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Writing: A Remedy for the Country

A Remedy for the Country, § 23

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§ 23

With regard to the productive enterprises, which constitute the soul of a society, it is common knowledge that wherever commerce and enterprise are at all free, not only have they in every respect adapted themselves to the present high tale-value but also, in view both of the even higher one to which the daler rose for a time and of the insecurity that every producer has experienced during the daily fluctuations between a higher and lower rate, the prices of most manufactures have risen far above that.

In this respect it is thus all the more uncalled for, with regard to the productive enterprises, to reduce the tale-value of the banknote still further, especially as they already suffer perceptibly from its present one.

And as far as the rights of the Crown to money are concerned, the shortfall that has arisen in that respect has probably already been met by appropriations or under other headings, or will, if urgently required, in a free state, be met in future by the subjects. In the same way, the public officials of the realm, who depend on money-salaries, are entitled to receive a remuneration corresponding to their original salaries but certainly not through the lowering of the tale-value, as that affects the productive occupations, which are the apple of the kingdom’s eye.

I have tried to inform myself from older documents as to how such disadvantages were formerly remedied when the tale-value was raised.

To the same extent that the tale-value and the prices of commodities have been raised from time to time, the revenues of the Crown have also increased, sometimes under the same and sometimes under new headings, so that it has never been possible to regard that as a valid reason to lower the tale-value.

In 1695, King Charles XI asked this very question and requested a report thereon from the Public Finance Board, which on 13 March, among other things, stated the following with regard to it: “Nor is it really probable that His Majesty or the general public will suffer any loss in future even if also 1 daler smt will not be revalued at ⅔ of a riksdaler, as His Majesty will always have a free hand to increase taxes, customs duties, excise duties and other such things, when conditions and circumstances allow and permit it.”

The same matter arose again in 1720 and the following years, on account of the raising of the tale-value that occurred in 1715.

The anonymous author whom I cited above says with particular reference to those who are on money-salaries: “Those who receive their remuneration in the form of grain etc. can benefit reasonably well from the increase, but not the others, as everything consumed as food and maintenance has to be paid for at the raised tale-value, for which it would be fair to compensate them by a salary increase proportionate to the raising of the tale-value. And while that disadvantage can be remedied, it would, on the other hand, be just as unfair to disregard the general and private welfare of the whole country in order to restore the value of the wages of the kingdom’s officials, and no more fair than paying them the same wage in debased as in improved coin.”

It has been proved above that when a financial system is simply based on realities, the matter is resolved, enterprise flourishes and neither native nor foreigner can make an undue profit from the other. It has also been proved that the tale-value of the paper daler is too high, as are, in accord therewith, the prices of all commodities. What, then, is the point of the hazardous measure of reducing the value1 of this daler, disrupting the productive occupations and deliberately repeating all the disorders into which we happen, from carelessness, to have fallen?


  1. the value: Chydenius here probably means “the tale-value”.

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