodof
781. Movement
part of the total exports of the war period was

heavy

cotton, copper,

value

surplus of
other items,

for interest and

by deliveringour

petroleum products, and

the value of

look for payment

exceeding

our

the

war.

free

Some

"

gift. The

donated
by
food, clothing,and medical suppliesthat were
privateindividuals,
by associations,and by the government,
demanded
commercial
and no
return
no
acknowledgment of
indebtedness
from the foreigner. Large as were
these giftsin
absolute value,they can
be omitted from consideration; they
have formed
a considerable
portionof a milliard and still
may
be negligible.For most
in the
of the exports that appear
commercial
returns the foreignerhad to pay in the present or
promise to pay in the future.
One

of payment

means

immediately precedingthe
banks, nervous

because

of

hard

was

outbreak

cash.
of the

the few

In

years

the

European
the political
outlook,had been trying
war

to build up

drawing gold from

United

July, 1914, over

their reserves, and had been

In the single month
States.
of

000,000
business

were

shipped from

men

owed

at

York.

New

this time

several

$40,and

bankers

hundred

million

lars,
dol-

York
1914; the city of New
owed
$80,000,000. For a brief period sterlingexchange rose
far above
the normal
American
an
was
willing to pay
par;
over
$5 for the right to a pound sterlingpayable in London.

maturing

Soon

before

the end

American

the

of

the tide set in the other direction.

of the

United

States

1.8 milliard dollars.

at

the

In 1920

of the

outbreak

it

was

The

2.7

total
war

gold stock
was

about

milliard,roughly one

THE

third of the

Europe

world's
the

In

purposes.

UNITED

STATES,

total stock

interval

the

of

gold

United

1.2 milliard dollars in

over

657

1914-1920

for monetary

used

States

gold, of

received

which

it

from

kept

the

largerpart.
to the table at the

Reference

beginning of the chapter will

show that silver flowed in the opposite direction.
The United
States as a silver-producing
plus
country, has had regularlya surto export, but parted with the very largesums
appearing
the
in the table in
of liquidating
as
a means
years 1918-1919
part of the balance
be

the East

shipped to

bullion in the silver

only fortycents, was

Securities

782.

employed by
them

to

was

so

Asia.

The

demand

strong that for

and

loans.

"

Another

the peoples of Europe to meet

abroad.

which so recentlyas
dollar,
than
actuallyworth more

the sale in the United

was

owned

owed

for silver to
brief

periodthe

1915

was

worth

dollar in

gold.

of payment

means

the balance

States of American

against

securities

It is

supposed that in the period 1914-1920

Americans
repurchased 4 to 5 milliards in value of stocks and
bonds that had been issued in the United States and held by
stock of the U. S.
foreigners.For example, of the common
one-fourth
of the
Steel Corporation 1,286,000 shares, over
in 1914 held abroad.
issue,were
had dropped to 484,000, and
number
total

At

the end

in 1919

of 1918

it declined

the
still

further.
liard
investors,furthermore, purchased several milof foreign, mainly European securities,
dollars worth
issued by governments, by municipalities,
by railroads,and
American

enterprises.Evidently the European, in debt to

the sea, could square
the American
for the goods sent across
the account
by sellinghis stocks and bonds in this country
and paying the proceeds to his creditor here.
government,
important, the American
Finally,and most
of the United States (April,1917)
after the entry into the war
took upon
itself the task of financing the purchases made
by
by

business

associated European governments

to

them

sum

amounting

to

in this country, and

nearly 10

milliards

advanced
of dollars.

658

July, 1921,

In

the

made

the advances
considerable

sums

HISTORY

the

under
due

COMMERCE

stood

account

material

surplus war

OF

follows, includingonly
Liberty Loan acts, and omitting

the

to

and

as

United

for grain

States

for

the

sale of

supplied to impoverished

districts.
(Figures in
United

millions

of dollars.)

Kingdom

4,166
2,951
1,648

France

Italy

348

Belgium
Total

of these items

9,113

Total

includingitems omitted

9,435

Position of the United

783.

States

as

creditor

country.

"

possibleto describe with perfect precision

the process by which
the European peoples arranged to pay
for the excess
exports of the United States,the generalsituation
is well enough known
conclusion of the greatest
to warrant
one
significance.The process resulted in turning the United States

Although

from

it is not

debtor

to

country

creditor country.

the 10 milliard loans made

and

take

account

by the American

of the

only

investments

citizens in this country, it is apparent

at the close of the war,
to

other

countries

entitled to demand
enter

cannot

on

instead
account

such

of

after the
over

made

every

from

there would

exports. The

be in normal

States
balance

dividends, was

items
So many
that this singleone

abroad.

generalinternational balance
taken as determiningthe outcome,

war

regard
dis-

government,
by private

year

of interest and

balance

if we

that the United

owing

into the
be

Even

years

and
an

deciding that
ports
of im-

excess

country will doubtless remain

debtor

(privateremittance, tourists).At the close

of the war
it certainly
interest and dividends
not collecting
was
It
in the form
of an excess
of imports, as the figuresshow.
continued
to invest capital in foreign countries,particularly
in Europe, in North
America, and in South America; the
capital value of the loans far exceeded any annual interest
charge on them.
Perhaps this process will continue in the
under

some

heads

660
matter
as

HISTORY

of urgent

COMMERCE

OF

drawn

importance, as shipswere

transports and the ravages

established

of the submarine

in 1916

into service

extended.

