[2][3] The foremost representative of the Age of Liberty, de facto leader of government and of the Caps from 1719 to 1738 was the Chancery President, Count Arvid Horn.
The Riksdag of 1738 was to mark a turning-point in Swedish history, the Hats carried everything before them, and the aged Horn was finally compelled to retire from a scene where, for thirty-three years, he had played a leading part.
At the Riksdag in 1765, the Caps returned to government and they struck at once at the weak point of their opponents by ordering a budget report to be made, and it was speedily found that the whole financial system of the Hats had been based upon reckless imprudence and the wilful misrepresentation and that the only fruit of their long rule was an enormous addition to the national debt and a depreciation of the note circulation to one third of its face value.
This revelation led to an all-round retrenchment, carried into effect with a drastic thoroughness which has earned for this parliament the name of the "Reduction Riksdag".
The Caps succeeded in reducing the national debt, half of which was transferred from the pockets of the rich to the empty exchequer, and establishing some sort of equilibrium between revenue and expenditure.