Case 14. A Proposed Corner in Wheat

Caius, a very wealthy grain merchant, desires to become still wealthier. Hence he asks other rich men, after pooling their money, to buy all the grain that is in the market, if it can be done, in order that they may afterward sell it at a higher price and thereby gain an enormous sum. Julius, a Catholic, among others is asked to contribute money to the business, and indeed consents, but is soon to repent of it, for, whatever the conspirators do, the price of grain gradually falls and Julius loses the sum contributed. Afterward he comes to confession, and his confessor, doubtful concerning his obligations, asks:

1. What is a monopoly?

2. Is a monopoly unlawful, and why?

3. What is to be said of the case?

1. This question is answered above, p. 315.

2. This question is answered on p. 318.

3. The case. Caius, a rich merchant, wished to make a corner in wheat and asked some other rich men to join him. The intention was to buy up all the wheat available, and then sell it at a higher price. Such an intention is at least uncharitable, for if the attempt succeeds it produces widespread hardship and disaster. If the prices demanded by the monopoly are higher than are fair and reasonable and than what would rule if there were no monopoly, the monopoly is also against justice, and entails the obligation of making restitution to those whom it has injured.

Julius therefore committed sin by joining the would-be monopolists. However, as they did not succeed in their design it was only a sin of intention, and Julius may be absolved if he is sorry for what he has done and firmly resolves never to do the like again.