of　England　was　in　a　very　pitiable　condition。（6*）
  Some　German　merchants；　viz。　those　of　Cologne；　after　they　had
  for　a　long　time　maintained　commercial　intercourse　with　England；　at
  length　established　in　London；　in　the　year　1250；　at　the　invitation
  of　the　King；　the　factory　which　became　so　celebrated　under　the　name
  of　'The　Steelyard'　an　institution　which　at　first　was　so　influential
  in　promoting　culture　and　industry　in　England；　but　afterwards
  excited　so　much　national　jealousy；　and　which　for　375　years；　until
  its　ultimate　dissolution；　was　the　cause　of　such　warm　and
  long…continued　conflicts。
  England　formerly　stood　in　similar　relations　with　the　Hanseatic
  League　to　those　in　which　Poland　afterwards　stood　with　the　Dutch；
  and　Germany　with　the　English；　she　supplied　them　with　wool；　tin；
  hides；　butter；　and　other　mineral　and　agricultural　products；　and
  received　manufactured　articles　in　exchange。　The　Hansards　conveyed
  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；　what　the　former　claimed　in　the　name　of
  actual　treaties　and　of　justice。
  In　the　reign　of　Edward　VI　the　Privy　Council　sought　for　and
  found　pretexts　for　abolishing　the　privileges　of　the　'Merchants　of
  the　Steelyard。'　The　Hansards　made　strong　protests　against　this
  innovation。　But　the　Privy　Council　persevered　in　its　determination；
  and　the　step　was　soon　followed　by　the　most　beneficial　results　to
  the　nation。　The　English　merchants　possessed　great　advantages　over
  the　foreign　ones；　on　account　of　their　position　as　dwellers　in　the
  country；　in　the　purchase　of　cloths；　wool；　and　other　articles；
  advantages　which　up　to　that　time　they　had　not　so　clearly　perceived
  as　to　induce　them　to　venture　into　competition　with　such　a　wealthy
  company。　But　from　the　time　when　all　foreign　merchants　were
  subjected　to　the　same　commercial　restrictions；　the　English　were
  stimulated　to　enterprise；　and　the　spirit　of　enterprise　was　diffused
  over　th