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Writing: The National Gain

The National Gain, § 6

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§ 6

For example, if an ironworks producing 2,000 skeppund of wrought iron per year should have a hundred farmers subordinate to it, each contracted to perform 50 days of labour annually for the works but for 1 daler kmt less than they could earn working either for themselves or elsewhere, in order that the export commodity could be sold abroad with some advantage, it is clear that each farmer thus loses 50 daler kmt a year or, in other words, produces goods to a value of 50 daler less than by other work, which will constitute a loss to the nation of 5,000 daler.

If the same ironworks should also have a few hundred farmers subordinate to it who were obliged to supply it with the charcoal required for its operations, for example 3,500 stigar, either for a sum of daler agreed to at some earlier time or else for whatever the proprietor of the works is willing to pay, for example 6 daler kmt less for each stig than they could have earned in other ways during the same time – even granted that the proprietor of the works is unable to pay more for this commodity if he is to be able to sell the iron abroad at some profit – but the farmers had nevertheless been able, during the time that they have spent producing the charcoal, to make up the loss that they incur on every stig of charcoal, namely by producing goods for 21,000 daler kmt more in farming, crafts and weaving or some other line of business, it will be obvious that the loss to the nation will thereby be increased by the same amount. If, in addition, we add the almost irreplaceable loss of the best forests in the kingdom, which after some time could have supplied us with all kinds of woodworking materials and timber, allowing ten loads of fire-logs for every large stig of charcoal, then 35,000 loads of wood are required for these 2,000 skeppund of bar iron from when the ore is extracted from the mine until the iron is hammered out into bars, which, reckoned at only 16 öre per load, will increase the loss by 17,500 daler, thus creating an overall loss of 43,500 daler kmt.

If those 2,000 skeppund were to be sold at an average price of 6 riksdaler banco per skeppund, excluding freight, and, at an 80-mark exchange rate, brought in 240,000 copper daler, then it is clear that rather more than a fifth of that sum will constitute a loss to the nation, even if the entire amount is sold to foreigners.

 

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