| READING HALLTHE DOORS OF WISDOM | 
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| A HISTORY OF MODERN EUROPE : A.D. 1453-1900
 CHAPTER XXVIII.RELIGION AND COMMERCE 
           AT the peace of Vervins a century had elapsed since the French, by their
          incursions into Italy, had inaugurated the modern European system, and the
          result up to this time had been entirely in favour of
          their Spanish rivals. Spain had succeeded in seizing and retaining the two Sicilies and the Duchy of Milan, and, in spite of a
          wretched system of administration and the revolt of her provinces in the
          Netherlands, was still incontestably the leading Power of Europe. The Spanish
          infantry continued to retain their prestige; the conquest of Portugal helped to
          support the declining power and reputation of Spain; and we have beheld Philip
          II, towards the close of his long reign, aspiring, with perhaps even a better
          chance of success than his father, Charles V, to universal monarchy, by the
          conquest of England, and the reduction of France under his dominion by placing
          his daughter on the throne. These successes, however, were due, not to the
          strength of Spain, but to the weakness of her adversary. Torn by her religious
          wars and the anarchy of the League, France was unable to compete with a rival
          in which those disturbing causes were absent; and as soon as they ceased to
          operate she rapidly rose to her true position. The question of religion was
          also the mainspring of action in England and the Netherlands. Thus the
          Reformation forms the key to the political state of Europe at this period, and
          as its effects were to continue another half century, namely, down to the peace
          of Westphalia, it will be proper here to take a view of its progress, and the
          changes which it had effected.
   About the middle
          of the sixteenth century Protestantism had established itself in the
          greater part of Europe. The doctrinesof Luther had
          become the national religion of the Scandinavian kingdoms, of East Prussia,
          Livonia, and the northern parts of Germany. In Bavaria a large majority of the
          nobles had embraced them, and the same creed had made still greater progress in
          Austria, where it was computed that only one-thirtieth part of the population
          remained faithful to the Roman Church. In 1558 a Venetian ambassador reckoned
          that only one-tenth part of the whole German people were Roman Catholics. In
          Poland, although the King himself was a Roman Catholic, many of his subjects
          had adopted the reformed doctrines. These also prevailed very extensively in
          Hungary, where, in 1554, a Lutheran had been elected Palatine. In Bohemia the
          large Hussite party already established could not but derive additional
          strength from the religious movement in Germany. Calvinism, still more inimical
          to Rome than were the docrines of Luther, had from
          Geneva, its centre and stronghold, spread itself in
          all directions in Western Europe. In the neighbouring parts of Germany it had in a great degree supplanted Lutheranism, and had even
          penetrated into Hungary and Poland; it was predominant in Scotland, and had
          leavened the doctrines of the English Church. In France it had divided the
          population into two hostile camps. The Venetian ambassador Micheli relates that, immediately after the death of Francis II in 1560, fifty
          preachers had issued from Geneva and settled themselves in various French
          towns. When Micheli paid a visit to that metropolis
          of Calvinism he was struck with astonishment at the veneration in which the
          great French reformer was held, and at the vast sums of money which he received
          in aid of the thousands who had taken refuge at Geneva. In the Netherlands the
          doctrines of Calvin supplanted those of Luther. Tiepolo, another Venetian
          ambassador, says that all the Pope could reckon upon as sound and secure was
          Spain and Italy, with a few islands and the Venetian possessions in Dalmatia
          and Greece.
   Counter-Reformation
           The proceedings of
          the Council of Trent drew an insuperable line of demarcation between Catholics
          and Protestants; all idea of conciliation was abandoned, and the hostility of
          the two parties stood out in bolder relief. The violent and impolitic conduct of
          Pope Paul IV also tended to widen the breach. From his antipathy to the House
          of Austria, Paul broke with the Imperial party and drove the Emperor Ferdinand
          to cultivate the friendship of the Protestants. He acted in the same
          inconsiderate manner towards England. Instead of endeavouring to conciliate Queen Elizabeth and the English nation, Paul repulsed her
          ambassadors by his haughty demands, deprived Cardinal Pole of his legateship, endeavoured to re-establish Peter's pence, and annulled
          every alienation that had been made of Church property; nay, so blind was he to
          his own interests that he was even hostile to Philip II, the great prop of the
          Roman Catholic cause. But soon after his pontificate a reaction began in favour of the Roman Church. Shaken to her very centre by the Reformation, Rome found means to reclaim vast
          numbers of apostates, and to recover a large share of her former influence and
          power. As this Counter-Reformation is the most striking feature in the history
          of the latter half of the sixteenth century, and lay at the root of the Thirty
          Years' War, it may be worth while to inquire into the
          causes of so remarkable a reaction.
   Among these causes
          we may note the reform effected in the Roman Curia itself. The first part of
          the sixteenth century had been characterized by a general relaxation of the
          discipline and authority of the Church; profane studies, literature and art,
          had usurped the place of religion; and Rome herself seemed to have forgotten
          her hierarchical character. But the conduct of Pius V, and of several exemplary
          Pontiffs who succeeded him, had a great influence in amending the lives of the
          Roman prelates. At the beginning of the century the Cardinals levied war on the
          Pope, or hatched conspiracies against him; while the Pope himself did not
          scruple to gird on the sword and to lead his armies to battle like any temporal
          Prince. But towards the close of the same era everything was done in the name
          of religion; a ceremonious behaviour began to prevail
          in the Roman Court, and the outward forms at least of piety and virtue were
          strictly observed. A similar reformation took place in other Roman Catholic
          countries. At the beginning of the seventeenth century, the ancient monastic
          orders, the Benedictines, Dominicans, and Franciscans were vigorously reformed
          in France; and to such a degree were austerities carried among some of the
          religious communities of women, that fourteen Feuillantines are said to have died in one week. The celebrated Cistercian nunnery of
          Port-Royal was distinguished by its nocturnal vigils, its unbroken silence, and
          perpetual adoration of the Eucharist. This was also the period of the reforms
          and labours of St. Francis de Sales in Savoy and of
          St. Theresa in Spain. At the same time the belief in miracles was revived and grew
          owing to the spread of marvellous tales At San
          Silvestro an image of the Virgin spoke, and the desolate region which
          surrounded her shrine, such was the attraction of the miracle, was soon
          occupied with houses. Similar portents became frequent, and spread from Italy
          into other countries. By these and the like acts did the clergy recover their
          reputation, and with it a large share of their former power.
   But the chief
          instrument of Catholic reaction was the Society of Jesuits, to whose
          foundation we have already adverted. The use that might be made of that
          body in retrieving the fortunes of the Church was quickly perceived; and
          Pope Julius III, soon after his accession, in 1550, conferred upon them vast
          privileges which roused the jealousy of the regular orders. They were
          empowered to grant degrees to competent persons whose poverty debarred
          them from studying at a University: a privilege which, by drawing to them
          the youths of talent among the lower classes, gave them the command of
          education, and enabled them to mould at an early
          age the pliant consciences of their pupils. Their method of instruction
          was most artful. They reduced study to a sort of mechanical process, whose
          results were quick but superficial; and even Protestant parents, dazzled
          by their success as teachers, confided to them their children. As they
          thus formed the principles of the younger portion of the community by
          means of education, so likewise the unreserved power conferred on them of
          granting absolution, enabled them to obtain the direction of the
          consciences of older persons, by assuming the functions of confessors. The
          absurd quarrels of the Protestants among themselves, and particularly that
          concerning original sin, contributed not a little to the success of the
          Jesuits.
   It was about the
          middle of the sixteenth century that the Society of Jesus began to spread
          themselves throughout Europe. In 1548 the Duke of Bavaria, William I, appointed
          to the chairs of theology, at Ingolstadt, the Jesuits Le Jay, a Savoyard,
          Salmeron, a Spaniard, and the celebrated Peter Canisius, of Nymegen.
