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the raw products which they obtained from England and the northern



states to their establishment at Bruges (founded in 1252); and



exchanged them there for Belgian cloths and other manufactures; and



for Oriental products and manufactures which came from Italy; which



latter they carried back to all the countries bordering on the



northern seas。



    A third factory of theirs; at Novgorod in Russia (established



in 1272); supplied them with furs; flax; hemp; and other raw



products in exchange for manufactures。 A fourth factory; at Bergen



in Norway (also founded in 1272); was occupied principally with



fisheries and trade in train oil and fish products。(7*)



    The experience of all nations in all times teaches us that



nations; so long as they remain in a state of barbarism; derive



enormous benefit from free and unrestricted trade; by which they



can dispose of the products of the chase and those of their



pastures; forests; and agriculture  in short; raw products of



every kind; obtaining in exchange better clothing materials;



machines; and utensils; as well as the precious metals  the great



medium of exchange and hence that at first they regard free trade



with approval。 But experience also shows that those very nations;



the farther advances that they make for themselves in culture and



in industry; regard such a system of trade with a less favourable



eye; and that at last they come to regard it as injurious and as a



hindrance to their further progress。 Such was the case with the



trade between England and the Hansards。 A century had scarcely



elapsed from the foundation of the factory of the 'Steelyard' when



Edward III conceived the opinion that a nation might do something



more useful and beneficial than to export raw wool and import



woollen cloth。 He therefore endeavoured to attract Flemish weavers



into England by granting them all kinds of privileges; and as soon



as a considerable number of them had got to work; he issued a



prohibition against wearing any articles made of foreign cloth。(8*)



    The wise measures of this king were seconded in the most



marvellous manner by the foolish policy pursued by the rulers of



other countries  a coincidence which has not unfrequently to be



noted in commercial history。 If the earlier rulers of Flanders and



Brabant did everything in their power to raise their native



industry to a flourishing condition; the later ones did everything



that was calculated to make the commercial and manufacturing



classes discontented and to incite them to emigration。(9*)



    In the year 1413 the English woollen industry had already made



such progress that Hume could write respecting that period; 'Great



jealousy prevailed at this time against foreign merchants; and a



number of restrictions were imposed on their trade; as; for



instance; that they were required to lay out in the purchase of



goods produced in England the whole value which they realized from



articles which they imported into it。(10*)



    Under Edward IV this jealousy of foreign traders rose to such



a pitch that the importation of foreign cloth; and of many other



articles; was absolutely prohibited。(11*)



    Notwithstanding that the king was afterwards compelled by the



Hansards to remove this prohibition; and to reinstate them in their



ancient privileges; the English woollen manufacture appears to have



been greatly promoted by it; as is noted by Hume in treating of the



reign of Henry VII; who came to the throne half a century later



than Edward IV。



    'The progress made in industry and the arts imposed limits; in



a much more effective way than the rigour of laws could do; to the



pernicious habit of the nobility of maintaining a great number of



servants。 Instead of vying with one another in the number and



valour of their retainers; the nobility were animated by another



kind of rivalry more in accordance with the spirit of civilisation;



inasmuch as they now sought to excel one another in the beauty of



their houses; the elegance of their equipages; and the costliness



of their furniture。 As the people could no longer loiter about in



pernicious idleness; in the service of their chieftains and



patrons; they became compelled; by learning some kind of handiwork;



to make themselves useful to the community。 Laws were again enacted



to prevent the export of the precious metals; both coined and



uncoined; but as these were well known to be inoperative; the



obligation was again imposed on foreign merchants to lay out the



whole proceeds of goods imported by them; in articles of English



manufacture。'(12*)



    In the time of Henry VIII the prices of all articles of food



had considerably risen; owing to the great number of foreign



manufacturers in London; a sure sign of the great benefit which the



home agricultural industry derived from the development of home



manufacturing industry。



    The king; however; totally misjudging the causes and the



operation of this phenomenon; gave ear to the unjust complaints of



the English against the foreign manufacturers; whom the former



perceived to have always excelled themselves in skill; industry;



and frugality。 An order of the Privy Council decreed the expulsion



of 15;000 Belgian artificers; 'because they had made all provisions



dearer; and had exposed the nation to the risk of a famine。' In



order to strike at the root of this evil; laws were enacted to



limit personal expenditure; to regulate the style of dress; the



prices of provisions; and the rate of wages。 This policy naturally



was warmly approved by the Hansards; who acted towards this king in



the same spirit of good…will which they had previously Displayed



towards all those former kings of England whose policy had favoured



their interests; and which in our days the English display towards



the kings of Portugal  they placed their ships of war at his



disposition。 During this king's whole reign the trade of the



Hansards with England was very active。 They possessed both ships



and capital; and knew; not less cleverly than the English do in our



days; how to acquire influence over peoples and governments who did



not thoroughly understand their own interests。 Only their arguments



rested on quite a different basis from those of the trade



monopolists of our day。 The Hansards based their claim to supply



all countries with manufactures on actual treaties and on



immemorial possession of the trade; whilst the English in our day



base a similar claim on a mere theory; which has for its author one



of their own Custom…house officials。 The latter demand in the name



of a pretended science; 
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