The times., 1901-06-09
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The Question of Revenue.

SueCOlatloNS on lnt WORKINGS OF - stems
Of direct and indirect taxation in this
1t Will be especially interesting
to students of economies who wish a
statement of great question.
The author, unfortunately, did not live
10 make the work quite complete, but all
except the last few chapters are as he
himself wrote them, and these chapters
had been sketched by him in such a way
that they could be completed 10y another
hand.
The authors attitude toward what he
considers existing errors in the Ameri-
can plan Of taxation is extremely out
spoken. and some of his convictions are
expressed at the outset, in the introduc-
tory chapter on Taxation and Morality.
he says:
The scope and methods Of raising
revenue for the support of state are
some of the greatest, If not the very
greatest. determining factors OF the
morality of people. insist, sald
an eminent lawyer and a member OF
the Constitutional Convention of the
State Of New York in 1868, that peo-
pie cannot prosper whose chlCerS Work
and tell lies. There is not an assess
ment roll now made out in this State
that does not both tell and WORK lies
And no member OF the convention, or
any representative Of the press. tliher
then or subsequently, has challenged
the assertion. The extent also to which
the existing system of taxation IN the
United States has obliterated the sense
of honesty in its people in their indi-
Vidual dealings with the Government,
removed all repugnance to the act Of
perjury, and caused each one To Justify
himself to his conscience for making
a false return IN the matter of taxes,
by the supposition that everyone is
u nEragr IE-n - RI L
Illustrated by the circumstance that a
high court in one of the States Of the
Federal Union has recently decided
that perjury in connection with a
mans tax lists does not affect his gen
eral credibility under oath
The idea that the proper relation
of a State to its people is essentially
of a paternal snature finds much of
popular approval and is without doubt
popularity desired. Accepting this idea
as correct. let US eXemplify il in it's
application TO the State. Suppose a
father, in dealing with his family,
placed, so far as his children are con-
cerned, a premium on lying and con-
cealment. and vested with a heavy
penalty all truthfulness and straight
forward dealing, he would be regarded
as a worthy inmate for the States
prison. But this is exactly what the
Government Of the United States does,
or proposed to do, in the case of many
of its SO-called tax statutes. Thus, in
the recent income-taX statute, il Of
fered TO its citizens considerations in
money if they would forswear them
selves. or practice deception, and it
imposed a heavy fine on those who
were conscientious and truthful.
Again, when the Government i'm
per cent in excess Of the prime cost
Of the article taxed. as It did in 1864
in the case OF distilled spirits whisky,
il offered q premium for the perpetra-
ton of fraud that human nature as
ordinarily constituted could not re-
sist.
And again:
1T is most singular idi0syncrasy Of
the American peOple and perhaps the
people Of all other countries, that they
will defer or neglect the study OF the
most vital question which can concern
a citizen. Probably not more than one
citizen in a hundred, even among those
who pay taxes. can be induced, as a
rule. either TO talk about. think about,
or study how much national govern
ment cost him per annum. or how
much his State or local government
costs. And as long as this is the situa-
ton. and until the American citizen
docs become a student of taxation, il
is difficult to see how the National and
State Governments can be wisely and
justly managed
The author then goes on to give 4 brief
istory Of taxation as it existed in
reece and Rome and in Europe during
ne Middle Ages, and as it exists in
rance, Mexico. Egypt, Brazil, British
ldia, and Switzerland. He shows how.
ON an arbitrary privilege belonging 10
he king, the right Of taxation has been
radually transferred to the people, and
ow unjust and excessive taxation has
! all ages been a prolific cause Of revolu-
on. The chapter on taxation in the
Iiddle Ages is fun of curious and inter
sting information. Among other things,
le author records the following odd
lstom:
THE reign of Henry II is signalized
by an organization Of the royal Cstate)
revenue system which in some of its
features has continued TO the present
time. Under it the nagenent and
revenues were entrusted to certain Of
hcers Of the Kings household. who
constituted the Court OF the Exche-
quer, so called from the checkered
cloth laid upon the table upon which
the tax collectors or treasurers told
out the Kings money; and the chief
financial officer Of the British Govern
ment at the present time is designated
by the title Of Chancellor Of the EX-
cheQuer. he payments when made
were entered into an account book,
and from this transferred TO a strip
Of parchment: which last was sent
through pipe-like opening into a room
specially provided and called a tally
count, where a tally was made Of it.
This tally was a piece of dry wood.
On which the cutter Of the tailies'
had to cut notcnes corresponding TO
the sum paid, while the writer OF the
tally wrote the sum down on both
sides Of the wood in figures. Accord
ing to the length Of the incision, one
notch denoted El,00J; another, G100,
920, % shillings. ! shilling, and so on.
The Chamberlain then split the notch
ed stick down the middle in such
manner that each half contained the
written sums and the incised notches.
The two matching parts thus split
asunder were called tally and count
er tally or tally and foil ffolium).
The one was retained by the Chamber
lain and the other was kept by the
payer as q receipt and proof 10 be
produced TO the account department
of the eXcheQuer. This curious syS-
tenn Of receipts was maintained in
force until 1783 and it was through
the burning, with a view to getting
rid Of an accumulation Of these tally
sticks. that the old House OF Parlia-
ment in London was burned in 1894"
In France, abuses were numerous. The
1thor says:
''The most ve1atious, arbitrary, and
extraordinary tax OF this period (the
time just preceding the French Revo-
lution) was that imposed on sat, and
known as the 'gabelle;' and to one who
now acqUaints himself with its his
tory and details it must seem almost
incOnceivable that any country claim
ing to be civilized ever could have had
such an experience. In order to effect
ually secure at the outset the payment
of this tax, the right to produce and
sell salt was vested exclusively In the
State. BY an ordinance in 1880 every
person over seven years of age was
required to purchase, not at convent
ence, but on one stated day Of each
year seven pounds Of salt. which in a
peasants family OF four, according TO
Taine, entailed an expense equal TO the
wage receipts OF nineteen days
work Il ANas lnrhidaen also Ia aiNort