The Causes And Circumstances Which Were Unfavourable To It During The Same
Period Are Much Fewer In Number; And Though Some Of Them Were Powerful,
Yet, Even These, For The Most Part, When They Ceased To Operate, Gave Birth
To A Reaction Favourable To Commerce.
The more general causes may be sought
for in the erroneous notions entertained respecting commerce, in
consequence of which monopolies were granted, especially in the reign of
James I.; and laws were made to regulate what would have gone on best, if
it had been left to itself.
The civil wars, and the emigration occasioned
by them, and the religious persecutions in the time of Mary, Elizabeth, and
Charles, may be regarded as the most remarkable particular causes and
circumstances, which were injurious to commerce.
We must again lay down the position, that in what respects the improvement
of a country in industry and wealth, whether agricultural manufacturing, or
commercial, the same circumstances may often be viewed in the light both of
effect and cause. This position will be clearly illustrated by a very
common and plain case. The trade in a certain district improves, and of
course requires more easy and expeditious communication among different
parts of this district: the roads are consequently made better, and the
waggons, &c. are built on a better construction; these are the effects of
an improved trade: but it is plain that as by the communication being thus
rendered quicker, the commodities interchanged can be sold cheaper, a
greater quantity of them will be sold; and thus better roads, which in the
first instance proceeded from an improvement in trade, will, when made,
improve the trade still more.
We have introduced these observations as preparatory to our notice of the
establishment of the Bank of England. This undoubtedly was the effect of
our increased commercial habits, but it was as undoubtedly the cause of
those habits becoming stronger and more general: it supposed the
pre-existence of a certain degree of commercial confidence and credit, but
it increased these in a much greater ratio than they existed before: and if
England owes its very superior wealth to any other causes besides its free
government, its superior industry, and improvements in machinery, those
causes must be sought for in the very extensive diffusion of commercial
confidence and credit. The funding system, which took place about the same,
time that the Bank of England was established, may be regarded as another
powerful cause of the increase of our commerce: we do not mean to contend
that the national debt is a national blessing, but it is certain that the
necessity of paying the interest of that debt produced exertions of
industry, and improvements in manufactures, which would not otherwise, have
been called forth; while, on the other hand, the funds absorbed all the
superfluous capital, which, otherwise, as in Holland, must have had a bad
effect on commerce, either by reducing its profits very low, or by being
transferred to other countries; and the interest, which so many individuals
felt in the stability of the funds, induced them most steadily and strongly
to support government.
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