How came England, with four millions of people, to enter into a quarter of a century of war with the greatest power in Europe?  The answer is that Spain was already decaying, while England was instinct with the spirit of progress and development.  The contrast grew principally out of the different attitude of the two nations towards the wealth introduced into Europe from America, and towards the hitherto established religion of the Christian world.  While the treasure from Mexico and Peru enabled Charles V. and Philip ii. to carry on great wars and to establish an immense prestige at the different courts of Europe, it created a speculative spirit which drew their subjects away from sober employment.  For this reason manufacturing and agriculture, for which Spain was once so distinguished, were neglected; and the kingdom, thinned of people and decreasing in industry, grew dependent for supplies upon the neighboring countries.[1]

On the other hand, the treasures which destroyed the manufactures of Spain indirectly stimulated those of England.  Without manufactures, Spain had to employ her funds in buying from other countries her clothing, furniture, and all that was necessary for the comfort of her citizens at home or in her colonies in America.  In 1560 not above a twentieth part of the commodities exported to America consisted of Spanish-manufactured fabrics:  all the rest came through the foreign merchants resident in Spain.[2]

Similar differences arose from the attitude of the two kingdoms to religion.  Philip loved to regard himself as the champion of the Catholic church, and he encouraged it to extend its authority in Spain in the most absolute manner.  Spain became the favored home of the Inquisition, and through its terrors the church acquired complete sovereignty over the minds of the people.  Since free thought was impossible, private enterprise gave way to mendicancy and indolence.  It was not long before one-half of the real estate of the realm fell into the hands of the clergy and monastic orders.[3]

In England, on the other hand, Henry viii.’s quarrel with the pope in 1534 gave Protestantism a foothold; and the suppression of the convents and monasteries in 1537-1539 put the possibility of the re-establishment of papal power out of question.  Thus, while the body of the people remained attached to the Catholic church under Edward vi. and Queen Mary, the clergy had no great power, and there was plenty of room for free speech.  Under Elizabeth various causes promoted the growth of Protestantism till it became a permanent ruling principle.  Since its spirit was one of inquiry, private enterprise, instead of being suppressed as in Spain, spread the wings of manufacture and commerce.[4]