A few quotes from the Rabbi on 'Israel and the Nations'
in which he rules against a decree that is the result of slanderous and incendiary words
The haskama [decree] reached by a minority within the community, according to which he is to close the shop he opened…their reason being that it appears to them that it causes damage to those passing through the public domain, since the location where the shop opened is a juncture of the world's four winds, and Sons of the Covenant [bnei brit, i.e. Jewish people], as well as others - who are not Sons of the Covenant - congregate there. And when the shop is set up there for buying and selling even more people congregate, bringing on additional damage. The women on their way to the ritual bath must pass by there, and they pass by the non-Jewish people who have come to buy from the vendor, and must return to bathe again, at times their bathing may be prevented due to the presence of non-Jewish people that might perchance be there…
We considered the haskama and the reasons it cites… and saw that it is constructed along unformed lines and upon void fundaments, and that they have no clear reason…to shut down his shop, which he built in the public domain, in a place where people come and go. Where, if not there, should he set up shop?! As a matter of fact, it is a place fit for a shop, since it is public domain, and a place where people come and go. To withhold his livelihood and deprive him of income…it is certain that they have not the right to deprive a person of income so as to satisfy their wish, no person would ever say so.
And as to the damage they consider is caused by the shop to those in the public domain, we saw no additional damage being caused, even according to their claim, for the location is indeed a juncture of the world's four winds, where people come and go, both Sons of the Covenant and those who are not Sons of the Covenant. If so, what is to be gained or lost in setting up shop to sell olive oil and butter and honey in that place, since it is fit for passersby and it is a large market…?
It is but a pretext they seek, and slanderous words to ignite the fire and the raise the flames - in order to have more fights and arguments with the shop owner. Whether they have a conflict with him or not, they have discovered an excuse to create disharmony, as is their custom. For nowhere do we find that a townspeople can hold back an individual, who is one of them, from setting up shop in the public domain to earn a livelihood…neither did we find that a shop was disallowed in town because the women pass by the shop on their way to the bathhouse. Such things are done every day, in all places.
Tokfo shel Yoseph, Part 1, paragraph 20, p. 23. Bnei Issachar Sephardi Library Publishing, Jerusalem, 2004