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 CHAPTER XIII.
           THE CONTINENTAL SYSTEM.
           
           The promulgation of the Berlin Decree against British
          commerce was one of those dramatic strokes by which Napoleon sought to double
          the effect of his actions. The popular imagination was awed by the suddenness
          with which the conqueror turned aside from the task of completing the ruin of
          Prussia in order to launch his thunderbolt against the hitherto unassailable
          islanders, and to launch it, too, from the capital of Frederick the Great. In
          Napoleon’s career the element of the melodramatic frequently obtrudes itself;
          but those who have observed the workings of his statecraft over a long term of
          years know that the stage thunder is but the climax in a carefully prepared
          situation, when the minds of all observers are in a state of tense expectancy.
          It is no exaggeration to say that the Berlin Decree of November, 1806, was the
          climax towards which Napoleon’s policy had long been working on one of its
          best-marked lines. His power as a statesman lay in his skill in adapting to
          present needs the most practical among the ideas and theories woven by the
          brains of the former generation; and the events already described enabled him
          now to apply them to a large part of the Continent of Europe. The Berlin
          Decree constitutes, perhaps, the highest example of a union of the practical
          and theatrical in statecraft. Overwhelmed by the suddenness of the blow,
          contemporaries could not see that it was but the outcome of thoughts and
          efforts, whose beginnings had long been observable. Briefly stated, the idea
          which took form in the Berlin Decree was to subject Great Britain to complete
          commercial isolation from the Continent in order to compel her to surrender at
          discretion. But this idea was by no means new. It had its beginning in the
          Mercantilist theory of commerce, in the teachings of Rousseau on national
          solidarity, and in the speculations of the Physiocrats.
               It is impossible here to trace in detail the
          development of these ideas from the time of their inception down to the
          revolutionary era, when some, at least, became political actualities. Some
          general remarks only can be made. French statesmen who thought about the wider
          interests of commerce belonged with scarcely an exception to the Mercantilist
          school. From the time of Colbert to that of Vergennes, the greatest statesman
          was he who could increase the internal resources of France, and set her free
          from all dependence on the foreigner. Turgot alone swerved aside of set purpose
          in the direction of freer trade with foreigner; and his action was speedily
          reversed. In concluding a treaty of commerce with Great Britain in 1786,
          Calonne and Vergennes were probably influenced solely by the belief that
          moderate duties would bring in a larger rename than the prohibitive duties
          formerly imposed; and that treaty cannot be looked on as a triumph of Free
          Trade principles in France. The rebound towards the older fiscal methods in and
          after 1792 was overpoweringly strong; and, after the outbreak of war in
          February, 1793, public men of all shades of thought were ready to adopt any conceivable
          means in order to ruin British commerce.
               The political theories of the age previous to the
          Revolution also served to convince the thinkers of France that the struggle
          with Great Britain would be easily won. The perfect State, according to Rousseau,
          was one that sufficed for all its needs and could do without foreign trade. The
          ideal commonwealth was “that which can subsist without other nations, and
          without which every other nation can subsist”. Subsequent events emphasised the
          contrast here implied between the life of a self-sufficing agricultural
          community and that of a commercial State such as Britain or Holland. The
          agrarian reforms of the French Revolution tended to make France more
          self-sufficing, while Great Britain, under Pitt’s able guidance, was fast
          becoming the purveyor of the world.
               The lesson taught by Rousseau in regard to ethics and
          legislation had also been set forth by the Physiocrats in the sphere of
          economic theory. The teachings of Quesnay and of his followers rested on the assumption
          that the only true source of national wealth was the land, and that States
          would prosper in proportion as they developed agriculture and raw materials.
          Manufactures might be productive of refinement and utility, but could not add
          to the stock of national wealth, inasmuch as they did but change the form of
          existing material. Agriculture alone, therefore, was capable of producing a
          clear gain to the community; manufactures could not yield it, for they were
          “sterile”. These views had no small influence on the leaders of thought in
          France before the Revolution.
               As a result of these three diverse influences, there
          was a general tendency in 1789-93 to exalt agriculture and depreciate commerce.
          It was helped on by the cult of Lycurgus, to which Saint-Just gave so much
          vogue. It was probably the appeals to the legendary life of Sparta that were
          most effective among the militant Jacobins who came to power in 1793 ; but the
          speeches of members of the Convention contain many passages which show that
          England was not only hated as the abode of corrupting commerce, but also
          despised on the ground of economic and political unsoundness. Some even of the
          Girondins took this view. Thus, on January 13, 1793, Kersaint,
          in presenting the official report of the Committee of Defence, used these words:— “The credit of England rests upon fictitious wealth; the real riches of that
          people are scattered everywhere... Asia, Portugal, and Spain are the most
          advantageous markets for the productions of English industry; we should shut
          those markets to the English by opening them to all the world. We must attack
          Lisbon and the Brazils, and carry an auxiliary army to Tippoo Sultan. The Republics of Italy offer you maritime prizes, the loss of which
          will fall on English commerce”. In pursuance of this policy, the Convention,
          on September 21, 1793, excluded from French ports all goods that were not
          brought by French ships or the ships of neutrals; and on October 9 and 10 all
          merchandise produced in Great Britain or her colonies was proscribed throughout
          the French Republic. At the same time Clootz declared
          that the possession of the mouths of the Rhine was essential to the success of
          France in her new enterprise.
           The Decree of October 31, 1796, carried the policy of
          commercial war to still greater lengths. The preamble stated that it was the
          duty of French legislators to encourage French industry, and to exclude every
          product manufactured by the enemy. The Act carried this into effect, and
          further declared that any ship laden either in whole or in part with British
          goods might be seized in any French port. A large number of goods were to be
          considered as British, namely, cotton, woollen, and muslin stuffs, “English” carpets,
          buttons, cutlery, hardware, saddlery, tanned leather, refined sugar, pottery,
          etc. None of these might be exposed for sale, under pain of seizure. The same
          prohibition applied to the products of India unless accompanied by certificates
          of the Dutch and Danish companies, duly visés by the French consuls.
   Thus, the beginnings of the Continental System are
          clearly traceable in the thought and politics of France long before the advent
          of Bonaparte to power. He was in turn the pupil, the agent, and the master of
          the men who had long cried, in impotent wrath, “Delenda est Carthago”; and no small part of his political
          influence resulted from his ability to give effect to their views. At the close
          of his early campaigns, he scanned the horizon for further means of carrying
          out the grandiose designs sketched in outline to the Convention on the
          threshold of the war. On February 23, 1798, he reported to the Directory that
          four courses were possible in the war against Britain—first, to attempt an
          invasion; secondly, to seize Hanover and Hamburg; thirdly, to make an
          expedition to the Levant; lastly, failing all of these, to make peace. In that
          year he attempted the third of these schemes. Its failure served only to
          popularise the methods of commercial war; and, according to his future
          minister, Mollien, the mania for the prohibition of English trade was never
          greater than at the beginning of the Consulate.
   The Peace of Amiens brought about no resumption of
          friendly trading relations. On the renewal of war in 1803 the First Consul
          seized Hanover, and sought to control Hamburg. After the failure of his schemes
          for the invasion of England and his triumph over Austria at Austerlitz, he reeurred to the plan of controlling northern Germany. By
          skilfully offering Hanover to the Court of Berlin, he sought to range Prussia
          under what he now termed his “coast-system.” The experiment of bribing Prussia
          to take his side having failed, he used force against her in order to ensure
          the same result. As a victor he launched from Berlin the famous Decree soon to
          be described in detail. The reappearance of Russia in the field afforded him
          still wider opportunities; and the Peace of Tilsit gave him the prospect of
          arraying against the mistress of the seas forces vaster by far than had ever
          entered into the conceptions of the men of 1793. Yet, in reality, the Continental
          System existed in embryo in the minds of the Anglophobes of the Convention; and
          the Napoleonic Empire of the years 1810-12 was, in a sense, only an index of
          the strength of the ideas which have been briefly set forth.
   
           The political and military events of the years 1805-6,
          which led up to the Berlin Decree, having been already described in previous
          chapters of this volume, it is needful only to glance at a few of the
          accompanying incidents which show the trend of Napoleon’s policy. The
          importance which he attached to the coasts of the North Sea is seen in his
          determination to control Holland at all costs, in the speed with which, after
          the outbreak of war, he overran Hanover, and in the means that he adopted for
          the coercion of the Hanse Towns. On every occasion when Prussia put in a claim
          for those cities during the bargainings of the years
          1805-6, it was set aside. The conditions which he attached to his offer of
          Hanover to that Power at the time of the discussions at Schonbrunn (December, 1805) point in the same direction. He insisted that, if Prussia
          acquired that electorate, she must exclude British commerce from all her
          lands. In vain did Frederick William III seek to escape from the cruel
          alternative of war with Napoleon or war with England. On April 1, 1806, he
          reluctantly issued an ordinance which excluded British ships from the ports of
          Prussia and Hanover.
