The price demanded will be high, and the commodity or the work
will be bad in proportion. Thus much, indeed, of political economy our
ancestors of the reign of King James knew. But it must be admitted,
that they strangely confounded it with a totally different
matter--with that forestalling of which we lately gave an account. The
difference is, that in the one case there is the right to buy and sell
as much of a commodity, or as little of it, as you please; and, in the
other, the right to be the sole seller of the commodity. It is as
great as the difference between freedom and slavery. No man can ever
obtain a monopoly through money, unless it be by underselling all
others; and that is a form in which it need not be grudged. However
wide may be the field occupied by the forestaller, he cannot prevent
others from competing with him, if he sell so dear that they can
undersell him. The effect of an enforced monopoly is to drive
competitors away, and give the monopolist the whole market on his own
terms.
Many governments raise a revenue by granting monopolies. They levy a
large sum from the individuals to whom they concede the privilege of
selling or making certain articles. It need hardly be said, that it is
a very costly revenue, causing much more loss to the people than the
amount it brings to the public purse; but it is a tempting resource,
as it costs no trouble, and does not at least immediately bring the
government to issue with the country.
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