iminish the quantity, and perhaps destroy a
part of it with advantage to himself. Thus the Dutch East India
company were said to have done with the spices. {131} But the
individual dealer, though he is interested in a general high price and
monopoly, is still more interested in selling as much as he can; and the
higher the price, the more careful he is not to waste or consume more
than he can help. In this respect, the monopoly of the many is not half
so hurtful as the individual monopoly. This proves that all the vulgar
errors, which occasion reports of farmers and dealers destroying their
corn, are not only without foundation, but would produce an effect
quite contrary to the avaricious principle, by which such men are
considered as being governed. {132}

---
{130} There is one moment only when they do not, that is, when they
find out, for certain, that prices are going to fall. There, for a moment,
individual interest, and general interest are opposite, and they hasten
to sell, and to reduce the price too much. But even this does not
relieve the public; for, though it makes the reduction very rapid for a
time, and may sometimes bring it below the level, it quickly rises
again and finishes when the panic amongst the dealers is over, by
remaining higher than it ought to be.

{131} If diminishing the quantity one-quarter rises =sic= the price
one-half, then the monopolist gains, if he possesses the whole market;
but the individual dealer, if he were to burn his whole stock, would
not diminish the quantity in the country one-thousandth part, and
therefore make no sensible difference.

{132} Both in London and Paris, the reports of this sort, and, (making
a little allowance for the language and nature of the people,)
exceedingly similar in nature and tendency, prevailed during the
scarcity of 1789 and 1799.
-=-

[end of page #154]

Monopoly of this sort, by raising the prices of the necessaries of life,
in the end, augments the prices of labour, the rent of land, and the
taxes of a country. We have already examined the tendency of all this;
it is only necessary to observe that the rise in prices, or depreciation of
money, which other causes bring on by degrees, this brings on
violently and suddenly. {133} This cause will always exist in a
country that cannot provide enough for its own subsistence.

How far this may go it is not easy to say; for if it is clear that the
farmer, by double prices, gets eighty-three p