TRANSACTIONS OF SECTION F. 681 



the aggregate demand is found to be 2-7 @ 2 price (for each class of supply). 

 The effect of a 'classified' tariff was then shown, and, under the conditions taken, 

 a price of 2 for electricity for light use, 0-8 for power use, and 0-6 for heating use, 

 it was found that the aggregate demand is increased from 2-7 to 6, and the mean 

 price per unit reduced from 2 to 1'13, with the same percentage of profit. This 

 diagram does not pretend to represent actual conditions, but it was presented for 

 the purpose of demonstrating the operation of the principle of classification. 



The paper concluded with a reference to the practical import of the question 

 at issue. It was pointed out that there is an immense potential demand for 

 electricity for power and domestic heating and refrigeration, which could be 

 rendered active by the sufficient lowering of price. 



Without attempting to measure the practical effect of a wise classification 

 of tariffs, the author claimed that if any economy can be realised by the system 

 it is not right to ignore it or condemn it upon insufficient grounds. Though the 

 economy may not be great, small price changes sometimes effect great altera- 

 tions in the volume and channels of trade. 



An appendix dealt with the legal aspect of the question, the author holding 

 that ' classified ' tariffs would not be held to be illegal, as the clause in the 

 Electric Lighting Act, 1882, which enacts that ' undue preference ' shall not be 

 given, was translated from the Railway Acts, and, as is well known, classification 

 upon the basis of value of the goods carried, quite apart from the separate cost of 

 transporting them, is practised by all the railway companies. 



2. India and Tariff Reform. By Professor H. B. Lees Smith, M.A. 



In this paper two subjects were discussed — (1) The Protectionist movement 

 in India ; (2) The Position of the United Kingdom under a Scheme of Preferential 

 Tariffs with India. 



(1) The Protectionist movement in India : — 



Public opinion in India overwhelmingly Protectionist. The Swadeshi move- 

 ment. The effect of Indian nationalism upon Protectionist sentiment. The 

 famine problem and the demand for diversity of industry. The infant industries 

 of India. The influence of Protection upon the industrial conservatism of India. 

 Examination of the chief Indian industries and discussion of the effect of Protec- 

 tion upon them. 



(2) Position of United Kingdom under a Scheme of Preferential Tariffs with 

 India : — 



Analysis of imports into India from foreign countries of which a part might, as 

 the result of a preference, be supplied by Great Britain. Corresponding analysis 

 of imports into Great Britain from foreign countries of which a part might, as the 

 result of a preference be supplied by India. Would a protective tariff for the 

 United Kingdom lead to Protection for India? 



3. Economic Transition in India. By Henry Dodwell, B.A. 



India is generally acknowledged to be in a state of economic transition, but 

 the precise meaning of this term is not fully appreciated. Hence we inquire 



(1) What are the relatively permanent states between which India is moving? 



(2) What are the causes and effects of this movement ? The movement is seen 

 in the contrast between rural and city India. The rural village is self-sufficing, 

 the cultivator has little or no capital, the economic functions of landlord and 

 cultivator are not yet differentiated, a money economy is not yet completely in 

 use. The economic inefficiency resulting is paralleled in ancient and mediaeval 

 times in Europe. City India, on the other hand, is in an entirely different 

 economic category, with its advertisements and competition, its joint-stock com- 

 panies (native and European), its large accumulation of capital, banking and 

 credit institutions, its factories and large-scale production, with a consequent 

 wide demand for technical education. 



The existence side by side of these contrasts is a unique economic phenomenon. 

 In Europe the development from primitive to more highly developed forms has 



