their country in foreign wars. This is now the policy of Britain, and English statesmen would confer more benefit upon mankind by labouring to fashion the military establishments of Europe after this model than by attempting to reproduce in Canada the continental organization so productive of foreign wars and national bankruptcy. The Volunteer system, as a substitute for the present military organization in Europe, except for police purposes, if seriously proposed, would be pronounced a dream of the theorist ; but if it existed at this time none would deny that it would be the first great step towards preventing international wars, and would be a vast saving to national exchequers, and, by releasing the capital and labour now absorbed in creating instruments of destruction, give a wonderful impetus to those industrial arts which contribute most to the wealth and material prosperity of nations.

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CHAPTER VII.

COMMERCIAL POLICY.

Navigation Acts of 1651 and 1763: Origin and Effects ofChatham, Grenville, and Mansfield on Rights of Parliament— Modification of Navigation Laws, 1824-43-46-Theory and Practice of Free-trade in England-India-Protection in the Colonies-Colonial Office-Vacillation-Violation of its own Dispatches-Free-trade not the Policy of the EmpireDuties on Corn-Revenue how raised: in India: in Colonies-Financial Association and Mr. Gladstone-His Confession-Revenue and Protection in Colonies-Manufactures in Colonies-Another Industry-Its Importance-Example of old Colonies-Southern Confederation-England, Agriculture, Manufactures and Commerce-Australia. Pp. 61-88. In the middle of the seventeenth century the Dutch Republic had already monopolized the immense commerce which the daring enterprise of Spain and Portugal had opened to the maritime nations of Europe both in the Eastern and Western hemispheres. English merchants freighted the vessels of Holland with their own wares because of their lower rates, and even imported through them the products of English settlements, while their own vessels lay rotting in port. To secure the now important and

rapidly increasing commerce, and to keep the colonies dependent on the parent state, Parliament enacted, in 1651—

That no merchandise, either of Asia, Africa, or America, including also the English plantations there, should be imported into England in any but Englishbuilt ships, and belonging to England or English plantation subjects, navigated by English commanders, and three-fourths of the sailors to be English.'

The Commonwealth thus founded that restrictive commercial policy, the source of so many disputes between the parent State and her dependencies, and which, revived in 1763, was one of the chief causes of the American revolution of 1775. From their foundation the trade of the older colonies had been perfectly free, and continued much the same after the passing of this Act, for New England constantly evaded it. In 1763 Grenville obtained a new Act. Against the remonstrances of the colonists and the warning of many English statesmen, it was enforced with the utmost rigour on all the American coast. The Act gave authority to employ the ships, seamen, and officers of the Navy as Custom-house officers and informers. From the mouth of the St. Lawrence to Cape Florida every commander of an armed vessel had authority to stop and examine and, in case of suspicion, to seize any merchant ship approaching

the colonies. Massachusetts, through her house of representatives, remonstrated against this, the Sugar and Stamp Acts, demanding their repeal, and protesting against the imposition of any taxes upon American colonies, on the ground that not being represented in the British Parliament they could not be taxed.

Dr. Franklin, who represented the American States in London, was examined before the House of Commons, in 1766, on the effect which these measures had produced in the minds of the colonists. They were most loyal before 1763. Now their temper was greatly altered, owing to restraints on their trade, the prohibition to make paper money, and the tax by stamps. They had previously regarded Parliament as the great bulwark of their liberties; but their respect for Parliament was now greatly lessened.' The whole question of the right of Parliament to legislate for and tax the colonies was then fully discussed in the Lords and Commons. In both that · right was affirmed; in the former with only four dissentients, and in the latter with not more than ten. Lord Chatham sustained the view taken by the colonists. America,' he said, 'being neither really nor virtually represented at Westminster, cannot be held legally, nor constitutionally, nor reasonably, to obedience to any money bill of this kingdom. The Americans are the sons, not the bastards, of England.

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As subjects they are entitled to the common rights of representation. Taxation is no part of the governing power. Parliament may legislate for the colonies, but taxes are a voluntary gift and grant of the Commons alone. The idea of the virtual representation of America in this House is the most contemptible that ever entered the head of man.'

'That this kingdom,' said Grenville, is the sovereign and supreme legislative power over America cannot be denied; and taxation is a part of that sovereign power. Great Britain protects America ; America is bound to yield obedience. When they want the protection of this kingdom they are always ready to ask it. That protection has always been afforded them in the most full and ample manner. The nation has run itself into immense debt to give it them; and now that they are called upon to contribute a small share towards an expense arising from themselves, they renounce your authority and insult your officers.'

'I am charged,' replied Chatham, with giving birth to sedition in America. The gentleman tells us America is obstinate; America is in open rebellion. I rejoice that America has resisted. The profits to Great Britain from the trade of the colonies is two millions a year. This is the fund that carried you triumphantly through the last war. I