The inhabitants of Italy who fled to the islands of the Adriatic, and founded the city of Venice, were led by their situation to the pursuit of commerce, which they carried on with success, and in no very great length of time became almost the sole carriers of the Eastlndian merchandize brought to Alexandria, which their vessels distributed to all parts of Europe. The example of Venice led to the cultivation of commerce at Genoa, Florence, Pisa, and other cities of Italy, which for several centuries were the only places in Europe that carried on any considerable foreign trade. The in security of property, during the unsettled state of Europe which succeeded the destruction of the western empire, caus ed an almost general suspension of com mercial intercourse till the time of Char lemagne, whose extensive empire facili tated correspondence between different 'parts of Europe which had before little, connection, while the establishment of Christianity in Germany contributed to the increase of cities and towns in the north of Europe, and introduced an ac quaintance with the productions of more southern climates.
The encouragement given to manufac tures in Flanders, and their consequent improvement,drevv the merchants of other countries to the fairs and markets estab lished at Bruges, Courtray, and many other towns, which thus became of consi derable importance, while a taste for the productions of the East was spreading through almost every part of Europe, ac quired in Palestine during the crusades, and contributing very materially to the encouragement offoreign trade. The pro ductions ofindia were, however, obtained at great risk and expense, till the ment of navigation, by the invention of th e mariner's compass, and the subsequent discovery of a passage to India by the Cape of Good Hope. This was soon fol
lowed by the still more important discove ry of the West Indies, and the continent of America, events Which filled Europe with astonishment, and opened a vast field for speculative and commercial enter prize. Spain and Portugal attempted to monopolize the benefits of the discovery of America, but their injudicious policy has rendered them little more than the channels, through which the profits of this trade have been conveyed to more industrious states.
The establishment of English colonies in North America,the improvement of ma nufactures in Flanders, Holland, France, and England, the encouragement of navi gation, the institutionof public banks,and the more general practice of insurance, fa voured the extension of commerce, suppli ed it with new materials, and rendered it more secure. It has been protected, in all the states of Europe, by numerous laws and edicts ; it has been encouraged by bounties and privileges, and commercial treaties have been formed between differ ent nations for removing impediments, and facilitating a mutually beneficial in tercourse. The commerce of Europe has thus expanded in a degree of which form er times could have no idea, and while it has multiplied the luxuries and refine ments of society, it has contributed essen tially to the advancement of naval power, and been rendered by most states a fruit ful source of public revenue.