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8
Why Do Economies Grow?
Chapter Summary
In this chapter, we explore the mechanisms of economic growth. Although economists do not have a
complete understanding of what leads to growth, they regard increases in capital per worker,
technological progress, human capital, and governmental institutions as key factors. In this chapter, we
discuss these factors in detail. Here are the main points of the chapter:
• Per capita GDP varies greatly throughout the world. Whether poorer countries in the world are
converging with richer countries is subject to lively debate.
• Economies grow through two basic mechanisms: capital deepening and technological progress.
Capital deepening is an increase in capital per worker. Technological progress is an increase in
output with no additional increases in inputs.
• Ongoing technological progress will lead to sustained economic growth.
• A variety of theories attempt to explain the origins of technological progress and determine how we
can promote it. These theories include spending on research and development, creative destruction,
the scale of the market, induced inventions, and education and the accumulation of knowledge.
• Governments can play a key role in designing institutions that promote economic growth.
• Investments in human capital are a key component of economic growth.
Learning Objectives:
1. Calculate economic growth rates.
2. Explain the role of capital in economic growth.
3. Apply growth accounting to measure technological progress.
4. Discuss the sources of technological progress.
5. Assess the role of government in assisting economic growth.
Approaching the Material
Continuing the theme of making economics personal, focus as much as you can on human capital and its
effects on the economy. Students will be able to relate to how investing in themselves—education,
training, new skill sets—will increase their ability to be more productive and earn more money. If the
students understand this, you can then relate how economies are made up of individuals who become
more productive. You can now add in capital goods and technological changes to explain growth.
Chapter Outline
Capital deepening = increases in the stock of capital per worker.
Technological Progress = more efficient ways of organizing economic affairs that allow an economy to
increase output without increasing inputs.
Human Capital = the knowledge and skills acquired by a worker through education and experience and
used to produce goods and services.
8.1 Economic Growth Rates
A. Review
1. GDP measures the total value of final goods and services produced in a country. But it does
not adjust for size of a country.
2. Real GDP per capita is the gross domestic product per person adjusted for changes in
constant prices. It is the usual measure of living standards across time and between countries.
B. Measuring Economic Growth
1. Growth rates measure percentage rate of change of a variable from one period to another
using the following formula:
( )
( )
GDP in year 2 GDP in year 1
growth rate
GDP in year 1
−
=
2. The rule of 70 is a rule of thumb that says output will double in 70/x years, where x is the
percentage rate of growth.
 Teaching Tip
This is a good point to look at some examples of what this implies. Suppose your income
went up by 3 percent a year. This implies your income will double in 23.33 years. But
increasing that to 5 percent drops the doubling time to 14 years.
C. Comparing the Growth Rates of Various Countries
1. Comparing GDP across countries is difficult.
a. Different currencies
b. Different consumption patterns
2. Some economists have accounted for variations in the cost of living in different countries by:
a. Collecting vast amounts of data on prices of comparable goods
i. Same good
ii. Same quality
b. Using the prices of all these goods to adjust all prices in other countries to equivalent
U.S. prices
D. Are the Poor Catching Up?
1. The very poor countries have extremely low figures.
 Teaching Tip
GDP in poor countries may be underestimated because most poor farmers consume their
production instead of selling it, and therefore, it is not included in GDP.
2. Growth rates vary quite dramatically across countries:
3. Convergence is the process by which poorer countries close the gap with richer countries in
terms of real GDP per capita. Is there convergence, i.e., do poorer countries close the gap by
growing faster?
a. Evidence in favor of convergence is clear in developed economies.
b. For less-developed countries, the picture is less clear.
c. All in all, economists find only weak evidence in favor of convergence.
Review this key question and the related application:
Question 1: How may global warming affect economic growth?
APPLICATION 1: GLOBAL WARMING, RICH COUNTRIES, AND POOR COUNTRIES
This Application explains how though many people believe that global warming will hurt economic
development, research shows that the effects are more complex. Recent research by economists
Melissa Dell, Benjamin Jones, and Benjamin Olken provides some useful insights. These include: If
global warming can be deferred sufficiently far into the future, poorer countries will have opportunities to
develop and perhaps be less subject to global warming trends. However, if global warming occurs
relatively soon, then poor countries are likely to be adversely affected.
Review this key question and the related application:
Question 2: Is there a necessary trade-off between equality and growth?
APPLICATION 2: ECONOMIC EQUALITY MAY SUSTAIN ECONOMIC GROWTH
Recent research suggests that more equality may be beneficial to economic growth. An explanation may
be that governments are better able to make difficult choices to sustain growth when there is more
equality. Other factors include the quality of political institutions and the economy’s openness to trade.
8.2 Capital Deepening
One of the most important mechanisms for economic growth is an increase in capital per worker.
A. Recall from last chapter, that an increase in capital increases output even if labor does not change.
1. Additional capital shifts the production function up, increasing output.
2. Additional capital shifts labor demand out, increasing real wages.
3. An economy produces more per worker with more capital.
 Teaching Tip
One easily understandable example is four people digging a hole. First, dig with their
hands (no capital). Next, add a shovel and see what happens to output per worker. Now
add another shovel and so on. This shows explicitly how output per worker rises as you
increase capital per worker.
B. Saving and Investment
The simple model of capital deepening looks at the relationship between saving (income that is
not consumed) and investment.
1. Simple example of capital deepening
a. Consider an economy with constant population, full employment, no government, and no
foreign sector.
b. Output is purchased for consumption or investment, and income is either consumed or
saved.
i. C + I = C + S
ii. S = I
c. The stock of capital depends on two factors: gross investment and depreciation.
▪ Kt+1 = Kt + It
▪ Depreciated Capital = Kt + Net investment
d. Higher savings, i.e., higher investment, increases the capital stock, i.e., creates capital
deepening.
C. How Do Population Growth, Government, and Trade Affect Capital Deepening?
1. Population growth: A larger labor force increases total output. But with a fixed capital stock,
output goes up at a decreasing rate as it lowers output per worker.
2. India has the world’s second largest population. But due to diminishing returns, output per
capita in India is very low.
Remind students of the following key principle:
KEY PRINCIPLE: PRINCIPLE OF DIMINISHING RETURNS
Suppose that output is produced with two or more inputs and that we increase one input while holding the
other inputs fixed. Beyond some point—called the point of diminishing returns—output will increase at a
decreasing rate.
 Teaching Tip
Discuss the relationship between population and economic growth here—simply producing
enough to feed a large population leaves little room for producing capital goods.
3. Government spending and taxation: suppose the government increases taxes to spend more
on noninvestment goods and services.
a. Higher taxes → lower income → lower private savings → lower investment → less
capital deepening
b. If the government spent the revenue on investment goods and services → more capital
deepening
4. Foreign sector: A trade deficit made up of capital goods increases capital deepening.
5. Capital deepening has limits because of the principle of diminishing returns.
a. With a fixed labor force, an increase in capital increases output at a decreasing rate.
b. Since savings is related to output, savings increases at a decreasing rate.
c. However, if capital depreciates, an increase in the capital stock increases depreciation.
See the appendix to this chapter for discussion of Solow growth model and the
relationship between gross investment and depreciation.
d. There is a natural point where gross investment is equal to depreciation. K cannot
increase above this point; higher savings rates increase investment, but higher capital
increases depreciation more.
8.3 The Key Role of Technological Progress
A. Technological progress is when an economy operates more efficiently by producing more output
without using more inputs.
1. Invention of the light bulb, thermometer, disposable diapers, etc.
2. New ideas making us more effective
 Teaching Tip
A good example of a new idea is electricity. Not just the invention of electricity, but how
it allowed factories to be reconfigured due to having the ability to move power around a
factory easily.
B. How do we measure technological progress?
1. Recall the production function: Y = F(K, L)
2. Robert Solow, a Nobel laureate from M.I.T., added a measure of technological progress, A:
a. Y = F(K, L, A)
3. Growth accounting is a method to determine the contribution to economic growth from
increased capital, labor, and technological progress.
a. We observe Y, K, and L over time in most economies.
b. How much of the change in Y is due to changes in K and changes in L? Whatever growth
is left over must be due to A. This is called growth accounting.
C. Using Growth Accounting
1. Growth accounting can be used to understand different aspects of economic growth.
2. Look at the following applications for examples.
3. Labor productivity is the output produced per hour of work.
Review this key question and the related application:
Question 3: How can we use economic analysis to understand the source of
growth in different countries?
APPLICATION 3: SOURCES OF GROWTH IN CHINA AND INDIA
China grew at a rate of 9.3 percent while India grew at a rate of 5.4 percent. Employment grew at
2 percent per year in both countries so the difference must be attributed to capital deepening and
technological progress. In particular China’s more rapid growth can be attributed to a more rapid
accumulation of physical capital and more rapid technological progress.
Review this key question and the related application:
Question 4: How do you measure the technological revolution?
APPLICATION 4: GROWTH ACCOUNTING AND INTANGIBLE CAPITAL
Economists have created a measure of “intangible” capital based on expenditures on research and
development, marketing, design, and customer support. Intangible capital is an important source of
economic growth. It has exceeded the contribution from traditional or tangible capital in recent years.
8.4 What Causes Technological Progress?
A. Research and development funding
B. Monopolies that spur innovation: Creative destruction is the view that a firm will try to come up
with new products and more efficient ways to produce products to earn monopoly profits.
1. Without the ability to reap the rewards of innovation, a company will not fund research and
development.
2. The government grants patents to allow for temporary monopolies for 20 years.
C. The scale of the market: If markets are too small, there are not enough incentives to engage in
technological progress.
D. Induced innovations: Many innovations are the result of a need to cut cost.
E. Education, Human Capital, and the accumulation of knowledge: Increasing the investment in
human capital increases the productivity of the labor force.
F. New growth theory: modern theories of growth that try to explain the origins of technological
progress.
Review this key question and the related application:
Question 5: How do varying political institutions affect economic growth?
APPLICATION 5: THE ROLE OF POLITICAL FACTORS IN ECONOMIC GROWTH
This Application discusses how economist Daron Acemoglu of the Massachusetts Institute of Technology
has written extensively about the role of political institutions and economic growth. Acemoglu
distinguishes broadly between two types of political institutions: authoritarian institutions, such as
monarchies, dictatorships, or tightly controlled oligarchies, and participatory institutions, such as
constitutionally limited monarchies and democracies. History has witnessed growth under both types of
regimes. This research shows that transformative economic growth requires participatory institutions.
 Teaching Tip
Now might be a good time to revisit production possibility curves, pointing out that poor
countries have to devote most of their production capacity to food production, which
leaves few resources for anything else. Therefore, they are not producing much capital,
and the production possibilities curve does not move out over time.
Review this key question and the related application:
Question 6: Did culture or evolution spark the Industrial Revolution?
APPLICATION 6: CULTURE, EVOLUTION, AND ECONOMIC GROWTH
In studying the economic history of England before the industrial revolution, Professor Gregory Clark
found that the children of the more affluent were more likely to survive. Over time, they became a larger
and larger portion of the population, bringing their social virtues such as thrift and hard work with them.
This created a society more likely to embrace changes in science and technology, making the Industrial
Revolution more likely.
8.5 A Key Governmental Role: Providing the Correct Incentives and Property
Rights
A. Governments play a critical role in a market economy by ensuring that contracts are upheld and
that property rights are enforced.
B. This allows businesses and individuals to enter into economic transactions.
C. Without this, people are reluctant to trade and the incentive to innovate is muted.
 Teaching Tip
World War II is a classic example of how war destroys the capital stock of a country and
reduces its productive capacity. Explain to the students how much of the capital stock of
Germany and Japan was destroyed during the war. With the help of the United States,
huge investments of new capital took place in both countries leading to tremendous rates
of economic growth in both countries. A discussion point with the students would be
what is going to happen in post-war Iraq.
Review this key question and the related application:
Question 7: Why are clear property rights important for economic growth in
developing countries?
APPLICATION 7: LACK OF PROPERTY RIGHTS HINDERS GROWTH IN PERU
The Application points out that in many South American cities, the poor live in slums without any clear
title to the real estate they occupy. A Peruvian economist, Hernando DeSoto, points out that without clear
property rights, people are not willing to make long-term investments. Perhaps more importantly, they are
unable to use property to borrow money.
Additional Applications to Use in Class
Question: How is direct impact different than total impact?
ADDITIONAL APPLICATION: DEM CONVENTION BOOSTS DENVER MERCHANTS
Briggs, Bill
“Dem Convention Boosts Denver Merchants”
Posted 8/28/2008 on MSNBC.com
MSNBC
Summary: Key Points in the Article
Denver business owners are smiling all the way to the bank after the Democratic National Convention
(DNC). While several economists predict large gains from conventions others point out the local
customers are often “crowded out” and negate the convention sales. Previous political convention cities
back up the crowding-out theory. Boston, host of the 2004 DNC, posted a $150 million direct impact
from the convention. However, subsequent studies indicated the impact was closer to $15 million after
factoring in spending declines from locals and regular tourism.
However Denver points out that Boston’s mayor asked locals to stay home to relieve congestion whereas
Denver’s mayor asked locals to come into town and participate. A full house in every restaurant and bar
coupled with record sales appears to vindicate Denver’s strategy. Critics still maintain that time will tell
and when the numbers shake out the convention’s impact will not be the $160 million that Denver’s
promoters promised. Proponents maintain they may be right…it may be even higher.
Analyzing the News
More customers mean more unit sales and higher prices. Some businesses such as local hotels actually
took the forecasts to heart and more than doubled their room rates. With occupancy at 100 percent, it is
easy to see that their revenues and profits increased at least for that week.
Thinking Critically Questions
1. How can hotels increase their room rates and increase profits?
2. What is “crowding out” in this sense?
3. How is direct impact different than total impact?
Question: How can privatizing help some countries?
ADDITIONAL APPLICATION: NATIONAL TREASURE
Victor, David G
“National Treasure”
Posted 4/17/2008 on Newsweek
Summary: Key Points in the Article
This article uses Mexico’s state run oil company, Pemex, as a case study into why we should fear
continued high prices for oil. Pemex has been, and continues to be, a cash cow for the Mexican
government. However, the government’s short-sighted approach has been to limit exploration and overall
investment in Pemex and use the profits for other government interests. The company currently accounts
for about 40 percent of Mexican government income.
Now Pemex’s aging technology and existing oil fields are in decline and are impossible to fix given the
political handcuffs the company faces. Managers are hampered by laws that won’t allow external
investors and political parties that have their own short-term interests in mind.
Mexico’s plight seems ridiculous to most capitalists who understand risk taking and the potential rewards
in the oil business, but the country’s approach is not isolated. Brazil, Kuwait, Venezuela, and other oil-
rich countries seem bent on making decisions that hamper the global supply of oil. With two-thirds of the
planet’s oil controlled by various governments, it doesn’t appear that supply issues will be resolved any
time soon as demand for oil continues to escalate.
Analyzing the News
Note that oil prices, like any other commodity, will continue to rise as long as demand increases are not
met with increases in supply. And, if the author David Victor is right, supply may decrease as fields and
technologies continue to age without additional investment.
Thinking Critically Questions
1. Why are the governments allowing the oil fields to decline?
2. Why do the people in these countries allow these short-sighted approaches to continue?
3. How would privatizing help these countries?
Appendix to Chapter 8: A Model of Capital Deepening
The chapter alludes to the relationships between saving, depreciation, and capital deepening. The
appendix presents a simple model of capital deepening that shows explicitly the links between saving,
depreciation, and capital deepening. The model helps us to understand more fully the critical role that
technological progress must play in economic growth. The main points of the appendix are:
• Capital deepening, leading to economic growth and increased real wages, will occur as long as
total saving exceeds depreciation.
• Eventually the process of capital deepening will come to a halt as depreciation catches up with
total saving.
• A higher saving rate will promote capital deepening, but eventually the economic growth comes
to an end as the economy reaches the new equilibrium.
• Technological progress not only directly raises output, but it also allows capital deepening to
occur.
8.1A A Model of Capital Deepening
A. Simple model of capital deepening to focus on the relationships between savings, depreciation,
and capital deepening developed by Robert Solow.
B. Look at Figure 8A.1 showing the production function. Recall that it exhibits the principle of
diminishing returns.
Remind students of the following key principle:
KEY PRINCIPLE: PRINCIPLE OF DIMINISHING RETURNS
Suppose that output is produced with two or more inputs and that we increase one input while holding the
other inputs fixed. Beyond some point—called the point of diminishing returns—output will increase at a
decreasing rate.
C. Assumptions of the Growth Model
1. Savings is a constant proportion of income and without government or a foreign sector,
savings equals investment. Thus, investment is a constant proportion of income.
2. Capital depreciates at a constant rate.
D. Finally, look at changes in the stock of capital:
1. Savings (= sY) increases capital
2. Depreciation (= dK) decreases capital
3. So, the change in the stock of capital = sY – dK
E. Now look at Figure 8A.3 which shows all of the relevant relationships together.
1. At K0, dK < sY, which means that the capital stock is growing.
2. This is also true at K1.
3. So, K continues growing until K = K*.
4. If K > K*, dK > sY and the capital stock decreases until K = K*.
5. K* is the long-run equilibrium capital stock.
F. Figure 8A.4 shows what happens if the savings rate rises.
1. Higher s leads to an increase in K and thus an increase in Y.
G. What happens with technological progress?
1. Better technology leads to an increase in K and thus an increase in Y.
H. Summary of Basic Points of Solow Model (directly from the appendix)
1. Capital deepening, an increase in the stock of capital per worker, will occur as long as total
saving exceeds depreciation. As capital deepening occurs, there will be economic growth and
increased real wages.
