structure　of　their　national　prosperity　upon　the　most　solid
  foundations；　the　Spaniards　and　the　Portuguese　made　a　fortune
  rapidly　by　means　of　their　discoveries　and　attained　to　great　wealth
  in　a　very　short　space　of　time。　But　it　was　only　the　wealth　of　a
  spendthrift　who　had　won　the　first　prize　in　a　lottery；　whereas　the
  wealth　of　the　English　may　be　likened　to　the　fortune　accumulated　by
  the　diligent　and　saving　head　of　a　family。　The　former　may　for　a　time
  appear　more　to　be　envied　than　the　latter　on　account　of　his　lavish
  expenditure　and　luxury；　but　wealth　in　his　case　is　only　a　means　for
  prodigality　and　momentary　enjoyment；　whereas　the　latter　will　regard
  wealth　chiefly　as　a　means　of　laying　a　foundation　for　the　moral　and
  material　well…being　of　his　latest　posterity。
  The　Spaniards　possessed　flocks　of　well…bred　sheep　at　so　early
  a　period　that　Henry　I　of　England　was　moved　to　prohibit　the
  importation　of　Spanish　wool　in　1172；　and　that　as　far　back　as　the
  tenth　and　eleventh　centuries　Italian　woollen　manufacturers　used　to
  import　the　greater　portion　of　their　wool　supplies　from　Spain。　Two
  hundred　years　before　that　time　the　dwellers　on　the　shores　of　the
  Bay　of　Biscay　had　already　distinguished　themselves　in　the
  manufacture　of　iron；　in　navigation；　and　in　fisheries。　They　were　the
  first　to　carry　on　the　whale　fishery；　and　even　in　the　year　1619　they
  still　so　far　excelled　the　English　in　that　business　that　they　were
  asked　to　send　fishermen　to　England　to　instruct　the　English　in　this
  particular　branch　of　the　fishing　trade。（1*）
  Already　in　the　tenth　century；　under　Abdulrahman　III　（912　to
  950）；　the　Moors　had　established　in　the　fertile　plains　around
  Valencia　extensive　plantations　of　cotton；　sugar；　and　rice；　and
  carried　on　silk　cultivation。　Cordova；　Seville；　and　Granada
  contained　at　the　time　of　the　Moors　important　cotton　and　silk
  manufactories。（2*）　Valencia；　Segovia；　Toledo；　and　several　other
  cities　in　Castile　were　celebrated　for　their　woollen　manufactures。
  Seville　alone　at　an　early　period　of　history　contained　as　many　as
  16；000　looms；　while　the　woollen　manufactories　of　Segovia　in　the
  year　1552　were　employing　13；000　operatives。　Other　branches　of
  industry；　notably　the　manufacture　of　arms　and　of　paper；　had　become
  developed　on　a　similar　scale。　In　Colbert's　day　the　French　were
  still　in　the　habit　of　procuring　supplies　of　cloth　from　Spain。（3*）
  The　Spanish　seaport　towns　were　the　seat　of　an　extensive　trade　and
  of　important　fisheries；　and　up　to　the　time　of　Philip　II　Spain
  possessed　a　most　powerful　navy。　In　a　word；　Spain　possessed　all　the
  elements　of　greatness　and　prosperity；　when　bigotry；　in　alliance
  with　despotism；　set　to　work　to　stifle　the　high　spirit　of　the
  nation。　The　first　commencement　of　this　work　of　darkness　was　the
  expulsion　of　the　Jews；　and　its　crowning　act　the　expulsion　of　the
  Moors；　whereby　two　millions　of　the　most　industrious　and　well…to…do
  inhabitants　were　driven　out　of　Spain　with　their　capital。
  While　the　Inquisition　was　thus　occupied　in　driving　native
  industry　into　exile；　it　at　the　same　time　effectually　prevented
  foreign　manufacturers　from　settling　down　in　the　country。　The
  discovery　of　America　and　of　the　route　round　the　Cape　only　increased
  the　wealth　of　both　kingdoms　after　a　specious　and　ephemeral　fashion
  indeed；　by　these　events　a　death…blow　was　first　given　to　their
  national　industry　and　to　their　power。　For　then；　instead　of
  exchanging　the　produce　of　the　East　and　West　Indies　against　home
  manufactures；　as　the　Dutch　and　the　English　subsequently　did；　the
  Spaniards　and　Portuguese　purchased　manufactured　goods　from　foreign
  nations　with　the　gold　and　the　silver　which　they　had　wrung　from
  their　colonies。（4*）　They　transformed　their　useful　and　industrious
  citizens　into　slave…dealers　and　colonial　tyrants：　thus　they
  promoted　the　industry；　the　trade；　and　the　maritime　power　of　the
  Dutch　and　English；　in　whom　they　raised　up　rivals　who　soon　grew
  strong　enough　to　destroy　their　fleets　and　rob　them　of　the　sources
  of　their　wealth。　In　vain　the　kings　of　Spain　enacted　laws　against
  the　exportation　of　specie　and　the　importation　of　manufactured
  goods。　The　spirit　of　enterprise；　industry；　and　commerce　can　only
  strike　root　in　the　soil　of　religious　and　political　liberty；　gold
