t"-.^/ ^■''^^^ /* %» •> ► .V ' • • - .. ^M f ^ #. s^ OlnrnfU Imu^ratt^ Sltbrs^rg BOUGHT WITH THE INCOME OF THE SAGE ENDOWMENT FUND THE GIFT OF Henrg 199. S^qc 1891 A^M.43^A- ^MU^7 93°« The date shows when this volume was taken. To renew this book copy the call No, and give to the Ubrarian. HOME USE RULES All Books subject to Recall All borrowers must regis- ter in the library to borrow books for home use. All books must be re- turned at end of college year for inspection and repairs. Limited books must be re- turned within the four week limit and not renewed. Students must return all books before leaving town. OflScers should arrange for the return of books wanted during their absence from town. Volumes of periodicals and of pamphlets are held in the library as much as possible. For special pur- poses they are given out for a limited time. Borrower^should not use their library privileges for the benefit of other persons. Books of special value and gift books, when the giver wishes it, are not allowed to circulate. Readers are asked to re- port all cases of books marked or mutilated. Do not deface books by marks and writing. HJ2240 .aT^" ""'"""">' "-ibrary "^'i mil iiffliS lite t'onsu's of the United S ^|.^ 3 1924 030 264 422 The original of tiiis book is in tine Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924030264422 REPORTS FROM THE CONSULS OF THE UNITED STATES. ON TAXATION. Nos. 99 and lOO.— NOVEMBER and DECEMBER^ 1888. WASHINGTON: GOVERNMENT PRINTING OFFICE, 18 88. CONSULAR AND DIPLOMATIC OFFICERS. P»ge. AJden, William L Kome 514 Camphausen, Edward .• Naples 533 Carroll, Philip Palermo 547 Catlin, George L , Zurich 634 Cronoh, Henry C Milan 553 Crowe, A. L Zante.. 512 Diller, Isaac R Florence 529 Dithmar, Henry Breslau 457 Dufais, F. F Havre 327 Eckstein, D.. Amsterdam 557 Fay, Andrew F Stettin 505 Folsom, Benjamin Sheffield 699 Forster, Charles Elberfeld 487 Fox, Williams C Brunswick - 461 Hawes, John B Eeichenberg 275 Johnson, Edmund Kehl 451 Jonas, Charles Prague 281 Jones, Evan E Cardiff 757 Jussen, Edmund Vienna 260 Kimball, C. P Stuttgart 508 Lang, W. W Hamburg 489 Lathrop, Lorin A Bristol 658 Loening, Albert Bremen 455 Man, Ernest A Gotheuberg 614 Marston, H. C Malaga 612 Mason, Frank H Marseilles 395 McDowall, A. C Piraeus 511 Mueller, Jacob Frankfort-on-the-Main 452 Murphy, George H Chemnitz 476 Partello, D. J Diisseldorf 484 Piatt, John J Cork 730 Polachek, Max Ghent .: 314 Eaine, F Berlin 406 Eawicz, Joseph Warsaw . 532 Eoosevelt, George W Bordeaux 369 Eussell, Charles T Liverpool 692 Eyder, Henry B Copenhagen 323 Sartori, Victor A Leghorn 544 Shackelford, H. A Nantes 382 Slade, William, Brussels 299 Smith, James Henry Mayence 499 Smith, Jasper Newcastle-upon-Tyne 695 Steuart, John H Antwerp 291 Underwood, F. H Glasgow 732 VonVersen, F Berlin 424 V^alker, Luoien J Dunfermline ."."!.'.'.'!! 741 Waller, Thomas M London \\\\ 650 Walling, Willoughby Leith 742 WigfaU, F. H Leeds -""!'.."'.!!!! 678 Williams, Charles P Eouen 389 Winchester, Boyd Berne .'!!.'!!.'!.'.'.' 618 11 TABLE OF CONTENTS. [Nos. 99, 100.] Page. Austria 260 Bohemia 275,281 Belgium 291,299,314 Denmark 323 France 327-382 Department of Gironde 369 Marseilles 395 Rouen 389 Germany 406-424 Alsace-Loraine 451 Bremen 455 Breslau 457 Brunswick 461 Chemnitz and Saxony 476 Diisseldorf- 484 Elberfeld 487 Hamburg 489 Prussia 432 May ence 499 Stettin 505 Wurtemberg 508 Greece, Piraeus 511 Zante 512 Italy 514 Florence 529 Naples .., 533 Leghorn 544 Palermo .' 547 Milan 553 Netherlands 557-559 Russia, Poland 582 Russian finance 593 Spain, Malaga 612 Sweden 614 Switzerland - 61S Zurich 634 United Kingdom : England 65- London 650 m IV CONTENTS. Page. United Kingdom — Continued. Leeds 678 Liverpool 692 Newcastle-upon-Tyne 695 Sheffield 699 Ireland, Cork 730 Scotland T32 Dunfermline 741 Edinburgh ., 742 Wales, Cardiff ..-..» 757 CONSULAR REPORTS COMMERCE, MANUFACTURES, ETC. NOS 99 AND. 100 ?ToVEMBER AND pECEMBER, li Department of State, Washington, July 18, 1888. To the President : I Lave the honor to submit, for transmission to the Congress, reports by the consular officers of the United States, on taxation in the respect-, ive districts in which they reside. The continually increasing import- ance of fiscal questions, in- both national and local administration, led me to believe that such reports, although necessarily imperfect from a purely scientific ijoint of view, would yet offer some basis for interest- ing comparisons of methods emploj'ed in the various countries of Eu- rope, if, indeed, there should not be presented some elements or instru- ments to be adopted or imitated in this country. The reports are in- tended to show merely what is the actual condition of taxation in dif- ferent countries, without regard to the reasons of such condition, or the theories that have been applied in leading to it. To examine the sub- ject as its importance demands would require the knowledge of highly trained economists and practical financiers ; but the following reports will be sufficient to awaken a spirit of inquiry that can not but be pro- ductive of good results. Eespectfally submitted. T. F. Bayard. 138— Fo, 99 1 259 260 KEPOKTS ON TAXATION. PuMio deJits of Europe.* Country. Date. Capital of debt. Annual in- terest and cliarges. Military ex- penditure. Prussia German Empire Wurtemoerg Saxony Hamburg Bavaria Baden Other German States . - . Austria Hungary Italy; Sweden - - Norway Denmark -.. Netherlands Belgium Spain -.. Portugal England (United Kingdom) . Switzerland Servia Koumania Greeee Turkey Bulgaria Finland Knssia France Apr. 1, Dec. 31, Dec. 31, ...do .. Deo. 31, Mar. 31, Dec. 31, ...do... Dec. 31, ...do... Dec. 31, ...do .. June 31, Dec. 31, ...do.. ...do.. July 1, ...do .. Mar. 31, Jan. 1, June 13, Apr. 1, Jan. 1, 188 'Jan. 1, Deo. 31, ...do.. Dec. 31, 1886 1886 1883 1866 1885 1884 1885' 1885 1885 1886 1885 1886 1886 1887 1686 )-'81 1885 1885 10.=^, lOij, 160, 36, 358, 10, 53, 1,857, 635, 2, 226, 69, 30, 64, 452, 3.54, 1, 208, 564, 3, 663, 6, 48, 145, 79, 521, 800, OOO 200, OUO 000, 000 000, 000 600, 000 000, 000 600, OOO 600, 000 600, 000 600, 000 200, 000 000, 000 200, OOO 800, 000 000, 000 200, 000 400, 000 200, 000 600, 000 400, 000 800, 000 800, 000 GOO, 000 400, 000 1886 13, 000, 000 3, 605, 600, UOO 6, 200, 000, 000 $44, 000, 000 4, 020, 000 4, 300, 000 6, 640, 000 1, 740, 000 12, 200, 000 420, 000 2, 200, 000 77, 980, 000 41, 360, 000 106, 400, 000 3, 280, 000 1, 200, 000 2, 480, 000 13, 000, 000 16, 300, 000 54, 820, 000 17, 860, 000 147, 500. 000 360, 000 2, 740. 000 11, 810, 000 0, 600, 000 11, 060, 000 420, 000 1, 180, 000 207, 600, 000 267, 200, 000 \ $107, 820, 000 68, 400, 000 68, 500, 000 7,100,000 3, 660, 000 4, 600, 000 13,900,000 9,120,000 40. 060, 000 7, 860, 000 148, 000, 000 3, 420, 000 3, 240, 000 6, 700, 000 4, 600, 000 40, 000, 000 1, 220, 000 196,400,000 171, 900, 000 * An estimate by Dr. liichard von Kaufmann. published in the Jahrbiicher fur National Oekonomie und Statistik, and in Bulletin do Statistiqueot de Legislation Compar^e, September, 1887. Eeducedto American currency at 5 francs to the doUar. EMPIEE OF AUSTEIA. ItEFOBT OF CONSVL-GENEBAL JUSSEN. The system of internal taxation in Austria is extremely complicated, and in consequence of the great mass of legislation upon the subject, the numerous amendments of original provisions, and the many special acts applicable to special localities, presents peculiar and unusual dif- ficulties to a correct and exhaustive analysis. The laws upon internal taxation fill no less than three volumes of about 600 pages each, printed in small type, all of which require a close examination in order to make a correct abstract of the provisions now in force. The greater part of all this mass of legislation I believe to be utterly inapplicable to our condition and system of government and there IS perhaps no Austrian enactment upon the subject of taxation which IS an improvement upon our own system except' the mode and manner provided for collecting taxes on distilled SDirits. This tax is collected in Austria by estimating the capacity of \he distillery appa- ratus and of the fermenting tubs, and by controlling the periods of dis- INTERNAL TAXES. are divided into direct and indirect The internal taxes of Austria taxes. The direct taxes are levied on the proceeds or profits of real pronertv on the profits arising from personal property, and on income ^^P^^^^^' The taxes ou real property are divided into taxes on woceed^ or profits of realty (agricultural lands, forests, vineyaS ete f and tU« on the proceeds or profits of buildings (rents^ ' ''' ^ AUSTRIA-HUNG A EY. 261 The taxes on personal property are divided into taxes on manufact- ories, on industrial, mercantile, and professional occupations (erwerb- steuer license), and taxes on income derived either from such industrial, mercantile, or professional occupations, or from invested capital. A manufacturer, 'for instance, if he owns the building in which he carries on business, pays taxes to the state, first, on the rental value of the building; secondly, a high license tax for the privilege of carrying on his business; and thirdly, an income tax on the net profits derived from his business, aside from certain taxes levied by the municipality, here- inafter specially mentioned. Tiie indirect taxes are levied in the form and under the name of a consumption tax ( Verzehrnngssteuer). They are partly collected at the line or entrance of all so-called " closed cities" throughout the tSmpire. Though the old walls and fortifications may have fallen, the imaginary line still exists, which can not be crossed without paying an octroi tax. This consumption tax is imposed in Vienna, Linz,Graz, Laibach, Trieste, Prague, etc. The list of articles upon which this tax is collected includes almost all provisions and beverages, as meats of all kinds, live cattle, wine, beer, butter, eggs, etc. This indirect tax yields a great revenue to the Em- pire and also to the several municipalities, for it is a double tax, the special municipalities being authorized by law to collect an additional consumption tax, which is added to that imposed by the State, upon all provisions, etc., crossing the line and entering the said cities. Another class of this consumption tax is imposed upon beet sugar, petroleum, distilled spirits, etc., and collected at the place of manufact- ure, as hereinafter particularly stated. DIKECT TAXES. Tax on net proceeds of real property. - Every tax district has its own permanent record of the dimensions, character, and average producing capacity of all parcels of land within the district. This permanent record (Katast6r) has existed for a long series of years, and the tax is levied upon the basis of the estimated producing capacity as shown in this record. From time to time new estimates are made, and the owners of the realty have the right to pro- test if they think the estimate too high. The question is decided by the finance officers of the district, and in certain cases an appeal lies to the minister of finance ; but no appeal operates as a stay of proceed- ings in the collection of the tax. According to the Ka* aster records of 18S0 the taxable area of land in Austria amounted to 46,247,640 joch (32,568,732 acres) ; area free of taxes, 5,888,248 joch (4,146,654 acres). (One joch is equal to 1.42 acres.') According to the official Kataster (record) this taxable area is classed, and its net producing capacity is estimated as follows : Agricultural lands Meadows Gardens Vineyards Pasture Alps Forests Lakes, swamps, and ponds . Austrian measm-es. American equivalent. Jocli. Net product. Acres. Net product. Florins, Dollars, 18, 483, 986 102, 432, 974 13, 016, 800 36, 773, 437. 68 5, 349, 025 20, 000, 07] 3, 766, 920 9, 334, 240. 89 646, 539 6,616,082 46.5, 309 3, 339, 277. 00 4S1, 523 4, 062, 027 303, 889 1,458.267.69 4, 629, 146 3, 83S, 450 3, 260, 000 1,377,943.55 2, 432, 437 711,274 1, 713, 000 2.5.5. 347. 36 16, 990, 481 20, 035, 989 11, 965, 127 7, 516, 020. 00 198, 317 441,747 139, 660 168, 587. 17 H"OTE— 1 joch=:l.i2 acres; 1 florin ^3;}. 9 cents. 262 REPORTS ON TAXATION. The average net proceeds per joch are estimated as follows: Perjoch. Per acre. Perjoch. Per acre. Florins. 5.54 4.86 10.08 9.41 Dollars. 1.988 1.744 3.616 3.378 Florins. .83 .20 1.23 2.23 Dollars. .207 .071 Forests : .441 Yineyarda Lakes, swamps, and ponds . - . .80 The average net producing capacity of the total area of taxable land, etc., is estimated at 3 florins 36 kreutzers per joch (85 cents an acre). TJixder tlie act of June 7, 1881, the total amount of the taxes to be imposed upon this producing capacity of taxable lands was fixed at 37,500,000 florins ($13,462,500) per annum for the term of fifteen years, and the percentage to be paid 'in the form of taxes bj' the owners, in order to cover this sum, was fixed at 23.1 per cent, of this average net produc- ing capacity or proceeds. In 1849 this tax was about 17 per cent., and in the Duchy of 8alzburg only 8 per cent. Since then the percentage has been gradually increased from time to time. Military expenditures have been the principal cause of this increase. In case of default in the payment of this tax at the time fixed by law, the party making default must pay interest at the rate of 1 J kreutzers per day for each 100 florins due. If the tax is not ppid within four weeks after it is due and payable, execution issues for amount of taxes and interest against the personal property of the delinquent. From levy under this execution are exempt {a) beds and bedding, clothing, furniture, and cooking utensils indispensable to carry on the household. (6) tools, indispensably necessary to carry on the trade of the defendant in execution, (c) the ^^ fundus instructus " necessarily re- quired to cultivate the soil — for instance, draft horses or oxen. If the personal property levied upon is insufficient to pay the tax an execution issues against the realty. The tax on buildings. ■ The theory of this tax is that it is imposed upon the profits of the capital invested in the buildings. It is considered a very fair and safe form of taxation by the Austrian Government, for the reason that it is quite impossible to conceal the real amount of capital invested in the buildings, and, following the views of Adam Smith, the authorities ad- vocate thejusticeof this tax as a combination of a tax upon the realty and upon the improvements situate thereon. This tax upon buildings is divided into two classes, viz: (1) The tax upon the net amount of rent received or upon the rental value, called the liouse rent tax (Haus- zinssteuer), and (2) the tax upon dwelling houses, graduated accordino' to the number of dwelling-rooms, the houses being divided into a cer*^ tain number of classes, called the house-class tax (Hausclassensteuer) House-rent tax. The house-rent tax is not by any means uniform throughout the Em pire, but IS only levied in certain cities and localities particularlv men tioned in the law, and wherever the house-rent tax is not levied the house-class tax is imposed. The most noticeable characteristic of this law is its total want of uniformity. AUSTRIA-HUNGARY. 263 In order to arrive at the net amount of rents received for the purpose of assessing the house-rent tax a deduction of from 15 per cent, to 30 per cent, is made from the gross amouut to cover the necessary repairs, etc. Upon the balance, viz, the net amouut of rent, a tax is imposed varying from 15 per cent, to 26| per cent. ' But it should be remembered that this percentage covers only the house-rent tax, payable to the State, and that the several municipali- ties within whose bodies this tax is levied add another percentage as a local house-rent tax, the amouut of which also varies in the different localities. So that in the city of Vienna, for instance, the total amount of house-rent tax, State and local, is 45 per cent, of the net amount of rents received. , In former years a sum in gross was paid to the State by some locali- ties and cities in lieu of this house-rent tax. The city of Trieste, for in- stance, together with its immediate surroundings, paid in 1863, in lieu of this tax, the gross sum of 414,750 florins ($148,895). Under the law of 1882, however, now in force, all cities and localities particularly mentioned in the law, and within these all buildings, the half of which at least is actually rented, pay this tax. All other build- iugs, witti some exceptions hereinafter mentioned, pay the house-class tax, and the officers decide to which class a building belongs. Of all buildings a permanent record (Kataster) is kept in the several tax dis- tricts, which serves as a basis of taxation, and the entries in which are changed in accordance with the investigations and consequent decisions of the tax officers. House-class taw. Under the law of January 1, 1882, the house-class tax is levied in pro- portion to the number of inhabited or habitable dwelling-rooms, with- out -reference to the cost or value of the building, and without re- gard to its style of architecture or purpose. Palace and peasant's hut come under the same rule and classification. For the purpose of levying this tax, sixteen taxable classes are established as follows: Class. Number of dwelling rooms. Amount of tax per annum. T . 40-36 35-30 29-28 29-25 24-22 21-19 18-15 14-10 9- 8 7 6 5 4 3 2' 1 Florms. 220 ' 180 150 125 100 75 50 30 20 15 10 5.50 4.90 2.10 1.70 7.75 Dollars. 78 98 11 64 6^ Ill 53.83 IV 44 87 V... 35. 90 TI 26 92 VII 17 95 VIII . . 10 77 IX 7.18 X 5 38 XI 3.59 XII 1.97 XIII 1.76 XIV .75 XV .61 XVI .27 * This tax of 75 kreuzers is levied on dug-outs, cane-huts, etc., and shanties of one room only. Under this classification all rooms which are or which can be inhab- ited are taxed. Barns, stables, and outhouses are exempt. Anterooms, halls, assembly rooms, and writing ruoms also fall within this classifica- tion ; but kitchens, cellars, and garrets (the latter only if not occupied) are excluded. 264 REPORTS ON TAXATION. It matters not whether the rooms are famished or not, or whether windows and doors are broken ; they are all taxable if they can be made lit for dwelling without rebuilding. Certain workshops are also taxa- ble. The workshops of tailors,shoemakers, weavers, audcabinet-makers, etc. ; salesrooms of merchants, offices of druggists and surgeons fall within this classification, because, as a commentator on this law remarks, ' all these localities require but little change to make them habitable. The dwelling-rooms, bed-rooms, ofiQces, and storage-rooms of factories also come witLin this provision. If a house is destroyed by water or fire the house-class tax is abated for the year within which the destruction took place. In the following cases both the house rent tax and the house- class tax are totally abated for the term of twelve years : (a) If a new building is erected upon ground not theretofore built upon ; (h) if a building is tora down to the ground and rebuilt; (c) if a building is enlarged by erect- ing a nesv story or stories the new stories are exempt from taxation for the period aforesaid ; {d) if separate stories or parts of building are torn dowu and rebuilt the new part is exempt in same manner. This term of twelve years begins to run the day of the occupation of the building. It must, however, not be supposed that these tax-free buildings are entirely free from taxes because the law just quoted so provides. Special enactments have brought these buildings within the reach of the tax collector. In Vienna, for instance, tax-free buildings pay 20 per cent., while buildings not tax free pay 45 per cent, of the rental value as house-rent tax. Fine and punishment in case of concealment of or misrepresentation as to actual amount of rent collected. — (1) Payment of amount of rent con- cealed after deducting the usual percentage for repairs, etc. (2) The total amount of the house-rent tax actually levied for the period in question. (3) In addition to the above amounts payment of the total amount of rent collected during the whole period while the concealment took place. This is a double punishment, respectively called rent fine and tax fine. The rent fine is paid to the informer, whom the law protects to the extent of providing that he has the right to have his name withheld from publication, and it is made the duty of the authorities not "to expose the informer to the accused." Fine for nonpayment of house-class tax. — With reference to the non- payment of the house-class tax the law provides that if the house-owner fails to give notice to the authorities of the erection of a building or the erection of part of a buildiug subject to this tax within four weeks after the building or the additional part is complete he shall pay double the tax due for the period during which such concealment took place. Erwerhsteuer (license) tax on proceeds of personal property and business. The tariff tables of this tax contain four principal classes, under which all employments and pursuits subject to tbis tax are classified, viz : I. Factories. II. Commercial ventures, with a separate classification for wholesale business. III. Arts and industries (including retail merchants and dealers and peddlers). IV. Employment: (a) For instruction, teaching, etc.; (&) brokers and AtfStEiA-HUNGARY. 265 Commission merchants, notaries, attorneys, etc. ; (c) transporting goods and passengers). For factories and wholesale mercantile establishments tliis license tax is uniform throughout the Empire, and is assessed without reference to the population in the respective localities, but for all the other classes subject to this tax a separate tariff has been established for separate localities. These separate tariffs are classified as follows: (1) Vienna and environs for 2 German miles in circumference; (2) Prague, Lem- berg, Briinn, Gray, Linz, Laibach, Zara, Innsbruck, Triest, Bozen; (3) all towns of 400 souls or more ; (I-) all townsof from 1,000 to 4,000 souls; (5) all towns of less than 1,000 souls. The tax is payable semi-annually in advance. The estimate of the amount of earnings is based upon the average earnings of the three pre- vious years. In assessing this tax the tax of&cers find little difficulty to ascertain the net earnings of factories and wholesale mercantile es- tablishments, because they gain the required information from the bal- ance-sheet to be furnished by these establishments under the provisions of the income-tax lawand thecommercial lawbook (Handelsgesetzbuch). In order to gain definite data as to the proper amount of tax due from the other taxable classes the law instructs the tax officers to take into consideration the amount of capital invested, the nature of the business, its location, the number of workmen and clerks employed, the machin- ery and apparatus used; in spinneries the number of spindles, in mills the number of stones, in bakeries the number of oveus, in foundries and machine-shops the number of fires, boilers, hammers and anvils ; with reference to the business of teamsters the number of horses and wagons used; in taverns the number of rooms, stables, and sheds; as to dairies the number of cows, etc. The amount of house-rent paid by a business man is to be considered in arriving at his net earnings. In judging from all these facts and circumstances the tax officers decide to whicb^ par- ticular class the taxpayer belongs. The law fixes the number of classes of taxpayers subject to this license tax, and also i)rovides for the amount of tax to be paid by each class in the several cities and localities, but it omits entirely to fix the jtrecise conditions (i. e., precise amount of net earnings) under which a tax-payer is to be enrolled in any one par- ticular class, but leaves the decision upon this point to the tax officers of the several districts, and requires them to be guided in their decis- ions by the declarations to be made by the tax-payer and by the esti- mate of the local authorities. A permanent record (Kataster) is kept of these several classes in the respective districts, the entries in which are changed or amended according to circumstances. The license tax on factories and wholesale mercantile establishments, as already stated, is uniform throughout the Empire. The rates are as follows : Class. Per annum. Class. Per annum. Factories; I Florins. 42 84 105 315 525 735 1,050 Dollars. 15.07 30. 15 37.69 113.08 188. 47 263. 77 376. 95 Factories: VIII Florins. 1,575 315 525 735 1, 050 1,575 Dollars. 565 42 II Wlioleaale establisliments : I Ill 113. 08 IV . .. II 188 47 V III 263. 77 VI IV 376. 95 vn V 505. 42 266 REPORTS ON TAXATION. The rates of all the other license taxes vary according to the locali- ties where they are imposed. For instance, all retail merchants and dealers coining under subdivision III, first above mentioned, pay the following taxes in Vienna and within 2 German miles of Vienna : Class. Per annum. Class. Per annum. I Florins. 105 157. 50 210 315 Dollars. 37.59 56. 54 75.39 113. 08 V Florins. 420 525 735 1,060 Dollars. 150. 79 jj YI 188.47 VII 263. 77 VIII 376. 95 * In Prague, Lemberg, Brlinn, Gray, Liuz, Laibacli, and Zara only the first four classes are retained and taxed at a very much lower figure, viz: Class. Per annum. Class. Per annum. I Florins. 52.50 105 Dollars. 18. ?4 37.69 HI IV Florins. 157. 50 315 Dollars. 56.64 11 113. 08 In Innsbruck, Triest, and Bozeu, the first five classes are retained and taxed still lower, as follows : Class. Per annum. Class. Per annum. I Florins. 26.50 62.50 105 Dollars. 9.42 18.84 87.09 IV Florins. 157.50 315 Dollars. 66.54 II V 113. 08 ni In all towns with 4,000 and more souls (always excepting Tyrol) only three of the above classes are retained, and the following rates are established : Class. Per annum. Class. Per annum. I Florins. 42 84 Dollars. 15.07 30.16 Ill Florins. 106 Dollars. 37.69 II In all towns with from 1,000 to 4,000 souls this same tax is still lower, viz : Class. Per annum. Class. . Pe^ annum. I Florins. 31.50 63 Dollars. 11.30 22.61 Ill Florins. 84 Dollars. 30.14 n AUSTRIA-HUNGARY. 267 In all towns with less than 1,000 souls four classes are retained, and the following rates prevail (being the lowest, with the exception of those of Tyrol) : Class. Per annum. Class. Per annum. I Florins. •L 10 4. 20 Dollars. .75 1. so- Ill Florins. 8.40 10.80 Dollars. 3.01 II IV The rates in Tyrol under all classifications are nearly 50 per cent. less. Mechanics, small manufacturers, grocers, peddlers, all artists, except painters, sculptors, etc. (bildende Kiinstler), pay the following license in Vienna and within 2 German miles of the city. These tax-payers are divided into twelve different classes: Class. Per annum. Class. Per annum. I Florins. 5.25 10.50 21 31.50 -42 52. BO Dollars. 1.88 3.77 7.53 11.30 15.07 18.84 vn Florins. 63 73.50 84 105 210 315 Dollars. II VIII 27 58 in IX IV X XI v 75 39 TI xn 113 08 These rates are much reduced in all the other localities, so much so that the highest rate paid in Tj^rol, for instance, under Olass V of this classification is 21 florins, and the lowest under Class I is 1.50 florins (53.8 cents). Certain classes of teachers in Vienna and within 2 niiles of that city pay a license of from 5.25 florins to 21 florins, ($1.88 to $7.53) per annum, while in all localities of from 1,000 to 4,000 souls and in Tyrol they are exempt from this tax. Brokers, commission merchants, agents, notaries, and attorneys are divided in Vienna and within 2 miles of that city into five classes, and pay a license ranging from 52.50 florins ($16.84) per anuum to 315 florins ($113.08). This rate is also much lessened in the other localities of the Empire. , Upon what particular basis or precise amount of earnings these sev- eral classifications in the respective districts are based it would be quite impossible to ascertain without an examination of all the tax rec- ords (kataster) in the tax districts of the Empire. The only statement to which I have been able to gain access, and which relates to the license tax imposed upon proprietors of factories and wholesale dealers in Vi- enna seems to show that in that locality the tax levied amounts to about 3| per cent, of the net earnings upon that particular class. Exemption from license tax. — From this tax are exempt (a) the ag- ricultural industry in so far as it is confined to the raising of raw pro- ducts ; {b) all -workmen who work for wages or by the job ; (c) all common day laborers; ( " " nobleman (simple) 1,050 Combinations of coats of arms (unio armorum), changing or improv- ing same (melioratioarmorum), and the issuing of a heraldry letter (Wappenbrief) are also subject to a tax. The conferring of the title of secret councilor is connected witli a tax of 630 florins, and of title of chamberlain with a tax of 1,050 florins, etc. Even ministers of the gospel pay this tax ; in case of promotion to court chaplain, for instance, 52.50 florins. All public oificers, when their salary exceeds 300 florins per annum, pay a tax at the time of appointment to office called the service tax. 212 REPORTS ON TAXATION. Most of the decorations are coaueoted witli a tax, but the Emperor of fVustria may bestow any decoration free of all tax, and very frequently Jxercises this privilege. Tax on donations and legacies. Donations during the lifetime of both parties, if made to a relative, ire subject to a tax of from 26 to 29 per cent, of the net amount of the lonation, according to the degree of relationsliip between donor and lonee; in all other cases the tax is 33 per cent, of the net amount do- uited. Legacies and all property devised by will or acquired by inheritance, f a relative is heir or legatee, are subject to a tax of from .iG to 2'J per jent.; it' a stranger is heir or legatee, 33 per cent, of the net proceeds, jxoept in the case of a legacy left to the servant of the testator, when, if the legacy does not exceed an annuity of 50 florins or 500 florins in gross, 26 per cent, is imposed as tax. Tax on State lottery bonds (Slaats lose). The tax on all prizes or premiums drawn on Austrian State bonds is 20 percent., and on the private bonds 15 per cent. Chamber of commerce taxes. The Vienna chamber of commerce, like the chambers of commerce of 3ther cities, is created by special decree of the Emperor. It acts as an advisory board to the minister of commerce, and has the commercial and industrial interests of the city in charge. Questions of tariff are generally submitted to it, but its report and opinion do not always influence the Government. For the purpose of maintaining this corporation and paying its current expenses certain general taxes are levied, which in the city of Vienna amount to about 57,000 florins per annum in round figures. The chamber is represented by one member in the Eeichsrath (diet), and I presume that the influence and the results of the labor of this representative are considered the main equivalent for the pecuniary support of the chamber enforced from the taxpayer. Registry of business firms. Another indirect tax results from the law providing for the registry (ProtocoUirung) of business firms. A certain tax, proportioned to the extent of the business represented by the Arm, is paid at the time of the registry. The advantages derived from this registry are, first, an increase of the firm's credit and improvement of commercial standing; and, secondly, the exceptional privilege of collecting all claims based upon drafts and promissory notes (Wechselschulden) by summary pro- Ci edings. A firm not registered must resort to the tedious road of the usual dilatory proceedings. The advantage is obvious and at times very valuable. The disadvantage resulting from registry is an increase of 20 per cent, of all license and income taxes following immediately upon the registry, but this burdeu is borne by many with a good will, principally because a registered firm finds no difficulty in discounting its paper, while the paper of a non-registered firm goes begging about the streets. Bankruptcy laws as applied to registered firms are excep- tionally severe. AUSTRIA-HUNGARY. 273 THE EXPENSES OF THE COLLECTION OP STATE TAXES. Florins. The total amount of direct taxes collected in 1885 was 96, 945, 000 Indirect taxes known as — Consumption taxes, etc 90, 494, 000 Stamp taxes 17,600,000 Taxes and fees on legal documents 34,000,000 Additional taxes on traffic in distilled spirits 1,2:^0,500 Tolls 2,4()2,000 Total 242,721,500 The total expense of collectiug the taxes was : FloriDS. Direct taxes 591,200 Indirect taxes, known as consumption taxes, etc 13, 049, 420 Stamp taxes 373.0110 Taxes and fees on legal documents 800,000 Additional tax on traffic in distilled spirits 15,400 Toll taxes 28,000 Total 14,857.020 THE TAX-EOLL OF A VIENNA BUSINESS MAN. As an example of the burden of taxation imposed upon the business men of limited capital and very moderate income, I beg leave to submit the following tax-roll which 1 have obtained permission to inspect. The example is not by any means one of extraordinary occurrence and does not represent the maximum rate of taxes imposed ; on the con- trary, the rate as applied to the sum of net receipts is fully 10 per cent, lower than other practical examples which could be easily furnished. The tax-roll inspected includes state and municipal taxes. The tax- payer carries on the business of a printer in a store and basement situ- ateon aby-street; dimensions of store about 25 by 50 feet; annual rental, 2,750 florins; estimated net income per annum, 3,219 florins. Tai^es paid in 1886. Florins. School tax 254.38 Water tax 27.50 Night-watch tax 22.00 License (Erwerbsteuer) 273. 00 Cliamber of commerce tax 9. 