2. Eventually, the process of capital deepening will come to a halt as depreciation catches up
with total saving.
3. A higher saving rate will promote capital deepening. If a country saves more, it will have a
higher output. But eventually, the process of economic growth through capital deepening
alone comes to an end, even though this may take decades to occur.
4. Technological progress not only directly raises output, but also it allows capital deepening to
continue.
Solutions to End-of-Chapter Exercises
Chapter 8
SECTION 8.1: ECONOMIC GROWTH RATES
1.1 per capita real GDP
1.2 lower
1.3 False
1.4 35
1.5 This is a Web exercise.
1.6 The country with lower GDP but faster growth will overtake the larger, slower-growing country
within 35 years.
1.7 It would say there was no convergence or divergence.
1.8 6 percent
1.9 Yes, poor countries that have large agricultural exports are particularly vulnerable to increases in
temperatures. But in 20 years, India is likely to be more developed and relatively less vulnerable to
temperature increases.
1.10 Perhaps sustained growth would lead to lower unemployment and higher incomes for the poor and
middle class. This might reduce inequality. Note that this story is the opposite of the one discussed
in Application 2, where equality caused growth.
1.11 The data does support the theory of convergence.
SECTION 8.2: CAPITAL DEEPENING
2.1 d.
2.2 increase, decrease
2.3 180
2.4 False (it would be true for a trade deficit).
2.5 c.
2.6 It is false, because an increase in the supply of capital will increase the demand for labor and raise
real wages. It would, however, reduce the return to capital.
2.7 Total investment increases.
2.8 No, the increase in the trade deficit just increased consumption. Increasing consumption does not lead to
more capital deepening.
SECTION 8.3: THE KEY ROLE OF TECHNOLOGICAL PROGRESS
3.1 technological progress
3.2 technological progress
3.3 True
3.4 False
3.5 In both of these examples, capital (in the form of computers) are employed. Some of the benefits to
consumers would be attributed to the increase in capital.
3.6 This is consistent with the growth accounting finding that technological change has occurred more
rapidly in China than in India.
3.7 These are examples of intangible capital. They are similar to research and development
expenditures and are a form of capital.
3.8 Their finding reflects the observation that computer technology and information technology have
become more important in recent years. Much expenditure in this area is intangible capital.
3.9 Employers have increasingly compensated employees in ways for which the employers have a
comparative advantage (e.g., provision of group health insurance rather than wages). Hence, health
insurance is not provided “free” to employees.
SECTION 8.4: WHAT CAUSES TECHNOLOGICAL PROGRESS?
4.1 c. Adam Smith
4.2 False
4.3 d.
4.4 decrease
4.5 Shorter patent terms will reduce investment in research and development activities, eventually
reducing the supply of new drug products.
4.6 While the quote does make an interesting point, dictators might fear the disruption that would occur
with too rapid economic growth as it would give economic power to potential adversaries.
4.7 This would be an example of induced innovation—there would be increased profits to be made
from investing in green energy, and we would expect more innovation under these conditions.
4.8 Mass migration out of agriculture might have temporarily increased the real cost of food,
depressing real wages and causing malnutrition and decreased average height.
4.9 At the age of 50, forgone earnings (opportunity costs) are very high and the time to recoup your
investment in medical school is limited compared to someone who goes to school in their 20s or
30s.
4.10 The theory faces challenges in explaining East Asian growth as there are no obvious cultural
changes that have occurred in recent years.
SECTION 8.5: A KEY GOVERNMENTAL ROLE: PROVIDING THE CORRECT
INCENTIVES AND PROPERTY RIGHTS
5.1 False
5.2 d.
5.3 True
5.4 False
5.5 With less investment in human capital, growth will likely be less.
5.6 The reduced supply of educated workers increases the wage paid to educated workers and increases
incentives for acquisition of education. The hypothesis can be tested by comparing the change
in wages paid to educated workers with rates of emigration by educated workers.
5.7 Increased labor income allows parents to buy food in a market instead of producing it at home,
freeing the children from producing food.
Chapter 8 Appendix
1. saving, depreciation
2. b.
3. False
4. Destruction of capital in Japan and Germany reduced capital per worker, causing saving to exceed
depreciation and capital per worker to increase.
5. Increased depreciation rate reduces the equilibrium capital stock and the equilibrium level of output.
Other documents randomly have
different content
(5) But why was the king so angry? Solely because, from that time, I
was more serious and submissive than before, which I did to render
the king more reserved, but which had the effect that he supposed I
disliked him; and a temper, which has been once rendered captious,
soon places the worst construction upon everything.
(6) I declare before God, who knows my heart, that a similar scene
never occurred before or afterwards. The king once threw his glove
in my face: I stooped, picked it up, and said: "Why do you do that? I
am really not cross with you;" and with this he was satisfied.
(7) That I never regarded this occurrence as anything but a joke, the
result of youth and eccentricity, is seen from the fact that when the
commission began sitting, I was not aware of my offence.
In this way I believe I have answered all doubts. I am quite ready to
die, and to endure all the punishments that are imposed upon me. It
is God's chastening hand, which I have deserved: but I consider it
my duty to speak this once.
His Majesty was angry with me: hence, I was imprisoned; hence, I
was put in fetters. I can offer no objection to this: I kiss the hand
that smites me, but the hand which smites me can also let loose and
forgive, in the same way as Henri IV. frequently forgave much
greater offences. Even should you consider that this is too great
mercy, and if you wish that I should humiliate myself, personally,
before his Majesty, I should not regard such a thing at all as a
disgrace.
Oh! my judges, if you would only see what my situation with the
king was! and would you could feel as greatly, but forget quite as
quickly, what my present position is! Your eyes would assuredly shed
tears, and your hearts would be moved by the sincerest compassion!
I commend my cause to the hands of God, and beg you for what I
have no occasion to beg, namely, to follow your own convictions:
with that I shall be perfectly satisfied.
In the letter to his Majesty, I have begged to be allowed to pass my
days in peace, and by that I mean a bailiwick in a remote province. I
BRANDT.
do not know whether such a post is vacant, of which I might
entertain hopes, but I know that Bailiff Arnholdt, of Bramstedt[4] (in
Holstein) has long wished himself away from there, and that this
post is one of the worst. Further my wishes do not extend, and what
right could I have to ask!
Frederikshaven, April 14, 1772.
The drama of the great trial rapidly approached the catastrophe
after the charges against Struensee and Brandt were delivered to
the commissioners on April 21. Struensee's defence followed on the
22nd; the Fiscal General's reply and Brandt's defence on the 23rd;
and so early as the 25th the sentences were promulgated. In
Brandt's trial a reply was not even considered necessary, for the
accuser had announced this to be superfluous in his sentence, ab
uno discimus omnia. But the orders from the highest quarters were
for the greatest possible speed, and the length of the sentence
proves that it had been drawn up beforehand. That two human lives
were at stake, was only so far taken into consideration as it was
necessary to prove two judicial murders justifiable by every resource
of sophistry; but how little the venal judges succeeded in doing so,
will be seen from a perusal of the memorable documents which are
here published for the first time without any abbreviation.
CHAPTER II.
THE TWO COUNTS.
STRUENSEE'S SENTENCE—HIS GENERAL CONDUCT—THE MAITRE DES
REQUETES—THE GERMAN LANGUAGE—STRUENSEE'S DESPOTISM—THE
COUNCIL OF THE THIRTY-TWO—THE CABINET MINISTER—THE KING'S
PRESENTS—STRUENSEE'S PRECAUTIONS—HIS DOWNFALL—THE SENTENCE
APPROVED—COUNT BRANDT—HIS ASSAULT ON THE KING—HIS
BEHAVIOUR—THE ROYAL ASSENT.
STRUENSEE'S SENTENCE.[5]
Apart from the fact that Count John Frederick Struensee has already
been convicted, and has himself confessed that he has committed a
terrible crime, which involves in an eminent degree an assault on the
king's supremacy, or the crime of high treason, and according to the
law (especially art. 1 of cap. iv. of book vi.) deserves the severe
penalty of death; it is sufficiently notorious and proven that his
whole conduct and management during the time when he had a
share in the administration of the affairs was a chain, which, on one
side, was composed of vain and audacious impetuosity; on the other,
of tricks and intrigues, all of which operated to secure him the whole
power and authority to the exclusion of others. At the same time he
boldly employed all the measures which appeared to be useful in
attaining his ends, without in the slightest degree reflecting whether
they were permitted or not, and how far they accorded with the
form of government and the constitution, the genius of the nation
and the regulations and laws, both civil and fundamental, or were in
strict opposition to them.
His great design was partly to become privy cabinet minister, with
the extraordinary and unparalleled authority which he filched in the
last month of July, partly to exclude all the subjects from their king,
and the king from them; partly to exercise at court and over his
Majesty such an unbridled power as has been seen with
astonishment.
In order to attain this end, he strove, during his Majesty's foreign
journey, to gain his most gracious favour by proved care for the
king's health and pleasure. When his Majesty returned, Struensee
behaved quietly, and seemed to think of nothing less than the
attachment of charges and honours, although his ambition and his
love of power desired them.
He lived at court, amused himself, demanded no increase of his
salary, and seemed to satisfy himself with peace and
voluptuousness; but in secret he zealously strove to lay the
foundation on which he intended to raise his proud fortune.
It was not his business to learn the language of the country, to study
the position and true interest of the kingdom, and to learn its civil
laws and constitution. This was the way which he ought to have
chosen; but about all these things he was, and remained, in the
deepest ignorance. Instead of this, he preferred to establish the
principles which his Majesty should follow in the government, so that
he might use them in concealing his infamous propositions behind
them, and as he had every reason to apprehend that either faithfully
minded men might reveal his designs, or that the king himself
should detect them; in order to prevent the former effect, he
calumniated without distinction all those who had the honour of
being allowed to approach the monarch, and in order to secure the
latter, he strove to acquire a powerful protection, and to have in the
king's neighbourhood so close, constant, and trustworthy a friend,
that it was rendered almost impossible for his Majesty to penetrate
this man's ways and designs.
No sooner had he got his machine in perfect readiness in the year
1770 than he at once set it in motion.
Since the sovereignty our kings have had a council, composed of
men who were experienced in the laws and customs of the country,
and had studied the true state-system and real interests of the land,
while, at the same time, they knew the rules which were applicable
in cases that occurred.
It was their office to attend the king, as often as matters of
importance were to be laid before him, in order to afford his Majesty
the necessary explanations about everything he wished to know, so
that he might give his decision.
These men, however, as members of the council, had no vote, no
expedition, no secretaries; for everything depended on the king's
will, and everything was carried into effect by the departments
concerned.
This traditional and so natural council Struensee and his adherents[6]
wished to have entirely abolished and quashed, for this man
apprehended that if such a council existed, and even if it were
composed of his own friends, the time would arrive when it would
oppose his injurious propositions, and reveal them to the king, as he
could not exclude them (the members) from speaking with his
Majesty, and representing to him what was best for him and the
land.
For this end Struensee had previously calumniated the ministry by all
sorts of insinuations, and even depicted in the blackest colours those
of their actions which were evidently to the advantage of the king
and the state.
His Majesty the king, who heartily loves his people, only desires
honest officials, and jealously holds to his sovereign power, now lost
his confidence in the council, wished to appoint other men to it, and
to give it a different constitution; but Struensee, by false statements,
and the most cunning tricks, laid such obstacles in the king's way
that the council gradually ceased to meet, and was finally solemnly
abolished by a decree of December 27, 1770.
At the same time, he became maître des requêtes, and as it was his
plan that only he should have the right to speak to the king about
the affairs, and that all other persons should be excluded from doing
so, it appeared to him that the remaining colleges might still lay
some impediments in his way.
In order to prevent this, he represented to his Majesty the King, who
wished to be thoroughly acquainted with the affairs sent in from the
colleges for his most gracious decision, that nothing would be more
useful for this object than for the colleges to be ordered to deliver
their written requests in a portfolio, so that the king might be
allowed the requisite time to read through the memoirs and reflect.
By this brilliant, and apparently so useful advice, this man gained his
object of also "excluding" the colleges from the king.
He soon seizes the portfolios, and thus becomes the sole master to
lay matters before the king at his pleasure.
If the colleges wished to produce further reasons for the king's
better information, they must apply to Struensee, and thus he alone
became what the council and the colleges together had formerly
been.
Under the pretext of a more rapid expedition of various matters, and
in order to display the royal authority in its right supremacy, he
issued cabinet decrees, which were carried out without the colleges
concerned being informed of them,—a conduct which necessarily
produced the greatest confusion, and which a man dared, who was
neither acquainted with the country nor its laws, its condition nor its
language. But this did not trouble him at all, so long as he could
grasp all the respect and all the power.
This ignorance of Count Struensee in everything, which every
minister in Denmark must know, and his extremely slight efforts to
obtain a knowledge of it, entailed innumerable disadvantages, both
generally and for private persons.
In the colleges, which were formerly accustomed to send in their
reports in Danish, a special official had to be appointed to translate
them into German, so that Count Struensee might read them in this
language. The Danish Chancery, the only college which continued to
report in Danish, had only too often opportunity for learning that
these representations were not read at all, as only an extract of the
proposition, which, by command, was inserted in what was called
the Rotulus, was translated into German and seen by Count
Struensee, after which the resolution ensued in the German
language, and was again translated into Danish in the Chancery. It
could not fail but that the resolution often proved equivocal,
incomprehensible, and but little adapted to the affair, of which the
man who represented it to his Majesty had only rarely a correct idea.
Private persons who wished to send in petitions to the cabinet, and
had drawn them up in the Danish language, ran about to find a
German translator, as they were of the possibly not incorrect opinion
that their memorial, if such was only in Danish, would not be read,
while these cheap translations often turned out so, that it was
impossible to discern what was the real object of the petition.
Count Struensee's ignorance of the organization of the colleges, his
unwillingness to instruct himself about it, and his exertions to reform
the entire old state constitution, and to increase the number of his
adherents by appointing persons everywhere, and to the highest
offices, who owed their fortune to him—all this led him to lay hands
on one college after the other. And as he would not and could not
work himself, he employed other men in carrying out the important
reforms, several of whom afterwards confessed that they had no
knowledge of the advantages and defects of the former organization
of these colleges, nor attempted to acquire it, as they were only
ordered to draw up a plan of the new arrangements after a certain
predetermined date.
After Count Struensee had drawn all power and authority into his
own hands by removing the privy council, by weakening and
reconstituting, and by the exclusion of verbal reports, it was not long
ere his Majesty's subjects perceived the effects of his, Struensee's,
despotic principles and ideas.
As a consequence of the before-mentioned paternal and mild
government, to which people had been long accustomed in
Denmark, and which had to some extent acquired a traditional right,
every one who had obtained a royal appointment considered himself
justified in believing that he should retain it so long as he behaved
himself properly and attended to his duties, and therefore ran no risk
of losing his post against his will, so long as he was not declared
unworthy of it through a judicial sentence on account of
malversation, errors, or negligence. These moderate principles,
which characterised the mildness of the government, and had many
excellent results, were not at all to Count Struensee's taste, who did
not wish to be in the least degree impeded when the object was to
ruin people, and imbue others with terror.
For this reason it was heard frequently, nay, almost daily, that first
one, then the other, royal official was removed by a cabinet order,
without their learning what error they had committed, or in what
their offence consisted.[7]
Several persons also lost their posts without any royal resolution on
the subject being imparted to them, and without knowing anything
of it, till they learned that their office had been given to another man
by a cabinet order. This conduct was even extended to the dismissal
of entire colleges.
The entire magistracy, consisting of from eighteen to twenty, or even
more persons, was abolished, and a new magistracy was appointed
by a cabinet order addressed on April 3, 1771, to the president, who
had been appointed to this post only a few days previously, and also
by a cabinet decree, and who contented himself with informing the
previous members of the magistracy by letter that they were
dismissed, and the new ones that they were to assemble at the
town-hall without the deposed members learning what offence they
had committed, or why they were discharged.
In addition to the magistracy, there was another college or public
assembly in Copenhagen, namely, the so-called thirty-two men, as,
owing to the bravery and fidelity so solemnly displayed by the
Copenhageners during the siege, and on the establishment of the
sovereignty,[8] it was conceded among the privileges granted to the
citizens on June 24, 1664, that they should be allowed to elect
thirty-two of the best and most respected citizens, who would, with
the magistracy, consult about the welfare of the city, and its
revenues and out-goings. In these privileges access to his Majesty's
person was also granted to the city deputies and the magistracy.
This assembly, which was regarded as the highest of these
privileges, and had had many good results, and, moreover, did not
cost the king or city a farthing, was also dissolved by the aforesaid
cabinet order, by virtue of which the chief president informed the
men that they were no longer permitted to meet, and ordered the
council-hall to be closed. This, and many other instances of a similar
nature, which all proved that nothing was sacred to this equally
incautious and absolute man, and that he was as great an enemy of
all sense and mildness as he was of order and good morals,
produced a striking effect upon the nation, which fancied itself
suddenly removed under an "Oriental climate."