           In point of fact this, rather than the Berlin Decree,
          was the event which definitely inaugurated the Continental System. It is true
          that Napoleon had already compelled neutral States to exclude British
          commerce—for instance, in the Treaty of Florence with the kingdom of Naples
          (March 28, 1801) ; but the present was the first occasion on which a great
          Power bent beneath the pressure of his commercial policy. The consequences were
          immediate and far-reaching. The Grenville-Fox Ministry at once placed an
          embargo on some 400 Prussian ships then in British harbours, declared the
          coasts from the Elbe to the Ems to be in a state of blockade (April 8, 1806),
          and thirteen days later launched a declaration of war against Prussia. An Order
          in Council of May 16, however, declared that the ports of the north-west of
          Germany and of Holland would not be closed to neutral ships, provided that they
          had not come from, or were not sailing to, one of the enemy’s ports, and
          carried none of his goods and no contraband of war. Only on the coast between
          Ostend and the mouth of the Seine would the blockade be strictly enforced. On
          May 21 the British Government further declared that it would stop no ship in
          the Baltic Sea; and on September 25 it threw open the navigation between the
          Ems and the Elbe. Evidently it was the intention of the British Government,
          while upholding its rights, to subject neutrals to as little inconvenience as possible.
          The causes of friction between the United States and France and England having
          been discussed in a previous volume of this work, they need not be further
          referred to here.
               Such was the state of affairs when, on November 21,
          1806, Napoleon launched his Berlin Decree. The preamble stated that, whereas
          Great Britain did not recognise International Law as observed by civilised
          nations, but extended her hostilities to ships engaged in commerce, to peaceful
          individuals, and to their property on board merchant ships, and declared coasts
          to be blockaded on which she had not a single warship—measures which aimed at
          ruining the world’s commerce to the advantage of her own—therefore Napoleon had
          resolved to apply against her the measures of her own maritime code.
          Accordingly he declared the British Isles to be in a state of blockade, and
          prohibited all commerce and correspondence with them. All British subjects
          found in any country occupied by French or allied troops were liable to
          imprisonment, their merchandise and property being also considered lawful
          prize. Half the proceeds of such acts of confiscation were to be used to
          indemnify merchants for losses sustained through captures made by British
          cruisers. The Decree further declared that no ship coming from Great Britain or her
          colonies would be received in French or allied ports, and ordered the
          confiscation of ship and cargo whenever false statements were made on this
          head. The Decree was communicated at once to the Governments of Spain, Naples,
          Holland, and Etruria, and its adoption was expected as a sign of friendship to
          Napoleon; while every Government that made peace with him was thenceforth
          expected to comply with this and the later-enactments of his Continental
          System.
               The British Government, seeing in this Decree a
          deliberate attempt to cut off British trade with the Continent, retaliated by
          the Order in Council of January 7, 1807. The preamble stated that, whereas the
          French Government, in violation of the usages of war, sought to prohibit the
          commerce of all neutral nations with Great Britain and the aeceptance of her merchandise by them, His Majesty would be
          justified in enforcing a similar prohibition of all commerce with France. He
          would, however, restrict the retaliation, and accordingly ordered that no
          vessel should be permitted to trade between two ports whence British ships were
          excluded; any ship so trading would be warned to discontinue her voyage, and,
          if she persisted, would be captured and become lawful prize. Napoleon replied
          to this Order in Council by a Decree, dated Warsaw, January 25, 1807, which
          ordered the confiscation of all British merchandise and British colonial
          products seized in the Hanseatic cities—an action which led to the renewal of
          the British blockade of the coast between the mouths of the Elbe and the Ems.
           The provisions of the Treaty of Tilsit (July 7, 1807)
          having brought Prussia, Russia, and Denmark into collision with Great Britain,
          the King’s Government adopted severer measures against the States that were
          included in the hostile league. An Order in Council of November 11, 1807,
          declared that, whereas the Order in Council of January 7, 1807, had not had the
          desired effect of compelling the enemy to withdraw the decrees against British
          trade or of inducing neutral nations to interpose to procure their withdrawal,
          but they were being enforced with increased rigour, His Majesty therefore
          ordered that, with certain exceptions, all ports whence British ships and goods
          were excluded should thenceforth be subject to the same restrictions in regard
          to trade and navigation as if they were actually blockaded by a British naval
          force. That is to say, the Order reasserted the legal validity of a blockade
          which in most cases would be merely fictitious. All trade in articles produced
          by countries excluding British ships and goods, or by their colonies, was to be
          considered unlawful; and all ships trading to or from the said countries or
          their colonies, together with all merchandise and produce belonging thereto,
          were thenceforth to be lawful prize. Neutral ships that, prior to receiving
          notice of the present Order, had set sail from any port excluding British
          goods, and were destined for another port hostile to Great Britain, were to be
          warned by His Majesty’s ships or privateers to discontinue such voyage and to
          proceed to a British port; if they disregarded such warning, they might be
          seized and confiscated. The same Order in Council granted certain exceptions in
          favour of neutral ships; but, in a later clause, it threatened the penalty of
          confiscation against any ship on which were found French “certificates of
          origin”, that is, whose papers declared the cargo to be non-British. This
          clause must be pronounced harsh and overbearing.
               A second Order in Council, also of November 11, 1807,
          held out certain inducements to neutral ships to trade with Great Britain. It
          relaxed the stringency of the old Navigation Acts in a way that had been
          foreshadowed by the statute 43 George III, “for permitting certain goods
          imported into Great Britain to be secured in warehouses without payment of duty”; it also allowed (but did not compel) neutral ships, which, owing to the
          operation of the foregoing Order in Council, had been obliged to put in at a
          British harbour, to discharge goods from an enemy’s country on the usual
          conditions, so far as concerned duties and “drawbacks”. Merchandise
          thus imported might also be bonded and thereafter re-exported on the receipt of
          an official certificate. A third Order in Council of the same date declared the
          sale of ships by a belligerent to a neutral to be null and void at law. Orders
          in Council of November 25, 1807, extended trading facilities to neutral ships
          plying between British ports and hostile ports in the West Indies or America,
          also between the Channel Islands, the Isle of Man, Gibraltar, or Malta, and any
          hostile port not actually blockaded by British ships. It was further decreed on
          the same date that the ships of Prussia, Lubeck, and Portugal, which had been
          captured or were liable to capture, owing to their compliance with French
          demands, should be released or held to be not subject to detention or seizure.
           An examination of the text of these Orders in Council,
          which differ widely from the travesties of fact too often presented in
          histories, suffices to show that the British Government, while pressing
          severely on all States which freely placed their resources at the disposal of
          Napoleon, yet sought to lessen the hardships of those on which the Continental
          System was imposed by force. The facilities granted to neutrals were clearly of
          such a kind as to disprove the charge that George Ill’s Government deliberately
          sought to ruin neutral commerce. On the contrary, it sought to attract neutral
          ships to British harbours, but only on conditions which contravened Napoleon’s
          decrees. The aim clearly was not to ruin neutral commerce, but to make the
          Continental System odious to neutrals.
               Information touching the Orders in Council of November
          11, 1807, reached Napoleon at Milan on December 16. During his tour in Italy he
          had received news of the triumphant entry of his troops into Lisbon, the
          arrival of the Russian squadron in the Tagus, Alexander’s declaration of war
          against Great Britain, and the departure of the greater part of the British
          force from Sicily. His letters and his actions of December 7-17 show that he
          expected the speedy collapse of England’s power. The second Milan Decree, that
          of December 17 (the first is unimportant), must be read in the light of this
          belief. The preamble stated that the British Order in Council of November 11
          subjected all neutral ships, not only to the right of search exercised by
          British cruisers, but also to a forced stay in a British port and a compulsory
          impost on the cargo; and that such conduct would “denationalise” the ships of
          every neutral Power and cover with infamy every nation that allowed it.
          Napoleon therefore decreed that every ship undergoing such search or compulsory
          voyage to a British port was thereby denationalised, and would be considered
          lawful prize if captured by French or allied vessels; any ship, of whatever
          nation, sailing from any British port or from countries occupied by British
          troops, would count as good prize if taken by a French war-ship or privateer.
          The Decree asserted that these measures, being designed as a just retaliation
          for the barbarous code adopted in London, would not apply to nations that
          caused their flags to be respected at sea, but would otherwise be valid until
          England returned to the principles of International Law. Napoleon’s reference
          to the first Order in Council of November 11 can only be described as a
          deliberate misrepresentation. That Order did not seek to compel all neutral
          ships to put in at British ports and pay a tonnage duty. The clause now
          travestied by the Emperor merely declared that neutral ships w’hich, at the time of setting sail, had not received
          notice of that Order in Council, should be warned not to continue their voyage
          to a port hostile to Great Britain, but to proceed to some British port.
          Obviously this could apply only to a few ships, and for a limited time. The
          second Order in Council of that date, however, granted facilities to neutrals
          trading with England; and it is clear that this proceeding annoyed Napoleon. An
          earlier letter shows his anxiety on this head. On October 13 he wrote to
          Gaudin, his Finance Minister, stating that the British had just raised the
          blockade of the Elbe and the Weser, evidently because they were using neutral
          ships for their export trade and wished to avail themselves of that coast. He
          charged Gaudin to take advice as to the adoption of measures to “prevent this
          contraband in the Elbe, which is so advantageous to the English.” The result
          was seen in the French Decree of November 13, ordering the seizure on that
          coast of any ship that had touched at a British port.
           The Milan Decree of December 17, 1807, was an
          extension of this policy of putting an end to the export of British produce on
          neutral vessels; and it was the events of November and December which encouraged
          Napoleon to couch his orders in the arrogant language of that edict. In view of
          the aggrandisement of his power, which then extended over all harbours from
          Memel to Ragusa, the Decree was by no means a piece of schoolboy declamation,
          as Lanfrey has termed it. The year 1807 had seen the
          balance turn decidedly in favour of Napoleon. The only successes of importance
          gained by England were the capture of Curacao and Heligoland (January and
          September), and the withdrawal of the Danish and Portuguese fleets from
          Napoleon’s sphere of control. On the other hand, the British expeditions to the
          Dardanelles, Alexandria, Montevideo, and Stralsund had all failed. The Spanish
          rising was not then foreseen; and Napoleon might well imagine that the pressure
          exerted by the Milan Decree on the harbours of nearly the whole Continent must
          be fatal to the power of England.
