Page:Indian Journal of Economics Volume 2.djvu/346

 889 - H. STANLEY ;EON$ ough no o be incurred."  He has previously defined economic outlay ss hs made "for he purpose of seeurin future revenue." He does no explain precisely how he future revenue may be secured; bu presum- ably he does no refer only to reproductive, i.e., commercial undersings by he stta, bu would include he raising of additional revenue by taxation where he special expenditure n question had provided he means of paying he extra tx, ss in he example of roads given above. Bsssble specifically sts s buildings existing for public purposes, from e Houses of. Psrlismen down be he smslles town hall are consumers' capitl from sources oer and heir cos mus be supplied han loans. Sidgwick stes his views very clearly, and, as I think, correctly. He says, "There are two chief cases in which prlvsbe borrowing is recognized ss .justifiable: first, where he loan is employed productively, so hst..he additional profi obtained by he use of i supplies s fund from which lhe ineresl may be paid, and a ocrlain properlion of lhe principal annually repaid; and secondly, .where il is employed io meel an exeeplionsl neeeasily for enlarged consumption, which could n.o be defrsyed wihou inconvenience or even suffenng ou of..he income of s single year, so hs i is good economy o spread i over several years. Each of hese eases has is eounterpsr in public finance."  He proceeds o regard ss productive outlay, boh hs which yields s .diree revenue by means of s Governmen under- tking and t, hs which is reaped from be community ss sn aggregate of individuals by means of increase of txsion. He remarks in regard ta he latter class of productive outlay, hs i is sometimes very difficult to say how fax any psrt, iculax increase is really  Ptt2d/ _nanoe, p. $70. s he Prindlles o! Poltfica oomnm,, rd. ed., pp. 9 .