1. Try to get possession of as many precious metals as you can. 2. Encourage foreign trade in preference to domestic trade. 3. Encourage those industries which change raw materials into exportable finished products. 4. Encourage a large population, for you will need workmen for your factories and an agricultural community does not raise enough workmen. 5. Let the State watch this process and interfere whenever it is necessary to do so. Instead of regarding International Trade as something akin to a force of nature which would always obey certain natural laws regardless of man’s interference, the people of the sixteenth and seventeenth centuries tried to regulate their commerce by the help of official decrees and royal laws and financial help on the part of the government. In the sixteenth century Charles V adopted this Mercantile System (which was then something entirely new) and introduced it into his many possessions. Elizabeth of England flattered him by her imitation. The Bourbons, especially King Louis XIV, were fanatical adherents of this doctrine and Colbert, his great minister of finance, became the prophet of Mercantilism to whom all Europe looked for guidance. The entire foreign policy of Cromwell was a practical application of the Mercantile System. It was invariably directed against the rich rival Republic of Holland. For the Dutch shippers, as the common-carriers of the merchandise of Europe, had certain leanings towards free-trade and therefore had to be destroyed at all cost. It will be easily understood how such a system must affect the colonies. A colony under the Mercantile System became merely a reservoir of gold and silver and spices, which was to be tapped for the benefit of the home country. The Asiatic, American and African supply of precious metals and the raw materials of these tropical countries became a monopoly of the state which happened to own that particular colony. No outsider was ever allowed within the precincts and no native was permitted to trade with a merchant whose ship flew a foreign flag. Undoubtedly the Mercantile System encouraged the development of young industries in certain countries where there never had been any manufacturing before. It built roads and dug canals and made for better means of transportation. It demanded greater skill among the workmen and gave the merchant a better social position, while it weakened the power of the landed aristocracy. [Illustration: HOW EUROPE CONQUERED THE WORLD]