Economy and Society: Icelandic economics were dictated by a Danish trade monopoly that severely hampered economic growth. This along with a series of natural disasters decreased population (from 50,444 to 34,000 between 1703 and 1708).
Landowners exacted heavy payments from their peasants in both goods and labor. Peasants were required to row the landowners' fishing boats and assist in bringing the fish to market.
A new Danish company chartered to control Icelandic trade. Severe punishments were exacted on those who violated this monopoly by purchasing goods from other foreign vessels. Iceland was also divided into four commercial districts, and trade between districts was forbidden.
A new administrative office created in Iceland to conduct official business and oversee judicial activities regarding the Church. New price schedules for imports and exports raised prices on Icelandic imports and lowered them on exports.
King Frederik IV's ascension led the Althing (Icelandic parliament) to prepare a memorial requesting relief from economic hardship. This memorial resulted in
Frederik V granted Skuli Magnussaon, an Icelandic official, a royal rescript for the latter's plan to improve trade and industry in Iceland. Magnussaon made some advances despite continued opposition of Danish interests in the Icelandic trade.
