making in a narrow sense, but state making and national-economy making at the same time; state making in the modern sense, which creates out of the political community an economic community, and so gives it a heightened meaning. The essence of the system lies not in some doctrine of money or of the balance of trade; not in tariff barriers, protective duties, or navigation laws; but in something far greater:-namely, in the total transformation of society and its organisation, as well as of the state and its institutions, in the replacing of a local and territorial economic policy by that of the national state.... If we pause for a while to consider this foreign and external economic policy of the European states of the seventeenth and eighteenth centuries — which it has hitherto been the custom to regard as the essential feature of the mercantile system, it is not, of course, our purpose to describe the details of its several forms. The general features of its regulations are well enough known. Difficulties were put in the way of the importation of manufactured goods; and their production and exportation were favoured by the prohibition of the export of raw materials, by bounties on export, and by commercial treaties. Encouragement was given to domestic shipping, to the fisheries, and to the coasting trade by restricting or forbidding foreign competition. Commerce with the colonies and the supplying of them with European wares, was reserved for the mother country. The importation of colonial produce had to take place directly from the colony itself, and not by way of European ports; and everywhere an attempt was made to establish direct trading relations by great privileged trading companies and by state aid in manifold ways. England promoted the export of corn and the prosperity of agriculture at the same time by the payment of bounties; France hindered the export of corn for the benefit of industry; Holland, in its later days, sought to create very large stores of corn and a very free trade in corn so as both to insure a due domestic supply and to encourage trade. But, as we have already said, an account of these several measures would go beyond the purpose of this essay. The general features are known; the details have even yet not, been subjected to due scientific investigation. Our only purpose here is to grasp the fundamental ideas of the system; which, naturally, found varying expression, here in high duties, there in low. Here in the prevention, there in the encouragement of the corn trade. The thought pursued everywhere was this: as competition with other countries fluctuated up and down, to cast the weight of the power of the state into the scales of the balance in the way demanded in each case by national interests. II. THE ENGLISH COLONIAL POLICY A. The Navigation Act of 1660 1 The Dutch, who were the foremost commercial nation of Europe during the seventeenth century, had obtained virtual control of the colonial trade, and in order to gain this trade for themselves the English government passed a series of measures, known as the navigation acts, which were designed to restrict the carrying trade between England and her colonies to British ships. These acts had important effects upon Dutch, English, and colonial shipping. The act of 1660 repeated, and somewhat extended, in more careful language, the provisions of the act of 1651. Only the most essential parts of the latter act are here given. An Act for the Encourageing and increasing of Shipping and [I] For the increase of Shiping and incouragement of the Navigation of this Nation, wherein under the good providence and protection of God the Wealth Safety and Strength of this Kingdome is soe much concerned Bee it Enacted by the Kings most Excellent Majesty and by the Lords and Commons in this present Parliament assembled and the Authoritie thereof That from and after the First day of December One thousand six hundred and sixty and from thence forward noe Goods or Commodities whatsoever shall be Imported into or Exported out of any Lands Islelands Plantations or Territories to his Majesty belonging or in his possession or which may hereafter belong unto or be in the possession of His Majesty His Heires and Successors in Asia Africa or America in any other Ship or Ships Vessell or Vessells whatsoever but in such Ships or Vessells as doe truely and without fraude belong onely to the people of England or Ireland Dominion of Wales or Towne of Berwicke upon Tweede, or are of the built of, and belonging to any of the said Lands Islands Plantations or Territories as the Proprietors and right Owners therof and wherof the Master and three fourthes of the Marriners at least are English under the penalty of the Forfeiture and Losse of all the Goods and Commodityes which shall be Imported into, or Exported out of, any the aforesaid places in any other Ship or Vessell, as alsoe of the Ship or Vessell with all its Guns Furniture Tackle Ammunition and Apparell, . . . 1 Statutes of the Realm, V, 246-250; and in Select Charters and other Documents illustrative of American History, 1606-1775, edited by W. Macdonald (New York, 1910), 110-115, passim. Printed by permission of the editor and the publishers, The Macmillan Company. [III.] And it is further Enacted . . . that noe Goods or Commodityes whatsoever of the growth production or manufacture of Africa Asia or America or of any part thereof, or which are described or laid downe in the usuall Maps or Cards of those places be Imported into England Ireland or Wales Islands of Guernsey or Jersey or Towne of Berwicke upon Tweede in any other Ship or Ships Vessell or Vessels whatsoever, but in such as doe truely and without fraude belong onely to the people of England or Ireland, Dominion of Wales or Towne of Berwicke upon Tweede or of the Lands Islands Plantations or Territories in Asia Africa or America to his Majesty belonging as the proprietors and right owners thereof, and whereof the Master and three fourthes at least of the Mariners are English under the penalty of the forfeiture of all such Goods and Commodityes, and of the Ship or Vessell in which they were Imported with all her Guns Tackle Furniture Ammunition and Apparell, . . . [IV.] And it is further Enacted. . . that noe Goods or Commodityes that are of forraigne growth production or manufacture and which are to be brought into England Ireland Wales, the Islands of Guernsey & Jersey or Towne of Berwicke