in so wide a strife had lessened the buying power of Europe at large. But in Europe the loss was to some extent made up for the moment by the artificial demand for supplies which war creates; the home market still sufficed to absorb a vast quantity of manufactures; and America, which was fast growing into the most important of English customers, remained unaffected by the struggle. Industry had thus suffered but little loss, while commerce believed itself to have greatly gained. All rivals save one had in fact been swept from the sea; the carrying trade of France and Holland alike had been transferred to the British flag, and the conquest of their wealthier settlements had thrown into British hands the whole colonial trade of the world. [Illustration: EUROPE after the PEACE OF TILSIT, 1807] [Sidenote: League of Neutrals.] To strike at England's wealth had been among the projects of the Directory: it was now the dream of the First Consul. It was in vain for England to produce, if he shut her out of every market. Her carrying trade must be annihilated if he closed every port against her ships. It was this gigantic project of a "Continental System" that revealed itself as soon as Buonaparte became finally master of France. From France itself and its dependencies in Holland and the Netherlands English trade was already excluded. But Italy also was shut against her after the Peace of Lunéville, and Spain not only closed her own ports but forced Portugal to break with her English ally. In the Baltic Buonaparte was more active than even in the Mediterranean. In a treaty with America, which was destined to bring this power also in the end into his great attack, he had formally recognized the rights of neutral vessels which England was hourly disputing; and in her disregard of them he not only saw the means of bringing the northern powers into his system of exclusion, but of drawing on their resources for a yet more decisive blow. He was set upon challenging not only England's wealth but her world-empire; and his failure in Egypt had taught him that the first condition of success in such an enterprise was to wrest from her her command of the seas. The only means of doing this lay in a combination of naval powers; and the earlier efforts of France had left but one naval combination for Buonaparte to try. The Directory had been able to assail England at sea by the joint action of the French fleet with those of Holland and of Spain. But the Spanish navy had been crippled by the battle of Cape St. Vincent, and the Dutch fleet destroyed in the victory of Camperdown. The only powers which now possessed naval resources were the powers of the North. The fleets of Denmark, Sweden, and Russia numbered forty sail of the line, and they had been untouched by the strife. Both the Scandinavian states resented the severity with which Britain enforced that right of search which had brought about their