97 Inconie tax 249.28 Personal tax paid in tliis instance by employer for all employes receiving a salary over 600 florins per annum 165.00 Total 1,001.13 or very nearly 32 per cent, of the estimated net income. THE PRESSURE OF TAXATION UPON CERTAIN LINES OF INDUSTRY AND BUSINESS. Unquestionably the Austrian tax system favors the capitalist and the great real-estate owner, and the heaviest tax burden is borne by the merchant and business man of limited means. The capitalist may invest his millions in tax-free securities and thus escape taxation almost entirely. If he dwells in a palace within a closed city he pays a house-rent tax on its rental value; if his estates are situ- ate in the open country he pays the house-class tax, and in this case it 274 REPORTS ON TAXATION. is to be noted that the wealthy bondholder pays no higher rate of taxa- tion on a marble edifice containing say forty rooms than the owner of a common brick tenement house in the neighboring village with the same number of rooms, because, as already stated, the house-class tax is levied according to the number of inhabited or habitable dwelling- rooms, without reference to the character or cost of the building. The most expensive stables and outbuildings, though they cost thousands upon thousands, are free of tax the same as the straw-thatched barn of the peasant. A millionaire, therefore may enjoy the possession of a grand establish- ment in the country, a castle containing forty rooms, by paying the comparatively small tax of 220 florins per annum, exactly the same amount which the landlord of the village inn has to pay if he happens to be in the use and occupation of the same number of habitable rooms. But it should be remembered that the landlord of the village inn pays a large license tax and an income tax besides, both of which the man in the castle escapes because he invested his millions in tax-free securities and is not compelled to carry on business to support himself and family. If a large park surrounds the castle, that too, in most cases, is free of tax because it is unproductive, while the garden patch in the rear of the village inn certainly produces something, and is therefore subject to the usual levy for that class of property. It is quite superiiuous to carry the comparison any further ; it is evi- dent that, as to the two cases mentioned, there is little uniformity in the system of taxation under consideration. But the tax-payer who carries the heaviest burden is the small merchant and business man generally who carries on business in one of the " closed cities " like Vi- enna. First of all he pays indirectly a house-rent tax of 45 per cent, of the actual rental value of his dwelling, because the owner of the tenement building takes good care to place his rent high enough, so that he can well afford to pay the tax, of 45 per cent, to the Govern- ment. And it is a notorious fact that especially in Vienna the rents of the small fiats fit for dwellings of the middle classes are unreasonably high. Next he pays his license tax, to be fixed by the tax officers at a rate decided by them ; then the pays a tax on his net income amounting to from 10 to 20 per cent., again as the tax ofi&cers may decide ; then the chamber of commerce comes in for its share of taxes, and after this follow the indirect taxes, principally the consumption tax, which raises the price of his meat, his bread, his candles, his beer, his wine, in fact everything he puts upon his table or into his kitchen. Even the oats and hay which he feeds to his horses (if his business requires him to keep horses), down to the straw for their bedding, is raised in price by the consumption tariff line drawn around these so-called "closed cities." As an inevitable consequence Vienna is to-day one of the most ex- pensive cities on the continent of Europe. Many necessaries of life in the shape of good healthy food are so dear that they are placed be- yond the reach of the man of moderate means. A mechanic or a clerk or a public functionary, with a salary of barely 1,000 florins per annum, rarely sees a roast on his table. It is self-evident that the high prices of rents and provisions have been the principal factors in shaping the habits and mode of life of the people. Among the middle and lower classes there is little home life. The dwellings are so small and pinched that lamily gatherings and invitations to friends are impracticable, and the coffee-house and cheap restaurants and public gardens are re- sorted to for social intercourse as well as for the evening meal and thousands manage to make a supper out of a glass of beer and a slice of AUSTRIA-HUNGARY. 275 bread, because more than oae substantial meal at their own houses is quite beyond their means. These and many other unavoidable deductions may be drawn from that dry line of tigures giving the statistics of taxation in the Empire of Austria. Edmund Jussen, Consul- General. United States OoNSUiiATE-GENEEAL, Vienna, April 30, 1887. BOHEMIA. BJEPORT OF OOMMEBOIAL AGENT BAWES. Taxes are here of two kiuds, direct and indirect. DIRECT GOVEENMENAL TAXES. Direct taxes are based upon the real or estimated income and are divided as follows: (1) Land taxes, (2) house taxes, (3)earmng tax, and (4) income tax. Land taxes. — Land taxes are those paid to the government for the use of land (law dated May 24, 1869). According to this law there was first esti- mated the net proceeds of the production surface of different commu- nities, and then, by adding these figures, there was obtained the total proceeds of all communities represented in the Senate. According to the result, as determined above, were fixed the yearly land taxes which amount to 37,500,000 florins for all states for a period of fifteen years. This amount is divided in proportion among the different states and commu- nites and the percentage thus ascertained. This amounts at present to 22.7 per florin. At the expiration of fifteen years a re-examination takes place, and the total amount of land taxes and the percentage are again ascertained. jjThe town of Reichenberg paid for 1887 the amount of 1,683.31 florins upon the net proceeds of 7,447.47 florins, which amount, however, does not quite correspond with the 22.7 per cent., as there are, during the period of transition from one rate to another, some favors allowed by law to land-owners who have to pay higher taxes than they paid underformer conditions. It should be also stated that the Government grants to land which becomes unproductive from the action of the elements exemption from taxes for a period of ten years and to new plantations of forests such exemption tor twenty-five years. House taxes. — House taxes are divided into so-called house-rent taxes and house-class taxes, the distinction being determined by the fact of houses beingrentedornon-rented(self-used). According to a recent decis- ion there are subjected to house-rent taxes: [a) All houses situated in communities in which at least one-half of the houses and residences are rented; or (6) those which, being outside of such communities, are yet wholly or partly rented. If, however, there are among the latter houses which contain three sets of apartments which are used by the owner himself and only partly rented, they are subjected to class taxes. Sub- jected also to class taxes are those non-rented houses in those commu- nities which do not correspond to the conditions of (a) in regard to their 138— No. 99 2 276 EEPORTS ON TAXATION. dwelliugs. The result is, therefore, that some communities are only sub- jected to reut taxes, while others are subjected to rent and class taxes, or to the latter only. It is generally the case that the capitals of different States aud the provincial towns as well as larger communities are included in the rent- tax class, as more than half of the residences are rented, while only small communities belong to the class-tax class, having only a small part or none of their residences rented. House-rent taxes are estimated in the following manner : Every house proprietor lays before the government authority a statement, giving the amount of rent he receives from his tenants, or if he uses a l)art of his house himself, to add an amount to it which must be esti- mated from the rented apartments. These statements are examined by an officer of the town who may alter any found incorrect. House-rent taxes are of two kinds, in those communities in which such taxes were in force so early as 1820, as in the capitals and Bohe- mian watering places, there will be deducted from the gross amount of reut received, 15 per cent, for repairs, etc., and upon the balance a tax of 26| per cent, is levied. In those communities, however, in which rent taxes have been in- troduced since 1850, 30 per cent, will be deducted for repairs or a mor- tization and a tax of 20 per cent, levied. House class taxes are paid according to the number of unrented rooms ot a house, and consist of sixteen classes. TTie tax for one apart- ment (sixteenth class) amounts to 1.50 tiorins, etc., up to the highest class with 36 to 40 apartments (first class), which pays a tax of 220 florins. For the houses whose proprietors are compelled to pay house rent taxes, those which are not mentioned among the communities as per (a) al- ready referred to, the class taxes must be fixed according to the tarifl', and the rent taxes for the rented rooms are prescribed to the 20 per cent, of the rent received. But the amount for both these taxes together must not be less than the class taxes for all the apartments of the house according to the tariff. The Government allows to new buildings and rebuildings-an exemp- tion from taxation for a period of twelve years, during vrhich time there are neither house-rent taxes nor house-class taxes to pay. The owners of such houses have, however, to pay 5 per cent, taxes on the amount of rent they receive. In Reichenberg, where only the house-rent tax exists, the same amounts this year to 106,274.28 florins, aud the 5 per cent, tax for houses which are free from house-rent tax to 4,589.86 florins. naming taxes. — These taxes were first imposed on December 31, 1812, aud must be paid by all independent managed concerns which are estimated to produce a profit. The law divides these taxes in four different trade classifications, as follows: (1) Licensed factories and wholesale concerns ; (2) other trade undertakings; (3) art and trade; (4) private teaching, trade negotia- tions, and tue forwarding of persons and goods. In the second, third, and fourth categories exist again certain tax rates which are estimated upon the basis of population afcer four class- ifications, as follows: (a) For larger capitals ; (&) for communities of 4,000 inhabitants and more; (c) for those with a population of 1,000 to 4,000 inhabitants ; and (d) for places with less than 1,000 inhabitants. In each of these classifications exist again several tax rates which are AUSTRIA-HUNGARY. 277 fixed according to ciicutnstauces, and which are imposed upon various trade concerns according to their extension. For concerns included in the iirst category none of these classifica- tions in regard to population apply, as these undertakings are inde- pendent of the same. There are only fixed a number of tax rates vary- ing from 42 florins to 15.75 florins. In order to estimate the amount of earning tax there are considered beside the population of the place the nature of the business, the cap- ital invested, the number of employees, the situation of the business, personal qualifications, and the probable productiveness of the under- ' taking. The earning tax for Eeichenberg for 18S7 amounts to 42,759 florins, paid by 2,322 contributors. Income tax. — This tax has for its object the taxation of income not in- cluded in the land or house tax, and furthermore to balance the pay- ment of the third sort of income (earnings) among the contributors themselves with regard to the amount of the productiveness of their business, as this is, in consequence of the great varieties of the earn- ings tax, often impossible to estimate. The income tax is divided into three classes. To the first class belong the income of mines and foundries and the profits of leasehold. The second class includes salaries and other benefits which are paid by the Government, districts, towns, or private persons; also pension incomes of authors, "doctors, etc., receipts from " support establish- ments" and life-insurance companies. Ta»es of the second class are levied only if the yearly income amountg to more than 630 florins. Assistants, workmen, soldiers, ofQcers, etc., do not pay any taxes. The third category includes such incomes as the interest on loans and claims, life-rents, or other rents drawn from capital, as long as they do not belong to the second class. The estimation of the income tax is based upon the statements of the individuals, which are examined by commissioners and if found wrong they are rectified by them. The rate of income tax for the first and third class is 5 per cent., while the rate of the second class is regulated by a scale. This scale com- mences with an income of 630 florins ; the rate for an income over 630 florins to 1,050 florins is 1 per cent.; from 1,050 florins to 2,100 florins is 2 percent; from 2,100 florins to 3,150 florins is 3 per cent.; and so on, 1 per cent, additional for each 1,050 florins more, up to 9,450 florins ; the last 1,050 florins of which pays 10 per cent. A further increase' of the percentage on an income of more than 9,450 florins is providefl" against. •Those undertakings which pay according to the third and fourth trade classification (see above), the smallest rate of earning, taxes, are free from income tax. All other contributors of the earning tax, however, are subjected to an income tax, which is estimated on a basis of 5 per cent, of the average income of three years. From the amount of the income tax is to be deducted, however, the amount of the earning tax, the ex- cess of the income tax over that of the earning tax is the amount to be paid. The regulations state, however, that the income tax must never be less than one-third of the earning tax, and if this is not the case,, the same must be raised accordingly. For instance, A is esti- mated to pay a tax upon the income of 1,500 florins. The 5 i)er cent, income tax would amount to 75 florins; he pays an earning tax of 42 florins, which amount is deducted from the 75 florins, and he has to pay therefore an income tax of 33 florins. Were A, however, estimated to 278 REPORTS ON TAXATION. l^ay an earning tax of 63 florins, there would only remain 12 florins as an income tax, which amount must, according to the instructions above referred to, be raised to 21 florins (one-third of 63 florins of the earning tax). In the latter case it should be observed A would be estimated with too high an earning tax, which would make it necessary for him to claim a reduction. The Grovernment collects, besides the regular income and earning tax, also a special additional amount as high as the regular tax, i. e., the earning and income tax are paid double. Only those tax contributors of the iirst class who pay as an earning and income tax together not more than 30 florins, and those of the second class who pay an income tax not jgreater than 30 florins, are charged with an additional 70 per cent, of me regular tax. For the land and hoase taxes there is no special additional amount to pay. The yearly proceeds for Eeichenberg from the income tax alone amounts to about 97,300 florins. Land taxes must be paid monthly in advance. House taxes and the 5 per cent, of these hous4>s which are free from taxes must be paid quarterly in advance, commencing with the 1st of January. The earn- ing taxes must be paid on the 1st of January and 1st of July of every year and the income tax quarterly, commencing with the 31st of March. In case of non-payment of any of these taxes execution may take place. The above taxes are governmental. In addition to these the inhab- itants are called upon to pay county, district, and town taxes. The estimation of these county, district, and town taxes is based upon the land taxes, house taxes, earning and income taxes, the latter two kinds of taxes including the special additional Government taxes. The houses which are free from other taxes have to pay this assessment of taxes, which will be estimated as if no other exemption existed. On the other hand there will be no collection of taxes from the houses which are tax-free of the 5 per cent, taxes. The percentage of the assessment will be fixed yearly by appointed representatives according to requirements. In Bohemia the land as- sessment, for instance, was, in 1886, 35 per cent, of all direct taxes, and this year it will amount to 35J per cent. It is the same thing with the district assessments in those States where autonomous district repre- sentatives exist. A second kind of district, which provides only for the most necessary needs of the schools, particularly of the teachers' salaries, are the school districts.* In these districts are collected the district school taxes. The regulations fixing the amounts of these taxes vary in the several States. In Bohemia it is the rule that those school districts which can not cover their needs with an assessment of 10 per cent, are supported by the Government. Such support, however, is not granted to those towns which have their own school district (Prague, Eeichenberg, and K6- uiggratz), which must pay their own expenses. Any community in Bohemia has the right to levy au extra assess- ment to defray expenses for building or repairing public school build- ings, which the people have to pay. ■ Eeichenberg collects from all direct taxes a school assessment of 12 per cent, and a community assessment of 25 per cent. The tax-payer of Eeichenberg has then to pay — (1) The Government taxes for land or houses; taxes for a trade or other source of income, including the special additional taxes. AUSTRIA-HUNGARY. 279 (2) The Bohemiau assessment of 35J per cent. (3) School district taxes of 12 ijer cent. (4) To the community an assessment of 25 per cent., based on the taxes paid the Government. In addition, the town of Eeichenberg, according to its statutes, is en- titled to a special assessment of 5 per cent, of the rents. This tax is paid by all parties who rent apartments or houses, and also by house owners for the rooms which they themselves occupy. Those parties who pay a rent of not more than 25 florins yearly are exempt from the above tax. The magistracy collects, l|jesides the direct taxes, also indirect taxes ; the latter are only paid for special occurrences and are not current taxes. They consist of fees for legal documents for the transfer of prop- erty, real or personal, etc.; also taxes upon eatables, brandy, spirits, pressed yeast, wine, cider, meat, cattle, sugar, and mineral oil, licenses for the sale of brandy, spirits, etc. ; tax on the consumption of those articles controlled by government monopoly, such as salt, tobacco, etc., also exists, as well as one upon lotteries, which are flourishing institu- tions in this country. The methods of making the above assessments are too varied to be considered. A community has also the right, after having received the concession, to collect a tax on certain extra articles of consumption. Keichenberg collects, for instance, 1 kreutzer for each liter-of beer sold by retail and 3 florins for each hectoliter of wine; 3 kreutzers for each bottle of wine ; from 3 florins to 8 florins for each hec- toliter of spirits, according to its strength, and 4.50 florins per hectoliter or 100 kilograms for those spirits which can not be measured with the alcoholometer. The collection of the direct taxes and a large part of the indirect taxes is made by imperial tax officers. The imperial custom-houses collect also some iudirect taxes, but the greater part of the latter are farmed out. The imperial tax officers collect also land assessments, and in Bohemia also the district and school taxes, without charging the com- munities for the work. Community assessments are generally collected by community authority. Those towns which form their own adminis- trative districts, as Prague and Eeichenberg, have to j)ay their own ex- penses of collection without any compensation from the Government. John B. Hawes, Commercial Agent. United States Commercial Agency, Beichenberg, August 5, 1887. 280 REPORTS ON TAXATION. Table showing expenses and provisions for expenses of the toivn of Reichenburg. Items. Ordinary expenses. Expenses of the adrainistrationin gen- unil : Ifixponses for the representatives of the town Salaries to clerks, servants, etc Pensions, charities, etc Fees and accommodations Office expenses Expenses for thcproperty of the town; Imperial taxes Kepairing buildings Theater Estates Marke booth Town reyenne Paying debts Interest Expenses for the local police : Cleaning tbo town, Investigation Public parka Public lighting Canals River police Aqueduct Local sanitary Market police Fire police Town horses, etc Expenses for Irumanity, etc: Donation to the poor Donation to poor-house Donation to public kindergarten, orphan asylum, etc Kindergartens. Subscriptions and contributions. .. Culture expenses School expenses : Public school Commercial school Government technical school Various other expenses Expenses for services rendered to the Government: Expenses forrocruitingserviceand conscription Military quartation Expenses for adilitional horses Expenses for public safety Yarious expenses Total ordinary expenses 3,050 27, 185 2,509 200 4,520 37, 46-t 4,926 1,340 10, 110 113 9HC 108 2,949 2, 28L 22, 818 7,400 8,523 120 14,861 1,000 1,600 1,341 1,890 20 1.987 3,076 42,418 14, 000 5,100 150 3^610 2, 068 25, 669 11, 855 2,350 600 40,474 20, 859 190,451 Extraordinary expenses. Public buildings Paying debts Local police expenses ■ Plans for tbo town Buying laud for street purposes Different extraordinary expenses - - Total extraordinary expenses. Total expenses Ordinanj provisions. Income of fees and contributions. Income of the town property : Theater IJiiildiug Estates. Market booths Capital -- Net proceeds of old material.. Town revenues Income of the local police: Building, street, and tire police Sanitary police Eines Income of all kindergarten Income of school h : Public schools Commercial schools Other school* , Income of tbo service rendered to the Government: Compensation for recruiting e penses Military quartation Compensation for horses Compensation for public safety.. Different incomes Total ordinary provisions HxtraonVmary rxucnsa.. Town projierty (forest) Total provisions Total amount of expenses Total proviaioua fur expenses Balance* .' Florins. 20, 000 49, 666 6,000 14,861 90, 5^7 280, 972 0,175 13, 653 1,874 1,600 545 210 400 1,155 2,120 13, 136 11,344 12, 000 36,480 130 7,234 120 7,7S4 300 144, 250 1, 800 146, 050 280, 972 146, 050 134, 922 This balnnce is covered by a 25 per cent, tax based upon all direct tax^s and the additional tax trom the land tax, 1,090 florins; house-rent tax, 12-1.000 liorins; earning t:ix, 83,000 florins- income tax. 167,000 florins— amounting to 93,022 liorins; and a 5 per cent, assessment of all rent paid which amounts to 8jO,000 liorins, after deducting the tax for empty rooms, 41,000 florins, matins a total of 134,022 florins. ° AtlSTRlA-HUNrxARY. 281 « REPORT OF CONSUL JONAS. The Austrian Empire, of which Bohemia forms apart, has an area, exclusive of the Kingdom of Hungary and its dependencies, of about 122,000 square miles, and a population of :^2,145,00i) souls, according to the census of 1880, showing an average of 181 inhabitants to the square mile. Bohemia has an area of nearly 20,000 square miles, with a popu- lation of 5,560,819 souls, which shows a density of 278 inhabitants to tlie square mile. With about one-sixth of the area of the Empire, it contains fully one-fourth of its aggregate population. Being on the whole a fertile and industrious country, Bohemia bears rather more than its share, in proportion to area and population, of the imperial taxation of Austria. IMPERIAL TAXATION. The imperial or national taxation in Bohemia is regulated by the general revenue laws of the Austrian Empire. I shall confine myself in the present report to a brief statement of the nature and amount of those taxes as levied in Bohemia. THE DIEEOT TAXES IN BOHEMIA. I. The land tax, fixed at 22.7 per cent, of the clear profit from the yield of agricultnrallands for a period of fifteen years, beginning January I, 1881, which profit was ascertained by the imperial central commis- sion at 107,955,507 florins for the whole Empire, and at the figure of 50,831,770 florins, or 30.81 per cent, of the whole for Bohemia, the Austrian florin being equal in value to about 38.5 cents. Since then a re-adjustment has been made reducing the figure for Bohemia about 2,000,000 florins. II. The house tax, according to the law of 1882 subdivided as follows: 1. The house rent, or tenement tax, levied in the following manner: (a) in all towns where at least one-half of all the separate dwellings or habitations are rented; (6) on buildings situated outside of such towns, which are wholly or partially let to tenants, excepting, how- ever, buildings containing no more than three separate dwellings, and in which the owner resides, letting them only in part to tenants. This tax is equal to 20 per cent, of the clear yield of the rent, after deducting 30 per cent, for the maintenance of tbe building. 3. The classified house tax. It is regulated by a scale dividing the houses into sixteen classes, according to the number of separate dwell- ings they contain. The first, or highest class, imposes a tax of 220 florins, the lowest of 1.50. 3. The 5 per cent, tax levied on the clear profit fuom new buildings, temporarily exempt from other taxation, the period of such exemption being twelve years. Permanently exempt from taxation are churches, state buildings, barracks, and hospitals. III. The tax on business. — The different businesses or occupations are ranged in four great divisions, in which the tax is classified according to population. The first division comprises manufactories divided into eight classes, the tax ranging from 42 florins to 1,575 florins. The second division includes commercial enterprises, wjjolesale houses, banks and institutions of credit, insurance companies, railroads. Commercial establishments in Prague, the capital of the country, are 282 REPORTS ON TAXATION. divided into four classes, and the tax ranges from 35.50 florins to 315 florins. In towns with a population exceeding 4,000 there are three classes, and the tax ranges from 42. to 105 florins. In towns having a population between 1,000 and 4,000 there are also four classes, and the limits of the tax are 31.50 florins and 84 florins. In ail ])laces with a population under 1,000 there are four classes, with a minimum tax of 2.10 florins, and a maximum of 16 80 florins. The third division embraces arts and trades. In Prague they are divided into eight classes, the tax ranging from 3.15 florins to 105 florins: in the other towns they are divided according to the above scale, with regard to population, into six, five, and four classes, respect- ively, the corresponding limits of the tax being 3.15 florins to 52.50, 2.62'V florins to 31.50, 2.10 florins to 16.80. The fourth division embraces persons engaged in services as teachers, carriers of persons and goods, or common carriers, and as middle-men to facilitate business. Owners of educational institutions, private teachers, music teachers, etc., afe taxed in Prague from 3.15 florins to 12.60 florins ; in towns of 4,000 inhabitants or over from 2.10 florins to 4.20 florins. Middle-men in business pay in Prague from 40 to 210 florins; in towns of 4,000 people or more, from 20.25 to 63 florins; in towns with a population between 1,000 and 4,000, 10.50 florins to 21 florins ; and in all other places 5.25 florins to 15.75 florins. "' Common carriers pay in Prague from 8.40 florins to 52.50 florins; in other towns, according to the above scale of population, respectively, 5.25 to 21 florins, 3.15 florins to 15.75 florins, and 2.10 to 8.40 florins. The above rates, however, only represent the ordinary amount of the tax according to the original levy ; but there is now also an extraordi- nary addition levied, equal in amount to the above figures, actually doubling the tax, except in cases where the aggregate sum of the ordi- nary tax on business and the income tax of the first or the income tax of the second class does not exceed 30 florins. In such cases the extra- ordinary addition to the tax on business is only seven-tenths of the ordinary tax. IV. — The income tax. — It is designed to tax that income which is not reached by the land and house taxes. The incomes are divided into three classes: 1. Income from such branches of business as are subject to the tax on business ; income from mines and foundries ; income from rents. 2. Salaries and pay of officials and employes; the income of artists, authors, physicians, private teachers, etc.; income of religious orders, from foundations, and public funds. 3. Income from interest on loans, except such loans as are secured by mortgage on taxable real estate ; income from annuities. This tax is assessed annually to the amount of 5 per cent, on all in- comes of the first and third classes ; 1 per cent, on incomes of the second class from 630 to 1,000 florins ; and then 1 per cent, more on every in- crease of 1,000 florins, until the limit of 10 per cent, is reached, which the tax can not exceed. As in the case of the tax on business, there is levied an extraordinary addition, equal In amount, by which the actual tax is doubled. Taxpayers, however, whose tax on business and income tax of the first class or income tax of the second class do not exceed 30 florins in the aggregate, pay an extraordinary addition of oidy seven-tenths of the ordinary income tax. Exempt from the income tax are, in the first class, the incomes from AUSTRIA-HUNGARY. 283 arts, trades, private instruction, and from the carrying trade of those persons who are put in the lowest class of business tax-payers ; in the second class, salaries and fixed incoQies under G30 tlorias; iu the third class, the incomes from deposits in savings baaks, the interest from capital and securities, when the annual income of tlie persons drawing the same does not exceed 315 florins. The actual amount of the direct taxes raised iu Bohemia for the im- perial treasury in the year 1886 was the following: FIoriDS. Land tax n,226,i50 Honse-reut tax 4,558,027 (JIassified house tax 1,285,463 Five per cent, house tax 238, 797 Tax on business 3, 112,941 Income tax 5,299,356 Penalties for delinquent taxes 93,779 Interest on delayed taxes. ..-■ 72,352 Total. 25,892,165 The entire amount of direct taxes raised in the Austrian Empire in the same year being 101,458,824 florins, the percentage borne by Bo- hemia is about 26, and the amount per head of population nearly 4.80 florins. INDIRECT TAXES. I. Tlie excise or tax on consumption ( Verzehrungssteuer). This tax is levied, as a rule, upon wine, cider, beer, spirits, meat, beet-root sugar, since September 1,1882, on mineral oil produced by refining, the density of which does not exceed 870.001 of the density of pure water ; finally, since October 1, 18S4, on pressed yeast of spirits. In Prague, which is called a " closed city," by way of distinction from the " open country," some additional articles of consumption are subject to this tax, as will be seen further on. The rate of the excise is not equal. In Prague it is higher than in the open country. In many cities and towns a communal addition to the general tax is raised for local purposes, but only on articles con- sumed in the respective city or town. The tax is paid either at the time of the manufacture of the taxable ar- ticle or at the time when it is carried across the tax line of a closed city (namely Prague), and sometimes at a time nearer the actual consump- tion of such article. Wine and cider pay no tax when sold at wholesale, that is, in quanti- ties exceeding 1 "eimer," equal to about 12 gallons, or in quantities of at least 50 bottles put up in baskets or boxes. Retailers pay the wine tax at the following rates : In Prague, per hectoliter, 3.18 florins ; in the open'couutry, per hectoliter 2.97 florins, the hectoliter being equal to 26J gallons of wine measure, and 1 florin being equal to about38.5 cents. Ar- tificial wines are subject to the tax in Prague only. The tax on beer is levied on the quantities brought to the cooler, according to the percent- age of extract contained in the beer- wort, and ascertained by the official saccharometer at 14° E. before fermentation. The amount of the tax is 16.7 kreuzers on each degree of the reported extract from every hec- toliter of the beer- wort. Special permission is necessary to manufacture beer- wort over 20 degrees of the saccharometer, and a watering of the produced beer-wort is not allowed. In Prague there is levied an additional tax of 7 kreuzer to each de- gree of the saccharometer. Beer brought into Prague pays 70 kreuzer 284 REPORTS ON TAXATION. per hectoliter. Oa beer carried out of Prague there is a restitution of 74 kreuzer per hectoliter; oa beer exported abroad iu qaaatities of at least 1 hectoliter, the tax of 16.7 kreuzer is paid back,, or there is a drawback paid of 1 florin 50 kreuzer per hectoliter, regardless of the strength of the beer-wort from which it was made. The tax on spirituous liquors is 11 kreuzer on every hectoliter and every degree of alcohol, according to the prescribed centigrade alcohol- ometer, and Is paid at the time of manufacture. The same tax is levied on vinegar when produced from fermented mash by distillation, accord- ing to its alcoholic strength. If the production of pressed yeast is connected with the manufacture of liquors or vinegar, 30 per cent, is added to the above tax rate. A drawback equal to the whole amount of the tax, with an addition of 10 per cent, to cover expenses, is paid to the exporters of liquors in quantities of no less than 25 liters. A similar drawback is paid on such liquors as are used in the manu- facture of articles which do not enter into human consumption. The tax on sugar made from beet-root. This is by far the most Important item of indirect taxation in Bohe- mia, considering that of the 212 beet-root sugar manufactories which existed in the whole Austro- Hungarian monarchy during the campaign of 1885-'8(>, 137 were located in Bohemia alone. The tax, in fact, is not levied on sugar, but on the beet used in its ■ manufacture at the rate of 80 kreuzer per metrical centner or 100 kilo- grams of beet, 1 kilo being equal to 2.2 pounds avoirdupois. The quantity of sugar produced is about 11 per cent, of the quantity of beet in weight, and from 1 metrical centner or 100 kilograms of raw sugar there is produced 87.5 kilograms of refined sugar. The tax on 1 metrical centner of raw sugar is therefore about 7 florins 20 kreuzer, and on refined sugar 8 florins 22 kreuzer. The drawback on exports is 8 florins 40 kreuzer per metrical centner of raw sugar, containing 88 to 92 per cent, of saccharine matter, and 9 florins 40 kreuzer per metrical centner of raw sugar containing over 92 per cent, of saccharine matter. On refined sugar the drawback is 11.55 florins per metrical centner. Consequently there is a clear bonus paid on the exportation of sugar from 1.20 florins to about 3.33 florins per metrical centner. So far the system of taxing the production of sugar would seem to be very advantageous to the producer or exporter; and yet complaints about the unjust and burdensome character of the system are quite gen- eral in Bohemia. This is explained by the following corollary of this tax law ; the imperial treasury exacts a fixed amount as the clear pro- ceeds of the sugar tax, and an eventual shortage must be covered by au additional tax levied upon the sugar manufacture. The subjoined flg- ures relative to the " sugar campaign" of 1885-86 (which does not cor- respond with the fiscal year) will make it plain. During that period 16,086,407 metrical centners of beet were used up in the Bohemian sugar-mills, on which a tax of 12,869,126 florins was paid ; the amount of 10,724,647 florins was returned as a drawback on exported sugar, being nearly five-sixths of the tax. But in order to raise the amount due the imperial treasury an additional tax of about 42 kreuzer per metrical centner was levied, amounting in all to 6,727,877 florins. Consequently the actual amount of tax paid on sugar manu- factured in Bohemia was 19,597,003 florins; deducting the drawback, it leaves 8,872,356 florins as the actual receipts of the treasury. AUSTRIA-HtlNGAHY. 