          Hence Ingolstadt soon became of a like importance as a Catholic seminary, as
          Wittenberg for Lutheranism, or Geneva for Calvinism. Favoured by William I and his son and successor Duke Albert III, the Jesuits gradually
          acquired the direction of all the Bavarian schools. They were likewise
          encouraged by the Emperor Ferdinand in Bohemia and Austria; and it was at the
          request of that Sovereign that Canisius, who did more than any man for his
          Society in Germany, drew up his Summa Doctrinae Christianae, from which he afterwards
          extracted his celebrated catechism. In 1551 Ferdinand established a Jesuit's
          college at Vienna, which he soon after incorporated with the University; in
          1556 he removed some of them to Prague : and by that year their influence may
          be said to have extended over Bavaria, Tyrol, Franconia, Suabia,
          Austria, and the Rhenish lands, and also to have been felt in Hungary, Poland,
          Bohemia, and Moravia. In 1578, as related in the preceding chapter, Protestantism
          was utterly proscribed in the Austrian dominions. In Poland, Cardinal Hosias, Bishop of Ermeland,
          founded a college for the Jesuits at Braunsberg, in
          1569. At the beginning of the seventeenth century, the Polish Jesuits nearly
          succeeded in effecting a revolution in Russia, and bringing that country within
          the pale of the Roman Church. After the murder of the legitimate heir,
          Demetrius Ivanowitch, and the usurpation of the
          throne by Boris Godenuff, a Muscovite Boyard, a false Demetrius appeared in Poland, the Jesuits
          took up his cause, procured his recognition in Poland and the help of an army,
          with which they entered Moscow after the death of Boris, who had died during
          the struggle. But the Muscovite nation soon recovered from its surprise;
          Demetrius was massacred, the Poles were expelled from Moscow, and the hopes of
          the Church of Rome entirely frustrated.
   It was not till a
          rather later period that the Jesuits obtained a footing in France, and at
          first in places remote from the capital. At Paris, as we have already
          related, they met with great opposition; the University, the Sorbonne, and the
          Parliament, who thought their privileges invaded, united in bitterly
          opposing them. By perseverance, however, they gradually succeeded in
          establishing themselves : and, in 1564, were allowed to become teachers.
          Three years later a magnificent college was erected for them at Lyons; in 1574
          the Cardinal of Guise founded a Jesuit College at Pont-a-Mousson; and they
          also established themselves in other important towns. Their ranks at this
          time included many men of distinguished talent, and wherever they appeared the
          numbers of the Roman Catholics were observed to increase. In 1574 a
          Jesuit college was founded at Lucerne, in Switzerland, to which the Pope,
          the Catholic King, and the Guises are said to have contributed.
   But although the
          religious struggle in France ended, as we have seen, in favour of the Roman Catholic Church, the authority of the
          Pope and of the Jesuits never attained to any extraordinary height in that
          country. The Jesuits succeeded, indeed, in procuring the revocation of the
          banishment inflicted on them after Chatel's attempt on the life of Henry IV; that King even gave them the site for
          their College at La Fleche, whither his heart was carried after his
          murder; yet in general they continued to be unpopular among the French. In
          1611 the inhabitants of Troyes opposed their establishment in that city, on the
          ground that they were fomenters of discord and division; in the same year,
          the University of Paris frustrated their attempt to teach publicly in
          their renewed college, and compelled them to content themselves with
          privately instructing, by means of salaried masters, the boarders whom
          they were permitted to keep in their house. In 1614 the Parliament of
          Paris ordered to be burnt a book of the Jesuit Suarez, entitled Defense
            de la Foi Catholique Apostolique contre les erreurs de la secte d'Angleterre, on the ground of its advocating
          the assassination of Sovereigns. It was remarked that, though other
          religious societies had produced assassins, the Jesuits were the only one which
          supported assassination systematically and on principle. The deed had a
          law of its own. It was not to be perpetrated at the arbitrament of a private
          individual, but it might be lawfully carried out by the decree of an
          ecclesiastical tribunal; and this view the Jesuits founded on the 15th decree
          of the Council of Constance, which anathematized those only who attempted such
          an act without having first procured a mandate for it.
   The Huguenots
           Altogether,
          therefore, the movement against the Reformation was not so successful in France
          as in Austria and Bavaria. The Edict of Nantes was, in fact, a compromise which
          still left the Huguenots a powerful party—a sort of imperium in imperio. They had their cautionary towns, an organized
          army, their representative charter, their assemblies; they had even their
          great seal, of which the device was Religion leaning on the cross, holding the
          sacred volume in her hand, and treading under foot an aged skeleton intended
          to represent the Romish Church. Thus they possessed an organization
          which enabled them, in times of disturbance, to break through all the
          checks and restraints which it had been endeavoured to place upon them. But the zeal and energy of their leaders had died out.
          Sully, Mornay, Lesdiguières, were either lukewarm or self-interested. Rohan,
          indeed, was animated with enthusiasm; but alone he could do nothing.
   The Gallican
          Church, however, without regard to Rome Gaiiican and
          in spite of the great Huguenot party, made France groan, like other Roman
          Catholic countries, under the burden of an enormous ecclesiastical
          establishment. Early in the seventeenth century the whole number of secular and
          regular ecclesiastics considerably exceeded a quarter of a million, of which
          more than three-fifths were monks or nuns: viz. 35,600 religieux rentes, or monks belonging to foundations; 80,000
          nuns of various orders; 46,500 mendicant friars, ancient and reformed; and
          500 hermits. But while the cures or parochial clergy, had scarcely
          sufficient for the necessaries of life, the mendicant orders, by virtue of
          their vow of poverty, dwelt in magnificent buildings, and consumed each a pound
          of meat and three pints of wine a day. Their repas maigres, or
          fast-day meals, were still more expensive; and it was reckoned that the
          subsistence of each monk cost daily twenty sous.
   It was not till
          1580 that the Jesuits appeared in England. Dr. William Allen, early in the
          reign of Elizabeth, had founded an English Catholic seminary at Douai, and
          others were subsequently established at St. Omer, Rheims, and Rome.
          The pupils of these colleges were animated with the same savage spirit of
          murder. Against Queen Elizabeth their rage was inexhaustible, since, under
          her auspices, Protestantism had not only been firmly established in England,
          but also found her its chief protectress in other countries. The work
          of Saunders, De monarchia visibili Ecclesiae, published at Louvain in 1571, was the bible of these
          fanatics. Saunders had been secretary to bloody Mary, and his book was
          written under the patronage of the Duke of Alva. It was in the year mentioned
          that the Jesuits Parsons and Campion returned to England, after which a
          great many penal laws were promulgated against that Society. Queen Elizabeth,
          in self-defence, was compelled to take a leaf
          out of her enemies' book, and England witnessed to some extent a
          persecution of the Catholics, of whom about two hundred were executed
          during her reign. It should, however, be recollected that they were
          Elizabeth's political enemies, that they were constantly endeavouring to deprive her of her kingdom, and even
          of her life, and that most of those who suffered in England were convicted
          of conspiracy.
   It may appear
          surprising that in a bigoted country like Spain the Jesuits should have
          obtained little or no influence; but, in fact, that very bigotry afforded
          small scope for their activity in that country; and Spain was inimical to the
          encroachments of Rome. Yet Spain had given birth to the founder of the Society,
          and produced an eminent patron of it in Francis Borgia, Duke of Gandia, great-grandson of the infamous Pope Alexander VI,
          who at last turned Jesuit himself, and eventually became third general of the
          Society. As a rule, however, the Jesuits in Spain were not native Spaniards,
          but converted Jews, and even became objects of suspicion to the government. St.
          Francis Borgia himself was prosecuted by the Inquisition as one of the mystics
          or illuminati, a sect which seems to have borne some resemblance to
          the English Quakers. In Portugal, on the other hand, during the minority of
          Sebastian and the tutorship of his ecclesiastical guardians, the Jesuits, as we
          have already said, obtained a complete control. John III had founded for them a
          college at the University of Coimbra, whence issued the greater part of those
          missionaries who spread themselves over Asia and Africa.
