“ For more than ten centuries the naked power of the sword was vivid and terrible as flashes of lightning over all the seats of commerce, whether of ancient or more modern origin. The feudal system of Europe, in organizing the open country under military leaders and defenders subordinated in possession and service under a legal system to each other and to the sovereign power, must have been well adapted to the necessity of the times in which it spread so rapidly; but it would be impossible to say that the feudal system was favourable to trade, or the extension of trade. ”

“ The middle ages placed the barbarous populations of Europe under a severe discipline, trained them in the most varied branches of industry, and developed an amount of handicraft and ingenuity which became a solid basis for the future. But trade was too walled in, too much clad in armour, and too incessantly disturbed by wars and tumults, and violations of common right and interest, to exert its full influence over the general society, or even to realize its most direct advantages. ”

“ It is obvious that the destruction of Palmyra must not only have doomed Palmyra. Palestine, already bereft of her seaports, to greater poverty and commercial isolation than had been known in long preceding ages, but have also rendered it more difficult to Rome herself to hold or turn to any profitable account her conquests in Asia; and, being an example of the policy of Rome to the seats of trade over nearly the whole ancient world, it may be said to contain in graphic characters a presage of what came to be the actual event—the collapse and fall of the Roman empire itself. ”

“ It can hardly ever again exhibit that wandering course from route to route, and from one solitary centre to another, which is so characteristic of its ancient history, because it is established in every quarter of the globe, and all the seas and ways are open to it on terms fair and equal to every nation. ”

“ The lists of imports and exports and of the places from which they flowed to and from the centres of trade, as they swelled in bulk from time to time, show how busily and steadily the threads of commerce had been weaving together the labour and interests of mankind, and extending a security and bounty of existence unknown in former ages. The 19th century witnessed an extension of the commercial relations of mankind of which there was no parallel in previous history. ”

“ One can hardly now realize the impression made by these discoveries in an age when the minds of men were awakening out of a long sleep, when the printing press was disseminating the ancient classical and sacred literature, and when geography and astronomy were subjects of eager study in the seats both of traffic and of learning. ”

“ As long as navigation was confined to rivers and the shores of inland gulfs and seas, the oceans were a terra incognita, contributing nothing to the facility or security of transport from one part of the world to another, and leaving even one populous part of Asia as unapproachable from another as if they had been in different hemispheres. The various routes of trade from Europe and north-western Asia to India, which have been often referred to, are to be regarded more as speculations of future development than as realities of ancient history. ”

“ It is not a company of merchants, having a monopoly, and doing whatever they please, whether right or wrong, that now hold the commerce of the world in their hands, but large communities of free merchants in all parts of the world, affiliated to manufacturers and producers equally free, each under strong temptation to do what may be wrong in the pursuit of his own interest, and the only security of doing right being to follow steady lights of information and economic science common to all. ”

“ The grandeur of Spain in the preceding century was due partly to the claim of her kings to be Holy Roman emperors, in which imperial capacity they entailed intolerable mischief on the Low Countries and on the commercial civilization of Europe, and partly to their command of the gold and silver mines of Mexico and Peru, in an eager lust of whose produce they brought cruel calamities on a newly-discovered continent where there were many traces of antique life, the records of which perished in their hands or under their feet. ”

“ If in the older times it was thought that a foreign merchant required to be not only a good man of business, but even a statesman, it is evident that all the higher faculties of the mercantile profession must still more be called into request when imports and exports are reckoned by hundreds instead of fives or tens of millions, when the markets are so much larger and more numerous, the competition so much more keen and varied, the problems to be solved in every course of transaction so much more complex, the whole range of affairs to be overseen so immensely widened. ”

“ Commerce in all periods and countries has obtained a certain freedom and hospitality from the fact that the foreign merchant has something desirable to offer; but the action of trading is reciprocal, and requires multitudes of producers and merchants, as free agents, on both sides, searching out by patient experiment wants more advantageously supplied by exchange than by direct production, before it can attain either permanence or magnitude, or can become a vital element of national life. ”

“ Venice had already begun to decline in her wars with the Turks, and could inadequately protect her own trade in the Mediterranean. Armed vessels sent out in strength from the Western ports often fared badly at the hands of the pirates. European trade with India can scarcely be said, indeed, to have yet come into existence. The maritime route was round about, and it lay on the hitherto almost untrodden ocean, but the ocean was a safer element than inland seas and deserts infested by the lawlessness and ferocity of hostile tribes of men. ”