285 During the "sugar campaign " of 1886-'87, tiie output was mucli greater, as will be seen from the subjoined figures : Metrical centner. Beet used ia the manufacture 27,974,784 Sugar produced 3,077,226 Tax paid 22,379,827 Sugar exported 1,141,740 Drawback on exports 10,732,438 Additional tax (estimate) 7,200,000 Total amount of tax about 29,579,827 The complaint is that the tax does not bear equally on all manufac- tories. 1. It is paid according to the capacity of the "diffusers," ascertained and fixed by a commission at the start of the campaign, but the capacity of some diffusers may be increased beyond the legal limit by a different arrangement, and the " quotient" of the filling raised,, so that one factory actually pays about 80 kreuzer per metrical centner of beets, another perhaBS only 72 kreuzer. 2. The quality of beets is also different. The percentage of saccharine matter varies between 11 and 15. At 11 per cent, there can be made 1 kilogram of sugar from 9.1 kilograms of beets, on an ideal calculation, regardless of losses ; a,*: 15 per cent, the result is 1 kilogram of sugar from 6.7 kilograms of beets, consequently a tax of 80 kreuzer on a metrical centner of. beets having 11 per cent, of saccharine matter is equal to 7.27 florins on a metrical centner of sugar, whereas at 15 per cent, of saccharine matter it makes only 5.33 florins. On a quantity of say 250,000 metrical centners of beets worked up in a sugar mill it makes a difference in the tax of 48,000 florins, which is very great. 3. The manufacture of beet-root sugar has not yet reached such a de- gree of perfection as to be carried on without any loss of saccharine matter. This loss may be different according to the arrangements of the mill. One mill works with a loss perhaps of 1.5 per cent, of sugar in proportion to the weight of the beets; another with a loss of 2.5 per cent., so that in the first case the mill pays a tax of 10 kreuzer on every metrical centner of beets for sugar which is not produced; in the second case it pays 16.B kreuzer ; in other words, if 250,000 metrical centners of beets. are used, the mill pays a tax of 25,000 florins on its actual loss in the first case, and 44,000 florins in the second case. 4. Some sugar mills are prepared to '■educe molasses to sugar by means of strontiauite, or by Stephen's method of extraction, or other- wise. They do not pay any tax on this sugar; yet, on exporting it, they receive the drawback, and all other sugar mills have to contribute through the additional tax to make good this bonus. A change in the taxation of the sugar industry is now under consid- eration, touching also the mode of payment. The present tax is paid one month in advance, either in cash or by draft; by the new plan it would only be paid when the product is taken from the mill; that is, sold. Sugar, therefore, could be sold with much more security than at present, when th3 seller does not know whether he sold with profit or at a loss, being ienorant of the amount of the additional tax, which is only fixed at the close of each campaign (August 1). The tax on meat is levied on all beasts slaughtered for the market and all meats for sale. The amount to be paid is fixed either by agreement between the revenue officers and the respective business men atagiven place, or the tax is collected by the revenue officers according to the prescribed tariff', or its collection is rented for a fixed amount. 286 REPORTS ON TAXATION. Tbt) tariff for the open country classifies the tax on meat according to population. The first class embraces all places with more than 20,000 inhabitants ; the second class all places with 10,000 to 20,000 in- habitants; the third class all other places. The rate of the tax in the first class is double the rate in the third class, and the second class holds the middle between the two. Florins. Oxen, steers, cows, and calves over quo year old, pay in tlie first class 5. 04 Calves under one year 84 Sheep and goats 32 Lambs not over 14 kilos 21 Young pigs from 5 to 19| kilos 63 Pigs over 19J kilos 26 Fresh meat, that is, parts of beasts slaughtered for food 1 . 87 The city of Prague has its own scale. The tax on pressed yeast and on mineral oil in Bohemia is of small moment. The actual results of the tax on consumption in the year 18S6 are shown by the following figures, obtained from the Imperial and royal central revenue bureau of Bohemia: rjorios. Wine and cider 46,383 Beer 9,273,039 Spirituous liquors and pressed yeast ■. 2,676,448 Beet-root sugar ^, 29,253,536 Meat 677,418 Mineral oil 1,127 Rent 956,574 Total 42,885,125 Returned taxes 1,226,892 Incidental expenses 3,563 1,230,455 41„654,670 The average amount of the tax on consumption for each inhabitant was 7 50 florins. II. License. — Since October 1, 1881, there is a license imposed — (1) Upon the sale of ardeut liquors by the glass, in dram-shops, which is paid half yearly in advance. It is a very moderate license and graded according to population, as shown by the following scale: In places with — Florins. Less than 500 people 5 Less than 500 to 2, 000 people 10 Less than 2,000 to 10,000 people 20 Less than 10,000 to 20,000 people 30 Less than 20,000 to 100,000 people 45 In Prague 59 (2) Retail dealers in spirituous liquors sold in quantities of at least one-eighth liter, not to be drunk on the premises, pay two-fifths of the above license rates; dealers selling in closed vessels or bottles, in quan- tities of 1 liter or less, pay one-fourth of the above rates. (3) Keepers of hotels, inns, boarding-houses, coffee-houses, and the like, selling liquors by the glass or in bottles of not over 1 liter, pay one-fifth of the above rates, provided that the amount of this license must not exceed one-fifth of their tax on business : Florins. License collected in 1886 344,286 Expenses 4' 997 Net amount of license in 188G 339 289 AUSIKIA-MUNGARY. 287 III. Imposts and dues, to wliicli are subject sales and conveyances of property, records and judgments, notarial acts, appointments to certain offices and benefits, commissions of lawyers, notaries, agents, brokers, entails, liens and privileges, deposit^: Florins. Amount collected in 1886 8,254,652 Expenses 225,189 Net surplus 8,029,463 IV. Stamp taxes. — Subject to the stamp tax are play cards, almanacs, newspapers (one kreuzer per copy), bills of exchange, checks, accounts and receipts, bills of lading, promissory notes, business books, etc. : Florins. Amount collected in 1686 4,835,726 Expenses 67,512 Net surplus 4,768,214 V. Tobacco monopoly. — A. considerable amount of indirect taxes is raised by means of monopolies, of which the leading one is tobacco: Florins. Receipts from sale of tobacco in 1886 20,670,085 Expenses 305,033 Net receipts 20,365,052 The consumption of tobacco in Bohemia was equal to 3.60 florins per head of the population, and the gross receipts were about 28 per cent, of those of the whole Empire. The manufacturing expenses, according to the estimates of the general revenue law, make 32 per cent, of those of the gross receipts. VI. Duties on imports in 1886 showed the following figures : Florins. Amount received 10,234,356 Expenditure : Drawback of tax on liquors 402,999 Drawback of tax on beer 172, 665 Drawback of tax on sugar 6, 622, 666 Total of drawback 7,288,330 Amount of duty returned 132,848 Security returned 52,395 7,47^,573 Clear surplus of receipts 2, 760, 783 VII. Tolls on roads, bridges, and rivers showed in 1886 the following figures : Florins. Receipts 606,902 Expenses 980 Not receipts 605,922 RecapUxtlation of indirect taxes raised in Bohemia in the year 1886 for the Imperial Aus- trian treasury. Gross. Net. Tax on consumption - License - Imposlsantl dues Stamp taxes ■ Tobacco monopoly ... Duties on imports — Tolls Florins. 4--', 885, 125 344, 286 8, 254, 052 4, 8J5, 726 20, 670, 085 10, 234, 356 606, 903 Florins. 41, 054, 670 339, 289 8, 029, 463 4, 768, 214 20, 365, 052 2, 760, 783 6y5, 922 Total I 87,831,132 78, 623, 393 288 REPORTS ON TAXATION. The amount raised from indirect sources is about 15.S0 florins per head of the population, and the proportion between direct and indirect taxes is shown by the following figures : Direct taxes in 1886 24.80 Indirect taxes in 1886 75.20 100. Ol> Such is the exhibit made by the. central revenue bureau, which at the same time gives the aggregate cost of all the imperial revenue bu- reaus in Bohemia at 1,057,549 florins. But the amount of indirect taxation is somewhat overstated, as it in- cludes the entire receipts from the tobacco monopoly. Estimating the expenses of production at 32 per cent, of the gross receijjts, as stated above, the actual amount of the tax on tobacco would be a little over 14,000,000 florins. On the other hand, the above expos6 does not include the salt monop- oly and the receipts of the State lottery. The sale of salt being free it is impossible to ascertain the quantity consumed in Bohemia and the receipts therefrom, but it niay be roughly estimated at 25 per cent, of the consumption in the whole empire. The entire receipts were in round numbers 20,000,000 florins, the ex- penses of production 2,600,000 florins, hence the gross receipts in Bo- hemia about 5,000,000 florins. The receipts of the State lottery in the whole empire were in 1886 about 20,000,000 florins, to which Bohemia contributed 20 per cent., or about 4,000,000. Provincial and local taxation is based mainly upon the direct imperial or national taxation. The revenue necessary for provincial and district purposes is raised by an addition to the direct taxes levied for the im- perial treasury. In 1886 this taxation showed the following actual re- sults : (1) Addition of 35 per cent, for provincial purposes, 9,725,547 florins. (2) Addition for district purposes of various percentage in different districts, 3,265,470 florins. (3) Addition for school purposes, also varying in percentage, 2,337,329 florins. Total (an addition of 59.20 per cent.), 15,328,352 florins. The local taxes are raised by similar additions to the direct imperial taxes ; further, when authorized by special permissiim of the provincial authorities, by taxing the sale of alcoholic beverages, and the consump- tion of different other articles. The total amount of such local taxation is somewhat difiScult to ascertain, but it may be ai^proxiniately stated for the year 1886 at the following figures : Florins. City and town additions 5,800,000 Local school additions ■ 2,000,000 Local excise 2,000,000 Total 9,800,000 The provincial and local taxation is consequently about eqaal in amount to the direct taxes raised for the imperial treasury. The total amount of all taxes levied in Bohemia in the year 1886 reaches the figure 130,000,000 florins, or about 23.25 florins per capita. REVENUE AND EXPENSE ACOOtJNT OF THE CITY OP PRAGUE. The city of Prague, as a municipality, has a population of 180,000 with the suburbs, whicili still maintain their municipal independence the population of the Bob emiau capital reaches the figure of 300,000 AUSTKIA-HUNGAEY. 289 The police district of Prague iucludes all the suburbs, and the police departtneat is a State iustituti'ou, for the maiuteuance of which the city coutributes a fixed amount. The following tables show the expense and revenue account of Prague according to the estimates of the year 1887 : Table showing expepMs and income of the city of Prague. Morins. 498, 285 73, 827 44,359 3,751 220, 146 187,445 60, 574 Ordinary expenses. Administrative expenses Pensions Taxes iiud (Uies Uues for ecclesiastical fuuctioua Schools and educational institutions, ex- cept common schools Bi*nevolen t iustit utions Sanitary department Public safety: Contribution to police fund. 51, 630 City jail 20,432 Fire department 52,780 143, 299 Cleaning of sewers and streets 255, 575 Lijihlins of streets and public buildings 58, 122 Maintenance of sewers and streets 37, 698 Maintenance of water- works, etc 100,593 Maintenance of bridges and public realties 77,303 Maintenance of public parka 41,691 Interest on city debt 600,969 Quartering of troops 31, 285 Sundries 24,160 Total ordinary expenses 2, 449, 081 Extraordinary expenses. New buildings and laying out new parks 41, 415 Establishing new communications 103, 685 Sundry expenses 215, 294 Sinking fund 127,768 Total extraordinary expenses. - Expenses of the estate of Lieben 488, 160 9,401 Ordinary ijicome. Florins. Proceeds from the city realties 469, 626 From indirect city taxes and dues . City charges or fees Water tax Interest from capital and shares ... Tuition, except common schools ... Permanent quartering of soldiers . Compensations Income of local police fund Sundry receipts 597, ^80 8,300 150, 000 22, 517 27, 787 26, 403 67, 678 12,305 83, 538 Total ordinary income 1, 465,034 Extraordinary income. Receipts for sold realties 472,994 Sundry receipts 5,830 Total extraordinary income 478,824 Income fron* the estate of Lieben 10, 590 Total income 1,951,448 Total expenditure 2, 946, 642 Balance. Total expenditure 2,946,642 Total Income 1,954,448 992, 104 Deficit ., Accumulated deticit of the years 1884- 1 886 from extraordinary causes 299, 075 Total deficit 1,291,209 To cover the deficit the following local taxes are levied : Florins. 1. Additions to the direct taxes — 15 percent, to the house-rent tax (2,521,157 florins) 378,174 It) per cent, to the tax on btisiuess exceeding 8 florins 40 kreutzer (319,720 fl..riii8).... ' 51,156 25 per cent, to the income tax (1,595,992 florins) 398,998 2. Special tax on rent — 3 per cent, on rents of 100 to 300 florins (2,928,633) 87,859 5 per cent, on rents over 300 florins (7,251,530 florins) 362, 577 Total from additions to direct taxes, leaving 12,505 florins to 1)6 covered by savings - 1,278,764 Nature of the indirect taxes and dues. — The most important items of this class of the city's revenue are the local additions to the excise or tax on consumption, the yield of which amounts to 448,674 florins, and the gate or pavement toll 75,000 florins. The city of Prague has entered into an agreement with the general Government, taking upon itself the collection of the excise, the road- toll and the river-toll, and paying a fixed amount into the Government treasury. This agreement is renewed every three years. The estimate for the i)reseut year shows the following figures : Ex- cise or tax on consumption, l,418,C-74 florins; road-toll, 70,000 florins; river-toll, .50,000 florins, Florins. Lighting ,-.-- 1,049 Heating 1,804 Sundries 10,984 Total 171,717 290 KEPOETS ON TAXATION. Of the excise the city pays over to the Government 970,000 florins, leaving the amount stated above for the city treasury. The other two items go to the Government treasury in full. Cost of collection. — The subjoined table shows the actual expense of the collection of the above-mentioned indirect taxes in the city of Prague : Florins. 1. Salaries of officers 63,843 Allowance for rent 8, 9UG Daily wages of men employed 70, 662 Expense of toll-gathering 7, 685 2. Office rent 5,622 Printing expenses. 1, 162 The whole amount collected was in round figures 1,600,000 florins; consequently the cost of collection equals about 10.73 per cent, of the collected amount ; hence the collection of the said indirect taxes appears to be comparatively very expensive. Mode of collection. — The excise or tax on consumption is collected ac- cording to the scale or taritt' either at; the place of the manufactures of such articles as are subject to it, or at the offices established on the city limits. Only the collection of the tax on the city limits is done under the above-mentioned agreement by the city authorities, whereas the tax on the manufacture inside the city limits is collected by the Govern- ment revenue officers. On the spirits brought to Prague only the city tax is levied, the Government tax being paid at the placeof their manu- facture. According to the principle underlying the taxation of consumption only, the articles consumed in Prague are subject to the tax, hence there is a drawback paid equal to the full amount of the tax on such of the taxed articles of consumption as are carried out of Prague. The appli- cation of this principle, however, is limited to beer, flour, bran, and spirits. Articles in transit through Prague are of course entitled to- the same restitution of the tax. Of road toll there is collected from every head of harnessed draft animals entering the city i kreutzers, and from every head of driven animals 1 kreuzer or | kreuzer, according to weight. The gate toll or pavement tax is levied to the amount of 10 kreutzers on every head of draft animals entering the city and hauling a load over 300 kilograms. The taxes collected at the city limits are daily turned over to the cen- tral revenue bureau. The amounts raised within the city are adjusted monthly between the Go\'ernment and the citj'' revenue bureau, when the monthly install- ment of rent is paid. At every revenue office special rolls are kept for each of the said taxes, in which the amount of the tax is entered, and a corresponding card handed to the taxpayer, who must pay the tax to the receiver. Tlie taxable article is then inspected, and in case of fraud a penalty equal to five times the amount of the tax is imposed. The control of the rolls and receipts is carried on at the central revenue bureau. The scale or tariff enumerates hundreds of articles of common con- sumption, classified under iifty different heads, which are subject to the tax in the city of Prague. It includes all kinds and grades of liquors, beer, wine, cider, mead, vinegar, cattle, and all beasts for slaughter, fresh and salted meats, smoked meats and sausages, ham baked in bread, poultry, wild birds, game, fish (fresh and salt, and prepared in boxes), shell-fish, rice, flour, and meal, and all products of flouring' mills, bread and all breadstufl's, and grain, hay, bran, and all kinds of feed, straw, long or chopped ; vegetables and kitchen stuff, fruit of BELGIUM. 291 all kinds, fresh, dry, or preserved; butter iu every shape and all kinds of lard and fat; clieese, eggs, soap, wax, and articles made therefrom; every description of oil; fuel of every kind. At the head of this revenue department there is a so-called adminis- trator, elected bj' the board of aldermen, who draws no salary for his services. At the central office there are employed the following officers: One treasurer and book-keeper, 1 chief reviser, 4 revisers, 1 assistant, 3 messengers. For special supervision of the service: One chief inspector, 1 comp- troller of tolls, and 2 inspectors of the force. The revenue service on the city limits requires a force of 59 officers, 29 superiors inspectors, 109 inspectors, and 13 tollmen. The general revenue department of Prague. — The revenue department of the city collects all the imperial direct taxes, as well as the provin- cial, local, and school additions. The amount thus collected in 1886 was 7,153,771 florins. The cost of this department in the same year was as follows: The revenue officers proper, 36,158 iioriiis 30 kreutzers; the controlling and reporting officers, 23,148 florins 93 kreutzers; spe- cial charges for collecting delinquent taxes, 4,796 florins ; iu all, florins 64,103.23. Hence the expense of collection of this class of taxes was not quite 9 per cent, of the amount collected. Burden of taxation. — The tax on consumption weighs heavily on the poorer classes of the city's population. Being, levied on nearly all arti- cles of common consumption and on the necessaries of life, it imcreases the cost of living, which increase, even though it may be small in its general percentage, is felt especially by the working classes in a com- munity where wages are low, and common labor is paid only from 60 kreutzers to 1 florin (about 25 to 39 cents) a day. Buildings tor dwelling purposes or tenements are heavily loaded with taxation. In the year 1886 there was raised the amount of 3,631,- 252 florins 564- kreutzers as house-rent tax, including the provincial, local, and school additions, besides the special rent tax of 445,695 florins 13J kreutzers ; in all, a tax of 4,076,947 florins 70 kreutzers on tenement buildings. The whole income from the rent of such buildings having been 10,180,163 florins, the tax actually exceeded the proportion of 40 per cent, of the income. This enormous taxation is the principal reason why the suburbs of Prague do not desire to unite with the capi- tal into one municipal body, their burdens in this regard being percepti- bly lighter. Charles Jonas, United States Consulate, Consul. Prague, September 16, 1887. BELGIUM. REPORT OF CONSVL STEUABT. Eeliable statistical details upon any subject it is almost impossible to obtain in this country, hence any statement given must be considered as approximative and not as positively correct. There is no publication giving the manner, rate, anil amount of tax- ation, and all inquiries are met with the reply that the system of busi- ness taxation is too varied, complicated, and voluminous to be explained 138— No. 99 3 292 EEPOETS ON TAXATION. in any communication that could be made, and this indeed seems to be the fact. All taxation upon property is levied upon the estimated revenue therefrom as assessed by the authorities, and it must be remembered that this assessment is, in all cases, made very low indeed, say proba- bly one-third of the revenue that is or could be derived from the prop- erty so taxed, hence the burden of taxation is not heavy. STATE, PROTINCIAL, AND MUNIOIPAX, TAX UPON PROPERTY. This tax amounts to 11.13 per cent, upon the revenue value of the property as assessed by the authorities. The basis of this tax is a tax of 7 per cent, levied by the state; upon this the province collects 11 per cent, or 77 centimes, and the city an additional 48 per cent, or 3.36 francs, making the total of 11.13 percent. Should the property be unimproved or uncultivated, so as to be un- productive, the assessment is estimated as if it were cultivated to the best advantage. MUNICIPAL TAX UPON SEWERS AND PAVEMENTS. The payment of this tax is required but once, and not yearly, even not again when repairs become necessary and are made. In 1852 the rate was fixed at 12 francs per running meter for all ex- penses connected with the building of a sewer, and was collected upon the buildings immediately, while the owners of unimproved property paid only when they erected buildings thereon, also a tax of 8 francs per meter was collected from buildings upon new pavements, or 5 francs upon old ones, owners of unimproved property paying 2 francs at the time and the balance when buildings were erected. This law is still in force regarding the property covered by it at that time. In 1874 the law was changed as follows: For the expense of sewers 12 francs per running meter is collected from the proprietors of improved and unimproved property, and for pavements 10 francs is collected upon the same measurement. In the laying out of new streets the owners of the property fronting on said streets will be required to bear all the expenses, each in propor- tion to the number of running meters along the front of his property. The amount due per meter is found in dividing the cost of the work by double the length of the street, thus covering both sides. Every six months a map is drawn up for the purpose of showing what new buildings have been erected since the last verification. TAXES UPON THE ASSESSED INCOME PROM BUILDINGS, UPON FURNI- TURE, AND UPON DOORS AND WINDOWS. A municipal tax is levied for the purpose of meeting the expense in- curred by the city in providing the tire brigade, the police service, and for cleaning the streets and public squares. It is fixed at the following rates : Buildings the revenue of whioli is assessed at: Per cent. 1,000 francs or less 5 1,001-1,500 francs 6 1,501-2,000 francs 7 2,001-3,000 francs 8 3,001-4,000 francs 9 4,000 francs and over 10 BELGIUM. . 293 There is also levied by the State a tax of 5 per cent, upon the assessed revenue of buildings, and of 1 per cent, upon the assessed value of the furniture, also a tax of 2.28 francs for each door or window on the ground floor and first two stories. Those in other stories pay 1.10 francs per year. Upon the amount thus collected by the State tlie province levies a tax of 11 per cent, and the city 48 per cent. The assessment upon furniture as well as upon property is so very low that generally the owners prefer to leave the estimation of its value to the authorities to handing in a declaration of their own, TAXES UPON HORSES, CAEKIAaES, AND SERVANTS. The State collects upoa every horse employed for all purposes a tax of 20 francs per year, upon horses kept for pleasure a tax of 50 francs for one horse, for two horses 60 francs each, for three to five horses 70 francs each, and more than five horses 80 francs for each horse. If one servant is employed 10 francs is paid, if two 25 francs for each. In addition to the above the city collects upon every horse employed for all purposes 20 francs per year, upon horses kept for pleasure a tax of 40 francs for one horse or more, upon a carriage for one horse 35 francs, for two or more carriages for one horse 70 francs, for a carriage for two horses 100 francs, and 150 francs for any number of carriages for one or two horses. Upon every male servant a tax of 20 francs is collected. The amount expected to be derived from this source for Antwerp, in 1887, according to the budget of the city, is 62,000 francs. TAX UPON DOGS. The city collects a tax of 5 francs per year upon every dog without distinction of race, and the province, in addition, collects 30 francs upon every bull-dog or greyhound, 15 francs upon a hunting dog, and 4 francs upon every dog of any other kind. Exempt from taxation are dogs conducting a blind person and those serving to cripples and invalids, the number being limited to two dogs for each person. The amount the city expects to collect from this source, in 1887, is 25,000 francs. TAX FOR ATTENDING THE BUSINESS EXCHANGE OF ANTWERP. This tax is a city tax and iixed by a special board of commissioners, and is based upon the presumed importance of the business transacted by each person or firm and ranges from 5 to 100 francs per year. If two or more members of a firm attend the exchange each member is required . to pay the assessment. Also, 5 francs are collected for every clerk attend- ing for his employers, 5 francs for every chief of the association of team- sters, 5 francs for every boatman, and 15 francs for every person who is engaged in no particular business. Persons not subscribers pay 1 franc for each entrance. Each subscriber receives a card, which must be shown to the door- keeper when demanded. The above rates take efifect only from 1 to 2 p. m. each week day, the hour fixed for the business of the exchange. At all other times the building is open to the public. The proceeds of this tax for the year 1887 are estimated at 68,000 francs. 294 EEPORTS ON TAXATION. MUNICIPAL TAX UPON STREET TENDERS. The municipality collects from every street vender a tax of 10 centimes per square meter, a man's load being counted one square meter; a wheel- barrow, 1^ meters; a hand-cart, 2 meters; a cart drawn by one or more dogs, 3 meters; and a cart drawn by an ass or a horse, 4 square meters; The street venders are required to present themselves every morning at the police station of their section and pay the necessary tax, receiv- ing in return a ticket, giving their name and the date for which it is issued, and which they are bound to exhibit upon the demand of any police official. The street venders are also obliged to wear upon their coat-sleeve a brass plate, giving their name, address, and the number under which they are registered at the police station of their district. Every month the commissioners of all the police stations render an account of the amounts received from the above source and turn the same over into the city treasury. As the chief commissioner receives a determined number of blank tickets at the commencement of the year, the receipts are easily con- trolled. MUNICIPAL TAX ON SPACE IN THE PUBLIC MARKETS. The right to all the space in the public markets- during certain fixed hours is given each year by the municipal authorities to the highest bidder, at present for 31,900 francs per annum. The contractor is required to pay, monthly in advance, while he, with his employes, collects the charges which have been fixed in a tariff issued by the city from the people occupying the space. The rates as given in the tariff are as follows : (a) For all persons exhibiting for sale poultry, pigeons, rabbits, game, eggs, butter, cheese, and meat contained in baskets, each basket 10 centimes. (6) Apples, potatoes, and other articles of the kind contained in bags, pay for each bag 10 centimes. (c) Wood used for fuel pays per bag 4 centimes. {d) Each hand cart load of miscellanous objects pays 10 centimes. (e) Each wheel barrow-load of miscellaneous objects pays 10 centimes. Other articles than those enumerated above in block, in basket, or on stands pay 10 centimes per square meter. Tissues, porcelain, crockery, mercery, and other articles of the kind pay 10 centimes per running meter of space occupied. On the cattle market the charges are for space 2 meters in length and 1 meter in width, 16 centimes; for space 1 meter in length and one-half .meter in width, 8 centimes, and for space of one-half meter to one-fourth meter the charge is 4 centimes. In case the space freed through sales is again occupied by other goods the charges are collected anew in the same proportion. MUNICIPAL TAX UPON THE PLACES ALLOTTED IN THE STREETS AND PUBLIC SQUARES FOR CAB STANDS. This tax varies from 10 to 150 francs for a place according to location. MUNICIPAL PUBLIC SLAUGHTER-HOUSE TAXES. The city collects upon the animals killed at the public slaughter-house for the purpose of consumption the following taxes : Upon each horse, 3 francs ; ox or steer, 4 francs ; cow, heifer, or bullock, 3 francs ; calf, 2 KETtrruM. 