The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-04-04
NEW hooks.
Free Trade and Holland.

The strongest plea for the abandonment
of England's free trade policy which his
vet been made will be found set forth In .
book called -The Coming Reaction BY an
author who signs himself Legislator
london, John Mlne) We believe the ques-
ton here discussed to be essentially aoad-
emic. for the reason that the non-agri-
cultural population OF Great Britain con-
ce,tute large majority Of the voters; that
they are consequently able to turn out a
Ministry when the opportunity is given
them, and that they will be certain to use
the opportunity when provoked by a rise
in the price of bread. The small registra-
ton duty recently reimposed on grain and
-four has not raised the price Of bread, but
such a result would inevitably follow an
imposition OF such duties as would impart
any material stimulus to the growth Of
breadstuffs in Great Britain, or as would
permit the concession OF any substantial
reference to colonial products. We hold.
therefore, that, whatever consequences
NAV be threatened by England's adherence
to free trade. she cannot escape them.
How serious those consequences are likely
to BE- has never been more clearly indicated
than In the book before US. II u patent.
indeed. to every one that Great Britain
has already lost the monopoly OF certain
foreign markets which she at ono time
controlled, and that with every year she
has more cause to dread the competition
Of German and American manufacturers.
Until about twelvemonth ago. however.
most British economists have assumed that
at least their country's carrying trade was
safe. How would 1t be possible, they have
asked, for any rival in the distributive
function to mako head against the ire
mendous preponderance OF the British mer
chant navy? 1t 10 just this assumption
which our author undertakes to refute.
and the refltation forms the most striking
feature Of his book. He points out that
the virtual monopoly Of the ocean-borne
carrying trade which England might until
very lately claim was long enjoyed by
Holland that Holland gained it by free
trade policy, and that. although she chung
up to the last to free-trads principles, these
did not avail to stay the loss Of her mari
time ascendancy. II is in the fate Of Holland
that our author would have England read
her own.
There is no doubt that throughout the
history Of Dutch commerce the attitude
OF the Seven United Provinces toward
foreign trade was liberal to an extent that
for the epoch was astonishing and unique,
and that il continued to characterize the
commercial policy Of the Republic long
after her control Of the distributive function
had passed away. The ports Of Holland
and Zealand were open to the shipping OF
all countries, and 1t was on this traditional
usage that the Dutch built their doctrine
OF the freedom Of the seas (rndre h6erum)
as against the English claim Of the sover-
eighty Of the seas (uare cidnsu'n). How
important part this doctrine played in the
commercial development Of the Neither
lands will be grasped in . moment when
we call to mind that the immunity OF neu-
trails goods depended entirely on the abil-
ity Of the Dutch to maintain their doctrine
Of the freedom Of the sea. There is no
doubt that. in the days Of their greatness
tho Dutch we're the carriers OF Europe. as
the English are to-day. or, at all events.
were yesterday. They owned at one time
from 5000 to 10000 vessels out Of total
European mercantile marine OF 10000 OF
them. They began by Wrestling from the
Hsnse towns the trade Of the North See
and the Baltic, and, subsequently,, they
ousted the Portuguese from the carrying
trade with the East. II Is generally as
serted that their commerce reached its
acme about 1870 Between 16A3 and 1909
De Witt estimated that the trade OF the
Dutch had increased about SO per cent
Almost the whole carrying trade Of Europe
that Of Spain and France rs well as OF
the Northern countries--was in their hands
Even az late as 1890, Sir william Petty com.
puted that, out Of a total European mer-
camille marine Of 1900 900 tons, the United
Provinces possessed 900 900 tons. In l70l
the English mercantile marine was less
than 202 600 tons, so that the Dutch mer-
chant navy was almost four times as large
asEneland's. Not until l725 was the decay
Of Dutch commerce unmistakable. Be-
fore the close Of the eighteenth century
however, it had collapsed. In the trade
with the Baltic and In the trade with the
East the English had completely distanoed
the Dutch. For example. In 1888 the ships
which passed the Sound were a. follows
English. 2,sio; Dutch, $40.
In the Portuguese trade in 1854 there were
asa English ships employed as against
seyenty-seven Dutch. The decline was
not due to any departure from the prin'
ciples OF free trade. On tho contrary, In
IT'S the relatively small duties which had
previously been levied were materially
reduced. and in I752-54 they were almost
extinguished. 1t Is, therefore. not true
q has been asserted by some OF the Dutch
historians who have tried TO account FOL
their country's commercial deoadenoe. thai
the variety Of imposts practically amounted
to a prohibitive tariff. Compared With the
commerce Of other European nations. Dutch
commerce was unhampered by tariffs
and their imposts. even before they were
cut down, were a. nothing by the side oil
the prohibitive duties levied In England
and France. Other Dutch historians have
attributed Hollands loss Of the carrying
trade to the expensive wars in which The
republic had engaged and to the resultant
financial burdens. But. - the author OF
this book points out, II We bear in nIinc
the aggregate OF Dutch capitalistic wealth
the financial burdens Of the country wert
as nothing compared with those whiot
lay upon France and England - . oonse
quenoe Of the very same wars In which thu
Dutch had been engaged.
The truth seems to be that Dutch trade
fell from external, not from internal. rea
sons. from tho organized efficient Compe