The

Shipping Board, for the construction

of ships as a publicenterprise,
and when
it entered
the war
in 1917 it proposed to make
of its most
one
important
contributions to the war
by the supply of new
tonnage. The
results are
presented in the statistics of the accompanying
government

table.
VESSELS

BUILT

(Figures in thousands

IN

THE

UNITED

STATES,

of gross tons; fiscalyears

1914-1920

ending June

Figures of total tonnage include gas vessels,canal

in the table.
barges, not separatelyenumerated
*

786.

American

shippingat

the close of the

the figuresof the table with the years

that each year of the table ends June

apparent that the contributions

the dearth

of

thirtieth.)

boats

and

Comparing
of the war
(and noting
30, not Dec. 31) it is

of the United

war

"

States to relieve

of real importance in the last year

the new
industry developed slowly and

shippingwere

of the war, but that

reached its maximum

clared.
only after peace had been deattained
in
The
peak of monthly production was
about
400,000 tons of sea-going steel
August, 1919, when
dustry,
constructed.
The sudden
steamers
expansion of the inwere
called
demanding the trainingof nearly a million men
from other occupations, was
expensive. In three
necessarily
expended about 3
years, ending in 1920, the Shipping Board
of output

THE

milliard

dollars,a

STATES,

UNITED

greater than

sum

total shipping of the world

in 1914.

661

1914-1920

the
As

book

value

of

the

result of its

activity
about 8 million tons
the government owned
ocean
shipping.
followed the war
In the period of depression which
fullyhalf
of this amount
was
idle,and the operation of ships by the
An act of 1920
government proved to be a losingventure.
directed that the ships be sold to private owners, but the close
of the period left their future stillin doubt.
of the
To
787. Foreign exchange at the close
war.
the commercial
understand
position of the United States at
to return
it is necessary
the close of the war
again to questions
and foreign exchange. The
situation appears
of currency
in
the followingtable.
a

of

"

ANNUAL

AVERAGE

RATE

OF

EXCHANGE

IN

NEW

YORK

for example, that the Ajnerican in

signifies,
York
New
could buy in 1919 for $90 or in 1920 for $75 as many
had cost him $100 before the war;
that he
as
pounds sterling
could pay a debt at Rome
dollars in 1919,
with half as many
with a quarter as many
dollars in 1920, as he would have had
to pay in 1913.
During the war the rate of exchange, like many
other prices,was
subject to government control; the figures
for 1919 and 1920 show the tendency of the rates when
they
The

table

left free to

were

represent the actual

currencies in international
788.

table

value

of the

different

transactions.

Effect of depreciationin stimulating exports.

shows

compared

with

great depreciation of the European

the American.

The

United

States

"

The

currencies
had

had

662

HISTORY

credit

great expansion of bank

after

had
all,

the dollar

OF

after the war, but,

stock of gold the means
to maintain

in its enormous

during and

gold basis,while
varying amounts

on

the

in circulation

of this situation

reactions

COMMERCE

manifold, but

worth

are

the issue of paper money

for example, the value of the mark

sharply than

An

The

dollar.

than

the

but

Germany,

mark

not

dollar's worth

transactions

buy

buy

were

as

much

of marks

market.
for

marks

more

before

as

would

buy

in

more

before; and the importer would find a transaction profitable

which previously he would
have been unable to undertake.
Unequal depreciation of this kind acted as a stimulus

premium on exports from Germany, which

felt by competing producers in other countries.
or

789.

situation

Effect
had

upon

also

loans.

the

important

an

Let

international

us

effect

for

assume

the loan it would

to repay

on

the

course
case

it borrowed

repay

seriously

was

market.

money

example the

If
desiringto place a loan abroad.
it would
get gold dollars and would
came

The

in the home

able to

be

would

paper.

particular attention.

purchasing power

importer would

American

the

its

had

continued,as in Germany
in foreignexchange fell

When

more

countries

of irredeemable

international

on

of them

two

European

of international
of

Brazil,

in New

feel assured
it in the

The

"

York

that when

same

it

currency,

If, on the other

approximately equal value.
it
of pounds sterling,
in London, in terms
hand, it borrowed
would
pounds, at a discount in comparison with
get paper
gold, but must look forward to repaying the loan with gold
in putting
units if in the interval the English had succeeded
their currency
on
a
gold basis and thereby bringing their

with

units

of

exchangeto

par.

