pe, it created a speculative spirit which drew
their subjects away from sober employment. For this reason
manufacturing and agriculture, for which Spain was once so
distinguished, were neglected; and the kingdom, thinned of people and
decreasing in industry, grew dependent for supplies upon the
neighboring countries.[1]

On the other hand, the treasures which destroyed the manufactures of
Spain indirectly stimulated those of England. Without manufactures,
Spain had to employ her funds in buying from other countries her
clothing, furniture, and all that was necessary for the comfort of her
citizens at home or in her colonies in America. In 1560 not above a
twentieth part of the commodities exported to America consisted of
Spanish-manufactured fabrics: all the rest came through the foreign
merchants resident in Spain.[2]

Similar differences arose from the attitude of the two kingdoms to
religion. Philip loved to regard himself as the champion of the
Catholic church, and he encouraged it to extend its authority in Spain
in the most absolute manner. Spain became the favored home of the
Inquisition, and through its terrors the church acquired complete
sovereignty over the minds of the people. Since free thought was
impossible, private enterprise gave way to mendicancy and indolence.
It was not long before one-half of the real estate of the realm fell
into the hands of the clergy and monastic orders.[3]

In England, on the other hand, Henry VIII.'s quarrel with the pope in
1534 gave Protestantism a foothold; and the suppression of the
convents and monasteries in 1537-1539 put the possibility of the
re-establishment of papal power out of question. Thus, while the body
of the people remained attached to the Catholic church under Edward
VI. and Queen Mary, the clergy had no great power, and there was
plenty of room for free speech. Under Elizabeth various causes
promoted the growth of Protestantism till it became a permanent ruling
principle. Since its spirit was one of inquiry, private enterprise,
instead of being suppressed as in Spain, spread the wings of
manufacture and commerce.[4]

Thus, collision between the two nations was unavoidable, and their
rivalry enlisted all the forces of religion and interest. Under such
influences thousands of young Englishmen crossed the channel to fight
with William of Orange against the Spaniards or with the Huguenots
against the Guises, the allies of Spain. The same motives led to the