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henceforth principally levied on the imported manufactured goods。



The benefits offered by the latter policy stimulated the merchants;



seamen; and manufacturers of more highly civilised cities and



countries to immigrate with their capital into the great



monarchies; and stimulated the spirit of enterprise of the subjects



of the latter。 The growth of the national industry was followed by



the growth of the national freedom。 The feudal aristocracy found it



necessary in their own interest to make concessions to the



industrial and commercial population; as well as to those engaged



in agriculture; hence resulted progress in agriculture as well as



in native industry and native commerce; which had a reciprocally



favourable influence on those two other factors of national wealth。



We have shown how England; in consequence of this system; and



favoured by the Reformation; made forward progress from century to



century in the development of her productive power; freedom; and



might。 We have stated how in France this system was followed for



some time with success; but how it came to grief there; because the



institutions of feudalism; of the priesthood; and of the absolute



monarchy; had not yet been reformed。 We have also shown how the



Polish nationality succumbed; because the elective system of



monarchy did not possess influence and steadiness enough to bring



into existence powerful municipal institutions; and to reform the



feudal aristocracy。 As a result of this policy; there was created



in the place of the commercial and manufacturing city; and of the



agricultural province which chiefly existed outside the political



influence of that city; the agricultural…manufacturing…commercial



State; a nation complete in itself; an harmonious and compact



whole; in which; on the one hand; the formerly prevailing



differences between monarchy; feudal aristocracy; and citizenhood



gave place to one harmonious accord; and; on the other hand; the



closest union and reciprocally beneficial action took place between



agriculture; manufactures; and commerce。 This was an immeasurably



more perfect commonwealth than the previously existing one; because



the manufacturing power; which in the municipal republic had been



confined to a narrow range; now could extend itself over a wider



sphere; because now all existing resources were placed at its



disposition; because the division of labour and the confederation



of the productive powers in the different branches of manufactures;



as well as in agriculture; were made effectual in an infinitely



greater degree; because the numerous classes of agriculturists



became politically and commercially united with the manufacturers



and merchants; and hence perpetual concord was maintained between



them; the reciprocal action between manufacturing and commercial



power was perpetuated and secured for ever; and finally; the



agriculturists were made partakers of all the advantages of



civilisation arising from manufactures and commerce。 The



agricultural…manufacturing…commercial State is like a city which



spreads over a whole kingdom; or a country district raised up to be



a city。 In the same proportion in which material production was



promoted by this union; the mental powers must necessarily have



been developed; the political institutions perfected; the State



revenues; the national military power; and the population;



increased。 Hence we see at this day; that nation which first of all



perfectly developed the agricultural; manufacturing; and commercial



State; standing in these respects at the head of all other nations。



    The Industrial System was not defined in writing; nor was it a



theory devised by authors; it was simply acted upon in practice;



until the time of Stewart; who deduced it for the most part from



the actual English practice; just as Antonio Serra deduced his



system from a consideration of the circumstances of Venice。



Stewart's treatise; however; cannot be considered a scientific



work。 The greater part of it is devoted to money; banking; the



paper circulation  commercial crises  the balance of trade; and



the doctrine of population:  discussions from which even in our



day much may be learned; but which are carried on in a very



illogical and unintelligible way; and in which one and the same



idea is ten times repeated。 The other branches of political economy



are either superficially treated; or passed over altogether。



Neither the productive powers; nor the elements of price; are



thoroughly discussed。 Everywhere the author appears to have in view



only the experiences and circumstances of England。 In a word; his



book possesses all the merits and demerits of the practice of



England; and of that of Colbert。 The merits of the Industrial



System as compared with later ones; are:



    1。 That it clearly recognises the value of native manufactures



and their influence on native agriculture; commerce; and



navigation; and on the civilisation and power of the nation; and



expresses itself unreservedly to that effect。



    2。 That it indicates what is in general the right means whereby



a nation which is qualified for establishing a manufacturing power;



may attain a national industry。(1*)



    3。 That it is based on the idea of 'the nation;' and regarding



the nations as individual entities; everywhere takes into account



the national interests and national conditions。



    On the other hand; this system is chargeable with the following



chief faults:



    1。 That it does not generally recognise the fundamental



principle of the industrial development of the nation and the



conditions under which it can be brought into operation。



    2。 That it consequently would mislead peoples who live in a



climate unsuited for manufacturing; and small and uncivilised



states and peoples; into the adoption of the protective system。



    3。 That it always seeks to apply protection to agriculture; and



especially to the production of raw materials  to the injury of



agriculture  whereas agricultural industry is sufficiently



protected against foreign competition by the nature of things。



    4。 That it seeks to favour manufactures unjustly by imposing



restrictions on the export of raw materials; to the detriment of



agriculture。



    5。 That it does not teach the nation which has already attained



manufacturing and commercial supremacy to preserve her own



manufacturers and merchants from indolence; by permitting free



competition in her own markets。



    6。 That in the exclusive pursuit of the political object; it



ignores the cosmopolitical relations of all nations; the objects of



the whole human race; and hence would mislead governments into a



prohibitory system; where a protective one would amply suffice; or



imposing duties which are practically prohibitory; when moderate



protective duties would better answer the purpose。



    Finally。



    7。 That chiefly owing to his utterly ignoring the principle of



cosmopolitanism; it does not recognise the future union of all



nations; the establishment of perpetual peace; and of universal



freedom of trade; as the goal towards which all nations have to



strive; and more and more to approach。



    The subsequent schools have; however; falsely reproached this



system for considering the precious metals as the sole constituents



of wealth; whereas they are merely merchandise like all other



articles of value; and that hence it would follow that we ought to



sell as much as possible to other nations and to buy from them as



little as possible。



    As respects the former objection; it cannot be truly alleged of



either Colbert's administration or of that of the English since



George I。 that they have attached an unreasonable degree of



importance to the importation of the precious metals。



    To raise their own native manufactures; their own navigation;



their foreign trade; was the aim of their commercial policy; which



indeed was chargeable with many mistakes; but which on the whole



produced important results。 We have observed that since the Methuen



Treaty (1703) the English have annually exported great quantities



of the precious metals to the East Indies; without considering



these exports as prejudicial。



    The Ministers of George I when they prohibited (in 1721) the



importation of the cotton and silk fabrics of India did not assign



as a reason for that measure that a nation ought to sell as much as



possible to the foreigner; and buy as little as possible from him;



that absurd idea was grafted on to the industrial system by a



subsequent school; what they asserted was; that it is evident that



a nation can only attain to wealth and power by the export of its



own manufactured goods; and by the import from abroad of raw



materials and the necessaries of life。 England has followed this



maxim of State policy to the present day; and by following it has



become rich and mighty; this maxim is the only true one for a



nation which has been long civilised; and which has already brought



its own agriculture to a high degree of development。







NOTES:







1。 Stewart says (book 1。 chapter xxix。): 'In order to promote



industry; a nation must act as well as permit; and protect。 Could



ever the woollen manufacture have been introduced into France from



the consideration of the great advantage which England had drawn



from it。 if the king had not undertaken the
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