It is customary to speak of the natural resources of a country as furnishing a guarantee of material prosperity. But here was a republic almost without natural resources, which had yet supplied by human intelligence and thrift what a niggard nature had denied. Spain was overflowing with unlimited treasure, and had possessed half the world in fee; and Spain was bankrupt, decaying, sinking into universal pauperism. Holland, with freedom of thought, of commerce, of speech, of action, placed itself, by intellectual power alone, in the front rank of civilization.
From Cathay, from the tropical coasts of Africa, and from farthest Ind, came every drug, spice, or plant, every valuable jewel, every costly fabric, that human ingenuity had discovered or created. The Spaniards, maintaining a frail tenure upon a portion of those prolific regions, gathered their spice harvests at the point of the sword, and were frequently unable to prevent their northern rivals from ravaging such fields as they had not yet been able to appropriate.
Certainly this conduct of the Hollanders was barbarism and supreme selfishness, if judged by the sounder political economy of our time. Yet it should never be forgotten that the contest between Spain and Holland in those distant regions, as everywhere else, was war to the knife between superstition and freedom, between the spirits of progress and of dogma. Hard blows and foul blows were struck in such a fight, and humanity, although gaining at last immense results, had much to suffer and much to learn ere the day was won.
But Spain was nearly beaten out of those eastern regions, and the very fact that the naval supremacy of the republic placed her ancient tyrant at her mercy was the main reason for Spain to conclude the treaty of truce. Lest she should lose the India trade entirely, Spain consented to the treaty article by which, without mentioning the word, she conceded the thing. It was almost pathetic to witness, as we have witnessed, this despotism in its dotage, mumbling so long over the formal concession to her conqueror of a portion of that India trade which would have been entirely wrested from herself had the war continued. And of this Spain was at heart entirely convinced. Thus the Portuguese, once the lords and masters, as they had been the European discoverers, of those prolific regions and of the ocean highways which led to them, now came with docility to the republic which they had once affected to despise, and purchased the cloves and the allspice, the nutmegs and the cinnamon, of which they had held the monopoly; or waited with patience until the untiring Hollanders should bring the precious wares to the peninsula ports.
A Dutch Indianian would make her voyage to the antipodes and her return in less time than was spent by a Portuguese or a Spaniard in the outward voyage. To accomplish such an enterprise in two years was accounted a wonder of rapidity, and when it is remembered that inland navigation through France by canal and river from the North Sea to the Mediterranean was considered both speedier and safer, because the sea voyage between the same points might last four or five months, it must be admitted that two years occupied in passing from one end of the earth to the other and back again might well seem a miracle.
The republic was among the wealthiest and the most powerful of organized States. Her population might be estimated at three millions and a half, about equal to that of England at the same period. But she was richer than England. Nowhere in the world was so large a production in proportion to the numbers of a people. Nowhere were so few unproductive consumers. Every one was at work. Vagabonds, idlers, and do-nothings, such as must be in every community, were caught up by the authorities and made to earn their bread. The devil's pillow, idleness, was smoothed for no portion of the population.
There were no beggars, few paupers, no insolently luxurious and ostentatiously idle class. The modesty, thrift, and simple elegance of the housekeeping, even among the wealthy, was noted by travellers with surprise. It will be remembered with how much amused wonder, followed by something like contempt, the, magnificent household of Spinola, during his embassy at the Hague, was surveyed by the honest burghers of Holland. The authorities showed their wisdom in permitting the absurd exhibition, as an example of what should be shunned, in spite of grave remonstrances from many of the citizens. Drunken Helotism is not the only form of erring humanity capable of reading lessons to a republic.
There had been monasteries, convents, ecclesiastical establishments of all kinds in the country, before the great war between Holland and the Inquisition. These had, as a matter of course, been confiscated as the strife went on. The buildings, farms, and funds, once the property of the Church, had not, however, been seized upon, as in other Protestant lands, by rapacious monarchs, and distributed among great nobles according to royal caprice. Monarchs might give the revenue of a suppressed convent to a cook, as reward for a successful pudding; the surface of Britain and the continent might be covered with abbeys and monasteries now converted into lordly palaces—passing thus from the dead hand of the Church into the idle and unproductive palm of the noble; but the ancient ecclesiastical establishments of the free Netherlands were changed into eleemosynary institutions, admirably organized and administered with wisdom and economy, where orphans of the poor, widows of those slain in the battles for freedom by land and sea, and the aged and the infirm, who had deserved well of the republic in the days of their strength, were educated or cherished at the expense of the public, thus endowed from the spoils of the Church.
In Spain, monasteries upon monasteries were rising day by day, as if there were not yet receptacles enough for monks and priests, while thousands upon thousands of Spaniards were pressing into the ranks of the priesthood, and almost forcing themselves into monasteries, that they might be privileged to beg, because ashamed to work. In the United Netherlands the confiscated convents, with their revenues, were appropriated for the good of those who were too young or too old to labour, and too poor to maintain themselves without work. Need men look further than to this simple fact to learn why Spain was decaying while the republic was rising?
The ordinary budget of the United Provinces was about equal to that of England, varying not much from four millions of florins, or four hundred thousand pounds. But the extraordinary revenue was comparatively without limits, and there had been years, during the war, when the citizens had taxed themselves as highly as fifty per cent. on each individual income, and doubled the receipts of the exchequer. The budget was proposed once a year, by the council of state, and voted by the States-General, who assigned the quota of each province; that of Holland being always one-half of the whole, that of Zeeland sixteen per cent., and that of the other five of course in lesser proportions. The revenue was collected in the separate provinces, one-third of the whole being retained for provincial expenses, and the balance paid into the general treasury. There was a public debt, the annual interest of which amounted to 200,000 florins. During the war, money had been borrowed at as high a rate as thirty-six per cent., but at the conclusion of hostilities the States could borrow at six per cent., and the whole debt was funded on that basis. Taxation was enormously heavy, but patriotism caused it to be borne with cheerfulness, and productive industry made it comparatively light. Rents were charged twenty-five per cent. A hundred per cent. was levied upon beer, wine, meat, salt, spirits. Other articles of necessity and luxury were almost as severely taxed. It is not easy to enumerate the tax-list, scarcely anything foreign or domestic being exempted, while the grave error was often committed of taxing the same article, in different forms, four, five, and six times.