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Hayek makes the distinction of the two separate traditions of liberty:

Though freedom is not a state of nature but an artifact of civilization, it did not arise from design. The institutions of freedom, like everything freedom has created, were not established because people foresaw the benefits they would bring. But, once its advantages were recognized, men began to perfect and extend the reign of freedom and, for that purpose, to inquire how a free society worked. This development of a theory of liberty took place mainly in the eighteenth century. It began in two countries, England and France. The first of these knew liberty; the second did not.
As a result, we have had to the present day two different traditions in the theory of liberty: one empirical and unsystematic, the other speculative and rationalistic –the first based on an interpretation of traditions and institutions which had spontaneously grown up and were but imperfectly understood, the second aiming at the construction of a utopia, which has often been tried but never successfully. Nevertheless, it has been the rationalistic, plausible, and apparently logical argument of the French tradition, with its flattering assumptions about the unlimited powers of human reason, that has progressively gained influence, while the less articulate and less explicit tradition of English freedom has been on the decline.
This distinction is obscured by the fact that what we have called the “French tradition” of liberty arose largely from an attempt to interpret British institutions and that the conceptions which other countries formed of British institutions were based mainly on their descriptions by French writers. The two traditions became finally confused when they merged in the liberal movement of the nineteenth century and when even leading British liberals drew as much on the French as on the British tradition. It was, in the end, the victory of the Benthamite Philosophical Radicals over the Whigs in England that concealed the fundamental difference which in more recent years has reappeared as the conflict between liberal democracy and “social” or totalitarian democracy.
This difference was better understood a hundred years ago than it is today. In the year of the European revolutions in which the two traditions merged, the contract between “Anglican” and “Gallican” liberty was still clearly described by an eminent German-American political philosopher. “Gallican Liberty,” wrote Francis Lieber in 1848, “is sought in the government, and according to an Anglican point of view, it is looked for in the wrong place, where it cannot be found. Necessary consequences of the Gallican view are, that the French look for the highest degree of political civilization in organization, that is, in the highest degree of interference by public power. The question whether this interference be despotism or liberty is decided solely by the fact who interferes, and for the benefit of which class the interference takes place, while according to the Anglican view this interference would always be either absolutism or aristocracy, and the present dictatorship of the ouvriers would appear to us an uncompromising aristocracy of the ouvriers.”
Since this was written, the French tradition has everywhere progressively displaced the English. To disentangle the two traditions it is necessary to look at the relatively pure forms in which they appeared in the eighteenth century.
What we have called the “British Tradition” was made explicit mainly by a group of Scottish moral philosophers led by David Hume, Adam Smith and Adam Ferguson, seconded by their English contemporaries Josiah Tucker, Edmund Burke and William Paley, and drawing largely on a tradition rooted in the jurisprudence of the common law. Opposed to them was the tradition of the French Enlightenment, deeply imbued with Cartesian rationalism: the Encyclopedists and Rousseau, the Physiocrats and Condorcet, are their best know representatives. Of course, the division does not fully coincide with national boundaries. Frenchmen, like Montesquieu and, later, Benjamin Constant and, above all, Alexis de Tocqueville are probably nearer to what we have called the “British” than to the “French” tradition. And in Thomas Hobbes, Britain as provided at least on eve of the founders of rationalist tradition, not to speak of a whole generation of enthusiasts for the French Revolution, like Godwin, Priestly, Price, and Paine, who (like Jefferson after his stay in France) belong entirely to it.
2. Though these two groups are now commonly lumped together as ancestors of modern liberalism, there is hardly a greater contrast imaginable than that between their respective conceptions of the evolution and functioning of a social order and the role played in it by liberty. The difference is directly traceable to the predominance of an essentially empiricist view of the world in England and a rationalist approach in France. The main contrast in the practical conclusions to which these approaches led has recently been put, as follows: “One finds the essence of freedom in spontaneity and the absence of coercion, the other believes it to be realized only in the pursuit and attainment of an absolute collective purpose”, and “one stands for organic, slow, half-conscious growth, the other for doctrinaire deliberativeness; one for trail and error procedure, the other for an enforced solely valid pattern.” It is the second view, as J. L. Talmon has shown in an important book from which this description is taken, that has become the origin of totalitarian democracy.
The sweeping success of the political doctrines that stem from the French tradition is probably due to their great appeal to human pride and ambition. But we must not forget that the political conclusions of the two schools derive from the different conceptions of how society works. In this respect, the British philosophers laid the foundations of a profound and essentially valid theory, while the rationalist school was simply and completely wrong.

Historians, lawyers and political scientists have always confused the rationalistic and centralizing aspects of the French tradition for our own.

Our people have had two hundred years for the rationalistic thinking to take hold and subvert the empirical evolved form of liberty. The tried and true of the local state has been subverted to the "logical" or the concept most conforming to a rationalistic ideology. The answers under the rationalistic solution have pointed to utility, uniformity and centralization.

We have done a poor job in understanding what we have inherited -- by definition satisfying the very need for conservative thought.