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economical development has only been attained in those nations
whose form of government has been such as to secure to them a high
degree of freedom and power； of steadiness of laws and of policy；
and efficient institutions。
Antonio Serra sees the nature of things as it actually exists；
and not through the spectacles of previous systems； or of some one
principle which he is determined to advocate and carry out。 He
draws a comparison between the condition of the various States of
Italy； and perceives that the greatest degree of wealth is to be
found where there is extensive commerce； that extensive commerce
exists where there is a well…developed manufacturing power； but
that the latter is to be found where there is municipal freedom。
The opinions of beccaria are pervaded by the false doctrines of
the physiocratic school。 That author indeed either discovered； or
derived from Aristotle； the principle of the division of labour；
either before； or contemporaneously with； Adam Smith； he； however；
carries it farther than Adam Smith； inasmuch as he not only applies
it to the division of the work in a single manufactory； but shows
that the public welfare is promoted by the division of occupation
among the members of the community。 At the same time he does not
hesitate； with the physiocrats； to assert that manufactures are
non…productive。
The views of the great philosophical jurist； Filangieri； are
about the narrowest of all。 Imbued with false cosmopolitanism； he
considers that England； by her protective policy； has merely given
a premium to contraband trade； and weakened her own commerce。
Verri； as a practical statesman； could not err so widely as
that。 He admits the necessity of protection to native industry
against foreign competition； but did not or could not see that such
a policy is conditional on the greatness and unity of the
nationality。
NOTES：
1。 During a journey in Germany which the author undertook while
this work was in the press； he learned for the first time that
Doctors Von Ranke and Gervinus have criticised Macchiavelli's
Prince from the same point of view as himself。
2。 Everything that Macchiavelli has written； whether before or
after the publication of the Prince； indicates that he was
revolving in his mind plans of this kind。 How otherwise can it be
explained； why he； a civilian； a man of letters； an ambassador and
State official； who had never borne arms； should have occupied
himself so much in studying the art of war； and that he should have
been able to write a work upon it which excited the wonder of the
most distinguished soldiers of his time？
3。 Frederick the Great in his Anti…Macchiavel treats of the Prince
as simply a scientific treatise on the rights and duties of princes
generally。 Here it is remarkable that he； while contradicting
Macchiavelli chapter by chapter； never mentions the last or
twenty…sixth chapter； which bears the heading； 'A Summons to free
Italy from the Foreigners；' and instead of it inserts a chapter
which is not contained in Macchiavelli's work with the heading； 'On
the different kinds of Negotiations； and On the just Reasons for a
Declaration of War。'
4。 First published in the work； Pensieri intorno allo scopo di
Nicolo Macchiavelli nel libro 'Il Principe。' Milano； 1810。
Chapter 29
The Industrial System （Falsely Termed by the School 'The Mercantile
System'）
At the period when great nationalities arose； owing to the
union of entire peoples brought about by hereditary monarchy and by
the centralisation of public power； commerce and navigation； and
hence wealth and naval power； existed for the most part （as we have
before shown） in republics of cities； or in leagues of such
republics。 The more； however； that the institutions of these great
nationalities became developed； the more evident became the
necessity of establishing on their own territories these main
sources of power and of wealth。
Under the conviction that they could only take root and
flourish under municipal liberty； the royal power favoured
municipal freedom and the establishment of guilds； both which it
regarded as counterpoises against the feudal aristocracy； who were
continually striving for independence； and always hostile to
national unity。 But this expedient appeared insufficient； for one
reason； because the total of the advantages which individuals
enjoyed in the free cities and republics was much greater than the
total of those advantages which the monarchical governments were
able to offer； or chose to offer； in their own municipal cities； in
the second place； because it is very difficult； indeed impossible；
for a country which has always been principally engaged in
agriculture； successfully to displace in free competition those
countries which for centuries have acquired supremacy in
manufactures； commerce； and navigation； lastly； because in the
great monarchies the feudal institutions acted as hindrances to the
development of their internal agriculture； and consequently to the
growth of their internal manufactures。 Hence； the nature of things
led the great monarchies to adopt such political measures as tended
to restrict the importation of foreign manufactured goods； and
foreign commerce and navigation； and to favour the progress of
their own manufactures； and their own commerce and navigation。
Instead of raising revenue as they had previously done by
duties on the raw materials which they exported； they were
henceforth principally levied on the imported manufactured goods。
The benefits offered by the latter policy stimulated the merchants；
seamen； and manufacturers of more highly civilised cities and
countries to immigrate with their capital into the great
monarchies； and stimulated the spirit of enterprise of the subjects
of the latter。 The growth of the national industry was followed by
the growth of the national freedom。 The feudal aristocracy found it
necessary in their own interest to make concessions to the
industrial and commercial population； as well as to those engaged
in agriculture； hence resulted progress in agriculture as well as
in native industry and native commerce； which had a reciprocally
favourable influence on those two other factors of national wealth。
We have shown how England； in consequence of this system； and
favoured by the Reformation； made forward progress from century to
century in the development of her productive power； freedom； and
might。 We have stated how in France