Okay, I think a simple experiment can establish that relative motion between parts of the circuit is a necessary part to generate current and that rotation of the conductor around an axis parallel with magnetic field lines will not generate a current if there is not relatove motion between the rotating conductor and the return path, even if the return path could be corotating (no relative motion) AND avoid cancelling the potential developed in the other portion of the circuit, what I am calling the conductor.
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Please bare with my explanation of the setup:
Start from a typical Faraday disk setup:
a conductive disk free to rotate about the axis of revolution;
with sliding electrical contacts one around the circumference of the disk and another on an area on and around the center;
concentric and offset below is a circular magnet just larger than the conductive disk which in this case is solidly attached to the conductive disk so as to spin with it.
If a return circuit is provided between the inner and outer sliding contacts and the disk (with accompanying magnet) is rotated sliding in the contacts, we are in agreement current flows in the circuit.
I believe I will still have general agreement if instead of the complete disc, we use just a pie slice on the disk, we will still get a current (albeit reduced) in the circuit as the inner and outer portions of the rotating pie slice of the conductor (with a matching pie slice magnet carried below) slide on the inner and outer contacts.
Taking a second similar pie slice of conductor and magnet, but this time with the polarity flipped along the axis of rotation, if we swap it out between the sliding contacts for the first pie piece and spin it the same direction, the current is reversed.
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The return part of the circuit connecting the inner sliding contact to the outer sliding contact can be removed if we complete the circuit by using the original pie piece and the reversed pole pie piece at the the same time, attached to rotate together on opposite sides of the circular path but electically isolated except for the sliding contacts at the center and outer edge.
As long as the sliding contacts are not in isolated segments (as might be use for commutation), but instead provide a low resistance path between the center of the original pie piece to the center of the pole reversed pie piece and also between the outer edge of the two pie pieces, the combination should function as a dc motor or generator.
If anyone believes this will not operate as a motor if current is made to flow through, or as a generator with a prime mover, please let me know why.
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If we are okay up to that point, then I can show why rotation of the conductors in the field alone is insufficient to develop current. ... the explanation is undeniably simple and doesn't require even the most cursory dip into relativity.
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If the contacts at center as well as the contacts at the outer edge are altered so that instead of sliding, the connections are fixed and rotate the the two connected pie pieces, then the assembly could not function as a homopolar motor. If a battery were mounted and current were driven from the center out the rim of one pie piece, along the circumference then back in the pie piece with the opposite polarity magnet, no torque could be developed without breaking conservation of (angular) momentum, as there is nothing off which it might produce countertorque.
...and if you can't get any rotation by passing current through the nonsliding embodiment, then no current will be produced by rotating the nonsliding embodiment.
Relative motion between parts of the circuit appears more and more as a sine qua non. Rotation (parallel to field lines) of a conductor in a magnetic field does appear insufficient without relative motion in the circuit.