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of peril, summon any of its citizens to stand up in its defense at the peril and sacrifice of his life; so it may also, in similar need, claim the use or sacrifice of property. As we have seen, it was anciently held that all right of property was created by law; that the nation granted property rights to private citizens. Though not all true, yet this view involved a certain amount of indisputable truth. For all great national uses and defense, all property is national. In the failure of other

heirs, the nation is the heir of all its people.

It is in the exercise of this paramount ownership that the nation asserts the right of eminent domain, confiscates the property of criminals, and imposes its taxes upon the wealth or incomes of all its citizens.

9. Synoptic view.-Wants, Work, and Wealth, the three great factors of economic science, if taken in their national meaning, will give us likewise the grand divisions of national economy. With their subdivisions; they afford the following synoptic view of the field of this science:

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It will be evident, on light examination, that all of the

topics here shown have an economic side—a property as well as a political element; and it is by reason of this economic feature alone they claim a place in national economy. As simple, social, or national concernments they could not properly demand the attention of the economist. They are not all of equal interest and importance in their economic relations, and some of them may seem to have only an indirect and remote relation to economic science.

A full discussion of the entire field would demand a volume. It is the purpose here to treat only of those topics that have been most commonly included in Political Economy, and which will therefore be asked after by readers as necessary to their view of the subject. We limit ourselves to some brief chapters on taxation, and on protection or protective tariff.

CHAPTER II.

TAXATION.

10. Taxes.-A tax is an enforced contribution of private property for a public use. As governments must exist, they must be supported; and as they produce nothing directly, they must be sustained out of the productions of the private citizenship. Government may be counted as one of the wants of mankind, and taxes as the price paid for it.

The cost of good government varies with the extent of territory to be guarded, with the character and proximity, of neighboring nations, with the numbers of people to be governed and protected, with the character and civilization of the people, with the variety and extent of the industrial and commercial interests to be conserved, and with the form and spirit of the government itself. The cost of government in a savage tribe is apparently nothing—no taxes are levied or collected but the possessions are meager, and these are not unfrequently swept away entirely by an adverse war. In a great and rich nation, the cost of government is necessarily large, but the property is immense, and the tax taken from each citizen is usually insignificant in amount.

II. The objects of taxation.-The general purposes for which taxes may be legitimately taken are the following:

1. Public administration, including the legislation, the judicial functions, and the general administration by the executive officers of the government.

2. Public safety, to be secured by police or military power against foreign or domestic foes.

3. Public improvements for the general well-being, by public

works.

4. Public intelligence, to be promoted by public schools, public libraries, scientific investigations, and scientific and art collections.

5. Public charities, or the care of the poor and the unfortunate or afflicted classes,-the insane, the imbecile, the deaf mutes, and the blind.

These are the recognized ends of good government, and are, therefore, the proper objects of taxation.

12. The right of taxation.-The right of governments to levy taxes is commonly supposed to rest upon the duty of each citizen to contribute for the common safety and for the promotion of public order and well-being. Others claim that the government earns its support by the protection it gives; in other words, the citizens hire the government to defend them and their property, and pay the hire in taxes. But, as has been shown, there is a deeper basis of right than this, in the fact stated, that society is a silent partner in every man's business, and does by its presence create much of the wealth which it preserves. Government stands as the representative and agent of society, and in collecting taxes does but take the property of society for the use of society. The amount which it may properly take is limited by the needs of society, as taxes can not be rightfully taken for any other than public

uses.

13. Basis of taxation.-Taxes may be considered as imposed upon persons, or upon property. The former, or the personal tax, takes no account of the man's possessions, but claims from him the tax as his payment for the support of government, or for public good. The personal tax may be a simple charge per capita, or poll tax, imposed upon all citizens alike; or may be a license tax paid upon the professional or business calling. The fees charged for official service are sometimes a tax upon the person, as the fee for a teacher's

certificate or a marriage license; but more frequently they are a tax upon property, as are the fees for the inspection of goods, and for the verification of deeds and mortgages.

The second, or the property tax, takes no account of ownership, but asks for a share of the property for the public use. The payment is of course exacted from the owner when he can be found; but in his absence or failure to pay, the property is taken and sold for the tax.

tax.

Taxes upon property are of two kinds the Direct and the Indirect tax. The direct tax is charged upon the person who is expected to pay it, and may be a personal or a property The indirect tax is levied on the manufacturer or importer of the taxed goods, and is usually added by such manufacturer or importer to the prices, to be paid finally by those who purchase and use the goods. There are large economic as well as political differences between these different classes of taxation.

Another important classification of property taxes rests upon the question whether such tax is assessed upon capital or upon income. The common tax upon property is assumed to be a tax upon capital, and to be paid out of the accumulated wealth. The tax levied upon a man's ascertained annual income is assumed to be paid out of the year's production. In fact, however, all taxes may be counted as paid out of production whenever they and the necessary expenditures of the tax-payer do not exceed his annual product.

14. Systems of taxation. Among barbarous peoples no regular system of taxation is known. Each man is called upon at need to fight for the public defense, and, if necessary, to render public service. The chieftain or ruler, if not satisfied with the income from his own lands, or flocks, or efforts, supplies the lack by the confiscation of goods of his subjects accused or convicted of crime. In other cases, he sells privileges, or monopolies, or extorts gifts, or takes by force of arms from neighboring tribes. Such was most of the

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