INTRODUCTION CONTENTS. PART I. CHAPTER 1763-1792. FROM THE END OF THE SEVEN YEARS' WAR TO THE FRENCH REVOLUTION. I. THE FOUNDATION OF BRITISH PRODUCTIVE INDUSTRY II. DEVELOPMENT OF NATIONAL RESOURCES III. PROGRESS OF FOREIGN TRADE . IV. THE AMERICAN REVOLUTION AND WAR V. MR. PITT'S PEACE ADMINISTRATION. PAGE . [15] PART II. 1793-1820. FROM THE FRENCH REVOLUTION TO THE RESUMPTION OF CASH PAYMENTS. 1. THE FRENCH REVOLUTION AND ITS EFFECTS ON BANKING AND 3 16 26 37 51 II. STATE OF FINANCE DURING THE WAR OF THE FRENCH REVolu- TION. 82 III. CURRENCY AND BANKING IN FRANCE 94 IV. THE ORDERS IN COUNCIL AND THE BERLIN AND MILAN DECREES GRAPHIC TABLES. TABLE A.-IMPORTS AND EXPORTS, 1760-1820 B.-HIGHEST AND LOWEST PRICES OF 3 PER CENT. CONSOLS, PAGES 26-27 G. OPERATION OF THE BANK CHARTER ACT, 1844-1878 I. POPULATION AND WEALTH.-INCOME PER HEAD IN THE 552-553 A. PROGRESS OF POPULATION AND WEALTH 558 B. BRITISH EXPORTS-DECLARED VALUE OF BRITISH AND IRISH PRO- 560 C.-COURSE OF EXCHANGE-LONDON ON PARIS, 1825-1878 562 D.-TREATIES OF COMMERCE AND NAVIGATION BETWEEN GREAT BRITAIN AND FOREIGN COUNTRIES IN FORCE ON JULY 31, 1879. 563 INTRODUCTION. WHILST the Italians were vigorously pursuing their trade in India and Europe, and Spain was renowned for her manufactures; whilst the Hanse merchants were extending their factories, and Portuguese navigators were bent upon maritime discoveries; whilst the Dutch were struggling for independence, and France was planting the seeds of her industries; England was only known as possessing a few articles of commerce of great value. Her wools and her metals were eagerly sought by foreign traders, but she had no ships of her own to carry them abroad. She had many raw materials, but she produced no manufactures for exportation. Nor was her policy respecting foreign trade the most wise. The chief concern of the legislature in those days seemed to be to prevent foreign nations doing with English produce what, after all, the English could not do themselves. Again and again the export of wool was prohibited, or was hindered by prohibitory duties. But the prohibition was ill suited to the practice of appointing the Staple to be held, now at Bruges, now at Antwerp, and now at Calais, to which merchants of the staple were privileged; nor could it be maintained whilst licenses were constantly given for a consideration to foreign merchants to buy as much wool as they found necessary for their manufactures. The people regarded the introduction of foreigners with the utmost jealousy. They resented their competition, they grudged their profits and their advantages. The guilds would not admit them as members, and it was hard for the poor strangers to establish a footing in England, even although Magna Charta had long before declared that all merchants shall have safety in coming to |