Page:Indian Journal of Economics Volume 2.djvu/617

 EOONOAfIO 'DE VEL OPAf ENT 199 vinees which would then, and only then, enter. in. to the full responsibility of Government. If s provenreal government can do no more than propose schemes and ask for money, whilst the examination of the pro- jeers and finding of funds is exercised by a superior authority, there will be real interest aroused in develop- ment schemes and no sense of responsibility. On the other hand if the province itself has to find the funds by its own efforts, members of. the Legislative Council will take a moe active interest in proposals and will endearour to interest the public in them, so ss to obtain subscriptions to the necessary loans. It is very difficult to form any estimate of the probable financial results of Very probably the amounts sppointingly small st first, issuing provincial loans. suberibed ould be dis- except in Bombay and Bengal. This is to be expected because the habit of' nvesting in a.:new security always takes time to develop. It is not .the..immediste results, however, which matter. The test of the policy of provincial borrowing will be its effectiveness twenty years after it has been commenced. To make provincial borrowing become within a few years a source of considerable funds in comparatively backward provinces like the Punjab and United Pro- vinees, a policy of steady development of the market must be followed. no question as to government fing In the first place there must be the possibility of any provincial in its obligations to pay interest and to repay capital when due. Imperial legislation should provide that the service of any loan must come first after without provision for revenue, judicial and police There can be no absolute security, however, the means of obtaining adequate resources for interest and redemption harges; provinces must be given the power consequently the of levying new