The Indian Journal of Economics January 1942

The maintenance of a system of high taxation for surplus unsound in principle and inequitable in practice had not an iota of justification when the condtions which might have justified the practice had long ago disappeared with the closing of the mints to the free coinage of the rupee pnd the maintenance of stable exchanges. [...] The modern view of the nature of the quantity theory takes into account the influence of money on the rate of interest and through the rate of interest on investment and expenditure. [...] Therefore the dogma of the territorial division of labour cannot be appealed to in order to confine India to the production of raw materials and to bar the way to a diversified industry; the dogma of laissez-faire cannot be appealed to to prevent whole-hearted Government action for the development of industries; the dogma of unearned increment cannot be appealed to prevent reform of the land-reven [...] The more perfect the market is the more the economic phenomena take on the character of objective results brought about by impersonal forces and the more appropriately can the generalizations extracted from the study of the phenomena be given the name of scientific laws. [...] Throughout his writings oneTHE BACKGROUND OF RANADE'S ECONOMICS 263 searches in vain for any reference to the necessity of jusice between the classes to the evil effects of concentration of capital in the hands of a few to the need for trade unions or to the importance of comprehensive measures to protect the interests of the employees via-vis those of the employers.