Some lamented and sighed, others expressed their amazement or
bitterness in one way or the other. But all were agreed that his
Majesty's mild and paternal heart for his subjects was still the same,
if their complaints and sighs could only penetrate to the throne, and
the real posture of the affair be represented to his Majesty.
This, however, seemed quite impossible, owing to the precautions
which Count Struensee had taken in this respect. He had placed his
intimate friend, Count Brandt, near the king,[9] and as he, in
accordance with the well-known proverb, nulla amicitia nisi inter
bonos, was not fully convinced of the duration of this friendship, he
sought to insure its permanence by a mutual interest, and, as will be
shown presently, at the expense of his Majesty and the royal
treasury.
Count Brandt, who was always about the king, confirmed him in
everything that Count Struensee alleged or insinuated, and
prevented everybody from having an opportunity to convince his
Majesty of the opposite truth.
There was no council, and, so to speak, no minister. No one
succeeded in speaking alone with the king, save those persons of
whose devotion Count Struensee considered himself assured and if it
ever happened, it was only for moments which admitted of no
detailed explanation or discussion. All the rest were held aloof from
his Majesty, which was even extended to his Majesty's own most
exalted relatives and his nearest family, toward whom the king had
formerly displayed special tenderness and affection. But from the
time when Count Struensee had usurped the administration of the
court and of the whole country, the latter never had an opportunity
of conversing alone with the king, as they would not have omitted to
represent to his Majesty the good of his subjects and their grief, of
which these exalted personages afterwards, when the opportunity
was offered, have given incontrovertible proofs, which can never be
sufficiently praised and recognised.
It could not fail but that Count Struensee should render himself
odious to all, through such despotic, arbitrary, and unreasonable
conduct.
His emissaries, and the adherents whom he still possessed, tried,
even though they did not dare to justify or excuse his undertakings,
at least to boast of his asserted disinterestedness, and to spread far
and wide that he was satisfied with his moderate salary, without
asking either money or honours for himself or his friends. How far
this met with belief may be left an open question. But it is certain
that Count Struensee took very carefully-devised measures to
conceal his selfishness at that time, and so long as it lasted. But it
was afterwards seen only too plainly that he was an extremely
interested and selfish man, of whom it may be justly said that he
pillaged his Majesty's treasury.
He had a very respectable and considerable salary, which ought to
have been sufficient, as he had everything free at court down to the
very banquets he gave. He knew, and often enough proclaimed, in
what a bad state the public treasury and his Majesty's were from
former times.
For all that, after the council was dissolved, and he had become
maître des requêtes, he allowed hardly three months to pass ere he,
by an abuse of his Majesty's good heart, demanded and received
from his most gracious lord a present of 10,000 dollars for himself,
and a similar sum for his friend Count Brandt. It might be supposed
that so considerable a present for these two persons, of whom one
was maître des requêtes, and the other directeur des spectacles,
and who both had only held these offices for a short time, would
have satisfied their greediness for a while. But, instead of this, we
find that it grew and increased, for Count Struensee, after receiving
the above mentioned present in February or March, again received in
May, or at the end of two or three months, from his Majesty 50,000
or 60,000 dollars, and Count Brandt the same sum, so that these
two persons, in the short time of three or four months, cost his
Majesty, in addition to their regular salary, 140,000 dollars, or at
least 120,000—for which of these two sums is the correct one
cannot as yet be stated with certainty, owing to the confusion
prevailing in Count Struensee's accounts—and this in addition to the
presents which before and after this date they procured for their
good friends: such as Justiz-rath Struensee 4,000 dollars, Countess
Holstein 3,000, Chamberlain Falckenskjold 3,500 or more, and so on.
That Count Struensee's irresponsible selfishness was duly considered
and intended, is seen from the artificial machinery which he formed,
solely that he might be able to take these sums without any one
detecting it.
For this purpose, he first proposed the abolition of what was called
the "Trésor"—which consisted of a sum of money laid by for
unforeseen expenses, and that it should be paid into the public
treasury. As the Trésor, however, must pass through the cabinet on
its way to the public exchequer, he proposed to his Majesty to
reserve 250,000 dollars of the same, in order to form a special
cabinet treasury which would stand under his control.
In this way Count Struensee obtained a good opportunity for
receiving considerable sums, without any one being acquainted with
the fact.
He behaved in such a way with this treasury, that after it was
established in April, 1771, and at that time consisted of 250,000
dollars, at the end of May only 118,000 dollars remained of the
original contents, although the king had no other out-goings but
these presents.
The remaining 118,000 dollars would have gone by degrees the
same road as the others if Struensee had been allowed sufficient
time.
Count Struensee's disgraceful avarice and selfishness are thus
rendered so evident, that those persons who proclaimed him as
disinterested must fairly confess that they knew him badly, and were
not properly informed.[10]
But this is not sufficient. There is the very strongest presumption
that Count Struensee in this traffic committed an impudent,
disgraceful, and highly criminal fraud. When the account found
among Count Struensee's papers, and approved by his Majesty, of
the income and expenditure of the special treasury for the months of
April and May, was laid before his Majesty, as it was considered
suspicious, the king at once declared that he perfectly well
remembered having at that time given 10,000 dollars to the queen,
6,000 to Count Brandt, and other 6,000 to Count Struensee, but no
more. Just as these sums amount to 22,000 dollars, it is on an
inspection of the document as clear as the sun that the addition was
in the first instance 22,000 dollars, but the first figure two was
converted into a three—a change which is so visible that it is at once
noticed—and that a one was afterwards added, for which there was
no other room but in front of the line drawn underneath, which is
quite contrary to the practice in the other accounts, and in this very
one on the preceding page, where the in-comings are calculated.
Hence, then, the said sum of 22,000 dollars became 132,000, which
is proved by the fact that the two sums of 6,000 dollars for
Struensee and Brandt were converted into 60,000 by the addition of
a cipher, and 2,000 dollars were added for Falckenskjold. This last
sum seems to have been added, in order not to be obliged to
convert the second two into a cipher in the sum of 22,000 dollars,
which had become 130,000.
These suppositions, the real strength of which only that man can
comprehend who has the document in question before him, is also
confirmed by other concurrent circumstances—as, for instance, that
the account for April and May is written by Struensee himself, while
the other extracts and calculations are written by the secretary of
the cabinet, which probably occurred because Count Struensee
wished no one to be cognizant of the embezzlement effected by him,
and further by the fact that, from this time, Count Struensee laid no
account of the treasury before the king until the end of October,
although in June there was an out-going of 2,000 dollars, which
were given to Justiz-rath Struensee.[11]
This negligence or omission appears to have taken place purposely,
so that his Majesty, after so long an interval, might not thoroughly
remember the real state of the treasury. To this must be added his
Majesty's own alleged and very natural conjecture that it cannot be
credited that he gave Counts Struensee and Brandt 50,000 or 60,000
dollars apiece, while he only made the queen a present of 10,000.
Count Struensee, who is obliged to confess the selfishness of having
requested this money of the king, will not, however, acknowledge
this embezzlement, but asserts that his Majesty at that time, on his
request, gave him 50,000 dollars, and Count Brandt the same sum,
and that, as the 10,000 dollars previously given had not been taken
to account, they were included in this amount. On the document
being produced before the commission, however, he was obliged to
allow that all the facts concurred against him to arouse such a
presumption, which he had no evidence to refute, while at the same
time, he regretted his want of accuracy and his negligence.
That Count Struensee's ambition was not less than his avidity, and
that his "moderation," as regards honours and titles, was in no way
inferior to that for money and resources, is equally self-evident.
Within two years he made such progress as others of greater nobility
and higher merit hardly make in thirty years and more. According to
the position which he occupied, he could not fail to stand in great
honour both at court and in the city. But all this was not enough for
him.
Through constant persuasion he brought it about that his Majesty
appointed him on July 14, 1771, privy cabinet minister, which design
he contrived to conceal up to the last moment, even from his most
intimate friends, just as he, and Chamberlain Brandt were a few
days later raised to the rank of counts.[12]
Although as privy cabinet minister he regarded himself as the first
private person in the whole kingdom, still, the title and the authority
he had hitherto possessed did not suffice him; but he wished to
have prerogatives connected with them which were not at all seemly
for a subject, and involved a portion of the sovereign authority which
belonged to the king alone.
Count Struensee had already seized on all the power, and as those
persons who were about the king spoke in Struensee's behalf, and
his Majesty thus only heard praises of his minister, it was perfectly
natural that he should have a certain liking for him, and as he was
nearly the only person who discussed the affairs with his Majesty, it
could not fail that the latter should consent to everything he
proposed. Thus he had everything that he could crave; but this was
not sufficient to satisfy his immoderate ambition, as the colleges
refused to obey unless they saw the king's signature.
This did not suit Struensee, and there are grounds for believing that
it did not agree with his secret designs, and his wish that his
signature should be worth as much as the king's, and that the
persons concerned should obey both signatures.
This he attained by the royal order projected by himself, which was
issued to the colleges on July 15, 1771, with reference to his office
as privy cabinet minister, and was afterwards published by them; for
in the first article of this cabinet order the decrees signed by
Struensee, and provided with the cabinet seal, were placed perfectly
parallel with those signed by his Majesty himself, and countersigned
by Struensee, and in the fourth article it is expressly ordered that
everybody should execute the cabinet orders issued and expedited
by Struensee. It is true that this article seems to contain a certain
limitation, where it states, "so far as no royal regulation or resolution
speaks to the contrary;" but what follows on this may be rather
regarded as an extension, for, instead of stating, as might be
expected, that in such a case execution was to be deferred until a
royal resolution was issued, it continues, "in which case, the fact is
to be immediately reported to the cabinet," so that if any one
thought it his duty to remonstrate against Struensee or his order, he
would have to apply to Struensee himself; and if the minister then
commanded him to obey his first order and carry it out, he must do
so. This is what Count Struensee intended and practiced. In this
way, however, he filched a portion of the sovereignty, and, from
what had previously happened, it might be concluded that he
intended to exercise it alone.
As Struensee acknowledges having read the Lex Regia, and as he as
minister must have been fully acquainted with its contents, he must
have known that article 7 resolves "that all government decrees,
letters, and documents shall be signed by the king himself." But the
article of the royal law most applicable here is the 26th, in which the
most revered king and first autocrat, Frederick III., appears to have
had a species of presentiment that a Struensee might one day arise
in Denmark, because it is stated in it how injurious it is when the
mildness and kindness of kings and masters are so abused that their
power and authority are cut away in an almost imperceptible
manner, and for this reason it is recommended to, and impressed
on, the kings of Denmark zealously to watch over their sovereignty
and autocracy in order to keep it uninjured; and the conclusion is,
that if any one should dare to desire or appropriate anything which
might in any way be prejudicial to the sovereign authority and
monarchical power of the king, everything of the sort shall be
regarded as null and void, and those who have not hesitated to
acquire such a thing, or tried to do so, shall be punished as insulters
of majesty, because they have committed the greatest crime against
the supremacy of the royal autocracy.
Count Struensee could have read his sentence here, if he had not
committed another and equally coarse offense against the king's
highness, apart from the fact that he was not only an accomplice
and adviser, but also an inciter of the assault made on his Majesty's
person by his intimate friend Count Brandt.
The way in which Count Struensee exercised the power and
authority entrusted to him as privy cabinet minister does not excuse
him, but, on the contrary, incriminates him in the highest degree,
because it is a further proof that he regarded the welfare, honour,
life, and property of his Majesty's subjects as purely dependent on
his discretion.
He revoked, by cabinet orders drawn up by himself, and under his
hand, former royal resolutions, of whose existence he was cognizant.
In the most important affairs he issued orders without his Majesty's
knowledge, and he partly neglected the extracts from cabinet
decrees imposed upon him as a duty by the resolution of July 15,
which he was to lay before the king every week, or drew them up in
such a way that it was impossible to discover the nature of the
orders, or the effect they were intended to produce.
When the direction of the privy treasury was entrusted to him—for
he wished to direct all the treasuries—he thought proper to give the
cashier fresh instructions from his hand; and when the cashier
represented to him that he held a royal instruction which could only
be revoked by another royal resolution, he gave him an answer
which contained a species of reprimand, and ordered him to obey
the order and instruction given by him, Struensee.
The pretty corps of Horse Guards, which was composed exclusively
of Danes and Norwegians, and consequently did not please Count
Struensee—or, as it only consisted of two squadrons, was not very
expensive—was disbanded in February, 1771, by Count Struensee's
proposition, and in accordance with his wish, but against the opinion
of the college.[13]
The Fusilier Guards still remained. They consisted of five companies,
and were composed of none but clever and trustworthy men, to
whom the guard of the royal palace, and before the apartments of
the royal house, could be safely entrusted; but they possessed a
"quality" which prevented Struensee from being able to place
confidence in them,—they were nearly all Danes and Norwegians.
He had long resolved on the reduction of this corps, and spoken with
several persons about it, most of whom, however, dissuaded him. At
length he carried it through, and without his Majesty's knowledge
(as the king himself has declared)[14] issued, on December 21,
1771, a cabinet order to the Generalty and Commissariat College, by
which the five companies of Foot Guards were to be transformed
into five companies of grenadiers, and one company of them be
attached to each of the five regiments quartered in Copenhagen.
He allowed December 21, 22, and 23 to pass without telling his
Majesty anything about it, although Struensee, on the 23rd,
procured the Generalty the royal approbation of the said order of the
21st, because this college required a royal resolution, and refused
without it to execute the cabinet order, as it considered the affair of
too great importance, and foresaw the consequences that would
result from it.
As, however, the Guards on December 24 declared that their
capitulation must be kept, and that it was contrary to it to make
them serve in other regiments, Struensee found himself compelled
to lay the whole matter before his Majesty, and advised that force
should be employed, and the Guards compelled to obey. However, a
royal order was issued on December 24, by which those guards who
would not serve as grenadiers were granted their discharge.
The result of this operation of Count Struensee's therefore was, that
his Majesty lost from his military service several hundred brave,
faithful, and trustworthy men, who were all natives. Count
Struensee's improper and treacherous conduct in this affair is at
once seen on comparing the protocol kept about the cabinet orders,
with the weekly extract from them, which was laid before his
Majesty.
In the protocol we find the said order of December 21, under No.
709, quoted with the correct date. After this, several other cabinet
orders were drawn up, to No. 733, on December 22, 23, and 24; but
the second cabinet order of December 24 is not found among them,
but a space is left open at the very end, in order to book it
afterwards. But in the extract from the cabinet orders expedited
from December 18 to 25, which was drawn up on December 31, and
afterwards laid before his Majesty, we find these two orders of
December 21 and 24 quoted together at the end, under the
numbers 22 and 23, just as if they had been expedited at the same
time and under the same date, while, on the contrary, the cabinet
orders issued from December 22 to 23 are omitted from this extract.
From this a general idea of the completeness and trustworthiness of
these extracts may be formed.
This protocol further proves how Count Struensee—although he had
long before sufficiently provided that no one should bring before the
king either verbally or in writing anything that might injure him,
Struensee—found himself obliged, at the time when the guards were
dismissed, to take just precautions. For under date of December 23
he expedited two cabinet orders, one to (the Danish chief
postmaster) Etats-rath Waitz, in Hamburg, that the packets for his
Majesty sent by post should be addressed to the cabinet, the other
to Court-Intendant Wegener, by which all letters and parcels sent to
the king, and letters and portfolios that came in from Copenhagen,
should not be delivered in the king's ante-chamber, but in the
cabinet. One of these orders, though they immediately concerned
the king, was entirely omitted in the above-mentioned extract, while
the other was quoted imperfectly, so that his Majesty was not at all
informed of these regulations.
Just as Count Struensee more and more evinced his distrust of the
nation, so the reciprocal hatred of the nation against him increased
more and more (and was expressed), in various ways. Thus, in the
summer of 1771, various pasquinades were in circulation, and
although their contents and style sufficiently proved that they
emanated from the common people, still they all displayed the
strongest attachment to his Majesty's person, and a readiness to
sacrifice life and blood for him, while the bitterness had no other
object but the privy cabinet minister and his adherents.
This, and the fact that a few sailors and others who believed
themselves insulted, went out to Hirschholm in order to lay their
complaints before his Majesty himself, caused Count Struensee such
terror, that he made preparations and was on the point of taking
flight and running away.
As he, however—probably by the advice of his friends—desisted
from this design, it seemed as if he, on the other hand, prepared to
maintain himself in his post, and against everybody, in every
possible way. This gave cause to various hitherto unknown
measures.
When their Majesties came to town, at which times Count Struensee
always accompanied them, they were surrounded by an unusual
escort; wherever they stopped in town, at the palace or in the
theatre, double sentries were posted, &c.
Such a course increased the bitterness of the nation, and especially
of the Copenhageners, against Count Struensee in more than one
respect. They saw in it a proof that he persuaded his Majesty to
believe there were among the inhabitants people who entertained
bad designs against his Majesty and the royal house. They were
confirmed in their suspicion that Count Struensee entertained other,
more extensive, ambitious, and, at the same time, most audacious
and criminal designs.
It must also be confessed that much of what happened during this
summer, but more especially in autumn, must confirm them in this
belief, and produce a strong presumption of it, as he has himself
been obliged to confess that several of his measures were intended
to maintain himself in every way in the situation he occupied.
