Page:Indian Journal of Economics Volume 2.djvu/12

4 STANLEY JEVON$ ' mast. then gineer the ments of deciding discuss with the effects the what of suggested original program proposed reductions economist and the en- variations or curtail- with a view to or economies, if some be necessary, can be effected with the least sacrifice of utility. In all this re-adjust?nent to bring the program within practicable limits the problem of how to obtain the maximum advantage from the capital available for outlay, is essentially one involving economic principles, as well as the principles of sound finance. Even these litter are not sufficiently widely under- stood, and a proper formulation of financial principles in relation to development is badly needed. H rightly applied, these principles will enable the State and the promoters . of public utility undertakings to avoid errors which are only too common in both direc- tions---I mean, on the one hand unremnnerative outlay of capital, and on the other hand that excessive caution, which often means consequent stagnation, and loss ?8 of opportunities and due to want of confidence through having an insufficient knowledge of the fundamental principles of economics and finance. So far as is possible within I proceed now to enumerate and principles applicable fall conveuiently into a brief article, explain the chief ing any territory and the of the latter. The second talc-geographic principles geographical configuration group contains the econo- relating to trade between different places, and to transportation of commodities; ?he third group is that of the purely economic principles of consumption and production; the fourth group contains the principles of finance; and the fifth group consists to be recognized is of a geographic and demographic character, and concerns mainly the close relation existing between the activities of the people inhabit- They group to developing a country. five groups. The first