           Apart from the Order in Council of April 26, 1809,
          which restricted the limits of the British blockade to Holland, France, and
          Italy, the belligerents did little to alter their rules in the years 1808 and
          1809. They bent themselves to the task of extending, or secretly modifying, the
          operation of the existing decrees. As has been stated above, Napoleon had
          forced Austria to accede to the Continental System (February 28, 1808), had
          annexed Etruria and the Papal Legations (January and April), and had occupied a
          large part of Spain with French troops. The colonial conquests achieved by
          Great Britain served in part to redress the balance between the Land Power and
          the Sea Power; but the latter was in great danger until the Spanish rising of
          1808 opened the way for an alliance with Spain.
               That great event also served to consolidate public
          opinion in Great Britain. Latterly it had begun to incline towards peace, as
          appeared in the petitions from Leeds, Bolton, and other manufacturing towns,
          where the distress was very great. Such petitions ceased when the alliance with
          the Spanish patriots revived the national hopes. The struggle now became a
          struggle on behalf of the national freedom of the Spaniards; it also promised
          to open up markets that had hitherto been closed, for it concerned not Spain
          alone but also her colonies. Every victory of the patriots and of Wellesley
          widened the area within which British goods were accepted in the Peninsula; and
          the news of these successes soon decided the Governments of central and
          southern America to open their ports to British trade. Unfortunately the
          Spanish Regency and Cortes, or the governors whom they sent out, sought to
          impose the old restraints on foreign trade; and this embittered the disputes
          and civil strifes which arose. For a time, however,
          the opening of the ports of central and southern America enabled British
          merchants to withstand the otherwise unendurable strain caused by Napoleon’s
          policy. Those markets were, however, glutted with British goods in the course
          of the year 1810; and many firms that had counted on a continuance of the South
          American trade were ruined. “Speculative exports to South America are the rock
          upon which these houses have split.” Such is the gist of the commercial report
          of August, 1810, describing the cause and the growth of the grave financial
          crisis of that year. The value even of Bank of England notes fell sharply; and
          the loss on exchange with foreign countries, averaged 30 per cent.
   Several causes conspired to bring about this result.
          The disgraceful failure of the Walcheren expedition in the previous year,
          Napoleon’s triumph over Austria, and his marriage with Marie-Louise of Austria
          in April, 1810, the seeming inability of Wellesley and the Spanish patriots to
          make head against the French in the Peninsula, and finally the annexation of
          Holland, served to produce a general feeling of despondency.
               It had always been a fundamental axiom of Napoleon’s
          political belief that French influence must be paramount in Holland. Every
          accession to his power was marked by some change in Franco-Dutch relations more
          and more prejudicial to the freedom of the little State. The Franco-Dutch
          treaty of May 24, 1806, guaranteed to Holland (then assigned to Louis
          Bonaparte) its independence and integrity; yet the hand of the Emperor soon
          pressed heavily upon it. In theory the monarchy was constitutional, but the
          attribution of all executive power to the King made it practically absolute.
          Louis however resolved to rule in the interests of the Dutch. By his care of
          the dykes, the canals, and the commercial interests of his people, and by his
          mitigation of the conscription, he succeeded in earning the gratitude of his
          subjects and the rebukes of the Emperor. His chief difficulty lay in the
          finances, the public expenditure being three times as great as the revenue ;
          and his appeals to Napoleon for financial relief met with ironical replies or
          recommendations to effect a reduction of the state debt.
               But the chief cause of friction lay in the application
          of the Continental System to an essentially maritime State. Louis had to bear
          many bitter reproaches for his failure to seal up the Dutch coasts against
          British merchandise. “You attach too high a price to popularity in Holland”,
          wrote Napoleon on December 3, 1806. “Before being kind, you must be the master.
          You have seen by my message to the Senate and by my Decree that I mean to
          conquer the sea by the land. You must follow this system”. During his sojourn
          at Erfurt in October, 1808, the Emperor threatened to close the mouths of the
          Rhine and the Scheldt unless Louis put an end to all trade with England; at
          present, wrote Napoleon, a hundred ships a month left the Dutch shores for
          those of the enemy.
               By the end of the campaign of 1809 Napoleon had
          resolved to annex the kingdom outright; and in November of that year he wrote
          to Champagny to that effect. In his declaration of
          policy to the Legislative Body, he stated that Holland was crushed between
          France and England, and that she formed a necessary outlet to one of the great
          arteries of the Empire. On December 21, 1809, Louis (then at Paris) received an
          acrid communication (omitted from the official Correspond mice) to the effect
          that he might retain his crown if he would prohibit British commerce, maintain
          a fleet of fourteen sail of the line and seven frigates, and an army of 25,000
          men. The letter warned him, however, of the probability of the annexation of
          Holland as the most fatal blow that could be dealt to England. In order to
          double the force of this threat, Napoleon on January 3, 1810, annexed the
          island of Walcheren, ordered his troops to invade Holland, and forcibly occupied
          Breda and Bergen-op-Zoom. The Dutch prepared to resist; but Louis, prostrate
          with illness, bent before his brother’s demands, thus staving off for a moment
          the inevitable blow.
   Meanwhile Napoleon, being desirous of using his hold
          on Holland in order to browbeat the British Government, urged Louis to set on
          foot negotiations through the medium of a Dutch banker, Labouchere,
          son-in-law of the banker Baring, with a view to intimidating England by the
          prospect of the entire annexation of Holland. Louis returned to his kingdom on
          April 11, 1810; and the negotiations began. Labouchere had some interviews with the Marquis Wellesley, Canning’s successor, who saw
          through the design. Nevertheless he allowed the negotiation to proceed, even
          though Labouchere had no official credentials. The
          affair was rendered memorable by the intrigue secretly carried on by Fouché, the
          French Minister of Police, who sent over an agent named Fagan, and afterwards
          sought, through the medium of a financier, Ouvrard,
          to sound the British Ministry on the subject of a possible accommodation.
          Napoleon was enraged when, at the end of May, he discovered the unparalleled
          effrontery of his Minister. He disgraced him and ordered him to live in
          retirement in his sénatorerie of Provence.
           These negotiations delayed but did not avert the doom
          of Louis and of his kingdom. Even while they were still on foot, Napoleon
          insisted on the cession of the lands south of the Rhine, the observance of a
          more stringent fiscal decree, which had been promulgated on May 13, and the
          confiscation of several American ships which Louis had allowed to enter his
          harbours. Under these provocations, the patience of Louis and of his subjects
          gave way. Disturbances took place, in the course of which an insult was offered
          to the coachman of the French ambassador in Amsterdam. At once Napoleon
          withdrew his ambassador, instructed the chargé d'affaires who remained to “keep the quarrel open”, and sent his troops into Holland. For
          a brief space Louis thought of calling his people to arms; but, on his
          counsellors pointing out the hopelessness of such an effort, he resolved to
          abdicate. After drawing up the deed of abdication in favour of his son (the
          elder brother of the future Napoleon III) and writing a touching farewell to
          his counsellors, he set out secretly on the night of July 1, and fled to Toplitz in Bohemia. An Imperial edict of July 9, 1810,
          decreed the annexation of Holland to the French Empire. The French commercial
          decrees were at once put in force, and colonial produce was confiscated.
   The annexation of Holland and the consequent cessation
          of Anglo-Dutch commerce added to the depression everywhere felt in Great
          Britain. To increase the trials of the people, the harvest of the year 1810 was
          a nearly total failure; that of 1809 having been deficient, there were no
          reserves of corn; and in August, the price of wheat averaged 116 shillings the
          quarter. Most fortunately, Napoleon did not adopt the device of stopping the
          export of grain. As is shown by his letters of February 8, July 16, and August
          6, 1810, he suspended its exportation from his States only when he feared the
          approach of dearth; when reassured on this point, he sought to increase his
          revenue by allowing the export of corn, subject to a considerable duty, even to
          England. He confined his hostility almost entirely to the exports from England.
          Ships that received his licenses to export French, Polish, or Italian corn or
          other produce were not allowed to bring back goods from England, except such as
          were needed for the French and allied navies.
               As a result of these curious arrangements, England
          survived the time of dearth, which might otherwise
          have become actual famine. Owing to the onesidedness of Napoleon’s commercial system, the command of tropical lands which Great
          Britain enjoyed, and the policy embodied in the Order in Council of November
          11, 1807, vast stores of goods accumulated in bonded warehouses at her ports.
          Ultimately this circumstance was destined to tell favourably on the nation’s industries,
          but for the present it embarrassed the mercantile interest. The official
          report, dated March 7, 1811, of the parliamentary committee appointed to
          enquire into the distress of the autumn and winter of 1810-1, traced it partly
          to the excessive amount of goods thus imported, which had helped to bring about
          a sharp fall in prices, ranging from 40 to 50 per cent, in Lancashire goods. It
          further stated that the opening of new docks and the granting of facilities for
          placing goods in bond had attracted neutral commerce to an unexampled extent;
          and that the produce of Santo Domingo and of the newly conquered colonies came
          almost wholly to British harbours. “From Europe the importations from places
          from which the British flag is excluded have been immense.”
