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common welfare。



    The foundation for the revival of German nationality was



undoubtedly laid by the Governments them selves�察�by their



conscientious devotion of the proceeds of the secularised Church



lands to the uses of education and instruction�察�of art and science��



of morality and objects of public utility。 By these measures light



made its way into the State administration and the administration



of justice�察�into education and literature�察�into agriculture��



industry�察�and commerce�察�and above all amongst the masses。 Thus



Germany developed herself in a totally different way from all other



nations。 Elsewhere high mental culture rather grew out of the



evolution of the material powers of production�察�whilst in Germany



the growth of material powers of production was the outcome chiefly



of an antecedent intellectual development。 Hence at the present day



the whole culture of the Germans is theoretical。 Hence also those



many unpractical and odd traits in the German character which other



nations notice in us。



    For the moment the Germans are in the position of an individual



who�察�having been formerly deprived of the use of his limbs�察�first



learned theoretically the arts of standing and walking�察�of eating



and drinking�察�of laughing and weeping�察�and then only proceeded to



put them in practice。 Hence comes the German predilection for



philosophic systems and cosmopolitan dreams。 The intellect�察�which



was not allowed to stir in the affairs of this world�察�strove to



exercise itself in the realms of speculation。 Hence�察�too�察�we find



that nowhere has the doctrine of Adam Smith and of his disciples



obtained a larger following than in Germany�察�nowhere else have



people more thoroughly believed in the cosmopolitan magnanimity of



Messrs Canning and Huskisson。



    For the first progress in manufactures Germany is indebted to



the revocation of the Edict of Nantes and to the numerous refugees



who by that insane measure were driven to emigrate to almost every



part of Germany�察�and established everywhere manufactures of wool��



silk�察�jewellery�察�hats�察�glass�察�china�察�gloves�察�and industries of



every kind。



    The first Government measures for the promotion of manufactures



in Germany were introduced by Austria and Prussia�察�in Austria under



Charles VI and Maria Theresa�察�but even more under Joseph II。



Austria had formerly suffered enormously from the banishment of the



Protestants�察�her most industrious citizens�察�nor can it be exactly



affirmed that she distinguished herself in the immediate sequel by



promoting enlightenment and mental culture。 Afterwards�察�in



consequence of a protective tariff�察�improved sheep farming�察�better



roads�察�and other encouragements�察�industry made considerable strides



even under Maria Theresa。



    More energetically still was this work pushed forward under



Joseph II and with immensely greater success。 At first�察�indeed�察�the



results could not be called important�察�because the Emperor��



according to his wont�察�was too precipitate in these as in all his



other schemes of reform�察�and Austria�察�in relation to other states��



still occupied too backward a position。 Here as elsewhere it became



evident that one might get 'too much of a good thing' at once�察�and



that protective duties�察�in order to work beneficially and not as a



disturbing element upon an existing state of things�察�must not be



made too high at the commencement。 But the longer that system



continued�察�the more clearly was its wisdom demonstrated。 To that



tariff Austria is indebted for her present prosperous industries



and the flourishing condition of her agriculture。



    The industry of Prussia had suffered more than that of any



other country from the devastations of the Thirty Years' War。 Her



most important industry�察�the manufacture of cloth in the Margravate



of Brandenburg�察�was almost entirely annihilated。 The majority of



cloth workers had migrated to Saxony�察�while English imports at the



time held every competition in check。 To the advantage of Prussia



now came the revocation of the Edict of Nantes and the persecution



of the Protestants in the Palatinate and in Salzburg。 The great



Elector saw at a glance what Elizabeth before him had so clearly



understood。 In consequence of the measures devised by him a great



number of the fugitives directed their steps to Prussia�察�fertilised



the agricultural industry of the land�察�established a large number



of manufactures�察�and cultivated science and art。 All his successors



followed in his footsteps�察�none with more zeal than the great King



 greater by his policy in times of peace than by his successes in



war。 Space is wanting to treat at length of the countless measures



whereby Frederick II attracted to his dominions large numbers of



foreign agriculturists�察�brought tracts of waste land into



cultivation�察�and established the cultivation of meadows�察�of cattle



fodder�察�vegetables�察�potatoes�察�and tobacco�察�improved sheep farming��



cattle breeding�察�horse breeding�察�the use of mineral manures�察�&c。��



by which means he created capital and credit for the benefit of the



agricultural classes。 Still more than by these direct measures he



promoted indirectly the interests of agriculture by means of those



branches of manufacture which�察�in consequence of the customs tariff



and the improved means of transport which he established�察�as well



as the establishment of a bank�察�made greater advances in Prussia



than in any other German state�察�notwithstanding that that country's



geographical position�察�and its division into several provinces



separated from one another�察�were much less favourable for the



success of such measures�察�and that the disadvantages of a customs



cordon�察�namely�察�the damaging effects of a contraband trade�察�must be



felt more acutely there than in great states whose territories are



compact and well protected by boundaries of seas�察�rivers�察�and



chains of mountains。



    At the same time we are nowise anxious�察�under cover of this



eulogy�察�to defend the faults of the system�察�such as�察�for example��



the restrictions laid upon the exportation of raw material。 Still��



that in despite of these faults the national industry was



considerably advanced by it�察�no enlightened and impartial historian



would venture to dispute。



    To every unprejudiced mind�察�unclouded by false theories�察�it



must be clear that Prussia gained her title to rank amongst the



European powers not so much by her conquests as by her wise policy



in promoting the interests of agriculture�察�industry�察�and trade�察�and



by her progress in literature and science�察�and all this was the



work of one great genius alone。



    And yet the Crown was not yet supported by the energy of free



institutions�察�but simply by an administrative system�察�well ordered



and conscientious�察�but unquestionably trammelled by the dead



mechanical routine of a hierarchical bureaucracy。



    Meanwhile all the rest of Germany had for centuries been under



the influence of free trade  that is to say�察�the whole world was



free to export manufactured products into Germany�察�while no one



consented to admit German manufactured goods into other countries。



This rule had its exceptions�察�but only a few。 It cannot�察�however��



be asserted that the predictions and the promises of the school



about the great benefits of free trade have been verified by the



experience of this country�察�for everywhere the movement was rather



retrograde than progressive。 Cities like Augsburg�察�N�rnberg��



Mayence�察�Cologne�察�&c。�察�numbered no more than a third or a fourth



part of their former population�察�and wars were often wished for



merely for the sake of getting rid of a valueless surplus of



produce。



    The wars came in the train of the French Revolution�察�and with



them English subsidies together with increased English competition。



Hence a new downward tendency in manufactures coupled with an



increase in agricultural prosperity�察�which�察�however�察�was only



apparent and transitory。



    Next followed Napoleon's Continental Blockade�察�an event which



marked an era in the history of both German and French industry��



notwithstanding that Mons。 J。 B。 Say�察�Adam Smith's most famous



pupil�察�denounced it as a calamity。 Whatever theorists�察�and notably



the English�察�may urge against it�察�this much is clearly made out 



and all who are conversant with German industry must attest it�察�for



there is abundant evidence of the fact in all statistical writings



of that day  that�察�as a result of this blockade�察�German



manufactures o
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