Page:Indian Journal of Economics Volume 2.djvu/27

 AR'I' OF EOON'01tIO DEVELOPMENt' 17 some state produced an artificial obstacle and limited the trade along what would otherwise have boor/ the most profitable route. Arrangements can generally be made for through traffic to pass through in bond, so that it is not much interfered with. The greatest economic loss is caused by i'ous naturally suited for connecting populous regions in wo contiguous political territories being rendered unremuneraive by a customs barrier, wih he resul ha mos of he possible rafllc never comes into existence, and such as does goes by existing but longer routes. Where the customs barrier exists as part of the main fiscal policy of the. country, it is not likely to be modified with a view to developing any particular district. In India, however, there are many native states which impose impor and expor duties,. which, except when very moderate, tnd to retard the development of trade. Octroi levied by large munici- palitios may have a like effect. The of such artificial barriers is that removed or modified by only advantage they can often be negotiation and bargaining. Every case must be considered on its merits, and much ingenuity may usefully be employed in providing a lUid pro pto for he loss of revenue by the state or muni- cipality so as to enable the construction of a railway which is estimated to pay after abolition or modifica- tion of the duty. In laying out railways near or approaching to the frontier ot any largo country it is usually necessary to take strategic requirements into consideration. Mili- tary dispositions must be considered first in the proposed alignments; but, whilst adequately meeting this need, many modifications or additions may be made for the commercial development of the district. It should be remembered that the methods of warfare are evolving so rapidly that the nost !up-to-date export advice as to the stragic requirements is alone trustworthy.