As already stated, the Horse Guards were disbanded.
As, however, Count Struensee, who always lived in fear, wished to
have some cavalry in the vicinity of the court, an exercising troop
was formed. But, ere long, he learned that both the officers and
men of this corps were natives, so that they were not at all the sort
he wanted, whence his confidence in them was lost, and this troop
was also disbanded in the autumn.
He then ordered the Seeland Dragoons to the court and the city, but
they have given incontrovertible testimony that they were no better
disposed toward him than the preceding dragoons.
He now obtained a resolution that two of the regiments lying in
garrison here should be removed to other towns in the spring. But,
instead of letting this fall on the two youngest regiments, as the rule
was, he wished—for reasons known to himself, and which it is not
difficult to conjecture—that they should be his Majesty the King's,
and his brother the Prince Frederick's, regiments, contrary to the
opinion of the Generalty, and without informing his royal highness,
the colonel of the latter regiment, or asking his assent to it.
Furthermore, he managed to have a new commandant of
Copenhagen appointed, in whom he believed he could place full
confidence.
But what heightened the distrust most, and excited the inhabitants
of Copenhagen, was the following last-discovered circumstance,
that, according to Struensee's instructions to the commandant,
cannon, with cartridges and the proper complement of men, were
held in readiness at the arsenal, so that they could be used at the
first signal,—a regulation which was also concealed from his Majesty.
[15]
The king and the royal house, as well as the whole nation, must at
last lose all patience when they were compelled to see, in addition to
all the rest, how audaciously he behaved in the harsh and
extraordinary education which he dared to give to the crown prince,
and by which his royal highness ran the greatest risk of losing his
health and life.
Thus, then, the bitterness was raised to the highest pitch, and must
have had the most dangerous consequences, when a fortunate end
was put to the widely-extended designs and despotic administration
of this vain, thoughtless, arbitrary, and ambitious man.
As it is clear, therefore, that Count Struensee, in more than one way
and in more than one respect, has both himself committed the crime
of high treason in an eminent degree, as well as participated in
similar crimes with others; and that, further, his whole administration
was a chain of violence and selfishness, which he ever sought to
attain in a disgraceful and criminal manner; and that he also
displayed contempt of religion, morality, and good manners, not only
by word and deed, but also through public regulations, the following
sentence is passed on him, according to the words of article 1 of
chapter iv. of the 6th book of the Danish law:—
Count John Frederick Struensee shall, as a well-deserved
punishment for himself and an example and warning for others of
the same mind, have forfeited honour, life, and property, and be
degraded from his dignity of count, and all other honours which
have been conferred on him, and his noble coat of arms be broken
by the executioner: John Frederick Struensee's right hand shall be
cut off while he is alive, and then his head, his body quartered and
exposed on the wheel, but his head and hand shall be stuck upon a
pole.
The commission at the Christiansborg Palace, April 25, 1772.
J. K. JUELL-WIND.
H. STAMPE. LUXDORPH.
KOFOD ANCHER.
F. C. SEVEL.
G. A. BRAËM.
A. G. CARSTENS.
J. C. E. SCHMIDT.
O. GULDBERG.
Two days after this barbarous sentence was passed, it received the
full royal confirmation in the following words:—
We hereby approve, in all points, the sentence passed by the
Commission of Inquiry appointed by us at our Palace of
Christiansborg, which declares John Frederick Struensee, on account
of his crimen læsæ Majestatis, in more than one point to have
forfeited honour, life, and property; he shall be degraded from his
dignity of count, and all the other dignities conferred on him; his
coat of arms shall also be broken by the executioner; his right hand
shall be cut off while he is alive, and then his head, his body
quartered and exposed on a wheel, but his head and hand stuck on
a pole. To which those whom it concerns will pay most submissive
attention.
Given at our Palace of Christiansborg, this April 27, 1772.
CHRISTIAN.
O. THOTT.
LUXDORPH. A. SCHUMACHER.
DONS. HOYER.
COUNT BRANDT'S SENTENCE.
By Count Brandt's own confession, the declaration of the ex-cabinet
minister John Frederick Struensee, and various circumstances, it has
been already proved that Count Enevold Brandt was not only
Struensee's good friend, but also his intimate, whom he (Struensee)
entrusted with his greatest secrets.
In consideration of the gracious intimacy in which he stood with his
Majesty the King, it would have been his duty, therefore, to prevent
all the things which, according to his own declaration when
examined, he disapproved, and must have recognised in Struensee's
life, sentiments, and undertakings, as foolish, audacious, and
detrimental both for the king and the government and the country.
Instead of this, he, as a criminal subject and unworthy confidential
servant of the king, made common cause with Struensee, continually
remained his confidant, and sought to sustain him.
He allowed himself to be employed by Struensee in keeping
everybody from the king, so that nothing should be revealed to his
Majesty about Struensee's criminal conduct, and the share himself
had in it.
To the great concern of all his fellow-subjects he behaved haughtily,
and not with the due respect to his king, both in private and in the
sight of all men.
He did not show the submissive reverence to the king which every
subject owes him, and expresses voluntary from his heart on every
occasion in word and deed, but he rather opposed the king, in order
to maintain Struensee's favour, and acquire an extravagant fortune
and special advantages for himself.
The memoirs exchanged between him and Struensee furnish a proof
of his unreasonable pretension, and that he was conscious of his
reprehensible behaviour toward the king. From this cause he should
have altered his conduct, or sooner have resigned a post which was
repulsive to him, and for which he did not consider himself equal.
But no, he did not wish to oppose his patron and protector, who, for
his own purposes, desired to keep him, Brandt, about the king's
person, while, on the other hand, Count Brandt expected greater
fortunes in service and pecuniary affairs from him, Struensee.
As directeur des spectacles, he assisted Struensee in producing a
misunderstanding in the royal family by contriving that a separate
box should be given Prince Frederick in the playhouse, so that his
royal highness should not be in the king's box, and thus have an
opportunity for revealing to his Majesty, Brandt and his intimate
friend's most culpable conduct.[16]
He obtained through Struensee in a short period 60,000 dollars from
the royal treasury, although he must have known, or at least could
not have doubted, that he had not earned them by his services or
general conduct.
When he thanked his Majesty for this large sum, he did not mention
the amount which Struensee had procured him, because he knew
that the matter was not all right, and Struensee had forbidden his
doing so, lest his Majesty might thus be informed of that which the
approved extract, found among Struensee's papers, has since
revealed to his Majesty and every other person who sees the extract.
Count Brandt has been guilty of all this criminality, although his
conscience must reveal to him at every moment that he was acting
as an unfaithful subject, and against the duty and the bond imposed
on him by the king's gracious familiarity, and in defiance of the
warnings which the two letters from an anonymous writer found in
Brandt's pocket-book so impressively and clearly contained, by
reminding him of his duties, and advising him what he should do if
he did not wish to risk his head.
He only allowed himself to be ruled and guided by his arrogance,
fortune-hunting, and avarice.
But though the things mentioned appear so criminal, they cannot be
compared with the crime of laying hands on the exalted person of
his Majesty the King, which Count Enevold Brandt has himself clearly
and regularly confessed in his examination before the commission,
and as it has been proved and confirmed by several witnesses. For
this crime may be regarded as if Count Brandt wished to hazard the
king's death, because the result of such an assault cannot be
foreseen, and an unlucky blow on a tender part has frequently
caused death.
He was angry with the king, and demanded satisfaction of his
master, whose well-deserved admonition he ought to have accepted
in penitence for his previous conduct, and have withdrawn himself
from his (the king's) countenance, in order not to irritate him more.
On the contrary, he consulted with his intimate friend Struensee how
and when he should assault the king, and reflected what sort of
weapon he should employ, and held it in readiness; but after more
mature reflection, made no use of it.
After he had been warned by Struensee that the king was now
alone, and the right time had arrived, he goes with reflection, and a
firm determination to avenge himself, in to the king, orders out the
two lads in attendance, and bolts the door, so that no one may come
in to oppose his resolution or to prevent his design, and forces his
Majesty the King, by language and assault, to offer resistance.
While doing so, he wounds his Majesty in the neck, bites his finger,
and at the same time insults his benefactor and king by audacious
words and expressions of such a nature that everybody must feel
horrified at repeating them.
It is true that Count Brandt has urged, in his excuse, that his Majesty
has pardoned him for this occurrence, yet, even were it so, it can
only be supposed that his Majesty wished to overlook so great an
insult for a time. Count Brandt, however, has produced no proof of
this, and his Majesty alone is in a position to judge how far this
indulgence should extend.
This most atrocious and audacious undertaking of Count Brandt
cannot be regarded otherwise than as an open attack on the king's
person, and the greatest crime of high treason, which deserves the
punishment attached to such a crime in art. 1, 4th chapter of the 6th
book of the Danish law.
We, therefore, consider ourselves justified in condemning Count
Brandt, and passing the following sentence:—
Count Enevold Brandt shall have forfeited honour, life, and property,
and be degraded from his dignity of count, and all the other honours
conferred on him; his coat of arms shall be broken by the
executioner on the scaffold; his right hand cut off while he is still
alive; then the head; his body quartered and exposed on the wheel;
but his head and hand stuck on a pole.
The Commission at the Christiansborg Palace, this 25th April, 1772.
J. K. JUELL-WIND.
H. STAMPE. LUXDORPH.
KOFOD ANCHER.
F. E. SEVEL.
G. A. BRAËM.
A. G. CARSTENS.
J. E. E. SCHMIDT.
O. GULDBERG.
The royal confirmation of the sentence was to the following effect:—
We hereby approve in all points the sentence passed by the
Commission of Inquiry appointed by us at the Christiansborg Palace,
which declares that Enevold Brandt, for his most atrocious and
audacious design and assault on our own person, shall have
forfeited honour, life, and property, and that he shall be degraded
from his dignity as count, and all the other honours conferred on
him; that his coat of arms shall be broken by the executioner on the
scaffold; after that his right hand be cut off while he is alive; and
then his head; and that the body shall be quartered and exposed on
the wheel; but the head and hand stuck on a pole. Whereupon those
whom it concerns are ordered to act accordingly.
Given at our Palace of Christiansborg, this April 27, 1772.
CHRISTIAN.
O. THOTT.
LUXDORPH. A. SCHUMACHER.
DONS. HOYER.
These sentences are certainly among the rarest documents which
the annals of justice contain. Struensee was convicted of a single
crime; Brandt was innocent. In the sentence, Struensee's crime is
not stated, and the whole document is a disgustingly long narrative
of undecided actions, not one of which would offer grounds for a
sentence of death. Reverdil, usually so cool and impartial, cannot
restrain his feelings when he writes about these atrocious verdicts:—
"The sentences were minuted by Wiwet. They were inserted in the
newspapers; among others, the Leyden Gazette. They seem
expressly drawn up to dishonour the king, the judges, and the
country. The crimes proved are confounded in them with
presumptions, offences with imprudences, faults peculiar to
favourites with those in which, as they were covered by the king's
authority, the culpability falls on him. In the fear of not charging
enough, intentions and passions are taken into account. In the
sentence passed on Brandt, after describing the scene of fisticuffs,
which so strongly revealed the king's imbecility, they were not
ashamed to add: 'Count Brandt has certainly alleged in his defence
that the king had pardoned him; but even supposing that the fact
was proved, it could not be understood otherwise than that his
Majesty was kind enough to suffer so great an extremity for a time.
After all, the culprit has proved nothing in this respect, and his
Majesty is the sole judge of the extent he gives to his own
indulgence.' When this extraordinary document was read to the man
whom it concerned, he said very justly in his way, that its author
deserved a hundred lashes with a stirrup-leather."
It is not surprising to find that the authenticity of the sentences was
not believed when they were published in foreign countries. Thus we
read in the Annales Belgiques for May, 1772:—
"A sentence ought to state the facts simply, and declare the penalty
which is pronounced against the man who has been guilty of them.
Care should be taken to avoid mixing up in it reasonings and
epithets which denote in the judge a disposition for vengeance or
any passion: now this pamphlet, which is offered us under the title
of a sentence, displays from one end to the other such marked
characters of a violent prejudice against the condemned, that this in
itself would be sufficient to render it suspicious. It forms a tissue of
vague imputations which can be easily destroyed."
But the dominant faction did not trouble itself about what might be
said: sentence had been passed, and the next matter of importance
was to have it executed before any revulsion took place in public
opinion.
CHAPTER III.
THE EXECUTION.
CONFIRMATION OF THE SENTENCE—STRUENSEE'S CORRESPONDENCE—
RANTZAU'S TREACHERY—AN UNFEELING COURT—STRUENSEE'S PENITENCE
—THE SCAFFOLD—APRIL 28—EXECUTION OF BRANDT—HORRIBLE DETAILS
—DEATH OF STRUENSEE—HIS CHARACTER—ENLIGHTENED DESPOTISM—
THE FIRST SERVANT OF THE STATE—THE QUEEN DOWAGER.
On the same day that the sentences were signed by the
Commissioners, Uldall, the counsel, went to Struensee, in order to
inform him of the termination of the trial.
When the advocate entered the cell, he said to the unhappy victim
of a conspiracy:
"Good count, I bring you bad news."
And with these scant words he drew a copy of the approved
sentence out of his pocket.
Calmly and silently the man condemned to such a cruel death
perused the sentence, but not the slightest alteration took place in
his countenance. Then, he handed the ominous paper to Dr. Münter,
who happened to be with him at the time.
While the latter was trembling as he read the sentence, Struensee
began to talk with composure with his counsel, and asked if all the
points of his accusation had been regarded in passing his sentence,
especially that about the education of the crown prince; to which
Uldall answered in the affirmative. Struensee added, that he must
confess that, if he had had children of his own, he would not have
reared them in any other way.
"And what will Brandt's fate be?" he exclaimed.
"His sentence is exactly the same as yours," Uldall replied.
"And could his counsel do nothing to save him?" Struensee went on
to ask.
"He said everything that could be urged in his favour, but Count
Brandt has too much laid to his charge."
This information caused Struensee greater emotion than the news of
his own fate. But he soon regained his composure, and added a few
words about a petition to the king for mercy, although he at the
same time expressed his conviction, that even this last step would
meet with no success.
When Struensee and Münter were left alone again, the man who
was now Death's own assured his friend that his impending
punishment did not terrify him. He had thought that he might be
broken on the wheel, and was already considering whether he could
suffer this kind of death with patience.
"If I have deserved such a death," he then added, "my infamy would
not be removed, though those disgraceful circumstances were not
annexed to it. And if I had not deserved it, which I cannot assert,
sensible people would do me justice, and I should gain in point of
honour. And upon the whole, what is honour or infamy in this world
to me? My judges had the law before them, and therefore they could
not decide otherwise. I confess my crime is great: I have violated
the majesty of the king. Many things I might not have done if I had
been sufficiently acquainted with the law,—But why did I neglect it?"
These words, uttered by Struensee so shortly before his death,
seemed to reveal a doubt of his perfect innocence. Perhaps,
however, this uncertainty was rather produced by his conversion to
the Christian religion, by the recollection of past errors, and by the
effect of a long and painful imprisonment; while the imminent and
awful close of his life might also have produced impressions on him
which made him fancy himself guiltier than he really was. Or was it
the voice of his conscience at the remembrance of the ruin which he
had brought on his young queen, which spoke out of his soul,
though he dared not clothe it in language?
My readers will remember how much this unhappy man was affected
by a letter which he received from his father, at the time when he
still maintained his irreligious principles. He now delivered to Dr.
Münter a letter for his parents, leaving him the option whether he
would send it at once, or after the execution. Münter chose the
latter course, as he knew Struensee's death was very near at hand,
and he wished to save them the anxiety of expecting the melancholy
news of it. The letter was to the following effect:—
Your letters have increased my pain; but I have found in them
that love which you always expressed for me. The memory of all
the sorrow I have caused you, by living contrary to your good
advice, and the great affliction my imprisonment and death
must give you, grieve me the more, since, enlightened by truth,
I see clearly the injury I have done. With the most sincere
repentance I implore your pardon and forgiveness. I owe my
present situation to my belief in the doctrine and redemption of
Christ. Your prayers and your good example have contributed
much toward it. Be assured that your son has found the great
good, which you believe to be the only true one. Look upon his
misfortune as the means which made him obtain it. All
impressions which my fate could make or give will be weakened
by this, as it has effaced them with me. I recommend myself to
your further intercession before God. I pray incessantly to
Christ, my Redeemer, that he may enable you to bear your
present calamities. I owe the same to His assistance. My love to
my brothers and sisters.
Brandt also received from his defender, Bang, a copy of the sentence
passed on him, and, like Struensee, sent in a petition for mercy. It
was reported that he would be pardoned. For Owe Guldberg, the
most influential of the judges at Christiansborg Palace, had thrown
himself at the feet of Queen Juliana Maria, who now held the
authority in her hands, and implored a mitigation of the punishment.
But the queen dowager absolutely refused to listen to him, not even
when Guldberg earnestly implored that at least Brandt's life might be
saved. Crushed by such harshness, and bitterly undeceived as to the
extent of his influence, he returned to his apartments, threw himself
on the bed, refused to take food, and passed several days in
apathetic reflection.
