to the government, or to those to whom it has granted a portion of the revenue, and are indemnified by assignments on the revenue collectors, or by having certain districts put into their possession, that they may pay themselves from the revenues; to enable them to do which, a great portion of the powers of government are usually made over simultaneously, to be exercised by them until either the districts are redeemed, or their receipts have liquidated the debt. Thus, the commercial operations of both these classes of dealers take place principally upon that part of the produce of the country which forms the revenue of the government. From that revenue their capital is periodically replaced with a profit, and that is also the source from which their original funds have almost always been derived. Such, in its general features, is the economical condition of most of the countries of Asia, as it has been from beyond the commencement of authentic history, and is still, wherever not disturbed by foreign influences.

In the agricultural communities of ancient Europe whose early condition is best known to us, the course of things was different. These, at their origin, were mostly small town-communities, at the first plantation of which in an unoccupied country, or in one from which the former inhabitants had been expelled, the land which was taken possession of was systematically divided, in equal or nearly equal allotments, among the families composing the community. In some cases, instead of a town there was a confederation of towns, occupied by people of the same reputed race, and who were supposed to have settled in the country about the same time. Each family produced its own food and the materials of its clothing, which were worked up within itself, usually by the women of the family, into the coarse fabrics with which the age was contented. Taxes there were none, as there were either no paid officers of government, or if there were, their payment had been provided for

by a reserved portion of land, cultivated by slaves on account of the state; and the army consisted of the body of citizens. The whole produce of the soil, therefore, belonged, without deduction, to the family which cultivated it. So long as the progress of events permitted this disposition of property to last, the state of society was, for the majority of the free cultivators, probably not an undesirable one; and under it, in some cases, the advance of mankind in intellectual culture was extraordinarily rapid and brilliant. This more especially happened, where along with advantageous circumstances of race and climate, and no doubt with many favorable accidents of which all trace is now lost, was combined the advantage of a position on the shore of a great inland sea, the other coasts of which were already occupied by settled communities. The knowledge which in such a position was acquired of foreign productions, and the easy access of foreign ideas and inventions, made the chain of routine, usually so strong in a rude people, hang loosely on these communities. To speak only of their industrial development, they early acquired variety of wants and desires, which stimulated them to extract from their own soil the utmost which they knew how to make it yield; and when their soil was sterile, or after they had come to the end of its capacity, they often became traders, and bought up the productions of foreign countries, to sell them in other countries with a profit.

The duration, however, of this state of things was from the first precarious. These little communities lived in a state of almost perpetual war. For this there were many causes. In the ruder and purely agricultural communities, a frequent cause was the mere pressure of their increasing population upon their limited land, aggravated as that pressure so often was by deficient harvests in the rude state of their agriculture, and depending as they did for food upon a very small extent of country. On these occasions the

community often emigrated en masse, or sent forth a swarm of its youth, to seek, sword in hand, for some less warlike people who could be expelled from their land, or detained to cultivate it as slaves for the benefit of their despoilers. What the less advanced tribes did from necessity, the more prosperous did from ambition and the military spirit; and after a time the whole of these city-communities were either conquerors or conquered. In some cases the conquering state contented itself with imposing a tribute on the vanquished, who, being, in consideration of that burthen, freed from the expense and trouble of their own military and naval protection, might enjoy under it a considerable share of economical prosperity, while the ascendant community obtained a surplus of wealth, available for purposes of collective luxury or magnificence. From such a surplus the Parthenon and the Propylæa were built, the sculptures of Phidias paid for, and the festivals celebrated for which Eschylus, Sophocles, Euripides and Aristophanes composed their dramas. But this state of political relations, most useful, while it lasted, to the progress and ultimate interest of mankind, had not the elements of durability. A small conquering community which does not incorporate its conquests, always ends by being conquered. Universal dominion therefore at last rested with the people who practiced this artwith the Romans; who, whatever were their other devices, always either began or ended by taking a great part of the land to enrich their own leading citizens, and by adopting into the governing body the principal possessors of the remainder. It is unnecessary to dwell on the melancholy economical history of the Roman empire. When inequality of wealth once commences, in a community not constantly engaged in repairing by industry the injuries of fortune, its advances are gigantic; the great masses of wealth swallow up the smaller. The Roman empire ultimately became covered with the vast landed possessions of

a comparatively few families, for whose luxury, and still more for whose ostentation, the most costly products were raised, while the cultivators of the soil were slaves, or small tenants in a nearly servile condition. From this time the wealth of the empire progressively declined. In the beginning, the public revenues, and the resources of rich individuals, sufficed at least to cover Italy with splendid edifices, public and private; but at length so dwindled under the enervating influences of mis-government, that what remained was not even sufficient to keep those edifices from decay. The strength and riches of the civilized world became inadequate to make head against the nomad population which skirted its northern frontier: they overran the empire, and a different order of things succeeded.

In the new frame in which European society was now cast, the population of each country may be considered as composed, in unequal proportions, of two distinct nations or races, the conquerors and the conquered: the first the proprietors of the land, the latter the tillers of it. These tillers. were allowed to occupy the land on conditions which, being the product of force, were always onerous, but seldom to the extent of absolute slavery. Already in the later times of the Roman empire, predial slavery had extensively transformed itself into a kind of serfdom; the coloni of the Romans were rather villeins than actual slaves; and the incapacity and distaste of the barbarian conquerors for personally superintending industrial occupations, left no alternative but to allow to the cultivators, as an incentive to exertion, some real interest in the soil. If, for example, they were compelled to labor, three days in the week, for their superior, the produce of the remaining days was their own. If they were required to supply the provisions of various sorts, ordinarily required for the consumption of the castle, and were often subject to requisitions in excess, yet, after supplying these demands, they were suffered to dispose at their will of

whatever additional produce they could raise. Under this system, during the Middle Ages, it was not impossible, no more than in Russia at present (where the same system still essentially prevails) for serfs to acquire property; and in fact, their accumulations are the primitive source of the wealth of modern Europe.

In that age of violence and disorder, the first use made. by a serf of any small provision which he had been able to accumulate, was to buy his freedom and withdraw himself to some town or fortified village, which had remained undestroyed from the time of the Roman dominion; or, without buying his freedom, to abscond thither. In that place of refuge, surrounded by others of his own class, he attempted to live, secured in some measure from the outrages and exactions of the warrior caste, by his own prowess and that of his fellows. These emancipated serfs mostly became artificers, and lived by exchanging the produce of their industry for the surplus food and material which the soil yielded to its feudal proprietors. This gave rise to a sort of European counterpart of the economical condition of Asiatic countries; except that, in lieu of a single monarch and a fluctuating body of favorites and employees, there was a numerous and in a considerable degree fixed class of great landholders; exhibiting far less splendor, because individually disposing of a much smaller surplus produce, and for a long time expending the chief part of it in maintaining the body of retainers whom the warlike habits of society, and the little protection afforded by government, rendered indispensable to their safety. The greater stability, the fixity of personal position, which this state of society afforded, in comparison with the Asiatic polity to which it economically corresponded, was probably one main reason why it was also found more favorable to improvement. From this time the economical advancement of society has not been further interrupted. Security of person and prop