FREE TRADERS AND PROTECTIONISTS

During the first half of the nineteenth century, free trade made its European breakthrough. For a limited period following the Napoleonic Wars, the mercantilist tarriff-and-rule system was fully restored. However, in the industrial society that was now emerging, with its vibrant activity, increased production, population growth, urbanization, and improved communications, there was no place for economic restrictions. A steadily growing quantity of goods was being permitted to flow more and more freely among peoples.

For a long time, Sweden did not share the economic growth of the Continent. It was a poor, backward agrarian country with a number of restrictive regulations governing trade and business. But a few reforms during the mid-nineteenth century resulted in full economic freedom, even in rural areas. A crucial factor in this development was that the United States and certain European states began to carry out a policy of retaliation toward Sweden's extensive tariff system. Another crucial factor was the intensive economic boom of the 1850s. Prices climbed very rapidly. It became necessary to suspend tariffs on both grains and animal feed. The reform was originally intended as a temporary measure. But circumstances made it permanent.

In theory, the doctrine of free trade was universal.