Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1898-01-18
HOW THE STATE GETS ITS MONEY
AND HOW 1T SPENDS 1T.
SOME INTERESTING FACTS
SUGGESTIONS, ALSO, AS TO MANY
DESIRED REFORMS.
Hon. c. w. Clarke Reads an Exhaust
I've Paper on the State Revenues,
Touching on Many Points
Not Generally In
derstOOd.

1t" The attendance was not large, but
this Mr.. Clark explained by saying that he
supposed people naturally supposed his pa
per would be necessarily dry because it
dealt with taxes.
People have a fault of being only inter-
ested in taxes when they go to pay them,'
he said. Mr.. Clark presented SO many
facts and figures regarding the income and
expenditures of the state that are not gen.
orally known, with so many suggestions
for reforms, thai his address is given in
full as follows:
How the state gets her money and what
she does with it is the question assigned
me in your very interesting series of lee
lures. The question of the states revenue
Is the most troublesome question that has
been presented to statesmen or politicians
who are called upon to manage this de-
partment of organized governments. We
live under the most complicated system of
government in the world. There are four
distinct sovereigns to whom We are re-
quired TO pay tribute. The federal govern
ment. the state government, the county
government and the municipal government.
The revenues of the federal government
are mainly derived from imports and spe-
cial taxes on liquors and cigars. But once
CT twice in our history has the federal gov
ernment collected any direct taxes from
the state. During the civil war an effort
was iiho ~ ftpicIlsu II TeNtuue II tllS
manner. After some sl5. OOO.0 600 had been
collected the plan was abandoned and the
money has since been returned to the
states paying the same.
The state government formerly collect
ed Its revenue from direct taxation: that
is. taxes assessed on value of property
cent years she has derived a large revenue
from indirect taxation, licenses on billiard
tables, patent medicine vendors, poolrooms.
dramshops, insurance companies, express
companies and kindred evils.
The state gets her money by taxing her
citizens. Taxation is the foundation of the
revenue of the state, and the basis of mu-
nicipal extravaganza.
1t is the highest p~rerogative of the state.
1t makes. beautiful and destroys by its OPP
pressiye methods. 1t creates institutions
for the moral elevation of mankind and
lends inducement TO falsehood and perjury.
1t is intended to call for a proportionate
contribution from the citizen, and fire.
quently proves the most arbitrary eXtorter.
1t offers the INDECENT an opportunity to dis
his possessions at a high valuation, and
also reduces the rich to want and perjury.
And this latter proposition is SO clearly IL
Illustrated by reviewing the tax returns of
many citizens living in apparent wealth
and afiluence, you discoverer on an exam
tnation of their detailed tax schedules that
high grade horses are plugs. their dia-
monds are paste, their jewels are plated,
their libraries. their pictures and other
objects of splendor and luxury are of but
a nominal value, and this we must accept
as true, for their statement is accompanied
by a most solemn oath and asseveration.
fmploring even the aid and help of God to
witness the veracity of their return.
DR.. Adam Smith, the great political econ
omist OF the last century, laid down this
ton:
THE subjects of every state ought to
eminent as nearly a. p sapfS5s to the Their sq re-
spective abilities: that is, in proportion to
the revenue which they respectively enjoy
under the protection of the state"
Revenue Had to BE Raised.
Political economists inform us that taxa
ton is a badge of civilization, that it exists
in all organized governments, that the in
scriptions upon the most ancient monuments
show that the conquered tribes paid tribute
TO the conquerors. That whenever there
was a deficit in the treasury of a petty
chief, spies were sent out into the adjoin-
plus, some pretext for a war was found:
If the tribe or people with fiocks and herds
was less powerful than the people with the
deficit. the fiocks and herds and fine
apparel we're transferred Immediately to the
more powerful people or tribe. This man.
ner OF supporting the state is not unknown
in our day.; the Turks, as well as the Japa-
nese. seem to be able to build navie. and
equip, their armies far better than before
they had been victors In arms. AS the eX-
pense of organized government increased,
there was a constantly increasing demand
Tor more revenue; augustus Caesar; or
-aN diia
despofled a conquered people of all that
could be found, Invented the new %contriv-
ance for replenishing his treasury by SELL
ing the further right to rob and plumber. TO
the highest bidder. and the purchaser, in
turn, sub-let TO more expert extortions.
and this system is praeticed in China to-
uay.. This was called farming the reve-
nue." 1t is said that the Romans collected
annually under this system 500. 900, OOO. The
Romans at other times replenished their
treasury by forced loans from the citizens,
to be paid out of the proceeds of the next
Russia out of money collected from Greece.
The manner Of raising a revenue for
the support of the government by the
twelve tribes was far more equitable and
just than any system that was practiced
among the ancient nations, and it is doubt
ful If any modern system has been a very
great Improvement upon the system prac-
ticed among the Hebrews in King Solo
mons day. This system was that of tith-
ing, or rendering to the government a GER
tain proportion of the products of the soil.
and the cattle, as well as the products Of
the mines: The needs of the government
were small I'm comparison with the inter-
ests committed to their hands at the pres
ent time. i doubt if Solomon in all his
glory received annual tribute equal to that
paid by the citizens of Jackson county for
the support of the county and city govern
ments.
Taxation, you will readily see. did not
commence with the proclamation Of Caesar
Augustus. that "all the world should be
taxed nor was the journey of Joseph to
of Judea, the first journey made to the tax
collectors office: nor was Peter the first
man 10 go fishing to get money to pay
tribute; We might fairly suppose that
with the observation and experience of
thousands of years, that this question
would have reached a system that might
have been denominated a science. That a
system would have been devised whereby
the citizen would only be required. under a
Just government, 10 pay his just proper
ton for the support of the state. and the
maintenance Of her laws. / regret to state
that the matter of apportioning and col
lectirg the necessary revenue of the gov
eminent seems to be in as much confusion
as II was when Joseph acted as secretary
of the treasury for Pharaoh, or Abraham
divided the spoils of war with Melchizadek.
the priest, or when Rome farmed the rev.
enues OF her conquered. provinces. I saw
in Harper,s Weekly a few days ago, a par
agraph with this heading:
Question One of freed.
"A New Continuance for Raising Reye-
nue."
The contrivance was a French inven-
ton, and the paper gravely announced that
II was a failure. The question was NOT
that they had invented a new .contriv-
snce' for equalizing the Just burdens of the
government. The question of justice and
equity WAS not considered: the question Of
lifting the burdens of the poor or of a
Just distribution of the necessary burdens
of government, were not considered. The
only question is. as IL has always been
how can we gather the largest revenue for
selfish greed, with the least danger of los
ing political power, or, as the French min
lister of finance put 1t many years ago:
PLUCK the goose so as to produce the
largest quantity of feathers with the least
possible amount of squawktng."
The schemer who can invent n new con-
trivance for plucking the goose" Is her
aided as n deliverer 10 be honored, reward
ed and crowned with laurels, as he who
has been victorious in war. Hence the
idea has come to be accepted that taxation
is an evil to be escaped and avoided by