A history of commerce

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Preface

The considerations which guided me in giving this book its present form are set forth in the Introduction. I wish here briefly to express my thanks to those who have assisted me in the labor of its preparation, to my wife and to various colleagues, especially Professors Callender, Keller and Lang. I may add to this list the name of one who may not be aware that he has contributed to the book. Professor W. G. Sumner. The memory of his teachings has been vividly in my mind as I have written some of the following pages; and however much I may have departed from the substance of his lectures I feel to the spirit that animated them an obligation which has grown constantly greater with time, and which it is a pleasure to acknowledge here.

Clive Day

92784

• INTRODUCTION

Of the four qualities which Matthew Arnold thought to be of the greatest importance in an introductory manual, clearness, brevity, proportion, and sobriety, the quality which I have tried with the most conscious attention to realize in this book has been proportion. The pages of text are limited in number, that the book may be available for use in schools as well as in colleges, and I have endeavored always to be mindful that I could put nothing on a page without crowding something else out. Whatever claim the book has to originality must be derived chiefly from the course which I have followed in the selection and arrangement of jbopics, and I may be pardoned if I seek to indicate here, as briefly as possible, the considerations which have governed my course.

The first part, on ancient commerce, is inserted in deference to what I understand to be the desires and practices of teachers, but will be omitted, I hope, by every teacher who finds it necessary to omit any part of the book. The facts of the commerce of ancient countries have little bearing on the commerce of those same countries to-day, as any one will perceive who considers, for instance, the commerce of modem Greece and modem Persia, and who attempts to apply to those countries the facts that he has learned of their distant past. Even the commercial institutions of the ancient world died out, with the important exception of the Roman Law, and modem commercial institutions are derived not from them but from medieval origins. Finally, a decisive objection to the extended study of ancient commerce by beginners arises from the fact that our knowledge of conditions in the ancient world is still

ix

X INTRODUCTION

meager and unsatisfactory. When the best scholars disagree on many important points the student had better leave the field to them, and devote his attention to later periods of which abundant records exist.

In the medieval period the national state, as we know it now, had not come inta existence, and it would be unprofitable to trace the course of commerce within the bounds of modem political geography. Just because of the backward political development, however, the student has an umnatched opportunity to study the growth of private commercial institutions, and to observe the reciprocal influence of economic and political factors in commercial development. Most of the chapters on medieval commerce, therefore, are general and not local in character. I have thought to satisfy the demand for a description of commerce from the geographical standpoint in this period by a somewhat detailed account of the trade carried on in the Mediterranean and on the northern seas of Europe.

As the commercial organization develops in the modem period, after 1500, it becomes impracticable in a book of this size to follow out in their complex details such subjects as mercantile association, commercial-law, currency, credit, and banking. A few introductory chapters suggest rather than describe the development of the organization, while most of the chapters describe the growth of commerce in the concrete in the different states of Europe. In this period, if ever, the treatment of commerce as a distinctly national interest is justified.

With the incoming of the nineteenth century conditions change again. Technical improvements, transforming the different branches of production and transportation, spread through the civilized world, cause a revolution in the wares of commerce and an immense increase in its volume. The importance of these general changes required a more extended treatment than I had anticipated in planning the book, but the seven chapters devoted to them will not, I hope, be found to occupy a disproportionate space. It seemed impossible to

INTRODUCTION xi

show clearly the causes of recent commercial development without describing in some detail topics which strictly lie within the realm of industrial history. Later chapters revert again to the description of commercial development within the different states. I sympathize with those who would treat the history of commerce from the institutional standpoint, and who may perhaps complain that too much space is given to the narrative of the commercial progress of the different political groups. I am inclined to think, however, that a more abstract treatment of the subject would make it, while perhax>s more interesting to the student of economics, less intelligible and less valuable to the future man of business. The apportionment of space to the different countries is regulated, roughly, by their respective commercial importance. I have thought that the commerce of many outlying countries. of the world might better be considered in a commercial geography than in an introductory history.

The history of the foreign commerce of the United States has not yet been written. The subject has generally been considered in its relations to political history, and the treatment of the subject in manuals of commercial history has been warped by this fact. Too much space has been given to commercial events of political significance; not enough space has been devoted to the physical and techncial factors which have really made American commerce what it is to-day. The colonial period has received an attention disproportionate to its commercial importance. I have abstained from any attempt to describe in narrative form the commercial history of the colonies, and have used the space which could be given to this part of the subject for a description and analysis of commercial conditions in the form which they had reached at the close of the colonial period. The first two chapters on the United States are designed to serve both as a summary of colonial history and as an introduction to the study of commercial development in the national period. Later chapters aim to include the essentials, if they omit the incidents, of our xii INTRODUCTION

commercial progress. In this, as in some other parts of the book, I have been forced to include some statistical material, but by abbreviations which make no sensible difference in the accuracy of the figures I have sought to make the statistics more comprehensible to untrained students, and have indicated methods of studying them which may prove useful.

