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structure　of　their　national　prosperity　upon　the　most　solid



foundations；　the　Spaniards　and　the　Portuguese　made　a　fortune



rapidly　by　means　of　their　discoveries　and　attained　to　great　wealth



in　a　very　short　space　of　time。　But　it　was　only　the　wealth　of　a



spendthrift　who　had　won　the　first　prize　in　a　lottery；　whereas　the



wealth　of　the　English　may　be　likened　to　the　fortune　accumulated　by



the　diligent　and　saving　head　of　a　family。　The　former　may　for　a　time



appear　more　to　be　envied　than　the　latter　on　account　of　his　lavish



expenditure　and　luxury；　but　wealth　in　his　case　is　only　a　means　for



prodigality　and　momentary　enjoyment；　whereas　the　latter　will　regard



wealth　chiefly　as　a　means　of　laying　a　foundation　for　the　moral　and



material　well…being　of　his　latest　posterity。



　　　　The　Spaniards　possessed　flocks　of　well…bred　sheep　at　so　early



a　period　that　Henry　I　of　England　was　moved　to　prohibit　the



importation　of　Spanish　wool　in　1172；　and　that　as　far　back　as　the



tenth　and　eleventh　centuries　Italian　woollen　manufacturers　used　to



import　the　greater　portion　of　their　wool　supplies　from　Spain。　Two



hundred　years　before　that　time　the　dwellers　on　the　shores　of　the



Bay　of　Biscay　had　already　distinguished　themselves　in　the



manufacture　of　iron；　in　navigation；　and　in　fisheries。　They　were　the



first　to　carry　on　the　whale　fishery；　and　even　in　the　year　1619　they



still　so　far　excelled　the　English　in　that　business　that　they　were



asked　to　send　fishermen　to　England　to　instruct　the　English　in　this



particular　branch　of　the　fishing　trade。（1*）



　　　　Already　in　the　tenth　century；　under　Abdulrahman　III　（912　to



950）；　the　Moors　had　established　in　the　fertile　plains　around



Valencia　extensive　plantations　of　cotton；　sugar；　and　rice；　and



carried　on　silk　cultivation。　Cordova；　Seville；　and　Granada



contained　at　the　time　of　the　Moors　important　cotton　and　silk



manufactories。（2*）　Valencia；　Segovia；　Toledo；　and　several　other



cities　in　Castile　were　celebrated　for　their　woollen　manufactures。



Seville　alone　at　an　early　period　of　history　contained　as　many　as



16；000　looms；　while　the　woollen　manufactories　of　Segovia　in　the



year　1552　were　employing　13；000　operatives。　Other　branches　of



industry；　notably　the　manufacture　of　arms　and　of　paper；　had　become



developed　on　a　similar　scale。　In　Colbert's　day　the　French　were



still　in　the　habit　of　procuring　supplies　of　cloth　from　Spain。（3*）



The　Spanish　seaport　towns　were　the　seat　of　an　extensive　trade　and



of　important　fisheries；　and　up　to　the　time　of　Philip　II　Spain



possessed　a　most　powerful　navy。　In　a　word；　Spain　possessed　all　the



elements　of　greatness　and　prosperity；　when　bigotry；　in　alliance



with　despotism；　set　to　work　to　stifle　the　high　spirit　of　the



nation。　The　first　commencement　of　this　work　of　darkness　was　the



expulsion　of　the　Jews；　and　its　crowning　act　the　expulsion　of　the



Moors；　whereby　two　millions　of　the　most　industrious　and　well…to…do



inhabitants　were　driven　out　of　Spain　with　their　capital。



　　　　While　the　Inquisition　was　thus　occupied　in　driving　native



industry　into　exile；　it　at　the　same　time　effectually　prevented



foreign　manufacturers　from　settling　down　in　the　country。　The



discovery　of　America　and　of　the　route　round　the　Cape　only　increased



the　wealth　of　both　kingdoms　after　a　specious　and　ephemeral　fashion



　indeed；　by　these　events　a　death…blow　was　first　given　to　their



national　industry　and　to　their　power。　For　then；　instead　of



exchanging　the　produce　of　the　East　and　West　Indies　against　home



manufactures；　as　the　Dutch　and　the　English　subsequently　did；　the



Spaniards　and　Portuguese　purchased　manufactured　goods　from　foreign



nations　with　the　gold　and　the　silver　which　they　had　wrung　from



their　colonies。（4*）　They　transformed　their　useful　and　industrious



citizens　into　slave…dealers　and　colonial　tyrants：　thus　they



promoted　the　industry；　the　trade；　and　the　maritime　power　of　the



Dutch　and　English；　in　whom　they　raised　up　rivals　who　soon　grew



strong　enough　to　destroy　their　fleets　and　rob　them　of　the　sources



of　their　wealth。　In　vain　the　kings　of　Spain　enacted　laws　against



the　exportation　of　specie　and　the　importation　of　manufactured



goods。　The　spirit　of　enterprise；　industry；　and　commerce　can　only