  and　silver　will　only　abide　where　industry　knows　how　to　attract　and
  employ　them。
  Portugal；　however；　under　the　auspices　of　an　enlightened　and
  powerful　minister；　did　make　an　attempt　to　develop　her　manufacturing
  industry；　the　first　results　of　which　strike　us　with　astonishment。
  That　country　like　Spain；　had　possessed　from　time　immemorial　fine
  flocks　of　sheep。　Strabo　tells　us　that　a　fine　breed　of　sheep　had
  been　introduced　into　Portugal　from　Asia；　the　cost　of　which　amounted
  to　one　talent　per　head。　When　the　Count　of　Ereceira　became　minister
  in　1681；　he　conceived　the　design　of　establishing　cloth
  manufactories；　and　of　thus　working　up　the　native　raw　material　in
  order　to　supply　the　mother　country　and　the　colonies　with
  home…manufactured　goods。　With　that　view　cloth　workers　were　invited
  from　England；　and　so　speedily　did　the　native　cloth　manufactories
  flourish　in　consequence　of　the　protection　secured　to　them；　that
  three　years　later　（in　1684）　it　became　practicable　to　prohibit　the
  importation　of　foreign　cloths。　From　that　period　Portugal　supplied
  herself　and　her　colonies　with　native　goods　manufactured　of
  home…grown　raw　material；　and　prospered　exceedingly　in　so　doing　for
  a　period　of　nineteen　years；　as　attested　by　the　evidence　of　English
  writers　themselves。（5*）
  It　is　true　that　even　in　those　days　the　English　gave　proof　of
  that　ability　which　at　subsequent　times　they　have　managed　to　bring
  to　perfection。　In　order　to　evade　the　tariff　restrictions　of
  Portugal；　they　manufactured　woollen　fabrics；　which　slightly
  differed　from　cloth　though　serving　the　same　purpose；　and　imported
  these　into　Portugal　under　the　designation　of　woollen　serges　and
  woollen　druggets。　This　trick　of　trade　was；　however；　soon　detected
  and　rendered　innocuous　by　a　decree　prohibiting　the　importation　of
  such　goods。（6*）　The　success　of　these　measures　is　all　the　more
  remarkable　because　the　country；　not　a　very　great　while　before；　had
  been　drained　of　a　large　amount　of　capital；　which　had　found　its　way
  abroad　owing　to　the　expulsion　of　the　Jews；　and　was　suffering
  especially　from　all　the　evils　of　bigotry；　of　bad　government；　and　of
  a　feudal　aristocracy；　which　ground　down　popular　liberties　and
  agriculture。（7*）
  In　the　year　1703；　after　the　death　of　Count　Ereceira；　however；
  the　famous　British　ambassador　Paul　Methuen　succeeded　in　persuading
  the　Portuguese　Government　that　Portugal　would　be　immensely
  benefited　if　England　were　to　permit　the　importation　of　Portuguese
  wines　at　a　duty　one…third　less　than　the　duty　levied　upon　wines　of
  other　countries；　in　consideration　of　Portugal　admitting　English
  cloths　at　the　same　rate　of　import　duty　（viz。　twenty…three　per
  cent。）　which　had　been　charged　upon　such　goods　prior　to　the　year
  1684。　It　seems　as　though　on　the　part　of　the　King　the　hope　of　an
  increase　in　his　customs　revenue；　and　on　the　part　of　the　nobility
  the　hope　of　an　increased　income　from　rents；　supplied　the　chief
  motives　for　the　conclusion　of　that　commercial　treaty　in　which　the
  Queen　of　England　（Anne）　styles　the　King　of　Portugal　'her　oldest
  friend　and　ally'　　on　much　the　same　principle　as　the　Roman　Senate
  was　formerly　wont　to　apply　such　designations　to　those　rulers　who
  had　the　misfortune　to　be　brought　into　closer　relations　with　that
  assembly。
  Directly　after　the　conclusion　of　this　treaty；　Portugal　was
  deluged　with　English　manufactures；　and　the　first　result　of　this
  inundation　was　the　sudden　and　complete　ruin　of　the　Portuguese
  manufactories　　a　result　which　had　its　perfect　counterparts　in　the
  subsequent　so…called　Eden　treaty　with　France　and　in　the　abrogation
  of　the　Continental　system　in　Germany。
  According　to　Anderson's　testimony；　the　English；　even　in　those
  days；　had　become　such　adepts　in　the　art　of　understating　the　value
  of　their　goods　in　their　custom…house　bills　of　entry；　that　in　effect
  they　paid　no　more　than　half　the　duty　chargeable　on　them　by　the
  tariff。（8*）
  'After　the　repeal　of　the　prohibition；'　says　'The　British
  Merchant；'　'we　managed　to　carry　away　so　much　of　their　silver
  currency　that　there　remained　but　very　little　for　their　necessary
  occasions；　thereupon　we　attacked　their　gold。'（9*）　This　trade　the
  English　continued　down　to　very　recent　times。　They　exported　all　t