What does this quote by adam smith mean?

I should remember more about Adam Smith from my economics cl but I believe this is where it got extremely boring. About all I can add is that supply and demand regulate the market and that this restraint business must stop it from working properly. So it seems I agree with the above person. . .it seems that some "traders" acted without charters and without rules and so rather than being prohibited from operations because of their actions, they could pay a fine to the king and continue operations. I also recall that Adam Smith was the Father of Economics or something to that effect. I was still napping. You do realize that as a corporation in the US, you have to file papers with the state to become incorporated, or a corporation and you pay annual taxes to the state (franchise taxes) or lose your corporate status. Just thought I would throw in something I do know.