295 fraucs; sheep, lamb, or goat, 50 centimes; hog, 2 francs; suckiugpig, 20 centimes. Independently of the above taxes the city has prescribed fixed rates for the weighing of the animals, but the butchers are not obliged to weigh them, and only in case they make use of the scales they are charged for each horse, bullock, ox, steer, calf, heifer, cow, or hog, 50 centimes, and for each sheep, lamb, goat, or sucking-pig, 25 centimes. When cattle or other animals are exposed for sale, in the slaughter- house market, the owners are required to pay the same space taxes which are prescribed for the public markets of the city. The owners of animals that are not sold, and are stabled in the slaughter-house until the next market, and animals not to be killed im- mediately,are charged at the following rates forfeeding: Bach ox, steer, cow, heifer, or bullock, 10 centimes per diem ; each calf or hog, 5 cen- times, and each sheep or goat, 2 centimes per diem. It is estimated that the contribution the city derives from this source will attain 105,000 francs in 1887. MUNICIPAL TAX UPON THE FISH SOLD AT AUCTION IN THE PUBLIC FISH MARKET. This tax has been established by the city for the purpose of remuner- ating the services of the employes of the market. It amounts to 6 J per cent, of all the wholesale sales, and is divided as follows : Two and one- half per cent, goes to the directors, one-half per cent, to the deputy col- lector, one-half per cent, to the controller, one-half per cent, to the two callers, one-half per cent, to the three experts ; 2 per cent, is equally divided among the nine workmen that are required. MUNICIPAL TAX UPON PLACES OP PUBLIC ENTERTAINMENTS. This tax has been fixed at 5 per cent, on the gross receipts of each rep- resentation, and was created with a view to aid the poor, but is now entirely reserved to the city. It being very difQcult to control the receipts for each representation at the many places of public amusement, the regulations authoriae the city authorities to release some of the establishments from paying the 5 per cent, each time, on condition that a certain sum is paid, and annually in advance, as an equivalent. This measure is materially advantageous to the tax-payer, but it also greatly facilitates the collection of contribu- tion and avoids the appointment of controllers. THE LICENSE LAW. The state collects a license from the inhabitants carrying on a busi- ness or exercising any sort of trade or profession in Belgium. In 1791 a law was passed giving everybody the liberty to carry on business, and to practice or pursue a profession, on condition that a certain tax was paid to the state for such liberty. Exempt from this taxation are all Government officials and their em- ployes, also a number of small industries, lawyers, the owners or man- agers of quarries, coal-pits, and other mines, who sell the raw product they extract, journeymen tradesmen working with their masters, street- porters, and others. The different occupations upon which a license is required to be paid are enumerated in fifteen schedules, and the amount collected is based 296 REPORTS ON TAXATION. upon the assessed or estimated commercial or industrial profits of the respective parties. The license upon the callings described in each schedule is again regulated by two tariffs. One, instituted in 1819, but reduced for nearly- all the schedules in 1819, is the same for all the communities without distinction as to the population of the places or cities where the busi- ness is established. It is again divided into seventeen classes ; the first or highest license under the tariff of 1819 is 572.40 francs, and the seven- teenth or lowest is 2.65 francs. In the tariff of 1849 the first or highest license is 401 francs, and the seventeenth or lowest, 1.70 francs. The other tariff is divided into fourteen classes, and each class has its fixed rates for each community according to its population. For communities of 60,000 inhabitants and more, the first class pays 423 francs, and the fourteenth 3.40 francs; for communities from 30,000 to 60,000 the first class is 370 francs, and the last 3.18 francs ; for those of 20,000 to 30,000, the highest is 280 francs, and the last 2.55 francs ; for those from 16,000 to 20,000, the highest is 194 francs and the lowest 1.70 francs ; for those from 10,000 to 15,000, the highest is 142 francs and the lowest 1.38 francs ; for those of less than 10,000 inhabitants, the first class pays 111 francs and the fourteenth 1.06 francs. This last-named tariff is generally applied where the commercial or industrial profits largely depend upon the population of the towns in which the tax-payers are established. Schedule ¥o. 1 contains the manufacturers, and the amount of the license is established according to the number of workmen employed. It is divided into two sections. The first section ranges from 9 francs to 401 francs per year, the low- est is paid by those working alone and the highest amount is paid by those employing 300 workmen or more. The manufacturers belonging to the second section pay from 2.76 francs to 401 francs per year. The lowest tax is applied to persons working alone or only assisted by their wives or children; 401 francs is collected when 500 or more workmen are employed. Schedule JVo. 2 comprises the distillers, brewers, and manufacturers of vinegar, and the amount of the license payable is in accordance with the quantity of raw material employed the year preceding. The manufacturers of brandy and gin are ranged in the fourteen first classes of the tariff of 1849, and pay from 9 francs to 401 francs. Those having employed less than 1,000 hectoliters being taxed the smallest amount, and those having used 55,000 hectoliters and more the highest. The same classes of the same tariff' are applied to the brewers and the manufacturers of beer-vinegar, those having consumed less than 250 hectoliters of raw material the year preceding paying 9 francs, and those having consumed 14,000 hectoliters or more 401 francs. The manufacturers of vinegar of currants, apples, etc., are ranged from the sixth to the thirteenth class of the same tariff, and the amount of the license is fixed according to the number of mash-tubs they have in use, those that have only 1 in use paying 13 francs, and those that have 15 or more 122 francs. Schedule No. 3 contains the flour-mills and all mills where oats, barley, and buckwheat is ground. The license is from 2 to 4 per cent, upon the assessed rent value of the buildings and dependencies. In no case less than 7.42 francs is to be collected. Schedule JVb. 4 applies to all the mills other than those described in the foregoing paragraph, and the amount of the license fixed thereon ^:^„.J M. 297 depends upon the importance and the estimated profits of the business The lowest tax is 6.30 francs, and the highest 122 francs. Schedule No. 5 comprises the factories the importance of which can not be estimated by the number of workmen employed, such as blast- farnaces, wire-forges, foundries, and others. The license is fixed according to the extent and the presumed profits of the business, the lowest being 1.70 francs and the highest 278 francs. Schedule No. 6 comprises the owners of retail shops, and all the seventeen classes of the tariff of 1849 are applied. A retailer whose sales have not exceeded 2,120 francs during the year preceding pays the lowest, 1.70 francs, while the highest license, 401 francs, is collected . when the sales aggregated or exceeded 265,000 francs during the year preceding. Schedtde No. 7 refers to the license paid by street venders, and the amount paid is regulated by the tariff of 1819. This paragraph is subdivided into three sections, viz : 1. The street venders that offer their merchandise for sale at every door, and paying, according to the nature of their goods and the im- portance of their business, from 2.65 francs to 175.96 francs. 2. Peddlers visiting the markets for the purpose of exposing their goods for sale pay from 2.65 francs to 97.52 francs, according to the importance of their business and the manner in which their goods are exposed for sale. 3. Peddlers who offer and expose their merchandise for sale in inns, caf§S, etc., pay from 27.56 francs to 572.40 francs, according to the im- portance of their business and the kind of goods offered for sale. These last mentioned are required to pay a new license for every community where their goods are exposed for sale. Schedule No. 8 contains the ambulant knife and scissor grinders and smelters. They pay from 11.66 francs to 53 francs, according to the importance of their business. Schedule No. 9 relates to joint-stock companies and Belgian and for- eign insurance companies. The license thereon amounts to 2 per cent, of the profits during the year preceding. Considered as profit is the interest of the capital invested, the divi- dends, as also the sums affected to the increase of the social capital or to the reserve fund. Schedule No. 10 concerns the directors of administrations, negotiating loans, etc. These are all government ofiicials in Belgium at present, and therefore there is no occasion to apply the license prescribed in 1823. Schedule No. 11 includes the administrators, superintendents and in- spectors, business agents, and office clerks. The seventeen classes of the tariff of 1849 are applicable to this branch of tax-payers, and the amount of the license depends upon the wages or salaries drawn the preceding year, the lowest license payable being 1.70 francs for salaries under 636 francs per year, and the highest 401 francs for salaries of 33,920 francs and more. Schedule No. 12 comprises the artisans and mechanics, such as black- smiths, locksmiths, paper-hangers, shoemakers, and others. It is again subdivided into two sections, and the amount of the license is fixed according to the number of workmen employed and the popu- lation of the district where they are established. For the first section it varies from 6.30 francs to 185 francs in towns having more than 60,000 inhabitants, and from 1.70 francs to 51 francs 298 REPORTS ON TAXATION. in towns and villages of less than 10,000 inhabitants. The highest license is collected when fifty workmen and more are employed. For the second section the license varies from 3.40 francs to 138 francs in towns of 60,000 inhabitants and over, and from 1.06 francs to 48 francs in towns and villages counting a population of less than 10,000 souls. The lowest license is collected when one workman is employed, and the highest where seventy or more are employed. Those that work alone or with the assistance of their wives and children only are exempted from the license tax. Schedule JVb. 13 relates to hotel-keepers, owners of bathing establish- ments, and billiard saloons. The amount of the license for hotel and innkeepers is fixed accord- ing to the number of rooms their building contains, and according to the population of the district in which they are established. In towns of 60,000 and more inhabitants the lowest, 5.30 francs, is collected when there are less than 3 rooms, and the highest, 323 francs, when there are 50 rooms and more. For the owners of boarding-houses the license is fixed upon the same basis, and the amount varies from 10.60 francs to 185 francs in the communities where the population is 60,000 or more, and from 4.24 to 61 francs in the communities where the population is less than 10,000. The lowest license is collected when there are less than 10 rooms, and the highest when there are 50 rooms or more. The owners of bathing establishments pay upon every bath van in use from 3.40 francs to 5.30 francs in towns of C0,000 inhabitants and more, and from 1.06 francs to 1.70 francs in those of 10,000 or less in- habitants. The owners of billiard saloons pay upon every table they have in use in communities of 60,000 inhabitants and more from 20 to 100 francs, and in communities of 10,000 or less 7 to 29 francs for each table. For the privilege of keeping a j)lace where the game of cricket is played a license of from 3.40 francs to 73 francs is paid, the amount depending upon the appearance of the place and the population of the district where it is situated. In the same way a license of from 3.40 francs to 10.60 francs is paid upon the game of skittles in public houses. Schedule N'o. 14 relates to merchants, ship-owners, brokers, physicians, bakers, cabaret and saloon keepers. The amount of the license varies from 1.06 francs to 423 francs, ac- cording to the presumed income of the iposition or business and the population of the town where it is situated. Schedule No. 15 comprises the directors or managers of theaters and places of amusement. When the representations take place in buildings expressly built for such purpose, and known under the name of theater or concert saloon, the license is calculated at 1 per cent, of the gross receipts of each representation. When the audience is principally composed of subscribers or abounds, the license is one-third less. The amount of the license for the entire year is not to exceed the product of any one representation. The representations, concerts, balls, etc, given in places not specially adapted for such purpose, are licensed according to the population of the town where they take place, and the number of seats the audience hall contains, as also the entrance fee paid. BJLLUUM. 299 Besides the liceuses paid upon the above described braucbes of busi- uess and trade a license is collected from the owners of sliii)S or boats, amounting to 12 centimes per ton for ships trading in the interior by canal or river, and of 4 centimes per ton for each voyage out and back upon ships doing an export and import business, but the tax is not to he collected more than three tim'es in any one year for the last named. Ferries and boats used for crossing rivers or canals pay one-half per cent, of the price which is paid yearly for the privilege of running them. Upon every license of 20 francs and over collected by the State the city collects an additional 48 per cent., so that a person being taxed 20 francs, according to the tariffs or laws explained above, would have to pay 9.60 francs besides to the city. The tax-payers are classed according to their declaration by the board of assessors of taxes established in each community. The members are appointed each year by a commission composed of two delegates of the respective communities and two delegates from the chief tax oflice at Brussels. Although in some instances the rate of taxation may seem high, yet it is levied upon assessments madie so very low that the amount of tax paid is really small. For instance, the range of taxation for attending the bourse is from 5 to 100 francs, but I can find no one paying more than 50 francs, and I believe that is the maximum collected. So with the tax levied upon the income of buildings, a house renting for 4,000 to 5,000 francs is assessed as producing a revenue of 800 to 1,000 francs, and with furniture no regard seems to be paid to its value. Where the value is from 75,000 to 100,000 francs the 1 per cent, will be assessed upon only from 3,000 to 5,000 francs, demanding a payment of from 30 to 50 francs. If the city is content, surely the owner is, under the cir- cumstances, as the assessment seems to remain the same, no matter how the value of the furniture may increase from year to year. John H. Steuaet, Consul. United States Consulate, Antwerp, June 27, 1887. REPORT OF CONSUL SLADE. DIRECT TAXES LEVIED BY THE GENEBAL GOVERNMENT. REAL-ESTATE TAX. The impot fonder, or real-estate tax, is the principal direct tax of Bel- gium. This tax is levied on all lands or buildings m equal proportion to the net taxable revenue derived therefrom. The net taxable revenue for land is the sum which remains to the proprietor after deducting from the gross rental the expenses for cultivation, seeds, harvesting, and other necessary expenses. The net taxable revenue for dwelling-houses, other buildings, factories, and shops, is the amount remaining to the proprietor after deducting from the average annual rental the amount necessary for repairs, and a reasonable sum for the depreciation of the house, building, factory, or shop. The amount thus deducted from the average annual rental for houses and other buildings is one-fourth, and for factories and shops one-third of the rental. 300 REPORTS ON TAXATION. Before 1867 the real-estate tax was a tax of repartition. The legisla- ture established every year the gross amount of the tax for the King- dom, and this amount was then divided, in proportion to the value of real estate, amongst the provinces. But since 1868 this tax, levied for purposes of the general Government, is 7 per cent, of the taxable reve- nue ; hence the total amount of real-estate tax collected every year in- creases or decreases with the fluctuation of rents of real estate. This tax amounted in 1831 to 17,032,000 francs, and in 1835 to 18,214,332 trancs. In 1840, after the treaty with Holland annexing part of the Belgian territory, there remained in Belgium 874,998 real-estate owners with a net revenue of 148,211,580 francs, and paying a real-es- tate tax of 17,210,730 francs; in 1845 there were 914,559 real-estate owners with a taxable or net revenue of 157,386,694 francs, and paying a tax of 18,406,542 francs ; in 1850, 951,986 owners with a net revenue of 159,858,037 francs, paying a tax of 18,359,750 francs ; in 1855, 1,001,733 real-estate owners, having a net revenue of 162,594,711 francs, paid a tax of 18,886,292 francs ; in 1860, 1,050,733 proprietors, with a net revenue of 164,585,016 francs, paid a tax of 18,886,292 francs ; in 1867, 1,124,603 proprietors, with a net revenue of 168,986,297 francs, paid a tax of 18,886,292 francs ; in 1868, year in which the new law and the new eval- uations of revenue went into effect, there were 1,134,991 proprietors in the Kingdom with a net revenue of 283,745,905 francs, paying a tax of 18,909,284 francs ; in 1870, 1,120,161 proprietors, with a net revenue of 286,209,107 francs, paid a tax of 19,176,009 francs ; in 1875, 1,124,734 proprietors, whose net revenue was 298,630,870 francs, paid a tax of 20,904,115 francs ; in 1879, 1,171,334 proprietors, whose net revenue was 318,489,528 francs, paid a tax of 22,294,355 francs; in 1880, 1,153,588 proprietors, with a revenue of 322,805,424 francs, paid a tax of 22,592,380 francs. Hence it will be seen that from 1840 to 1880 the number of real- estate owners has increased from 874,998 to 1,153,588, an increase of 278,590, or nearly 33 per cent. The net taxable revenue, which in 1840 amounted to 148,211,580 francs, amounted in 1880 to 322,805,424 francs, an increase of over 117 per cent. The tax collected in 1840 amounted to 17,210,730 francs, and in 1880 to 22,592,380 francs, an increase of about 31 per cent. PERSONAL TAXES. The personal taxes of Belgium are based and levied on — (1) The rental value of the property occupied ; (2) the number of windows and doors; (3) the value of the furniture; (4) the number of servants, and (5) the number of horses. (1) Tax on the rental value of the property. — There is a tax of 5 per cent, on the gross annual rental of all houses and buildings in Belgium. This gross annual rental is calculated on the average annual rental re- ceived during the preceding ten years. Prom 1822 until 1879 this tax was but 4 per cent, of the gross annual rental, but since 1879 it was in- creased to 5 per cent. In 1840 there were in the Kingdom 350,446 of these tax-payers, with a rental value of 48,262,669 francs, and paying a tax of 1,930,515 francs. In 1850 there were 370,430 tax-payers, with a rental value of 53,318,683 francs, and paying a tax of 2,132,750 francs. In 1860 there were 397,526 tax-payers, with a rental value of 60,738,262 francs, and paying a taxof 2,429,531 francs. rsnijixiJM. 301 In 1870 there were 469,310 tax payers, with a rental value of 75,185,298 francs, and paying a tax of 3,007,412 francs. In 1875 there were 472,669 tjax-payers, with a rental value of 86,553,946 francs, and paying a tax of 3,462,158 francs. It will thus be seen that in thirty-five years the average annual rental value has increased from 48,262,669 to 86,553,946 francs, an increase of 38,291,277 francs, or nearly 80 per cent. The number of such tax payers has increased from 350,446 in 1840 to 518,716 in 1880, an increase of 168,310, or nearly 50 per cent. The aggregate amount of taxes received from this source in 1880 was 4,842,351 francs, or an increase as compared with 1840 of 2,911,836 francs, or more than 150 per cent. I will here mention that public officers occupying gratuitously in vir- tue of their offices buildings belonging to the government, province, or commune, are exempted from paying this tax. (2) Doors and windows. — The following tax is levied on windows and doors on the ground floor, and on the first and second stories : In a city of 5,000 inhabitants or less, 1 franc per window or door ; 5,000 to 10,000 inhabitants, 1.10 francs ; 10,000 to 25,000 inhabitants, 1.30 francs; 25,- 000 to 60,000 inhabitants, 1.80 francs; 50,000 inhabitants and over, 2.28 francs. Upon windows on higher stories and inhabited basements and cellars, in a commune of less than 5,000 inhabitants, 1 franc per window; over 5,000 inhabitants, 1.10 francs. The amount of this tax is constautly increasing. In 1840 there were 2,426,762 doors and windows taxed, producing a receipt of 2,717,147 francs; in 1850, 2,674,437 doors and windows, receipts, 2,975,968 francs; in 1860, 2,963,604 doors and windows, receipts, 3,296,556 francs; in 1870, 3,526,196 doors and windows, receipts, 3,937,759 francs; in 1875, 3,928,233 doors and windows, receipts, 4,374,766 francs. The aggregate receipts from this source, in 1880, amounted to 6,282,282 francs. It will thus be seen that from 1840 to 1875 the number of doors and windows taxed has increased 1,501,471, or nearly 62 per cent. During the period 1840 to 1880 the receipts increased from 2,717,147 to 5,282,- 282 francs, an increase of 2,565,135 francs, or over 90 per cent. (3) Tax on furniture. — There is a tax of 1 per cent, on the value of the furniture. By furniture is meant all things in a house or building for personal or domestic use. The only exceptions are clothing, tools, and implements used for a trade or profession, books, maps, paintings, physical, mathematical, and other scientific instruments, jewelry, etc. The tax-payer can himself state the value of his furniture, but the agents of the government can have the same valued by experts at his expense if the valuation given by him is adjudged too low. The total amount of this tax has increased but little since 1840. In 1840 the total amount collected was 1,337,970 francs. In 1850, 1,377,880 francs ; in 1860, 1,496,079 francs; in 1870, 1,701,486 francs; and in 1875, 1,870,809 francs, an increase during the thirty -five years, from 1840 to 1875, of 632,839 francs, or 40 per cent. (4) Tax on servants. — The following taxes are levied on servants in Belgium: For every male or female laborer, 8 francs; for one female house servant, 10 francs ; for each female house servant, if you have but two in your employ and no male servants, 20 francs ; for each female house servant, if you employ more than two and at the same time male servants, 25 francs; for each female house servant, if you employ three and no male servants, and if one of them is in charge of children, 20 francs ; or one male servant, 25 francs ; for every male servant if you employ 302 REPORTS ON TAXATION. from two to four, 30 francs ; for every male servaut if you employ more than four, 40 francs ; for every male servant wearing livery, a supple- mentary tax of 10 francs is charged. In 1840 there were in Belgium 47,248 taxed servants, paying a tax of 474,825 francs ; in 1850 there were 57,676 servants and the taxes paid amounted to 571,506 francs; in 1860, 66,222 servants ; tax received, 657,846 francs; in 1870, 71,308 servants; tax received, 713,114 francs; in 1875, 76,872 servants ; tax received, 769,708 francs ; in 1880 the receipts amounted to 809,075 francs. Hence it will be seen that from 1840 to 1876 the number of servants employed has increased 29,624, and the receipts have increased 334,250 francs, or more than 70 per cent. From 1875 to 1880 the receipts have increased 39,367 francs. (5) Tax on horses. — This tax varies, as will be seen below, according to the use made of the horse and the profession exercised by the owner or keeper. This tax is, for one horse kept for pleasure, 50 francs ; for each horse kept for pleasure, if you keep two, 60 francs ; for each horse kept for pleasure, if you keep from three to five, 70 francs; for each horse kept for pleasure, if you keep over five, 80 francs ; for every horse kept for labor, 20 francs ; for every horse kept by a livery-man, 10 francs ; tax for every horse breeder or horse merchant generally keeping not more than ten horses, 100 francs ; tax for every horse breeder or horse mer- chant keeping more than ten horses, 200 francs. Horses exclusively employed in agriculture, factories, and shops are exempt from taxation. The total amount of this tax collected amounted in 1840 to 315,681 francs ; in 1850 to 345,451 francs ; in 1860 to 418,249 francs ; in 1870 to 520,960 francs; in 1875 to 592,067 francs, and in 1880 to 502,053 francs. TAX ON MINES. i There is a fixed tax of 10 francs per square kilometer (| mile) of the surface of the mine, and 2J per cent, of the net profits, plus 25 per cent, of the two taxes together, additional. In 1840 these receipts amounted to 242,591 francs ; in 1850 to 177,023 francs ; in 1860 to 495,845 francs ; in 1867 to 846,357 francs ; in 1870 to 440,020 francs ; in 1874 to 3,086,719 francs ; in 1875 to 1,039,570 francs; in 1876 to 799,105 francs ; in 1877 to 485,985 francs ; in 1878 to 341,331 francs ; in 1879 to 305,159 francs ; and in 1880 to 286,112 francs. LICENSE TAX (DROITS DE PATENTE). The law of May 21, 1819, imposes a license tax on all those exercising a profession or trade. The following exemptions are made : Clergymen, ecclesiastics, marguilliers, or all other persons attached to the service of a church ; state, provincial, and municipal officers and employes ; at- torneys, doctors, physicians, surgeons, accoucheurs, and apothecaries, receiving a fixed salary and attached to the army, to military or civil hospitals, poor-houses, orphan asylums, or other houses of public char- ity, or treating poor at their homes ; painters, sculptors, and other art- ists if they only sell their own works, and if not working for a manu- factory, nor receiving a salary from their scholars for their lessons ; the cultivator who only sells the products of his OAvn farm or agricultural industry ; the gardener who does not sell the products of his garden at his house but on the streets and markets. For the establishment of this license tax there are two tariffs called BELGIUM. 303 " tariff A" and "tariff B." The first of these tariffs imposes the same license tax for all the communes; and the second, on the contrary, va- ries the tax according to the importance of the commune. Tariff A, applicable to all the communes, comprises seventeen classes, and the tax varies according to the classification of the profession or trade. Thus the. first class imposes a license duty of 401 francs ; the second class of 334 francs ; the third class of 278 francs ; the fourth class of 223 francs ; the seventh class of 89 francs ; the tenth class of 36 francs ; the fifteenth class of 9 francs ; and the seventeenth class of 1.70 francs. For the application of tariff B the law divides the communes in six grades. In the first grade are the communes having a population of 60,000 inhabitants and more ; in the second grade the communes of from 30,000 to 60,00J ; in the third grade the communes of from 20,000 to 30,000 ; in the fourth grade the communes of from 15,000 to 20,000; in the fifth grade the communes of from 10,000 to 15,000 ; in the sixth grade communes of less than 10,000 inhabitants. Tariff B, after dividing the communes into six grades, distributes the professions and trades amongst fourteen classes, according to the im- portance they occupy in commerce or industry. Thus a profession of the first class pays a license duty of 423, 370, 280, 194, 142, or 111 francs, according as it is exercised in a commune of the first, second, third, fourth, fifth, or sixth grade ; a profession of the second class pays a duty of 323, 285, 214, 149, 111, or 89 francs, ac- cording to the grade of the commune ; a profession of third class, 245, 214, 162, 114, 89 or 67 francs ; fourth class, 185, 160, 122, 87, 67, or 51 francs; fifth class, 138, 118, 91, 67, 51, or 40 francs ; sixth class, 100, 87, 67, 51, 38, or 29 francs ; seventh class, 73, 65, 51, 38, 27, or 20 francs ; eighth class, 51, 45, 38, 27, 20, or 14 francs ; ninth class, 38, 33, 27, 20, 13, or 10 francs ; tenth class, 27, 22, 20, 13, 9, or 8 francs ; eleventh class, 20, 16, 12, 9, 7, or 6 francs ; twelfth class, 10.60, 9.54, 8.48, 5.30, 4.23, or 3.40 francs.; thirteenth class, 5.30. 4.88, 3.82, 2.76, 2.12, or 1.70 francs; four- teenth class, 3.40, 3.18, 2.55, 1.70, 1.38, or 1.06 francs. The license tax for foreign commercial travelers in Belgium is 20 francs per year. There is a license tax of 12 centimes per ton an interior navigation. The receipts from the license tax have continually increased. In 1840 the total receipts amounted to 2,862,893 francs ; in 1845 to 2,854,955 francs ; in 1850 to 3,112, 264 francs ; in 1855 to 3,598,483 francs ; in 1860 to 3,872,248 francs ; in 1865 to 4,233,390 francs ; in 1870 to 4,374,797 francs; in 1875 to 5,976,954 francs, and in 1880 to 6,080,718 francs. PROVINCIAL TAXES. In the province of Brabant (in which Brussels is situatea) every tax- payer pays an additional tax for ijrovincial purposes, based upon the am'ount of tax he pays upon his real estate, personal property, or for a license. Upon the tax paid on real and personal property he pay 18 J, and upon the license tax 17 per cent. Dog tax. — This tax for the province is 5 francs for an ordinary dog, and 10 francs fof blooded dogs. TAXES OF THE CITY OF BRUSSELS. Tax on buildings temporarily exempted from the real estate tax. — Article 3 of the law of July 5, 1871, says that buildings constructed or recon- structed will pay the real-estate tax to the state from the first of January 304 KEPORTS ON TAXATION. of the second year of its occupation. This exemption, however, does not apply to the city, and it collects a tax of 15.10 per cent, of the net rental. This tax was adopted in 1872, and was then 9J per cent, of the net rental; in 1875 the rate was increased to 13.10 per cent.; in 1877 to 14.10 per cent. ; in 1880 to 14.60 per cent, and since 1881 to 15.10 per cent. In nine years this tax has been increased nearly 60 per cent. Tax on the drinMng and tobacco traffic. — The dealers in beer, liquors, and tobacco are taxed as follows : First class, having an annual sale of 2,500 francs or less, 20 francs tax; second class, having an annual sale of 2,500 to 5,000 francs, 40 francs ; third class, having an annual sale of 5,000 to 7,500 francs, 60 francs ; fourth class, having an annual sale of 7,500 to 10,000 francs, 80 francs ; fifth class, having an annual sale of 10,000 to 12,500 francs, 100 francs. For those having an annual sale of over 12,500 francs the tax is increased 5 francs for every 500 francs sale. The receipts from this tax were, in 1873,66,332 francs, and in 1880 80,000 francs. Since 1871 the state collects no direct tax on spirits and tobacco. City personal tax. — The city personal tax is 95 per cent, of the state personal tax. Until 1879 this tax was only 50 per cent.; in 1880, 65 per cent., and since 1881, 95 per cent. City tax on the cadastral or real-estate revenue. — This tax is identi- cally the same as the real-estate tax levied by the state, and is also 7 per cent, of the net revenue. In 1876 this tax was but 5 per cent, of the net revenue ; in 1877 it was increased to 6^ per cent., and since 1881 to 7 "per cent., an increase of about 40 per cent, in five years. City tax on licenses. — The city assesses a tax of 15 per cent, of the state license tax on incorporated companies, bankers, money-changers, stock-brokers, directors, and administrators of companies, merchants, wholesale dealers, and brokers in oils, beer, wines, spirits, hops, leather, cotton, wool, tobacco, wood, cereals, and other wholesale dealers in- scribed in one of the first six classes of the Government tariff, and 20 per cent, of the state license tax on all others having a license. In 1870 the amount received from this source was 62,000 francs, and in 1862, 200,000 francs, an increase of 138,000 francs, or more than 220 per cent. City carriage tax. — There is a tax of 50 francs for a two-horse carriage and 30 francs for a one-horse carriage. Public carriages and carriages in livery-stables, if not permanently rented, are exempt from taxation. There is only one tax of 50 or 30 francs, which is not increased by the number of carriages kept. Dog tax. — This tax is 5 francs for an ordinary dog and 10 francs for every hunting dog, bull-dog, bull-terrier, and other blooded dogs. The dog of a blind person alone is exempt from tax. Tax on exchange agents and stocJc-brokers. — This tax is 250 francs per year for every person exercising at the stock exchange the profession of exchange agent or stock-broker. It is 150 francs for every delegated clerk of an exchange agent or broker. Tax on broJcers of merchandise. — All brokers of merchandise buying and selling at the exchange are taxed 25 francs annually, and their clerks 10 francs. Persons not on the tax-list are not permitted to enter the exchange except by paying 1 franc. Tax on constructions and reconstructions. — The city is divided into ten classes for the assessment of this tax. The tax for the first class is 1 franc per cubic meter for the first 5 meters of the height, 50 centimes from the height of 5 tP 10 meters, and 25 centimes above 10 meters. BELGIUM. 305 The tax of each of the remaining nine classes is reduced one-tenth. The out-houses, stables, etc., pay one-fourth of the tax. This tax, how- ever, is doubled if the street is opened at the city's expense, and it is one-half more if the street is widened for a length of 35 meters at the cost of the city. The above named are all the city taxes. In 1850 the total amount of taxes received by the city of Brussels was 263,000 francs, about 1.81 francs per inhabitant. In 1860 the re- ceipts were 530,888 francs, about 3.03 francs per inhabitant. In 1870 the total receipts were 1,579,150 francs, about 9.43 francs per inhabitant. In 1880 the receipts increased to 2,64*3,427 francs, about 16.30 francs per inhabitant. In 1882 the receipts were 3,716,160 francs, or about 22.34 francs per inhabitant. It will thus be seen that the city tal'xes paid per inhabitant have in- creased since 1850 from 1.81 francs to 22.34 francs, an increase of 20.53 francs, or 1,140 per cent. The total receipts for taxes for 1882 were subdivided as follows : Francs. Eeal estate not paying state tax 77,500 Drinking and tobacco traffic 85,000 Personal taxes (95 per cent, of state personal tax) 1,600,000 Cadastral revenue tax 1,150,000 City tax on licenses 200,000 Carriage tax 28,000 Dog tax, city 30,000 Dog tax, province 30,000 Tax on exchange agents and brokers 70, 000 Tax on merchandise brokers - 45, 660 Tax on constructions and reconstructions 400, 000 Total 3,716,160 INDIRECT TAXES. "DROITS D'ACCISE." (INTERNAL REVENUE.) There is a " droit d'accise" established in Belgium on the following articles : Wines, spirits, beers, vinegar, beet sugar, glucose, sirup of inulin, tobacco, and foreign sugar. Wines. — The "droit d'accise" on wines is 23 francs per hectoliter. Wines made in Belgium of dried fruits pay the same tax. Manufactured spirits. — The " droit d'accise " on manufactured spirits is based upon the vessels employed for the soaking, maceration, and fermentation of the material used for distillation. The duty is fixed at 5 francs per day's work, and per hectoliter capacity of the vessels. It is 7 francs if, besides barley malt, other grain than rye, barley, or ordi- nary oats, not having undergone any preparation before maceration, are employed. It is 7.50 francs per hectoliter if bolted flour is employed. It is 8.50 francs per hectoliter if dried fruits, molasses, sirup, sugar, or beet juice with, one or more feculent or saccharine substances are em- ployed. The above three first taxes are increased to 5.50, 7.50, and 8 francs if maceratOrs are used. Besides the above, 6 per cent, additional of the tax is collected since 1879. The tax is due for the renewing of the mattef every twenty-four hours. The distiller working faster is compelled to pay a supplementary tax proportionate to the number of times the matter is renewed. There is no duty collected for Sundays and legal fete days if the distiller declares that he does not work on those days. 306 REPORTS ON TAXATION. A deduction of 15 per cent, is allowed to agricultural distillers not employing more tlian two vessels, one only used for boiling and the other to rectify the boiled matter. A tax of 3.75 francs per hectoliter of the capacity of the vessel used for maceration or fermentation is collected on the distillation of seed and stone fruits producing alcohol (without employing any other matter). A drawback of 50 francs is allowed per hectoliter of spirits of 60 de- grees " Gay Lussac " exported or deposited in the G-overnment ware- house. Tliis drawback is not allowed for less than 5 hectoliters for exportation and for less than 10 hectoliters for deposit in warehouse. Beers. — Tliere is a fixed duty of 4 francs per hectoliter of the capacity of the vessel in which the raw matter for the brew is prepared. Vinegar. — The manufacturers of vinegar are divided into three classes: The first class comprised those only making vinegar from beer. They pay a tax of 4 francs for four months' work per hectoliter capacity of their double-distilling apparatus (cuvesjumelles). They enjoy a reduc- tion of the tax of 40 centimes per hectoliter of beer entering their fac- tories. The second class comprises those making vinegar with macerated and fermented liquids. There are none of these in Belgium. The third class comprises the artificial vinegar manufacturers, employ- ing other substmces than those in class 1 and 2. The duty for this class for four months' work is also 4 francs per hectoliter capacity of their double-distilling apparatus, with a reduction of 18 per cent, upon the tax. Are exempt from this tax all vinegar manufacturers of the third class employing for their manufacture an article already paying an excise tax. Foreign svgars.