Social Science And National Economy

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See Restrictions on Trade, from a Colonial Point of View, by David Synie (republished from the Fortniijhtly Review), Boston, 1872.
§ 210. These facts are only extreme instances of the power of the trader to dictate his own terms, when the producer has to ARTIFICIAL DEARNESS AND CHEAPNESS. 213 send his wares to a distant market. These conspiracies are but the extreme form of the general understanding that grows up between the body of capitalists, when the chief supply of an article is concentrat
...ed within a limited area and in a small num- ber of hands. Such an understanding, easily reached in such circumstances, will, unless checked by some other competition, enhance the price of goods quietly and by degrees that escape notice, but are none the less burdens upon the producers and the consumers. The traders can "fix their own prices" in such cases.
The same power of the trader over the prices that rule in a distant market is sometimes displayed in producing an artificial but temporary cheapness, to he followed by such a rise of prices as will recoup him for the loss.


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