   Neither Spain nor
          Italy, however, was altogether exemptfrom the
          invasion of heretical doctrines. As early as 1519, Froben,
          the celebrated printer of Basle, forwarded some of Luther's tracts into Spain;
          and in 1527 several works of Erasmus were condemned, and prosecutions
          instituted against some of the most learned men in the country. By 1530 the
          doctrines of Luther had made such progress that the Council of the Supreme
          instructed the inquisitors throughout Spain to exercise the greatest vigilance:
          an injunction which led to domiciliary visits by the familiars of the
          Inquisition. The Spaniards themselves attributed the propagation of Lutheran
          opinions in Spain to their own learned men who had been sent abroad to confute
          them; an admission than which any more complimentary to Luther can scarcely be
          imagined, although, according to the testimony of Valdes, that reformer was
          regarded in Spain as a reprobate atheist, and it was deemed as meritorious to
          strangle a Lutheran as to shoot a Turk. The Spanish converts, like Valdes
          himself, were mostly persons of rank and education; for in Spain the reformed
          doctrines were chiefly imbibed from books, procured and read with danger. The
          Protestants of Béarn, indeed, who crossed the Pyrenees,
          spread their faith in Aragon, where it made most progress, though it also
          penetrated into the neighbouring kingdoms.
   It was reserved
          for Philip II to crush the nascent heresy, almost the only instance in which
          his policy can boast of entire success. This triumph of bigotry shows that the
          power of opinion is not always a match for despotism and physical force, when
          wielded with adequate means and a relentless will. Philip, who was supported by
          that savage Pope, Paul IV, published in 1558 a law by which death and
          confiscation of property were inflicted on anybody who sold, bought, read, or
          possessed a book prohibited by the Holy Office. In January, 1559, Paul
          authorized the Spanish Inquisition to hold inquests on archbishops, bishops,
          and other prelates suspected of heresy, and to send them to Rome; and in the
          following February, at the request of Philip, he published a brief authorizing
          the Council of the Supreme to deliver over to the secular arm—that is, to put
          to death—persons convicted of Lutheran opinions, even though they were not
          relapsed and were willing to recant, a proceeding contrary to all former
          practice, and against the standing laws of the Inquisition itself. It was in
          the same year that the first auto-da-fe of Protestants was celebrated
          at Valladolid, which was soon followed by another in the same city, and two
          more at Seville. In these human sacrifices two hundred and eight victims
          appeared, of whom sixty-two were burnt and the rest condemned to minor
          punishments. About the same time Carranza, the Primate of Spain, was pursued by
          the Inquisition, a prosecution followed by that of eight bishops and
          twenty-five doctors of theology, most of whom were men of distinguished
          learning, and had assisted at the Couucil of Trent.
          The four autos-da-fe just mentioned were followed by others down to
          the year 1570, when the Reformation in Spain was pretty well suppressed; for
          though a few Protestants were subsequently burnt, the gleaning was scanty. In
          the hands of the Spanish Government, the Inquisition, as we have said, became
          an instrument of State policy, and even of fiscal law; and thus, in 1569, the
          exportation of horses to France was brought under cognizance of the Council of
          the Supreme.
   A statistical
          account of the year 1616 shows the wonderful progress of the Jesuits in
          about three-quarters of a century since their foundation. At that time they had
          thirty-two provinces—viz., Rome, Sicily, Naples, Milan, Venice, Portugal,
          Goa, Malabar, Japan, Brazil, Toledo, Castile, Aragon, Bsetica (South Spain), Sardinia, Peru, Paraguay, New Granada, Mexico, Philippine Isles,
          France, Aquitania, Lyons, Toulouse, Champagne, Upper Germany, the Rhenish
          province, Austria, Flanders, Walloon Netherlands, Poland, and Lithuania. The
          order numbered 13,112 members, and possessed 23 professed houses, 372 colleges,
          41 novitiates, and 123 residences. At this period the Jesuits could boast of
          many distinguished writers, amongst whom it may suffice to mention Petau, Sirmond, Schott, Tursellinus, Bellarmine, Suarez, Sanchez, and Mariana. The
          Jesuits had even penetrated to Constantinople early in the seventeenth century,
          whither they had gone with the design of overthrowing the Greek Patriarch, and
          bringing his flock under the dominion of Rome. A struggle ensued which lasted
          many years, and in which the ambassadors of the different Christian Powers to
          the Porte took part, the Jesuits being supported by the French and Austrian
          envoys, while those of England and Holland came to the aid of the Patriarch. In
          1662, by a skilful application of 40,000 dollars, the
          Jesuits effected the deposition and banishment by the Porte of the Patriarch Cyrill, who was supposed to be a Calvinist; but on a change
          in the Ministry his restoration was soon after effected, principally through
          the intervention of the English envoy, Sir Thomas Roe. In 1628 the same
          minister, supported by the Mufti and the Ulemas,
          gained a complete triumph over the Jesuits, and effected their banishment from
          Constantinople; but Roe went back to England in that year, and the Jesuits soon
          after managed to return.
   Missionary Labour
           The world-wide
          influence of the Jesuits appears from the preceding list of their
          provinces. It is their missionary labours beyond
          the bounds of Europe which show the brightest side of their character; for
          nobody can deny them the praise of courage and self-devotion. Xavier, the
          companion of Loyola, was the first and greatest Jesuit missionary. He
          proceeded to the East Indies, and founded in 1542 a college at Goa, which
          before the close of the century numbered 120 members. The natives educated at
          this institution served as interpreters to the Jesuits in the East Indies and
          in Japan, where, in spite of the ingenious objections of the Bonzes, they
          succeeded in making many converts. No permanent good was, however, effected;
          for in less than a century after, the Dutch, in the interests of their
          commerce, helped in driving all the Christians from Japan. Xavier died on his
          voyage to China in 1552. Towards the end of the century, the Jesuit Ricci
          established a mission in that country which met with some partial success.
   King John III of
          Portugal despatched Jesuit missionaries into Brazil
          in 1549, some of whom found their way into Paraguay. Aided by the children of
          some of the natives, whom they had taught Spanish, they penetrated by degrees
          into that savage country, introducing flocks and herds, teaching the Indians to
          sow and reap, to make bricks, to build houses, in short, all the essential arts
          of civilized life. The people of Paraguay became the devoted servants, nay,
          almost the slaves of the Jesuits; who, although they acknowledged the authority
          of the King of Spain, and paid as a sort of tribute a piastre a head for their
          subjects, ruled quite independently of the Spanish government. As the masters
          as well as the rulers of the Paraguayans, the Jesuits distributed to them the
          hemp, the cotton, the wool and other raw materials which they were to
          manufacture; they were allowed to possess neither money nor arms, although the
          priests exercised them in the use of the latter, and converted them into
          excellent soldiers. Thus the Jesuits were at once the founders, lawgivers,
          pontiffs, and sovereigns of this singular state. As the Roman Catholi religion thus began to spread abroad into distant
          countries, Pope G-egory XV established in 1622, to
          superintend its diffusion, the Congregatio de
          propaganda Fide; and a few years afterwards Urban VIII bestowed on it the
          building, or college, of the Propaganda (1627).
   Spain
           The bigotry and
          intolerance of Charles V and Philip II and of friars like Ximenes and
          Torquemada, were one cause of the subsequent decline of Spain; in the
          general policy and especially the wretched commercial system of those
          Sovereigns we must look for others. Towards the end of Charles V's reign,
          Spain seemed to have reached the zenith of her prosperity, and in the year 1543
          we find that Emperor congratulating himself on the flourishing state of the
          Indian trade whose operations were conducted at Seville. "Thanks be
          to God," he exclaimed, "it has ever increased and still increases
          daily." But the possession of the New World was regarded as supplying the
          means for subjugating the Old; and the command of an apparently inexhaustible
          source of wealth only prompted Charles and his son to gratify their ambition or
          their bigotry by plunging into those expensive and ruinous wars which at length
          exhausted even the Spanish treasures : a result which a wretched fiscal policy
          contributed to hasten.