-^Foreign sugars pay the following tax on entering Belgium : Raw sugar below No. 7,34.26 francs per 100 kilograms ; from Nos. 7 to 10, exclusive, 40.91 francs per 100 kilograms ; from Nos. 10 to 15, ex- clusive, 45 francs per 100 kilograsm ; from Nos. 15 to 18, inclusive, 48.07 francs per 100 kilograms. Five hundred kilograms or more of raw cane sugar can be deposited in the Government warehouse, but for smaller quantities the duty must be paid cash. Belgian beet sugar. — This tax has for basis the volume and density of the beet juice. The beet sugar manufacturer is required, fifteen days before beginning work, to sign a declaration and deposit the same with the Government receiver of his district, in which he states the quantity of beets he pro- poses to employ in his factory during the season. No declaration is admitted for a quantity less than 200,000 kilograms of beets to be em- ployed during every thirty days' work. Before beginning work the manufacturer is required to give a bond, the minimum of which is equal to the value of the sugar contained in the quantity of beets he has the right to employ monthly. One hundred kilograms of beets are calculated to produce 6 kilograms of raw sugar. The excise tax on raw beet sugar is fixed at 45 francs the 100 kilo- grams. Oluoose made of potatoes and grain. — The tax on the manufacture of. glucose made of potatoes or grain is as follows : Granulated glucose 12 francs per hectoliter, capacity of the sacchari&catiou caldron • other glucose, 4 francs. ' ' BELGIUM. 307 Syrup of Inuline. — Syrup of inuline is extracted from dried chicory. It pays au excise tax of 1.G8 francs per hectoliter net of the capacity of the caldron for maceration. Belgium tobacco. — The excise tax in Belgium on tobacco is 1.50 francs per are planted with tobacco. For the calculation of the surface planted fractions are neglected; but every parcel of land less than one are is considered as an are. RECEIPTS FOR 1883. The latest statistics published (1883) from foregoing taxes were : ITrancs. Wines 4,545,888.72 Spirits 28,274,387.46 Beers 13,792,848.90 Vinegar 13,006.80 Foreign sugar ., 3, 862, 518. 81 Belgian beet sugar 1,187,446.08 Glucose 259,426.30 Tobacco 180,156.50 Total 52,115.679.57 ENREGISTREMENT. The enregistrement is a formality Avhich consists in the recording of documents. The taxes for recording are either fixed or proportional. They are fixed when the document recorded is of a civil, judicial, or extrajudicial nature, but not containing an obligation, nor satisfaction, nor judgment for fixed amount, nor setting creditors in order of pay- ment, or payment of sums or values, nor transmission of property, or the use or enjoyment of real or personal property. They are proportional for documents containing au obligation, satis- faction, judgments for fixed amount, setting creditors in order of pay- ment, or payment of sums or values, or for the conveyance of property, or for the use or enjoyment of real or personal property. The fixed duties vary from 50 centimes to 55 francs, according to the nature and amount of the document to be recorded. The proportional duties are from 0.15 to 6.50 per cent, of the amount stipulated in the document. NATURALIZATION. The recording tax for the small or ordinary naturalization is 250 francs, and for the grande naturalization, which includes the right of suffrage, 600 francs. The duty for the grande naturalization is reduced to 250 francs, if the person receiving the grande naturalization has previously paid for the small naturalization. MORTGAGES. The taxes on mortgages are divided into taxes for recording and taxes for transcribing mortgages. The first tax is collected when the mort- gage is inscribed or recorded, and has for basis the capital of the mort- gaged debt. The tax is 0.65 or 1.25 per 1,000 francs, according to the nature of the property mortgaged. The second tax is collected upon transfers of the mortgage, or by sale of the real estate mortgaged. This tax is 1.25 per cent. The tax on mortgages has been increased by an additional tax of 25 per cent, upon the original tax levied, 138— No. 99-^ 4 308 REPOETS ON TAXATION. SUCCESSIONS. The taxes on inheritances are the following : (1) Tax on inheritances of real and personal property. (2) Tax on inheritances of real estate situated in Belgium, derived from a person not reputed to reside in the Kingdom. (3) Tax on inheritances in direct line. (4) Tax on inheri- tances between hushand and wife, having children of their marriage. Tax on inheritances of real and personal property. — This tax is collected upon the determined value of all real and personal property situated in Belgium or in foreign countries, left by an inhabitant of the Kingdom, no matter where he dies. An inhabitant of the Kingdom is the person who has established his domicile or the seat of his fortune therein. The amount of the debts of the deceased is deducted from the value of the estate. The tax varies according to the degree of relationship between the deceased and his heirs. It is as follows : Property. Life use. Between — Husband and wife (no children) Brotlier and sister (dying without will) Nephew and niece (dying without will) other relatives other persons not relatives r cent. Ter cent. 6.50 2.75 6.80 3.40 8.20 4.10 13.80 6.90 13.80 6.90 Taxes on inheritances of real estate in Belgium derived from a person not reputed to reside in the Kingdom. — This tax is established on the value of real estate situated in the Kingdom (without deducting debts) which was inherited from a deceased person not residing in Belgium. This tax also varies according to the relationship between the deceasec" and his heirs. Property. Life use of . property. Direct line Collateral line Persons not relatives l?er cent. 1.40 6.80 6.80 Per cent. 0.70 3.40 3.40 Tax on inheritances in direct line. — There is a tax collected on inherit- ances of real estate in direct line. This tax is based upon the value of real estate and mortgages on real estate left by the deceased in Belgium. This tax is : Ascendants Descendants (legitimate) Descendants (illegitimate) Between husband and wife having children of Iheir marriage Property. Life use of property. Per cent. Per cent. 1.40 0.70 1.40 0.70 1.40 0.70 1.40 0.70 The four classes of taxes on inheritances have been increased by an additional tax of 30 per cent, upon the tax levied, BELGIUM. 309 STAMPS. There is a stamp tax established in Belgium. All documents, civil or judicial, or those to be produced in courts, must be written on stamped paper. There are three kinds of stamps — the stamp tax fixed, the propor- tional stamp tax, and the stamp tax of dimension. - Passports, permission to carry hunting arms, permission to hunt with hounds, and warehouse receipts pay a fixed stamp tax. ' Proportional stamp taxes are collected upon negotiable notes of com- merce, drafts, checks, etc., bills and obligations not negotiable, certificates of deposit, bills to bearer, obligations or bonds, and all other documents or instruments of writing, payable at an infinite time, or five years after their date; also, on bonds, certificates, or obligations resulting from loans contracted in Belgium for the benefit of foreigners. All other documents or instruments of writing not above mentioned pay a stamp tax of dimension ; that is, according to the dimension of the paper on which written. The fixed stamp taxes are as follows : Francs. Passports, interior 2.00 Passports, foreign oojintries 8. 00 Permission to carry hunting arms - 35.00 Permission to hunt with hounds — ^ 35.00 Warehouse receipts ^ 0. 25 The proportional stamp tax varies from 10 centimes to 50 francs, ac- cording to the nature and amount of the document. The dimentional tax varies from 25 centimes to 2.60 francs, according to the size of the document. The total receipts from the foregoing sources in 1883, drawn from the latest statistics published, were as follows : Franca. Recording tax, fixed 1,703,458.49 Eecording tax, proportional 19,525,947.55 Recording tax, naturalization 38, 250. 00 Recording tax, others 1,740.00 Tax on mortgages .3,483,979.96 Tax on inheritances — 17,377,053. 10 Stamp tax 15,784,001.26 Total 57,914,430.36 As an administrative unit, I here give the receipts and expenditures of the city of Brussels for the year 1884. EXPENSES. Items. Francs. Items. Francs. Ordinary expenses : Administration. 25, 000. 00 40, 000. 00 12, OUO. 00 10, 000. 00 631, 839. 91 5, 9S2. 00 161, 274. 68 4, 914. op 5, 960. 00 430. 00 19,972.33 Ordinary expenses : Administra- tion— Continuei. ^ Salary of " echevins " (assistant 13, 500. 00 28,238.23 Commission of the stock exchange. Commission of the local statistics. . Coun cil to settle difficulties between Salary of mnnicipal secretary Salaryof municipal receiver of taxes Salaries of the municipal clerks and 3, 260. 31 4, 641. 12 20, 918. 04 Total Other expenses for the central ad- 986, 930. 62 Municipal property and promenades. Repairing permanent communal Stampa for registers of the "6tat civil " (births, marriages, and Publication of the municipal bulle- 130, 168. 25 Taxes, insurance, etc., on perma- Subscripti n for official joumala... Expenses for lawsuits 13, 702. 27 Repairing promenades 92,782.07 310 KEPORTS ON TAXATION. EXPENSES-Continued. Items. Municipal property and prome- nades — Continued. Annuity for the Bois de la Cambre {public park) Allowance for expenses of botan- ical garden Total City properties. Repairing city properties Taxes, insurance, administration, etc Total Public security. Salaries of police force Other expenses for police Tribunal of police (salaries, civil officers •Clothing of police force, etc Salaries of guardians of public squares KepaiFS of telegraphs Kents for police commissariats Fire department, wages Fire department, clothing Kepairs and renewing fire engiuea, etc Barracks for firemen Other police expenses and guardians Expeoses for civic guards Kent, taxes, etc., for officers general -ataflf of guards Military drafting (tirage au sort) . . Total Fublic health. Local medical commission Salaries of chemists and expenses for laboratory Salaries of officers and office ex- penses of the bureau of hygiene and statistics Salaries of officers of the sanitary service Other expenses for the sanitary service Total Funeral service. Salaries for the officers of funeral ] -service I Clothing for the officers of fune- [ ral service J Expenses for interments and ex- humations Repairs for cemeteries Total Streets. Repairs of streets Repairs of sewers Construction of sewers Names of streets Damages paid to private parties. . . Sidewalks at the cost of city Repairs of street water-closets Seats on public promenades Total Francs. 9, 734. 53 13, 000. 00 259, 387. 12 162, 859. 38 3, 976. 10 851, 450. 21 79, 245. 93 11, 560. 32 73, 480. 39 4, 612. 84 8; 1G5. 78 36, 78^1. 74 180, 293. 9C 49, 209. 11 10, 959. 15 11, 549. 84 10, 300. 08 40,391.20 6, 432. 17 3, 976. 95 1, 378, 411. 67 2, 400. 00 8,511.48 43, 133. 57 25, 624. 60 15, 977. 78 95, 647. 43 62, 441. 97 58, 133. 99 805. 04 121, 381. 00 186, 977. 08 55, 544. 06 33, 018. 45 2, 756. 59 1. U50. 00 4, 189. 54 3, PCl.r.fi 2, 587. 18 289, 985. 06 Items. Primary education. Salaries of teachers _ _ Other general expenses for schools. Excursions for scholars Rent for primary schools and kin- dergartens Repairs of school-houses Repairs of school furniture , Expenses for public libraries Subsidies to riie societies " Wil- lemsfonds" and " De Veldbloem" for benefit of children , SingiDg schools Salaries for the teachers in kinder- gartens General expenses for kindergartens Total . Professional education and fine arts. Salaries of teachers for professional school for girls Industrial school, rent, teachers, etc '. Subsidy to the Royal Conservatory of ilmisic Salaries of teachers of Academy of Fin e Arts General expenses of Academy of Fine Arts Public lectures Total . ^' Athenee RoyaV^ — High school. Subsidy , Rent, repairs, taxes, and insurance. Total . Religion. Lodgings for priests Lodgings for Protestant pastors and Jewish rabbi Subsidy for repairing churcfies and temples Subsidy for repairing the Protest- ant church Total . Public charity. Subsidy to public hospitals and charities Subsidy for the old men's home .. . Subsidy for the blind asylum Other expenses for poor Total . Gity debt. Interest on irredeemable debt as- sumed by city , IntnrHst ou mortgages assumed bv city '. . Interest en loan of 7,000,000 (1853). Interest on loan of 7.000,000 (1856). Interest on loan of 25,000,000 (1862) . Interest ouloan of 25,000,000 (1867). Interest on loan of 36,00u,000 (1872) . Interest on ioau of 76,000,000 (1874) . Iiiteri'Ht on loan of G.'i, 000.000 (1S70). Annuity due to tbu "SociOly du Credit Communal " Interest on obligations. 1878 Payment of obligations, 1878 I'rancs. 904, 889. 73 126, 448. 72 11, 386. 91 32, 915. 33 40, 944. 65 13, 333. 95 4, 356. 00 2, 000. 00 5, 085. 50 80,827.29 14, 276. 20 1, 236, 464. 28 22, 500. 00 23, 908. 13 25,000.00 74,687.49 30, 572. 68 13, 138. 16 81, 741. 13 29, 53L 96 111, 273. 09 6,700.00 4, 800. 00 6, 930. 24 800.00 19, 230. 24 292. 064. 09 8, 000. 00 6, 000. 00 126. 60 306, 190. 69 104,559.23 2, 031. 72 300, 000. 00 300, 000. 00 1, 000, 000. 00 999, 997. 10 1, 339, 765. 50 2, 924, 614. 50 2,499,997.25. 34,915.52 19, 905. 00 25,200.00* BELGIUM. EXPENSES— Continuod. 311 Items. City debt — Continued. Loan contracted for the profes- sional achool , Other expenses for the debt Total. Pension fund. Annnal pensions for communal em- ployes, widows, and oi*phaus Other expenses. Subsidy to the University of Brus- sels Subsidy to the Polytechnical School Subsidy to complete collections for university Subsidy to the opera Subsidy to Belgian dramatic au- thors ' Salaries of watchmen at theaters-. Rent, taxes, and insurance for Flemish Theater Subsidy to Flemish Theater Subsidy for the study of fine arts. . Subsidir for the professional school for tailors Subsidy for lessons to indigent stammerers Public concerts for classical music. Public ffites National f 6tes Concerts in the park Band of the fire depaitment Premiums for fat cattle Subsidy for the races Expenses paid to staff officers of the civic guards Total. Special seiyices — Gas. Expenses of works Water. Salaries of employes Expenses of administration . Kepairs of pipes, etc , Other expenses for repairs . Francs. Tot^l. Canal from Brussels to the Rupel. Salaries of employes , Expenses of administration Repairs of canal Total. Public warehouse. Expenses of the warehouse Expenses for working the " monte- charges" "Wages to watchman, ., Total . 7, 980. 00 8, 783. 00 9, 567, 748. 82 228, 431. 18 75, 000. 00 25, 000. 00 7, 500. 00 115, 000. 00 4, 000. 00 11,401.77 43, 269. 98 15. 000. 00 6, 662. 40 3, 000. 00 2, 000. 00 3, 000, 00 39, 990. 86 31, 108. 36 18, 990. 50 21, 000. 00 11, 874. 99 IC, 000. 00 1, 800. 00 451, 598. 86 2,037,488.55 157, 149. 53 15. 336. 41 124, 564. 55 234, 085. 69 531, 136. 18 38, 494. 44 1, 995. 22 60, 362. 85 100, 852. 51 1, 242. 65 8, 978. 77 400. 00 Items. Markets on public squares. Salaries of employ 68. Office expenses Total Covered markets. Salaries of employes. Office expenses Total ''Abattoir " — Slaughter-house. Salaries of employ6s . , Office expenses otal . Fish market. Salaries of employes. Office expenses Total. Public scales. Salary of the receiver.. Office expenses Total , Street cleaning and sprinkling. Cleaning and sprinkling the streets Street sprinklers Total Electric clocks. Salaries of employes and repairing clocks Increasing the number of clocks . . Total Secondary education. Salaries for teachers for boys' school General expenses boys' school Rents and taxes Subsidy for girls' school Salaries for teachers for girls' school General expenses girls' -school Repair of buildings Repair of f aruiture Total Other expenses. Aid to indigents at their homes . . . Expenses for transportation of criminals Rent for race track Refunding of money deposited as bail Other expenses Total . Francs. 16,842.12 9, 475. 53 26, 317. 65 5, 700. 12 3, 660. 41 42, 118. 80 5, 836. 35 47, 955. 15 29, 103. 03 10, 028. 52 39, 131. 55 2, 300. 00 680. 55 2, 780. 55 553, 574. 02 1, 993. 37 555, 567. 39 8, 392. 92 1, 712. 82 123, 971. 38 10, 699. 61 12, 313. 26 13, 000. 00 103, 148. 12 19, 740. 83 10, 224. 29 4, 897. 20 297, 994. 69 133, 080. 80 3, 706. 85 4, 021. 74 36, 174. 57 42, 114. 78 219, 098. 74 312 REPORTS ON TAXATION. RECEIPTS. Items. Francs. Francs. Franca, Taxes. 95 per cent, of State personal tax. , 7 per cent, of real-CBtate tax , Tax on buildingsexeuipt from pay- ing State tax City tax on licenses Tax on carriages Dog tax, city Dog tax, province (share of city).. Tax on stock-brokers Tax on constructions and recon- structions Tax on the liquor and tobacco traffic Tax on merchandise brokers Total From public properties. Rents from markets Annuity from tramways and omni- buses • Eeceipts from public carriages — Receipts from lots in cemeteries. . Receipts from ' ' Bois de la Cambre ' * (pars) Receipts for rents from permanent city buildings Rents from land Other rents Rents from cellars Connection of buildings with aewers Sale, of trees Total From private properties, etc. Rents of buildings owned by city.. Other receipts Rent of Grand Hotel (owned by city) From the sale of lots (payments running ninety-nine years) From loans on buildings From "Quartier Notre-Dame" From other sources. Interest on money not used from loan, 1879 Interest on temporary investments. Eeceipts from ' ' Society Bains ^ficonoraiques" Eeceipts from "Society Cr6dit Communal" Total Sundry receipts. From birth, marriage, and death certificates From sanitary service From neighboring communes, for fountain service From funerals From St. Gilles and Ixelles, for re- nairs of squares 1, 754, 437. 60 1,192,531.08 58,547.31 liiO, 110. 83 24, 390. 00 24, 905. 00 11, 750. 00 67, 675. 00 142, 041. 04 94, 302. 12 48, 000. 48 3, 538, 690. 36 165. 303. 30 95, 333. 32 37, 955. 62 73, 115. 20 7, 724. 90 60,688.75 5, 947. 88 127. 60 3, 646. 75 23, 874. 89 8, 300. 58 482, 018. 79 535, 405. 63 68, 220. 38 125, 000. 00 1, 533, 712. 38 562, 110. 05 957, 56J . 35 110, 146. 83 781, 860. 80 14, 669. 33 1, 950. 00 1, 940. 00 4, 692, 576. 7b . 2, r>.56. 85 10, 116. 50 11,935.00 105, 688. 26 Sundry receipts — Continued. From " Conseil de Prad'hommes ' Other receipts 674. 00 141. 05 Total . 132, 060. 66 Subsidies. From G-eneral Government and provinces, for Academy of Fine Arts From same, for industrial school .. From Government, for general ed- ucation From Government, for secondary education From Government, for primary education From Government and province, for "kindergartens" From Government, for public lec- tures From Government, for national fetes Total From commune, Government, and bankers. Part of the city in the communal fund Eeuts received from the Govern- ment Interest from bankers on account current Total Fines. Receipts from fines, total Receipts from special services. From gas works From water works From canal from Brussels to Rupel . From public warehouse From markets From slaughterhouse From fish market From public scales From street-cleanings (manure) - . . From electric clocks From tuition secondary scholars . . . Total , Other receipts. From General Government, poor fund From General Government, trans- portation of prisoners For rent of race track : From cash deposits for bail , For ordered work From interest on provisional loans Total 15, OOO. 00 35, 517. 00 5,655.00 30, 000. 00 345, 819. 33 20, 809. 35 4, 100. 00 20, 000. 00 476, 900. 68 3, 165, 885. 39 300, 000. 00 36, 220. 67 3, 302, 106. 06 4, 243, 531. 68 1, 489, 180. 27 319,382.13 74, 013. 66 150, 979. 47 422, 530. 43 167, 632. 83 3, 125. 09 131, 605. 09 2, 041. 75 98, 333. 43 7, 102, 355. 83 133, 080. 80 3, 706. 85 4, 021. 74 36, 174. 57 41, 760. 80 2, 049. 78 220, 794. 54 KKLUIUJM. 313 Recapitulation of expenses and receipts of the city of Brussels for 1884. Expenses. Ldministration Jommnnal property 'rivate property of city 'ublio security *ni)lic health Jervice of funerals Jtreets Primary education i*rofe8sional educatiou and fine arts ligli school Religions - Pubnc charity Debt tension fund Dther expenses Special services Total TTrancs. 980, 930. 62 259, 387. 12 166,836.48 1, 378, 411. 67 95, 647. 43 121, 381. 00 289, 985. 06 1,236,464.28 1R9, R06. 47 111, 273. 09 19, 230. 24 306,190.69 9, 667, 748. 82 228, 431. 18 451, 598. 86 3, 888, 410. 65 19, 257, 732. 65 Becelpts. Taxes Properties Private property Sundry receipts Subsidies Commune, Government, and bankers Fines Special services Other receipts Total receipts Total expenses Excess of receipts Francs. 3, .538, 690. 36 482, 018. 79 4, 092, 576. 75 132, 060. 66 476, 900. 68 3, 502, 106. 06 6, 083. 80 7, 102, 365. 83 220, 794. 54 20, 153, 587. 47 19, 257, 732. 65 895,854.82 Extraordinary expenses and receipts. Extraordinary expenses : Debt: rranos. Refunding irredeemable-loans 69,767.16 Refunding of the loan of 1878 25,200.00 Total 94,957.16 Extraordinary work on streets and squares 852, 602.61 Extraordinary construction of public buildings 2,768.872. 32 Dther extraordinary expenses ■ 279,719, 92 Total 3,901,194.85 Extraordinary receipts : Total from the sale of public lots, property and subsidies from General Government for statues and works of art 1,082,166.01 GEiTERAL EECAPITULATIOlT. Ordinary receipts 20,153,587.47 Extraordinary receipts 1, 082, 166,01 Total receipts 21,235,753.48 Ordinary expenses 19, 257,732.65 Extraordinary expenses 3, 996, 162.01 23, 253, 884. 66 Deficit 2,018,131.18 The foregoing comprises the receipts and expenditures of the city of Brussels proper, with a population of 171,751 in 1885, and excluding the nine suburbs {faubourgs), which have each an independent municipal government. Brussels proper, with the nine faubourgs, having an ag- gregate population of about 450,000, is known as the " agglomeration Bruxelloise," and practically forms but one city. William Slade, Consul. Consulate op the United States, Brussels, August 15, 1887. 314 REPORTS ON TAXATION. TAXATION IN BELGIUM. MEPOBT OF CONSUL POLACREE. Belgium is neither a centralized country lite France and (to a certain extent) like England, nor a confederation like the United States and Switzerland. The provinces and communes (townships) enjoy a real autonomy; the rule as stated in the constitution of the kingdom being that provincial affairs are to be settled by the provincial assembly, aud local affairs by the communal council (both being elected bodies), but the right of canceling any decision which might be considered contrary to the interest of the state is vested in the central government. As a consequence of this, taxes are established and levied not only by the state, but by the provinces and communes also, the only condi- tion being that the creation of any new local tax is subject to the ap- proval of the Government. STATE TAXES. The sources of the public revenues are the direct taxes, the indirect taxes, the tolls, the capital belonging to the state with the income de- rived therefrom, etc. DIRECT TAXES. The taxes are, politically speaking, of great importance, as the elec- toral franchise for both houses of the national parliament is only ac- corded to the citizens paying a miuimum of 42.32 francs direct taxes per annum. The direct taxes consist of the laud tax, the personal tax, the licenses, and the tax on mining concessions. Land tax. The whole of Belgium has long ago been surveyed, and every house and landed property valued, and the supposed income to be derived therefrom estimated as a basis for the land tax. The valuations are to be revised at certain intervals in order to take into consideration the possible rise or fall of the income on property. The land tax to be paid by every landed proprietor (for houses and other buildings as well as for land) amounts annually to 7 per cent, of the estimated income thereon. But one should bear in mind that this estimated income is considerably below the real income, aud as a rule the appraisement rarely exceeds two-thirds of the valae. Personal tax. The personal tax includes the tax paid by householders or tenants (not the proprietors) on the valued amount of their rent, the tax paid by the same on the doors and windows of their dwellings, the tax on furniture, on servants, and on horses. (1) Tax on the value of rent. — Every householder has to pay an an- nual tax of 5 per cent, on the supposed amount of his rent. The valua- tion as made by the Government agents is generally very low, and sel- dom exceeds 50 per cent, of the actual rent. (2) Door and windoiv taxes.— Are divided into two classes. Doors and windows opening either into the street or into x^rivate grounds are of the first class. Doors and windows in basements and above the sec- ond story are of the^second class. liJiiUUlUM. The scale of this tax is established according to the population as fol- lows : In -iommiiiies of- First Second. class. class. Francs. Francs. 1.00 1.00 1.10 1.10 1.30 1.10 1.80 1.10 2.28 1.10 Less than 5, 000 inhabitants, each Five thousand to 10,000 inhabitants, each Ten thousand to 25,000 inhabitants, each Twenty-five thousand to 50,ou0 thousand, each . Fifty tuousand and more inhabitahtn, each The number of doors and windows being ascertained by the Grovern- ment agents themselves, this tax can not be tampered with, and is paid in full. (3) Taxon furniture. — A tax amounting to 1 per cent, on the estimated value of one's furniture is to be paid annually. The tax-payer has the choice of having his furniture valued by the Grovernment agent or of having it taken for granted that its value is equal to five times his esti- mated house rent For instance, the estimated rent being 1,000 francs, the furniture will (without valuation) be considered as representing a sum of 5,000 francs, and consequently the tax will be 50 francs. It may be stated the G-overnment valuation is always very low, bed- room furniture, kitchen utensils, books, works of art, etc., never being included. (4) Tax on servants. — This tax does not apply to servants living out of the house, nor to mechanics, journeymen, apprentices, and work people generally. The amount of the tax is : Francs. For one servant employed at the same time as workman 8 For one female servant 10 For two female servants, each 20 For more than two female servants or when a manservant is employed besides, each - - 25 For one man servant 25 For two, three, or four men servants, each 30 For more than four men servants, each 40 For every man servant wearing a livery an additional tax of 10 francs is collected. (5) Tax on horses. — Horses used only for pleasure are taxed as fol- lows, viz : Francs. When only one is kept 50 When only two are kept, each 60 When no more than five are kept, each 70 When more than five are kept, each 80 Horses used for business as well as pleasure (for instance, officers' horses) are taxed, each 20 Each horse kept for hiring purposes ^ 10 Dealers who, as a rule, do not have more than ten torses in their stables pay a global tax of 100 francs, the others a tax of 200 francs. It should be mentioned that for the present these five taxes (that is to say, the personal tax,) have been increased in order to meet the treas- ury's requirements as follows : The tax on the valued rents by 35 per cent., and the others by 15 per cent. The increase was of course sup- posed, when voted, to be only temporary, but as the wants of the state increase instead of diminishing the additional tax may now be consid- ered as permanent. It may be noticed that the whole of the personal tax is, in fact, a kind of income tax, the size and value of the house one lives in, the value of 316 REPORTS ON TAXATION. his furniture, the number of his servants and horses being, as a rule, almost accurate indications of a man's means. Licenses. Nearly every profession and trade is subject 'to the yearly payment of a tax or license. A few professions only are excepted, such as public officials, priests, barristers, artists, officers, and literary men. The licenses are divided into different classes, each paying a fixed tax annually. The classification is made by assessors appointed by the municipalities. It would be rather difficult to give here in a few lines a complete description of the scale of licenses, as the mere text of the law that deals with this subject covers no less than 112 octavo pages. It will therefore suffice for the purpose if I give here a few explanations in or- der to demonstrate how the system is worked. The Belgian law fixes for the classification of licenses two different scales. Scale A. Glass. Francs per year. Glass. Francs per year. 401 334 278 223 167 122 89 67 49 Tenth 36 Eleventh - 27 Twelfth 20 Thirteenth 13 9 Sixth Fifteenth 5.30 2.76 1.70 Ninth The cost of a license under Scale A is the same in the whole kingdom. (1) Fbr some trades, such as silk, wool, cotton, and flax manufactur- ers (barring exceptions), dyers, hatters, cotton printers, tanners, cutlers, printers, ship-builders, etc., the classification is made according to the number of workmen employed, as follows : Number. Class. Numher. Class. 1 2 3 4 5 6 7 21 to 32 .. 8 200 to 300 .. 14 to 21 9 9 to 14 10 6 to 9 11 70 to 100 3 to 6 12 1 to3 13 32 to 60 (2) For other trades, such as cloth makers working without machines, sail-cloth makers, cottoi^ spinners with or without machines, weavers, lace makers, diamond cutters, etc., according to the same standard but by a different classification, as follows: Number. Class. Number. Class. More than 500 1 2 3 4 5 6 7 8 32 to 50 9 21 to 32 10 300 to 400 - 14to21 11 200 to 300 9 to 1 4 . . 12 6 to 9 13 100 to 140 3 to 6 14 70 to 100 1 to 3 15 BELGIUM. 317 (3) For distillers aud brewers according to the quantity of spirits, eer, or viaeger they have inauufactured. (4) For millers a percentage of the estimated rental of their mill, the Brcentage varying from 2 to 4 per cent., according to the kind of grain lilled. (5) For mills other than grain mills according to the kind of stuff round and the manner of working them. For instance, a tobacco mill, hen worked by steam or water power, is put in from classes 6 to 11 ; hen worked by wind power in classes 6 to 10; and when worked by orses in classes 9 to 12. (6) For some trades, such as blast furnaces (which are put in from lasses 7 to 9) gun powder manufactories (classes 6 to 8), cider manu- ictories (in classes 10 to 16), etc., the tax is estimated according to the ind of business, the number of workmen being of no consequence, the Lassiflcation being according to the following table : Class. Salea. Class. Sales. Francs. Over 263, 000 212,000 to 26.5, 000 169, 000 to 212, 000 116, 000 to 159, 000 84, 800 to 116, 000 63, 600 to 84, 800 48, 760 to 63, 600 38, 160 to 48, 760 29, 680 to 38, 160 Tenth Francs. 23, 320 to 29, 680 16, 960 to 23, 320 Eleventh hiid Twelfth 12, 720 to 16, 960 8, 480 to 12, 760 ifth 6, 360 to 8, 480 4,240 to 6,360 ixth 2, 120 to 4, 240 Under 2, 120 ightli Seventeenth (7) For shopkeepers according to the value of the goods sold. (8) For pedlers and others numerous rules are edicted according to heir nationality and their manners of trading (in booths, in the open ir, in wagons, etc.). (9) For some according to their occupations ; thus scissors grinders lelong to classes 10 to 12. (10) For limited companies, according to the profits, the duty being f per cent, of the said profits. (11) For managers, stewards, business agents, clerks, etc., according o their salaries or gains. Salaries of 33,920 francs and upwards belong o the first class and so on ; salaries of less than 636 francs correspond- Qg to the seventeenth class. Scale B. Class. Brussels, Antwerp, Ghent. Liege, Bragea. Lonvain, ilalines, Mons, Namur, Oaten de, Tournai. Alost, Ath, Courtrai, Lokeren, St. Nicolas, Verviers, Ypres. Nivelles and twenty other small towns. All the other communes. Irst Francs. 423. 00 323. 00 246.00 185. 00 138. 00 100. 00 73.00 61.00 38.00 27.00 20.00 10.60 6.30 3.40 Francs. 370. 00 285. 00 214. 00 160. 00 1J8. 00 87.00 66.00 45.00 33.00 22.00 16.00 9.54 4.88 3.18 Francs. 280. 00 214. 00 162, 00 122. 00 91.00 67.00 51.00 38.00 27.00 20.00 12.00 8.48 3.82 2.65 Francs. 194. 00 149. 00 114.00 87.00 67.00 61,00 38,00 27.00 20.00 13.00 9.00 5.30 2.76 1.70 Francs. 142. 00 111. 00 89.00 67.00 51.00 38.00 27.00 20.00 13.00 9.00 . 7.00 4.24 2.12 1.38 Francs. 111. 