manufactured　goods　in　Belgium；　than　to　establish　manufactories　in
  their　own　country。　They　encouraged　and　promoted　the　agriculture　of
  Poland；　the　sheep…farming　of　England；　the　iron　industry　of　Sweden；
  and　the　manufactures　of　Belgium。　They　acted　for　centuries　on　the
  maxim　which　the　theoretical　economists　of　our　day　commend　to　all
  nations　for　adoption　　they　'bought　only　in　the　cheapest　market。'
  But　when　the　nations　from　whom　they　bought；　and　those　to　whom　they
  sold；　excluded　them　from　their　markets；　neither　their　own　native
  agriculture　nor　their　own　manufacturing　industry　was　sufficiently
  developed　to　furnish　employment　for　their　surplus　commercial
  capital。　it　consequently　flowed　over　into　Holland　and　England；　and
  thus　went　to　increase　the　industry；　the　wealth；　and　the　power　of
  their　enemies；　a　striking　proof　that　mere　private　industry　when
  left　to　follow　its　own　course　does　not　always　promote　the
  prosperity　and　the　power　of　nations。　In　their　exclusive　efforts　to
  gain　material　wealth；　these　cities　had　utterly　neglected　the
  promotion　of　their　political　interests。　During　the　period　of　their
  power；　they　appeared　no　longer　to　belong　at　all　to　the　German
  Empire。　It　flattered　these　selfish；　proud　citizens；　within　their
  circumscribed　territories；　to　find　themselves　courted　by　emperors；
  kings；　and　princes；　and　to　act　the　part　of　sovereigns　of　the　seas。
  How　easy　would　it　have　been　for　them　during　the　period　of　their
  maritime　supremacy；　in　combination　with　the　cities　of　North
  Germany；　to　have　founded　a　powerful　Lower　House　as　a　counterpoise
  to　the　aristocracy　of　the　empire；　and　by　means　of　the　imperial
  power　to　have　thus　brought　about　national　unity　　to　have　united
  under　one　nationality　the　whole　sea…coast　from　Dunkirk　to　Riga
  and　by　these　means　to　have　won　and　maintained　for　the　German　nation
  supremacy　in　manufactures；　commerce；　and　maritime　power。　But　in
  fact；　when　the　sceptre　of　the　seas　fell　from　their　grasp；　they　had
  not　sufficient　influence　left　to　induce　the　German　Reichstag　to
  regard　their　commerce　as　a　matter　of　national　concern。　On　the
  contrary；　the　German　aristocracy　did　all　in　their　power　thoroughly
  to　oppress　these　humbled　citizens。　Their　inland　cities　fell
  gradually　under　the　absolute　dominion　of　the　various　princes；　and
  hence　their　maritime　ones　were　deprived　of　their　inland
  connections。
  All　these　faults　had　been　avoided　by　England。　Her　merchant
  shipping　and　her　foreign　commerce　rested　on　the　solid　basis　of　her
  native　agriculture　and　native　industry；　her　internal　trade
  developed　itself　in　just　proportion　to　her　foreign　trade；　and
  individual　freedom　grew　up　without　prejudice　to　national　unity　or
  to　national　power：　in　her　case　the　interests　of　the　Crown；　the
  aristocracy；　and　the　people　became　consolidated　and　united　in　the
  happiest　manner。
  If　these　historical　facts　are　duly　considered；　can　anyone
  possibly　maintain　that　the　English　could　ever　have　so　widely
  extended　their　manufacturing　power；　acquired　such　an　immeasurably
  great　commerce；　or　attained　such　overwhelming　naval　power；　save　by
  means　of　the　commercial　policy　which　they　adopted　and　pursued？　No；
  the　assertion　that　the　English　have　attained　to　their　present
  commercial　eminence　and　power；　not　by　means　of　their　commercial
  policy；　but　in　spite　of　it；　appears　to　us　to　be　one　of　the　greatest
  falsehoods　promulgated　in　the　present　century。
  Had　the　English　left　everything　to　itself　　'Laiss椤aire　et
  laiss椤ller；'　as　the　popular　economical　school　recommends　　the
  merchants　of　the　Steelyard　would　be　still　carrying　on　their　trade
  in　London；　the　Belgians　would　be　still　manufacturing　cloth　for　the
  English；　England　would　have　still　continued　to　be　the　sheep…farm　of
  the　Hansards；　just　as　Portugal　became　the　vineyard　of　England；　and
  has　remained　so　till　our　days；　owing　to　the　stratagem　of　a　cunning
  diplomatist。　Indeed；　it　is　more　than　probable　that　without　her
  commercial　policy　Eng1and　would　never　have　attained　to　such　a　large
  measure　of　municipal　and　individual　freedom　as　she　now　possesses；
  for　such　freedom　is　the　daughter　of　industry　and　of　wealth。
  In　view　of　such　historical　considerations；　how　has　it　happened