   It was an evil
          hour when governments bethought themselves of increasing the wealth and
          prosperity of their subjects by fiscal regulations; yet the idea seems to have
          been coeval Venetians, with the extension of commerce, and the
          Venetians, the first nation of modern Europe which enjoyed any considerable
          trade, were also among the first to invent restrictions, prohibitions, and
          monopolies. Nothing could be narrower and more selfish than the spirit of their
          commercial laws. Foreigners were subjected to double customs' duties; they
          could neither build nor purchase ships in Venetian ports; they were forbidden
          to be received on board a vessel of the State, or to contract a partnership
          with any subject of the Republic. Ingenious foreign artizans were encouraged to settle in the Venetian dominions, while native artizans and mechanics were forbidden under the severest
          penalties to emigrate. The nearest kinsfolk of such as attempted to do so and
          did not return when ordered, were thrown into prison; if the emigrant persisted
          in his disobedience, emissaries were employed to kill him! It is impossible to
          carry further the wretched selfish and cruel jealousy of trade. This
          system of proohibition and exclusion was imitated by
          other countries.
   Among these, Spain
          was remarkable. The ruin of Spanish trade and commerce was initiated under
          Charles V. In 1552 the export of cloth as well as of spun and combed wool was
          forbidden. In the same year the Cortes proposed that the importation of foreign
          silk should be allowed, and the exportation of home manufactured prohibited. It
          was also forbidden to export corn, cattle, and leather. Reversing the very
          rudiments of economical policy, exorbitant duties
          were laid on the exportation of manufactured articles, and upon the
          importation of raw materials. We see in these regulations the germs of
          inevitable ruin, and one of the causes which drained the country of the specie
          acquired by so much cruelty and bloodshed.
   At the end of the
          sixteenth century Spanish pistoles were much more common in France than in
          Spain, because the French exported freely their corn and wine, while the
          Spaniards would suffer nothing to quit the country. The consequences soon
          became apparent in the shutting up of the manufactories, so that in 1558 it was
          found necessary to relax the prohibition, at least on the Portuguese frontier.
          But the blow was irremediable, and fashion soon put the seal to a ruinous
          system that had been initiated by ignorance. In 1560 we find complaints that
          silk and woollen stuffs, brocades, tapestry, arms,
          all came from abroad, although the materials for their manufacture were abundant
          in Spain; nay, that the foreigner actually made them of Spanish products and
          then set his own price on them. The use of foreign articles begat a liking for
          them, which became a fashion. No better silk could be produced than in Granada
          and Murcia, yet that of Italy and China was preferred. English jackets, Lombard
          caps, German shoes, Dutch linen, Antwerp tablecloths, Brussels tapestry,
          Flemish cabinet ware, became all the vogue. People appeared by day in
          Florentine brocade, and slept at night under outlandish bed-hangings. France
          supplied the children of Spain with their toys, her monks and nuns with their
          rosaries. She was dependent on foreigners even for the materials of war : it
          was necessary to fetch wood and gunpowder from Flanders, metal and men to cast
          it from Italy; for Spain had no cannon foundries of her own.
   Other
          circumstances which militated against commerce in Spain were the idleness,
          pride, and bigotry of the Spaniards. The nation was divided into two
          classes, between which there was a continual jealousy: the Hidalgos,
          or nobles, and the Pecheros, or
          persons employed in trade and agriculture. The Hidalgos enjoyed peculiar
          privileges, and are expressly named as entitled to favour by Ferdinand and Isabella, "because through them we achieved our
          conquests". This class would have deemed itself disgraced by any other
          profession than that of arms. They were regarded as the pith and marrow of the
          nation; they filled all the offices of state; a municipal town would have been
          affronted by the appointment of a trader to be its corregidor;
          the Cortes of Aragon would admit no member who had been engaged in commerce. As
          neither the house, the horse, the mule, nor the arms of a Hidalgo could be
          seized for debt, nor his personal liberty be infringed, nor taxes be imposed
          upon him, everybody naturally wished to belong to an order which enjoyed so
          large a share of favour; and so many claims were
          consequently made to the privileges of the Hidalguia, that,
          although the tribunals set apart every Saturday for the examination of them, it
          was often found insufficient.
   The interest of
          money being high in Spain, if a roturier could scrape together
          some 7,000 ducats, which would yield an income of about 500, he settled it on
          his eldest son as a majorat, or
          patrimony. The son of a ci-devant farmer or shopkeeper now
          considered himself a noble, and dubbed himself Don; while his younger
          brothers began to be ashamed of their callings, and wanted the same title.
          Those who had no chance of attaining to such a rank, often turned their views
          towards a convent; where, if they could not gratify their pride, they might at
          least indulge their idleness. Hence the number of convents increased enormously
          in Spain. As the tradesman aped the noble, so the noble aped the King; and
          because Philip II had founded the Escorial, so the grandees thought it a fine
          thing to have a monastery on their estates; convents rose on every side and
          candidates to fill them were always forthcoming. These institutions not only
          offered an easy, idle life, but also secured a certain degree of respect and
          importance. Philip III and his consort founded even more convents than Philip
          II; and in the reign of the former it was computed that Spain contained 988
          nunneries, all numerously filled; that there were 32,000 friars of the
          Dominican and Franciscan orders alone; and that the clergy in the two dioceses
          of Pamplona and Calahorra amounted to 20,000.
   Monopolies of
          foreigners
   A consequence of
          this state of society was that even the little commerce that remained in Spain
          fell mostly into the hands of foreigners. The financial embarrassments of
          Charles V led him not only to give to Germans and Italians a monopoly of the
          Indian trade as security for their advances, but even to allow them to encroach
          upon the birthright of his Spanish subjects by engrossing the trade and
          commerce of the interior. The Fuggers and other great
          foreign houses to whom Charles was under obligation obtained commercial
          privileges that were denied to born Spaniards, such as that of exporting
          prohibited articles, and others of a similar kind. By degrees, these intruders
          monopolized not only the higher branches of commerce, but even the smaller
          handicraft trades; and in 1610 it was computed that there were 160,000
          foreigners settled in Castile alone, of whom 10,000 were Genoese.
   In the absence of
          an adequate revenue from trade the Spanish government was compelled to lay
          on very burdensome taxes. In 1594 the Cortes complain that a capital of
          1,000 ducats paid annually 300 to the King, so that in the course of three
          or four years the whole of it would be swallowed up. Yet people, they
          said, instead of engaging in commercial enterprises, lived on their capital as
          long as it would last. Rents were low, yet no farmers could be had; they
          were either emigrating or else shut up in prison. Scarcely a fifth part of the wool
          formerly used was now manufactured; whence, as well as through the heavy
          tax on that commodity, the flocks also began to be greatly diminished.
          Agriculture and pasturage, manufactures and commerce, drooped together; every town
          in the land was beginning to be depopulated; the country was going to ruin!
          Such is a picture of Spain at the close of the sixteenth century, after a
          hundred years' possession of the treasures of the New World, not drawn
          from the descriptions of historical writers, but taken from an official
          document of the Cortes.
   But although the
          taxes were enormous they brought comparatively little into the royal treasury,
          the greater part of the produce being swallowed up by the expenses of
          collection. This abuse was one of the consequences of the sale of offices. As
          every place was venal, it followed that Philip II was most unfaithfully
          served; and his officers indemnified themselves for their outlay by
          impounding what passed through their hands. Another evil was, that while
          the taxes were so high and so badly collected, they were spent out of the
          country. The government had to procure its necessaries abroad; its
          principal creditors were foreigners; the money once withdrawn from Spain never
          returned, owing to its absurd fiscal system, and thus the country became every
          year more and more exhausted. Already in 1540, Charles V, the master of the
          treasures of the New World, had coined a large quantity of base gold crowns to
          supply his necessities. So great continued to be the drain of specie in order
          to purchase foreign manufactures that, in 1603, Philip III was advised by Lerma
          to issue a royal edict raising the nominal value of copper money almost to an
          equality with that of silver. All these evils were aggravated by the impolitic
          nature of the wars entered into by Philip II. By his quarrel with the
          Netherlands, besides the expense it entailed, he had deprived himself of one of
          his most productive sources of revenue; yet he did not even pursue that war in
          a manner which might have insured its success, but frittered away his means in chimerical
          projects in France.