00 89.00 hird 67.00 61.00 ifth ixth 40.00 29.00 20.00 ighth 14.00 10.00 8.00 6.00 welfth 3.40 hirteenth 1.70 1.06 318 REPORTS ON TAXA.TION. Licenses under Scale B are to be paid: (1) By all kinds of mechanics and artisans who work for themselves and employ workmen. The plassification is made according to the number of hands employed. (2) By inn and hotel keepers according to the number of rooms; by bath- ing establishments according to the number of bath-rooms; and by keepers of billiards according to the number of tables. (3) For bank- ers, merchants, ship-owners, brokers, doctors, bakers, publicans, etc., according to rules established for each trade. The number of rules as stated in the law being 143, one example will suffice. A ship-owner trading from one port to another will belong to class 1 to 4. If he sim- ply fits out ships to be chartered by others, his class will be 6 to 10. .If he fits out ships for the herring, whale, and cod fisheries, his class will be 4 to 10. And if he only fits out small fishing smacks his class will be from 10 to 13. Tax on mining concessions. The opening and working of a mine is done only upon permission being obtained from the Government, and the license is granted on payment of a yearly tax. INDIKECT TAXES. The customs. The excise duty: (i) Foreign mines; (2) spirits made in Belgium; (3) beer and vinegar; (4) sugar; (5) tobacco. The registration fee, including: (1) The registration and mortgage duty. (2) Duties to be paid on the amount of every inheritance in be- quest. (3) The stamp duty; every court document, agreement, poster, draft, and even every notice, even when put up in a window and which can be read in the street, must have a Government stamp affixed, these taxes amounting to from 5 centimes up to several hundred francs, the latter amount being on bequests. The duty is based upon the size of the paper and also upon its money value. (4) The fines. The sealing and stamping duty concerning coins and weights. TOLLS. This includes the tolls paid for the navigation of rivers and canals aud the income derived from the working of the Government railroads and mail-boats, and also from the postal and telegraph departments. CAPITAL AND INCOME FKOM TOLLS. Various sources of revenue are included under this heading, the priU' cipal being the public lands and woods, the pilot and light-house duties, the Government shares in the profits of the national bank, the interest upon investments, the annual tax paid by the different companies of district railroads, etc. Finally one must not forget the repayment of money due and other receipts of all kinds, such as profits and outstanding debts, etc. COLLECTION OF STATE TAXES. State taxes are collected by the Government. The officials are numer- ous, and it would be quite impossible to state here who is to receive every one of the smaller taxes. However, it may be said that for that purpose two great administra- tive bodies are in existence: (1) The administration of direct taxes, customs, and excises. (2) The administration of registration and of public domains. BELGIUM. 319 The former collects the direct taxes, the customs, and the excise duty ; ihe latter the registration duties, etc. The head of all administration is in Brussels. In each province there s a director of taxes, and a director of registration, each having under lim a number of collectors and inspectors. The collectors have no fixed salary, but a percentage on the amount of taxes paid during the year jrithin the limits of their distridt ; however, in no case can a collector re- ieive more than a certain maximum, this maximum being for the collec- :ors of direct taxes, customs, and excises 10,000 francs per annum. PROVINCIAL AND COMMUNAL TAXES. We have seen that provinces and communes are at liberty, provided they obtain the Government's approval, to levy taxes. Theyfreelymake use of this right, and taxes of all kinds are levied in most localities. Of course they are not the same everywhere, aud it would be impossible liere to give even by approximation an idea of the innumerable objects some of these taxes touch. As a rule, nevertheless, provinces, and especially communes, find it easier to add a few additional centimes to every franc of the state taxes. For iustance, in the province of East Flanders, of which Ghent is the capital, the land-tax being (as it is in fact everywhere) 7 per cent. ; 9J ceutimes more for every franc are to be added for the benefit of the pro- vincial exchequer. Thus the estimated income of a piece of land being 100 francs, the land (state) tax will be 7 francs, and the additional pro- vincial tax 66^ centimes. Local taxes (excepting additioual centimes to the state taxes, which are also collected by the Government collectors) are collected by local BoUectors appointed by the local authorities, and receive as a rule a fixed salary. Max POLACHEK,. U. 8. Consul. Ghent, June 10, 1887. Abstract of the budget of the city of Ghent for the year 1887, as presented by the munici- pality to the town council. [Number of inhabitants (within the precincts of the city), 143,242.] RECEIPTS. Ordinary receipts: Franca. Rental of bouses and other real property belonging to the city 80, 949. 38 Various tolls (such for using the city's scales, the medical exam- inations of cattle at the city slaughter house and of iish at the fish-market, the licenses of cabs, etc. ) 150, 310. 00 Local tax of 7 per cent, on the valued income of houses and lands. 483, 000. 00 Additional centimes to the state taxes (viz., 40 per cent, to the per- sonal tax, 25 per cent, to the licenses) after deducting the costs of collection, which amount to 2 per cent, of the sum collected, granted to the state colleo tors, and also bad debts 360, 000. GO Local tax of 4 per cent, on the values of sites receiving buildings for the first time, and adjoining a public thoroughfare 9, 000. 00 . Local tax on dogs 17,500.00 Share of the city in the communal fund 1,549.051.00 (N. B. — The said fund was created by the Government when the local customs were done away with in 1860. Every municipality in the kingdom is entitled to' receive annually a proportional share of the in- come derived from it.) Local tolls at the docks iiud public markets 405,000.00 Local tax on inhabited houses, factories, and warehouses 168, 000. 00 Local taxes on horses for pleasure purposes 25, 000. 00 320 REPORTS ON TAXATION. Ordinary receipts— Continued. „'^'^!^°^'„ Local taxes on furniture - 'nnn Local taxes on servants i^'nnn " Local taxes on carriages 10, 000. 00 Local additional tax of 25 per cent, on all licenses exceeding 51 francs- 25, 000. 00 Local tax on steam-boilers 33,000.00 Local tax on handbills 2,000.00 Various revenues (fines paid by the civic guard, income derived from moneys invested, exclusive of the loan, taxes paid by clubs, etc., for the occasional use of municipal buildings, etc.) -■ 130,151.96 Income connected with the building of the new streets in the " Quar- tier du Bas-Escaut " Cviz, interest derived from investments, annui- ties received for sale of building sites, annuities paid by builders for money advanced, annuities paid by the "Compagnie Immobilifere' for money lent) 319,100.00 Income connected with the municipal schools: Various donations and bequests and income derived from investments 1"' '■J: • „„ Money received for the pupils in the few paying schools 5*3, 000. 00 Subsidy granted by the state and province 298, 204. 65 Vnrin 9,150.00 ^^"^ . 446,719.38 Miscellaneous revenues (derived chiefly from sums paid by debtors of the city for advances, annuities, public worlis, etc. ) 308, 737. 00 Total .- 4,648,518.72 EXPENSES. Ordinary expenses : ,^f!!n%„ Indemnity to the members of the municipal council 34,409.52 Salary of the ci ty collector and his four clerks 12, 720. 00 Salary of the city clerk and his subordinates 93,160.00 Petty expenses of the administration, printing, etc 62, 040. 00 Salary of the toll officials at the slaughter-house, the city scales, and the docks and expenses connected therewith 34, 345. 00 Salary of the burial ground officials 8,750.00 ■ Salary of the town fire brigade (F) and expenses 78, 604. 75 Office expenses of the civic guard (militia). The force consists of six battalions of infantry, a company of sharp-shooters, a battery of artillery, and a troop of horse, numbering altogether over 3,000 men 25,421.95 Expenses connected with the cleaning, sweeping, and watering of the streets ■- 99,200.00 Salary of tlie two doctors and other expenses connected with the public health 19,850.00 Salaries and other expenses connected with the municipal jails, shooting-gallery, and belfry, etc 27,710.00 Salary of the city engineer and other officials of the department of public works 63, 825. 00 Salaries of the city gardeners and inspectors 25,400.00 Keeping and repairing the municipal buildings, sewers, quays, pumps, gardens, etc ,.- 220, 950. 00 Expenses of the town water works 88, 500. 00 Expenses connected with the chamber of commerce and the board of arbitration and salaries of harbor officials, etc 83, 619. 63 Salary, etc., police force (246 men) 342,460.00 Expenses connected wi th the lodging of soldiers, etc 35, 450. 00 Expenses connected with the slaughter-ho use 12, 600. 00 Expenses connected with the public markets 15,410.00 Grant to the " Bureau de Bienfaisance"" 61,413.65 Various grants to hospitals, etc 152,642.00 Subsidies granted to religions bodies of all denominations to cover their expenses 9, 600. 00 *The "Bureau de Bienfaisance" has to help the poor, etc. It has an income of its own, derived from lands, etc., but if there is a deficit the city must pay the differ- ■ ence, this being the case in 1886, the expenses amounting to 410,475,03 frgiUCS and the receipts only to 349,061.38 francs, BELGIUM. 321 (rdinary receipts — Continued. Franca. Grants to pupils of the Ghent University (bourse d'6tudes), of the Ghent Royal College, and of the Industrial School, etc 33, 000. 00 The city's share in the expenses of the Ghent Royal College 42, 747. 00 Expenses connected with the municipal primary schools 821,999.99 Expenses connected with other schools - 14, 333. 33 Expenses connected with municipal schools for men and women.. 57,676. 05 Expenses connected with municipal schools for learning trades ... 63, 576. 58 Expenses connected with Ghent Royal Academy of Arts 42, 866. 52 Expenses connected with Ghent Royal School of Music (city's share) 36,446. 00 Public concerts, grauts to artists, to learned societies, and others, etc 37,9,'iO.OO Grant to the Grand Opera House 47,800.00 Grant to the Flemish Theater 15,400.00 Public festivities 30,000.00 Unforeseen expenses 4,400.00 Interest on the city's debts 1,600,477.19 Pensions to retired' ofiacials 103,973.49 Rent of private b uildings used by the city 15, 967. 35 Total 4,576,695.00 Extraordinary receipts: Boni of former years, including 108,046.86 francs of outstanding debts 2,784,860.15 Various revenues* 740,064.25 Funds derived from the loan of 1883 2,103,000.00 Funds derived from the loan of 1880 373,139.10 Total of extraordinary receipts 6,001,063.50 Total of ordinary receipts 4,648,518.72 Total of receipts 10,649,582.22 Extraordinary expenses: . Expenses of former budget not yet settled 104,086.09 Various public works to be completed, extension of water- works, opening of new streets, building of a new bridge, and of schools, etc 793,345.09 Expenses to be paid out of the loan of 1883, consisting of advances to builders and to the " Compaguie Immobilifere" 1,000,000.00 Expenses to be paid out of the loan of 1880, consisting chiefly of expenses to be paid for the completion of the docks and the " Quartier Batavia" and building new schools 1,209,426.93 Expenses to be paid out of the loan of 1880, for the completion of the boulevards and the remaining part of the grant to the "Com- pagnie Imraobilifere" 345,554.79 Various expenses, consisting of numerous items of former budgets where the credits noted have not been sufSoient 126, 484. 74 Total of extraordinary expenses 3,578,897.64 Total of ordinary expenses 4,576, 695. 00 Total of expenses... 8,155,592.64 BALANCE. Francs. Francs. )rdinary receipts 4»648, 518. 72 Extraordinary receipts 6,001,063.50 Total 10,649,582.22 )rdinary expenses 4,576,695.00 ixtraordinary expenses 3, 578, 897. 64 Total - 8,155,592.64 Boni 2,493,989.58 *This item includes numerous receipts of all kinds, for instance, subsidies granted ly the state for the completion of public works, the purchase of works of art, and igo sums received from the sale of property belonging to the city, etc. 322 REPORTS ON TAXATION. AJistraot of the state budget of Belgium, as voted by the house of ^parliament in 1885. BECEIPTS. Direct taxes : Francs. Francs. Francs, Land tax • 23,429,400 Personal tax - 18,723,000 Licenses 7,058,000 Tax on mining concessions 329, 000 11 49,539,400 Indirect taxes: Customs-..- 26,583,300 Excises : Foreign wines 2,928,900 Belgian spirits 20,400,900 Beer and vinegar 9; 132,500 Sugar ; 2,088,000 Tobacco 1,200,000 35,750,300 Registration, etc.: Registration, mortgages 25,460,000 Duties on bequests 19,040,000 Stampduties 6,920,000 Fines, etc 1,150,000 52,570,000 Sealing and stamping duties 362,000 Tolls : Rivers and canals 1,605,000 State railways 120,700,000 Telegraph department 3, 150,000 Post department 8,857,150 Mail-boats - 580,000 Capital, and income therefrom : Publiclands, etc 600,000 Forests 840,000 Varia 725,000 Domains belonging to the S. R.W 9:10,000 Income derived from prisons 93, 000 Pilot and light-house duties 2,750,000 Surety funds. 3,000,000 Small items 417,000 Share in profits, national bank 1,750,000 Investments 500,000 Sinking fund not used 4,430,000 Tax paid by the Soci6t6 Nationale des Chemins de fer vicinaux - 300,000 115,265,600 134, 892, 150 16,335,000 Repayments, profits, etc 3,829,040 Total 319,861,190 EXPENSES. Public debt 102,965,309 Expenses of parliameut 4,678,675 Department of justice 15,399,311 Department of foreign affairs 2, 362, •985 Department of interior and public ednqation 22, 400, 178 Department of agriculture, industry, and ptiblic works 16, 143,848 Department of railways, post, and telegraphs 88,854,474 Department of war (including gendarmerie) 49, 065, 000 Department of finances 15,847,01.5 Repayments, losses, etc 1, 686, 500 Total , 319,403,296 BALANCE. Receipts 319,861,190 Expenses , 319,403,295 Boni 457,895 DENMARK, 323 DENMARK. BEFOBT OF OONSTTL BYDEB. NATIONAL TAXATION. The subject of national taxation in Denmark may be classed under le heads of direct and indirect taxes, the first amounting to 9,500,000 roners and the second to 34,300,000 kroners annually toward the State ivenue (1 kroner equals 26.8 cents). Direct taxes. (1) The so-called " old tax" dates back for more than two hundred iars; having been much altered and modified in that time, however, it )w bears the character of a land tax, bringing into the treasury an inual sum of 5,000,000 kroners. (2) Land tax. — This is a further tax upon land, similar in character 1 the " old tax," but of more recent date, yielding to the State 1,700,000 [•oners annually. (3) Town taxes. — This tax, which has taken the place of sundry re- jaled tax laws, is levied by the various town municipalities in the same anner as for their other municipal expenses, and is an allotment im- )st divided amongst the towns according to population. This tax elds only about 215,000 kroners annually. (4) Building tax. — This tax is levied upon buildings inhabited by all arsons not engaged in agriculture, the latter being exempt therefrom, being assumed that they contribute in like manner under 1 and 2. Ills tax is levied upon the ground as well as upon the insurance value ' the buildings, and yields an annual revenue of'about 2,500,000 'oners. It may be mentioned that with the steady increase of build- gs in the towns this tax is annually increasing, whilst all the. other rect taxes may be said to be stationary. Indirect taxes. (1) Stamp duties, imposed upon various documents and monetary ausactions, and bringing into the treasury about 2,000,000 kroners er annum. This tax is yearly increasing. (2) Succession taxes. — The rates payable upon successions and legacies :e as follows : One per cent, on succession as between husband and wife, or by the lildren of deceased, or by father or brother of deceased. Two per cent, on inheritances by brothers or sisters or their descend- its. Seven per cent, on inheritances to any other degree of consanguinity : to strangers in blood to deceased. This tax yields about 1,000,000 kroners to the State, and is also an anually increasing one. Tax on the transfer of real estate, which yields about 700,000 kroners unually. Fees : This revenue is obtained from the various fees paid in officially > public departments, principally courts of justice, and yields about 000,000 kroners annually. J38— No. 99 5 324 REPORTS ON TAXATION. Import duties, combined with the impost levied upon the home sugar (beet) product, bring to the treasury about 24,000,000 kroners, and are yearly increasing. These import duties are levied upon a very large number of articles, but in no case can the duties be called high or in any way oppressive. The duties are levied on weight or measure, save in exceptional cases of ad valorem duties. These customs duties may be considered as assessed for revenue rather than for protective prin- ciples. Shipping dues : These are now only levied upon the entrance of ves-. sels, calculated according- to bulk of cargo, and yielding au annual rev- enue of about 920,000 kroners. Licenses granted to commercial travelers and others in pursuit of their business transactions : These yield to the treasury 123,700 kroners annually. In regard to the effects of the foregoing taxes upon the industries of the country, or upon the different classes of the population, it may be said that there is no reason to complain ofany undue pressure through any injudicious rates of duty on the several interests. The beet-sugar industry is fully able to compete successfully with any fairly legitimate imports of foreign sugars, notwithstanding the fact that the impost on the home product is only the same as the duty levied on the imported foreign product, but the home producers complain that they are now suffering from the bounties paid by Germany and France to their sugar exporters. The ship-yards, whilst suffering equally with their foreign rivals from the long continued depression, are nevertheless, thanks to the much lower cost of labor in this country, fully able to hold their own, while the distilleries and breweries can in no wise be said to sulBfer any pressure from the customs tariff, inasmuch as they are not only free from any foreign competition in their home trade, but are considerable exporters, especijally to the neighboring Scandinavian lands. On the whole, it may be safely said that the foregoing taxes do not press heavily on any class of the population, as they would appear to be very fairly distributed. Cost of collection. — Direct taxes, IJ per cent. ; indirect taxes, 8 per cent. LOCAL TAXATION. As all the towns are guided by similar principles in raising the local taxes to meet their expenditures, I will confine myself, in this regard, to the course pursued in Copenhagen. It may not be out of place to remark that whilst the population of this city has increased very considerably in recent years, from 181,000 in 1870 to 280,000 at the beginning of 1885, there has been an equal growth of city expenditures, viz: Poor, schools, police, hospital and water rates, iire-brigade, interest on and redemption of loans. In 1870 the expenses were 3,500,000 kroners ; at present the expenses are nearly 7,500,000, about 5,500,000 of which have to be provided for through sources of taxation, the remainder being covered by revenues and in- terest derived from property owned by the city. It must be said that the wealth and general well-being of the citizens have been very consid- erably increased since 1870. The sources of local taxation are (1) tax on real estate, and (2) tax on personal property or income. Real-estate tea;.— Of the first class the oldest tax still in force is that denominated "general ground tax/' which, by royal rescript of 1756, DENMARK. 325 as charged on all ground contained within city walls, and for which a leasurement survey was made some years bact, under the following lode of procedure : All ground situated within the distance of 20 ells 'om the street lines, and which was designated " street ground," was iken in full in the survey admeasurement, whilst the remaining round, designated "inner ground," was only assessed at one-sixth its ;al value. The ground thus found liable to taxation was valued and ited at fixed rates of 16 ore (4J cents) and 2.66 kroners (72 cents) per juare ell, according to its situation. By multiplying such scales of ites on the ratable area of ground the tax value was obtained, and )r each proportional amount of 160 kroners ($43) of such taxed value le ground was rated for one portion of ground tax. To remedy the lequalities of this system of levying the tax it was enacted that, when be ground was built upon, the value of the building should also be iken into account, so that every 10,000 kroners of the building's insur- nce should be rated at one portion additional. The foregoing rating only applied to buildings within the city walls, ut as the building of dwelling houses, with the rapid growth of popu- ition, was carried on to a very great extent outside the walls the tax ras fixed thereon as follows : The unbuilt upon ground was divided into hree classes and valued at 1,200, 2,400, and 10,000 kroners per barrel 56,000 square feet), according to the purposes for which they are used, nd the ground built upon was rated at the building's insurance, together ?ith its valuation for business purposes. To this, again, a change was lade by the law of February 1, 1861, which, on the whole, made a rad- ial alteration in the tax conditions of the city. This law united all the )regoing with the several municipal taxes under one head, viz, ground IX, fixing the same at 15.66 kroners ($4.2,3) and 18.66 kroners ($5.04) )r each ground tax portion, the first for ground within and the second )r ground without the city walls. By this enactment the ground tax as become a fixed one, and can only be increased by the levying qf a reater number of i)ortions on newly erected buildings. In cases where uildings may be deprived of some of the corporation's benefits, such 5 lighting, etc., a proportionate reduction on the tax is conceded, his tax, iu 1885, yielded to the municipality 790,000 kroners. Of more recent origin, and of greater financial importance to the mu- icipality is the " areal tax" which, with some few later mentioned ex- ?ptions, is levied on all buildings in the city. This tax, by the law of ebruary 19, 1861, was re-arranged and, as with the ground tax, is now sed at a constant rate of 13J ores (3| cents) per square ell on the front- ^e, and at 9 ores (2^ cents) per square ell on the sides and back part :' the building. From this tax small dwellings, under 64 square ells, re exempt, and the corporation is empowered to concede to other build- Lgs, viz, charitable institutions being exempt from a part or at times ir the whole tax. The " areal tax" was budgeted for 1885 with a yield ' 1,735,000 kroners. The paving tax, which is estimated at 100,000 kroners, is only levied pon property within the city walls. Local income tax. — The law of February 19, 1861, which granted to the unicipalities throughout the kingdom power to levy an income tax, as of the greatest importance as a means of .supplementing their reve- ues from other sources. The law, however, provides that this tax shall 3t he levied at a higher rate than 3 per cent, on the income. All in- )mes derived from the following sources are liable to income tax : From sal or personal property; from official or other employment, business, ilf-pay, securities, warrant allowances, or other similar sources ; from 326 EEPOETS ON TAXATION. interest or dividends ou all kinds of public or other funds, shares, or other money effects, as well as for all capital placed out on loan at home or abroad. Prom all income derived from trade sources, all office ex- penses may be deducted. Each tax-payer is also allowed to deduct from this income such amount as has been paid by him in the preceding year for taxes to the state or to the municipality ; also the interest of such mortgage debt as may be due on his real estate, together with the expenses of repairs to the same. Incomes below 800 kroners ($215) are exempt; incomes irom 800 to • 2,400 kroners receive an abatement on the following scale: Incomes of 800 kroners rated at 200 kroners ; of 1,400, rated at 400; of 1,200, rated at 600 ; of 1,400, rated at 900 ; of 1,600, rated at 1,200 ; of 1,S00, rated at 1,500; 2,000 rated at 1,800; 2,200 rated at 2,100. Liability to full tax- ation occurs when an income of 2,400 kroners is reached. The income tax is fixed by a board of assessors, consisting of four members, of whom two are elected by the magistracy and two by the town councilors of their own body, together with four assistant mem- bers for each district of the city to assist the board in the rating of the inhabitants. The city is divided into twenty- three districts, for each of which one tax collector or more is or are appointed according to the size of the district, and these collectors at the close of each calendar year have to furnish the tax office with a list of the inhabitants with accompanying information as to their social and pecuniary positions. A printed form is therefore forwarded to each tax-payer, together with a copy of the tax regulations. It is then optional with the tax-payers to make out their income returns for the preceding year, the same to be delivered at the tax department on or before the first day of March, where they are opened and arranged. A printed list of the returns is supplied to the board of assessors, with all possible information to guide the board in making assessments. Where the board is not satisfied as to the correct- ness of any returns, the party making out the same is notified that it , can not be accepted without further documentary evidence. On failure of the tax-payer to satisfy the board the latter proceed to make the assessments. It is estimated that two-thirds of the tax-iaayers avail themselves of the "option" to make out their own returns. When the assessments are made out a printed list for public inspection is issued by the board, and any tax-payer feeling aggrieved at his assessment can note an appeal within fourteen days. Should the board fail to act on this appeal the tax-pa^er, within fourteen days more, can appeal to an upper board, consisting of three members appointed by the Crown for a term of three years, whose decision is final. The income tax, which is at present fixed at 2 per cent, of the tax- payers' income-brings to the city's treasury abont 2,500,000 kroners. The tax is collected by authorized agents, who are obliged to give ample security for the faithful performance of their duties, for which they re- ceive a remuneration of 2 per cent, on the amount collected, together with an allowance for house rent in return for the obligations imposed upon them of having residences and offices in their districts. This in- come tax does not seem to be objectionable on the score of undue bur- densomeuess; the only complaints made are in regard to the publicity of the pecuniary conditions of the individuals taxed. The aggregate state and municipal taxes levied in the Kingdom are computed at about 10 per cent, of the national income. Heney B. Ryder, United States Consulate, Consul. Copenhagen, June 27, 1887. FRANCE. 327 mANCE, BEFOBT OF CONSUL BTfFAIS. National taxes are of two kinds — direct and indirect. Direct taxes are levied on persons and their possessions ; indirect taxes are levied upon articles of consumption. There are four kinds of direct taxes : Taxes on real estate, doors and ■windows, personal property, licenses (patents). Besides, there are various taxes assimilated to them, the principal ones being prestations in kind and the dog tax. Direct taxes are divided into those of repartition and those of quota. Those of repartition are fixed by the financial law (budget) and par- titioned upon departments, arrondissement (districts.), communes, and then upon tax-payers. Taxes of quota are such as are eventual and resulting from the appli • cation of the tariff. Taxes on real estate, doors and windows, personal, and mobiliary are taxes of repartition ; taxes for licenses (patents), prestation in kind, and dogs are taxes of quota. The principal of these four direct taxes is increased by supplements of so many centimes in a franc of the principal, be it to swell the re- sources of the state or to provide for the local expenses of the depart- ment or commune. The first of these additional centimes are called general centimes, and are like the principal fixed every year by law (the budget) ; the other centimes, called facultatives, are annually voted by the general and municipal councils. However, in the absence of such a vote, the Government may fix the tax levy to provide for such expenses as are deemed necessary. Direct taxes are levied from tax-payers, a list of wliom is prepared containing a detailed description of the taxation they are subject to. The authorities who prepare the matricular lists, together with the tax commissioners, are the mayor and communal assessors, of whom there are seven, namely, the mayor, the adjunct or substitute, and five tax- payers on real estate, of which two at least must reside in the commune. 'Besides these there are five substitute assessors, nominated by the soas-pr6fet on presentation of the mayor. Not less than five assessors form a quorum. This commission prepares the matricular tax-list regarding the tax- list of repartition, prestation in kind, and dog tax. The list of tax-pay- ers for licenses (patents) is prepared by the assessors of direct taxation, with the assistance of the mayor and his delegates. TAX ON REAL ESTATE. This tax is levied upon all landed property according to its taxable net revenue, without any other exceptions than those allowed for the encouragement of agriculture or in the interest of general utility. Ex- empt are : Streets, public parks, public promenades, rural roads, rivers, streams, creeks, lakes, bare and arid rocks, the forests of the State ; the latter, however, pay the additional centimes necessary for the ex- penses of the departments to the extent of half their taxable value ; also buildings and grounds of public utility belonging to the State, to the 328 REPORTS ON TAXATION. department or commune ; when the State, department, or commune ac- quires a building for barracks, school, parsonage, etc., the right of taxa- tion ceases from the day of sale, and the proprietor may demand a res- titution of taxes paid pro rata. Buildings for agricultural use, such as barns, stables, cellars, presses, poultry-yards, etc., are not taxed as buildings, only their superficial area is taxed like most arable land. Tax collection stops on houses or workshops in course of demolitiou, provided the proprietor gives notice of such intention of three months. Exemption is granted for two years to houses, manufacturing estab- lishments, mills in the course of building or reconstruction, and are for that time only taxed for the superficial extent ; thus a housQ becoming Inhabitable in 1887 is only taxable from the first of January, 1890. Drained marshes are exempt for twenty -five years ; land being worked after having laid idle for fifteen years, for ten years ; land cleared of woods and afterwards planted or sbwn in wood, for thirty years; land idle for fifteen years or cleared, being planted with vines or mulberry or other fruit trees, for twenty years ; the latter land can only be taxed during the first fifteen years as similar unplanted land. The proprietor, in order to enjoy the benefit of these exemptions for draining, clearing, or otlier like improvements, must make a detailed declaration of the land he wants to improve and have it verified by the mayor and tax assessors. The taxable revenue of land to be planted or sown in wood can only be valued for the first thirty years of planting or sowing at a quarter of similar unplanted laud. All plantations of wood on mountain sides or dunes are free of taxes for twenty years. FIXITY OF KEAL-ESTATE TAXES. The difl'erent revenues for which the real-estate tax has been fixed at the time the cadastre or tax-roll has been prepared can not be altered, whatever the improvements or deteriorations of the property may have been by either the industry of the proprietor or his negligence. Any proprietor may make his application for a reduction from the classification of his unimproved real estate during six months after the first cadastral roll has been opened, but this time once passed, only such reclamations can be made which apply to subsequent causes, in- dependent of the will of the proprietor. However, cadastral revenues of land, covered or not covered by build- ings, may be modified in case article 7 of the land law of August 7, 1850, is appealed to, which is as follows : In any community assessed (oadastr^e) for at least thirty years, the municipal coun- cil, concurred in by the general council, may make application at communal expense for a revision and renewal of the tax-roll (cadastre). The val nation of the taxable revenue of houses and workshops may be revised every ten years (law 3 Prim aire, year VII). This revision is made with the authorization of the prefect, and is made by the assess- ors, assisted by the, controller. The mayor has to inform the tax-pay- ers that he proceeds to the renewal of the valuation of houses and work- shops, and that they may apply for a reduction within three months of the publication of the tax-list from the valuation of their property. The assessors have no right to make any reduction whatever except in cases of changes made in buildings provided for in another paragraph. If the revenue of laud not built upon, though in principle justly valued, but after such valuation, in consequence of unforeseen events 329 and independently of the will of the proprietor, is destroyed or injured, the owner can claim ; on the other hand, if by the change of a bed of a river, stream, or torrent new land is formed and becomes taxable, the proportionate value will be increased. New constructions : Houses and workshops newly constructed or re- built will be taxed like other similar porperty in the commune accord- ing to the general average of such houses and not according to the value of adjoining houses taken in comparison; the cadastral revenue of houses and workshops, enlarged or heightened, is to be modified in the same manner. Barracks, schools, parsonages, or rural buildings, before not taxable, become so by changing their character, in the same way as other similar property.. The assessors in presence of the controller make the assessment, sub- ject to the revision by the prefect if he sees fit. DOOR AND WINDOW TAX. This tax applies to the doors and windows into streets, court-yards, and gardens of houses or workshops. In general all openings giving air or light to houses and buildings for human habitations, shops, workshops, sheds, warehouses, etc., are tax- able, whatever their shape, dimension, or fastening may be. Thus all openings to afford light to the stairs, to a habitable room, doors and windows opening on a covered yard, doors and windows of a private chapel of any locality of commerce, of a loft used for a ware- house, the openings of a privaite school, of a habitable house used for rural purposes, the door of a garden leading to a dwelling, all are tax- able. The openings to new buildings become taxable as soon as they be- come habitable. If at the time of the making of the tax-roll some rooms in a new house are not yet habitable, the openings of such rooms are for the time exempt. Jf the entire front of a room or atelier consists of windows, the number of windows to be taxed is determined by their solid divisions of either iron, stone, or wood. Cross-barred and Gothic windows count for one. The door and window tax is graduated according to the number of in- habitants and the nature and number in which they are arranged. Doors for the passage of carriages or vehicles are taxable, and in the same manner doors or gates at the entrance of a yard, or a simple bar- rier fastened with a willow-band leading to a habitation. If on a farm there are more than one such gates, only one is taxable as a porteco- ch6re, the others simply as openings. Taxes as portecoch6res also apply to (1) doors leading into houses occupied wholly by a bankei", exchange-broker, merchant, wholesale trader, brokers, (2) the principal door of stores occupied by said class if the warehouse is situated on the ground floor, and if the said door leads into a street or court. Exempt are the doors and windows to light or air of barns, sheep-folds, stables, granaries, cellars, et;., not in- tended for human dwelling, also openings of wood-houses, wash-houses, hot-houses, dairies, bake-houses, houses for public, military, or school service. Functionaries, professors, stewards, and similar employes lodg- ing gratuitously in public buildings are taxed for their personal use of ■doors and windows. Further exempt are doors or gates not locked, windows placed above doors or openings of this kind, interior doors of communication from one 330 REPORTS ON TAXATION. yard, to another, or those leading from a yard iato a garden. The doors of enclosures, yards or gardens, which close rural buildings, openings of pavilions for storing agricultural or garden utensils, flowers or seeds. Doors and windows of manufacturing establishments are not taxable, except those in the dwelling part. PERSONAL AND MOBILIARY TAX. General principles. — This taxis exacted from every French inhabitant or foreigner of either sex, enjoying all civic rights, not reputed as a pauper, whether widow, woman separated from her husband, young man or woman making their own living, either by having some personal property or following a profession, even if living with their parents, tutors or guardians. The personal mobiliary tax is twofold, the personal tax and mobiliary tax. Personal tax. — Its quota is fixed every year for every commune by the council of the arrondissement on the proposition of the prefect; still it can not go below 1.50 francs nor above 4.50 francs. The personal tax is due in the commune of the tax-payer's domicil. In case of having two domicils, it is to be paid where the tal-payer lives most of the time, where he has his principal residence, or where he fol- lows his profession or occupation. Mobiliary tax. — This tax is governed by the amount of rent paid or the rentable value of the dwelling of the tax-payer. That portion of a house used exclusively for trade or a similar purpose, and not for a residence, is not counted in the valuation of the rentable value, like a furnished house or a private chapel ; but premises or dependencies of dwelling-houses, courts, stables, and carriage-houses of luxury, clubs, literary societies, and masonic lodges are counted in. The mobiliary tax, being a tax of repartition, it is not necessary that the figures, taken as a basis for taxation, should be the real rent ; it is sufBcient that the proportion of the assumed rent, the basis of the tax, and the real rentable value of the dwelling should be exactly the same for all tax-payers ; so that a taxed citizen can convince himself whether he is overtaxed or not by comparing his own rent with that generally charged in his community. Persons living in furnished rooms are subject to the mobiliary tax according to the valuation of the rooms in an unfurnished state, even if the proprietor has paid the whole tax; in this case the tax-payer has his redress against the proprietor renting the rooms. Public functionaries lodged gratuitously in houses belonging to the State, department, or communes, pay taxes according to the assessable relative rental value. Exempt are servants of either sex, if they are lodged and fed by their masters and exclusively in their service '; in this case their mas- ters are assessed ; they are, however, assessed in case they own or rent a dwelling for themselves or for their families. Oflftcers in garrison, without fixed residence, are free up to the reg- lementary indemnity allowed by the state ; if this is exceeded the mobil- iary rent is charged. LICENSE OR PATENT TAX. Every individual Frenchman or foreigner in Prance engaged in com- merce, trade, industry, or a profession, not embraced in the exemptions provided for by law, is obliged to take out a license. FRANCE. 