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THREE:A law in force since the time of Cromwell had provided that no merchandise from Asia, Africa, or America should be imported into Great Britain in any foreign ships; and not only the commander, but three-fourths of the crew, were required to be English. In addition to this restriction of our foreign commerce to English-built and English-manned ships, discriminating duties were imposed upon foreign ships from Europe, which had to pay more heavily than if the goods were imported under the British flag. The object of this system, which prevailed for one hundred and fifty years, was to maintain the ascendency of Britain as a Maritime Power. Adam Smith remarks that the Navigation Act may have proceeded from national rivalry and animosity towards Holland; but he held that its provisions were as beneficial as if they had been dictated by the most consummate wisdom. He admits, however, that they were not favourable to foreign commerce, or to the growth of that opulence that can arise from it, remarking, "As defence is of more value than opulence, the Act of Navigation is perhaps the wisest of all the commercial regulations of England." But had Adam Smith lived later on, he would have seen that the utmost freedom of commerce with foreign nations, and the most boundless opulence arising from it, are quite compatible with a perfect system of national defence; and whatever were the advantages of the restrictive system, other nations could act upon it as well as England. America did so, and thus commenced a war of tariffs equally injurious to herself and the mother country, causing the people of each to pay much more for most of the commodities they needed than they would have done if the markets of the world were open to them. The consequence was that both parties saw the folly of sending their ships across the Atlantic in ballast, and a commercial treaty was concluded in 1815, which put the shipping of both America and England upon an equal footing, and relieved them from the necessity of paying double freight. The reciprocity system was also partially adopted in our commerce with other countries. In 1822 Mr. Wallace had brought in four Bills, which made other important alterations. The 3 George IV., cap. 41, repealed certain statutes relating to foreign commerce which were passed before the Navigation Act. Another Act (cap. 42) repealed that part of the Navigation Act itself which required that goods of the growth or manufacture of Asia, Africa, and America should only be imported in British ships; and that no goods of foreign growth or manufacture should be brought from Europe, except from the place of their production, and in the ships of the country producing them. The next enactment prescribed certain specified goods to be brought to Great Britain from any port in Europe, in ships belonging to the ports of shipment. Two other Acts further extended freedom of commerce, and removed the vexatious restrictions that had hampered our colonial and coasting trade. In 1823 Prussia retaliated, as the United States had done, which led Mr. Huskisson to propose what are called the Reciprocity Acts, 4 George IV., cap. 77, and 5 George IV., cap. 1, which empowered the king, by Order in Council, to authorise the importation and exportation of goods in foreign ships from the United Kingdom, or from any other of his Majesty's dominions, on the same terms as in[240] British ships, provided it should first be proved to his Majesty and the Privy Council that the foreign country in whose favour the order was made had placed British ships in its ports on the same footing as its own ships. These enactments proved an immense advantage to the people of the nations affected by them, and satisfied all parties but the ship-owners, who cried out loudly that their interest was ruined. But their complaints were altogether unfounded, as will appear from the following figures. Under the restrictive system, from 1804 to 1823, the tonnage of British shipping had increased only ten per cent. Under the Reciprocity Acts and the Free Trade system, from 1823 to 1845, the increase rose to forty-five per cent. This result fully bore out the calculations and anticipations of Mr. Huskisson, in his answer to the arguments of the Protectionists.

THREE:The Directory began its campaigns of 1796 with much spirit and ability. The plans which had been repeatedly pointed out by Dumouriez, Pichegru, Moreau, and more recently by Buonaparte, of attacking the Austrians in Germany and Italy simultaneously, and then, on the conquest of Italy, combining their armies and marching them direct on the Austrian capital, were now adopted. Pichegru, who had lost the favour of the Directory, was superseded by Moreau, and that general and Jourdain were sent to the Rhine. Jourdain took the command of sixty-three thousand foot and eleven thousand horse, at Coblenz, and immediately invested the famous fortress of Ehrenbreitstein, on the opposite bank of the river. Moreau was sent to lead the army at Strasburg, consisting of seventy-two thousand foot and nearly seven thousand horse. Jourdain found himself soon menaced by the Archduke Charles, the Emperor's brother, the ablest and most alert general that the Austrians possessed at that period. He advanced rapidly on Jourdain's position with seventy thousand foot and twenty thousand horse, defeated a division of Jourdain's army under General Lefebvre, and compelled Jourdain himself to raise the siege. But the archduke, out of too much anxiety for Wurmser, who was opposed to[452] Moreau with much inferior forces, ascended the Rhine to support him, and Jourdain immediately availed himself of his absence to advance and seize Frankfort on the Main, Würzburg, and other towns. Moreau advanced to drive back Wurmser and the archduke, till a union with Jourdain would enable them to fall conjointly on the Austrians. But the archduke perceived that, in consequence of the orders of the Directory, Moreau was spreading his army too wide, and he retreated so as to enable Wurmser to join him. This retrograde movement was mistaken, both by friends and enemies, for a sign of weakness; and whilst Moreau advanced with increased confidence, many of the raw contingents of the archduke's army deserted, and several of the petty States of Germany sued to the Directory for peace. But the moment for the action of the archduke had now arrived. Whilst Moreau was extending his lines into Bavaria, and had seized Ulm and Donauw?rth, and was preparing to occupy the defiles of the Tyrol, the Archduke Charles made a rapid detour, and, on the 24th of August, fell on Jourdain, and completely defeated him. He then followed him to Würzburg, and on the 3rd of September routed him again. With a velocity extraordinary in an Austrian, the archduke pushed on after Jourdain's flying battalions, and on the 16th of September gave him a third beating at Aschaffenburg, and drove his army over the Rhine. Moreau��left in a critical position, so far from the frontiers of France, and hopeless of any aid from Jourdain, who had lost twenty thousand men and nearly all his artillery and baggage��made haste to retrace his steps. Thus both of the French armies were beaten back to the left bank of the Rhine, and Germany was saved.