Part 13 (1/2)

The wealth that came to Spain, came in a very unequal distribution, which is a considerable disadvantage, and hastens on that state of things which is the natural forerunner of the decay of a nation. Wealth, arising by commerce, however great its quant.i.ty, must be distributed with some degree of equality; but the great adventurers in the gold mines only shared with their sovereign, and the whole of their wealth came in prodigious quant.i.ties, pouring in upon the country. {63}

{62} Though the Dutch were subject to Spain, yet that had not prevented them from acting in an independent manner in their modes of following trade and commerce.

{63} We see an example of this in our own trade to India. Captains of s.h.i.+ps, merchants, and all those who get money by that trade, come home with moderate fortunes; but the governors, and civil and military officers, who have been settled in the country, come home with princely fortunes, and eclipse the old n.o.bility of the country.

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Both Spain and Portugal, finding that wealth came with such ease from India and America, neglected industry. This, indeed, was a very natural consequence; and, when the sources of their riches began to dry up, they found, though too late, that instead of having increased in wealth, they had only been enriching more industrious nations, and ruining themselves. The gold that arrives from the West pa.s.ses through the hands of its masters with almost the same rapidity as if they were only agents for the English and the Dutch; so chimerical an idea is that of wealth existing without industry.

The Dutch were the only rivals of the Portuguese in the East Indies; for though other nations came afterwards in for a share, yet the transition from wealth to weakness was already made by the Portuguese, before any of them had begun to set seriously to work, in acquiring possessions, or in carrying on trade with that country.

Portugal thus fell, merely from the rivals.h.i.+p of a more industrious and less advanced nation, after having embraced more territory than she had power to keep. Spain fell, because she had embraced a wrong object as a source of riches. {64}

The Hans Towns, which owed their prosperity, partly to their own wisdom and perseverance, in the beginning, and partly to the contempt with which sovereigns, in the days of chivalry, viewed commerce, might, with very little penetration, and much less exertion of wisdom than they had displayed, have seen that the spirit of commerce was becoming general, and that moderation and prudence were necessary to preserve them in their proud situation; but the prudence which they possessed at first had given way to pride, and abandoned them; and the first great stroke they received was from Queen Elizabeth. The ruin of so widely-extended a confederacy could not be astonis.h.i.+ng, and, indeed, was a natural consequence of the changes in the manners of the times: but it was not so with Flanders. There was nothing to have prevented the Flemish from continuing to enjoy wealth, and follow up industry, except in the rivals.h.i.+p of other nations,

{64} So short a time did the wealth remain in the country, that, when the famous armada was fitted out against England, a loan of money was solicited, from Genoa, for the purpose.

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particularly of Holland and England; for, though France was farther advanced, as a manufacturing and wealthy nation, than England, yet it was not in the same line of industry with the people of the Netherlands, whose prosperity was not therefore injured by it in the same degree.

As for the Dutch, they continued to increase in wealth till the end of the seventeenth century, and their decline requires a more particular attention.

In addition to their great industry, the fisheries, and art of curing fish, the Dutch excelled in making machines of various sorts, and became the nation that supplied others with materials, in a state ready prepared for manufacturing: this was a new branch of business, and very lucrative, for, as the machines were kept a secret, the abbreviation of labour was great, and the materials had still the advantage in their sale that a raw material has over manufactured goods; so that the advantages were almost beyond example.

Add to all this, that the Dutch were the first who established the banking system, (copying in part from the Italians,) on a solid plan.

The advantages that Holland enjoyed were, indeed, all of its own procuring, but they were numerous and inappretiable, without counting the trade to India, of which it enjoyed a greater share than any other nation, for a considerable period.

No nation has shewn, so completely as the Dutch, how exterior enemies may be repelled, and difficulties overcome, while there is a true attention to the real welfare of the country. The exertions of the Romans, to conquer others, scarcely surpa.s.sed those of the Dutch to preserve themselves, when they were in a state of necessity; but, when they became affluent, energy and unanimity left them. The manufacturers became merchants, and the merchants became agents and carriers; so that the solid sources of riches gradually disappeared.

All this time, taxation increased, and though no nation ever allowed its manners to be less corrupted by the possession of wealth, yet there was a sensible change; but the change in the way of thinking was the most pernicious. Discontent with the government, and disagreements amongst themselves, completed their misfortunes, while England was [end of page #66] all the time endeavouring to supplant them in the most beneficial sources of their wealth.

The Dutch, fairly sunk by that rivals.h.i.+p, and natural change of things, which transfers the seat of wealth and commerce from one nation to another. There was no violent revolution, no invasion by an enemy; it was the silent operation of that cause of decline, which has been already mentioned in the Second Chapter, and will be farther and more particularly ill.u.s.trated and explained.

The Dutch had a superabundance of capital; the interest of money was low; and wealth had begun to leave Holland long before the symptoms of decay became visible; by which means, the trade of other countries was encouraged, and, as always will be the case, capital emigrated, the moment it could find secure employment, and greater profits than were to be obtained at home. The leading causes of the decline of Holland may be distinguished thus:

The taxes were gradually increasing.

Its superiority in manufactures over other countries was continually diminis.h.i.+ng; consequently, industry was not so well rewarded, and less active.

The merchants preferred safe agencies for foreigners to trading on their own bottom, thereby lending their credit.

Dutch capital was employed to purchase goods in one country and sell them in another: so that the Dutch became carriers for others, instead of manufacturing and carrying for themselves.

The trade to India, and the banking business, were both taken up by other nations; so that Holland then lost her superiority in these branches.