The usual apparatus for the aid of teachers and students is included in the book. In the bibliographies I have sought to meet the demand which is now general and which ought to be imperative in the case of historical manuals, of a brief description or appreciation of the books that are recommended for further study.

I have sought to avoid the encumbering of the text with footnotes by placing in a section apart the names of the authorities fi:om which the facts of the book have been drawn. The study of the history of commerce has not yet, it seems to me, been put on such a settled basis as to justify an author in concealing from his reader the sources of his information. That the list of authorities may better serve the purpose of a supplement to the bibliographies I have included occasionally references to books which I have not used but have reason to suppose are valuable.

It seemed best, after careful consideration of the pictures available, to omit pictorial illustrations, and to confine the illustrative material to maps. On many subjects in the history of commerce good maps could be borrowed or adapted from other publications. Some of the gaps remaining in cartographic illustration I have endeavored to fill by maps constructed especially for this book. I have had to abandon with regret' the plan of making still more maps, after an experience of the difficultieis involved.

For the shortcomings of the book I can make no satisfactory apology, but can only hope that merits will be found to counterbalance the faults. This I may say, however, that if the plan of the book is good, I could fairly expect to find the field better prepared by previous workers for the execution r

INTRODUCTION xiii

of the plan. Economists and historians are not contributing due support to the study of economic history. The academic training of the times seems to lead economists to forget that there has been a past from which they have much to learn, and to the study of which they can contribute many helpful suggestions; it seems to lead historians to forget that there is a present, whose needs and problems should direct their study of the past.