Even

if Brazil desired to make

the loan for

European market it would

do better to buy dollar credit in the first instance, and buy
with that the foreigncurrency that it needed; and to accomplish
York
this end it would
be willingto pay higher rates in New

expenditurein

financing some

than

in London.

result of the

war

It would
New

York

the

be
will

hazardous

to

replaceLondon

assert
as

that

as

the world's

THE

UNITED

STATES,

663

1914-1920

market, but it is clear that the position of London

money

seriously
prejudicedso long as Englishcurrency
in comparison with gold.
QUESTIONS
1.

Chart

2.

Divide

the statisticsof trade

in

as

the

results

enter

volume

on

chart

of imports and

3.

What

was

the

4.

What

exports of the

with

discount

previous exercises.
exports by the

figure fop the

(1.01,1.24, etc.,),
reducing values
so

year

TOPICS

the figures of imports and

pricelevel of
of 1914, and

AND

is at

is

dotted

line that

to

the

level

gives approximately

exports.

relative

importance of foreign and of domestic

trade in the United States in this period? [B. M. Anderson, in Annalist
of N. Y. Times, Jan. 3, 1921, 17:9.]
(fc)increased
1920, Table
1920.]
What

5.

of domestic

exports, quantities and

exports declined in quantity and

Compare
beginning and

at the

Domestic

in value,
States, (a) increased most
period? [StatisticalAbstract,

quantity, in this

the exports from

6.

with

in

most

United

at the end

Misc.

Commerce,

the world, 1914-15

and

Series,no.
1918-19.

years

1911-

[Same].

in value?

States to

the United

of the

values, by

a particularcountry
[Use Bureau of Foreign and

war.

and

38
The

106, Trade

no.

student

may,

for

of U.

S.

example,

British India,.]

take

Argentina,Chile, Japan, or
Using sources
given above, report upon the history of a particular
import, or on the imports from a particularcountry, during the war.
in American
met.
8. How
the dyestuffs crisis was
[E. Hendrick
World's Work, March, 1918, 35: 531-535.]
can
9. The problem of potash and nitrates. [F. P. Stockbridgein AmeriWorld's Work, May, June, 1918, 36: 28-34, 191-197.]
ciples
10. The balance of international payments.
[F. W. Taussig, Prin7.

of Economics,
11.

The

in note
12.

The

vol. 1, chap. 33.]

trade balance of the U. S. before the
to

Probable

American

ence
[G. Paish, refer-

779.]

sect.

U.'S.[J.R. Smith,
Foreign Trade Council, N. Y.,

tendencies in the trade balance

trade

war.

balance, National

of the

1919.]

[G. E. Roberts,National
City Bank, Foreign Commerce
Series,no. 2, N. Y., 1920.]
14. American
loans to Europe.
[Noyes in Scribners' Magazine,
61: 131 ff.;Atwood
in American
World's Work, 33: 243-250, 399-403.]
of ships.
to the construction
methods
15. Application of American
13.

Function

of

imports in our

[Hurley,chap. 5, 8.]

foreigntrade.

664

HISTORY

OF

ships. [Mattox,

16.

Concrete

17.

Development

of

COMMERCE

chap. 13.]

shipyards.

[Hurley, chap. 6;

Mattox,

chap.

15.]
shipping problem

The

18.

[F.

investments.

Foreign

19.

close

of the

[E. R.

war.

Johnson

13.]

chap.

in Friedman,

the

at

Sisson

H.

in

Friedman,

chap. 19.]

BIBLIOGRAPHY
In

addition

of the

to

previously cited

sources

and

of Foreign

Bureau

Domestic

be made

must

Bulletins

Mint,
under

chapter

54

of

the

international

Washington,

1922.

military and

the

narrative

Seymour,

Germany,
F.

The

organized
R.

F.

for the

Wilson,

E. N.

general
*

Building the

The

The

of

The

Commission,

should
as

Bassett,
S. in the

have

those

war

to

in mind

by Charles

"** Our

World

with

war

War,

1918;

and

found

in

activity

commercial
Benedict

Crowell

and

to

giant hand
road

to

The

France,

vols.; The

armies

dustry,
of in-

subject of shipping is covered

marine,

fleet,Cleveland,

emergency

Tariff

New
Haven, Yale University
war,
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went

merchant

new

Depreciated

during the

such

industrial

will be

war

America

U.

given

on

commerce

S.

of the

S., 1921, chap. 44-56.

of

vols.; Demobilization.

Hurley,

J.

1921;

account

resources); The

natural

monograph

accounts

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conduct
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and

in

McMaster,

Recent

complete
**

subject

reference

References

by the U. S.

issued

was

Wilson,

J. B.

1919;

most

trade

presented

Woodrow

L. Paxson,

politicalhistory of the period, and

as

**

the

finance

Board.

