The one great maritime rival of England, Holland, had thus engrossed, not only the carrying trade of Europe at large, most of which, from port to port, was done by her seamen, but that of England as well. Even of the English coasting trade much was done by Dutch ships. Under this competition, the English merchant marine was dwindling, and had become so inadequate that, when the exclusion of foreigners was enforced by the Act, the cry at once arose in the land that the English shipping was not sufficient for the work thus thrust upon it. "Although our own people have not shipping enough to import from all parts what they want, they are needlessly debarred from receiving new supplies of merchandise from other nations, who alone can, and until now did, import it."¹⁶ The effect of this decadence of shipping upon the resources of men for the navy is apparent.

The existence of strained relations between England and Holland facilitated the adoption of the first Navigation Act, which, as things were, struck the Dutch only; they being the one great carrying community in Europe. Although both the letter and the purpose of the new law included in its prohibitions all foreign countries, the commercial interests of other states were too slight, and their commercial spirit too dull, to take note of the future effect upon themselves; whether absolutely, or in relation to the maritime power of Great Britain, the cornerstone of which was then laid. This first Act directed that no merchandise from Asia, Africa, or America, including therein English "plantations," as the colonies were then styled,¹⁷ should be imported into England in other than English-built ships, belonging to English subjects, and of which "the master and mariners are also, for the most part of them, of the people of this commonwealth." This at once reserved a large part of the external trade to English ships; and also, by the regulation of the latter, constituted them a nursery for English seamen. To the general tenor of this clause, confining importation wholly to English vessels, an exception was made for Europe only; importations from any part of which was permitted to "such foreign ships and vessels as do truly and properly belong to the people of that country or place of which the said goods are the growth, production, or manufacture."¹⁸ Foreign merchantmen might therefore import into England the products of their own country; but both they and English vessels must ship such cargoes in the country of origin, not at any intermediate port. The purpose of these provisos, especially of the second, was to deprive Holland of the profit of the middleman, or the entrepôt, which she had enjoyed hitherto by importing to herself from various regions, warehousing the goods, and then re-exporting. The expense of these processes, pocketed by Dutch handlers, and the exaction of any dues levied by the Dutch Treasury, reappeared in increased cost to foreign consumers. This appreciation of the value of the entrepôt underlay much of the subsequent colonial regulation of England, and actuated the famous Orders in Council of 1807, which were a principal factor in causing the War of 1812. A second effect of these restrictions, which in later times was deemed even more important than the pecuniary gain, was to compel English ships to go long voyages, to the home countries of the cargoes they sought, instead of getting them near by in Dutch depots. This gave a corresponding development to the carrying trade—the navigation—of the Commonwealth; securing greater employment for ships and seamen, increasing both their numbers and experience, and contributing thereby to the resources of the navy in men. "A considerable carrying trade would be lost to us, and would remain with the merchants of Holland, of Hamburg, and other maritime towns, if our merchants were permitted to furnish themselves by short voyages to those neighboring ports, and were not compelled to take upon themselves the burden of bringing these articles from the countries where they were produced."¹⁹

The Act of 1660, officially known as that of 12 Charles II., modified the provisos governing the European trade. The exclusion of goods of European origin from all transportation to England, save in ships of their own nation, was to some extent removed. This surrender was censured by some, explicitly, because it again enabled the Dutch to collect foreign articles and send them to England, thereby "permitting competition with this country in the longer part of the voyage;" to the injury, therefore, of British navigation. The remission, though real, was less than appeared; for the prohibitions of the Commonwealth were still applied to a large number of specified articles, the produce chiefly of Russia and Turkey, which could be imported only in their national ships, or those of England. As those countries had substantially no long voyage shipping, trade with them was to all practical purposes confined to English vessels.²⁰ The concession to foreign vessels, such as it was, was further qualified by heavier duties, called aliens' duties, upon their cargoes; and by the requirement that three-fourths of their crew, entering English ports, should be of the same nationality as the ship. The object of this regulation was to prevent the foreign state from increasing its tonnage, by employing seamen other than its own. This went beyond mere protection of English vessels, and was a direct attack, though by English municipal law, upon the growth of foreign shipping.