“ The commercial spirit in the feudal, as in preceding ages, had to find for itself places of security, and it could only find them in towns, armed with powers of self-regulation and defence, and prepared, like the feudal barons themselves, to resist violence from whatever quarter it might come. Rome, in her best days, had founded the municipal system, and when this system was more than ever necessary as the bulwark of arts and manufactures, its extension became an essential element of the whole European civilization. ”

“ Spain, following the stroke of the valiant oar of Columbus, found in Mexico and Peru remarkable remains of an ancient though feeble civilization, and a wealth of gold and silver mines, which to Europeans of that period was fascinating from the rarity of the precious metals in their own realms, and consequently gave to the Spanish colonizations and conquests in South America an extraordinary but unsolid prosperity. ”

“ Both the agricultural and the theocratic constitution of their society were unfavourable to a vigorous prosecution of foreign trade. In such traffic as they had with other nations they were served on their eastern borders by Arabian merchants, and on the west and south by the Phoenician shippers. The abundance of gold, silver and other precious commodities gathered from distant parts, of which we read in the days of greatest Hebrew prosperity, has more the character of spoils of war and tributes of dependent states than the conquest by free exchange of their domestic produce and manufacture. ”

“ Corn, though of the first necessity, could only be thus transported in famines, when beyond price to those who were in want, and under this extreme pressure could only be drawn from within a narrow sphere, and in quantity sufficient to the sustenance of but a small number of people. The routes of ancient commerce were thus interrupted and cut asunder by barriers of transport, and the farther they were extended became the more impassable to any considerable quantity or weight of commodities. ”

“ An examination of the foreign trade of Europe two centuries after the opening of the maritime route to India and the discovery of America would probably give more reason to be surprised at the smallness than the magnitude of the use that had been made of these events.
By the beginning of the 19th century the world had been well explored. Colonies had been planted on every coast; great nations had sprung up in vast solitudes or in countries inhabited only by savage or decadent races of men ”

“ In old and populous countries, like India and China, modern manufacture had to meet and contend with ancient manufacture, and had at once to learn from and improve economically on the established models, before an opening could be made for its extension. In many parts of the New World there were vast tracts of country, without population or with native races too wild and savage to be reclaimed to habits of industry, whose resources could only be developed by the introduction of colonies of Europeans ”

“ The ancient polities offered much resistance to this development, and in their absolute power over the liberty, industry and property of the masses of their subjects raised barriers to the extension of commerce scarcely less formidable than the want of means of communication itself. The conditions of security under which foreign trade can alone flourish equally exceeded the resources of ancient civilization. ”

“ Easy transport of goods by land and sea, prompt intelligence from every point of the compass, general prevalence of mercantile law and safety, have all been accomplished; and the world is opened to trade. ”

“ The value of the precious metals in Europe was found to fall as soon as they began to be more widely distributed, a process in itself at that period of no small tediousness; and it was discovered further, after a century or two, that the production of gold and silver is limited like the production of other commodities for which they exchange, and only increased in quantity at a heavier cost, that is only reduced again by greater art and science in the process of production. ”

“ The towns of Holland found lasting strength and security from other causes. Their foundations were laid as literally in the sea as those of Venice had been. They were not easily attacked whether by sea or land, and if attacked had formidable means of defence. The Zuyder Zee, which had been opened to the German Ocean in 1282, carried into the docks and canals of Amsterdam the traffic of the ports of the Baltic, of the English Channel and of the south of Europe, and what the seas did for Amsterdam from without the Rhine and the Maese did for Dort and Rotterdam from the interior. ”

“ The advantage which absolute power gave to ancient nations in their warlike enterprises, and in the execution of public works of more or less utility, or of mere ostentation and monumental magnificence, was dearly purchased by the sacrifice of individual freedom, the right to labour, produce and exchange under the steady operation of natural economic principles, which more than any other cause vitalizes the individual and social energies, and multiplies the commercial resource of communities. ”

“ The great rivers, which became the first seats of population and empire, must have been of much utility as channels of transport, and hence the course of human power of which they are the geographical delineation, and probably the idolatry with which they were sometimes honoured. ”

“ It is not improbable that the ancient traffic of the Red Sea may have been extended along the shores of the Arabian Sea to some parts of Hindustan, but that vessels braved the Indian Ocean and passed round Cape Comorin into the Bay of Bengal, 2000 or even 1000 years before mariners had learned to double the Cape of Good Hope, is scarcely to be believed. The route by the Euxine and the Caspian Sea has probably never in any age reached India. ”