The Turgot Collection

Letter to l’Abbé Terray on the “Marque des Fers”

Readers will not be surprised to learn that Turgot strongly opposes duties on iron. (The “marque des fers” mentioned in the letter is a duty on iron.) The only way to attain prosperity is to have unlimited freedom of trade. Opponents of free trade claim that restrictions will benefit home products at the expense of foreigners. These contentions are just an excuse by those who are attempting to secure a monopoly position at the expense of consumers. Those who claim to gain by restrictions ignore the fact that they lose as consumers when other people use restrictive measures to their own advantage. Even if one disregards the general argument for free trade, there is still excellent reason to avoid a duty on iron. If restrictions have to be imposed, they should be on consumption goods rather than on a commodity such as iron, which is essential for the production of numerous goods. A duty on iron would have a bad effect on the entire economy.