he advance of combination of
capital upon an enormous scale. The iron industries and the Standard Oil
Company come nearest, perhaps, to fulfilling the conditions of monopoly
found anywhere. Yet the actual effect of improved methods in great
combinations is seen to have reached the mass of the people in spite of
any tendency to sustain prices by combination. A line, No. 6, indicating
the general trend of wages for farm hands in the North, is added to more
clearly indicate the distribution of welfare through such improvements in
method. For still other purposes, the fluctuating price of silver bullion
is shown in line No. 7.

Chapter X. Exchange--Its Machinery.

_Free communication._--From what has been said in the preceding chapter as
to the nature of value and price, it will appear that the most fundamental
condition for ready exchange is perfectly free communication between
individuals as to wants and abilities to meet wants. There is implied,
also, an absolute protection of property rights and of equity in dealing
through the laws and customs of the community. No one acquires property
for the purpose of exchange unless he can foresee the possibility of
carrying out the exchange at any future time. He must also feel that he is
protected by surrounding circumstances from misinformation as to values.
In short, any community is ready for free exchange among its members only
when it maintains the conditions for fair competition. To this fairness of
competition many things contribute, aside from the governmental machinery.
There can be little trade without a common language, and the full
advantages of common speech are reached through every facility for ready
communication between all the individuals of the community. An universal
press, postal facilities, telegraph and telephone systems have all grown
up in meeting this need.

The same is true of established market places, boards of trade and produce
exchanges. Not only does the multitude of exchanges in one place lessen
the cost of such exchanges, but these make it possible for multitudes to
reach a fair understanding of what is wanted and what is offered in any
line of production. This need accounts for the tendency so frequently
noticed to establish great centers of trade in particular commodities. The
world wants a fair understanding of what the world contains, and these
methods of bringing together buyers and sellers are the natural outgrowth
of this need.