Add to all this, that the Dutch were the first who established the banking system, (copying in part from the Italians,) on a solid plan.  The advantages that Holland enjoyed were, indeed, all of its own procuring, but they were numerous and inappretiable, without counting the trade to India, of which it enjoyed a greater share than any other nation, for a considerable period.

No nation has shewn, so completely as the Dutch, how exterior enemies may be repelled, and difficulties overcome, while there is a true attention to the real welfare of the country.  The exertions of the Romans, to conquer others, scarcely surpassed those of the Dutch to preserve themselves, when they were in a state of necessity; but, when they became affluent, energy and unanimity left them.  The manufacturers became merchants, and the merchants became agents and carriers; so that the solid sources of riches gradually disappeared.

All this time, taxation increased, and though no nation ever allowed its manners to be less corrupted by the possession of wealth, yet there was a sensible change; but the change in the way of thinking was the most pernicious.  Discontent with the government, and disagreements amongst themselves, completed their misfortunes, while England was [end of page #66] all the time endeavouring to supplant them in the most beneficial sources of their wealth.

The Dutch, fairly sunk by that rivalship, and natural change of things, which transfers the seat of wealth and commerce from one nation to another.  There was no violent revolution, no invasion by an enemy; it was the silent operation of that cause of decline, which has been already mentioned in the Second Chapter, and will be farther and more particularly illustrated and explained.

The Dutch had a superabundance of capital; the interest of money was low; and wealth had begun to leave Holland long before the symptoms of decay became visible; by which means, the trade of other countries was encouraged, and, as always will be the case, capital emigrated, the moment it could find secure employment, and greater profits than were to be obtained at home.  The leading causes of the decline of Holland may be distinguished thus: 

The taxes were gradually increasing.

Its superiority in manufactures over other countries was continually diminishing; consequently, industry was not so well rewarded, and less active.

The merchants preferred safe agencies for foreigners to trading on their own bottom, thereby lending their credit.

Dutch capital was employed to purchase goods in one country and sell them in another:  so that the Dutch became carriers for others, instead of manufacturing and carrying for themselves.

The trade to India, and the banking business, were both taken up by other nations; so that Holland then lost her superiority in these branches.