strike　root　in　the　soil　of　religious　and　political　liberty；　gold



and　silver　will　only　abide　where　industry　knows　how　to　attract　and



employ　them。



　　　　Portugal；　however；　under　the　auspices　of　an　enlightened　and



powerful　minister；　did　make　an　attempt　to　develop　her　manufacturing



industry；　the　first　results　of　which　strike　us　with　astonishment。



That　country　like　Spain；　had　possessed　from　time　immemorial　fine



flocks　of　sheep。　Strabo　tells　us　that　a　fine　breed　of　sheep　had



been　introduced　into　Portugal　from　Asia；　the　cost　of　which　amounted



to　one　talent　per　head。　When　the　Count　of　Ereceira　became　minister



in　1681；　he　conceived　the　design　of　establishing　cloth



manufactories；　and　of　thus　working　up　the　native　raw　material　in



order　to　supply　the　mother　country　and　the　colonies　with



home…manufactured　goods。　With　that　view　cloth　workers　were　invited



from　England；　and　so　speedily　did　the　native　cloth　manufactories



flourish　in　consequence　of　the　protection　secured　to　them；　that



three　years　later　（in　1684）　it　became　practicable　to　prohibit　the



importation　of　foreign　cloths。　From　that　period　Portugal　supplied



herself　and　her　colonies　with　native　goods　manufactured　of



home…grown　raw　material；　and　prospered　exceedingly　in　so　doing　for



a　period　of　nineteen　years；　as　attested　by　the　evidence　of　English



writers　themselves。（5*）



　　　　It　is　true　that　even　in　those　days　the　English　gave　proof　of



that　ability　which　at　subsequent　times　they　have　managed　to　bring



to　perfection。　In　order　to　evade　the　tariff　restrictions　of



Portugal；　they　manufactured　woollen　fabrics；　which　slightly



differed　from　cloth　though　serving　the　same　purpose；　and　imported



these　into　Portugal　under　the　designation　of　woollen　serges　and



woollen　druggets。　This　trick　of　trade　was；　however；　soon　detected



and　rendered　innocuous　by　a　decree　prohibiting　the　importation　of



such　goods。（6*）　The　success　of　these　measures　is　all　the　more



remarkable　because　the　country；　not　a　very　great　while　before；　had



been　drained　of　a　large　amount　of　capital；　which　had　found　its　way



abroad　owing　to　the　expulsion　of　the　Jews；　and　was　suffering



especially　from　all　the　evils　of　bigotry；　of　bad　government；　and　of



a　feudal　aristocracy；　which　ground　down　popular　liberties　and



agriculture。（7*）



　　　　In　the　year　1703；　after　the　death　of　Count　Ereceira；　however；



the　famous　British　ambassador　Paul　Methuen　succeeded　in　persuading



the　Portuguese　Government　that　Portugal　would　be　immensely



benefited　if　England　were　to　permit　the　importation　of　Portuguese



wines　at　a　duty　one…third　less　than　the　duty　levied　upon　wines　of



other　countries；　in　consideration　of　Portugal　admitting　English



cloths　at　the　same　rate　of　import　duty　（viz。　twenty…three　per



cent。）　which　had　been　charged　upon　such　goods　prior　to　the　year



1684。　It　seems　as　though　on　the　part　of　the　King　the　hope　of　an



increase　in　his　customs　revenue；　and　on　the　part　of　the　nobility



the　hope　of　an　increased　income　from　rents；　supplied　the　chief



motives　for　the　conclusion　of　that　commercial　treaty　in　which　the



Queen　of　England　（Anne）　styles　the　King　of　Portugal　'her　oldest



friend　and　ally'　　on　much　the　same　principle　as　the　Roman　Senate



was　formerly　wont　to　apply　such　designations　to　those　rulers　who



had　the　misfortune　to　be　brought　into　closer　relations　with　that



assembly。



　　　　Directly　after　the　conclusion　of　this　treaty；　Portugal　was



deluged　with　English　manufactures；　and　the　first　result　of　this



inundation　was　the　sudden　and　complete　ruin　of　the　Portuguese



manufactories　　a　result　which　had　its　perfect　counterparts　in　the



subsequent　so…called　Eden　treaty　with　France　and　in　the　abrogation



of　the　Continental　system　in　Germany。



　　　　According　to　Anderson's　testimony；　the　English；　even　in　those



days；　had　become　such　adepts　in　the　art　of　understating　the　value



of　their　goods　in　their　custom…house　bills　of　entry；　that　in　effect



they　paid　no　more　than　half　the　duty　chargeable　on　them　by　the



tariff。（8*）



　　　　'After　the　repeal　of　the　prohibition；'　says　'The　British



Merchant；'　'we　managed　to　carry　away　so　much　of　their　silver



currency　that　there　remained　but　very　little　for　their　necessary



occasions；　thereupon　we　attacked　their　gold。'（9*）　This　trade　the



English　continued　down　to　very　recent　times。　They　exported　all　t