vni   PROTECTORATE OF NETHERLANDS: 1584-86   157
seen some amendment in the condition of the country.
Under a pacific and thrifty Government taxation had
been light beyond precedent. All debts, even those
of Henry viil., had been honourably paid off. While
the lord of American gold mines and of the richest
commercial centres in Europe could not raise a loan on
any terms, Elizabeth could borrow when she pleased
at five per cent. But she had ceased to borrow, for
*he had a modest surplus stored in her treasury, a
department of the administration managed under her
own close personal supervision. A numerous militia
had been enrolled and partially trained. Large maga-
zines of arms had been accumulated. A navy had been
created ; not a large one indeed; but it did not need
to be large, for the warship of those days did not differ
from the ordinary vessel of commerce, nor was its
crew differently trained. The royal navy could there-
fore be indefinitely increased if need arose. Philip's
great generals, Alva and Parma, had long come to the
conclusion that the conquest of England would be the
most difficult enterprise their master could undertake.
The wealth of landed proprietors and traders had
increased enormously. New manufactures had been
started by exiles from the Netherlands. New branches
of foreign commerce had been opened up. The poor
were well employed and contented. I "believe it would
be impossible to find in the previous history of Eng-
land, or, for that matter, of Europe, since the fall of
the Roman Empire, any instance of peace, prosperity,
and good government extending over so many years.
Looking abroad we find that in all directions the
strength and security of Elizabeth's position had been