Spain, a country highly favoured by nature, and at one period surpassed by no other kingdom in Europe in civilization, knowledge, industry, and power, exhibits an instructive and striking instance of the melancholy effects of political degradation. Under the power of the Arabians, she flourished exceedingly; and even for a short period after their expulsion, she retained a high rank in the scale of European kingdoms. The acquisition of her East Indian and American territories, and the high eminence to which she was raised during the dominion of Charles V. and his immediate successors,--events that to a superficial view of things would have appeared of the greatest advantage to her,--proved, in fact, in their real and permanent operation, prejudicial to her industry, knowledge, and power. It would seem that the acquisition of the more precious metals, which may be likened to the power of converting every thing that is touched into gold, is to nations what it was to Midas,--a source of evil instead of good. Spain, having substituted the artificial stimulus of her American mines in the place of the natural and nutritive food of real industry, on which she fed during the dominion of the Moors, gradually fell off in commercial importance, as well as in political consequence and power. The decline in her commerce, and in her home industry, was further accelerated and increased by the absurd restrictions which she imposed on the intercourse with her colonies. All these circumstances concurring, about the period when she fell into the power of the house of Bourbon,--that is, about the beginning of the eighteenth century,--she sunk very low in industry and commerce, and she has, since that period, continued to fall.

And yet, as we have observed, she possesses great natural advantages: a sea coast on the Atlantic and Mediterranean of considerable extent; a great variety of climate and soil, and consequently of productions,--she might become, under a wise and free government, distinguished for her political power and her commerce.

On the Atlantic, the first port towards the north is Saint Sebastian; then succeeds Bilboa, St. Andero, Gijon, Ferrol, and Corunna; but though some of these, especially Ferrol and Corunna, possess excellent harbours, yet the poverty of the adjacent country prevents them from having much trade. To the south of Portugal is Seville, on the Guadalquiver, sixteen leagues from the sea; large vessels can ascend to this city, but its commerce was nearly destroyed by the transfer of the colonial trade to Cadiz. This last town, one of the most ancient commercial places in the world, is highly favoured both by nature and art as a port; and before the French revolutionary war, and the separation of the American colonies from the mother state, was undoubtedly the first commercial city in Spain. The exports of the northern provinces consist principally in iron, wool, chesnuts and filberts, &c.; the imports, which chiefly come from England, Holland, and France, are woollen, linen, and cotton goods, hardware, and salted fish.

On the Mediterranean, Malaga may be regarded as the third commercial city in Spain, though its harbour is not good; the other ports in this sea, at which trade is carried on to any considerable extent, are Carthagena, Alicant, and Barcelona, which ranks after Cadiz in commercial importance, and now that the colonial trade is destroyed, may be placed above it. The principal exports from these Mediterranean towns are wines, dried fruits, oils, anchovies, wool, barilla, soap, kermes, antimony, vermilion, brandy, cork, silk, &c. Barcelona formerly exported an immense number of shoes to the colonies. The imports consist chiefly of Baltic produce, the articles enumerated as forming the imports of the north of Spain, and some articles from Italy and Turkey.

Portugal, not nearly so extensive as Spain, nor blessed with such a fertile territory, is before her in commerce: she possesses two sea-ports of the first consideration, Lisbon and Oporto; and five of the second class. There are few cities that surpass Lisbon in commerce. The principal trade of Portugal is with England; from this country she receives woollens and other manufactures; coals, tin, salted cod, Irish linen, salt provisions, and butter: her other imports are iron from the north of Spain; from France, linens, silks, cambrics, fine woollens, jewellery; from Holland, corn, cheese, and drugs for dying; from Germany, linens, corn, &c.; and from Denmark, Sweden, and Russia, Baltic produce. The principal exports of Portugal are wine, oil, fruits, cork, &c.

