SECTIONAL TRANSACTIONS .—F. 339 
became common, both in the transformation of old businesses and the 
establishment of new ones. The world-wide tendency to combination 
was especially illustrated in banking and railways, both highly competitive 
at the outset. The financing of industry was facilitated by the foundation 
of stock exchanges and the introduction of investment trusts. Labour 
organisation was weak, while charitable associations had some influence in 
modifying social conditions. 
Mr. E. D. McCaLLtum.—Recent economic changes in Scotland (12.0). 
The object of this paper is to describe some of the more important 
economic changes which have taken place in Scotland in the post-war period. 
In the first place, changes in the size of population and in the age, sex, 
regional and industrial distribution of the population are considered. 
Secondly, an account is given of changes in the volume of employment and 
unemployment in Scottish industries and services since the war. Thirdly, 
changes in the industrial structure of Scotland are examined. Information 
on this topic is derived mainly from statistical tables provided by the 
Ministry of Labour, showing the industrial distribution of persons insured 
under the Unemployment Insurance Acts in Scotland for the years 1923-32 
and the number of these persons recorded as unemployed. Finally, a brief 
account is given of changes in the industrial and agricultural output of 
Scotland and in the volume of Scottish export trade. 
Friday, September 7. 
PRESIDENTIAL Appress by Mr. H. M. Hatisworty, C.B.E., on The future 
of rail transport (10.0). (See p. 119.) 
Prof. W. F. Bruck.—Risk and its significance in modern economy (11.30). 
A. Three types of economic organisation: I. Ideal type of liberal econo- 
mics (with markets. Unit based on individual enterprise). II. Ideal type 
of ‘ domination’ of economic sphere; purely socialist planned economy 
(without markets. Unit based on Department of Public Administration). 
III. Transition between I and II (limited market economics with limited 
private enterprise and ‘ invasions ’ by control of the State, public bodies and 
big business). 
Practical application—Type II does not exist, even in Russia. Type I 
dominant in Britain, 1850-1914. Type III is present type of world economy. 
History of development.—(a) First industrial revolution; (6) second 
industrial revolution (industrialisation of agrarian and overseas countries 
and other changes). 
Risk and spreading of risk in these historical periods —Union of functions 
in the capitalist entrepreneur. ‘Then division of labour transferred risk and 
other functions of entrepreneur formerly his prerogatives to other institutions 
and persons. Progressive impersonalisation of undertakings (cartelisation, 
trustification, invasion of public control). 
German history as example.—Since 1700 pronounced progressive state- 
socialism, interrupted only by very short semi-liberal period. After war 
most important trades (industries, transport, banking) largely controlled by 
state or big business. In contrast to liberal nations, greater part of economic 
functions transferred to Public Administration. Publicly controlled capital 
makes State chief bearer of capital risk. At the same time, State-socialist 
State grows in Germany into a ‘ Sozialstaat’ (state as moral trustee of its 