This purpose indeed was authoritatively announced from the bench, construing the Act in the decision of a specific case. "Parliament had wisely foreseen that, if they restrained the importation or exportation of European goods, unless in our own ships, and manned with our own seamen, other states would do the same; and this, in its consequences, would amount to a prohibition of all such goods, which would be extremely detrimental to trade, and in the end defeat the very design of the Act. It was seen, however, that many countries in Europe, as France, Spain, and Italy, could more easily buy ships than build them; that, on the other hand, countries like Russia, and others in the North, had timber and materials enough for building ships, but wanted sailors. It was from a consideration of this inaptness in most countries to accomplish a complete navigation, that the Parliament prohibited the importation of most European goods, unless in ships owned and navigated by English, or in ships of the build of and manned by sailors of that country of which the goods were the growth. The consequence would be that foreigners could not make use of ships they bought, though English subjects might. This would force them to have recourse to our shipping, and the general intent of the Act, to secure the carrying trade to the English, would be answered as far as it possibly could." It was therefore ruled that the tenor of the Act forbade foreigners to import to England in ships not of their own building; and, adds the reporter, "This exposition of the Act of Navigation is certainly the true one."²¹ Having thus narrowed foreign competition to the utmost extent possible to municipal statutes, Parliament made the carrying industry even more exclusively than before a preserve for native seamen. The Commonwealth's requirement, that "the most" of the crew should be English, was changed to a definite prescription that the master and three-fourths of the mariners should be so.

Under such enactments, with frequent modification of detail, but no essential change of method, British shipping and seamen continued to be "protected" against foreign competition down to and beyond the War of 1812. In this long interval there is no change of conception, nor any relaxation of national conviction. The whole history affords a remarkable instance of persistent policy, pursued consecutively for five or six generations. No better evidence could be given of its hold upon the minds of the people, or of the serious nature of the obstacle encountered by any other state that came into collision with it; as the United States during the Napoleonic period did, in matters of trade and carriage, but especially in the closely related question of Impressment.

Whether the Navigation Act, during its period of vigor, was successful in developing the British mercantile marine and supporting the British Navy has been variously argued. The subsequent growth of British navigation is admitted; but whether this was the consequence of the measure itself has been disputed. It appears to the writer that those who doubt its effect in this respect allow their convictions of the strength of economical forces to blind them to the power of unremitting legislative action. To divert national activities from natural channels into artificial may be inexpedient and wasteful; and it may be reasonable to claim that ends so achieved are not really successes, but failures. Nevertheless, although natural causes, till then latent, may have conspired to further the development which the Navigation Act was intended to promote, and although, since its abolition, the same causes may have sufficed to sustain the imposing national carrying trade built up during its continuance, it is difficult to doubt the great direct influence of the Act itself; having in view the extent of the results, as well as the corroborative success of modern states in building up and maintaining other distinctly artificial industries, sometimes to the injury of the natural industries of other peoples, which the Navigation Act also in its day was meant to effect.