Brandt's mother and brother asked permission to come to court to
implore the king's clemency, and, being unable to obtain it, they
wrote to the queen dowager and to Prince Frederick. The answers
they received were full of compliments, but gave them no hope. It
was said, however, that in the council, when the question of
confirming the sentence was discussed, there were voices for mercy;
but that Counts von Rantzau and Von der Osten absolutely opposed
any being shown. The honour of the king should have demanded
that Brandt's life should be spared, in order to conceal from the
world what had passed between them, but the king had an extreme
repugnance to this; the mere name of the ex-favourite made him
tremble and turn pale. He positively declared that he would not save
Brandt unless Struensee were also spared, and the ministry
considered it necessary to immolate one of the victims, so as not to
let the other escape. The two sentences were consequently
confirmed without the slightest display of clemency.
Count von Rantzau more particularly displayed a sustained hardness
and fearful blackness of soul. He, doubtless, believed that by closing
all access to clemency, by forcing to the scaffold two intimate
friends, one of whom had been his benefactor, he should purge
himself of the suspicion of complicity, and that by sheer hypocrisy he
should cause his connection with the condemned men to be
forgotten. At any other time, instead of sitting in the council and
determining the fate of the culprits, he would have himself been the
object of a severe sentence; instead of being spared for having
betrayed the favourites, there would have been an additional charge
against him, that of anticipating the royal commands to arrest them;
hence, being well aware that, in spite of his dignities, he was
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  • 5. 8 Why Do Economies Grow? Chapter Summary In this chapter, we explore the mechanisms of economic growth. Although economists do not have a complete understanding of what leads to growth, they regard increases in capital per worker, technological progress, human capital, and governmental institutions as key factors. In this chapter, we discuss these factors in detail. Here are the main points of the chapter: • Per capita GDP varies greatly throughout the world. Whether poorer countries in the world are converging with richer countries is subject to lively debate. • Economies grow through two basic mechanisms: capital deepening and technological progress. Capital deepening is an increase in capital per worker. Technological progress is an increase in output with no additional increases in inputs. • Ongoing technological progress will lead to sustained economic growth. • A variety of theories attempt to explain the origins of technological progress and determine how we can promote it. These theories include spending on research and development, creative destruction, the scale of the market, induced inventions, and education and the accumulation of knowledge. • Governments can play a key role in designing institutions that promote economic growth. • Investments in human capital are a key component of economic growth. Learning Objectives: 1. Calculate economic growth rates. 2. Explain the role of capital in economic growth. 3. Apply growth accounting to measure technological progress. 4. Discuss the sources of technological progress. 5. Assess the role of government in assisting economic growth. Approaching the Material Continuing the theme of making economics personal, focus as much as you can on human capital and its effects on the economy. Students will be able to relate to how investing in themselves—education, training, new skill sets—will increase their ability to be more productive and earn more money. If the students understand this, you can then relate how economies are made up of individuals who become more productive. You can now add in capital goods and technological changes to explain growth. Chapter Outline
  • 6. Capital deepening = increases in the stock of capital per worker. Technological Progress = more efficient ways of organizing economic affairs that allow an economy to increase output without increasing inputs. Human Capital = the knowledge and skills acquired by a worker through education and experience and used to produce goods and services. 8.1 Economic Growth Rates A. Review 1. GDP measures the total value of final goods and services produced in a country. But it does not adjust for size of a country. 2. Real GDP per capita is the gross domestic product per person adjusted for changes in constant prices. It is the usual measure of living standards across time and between countries. B. Measuring Economic Growth 1. Growth rates measure percentage rate of change of a variable from one period to another using the following formula: ( ) ( ) GDP in year 2 GDP in year 1 growth rate GDP in year 1 − = 2. The rule of 70 is a rule of thumb that says output will double in 70/x years, where x is the percentage rate of growth.  Teaching Tip This is a good point to look at some examples of what this implies. Suppose your income went up by 3 percent a year. This implies your income will double in 23.33 years. But increasing that to 5 percent drops the doubling time to 14 years. C. Comparing the Growth Rates of Various Countries 1. Comparing GDP across countries is difficult. a. Different currencies b. Different consumption patterns 2. Some economists have accounted for variations in the cost of living in different countries by: a. Collecting vast amounts of data on prices of comparable goods i. Same good ii. Same quality b. Using the prices of all these goods to adjust all prices in other countries to equivalent U.S. prices
  • 7. D. Are the Poor Catching Up? 1. The very poor countries have extremely low figures.  Teaching Tip GDP in poor countries may be underestimated because most poor farmers consume their production instead of selling it, and therefore, it is not included in GDP. 2. Growth rates vary quite dramatically across countries: 3. Convergence is the process by which poorer countries close the gap with richer countries in terms of real GDP per capita. Is there convergence, i.e., do poorer countries close the gap by growing faster? a. Evidence in favor of convergence is clear in developed economies. b. For less-developed countries, the picture is less clear. c. All in all, economists find only weak evidence in favor of convergence. Review this key question and the related application: Question 1: How may global warming affect economic growth? APPLICATION 1: GLOBAL WARMING, RICH COUNTRIES, AND POOR COUNTRIES This Application explains how though many people believe that global warming will hurt economic development, research shows that the effects are more complex. Recent research by economists Melissa Dell, Benjamin Jones, and Benjamin Olken provides some useful insights. These include: If global warming can be deferred sufficiently far into the future, poorer countries will have opportunities to develop and perhaps be less subject to global warming trends. However, if global warming occurs relatively soon, then poor countries are likely to be adversely affected. Review this key question and the related application: Question 2: Is there a necessary trade-off between equality and growth? APPLICATION 2: ECONOMIC EQUALITY MAY SUSTAIN ECONOMIC GROWTH Recent research suggests that more equality may be beneficial to economic growth. An explanation may be that governments are better able to make difficult choices to sustain growth when there is more equality. Other factors include the quality of political institutions and the economy’s openness to trade. 8.2 Capital Deepening One of the most important mechanisms for economic growth is an increase in capital per worker. A. Recall from last chapter, that an increase in capital increases output even if labor does not change. 1. Additional capital shifts the production function up, increasing output. 2. Additional capital shifts labor demand out, increasing real wages. 3. An economy produces more per worker with more capital.
  • 8.  Teaching Tip One easily understandable example is four people digging a hole. First, dig with their hands (no capital). Next, add a shovel and see what happens to output per worker. Now add another shovel and so on. This shows explicitly how output per worker rises as you increase capital per worker. B. Saving and Investment The simple model of capital deepening looks at the relationship between saving (income that is not consumed) and investment. 1. Simple example of capital deepening a. Consider an economy with constant population, full employment, no government, and no foreign sector. b. Output is purchased for consumption or investment, and income is either consumed or saved. i. C + I = C + S ii. S = I c. The stock of capital depends on two factors: gross investment and depreciation. ▪ Kt+1 = Kt + It ▪ Depreciated Capital = Kt + Net investment d. Higher savings, i.e., higher investment, increases the capital stock, i.e., creates capital deepening. C. How Do Population Growth, Government, and Trade Affect Capital Deepening? 1. Population growth: A larger labor force increases total output. But with a fixed capital stock, output goes up at a decreasing rate as it lowers output per worker. 2. India has the world’s second largest population. But due to diminishing returns, output per capita in India is very low. Remind students of the following key principle: KEY PRINCIPLE: PRINCIPLE OF DIMINISHING RETURNS Suppose that output is produced with two or more inputs and that we increase one input while holding the other inputs fixed. Beyond some point—called the point of diminishing returns—output will increase at a decreasing rate.  Teaching Tip Discuss the relationship between population and economic growth here—simply producing enough to feed a large population leaves little room for producing capital goods. 3. Government spending and taxation: suppose the government increases taxes to spend more on noninvestment goods and services. a. Higher taxes → lower income → lower private savings → lower investment → less capital deepening b. If the government spent the revenue on investment goods and services → more capital deepening
  • 9. 4. Foreign sector: A trade deficit made up of capital goods increases capital deepening. 5. Capital deepening has limits because of the principle of diminishing returns. a. With a fixed labor force, an increase in capital increases output at a decreasing rate. b. Since savings is related to output, savings increases at a decreasing rate. c. However, if capital depreciates, an increase in the capital stock increases depreciation. See the appendix to this chapter for discussion of Solow growth model and the relationship between gross investment and depreciation. d. There is a natural point where gross investment is equal to depreciation. K cannot increase above this point; higher savings rates increase investment, but higher capital increases depreciation more. 8.3 The Key Role of Technological Progress A. Technological progress is when an economy operates more efficiently by producing more output without using more inputs. 1. Invention of the light bulb, thermometer, disposable diapers, etc. 2. New ideas making us more effective  Teaching Tip A good example of a new idea is electricity. Not just the invention of electricity, but how it allowed factories to be reconfigured due to having the ability to move power around a factory easily. B. How do we measure technological progress? 1. Recall the production function: Y = F(K, L) 2. Robert Solow, a Nobel laureate from M.I.T., added a measure of technological progress, A: a. Y = F(K, L, A) 3. Growth accounting is a method to determine the contribution to economic growth from increased capital, labor, and technological progress. a. We observe Y, K, and L over time in most economies. b. How much of the change in Y is due to changes in K and changes in L? Whatever growth is left over must be due to A. This is called growth accounting. C. Using Growth Accounting 1. Growth accounting can be used to understand different aspects of economic growth. 2. Look at the following applications for examples. 3. Labor productivity is the output produced per hour of work. Review this key question and the related application: Question 3: How can we use economic analysis to understand the source of growth in different countries? APPLICATION 3: SOURCES OF GROWTH IN CHINA AND INDIA China grew at a rate of 9.3 percent while India grew at a rate of 5.4 percent. Employment grew at 2 percent per year in both countries so the difference must be attributed to capital deepening and technological progress. In particular China’s more rapid growth can be attributed to a more rapid accumulation of physical capital and more rapid technological progress.
  • 10. Review this key question and the related application: Question 4: How do you measure the technological revolution? APPLICATION 4: GROWTH ACCOUNTING AND INTANGIBLE CAPITAL Economists have created a measure of “intangible” capital based on expenditures on research and development, marketing, design, and customer support. Intangible capital is an important source of economic growth. It has exceeded the contribution from traditional or tangible capital in recent years. 8.4 What Causes Technological Progress? A. Research and development funding B. Monopolies that spur innovation: Creative destruction is the view that a firm will try to come up with new products and more efficient ways to produce products to earn monopoly profits. 1. Without the ability to reap the rewards of innovation, a company will not fund research and development. 2. The government grants patents to allow for temporary monopolies for 20 years. C. The scale of the market: If markets are too small, there are not enough incentives to engage in technological progress. D. Induced innovations: Many innovations are the result of a need to cut cost. E. Education, Human Capital, and the accumulation of knowledge: Increasing the investment in human capital increases the productivity of the labor force. F. New growth theory: modern theories of growth that try to explain the origins of technological progress. Review this key question and the related application: Question 5: How do varying political institutions affect economic growth? APPLICATION 5: THE ROLE OF POLITICAL FACTORS IN ECONOMIC GROWTH This Application discusses how economist Daron Acemoglu of the Massachusetts Institute of Technology has written extensively about the role of political institutions and economic growth. Acemoglu distinguishes broadly between two types of political institutions: authoritarian institutions, such as monarchies, dictatorships, or tightly controlled oligarchies, and participatory institutions, such as constitutionally limited monarchies and democracies. History has witnessed growth under both types of regimes. This research shows that transformative economic growth requires participatory institutions.  Teaching Tip Now might be a good time to revisit production possibility curves, pointing out that poor countries have to devote most of their production capacity to food production, which leaves few resources for anything else. Therefore, they are not producing much capital, and the production possibilities curve does not move out over time.
  • 11. Review this key question and the related application: Question 6: Did culture or evolution spark the Industrial Revolution? APPLICATION 6: CULTURE, EVOLUTION, AND ECONOMIC GROWTH In studying the economic history of England before the industrial revolution, Professor Gregory Clark found that the children of the more affluent were more likely to survive. Over time, they became a larger and larger portion of the population, bringing their social virtues such as thrift and hard work with them. This created a society more likely to embrace changes in science and technology, making the Industrial Revolution more likely. 8.5 A Key Governmental Role: Providing the Correct Incentives and Property Rights A. Governments play a critical role in a market economy by ensuring that contracts are upheld and that property rights are enforced. B. This allows businesses and individuals to enter into economic transactions. C. Without this, people are reluctant to trade and the incentive to innovate is muted.  Teaching Tip World War II is a classic example of how war destroys the capital stock of a country and reduces its productive capacity. Explain to the students how much of the capital stock of Germany and Japan was destroyed during the war. With the help of the United States, huge investments of new capital took place in both countries leading to tremendous rates of economic growth in both countries. A discussion point with the students would be what is going to happen in post-war Iraq. Review this key question and the related application: Question 7: Why are clear property rights important for economic growth in developing countries? APPLICATION 7: LACK OF PROPERTY RIGHTS HINDERS GROWTH IN PERU The Application points out that in many South American cities, the poor live in slums without any clear title to the real estate they occupy. A Peruvian economist, Hernando DeSoto, points out that without clear property rights, people are not willing to make long-term investments. Perhaps more importantly, they are unable to use property to borrow money.
  • 12. Additional Applications to Use in Class Question: How is direct impact different than total impact? ADDITIONAL APPLICATION: DEM CONVENTION BOOSTS DENVER MERCHANTS Briggs, Bill “Dem Convention Boosts Denver Merchants” Posted 8/28/2008 on MSNBC.com MSNBC Summary: Key Points in the Article Denver business owners are smiling all the way to the bank after the Democratic National Convention (DNC). While several economists predict large gains from conventions others point out the local customers are often “crowded out” and negate the convention sales. Previous political convention cities back up the crowding-out theory. Boston, host of the 2004 DNC, posted a $150 million direct impact from the convention. However, subsequent studies indicated the impact was closer to $15 million after factoring in spending declines from locals and regular tourism. However Denver points out that Boston’s mayor asked locals to stay home to relieve congestion whereas Denver’s mayor asked locals to come into town and participate. A full house in every restaurant and bar coupled with record sales appears to vindicate Denver’s strategy. Critics still maintain that time will tell and when the numbers shake out the convention’s impact will not be the $160 million that Denver’s promoters promised. Proponents maintain they may be right…it may be even higher. Analyzing the News More customers mean more unit sales and higher prices. Some businesses such as local hotels actually took the forecasts to heart and more than doubled their room rates. With occupancy at 100 percent, it is easy to see that their revenues and profits increased at least for that week. Thinking Critically Questions 1. How can hotels increase their room rates and increase profits? 2. What is “crowding out” in this sense? 3. How is direct impact different than total impact? Question: How can privatizing help some countries? ADDITIONAL APPLICATION: NATIONAL TREASURE Victor, David G “National Treasure” Posted 4/17/2008 on Newsweek Summary: Key Points in the Article This article uses Mexico’s state run oil company, Pemex, as a case study into why we should fear continued high prices for oil. Pemex has been, and continues to be, a cash cow for the Mexican government. However, the government’s short-sighted approach has been to limit exploration and overall investment in Pemex and use the profits for other government interests. The company currently accounts for about 40 percent of Mexican government income.
  • 13. Now Pemex’s aging technology and existing oil fields are in decline and are impossible to fix given the political handcuffs the company faces. Managers are hampered by laws that won’t allow external investors and political parties that have their own short-term interests in mind. Mexico’s plight seems ridiculous to most capitalists who understand risk taking and the potential rewards in the oil business, but the country’s approach is not isolated. Brazil, Kuwait, Venezuela, and other oil- rich countries seem bent on making decisions that hamper the global supply of oil. With two-thirds of the planet’s oil controlled by various governments, it doesn’t appear that supply issues will be resolved any time soon as demand for oil continues to escalate. Analyzing the News Note that oil prices, like any other commodity, will continue to rise as long as demand increases are not met with increases in supply. And, if the author David Victor is right, supply may decrease as fields and technologies continue to age without additional investment. Thinking Critically Questions 1. Why are the governments allowing the oil fields to decline? 2. Why do the people in these countries allow these short-sighted approaches to continue? 3. How would privatizing help these countries?
  • 14. Appendix to Chapter 8: A Model of Capital Deepening The chapter alludes to the relationships between saving, depreciation, and capital deepening. The appendix presents a simple model of capital deepening that shows explicitly the links between saving, depreciation, and capital deepening. The model helps us to understand more fully the critical role that technological progress must play in economic growth. The main points of the appendix are: • Capital deepening, leading to economic growth and increased real wages, will occur as long as total saving exceeds depreciation. • Eventually the process of capital deepening will come to a halt as depreciation catches up with total saving. • A higher saving rate will promote capital deepening, but eventually the economic growth comes to an end as the economy reaches the new equilibrium. • Technological progress not only directly raises output, but it also allows capital deepening to occur. 8.1A A Model of Capital Deepening A. Simple model of capital deepening to focus on the relationships between savings, depreciation, and capital deepening developed by Robert Solow. B. Look at Figure 8A.1 showing the production function. Recall that it exhibits the principle of diminishing returns. Remind students of the following key principle: KEY PRINCIPLE: PRINCIPLE OF DIMINISHING RETURNS Suppose that output is produced with two or more inputs and that we increase one input while holding the other inputs fixed. Beyond some point—called the point of diminishing returns—output will increase at a decreasing rate. C. Assumptions of the Growth Model 1. Savings is a constant proportion of income and without government or a foreign sector, savings equals investment. Thus, investment is a constant proportion of income. 2. Capital depreciates at a constant rate. D. Finally, look at changes in the stock of capital: 1. Savings (= sY) increases capital 2. Depreciation (= dK) decreases capital 3. So, the change in the stock of capital = sY – dK E. Now look at Figure 8A.3 which shows all of the relevant relationships together. 1. At K0, dK < sY, which means that the capital stock is growing. 2. This is also true at K1. 3. So, K continues growing until K = K*. 4. If K > K*, dK > sY and the capital stock decreases until K = K*. 5. K* is the long-run equilibrium capital stock. F. Figure 8A.4 shows what happens if the savings rate rises. 1. Higher s leads to an increase in K and thus an increase in Y. G. What happens with technological progress? 1. Better technology leads to an increase in K and thus an increase in Y.