Reserve

Federal

relate the history of

should

student

the

15, 38, 63,

On

international

applicable here.

also

are

exchange and
The

numbers

by countries.

Series

reports of the Secretary of the Treasury, Director

to

and

and

foreign exchange

Miscellaneous

Commerce,

78, 106, etc., giving details of foreign trade

of gold movement,

the

see

N.

1920, and

Y.,

1920.

On

the

W.

by

C. Mattox,

various

problems

of reconstruction

the symposium
edited
see
by E. M. Friedman, American
problems of reconstruction, N. Y., 1918, and Isaac Lippincott, Problems
of reconstruction, N. Y., 1919.
dustry
inspecial topics of commerce,
Many
and

finance

commerce

are

treated

(e.g.,dyestuffs in Bureau

Series,numbers

in

periodicals,in reports of banks

series of National
of

96, 11, and

City Bank)

For.

121).

and

Dom.

and

in government

Commerce,

eign
(e.g.,For-

reports

Special Agents

OF

BOOKS

CITED

BY

OF

BOOKS

CITED

BY

TITLES

TITLES
NOTE.

not, in most
to the

of which

Books

"

cases,

by

bibliographiesand

no

already been given are

following list,which is supplementary

means

includes only titles of those books

that

so

different

many

which

repetitionof the full title would

cited in

ABBREVIATIONS

the full titles have

in the

included

665

ABBREVIATIONS

substitute for them.

have

waste

been

space,

cited
and

so

The

times

many

which

places that the reader's time would

list

have

been

be wasted

hunting for the entry of the full title. I have thought it unnecessary
to give full titles of standard
narrative histories,
of current
manuals
in
the allied subjects of history and economics, and of local sources
in the
in

history of the United

Adams,

Charles

States.

F., Jr. Railroads,their origin and

problems. N. Y.,

date.

no

Adams, George B. Civilization during the Middle

ner,

Ages. N. Y., Scrib-

1894.

A. L. A. (American

Library Association) Catalogue. Washington, 1904,

and

later editions.

American

railway, The.

N.

".rmitage-Smith, G. The
Ashley, William

Y., Scribner, 1897.

free-trade movement.
British industries.

J., editor.

London,

1898.

London

(N. Y., Longmans),

1903.

Ashley,William
2

English economic

J.

history. N. Y., Longmans,

1892-3,

vol.

Ashley, William J. The Tariff problem. London, 1903.

N. Y., Putnam, 1886.
Baring-Gould,Sabine. Story of Germany.
of nations. N. Y., Scribner,1899.
Bastable,C. F. Commerce
N. Y., Putnam,
Prince Henry the Navigator.
Beazley, C. R.

1895.

policy of England toward the American

colonies. N. Y., Macmillan, 1893, Columbia
Studies,3, II.
N. Y., 1912, 2 vol.
Beer, G. L. The old colonial system, 1660-1774.
Beer, George L.

Commercial

Bishop, J. Leander.
1861-68.

manufactures.

History of American

Philadelphia,

3 vol.

G.
Bourne, Edward
Bourne, H. R. Fox.

Spain

Romance

Bowker, R. R. and George

politicalscience.

in America.

N. Y., Harper, 1904.

of Trade.

lies.

Reader's

London, no date.
and
guide in economic, social,

Y., Putnam, 1891.

Bowley, Arthur L. England's foreign trade in the nineteenth
London
(N. Y., Scribner),1893.
N.

century.

666

HISTORY

Isaiah.
The
Bowman,
Yonkers-on-Hudson,

Bruce, Philip A.

OF

COMMERCE

world, problems in politicalgeography.

new

1921.

history of Virginia. N.

Economic

Y., Macmillan,

1896, 2 vol.
N. Y., Holt, 1901.
Biicher, Carl. Industrial evolution.
G.
S.
Early transportation and banking enterprisesof the
Callender,
States.
Quarterly Journal of Economics, Boston, 1902-3, 17: 111162.

history. N. Y., Macmillan, 1902 ff.

Cambridge Modern
of
domestic
and foreigncommerce
of the United States,
Carnegie History
R.
T.
W.
Van
G.
G.
Johnson,
by Emory
Metre,
Huebner, and D. S.
Hanchett.
Washington, 1915, 2 vol.
Chapman, S. J. History of trade between United Kingdom and U. S.,
London
(N. Y., Scribner),1899.
Chapman, Sydney J. Work and wages.
London, Longmans, 1904-1914.
3vol.

European background of American

P.
Cheyney, Edward
Harper, 1904.
The

Clapham, J. H.
Coman,

economic

Cambridge,

1815-1914.

Katharine.

development of

history. N. Y.,

France

and

Germany,

1921.

historyof the U. S.