   The tone of the report is clearly optimistic. It
          sought to minimise the present distress, and omitted to state that in November,
          1810, the number of bankruptcies had been 273, nearly three times the average
          number. Nevertheless, in the main, its contentions were justified by events.
          The facts which it adduced as to the increase in the value of the exports of
          cotton goods (from £9,846,889 in 1808 to £18,616,723 in 1810) showed that this
          industry was successfully grappling with the strange conditions of the time,
          and had found in the new colonial markets a recompense for the partial loss of
          those of Europe. Indeed all clearsighted observers could see that the stores
          of colonial and tropical merchandise brought to British harbours would enable
          manufacturers, with the recent inventions of Watt, Crompton, and Cartwright at
          their disposal, to produce goods whose abundance, excellence, and cheapness
          would more than counteract the effect of the Napoleonic Decrees.
               Napoleon failed to notice the operation of these wider
          causes that made for the triumph of England in the commercial war; he saw only
          her present difficulties. In the English newspapers he read of the misery and
          discontent of a large part of her operatives, the spread of insolvency, and the
          rapid growth of taxation and of the National Debt. Mollien, Minister of the
          French Treasury, states that nearly all the Emperor’s advisers pointed
          jubilantly to the fact that British merchants lost 30 per cent, on exchange in
          their trade with the Continent, as a sure sign of the forthcoming collapse of
          that Power. This consideration probably furnished Napoleon with another
          inducement in favour of allowing corn and some other products to enter her
          ports. His great aim was to deplete the stores of bullion in London, lower the
          rate of exchange, and in every way undermine British credit. Finally, the old
          Jacobin illusion as to the inherent artificiality of England’s position induced
          him, in the latter half of the year 1810, to adopt in succession three
          measures, which, it appeared, must humble his rival in the dust. These were the
          Trianon Tariff of August 5, the Fontainebleau Decrees of October 18 and 25, and
          the annexation of the north-west coast of Germany at the close of 1810.
               The first of these devices arose, apparently, from a
          growing conviction that, despite his efforts to keep neutrals from trading with
          his enemy, all colonial products brought to Europe came from British colonies,
          being fraudulently sent by British merchants under cover of neutral flags. In
          his curious letter of August 20 to Lebrun, Napoleon states that in reality
          there are no neutral ships, for they all “pay ransom” to the English and
          transgress his rules. He also admits, in a letter of September 2, to Davout,
          that the “certificates of origin” mean nothing; they are all forgeries.
          Accordingly, he determined to tax all colonial imports. On the annexation of
          Holland and the confiscation of British goods, he had allowed Dutch merchants
          to send their colonial products into France on payment of a duty of 50 per
          cent, ad valorem; and they availed themselves of these terms. This seems to
          have convinced him that that class of goods could everywhere bear the same high
          duty, and that its imposition would serve to check smuggling on the coasts and
          frontiers, benefit the revenue, and equalise prices. Therefore, while staying
          at the Trianon, he devised the tariff of August 5; but its existence was kept
          secret and for a short time disavowed. It subjected every kilogramme of these
          articles to the following duties—American cotton 8 frs.;
          Levant cotton 4 frs. if imported by sea, and 2 frs. if imported by land; other cottons 6 frs.; cane-sugar 3 frs.; refined
          sugar 4 frs.; China tea 9 frs.;
          green tea 6 frs.; other teas 1 fr. 50 e.; coffee 4 frs.; indigo 9 frs.;
          etc. The average duty was about 50 per cent, ad valorem. In order to impose
          this tariff on his subject States, he sent secret agents to watch the chief
          trading centres of Germany and Poland, and to prepare for the seizure of
          illicit goods. He also sought to induce Prussia and Russia to adopt the same
          tariff, urging the great benefits that must accrue to their treasuries, solely
          at the expense of British merchants and smugglers. Frederick William obeyed his
          behest; but the Tsar refused to go beyond the terms agreed on at Tilsit.
          Napoleon further announced that all depots containing such wares and situated
          within four days’ distance of the frontiers of the Empire were liable to
          seizure; and he accordingly confiscated great stores of merchandise at
          Stuttgart, Frankfort, Bern, and elsewhere.
           Fortune placed a great prize in his power during the
          autumn. A large convoy of ships, which were nominally neutral but were laden
          with British goods, had sailed for the Baltic, in the hope of gaining the
          admission to Russian, Swedish, and Prussian ports that was still usually
          accorded. A long spell of easterly winds and the political uncertainties of the
          time kept them for some weeks near the Sound; whereupon Napoleon urged the
          Baltic Powers to confiscate the ships and cargoes. On October 19 he threatened
          to march against Prussia if she did not comply; and four days later he wrote to
          the Tsar in terms almost equally urgent, stating that England was in
          extremities, that her 600 merchantmen, now wandering about the Baltic, had
          been refused admission by Prussia, and that similar action on the part of
          Russia would help to end the war. Alexander yielded to the insistence of his ally,
          and confiscated many of the ships; Prussia and Sweden acted in the same way. A
          memorial sent by British merchants to the Tsar, and dated May 8, 1816, states
          that the cargoes then confiscated in Russia were valued at £1,500,000, and that
          this was the first occasion on which commerce between the two States had
          suffered serious loss.
               On October 18 and 25, 1810, Napoleon issued the famous
          Fontainebleau Decrees. The first ordered that all British manufactured goods
          found in the Napoleonic States should be seized and publicly burnt; the second
          established forty-one tribunals for the trial of persons guilty of introducing
          illicit wares and for the reward of informers and others who helped in their
          seizure. These Decrees provoked great discontent. At Frankfort the French
          garrison held the chief points of the city while the seizure and burning of
          goods went on; and everywhere men prepared to do without colonial goods rather
          than pay the exorbitant prices which the harassed dealers were compelled to
          charge. Hitherto the Continental System had not brought actual privations to
          the trading classes and their patrons. Indeed, some towns near the coast of the
          North Sea had even benefited from the contraband trade in British goods. Stuve, an eminent citizen of Osnabruck in the kingdom of
          Westphalia, states in his memoirs that in the years 1808-9 long trains of
          waggons used to bring these wares from the coast through that city on their way
          into central Europe and France, and that King Jerome himself connived at this
          profitable contraband trade. But the seizures and burnings of British produce
          in the autumn of 1810 ushered in an era of terrorism and want, which reached
          its climax for all true patriots when the north-west of that kingdom was
          annexed to the French Empire, along with the whole of the north-west coast of
          Germany, including the free city of Lübeck (Dec. 10, 1810).
           This event, together with the absorption of the
          Republic of Valais, resulted from Napoleon’s determination absolutely to
          control the trade centres of northern Germany and the Simplon road into Italy.
          He found from the reports of Davout at Hamburg that British and colonial
          merchandise came in from Heligoland and other small islands; while the coast of
          Oldenburg was a favourite resort of smugglers. The Emperor now pushed the
          policy of “Thorough” against Great Britain to its logical conclusion, in the
          manner described. The official statement accompanying the decree of annexation
          averred that that measure was “commanded by circumstances. The immense stores
          at Heligoland threatened ever to flow into the Continent, if a single point
          remained open to English trade on the coasts of the North Sea, and if the
          mouths of the Jahde, Weser, and Elbe were not closed
          against it for ever”. None of the Emperor’s acts caused more alarm than this.
          By the same reasoning, any coast-line of Europe where British goods were
          smuggled in could be annexed forthwith. Prussia was in no position to offer a
          protest; but the Tsar soon manifested his annoyance at the summary dethronement
          of his brother-in-law, the Grand Duke of Oldenburg. As will appear later, the
          Oldenburg affair, coming at a time when Alexander was beset by the complaints
          of his mercantile classes at the stoppage of all trade with England, paved the
          way for the war of 1812.
   
           The growth and completion of the Continental System
          having been traced, it remains to advert, as fully as limits of space will
          permit, to the relaxations of their fiscal and maritime codes which both
          combatants permitted themselves to make under the guise of licenses. These were
          first granted by the British Government, which in the year 1806 began to allow neutrals
          to trade in a manner ostensibly forbidden by the Orders in Council. The
          practice being found to be convenient for the export of British merchandise, as
          many as 2606 licenses were granted in the year 1807; in the year 1809 the
          number exceeded 15,000, and in the following year, 18,000. The greater number
          were allotted to neutrals or merely nominal enemies, as Sweden, Prussia, and Russia,
          which were thereby freed from search and detention by British cruisers at sea.
          On arriving at their destination, the masters could produce their other papers,
          which freed ship and cargo from confiscation under Napoleon’s edicts. This soon
          led to the practice of having two complete sets of papers, those only being
          produced which procured immunity from confiscation whether at sea or in
          harbour. A judge in the British Court of Admiralty stated in 1809 that the
          whole carrying trade of the world was being carried on under licenses, chiefly
          in hostile bottoms. The protests of British shipowners against this system and
          the capture of nearly 600 fraudulent neutrals in the Baltic in the autumn of
          1810 led to its decline after that time. Justice Phillimore, a severe critic of
          the system, blamed it as being contrary to the British Navigation Laws and
          unjust to honest neutrals, especially the United States, and as tending to
          foster bad faith and to place dangerously wide powers in the hands of
          officials. He states that licenses were often sold by British importers to
          their clients abroad, as much as 700 rix-dollars being paid for one by a
          merchant at Amsterdam. The merchants of Hull, in a memorial to Parliament
          (1812), also complained that licenses granted to our enemies had been the means
          of transferring to them a great part of the trade of that port. The only
          defence for the practice was that the Orders in Council could not be carried
          out rigidly, and that licenses facilitated British trade with the Continent,
          though at the cost of severe loss to British shipowners.