CHAPTER I General Considerations SSCnON PAOB

1 . The purposes of commerce 1

2. Obstacles to the development of commerce. (1) Personal. ... 2

3. (2) Physical obstacles 2

4. (3) Risk of loss at the hand of public enemies or robbers 3

5. (4) Political restrictions 4

Bibliography (general) 6

CHAPTER II Oriental Period

6. Prehistoric commerce. Ancient Egypt 9

7. Rise of Egyptian commerce; characteristic wares 9

8. Development of Egyptian commerce in a later period 10

9. Rise of commeroe in the Mesopotamian valley 10

10. Development of conunerce under the Assyrian and Persian em-

pires 11

11. Relative insignificance of the conmierce of the ancient empires.

The Jews. The Phoenicians 12

12. Commerce of the Phcenicians. Beginnings of sea-trade 12

13. Development of sea-trade; wares of Phoenician commerce. ... 13

14. Establishment of colonies by the Phoenicians. Carthage.... 14

CHAPTER in Greek Period

15. Greece, physical diaracter and products 17

16. Rise of Greek commerce. Colonies 17

XV xvi CONTENTS

17. Rapid development in the fifth century, b.c 18

18. Ride of Athens to leadership. Exports 19

19. Athenian imports and policy 20

20. Ck)ntrast of the ancient and modem world; effect of Macedonian

and Roman conquests 20

21. E^ffect of Alexander's conquests on commerce; decline of Greece 21

22. Rise of great cities 22

23. Alexandria, Seleukia, Antioch 22

24. Rhodes 23

CHAPTER IV Roman Period

25. The Roman state; Rome not a commercial city 26

26. Development of commerce in the Roman East 26

27. Backward condition of the peoples of the West 27

28. Limited influence of Rome on the commercial development of

the West 28

29. Decline of Roman power and of commerce in the West 29

CHAPTER V Conditions about the Year 1000

30. Political conditions affecting commerce; the modem system of

government 31

31. Impossibility of applying modem methods of government in the

period after the fall of Rome 32

32. The feudal system; rise and character 32

33. Difficulties and dangers of transportation 33

34. Restrictions imposed to insure security. The market 33

35. Society organized to exist with the minimum of conmierce; the

medieval village 34

36. Self-sufficiency of the villages; low stage of the arts of production 35

37. Evils resulting from the lack of commerce 35

38. Exceptional instances of higher organization of industry 36

39. Ck)mmon wares of commerce in the period of the manor 37

40. The slave trade in Europe 37 r

CONTENTS xvii

RECXION PAGE

41. Distant commeroe confined to rare luxuries 38

42. Character of the merchant in the early Middle Ages 38

Chapter VI

43. Significance of towns in the economic organization; decline of

the Roman towns 41

44. Rise of towns after 1000; conditions determining their location 42

45. Development of manufacturing in the towns 42

46. Effect of the towns in improving the conditions in the country 43

47. The " foreign" trade of this period was that between towns, even

in the same country 44

48. Small size of the medieval towns 45

49. Rural characteristics of the towns 45

50. Gener^ description of a town 45

51. Improvement in conditions in the later Middle Ages 46

52. Town organization. The merchant gilds 47

53. Position of the merchant gilds; their privilege of monopoly 48

54. Development of manufactures in the towns; the conmion handi-

crafts 48

55. The craft gilds 49

56. Town policy; imports, exports, protection 60

57. The market and its regulations 51

58. Attempts to regulate prices. The assize of bread 51

CHAPTER VII Land Trade

59. Roads neglected or left to benevolent associations 54

60. Difficulties of transportation by road 54

61. Lack of bridges 65

62. Advantages of river transportation 65

63. Danger of violence on the road 66

64. Complicity of feudal lords in robbery 66

65. ToUs imposed by feudal authorities 67

66. Variety and number of toUs 57

67. Abuses of the toUs 69

68. Development of the toll system 69 xviii CONTENTS

8BCTI0N PA.OE

69. Constraint of trade by tolls. Exemptions 60

70. Burden of the tolls on trade 61

CHAPTER VIII Fairs

71. Fairs; the reason for their existence 63

72. Comparison of fairs with markets and modem exchanges 63

73. Privileges of merchants trading at a fair 64

74. Great fairs in Europe. The fairs of Champagne 65

75. Trade at the Champagne fairs; other continental fairs 67

76. English fairs 67

Chapter IX

77. Rise of sea commerce. The Scandinavians 70

78. Development of shipping in northern Europe 71

79. Development of shipping in the Mediterranean 71

80. Backwardness of the art of navigation 72

81. Introduction of the compass, and of navigators' directories 73

82. Limits of early trading voyages 73

83. Medieval seaports; contrast with modem 74

84. Decline of medieval seaports in later times 74

85. Development of maritime commerce; persistence of medieval

ideas 75

86. Piracy 75

87. Organized piracy; privateering 76

CHAPTER X The Levant Trade

88. Wares of the Levant trade. Slaves 79

89. Spices 79

90. Dmgs; perfumes; sugar 80

91. Precious stones; preponderance in general of luxuries over

