42. In 1580, or eighty-three years after Vasco de Gama found his way, by the Cape, to Calicut, Portugal was subdued by Philip II., king of Spain. The Spaniards, however, were not enriched by the conquest; since their commercial energy and enterprise had been destroyed, by the vast quantities of the precious metals obtained from their American possessions.
43. In 1579, the people of Holland, with those of six neighboring provinces, being then subject to Spain, united, under the Prince of Orange, for the purpose of regaining their liberties. This produced a sanguinary war, which continued for thirty years, during which time the Dutch wrested from the Spaniards most of their Portuguese possessions in India, and, in addition to this, formed many other settlements in various places from the River Tigris even to Japan. Batavia, on the Island of Java, was made the grand emporium of trade, and the seat of the government of their East India possessions.
44. The prosperity of the United Provinces increased with great rapidity; and, as they were but little interfered with by other nations in their Eastern dominions, they enjoyed, for half a century or more, almost the whole of the trade of the East. Besides this, they shared largely with the rest of the world in almost every other branch of trade. After the year 1660, other nations, by great exertions, succeeded in obtaining considerable shares of the commerce of the East; yet the Dutch still retain valuable possessions there.
45. The chief articles exported from Britain, in ancient times, were tin, lead, copper, iron, wool, and cattle; for which they received in return, gold, silver, and manufactured articles. But the commerce of the British Islands was inconsiderable, when compared with that of many kingdoms on the Continent, until the beginning of the eighteenth century.
46. When Elizabeth ascended the throne of England, in 1558, the circumstances of the nation required an extensive navy for its protection; and the great attention which the queen paid to this means of defence, gave animation to all maritime concerns. Under her patronage, several companies for trading in foreign countries were formed, which, at that time, and for a long period afterwards, were very beneficial to trade in general. In her reign, also, the colonial system of England had its origin, which contributed eventually, more than any thing else, to the commercial prosperity of that nation. Since the reign of this wise and judicious princess, the commerce and manufactures of Great Britain have been, with a few interruptions, steadily advancing; and, in these two particulars, she surpasses every other nation.
47. The United States possess superior local advantages for trade, and embrace a population unsurpassed for enterprise and energy. Since the Revolution, the resources of our country have been rapidly developing. Our exports and imports are already next in amount to those of Great Britain and France and the extensive improvements which have been made by the different states, to facilitate internal intercourse, are increasing with great rapidity.
48. The banking system is very intimately interwoven with commercial affairs in general. Banks are of three kinds, viz., of discount, of deposit, and of circulation. The term bank, in its original application, signified a place of common deposit for money, and where, in commercial transactions, individuals could have the amount, or any part of the amount, of their deposits transferred to each other's accounts.
49. The term bank is derived from the Italian word banco, which signified a kind of bench, or table, on which the Jews were accustomed to place the money which they proposed to lend in the markets of the principal towns. The first bank was established in Venice, about the middle of the twelfth century; the Bank of Genoa, in 1345; the Bank of Amsterdam, in 1607; the Bank of Hamburg, in 1619; the Bank of Rotterdam, in 1635. These were all banks of mere deposit and transfer.
50. Lending-houses may be traced to a very ancient origin. They were, at first, supported by humane persons, with a view of lending money to the poor, on pledges, without interest. Augustus Cæsar appropriated a part of the confiscated effects of criminals to this purpose; and Tiberias, also, advanced a large capital, to be lent for three years, without interest, to those who could give security in lands equal to twice the value of the sum borrowed.
51. In the early ages of Christianity, free gifts were collected and preserved by ecclesiastics, partly to defray the expenses of divine service, and partly to relieve the poor of the church; and the funds thus provided came, at length, to be called montes pietatis—mountains of piety. This appellation was afterwards applied to the loaning-houses, established in modern Italy in imitation of those of antiquity.