upon Tweede in English built shiping, or other shiping belonging to some of the aforesaid places, and navigated by English Mariners as above-said shall be shiped or brought from any other place or Places, Country or Countries but onely from those of their said Growth Production or Manufacture, or from those Ports where the said Goods and Commodityes can onely or are or usually have beene first shiped for transportation and from none other Places or Countryes under the penalty of the forfeiture of all such of the aforesaid Goods as shall be Imported from any other place or Country contrary to the true intent and meaning hereof, as alsoe of the ship in which they were imported with all her Guns Furniture Ammunition Tackle and Apparel, . . . ... [XVIII.] And it is further Enacted . . . That from and after [April 1, 1661] . . . noe Sugars Tobaccho Cotton Wool Indicoes Ginger Fustick or other dyeing wood of the Growth Production or Manufacture of any English Plantations in America Asia or Africa shall be shiped carryed conveyed or transported from any of the said English Plantations to any Land Island Territory Dominion Port or place whatsoever other then to such [other] English Plantations as doe belong to His Majesty His Heires and Successors or to the Kingdome of England or Ireland or Principallity of Wales or Towne of Berwicke upon Tweede there to be laid on shore under the penalty of the Forfeiture of the said Goods or the full value thereof, as alsoe of the Ship with all her Guns Tackle Apparel Ammunition and Furniture, B. The Navigation Act of 16631 While the earlier acts had sought to give to British vessels a monopoly of the carrying trade between England and her colonies, that of 1663 was designed to secure to English merchants the profits of handling all goods that were sent to the colonies, as these must now be "laden and shipped" in England and from "noe other place." With the passage of this act colonial trade was brought completely under Parliamentary control, and subsequent measures aimed simply to strengthen the system by more detailed regulations. An Act for the Encouragement of Trade [1663.] [IV.] And in reguard His Majesties Plantations beyond the Seas are inhabited and peopled by His Subjects of this His Kingdome of England, For the maintaining a greater correspondence and kindnesse betweene them and keepeing them in a firmer dependance upon it, and rendring them yet more beneficiall and advantagious unto it in the farther Imployment and Encrease of English Shipping and Seamen, vent of English Woollen and other Manufactures and Commodities rendring the Navigation to and from the same more safe and cheape, and makeing this Kingdome a Staple not onely of the Commodities of those Plantations but alsoe of the Commodities of other Countryes and Places for the supplying of them, and it being the usage of other Nations to keepe their Plantations Trade to themselves, Be it enacted and it is hereby enacted That from and after the Five and twentyeth day of March One thousand six hundred sixtie fower noe Commoditie of the Growth Production or Manufacture of Europe shall be imported into any Land Island Plantation Colony Territory or Place to His Majestie belonging, or which shall hereafter belong unto, or be in the Possession of His Majestie His Heires and Successors in Asia Africa or America (Tangier onely excepted) but what shall be bona fide and without fraude laden and shipped in England Wales or the Towne of Berwicke upon Tweede and in English built Shipping, . . . and whereof the Master and three Fourthes of the Marriners at least are English, and which shall be carryed directly thence to the said Lands Islands Plantations Colonyes Territories 1 Statutes of the Realm, V, 449–452; also in Select Charters and other Documents illustrative of American History, 1606-1775, edited by W. Macdonald (New York, 1910), 133-135. Printed by permission of the editor and the publishers, The Macmillan Company. or Places, and from noe other place or places whatsoever Any Law Statute or Usage to the contrary notwithstanding, under the Penaltie of the losse of all such Commodities of the Growth Production or Manufacture of Europe as shall be imported into any of them from any other Place whatsoever by Land or Water, [V.] PROVIDED alwayes . . . That it shall and may be lawfull to shipp and lade in such Shipps, and soe navigated as in the foregoeing Clause is sett downe and expressed in any part of Europe Salt for the Fisheries of New England and New found land, and to shipp and lade in the Medera's Wines of the Growth thereof, and to shipp and lade in the Westerne Islands or Azores Wines of the Growth of the said Islands, and to shipp and take in Servants or Horses in Scotland or Ireland, and to shipp or lade in Scotland all sorts of Victuall of the Growth or Production of Scotland, and to shipp or lade in Ireland all sortes of Victuall of the Growth or Production of Ireland, and the same to transport into any of the said Lands Islands Plantations Colonyes Territories or Places, Any thing in the foregoing Clause in the contrary in any wise notwithstanding. C. The English Colonial System: a Favorable View, 16881 Sir Josiah Child was the chairman, and virtually the ruler, of the East India Company for some years, and was therefore greatly interested in the extension of the commercial power of England and favored the navigation acts. He argues, however, in the extract here quoted that "Profit and power ought joyntly to be considered," and that the encouragement of her shipping would make England a powerful and wealthy country. This was good mercantilistic doctrine. Child's book was first published in 1688, and was issued in a much enlarged form in the second edition. CHAP. IV. CONCERNING THE ACT OF NAVIGATION Though this Act be by most concluded a very beneficial Act for this Kingdom, especially by the Masters and Owners of Shiping, and by all Sea-men; yet some there are, both wise and honest Gentlemen and Merchants, that doubt whether the Inconveniencies it hath brought with it, be not greater than the Conveniencies. For my own part, I am of opinion that in relation to Trade, Shipping, Profit and Power, it is one of the choicest and most prudent Acts that ever was made in England, and without which we had not now been Owners of one half the Shipping, nor Trade, nor employed one A New Discourse of Trade. By Sir Josiah Child (2d edition, London, 1694), 112-114. |