  • 15. H. Summary of Basic Points of Solow Model (directly from the appendix) 1. Capital deepening, an increase in the stock of capital per worker, will occur as long as total saving exceeds depreciation. As capital deepening occurs, there will be economic growth and increased real wages. 2. Eventually, the process of capital deepening will come to a halt as depreciation catches up with total saving. 3. A higher saving rate will promote capital deepening. If a country saves more, it will have a higher output. But eventually, the process of economic growth through capital deepening alone comes to an end, even though this may take decades to occur. 4. Technological progress not only directly raises output, but also it allows capital deepening to continue. Solutions to End-of-Chapter Exercises Chapter 8 SECTION 8.1: ECONOMIC GROWTH RATES 1.1 per capita real GDP 1.2 lower 1.3 False 1.4 35 1.5 This is a Web exercise. 1.6 The country with lower GDP but faster growth will overtake the larger, slower-growing country within 35 years. 1.7 It would say there was no convergence or divergence. 1.8 6 percent 1.9 Yes, poor countries that have large agricultural exports are particularly vulnerable to increases in temperatures. But in 20 years, India is likely to be more developed and relatively less vulnerable to temperature increases. 1.10 Perhaps sustained growth would lead to lower unemployment and higher incomes for the poor and middle class. This might reduce inequality. Note that this story is the opposite of the one discussed in Application 2, where equality caused growth. 1.11 The data does support the theory of convergence. SECTION 8.2: CAPITAL DEEPENING 2.1 d. 2.2 increase, decrease 2.3 180 2.4 False (it would be true for a trade deficit). 2.5 c. 2.6 It is false, because an increase in the supply of capital will increase the demand for labor and raise real wages. It would, however, reduce the return to capital. 2.7 Total investment increases. 2.8 No, the increase in the trade deficit just increased consumption. Increasing consumption does not lead to more capital deepening. SECTION 8.3: THE KEY ROLE OF TECHNOLOGICAL PROGRESS 3.1 technological progress 3.2 technological progress
  • 16. 3.3 True 3.4 False 3.5 In both of these examples, capital (in the form of computers) are employed. Some of the benefits to consumers would be attributed to the increase in capital. 3.6 This is consistent with the growth accounting finding that technological change has occurred more rapidly in China than in India. 3.7 These are examples of intangible capital. They are similar to research and development expenditures and are a form of capital. 3.8 Their finding reflects the observation that computer technology and information technology have become more important in recent years. Much expenditure in this area is intangible capital. 3.9 Employers have increasingly compensated employees in ways for which the employers have a comparative advantage (e.g., provision of group health insurance rather than wages). Hence, health insurance is not provided “free” to employees. SECTION 8.4: WHAT CAUSES TECHNOLOGICAL PROGRESS? 4.1 c. Adam Smith 4.2 False 4.3 d. 4.4 decrease 4.5 Shorter patent terms will reduce investment in research and development activities, eventually reducing the supply of new drug products. 4.6 While the quote does make an interesting point, dictators might fear the disruption that would occur with too rapid economic growth as it would give economic power to potential adversaries. 4.7 This would be an example of induced innovation—there would be increased profits to be made from investing in green energy, and we would expect more innovation under these conditions. 4.8 Mass migration out of agriculture might have temporarily increased the real cost of food, depressing real wages and causing malnutrition and decreased average height. 4.9 At the age of 50, forgone earnings (opportunity costs) are very high and the time to recoup your investment in medical school is limited compared to someone who goes to school in their 20s or 30s. 4.10 The theory faces challenges in explaining East Asian growth as there are no obvious cultural changes that have occurred in recent years. SECTION 8.5: A KEY GOVERNMENTAL ROLE: PROVIDING THE CORRECT INCENTIVES AND PROPERTY RIGHTS 5.1 False 5.2 d. 5.3 True 5.4 False 5.5 With less investment in human capital, growth will likely be less. 5.6 The reduced supply of educated workers increases the wage paid to educated workers and increases incentives for acquisition of education. The hypothesis can be tested by comparing the change in wages paid to educated workers with rates of emigration by educated workers. 5.7 Increased labor income allows parents to buy food in a market instead of producing it at home, freeing the children from producing food. Chapter 8 Appendix 1. saving, depreciation 2. b.
  • 17. 3. False 4. Destruction of capital in Japan and Germany reduced capital per worker, causing saving to exceed depreciation and capital per worker to increase. 5. Increased depreciation rate reduces the equilibrium capital stock and the equilibrium level of output.
  • 18. Other documents randomly have different content
  • 19. (5) But why was the king so angry? Solely because, from that time, I was more serious and submissive than before, which I did to render the king more reserved, but which had the effect that he supposed I disliked him; and a temper, which has been once rendered captious, soon places the worst construction upon everything. (6) I declare before God, who knows my heart, that a similar scene never occurred before or afterwards. The king once threw his glove in my face: I stooped, picked it up, and said: "Why do you do that? I am really not cross with you;" and with this he was satisfied. (7) That I never regarded this occurrence as anything but a joke, the result of youth and eccentricity, is seen from the fact that when the commission began sitting, I was not aware of my offence. In this way I believe I have answered all doubts. I am quite ready to die, and to endure all the punishments that are imposed upon me. It is God's chastening hand, which I have deserved: but I consider it my duty to speak this once. His Majesty was angry with me: hence, I was imprisoned; hence, I was put in fetters. I can offer no objection to this: I kiss the hand that smites me, but the hand which smites me can also let loose and forgive, in the same way as Henri IV. frequently forgave much greater offences. Even should you consider that this is too great mercy, and if you wish that I should humiliate myself, personally, before his Majesty, I should not regard such a thing at all as a disgrace. Oh! my judges, if you would only see what my situation with the king was! and would you could feel as greatly, but forget quite as quickly, what my present position is! Your eyes would assuredly shed tears, and your hearts would be moved by the sincerest compassion! I commend my cause to the hands of God, and beg you for what I have no occasion to beg, namely, to follow your own convictions: with that I shall be perfectly satisfied. In the letter to his Majesty, I have begged to be allowed to pass my days in peace, and by that I mean a bailiwick in a remote province. I
  • 20. BRANDT. do not know whether such a post is vacant, of which I might entertain hopes, but I know that Bailiff Arnholdt, of Bramstedt[4] (in Holstein) has long wished himself away from there, and that this post is one of the worst. Further my wishes do not extend, and what right could I have to ask! Frederikshaven, April 14, 1772. The drama of the great trial rapidly approached the catastrophe after the charges against Struensee and Brandt were delivered to the commissioners on April 21. Struensee's defence followed on the 22nd; the Fiscal General's reply and Brandt's defence on the 23rd; and so early as the 25th the sentences were promulgated. In Brandt's trial a reply was not even considered necessary, for the accuser had announced this to be superfluous in his sentence, ab uno discimus omnia. But the orders from the highest quarters were for the greatest possible speed, and the length of the sentence proves that it had been drawn up beforehand. That two human lives were at stake, was only so far taken into consideration as it was necessary to prove two judicial murders justifiable by every resource of sophistry; but how little the venal judges succeeded in doing so, will be seen from a perusal of the memorable documents which are here published for the first time without any abbreviation.
  • 21. CHAPTER II. THE TWO COUNTS. STRUENSEE'S SENTENCE—HIS GENERAL CONDUCT—THE MAITRE DES REQUETES—THE GERMAN LANGUAGE—STRUENSEE'S DESPOTISM—THE COUNCIL OF THE THIRTY-TWO—THE CABINET MINISTER—THE KING'S PRESENTS—STRUENSEE'S PRECAUTIONS—HIS DOWNFALL—THE SENTENCE APPROVED—COUNT BRANDT—HIS ASSAULT ON THE KING—HIS BEHAVIOUR—THE ROYAL ASSENT. STRUENSEE'S SENTENCE.[5] Apart from the fact that Count John Frederick Struensee has already been convicted, and has himself confessed that he has committed a terrible crime, which involves in an eminent degree an assault on the king's supremacy, or the crime of high treason, and according to the law (especially art. 1 of cap. iv. of book vi.) deserves the severe penalty of death; it is sufficiently notorious and proven that his whole conduct and management during the time when he had a share in the administration of the affairs was a chain, which, on one side, was composed of vain and audacious impetuosity; on the other, of tricks and intrigues, all of which operated to secure him the whole power and authority to the exclusion of others. At the same time he boldly employed all the measures which appeared to be useful in attaining his ends, without in the slightest degree reflecting whether they were permitted or not, and how far they accorded with the form of government and the constitution, the genius of the nation and the regulations and laws, both civil and fundamental, or were in strict opposition to them.
  • 22. His great design was partly to become privy cabinet minister, with the extraordinary and unparalleled authority which he filched in the last month of July, partly to exclude all the subjects from their king, and the king from them; partly to exercise at court and over his Majesty such an unbridled power as has been seen with astonishment. In order to attain this end, he strove, during his Majesty's foreign journey, to gain his most gracious favour by proved care for the king's health and pleasure. When his Majesty returned, Struensee behaved quietly, and seemed to think of nothing less than the attachment of charges and honours, although his ambition and his love of power desired them. He lived at court, amused himself, demanded no increase of his salary, and seemed to satisfy himself with peace and voluptuousness; but in secret he zealously strove to lay the foundation on which he intended to raise his proud fortune. It was not his business to learn the language of the country, to study the position and true interest of the kingdom, and to learn its civil laws and constitution. This was the way which he ought to have chosen; but about all these things he was, and remained, in the deepest ignorance. Instead of this, he preferred to establish the principles which his Majesty should follow in the government, so that he might use them in concealing his infamous propositions behind them, and as he had every reason to apprehend that either faithfully minded men might reveal his designs, or that the king himself should detect them; in order to prevent the former effect, he calumniated without distinction all those who had the honour of being allowed to approach the monarch, and in order to secure the latter, he strove to acquire a powerful protection, and to have in the king's neighbourhood so close, constant, and trustworthy a friend, that it was rendered almost impossible for his Majesty to penetrate this man's ways and designs. No sooner had he got his machine in perfect readiness in the year 1770 than he at once set it in motion.
  • 23. Since the sovereignty our kings have had a council, composed of men who were experienced in the laws and customs of the country, and had studied the true state-system and real interests of the land, while, at the same time, they knew the rules which were applicable in cases that occurred. It was their office to attend the king, as often as matters of importance were to be laid before him, in order to afford his Majesty the necessary explanations about everything he wished to know, so that he might give his decision. These men, however, as members of the council, had no vote, no expedition, no secretaries; for everything depended on the king's will, and everything was carried into effect by the departments concerned. This traditional and so natural council Struensee and his adherents[6] wished to have entirely abolished and quashed, for this man apprehended that if such a council existed, and even if it were composed of his own friends, the time would arrive when it would oppose his injurious propositions, and reveal them to the king, as he could not exclude them (the members) from speaking with his Majesty, and representing to him what was best for him and the land. For this end Struensee had previously calumniated the ministry by all sorts of insinuations, and even depicted in the blackest colours those of their actions which were evidently to the advantage of the king and the state. His Majesty the king, who heartily loves his people, only desires honest officials, and jealously holds to his sovereign power, now lost his confidence in the council, wished to appoint other men to it, and to give it a different constitution; but Struensee, by false statements, and the most cunning tricks, laid such obstacles in the king's way that the council gradually ceased to meet, and was finally solemnly abolished by a decree of December 27, 1770.
  • 24. At the same time, he became maître des requêtes, and as it was his plan that only he should have the right to speak to the king about the affairs, and that all other persons should be excluded from doing so, it appeared to him that the remaining colleges might still lay some impediments in his way. In order to prevent this, he represented to his Majesty the King, who wished to be thoroughly acquainted with the affairs sent in from the colleges for his most gracious decision, that nothing would be more useful for this object than for the colleges to be ordered to deliver their written requests in a portfolio, so that the king might be allowed the requisite time to read through the memoirs and reflect. By this brilliant, and apparently so useful advice, this man gained his object of also "excluding" the colleges from the king. He soon seizes the portfolios, and thus becomes the sole master to lay matters before the king at his pleasure. If the colleges wished to produce further reasons for the king's better information, they must apply to Struensee, and thus he alone became what the council and the colleges together had formerly been. Under the pretext of a more rapid expedition of various matters, and in order to display the royal authority in its right supremacy, he issued cabinet decrees, which were carried out without the colleges concerned being informed of them,—a conduct which necessarily produced the greatest confusion, and which a man dared, who was neither acquainted with the country nor its laws, its condition nor its language. But this did not trouble him at all, so long as he could grasp all the respect and all the power. This ignorance of Count Struensee in everything, which every minister in Denmark must know, and his extremely slight efforts to obtain a knowledge of it, entailed innumerable disadvantages, both generally and for private persons. In the colleges, which were formerly accustomed to send in their reports in Danish, a special official had to be appointed to translate
  • 25. them into German, so that Count Struensee might read them in this language. The Danish Chancery, the only college which continued to report in Danish, had only too often opportunity for learning that these representations were not read at all, as only an extract of the proposition, which, by command, was inserted in what was called the Rotulus, was translated into German and seen by Count Struensee, after which the resolution ensued in the German language, and was again translated into Danish in the Chancery. It could not fail but that the resolution often proved equivocal, incomprehensible, and but little adapted to the affair, of which the man who represented it to his Majesty had only rarely a correct idea. Private persons who wished to send in petitions to the cabinet, and had drawn them up in the Danish language, ran about to find a German translator, as they were of the possibly not incorrect opinion that their memorial, if such was only in Danish, would not be read, while these cheap translations often turned out so, that it was impossible to discern what was the real object of the petition. Count Struensee's ignorance of the organization of the colleges, his unwillingness to instruct himself about it, and his exertions to reform the entire old state constitution, and to increase the number of his adherents by appointing persons everywhere, and to the highest offices, who owed their fortune to him—all this led him to lay hands on one college after the other. And as he would not and could not work himself, he employed other men in carrying out the important reforms, several of whom afterwards confessed that they had no knowledge of the advantages and defects of the former organization of these colleges, nor attempted to acquire it, as they were only ordered to draw up a plan of the new arrangements after a certain predetermined date. After Count Struensee had drawn all power and authority into his own hands by removing the privy council, by weakening and reconstituting, and by the exclusion of verbal reports, it was not long ere his Majesty's subjects perceived the effects of his, Struensee's, despotic principles and ideas.
