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blessings of free trade would follow。 And indeed the circumstances
of the commercial world at the time were uncommonly favourable to
this transition。 The failure of crops in Western Europe caused a
great export of agricultural produce； by which Russia for a long
time gained ample means to balance her large importation of
manufactured goods。
But when this extraordinary demand for Russian agricultural
produce had ceased； when； on the other hand； England had imposed
restrictions on the import of corn for the benefit of her
aristocracy； and on that of foreign timber for the benefit of
Canada； the ruin of Russia's home manufactories and the excessive
import of foreign manufactures made itself doubly felt。 Although
people had formerly； with Herr Storch； considered the balance of
trade as a chimera； to believe in the existence of which was； for
a reasonable and enlightened man； no less outrageous and ridiculous
than the belief in witchcraft in the seventeenth century had been；
it was now seen with alarm that there must be something of the
nature of a balance of trade as between independent nations。 The
most enlightened and discerning statesman of Russia； Count
Nesselrode； did not hesitate to confess to this belief。 He declared
in an official circular of 1821： 'Russia finds herself compelled by
circumstances to take up an independent system of trade； the
products of the empire have found no foreign market； the home
manufactures are ruined or on the point of being so； all the ready
money of the country flows towards foreign lands； and the most
substantial trading firms are nearly ruined。' The beneficial
effects of the Russian protective system contributed no less than
the injurious consequences of the re…establishment of free trade
had done to bring into discredit the principles and assertions of
the theorists。 Foreign capital； talent； and labour flowed into the
country from all civilised lands； especially from England and
Germany； in order to share in the advantages offered by the home
manufactories。
The nobility imitated the policy of the Empire at large。 As
they could obtain no foreign market for their produce； they
attempted to solve the problem inversely by bringing the market
into proximity with the produce they established manufactories
on their estates。 In consequence of the demand for fine wool
produced by the newly created woollen manufactories； the breed of
sheep was rapidly improved。 Foreign trade increased； instead of
declining； particularly that with China； Persia； and other
neighbouring countries of Asia。 The commercial crises entirely
ceased； and one need only read the latest reports of the Russian
Minister of Commerce to be convinced that Russia owes a large
measure of prosperity to this system； and that she is increasing
her national wealth and power by enormous strides。
It is foolish for Germans to try to make little of this
progress and to complain of the injury which it has caused to the
north…eastern provinces of Germany。 Each nation； like each
individual； has its own interests nearest at heart。 Russia is not
called upon to care for the welfare of Germany； Germany must care
for Germany； and Russia for Russia。 It would be much better；
instead of complaining； instead of hoping and waiting and expecting
the Messiah of a future free trade； to throw the cosmopolitan
system into the fire and take a lesson from the example of Russia。
That England should look with jealousy on this commercial
policy of Russia is very natural。 By its means Russia has
emancipated herself from England； and has qualified herself to
enter into competition with her in Asia。 Even if England
manufactures more cheaply； this advantage will in the trade with
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 exc