78G TRANSACTIONS OF SECTION F. 



about 3,301,312/., and also increased station and general accodinioclation, costing' 

 about 2,000,000/. more, giving about, say, 5,000,000/. new capital to be raised, which 

 at 4 per cent, would cost 200,000/. per annum, involving another million of traffic 

 receipts to cover — in all requiring traffic receipts of 9,000,000/., which is wholly 

 out of the question in this country. 



The result is that to make even the not extravagant reduction of 25 per cent, 

 would involve an average taxation of over 30,000/. a year on every county in Ireland, 

 and as the country is already taxed beyond its financial abilities, and the contribu- 

 tions in aid of local taxation made out of Imperial taxation under the various Acts 

 of Parliament afi'ecting the question have been pledged as security for the interest 

 on the advances made by the Treasury to finance the Land Act, this addition 

 to the taxation, if ever possible, would be extremely inopportune at the present 

 moment. 



3. On certain Peculiarities of Small Duties on Imports and Exports.^ 

 By Professor F. Y. Edgewokth, D.C.L. 



Mr. Biclserdike's theory that ' advantage is always possible in normal circum- 

 stances from either import or export taxation when the taxes are small enough,' ^ 

 can hardly be proved by verbal argument, involving, .is it does, the mathematical 

 principle that when a variable magnitude is in the neighbourhood of a maximum, 

 the increment of the variable corresponding to a small finite increment of a 

 variable on which it is dependent is likely to be particularly small. The case 

 excepted by Mr. Bickerdike as very unlikely is practically impossible. The proof 

 of the theory is strict when there is fulfilled the condition that the collective 

 demand (at a price) is the sum of the amounts demanded by each individual, and 

 the collective supply is similarly formed, But even witbout this datum, the 

 theory is highly probable. For (1) the condition maybe assumed as the 'least 

 arbitrary supposition ' ; ^ (2) small taxes, such as the theory mostly prescribes, 

 maj' be inadequate to overcome the friction resisting a change of scale and plan 

 in supply and demand ; (3) failing the condition, the truth of the theory depends 

 on a certain coefficient having a value which it probably has. Light rather than 

 fruit is to be expected from the theory. 



FBI DAY, SEPTEMBER 4. 

 The following Papers wers read :— ' 



L Tlic Financial Side of Irish Zand Purchase, 

 Ptij Professor C. F. Bastable, M.A., LL.D. 



Different problems are involved in the Land Question— political, social, and 

 financial — and the financial side is of growing importance. This is due to tlie 

 Act of ]!)03. The mea.*nre is 'based on finance.' Its promoters failed to recognise 

 the rapidity of opeiations and the possible changes in economic conditions. The 

 actual progress of land purchase will speedily exhaust the fund provided to meet 

 losses. 



Suggested remedies: — 



(1) Substitution (in whole or part) of stock for cash as payment to sellers 

 There are objections to this course. 



(2) Issue of short-term notes instead of stock. The absence of real relief and 

 financial danger by this expedient were dwelt upon. 



(3) Taking up of Irish Land Stock by National Debt Commissioners. Only 



' Published in the Economic Journal, September 1908. 



* Economio Journal, vol. xvi. p. 529. 



« Bickerdike, Economio Journal, vol, xvii. p. 583, 



