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Central　Asia　be　outweighed　by　the　proximity　of　the　Russian　Empire



and　by　its　political　influence。　Although　Russia　may　still　be；　in



comparison　with　Europe；　but　a　slightly　civilised　country；　yet；　as



compared　with　Asia；　she　is　a　civilised　one。



　　　　Meantime；　it　cannot　be　denied　that　the　want　of　civilisation　and



political　institutions　will　greatly　hinder　Russia　in　her　further



industrial　and　commercial　progress；　especially　if　the　Imperial



Government　does　not　succeed　in　harmonising　her　political　conditions



with　the　requirements　of　industry；　by　the　introduction　of　efficient



municipal　and　provincial　constitutions；　by　the　gradual　limitation



and　final　abolition　of　serfdom；　by　the　formation　of　an　educated



middle　class　and　a　free　peasant　class；　and　by　the　completion　of



means　of　internal　transport　and　of　communication　with　Central　Asia。



These　are　the　conquests　to　which　Russia　is　called　in　the　present



century；　and　on　them　depends　her　further　progress　in　agriculture



and　industry；　in　trade；　navigation　and　naval　power。　But　in　order　to



render　reforms　of　this　kind　possible　and　practicable；　the　Russian



aristocracy　must　first　learn　to　feel　that　their　own　material



interests　will　be　most　promoted　by　them。







Chapter　9







The　North　Americans







　　　　After　our　historical　examination　of　the　commercial　policy　of



the　European　nations；　with　the　exception　of　those　from　which　there



is　nothing　of　importance　to　be　learnt；　we　will　cast　a　glance　beyond



the　Atlantic　Ocean　at　a　people　of　colonists　which　has　been　raising



itself　almost　before　our　eyes　from　the　condition　of　entire



dependence　on　the　mother　country；　and　of　separation　into　a　number



of　colonial　provinces　having　no　kind　of　political　union　between



themselves；　to　that　of　a　united；　well…organised；　free；　powerful；



industrious；　rich；　and　independent　nation；　which　will　perhaps　in



the　time　of　our　grandchildren　exalt　itself　to　the　rank　of　the　first



naval　and　commercial　power　in　the　world。　The　history　of　the　trade



and　industry　of　North　America　is　more　instructive　for　our　subject



than　any　other　can　be；　Because　here　the　course　of　development



proceeds　rapidly；　the　periods　of　free　trade　and　protection　follow



closely　on　each　other；　their　consequences　stand　out　clearly　and



sharply　defined；　and　the　whole　machinery　of　national　industry　and



State　administration　moves　exposed　before　the　eyes　of　the



spectator。



　　　　The　North　American　colonies　were　kept；　in　respect　of　trade　and



industry；　in　such　complete　thraldom　by　the　mother　country；　that　no



sort　of　manufacture　was　permitted　to　them　beyond　domestic



manufacture　and　the　ordinary　handicrafts。　So　late　as　the　year　1750



a　hat　manufactory　in　the　State　of　Massachusetts　created　so　great



sensation　and　jealousy　in　Parliament；　that　it　declared　all　kinds　of



manufactories　to　be　'common　nuisances；'　not　excepting　iron　works；



notwithstanding　that　the　country　possessed　in　the　greatest



abundance　all　the　requisite　materials　for　the　manufacture　of　iron。



Even　more　recently；　namely；　in　1770；　the　great　Chatham；　made　uneasy



by　the　first　manufacturing　attempts　of　the　New　Englanders；　declared



that　the　colonies　should　not　be　permitted　to　manufacture　so　much　as



a　horseshoe　nail。



　　　　To　Adam　Smith　belongs　the　merit　of　having　first　pointed　out　the



injustice　of　this　policy。



　　　　The　monopoly　of　all　manufacturing　industry　by　the　mother



country　was　one　of　the　chief　causes　of　the　American　Revolution；　the



tea　duty　merely　afforded　an　opportunity　for　its　outbreak。



　　　　Freed　from　restrictions；　in　possession　of　all　material　and



intellectual　resources　for　manufacturing　work；　and　separated　from



that　nation　from　which　they　had　previously　been　supplied　with



manufactured　goods；　and　to　which　they　had　been　selling　their



produce；　and　thus　thrown　with　all　their　wants　upon　their　own



resources：　manufactures　of　every　kind　in　the　North　American　free



states　received　a　mighty　stimulus　during　the　war　of　revolution；



which　in　its　turn　had　the　effect　of　benefiting　agriculture　to　such



an　extent　that；　notwithstanding　the　burdens　and　the　devastation



consequent　upon　the　then　recent　war；　the　value　of　land　and　the　rate



of　wages　in　these　states　everywhere　rose　immensely　but　as；　after



