nd other
causes of a similar nature, we add the introduction of East India
commodities direct to England, and the import trade to the West Indies and
America, the emigration of the industrious Flemings during the Spanish wars
in the Low Countries, and of the French after the revocation of the edict
of Nantz, we shall have specified most of the efficient circumstances,
which, in conjunction with the progress of mankind in industry and
civilization, were beneficial to our commerce.

The causes and circumstances which were unfavourable to it during the same
period are much fewer in number; and though some of them were powerful,
yet, even these, for the most part, when they ceased to operate, gave birth
to a reaction favourable to commerce. The more general causes may be sought
for in the erroneous notions entertained respecting commerce, in
consequence of which monopolies were granted, especially in the reign of
James I.; and laws were made to regulate what would have gone on best, if
it had been left to itself. The civil wars, and the emigration occasioned
by them, and the religious persecutions in the time of Mary, Elizabeth, and
Charles, may be regarded as the most remarkable particular causes and
circumstances, which were injurious to commerce.

We must again lay down the position, that in what respects the improvement
of a country in industry and wealth, whether agricultural manufacturing, or
commercial, the same circumstances may often be viewed in the light both of
effect and cause. This position will be clearly illustrated by a very
common and plain case. The trade in a certain district improves, and of
course requires more easy and expeditious communication among different
parts of this district: the roads are consequently made better, and the
waggons, &c. are built on a better construction; these are the effects of
an improved trade: but it is plain that as by the communication being thus
rendered quicker, the commodities interchanged can be sold cheaper, a
greater quantity of them will be sold; and thus better roads, which in the
first instance proceeded from an improvement in trade, will, when made,
improve the trade still more.

We have introduced these observations as preparatory to our notice of the
establishment of the Bank of England. This undoubtedly was the effect of
our increased commercial habits, but it was as undoubtedly the cause of
those habits becoming stronger and more general: it supposed the