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as you can。
2。 Encourage foreign trade in preference to domestic
trade。
3。 Encourage those industries which change raw materials
into exportable finished products。
4。 Encourage a large population； for you will need workmen
for your factories and an agricultural community
does not raise enough workmen。
5。 Let the State watch this process and interfere whenever
it is necessary to do so。
Instead of regarding International Trade as something
akin to a force of nature which would always obey certain natural
laws regardless of man's interference； the people of the
sixteenth and seventeenth centuries tried to regulate their
commerce by the help of official decrees and royal laws and financial
help on the part of the government。
In the sixteenth century Charles V adopted this Mercantile
System （which was then something entirely new） and introduced
it into his many possessions。 Elizabeth of England
flattered him by her imitation。 The Bourbons； especially King
Louis XIV； were fanatical adherents of this doctrine and Colbert；
his great minister of finance； became the prophet of Mercantilism
to whom all Europe looked for guidance。
The entire foreign policy of Cromwell was a practical
application of the Mercantile System。 It was invariably directed
against the rich rival Republic of Holland。 For the Dutch
shippers； as the common…carriers of the merchandise of Europe；
had certain leanings towards free…trade and therefore had
to be destroyed at all cost。
It will be easily understood how such a system must affect
the colonies。 A colony under the Mercantile System became
merely a reservoir of gold and silver and spices； which was
to be tapped for the benefit of the home country。 The Asiatic；
American and African supply of precious metals and the raw
materials of these tropical countries became a monopoly of
the state which happened to own that particular colony。 No
outsider was ever allowed within the precincts and no native
was permitted to trade with a merchant whose ship flew a
foreign flag。
Undoubtedly the Mercantile System encouraged the development
of young industries in certain countries where there
never had been any manufacturing before。 It built roads
and dug canals and made for better means of transportation。
It demanded greater skill among the workmen and gave the
merchant a better social position； while it weakened the power
of the landed aristocracy。
On the other hand； it caused very great misery。 It made
the natives in the colonies the victims of a most shameless
exploitation。 It exposed the citizens of the home country to an
even more terrible fate。 It helped in a great measure to turn
every land into an armed camp and divided the world into little
bits of territory； each working for its own direct benefit；
while striving at all times to destroy the power of its neighbours
and get hold of their treasures。 It laid so much stress
upon the importance of owning wealth that ‘‘being rich'' came
to be regarded as the sole virtue of the average citizen。 Economic
systems come and go like the fashions in surgery and
in the clothes of women； and during the nineteenth century the
Mercantile System was discarded in favor of a system of free
and open competition。 At least； so I have been told。
THE AMERICAN REVOLUTION
AT THE END OF THE EIGHTEENTH CENTURY
EUROPE HEARD STRANGE REPORTS OF
SOMETHING WHICH HAD HAPPENED IN
THE WILDERNESS； OF THE NORTH AMERICAN
CONTINENT。 THE DESCENDANTS
OF THE MEN WHO HAD PUNISHED KING
CHARLES FOR HIS INSISTENCE UPON HIS
‘‘DIVINE RIGHTS'' ADDED A NEW CHAPTER
TO THE OLD STORY OF THE STRUGGLE
FOR SELF…GOVERNMENT
FOR the sake of convenience； we ought to go back a
few centuries and repeat the early history of the great
struggle for colonial possessions。
As soon as a number of European nations had been
created upon the new basis of national or dynastic interests；
that is to say； during and immediately after the Thirty
Years War； their rulers； backed up by the capital of
their merchants and the ships of their trading companies；
continued the fight for more territory in Asia； Africa and America。
The Spaniards and the Portuguese had been exploring the
Indian Sea and the Pacific Ocean for more than a century ere
Holland and England appeared upon the stage。 This proved
an advantage to the latter。 The first rough work had already
been done。 What is more； the earliest navigators had so often
made themselves unpopular with the Asiatic and American and
African natives that both the English and the Dutch were
welcomed as friends and deliverers。 We cannot claim any
superior virtues for either of these two races。 But they were
merchants before everything else。 They never allowed religious
considerations to interfere with their practical common sense。
During their first relations with weaker races； all European
nations have behaved with shocking brutality。 The English and
the Dutch； however； knew better where to draw the dine。 Provided
they got their spices and their gold and silver and their taxes；
they were willing to let the native live as it best pleased him。
It was not very difficult for them therefore to establish
themselves in the richest parts of the world。 But as soon as
this had been accomplished； they began to fight each other for
still further possessions。 Strangely enough； the colonial wars
were never settled in the colonies themselves。 They were decided
three thousand miles away by the navies of the contending
countries。 It is one of the most interesting principles of ancient
and modern warfare （one of the few reliable laws of
history） that ‘‘the nation which commands the sea is also the
nation which commands the land。'' So far this law has never
failed to work； but the modern airplane may have changed it。
In the eighteenth century； however； there were no flying machines
and it was the British navy which gained for England
her vast American and Indian and African colonies。
The series of naval wars between England and Holland in
the seventeenth century does not interest us here。 It ended as
all such encounters between hopelessly ill…matched powers will
end。 But the warfare between England and France （her other
rival） is of greater importance to us； for while the superior
British fleet in the end defeated the French navy； a great deal
of the preliminary fighting was done on our own American
continent。 In this vast country； both France and England
claimed everything which had been discovered and a lot more
which the eye of no white man had ever seen。 In 1497 Cabot
had landed in the northern part of America and twenty…seven
years later； Giovanni Verrazano had visited these coasts。 Cabot
had flown the English flag。 Verrazano had sailed under the
French flag。 Hence both England and France proclaimed
themselves the owners of the entire continent。
During the seventeenth cent