The independent. [volume] (Lincoln, Neb.) 1902-1907, 1903-10-01
Money and the Taxing Power
BY ". II. ASHBY.


ing capable of performing beneficial
service for man, except salt. Their
merchants and their ships traded in
the commodities of all nations, while
they produced rothing at home, ex-
cept salt.
But by trading between the nations,
carrying everywhere and exchanging
the products of every people, the Ven
etians became immensely wealthy.
Their energy and intelligence used
this vast wealth to build magnif-
icent city. They fortified it and deco
rated it with their own wealth, and
with the wealth of conquered nations,
While their ships covered the known
ocean. Their territories meanwhile
contained none of the materials for
building or equipping vessels. nor for
the manufacture Of any of the NUM-
tons of war.
But the Venetians took advantage of
the universal superstition, then, as
now. prevailing everywhere among
mankind. concerning gold and silver,
and stored the wealth they gathered
from the trade Of the world in those
two precious metals" The city of
Venice shone Respondent with them.
But when disaster overlook their
warships and left them without a
navy, the materials for the construc-
ton of a new fleet had to be bought
| from foreign countries which pro-
duced them, and Venice produced no
corn, cotton, wheat, pork or beef, or
any manufactured products, which
could be taken by the power of taxa
| ton by the government and given in
exchange for the materials so sorely
needed for the public defense.
But gold and silver, owing to the
prevalent superstition concerning it,
could be exchanged for the needed
things with the people who possessed
them-if only the republic could get
the gold and silver.
| How, then, to obtain possession of
these two commodities, then became
the problem the government had to
solve.
1t resolved to levy a vast tax in
kind upon those two metals and thus,
through the exercise of the taxing
power, provide itself with the means
OF obtaining the required materials.
| In order to carry out this design, it
established what was called the
Chamber of Loans" The government
was Obliged to meet the deficit by
anticipating the revenues" 1t called
upon the rich merchants of Venice to
deliver up at the Chamber of Loans
all the gold and silver coin and bull
lion they possessed, no matter for how
many years in the future this might
pay their taxes. p
/ Instead of issuing to each one, who
thus advanced his taxes, portable
receipt" against future tax levies-
the usual method of coming money
the quantity of value received from
each was coined" or written in The
money term of Venice upon the books
in the Chamber OF Loans.
| 1t stood there upon those books
expressed by the word "ducat,' aidet
by the numerals (Which constituted thu
money" of Venice) and proved con
clusively the quantity of value eael
had paid of future tax levies, in tn
two metals required.
The republic consisted of the inhab
itants of the city, and those coins
, inscribed upon it's books were suffic
iently convenient for such a people
Had they possessed a large territor,
and scattered population, they woul
] no doubt have coined their money
upon some portable substance an
!, have delivered it to each taxpayer, a
i did this republic during the civil wal
II 1t was simply question Of conven
a fence in the form of keeping the az
count between the taxpayer and tn
+ government.
. The certificates Of payment, thu
. coined upon the books, were by la
n transferable on the books at the owl
4 er's request, were exempt from taxa
4 ton and execution, and their tender
9 was a peremptory receipt against e'
= cry form of tax levy and judgmeI
throughout the Venetian republic.
Il Not understanding fully the exper
lment they were trying, they at fir
e allowed low rate of usury upon tt
" quantity of value advanced and IL
If scribed upon the books. But this SOC
) ceased, and the coin thus inscribt
,e upon the books of the Chamber
\ Loans performed perfectly every ofii'
n ne metallic coin. in the most Sati