  that　Adam　Smith　has　never　attempted　to　follow　the　history　of　the
  industrial　and　commercial　rivalry　between　the　Hanseatic　League　and
  England　from　its　origin　until　its　close？　Yet　some　passages　in　his
  work　show　clearly　that　he　was　not　unacquainted　with　the　causes　of
  the　fall　of　the　League　and　its　results。　'A　merchant；'　he　says；　'is
  not　necessarily　the　citizen　of　any　particular　country。　It　is　in　a
  great　measure　indifferent　to　him　from　what　place　he　carries　on　his
  trade；　and　a　very　trifling　disgust　will　make　him　remove　his
  capital；　and　together　with　it　all　the　industry　which　it　supports；
  from　one　country　to　another。　No　part　of　it　can　be　said　to　belong　to
  any　particular　country　till　it　has　been　spread；　as　it　were；　over
  the　face　of　that　country；　either　in　buildings　or　in　the　lasting
  improvement　of　lands。　No　vestige　now　remains　of　the　great　wealth
  said　to　have　been　possessed　by　the　greater　part　of　the　Hanse　Towns
  except　in　the　obscure　histories　of　the　thirteenth　and　fourteenth
  centuries。　it　is　even　uncertain　where　some　of　them　were　situated；
  or　to　what　towns　in　Europe　the　Latin　names　given　to　some　of　them
  belong。'（17*）
  How　strange　that　Adam　Smith；　having　such　a　clear　insight　into
  the　secondary　causes　of　the　downfall　of　the　Hanseatic　League；　did
  not　feel　himself　compelled　to　examine　into　its　primary　causes！　For
  this　purpose　it　would　not　have　been　at　all　necessary　to　have
  ascertained　the　sites　where　the　fallen　cities　had　stood；　or　to
  which　cities　belonged　the　Latin　names　in　the　obscure　chronicles。　He
  need　not　even　have　consulted　those　chronicles　at　all。　His　own
  countrymen；　Anderson；　Macpherson；　King；　and　Hume　could　have
  afforded　him　the　necessary　explanation。
  How；　therefore；　and　for　what　reason　could　such　a　profound
  inquirer　permit　himself　to　abstain　from　an　investigation　at　once　so
  interesting　and　so　fruitful　in　results？　We　can　see　no　other　reason
  than　this　　that　it　would　have　led　to　conclusions　which　would　have
  tended　but　little　to　support　his　principle　of　absolute　free　trade。
  He　would　infallibly　have　been　confronted　with　the　fact　that　after
  free　commercial　intercourse　with　the　Hansards　had　raised　English
  agriculture　from　a　state　of　barbarism；　the　protective　commercial
  policy　adopted　by　the　English　nation　at　the　expense　of　the
  Hansards；　the　Belgians；　and　the　Dutch　helped　England　to　attain　to
  manufacturing　supremacy；　and　that　from　the　latter；　aided　by　her
  Navigation　Acts；　arose　her　commercial　supremacy。
  These　facts；　it　would　appear；　Adam　Smith　was　not　willing　to
  know　or　to　acknowledge；　for　indeed　they　belong　to　the　category　of
  those　inconvenient　facts　of　which　J。B。　Say　observes　that　they　would
  have　proved　very　adverse　to　his　system。
  NOTES：
  1。　Anderson；　Origins　of　Commerce；　pt。　I；　p。　46。
  2。　Wealth　of　Nations；　Book　IV；　ch。　ii。
  3。　Hume；　History　of　England；　Part　IV；　ch。　xxi。
  4。　The　revenues　of　the　kings　of　England　were　derived　at　that　time
  more　from　export　duties　than　from　import　duties。　Freedom　of　export
  and　duties　on　imports　（viz。　of　manufactures）　betoken　at　once　an
  advanced　state　of　industry　and　an　enlightened　State　administration。
  The　governments　and　countries　of　the　North　stood　at　about　the　same
  stage　of　culture　and　statemanship　as　the　Sublime　Porte　does　in　our
  day。　The　Sultan　has；　notably；　only　recently　concluded　commercial
  treaties；　by　which　he　engages　not　to　tax　exports　of　raw　materials
  and　manufactures　higher　than　fourteen　per　cent　but　imports　not
  higher　than　five　per　cent。　And　there　accordingly　that　system　of
  finance　which　professes　to　regard　revenue　as　its　chief　object
  continues　in　full　operation。　Those　statesmen　and　public　writers　who
  follow　or　advocate　that　system　ought　to　betake　themselves　to
  Turkey；　there　they　might　really　stand　at　the　head　of　the　times。
  5。　The　Hansards　were　formerly　termed　'Easterlings'　or　Eastern
  merchants；　in　England；　in　contradistinction　to　those　of　the　West；
  or　the　Belgians　and　Dutch。　From　this　term　is　derived　'sterling'　or
  'pound　sterling'；　an　abbreviation　of　the　word　'Easterlings'　because
  formerly　all　the　coin　in　circulation　in　England　was　that　of　the
  Hanseatic　League。
  6。　Hume；　History　of　England；　ch。　xxxv。
  7。　M。　I。　Sartorius；　Geschichte　der　Hansa。