History is the branch of knowledge that deals systematically with the recording, analyzing and correlating of past events. The intrinsic quality of history is given by John.F.Kennedy, the U.S. president 1961-63, in the following words: “History is a relentless master: it has no present, only the past rushing into the future”.1 ‘Rushing’ lets loose the equilibrating forces and, in that way the past impact the present. As such, knowledge of the past is essential to gain knowledge of the present and also to plan for the future. It is in this context that Economic History as a distinct branch of knowledge has developed in the nineteenth century.The most characteristic feature of the English Classical school was the use of abstract reasoning - deductive method. For instance, Adam Smith was chiefly guided by the universal principle- that of self-interest. “It is not from the benevolence of the butcher, brewer or the baker that we expect our dinner, but from their regard to their own interest”.2 The value of such deductive reasoning depends upon the exactness and validity of the assumption; if the assumptions go wrong, the theories become defective.