The rise of prices during the 17th and 18th centuries had been very considerable, doubling, trebling and even quadrupling in the first half of the 18th century. The mercantilistic doctrines of the time led, therefore, to attempts to keep prices low by prescribing rates for wood and in general by restricting and regulating wood commerce.
This was done especially by interdicting sale to outsiders, forbidding export from the small territory of the particular prince; or, at least, giving preference to the inhabitants of the territory as purchasers and at cheaper rates.
Owing to the small size of the very many principalities, the free development of trade was considerably hampered by these regulations. Sometimes also wood imports were prohibited, as for instance, in Wurttemberg, when, in 1740, widespread windfalls had occurred which had to be worked up and threatened to overstock the market.
Wood depots under government control were established in large cities, and the amount of wood to be used per capita prescribed, as in Koenigsberg (1702).
In Berlin, in 1766, a monopoly of the fuel wood market was rented to a corporation, excluding all others except by permission of the company. This was in 1785 supplanted by government administration of the woodyards.
Another such monopoly was created in the “Nutzholzhandelsgesellschaft” (Workwood sales agency) for the export trade of building materials from Kurmark and Magdeburg, which had prior right of purchase to all timber cut within given territory, the idea being to provide cheap material for the industries. This, too, came into the hands of the State in 1771.
In Prussia, to prevent overcharges, the Jews were excluded from the wood trade in 1761.
The exercise of the Forsthoheit (princely supervision), originating in the ban forests, and favored by the mercantilistic and absolutist ideas of the 17th and 18th centuries, gradually grew until the end of the 18th century to such an extent that the forest owners themselves were not allowed to cut a tree without sanction of some forest official, and could not sell any wood without permission, even down to hop-poles, although the large landed property owners vigorously resisted this assumption of supervisory powers. Much discussion and argument regarding the origin of this right to supervision was carried on by the jurists upon the basis of Roman law doctrine, and it was proved by them to be of ancient date. The degree, however, to which this supervision was developed varied considerably in the different parts of the empire, according to different economic conditions. The interference, and the protection of forests appeared more necessary, where advanced civilization and denser population created greater need for it. We find therefore that the restrictive policy was much more developed in the Southern and Western territories than in the Northern and Eastern ones, where the development begins two centuries later.
The oldest attempts of controlling private forest property are found in Bavaria (1516), Brunswick (1590) and Wurttemberg (1614). Here, forest properties were placed either entirely under the supervision of the princely forest administration, or, at least, permission for intended fellings had to be secured. Later, these restrictions were considerably reduced in rigor (Bavaria, 1789).
In Prussia, private forest property remained free from government interference well into the 18th century. An edict by the Great Elector, in 1670, merely inveighs against the devastation of forests by their owners, but refrains from any interference; and the Forstordnung of 1720 also contains only the general injunction to the owners not to treat their forests uneconomically. But, in 1766, Frederick the Great instituted a rigid supervision providing punishment for fellings beyond a special budget determined by experts. Soon after the French revolution, however, unrestricted private ownership was re-established.