Yet if the financial burdens could hardly be carried by the French, Dutch, and British, the three richest peoples of Europe, how could they be borne by far poorer states?
The simple answer to this question was that they couldn’t. Even Frederick the Great’s Prussia, which drew much of its revenues from the extensive, well-husbanded royal domains and monopolies, could not meet the demands of the War of the Austrian Succession and Seven Years War without recourse to three ‘extraordinary’ sources of income: profits from debasement of the coinage; plunder from neighbouring states such as Saxony and Mecklenburg; and, after 1757, considerable subsidies from its richer ally, Britain. For the less efficient and more decentralized Habsburg Empire, the problems of paying for war were immense; but it is difficult to believe that the situation was any better in Russia or in Spain, where the prospects for raising monies – other than by further squeezes upon the peasantry and the underdeveloped middle classes – were not promising. With so many orders (e.g. Hungarian nobility, Spanish clergy) claiming exemptions under the anciens régimes, even the invention of elaborate indirect taxes, debasements of the currency, and the printing of paper money were hardly sufficient to maintain the elaborate armies and courts in peacetime; and while the onset of war led to extraordinary fiscal measures for the national emergency, it also meant that increasing reliance had to be placed upon the western European money markets or, better still, direct subsidies from London, Amsterdam, or Paris which could then be used to buy mercenaries and supplies. Pas d’argent, pas de Suisses may have been a slogan for Renaissance princes, but it was still an unavoidable fact of life even in Frederician and Napoleonic times.21
This is not to say, however, that the financial element always determined the fate of nations in these eighteenth-century wars. Amsterdam was for much of this period the greatest financial centre of the world, yet that alone could not prevent the United Provinces’ demise as a leading power; conversely, Russia was economically backward and its government relatively starved of capital, yet the country’s influence and might in European affairs grew steadily. To explain that seeming discrepancy, it is necessary to give equal attention to the second important conditioning factor, the influence of geography upon national strategy.
Because of the inherently competitive nature of European power politics and volatility of alliance relationships throughout the eighteenth century, rival states often encountered remarkably different circumstances – and sometimes extreme variations of fortune – from one major conflict to the next. Secret treaties and ‘diplomatic revolutions’ produced changing conglomerations of powers, and in consequence fairly frequent shifts in the European equilibrium, both military and naval. While this naturally caused great reliance to be placed upon the expertise of a nation’s diplomats, not to mention the efficiency of its armed forces, it also pointed to the significance of the geographical factor. What is meant by that term is not merely such elements as a country’s climate, raw materials, fertility of agriculture, and access to trade routes – important though they all were to its overall prosperity – but rather the critical issue of strategical location during these multilateral wars. Was a particular nation able to concentrate its energies upon one front, or did it have to fight on several? Did it share common borders with weak states, or powerful ones? Was it chiefly a land power, a sea power, or a hybrid – and what advantages and disadvantages did that bring? Could it easily pull out of a great war in central Europe if it wished to? Could it secure additional resources from overseas?
The fate of the United Provinces in this period provides a good example of the influences of geography upon politics. In the early seventeenth century it possessed many of the domestic ingredients for national growth – a flourishing economy, social stability, a well-trained army, and a powerful navy; and it had not then seemed disadvantaged by geography. On the contrary, its river network provided a barrier (at least to some extent) against Spanish forces, and its North Sea position gave it easy access to the rich herring fisheries. But a century later, the Dutch were struggling to hold their own against a number of rivals. The adoption of mercantilist policies by Cromwell’s England and Colbert’s France hurt Dutch commerce and shipping. For all the tactical brilliance of commanders like Tromp and de Ruyter, Dutch merchantmen in the naval wars against England had either to run the gauntlet of the Channel route or to take the longer and stormier route around Scotland, which (like their herring fisheries) was still open to attack in the North Sea; the prevailing westerly winds gave the battle advantage to the English admirals; and the shallow waters off Holland restricted the draught – and ultimately the size and power – of the Dutch warships.22 In the same way as its trade with the Americas and Indies became increasingly exposed to the workings of British sea power, so, too, was its Baltic entrepôt commerce – one of the very foundations of its early prosperity – eroded by the Swedes and other local rivals. Although the Dutch might temporarily reassert themselves by the dispatch of a large battle fleet to a threatened point, there was no way in which they could permanently preserve their extended and vulnerable interests in distant seas.
This dilemma was made worse by Dutch vulnerability to the landward threat from Louis XIV’s France from the late 1660s onwards. Since this danger was even greater than that posed by Spain a century earlier, the Dutch were forced to expand their own army (it was 93,000 strong by 1693) and to devote ever more resources to garrisoning the southern border fortresses. This drain upon Dutch energies was twofold: it diverted vast amounts of money into military expenditures, producing the upward spiral in war debts, interest repayments, increased excise duties, and high wages that undercut the nation’s commercial competitiveness in the long term; and it caused a severe loss of life during wartime to a population which, at about two million, was curiously static throughout this entire period. Hence the justifiable alarm, during the fierce toe-to-toe battles of the War of Spanish Succession (1702–13), at the heavy losses caused by Marlborough’s willingness to launch the Anglo-Dutch armies into bloody frontal assaults against the French.23
The English alliance which William III had cemented in 1689 was simultaneously the saving of the United Provinces and a substantial contributory factor in its decline as an independent Great Power – in rather the same way in which, over two hundred years later, Lend-Lease and the United States alliance would both rescue and help undermine a British Empire which was fighting for survival under Marlborough’s distant relative Winston Churchill. The inadequacy of Dutch resources in the various wars against France between 1688 and 1748 meant that they needed to concentrate about three-quarters of defence expenditures upon the military, thus neglecting their fleet – whereas the British assumed an increasing share of the maritime and colonial campaigns, and of the commercial benefits therefrom. As London and Bristol merchants flourished, so, to put it crudely, Amsterdam traders suffered. This was exacerbated by the frequent British efforts to prevent all trade with France in wartime, in contrast to the Dutch wish to maintain such profitable links – a reflection of how much more involved with (and therefore dependent upon) external commerce and finance the United Provinces were throughout this period, whereas the British economy was still relatively self-sufficient. Even when, by the Seven Years War, the United Provinces had escaped into neutrality, it availed them little, for an overweening Royal Navy, refusing to accept the doctrine of ‘free ships, free goods’, was determined to block France’s overseas commerce from being carried in neutral bottoms.24 The Anglo-Dutch diplomatic quarrel of 1758–9 over this question was repeated during the early years of the American Revolutionary War and eventually led to open hostilities after 1780, which did nothing to help the seaborne commerce of either Britain or the United Provinces. By the time of the French Revolutionary and Napoleonic struggles, the Dutch found themselves ground ever more between Britain and France, suffering from widespread debt repudiations, affected by domestic fissures, and losing colonies and overseas trade in a global contest which they could neither avoid nor take advantage of. In such circumstances, financial expertise and reliance upon ‘surplus capital’ was simply not enough.