331 This tax comprises a fixed and a proportionate tax. Fixed taxes are regulated by law, June 4, 1858, according to Tables A , B, 0, which modify the taxes annexed to previous laws. The tax-payer must belong to one of these three different categories; the fixed tax is then regulated by a general tariff and according to the population of the commune, or according to the population and the situation of the commune by an exceptional tariff, or finally without regard to the popu- lation, but according to the elements of production. Commercial, industrial, or professional avocations not specified in the tables are nevertheless subject to the license tax, which is regulated according to similar industries. If one proprietor owns several establishments, shops, or stores, he is taxed for one of them at the highest rate which the rules of population or nature of his trade, industry, or profession govern ; for every one of the others to the extent of one-half in the respective communes. Thus, (1) in an establishment of Table A or B of different occupations the fixed tax rate is for that profession which pays the highest rate ; in an estab- lishment (2), Table C, the fixed rate is regulated according to all the combined elements, without the tax, however, exceeding the maximum of any of them. If among these industries there should be one liable for a fixed tax independently from the tax assessable by reason of production, such, for instance, as for fires, ovens, boilers, vats, pits, spindles, looms, grind- stones, cylinders, workingmen, etc., only one of these fixed taxes, and that the highest, is to be applied, over and above the taxes ruled by principle of production. Thus, for illustration, an establishment containing a woolen mill of 12,000 spindles and a dyeing house, giving employment to 30 hands, is taxed as follows : Francs. Spinning mill, fixed tax 5 12,000 spindles, at 3 francs per 100 360 Dyeing house, fixed tax 15 30 workingmen, at 3 francs 90 The fixed tax for the mill being below that for the dyeing house, the whole is to be taxed 465 francs (the 5 francs for the mill being left out). If the total tax had been 600 francs, the fixed tax would have been reduced to this figure, 600 francs being the maximum taxation for a spinning mill, and 300 francs for a dyeing house. If one proprietor owns several establishments each establishment is taxed proportionately, according to the above rule. The entire fixed tax is levied upon the principal establishment, and only one-half the fixed tax upon the others. In establishments where the fixed tax is regulated according to the number of hands employed, the hands below sixteen years of age or above sixty-five years count only for half. PEOPOETIONAL TAXES. This tax is levied upon the rentable value of a dwelling-house, as well as of warehouses, stores, shops, workshops, sheds, or any other locality in connection with the exercise of a taxable profession. It is due the same if the dwelling or locality is occupied rent free. The proportionate tax for workshops and industrial establishments is levied on their tenant value taken in their entirety and furnished with all the material of production. 332 REPORTS ON TAXATION. According to this article of the law, which, with the exception of gas manufacturers, is applicable exclusively to tax-pa.vers of Table C, not only the rentable value of the building, but also the rentable value of machinery and all industrial appliances, such as motor power and ac- cessories, are taxable. Spare machinery does not count ; only the real motor power used in manufacturing is taxed of either hydraulic or steam machinery. The proportionate tax is payable in all the communes where the warehouses, stores, sheds, etc., are situated. If a tax-payer owns more than one dwelling-house he pays the propor- tionate tax only in the one where he exercises his industry and where he trades. The proportionate tax is fixed at the twentieth part of the rentable value for all taxable professions or trades with the exceptions stated in Table D, appended to the law, June 4, 1858, too numerous to be quoted here. PRINCIPLE OP EXEMPTIONS. ]^ot subject to this tax are clerks and persons working for wages by the piece or by the day in houses, workshops, sales-rooms ; mechanics working at home or with a private person who does not employ a com- panion or apprentice, even if the said workman works for his own ac- count or with his own material or without a shop sign. A woman work- ing with her husband, unmarried children working with their parents, or the simple mechanic whose help is indispensable to an employer exer- cising his profession are to be counted as companions or apprentices. The exemxJtion stops as soon as the work of the employer partakes of the character of commerce, trade, or speculation. Exemption does not extend to professions which do not consist of manual labor, such as land surveyor, dentist, hair-dresser, barber, etc. Licenses are -not required by farmers or growers for the sale or work- ing off of their own crops, for raising or fattening cattle, for converting his fruit into wine, cider, or alcohol, for selling his own woodeven when converted into charcoal or building material, but a farmer selling pro- duce not raised by himself is subject to the tax. Sellers or peddlers in the streets or public places of flowers, brooms, plaster figures, fruit, vegetables, fish, butter, eggs, cheese, or other comestibles are free of tax. Any peddler, however, selling other prod- uce than above mentioned, and any dealer in an open stall, has to pay half the license of the seller in a shop. Dealers occupying stalls In open markets by the year pay the entire tax. Partners under a collective firm name are each subject to a license, the principal partner only paying the whole of the fixed tax; the same amount of tax is then divided amongst the remaining partners of the collective firm and levied upon each of them. All the partners are taxable in each community where the firm has establishments. The proportionate tax is levied upon the dwelling-house of the prin- cipal partner, upon the ofQce, the dwelling occupied by the manager, and upon the localities generally where the hands and other employes live. The dwellings of the other partners are free of the proportional tax, unless they are used in the interest of the business of the firm. Anonymous companies are taxed at the fixed rate according to the •nature of the business ; the proportional tax is governed by the ordi- nary rules. Every one paying a license receives a certificate free of stamp duty^ which is to be produced whenever a mayor, commissary of police, or an/ FEANCE. 333 )ther judiciary officer asks for it. Goods sold without a license can be seized and held at the expense of the seller until a license is obtained. PEESTATION IN KIND. Principles. — Every head of a family or establishment as proprietor, manager, or lessee inscribed on the roll of direct taxes can be called upon every year to render a service of three days, 1st, for himself and for every male member of his family of at least eighteen years of age and not more than sisty-fl ve, living in the commune ; 2d, for every cart or wagon and also for each beast of burden, draft, or saddle used for family or business purposes in the commune. Such beasts are not taxable unless used for the specified i)urposes ; the same with the carts and wagons. Horses for public and not family purposes are free ; so also horses for the gendarmery, tax collectors, engineers of public roads and bridges, or general police. Livery stables, omnibus, or postal contractors are taxable. The prestation service is commutable into money according to a tariff and can be performed either in kind or by a money payment in the choice of the tax-payer ; however, within four weeks after the tax roll is published this choice must be made; after that time the mayor of the commune has his choice. DOG TAX. By the law of May 2, 1855, each commune may levy a tax on dogs of not less than 1 or more than 10 francs a head. Dogs are divided into 2 classes. The highest tax is paid by dogs of luxury or sport and the lowest such as may be used by blind persons, shepherd or watch dogs. Between the 15th and 31st January, the mayor and assessors prepare the roll, and the tax dates from 1st January, unless on that date the dog was still a puppy nursed by the mother. Treble tax is levied from those failing to make the declaration, double if the declaration proves incom- plete or inexact ; if the offense is repeated the tax is quadrupled or trebled, respectively. Tax must be paid for the entire year ; if the owner dies during the ^ear the unpaid proportion of tax is a charge upon the heirs. INDIRECT TAXATION. The most important of these taxes is the one on wines, cider, liquors, 3tc., and is regulated by the laws of 1 816, 1841, and 1852. (1) Whenever wine, cider, or liquor, etc., is removed from one house to another a circulation tax is charged. (2) Only one single tax is to be levied for the transportation from one place to the declared destination at another, though there may be stop- page or a change in the mode of transportation. Proper papers have to follow the transport ; their production may be Jemanded by any of the proper authorities, and if inexact or fraudulent, lot only the goods but also the horses, wagons, boats, etc., carrying the ^oods may be seized until the proper duty is paid. In every city or community of 4,000 inhabitants or over an octroi may 36 levied for home consumi^tion, and goods can only be delivered after mch duty or octroi has been paid ; the hours within which delivery can be made are regulated by law. 334 REPORTS ON TAXATION. In case of infraction of the law the authorities have the same remedy '«■ as above stated; if the goods pass through a city bonds have to be given. Dealers may bond their goods under regulations and in not less quan- tities than 9 hectoliters wine, 18 hectoliters apple or pear cider, 4 hectoli- ters brandy or spirits. They may be withdrawn ad libitum on payment of the octroi. Contravention is punished by confiscation and a fine from 100 to 200 francs, and in aggravated cases from 1,000 francs to six months' prison, besides confiscation. Tax for selling liquor at retail is 15 per cent, on the retail price of wines, apple and pear cider, and hydromels ; a list of prices charged has to be displayed in a conspicuous place on the premises. The mayor or prefect is called upon to settle disputes. Keepers of bar-rooms, inns, restaurants, coffee-houses, boarding- houses, where wines and liquors are sold, must make an application for a license to the tax collector before commencing to sell, and are subject to visits of examination by the authorities. These taxes may be commuted by a payment on the average sale, and then no price-list need be hung up. Proprietors who want to sell their own produce in retail must state the quantity of such produce in their possession, but they can not sell any other produce than their own, and it must be done on their own premises, by themselves or those in their service. General excise tax on spirits. — A tax equal to that levied upon bar- rooms is levied on the sale of any quantity of spirits, brandy, or any beverage containing such, sold to private persons. Spirits, etc., sold for export are free from this tax. Any wholesale dealer in brandy, spirits, or liquors pays the excise tax on whatever he takes out of bond. Private persons pay no circulation tax or excise for moving their private cellars from one house of theirs to another. Spirits put into wines are free from excise tax, but the operation must talie place in presence of the officers of the r^gie. Exemption from circulation tax is allowed only (1) for wines, apple, and pear cider moved from the producer's private or a public press to his cellar, or from one cellar to another, in the same or adjoining dis- trict (canton), whether in the same department or not; (2) for such bev- erage raised by a farmer and due to his landlord by virtue of his lease. Any person growing, preparing, or manufacturing wines, ciders, etc., subject to octroi within the limits of a city, is obliged under penalties to make declaration within twelve hours before the proper authority, and to pay the tax if he does not possess the right of keeping them in bond. The general tax for consumption on brandies, spirits, liquors, or brandied fruit entered into said cities or manufactured there is levied at the same time as the octroi, without prejudice to keepers of bonded warehouses. The law of March 20, 1852, reduced the entry duty in communes hav- ing 4,000 inhabitants or over by one-half, as per table given. Wines, ciders, etc., in quantities of not less than 25 liters, in wood or bottles, sent to consumers by wholesale dealers or growers, are subject to the circulation tax. Smaller quantities are paying the retail tariff. The reduction allowed to producers for leakage on wine, cider, etc., in bonded cellars is 10 per cent., no matter how long in bond. The tax for retail sale of wines, ciders, and hydromels is 15 per cent, on the selling price. , Spirits put into wines are free of such tax in the departments of the X X\.2L1^ VvXUt 335 Eastern Pyrenees, Aude, Tarn, Herault, Gard, mouths of the Ehone and Var, and must not exceed 5 liters spirits to the hectoliter of wine, and then the latter must not contain more than 18 per cent, alcohol ; if they contain more than 18 per cent, and not over 21 per cent, they are taxed as wines and pay, besides double the tax of consumption, entry, and octroi on the excess of alcohol, between 18 and 21 per cent; Wines containing more than 21 per cent, spirits pay the same consumption, entry, and octroi tax as pure alcohol. Only wines intended for export abroad or to the French colonies may, at the shipping port or point of leaving the country, receive an addition of spirits over and above the said maximum without tax, provided the mixing is done in the presence of the proper officers and the goods are immediately exported. Tariff of entry tax on wines, apple and pear cider, liydromels, of March 20, 1852. [Tax per hectoliter.] Population of taxed couimuDities, Paris excepted. Wines in casks and bottles in the denartments. First class. Second class. Third class. Fourth class. Cider and hydromels. Communes: 4,000 to 6,000 6,000 to 10,000... 10,000 to 15,000.. 16,000 to 20 0(10.. 20,000 to 30,000- . 30,000 to 60,000.. 60,000 and over. Paris Francs. .30 .45 .60 .75 .90 1.05 1.20 Francs .40 .60 .80 1.00 1.20 1.40 1.60 Francs- ..50 .76 1.00 1.20 1.50 1.75 2.00 8.00 Ffancs. .60 .90 1.20 1. .W 1.80 2.10 2.40 Francs, .35 .40 .50 .65 .75 .80 1.00 4.00 The financial law of the 26th July, 1860, raises the tax for consump- tion to 75 francs per hectoliter pure alcohol contained in brandy, spir- its, or brandied fruit, and in Paris to 91 francs per hectoliter. NOTICE TO TAX-PAYEES. (1) The direct taxes become due every month, or the twelfth part of yearly tax. (2) The proprietors or principal lessees of houses are bound to re- quire their tenants or subtenants to produce their tax receipts a month before their moving away, else they become themselves responsible. If they refuse to produce them to the proprietor or principal lessee, they must immediately inform the tax collector and get from him an ac- knowledgment of the receipt of such notice. (3) The tax-payers must present their notice to the tax collector at every payment of taxes. (4) Every receipt, in order to be legal, must be cut out from the tax receiver's book, of which he keeps the stub ; duplicates can only be given on ordinary paper. (5) Claims for release or reduction of taxes must be presented within three months of the publication of the tax roll, and claims in conse- quence of unforeseen losses for release or reduction of taxes within fif- teen days of such occurrence, and for restitution of taxes on total or par- tial vacation of houses or for closing of workshops, etc., within fifteen 336 REPORTS ON TAXATION. days following the year or trimester of moving or closing. The above delays are obligatory. (6) Eeclamations not accompanied by the receipt for due term are not admitted. (7) The order of release or reduction count for cash and free the tax- payer from the sum released or reduced. No sum can be demanded above the annual assessment. [Extract from the law, August 4, 1844.] Article 6. Every proprietor or usufructuary having several farmer tenants in the same commune and wl:o wants tbem to pay, instead of himself, the ground tax on the land they farm or hire, must give the tax collector a declaration indicating sum- marily the division of his taxable revenue between himself and his farmers, which declaration must be signed by both parties. If their number is more than three this declaration is sent to tlie director of direct taxes, who prepares the repartition of the taxes and makes the auxiliary roll for each farmer's tax. [Extract from the law, December 29, 1884.] Article 4. In cases where, by wrong or double assessment, undue taxes have been assessed in the rolls of direct or assimilated taxes, the delay for reclamations expires only three months after the tax-payer had official notification of suit being instigated against him for improper assessments by the tax collector. RECORDING OP LEASES. Verbal leases must be recorded within three months of occupation. Written leases by " private signature" must be recorded within three months of the date of the act, unless the occupation took place before the signing of the lease, in which case the delay is calculated from the time of such occupation. The tax is 25 centimes of every 100 francs, deciraes included. Both tenant and proprietor are responsible for its payment. In default of recording or declaring the lease, an additional tax is due of not less than 62.50 francs, including decimes. FRENCH REVENUES AND TAX SYSTEM. Sources of public revenues. — Considering their origin they are divided into fiscal revenues, mixed revenues, and domainal revenues. The fiscal revenues are subdivided into direct and indirect revenues. Direct revenues, scientifically speaking, are called those, in all coun- tries, which affect the fax-payer's more or less permanent condition, such as his existence, his profession, his property, his fortune, his resi- dence, etc., distinct from indirect taxes applicable to facts or acts, such as the importation of a commodity, the consumption of an article, the making of a contract, etc. Domainal revenues are such as the state, the department, or the commune derives (without taxation) from simply exploiting their prop- erty or from the exercise of certain special industries. Mixed revenues are those which are both domainal and fiscal, such as the tobacco and other state monopolies. Comparative proceeds of fiscal, mixed, and domainal revenues. The budget of the old kings of France was in the beginning derived almost entirely from the domains or Crown lands. Gradually taxes were imposed, principally indirect taxes. PEANCE. 337 The budget for 1887 (not including special and exceptional taxes or revettas d'ordre) is estimated as follows : Fiscal revenne: Direct taxes Indirect taxes Mixed and domainal: Monopolies Domainal and various Total Estimate of taxes. Prancs. 440. 000, 000 1, 803, 000, 000 5S0, 000, 000 76, 000, 000 2, 899, 000, 000 Propor- tional part. Per cent 15 62 20 3 According to an English parliamentary inquiry of 1881, the respective proportions of domainal, iiscal, and mixed revenues in different Euro- pean countries were then as follows : Country. France... Sweden . . Italy Denmark Austria. . Portugal. Kussia ... Hungary. Belgium . Propo7-tion of purely fiscal revenues. Direct. Per cent. 15 17 31 20 22 21 20 40 16 Indirect. Per cent. 74 72 67 67 64 62 61 38 38 Total. Proportion of domainal to other taxes. Per cent. . Per cent. 11 11 12 13 14 17 19 22 40 According to a compilation made by a French fiaancial authority, Mr. de Kaufman, the purely fiscal revenues are estimated by him in — Country. Austria England Spain France Netherlands Switzerland. Kussia Italy Per cent. Country. X>enmark Hungary. Sweden-. Portugal. Belgium . 3^orway.- Prussia.. PerceuT. 71 67 61 58 53 40 37 This divergence between the two above estimates only proves how diflflcult it is to make comparisons iu the matter of budgets. General organization of direct taxes. — On January l,1887,there were in France 5,278 tax collectors. Direct and assimilated taxes can be paid in twelfths, or monthly. The expenses for collecting the taxes amounted in 1828 to .5 per cent.; in 1876 to 3.5 per cent., and in 1884 to 3.7 per cent. 338 REPORTS ON TAXATION. The following table shows the amount of yearly direct taxes, includ- ing the additional centimes : Tear. Part of state. Part of local budget. Total. ' Tear. Part of state. Part of local budget. Total. 1820 1830 1840 1860 1860 France. 300. 000, 000 250, 000, 000 295, 000, 000 301, 000, 000 301, OOll, 000 Francs. 69, 000, 000 80, 000, 000 100. 000, 000 131,000,000 176, 000, 000 Francs. 309, 000, 000 330, 000, 000 395. 000, 000 432, 000, 000 480, 000, 000 1870 1875 1880 1885 1887* Francs. 345, 000, 000 396, 000, 000 488, 000, OOO 406, 000, 000 403, 000, 000 Francs. 249, 000, 000 287, 000, 000 318, 000, 000 350, 000, 000 364, 000, 000 Francs. 585, 000, 000 683, OOO, 000 706,000,000 755, 000, 000 767,000,000 * Estimated. To the 767,000,000 produced by direct taxation have to be added about 29,000,000 of assimilated taxes (described hereafter), of which Algeria furnishes about 14,000,000, making 810,000,000 in all. The dog tax, being also a direct tax, is not included, being levied by the communes. The four direct taxes, viz, real estate, personal and mobiliary, door, and windows, and licenses (Patentes), bring a revenue as follows : Keal estate Personal and mobiliary Doorb and windows — License (Patents) Part of state. Francs. 180, 000, 000 71, 000, 000 47, 000, 000 105, 000, 000 403, 000, 000 Part local budget. Francs. 197, 000, oro 66, 000, 000 32, 000, 000 69, 000, 000 364, 000, 000 Total. Francs. 377, 000, 000 137, 000, 000 79, 000, OUO 174, 000, oon 767, 000, 000 Eeal-estate tax is laid in principle upon the net taxable revenue of Improved and unimproved (baties et non baties) estates. This is. a tax of repartition, viz, legislation fixes the sum required to be levied, and this amount is then apportioned to the departments, ar- rondissements, and commuues, each commune partitioning the tax to be levied amongst the prop erty owners of houses and lands. Great complaints exist regarding the inequality of taxation, running for instance from 2.5 per cent, of the annual revenue in the department of Haute Savoy and Aude, to 7.2 in the department of Hautes Alpes, with glaring examples of 29.6 per cent, ou the property of Montus- sau (Girondo) to .47 on the celebrated Mont Mishel (department de la Manche) Personal and mobiliary tax— In 1885 there were 1,706,260 payers of personal tax, 235,063 of mobiliary tax only, and 6,462,935 paying both personal and mobiliary tax. Cities having an octroi may claim an authorization to add to it a part of their quota of personal and mobiliary tax, in order to be able to ex- empt rents below a certain amount. This is always done in Pari.s, where rents marked less than 400 francs (or really 500 francs) are exempt, adding from 7i to llj per cent, to all rents taxable above 600, 700, 800, 900, 1,000 francs, which amounts rep- resent four-iifths of the actual rent. FRANCE. The following table gives the progressive taxation : 339 Xoar. Partof state. Local bud- set. Total. Year. Part of state. Local bud- get. Total. 1820 1830 isto 1830 , 1860 Francs. 37, 000, 000 31,000,0^0 41, OliO, 000 41, 000, 000 41, 000, 000 Francs. 9, 000, 000 10. 000, 000 16,000,000 21, 000, 000 27, 000, 000 Francs. 46, OOU, 000 41, OOU, OUO 57, 00(1, 000 62, 000, 000 71,000,000 1870 1875 ...... 1880 1884 1887 Francs. 54, 000, 000 57, 000. 000 63, 000, OOU 68, 000, 1100 71, 000, 000 Francs. 39, 000, 000 48, 000, 000 RH, OOU, 000 60. 000, 000 66, 000, 000 Francs. 93, 000, 000 105, 000, 000 116, 000, 000 128, 000, 000 137, OOO, OOO Door and window tax originated by law 4 Frimaire, year VII, in imi- tation of the English window tax, and is regulated both according to the number of openings and to the population of the respective com- munes. Including the additional centimes the proceeds of this tax were as fol- lows : Year. Part of state. Local bud- get. Total. Year. Part of state. Local bud- get. Total. 1820 1830 181U 1S60 1800 Francs. 20, 000, 000 In, 000. 000 30, 000, 000 29, 000, OOU 33, 000, 000 Francs. 1. OOU, 000 1, 000, OOU 5, 000, 1,00 7, 000. 000 11,000,000 Francs. 21,000,0:10 16, OUO, 000 31,00 1,000 3G. 000, OOU 44, OOU, 000 1870 1875 1880 1884 1887 Francs. 39, 000. OiC 40, 000, 000 43, 000, 000 40, 000, 000 47, OUO, 000 Francs. 18,000,000 24, 000, 000 27, 000, 000 30, 000, OOU 32, 000, 000 Francs. 57, OUO, OOO 6(, UO 1, UUO 70, 000, 000 70, OUO,'01)0 79, 000, 000 License tax, or " Paten tes," was originated in 1791, and replace 1 the taxes of "Maitrises and Jurandes," imposed by guilds and tradesmens' companies, and is a tax of quota levied upon merchants, tradesmen, manufacturers, etc. The precent license tax is regulated by the law of the 16th of July, 1880, not in accord with the estimated profits of such tax-payers, but accordin;.j to the nature and importance of the business, the rentable value of their business premises, machinery, nnmber of employes, etc. Including the general additional centimes and those levied by the de- partments and communes, the amount of the license (Patentes) tax has been — Year. Part of state. 1820. ,. 18.10 .. 1810 .. 1850--. 1860... Francs. 19, 000, 000 24, 000, OOU 31,000.000 H4. 000, 000 51,001,000 Local bud- get. Francs. S. OOU, 00,1 4, 000, 000 9,000,00 1 14, OOU. 000 26, 000, OOU Total. Francs. 22, OUO, 000 28, OOU, 000 40, 000, 000 48, 000, 000 80, 000, 000 Year. iPartof state. j Francs. 1870 j 70.000,000 1875 1 116, OOU, UOO 1880 ' 104,0011,1)00 1881 ! 106 1100,000 1887* 105,000,000 Local bud- get. Francs. 42, 000, 000 62, 000, 000 61. OUO OUO 64. 000 000 69, 000, 000 Total. Francs. 112.000,000 177, 000, OUO 165, OOU, 000 170, 000, UOO 174, 000, 000 The average tax for license was, in— * Estimated. Pranes.' 35 1870 44 1881 ... 47 Table A. (oidinarv mercliauts and raeclianlcs) 36 Tjib!6B(hifrli commerce) 442 Table tj (in 000 000 1810 1R20 1830 1840 178 000 000 1850 1800 171 000 000 1«70 1.54, 000, 000 268 000 000 1875 . . . 1880 367 000 000 1885 . . 1886 «375, 000, 000 *In the latter sum of 375,000,000 francs, the duties levied in Algeria of 10,000,000 are included. The articles which have principally paid these import duties were as follows : 1880. 1885. 1880. 1885. Francs. 90, 000, 000 87, 000, 000 21,000,000 25, 000, 000 Francs. 107, 000, OOO 100, 000, 000 27, 000, 000 16, 000, 000 Francs. 11,000,000 11,000,000 12,000,000 '.), 000, 000 8, 000, 000 Francs. 13, 000, 000 foreign aud colonial so- Coal and colce 12 000, 000 Bread.stiiffs 11.000.000 Petroleum and schist - . - . Wines (Jotton goods Worsted goods 9, 000, 000 9, 000, 000 344 REPORTS ON TAXATION. Sugar.— The law of July 19, 1880, reduced the tax in France to 40 francs per 100 kilograms pure sugar. The law of July 14, 1884, raised it theoretically to 50 francs, but giving the manufacturers the choice of two ways of paying the duty. Those who continue to pay ou the quantity of pure sugar actually produced enjoy a drawback of 8 per cent., which reduces the tax for them to 46 francs until August, 1887, included. Others pay the tax not on the weight of the sugar produced, but on the weight of the beets used at the rate of 3 francs per 100 kilograms if by the improved process of diffusion, and at the rate of 2| francs only if they still use presses. This inequality will disappear on the 1st of September next ; then the tax will be 3j francs for all " compounding" (abonne's) manufacturers, which tax will be gradually raised to 3.J francs by the 1st September, 1890. At the actual rate the tax will only amount to 50 francs per 100 kilo- grams sugar if the beets, treated by the diffusion process, give only G pounds of sugar of 100 pounds of beets used; but by choosing rich beets much above per cent, of sugar may be obtained, and the theoretrical or nominal tax of -50 francs has been really reduced since 1884-'85 by U francs, and in 1885-'SG by 13 francs per 100 kilograms. Finally, beet-root and foreign cane sugar pay an additional tax of ■ 7 francs (raised 3 francs by the law of 1884), and on French colonial sugar, imported direct from the colony, a rebate (dechetde fabrication) is allowed of 12 per cent. These combined reforms have necessarily diminished the duties very materialli' (in the interior), as seen by the following table : Tear. Duty on colonial and foreij^n sugar. Taxes on honi'i- made. Total, de- ducting export re- bate. Tear. Buty on culunial andforeijrn sugar. Taxes on home- made. Total, de- ducting export re- bate. 1820 Francs. 26, 000, 000 34, 000, Olio 33, 000, OOO 42,000,000 54. 000, (100 48, COO, 000 62, 000, 000 France. Francs. 2o, 000. 000 24, 000, 000 38,0110,000 57, 000, 000 50, 000, 000 103,000,0(10 181, 000, 000 '1880 1881 Francx. 88. 00,1, 000 00, 000, 000 65, liOII. 000 Fratics. 91,000.000 75, 000. 000 82, 000, 000 9.), 000, OOO 101,000,000 70, (100. 000 91,000,000 Francs. 1830 136, DUO. 000 148. 000, 000 148, 000, Olio 170, 000, OOO 170, 000, (100 138, 000, 000 1840 5, 000, 000 31,000,000 .S8, 000, 000 65, 000. 000 110, 000, 000 1682 1883 1850 1860 1870 .. . 1881 18S5 (iO, 000, imo 1011, 000, 000 47, 000, 000 1875 1SS6 A ministerial project exists at present to increa e the tax again 20 per cent, to retrieve the recent loss. The consumption of sugar in France amounted to — Tear. Kilograms. Tons. 1825 50, 600. 