Page:Indian Journal of Economics Volume 2.djvu/148

 156 BOOKS os of War: and ways of reducing it augseated by economic theory. A Lecture by F.Y. ]D(BWOITH, ]?ellow of All Souls, Professor of Political ]eonomy in the University of Oxford. Oxford: University Press. 191. pp. 48. Price ls. nt. Professor Edgeworth d his usual iuhnit_able style hrows valuable suggestions for reducing the cost of war, of course mailly as an economist and not as a statesman. He extends the money costs of war, to include not only the national expenditure, but also the indirect loss of national income consequent on. the dislocation of production and the deteri- oration of the capital fund aeeumuli;ted in peace t_me for production. Some authors have also estimated and included the loss of living capital and the whole cost of preparing for war in times of peace--thus making the money cost of war somethitg colossal and immeasurable. ' It must not be supposed however', sa).s Professor Edgevorth,. 'that sugges- tions for reducing the cost are unavailing'. He elaborates at some length the conception of capital, 'involving the element of time' (Jevons) and represents the process of production and consumption as being a continuous flow--a stream descending throu8 h the successive stages of production from raw materials to half-manufaqtured goods, on to finished goods fit for consumption, back again to re.creation of wealth by replenishing, through distribution, the agents of production. This system of capital, in response to the demand, furnishes superflous luxuries as well as necessaries; and the ax'rangements for financing a wax', in the opinion of Professor Edgeworth, should be such as will divert labor and etpital from the production of luxuries-and leave the existing channels of production otherwise as little impaired as possible, so that at the termination of war a readjustment may take place with least work and waiting. At the close of his lecture the Professor suggests the ereatibn of a permanent committee concerned with econont preparation of war as distinguished from its preparation. This aspect of war shotlid be made the special object of scientific observation and analysis; and some such methods as have been adopted in averting conflicts between labor and capital might, he thinks, be applied to disputes between nations---disputes that are called oliil, but are often largely eonone.