DOI Page / Citation link:
https://doi.org/10.11588/diglit.22140#0132
116 INDUSTRIAL AND COMMERCIAL HISTORY.
established on this principle in 1750, the associated merchants
were constrained, by Act of Parliament, to maintain the forts and
garrisons on the western coast. All these companies are, how-
ever, obsolete now. In the first place, the duty of maintaining
osficials, and of building and garrisoning forts, was transferred to
the Exchequer; and in the next, the privilege which the companies-
possessed of granting licenses of trade was done away with, and
as far as the area of their operations and monopolies extended, was
thrown open to all British traders.
While I think it quite true that at the time in which Smith
wrote, the system of regulated companies was indefensible, and
that this great man's criticism was justified, I am still of opinion
that the system was inevitable at its inception. At the time when
these companies were founded, when it was conceived expedient
to extend, if possible, British commerce, the country was practi-
cally destitute of a naval force. The ships which did battle with
the Spanish Armada were, in the main, vessels owned by private
persons, hastily armed with such artillery as could be supplied.
The Crown had a scanty and an inelastic revenue. Even in the
munitions of war, it had to rely on private subscriptions. I have
collected and printed from private accounts which I have read, at
the date of the Armada, what were the subscriptions and pur-
chases of certain private persons and corporations, how one person
bought powder, and another laid in a stock of arms. It was
therefore premature to argue that the State should defend com-
merce, when the State was almost too poor to defend the island
itself from attack. Long after the age of the Armada, the marine
force of England was small and of little importance, as is shown
by the fact referred to above, the appearance of Barbary rovers in
the Channel. The real founder of the modern British navy was
Cromwell. Had his life been prolonged—he was only fifty-eight
years old when he died—I do not doubt that the exploits of a
generation or more later, would have characterized his admini-
stration. The restored king, to be sure, did his best to ruin the
restored navy, as he did everything which he could stint in order
to obtain the means for his orgies. It is the one respectable trait
in the character of his brother, that he did his best to save the
relics of the navy.
established on this principle in 1750, the associated merchants
were constrained, by Act of Parliament, to maintain the forts and
garrisons on the western coast. All these companies are, how-
ever, obsolete now. In the first place, the duty of maintaining
osficials, and of building and garrisoning forts, was transferred to
the Exchequer; and in the next, the privilege which the companies-
possessed of granting licenses of trade was done away with, and
as far as the area of their operations and monopolies extended, was
thrown open to all British traders.
While I think it quite true that at the time in which Smith
wrote, the system of regulated companies was indefensible, and
that this great man's criticism was justified, I am still of opinion
that the system was inevitable at its inception. At the time when
these companies were founded, when it was conceived expedient
to extend, if possible, British commerce, the country was practi-
cally destitute of a naval force. The ships which did battle with
the Spanish Armada were, in the main, vessels owned by private
persons, hastily armed with such artillery as could be supplied.
The Crown had a scanty and an inelastic revenue. Even in the
munitions of war, it had to rely on private subscriptions. I have
collected and printed from private accounts which I have read, at
the date of the Armada, what were the subscriptions and pur-
chases of certain private persons and corporations, how one person
bought powder, and another laid in a stock of arms. It was
therefore premature to argue that the State should defend com-
merce, when the State was almost too poor to defend the island
itself from attack. Long after the age of the Armada, the marine
force of England was small and of little importance, as is shown
by the fact referred to above, the appearance of Barbary rovers in
the Channel. The real founder of the modern British navy was
Cromwell. Had his life been prolonged—he was only fifty-eight
years old when he died—I do not doubt that the exploits of a
generation or more later, would have characterized his admini-
stration. The restored king, to be sure, did his best to ruin the
restored navy, as he did everything which he could stint in order
to obtain the means for his orgies. It is the one respectable trait
in the character of his brother, that he did his best to save the
relics of the navy.