Industrial

N.

Y., Macmillan,

1910.

Cornewall-Jones, R. J.

British merchant

Cunningham, William.

Rise

service.

London, 1898,
Growth
of English industry and
commerce.
Cunningham, William.
2
in
vol.
3.
Cambridge (N. Y., Macmillan), 1896-1903,
and

14s.

decline of the free-trade movement.

1904.

London,

Industrial

DeBow, J. D. B.

resources

of the southern

Orleans, 1853, 3 vol.

Depew, Chauncey M., editor. One hundred
N. Y., 1895, 2 vol.
Edgar, William C. Story of a grain of wheat.
effects of ship canals.
Fairlie,J. A. Economic

and western

States.

New

Philadelphia,1898, 11: 54-75.

and
Fisher,Sydney G. Men, women
1898, 2 vol.
Fry, Henry. History of North

manners

Atlantic steam

of American

years

N.

merce.
com-

Y., Appleton, 1903.

of Amer. Acad.,

Annals

in colonial times.

Phila.,

ner,
navigation. N. Y., Scrib-

1896.

Gastrell W.

S. H.

Green, Mrs. J.
1894, 2

Our
Town

R.

London, 1897.
the fifteenth century. N. Y., Macmillan.

trade in the world.

lifein

vol.

Hadley, Arthur

T.

transportation.N. Y., Putnam,

Railroad

B.
Matthew
Hammond,
1897, 2 series,no.

The
1.

cotton

N.

industry. Pub. Amer.

Y., Macmillan.

Econ.

1903.

Assoc.,

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HISTORY

OF

COMMERCE

Mongredien, Augustus. History of the free-trade

London, Cassell,no date.
Life of Richard
Morley, John.
1881,

Cobden.

movement

London

in

England.

(N. Y., Macmillan),

2 vol.

Nicholson,J. S. History of the English corn laws. London, 1904.

W. J. Story of American
coals. 2 ed., Philadelphia,
Nicolls,
Lippincott,
1904.

Ocean

steamships. N. Y., Scribner,1891.

Ogg, Frederic A. Economic
development of modern

Europe.

N.

Y.r

1917.
of commerce.
Romance
N. Y., Crowell,1897.
Oxley,J. M.
T.
W.
Earlier
commercial
policy of the U. S. Journal
Page,
Econ., Chicago, 1901-2, 10:161-192.

of Pol.

London
Palgrave, R. H. I. Dictionary of politicaleconomy.
(N. Y.,
Macmillan), 1894-99, 3 vol.
Porter, G. R. Progress of the nation. London, 1836 ff.,3 vol.; new
ed.,
1912.
London,
economic
Rand, Benjamin. Selections illustrating
history,4 ed.,N. Y.,
Macmillan, 1903.
of the Lords of the Privy Council on the trade
Report of a Committee
of Great Britain with the U. S., 1791. Reprinted, Washington, 1888.
Ringwalt, J. L. Development of transportationsystems in the U. S.

Philadelphia,1888.
The
Schmoller,Gustav.

mercantile

N.

Y., Macmillan, 1902.

The British trade book.
Schooling, J. H.
London, 4th issue,1911.
N. Y., Longmans,
Frederic.
of
Revolution.
Era
the
Protestant
Seebohm,
system.

1903.

Seeley,J. B. Expansion of England. Boston, Little,1900.

Political history of Europe since 1814.
Seignobos, Charles.
Holt, 1899.
Statistical annals.
Seybert,Adam.
Philadelphia,1818.

N.

Y.,

tion,
ediIndustrial efficiency.London, 1906, 2 vol.; new
Shadwell, Arthur.
1 vol.,1909.
London
Social England, ed. by H. D. Traill and J. S. Mann.
(N. Y.,
vol.
1894
1901
6
Putnam),
ff.,
ff.,
N. Y.,
merchant
marine.
Spears,John R. The story of the American

1910,

ed.,1917.

new

Statesman's

Stephens,H.

Year-Book.

Swank, J. M.

London

(N. Y., Macmillan), annual.

Story of Portugal. N. Y., Putnam,

M.

of iron.

History of the manufacture

1891.
2

ed.,Philadelphia,

1892.

Taussig, Frank

W.

Vernon-Harcourt, L.
1891.

Y., Putnam, 1897.

ner,
engineering. N. Y., Scrib-

Tariff history of the U. S.

F.

Achievements

in

N.

TITLES

T.

Ward,

BOOKS

OF

editor,

H.

William.

Waterston,
W.

Weeden,

B.

Houghton,
Wells,

David

Wells,

David

Williams,

Our

Ernest

Wright,

Carroll

E.

London,

1887,

history

of

N.

Y.,

England.

New

marine.

economic
in

"Made
of
Industrial

N.

changes.

Germany,"

modern
evolution

Putnam,

Helen.

The

vol.