   Spain, however,
          may perhaps be said not so much to have declined as to have returned to
          the normal condition from which it had been forced by a series of
          extraordinary events; the union of the Crowns of Castile and Aragon; the reduction of
          the Moors; the wonderful discoveries in America; and the enormous
          accumulation of power in the hands of the House of Austria. All these
          advantages, which by able rulers might have been developed into a
          permanent system of power, were thrown away by the absurd and reckless
          mode of government which we have just described, and Spain returned to the
          condition depicted by the Venetian Navagero in his Viaggio in 1526. Even Catalonia is described by
          that writer as then ill-peopled and little cultivated; Aragon was for the most
          part desolate; in Castile the traveller found
          extensive tracts of desert, with now and then a Venta, commonly
          uninhabited, and resembling rather a caravansary than an hotel.
   Towards the end of
          the sixteenth century, a little band of original thinkers arose in
          Calabria, who were the first to promulgate any just notions on the subject of
          political economy.
   The chief among
          these were Thomas Campanella and Antonio Serra, who had both been engaged in an
          attempt to rescue Calabria from the Spanish yoke in 1598. From the depths of a
          Neapolitan dungeon the friar Campanella addressed to Philip III of Spain a remarkable
          prediction of that country's decline. The Spaniards, he observed, who so
          haughtily keep aloof from other people, who neglect agriculture and commerce,
          and esteem only the profession of arms, will soon exhaust themselves; they will
          never be able to recover their losses, and their wealth will pass away into the
          hands of the foreigner. Already the most useful arts of life languish in
          neglect; and, without manufactures, agriculture, or trade, how can any people
          hope to prosper? So indolent are the Spaniards that they do not even deign to
          record the great actions which they achieve. Campanella reviews and condemns
          the system of taxation; advises the encouragement of navigation, because the
          key of the ocean is the key of the world; recommends the equality of civil
          laws; the accession of all classes to power; the encouragement of art and
          manufacture, as things of more real value than mines of gold and silver. And
          while he thus proclaims the approaching ruin of Spain, the prophetic monk
          announces in glowing terms the renovation of the world through the wonderful
          discoveries of science, and the irresistible progress of human liberty and
          knowledge.
           In 1613, Antonio
          Serra, then also in a Neapolitan dungeon, addressed to the Spanish Viceroy Lemos a work on the methods of procuring the precious
          metals in countries which do not possess mines, in which true principles of
          trade are first laid down.
   Ruin stole on
          Spain with a more rapid stride than even Campanella might have anticipated.
          Between the years 1600 and 1619 the peasantry in the diocese of Salamanca had
          decreased from 8,384 to 4,135, or more than one-half, and depopulation was
          going on at the same rate in other parts of Spain. The most fertile fields were
          left unploughed, the houses were everywhere
          dilapidated and decayed. The first Cortes of Philip IV,who ascended the throne in 1621, complain that if things went on in their present
          course there would soon be no labourers for the
          field, no pilots for the sea; people would no longer marry, the nation would
          become extinct, the clergy alone surviving without a flock! The chief cities,
          they remark, are filled with beggars; whole families abandon house and home and
          adopt mendicity as affording the only chance of support. Yet, though they saw
          and felt these evils, so blinded were the Spaniards with bigotry, so utterly
          unconscious that it was one of the chief sources of their misery, that these
          very Cortes could suggest no better remedy than to change the patron saint!
          Their proposition to hand over Spain to the protection of St. Teresa de Jesus
          was, however, opposed on the ground that their former patron St. Iago might
          take offence, under whose protection they had seen the whole world at their
          feet, and the nation enlightened by science and virtue!"
   The ancient
          maritime commerce which the Catalans had shared with Genoa and Venice
          partook in the general decay. At the beginning of the sixteenth century
          the trade of Barcelona was still flourishing, and does not then appear to have been
          much injured by the Portuguese discoveries. That city prided itself on a
          saying of Charles V, that he deemed it more honourable and important to be Count of Barcelona than to have received the Roman
          Crown. In 1529, however, Charles fitted out his last fleet from the
          remnant of the Catalan marine. Ten years more and Barcelona had a consul neither
          at Tunis nor Alexandria; commerce with Constantinople and the Levant was a
          thing to be no longer contemplated. The new route of ocean commerce was one of
          the causes of this decline; a still more direct one was the predominance
          of the Turkish navy in the Mediterranean after the victories of Hayraddin Barbarossa over the Spanish and Venetian
          fleets in the Ionian Sea in 1538, the alliance between Sultan Solyman and Francis I, and the settlements of the Mahometans on the coast of Africa.
   France, like
          Spain, was also suffering from an erroneous system of political economy
          introduced by Birago, the Garde des Sceaux and Chancellor of Catharine de'
          Medici, before whose time the trade of France seems to have been unfettered. By
          birth a Milanese, Birago had adopted the prohibitive
          and protective theories of Venice and other Italian cities, though his
          regulations were somewhat better than those observed in Spain, and were
          intended to promote the manufactures of France. He discountenanced only the
          exportation of raw materials and the importation of manufactured articles; a
          system which from this time forward plays a great part in the laws and policy
          of France. Thus the export of wool, flax, hemp, etc., was forbidden, and on the
          other hand the importation of woollen and linen
          cloths, gold and silver lace, velvet, satin, arms, tapestry, etc. Drugs and
          spices could enter only at certain ports, as Marseilles, Rouen, Bordeaux, and
          La Rochelle. These laws were accompanied with others regulating the prices of
          articles. Special commissions of notables were appointed in every town to
          assess the price of victuals, cloths, and other goods, as well as to settle the
          rate of labourers' wages. This injudicious meddling
          had the same operation as in Spain, though not to the same extent, of
          depressing the trade and industry of the nation. At the beginning of the
          seventeenth century French manufactures had much deteriorated. France had at
          one time the reputation of making the best cloth in the world, both for dye and
          texture, but it had now entirely lost its character. The trade in scarlet cloth
          exported to Turkey, which in the time of Francis I had been very large, had
          been entirely lost. The Turkey trade was now carried on by the French with ready
          money only.
   The author of the Avis
          au Roi, published in 1614, complains that Marseilles alone
          sent annually to Turkey seven million crowns of silver, and attributes to this
          cause the scarcity of that metal in France; what little there was being mostly
          foreign coin, and of baser alloy than the French. The chief cause of the great
          drain of money in that direction was that France still imported her spices,
          drugs, and cottons from Turkey instead of procuring them from the East Indies,
          either through the Amsterdam Company, or by establishing a company of her own.
          Other manufactures, as that of leather, had also deteriorated; and although
          glass had long been used in France, it was only recently that it had begun to
          be made there. As in Spain, the caprice of fashion had also proved injurious to
          trade. The French gentry disdained to wear articles of home manufacture, and
          procured instead, at an extravagant price, the rich cloths and silks of Venice
          and Genoa; while the inhabitants of those towns themselves went very simply
          clad. The Parisians, however, were already distinguished for their taste in
          manufacturing articles of domestic luxury, and the silver plate made in that
          capital was in great demand throughout the world. But, on the whole, commerce
          drooped, and what little existed was mostly in the hands of aliens. Commercial
          pursuits were not regarded with favour by the higher
          classes, and the French gentleman, like the Spanish hidalgo, considered arms to
          be the only honourable profession.
   The decay of trade
          was aggravated by the want of good internal communications. In consequence of
          the badness of the roads, merchants were in many places compelled to send their
          goods thirty or forty leagues round, a circumstance which had caused the ruin
          of many towns. The rates levied for the maintenance of such roads as existed
          were often diverted to other purposes; and fraudulent bankrupts and other
          dishonest persons sometimes took advantage of the neglected and unguarded state
          of the highways to pretend a robbery or an accident, and thus to defraud their
          creditors. When Henry IV was firmly established on the throne, Sully turned his
          attention to the state of the roads, made them more direct, and planted their
          sides with elms; which, however, were uprooted by the ignorant populace. The
          scheme of joining the Mediterranean and the ocean by means of a canal was also
          agitated in Henry's reign, and appears to have been suggested in a letter of
          Cardinal Joyeuse to the King. The plan was subsequently discussed in the
          council of Mary de' Medici, "but," says Richelieu, "the enteprise was too great for the times, nor was there
          anybody who cared enough for the commerce and riches of France to support
          it." The execution of that useful and magnificent work was reserved for
          the reign of Louis XVI. Sully, however, began the canal of Briare to join the Seine and Loire; a work not completed till the reign of Louis XIII.
