The industry of Prussia had suffered more than that of anyother country from the devastations of the Thirty Years' War.Hermost important industry， the manufacture of cloth in the Margravateof Brandenburg， was almost entirely annihilated.The majority ofcloth workers had migrated to Saxony， while English imports at thetime held every competition in check.To the advantage of Prussianow came the revocation of the Edict of Nantes and the persecutionof the Protestants in the Palatinate and in Salzburg.The greatElector saw at a glance what Elizabeth before him had so clearlyunderstood.In consequence of the measures devised by him a greatnumber of the fugitives directed their steps to Prussia， fertilisedthe agricultural industry of the land， established a large numberof manufactures， and cultivated science and art.All his successorsfollowed in his footsteps， none with more zeal than the great King-- greater by his policy in times of peace than by his successes inwar.Space is wanting to treat at length of the countless measureswhereby Frederick II attracted to his dominions large numbers offoreign agriculturists， brought tracts of waste land intocultivation， and established the cultivation of meadows， of cattlefodder， vegetables， potatoes， and tobacco， improved sheep farming，cattle breeding， horse breeding， the use of mineral manures， &c.，by which means he created capital and credit for the benefit of theagricultural classes.Still more than by these direct measures hepromoted indirectly the interests of agriculture by means of thosebranches of manufacture which， in consequence of the customs tariffand the improved means of transport which he established， as wellas the establishment of a bank， made greater advances in Prussiathan in any other German state， notwithstanding that that country'sgeographical position， and its division into several provincesseparated from one another， were much less favourable for thesuccess of such measures， and that the disadvantages of a customscordon， namely， the damaging effects of a contraband trade， must befelt more acutely there than in great states whose territories arecompact and well protected by boundaries of seas， rivers， andchains of mountains.
At the same time we are nowise anxious， under cover of thiseulogy， to defend the faults of the system， such as， for example，the restrictions laid upon the exportation of raw material.Still，that in despite of these faults the national industry wasconsiderably advanced by it， no enlightened and impartial historianwould venture to dispute.
To every unprejudiced mind， unclouded by false theories， itmust be clear that Prussia gained her title to rank amongst theEuropean powers not so much by her conquests as by her wise policyin promoting the interests of agriculture， industry， and trade， andby her progress in literature and science； and all this was thework of one great genius alone.
And yet the Crown was not yet supported by the energy of freeinstitutions， but simply by an administrative system， well orderedand conscientious， but unquestionably trammelled by the deadmechanical routine of a hierarchical bureaucracy.
Meanwhile all the rest of Germany had for centuries been underthe influence of free trade -- that is to say， the whole world wasfree to export manufactured products into Germany， while no oneconsented to admit German manufactured goods into other countries.
This rule had its exceptions， but only a few.It cannot， however，be asserted that the predictions and the promises of the schoolabout the great benefits of free trade have been verified by theexperience of this country， for everywhere the movement was ratherretrograde than progressive.Cities like Augsburg， N黵nberg，Mayence， Cologne， &c.， numbered no more than a third or a fourthpart of their former population， and wars were often wished formerely for the sake of getting rid of a valueless surplus ofproduce.
The wars came in the train of the French Revolution， and withthem English subsidies together with increased English competition.
Hence a new downward tendency in manufactures coupled with anincrease in agricultural prosperity， which， however， was onlyapparent and transitory.
Next followed Napoleon's Continental Blockade， an event whichmarked an era in the history of both German and French industry，notwithstanding that Mons.J.B.Say， Adam Smith's most famouspupil， denounced it as a calamity.Whatever theorists， and notablythe English， may urge against it， this much is clearly made out --and all who are conversant with German industry must attest it， forthere is abundant evidence of the fact in all statistical writingsof that day -- that， as a result of this blockade， Germanmanufactures of all and every kind for the first time began to makean important advance；(1*) that then only did the improved breedingof sheep (which had been commenced some time before) become generaland successful； that then only was activity displayed in improvingthe means of transport.It is true， on the other hand， that Germanylost the greater part of her former export trade， especially inlinens.Yet the gain was considerably greater than the loss，particularly for the Prussian and Austrian manufacturingestablishments， which had previously gained a start over all othermanufactories in the German states.