Boston,

ed.,

countries.
of

Y.,

1890.

Appleton,

the

U.S.

Hansa

towns.

N.Y.,

Putnam,

1898.

1897.

London,
London,

1878,
N.

1895.

Zimniern,

1847.

London,

commerce.

social

merchant

Resources
D.

Victoria.

vol.

Recent

A.

J.

and

669

ABBREVIATIONS

BY

Queen
of

Cyclopedia
Economic

A.

A.

of

Reign

1890,

Wilson,

CITED

1889.

Y.,

vol.

Scribner,

INDEX
Aegina, 19.
Africa, circumnavigation of, 10,
130;
with England, 221 ;
commerce
with
the United
States, 491,
586, 651.

Agriculture,medieval, 35; modern,

139; recent,

280.

Agricultural implements, 569.

the Great, 10, 11, 21.
Alexander
Alexandria, 22, 27.
Alum, 82.
Amber, 103.
America, discovery of, 133.
Spanish, 180-184.
159, 194.
Amsterdam,
Antioch, 22, 27.
Antwerp, 74, 109, 154, 434.
Archangel, 267, 456.
Arkwright, 214.
Ages, 128. See
Asia, in Middle
also
China, India, Japan,
Levant.
Assize of bread, 51.

Assyria, 11.
Athens, 19 ff.
Australia,commerce

with

England,

cent,
Austria-Hungary, modern, 259; re436, 639 ff and Prussia,
.,

396.

Austria, Republic, 641.

Bagdad,
Balboa,

also

Flanders,

Netherland.

Bessemer,
Bill of

285.

exchange, 120.

Bismarck, 406.
Bodeck, John von, 142.
in Russia, 644.
Bolsheviks
Bordeaux, 74.
Boston, 489, 490, 548, 585.
Brazil, 185_.
Bremen, 257.
British Dyes, limited,615.
British North
America, 221.
British Trade
Corporation, 616.
Bruges, 75, 97, 105, 109, 115.
Bulgaria, 465.
Bullionist

policy,167.

Cable, submarine, 313.

Cadiz, 14.
Cabral, 133.
United
with
Canada, commerce
See
States, 549, 589, 651.
colonists.
also,England,
also
See
Canals, 211, 292 ff.
United
States, waterways.

Ship, 307.

361.

Babylon,

Barcelona, 99.
Belgium, 433. See

11.

84.
133.

Caprivi, 418.
Carthage, 14, 22, 27.
Cartwright, 214.
Cavour, 443.
"Central Europe," 419.
Chamberlain, Joseph, 392, 394.
Champagne, Fairs of, 65 ff
Charlemagne, 29, 57.
Charleston, 489, 548.
Chemical
industry, 286.
with
England,
China, commerce
363; with Russia, 268; with
United
States, 491, 495, 550,
.

Balkan

Peninsula, 465.
trade, medieval, 102 ff.;
modern, 252; recent, 350.
Baltimore, 489, 548, 585.
Banking, early, 120, 150; recent,
Baltio

589.

339.
671

672

INDEX

Coal,

ff.,319.

274

manufacture, in England,

and iron,215, 275.

in England, 359, 386; in United

States, 542, 560.

Cobden, Richard, 372, 425.
Coeur, Jacques, 232.
Colbert, 242, 246.
Colonial

policy,modern, 171;

Crimean

War, 456.
Crises, commercial, modern, 158;
recent, 339 ff.

Crusades, 86

ff
.

Cumberland
cent,
re-

354.

of

England, 226, 395; of

France, 234, 236; of Spain,
180, 183.
under
of
Colonies, see
name
mother

214
543.
States,

360; in United

country.

Columbus, 133.
116.
Commenda,
Commerce,
ancient, 9-29; early
val,
medieval, 36; late mediecent,
44; modern, 128; reand
World
270;
War,
593.

road,

515.

Currency,
Ages, 118.
and prices after 1500, 135.
in World
War, 600.
in Middle

Czecho-Slovakia,640.
Damascus, 84.
Denmark, 438.
with

commerce

Germany

in

World
War, 636.
Drugs in Levant trade,80.

Dyestuffs, 81,
East

India

287.

Company,

Dutch, 192,

196.

general,
obstacles

1.

to, 2.

conditions,4, 31, 123,

political
161.

English, 204, 220.

Egypt, 9, 85, 612 note.
Embargo in United States,507.
Engine, internal combustion, 277.

See also steam.

qualitiesof contemporary, 329.
risks of, 3.
England, medieval, 109 ff ; modern,
199 ff.; recent, 357 ff.; in
statistics,
recent, 271, 273, 396.
Commercial
val,
World
organization, medieWar, 607 ff.
115ff.; modern, 141 ff.;
cent,
agriculture,modern, 210; rerecent, 392 ff
371; in World
War,
Commercial
614.
policy, manorial, 35;
balance of trade,380.
municipal, 50; national,126;
colonial policy, modern, 226;
recent, 345 ff See also under
.

of

name

Companies,

country.

ern,
medieval, 115; mod144.

