THE MERCANTILE SYSTEM

HOW THE NEWLY FOUNDED NATIONAL OR DYNASTIC STATES OF EUROPE TRIED TO MAKE THEMSELVES RICH AND WHAT WAS MEANT BY THE MERCANTILE SYSTEM

WE have seen how, during the sixteenth and the seventeenth centuries, the states of our modern world began to take shape. Their origins were different in almost every case. Some had been the result of the deliberate effort of a single king. Others had happened by chance. Still others had been the result of favourable¹ natural geographic² boundaries. But once they had been founded, they had all of them tried to strengthen their internal administration and to exert the greatest possible influence upon foreign affairs. All this of course had cost a great deal of money. The mediaeval state with its lack of centralised power did not depend upon a rich treasury³. The king got his revenues from the crown domains⁴ and his civil service paid for itself. The modern centralised state was a more complicated affair. The old knights⁵ disappeared and hired government officials or bureaucrats⁶ took their place. Army, navy, and internal administration demanded millions. The question then became where was this money to be found?

Gold and silver had been a rare commodity in the middle ages. The average man, as I have told you, never saw a gold piece as long as he lived. Only the inhabitants of the large cities were familiar with silver coin. The discovery of America and the exploitation of the Peruvian mines changed all this. The centre of trade was transferred from the Mediterranean⁷ to the Atlantic seaboard. The old "commercial cities" of Italy lost their financial importance. New "commercial nations" took their place and gold and silver were no longer a curiosity.

Through Spain and Portugal and Holland and England, precious metals began to find their way to Europe The sixteenth century had its own writers on the subject of political economy and they evolved a theory of national wealth which seemed to them entirely⁸ sound and of the greatest possible benefit to their respective countries. They reasoned that both gold and silver were actual wealth. Therefore they believed that the country with the largest supply of actual cash in the vaults⁹ of its treasury and its banks was at the same time the richest country. And since money meant armies, it followed that the richest country was also the most powerful and could rule the rest of the world.

We call this system the "mercantile system," and it was accepted with the same unquestioning faith with which the early Christians¹⁰ believed in Miracles and many of the present-day American business men believe in the Tariff¹¹. In practice, the Mercantile system worked out as follows: To get the largest surplus of precious metals a country must have a favourable balance of export trade. If you can export more to your neighbour than he exports to your own country, he will owe you money and will be obliged to send you some of his gold. Hence you gain and he loses. As a result of this creed¹², the economic program of almost every seventeenth century state was as follows:

1. Try to get possession of as many precious metals as you can.

2. Encourage foreign trade in preference to domestic trade.

3. Encourage those industries which change raw materials into exportable finished products.

4. Encourage a large population, for you will need workmen for your factories and an agricultural community does not raise enough workmen.

5. Let the State watch this process and interfere¹³ whenever it is necessary to do so.

Instead of regarding International Trade as something akin¹⁴ to a force of nature which would always obey certain natural laws regardless of man's interference, the people of the sixteenth and seventeenth centuries tried to regulate their commerce by the help of official decrees and royal laws and financial help on the part of the government.

In the sixteenth century Charles V adopted this Mercantile System (which was then something entirely new) and introduced it into his many possessions. Elizabeth of England flattered him by her imitation. The Bourbons, especially King Louis XIV, were fanatical adherents¹⁵ of this doctrine¹⁶ and Colbert, his great minister of finance, became the prophet of Mercantilism to whom all Europe looked for guidance.

The entire foreign policy of Cromwell was a practical application of the Mercantile System. It was invariably directed against the rich rival Republic of Holland. For the Dutch shippers, as the common-carriers of the merchandise of Europe, had certain leanings towards free-trade and therefore had to be destroyed at all cost.

It will be easily understood how such a system must affect the colonies. A colony under the Mercantile System became merely a reservoir of gold and silver and spices, which was to be tapped for the benefit of the home country. The Asiatic, American and African supply of precious metals and the raw materials of these tropical countries became a monopoly of the state which happened to own that particular colony. No outsider was ever allowed within the precincts and no native was permitted to trade with a merchant whose ship flew a foreign flag.

Undoubtedly¹⁷ the Mercantile System encouraged the development of young industries in certain countries where there never had been any manufacturing before. It built roads and dug canals and made for better means of transportation. It demanded greater skill among the workmen and gave the merchant a better social position, while it weakened the power of the landed aristocracy.

On the other hand, it caused very great misery¹⁸. It made the natives in the colonies the victims of a most shameless exploitation. It exposed the citizens of the home country to an even more terrible fate. It helped in a great measure to turn every land into an armed camp and divided the world into little bits of territory, each working for its own direct benefit, while striving at all times to destroy the power of its neighbours and get hold of their treasures. It laid so much stress upon the importance of owning wealth that "being rich" came to be regarded as the sole virtue¹⁹ of the average citizen. Economic systems come and go like the fashions in surgery and in the clothes of women, and during the nineteenth century the Mercantile System was discarded in favor of a system of free and open competition. At least, so I have been told.

