pre-existence of a certain degree of commercial confidence and credit, but
it increased these in a much greater ratio than they existed before: and if
England owes its very superior wealth to any other causes besides its free
government, its superior industry, and improvements in machinery, those
causes must be sought for in the very extensive diffusion of commercial
confidence and credit. The funding system, which took place about the same,
time that the Bank of England was established, may be regarded as another
powerful cause of the increase of our commerce: we do not mean to contend
that the national debt is a national blessing, but it is certain that the
necessity of paying the interest of that debt produced exertions of
industry, and improvements in manufactures, which would not otherwise, have
been called forth; while, on the other hand, the funds absorbed all the
superfluous capital, which, otherwise, as in Holland, must have had a bad
effect on commerce, either by reducing its profits very low, or by being
transferred to other countries; and the interest, which so many individuals
felt in the stability of the funds, induced them most steadily and strongly
to support government.

The commerce of Scotland and Ireland during the sixteenth and seventeenth
centuries, supplies us with very few materials. In the year 1544, Scotland
must have had no inconsiderable foreign trade, as in the war which took
place at this time between that country and England, twenty-eight of the
principal ships of Scotland, laden with all kinds of rich merchandize, were
captured by the English, on their voyage from France, Flanders, Denmark,
&c.; and in the same year, when the English took Leith, they found more
riches in it than they had reason to expect. While Scotland and England
were at peace, however, the former was principally supplied through the
latter with the commodities which Antwerp, during the sixteenth century,
dispersed over all Europe. The exports of Scotland to Antwerp, &c. were
indeed direct, and consisted principally, as we have already remarked from
Guicciardini, of peltry, leather, wool, indifferent cloth, and pearls.

The earliest account which occurs of the Scotch carrying on commerce to any
port out of Europe, is in the year 1589, when three or four Scotch ships
were found at the Azores by the earl of Cumberland. In the year 1598, it
appears, from a letter of king James to Queen Elizabeth, that some Scotch
merchants