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Gabel's administration suppressed the islanders in various ways.
The Færeyinga Saga says: "the place of the ting of the Faroese was on Streymoy, and there is the harbour that is called Tórshavn". The ting was followed by a market which gradually grew into a permanent trading area.The Viking settlers in the 9th century established their own parliaments, called tings, in different parts of the islands, it being the tradition in each case to hold the ting at a neutral and thus uninhabited place, so no one location gave anyone an advantage.The main ting for the islands was convoked in Tórshavn in 825, on Tinganes, the peninsula that divides the harbour into two parts: Eystaravág and Vestaravág.Located in the Northeast Atlantic, the Faroe Islands comprise 18 small islands, characterised by steep cliffs, tall mountains, narrow fjords – and a population of 50,000.) is the capital and largest town of the Faroe Islands.In 1856, the trade monopoly was abolished and the islands were left open to free trade.
It is not known whether the site of Tórshavn was of interest to the Celtic monks who were probably the first settlers in the Faroes.
From 1768 and during the next 20 years onwards Ryberg was allowed to carry on an entrepot trade which was mainly based on smuggling to England.
Because of the French-British conflict there was room for this kind of operation. Ryberg was the first person who thought of making a financial profit from fishing, which later became the most important economic factor to the islands.
Tórshavn therefore had more contact with the outside world than did the other villages.
Under the Norwegian, and then Danish rule, government officials made Tórshavn their home.
All of these things, combined with the fact that Tórshavn was the seat of the ting of the islands, influenced the town’s development. The population was divided into three equally large groups made up of farmers, their families and servants, trade and government officials and people who owned no land and therefore not much else; this included the landless proletariat from the villages that during this period came to Tórshavn in search of work.