articles of general utility 80

CONTENTS xix

sEcnoN PAas

92. Dyestuffs; alum 81

93. Other raw materials of industiy '. 82

94. Textile imports; exports from Europe 82

95. Revival of Oriental trade about 1000, under the leadership of

Italians 83

96. Routes between Asia and Europe 84

97. Character of the crusades; number of crusaders 86

98. Commercial aspect of the crusades 87

99. Effect of the crusades on knowledge of the East and of eastern

wares 88

CHAPTER XI CoiiHBRCE OF Southern Europe

100. Position of Venice; early history 90

101. Expansion of Venetian empire during the crusades 90

102. Extent of Venetian commerce 92

103. Development of the institutions of commerce in Venice 93

104. Venetian commercial policy 93

105. Overland trade with Germany 94

106. Strict control over German merchants in Venice 95

107. Importance of the trade between Venice and Germany 96

108. Commerce by sea with northwestern Europe 96

109. Regulation of this commerce; the Flanders galleys 97

110. Development of other cities in Italy; freedom and vigor of

their policy 98

1 12. Inland cities; Florence 99

113. Other Mediterranean cities; Marseilles, Barcdona 99

CHAPTER XII Commerce of Northern Europe

114. Development of commerce in South and North 102

115. Conditions and wares of the Baltic trade 102

116. Exports from the Baltic, mainly raw materials 103

117. Exports from the West to the Baltic countries 103

118w Contrast of the history of the commercial cities in Italy and in

Germany 104

XX CONTENTS

119. Rise of the Hanseatic Le^tgue 104

120. Extent and organization of the League 105

121. Control of the commerce of northern Eurof>e by the League . . . 105

122. Methods of trading; factories 107

123. Flanders and Bruges 108

124. Decline of Bruges in the fifteenth century; rise of Antwerp 109

125. Ck)nditions of commerce in England 109

126. English trade passive until the close of the Middle Ages 1 10

Questions and topics Ill

CHAPTER XIII Development of the Medieval Organization of Commerce

127. Types of medieval traders; pedler, shop-keeper 113

128. Merchants 113

129. Development of commercial association in the Middle Ages. . . 115

130. Advantages of association 116

131. Forms of association; partnership 116

132. Spread of the practice of association from Italy 117

133. Position of the Jews in medieval commerce 117

134. Character of currency in the Middle Ages 118

135. Difficulty in making payments in distant places 119

136. Introduction of the bill of exchange 120

137. Development of baQking in Italy 120

CHAPTER XIV Commerce and Politics in the Later Middle Ages

138. Development of the modem political system in the later Middle

Ages 123

139. Variety of development in different countries ' 123

140. Effect on commerce of a strong and of a weak central govern-

ment 124

141. Rise of a national commercial policy 125

142. Medieval ideas on commerce 125

143. Characteristic features of commercial policy 126

CONTENTS xxi

CHAPTER XV Exploration and Discotbrt 8vct10n page

144. The revolution about 1500; topics to be considered 128

145. Growth of geographical knowledge; Asia 128

146. Need of a sea route to Asia; means of navigation 129

147. The lead in maritime exploration taken by Prince Henry of

Portugal. 129

148. Exploration of the West Coast of Africa; difficulties, real and

imagined 130

149. Discovery of the Cape of Good Hope (1487) and of the sea

route to India (1498) 131

150. Belief that Asia could be reached by sailing westward 132

151. Discovery of America (1492); partition of the world outside

Europe between Spain and Portugal 133

152. Effect of the discoveries on the field of commerce; growth of a

world commerce 134

153. Effect of the discoveries on the wares of commerce 135

154. Importance of the precious metals in the American trade; effect

on prices in Europe 135

155. Improvement in the means and methods of navigation 136

CHAPTER XVI Devblopment of the Economic Organization

156. Agriculture 139

157. Development of manufacturing organization in England; per-

sistence of gild restrictions elsewhere 140

158. Evils of the gUds 140

159. Development of the commercial organization. Rise of whole-

salers 141

160. Developjnent of the commission trade; services of '^ factors". . 142

161. Improvement in means of communication; posts 142

162. Need of closer association among merchants; risks of com-

merce 143

163. Association required by government; reasons 144

164. Association in the form of the regulated company 145

XXll CONTENTS

165. Objections to the form of the regulated company 146

166. The joint stock company, and its advantages 146

167. Good and bad sides of joint stock companies 147

CHAPTER XVII Crbdit and Crises

168. Growth of credit business and of banking 150

169. Description of the rise of discount and deposit banking in Eng-

land 151

170. Rise of '* money-power" as shown in the history of the Fugger

family 151

171. Description of the Fugger business 152

172. Weakness of the Fugger and other banking firms 153