The Italian States, the origin of the commerce of the middle ages, are no longer remarkable for their trade; the principal ports for commerce are Leghorn, Naples, Venice, Genoa, Messina, and Palermo. The exports of Leghorn are silk, raw and manufactured; straw hats, olive oil, fruits, marble, &c.: its chief trade, however, consists in the importation of English merchandize, which it distributes to all parts of the Mediterranean, receiving in return their produce to load the British ships on their home voyage. The greatest import to Naples consists in European manufactured goods, and salt fish; its exports are those of Leghorn, with capers, wool, dye stuffs, manna, wax, sulphur, potash, macaroni, &c. Venice has declined very much, from the influence of political circumstances: her exports are olives, looking-glasses, rice, coral, Venice treacle, scarlet cloth, and gold and silver stuffs; the imports are similar to those of Leghorn and Naples. The exports and imports of Genoa, consisting principally of those already enumerated, do not require particular notice. Sicily, a very rich country by nature, and formerly the granary of Rome, has fallen very low from bad government: her exports are very various, including, beside those already mentioned, barilla, a great variety of dying drugs and medicines, goat, kid, and rabbit skins, anchovies, tunny fish, wheat, &c.: its chief imports are British goods, salted fish, and colonial produce.

The principal trade of Greece is carried on by the inhabitants of Hydra, a barren island. The commerce of the Hydriots, as well as of the rest of Greece, was very much benefited by the scarcity of corn which prevailed in France in 1796, and subsequently by the attempts of Bonaparte to shut British manufactures from the continent. These two causes threw the greatest part of the coasting trade of the Mediterranean into their hands. The chief articles of export from Greece are oil, fruits, skins, drugs, volonia, and gall nuts, cotton and wool. The imports are principally English goods, and colonial produce, tin, lead, &c.

We have already dwelt on the causes which produced the immense commercial superiority of England; and we shall, therefore, now confine ourselves to an enumeration of its principal ports, and the principal articles of its export and import. London possesses considerably above one-half of the commerce of Great Britain; the next town is undoubtedly Liverpool; then may be reckoned, in England, Bristol, Hull, Newcastle, Sunderland, Yarmouth, &c.; in Scotland, Greenock, Leith, Aberdeen, Dundee, &c.; in Ireland, Cork, Dublin, Limerick, Belfast, Waterford, &c. From the last return of the foreign trade of Great Britain it appears, that by far the most important article of export is cotton manufactures and yarn, amounting in real or declared value to nearly one-half of the whole amount of goods exported; the next articles, arranged according to their value, are woollen manufactures, refined sugar, linen manufactures, iron, steel and hardware, brass and copper manufactures, glass, lead, and shot, &c. &c.; of colonial produce exported, the principal articles are coffee, piece goods of India, rum, raw sugar, indigo, &c. &c. The principal imports of Great Britain are cotton wool, raw sugar, tea, flax, coffee, raw silk, train oil and blubber, madder, indigo, wines, &c. &c. The principal imports into Ireland consist of old drapery, entirely from Great Britain; coals, also entirely from Great Britain; iron wrought and unwrought, nearly the whole from Great Britain; grocery, mostly direct from the West Indies; tea, from Britain, &c. &c. In fact, of the total imports of Ireland, five-sixths of them are from Great Britain; and of her exports, nine-tenths are to Great Britain. The principal articles of export are linen, butter, wheat, meal, oats, bacon, pork, &c. &c.

On the 30th September, 1822, there belonged to the United Kingdom 24,642 vessels, making a total of 2,519,044 tons, and navigated by 166,333 men; of the vessels employed in the foreign trade, including their repeated voyages, in the year ending the 5th of January 1823, there were about 12,000, of which upwards of 9,000 were British and Irish, and the rest foreign vessels. The coasting trade of England is calculated to employ 3000 vessels. We have already stated the proportion which the trade of Ireland to Britain bore to her trade with the rest of the world; this point may be still further elucidated by the following fact: that the number of vessels, (including their repeated voyages,) which entered the ports of Ireland, from all parts of the world, in the year ending the 5th of January, 1823, was 11,561, and that all these, except 943, came from Great Britain.

From this rapid view of the commerce of the European states, it appears that, with the exception of Great Britain, by far the largest portion and greatest value of the exports of each country consist in the produce of the soil, either in its raw and natural state, or after having undergone a change that requires little industry, manual labour, or mechanical agency. Britain, on the contrary, derives her exports almost entirely from the produce of her wonderful mechanical skill, which effects, in many cases, what could alone be accomplished by an immense population, and in a few cases, what no manual labour could perform.