1 favourable   

adj.赞成的，称赞的，有利的，良好的，顺利的

参考例句：

• The company will lend you money on very favourable terms.这家公司将以非常优惠的条件借钱给你。
• We found that most people are favourable to the idea.我们发现大多数人同意这个意见。

2 geographic   

adj.地理学的，地理的

参考例句：

• The city's success owes much to its geographic position. 这座城市的成功很大程度上归功于它的地理位置。 来自《简明英汉词典》
• Environmental problems pay no heed to these geographic lines. 环境问题并不理会这些地理界限。 来自英汉非文学 - 环境法 - 环境法

3 treasury   

n.宝库；国库，金库；文库

参考例句：

• The Treasury was opposed in principle to the proposals.财政部原则上反对这些提案。
• This book is a treasury of useful information.这本书是有价值的信息宝库。

4 domains   

n.范围( domain的名词复数 )；领域；版图；地产

参考例句：

• The theory of thermodynamics links the macroscopic and submicroscopic domains. 热力学把宏观世界同亚微观世界联系起来。 来自辞典例句
• All three flow domains are indicated by shading. 所有三个流动区域都是用阴影部分表示的。 来自辞典例句

5 knights   

骑士； （中古时代的）武士( knight的名词复数 )； 骑士； 爵士； （国际象棋中）马

参考例句：

• stories of knights and fair maidens 关于骑士和美女的故事
• He wove a fascinating tale of knights in shining armour. 他编了一个穿着明亮盔甲的骑士的迷人故事。

6 bureaucrats   

n.官僚( bureaucrat的名词复数 )；官僚主义；官僚主义者；官僚语言

参考例句：

• That is the fate of the bureaucrats, not the inspiration of statesmen. 那是官僚主义者的命运，而不是政治家的灵感。 来自辞典例句
• Big business and dozens of anonymous bureaucrats have as much power as Japan's top elected leaders. 大企业和许多不知名的官僚同日本选举出来的最高层领导者们的权力一样大。 来自辞典例句

7 Mediterranean   

adj.地中海的；地中海沿岸的

参考例句：

• The houses are Mediterranean in character.这些房子都属地中海风格。
• Gibraltar is the key to the Mediterranean.直布罗陀是地中海的要冲。

8 entirely   

ad.全部地，完整地；完全地，彻底地

参考例句：

• The fire was entirely caused by their neglect of duty. 那场火灾完全是由于他们失职而引起的。
• His life was entirely given up to the educational work. 他的一生统统献给了教育工作。

9 vaults   

n.拱顶( vault的名词复数 )；地下室；撑物跳高；墓穴

参考例句：

• It was deposited in the vaults of a bank. 它存在一家银行的保险库里。 来自《简明英汉词典》
• They think of viruses that infect an organization from the outside.They envision hackers breaking into their information vaults. 他们考虑来自外部的感染公司的病毒，他们设想黑客侵入到信息宝库中。 来自《简明英汉词典》

10 Christians   

n.基督教徒( Christian的名词复数 )

参考例句：

• Christians of all denominations attended the conference. 基督教所有教派的人都出席了这次会议。
• His novel about Jesus caused a furore among Christians. 他关于耶稣的小说激起了基督教徒的公愤。

11 tariff   

n.关税，税率；(旅馆、饭店等)价目表，收费表

参考例句：

• There is a very high tariff on jewelry.宝石类的关税率很高。
• The government is going to lower the tariff on importing cars.政府打算降低进口汽车的关税。

12 creed   

n.信条；信念，纲领

参考例句：

• They offended against every article of his creed.他们触犯了他的每一条戒律。
• Our creed has always been that business is business.我们的信条一直是公私分明。

13 interfere   

v.(in)干涉，干预；(with)妨碍，打扰

参考例句：

• If we interfere, it may do more harm than good.如果我们干预的话，可能弊多利少。
• When others interfere in the affair,it always makes troubles. 别人一卷入这一事件，棘手的事情就来了。

14 akin   

adj.同族的，类似的

参考例句：

• She painted flowers and birds pictures akin to those of earlier feminine painters.她画一些同早期女画家类似的花鸟画。
• Listening to his life story is akin to reading a good adventure novel.听他的人生故事犹如阅读一本精彩的冒险小说。

15 adherents   

n.支持者，拥护者( adherent的名词复数 )；党羽；徒子徒孙

参考例句：

• He is a leader with many adherents. 他是个有众多追随者的领袖。 来自《简明英汉词典》
• The proposal is gaining more and more adherents. 该建议得到越来越多的支持者。 来自《简明英汉词典》

16 doctrine   

n.教义；主义；学说

参考例句：

• He was impelled to proclaim his doctrine.他不得不宣扬他的教义。
• The council met to consider changes to doctrine.宗教议会开会考虑更改教义。

17 undoubtedly   

adv.确实地，无疑地

参考例句：

• It is undoubtedly she who has said that.这话明明是她说的。
• He is undoubtedly the pride of China.毫无疑问他是中国的骄傲。

18 misery   

n.痛苦，苦恼，苦难；悲惨的境遇，贫苦

参考例句：

• Business depression usually causes misery among the working class.商业不景气常使工薪阶层受苦。
• He has rescued me from the mire of misery.他把我从苦海里救了出来。

19 virtue   

n.德行，美德；贞操；优点；功效，效力

参考例句：

• He was considered to be a paragon of virtue.他被认为是品德尽善尽美的典范。
• You need to decorate your mind with virtue.你应该用德行美化心灵。