granted by the Government, but this export does not mean much profit to the nation. The profit goes only to a few manufacturers, and the bounty is paid out of the pockets of the people at large. Those who benefit most by it, next to the refiners, are the foreign customers, who get cheap sugar at the expense of the unfortunate German taxpayer. Of the imports those which have shown the most marked rise are coal and raw cotton, both signs of increasing manufactures. A good deal of machinery is also imported for the same purpose. We should notice finally how much German commerce owes to the energy and intelligence of the people and their rulers, who have perceived, long before England, the value of commercial and technical education. But it should also be remembered that much of the profit of German trade comes from badly-paid labourers who work excessively long hours. Happily there are signs that this state of things will not always continue. The increase of German national wealth and strength has led to an eager desire for colonial possessions, and though Germany has not any large foreign territories yet, it is very evident that she means to acquire some before very long. 184. The War Indemnity and the Hansa Towns.We cannot finally leave the history of German commerce without referring specially to two very important events of the last twenty years the Franco-German War and the extinction of the freedom of the Hansa towns. The war was undoubtedly a great political benefit to Germany as a nation, for it gave a unity which the incoherent collection of petty states and kingdoms had sorely lacked. But it gave Germany also an indemnity—of £200,000,000— which proved ultimately to have had by no means the beneficial results that were expected of it. For, immediately after the war and the payment of the indemnity, a rapid expansion of trade and industry took place, speculation ran very high, new companies for railways and manufacturing undertakings were eagerly formed, with the result that in 1873 a financial crisis occurred, from the effects of which the country suffered for several years. Both manufacturers and agriculturists became alarmed, and foolishly urged the Government to introduce new and higher tariffs, and to adopt a more protective system. This was directly contrary to the principles of the Zollverein before 1870, which had tended more and more in the direction of free trade. Thus the indemnity became an influence in the unwholesome direction of protection. By no one were the ill effects of the protective system so much resented as by the Hansa towns of Hamburg and Bremen, who have been compelled to join a Zollverein, and become protective instead of free ports. Their accession to the new empire (§ 67) was a greater benefit to Germany than to themselves, for the revenue derived from their trade is now very considerable. But although no longer free, their trade, from their favourable position in north Europe, must always be exceedingly important, and it has grown considerably in the last fifty years. In 1858 the value of imports to Hamburg was £30,000,000; in 1867 it had risen to £54,000,000; and in 1886, just two years before its incorporation into the empire, it was £102,347,071. MODERN EUROPE. CHAPTER VIII HOLLAND, RUSSIA, AND THE OTHER STATES 185. Decay and Separation of the Netherlands.—If we turn now to the lesser European states we see that curious changes have taken place. The once powerful commercial nation of the Netherlands suffered an almost complete relapse, and has experienced almost as complete a revival. Their troubles began in the War of the Austrian Succession (1748), when they helped the Queen of Hungary, and were therefore attacked by France. Soon afterwards they fell under the control of Prussia. They were then conquered by France in the revolutionary war, and in 1795 the United Provinces became a republic dependent on their conqueror. At the peace of 1813 they were made into a kingdom of the Netherlands under William, Prince of Orange. But meanwhile these constant changes and wars had utterly ruined these once wealthy commercial countries. Their foreign commerce sank down into mere coastingtrade, their colonies were taken by the English in their wars against France and her allies, the East Indian Company failed, the Bank of Amsterdam liquidated, capitalists and merchants fled from the country, and complete commercial collapse ensued. Then, in 1809, a severe inundation of the sea took place, and things became worse. Even the new kingdom of 1813 was of little avail in strengthening the provinces; and, after lasting only fifteen years, the northern and southern Netherlands were divided (1830) into the kingdoms of Holland and Belgium respectively. 186. Revival of Holland. Its Colonies.-But after this separation a brighter epoch of prosperity supervened. Holland threw itself more eagerly into manufactures, agriculture, and shipping. Manufactures of sail-cloth, fine linen, cotton, and leather were again revived. The production of brandy, spirits, and tobacco became once more of importance. Land was again reclaimed from the sea, and agriculture improved. Numerous canals had always existed, and now, in addition, railways were built. Favourable commercial treaties were made with other nations; and once again the Dutch distinguished themselves by their old characteristics of prudence and industry. The colonial possessions of Holland now also received special attention. The "Nederlandsche Handel Maatschappij" or Dutch Trading Company, had existed since 1824; and being now supported by the Government, did great service in developing and regulating the produce of their old East India colonies. Amsterdam and Rotterdam became the chief emporia of colonial produce, and now the Dutch colonies are no less than sixty-four times the size of the mother country.1 They export coffee, rice, sugar, tobacco, indigo, tea, sugar, oils, cotton, dye-woods, together with spices and drugs of great value; and to-day Holland may be said to have won back again a foremost place amid the commercial nations of the world. 187. Development of Belgium.-Belgium, also, since its formation into a separate kingdom, has distinguished itself in industry. From its small amount of coast-line it does not rival Holland as a foreign commercial and colonial power, but has developed rather into a manufacturing country. Shortly after it became a kingdom the Belgian Bank was founded (1835), and this was followed by the growth of a number of joint-stock companies for setting up factories, railways, and mining works. These all succeeded very well; machine, glass, cotton, linen, and woollen manufactories were established; and their success was due largely to the splendid resources of the country in coal and iron, now first properly developed. The Belgians also 1 See Appendix B. had the good sense to build railways lavishly from the beginning; and these, together with the excellent natural waterways of the land, greatly helped the development of industry. Foreign trade then began to revive side by side with home industry. In 1843 Belgium bought up from Holland the right of using the mouth of the Scheldt for its ships, and in 1863 was freed from the tolls formerly levied there by the Dutch. Since 1850 the land traffic also with Germany, France, and Austria has largely increased owing to the development of the Belgian railways. It is now so much a manufacturing country that, like England, it has to depend largely on other nations for its food supply. 188. Switzerland.-Another small country which has developed its manufactures very greatly in the present century is Switzerland. As far back as the sixteenth century Basle, Zürich, and St. Gallen possessed manufactures of cloth, linen, cotton, and silk, but the first impetus was really received from the French Huguenots who were driven out of France by Louis XIV. in 1685. Some introduced into Basle silk-weaving and ribbon-making, and others introduced cotton-printing into Zürich and St. Gallen. Swiss industry was much disturbed by the French revolutionary wars, and in 1798 the French made the cantons into the Helvetic Republic, which at the peace was altered into the Swiss Confederation, and again in 1848 there was a new Federal Constitution. But as soon as the Continental blockade of Napoleon was relaxed, Swiss industry rose into marked prosperity, largely owing to the introduction of free trade principles, and later (since 1850) to the abolition of all internal taxes and duties on transit, and the promotion of useful railways. The chief Swiss manufactures are now those of cotton, silk, and watches, and these make up about 60 per cent of the total exports. 189. Russia. Growth of Trade.—Turning now to those countries which have become commercially important more from their natural resources than from the development of manufactures upon the lines of the industrial revolution, we must first notice Russia. Russia is an empire |