The struggle for liberty begot in Holland an heroic spirit atsea， to which nothing appeared too difficult or too adventurous，while on the contrary the spirit of fanaticism enfeebled the verynerves of Spain.Holland enriched herself principally byprivateering against Spain， especially by the capture of theSpanish treasure fleets.By that means she carried on an enormouscontraband trade with the Peninsula and with Belgium.After theunion of Portugal with Spain， Holland became possessed of the mostimportant Portuguese colonies in the East indies， and acquired apart of Brazil.Up to the first half of the seventeenth century theDutch surpassed the English in respect of manufactures and ofcolonial possessions， of commerce and of navigation， as greatly asin our times the English have surpassed the French in theserespects.But with the English Revolution a mighty change developeditself.The spirit of freedom had become only a citizen spirit inHolland.As in all mere mercantile aristocracies， all went on wellfor a time； so long as the preservation of life and limbs and ofproperty， and mere material advantages， were the objects clearly inview， they showed themselves capable of great deeds.Butstatesmanship of a more profound character was beyond their ken.
They did not perceive that the supremacy which they had won， couldonly be maintained if it were based on a great nationality andsupported by a mighty national spirit.On the other hand， thosestates which had developed their nationality on a large scale bymeans of monarchy， but which were yet behindhand in respect ofcommerce and industry， became animated by a sentiment of shame thatso small a country as Holland should act the part of master overthem in manufactures and commerce， in fisheries， and naval power.
In England this sentiment was accompanied by all the energy of thenew-born Republic.The Navigation Laws were the challenge glovewhich the rising supremacy of England cast into the face of thereigning supremacy of Holland.And when the conflict came， itbecame evident that the English nationality was of far largercalibre than that of the Dutch.The result could not remaindoubtful.
The example of England was followed by France.Colbert hadestimated that the entire marine transport trade employed about20，000 vessels， of which 16，000 were owned by the Dutch -- a numberaltogether out of proportion for so small a nation.In consequenceof the succession of the Bourbons to the Spanish throne， France wasenabled to extend her trade over the Peninsula (to the greatdisadvantage of the Dutch)， and equally so in the Levant.
Simultaneously the protection by France of her native manufactures，navigation， and fisheries， made immense inroads on the industry andcommerce of Holland.
England had gained from Holland the greater part of the tradeof the latter with the northern European states， her contrabandtrade with Spain and the Spanish colonies， and the greater part ofher trade with the East and West Indies， and of her fisheries.Butthe most serious blow was inflicted on her by the Methuen Treaty of1703.From that the commerce of Holland with Portugal， thePortuguese colonies， and the East indies， received a deadly wound.
When Holland thus commenced to lose so large a portion of herforeign trade， the same result took place which had previously beenexperienced by the Hanseatic cities and by Venice ： the materialand mental capital which could now find no employment in Holland，was diverted by emigration or in the shape of loans to thosecountries which had acquired the supremacy from Holland which shehad previously possessed.
If Holland in union with Belgium， with the Rhenish districts，and with North Germany， had constituted one national territory， itwould have been difficult for England and France to have weakenedher naval power， her foreign commerce， and her internal industry bywars and by commercial policy， as they succeeded in doing.A nationsuch as that would have been， could have placed in competition withthe commercial systems of other nations a commercial system of herown.And if owing to the development of the manufactures of thoseother nations her industry suffered some injury， her own internalresources， aided by founding colonies abroad， would have abundantlymade good that loss.Holland suffered decline because she， a merestrip of sea coast， inhabited by a small population of Germanfishermen， sailors， merchants， and dairy farmers， endeavoured toconstitute herself a national power， while she considered and actedtowards the inland territory at her back (of which she properlyformed a part) as a foreign land.
The example of Holland， like that of Belgium， of the Hanseaticcities， and of the italian republics， teaches us that mere privateindustry does not suffice to maintain the commerce， industry， andwealth of entire states and nations， if the public circumstancesunder which it is carried on are unfavourable to it； and further，that the greater part of the productive powers of individuals arederived from the political constitution of the government and fromthe power of the nation.The agricultural industry of Belgiumbecame flourishing again under Austrian rule.When united to Franceher manufacturing industry rose again to its ancient immenseextent.Holland by herself was never in a position to establish andmaintain an independent commercial system of her own in competitionwith great nations.But when by means of her union with Belgiumafter the general peace (in 1815) her internal resources，population， and national territory were increased to such an extentthat she could rank herself among the great nationalities， andbecame possessed in herself of a great mass and variety ofproductive powers， we see the protective system established also inthe Netherlands， and under its influence agriculture， manufactures，and commerce make a remarkable advance.This union has now beenagain dissolved (owing to causes which lie outside the scope andpurpose of our present work)， and thus the protective system inHolland has been deprived of the basis on which it rested， while inBelgium it is still maintained.
Holland is now maintained by her colonies and by her transporttrade with Germany.But the next great naval war may easily depriveher of the former； and the more the German Zollverein attains to aclear perception of its interests， and to the exercise of itspowers， the more clearly will it recognize the necessity ofincluding Holland within the Zollverein.
NOTES：
1.The construction of good roads， and still more of railways，which has taken place in quite recent times， has materiallymodified this axiom.
2.It has been recently stated that the excellence of the Dutchherrings is attributable not only to the superior methods abovenamed， but also to the casks in which they are 'b鯿kelled' andexported being constructed of oak.