               Napoleon adopted somewhat analogous expedients in the
          years 1809-10; but his licenses were granted mainly for the export of French,
          Italian, German, or Prussian merchandise on ships of those countries. In
          August, 1810, at the time of the Trianon Tariff, he extended the system,
          allowing the importation of sugar, coffee, etc., into French harbours, on
          condition that French manufactures of at least equal value were exported.
          Thenceforth he and his officials strove to stimulate trade by these means;
          large bribes were given by merchants for the grant of licenses on favourable
          terms, and the silk trade derived some benefit from these expedients; but the
          whole system speedily became a synonym for misplaced activity, favouritism, and
          corruption.
               The warping influence exerted by the license system of
          the two combatants on their maritime and fiscal policy makes it difficult to
          come to any clear judgment on the efficacy of that policy in either case. The
          facts as to the internal economy of the French Empire at the crisis of the
          struggle (1810-1) are even more difficult of interpretation. The working of the
          Fiscal Decrees varied greatly at different times and places, according to the
          deviations allowed by the Emperor and the corruptibility of officials. The
          official statistics respecting commerce and industry are also open to
          suspicion. Freedom of the press did not exist; and few persons ventured openly
          to complain, or to petition against grievances.
               There is another disturbing factor that makes it
          difficult to form a conclusion as to the causes of French prosperity in the
          years 1806-10. In a land where the absurdities of the old agrarian system and
          the iniquities of taxation had crippled the working classes at every turn,
          prosperity was certain to increase as soon as the revolutionary legislation had
          time to take effect. For various reasons this did not take place until the time
          of the Consulate. The Napoleonic Empire therefore garnered the harvest sown by
          the men of 1789. The vastness of the area now thrown open to the operations of
          commerce, contrasting strongly with the restricted provincial areas existing
          before 1789, was another condition highly favourable to national prosperity;
          but it might be argued that the remarkable vitality of France during the Empire
          was due not so much to the Emperor as to the members of the Constituent Assembly,
          who struck the shackles from agriculture, industry, and commerce. In and after
          the year 1806 Napoleon imposed unheard-of restraints on foreign commerce, even
          on the operations of the corn trade, the supervision of which he held to be
          “the most important and the most delicate” duty for a ruler. The whole fabric
          of the Continental System rested on his conviction that, in the words of his
          Minister, Chaptal, he could make commerce “manoeuvre like a regiment.” The
          history of modern nations tends to show that such a policy is harmful in the
          main, however much it may stimulate particular industries.
               The impact of Napoleon’s forceful intelligence upon
          the industries of his 45,000,000 subjects led unquestionably to some beneficial
          results. When his Decrees practically excluded colonial wares, he sought to
          make the Empire entirely independent of them. Most characteristic and memorable
          was his action in regard to sugar. When it seemed that sugar must become an
          expensive luxury (it sold at six francs the pound in Paris in 1810) he charged
          his chemists to devise a substitute. The result is well known. A slight success
          was achieved in the making of grape-sugar by the chemist Proust; but the
          experiments of Barruel, Isnard, Delessert, Chaptal, and others led to a noteworthy
          triumph in the perfecting of the somewhat defective processes of manufacturing sugar
          from beetroot already attempted by Aehard in Germany.
          As soon as the new methods were known to be practically successful, Napoleon
          issued a decree (March 25, 1811), whereby 32,000 hectares (about 80,000 acres)
          were to be planted with beetroot for this purpose, six experimental schools
          being also founded for the instruction of scholars in the details of culture
          and manufacture. The most suggestive clause of the decree, however, is that in
          which he ordained the entire prohibition of cane-sugar coming from “the two
          Indies” on and after January 1, 1813, because it might be assumed to be of
          British origin. Similar success having attended the production of a kind of
          indigo from woad, the same decree ordered the cultivation of woad on a large
          scale, the founding of four experimental schools in connexion with that
          industry, and the entire exclusion of the indigo of the two Indies after the
          above-mentioned date. Other efforts, more or less successful, were made to
          thrust upon manufacturers throughout the whole of the Empire the use of certain
          Italian products.
   Some districts benefited by these Procrustean methods;
          and their gratitude was loudly proclaimed through the official press. The
          attempt, however, to force the produce of the Mediterranean by way of the
          Alpine passes to Mainz and Frankfort and thence throughout central Europe was
          clearly foredoomed to failure. A German, Eilers, who
          travelled down the Rhine in 1812, describes the stagnation of trade owing to
          the irritating trade regulations that prevailed; and from other sources it
          appears that the districts which now form the Rhine Province persisted in
          clinging to trade with Germany and reaped little benefit from the opening up of
          commerce with the French Empire. Baron Pasquier well
          sums up the result of Napoleon’s experiment in the statement that genius, even
          in its vagaries, produces memorable results; and that French industry and
          perseverance, supported by a million bayonets and an auxiliary force of douaniers,
          and thanks to the relief now and again afforded by the Imperial licenses,
          succeeded in meeting the needs of an enormous consumption.
   The success of the Continental System and with it the
          fortunes of Napoleon depended, however, not so much on France as on her subject
          lands and allies. Unless every one of them consented to endure the hardships
          which it imposed until Great Britain surrendered, the whole experiment was
          doomed to failure. Napoleon, with his usual discernment, had always assigned
          the first importance to a complete control of the coasts of the North Sea, and
          secondly to those of the Baltic, a fact which determined the general trend of
          his diplomacy after the renewal of war with England. Even down to the close of
          the campaign of 1813 he clung tenaciously to Hamburg, as being the natural
          inlet for British goods into central Europe. It will be well, then, briefly to
          review the condition of that free city while under his control. At first the
          trade of Hamburg suffered little from the French occupation, which began in
          1806. The French Minister, Bourrenne, was found to be
          open to bribes; and the compilers of the memoirs bearing his name assert that
          he did good service to his countrymen campaigning in Poland in 1807, by
          granting permission to German merchants secretly to procure 50,000 cloaks from
          England. He is said to have received altogether the sum of 558,000 francs from
          the city, besides a million more from merchants for immunities and licenses
          granted by him. Moreover, the proximity of the Danish port of Altona presented
          facilities for the smuggling of goods into Hamburg; and the sympathy of the
          whole population with the smugglers rendered the Berlin and Milan Decrees
          almost inoperative down to the year 1810. Lloyd, a British resident, states
          that most of the imports came in from Altona and other parts of the coast in
          waggons. Women also smuggled silks, lace, and coffee.
   The advent of Davout as commander of the French army
          in that part of Germany, and the Napoleonic Decrees of the summer and autumn of
          the year 1810, subjected the city to the severest hardships. In the following
          year more than 300 ships lay dismantled in the harbour; out of 428 sugar
          refineries only one remained at work; and all the cottonprinting works were closed. The more rapacious of the French officials seized goods
          which seemed to be of English make, even when satisfactory certificates of
          origin were forthcoming. Where all honest means of livelihood languished,
          informers plied a brisk trade. Employees, in order to spite their masters, were
          known to mix British goods with others in order to procure the condemnation of
          all. In short, all the conditions that clog the operations of trade reigned
          supreme in Hamburg. The extortions of the conquerors completed its misery.
          French officials seized the Treasury bonds, and confiscated a fund containing
          the savings of the old and the poor. The fate of the great free city was one of
          unequalled severity; but everywhere throughout Germany the Continental System
          produced feelings of exasperation and fear, which had no small share in
          bringing about the War of Liberation.
           The northern States naturally suffered most from the
          exclusion of colonial goods. Italy and France could supply several of the
          articles prohibited by Napoleon s Decrees; but the north Germans, Swedes, and
          Russians found no palatable substitutes for tobacco, coffee, and sugar. The
          influence of this fact on the formation of political opinion may readily be
          imagined. The resentment of those peoples was directed, not against the British
          merchants, whose ships or smuggling sloops occasionally hovered off the
          coasts, but against the Emperor who forbade the importation of the comforts of
          life or placed them beyond the reach of all but the most wealthy. Further, it
          must be noted that the export trade of those lands had consisted mainly of bulky
          articles such as timber, pitch, hemp, iron, corn, etc., sent to England. These
          were not adapted to contraband trade, as were the silks and muslins of southern
          climes. Consequently the export trade all but vanished, except when Napoleon,
          for revenue purposes, allowed occasional shipments from Danzig.
               Several circumstances served to make Sweden the centre
          of important political questions resulting from these economic facts. As has
          been already mentioned, Marshal Bernadotte became Prince Royal of Sweden and heir-apparent
          to the throne in August, 1810. The illness of the King speedily assured to him
          the chief place in the Government. It soon became clear that he was indisposed
          to support the policy of the Continental System, which had been forced on
          Sweden in the spring of that year. War ensued between England and Sweden in
          November; but in both countries there was no desire to resort to hostilities
          which were to the interest of Napoleon alone. Thanks to the combined tact and
          firmness shown by Sir James Saumarez, the British commander in the Baltic,
          little harm was done to Swedish commerce; and the way was left open for
          reconciliation. Napoleon, on the other hand, frequently showed his distrust of
          the Swedish Government, probably because Bernadotte was already aiming at the
          conquest of Norway from Denmark. The Emperor warned the King of Denmark of
          overtures in this connexion, and pressed his commercial decrees rigidly on
          Sweden. On March 25, 1811 (a date which marked the adoption of the harshest
          measures towards all the Baltic States), he asserted that, if a single cargo of
          colonial goods were landed in Swedish Pomerania, French troops would march in
          and establish the Imperial douanes.