The condition of British navigation in 1651 has been stated. The experience of the remaining years of the Protectorate appears to have confirmed national opinion as to the general policy of the Act, and to have suggested the modifications of the Restoration. To trace the full sequence of development, in legislation or in shipping, is not here permissible; the present need being simply to give an account, and an explanation, of the strength of a national prepossession, which in its manifestation was a chief cause of the events that are the theme of this book. A few scattered details, taken casually, seem strikingly to sustain the claims of the advocates of the system, bearing always in mind the depression of the British shipping industry before the passage of the law. In 1728 there arrived in London from all parts beyond sea 2052 ships, of which only 213 were under foreign flags; less than one in nine. In Liverpool, in 1765, of 1533 entered and cleared, but 135 were foreign; in Bristol, the same year, of 701 but 91 foreign. Of the entire import of that year only 28 per cent, in money value, came from Europe; the carriage of the remaining 72 per cent was confined to British ships. It may, of course, be maintained that this restriction of shipping operated to the disadvantage of the commerce of the kingdom; that there was direct pecuniary loss. This would not be denied, for the object of the Act was less national gain than the upbuilding of shipping as a resource for the navy. Nevertheless, at this same period, in 1764, of 810 ships entering the great North German commercial centre, Hamburg, 267—over one-third—were British; the Dutch but 146, the Hamburgers themselves 157. A curious and suggestive comparison is afforded by the same port in 1769. From the extensive, populous, and fruitful country of France, the entrepôt of the richest West Indian colony, Santo Domingo, there entered Hamburg 203 ships, of which not one was French; whereas from Great Britain there came a slightly larger total, 216, of which 178 were British.

Such figures seem to substantiate the general contemporary opinion of the efficacy of the Navigation Act, and to support the particular claim of a British writer of the day, that the naval weakness of Holland and France was due to the lack of similar measures. "The Dutch have indeed pursued a different policy, but they have thereby fallen to a state of weakness, which is now the object of pity, or of contempt. It was owing to the want of sailors, and not to the fault of their officers, that the ten ships of the line, which during their late impudent quarrel with Britain had been stipulated to join the French fleet, never sailed."²² "The French Navy, which at all times depended chiefly upon the West India trade for a supply of seamen, must have been laid up, if the war (of American Independence) had continued another year."²³ Whatever the accuracy of these statements,²⁴ —and they are those of a well-informed man,—they represented a general conviction, not in Great Britain only but in Europe, of the results of the Navigation legislation. A French writer speaks of it as the source of England's greatness,²⁵ and sums up his admiration in words which recognize the respective shares of natural advantages and sagacious supervision in the grand outcome. "Called to commerce by her situation, it became the spirit of her government and the lever of her ambition. In other monarchies, it is private individuals who carry on commerce; but in that happy constitution it is the state, or the nation in its entirety."

In Great Britain itself there was substantial unanimity. This colored all its after policy towards its lately rebellious and now independent children, who as carriers had revived the once dreaded rivalry of the Dutch. To quote one writer, intimately acquainted with the whole theory and practice of the Navigation Acts, they "tend to the establishment of a monopoly; but our ancestors … considered the defence of this island from foreign invasion as the first law in the national policy. Judging that the dominion of the land could not be preserved without possessing that of the sea, they made every effort to procure to the nation a maritime power of its own. They wished that the merchants should own as many ships, and employ as many mariners as possible. To induce, and sometimes to force, them to this application of their capital, restrictions and prohibitions were devised. The interests of commerce were often sacrificed to this object." Yet he claims that in the end commerce also profited, for "the increase in the number of ships became a spur to seek out employment for them." In 1792, British registered shipping amounted to 1,365,000 tons, employing 80,000 seamen. Of these, by common practice, two-thirds—say 50,000—were available for war, during which it was the rule to relax the Act so far as to require only one-fourth of the crew to be British. "That the increase in our shipping is to be ascribed to our navigation system appears in the application of it to the trade of the United States. When those countries were part of our plantations, a great portion of our produce was transported to Great Britain and our West India Islands in American bottoms; they had a share in the freight of sugars from those islands to Great Britain; they built annually more than one hundred ships, which were employed in the carrying trade of Great Britain; but since the Independence of those states, since their ships have been excluded from our plantations, and that trade is wholly confined to British ships, we have gained that share of our carrying trade from which they are now excluded."²⁶ In corroboration of the same tendency, it was also noted during the war with the colonies, that "the shipyards of Britain in every port were full of employment, so that new yards were set up in places never before so used."²⁷