In 1928 Hans Proesler, whom we shall meet in the course of this study, assumed the presidency, that is, became the Rector, of what can 1928 Hans Proesler, whom we shall meet in the course of thisbe described as the Niirnberg school of economics (Hochschule für Wirtschafts- und Sozialwissenschaften). The address he delivered on that occasion can properly serve as the starting point for my own presentation, for it dealt with German economic history, its development and problems. In his talk Proesler pointed out that it was the eighteenth-century enlightenment that opened the road to economic history by assigning to studies pointing in this direction a niche in the lecture hall of general cultural history. In Germany such men as Justus Möser, Gottfried Herder, and some members of the then-famous Göttingen school of historians, Schlözer, Gatterer, Heeren, von Anton, and Fischer, are considered by the historian of economic and social history as having stood at the cradle. Although German Romanticism had done much for historiography in general, its role for economic history was very limited. Romanticist historians were not primarily interested in things economic, although in the frame of legal and constitutional history on the one hand, and in connection with classical studies on the other, scholars of that period and the decades following made contributions to this field of knowledge. I might mention Savigny, Eich-horn, Waitz, Böckh, Otfried Müller, Mommsen; and a few minor figures, such as Hüllmann and Hannssen, even devoted themselves to special problems in the area, that is, financial and agrarian history, respectively. Georg von Below, the renowned German historian, treating Proesler's topic a few years before the latter, emphasized the contribution of the Prussian archivist, Georg Wilhelm von Raumer (1806-1856). Not only did the latter take an interest in matters economic but his ideas even tended toward what we would today call a materialistic interpretation of history.

Revolutionary developments in transport have been an essential feature of the rapiddevelopments in transportgrowth of the past two centuries. Reduction in the cost of carriage has enabled specialization and division of labor on a national and international basis to replace the relatively self-sufficient economies that predominated in the western world two centuries ago. The striking role of the railroad in the nineteenth century is well known. However, it was water transport in which the bulk shipment of commodities began, and it was the development of ocean shipping that was an integral aspect of die growing economic interdependence of the western world, the opening up of the undeveloped continents, and the promotion of the settlement of the “empty lands.” The declining cost of ocean transportation was a process of widening the resource base of the western world. The agriculture of new countries was stimulated (and that of old countries at least temporarily depressed), the specter of famine as a result of crop failure reduced, and the raw materials were provided for industrialization. In short, the radical decline in ocean freight rates was an important part of the redirection of the resources of the western world in the course of the vast development of die past two centuries.

The opening of the Suez Canal took place in a century crowded revolutionary changes in the shipping world. In sharp contrast to the slow pace of change and development in the preceding era, major changes occurred in almost every sector of the shipping industry in the nineteenth century. While many of the new departures can be explained, at least in part, by the application of the techniques of the Industrial Revolution to shipping, the opening of Suez went far to accelerate and give direction to these changes. The canal significantly altered shipbuilding techniques and practices and contributed to the precipitous decline in the importance of the sailing ship as a major world carrier. Suez helped to bring about die realignment and relative decline of the European entrepot trade. And the new channel led to significant shifts in the patterns of Eastern and Australasian trade.