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    The Continental System: An Economic Interpretation

    The Rest of the Continent

    Eli F. Heckscher

    6 min

    As regards the other continental states within Napoleon's more or less undisputed realm of power, on the other hand, the effects were bound to be far more varied, differing not only according to the degree of their political independence and to their actual observance of the Continental decrees within their territories, but also according to the relative importance of the two opposite tendencies of which they were the object. A moment's consideration will show that their position had features in common both with that of France and with that of Great Britain. It resembled the former in so far as they, like France, had to abstain from supply by sea; it resembled the latter inasmuch as they, like Great Britain, were shut out from sales in the markets which were under the direct sway of Napoleon. Consequently, the effects in the non-French parts of Central and Southern Europe cannot be expected to have the same self-evident, consistent appearance as in France; but they have a practical and historical interest of their own.

    Moreover, the effects on the Napoleonic mainland were bound to vary with the position of foreign trade and of the production of goods intended for foreign sale. In this connexion, however, we must emphasize at the outset the limitation in the effects which follow from the fact that in scarcely any of the continental states was economic life centred on international exchange. The great commercial cities of Hamburg, Bremen, Amsterdam, Rotterdam, Antwerp, and, in France, Bordeaux, Marseilles, Nantes, Havre, and La Rochelle, were, it is true, entirely dependent on foreign trade and suffered proportionately from the blockade in so far as it became effective; but this point has been already so fully illustrated in the preceding part that it is not necessary to dwell further upon it here. Among the non-French states, countries which, like Saxony, Switzerland, the Grand Duchy of Berg, Bohemia, and Silesia, had already reached the industrial stage and were therefore very dependent on international intercourse, were those most affected by the Continental System; however, they too were affected very differently, according to their political position.

    The difference between industrial countries and countries especially given over to agriculture and the yielding of raw materials, namely, North Germany and especially the Baltic States, Prussia, Mecklenburg, Russia, Austria, and Hungary, did not primarily consist in the fact that the latter were independent of foreign trade, since they also had exports. It consisted, rather, in the fact that, from the standpoint of the Continental System, the industrial life of the two groups of countries was affected quite differently by the blockade. The industrial countries, on the one side, found obstacles placed in the way of their supply of raw materials; but, on the other hand, owing to the strangling of British supply, they increased the possibilities of sale for their own manufactures outside of France and Italy. It was as regards sales that the agrarian countries were more or less hard hit, partly through the general obstacles in the way of navigation, which offered almost the only possibility for the conveyance of their bulky goods, and partly also through the prohibition of intercourse with Great Britain, who was their chief buyer. Owing to the tendency of the Continental System to render difficult only imports into the Continent, however, the effect of this factor was considerably diminished for the countries producing raw materials and corn. For instance, it practically did not make itself felt in Mecklenburg during this first period. But, as will be explained more fully later on in this book, Napoleon's attitude toward the supplying of England with foodstuffs was so opportunistic, that it is not worth while to attempt to draw any conclusions in principle as to the results that might have ensued. So much may be asserted, however: the difficulties of the agrarian countries were due, not to Napoleon's deliberate intention to cut off England from the supply of foodstuffs or raw materials, but to his very well-grounded apprehension that an export to England from countries which were not directly under his sway would give rise to the importation of colonial goods and English manufactures. In this way, primarily, the situation for both Prussia and Russia is explained. During the second period of the Continental System, it is true, the difficulties for the agrarian countries were increased; but that was because all maritime trade within Napoleon's sphere of power was now made dependent on French licences, that is to say, on the Emperor's need of money or his favour. The particular ill-will with which the Continental System was manifestly regarded in the agrarian countries is explained less by the actual damage it did to the economic life of those countries than by the fact that the policy did not contain any protectionist elements, and consequently did not offer the popular imagination any compensation whatever for the incessant and intensely irritating intervention that it caused.

    As regards all the continental states within Napoleon's realm of power, the Continental System had a restrictive effect on exports by throwing difficulties in the way of imports, which it is the sole business of exports to pay for. One may also express the matter in this way: increased self-sufficiency must diminish the need of exports by diminishing imports. The only reasonably conceivable exception from this might be if in any case imports by land increased more than imports by sea diminished; and it is not impossible that the greatly extended intercourse of Saxony with Eastern Europe led to such a result.