               Meanwhile Alexander I had offended Napoleon by issuing
          the ukase of December 31, 1810, which virtually allowed the entry of colonial
          goods into Russia and prohibited the import of certain articles of luxury. When
          Napoleon upbraided his ally with this breach of the Treaty of Tilsit and sent
          troops eastwards, Russia and Sweden naturally drew closer together and laid the
          basis of that agreement which took definite form in the alliance of 1812.
          During the year 1811 the Tsar gradually abandoned the system prohibiting the
          entry of British goods: and the conclusion of peace between England and Russia
          in July, 1812 (as also between England and Sweden), virtually put an end to the
          Continental System. Already the British Government had repealed the Orders in
          Council, but too late to avert war with the United States. Commerce, however,
          began to follow its normal course in Europe, the downfall of the Continental
          System being assured by the campaigns of 1812 and 1813. The great commercial
          experiment broke down where failure might have been expected, namely, in
          Russia, Sweden, and northern Germany.
               If we may judge from the spoken and written utterances
          of Napoleon, he could never bring himself even to consider the possibility of
          failure. With his love of control and his passion for the handling of vast
          masses of details, he faced the problem of rearranging the commerce and
          industries of Europe as hopefully as he confronted its stupendous corollary,
          the expedition to Moscow. Very characteristic was his reply, on March 24, 1811,
          to a deputation from the General Councils of Commerce and Manufactures in France,
          on the occasion of the birth of the King of Rome. After twitting the deputation
          with its lugubrious opinions, he proceeded to justify the Continental System
          and stated that in about six months his sword would pierce England to the
          heart. As for his tariff, it would remain unchanged, for it did the utmost harm
          to British trade. The French Empire would soon produce enough sugar, indigo,
          and, perhaps, cotton, to do without imports of those articles; and Europe would
          no longer need trade with England and the colonies. Then, turning to the
          manufacturers, he blamed them for making too many goods and at too high a
          price. They had France, Italy, Germany, and a part of Spain open to them; that
          ought to satisfy their wants if they paid attention to the demand. As for
          England, she would soon be bankrupt. Austria was actually insolvent, and Russia
          was following her in that path. France alone had stores of bullion in the Bank.
          The whole address illustrates his proneness to illusions on the subject of
          commerce. That wise counsellor, Mollien, often noted that his master had failed
          to grasp some of its essential facts; and the Emperor’s letters yield proof
          that he believed the extreme dearness of colonial wares in Europe to be more
          harmful to the English vendor than to the continental consumer—a notion as
          mistaken as his suggestion that the confiscation of those products would be a
          good way of replenishing the coffers of Prussia, Westphalia, and Naples.
               The course of events was to prove that nothing could
          shake his belief in the efficacy of these suicidal devices. State after State
          was flung into the crucible of his mighty experiment; yet the looked-for result
          never came. Finally, in his constant straining after the one filial expedient
          that must assure the ruin of England, he came to the deathgrapple with Russia. It is difficult to believe that this was the man who, in other
          domains of thought, sneered at ideologues. He himself was the chief ideologue,
          the supreme dupe, of the age. As he looked round on the Europe of his day, he
          took no count of the mighty forces of the industrial revolution that then were
          girding England with the strength of youth and were connecting all parts of the
          world by indissoluble ties; what he beheld was a mirage conjured up by his
          vivid fancy and boundless egotism.
           Having reviewed the causes that determined the final
          hostility of the peoples of the north and centre of Europe to Napoleon’s
          policy, we may now glance briefly at the influence exerted by the combatants on
          certain points on the fringe of the Napoleonic system. While the French Emperor
          had the advantage of the central position in his commercial warfare with
          England, her efforts were necessarily confined to the seaboard and to certain
          outlying parts of Europe. She acted from Heligoland, from one or two of the
          Danish and Frisian islets, the Channel Isles, Lisbon, Gibraltar, Sicily, Malta,
          Corfu, and certain parts of the Turkish Empire. These were, so to speak,
          sword-points constantly held out against the central mass; and, according to the
          laws of supply and demand, their power to wound increased automatically as the
          master of the Continent strengthened the barriel’s separating it from the outer world. The occupation by the Sea Power of these
          points of vantage produced, in most cases, few if any noteworthy results of a
          political character. But the peoples of Sicily and Turkey were affected by the
          great conflict in several ways. This chapter will therefore conclude with a
          brief notice of their history during this period.
   The British occupation of Sicily was destined to
          exercise on the Italian people a far more abiding influence than that resulting
          from the long-continued presence of our forces in the Iberian peninsula. For
          this fact the two following reasons may be assigned. The Sicilians felt towards
          their royal House, that of the Spanish Bourbons, none of the sentiments which
          the Spaniards and Portuguese felt for their respective dynasties; and the
          political instincts of the townsfolk of Palermo and Messina were more akin to
          those of the British people than to the traditional policy of Ferdinand IV of
          Naples and his spirited Queen, Maria Carolina. The characters and careers of
          that ill-matched pair having been already described in a previous volume, it is
          needless to describe again the causes which dulled the affections of their
          subjects. Like other islanders, the Sicilians had always been remarkable for
          their clinging to ancient liberties. The preservation of their Parliament was
          to them far more precious than that of the dynasty. The Queen naively expressed
          the contrast between Naples and Palermo in a letter from the latter place to
          her daughter: “This is a different country; people are constitutional; the King
          has net a sou without the consent of Parliament; everything, including justice,
          is under dissimilar regulations and stands on a totally different footing; but
          we must put up with it.” The Parliament, it is true, was of a feudal rather
          than a democratic type. It consisted of three Chambers, barons, clergy, and
          tenants of the Crown, the last-named to some extent representing the chief
          towns. The Chambers met and voted separately; in the House of Peers the greater
          barons had several votes apiece. Parliament had the right of assembling at
          least once every four years; and during the vacations a committee of three from
          each Chamber supervised national expenditure and the carrying out of laws.
               Such was the framework of government in which
          Ferdinand IV and Maria Carolina found themselves placed by the events of the
          year 1806, which deprived them of the mainland. The efforts which Joseph
          Bonaparte put forth to gain Sicily would doubtless have been crowned with
          success, but for the presence of British forces at and near Messina. The danger
          to the Bourbon cause increased when Joachim Murat came to the throne in place
          of Joseph Bonaparte. The “beau sabreur” signalised his accession by a vigorous
          effort to retake Capri; with superior forces he succeeded in overpowering
          Colonel Hudson Lowe’s small garrison and compelling it to surrender (October,
          1808). This and other adverse events failed to damp the ardour of the Queen for
          the recovery of the mainland. The volcanic passions of her earlier years had
          now sunk into a dully glowing hatred, the outcome of opium, of her many
          disappointments, and of her resentment at the clownish indifference of the
          King. She spent large sums in stirring up revolts in Calabria; she maintained a
          small army of spies to watch every event on the mainland; she secretly helped
          to equip the privateers that preyed on Neapolitan merchantmen, and was
          subsequently proved to have had no small interest in the spoils. In her growing
          rage at her impotence, she sent a brigand chief with 300 galley slaves to
          overthrow a sovereign who had Napoleon’s legions at his back; and there are grounds
          for suspecting her of complicity in attempts at political assassination at
          Naples. Above all she fumed ceaselessly at the prudence that held back Sir John
          Stuart, commander of the British force in Sicily, from supporting these mad
          enterprises. Variable in all else, she showed unvarying dislike to the British
          commanders who succeeded Sir Sidney Smith on that station; in fact, hostility
          to England on points of detail tended to become as strong a motive at the
          Bourbon Court as hatred to Napoleon had been on the ground of principle. The
          efforts of an Anglo-Sicilian expedition against the Neapolitan coast in the
          year 1809 having ended in failure, the Queen was reported to have set on foot
          intrigues with Murat’s agents with a view to the eventual restoration of the
          mainland to Ferdinand IV, Murat receiving compensation elsewhere.
               The truth on this matter will perhaps never be cleared
          up. That either Napoleon or Murat and his consort seriously entertained the
          thought of restoring Naples to the Spanish Bourbons is incredible. The
          Emperor’s correspondence shows that he never lost sight of the need of
          conquering Sicily; and, if King Joachim ever entertained the overtures of Maria
          Carolina, it was assuredly only with the aim of weakening the Anglo-Sicilian
          alliance. That Queen, however, with her usual proneness to self-delusion and
          intrigue, kept up secret communications with Naples and the Court of Vienna
          through the years 1810-1, in a way that aroused the gravest suspicions of the
          British Government. The United Kingdom had acquired the right to some measure
          of control over the policy of the Court of Palermo, firstly by providing the
          naval and military support which alone enabled that Court to exist, and
          secondly by the terms of the treaty of alliance signed at Palermo on March 30,
          1808. These prescribed the furnishing of all possible means of mutual support
          by both parties in the present war, the maintenance by Great Britain of a force
          of not less than 10,000 men in Sicily, and the payment of a yearly sum of £300,000
          to its Court, as well as the conclusion at an early date of a treaty of
          commerce on conditions favourable to British trade. The Sicilian Government
          also promised not to make a separate peace with Napoleon; while Great Britain
          covenanted not to come to terms with him unless the interests of His Sicilian
          Majesty were safeguarded. Obviously the protecting Power had the right to
          insist on the due observance of this treaty; and, when the Queen was believed
          to be intriguing with her nominal enemies, when further her privateers captured
          a British merchantman and great difficulty was experienced in obtaining its
          release, friction between the parties was inevitable.
