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Writing: The National Gain

The National Gain, § 27

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§ 27

The Commodity Ordinance prevented foreigners from obtaining any advantage by visiting the smaller staple towns, as they could not dispose of whole cargoes of their own products in them and were not allowed to carry assortments of other goods. Few of these towns were able to freight an entire ship with their own exports, so that they had to be sold in the larger staple towns. The Dutch and the English were no longer permitted to supply them with salt, nor was it worth sailing in ballast to Portugal for that, but it, too, had to be purchased from the larger staple towns.

Is it not remarkable how commerce retreated to a few localities from the rest of the kingdom? The name staple towns was indeed retained, but for most of them the advantage had really been lost.

Our commerce would nevertheless have prospered reasonably well if the foreigners had been allowed to conduct trade freely in the largest towns and to challenge the vested interests in the country through competition. But they have not profited much from that since they were totally excluded from the salt trade, which was then concentrated in the hands of a few citizens who were able to decide whether or not to supply the kingdom with that commodity and at whatever price they wished.

The number of purchasers of our exports was thus reduced. The products remained in the hands of the producers or were sold to the exporters at a loss. The loss forced many owners from their properties, which inevitably fell into the hands of the exporters or made the former tributary to the latter.

In order to redress that evil, the Ironmasters’ Association was founded, which was to advance loans to poor owners of ironworks when the price of iron fell; but as to whether this benefited the poorer or the more affluent ones is common knowledge.

When bank transfer notes began to be issued, ready money began to pour into the Bank. Imports could not then be paid for in money nor any ready money be exported to pay for them, but everything had to be done by means of bills of exchange in return for exports that, to cover the entire commerce of the Crown and the kingdom, were only available from a few individuals, who therefore had complete control over the bills of exchange. Freedom of trade was thus stifled, and I am not sure that one should simply blame individuals for that. Matters were so arranged that freedom would be lost.1

“If Caesar and Pompey”, says Montesquieu, “had thought like Cato, others would no doubt on the contrary have thought like Caesar and Pompey.” And elsewhere he says: “[W]hen one grants titles of honour one knows exactly what one is giving away; but if one also adds power to that, one never knows how far it may be extended.”2


  1. When bank transfer notes began to be issued . . .: note here Chydenius’s interpretation; see Anders Chydenius’s life and work/The Diet of 1765–6
  2. If Caesar and Pompey...: citations are from Considerations on the Causes of the Grandeur and Decadence of the Romans (Considérations sur les causes de la grandeur des Romains et de leur décadence, 1734), ch. 11. Chydenius here quotes the Swedish translation Herr Montesquieus Tankar öfwer orsakerne til de romares wälde och fall, Stockholm, 1755.

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