  • 26. As a consequence of the before-mentioned paternal and mild government, to which people had been long accustomed in Denmark, and which had to some extent acquired a traditional right, every one who had obtained a royal appointment considered himself justified in believing that he should retain it so long as he behaved himself properly and attended to his duties, and therefore ran no risk of losing his post against his will, so long as he was not declared unworthy of it through a judicial sentence on account of malversation, errors, or negligence. These moderate principles, which characterised the mildness of the government, and had many excellent results, were not at all to Count Struensee's taste, who did not wish to be in the least degree impeded when the object was to ruin people, and imbue others with terror. For this reason it was heard frequently, nay, almost daily, that first one, then the other, royal official was removed by a cabinet order, without their learning what error they had committed, or in what their offence consisted.[7] Several persons also lost their posts without any royal resolution on the subject being imparted to them, and without knowing anything of it, till they learned that their office had been given to another man by a cabinet order. This conduct was even extended to the dismissal of entire colleges. The entire magistracy, consisting of from eighteen to twenty, or even more persons, was abolished, and a new magistracy was appointed by a cabinet order addressed on April 3, 1771, to the president, who had been appointed to this post only a few days previously, and also by a cabinet decree, and who contented himself with informing the previous members of the magistracy by letter that they were dismissed, and the new ones that they were to assemble at the town-hall without the deposed members learning what offence they had committed, or why they were discharged. In addition to the magistracy, there was another college or public assembly in Copenhagen, namely, the so-called thirty-two men, as, owing to the bravery and fidelity so solemnly displayed by the
  • 27. Copenhageners during the siege, and on the establishment of the sovereignty,[8] it was conceded among the privileges granted to the citizens on June 24, 1664, that they should be allowed to elect thirty-two of the best and most respected citizens, who would, with the magistracy, consult about the welfare of the city, and its revenues and out-goings. In these privileges access to his Majesty's person was also granted to the city deputies and the magistracy. This assembly, which was regarded as the highest of these privileges, and had had many good results, and, moreover, did not cost the king or city a farthing, was also dissolved by the aforesaid cabinet order, by virtue of which the chief president informed the men that they were no longer permitted to meet, and ordered the council-hall to be closed. This, and many other instances of a similar nature, which all proved that nothing was sacred to this equally incautious and absolute man, and that he was as great an enemy of all sense and mildness as he was of order and good morals, produced a striking effect upon the nation, which fancied itself suddenly removed under an "Oriental climate." Some lamented and sighed, others expressed their amazement or bitterness in one way or the other. But all were agreed that his Majesty's mild and paternal heart for his subjects was still the same, if their complaints and sighs could only penetrate to the throne, and the real posture of the affair be represented to his Majesty. This, however, seemed quite impossible, owing to the precautions which Count Struensee had taken in this respect. He had placed his intimate friend, Count Brandt, near the king,[9] and as he, in accordance with the well-known proverb, nulla amicitia nisi inter bonos, was not fully convinced of the duration of this friendship, he sought to insure its permanence by a mutual interest, and, as will be shown presently, at the expense of his Majesty and the royal treasury. Count Brandt, who was always about the king, confirmed him in everything that Count Struensee alleged or insinuated, and
  • 28. prevented everybody from having an opportunity to convince his Majesty of the opposite truth. There was no council, and, so to speak, no minister. No one succeeded in speaking alone with the king, save those persons of whose devotion Count Struensee considered himself assured and if it ever happened, it was only for moments which admitted of no detailed explanation or discussion. All the rest were held aloof from his Majesty, which was even extended to his Majesty's own most exalted relatives and his nearest family, toward whom the king had formerly displayed special tenderness and affection. But from the time when Count Struensee had usurped the administration of the court and of the whole country, the latter never had an opportunity of conversing alone with the king, as they would not have omitted to represent to his Majesty the good of his subjects and their grief, of which these exalted personages afterwards, when the opportunity was offered, have given incontrovertible proofs, which can never be sufficiently praised and recognised. It could not fail but that Count Struensee should render himself odious to all, through such despotic, arbitrary, and unreasonable conduct. His emissaries, and the adherents whom he still possessed, tried, even though they did not dare to justify or excuse his undertakings, at least to boast of his asserted disinterestedness, and to spread far and wide that he was satisfied with his moderate salary, without asking either money or honours for himself or his friends. How far this met with belief may be left an open question. But it is certain that Count Struensee took very carefully-devised measures to conceal his selfishness at that time, and so long as it lasted. But it was afterwards seen only too plainly that he was an extremely interested and selfish man, of whom it may be justly said that he pillaged his Majesty's treasury. He had a very respectable and considerable salary, which ought to have been sufficient, as he had everything free at court down to the very banquets he gave. He knew, and often enough proclaimed, in
  • 29. what a bad state the public treasury and his Majesty's were from former times. For all that, after the council was dissolved, and he had become maître des requêtes, he allowed hardly three months to pass ere he, by an abuse of his Majesty's good heart, demanded and received from his most gracious lord a present of 10,000 dollars for himself, and a similar sum for his friend Count Brandt. It might be supposed that so considerable a present for these two persons, of whom one was maître des requêtes, and the other directeur des spectacles, and who both had only held these offices for a short time, would have satisfied their greediness for a while. But, instead of this, we find that it grew and increased, for Count Struensee, after receiving the above mentioned present in February or March, again received in May, or at the end of two or three months, from his Majesty 50,000 or 60,000 dollars, and Count Brandt the same sum, so that these two persons, in the short time of three or four months, cost his Majesty, in addition to their regular salary, 140,000 dollars, or at least 120,000—for which of these two sums is the correct one cannot as yet be stated with certainty, owing to the confusion prevailing in Count Struensee's accounts—and this in addition to the presents which before and after this date they procured for their good friends: such as Justiz-rath Struensee 4,000 dollars, Countess Holstein 3,000, Chamberlain Falckenskjold 3,500 or more, and so on. That Count Struensee's irresponsible selfishness was duly considered and intended, is seen from the artificial machinery which he formed, solely that he might be able to take these sums without any one detecting it. For this purpose, he first proposed the abolition of what was called the "Trésor"—which consisted of a sum of money laid by for unforeseen expenses, and that it should be paid into the public treasury. As the Trésor, however, must pass through the cabinet on its way to the public exchequer, he proposed to his Majesty to reserve 250,000 dollars of the same, in order to form a special cabinet treasury which would stand under his control.
  • 30. In this way Count Struensee obtained a good opportunity for receiving considerable sums, without any one being acquainted with the fact. He behaved in such a way with this treasury, that after it was established in April, 1771, and at that time consisted of 250,000 dollars, at the end of May only 118,000 dollars remained of the original contents, although the king had no other out-goings but these presents. The remaining 118,000 dollars would have gone by degrees the same road as the others if Struensee had been allowed sufficient time. Count Struensee's disgraceful avarice and selfishness are thus rendered so evident, that those persons who proclaimed him as disinterested must fairly confess that they knew him badly, and were not properly informed.[10] But this is not sufficient. There is the very strongest presumption that Count Struensee in this traffic committed an impudent, disgraceful, and highly criminal fraud. When the account found among Count Struensee's papers, and approved by his Majesty, of the income and expenditure of the special treasury for the months of April and May, was laid before his Majesty, as it was considered suspicious, the king at once declared that he perfectly well remembered having at that time given 10,000 dollars to the queen, 6,000 to Count Brandt, and other 6,000 to Count Struensee, but no more. Just as these sums amount to 22,000 dollars, it is on an inspection of the document as clear as the sun that the addition was in the first instance 22,000 dollars, but the first figure two was converted into a three—a change which is so visible that it is at once noticed—and that a one was afterwards added, for which there was no other room but in front of the line drawn underneath, which is quite contrary to the practice in the other accounts, and in this very one on the preceding page, where the in-comings are calculated. Hence, then, the said sum of 22,000 dollars became 132,000, which is proved by the fact that the two sums of 6,000 dollars for
  • 31. Struensee and Brandt were converted into 60,000 by the addition of a cipher, and 2,000 dollars were added for Falckenskjold. This last sum seems to have been added, in order not to be obliged to convert the second two into a cipher in the sum of 22,000 dollars, which had become 130,000. These suppositions, the real strength of which only that man can comprehend who has the document in question before him, is also confirmed by other concurrent circumstances—as, for instance, that the account for April and May is written by Struensee himself, while the other extracts and calculations are written by the secretary of the cabinet, which probably occurred because Count Struensee wished no one to be cognizant of the embezzlement effected by him, and further by the fact that, from this time, Count Struensee laid no account of the treasury before the king until the end of October, although in June there was an out-going of 2,000 dollars, which were given to Justiz-rath Struensee.[11] This negligence or omission appears to have taken place purposely, so that his Majesty, after so long an interval, might not thoroughly remember the real state of the treasury. To this must be added his Majesty's own alleged and very natural conjecture that it cannot be credited that he gave Counts Struensee and Brandt 50,000 or 60,000 dollars apiece, while he only made the queen a present of 10,000. Count Struensee, who is obliged to confess the selfishness of having requested this money of the king, will not, however, acknowledge this embezzlement, but asserts that his Majesty at that time, on his request, gave him 50,000 dollars, and Count Brandt the same sum, and that, as the 10,000 dollars previously given had not been taken to account, they were included in this amount. On the document being produced before the commission, however, he was obliged to allow that all the facts concurred against him to arouse such a presumption, which he had no evidence to refute, while at the same time, he regretted his want of accuracy and his negligence. That Count Struensee's ambition was not less than his avidity, and that his "moderation," as regards honours and titles, was in no way
  • 32. inferior to that for money and resources, is equally self-evident. Within two years he made such progress as others of greater nobility and higher merit hardly make in thirty years and more. According to the position which he occupied, he could not fail to stand in great honour both at court and in the city. But all this was not enough for him. Through constant persuasion he brought it about that his Majesty appointed him on July 14, 1771, privy cabinet minister, which design he contrived to conceal up to the last moment, even from his most intimate friends, just as he, and Chamberlain Brandt were a few days later raised to the rank of counts.[12] Although as privy cabinet minister he regarded himself as the first private person in the whole kingdom, still, the title and the authority he had hitherto possessed did not suffice him; but he wished to have prerogatives connected with them which were not at all seemly for a subject, and involved a portion of the sovereign authority which belonged to the king alone. Count Struensee had already seized on all the power, and as those persons who were about the king spoke in Struensee's behalf, and his Majesty thus only heard praises of his minister, it was perfectly natural that he should have a certain liking for him, and as he was nearly the only person who discussed the affairs with his Majesty, it could not fail that the latter should consent to everything he proposed. Thus he had everything that he could crave; but this was not sufficient to satisfy his immoderate ambition, as the colleges refused to obey unless they saw the king's signature. This did not suit Struensee, and there are grounds for believing that it did not agree with his secret designs, and his wish that his signature should be worth as much as the king's, and that the persons concerned should obey both signatures. This he attained by the royal order projected by himself, which was issued to the colleges on July 15, 1771, with reference to his office as privy cabinet minister, and was afterwards published by them; for
  • 33. in the first article of this cabinet order the decrees signed by Struensee, and provided with the cabinet seal, were placed perfectly parallel with those signed by his Majesty himself, and countersigned by Struensee, and in the fourth article it is expressly ordered that everybody should execute the cabinet orders issued and expedited by Struensee. It is true that this article seems to contain a certain limitation, where it states, "so far as no royal regulation or resolution speaks to the contrary;" but what follows on this may be rather regarded as an extension, for, instead of stating, as might be expected, that in such a case execution was to be deferred until a royal resolution was issued, it continues, "in which case, the fact is to be immediately reported to the cabinet," so that if any one thought it his duty to remonstrate against Struensee or his order, he would have to apply to Struensee himself; and if the minister then commanded him to obey his first order and carry it out, he must do so. This is what Count Struensee intended and practiced. In this way, however, he filched a portion of the sovereignty, and, from what had previously happened, it might be concluded that he intended to exercise it alone. As Struensee acknowledges having read the Lex Regia, and as he as minister must have been fully acquainted with its contents, he must have known that article 7 resolves "that all government decrees, letters, and documents shall be signed by the king himself." But the article of the royal law most applicable here is the 26th, in which the most revered king and first autocrat, Frederick III., appears to have had a species of presentiment that a Struensee might one day arise in Denmark, because it is stated in it how injurious it is when the mildness and kindness of kings and masters are so abused that their power and authority are cut away in an almost imperceptible manner, and for this reason it is recommended to, and impressed on, the kings of Denmark zealously to watch over their sovereignty and autocracy in order to keep it uninjured; and the conclusion is, that if any one should dare to desire or appropriate anything which might in any way be prejudicial to the sovereign authority and monarchical power of the king, everything of the sort shall be
  • 34. regarded as null and void, and those who have not hesitated to acquire such a thing, or tried to do so, shall be punished as insulters of majesty, because they have committed the greatest crime against the supremacy of the royal autocracy. Count Struensee could have read his sentence here, if he had not committed another and equally coarse offense against the king's highness, apart from the fact that he was not only an accomplice and adviser, but also an inciter of the assault made on his Majesty's person by his intimate friend Count Brandt. The way in which Count Struensee exercised the power and authority entrusted to him as privy cabinet minister does not excuse him, but, on the contrary, incriminates him in the highest degree, because it is a further proof that he regarded the welfare, honour, life, and property of his Majesty's subjects as purely dependent on his discretion. He revoked, by cabinet orders drawn up by himself, and under his hand, former royal resolutions, of whose existence he was cognizant. In the most important affairs he issued orders without his Majesty's knowledge, and he partly neglected the extracts from cabinet decrees imposed upon him as a duty by the resolution of July 15, which he was to lay before the king every week, or drew them up in such a way that it was impossible to discover the nature of the orders, or the effect they were intended to produce. When the direction of the privy treasury was entrusted to him—for he wished to direct all the treasuries—he thought proper to give the cashier fresh instructions from his hand; and when the cashier represented to him that he held a royal instruction which could only be revoked by another royal resolution, he gave him an answer which contained a species of reprimand, and ordered him to obey the order and instruction given by him, Struensee. The pretty corps of Horse Guards, which was composed exclusively of Danes and Norwegians, and consequently did not please Count Struensee—or, as it only consisted of two squadrons, was not very
  • 35. expensive—was disbanded in February, 1771, by Count Struensee's proposition, and in accordance with his wish, but against the opinion of the college.[13] The Fusilier Guards still remained. They consisted of five companies, and were composed of none but clever and trustworthy men, to whom the guard of the royal palace, and before the apartments of the royal house, could be safely entrusted; but they possessed a "quality" which prevented Struensee from being able to place confidence in them,—they were nearly all Danes and Norwegians. He had long resolved on the reduction of this corps, and spoken with several persons about it, most of whom, however, dissuaded him. At length he carried it through, and without his Majesty's knowledge (as the king himself has declared)[14] issued, on December 21, 1771, a cabinet order to the Generalty and Commissariat College, by which the five companies of Foot Guards were to be transformed into five companies of grenadiers, and one company of them be attached to each of the five regiments quartered in Copenhagen. He allowed December 21, 22, and 23 to pass without telling his Majesty anything about it, although Struensee, on the 23rd, procured the Generalty the royal approbation of the said order of the 21st, because this college required a royal resolution, and refused without it to execute the cabinet order, as it considered the affair of too great importance, and foresaw the consequences that would result from it. As, however, the Guards on December 24 declared that their capitulation must be kept, and that it was contrary to it to make them serve in other regiments, Struensee found himself compelled to lay the whole matter before his Majesty, and advised that force should be employed, and the Guards compelled to obey. However, a royal order was issued on December 24, by which those guards who would not serve as grenadiers were granted their discharge. The result of this operation of Count Struensee's therefore was, that his Majesty lost from his military service several hundred brave,
  • 36. faithful, and trustworthy men, who were all natives. Count Struensee's improper and treacherous conduct in this affair is at once seen on comparing the protocol kept about the cabinet orders, with the weekly extract from them, which was laid before his Majesty. In the protocol we find the said order of December 21, under No. 709, quoted with the correct date. After this, several other cabinet orders were drawn up, to No. 733, on December 22, 23, and 24; but the second cabinet order of December 24 is not found among them, but a space is left open at the very end, in order to book it afterwards. But in the extract from the cabinet orders expedited from December 18 to 25, which was drawn up on December 31, and afterwards laid before his Majesty, we find these two orders of December 21 and 24 quoted together at the end, under the numbers 22 and 23, just as if they had been expedited at the same time and under the same date, while, on the contrary, the cabinet orders issued from December 22 to 23 are omitted from this extract. From this a general idea of the completeness and trustworthiness of these extracts may be formed. This protocol further proves how Count Struensee—although he had long before sufficiently provided that no one should bring before the king either verbally or in writing anything that might injure him, Struensee—found himself obliged, at the time when the guards were dismissed, to take just precautions. For under date of December 23 he expedited two cabinet orders, one to (the Danish chief postmaster) Etats-rath Waitz, in Hamburg, that the packets for his Majesty sent by post should be addressed to the cabinet, the other to Court-Intendant Wegener, by which all letters and parcels sent to the king, and letters and portfolios that came in from Copenhagen, should not be delivered in the king's ante-chamber, but in the cabinet. One of these orders, though they immediately concerned the king, was entirely omitted in the above-mentioned extract, while the other was quoted imperfectly, so that his Majesty was not at all informed of these regulations.
