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have to bear extraordinary imposts and heavy taxation�察�and lastly



the injurious effects continue to operate even after the cessation



of the war�察�because both capital and individual effort are ever



attracted towards agricultural work and diverted from manufactures��



precisely in that proportion in which the war may have injured the



farmers and their crops�察�and thereby opened up a more directly



profitable field for the employment of capital and of labour than



the manufacturing industries would then afford。 While in Germany



this condition of things recurred twice in every hundred years�察�and



caused German manufactures to retrograde�察�those of England made



uninterrupted progress。 English manufacturers�察�as opposed to their



Continental competitors�察�enjoyed a double and treble advantage



whenever England�察�by fitting out fleets and armies�察�by subsidies��



or by both these means combined�察�proceeded to take an active part



in foreign wars。



    We cannot agree with the defenders of unproductive expenditure��



namely�察�of that incurred by wars and the maintenance of large



armies�察�nor with those who insist upon the positively beneficial



character of a public debt�察�but neither do we believe that the



dominant school are in the right when they contend that all



consumption which is not directly reproductive  for instance��



that of war  is absolutely injurious without qualification。 The



equipment of armies�察�wars�察�and the debts contracted for these



purposes�察�may�察�as the example of England teaches�察�under certain



circumstances�察�very greatly conduce to the increase of the



productive powers of a nation。 Strictly speaking�察�material wealth



may have been consumed unproductively�察�but this consumption may��



nevertheless�察�stimulate manufacturers to extraordinary exertions��



and lead to new discoveries and improvements�察�especially to an



increase of productive powers。 This productive power then becomes



a permanent acquisition�察�it will increase more and more�察�while the



expense of the war is incurred only once for all。��10*�� And thus it



may come to pass�察�under favouring conditions such as have occurred



in England�察�that a nation has gained immeasurably more than it has



lost from that very kind of expenditure which theorists hold to be



unproductive。 That such was really the case with England�察�may be



shown by figures。 For in the course of the war�察�that country had



acquired in the cotton manufacture alone a power of production



which yields annually a much larger return in value than the amount



which the nation has to find to defray the interest upon the



increased national debt�察�not to mention the vast development of all



other branches of industry�察�and the additions to her colonial



wealth。



    Most conspicuous was the advantage accruing to the English



manufacturing interest during the Continental wars�察�when England



maintained army corps on the Continent or paid subsidies。 The whole



expenditure on these was sent�察�in the shape of English



manufactures�察�to the seat of war�察�where these imports then



materially contributed to crush the already sorely suffering



foreign manufacturers�察�and permanently to acquire the market of the



foreign country for English manufacturing industry。 It operated



precisely like an export bounty instituted for the benefit of



British and for the injury of foreign manufacturers。��11*��



    In this way�察�the industry of the Continental nations has ever



suffered more from the English as allies�察�than from the English as



enemies。 In support of this statement we need refer only to the



Seven Years' War�察�and to the wars against the French Republic and



Empire。



    Great�察�however�察�as have been the advantages heretofore



mentioned�察�they have been greatly surpassed in their effect by



those which England derived from immigrations attracted by her



political�察�religious�察�and geographical conditions。



    As far back as the twelfth century political circumstances



induced Flemish woollen weavers to emigrate to Wales。 Not many



centuries later exiled Italians came over to London to carry on



business as money changers and bankers。 That from Flanders and



Brabant entire bodies of manufacturers thronged to England at



various periods�察�we have shown in Chapter II。 From Spain and



Portugal came persecuted Jews�察�from the Hanse Towns�察�and from



Venice in her decline�察�merchants who brought with them their ships��



their knowledge of business�察�their capital�察�and their spirit of



enterprise。 Still more important were the immigrations of capital



and of manufacturers in consequence of the Reformation and the



religious persecutions in Spain�察�Portugal�察�France�察�Belgium��



Germany�察�and Italy�察�as also of merchants and manufacturers from



Holland in consequence of the stagnation of trade and industry in



that country occasioned by the Act of Navigation and the Methuen



Treaty。 Every political movement�察�every war upon the Continent��



brought England vast accessions of fresh capital and talents�察�so



long as she possessed the privileges of freedom�察�the right of



asylum�察�internal tranquillity and peace�察�the protection of the law��



and general well´being。 So more recently did the French Revolution



and the wars of the Empire�察�and so did the political commotions��



the revolutionary and reactionary movements and the wars in Spain��



in Mexico�察�and in South America。 By means of her Patent Laws��



England long monopolised the inventive genius of every nation。 It



is no more than fair that England�察�now that she has attained the



culminating point of her industrial growth and progress�察�should



restore again to the nations of Continental Europe a portion of



those productive forces which she originally derived from them。







NOTES��







1。 Hume�察�vol。 ii�察�p。 143。







2。 No doubt the decrees prohibiting the export of wool�察�not to



mention the restrictions placed on the trade in wool in markets



near the coast�察�were vexations and unfair�察�yet at the same time the



operated beneficially in the promotion of English industry�察�and in



the suppression of that of the Flemings。







3。 Hume ��in 1603��。 Macpherson�察�Histoire du Commerce ��in 1651��。







4。 See Ustaritz�察�Th�orie du Commerce�察�ch。 xxviii。 Thus we see



George I did not want to export goods and import nothing but specie



in return�察�which is stated as the fundamental principle of the



so´called 'mercantile system'�察�and which in any case would be



absurd。 What he desired was to export manufactures and import raw



material。







5。 Hume�察�vol。 v。 p。 39。







6。 Anderson for the year 1721。







7。 Priestley�察�Lectures on History and General Policy�察�Pt。 II�察�p。



289。







8。 These and the following figures relating to English statistics



are taken from a paper written by McQueen�察�the celebrated English



statistician�察�and appearing in the July number of Tait's Edinburgh



Magazine for the year 1839。 Possibly they may be somewhat



exaggerated for the moment。 But even if so�察�it is more than



probable that the figures as stated will be reached within the



present decade。







9。 Before his lamented death�察�the gifted author of this remark�察�in



his Letters on England�察�read the nobles of his native country a



lesson in this respect which they would do well to lay to heart。







10。 England's national debt would not be so great an evil as it now



appears to us�察�if England's aristocracy would concede that this



burden should be borne by the class who were benefited by the cost



of wars�察�namely�察�by the rich。 McQueen estimates the capitalised



value of property in the three kingdoms at 4��000 million pounds



sterling�察�and Martin estimates the capital invested in the colonies



at about 2��600 millions sterling。 Hence we see that one´ninth part



of Englishmen's private property would suffice to cover the entire



national debt。 Nothing could be more just than such an



appropriation�察�or at least than the payment of the interest on the



national debt out of the proceeds of an income tax。 The English



aristocracy�察�however�察�deem it more convenient to provide for this



charge by the imposition of taxes upon articles of consumption�察�by



which the existence of the working classes is embittered beyond the



point of endurance。







11。 See Appendix A。











Chapter 5







The Spaniards and Portuguese







    Whilst the English were busied for centuries in raising the



structure of their national prosperity upon the most solid



foundations�察�the Spaniards and the Po
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