               Despite the increase of the British subsidy to
          £400,000 in answer to the unceasing appeals of the Queen, her extravagance was
          such as to provoke a serious conflict with the Sicilian Parliament. That body
          met at Palermo on January 25, 1810; and Ferdinand, the mouthpiece of the
          Queen’s desires, proposed that it should increase the subsidy to the Crown from
          250,000 ounces to 300,000 ounces (the ounce was then equal to 13s. 4d.),
          besides making further donations to the Queen and to the infant daughter of the
          Crown Prince. To these demands the Parliament, especially the Chamber of
          Barons, demurred; they had long been incensed by the favour shown to Neapolitan
          courtiers and by the exclusion of Sicilians from the Government, and now
          evinced their annoyance at the many abuses of the State by granting only
          one-half of the required sum. Like Charles 1 of England in similar circumstances,
          Ferdinand dissolved Parliament, only to find its successor still more
          refractory. Thereupon the Queen urged him to adopt various illegal expedients,
          including even the sale of monastic lands through the medium of lottery
          tickets. To these measures Parliament opposed an unswerving resistance, with
          the result that on July 19, 1811, Ferdinand arrested five of the baronial
          leaders, including the able and determined Prince of Belmonte. A deadlock now
          ensued, fatal to industry and commerce, and jeopardising the very existence of
          the State.
               It was in these circumstances that the British
          ambassador, Lord Amherst, retired in favour of Lord William Bentinck, who was
          to combine with his diplomatic duties those of commander of the British troops.
          The urgency of the crisis called for some such concentration of power in the
          hands of a strong man. Great skill and tact, however, were needed to disabuse
          the Queen of the notion that the English were about to seize Sicily and either
          keep it themselves or use it as a piece in some diplomatic game of exchange.
          Unfortunately Bentinck lacked the qualities of charm and graciousness that were
          needed to win over the Queen to a true view of the situation. Stiff' and
          unsympathetic in manner, he offended Maria Carolina from the outset, as later
          he offended her subjects. Meeting with firm resistance at Court, he sailed for
          London, and came back in December, 1811, armed with yet wider powers, which
          enabled him to stop the British subsidy until the terms of the treaty of 1808
          were sincerely carried out. Financial needs and a threat that Palermo would he
          occupied by British troops finally induced the King and Queen to capitulate,
          Ferdinand agreeing, on the pretext of illness, to hand over the government to
          his son, whom he named his alter ego (January 16, 1812). The Crown
          Prince at once restored the barons to favour, repealed the illegal taxes, and
          appointed more popular Ministers. Yet Bentinck’s suspicions of the Queen
          remained unabated; and when, in the month of March, he acquired further proofs
          of her correspondence with the French, he insisted on her removal into the
          interior of the island.
   Meanwhile Castlereagh, who had succeeded Wellesley as
          Foreign Minister in Downing Street, deemed the time to be ripe for the application
          of British institutions to Sicily as an antidote to the Napoleonic reforms
          which were beginning to take root in the Peninsula. Reluctant as the Crown
          Prince was to introduce a foreign Constitution, yet his desire for cordial
          relations with England, in order to attempt the conquest of Naples while Murat
          was absent in Russia, brought him to acquiesce in Bentinck’s suggestions.
          Accordingly the Parliament which met at Palermo in June, 1812, proceeded to
          discuss and finally to adopt a Constitution which was modelled closely on that
          of Great Britain.
               Had this Constitution been promulgated under more
          favourable conditions, it would probably have taken firm root; but this was impossible
          amidst the disputes and miseries of the year 1812. The abolition of feudal
          privileges annoyed many of the leading families; and their discontent enabled
          the Queen to make one more bid for power. She spurred on the King to give up
          the amusements of his country-seat and to resume his authority. Ferdinand
          obeyed. On March 9, 1813, he suddenly appeared at the palace at Palermo, and
          announced that, having recovered his health, he intended to resume the
          government. Again Bentinck intervened, and threatened that, unless the
          Constitution were respected, the British alliance would cease forthwith. The
          Prince of Belmonte and Ruggiero Settimo also resigned
          their offices. Under severe pressure from both sides, Ferdinand listened to the
          advice of his son-in-law, the Duke of Orleans, and promised to withdraw to the
          country. Bentinck, however, now insisted on the departure of the Queen from the
          island, an expedient which had already been more than once discussed. After
          long and painful disputes, she left Sicily with her son and a few attendants,
          proceeding to Constantinople, Odessa, and finally to Vienna. Even there fate frowned upon this unhappy woman, great only in
          her misfortunes. As she was about to return to Palermo and triumph at the fall
          of her many enemies, the hand of death intervened and laid her low at the
          castle of Hetzendorf (September 7, 1814).
   In the meantime the overthrow of Napoleon led to the
          resumption by Ferdinand of his old governing powers (July 6, 1814). There being
          now no reason for the former strict control of Sicilian affairs, Bentinck was
          unable to prevent the ultra-loyalists from working havoc in the Constitution of
          1812. It soon became little more than a memory. But, as the tide of reaction
          rolled over Italy, that memory was held dear; and, when the Sicilians in 1848
          lit the torch of revolution that was rapidly to be passed on from capital to
          capital, their veteran leader, Ruggiero Settimo,
          summed up their experience of the past and their hopes for the future in the
          cry “Separation from Naples, or our English Constitution of 1812.”
           
           The mighty forces of the Revolutionary and Napoleonic
          era, which shattered some of the greatest States of Europe, led to strange
          shifts of fortune in the Ottoman Empire. That corner of the Continent formed as
          it were a great side-eddy which changed according to the volume and direction of
          the main current of events. The survival of Turkish rule in Europe never seemed
          more hopeless than in the years 1789-91 and 1798-1801, and again in the period
          after the Treaty of Tilsit. Yet Turkey emerged from this cataclysmic epoch
          almost unchanged, perhaps even stronger than at its beginning.
               The accession to power of Selim III in 1789 occurred
          at a time of unequalled calamity, brought on by the persistent attacks of
          Catharine II of Russia and Joseph II of Austria. In vain did the young Sultan
          set an example of austerity and vigour, and call his whole people to arms
          against the infidels. The Moslems were several times defeated by Suvoroff and Laudon. Only the death of Joseph II (1790) and
          the conclusion of a timely Prusso-Turkish alliance
          saved Turkey from overwhelming disaster. The new Habsburg ruler, Leopold II,
          came to equitable terms with her at Sistova (1791);
          but Catharine II insisted oil heavy sacrifices in the Treaty of Jassy (1792),
          namely, the. cession of all the Turkish lands east of the river Dniester, the
          Sultan also virtually acknowledging the suzerainty of Russia over Georgia, Imeritia, and Mingrelia. Even this success seemed to the
          ambitions Tsarina merely a stepping-stone to the longed-for conquest of Constantinople;
          but the crises in the affairs of Poland and France drew off her attention
          towards central Europe almost down to the time of her death in 1796. Her son,
          Paul I, at first adopted a peaceful policy, thus affording to Selim a time of
          respite for the many reforms which were most urgently called for.
           It is difficult to conceive the disorder of the Sultan's
          dominions at that time. His authority over the Moslem States of northern
          Africa, was of the slightest. The rise of the Mameluke power in Egypt left,
          only the shadow of authority in the hands of the Turkish Pacha at Cairo. The Wahabites were masters of nearly the whole of Arabia. The
          Druses and other tribes of the Lebanon district were virtually independent; at
          Acre the savage Gezzar put to death the Sultan’s
          messengers with impunity; and taxes were generally withheld by the Pachas of
          Bagdad, Trebizond, and Akhalzik. In Europe the Pacha
          of Widdin long defied the Sultan’s authority; and the
          notorious Ali Pacha had made good his independence in Albania. The Suliotes and Greeks felt the pressure of their pacha’s
          rule, but rarely that of the Sultan. Worst of all, Russia accorded her
          protection to the hospodars of Moldavia and Wallachia; and the Treaty of Kutchuk Kainardji (1774) had given her the light to champion the claims of all the Christian
          subjects of the Porte. As the custom of farming out the taxes placed immense
          powers in the hands of the local pachas, beys, and agas, as well as of the
          money-lenders whom they employed, the Sultan’s authority was liable to be
          thwarted in every conceivable way. The armed forces of Turkey, paid and unpaid,
          were a source of weakness rather than strength. By far the most important among
          them was the privileged Order of the Janissaries, comprising some 150,000
          members, though many of these were not liable to service in the field. They
          considered their membership as hereditary, generally appeared in the ranks only
          on pay-days, and exercised authority in the towns where they were settled. They
          had long possessed valuable trading rights, and, in fact, claimed to represent
          and enjoy the rights of the old Moslem conquerors, especially against the
          Christian rayahs.