173. Description of business in Antwerp in the sixteenth century. . 154

174. Rise of the Antwerp Exchange; its significance 154

175. Development of business on the exchanges; produce and money 155

176. Advantages offered to industry and commerce by the exchanges 156

177. Growth of speculation; early abuses 156

178. Dangers of the new system of business; promotion of unprofit-

able enterprises 157

179. Description of the " Bubble Period " in England 158

180. The crisis of the Company of the Indies in France 159

CHAPTER XVin

The Modern State and the Mercantile System

181. Growth of modem states under the influence of commerce. . . . 161

182. Decline of feudal power with the rise of mercenary armies ... 161

183. Growth in power of the central government as shown in the

development of taxation 162

184. Persistence of medieval conditions in the modem period 163

185. Attempts at reform, leading in many cases to over-regulation. 163

186. Attention distracted from internal reforms by foreign interests 164

187. Wars occasioned by religious and dynastic interests 165

188. Wars occasioned by commercial interests; military aspect of

commerce in this period 165

189. Wars arising from the conflict of colonial interests in the New

World 166

CONTENTS xxiii

190. Political importance of commerce in this period, connected

with the desire of governments for ready money 166

191. The mercantile system, aiming to increase the stock of ready

money in the country 167

192. Features of the mercantile system; restriction of imports 168

193. Encouragement of exports, manufactures, and shipping 169

194. Failure of the mercantile system to affect the distribution of

the precious metals 169

195. Important effects of the mercantile system in other ways .... 170

196. Colonial policy 171

CHAPTER XIX Spain and Portugal

197. Extent and power of the Spanish monarchy 174

198. Rapid development of Spanish industry and commerce 174

199. Economic decline in the following period 176

200. Causes of <tecline; faulty political organization 177

201. The burden of taxes 178

202. Customs duties, on the frontier and inside the country 178

203. Examples of bad policy; the Mesta 179

204. Failure to develop colonial trade 179

205. Spanish colonial policy. Taxes 180

206. Restriction of trade to appointed fleets 181

207. Restriction of the market by the discouragement of emigration 181

208. Supply of the market by smugglers 182

209. Wares of the colonial trade 182

210. Reform of the colonial system about 1750 183

211. Portugal; promise of commercial greatness in the sixteenth

century 184

212. Failure of Portugal to maintain her position 185

213. Weakness in resources; bad effects of Spanish rule, 1580-1640. 185

214. Failure of Portugal to recover her position by commerce with

Brazil 185

215. Dependence of Portugal on England 186 xxiv CONTENTS

Chapter XX

216. Establishment of the United Netherlands 190

217. Rise of Dutch commerce 190

218. Dutch commercial policy 191

219. The Dutch West India Company 191

220. The East India Company 192

221. Leading position of the Dutch in European commerce 193

222. Growth of business activity 194

223. Commercial decline of the Netherlands 194

224. Reasons for decline 195

225. Character of the Dutch East India Company 196

226. Decline of the Company after 1700 196

CHAPTER XXI England: Survey of CoMMERaAL Development

227. Survey of England's position and resources about 1500 199

228. England's chief advantage, her advanced organization 199

229. Benefits of the English political constitution 200

230. Development of the English into an active commercial people

about the fifteenth century 200

231. Agencies helping to extend English commerce 201

232. Enlargement of the commercial area 201

233. Relative standing of the English ports 202

234. Partition of the field of commerce among companies 202

235. Characteristics of the companies 204

236. Rapid groWth of commerce in the eighteenth century 205

237. Relative share of different continents in English commerce. . 205

CHAPTER XXII England: Exports

228. Survey of topics to be considered in studying the development of English commerce 209

239. (1) Analysis of exports 209

240. (2) Development of production, explaining the growth of the

export trade. Agriculture 210

CONTENTS XXV

SBCnON PAGE

241. Internal commerce and means of transportation 210

242. Manufactures; advance from the gild to the domestic system

and its significance 211

243. The new employers aided by the immigration of foreign laboi^

ers 212

244. Dependence of technical progress on the new class of employers. 212

245. The domestic system preparatory to the great revolution in

manufactures in the eighteenth century 213

246. Progress of the cotton manufacture 214

247. Slower development of the woolen manufacture 215

248. Development of the iron industry with the use of pit-coal 215

249. (3) The chief markets for England's exports 216

CHAPTER XXIII England: Imports; Shipping; Polict 250. (4) Analysis of English imports in the modem period 219

