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liberty of individual citizens； in the case of international trade
the highest degree of individual liberty may consist with a high
degree of protective policy。 Indeed； it is even possible that the
greatest freedom of international trade may result in national
servitude； as we hope hereafter to show from the case of Poland。 In
respect to this Montesquieu says truly； 'Commerce is never
subjected to greater restrictions than in free nations； and never
subjected to less ones than in those under despotic
government。'（10*）
NOTES：
1。 De l'Ecluse； Florence et ses Vicissitudes； pp。 23； 26； 32； 163；
213。
2。 Pechio； Histoire de l'Economie Politique en Italie。
3。 Amalfi contained at the period of her prosperity 50；000
inhabitants。 Flavio Guio； the inventor of the mariner's compass；
was a citizen of Amalfi。 It was the sack of Amalfi by the Pisans
（1135 or 1137） that that ancient book was discovered which later on
became so injurious to the freedom and energies of Germany the
Pandects。
4。 Hence Charles V was the destroyer of commerce and industry in
Italy； as he was also in the Netherlands and in Spain。 He was the
introducer of nobility by patent； and of the idea that it was
disgraceful for the nobility to carry on commerce or manufactures
an idea which had the most destructive influence on the national
industry。 Before his time the contrary idea prevailed； the Medici
continued to be engaged in commerce long after they had become
sovereign rulers。
5。 〃Quand les nobles； au lien de verser leur sang pour la patrie；
au lieu d'illustrer l'etat par des victoires et de l'agrandir par
des conquetes； n'eurent plus qu'a jouir des honneurs et a se
partager des impots on dut se demander pourquoi il y avait huit ou
neuf cents habitants de Venice qui se disaient proprietaries de
toute la Republique。〃 （Daru； Histoire de Venise； vol。 iv。 ch。
xviii。）
6。 Esprit des Lois； p。 192。
7。 A mere charlatan； Marco Brasadino； who professed to have the art
of making gold； was welcomed by the Venetian aristocracy as a
saviour。 （Daru； Histoire de Venise； vol。 iii。 ch。 xix。）
8。 Venice； as Holland and England subsequently did； made use of
every opportunity of attracting to herself manufacturing industry
and capital from foreign states。 Also a considerable number of silk
manufacturers emigrated to Venice from Luces； where already in the
thirteenth century the manufacturer of velvets and brocades was
very flourishing； in consequence of the oppression of the Lucchese
tyrant Castruccio Castracani。 （Sandu； Histoire de Venise； vol。 i。
pp。 247…256。）
9。 Sismondi； Histoire des Republiques Italiennes； Pt。 I； p。 285。
10。 Esprit des Lois； livre xx。 ch。 xii。
Chapter 2
The Hansards
The spirit of industry； commerce； and liberty having attained
full influence in Italy； crossed the Alps； permeated Germany； and
erected for itself a new throne on the shores of the northern seas；
the Emperor Henry I； the father of the liberator of the Italian
municipalities； promoted the founding of new cities and the
enlargement of older ones which were already partly established on
the sites of the ancient Roman colonies and partly in the imperial
domains。
Like the kings of France and England at a later period； he and
his successors regarded the cities as the strongest counterpoise to
the aristocracy； as the richest source of revenue to the State； as
a new basis for national defence。 By means of their commercial
relations with the cities of Italy； their competition with Italian
industry； and their free institutions； these cities soon attained
to a high degree of prosperity and civilisation。 Life in common
fellow…citizenship created a spirit of progress in the arts and in
manufacture； as well as zeal to achieve distinction by wealth and
by enterprise； while； on the other hand； the acquisition of
material wealth stimulated exertions to acquire culture and
improvement in their political condition。
Strong through the power of youthful freedom and of flourishing
industry； but exposed to the attacks of robbers by land and sea；
the maritime towns of Northern Germany soon felt the necessity of
a closer mutual union for protection and defence。 With this object
Hamburg and L黚eck formed a league in 1241； which before the close
of that century embraced all the cities of any importance on the
coasts of the Baltic and North Seas； or on the banks of the Oder；
the Elbe； the Weser； and the Rhine （eighty…five in all）。 This
confederation adopted the title of the 'Hansa；' which in the Low
German dialect signifies a league。
Promptly comprehending what advantages the industry of
individuals might derive from a union of their forces； the Hansa
lost no time in developing and establishing a commercial policy
which resulted in a degree of commercial prosperity previously
unexampled。 Perceiving that whatever power desires to create and
maintain an extensive maritime commerce； must possess the means of
defending it； they created a powerful navy； being further convinced
that the naval power of any country is strong or weak in proportion
to the extent of its mercantile marine and its sea fisheries； they
enacted a law that Hanseatic goods should be conveyed only on board
Hanseatic vessels； and established extensive sea fisheries。 The
English navigation laws were copied from those of the Hanseatic
League； just as the latter were an imitation of those of
Venice。（1*）
England in that respect only followed the example of those who
were her forerunners in acquiring supremacy at sea。 Yet the
proposal to enact a navigation Act in the time of the Long
Parliament was then treated as a novel one。 Adam Smith appears in
his comment on this Act（2*） not to have known； or to have refrained
from stating； that already for centuries before that time and on
various occasions the attempt had been made to introduce similar
restrictions。 A proposal to that effect made by Parliament in 1461
was rejected by Henry VI； and a similar one made by James I；
rejected by Parliament；（3*） indeed； long before these two proposals
（viz。 in 1381） such restrictions had been actually imposed by
Richard II； though they soon proved inoperative and passed into
oblivion。 The nation was evidently not then ripe for such
legislation。 Navigation laws； like other measures for protecting
native industry； are so rooted in the very nature of those nations
who feel themselves fitted for future industrial and commercial
greatness； that the United States of North America before they had
fully won their independence had already at the instance of James
Madison introduced restrictions on foreign shipping； and
undoubtedly with not less great results （as will be seen in a
future chapter） than England had derived from them a hundred and
fifty years before。
The northern princes； impressed with the benefits which trade
with the Hansards promised to yield to them inasmuch as it gave
them the means not only of disposing of the surplus products of
their own territories； and of obtaining in exchange much better
manufactured articles than were produced at home； but also of
enriching their treasuries by means of import and export
duties；（4*） and of diverting to habits of industry their subjects
who were addicted to idleness； turbulence； and riot considered
it as a piece of good fortune whenever the Hansards established
factories on their territory； and endeavoured to induce them to do
so by wanting them privileges and favours of every kind。 The kings
of England were conspicuous above all other sovereigns in this
respect。
The trade of England （says Hume） was formerly entirely in the
hands of foreigners； but especially of the 'Easterlings'（5*） whom
Henry III constituted a corporation； to whom he granted privileges；
and whom he freed from restrictions and import duties to which
other foreign merchants were liable。 The English at that time were
so inexperienced in commerce that from the time of Edward II the
Hansards； under the title of 'Merchants of the Steelyard'；
monopolised the entire foreign trade of the kingdom。 And as they
conducted it exclusively in their own ships； the shipping interest
of England was in a very pitiable condition。（6*）
Some German merchants； viz。 those of Cologne； after they had