Page:Indian Journal of Economics Volume 2.djvu/46

 86 $TAN'LEI" JEVON$ fair return upon the capital invested. This postulates an active, well-advised Government department employing many exerts; but this again is question which will ]e taken up later. It necessary to point out here that in so far as ment avails itself of private enterprise in public utilities provided, it should give every an administrative is only Govern- getting facility to promoters, firsfly to ascertain the views of Govern- nent in regard to the services to be provided in any locality, and secondly to get their plans approved and all the necessary contracts arranged, rapidly. Nothing discourages and kills private enterprise more than long delays in etting official sanction to projects requiring large investments o[ capital. In the interests of the cormtry at large every encouragement should be given to private enterprise under the control which I have indicated; and a policy shonld be adopted o[ reducing formalities to the minimnm essential to control. 9. Changes of General Level of Prices and Wages.. A most important economic principle which is almost invariably overlooked in considering projects for public works is the recurrence of tinctnations in the general level of prices o[ nearly all commodities at the same time. The tendency o[ wages to a continnons rise is also usually overlooked. The causes o[ the changes o[ the average level o[ prices cannot be fnlly discussed here. It is snfiicient to observe that they fall into two gronps: (1) cyclical or periodic fluctuations, and (2) a secular rise or fall. The cyclical variations occnr in connection with the alternate periods of excited and depressed trade which usually vary from seven to eleven years in length. Rates of wages also fiuctnae; bnt in this case the cyclical variations are less marked than in the prices of materials, and lhe continued secular increase over a long period is very important.