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commerce of Holland。
England had gained from Holland the greater part of the trade
of the latter with the northern European states； her contraband
trade with Spain and the Spanish colonies； and the greater part of
her trade with the East and West Indies； and of her fisheries。 But
the most serious blow was inflicted on her by the Methuen Treaty of
1703。 From that the commerce of Holland with Portugal； the
Portuguese colonies； and the East indies； received a deadly wound。
When Holland thus commenced to lose so large a portion of her
foreign trade； the same result took place which had previously been
experienced by the Hanseatic cities and by Venice ： the material
and mental capital which could now find no employment in Holland；
was diverted by emigration or in the shape of loans to those
countries which had acquired the supremacy from Holland which she
had previously possessed。
If Holland in union with Belgium； with the Rhenish districts；
and with North Germany； had constituted one national territory； it
would have been difficult for England and France to have weakened
her naval power； her foreign commerce； and her internal industry by
wars and by commercial policy； as they succeeded in doing。 A nation
such as that would have been； could have placed in competition with
the commercial systems of other nations a commercial system of her
own。 And if owing to the development of the manufactures of those
other nations her industry suffered some injury； her own internal
resources； aided by founding colonies abroad； would have abundantly
made good that loss。 Holland suffered decline because she； a mere
strip of sea coast； inhabited by a small population of German
fishermen； sailors； merchants； and dairy farmers； endeavoured to
constitute herself a national power； while she considered and acted
towards the inland territory at her back （of which she properly
formed a part） as a foreign land。
The example of Holland； like that of Belgium； of the Hanseatic
cities； and of the italian republics； teaches us that mere private
industry does not suffice to maintain the commerce； industry； and
wealth of entire states and nations； if the public circumstances
under which it is carried on are unfavourable to it； and further；
that the greater part of the productive powers of individuals are
derived from the political constitution of the government and from
the power of the nation。 The agricultural industry of Belgium
became flourishing again under Austrian rule。 When united to France
her manufacturing industry rose again to its ancient immense
extent。 Holland by herself was never in a position to establish and
maintain an independent commercial system of her own in competition
with great nations。 But when by means of her union with Belgium
after the general peace （in 1815） her internal resources；
population； and national territory were increased to such an extent
that she could rank herself among the great nationalities； and
became possessed in herself of a great mass and variety of
productive powers； we see the protective system established also in
the Netherlands； and under its influence agriculture； manufactures；
and commerce make a remarkable advance。 This union has now been
again dissolved （owing to causes which lie outside the scope and
purpose of our present work）； and thus the protective system in
Holland has been deprived of the basis on which it rested； while in
Belgium it is still maintained。
Holland is now maintained by her colonies and by her transport
trade with Germany。 But the next great naval war may easily deprive
her of the former； and the more the German Zollverein attains to a
clear perception of its interests； and to the exercise of its
powers； the more clearly will it recognize the necessity of
including Holland within the Zollverein。
NOTES：
1。 The construction of good roads； and still more of railways；
which has taken place in quite recent times； has materially
modified this axiom。
2。 It has been recently stated that the excellence of the Dutch
herrings is attributable not only to the superior methods above
named； but also to the casks in which they are 'b鯿kelled' and
exported being constructed of oak。
Chapter 4
The English
In our account of the Hanseatic League we have shown how in
England agriculture and sheep farming have been promoted by foreign
trade； how at a subsequent period； through the immigration of
foreign artificers； fleeing from persecution in their native land；
and also owing to the fostering measures adopted by the British
Government； the English woollen manufacturing industry had
gradually attained to a flourishing condition； and how； as a direct
consequence of that progress in manufacturing industry； as well as
of the wise and energetic measures adopted by Queen Elizabeth； all
the foreign trade which formerly had been monopolised by foreigners
had been successfully diverted into the hands of the merchants at
home。
before we continue our exposition of the development of English
national economy from the point where we left off in Chapter 2； we
venture here to make a few remarks as to the origin of British
industry。
The source and origin of England's industrial and commercial
greatness must be traced mainly to the breeding of sheep and to the
woollen manufacture。
before the first appearance of the Hansards on British soil the
agriculture of England was unskilful and her sheep farming of
little importance。 There was a scarcity of winter fodder for the
cattle； consequently a large proportion had to be slaughtered in
autumn； and hence both stock and manure were alike deficient。 Just
as in all uncultivated territories as formerly in Germany； and
in the uncleared districts； of America up to the present time
hog breeding furnished the principal supply of meat； and that for
obvious reasons。 The pigs needed little care foraged for
themselves； and found a plentiful supply of food on the waste lands
and in the forests； and by keeping only a moderate number of
breeding sows through the winter； one was sure in the following
spring of possessing considerable herds。
but with the growth of foreign trade hog breeding diminished；
sheep farming assumed larger proportions； and agriculture and the
breeding of horned cattle rapidly improved。
Hume； in his 'History of England；'（1*） gives a very interesting
account of the condition of English agriculture at the beginning of
the fourteenth cen