   France was saved
          by its agricultural wealth and by the care of Sully, who, though he paid
          little attention to commerce, and indeed strangely regarded foreign trade and
          home manufactures as sources of impoverishment,was careful to develop the natural resources of France, and to restore its
          financial system to a sound and vigorous condition. Giovanni Botero, a Piedmontese, who wrote towards the end of the sixteenth
          century, remarks that France possessed four magnets which served to attract the
          wealth of other countries: its corn, which helped to supply Spain and Portugal;
          its wine exported to England, Flanders, and the Baltic; its salt, manufactured
          on the shores of the Mediterranean and the ocean; and its hemp and cloth, in
          demand at Lisbon and Seville, for the sails and cordage of the Portuguese and
          Spanish shipping. The breeding of cattle, however, does not seem to have kept
          pace with the progress of agriculture; horses, in particular, it was found
          necessary to import from Turkey, Italy, Spain, England, Germany, and other
          places.
   Hence, although
          France had gone through nearly half a century of civil wars, carried on in the
          name of religion, which to a great extent brought back the middle ages, she was
          nevertheless, from her natural resources, in a much more flourishing condition,
          and enjoyed better future prospects at the beginning of the seventeenth century
          than Spain, in spite of the vast colonial possessions of the latter country,
          the internal peace which had reigned in it, and the absolute authority acquired
          by its Sovereigns. This last advantage, so far as foreign affairs are
          concerned, was the only thing yet wanting to render France more than a match
          for Spain in that rivalry between the two nations which will hereafter occupy
          so much of our attention.
           After the peace of Vervins and the Edict of Nantes, the old struggle
          between the French Crown and the French nobles still remained to be renewed. It
          was necessary that France should become a powerful monarchy before it could be
          a great nation, and from this period it was the constant aim of the government
          to centralize the power of the King; an object not thoroughly attained till the
          reign of Louis XIV.
           The very
          conditions on which Henry IV. had made his peace with the heads of the League
          presented an obstacle to this centralization. He had been forced to purchase
          their submission with governments, fortresses, and money, thus creating a new
          class of powerful vassals, almost as formidable as those feudal ones which it
          had been the constant aim of Louis XI to control and humiliate. Although the
          twelve great governments were of royal delegation, yet the holders of them were
          often obeyed by the inhabitants of these provinces in preference to the King.
          In 1599, when Henry IV was troubled by the machinations of the Spanish Court,
          the Duke of Montpensier insulted him with the
          proposition that Governors should be allowed to hold their provinces as
          proprietors, doing only liege homage to the Crown; and he assured the King that
          he would thus always be provided with the means of raising an army. To check
          the power of the Governors, Henry sometimes appointed lieutenant-generals in
          the provinces; but these officers became sometimes as formidable as the
          Governors themselves. The Court had also begun to oppose the old hereditary
          aristocracy by another kind of nobles more dependent on the Crown, that of the
  "Dukes and Peers" (la duche-pairie)
          created by letters-patent: an order which pretended to the first rank of
          nobility. At the accession of Henry III. there had been only eight such duches-pairies; when Henry IV ascended the
          throne there were eighteen, and the Bourbons in every reign created new ones.
   But there was also
          a class of lower nobles, having the command of a fortress or two, who could set
          the royal authority at defiance. As the theory and practice of engineering and
          fortification were then in their infancy, the King might be bearded by the
          commandant of a single fortress, provided he had a devoted garrison; while a
          confederation of three or four such commanders might make the Sovereign tremble
          on his throne. France was covered with such places. The fortress called Le Castellet, which commanded the town of
          Chateau-Renard, affords a specimen of one. The walls were four and a half toises thick, with many casemated chambers, and a
          subterranean passage running through the whole building. It contained dungeons,
          magazines, a well, windmills for grinding corn, and an oven to convert it into
          bread; while for its defence it was stored with
          battering cannon and falconets, gunpowder and ammunition of all descriptions.
          Richelieu caused most of this kind of castles to be dismantled after the taking
          of La Rochelle. The holders of such places, and indeed the nobility of France
          in general, were for the most part grossly illiterate, priding themselves only
          on their prowess and feats of arms, which were frequently exhibited in
          sanguinary duels.
   Fury of duelling
           The Constable,
          Henry de Montmorenci, who died in 1614, and was
          reputed one of the most perfect cavaliers of his time, was so illiterate
          that he could scarcely write his name. Henry IV was bent on repressing the
          practice of duelling, and in 1602 he published
          an edict declaring guilty of high treason, and consequently amenable to
          capital punishment, whosoever should be engaged in a duel either as
          principal or second. But this law proved too severe to be executed; and
          between 1601 and 1609 no fewer than 2,000 gentlemen were killed in
          duels! In the latter year Henry published a milder edict, referring all
          persons who had been affronted to himself to decide whether a duel could
          be permitted. Whoever sent or accepted a challenge without such authority
          was to lose his right of reparation, and to be deprived of all his offices and
          employments; and he who killed his adversary in such an unlicensed duel
          was to be punished with death without sepulture, and his children were to
          be disgraced for a term of ten years.
   f In the
          state of disorganization in which France was left by the civil wars, and in the
          midst of that rude and insolent nobility, she was fortunate in possessing
          such a King as Henry IV and such an administrator as Sully. With all his faults,
          Henry did not forget his kingly office, and even the spell of the charming
          Gabrielle was powerless to resist the calls of duty and the stern
          admonitions of Sully. To repress the disorders of the nobility, which had
          been encouraged by Henry III, he told his nobles that they must accustom
          themselves to live on their own estates, without recourse to the royal
          coffers, or oppressing their own vassals with a thousand robberies and
          extortions; and he advised them, as peace was now restored, to return to
          their homes and look after the cultivation of their lands.
   Sully
           Henry's counsellor
          Maximilian de Bethune, Baron Rosni and
          afterwards Duke of Sully, was precisely the man capable of helping him in
          the reorganization of France. The stoical manners of Sully were little
          calculated to gain friends. He was rude, obstinate, proud,
          self-interested, but he had displayed great financial ability, and Henry saw in
          him the very man for the conjuncture. All the King required of him was that
          he would bestow as much care on the royal revenue as he had done on his
          own; nor cared to inquire whether his minister made his own fortune at the
          same time with that of the State. Rosni did not
          indeed belong to that order of statesmen who forget themselves. His income
          was 200,000 livres, and he possessed a couple of millions in trinkets. His rough
          and somewhat brutal manners served to stem the opposition he encountered.
          At the command of the King he had undertaken in the summer of 1596 a sort
          of financial voyage of discovery throughout France; when, armed with unlimited
          powers, he suspended the greater part of the officers of finance, examined
          their accounts for the last four years, and brought to the King seventy
          cart-loads of silver, amounting to half a million crowns, the fruits of
          his researches. Such was the rapacity of the traitants,
          or farmers of the revenue, that of 150 millions levied in taxes, scarce thirty found their way into the royal treasury.
          Besides putting an end to the thefts of the financiers, Sully also
          repressed the extortions of the Governors of provinces. He had found the
          State charged with a debt of nearly 300 million francs, and having a
          disposable revenue of only from seven to nine millions; in 1610, after a
          lapse of twelve years, one-third of this debt had been paid off, the net
          revenue had been doubled, and now yielded sixteen millions, exclusive of
          four millions arising from a better management of the royal domains, and
          other sources; and the King had at his disposal a reserve of more than twenty
          millions, three-fourths of which were deposited in specie at the Bastille.
   By the wise and
          energetic measures of Sully, France was saved from that ruin which menaced
          Spain, and began rapidly to improve. Giovanni Botero, the Piedmontese writer before referred to, says that France was in his time the greatest, richest,
          and most populous of all European Kingdoms, and contained fifteen million
          inhabitants. Paris, with a population of 450,000 souls, was, with the
          exception, perhaps, of Moscow, the largest capital in Europe. The weak and
          profligate Henry III, by making that city his constant residence, had
          contributed much to enlarge and improve it. The earlier Kings had
          preferred their castles on the Loire; Francis I had commonly resided in
          the neighbourhood of Paris; Henry II had held
          his Court somewhat more frequently in the capital; but Charles IX had been
          mostly banished from it by the religious wars.