           Braving the opposition which the Janissaries were
          certain to offer, Selim now began to reorganise his armed forces on the
          European model, and introduced some uniformity in regard to arms, drill, and
          discipline. The opening of closer diplomatic relations with France in 1796,
          when, for the first time, the Porte despatched an ambassador to reside at
          Paris, enabled the French ambassador, Aubert Dubayet,
          to take with him to Constantinople several officers, together with well-mounted
          pieces of artillery. But little progress was made. The Janissaries refused to
          make any change in their traditional methods; and the rupture with France,
          brought about in 1798 by Bonaparte’s Egyptian expedition, stopped all progress,
          except in the organisation of the Turkish artillery. Greater success attended
          Selim’s efforts to improve the civil administration. By curtailing the powers
          of the Grand Vizier and the pachas who governed provinces, he somewhat
          strengthened the fabric of government and the productiveness of the revenue;
          but his efforts to abolish the farming of taxes led to no general result. He
          established regular embassies not only at Paris, but also at London, Vienna,
          and Berlin.
   Despite Selim’s efforts, Turkey was wholly unprepared
          to meet the dangers resulting from Bonaparte’s expedition; and without the aid
          of Nelson she would probably have lost both Egypt and Syria. Scarcely freed
          from that danger, she was on the verge of others equally serious at the
          beginning of the year 1801, when Bonaparte and the Tsar Paul prepared for an
          invasion of Asia Minor preparatory to the conquest of India. Once again,
          however, the restoration of the balance of power in Europe served to avert the
          projected partition of the Ottoman realm. Peace was concluded with France at
          Amiens (March 25, 1802), when the Republic recognised the integrity of the
          Turkish Empire, procured the renewal of the former “capitulations” between the
          two Powers, and gained the right of sending French ships into the Black Sea. In
          one quarter the war had not been unfavourable to the Sultan’s power. The fall
          of the Mamelukes (an event furthered by the perfidious massacre of several of
          their chiefs by the Turks) paved the way for the gradual advancement of Turkish
          authority in Egypt. The death of Gezzar Pacha at Acre
          in 1804 also had a similar effect on Syrian affairs. On the other hand, the
          successes of the Wahabites in Arabia and their
          capture of Mecca and Medina in 1804 spread abroad the belief that the
          innovations of the Sultan were displeasing to Allah. Nevertheless Selim
          proceeded with his military reforms. In the year 1804 he organised the
          artillery, and placed it on a footing of privilege superior to that of the
          Janissaries; and in March, 1805, he decreed that the finest youth of the Empire
          should be taken, even from the Janissaries themselves, and enrolled among the
          Nizams or regular infantry. The privileged corps flatly refused to obey this
          decree, and in some cases killed those who strove to put it in force.
   Selim’s difficulties at this time were increased by a
          formidable rising of the Servians. Galled by the
          oppressions of the Janissaries and encouraged by promises of help from Russia,
          the distressed rayahs rose under the lead of Kara George and Milosch Obrenovitch, foiled a
          plot of the Janissaries for a general massacre, and captured some of the
          strongholds of Turkish tyranny in their land. Their revolt was directed firstly
          against the turbulent Janissaries of Belgrade; and they sought to prove that it
          tended to strengthen the Sultan’s authority in the province. Selim, however,
          could not side with Christians against the faithful; he arrested their
          deputies, and ordered Afiz, the Pacha of Nissa, to disarm the whole population. The Christians
          scorned all thoughts of surrender, now that the Sultan was threatened by
          hostilities from Russia and by a general mutiny of the Janissaries. Kara George
          defeated the pacha; and in the campaigns of 1806-7 the Servians not only drove back other Turkish forces but finally succeeded in capturing
          Belgrade and the remaining Turkish strongholds. At the close of this War of
          Liberation, military and governing powers were allotted to military chiefs, or
          voivodes, among whom Kara George enjoyed a preeminence corresponding to his prowess and masterful will. A Skupshtina,
          or General Assembly of warriors, formed the ultimate source of authority; it
          deputed administrative and legislative powers to a Senate of twelve members;
          and by degrees a civil magistracy was established for each district. The
          suddenness with which a formerly down-trodden people cast off its yoke and
          established its own institutions stands in marked contrast to the helplessness
          of the Sultan’s Government and the brutish opposition of his privileged classes
          to all reform.
   In the midst of these troubles, the subtle French
          diplomatist, General Sebastiani, arrived at
          Constantinople (August 9, 1806). Napoleon’s instructions (dated June 20, 1806)
          directed the envoy to form a Franco-Perso-Turkish alliance against Russia, and
          to urge the Sultan to keep a firm grasp on Moldavia and Wallachia. Sebastiani soon succeeded in touching Turkish pride on the
          latter question; and, despite the threats and protests of the Russian and British
          envoys, Selim deposed the hospodars of these
          provinces (August 24). This amounted to a declaration of war against the Tsar,
          who speedily sent an army across the Pruth and
          reduced Bucharest (December 27). In February, 1807, a British fleet under
          Admiral Duckworth forced the passage of the Dardanelles but failed before Constantinople.
          Equally unfortunate results attended a British expedition to Egypt. Meanwhile
          the campaign in the valley of the Danube languished. The main forces of the
          Russians were always directed against Napoleon; and Selim’s efforts were
          thwarted at the outset by the selfish obstinacy of the Janissaries, who
          intercepted and routed a force of Nizams. Elated at this success, the
          reactionaries determined to rid themselves of the reforming Sultan. With the
          help of a fawning traitor, the Kaimakam Mousa Pacha,
          the Janissaries of the capital marched to the seraglio, which was undefended,
          deposed their master, and placed on the throne Mustapha IV, the son of Abdul
          Hamid I (May 29, 1807). His tenure of power was short. A truce with the
          Russians in August having set free the forces of Bairactar,
          the Pacha of Rustchuk, that officer marched to the
          capital with the intention of restoring Selim, only to be foiled at the last
          moment by the murder of the deposed ruler at the hand of Mustapha’s eunuchs.
          After wreaking vengeance for this crime, Bairactar raised to power Selim’s young cousin, Mahmoud II (July 28, 1808), whose
          firmness and ability enabled him ultimately to carry out many of Selim’s
          reforms.
   His difficulties seemed overwhelming at the outset.
          The news of Selim’s deposition, which arrived during the conferences at Tilsit,
          furnished Napoleon with an excuse for a complete change of front; the
          Franco-Russian compact aimed at the spoliation of the Turkish Empire. Motives
          of policy alone led Napoleon to defer this undertaking to a time when France
          should be firmly established on the Albanian coast, in Sicily, and in Spain. As
          has been already shown, the Emperor’s aim of using the naval resources of Spain
          for the furtherance of his Eastern schemes set in motion the great events of
          the Spanish rising, which brought salvation to Turkey. The Emperor’s policy at
          the Congress of Erfurt also served to prolong the time of respite ; while, on
          the other hand, the Tsar’s growing fear of his western rival held him back from
          the prosecution of vigorous measures against the Turks. Great Britain, also,
          after coming into collision with Russia, had no interest in pressing
          hostilities against the Turks, and, thanks partly to the friendly services of
          Austria, came to terms with the Porte in the Peace of the Dardanelles (January,
          1809).
               While, however, the diplomatic situation underwent an
          almost miraculous change in favour of the new Sultan, he failed to cope with
          the internal disorders. Sir Robert Adair, British Minister at Constantinople,
          reported the utter disorganisation of the government, of the finances, and of
          the armed forces, whose fierce brawls were not stayed even in presence of the
          enemy. At the close of the war with Austria, Alexander sent larger forces to
          the Danube; and the end of the campaign of 1809-10 saw him master of the
          strongholds on that river. In the following year the prospect of war with
          Napoleon imposed prudence on the Russians; but no considerations of patriotism
          put an end to the feuds of rival pachas and the exasperating pretensions of the
          Janissaries. On both sides, therefore, there was a readiness to come to terms;
          and, after lengthy negotiations, the Treaty of Bucharest was signed (May 28, 1812).
          The Sultan thereby ceded to Russia the Moldavian lands to the east of the Pruth, and promised to grant an amnesty to the Servians. He insisted, however, that the Servian fortresses
          should once more be garrisoned by Turkish troops; and to this the Tsar
          consented. The Servians, who had put forth great
          efforts on behalf of their co-religionists, thus saw one great result of their
          War of Liberation bargained away by their avowed champion.
   Thus, by a singular concurrence of events, Turkey more
          than once during this period escaped a doom which seemed inevitable. Alone
          among the great Powers of the Continent, she escaped the grinding pressure of
          events which compelled them to reorganise their governments, their armies, and
          even their polities. Whether, in the like case, she would have been driven to
          employ the same healing process, is very questionable. What is certain is that
          she alone of the great States drew no new sources of strength from the strains
          and calamities of the time. Even the peculiarities of the Continental System,
          which might have given a great impulse to the trade of Turkey, as the only
          neutral State in Europe, led to no noteworthy result. The passage of stores of
          contraband goods through Salonica and the Albanian ports into central Europe served
          to invigorate the maritime instincts of the Greeks and Albanians; it breathed
          no new life into the torpid frame of Turkish industry. Above all, the Ottomans
          themselves felt none of those longings for reform which were implanted by the
          events of the Napoleonic era among the peoples of Germany, Italy, Spain, and
          Portugal, and were destined to triumph over the reactionary forces of the
          succeeding age. Barren in regard to legislative achievements, the life of
          Turkey was barren also of those popular impulses, which, under wise guidance,
          strengthen the fabric of the State and invigorate the whole nation.
               
           THE FRENCH DEPENDENCIES, AND SWITZERLAND.
                 
 
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