Note 20 — Chapter II · The General Rights of Things.

There are cases in which monopolies, and the exclusive privileges of trading companies are not only allowable but absolutely necessary. "For there are, says Vattel, commercial enterprizes that cannot be carried on without an energy that requires considerable funds, which surpass the ability of individuals. There are others that would soon become ruinous, were they not conducted with great prudence, with one regular spirit, and according to well supported maxims and rules. These branches of trade cannot be indiscriminately carried on by individuals: companies are therefore formed, under the authority of the government; and these companies cannot subsist without an exclusive privilege. It is therefore advantageous to the nation to grant them: hence have arisen in different countries, those powerful companies that carry on commerce with the East."—Law of Nat. b. i. c. viii. sect. 97. p. 42.