If Government sanctioned two tea-retailing companies at
Canterbury, these would probably make a less rate of profit: though,
after the first heat of fight was over, they would probably agree to
sell the same tea at the same (profitable) rates, and the consumers
would gain little out of so restricted a competition. If a new
company were to apply for a private Act to enable them to retail tea
at Canterbury, the old company would show Parliament that themselves
sufficed to satisfy the requirements of the public.
The case of tea is a very specious one. By Government taking to
itself each branch of business in succession till all was in
Government hands we should arrive at Communism. For each successive
interference of Government a reason from economy can generally be
found: as in the case of telegraphs, so in the case of tea. The real
objection to Government monopolising the retail of tea is, that so
long as we live under a system of competition we had better stick to
that plan altogether. At every turn of our present struggling system
there is waste; but the ultimate effect of competition is to reduce
the waste to a minimum. In the extreme case of tea it is pretty clear
that the system of stores will, when fully developed, give the public
all or nearly all they might hope to get from Government retailing,
and at the same time will reduce the loss by competition among tea-
retailers.
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