the　peace　of　Paris；　the　faulty　constitution　of　the　free　states　made



the　introduction　of　a　united　commercial　system　impossible；　and



consequently　English　manufactured　goods　again　obtained　free



admission；　competition　with　which　the　newly　established　American



manufactories　had　not　strength　enough　to　bear；　the　prosperity　which



had　arisen　during　the　war　vanished　much　more　quickly　than　it　had



grown　up。　An　orator　in　Congress　said　afterwards　of　this　crisis：　'We



did　buy；　according　to　the　advice　of　modem　theorists；　where　we　could



buy　cheapest；　and　our　markets　were　flooded　with　foreign　goods；



English　goods　sold　cheaper　in　our　seaport　towns　than　in　Liverpool



or　London。　Our　manufacturers　were　being　ruined；　our　merchants；　even



those　who　thought　to　enrich　themselves　by　importation；　became



bankrupt；　and　all　these　causes　together　were　so　detrimental　to



agriculture；　that　landed　property　became　very　generally　worthless；



and　consequently　bankruptcy　became　general　even　among　our



landowners。'



　　　　This　condition　of　things　was　by　no　means　temporary；　it　lasted



from　the　peace　of　Paris　until　the　establishment　of　the　federal



constitution；　and　contributed　more　than　any　other　circumstance　to



bring　about　a　more　intimate　union　between　the　free　states　and　to



impel　them　to　give　to　Congress　full　powers　for　the　maintenance　of



a　united　commercial　policy。　Congress　was　inundated　with　petitions



from　all　the　states　　New　York　and　South　Carolina　not　excepted　



in　favour　of　protective　measures　for　internal　industry；　and



Washington；　on　the　day　of　his　inauguration；　wore　a　suit　of



home…manufactured　cloth；　'in　order；'　said　a　contemporary　New　York



journal；　'in　the　simple　and　impressive　manner　so　peculiar　to　this



great　man；　to　give　to　all　his　successors　in　office　and　to　all



future　legislators　a　memorable　lesson　upon　the　way　in　which　the



welfare　of　this　country　is　to　be　promoted。'　Although　the　first



American　tariff　（1789）　levied　only　light　duties　on　the　importation



of　the　most　important　manufactured　articles；　it　yet　worked　so



beneficially　from　the　very　first　years　of　its　introduction　that



Washington　in　his　'Message'　in　1791　was　able　to　congratulate　the



nation　on　the　flourishing　condition　of　its　manufactures；



agriculture；　and　trade。



　　　　The　inadequacy　of　this　protection　was；　however；　soon　apparent；



for　the　effect　of　the　slight　import　duties　was　easily　overcome　by



English　manufacturers；　who　had　the　advantage　of　improved　methods　of



production。　Congress　did　certainly　raise　the　duty　on　the　most



important　manufactured　articles　to　fifteen　per　cent；　but　this　was



not　till　the　year　1804；　when　it　was　compelled；　owing　to　deficient



customs　receipts；　to　raise　more　revenue；　and　long　after　the　inland



manufacturers　had　exhausted　every　argument　in　favour　of　having　more



protection；　while　the　interests　opposed　to　them　were　equally



strenuous　upon　the　advantages　of　free　trade　and　the　injurious



effects　of　high　import　duties。



　　　　In　striking　contrast　with　the　slight　progress　which　had；　on　the



whole；　been　made　by　the　manufacturers　of　the　country；　stood　the



improved　condition　of　its　navigation；　which　since　the　year　1789；



upon　the　motion　of　James　Madison；　had　received　effectual



protection。　From　a　tonnage　of　200；000　in　1789　their　mercantile



marine　had　increased　in　1801　to　more　than　1；000；000　tons。　Under　the



protection　of　the　tariff　of　1804；　the　manufacturing　interest　of　the



United　States　could　just　barely　maintain　itself　against　the　English



manufactories；　which　were　continually　being　improved；　and　had



attained　a　colossal　magnitude；　and　it　would　doubtless　have　had　to



succumb　entirely　to　English　competition；　had　it　not　been　for　the



help　of　the　embargo　and　declaration　of　war　of　1812。　In　consequence



of　these　events；　just　as　at　the　time　of　the　War　of　Independence；



the　American　manufactories　received　such　an　extraordinary　impetus



that　they　not　only　sufficed　for　the　home　demand；　but　soon　began　to



export　as　well。　According　to　a　report　of　the　Committee　on　Trade　and



Manufactures　to　Congress　in　1815；　100；000　hands　were　employed　in



the　woollen　and　cotton　manufactures　alone；　whose　yearly　production



amounted　to　the　value　of　more　than　sixty　million　dollars。　As　in　the



days　of　the　War　of　Independence；　and　as　a　necessary　consequen