In

England,

recent, 395.

colonies,modern, 220; recent,

364.

202

ff.;in France,

234.

commercial

policy, modern,

joint stock,146 ff.

224; recent, 368 ff.; about

1900, 393 ff.;in World
War,

regulated,145.

618 ff.

Compass,
Constantinople, 29, 86, 87, 90, 92.

exports, modern, 209; recent,

358 ff.;1850, 378; 1900, 386;

Continental
system, 346 ff.
Copper in the United States,575.

imports, modern,

mariners',73.

Corinth, 19, 22.

Corn, see grain, wheat.
Corn
States,
(maize), in United
471, 472, 570.
Corn
laws, English, 371, 372.
Cort, Henry, 215.
Cotton, 82, 323.
in United States,503, 531, 566,
572.

in World

361;

611 ff.

War,

219

cent,
ff.; re-

1850, 379; 1900,

386; in World

War,

internal trade, 210.

labor in World
War,

609 ff.

617.

210;
manufactures, modern,
389; in World
recent, 359 ff.,
War, 615.
mercantile
organization,390,
616.

673

INDEX

development, 199, 212,

political
372.

ports, modern, 202; recent,

224; 1850,382.
ern,
shipping, medieval, 110; mod222; recent, 374; 1850,
381 ; in World

War,

599.

1700-1800, 205, 206;

statistics,
1801-1850, 358; 1850-1913,
377 ; 1913-1919, 607.
the United
and
States, 362,

383; policy,1789, 499.

Erie canal, 519, 557.
Evans, 295.

Fulton, Robert, 518.

Furs, in Baltic trade,103-252; from
America, 477.
Galveston, 585.
Genoa, 90, 98.
ern,
Germany, medieval, 95, 104; mod250; recent, 400; in
World
War, 636 ff.
commercial
policy,401, 404 ff.,
416 ff.

manufactures,

modern,

256 ;

recent, 401, 410 ff.

mercantile

Exchange, produce,modern, 154 ff.;

recent, 337.

organization,413.
eval,
political development, medicent,
124; modern, 255; re-

stock, 156.

400, 637.

Reparations, 627 ff.

shipping,414, 599.
409.
statistics,
and the World
War, 593, 597.
Gilds, craft,49, 140; in England,
many,
211; in France, 244; in Ger256; merchant, 47 ff.
Gladstone, W. E., 371.
Gold, in Australia, 342, 364; in
California,537.
and prices,about 1900, 341.
in the World
War, 600.
Grain trade, recent, 320.
Greece, ancient,17; recent, 465.
and

Factors,142.
Fairs, medieval,

163

ff.; decline,

337.

Feudalism, 32,

56.

decline of 123, 161.

103, 252.
Fish, in Baltic commerce,
in United States, 471, 476.

Fiume, 261,

640.

Flanders, 97, 109.

galleys,97.
Florence, 98 ff.,265.
dei Tedeschi, 95.
Fondaco
Foreign exchange, 603 ff.,651.
229 ff.;
modern,
France,
Flanders

Napoleonic
422

wars,

348;

ff.;in World

in
cent,
re-

War,

622 ff.

colonies,modern, 236; recent,

429.

commercial
policy, modern,
242; recent, 423; to United

States,501.
finances in World

War,

modern,
manufactures,
recent, 423, 426, 428.

politicaldevelopment,

625.
244 ;

eval,
medi-

cent,
123; modern, 255; re422, 427.
shipping,modern, 234; about
1800, 346; recent, 429, 599.
modern, 238; recent,
statistics,
429; in World War, 623.
the Main, 45, 156,
Frankfort on

trade

252.

Hargreaves, 214.
Havana, 183.
Hawkins, John, 202.
Henry IV of France, 234.
Henry the Navigator of Portugal,
130.

Huguenots, in England, 212; in

Netherland, 194; in Prussia,
258.

Hungary, Magyar, 641.

Huskisson, 370.

India, British,363.
Indigo, 81; in United

States,471,

474, 535.

257.

Free

Hamburg, 74, 156, 257, 335.

Handicrafts,36, 43, 48.
Hanseatic
League, 104 ff.;decline,

period,351.

Fugger family,

151 ff.

Industrial Revolution, 214.

Insurance, 159,335.

674

INDEX

Iron, medieval, 37; modern, 215;

recent, 283 ff.; as a ware, 319.
in England, 359, 379; in many,
Ger-

411; in the United

States, 542, 573.
Italy, medieval,
modern,
84;
263 ff.;recent, 442 ff.
agriculture,446, 449.
colonies,448.
commercial
policy,443.
manufactures, 445, 447, 449.
politicaldevelopment, 124,263,

Marseilles,18, 99.
Mercantile

system,

Merchant,

early, 39; medieval,

modern, 141; recent,

113;
"334.

commission, 142.
wholesale, 142.
Merchants

Adventurers, 201.

