But some adecpiate measure should be adopted now. Large
bodies of land ought not to be held, so as to enable the owners
to speculate out of the advance in values which the pressure of
events must soon compel.
ARTIFICIAL MONOPOLIES.
Artificial monopolies exist where an individual, by means of
the employment of great wealth, or several individuals, b}' means
of combination among themselves, restrict competition in pro-
duction, or in buying or selling, and thereby fix prices of com-
modities either above or below the natural standard which is
determined by the result of unrestricted competition. The
number of natural monopolies is large ; but their success in con-
trolling or modif^nng the effects of competition varies according
to the wealth which they may control, or the thoroughness of
combination which they are able to effect.
These combinations are not necessarily, and perhaps not gener-
ally, made in the form of an express agreement. Where the
number of competitors is not too large, tacit understandings are
often almost as effectual as express agreements to restrain com-
petition. But in the absence of an express agreement, or a
marked effect on prices, the term monopoly is not applied. The
principle is, however, the same, whether the combination be
extensive and organized on the basis of an express agreement



THE DISTRIBUTION OF WEALTH. 283

or confined to a few individuals acting with some degree of
concert to promote a common object. It is a principle which
cannot be eliminated from business transactions. Hence results
a difficulty in the application of direct legislative remedies.