   According to the
          Italian writer whom we have just cited, the three European cities of the
          first rank and magnitude were, at that time, Moscow, Constantinople, and
          Paris. London could only claim a second rank, with Naples, Lisbon, Prague,
          Milan, and Ghent; each containing some 160,000 inhabitants; whence Botero too
          hastily infers that England, Naples, Portugal, Bohemia, Milan, and Flanders
          were States of equal magnitude and power. The size of the capital is not
          always a criterion of the strength of a Kingdom; but Botero's inference
          will show the estimation in which England was then held by foreigners.
          Spain certainly was, or had been, the leading nation of Europe; yet that
          country did not contain any city even of such magnitude as these last; a
          circumstance owing partly to its being made up of several small realms.
          The chief cities were those in which ancient Kings and Princes had held
          their seats; as Barcelona, Saragossa, Valencia, Cordova, Toledo, Burgos, Leon.
          Madrid was increasing through the residence of Philip II; but the cities
          to which a Spaniard could point with most pride were Granada, the ancient
          capital of the Moorish Kings; Seville, enriched by being the seat of the American
          trade; and Valladolid, which had long been the residence of the Castilian
          Kings.
   In Italy, Rome
          owed its splendour to the residence of the Pope;
          Milan and Venice were stationary, if not declining, and were no larger
          than they had been; Cracow and Wilna were the
          two chief cities of Poland; in Russia, besides Moscow, Vladimir and Great Novgorod.
   England, under the
          rule of Elizabeth and her able ministers, was, at the period we are surveying,
          fast rising in the scale of nations, though the population was then perhaps
          hardly more numerous than that now contained in the capital. Meteren, the Flemish historian, who long resided in London,
          describes the English as being indolent, like the Spaniards, instead of
          laborious like the French and Hollanders, fond of dress, field sports, and good
          living. The more ingenious handicrafts were exercised by foreigners, nor did
          the natives even cultivate the soil to the extent which they might; though
          England at that time exported, instead of importing grain. The true principles
          of commerce were at first ill-understood in England as in other countries,
          though perhaps not to so great an extent; and she was the first to improve upon
          them in practice. While statesmen, like Sully, harboured the popular prejudice against the exportation of gold and silver, the English
          East India Company, at its first establishment in 1600, had obtained permission
          to export annually £30,000. It was still held, indeed, that the precious metals
          were the sole true elements of wealth, and that the employment of them abroad
          was wholesome and legitimate only when the commodities procured with them
          should realize in foreign markets a still larger amount, and thus raise a
          balance to be paid in specie. By degrees, however, juster notions began to prevail; it was at length discovered that gold and silver are
          nothing but commodities, and that the circulation of them, like that of any
          other article, should be unrestricted. These ideas at length made their way
          into the House of Commons, and in 1663 the statutes prohibiting the exportation
          of coin and bullion were repealed. The publications of Mr. Thomas Munn were
          very useful in establishing better notions of commerce; but that author was
          also the first who rendered popular the celebrated theory of the balance of
          trade; a system whose errors were pernicious, not only by inducing governments
          to tamper with trade instead of leaving it free to find its own channels, but
          also, what was still worse, by leading nations to regard the prosperity of
          their neighbours as incompatible with their own,
          Hence arose among them a desire to hurt and impoverish one another : commerce,
          that should naturally be a bond of union, became an occasion of discord,
          and the jealousy of trade not only impelled them to contend with hostile
          tariffs, but even gave rise to frequent and bloody wars.
   Some years before
          the close of Elizabeth's reign, Raleigh had made two unsuccessful
          attempts to found an English colony in Virginia; and it was reserved for
          her successor, James I, to initiate that colonial system by which England has
          been distinguished among modern nations. We pass over this subject, as
          well as the first attempts of the English to trade with India and America,
          as foreign to our purpose, except in so far as they were occasions of
          quarrel with the Spanish Government. The voyages of Drake, Cavendish, and others,
          to the New World, were really no better than piratical, though in some
          measure excused by the absurd and exclusive pretensions of Spain, as well
          as by that underhand system of hostility and annoyance, without an open
          breach, which had during many years prevailed between the two countries.
          If Drake plundered Spanish settlements on the American coast, and
          returned with untold treasure, Philip was aiding and abetting a rebellion
          in Ireland, or scheming the assassination of the heretic English Queen. It
          must, however, be acknowledged that the piracies of the English had often no
          such excuse, being in many cases exercised on friendly nations, as the
          French, Dutch, and Danes. After the peace of Vervins, the
          French maritime commerce with Spain and the Netherlands was terribly annoyed by
          English privateers: we find the Danes also complaining, and, in 1599,
          Elizabeth issued a proclamation enjoining all masters of vessels having
          letters of marque to give security before they sailed, that they would commit
          no injury on the subjects of friendly Powers. The disputes which hence
          arose nearly produced a war between England and France, till, in 1606,
          they were put an end to by a treaty of commerce; by which all letters of
          reprisal were annulled on both sides, and many salutary regulations
          adopted respecting trade.
   The opening of a
          more extensive commerce with Russia, which had hitherto been confined to Narva, was of a more legitimate nature. In the year 1558 a
          Joint-Stock Company was established in London, under the direction of the
          celebrated Sebastian Cabot, for the prosecution of maritime discovery, and a
          squadron of three ships, under the command of Sir Hugh Willoughby, doubled the
          North Cape in search of a north-eastern passage. Sir Hugh, with two of his
          ships, was compelled by the approach of winter to seek shelter in a harbour of Russian Lapland, where he and his crews were all
          frozen to death. In the following summer they were discovered by some Russian
          fishermen in the same attitudes in which death had surprised them; the
          commander still sitting at his cabin table with his diary and other papers open
          before him. The third vessel, under Richard Chancellor, was fortunate enough to
          run into the White Sea, or Bay of St. Nicholas; and the crews landing at the
          Abbey of St. Nicholas near Archangel, were enabled to weather the rigour of the season. Chancellor employed the opportunity
          to seek an interview with the Czar, Ivan Basilovitch,
          at Moscow, and to obtain for English commerce important privileges at
          Archangel, and other ports in those seas, which had been hitherto unvisited by
          any ships of burden. The Russians were the more inclined to enter into this
          connection, as Livonia, whence their products were shipped to the rest of
          Europe, was at this time in the hands of the Teutonic Order. Another fruit of
          this voyage was the discovery of the whale fishery at Spitzbergen. In the
          following year (1554) a charter of incorporation was granted by Queen Mary to
          the merchant adventurers engaged in this trade, who were subsequently called
          the Russia Company. In 1555 Chancellor and his companions again visited Moscow,
          and were hospitably entertained by the Czar, who granted them further important
          privileges. In the same year a Muscovite ambassador visited the Court of
          London. A few years after, Anthony Jenkinson, the energetic agent of the Russia
          Company, sailed down the Volga to Astrakan, crossed
          the Caspian Sea into Persia, and established at Bokhara a trade with the
          merchants of India, Persia, Russia, and Cathay, or China; and the silks and
          other products of the East were conveyed by the route thus opened to Kholmogory, on the Lower Dwina,
          and shipped thence to England. In 1566, the Russia Company was sanctioned and
          confirmed by an express statute, the first of the kind passed by the English
          Parliament. In the year 1581 was incorporated a trading company of the same
          kind, the English Turkey, or Levant Company.
   But the most
          important of all the commercial associations formed during the reign of
          Elizabeth was the East India Company, established by charter, 31st December,
          1600, for the purpose of carrying on a direct trade with the East Indies. In
          this enterprise, however, we had been anticipated by the Dutch.
