Page:Indian Journal of Economics Volume 2.djvu/347

 due to other causes for this latter the supposed productive outlay and not to of national prosperity. "Borrowing kind o expenditure, therefore, though often highly advantageous, requires to be very care. fully watched." He proceeds further to point out that there are cases where expenditure cannot be made to yield any definite direct or indirect revenue, but may yet increase the total social income, and proceeds as follows: "We have already seen that from a social point of view borrowing may be profitable, by in. creasing the aggregate produce of the community, even though it does not bring in an adequate return to Government, either in the from of profits on a special business in which the loan is employed, or more indirectly by an increase in the yield of certain taxes. In such a ease, however, it is most probable that the increase munity will not incomes of interest and in be equally individual repayment the total income of the corn. distributed among the members; hence, unless the of the loan can be provided by iraposing a rate on the persons who gain by its employment, fairly proportioned to their respective gains, it has a tendency to cause a new inequality in the distribution of wealth' which ought to be con. sidered in adjusting the general burden of taxation." The prineipl.eo[ borrowing to meet "an-exceptional necessity for enlarged consumption" 'really covers the last two eases which I enumerated above, namely, borrowing for an emergency expenditure, such as war, famine, or earthquake, and borrowing for the construe. tion of works of public amenity which are consumers' goods for the public at large. I am of opinion that it is good finance to provide public markets, parks, schools, and even town loan moneys whenever they are clearly he mUnioip&l inecme can amenities such as halls, out of wanted and be expanded sufficiently to