Staplers, 110.
Mesta, 179.
Mesopotamia, 10.
Miletos, 18.

Mobile,

442 ff.

167.

548.

medieval, 118; modern,

Money,
136; in World War, 600.

shipping,448.
387.
recent
commerce,.
conflict with Russia, 463.
the United
and
States, 550,

Japan,

589,

651.

Jews, ancient, 12; medieval, 84,

117; in Poland, 643.
Jugo-Slavia, 639.

Kay,

Napoleon I, 345.
Ill, 424, 427.
Nasmyth, James, 283.
Navigation, early, 13; medieval,
38, 72, 129; modern, 136;
recent, 302.

Navigation Acts, English,223,226;

reform, 373.
Necho, 10.
Netherlands, modern, 190 ff.; recent,

214.

Law, John, 159.

Leghorn, 265, 443.

colonial

Leipzig,257.

commercial

policy,432.

Levant
trade, 79 ff.
Linen, 83, 323.
Liverpool, 224, 383.
Loire, 58, 61.
London, 38, 41, 74, 156, 202, 224,
382.

manufacturers,

433.

Neutral trade, 347.

New
Orleans, 548, 585.
New
York, 489, 490, 547, 584.

Newspaper,

143.
11.
Norway, 439.
Nuremberg, 45.

Nineveh,

Louis

XIV
of France,
Lubeck, 105, 253.
Machine

431-ff.
and

235.

Odessa,

tools, 284.

ff.; in England,
many,
360; in France, 423; in Ger-

Machinery,

281

403, 410;

in United

States,481, 561, 574.

Manor, medieval, 34, 41 ff.
Manufactures, medieval, 42; town,
48; modern,
140; recent,
See also names
of chief
countries.
domestic
system, 211.
local distribution,
287.
281.

Magellan,

134.

Marco

Polo, 129.
Market, medieval, 33; town,
decline, 337.

51;

Orders

456.

in

Council,347.

Canal, 309.
Partnership, 116ff.
Pedler, 113.
Peel, Sir Robert, 370.
Panama

Persia,11.
the Great, 267.
Petroleum, 320; in United

Peter

States,

575.

Philadelphia,489, 490, 548,

Phoenicia, 12.
Piracy, 75, 136.
Pisa, 90, 98.
Pittsburgh,51, 61, 518.

585.

676

INDEX

ancient,

Tin,

medieval,

13;
from

Tobacco,
United

States,

medieval,

Tolls,

in

243;

Triest,

473,
in

255,

in

Europe,
States,

in

549,

585,

591,

da

Venice,

World

War,

and

Asia,

and

China,

and

491,

England,
499,

and

548,

West

501,

balance

canals,

545,

586,

exports,

trade,

519,

556.

567.

653.

530,

476,

580,

547,

584.

ff.;

90

115.

566,

James,
103,
in

536,

578,

507,

541,

135;

cent,
re-

Thirty

345;

Years',

World

War,

276.
252.

United

States,

473,

533.

medieval,

in

403.

68.

110;

manufacture,
215;

471,

570.

Fair,

Zollverein,

val,
medie-

19;

ff.

165;

Eli,

Winchester

Woolen

652.

12,

ff.

Wax,

508,

650.

9,

recent,

Watt,

Wheat,
498,

540,

87,

84,
ff.

modern,

modern,
255;

499,

Wool,

489,

578,

132.

79,

317

Whitney,

653.

556.

37;

Wars,

493,

475,

502,

477,

516,

ancient,

492,

582.

manufactures,

486,

263

589.

613.

491,

policy,

imports,

560,

383,

608,

472,
of

476.

654.

Geldersen,

593

fisheries,

ports,

550,

549.

471,

511

567,

651,

75,

von

Wares,

651.

495,

Indies,

commercial

502,

566,

648,

Gama,
72,

modern,
Vicko

362,

agriculture,

477,

651.

586,
586,

491,

in

ff.

648

491,

ff.;

469

recent,

Africa,

and

523.

552,

waterways,

Vasco

States,

505,

514.

13.

United

471,

530,

501,

659.

599,

statistics,

258;

291;

514.

495,

558,

350.

United

489,

shipping,

535.

France,

553.

521,

roads,

261.

Turnpikes,

Tyre,

471,

Germany,

abolition,

in

136;

ff.;

57

railroads,

109.

America,

United

recent,
in

323.

England,

States,

543.

of

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SOUTHERN
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Avenue,

Hilgard
Return

from

this
which

California
LIBRARY

Los

FACILITY
CA

Angeles,

material
it was

to

the

borrowed.

90024-1388

library

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