  • 37. Just as Count Struensee more and more evinced his distrust of the nation, so the reciprocal hatred of the nation against him increased more and more (and was expressed), in various ways. Thus, in the summer of 1771, various pasquinades were in circulation, and although their contents and style sufficiently proved that they emanated from the common people, still they all displayed the strongest attachment to his Majesty's person, and a readiness to sacrifice life and blood for him, while the bitterness had no other object but the privy cabinet minister and his adherents. This, and the fact that a few sailors and others who believed themselves insulted, went out to Hirschholm in order to lay their complaints before his Majesty himself, caused Count Struensee such terror, that he made preparations and was on the point of taking flight and running away. As he, however—probably by the advice of his friends—desisted from this design, it seemed as if he, on the other hand, prepared to maintain himself in his post, and against everybody, in every possible way. This gave cause to various hitherto unknown measures. When their Majesties came to town, at which times Count Struensee always accompanied them, they were surrounded by an unusual escort; wherever they stopped in town, at the palace or in the theatre, double sentries were posted, &c. Such a course increased the bitterness of the nation, and especially of the Copenhageners, against Count Struensee in more than one respect. They saw in it a proof that he persuaded his Majesty to believe there were among the inhabitants people who entertained bad designs against his Majesty and the royal house. They were confirmed in their suspicion that Count Struensee entertained other, more extensive, ambitious, and, at the same time, most audacious and criminal designs. It must also be confessed that much of what happened during this summer, but more especially in autumn, must confirm them in this
  • 38. belief, and produce a strong presumption of it, as he has himself been obliged to confess that several of his measures were intended to maintain himself in every way in the situation he occupied. As already stated, the Horse Guards were disbanded. As, however, Count Struensee, who always lived in fear, wished to have some cavalry in the vicinity of the court, an exercising troop was formed. But, ere long, he learned that both the officers and men of this corps were natives, so that they were not at all the sort he wanted, whence his confidence in them was lost, and this troop was also disbanded in the autumn. He then ordered the Seeland Dragoons to the court and the city, but they have given incontrovertible testimony that they were no better disposed toward him than the preceding dragoons. He now obtained a resolution that two of the regiments lying in garrison here should be removed to other towns in the spring. But, instead of letting this fall on the two youngest regiments, as the rule was, he wished—for reasons known to himself, and which it is not difficult to conjecture—that they should be his Majesty the King's, and his brother the Prince Frederick's, regiments, contrary to the opinion of the Generalty, and without informing his royal highness, the colonel of the latter regiment, or asking his assent to it. Furthermore, he managed to have a new commandant of Copenhagen appointed, in whom he believed he could place full confidence. But what heightened the distrust most, and excited the inhabitants of Copenhagen, was the following last-discovered circumstance, that, according to Struensee's instructions to the commandant, cannon, with cartridges and the proper complement of men, were held in readiness at the arsenal, so that they could be used at the first signal,—a regulation which was also concealed from his Majesty. [15] The king and the royal house, as well as the whole nation, must at last lose all patience when they were compelled to see, in addition to
  • 39. all the rest, how audaciously he behaved in the harsh and extraordinary education which he dared to give to the crown prince, and by which his royal highness ran the greatest risk of losing his health and life. Thus, then, the bitterness was raised to the highest pitch, and must have had the most dangerous consequences, when a fortunate end was put to the widely-extended designs and despotic administration of this vain, thoughtless, arbitrary, and ambitious man. As it is clear, therefore, that Count Struensee, in more than one way and in more than one respect, has both himself committed the crime of high treason in an eminent degree, as well as participated in similar crimes with others; and that, further, his whole administration was a chain of violence and selfishness, which he ever sought to attain in a disgraceful and criminal manner; and that he also displayed contempt of religion, morality, and good manners, not only by word and deed, but also through public regulations, the following sentence is passed on him, according to the words of article 1 of chapter iv. of the 6th book of the Danish law:— Count John Frederick Struensee shall, as a well-deserved punishment for himself and an example and warning for others of the same mind, have forfeited honour, life, and property, and be degraded from his dignity of count, and all other honours which have been conferred on him, and his noble coat of arms be broken by the executioner: John Frederick Struensee's right hand shall be cut off while he is alive, and then his head, his body quartered and exposed on the wheel, but his head and hand shall be stuck upon a pole. The commission at the Christiansborg Palace, April 25, 1772. J. K. JUELL-WIND. H. STAMPE. LUXDORPH. KOFOD ANCHER. F. C. SEVEL. G. A. BRAËM.
  • 40. A. G. CARSTENS. J. C. E. SCHMIDT. O. GULDBERG. Two days after this barbarous sentence was passed, it received the full royal confirmation in the following words:— We hereby approve, in all points, the sentence passed by the Commission of Inquiry appointed by us at our Palace of Christiansborg, which declares John Frederick Struensee, on account of his crimen læsæ Majestatis, in more than one point to have forfeited honour, life, and property; he shall be degraded from his dignity of count, and all the other dignities conferred on him; his coat of arms shall also be broken by the executioner; his right hand shall be cut off while he is alive, and then his head, his body quartered and exposed on a wheel, but his head and hand stuck on a pole. To which those whom it concerns will pay most submissive attention. Given at our Palace of Christiansborg, this April 27, 1772. CHRISTIAN. O. THOTT. LUXDORPH. A. SCHUMACHER. DONS. HOYER. COUNT BRANDT'S SENTENCE. By Count Brandt's own confession, the declaration of the ex-cabinet minister John Frederick Struensee, and various circumstances, it has been already proved that Count Enevold Brandt was not only Struensee's good friend, but also his intimate, whom he (Struensee) entrusted with his greatest secrets. In consideration of the gracious intimacy in which he stood with his Majesty the King, it would have been his duty, therefore, to prevent
  • 41. all the things which, according to his own declaration when examined, he disapproved, and must have recognised in Struensee's life, sentiments, and undertakings, as foolish, audacious, and detrimental both for the king and the government and the country. Instead of this, he, as a criminal subject and unworthy confidential servant of the king, made common cause with Struensee, continually remained his confidant, and sought to sustain him. He allowed himself to be employed by Struensee in keeping everybody from the king, so that nothing should be revealed to his Majesty about Struensee's criminal conduct, and the share himself had in it. To the great concern of all his fellow-subjects he behaved haughtily, and not with the due respect to his king, both in private and in the sight of all men. He did not show the submissive reverence to the king which every subject owes him, and expresses voluntary from his heart on every occasion in word and deed, but he rather opposed the king, in order to maintain Struensee's favour, and acquire an extravagant fortune and special advantages for himself. The memoirs exchanged between him and Struensee furnish a proof of his unreasonable pretension, and that he was conscious of his reprehensible behaviour toward the king. From this cause he should have altered his conduct, or sooner have resigned a post which was repulsive to him, and for which he did not consider himself equal. But no, he did not wish to oppose his patron and protector, who, for his own purposes, desired to keep him, Brandt, about the king's person, while, on the other hand, Count Brandt expected greater fortunes in service and pecuniary affairs from him, Struensee. As directeur des spectacles, he assisted Struensee in producing a misunderstanding in the royal family by contriving that a separate box should be given Prince Frederick in the playhouse, so that his royal highness should not be in the king's box, and thus have an
  • 42. opportunity for revealing to his Majesty, Brandt and his intimate friend's most culpable conduct.[16] He obtained through Struensee in a short period 60,000 dollars from the royal treasury, although he must have known, or at least could not have doubted, that he had not earned them by his services or general conduct. When he thanked his Majesty for this large sum, he did not mention the amount which Struensee had procured him, because he knew that the matter was not all right, and Struensee had forbidden his doing so, lest his Majesty might thus be informed of that which the approved extract, found among Struensee's papers, has since revealed to his Majesty and every other person who sees the extract. Count Brandt has been guilty of all this criminality, although his conscience must reveal to him at every moment that he was acting as an unfaithful subject, and against the duty and the bond imposed on him by the king's gracious familiarity, and in defiance of the warnings which the two letters from an anonymous writer found in Brandt's pocket-book so impressively and clearly contained, by reminding him of his duties, and advising him what he should do if he did not wish to risk his head. He only allowed himself to be ruled and guided by his arrogance, fortune-hunting, and avarice. But though the things mentioned appear so criminal, they cannot be compared with the crime of laying hands on the exalted person of his Majesty the King, which Count Enevold Brandt has himself clearly and regularly confessed in his examination before the commission, and as it has been proved and confirmed by several witnesses. For this crime may be regarded as if Count Brandt wished to hazard the king's death, because the result of such an assault cannot be foreseen, and an unlucky blow on a tender part has frequently caused death. He was angry with the king, and demanded satisfaction of his master, whose well-deserved admonition he ought to have accepted
  • 43. in penitence for his previous conduct, and have withdrawn himself from his (the king's) countenance, in order not to irritate him more. On the contrary, he consulted with his intimate friend Struensee how and when he should assault the king, and reflected what sort of weapon he should employ, and held it in readiness; but after more mature reflection, made no use of it. After he had been warned by Struensee that the king was now alone, and the right time had arrived, he goes with reflection, and a firm determination to avenge himself, in to the king, orders out the two lads in attendance, and bolts the door, so that no one may come in to oppose his resolution or to prevent his design, and forces his Majesty the King, by language and assault, to offer resistance. While doing so, he wounds his Majesty in the neck, bites his finger, and at the same time insults his benefactor and king by audacious words and expressions of such a nature that everybody must feel horrified at repeating them. It is true that Count Brandt has urged, in his excuse, that his Majesty has pardoned him for this occurrence, yet, even were it so, it can only be supposed that his Majesty wished to overlook so great an insult for a time. Count Brandt, however, has produced no proof of this, and his Majesty alone is in a position to judge how far this indulgence should extend. This most atrocious and audacious undertaking of Count Brandt cannot be regarded otherwise than as an open attack on the king's person, and the greatest crime of high treason, which deserves the punishment attached to such a crime in art. 1, 4th chapter of the 6th book of the Danish law. We, therefore, consider ourselves justified in condemning Count Brandt, and passing the following sentence:— Count Enevold Brandt shall have forfeited honour, life, and property, and be degraded from his dignity of count, and all the other honours conferred on him; his coat of arms shall be broken by the executioner on the scaffold; his right hand cut off while he is still
  • 44. alive; then the head; his body quartered and exposed on the wheel; but his head and hand stuck on a pole. The Commission at the Christiansborg Palace, this 25th April, 1772. J. K. JUELL-WIND. H. STAMPE. LUXDORPH. KOFOD ANCHER. F. E. SEVEL. G. A. BRAËM. A. G. CARSTENS. J. E. E. SCHMIDT. O. GULDBERG. The royal confirmation of the sentence was to the following effect:— We hereby approve in all points the sentence passed by the Commission of Inquiry appointed by us at the Christiansborg Palace, which declares that Enevold Brandt, for his most atrocious and audacious design and assault on our own person, shall have forfeited honour, life, and property, and that he shall be degraded from his dignity as count, and all the other honours conferred on him; that his coat of arms shall be broken by the executioner on the scaffold; after that his right hand be cut off while he is alive; and then his head; and that the body shall be quartered and exposed on the wheel; but the head and hand stuck on a pole. Whereupon those whom it concerns are ordered to act accordingly. Given at our Palace of Christiansborg, this April 27, 1772. CHRISTIAN. O. THOTT. LUXDORPH. A. SCHUMACHER. DONS. HOYER. These sentences are certainly among the rarest documents which the annals of justice contain. Struensee was convicted of a single
  • 45. crime; Brandt was innocent. In the sentence, Struensee's crime is not stated, and the whole document is a disgustingly long narrative of undecided actions, not one of which would offer grounds for a sentence of death. Reverdil, usually so cool and impartial, cannot restrain his feelings when he writes about these atrocious verdicts:— "The sentences were minuted by Wiwet. They were inserted in the newspapers; among others, the Leyden Gazette. They seem expressly drawn up to dishonour the king, the judges, and the country. The crimes proved are confounded in them with presumptions, offences with imprudences, faults peculiar to favourites with those in which, as they were covered by the king's authority, the culpability falls on him. In the fear of not charging enough, intentions and passions are taken into account. In the sentence passed on Brandt, after describing the scene of fisticuffs, which so strongly revealed the king's imbecility, they were not ashamed to add: 'Count Brandt has certainly alleged in his defence that the king had pardoned him; but even supposing that the fact was proved, it could not be understood otherwise than that his Majesty was kind enough to suffer so great an extremity for a time. After all, the culprit has proved nothing in this respect, and his Majesty is the sole judge of the extent he gives to his own indulgence.' When this extraordinary document was read to the man whom it concerned, he said very justly in his way, that its author deserved a hundred lashes with a stirrup-leather." It is not surprising to find that the authenticity of the sentences was not believed when they were published in foreign countries. Thus we read in the Annales Belgiques for May, 1772:— "A sentence ought to state the facts simply, and declare the penalty which is pronounced against the man who has been guilty of them. Care should be taken to avoid mixing up in it reasonings and epithets which denote in the judge a disposition for vengeance or any passion: now this pamphlet, which is offered us under the title of a sentence, displays from one end to the other such marked characters of a violent prejudice against the condemned, that this in
  • 46. itself would be sufficient to render it suspicious. It forms a tissue of vague imputations which can be easily destroyed." But the dominant faction did not trouble itself about what might be said: sentence had been passed, and the next matter of importance was to have it executed before any revulsion took place in public opinion.
  • 47. CHAPTER III. THE EXECUTION. CONFIRMATION OF THE SENTENCE—STRUENSEE'S CORRESPONDENCE— RANTZAU'S TREACHERY—AN UNFEELING COURT—STRUENSEE'S PENITENCE —THE SCAFFOLD—APRIL 28—EXECUTION OF BRANDT—HORRIBLE DETAILS —DEATH OF STRUENSEE—HIS CHARACTER—ENLIGHTENED DESPOTISM— THE FIRST SERVANT OF THE STATE—THE QUEEN DOWAGER. On the same day that the sentences were signed by the Commissioners, Uldall, the counsel, went to Struensee, in order to inform him of the termination of the trial. When the advocate entered the cell, he said to the unhappy victim of a conspiracy: "Good count, I bring you bad news." And with these scant words he drew a copy of the approved sentence out of his pocket. Calmly and silently the man condemned to such a cruel death perused the sentence, but not the slightest alteration took place in his countenance. Then, he handed the ominous paper to Dr. Münter, who happened to be with him at the time. While the latter was trembling as he read the sentence, Struensee began to talk with composure with his counsel, and asked if all the points of his accusation had been regarded in passing his sentence, especially that about the education of the crown prince; to which Uldall answered in the affirmative. Struensee added, that he must confess that, if he had had children of his own, he would not have reared them in any other way.
  • 48. "And what will Brandt's fate be?" he exclaimed. "His sentence is exactly the same as yours," Uldall replied. "And could his counsel do nothing to save him?" Struensee went on to ask. "He said everything that could be urged in his favour, but Count Brandt has too much laid to his charge." This information caused Struensee greater emotion than the news of his own fate. But he soon regained his composure, and added a few words about a petition to the king for mercy, although he at the same time expressed his conviction, that even this last step would meet with no success. When Struensee and Münter were left alone again, the man who was now Death's own assured his friend that his impending punishment did not terrify him. He had thought that he might be broken on the wheel, and was already considering whether he could suffer this kind of death with patience. "If I have deserved such a death," he then added, "my infamy would not be removed, though those disgraceful circumstances were not annexed to it. And if I had not deserved it, which I cannot assert, sensible people would do me justice, and I should gain in point of honour. And upon the whole, what is honour or infamy in this world to me? My judges had the law before them, and therefore they could not decide otherwise. I confess my crime is great: I have violated the majesty of the king. Many things I might not have done if I had been sufficiently acquainted with the law,—But why did I neglect it?" These words, uttered by Struensee so shortly before his death, seemed to reveal a doubt of his perfect innocence. Perhaps, however, this uncertainty was rather produced by his conversion to the Christian religion, by the recollection of past errors, and by the effect of a long and painful imprisonment; while the imminent and awful close of his life might also have produced impressions on him which made him fancy himself guiltier than he really was. Or was it the voice of his conscience at the remembrance of the ruin which he
  • 49. had brought on his young queen, which spoke out of his soul, though he dared not clothe it in language? My readers will remember how much this unhappy man was affected by a letter which he received from his father, at the time when he still maintained his irreligious principles. He now delivered to Dr. Münter a letter for his parents, leaving him the option whether he would send it at once, or after the execution. Münter chose the latter course, as he knew Struensee's death was very near at hand, and he wished to save them the anxiety of expecting the melancholy news of it. The letter was to the following effect:— Your letters have increased my pain; but I have found in them that love which you always expressed for me. The memory of all the sorrow I have caused you, by living contrary to your good advice, and the great affliction my imprisonment and death must give you, grieve me the more, since, enlightened by truth, I see clearly the injury I have done. With the most sincere repentance I implore your pardon and forgiveness. I owe my present situation to my belief in the doctrine and redemption of Christ. Your prayers and your good example have contributed much toward it. Be assured that your son has found the great good, which you believe to be the only true one. Look upon his misfortune as the means which made him obtain it. All impressions which my fate could make or give will be weakened by this, as it has effaced them with me. I recommend myself to your further intercession before God. I pray incessantly to Christ, my Redeemer, that he may enable you to bear your present calamities. I owe the same to His assistance. My love to my brothers and sisters. Brandt also received from his defender, Bang, a copy of the sentence passed on him, and, like Struensee, sent in a petition for mercy. It was reported that he would be pardoned. For Owe Guldberg, the most influential of the judges at Christiansborg Palace, had thrown himself at the feet of Queen Juliana Maria, who now held the
  • 50. authority in her hands, and implored a mitigation of the punishment. But the queen dowager absolutely refused to listen to him, not even when Guldberg earnestly implored that at least Brandt's life might be saved. Crushed by such harshness, and bitterly undeceived as to the extent of his influence, he returned to his apartments, threw himself on the bed, refused to take food, and passed several days in apathetic reflection. Brandt's mother and brother asked permission to come to court to implore the king's clemency, and, being unable to obtain it, they wrote to the queen dowager and to Prince Frederick. The answers they received were full of compliments, but gave them no hope. It was said, however, that in the council, when the question of confirming the sentence was discussed, there were voices for mercy; but that Counts von Rantzau and Von der Osten absolutely opposed any being shown. The honour of the king should have demanded that Brandt's life should be spared, in order to conceal from the world what had passed between them, but the king had an extreme repugnance to this; the mere name of the ex-favourite made him tremble and turn pale. He positively declared that he would not save Brandt unless Struensee were also spared, and the ministry considered it necessary to immolate one of the victims, so as not to let the other escape. The two sentences were consequently confirmed without the slightest display of clemency. Count von Rantzau more particularly displayed a sustained hardness and fearful blackness of soul. He, doubtless, believed that by closing all access to clemency, by forcing to the scaffold two intimate friends, one of whom had been his benefactor, he should purge himself of the suspicion of complicity, and that by sheer hypocrisy he should cause his connection with the condemned men to be forgotten. At any other time, instead of sitting in the council and determining the fate of the culprits, he would have himself been the object of a severe sentence; instead of being spared for having betrayed the favourites, there would have been an additional charge against him, that of anticipating the royal commands to arrest them; hence, being well aware that, in spite of his dignities, he was
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