           Decline of
          the Hanseatic League
   The history of
          Holland at this period affords a striking example how the spirit of liberty not
          only serves to secure the domestic happiness of a people, but also to promote
          their wealth and power. The war of independence became a source of prosperity
          to the new Republic. Although engaged in a long life-and-death struggle with
          the Spaniards, the commerce of the Dutch had gone on increasing every year, and
          their navy had attained to such a force as made them without a rival on the
          seas. So Athens reached her highest pitch of power and glory during her
          struggle with Persia; and though the Dutch will not afford many points of
          comparison with the Athenians, except their naval strength, yet the insolence,
          vain glory, and radical weakness of the Spaniards may find no unapt
          counterparts in the Persians. From the middle of the sixteenth century the
          maritime commerce of the Dutch had been gradually superseding that of the Hanse
          Towns; against which trading confederacy a terrible blow had also been struck
          by Queen Elizabeth, who, after many disputes and some deeds of violence, caused
          the Steelyard, or house of the Hanse merchants in London, to be shut up in
          1597. Before the close of the century the Dutch had become the chief carriers
          between the southern and northern parts of Europe. During the year 1586 and
          1587, the most miserable years of their struggle, more than 800 ships entered
          the Dutch ports. The merchants and manufacturers of Brabant and Flanders
          flocked into Holland and Zealand, and contributed so much to the wealth
          and population of those provinces that it became necessary to build new towns,
          and enlarge the old ones. This prosperity was accompanied with a corresponding
          decline in the southern, or obedient, provinces of the Netherlands. In these,
          large districts once fertile were become waste; innumerable villages, and even
          some small towns, were wholly depopulated; the fox, the wolf, and the wild boar
          prowled around even the larger cities, and in the winter of 1586-7, two hundred
          persons were killed by dogs and wolves in the neighbourhood of Ghent. Nobles and wealthy citizens had been reduced to beggary, and peasants
          and artizans were forced to turn soldiers or
          brigands. Antwerp had been completely ruined by the closing of the Scheldt.
   Meanwhile the
          Dutch, being no longer able, on account of the Spanish conquest of Portugal in
          1580, to convey the commodities of the East from the Portuguese ports to those
          of northern Europe, resolved to trade on their own account with the East
          Indies, and with this view secured the services of one Cornelis Houtman, a Fleming, who, having made several voyages to
          India with the Portuguese, was well acquainted not only with the navigation,
          but also with the ports best adapted for trade. The merchants of Amsterdam now
          entered into an association called the Company of Distant Countries, and despatched, under Houtman's command, four ships of small burden, carrying 250 men, with 100 guns, and laden
          with commodities suitable for the Indian market. After an absence of about two
          and a half years, Houtman, with three of his ships,
          returned to the Texel in August, 1597, having penetrated as far as Bantam, in
          Java; but the Portuguese merchants settled there set the natives against the
          Dutch, and the profits of the voyage scarcely repaid the expenses of the
          outfit. It was found, however, that the influence of the Portuguese in the
          Indies had very much declined since the conquest of Portugal by Philip II.; the
          rapacity, tyranny, and bad faith of their governors and merchants had disgusted
          the natives—circumstances which encouraged the Dutch to persevere, especially
          as they had acquired a good knowledge of those seas, and had brought home with
          them some uative Indians who might be useful in
          another expedition. Various trading companies were formed, and, in 1598,
          eighty vessels were despatched to the East and West
          Indies, to the coast of Africa, and even to the Pacific Ocean, in squadrons of
          from four to eight vessels, completely armed, and some provided with troops; so
          that they were alike ready to fight or trade. But as these divided associations
          were not found to yield much profit, they were, in the year 1602, amalgamated
          into one, under the name of the East India Company, with a joint-stock capital
          of between six and seven million guilders, or about six hundred thousand pounds
          sterling; and power was conferred upon this society to trade beyond the Cape of
          Good Hope and Straits of Magellan, to appoint governors, administer justice,
          build forts, raise troops, etc.
   Their trade was
          secure from molestation through the maritime superiority which the Dutch navy
          had begun to assert. In time they planted factories and settlements along the
          coasts of Asia and Bussorah on the Persian Gulf as
          far as Japan, and in particular they established themselves in the island of
          Java, where they made Batavia the central emporium of all their eastern trade.
          They also appropriated the Molucca and other spice islands, and became at
          length so powerful in the East as to send out fleets of forty or fifty large
          ships, and an army of thirty thousand men.
   In short, the
          foreign commerce of Holland grew so large as quite to overshadow that of
          England, and to excite the jealousy of our merchants and adventurers, as may be
          seen in the Observations addressed to James I by Sir Walter
          Raleigh shortly before his execution,
   France also
          appeared as a competitor in the race of colonization; but that nation does not
          seem to be well fitted for such enterprises, which, instead of giving birth at
          once to brilliant and striking results, must be fostered and brought to
          maturity by long years of patient care and industry. It is, at all events,
          certain, that the attempts of the French in this way were not crowned with any
          remarkable success. Sully, observing this characteristic in the national
          genius, dissuaded Henry from renewing the attempts to form plantations in New
          France. But Henry was not to be discouraged. He resolved to compete with Spain
          and England in the foundation of transatlantic colonies; but in order to avoid
          disputes with those Powers, he confined the researches of his navigators
          to the regions beyond the fortieth degree N. latitude. These efforts resulted
          in the foundation by Champlain of the colonies of Port-Royal in Acadia (1607)
          and Quebec in Canada (1608). The Gallic race obtained a permanent footing in
          the New World, though destined at length to fall under the dominion of their
          English rivals in that hemisphere. Henry also attempted in 1604 to establish a
          French East India Company; but there was not commercial enterprise enough in
          the country to carry out his views. The company remained in abeyance till 1615,
          when Louis XIII. gave them a new charter, and they took possession of the vast
          island of Madagascar. But it was soon found not to answer their expectations,
          and the company sank into oblivion.
   The Ottoman Empire
           The Ottoman Empire
          was beginning, towards the close of the sixteenth century, to feel the
          approaches of decay. The wars of Selim II had so exhausted the treasure which
          had previously been kept in the ancient Byzantine castle, called the
  "Seven Towers", that he caused it to be removed to his private
          treasury. In the palmy days of the Empire, each of these seven towers had its
          appropriate use : one contained the gold, another the silver money; a third the
          gold and silver plate and jewels; valuable remains of antiquity were deposited
          in the fourth; in the fifth were preserved ancient coins and other objects,
          chiefly collected by Selim I during his expeditions into Persia and Egypt; the
          sixth was a sort of arsenal, and the seventh was appropriated to the archives.
          After the time of Selim II the Seven Towers were used as a prison for
          distinguished persons and as an arsenal. Amurath III,
          whose avarice was prodigious, retained and improved upon the custom of his
          predecessor. He caused, it is said, a vault to be built, with treble locks, in
          which his treasure was deposited, and over which he slept every night; it was
          opened only four times a year to receive fresh heaps of wealth, which have been
          estimated at twelve million ducats annually; but two millions are perhaps
          nearer the truth.
   More than a
          century of Turkish despotism had at length state of done its work. Ragazzoni describes the Christians in the Ottoman
          Empire in 1571 as so depressed and degraded that they dared hardly look a Turk
          in the face: the only care of their listless existence was to raise enough for
          their maintenance, and to pay their Tcaratsh, or
          poll-tax—all beyond would be seized by the Turks. Constantinople, however,
          still afforded a secure place of residence, whither the Greeks flocked in great
          numbers; so that towards the end of the sixteenth century it was reckoned that
          there were 100,000 of them in that capital. Many of these acquired great
          wealth, either by trade or by farming certain branches of the Grand-Signor's
          revenue. Among them one Michael Kantakuzenus was
          conspicuous both for his enormous wealth and his intrigues, which procured him
          the name of the "Devil's Son" (Seitan Oglie), although
          it was thought that he was no true Greek, but an Englishman by birth, and
          belonging to the family of an English ambassador. The fate of whole provinces
          lay in his hands; he could fit out twenty or thirty galleys at his own expense,
          and the splendour of his palace at Anchioli rivalled the seraglio of the Grand-Signor. Kantakuzenus had gained his influence through the favour and friendship of Mohammed Sokolli;
          but even that powerful Vizier could not at last save him from the wrath of Amurath III; and he was hanged before the gate of his own
          palace (March, 1578). The Jews also occupied an important position in the
          Ottoman Empire. From the earliest period the physicians of the Sultan were of
          the Hebrew race; they monopolized most branches of commerce, and were the chief
          musical performers.
   
 CHAPTER XXIX.THE BEGINNING OF THE SEVENTEENTH CENTURY | 
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