251. (5) Sources of the imports 219

252. Peculiar character of the English colonies 220

253. Resources and industries of the colonies in America 220

254. Specialties of different colonies 221

255. Commerce with Africa 221

256. (6) Shipping and the carrying trade 222

257. Struggle of English seamen and government with the Dutch . . 222

258. The Navigation Acts; victory of English over Dutch shipping. 223

259. (7) Government policy. Commerce and war 224

260. Customs policy 224

261. Burden of the tariff 225

262. Colonial policy 226

263. Restrictions on colonial enterprise, regarded as justifiable at

the time 226

CHAPTER XXIV France: Survey of CoifMERCiAL Development

264. Natural advantages of France in the modem period 229

265. The chief reason why France did not rise to leadership 229

266. Progress checked by the Hundred Years' War with England,

and by religious conflicts 230

267. Effect of the absolute monarchy on French development 231 xxvi CONTENTS

BECnON PAGE

268. Failure to reform conditions inherited from the feudal period 231

269. Bloom of French commerce in the fifteenth century as shown in

the business of Jacques Cceur 232

270. The bulk of French commerce still with nearby countries . . 233

271. Decline during the period of the religious wars 233

272. Recovery after 1600 233

273. Foimding of commercial companies*, and colonial expansion . . 234

274. Reasons for the failure of these enterprises 235

275. Mistaken policy of Louis XIV 235

276. Decline of the French colonial empire in the eighteenth cen-

tury 236

277. Growth, notwithstanding, in the commeroe of France 236

278. Analysis of French commerce in the eighteenth century 238

279. Value of the French sugar colonies 239

CHAPTER XXV France: Policy

280. History of the French customs tariff 242

281 . Persistence of customs frontiers inside France 242

282. Persistence of local toll barriers 243

283. Manufactures; the gild system maintaind in spite of its bad

effects 244

284. Separation of trades 244

285. Influence of the gilds in preventing technical progress 245

286. Narrow restrictions imposed on manufactures by the govern-

ment ' 246

287. Burden of these restrictions on manufactures 247

288. Special privileges granted to certain manufactures; resulting

abuses 247

CHAPTER XXVI The German States •

289. Political survey of Germany about 1600 250

290. Development of the economic organization 251

291. Condition of the Baltic trade 252

292. Decline of the Hanseatic Ltogue 252

293. Decline of the commerce of South Germany 253

CONTENTS xxvii

294. The chief cause of decline of German commerce in this period

was political 254

295. The natural outlets of commerce stopped by hostile states. . 255

296. The damage done by internal dissensions and by the Thirty

Years' War 255

297. Restriction of manufactures by the gilds 256

298. The eighteenth century marked by general depression, with

some signs of improvement 257

299. The rise of Prussia important mainly from the political stand-

point 257

300. Reforms in Prussia favoring economic development 258

901. Contrast of Prussia and Austria 259

302. Political factors hindering development of the lands subject to

Austria 259

303. Slow progress of industry and commerce 260

301. Attempts of the government to stimulate development 260

305. Austrian commerce still backward in 1800 261

CHAPTER XXVII Italy and Minor States

306. Political condition of Italy in the modem period 263

307. Position of Venice at the beginning of the period 263

308. Blows at Venetian trade both by sea and land routes to India. 264

309. Relative decline of Venetian commerce 264

310. Decline of commerce and industry in Tuscany 265

311. Decline in other parts of Italy 265

312. Conditions in the Scandinavian countries 266

313. Rise of Russia to a position among the European states about

1700 267

314. Character of Russian commerce in the eighteenth century 267 xxviii CONTENTS

PART IV RECENT COMMERCE CHAPTER XXVin

Ck>MMERCE AND COAL

SECTION TAQE

315. Statistical survey of development since 1800 270

316. Great growth of foreign commerce 270

317. Increase in the relative importance of conunerce 271

318. The world now passing through a commercial revolution 272

319. Share of modem countries in the commerce of the world 272

320. Possible explanations of recent commercial development 273

321. Prime importance of technical factors, especially the use of coal 274

322. Power in coal 274

323. Dependence of modem industry on coal 275

324. Importance of coal, estimated in steam horse-power 275

325. Technical history of the steam-engine 276

326. Importance of steam greatest in the most recent period 276

CHAPTER XXIX Machinery and Manufactures

327. Development of agriculture 280

328. Progress less in agriculture than in other branches of produc-

tion 280

329. Function of machinery 281

330. Advantages of machines 281

331. Revolution in old industries effected by machinery 282

332. Introduction of new industries 282

333. Importance of iron in the age of machinery 283

334. Scarcity of iron before the nineteenth century 283

335. Development of machine tools for working iron 284

336. Steel, character and utility 285

337. Recent improvements in the manufacture of steel; the Besse-

mer process 285

338. The open-hearth (Siemens-Martin) process 286

339. Development of the modem chemical industry 286

340. Influences determining the local distribution of manufactures . 287

CONTENTS xxix

CHAPTER XXX Roads and Railroads 341. (Commercial importance of the subjects of the chapter 290

342. Statistical survey of development 290

343. Improvement in the condition of roads 290

344. Importance of roads in the present transportation system .... 291

345. Advantage of transportation by water; canals 292

346. Development of canals, 1750-1850 293

347. Relative decline in importance of canals 293

348. Origin of the steam railroad 295

349. Early period of the raihxMwi 296

350. Improvements in locomotives 296

351. Importance of steel in railroad construction 297

352. Development of the railroad system after 1850 298

353. Importance of railroads at present 299

CHAPTER XXXI Means of Navigation and Communication

354. Transportation by sailing vessels and steamers 302

355. Development of sailing vessels 302

356. Relative decline of sailing vessels, notwithstanding improve-

ments 303

357. Steamers used at first chiefly for internal navigation 304

358. Beginning of steam navigation of the Atlantic 305

359. Improvement of the means of steam navigation 305

360. Gains resulting from increase in size 306

361. Resulting decline in frei^t rates 307

362. Modem ship canals 307

363. The Suez Canal and its services to commerce 308

364. The postal service about 1800 309

365. Postal reforms and their results 310