Comma for either/or — dharma, courage. Spelling forgiving — corage finds courage.

    The Continental System: An Economic Interpretation

    Significance

    Eli F. Heckscher

    6 min

    From a formal point of view there are at the most two novelties in the regulations of the Berlin decree. The one is the declaration of blockade against the British Isles, which could scarcely have occurred to anybody except Napoleon at a time when not a single war-ship held the sea against the British. Its principal object, indeed, was to form an effective and grandiose gesture; and not without reason the famous British lawyer, Lord Erskine, could later (February 15, 1808) say in the House of Lords that Napoleon might just as well have declared the moon in a state of blockade. Presumably, however, Napoleon aimed not only at the theatrical effect, but also at reducing the British principle of a paper blockade to an absurdity. The second novelty was the treatment of British subjects and their property on the Continent. Like the former regulation, this came about as a continental parallel to the British system of capture at sea. Its practical effect, as far as one can judge, was restricted to the moment of proclamation, as the law took by surprise many Englishmen and their enterprises, especially in the German territories governed by Napoleon.

    The epoch-making character of the Berlin decree, therefore, is scarcely due to either of these formally new regulations. What is important is the wide range which from the time of the Berlin decree was given to a whole series of measures which for a long time had been applied more or less sporadically. It was only now that it had become possible to elaborate the different methods of reprisal into a truly 'continental' system, that is, one embracing the whole, or nearly the whole, of the European mainland. And it was only now, too, that they were made the central point in the entire internal and external policy of France, around which everything else had to turn in an ever-increasing degree. It was only now that the idea was seriously taken up by a ruler and statesman who had the unique capacity and ruthless consistency which were the necessary prerequisites for transforming the plan from a mere visionary programme into a political reality. The interest surrounding the development of the Continental System, therefore, is connected with the fact that its idea now came to be followed up in deadly earnest, and that the entire content of the ideas was thereby given an opportunity to affect the life of Europe for better or for worse.

    The content of this system should be sufficiently clear from what has already been said, but it may nevertheless be set forth here, when we are entering upon the further development of external events. As a declaration of blockade against Great Britain was little more than a theatrical gesture, and as Napoleon was almost entirely destitute of means to assert his will on the sea, the blockade had to be applied by land. This means that it was, and aimed at being, a self-blockade on the part of the Continent, just as had already been the case with the Directory's Nivôse law of 1798. With the object of preventing Great Britain from disposing of her goods on the Continent and thereby bringing her to her knees, the Continent itself was to renounce all importation of British goods and colonial wares, so far as the latter came from British colonies and British trade. The whole thing not only was, but was intended to be, a 'self-denying ordinance'. The privations to which the Continent was afterwards subjected were thus a designed effect of Napoleon's measures, and not at all the work of his enemy, who, on the contrary, devoted himself to relieving them, for the most part in principle and almost entirely in practice. Unless this starting-point, which to our way of thinking seems very paradoxical, is firmly grasped at the outset, the following development will appear inexplicable. To what extent Napoleon realized all the consequences of his measure, we have, it is true, no means of knowing; but evidence is not lacking that he was conscious of their main features. Even when he issued the decree concerning the closing of the Hanse Towns (December 3, 1806), he wrote to his brother Louis of Holland that the serious obstacles in the way of intercourse with England would 'undoubtedly injure Holland and France', but that they were necessary; and in a letter addressed to the same correspondent a few days later he says that the system would ruin the great commercial towns. Moreover, in connexion with the intensification of the system by the second Milan decree he wrote a year later (December 17, 1807) to the minister of the interior, Cretet, and ordered him to encourage capturing as 'the only means by which the requirements of the country could be supplied'. On the same occasion, also, his minister of finance, Gaudin, in a report written in connexion with the Milan decree, pointed out the injury inflicted by the system on the French industries, which had already found it difficult to obtain colonial raw materials; but he considered that the injury to England was yet greater owing to her greater dependence on industry and foreign trade.

    Admiral Mahan, in his somewhat harsh criticism of Napoleon's policy, condemns the Continental System on the ground that it injuriously affected the neutrals, who were especially indispensable to France because she herself was excluded from the sea. 'The neutral carrier,' he says, 'was the key of the position. He was, while the war lasted, essentially the enemy of Great Britain, who needed him little, and a friend of France, who needed him much.' This statement appears to involve the ignoring of all the motives behind this mode of warfare, the object of which was to conquer Great Britain economically; for that object Napoleon could never have attained by allowing neutral trade to continue. That Napoleon had to expect greater injury to Great Britain than to his own countries from the self-blockade of the Continent was a necessary consequence of the views which, as we have already seen, were common to him and his adversary; and from his standpoint, accordingly, the policy was sufficiently justified. Whether he and his opponents conceived the economic connexions aright, is quite another question, which belongs to a later chapter. It is a question, moreover, which can by no means be disposed of by a mere reference to his need of the help of the neutrals for supplies which he thought he could do without or replace from other sources.