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This book contains the tribal state of society, elective monarchy, the origin of Kshatriyas, the people's assembly, the duties and prerogatives of the kings and priests, the effect of Jainism and Buddhism on the political condition of India, the empire-building policy of the politicians of the Kautilya period, espionage, theoretic despotism, the condition of the people-intellectual, spiritual and economical. In the last three appendices, he has dealt with the election of kings and delegation of sovereignty, sacrificial fasting as a form of passive resistance and state-ownership land.