000 100, Olio, 000 200, 000, 000 50, 000 100, 000 200, 001) J840 1860 During the last few years the consumption has been 350,000,000 kilo- grams (350,000 tons) or about 10.30 American pounds per head. FRANCE, Salt— The successive tax ou salt has beeu : 345 Tear. Import duty. Internal revenue. Total. Tear. Import duty. Internal revenue. Total. 1810 Francs. 48. 000, 000 53, WO, 000 51, 000, 000 57, 000, 000 21, 000, 000 30, 000, 000 Francs. 8, 000, 000 6, OOO, 000 7, 000, 000 8, 000, 000 6, 000, 000 10, 000, 000 Francs. 54, 000, 000 59, 000, 000 58, 000, 000 65, 000, 000 26, 000, 000 40, 000, 000 1870 1875 Francs. 24, 000, 000 25, 000, 000 18,000,000 23, 0(10, 000 23, 000, 000 Francs. 7, 000, 000 10, 000, 000 14, 000, 000 9, 000, 000 9, 000, 000 Francs. 1820 1830 1840 32, 000, 000 32, 000, 000 1850 1886 1860 Certain exemptions or rebates have been allowed for salt used for agricultural purposes and for (agricultural) pursuits industrial, such as used for salting of meats a,nd fish and lor the manufacture of soda. The administration of indirect taxes is also charged with the exploi- tation of the three monopolies, with the collection of the internal revenue or excise tax on alcoholic beverages, on vinegar, oil, and caudles, the transport by railroads and public vehicles, with the assay guaranty of gold and silver ware, as well as the tax on playing cards. A large •number of manufacturers, thus subject to a state control, have to pay a license or supplementary patent tax, which might be classed among the direct taxes if the mode of levying them were different. The following table shows the total of all indirect taxes : Tear. Sugar and salt customs extra. Excise beverages. Monopolies, tobacco, powder, and matclies. Total. 1801 Francs. Francs. 1, 000, 000 117. 000, 000 12i; 000, 000 124, 000, 000 124, 000, 000 143, 000, 000 233, 000, 000 276, 000, 000 585, 000, 000 601, 000, 000 581, 000, 000 576, 000, 000 593, 000, 000 596, 000, 000 581, COO, OOJ 570, 000, 000 Francs. 1, 000, 000 21, 000, 000 68, 000, 000 71,000,000 101, 000, 000 128, 000, 000 203, 000, 000 254, 000, 000 343, 000, 000 373, 000, 000 385, 000, 000 393, 000. 000 402, 000, 000 407, 000, 000 405, 000, 000 401, 000, 000 Francs. 2. 000, 000 1810 7, OOO, 000 6, 000, 000 7, 000, 000 13, 000, 000 36, 000, OOO 47, 000, 000 62, 000, 000 130, 000, 000 105, 000, 000 88, 000, 000 94, OOO, 000 105, 000, 000 112, 000, 000 79, 000, 000 100, 000, 000 145, 000, 000 1820 195, OdO, 000 202, 000 000 1830 1840 238, 000, 000 1850 307. 000, 000 1860 483, 000, 000 1870 ' 592 000,000 1875 . . . 1, 058, OOO, 000 1880 1, 079, 000, 000 1881 1. 0.54, 000, OOO 1882 1, 063, 000, 000 1883 1, 100, 000, 000 1884.... 1, 115, 000, 000 1885 1, 068, 000, OOO 1886 1, 071, 000, 000 These taxes of 1,068,000,000 in 1885 were composed of— Francs. Sugar (not included in custom duties) 91,000,000 Salt 9,000,000 Wines, cider, beer, alcohol (licenses not included) 413,000,000 Oil ■ 3,000,000 Vinegar 3,000,000 Candles and stearine 9,000,000 Paper tax (the last year of its existence) 9,000,000 Railroad express trains. 87,000, 000 Pablio conveyances 5> 000, 000 Licenses, guaranties, and playing-cards 40, 000, 000 Tobacco-! .....:. '- 339,000,000 Powder and dynamite 13,000,100 Matches 17,000,000 Total 1,068,000,000 346 REPORTS ON TAXATION. The amount of taxes levied by thc'state ou alcoliolic liquors, wines, cider, beer, license tax included — Tear. Alcohol. "Wiue and cider. Beer. Licenses. Total. 1830 Francs. 20, 000, 000 22, 000, 000 24, 000, 000 64, 000, 000 84, 000, 000 171, 000, OOO 196, 000, 000 241; 000, 000 237, 000, 000 Francs. 70, 000, 000 58, 000, 000 67, 000, 000 97, 000, 000 120, 000, 000 189,000,000 201,000,000 149, 000, 000 147, 000, 000 Francs. 8, 000, 000 10, 000, 000 9, 000, 000 15, 000, 000 15, 000, 000 21, 000, 000 20, 000, 000 22, 000. 000 22, 000, 000 Francs. 5, 000, 000 6. 000, 000 8, 000, 000 8, 000, 000 8, 000, 000 16, 000, 000 16, 000, OOO 17, 000, 000 17, 000, 000 Francs. 103,000,000 1840 96. 000, 000 1850 108, 000, 000 I860 - 184. 000, 000 1870 227, OOU, 000 1875 . 397, 000, 000 1880 433, 000, 000 1885 429, 0011, OOO 1886 423,000,000 Spirits, alcohol, liquors, etc., pay (1) in all France a uniform tax of consumption ; (2) in cities over 4,000,000 souls an entry tax (tax d' m- tr6e) graduated according to the population. The rate of the consumption tax has varied very much. It was, be- fore 1830, 50 francs per hectoliters pure spirit; from 1830 to 1855, 34; 1855 to I860, 50; 1860 to 1871, 75; 1873, 125, and with the d6cimes 156.25 francs per hectoliter. The tax of entry is from 7^ to 30 francs per hectoliter pure alcohol ; thus in Paris with the city octroi 266.05 francs; in Lyons 217.25 francs, etc., per hectoliter. In 1884 the general tax of consumption was levied on 1,498,000 hec- toliters pure alcohol, subdivided into — Brandy (27,000 in bottles) 965,000 Kirsch and rhum 119,000 Bitters 34,000 Absinthe i50,000 Liqueurs 73,000 Brandy fruits 70,000 Perfumed spirits 2, 000 These 1,498,000 hectoliters alcohol were further divided — Comraunes less tkau 4, 000. Citiesof 4, 000 to 10, 000. Cities over 10, 000. Total. Ketailed elsewhere than Paris 749, 000 98, 000 155, 000 16, 000 314, 000 41, 000 148, 000 1,188,0«0 ConRiinied elsewhere than Paris •153, 000 148, 000 845, 000 141,000 503, 000 1, 489, 000 *The tigare of 153,000 represents private consumers outside of Paris buying from -wholesale dealors, In 1884 the taxes on wine and cider were — Wine. Cider. Total. Ta"^ of circulation Fra ne.v. 25.7 1.7 39.5 28. B 42.7 Francs. 2.5 0.5 7.1 3.5 1.4 Francs. 28.2 Tax of entry 2.2 46.6 32.4 Tax Paris and Lyons 44.1 138.5 15.0 153.5 iKAJNUJi. 347 Beer is taxed uDiformly with 3.75 francs per liectol iter son strong beer, and 1.25 francs on ligtit beer. In Paris the octroi on beer is 15 francs per hectoliter. Vinegar, oil, candles. — Vinegar and acetic acids, according to law of July 17, 1874, pay a tax of consumption varying, according to the pro- portion of acetic acid, from 5 to 52J francs per hectoliter of vinegar, and 62J francs per 100 kilograms crystallized acetic acid. Mineral oil pays a tax on the manufacturing varying, according to its more or less purity and density, from 10 to 44^ francs per 100 kilograms; the total tax amount is insignificant. A tax of 30 francs per 100 kilograms has been laid on candles and wax by law of December 30, 1873. The proceeds of these three taxes were (in francs) as follows : Tear. Vinegar. Oil not mineral. Candles. Tear. Vinegar. Oil not mineral. Candles. 1875 1,100.000 2, 400, OUO 5, 800, 000 3, 40J, 000 6, sno, 000 7, 900, OOO 1885 2, 700, 000 2, 900, 000 2, 800, 000 2, 600, 000 8, 800, 000 8, 700, 000 1880 1886 'Railways and public conveyances. — The law of 1871 brought the tax on railways up to 23.2 per cent, of their net receipts, or twenty-nine one hundred and fifty-fourths of their gross receipts on trains at express speed, and the law of March 2, 1874, repealed the tax of 5 per cent, on slow trains. Stages and water transport by regular carriers pay 22J per cent, of their net or nine forty-ninths of their gross receipts on fares over one- half franc, and 12 per cent, of the net or three twenty-eighths of their gross receipts on fares below one half franc. Public conveyances by land and water running only occasionally, and at a speed they please, pay a fixed tax of from 50 to 137 J francs for ve- hicles of from 1 to 6 seats, with a supplementary tax of 12J, 6;^, and 3.12J irancs for each additional seat, according as there may be from 6 to 50 places in vehicles, and from 50 to 150 and above on boats. The following table gives the tax (in francs) levied upon railways, express and ordinary speed, and upon public conveyances : Tear. Railways. Public con- veyances, land and water. Tear Railways. Public con- veyances. Express. Ordinary. Express. Ordinary. land and water. 1840 8, 000, 000 7, 000, 000 6, 000, 000 5. 000, 000 1875 24, 000, OOO 71, 000, 000 85, 000, 000 87, 000, 000 25, 000, 000 25, 000, 000 25, 000, 000 25, 000, 000 6, 000, OOO 4. 000, 000 1850 2, 000, 000 20, 000, 000 24, 000, 090 1880 1860 1885 5, OUO, 000 5, 000, 000 1870 1886 The paper tax, now abolished, produced (in francs) — Tear. Tax on man- ufacturers. Surtax on news- papers. Total. Tear. Taxonman- ufactnrers. Surtax on news- papers. Total. 1872 8, 600, 000 10, 000, 000 12, 500, 000 2, 000, 000 2, 300, 000 3, 900, 000 10, 600, 000 12, 300, 000 10, 400, 000 1885 14, 100, 000 9, 000, 000 3, 900, 000 3, 900, 000 14, 100, 000 1875 1886 9, 000, 000 1880 348 REPORTS QN TAXATION. Assay guaranty. — The stamp obligatory on all gold and silver ware costs 37| francs per hectogram on gold, and 2 francs on silver. It amounted in 1885 to 5,000,000 francs on 74,500 kilograms of silver and 9,400 kilograms gold. There were, in 1884, 1,784 manufacturers of jew- elry, 465 manufacturers of watches, and 13,987 gold and silver smiths. Playing-cards, by law of the third Pluvi6se, year VI, pay .625 franc per pack with French and .875 franc with foreign faces, and the tax amounted in 1885 to nearly 2,500,000 francs for 3,751,000 packs French and 68,930 foreign faces. License, which tax existed already before 1789, under the name of " annual tax," is a sort of supplementary patent tax on industries placed under Government supervision. The present tariff is — Kind of license. Ketailers of beveragi? and oil, estab- lisbed in conimunes of — Loss than 4,000 souls 4,000 to 6,000 souls 0,000 to 10,000 .souls 30,000 10 lii.OOO souls 15,000 to 20,000 souls 20,000 to 30,000 souls 30,000 to 50,000 souls over 60, 000 Paris Peddlers of beverages on back of an- imals Peddlers of beverages on carts and vebicles Yearly amount of tax,decinies| included Francs. 15 20 25 30 •,!5 40 45 50 Free. 15 125 Kind of license. Yearly amount of tax.d^ciines included. Brewers, according to the depart- ments llrowers and distillers of profession.. Wholesale liquor dealers Manfacturers of — Playing-cards Saltpeter Sugar or glucose Paper ■ Candles and stearine Vinegar and acetic acid Public conveyances, regular service . Francs, 75 to 125 S5 12i 125 2.1 125 23 25 m 6J to 2J In 1885 the administration counted 552,000 establishments subject to state control ; 531,000 boilers of the crude of 1,792,000 proprietors mak- ing wine, and 1,035,000 making cider. These licenses produced (in francs) — Year. 1 Amount. Year. Amount. Year. Amount. 1 Year. Amount. 1810 1830 1830 1,200.000 3,100,000 : 3, 200, 000 1840 18.50 1800 3, 200, 000 4, 000, 000 4, 40'J, 000 1870 ; 1875 1 ,5, 400, 000 11,100,000 1880 1885 11,200,000 12,800,000 MIXED AND DOMAINAL REVENUES. Mixed are derived from the exploiting of monopolies, or from indus- tries not exactly monopolized but worked by the state. Monopolies of the state are the manufacture of tobacco, powder, and matches ; the postal and telegraphic service ; the coining of money, and medal department. The Government also attends to business not cov- ered by a monopoly, such as the forwarding of money and newspapers, equally performed by railroads and express companies. State industries, outside of a monopoly, are such as, since 1878, the working of some state railways, also of establishments of instructiou and learning, of the manufacture of objects of art, like Sevres china and Gobelin's tapestry, of the publication of newspapers, books, charts, also of banking and insurance operations, etc. The receipts given in the budget for 1887 (in francs), under the head 349 of proceeds of monopolies and industrial state establishments, are ( 1 ) those derived from tobacco, powder, and matches, and (2) post and tele- graphs. Gross proceeds. Total. Tear. Gross proceeds. Tear. Tobacco, powder, and matches. Postal tele- graph. Tobacco, powder, and matches. Postal tele- graph. Total. 1810 1820 1830 1840 1850 1860 21, 000, 000 68, 000, 000 71, 000, 000 101, 000, 000 128, 000, 000 203, 000, 000 25, 000, 000 23, 000, 000 34, 000, 000 46, 000, 000 44, 000, 000 66, 000, 000 46, 000, 000 91, 000, 000 105, 000, 000 147, 000, 000- 172, 000, 000 271, 000, 000 1869 1875 1880 1885 1880 268, 000, 000 326, 000, 000 313, 000, 000 405, 000, 000 399, 000, 000 106, 000, 000 137,000,000 138, 000, 000 167, 000, 000 169,000,0D0 374, 000, 000 463, 000. 000 478, 000, 000 572, 000, 000 568, 000, 000 The tobacco monopoly is by far the most important and comprises the manufacture and sale of tobacco. The cultivation of tobacco with- out being monopolized is by no means free, and permitted only in the following departments : Alpes Maritimes, Bouches-du-Eh6ne, Dordogne Gironde, lUeet-Vilaine, Landes, Lot, Lot-et- Garonne, Meurthe-et- Mo- selle, S'ord, Pas de-Calais, Hautes-lPyren^es, Haute-Savoie, Savoie, Haute Saone, and Var. The administration of the State manufactories watches with great care over the growing of tobacco, regulated by the law of December 21, 1862. The leaves can only be sold to the administration, and at prices fixed beforehand by the Government, or they must be exported. The State factories can only use one-fifth of foreign or imported tobacco. There are at present 19 tobacco manufactories in France, viz, two at Paris (Gros Oaillou and Eeuilly), one in Bordeaux, Chateau roux, Dieppe, Dijon, Havre, Lille, Le Mans, Lj'on, Marseille, Morlaix, Nancy, ifantes, Nice, Pantin, Eiom, Conneins, and Toulouse. Tobacco is sold in warehouses and in retail shops. There are two kinds of the latter. Collectors, who combine the sale of tobacco with the control of beverages, and the simple retailers, who are ap- pointed by favor of the prefects and of the minister of finance, who dis- poses of those worth more than 1,000 francs, generally allotted to widows of ofBcers or of civil dignitaries. There were, in 1884, 29,197 simple retailers and L.4,083 receiving col- lectors, or, in all, 43,280. Tobacco and cigars are sold by the Govern- ment at certain prices to retailers, who again must re-sell at prices fixed by the Government. Since 1872 ordinary smoking tobacco, snuff or chewing, is sold to re- tailers at 11 J francs per kilogram, and to consumers at 12^ francs. For certain superior qualities prices rise lo 15 francs to retailers and 10 francs to consumers. Tobacco is sold at reduced prices to hospitals, 4.40 and o francs, and to soldiers and sailors 1.30 and 1.50 francs. Near the Belgian frontier there are three zones of prices, graduated so as to make smuggling less attractive. Prices of cigars at retail run from 5 centimes (1 cent) to 60 centimes (12 cents), and the profit of the retailer varies from six-tenths centime to 4 centimes per cigar. A package of twenty cigarettes costs the con- sumer from 20 centimes to 2 francs, and the retailer makes from 1.10 to 8 francs per thousand. Bureaus of direct sale sell to the consumer by the box up to 5 francs per piece, and cigarettes up to 2J francs per package of twenty. 350 REPORTS ON TAXATION. Proceeds of the tohacco monopoli/ from 1815 lo 1884. Year. Gross re- ceipts. Expenses. Net receipts. Tear. Gross re- ceipts. Expenses. Wet ; receipts. 1815 ]8:;0 Ix.iO, ]i'40 1850 Francs. 53, 500, 000 64, 200, 000 67, 300, 000 95, 200, 000 122, 100, 000 Francs. 13, 400, 000 25, 200, 000 22, 500, UOO 31, 000, 000 26, 500, 000 Francs. 40, 500, 000 39, 000, 000 44, 700, 000 64, 200, 000 95, 600, 000 1860 1869 1875 1880 1884 France. 195, 300, 000 25.5, 700, 000 ai3,600, 000 346, 100, 000 377, 600, 000 Francs. 58, 200, 000 53, 2O0, 000 57, 800, OOO 60, 500, 000 72, 600, 000 Francs. 137,100,000 202, 500, 000 255, OOU, 000 285, 000, 000 305, 000, 000 The highest year was 1884. The gross receipts have fallen, in 1885, below 375,000,000, and in 1886, below 370,000,000. The dif[erence, how- ever, is more in the quality than in the quantity sold. The real profit does not exactly correspond with the above net receipts, owing to the variations, from year to .year, in capital, working expenses, or supply. In 1880 and 1885, the sales as given by the administration of direct taxes (those of 1880 being actual and of 1886 estimated), were — Quai tity. Amonnt. 1880. 1885. 1880. 1885. Kilos. 3, 300, 000 800, 000 6, 800, 000 13, 400, 000 700, 000 500, OflO 7, 800, OOU 200, 000 Kilos. 3,6uo; 000 800, 000 6, 500, 000 15, 400, 000 700, 000 500, 000 8, 500, 000 200, 000 Francs. 54, 000, 000 13, 600, UOO 77, 900, 000 154, 8110, 000 8, 300, 000 5, 800. 000 23, lOO; 000 6, 700, 000 Francs. 58, 5110, 000 17, 400, 000 Snuff 74,400,000 178, 800 000 8, 500, 000 5, 400, 000 24, 400, 0011 Direct sales and exports 7, 000, 000 Total 33, 500, 000 36, 200, 000 344, 200, 000 374, 400, 000 *Tlie regie counts 250 cigars and 1,000 cigarettes to the Itilogram. The total expense for tobacco in France, including the profit to the retailer, amounts to 400,000,000 francs a year. Powder. — The factories are under the administration of the minister of war. The relative sales have been as follows : Tear. • Eeceipts. Expenses. Profits. Tear. Receipts. Expenses. Profits. 1820 3, 600, 000 4, 2U0, 000 5, 600, 000 5, 900, 000 10, 300, 000 2,200,000 2, 300, 000 2, 600, 000 2, 100, 000 5, 100, 000 1, 300, 000 1, 700, 000 3, 000, 000 3, 600, 000 6, 400, 000 1865 1869 12, 400, 000 13, 000, 000 13, 500, 000 13, 500, 000 5, 400, 000 3, 000, 000 7, 000, 000 1840 1875 1850 1850 1^60 The law of 1871 doubled the price of shooting powder, hence consump- tion fell from 403,000 to 183,000 kilograms in 1872. In 1885 the sales'were^^ Items. Quantity. Amount. Shooting powder Blasting powder other powder, cartridges and export Kilo. 491,000 2,815,000 1, 104, 000 Francs. 6,000,000 0,300,000 1, 600, 000 FRANCE. 351 Dynamite is manufactured by private enterprises under G-overnment control, but pays 2 francs per kilogram tax, and nitro-glycerine 4 francs. The consumption which, in 1883, was 645,000 kilograms, fell in 1885 to 448,000 kilograms, of which 774 kilograms were nitroglycerine. The privilege of manufacturing matches, by law August 2, 1872, a monopoly, has been let for 17,000,000 francs a year to a private company, after paying 32,500,000 of damages to private manufacturers. No country would put up with the quality of matches sold in France ; they are simply execrable. Postal and telegrapMo service iefore 1878. Year. Receipts. Expenses. Not reve- nue. Year. Receipts. Expenses. Net reve- nue. 1801 Francs. 17. OOO, 000 2.5, 000, 000 23, 000, 000 34, 000, 000 46, 000, 000 Francs. 9, 000, ono 14, 000, 000 11,000,000 19, 000, ono 25, 000, 000 Irancs. 8, 000, 000 11, 000, 000 12, 000, OOO 15, 000, 000 21, 000, 000 Francs. 43, 000, OOO 63, 000, 000 95, OOO, 000 119, 000, 000 120, COO, 000 Francs. 33, 000, 01)0 40, 000, 000 65, 00(1, 000 69, 000, 000 72, 000, 000 Fra7ic8 20. 000, 000 23, 000, ono 1X10 1820 1860 1.S69 1830 1875 1840 1877 48, OOU, 000 After the reduction made in 1878 in postages the gross receipts fell off' 18,000,000, but recovered again in — Year. Eevenne. Year. Revenue. 1878 Francs. 102, 000, 000 ' 105,000,000 ; 113,000,000 124,000,000 ' 126,000,000 1883 Francs. 132, 000. Of 1879 18P4 1880 1885 '. 140 ono 000 1881 1886 142, 000, 000 1882 But expenses rose also very rapidly, so that the net revenue is now only 20,000,000 to 30,000,000 francs. Considering that the railways have to carry the mails gratuitously, which, according to the estimate of the minister of public works, amounts to considerable more than the 20,000,000 or 30,000,000 francs net postal receipts (57,000,000 francs in 18S4), it is evident that the postal service does not really cover ex- penses. Postal telegraphic service conMned since 1877, Year. Receipts. Ordinary ex- penses. Net receipts. Proportion of net re- ceipts to expenses. 1877 • .. . Francs. 139, 000, 000 123, 000, 000 127, 000, 000 138, 000, 000 153, 000, 000 155, 000, 000 101, 000, 000 163, 000, 000 167, 000, 000 Francs. 01, 500, 000 98, 000, 000 106, 000, 000 109, 000, 000 118, 000, 00(7 124, OOn, 000 133, 000. 000 135, 000, 000 137, 000, 000 Francs. 47, 300, 000 25, 000, 000 21, 000, 000 29, 000, 000 35, 000. 000 31,000,000 28. 000. 000 28, OOO, 000 30, 000, 000 Per cent. 51 1878 25 1879 . . 18 1880 26 1881 29 1882 24 1883 21 1884 21 1883 22 Coinage is reserved as a monopoly by the State. The profit arises mainly from fractional silver and bronze coinage, and amounts to a rev- enue seldom exceeding 100,000 francs (91,000 francs estimated for 1887). 352 REPORTS ON TAXATION. National Printing Office. — All public departments have to have their printiug done there ; it may also work for other persons with permission of the minister of justice. Its revenue in 1864 was 303,000 francs, esti- mated in 1887, 163,500 francs. Official newspaper. — Gross revenue in 1884, 1,037,000 francs; esti- mated in 1887, 900,000 francs. State railways.— T?vo&ts in 1884, 3,778,000; estimated iu 1887, 4,880,000 • francs. DOMAINAL EEVENTJE. Revenues of State forests. Year. Receipts. Expenses. Net reve- nue. Tear. Receipts. Expenses. Net reve- nue. 1820 Francs. 17, 800, 000 27, 100, 000 33, 200, 000 32, 900, 000 42, 000, 000 Francs. 1. 800, 000 3, 9U0, 000 5, 200, 000 6, 200, 000 7, 700, 000 Francs. 16, 000, 000 23, 200, 000 28, 000, 000 26, 700, 000 34, 300, 000 1869 Francs. 38, 800, 000 38, 700, 000 36, 200. 000 29, 400, 000 Francs. 12, 600, 000 11, 800, 000 14, 300, 000 16, 800, 000 Francs. 26,300,000 28, 900, OI'O 21, 900, 000 12,600,01,0 1830 1875 1R40 1880 ... 1850 1884 1860 The budget for 1887 estimates the gross receipts (which include shoot- ing licenses and royalties paid by the consumers for cutting of wood) at 26,700,000, 16,000,000 expenses, and less than 11,000,000 net revenue. The value of the State forests is estimated by the G-overnment at 1,263,000,000; thus the net revenue is less than 1 per cent. The estimated receipts for 1887 are as follows: Francs. Wood cutting 21,800,000 Accessories, brush, etc 3, 100, 00 Communes for R6gie 1,000,00 Sales to arsenal 200,000 Algeria 600,000 Domainal receipts from oilier State property — sales and rents. Tear. Amount. Tear. Amoont. 1801 Francs. 210, 000, 000 36, 000, 000 5, 000, 000 6, 000, 000 6, 000, 000 9, 000, 000 1860 Francs. 13,000,000 11, 000, 000 17,000,000 14, 000, 000 17, 000, 000 16,000,000 1810 1809 1820 1875 1830 1880 1840 1883 1850 With the exception of the State forests, the State domains cost more than the revenue derived from them. The administration of the regis- tering, stamp, and domains takes care of them. Various receipts. — The budget for 1887 estimates them at 37,000,000 francs, of which the most important are the following : Judicial banks for depos- its (caisse de.s d6p<)t3 and C0D8i(;nati0D8) One year's volunteers (military) Prison receipts Paid by rail ways and tramways for Gc ern- ment supervision 1884. 3, 200, OOO 6, 600, 000 5, 700, 000 3, 600, 000 1887. (estimated). U, 700, 000 6, 000, 000 5, 600, 000 4, 600, 000 Tax on inventions (pat- ent tax) Repayment of ministe- rial expenses Fees turned over b.y dip- lomatic and consular oflicers 1884. 2, 100, 000 4, 200, 000 1, 200, 000 1887. (estimatefl.) 2, 200, 000 2, 000, 000 1, 200, 000 FEANCE. 353 Moneys covered into the treasury [Becettes d'ojvZre).— The budget of 1887 estimates them at 57,000,000, such as retained upon salaries of func- tionaries and employes for provision of future pensions ; 24,900,000 on those of army ofScers and navy ; 8,000,000 money fines and penalties ; 9,400,000 collected bv universities, etc., for instruction ; gifts and dona- tions, 2,200,000; and tributes from Cochin China, 1,800,000. Also police expenses repaid to the State by the cities of Paris and Lyons, and as a memorandum figures eventual, re-imbursement by rail- way companies for advances made by the State, which guarantied the interest on their bonds. Registering or recording taxes. Sale of furniture, pevsonal proiierty, and business good-will percent.. 2 Sale of furniture and merchandise after failure do j Sale of real property do 5^ Sale of claims for debts on nominal amounts do 1 Sale of hereditary rights in real property, including personal do 5} If divided, on personal property do 2 If divided, on real property do 5^ Sale of property in litigation : If a debt do 1 If a rent or personal property do 2 If real estate do 51 Exchange of— Personal property do 2 Claims for debts do 1 Real estate do 2^ Leases for houses, farms, and cattle on shares, per 100 francs * centimes.. 20 Transfer of leases do.. .. 20 Subletting of leases do 20 Exteusion of leases do 20 Leases of furniture '. do 20 Guarantors for leases, per 100 francs do 10 Receipts for rents paid, per 100 francs do 50 Hiring domestics and workmen by the year, per 100 francs do 20 Contracts for apprentices (fixed) francs.. 1 Plans of houses do 2 Contracts for such, per 100 francs - do 1 Loans of money percent.. 1 Purchase of perpetual or life annuities do 2 Re-purchases of same do ^ Agreements without stipulation of amount of value francs.. 3 Agreements, if sum or value is specified per cent.. 1 Nomination of experts francs . . 3 Reports of same do 2 All acts of partnership or commercial associations — If signed privately do 5 If before notary do 1 Share certificates of companies or associations on nominal value — per cent.. -J If such companies are to last longer than six years do.. 1 Assignment in bankruptcy francs.. 5 Agreement in bankruptcy on amount remaining to be paid per cent . . J Patents for a patent running, in yearly payments of 100 francs- Five years francs.. 500 Ten years do.... 1,000 Fifteen years do 1,500 Judgments by arbitration — In first instance do 5 In last instance do 10 On money involved in judgment per cent.. ^ Donations or grants outside the marriage contract — Between parents and children ^ do 1 In direct line — Personal estate do 2^ Real estate do 4 * Houses being usually rented for three, six, and nine years, at the option of the tenant, pay taxes on the longest period. 354 REPORTS ON TAXATION. Donations or grants outside the marriage contract — Continued. Between husband and wife : Personal estate. percent.. 3 Real estate flo H Between brothers and sisters, uncles and aunts, nephews and nieces : . Personal estate il" ^i Real estate do.... 6i Between great uncles and aunts, grand nephews and neices, and first cousins, personal and real -- per cent . . 7 Relations from fourth to twelfth degree do 8 No relations s do 9 Donations by marriage contract: In direct line : Personal estate do 1 J , Real estate do 2| Between married couples: Personal do 1^ Real do 3 Brothers and sisters, uncles and aunts, nephews and nieces, personal and real ^ per cent.. 4^ Great uncles and aunts, grand nephews and nieces, first cousins, personal and real per cent.. 5 Relations from fourth to twelfth degree, personal and real do 5^ No relations do 6 Mutation by death: Direct line, personal and real do 1 Between husband and wife, personal and real do 3 Between brother and sister, uncle and aunt, nephew and niece, personal and real per cent'.. 6^ Between great uncles and aunts, grand nephews and nieces, and first cousins, personal and real ....per cent.. 7 Between relations from fourth to twelfth degree do 8 Between persons not related do 9 Stamp duty. Stamped paper : Francs. One-half sheet • - 50 Small sheet 1.00 Middling - 1.50 Large 2.00 Largest 3.00 The proportional stamp tax is levied upon bills of exchange, promis- sory notes, and all negotiable paper according to the following tariff: Centimea. 100 francs or less , 5 100 francs to 200 10 200 francs to 300 15 300 francs to 400 20 400 francs to 500 25 500 francs to 1,000 50 1,000 francs to 2,000 1.00 2,000 francs to 3,000 1.50 3,000 francs to 4,000 '. 2.00 And so forth in the same ratio. Railway receipts, registered letters, money receipts for sums over 10 francs pay 20 centimes stamp. All notes of hand, negotiable or not negotiable obligations, etc., have to be written on stamped paper of the proportionate description. All other acts, public or i^rivate, susceptible of being produced in court for justificatioD, demand, defense, petition, memorandum, etc, on paper of a fixed rate. FRANCE. 355 Door and window tax. [Art. 24. From the 1st of January, 1832, the door andwiudow tax is levied by re- partition between the departments, arroadissements, communes, and tax-payers ac- cording to the subjoined tariff, excepting contingencies.] lln francs.] For houaea with — For housea with six or "£'2 •a ■ k ^ !=-si ^ ■g.sg O H H Ph h o .30 .45 .90 1.60 2. 50 1.60 .60 .60 5,000 to 10, 000 .40 .60 1.35 2.20 3.25 3.50 .75 .75 . SO .80 1.80 2.80 4.00 7.40 .90 .75 2.=j,000 to 50,000. .60 1.00 2.70 4.00 5.60 11.20 1.20 .75 5il 000 to 100 000 . 80 1.20 3.60 6.20 7.00 15.00 1.60 .75 Over 100 000 1.00 1.60 4.50 6.40 8.50 18.80 1.80 .75 In cities and communes of over 5,000 inhabitants the tax correspond- ing with the number of population applies only to the dwellings within the octroi lines; those outside are classed as rural communes. The councils general apportion the contingent amount due by each department among the communes through the councils of arrondisse- raent. The director of the direct taxes prepares every year a table giving (1) the number of taxable openings of each class; (2) the product of the taxes according to the tariff, and (.3) the projected apportionment. Only one gate for vehicles is taxable on farms or granges, or any other agricultural premises. The gates for veliicles in houses, from one to five openings, are taxa- ble only as ordinary doors. Mansard windows and others giving light to inhabited rooms are taxable. Functionaries, clergy, civil and military employes, though lodged gratuitously in honses .belonging to the state departments, arrondisse- meuts, communes, or hospitals, are taxed for doors and windows. Every five years a new project of apportionment of personal as well as mobiliary and doors and window tax is to be submitted to the cham- bers. Direct taxes levied in France for labT. By law of the 19th of July, 1886, the sam total of all direct taxes levied for the year are as follows, for general expenses : Francs. Franca. Real estate not built up Real estate built up Personal and mobiliary tax Boors and windows Licenses (paten tes) Tase do ler avertissement . 118, 570, 000 61,400,000 71, 136, 000 47, 130, GOO 104, 005, liUO 016, 500 131,688,040 85, 033, 000 0.5, 761, 610 32,2)8,188 69, 640, 838 423, 600 230, 258. 040 126, 433, 000 138,897,010 79, 348, 788 174, 446 438 104, 000 403, 758, 700 j 364, 665, 176 768, 423, 876 Directtaxes to bi applied lo .apecial credits : To public instruction, l.'i,295, 760 francs : department ofthe interior, 153,120 S2i) francs ; department of agriculture, 3,407,700 fi'iiucs ; department of finance, 188,840,896 francs. 138— No. 99—7 356 EEPORTS t)N TAXATION. The heaviest taxed departments are as follows ; Department. Seine (Paris) Kord (Lille, Dunkerque, Cambrai, Valencienues, etc.) Seiiie-Itif6riurro (Havre and Kouen) KhOn6(Lyons) -■-- Gironde (Bordeaux) Boaches-du-RhCtne (Mar- seilles) Popnla- tion. 2, 799, 329 1, 603, 259 833, 386 741, 470 748, 703 589, 028 Tax per bead. Francs. 13.33 11.07 7.85 7.35 I Heal eatate- Not built on. Francs- 283, 057 2, 945, 837 3, 190, 358 Personal and mobil- Built on. Francs. 16, 969, 132 2, 482, 913 2, 723. 251 Doors and windows. Frkncs. 12, 907, 721 2, 213, 674 1, 739, 407 Fraruis. 7, 179, 934 2, 317, 974 1, 571, 339 TotaL Francs, 37, 339, 844 9, 960, 398 9, 224, 355 5, 824, 630 5, 504, 453 5, 128, 277 Next to Paris Havre is the heaviest taxed city, taxes, 1 franc, octroi, etc. Departmental direct Tarif of Octroi, Savre. Liquids and liquors ; Wine in casks and bottles < hectoliter. ..4. 80 ^surtax 48 Cider, pear cider, and mead per hectoliter.. Pure alcohol contained in wine spirit in casks audi hectoliter 24 } bottles, absinthe and spirit in preaeryed fruit ( surtax 20 5 .Alcohol denaturalized hectoliter.. Strong beer do Small beer do Gaseous waters, natural and artificial limouade of all sorts do Wine vinegar, cider, or pear vinegar, beer, grain or molasses vinegar, sirups of all sorts, elder wine, fruit juice, etc hectoliter.. Provisions and eatables: Fresh meat, such as bulls, beef, cow, veal, heifer, goat, mutton, sheep, and lamb per 100 kilos.. Fresh meat of pork, sow, or sucking iiig do Meat cooked or preserved in any manner, ham, sausages, black pudding or white, and all kinds of prepared meat or pork per 10() kilos . . Sardines, anchovies, mackerel, herring, and other fish preserved in oil, butter, pickled , and pickled oysters pef 100 kilos . . Fresh fish and shell-fish: Publicly sold ' per franc. Not publicly sold per kilo.. Oysters of any kind or origin per 100 kilos.. Roosters, chickens, capons, ducks, ducklings, etc per piece . . Geese or goslings, rabbits, partridges, snipe, plovers, turkeys, hares, wild turkeys, etc per peice.. Pheasants, woodcock, outardes do Pigeons of any sort, quail, wood-pigeon, rails do Thrush, larks, black-birds, starlings, and other small birds -- -per dozen-- Deer, roe-buck, wild-boar, and young boar: Entire per piece.. Cut up per kilo.. Terrines, pasty, cooked or uncooked, of meat, venison, fish, or other ali- mentary substances from abroad per kilo.. Meat, preparations of pork, poultry, and venison pasties and terrines, of any sort, truffled, open, or covered ])er kilo.. Small peas, beans preserved in butter or any other substance do Truffles do Oranges, lemons, cedrat per 100 kilos.. Chestnuts do Dried fruit, prunes, raisins, dates, pears, apples, olives, almonds, nuts, hazel nnts, and similar fruit ...per 100 kilos.. rrancfl. 5.^8 1.50 .44 7. SO 7.00 4.00 4.U) 8.00 9.00 9.00 9.00 17.00 .05 .25 1.00 .35 .50 1.50 .15 .05 5.00 .50 .60 1.00 .25 2.50 5.00 5.00 12.00 FRANCE. 357 Combustibles : Francs. Wood for beating of all kind per cubic meter.. 1.50 Kindling wood, fagots, brusb-wood (for lighting) per 100.. .20 Charcoal of all sorts per 100 kilos.. 2.00 Coal, coke, bricks made of coal, etc do 50 White or yellow wax, stearine, spermaceti candles, stearic acid, any sub- stance to replace wax from abroad per 100 kilos.. 30.00 Tallow, all sorts of grease, vegetable, animal, mineral, not eatable, of any kind per 100 kilos.. 8.00 Tallow candles ...do 9.00 Mineral oils of all kinds except petroleum do 5.00 Forage: Straw, long do SO Straw, short do 50 Hay, clover, grey peas, sainfoin, and other forage do 1. .30 Oats, tares, grey peas powdered, and other ground feeding do 2.30 Bran do 1.50 Building material: Slates of all kinds 30 by 21 by 33 centimeters or above, proportionately, per 1,000 5.00 Timbers of all sorts in bark per cubic meter.. 4.00 All sorts of timber worked, excluding packing boxes, empty casks new, cooperage, etc per cubic meter. . 5. 50 Laths (bundles of 50) per bundle.. .15 Bricks, tiles (fayence or burned), flags, etc per 1,000.. 3.50 Bricks of larger dimensions over 22 by 11 by 05, or within 833 brick to the cubic meter per 1,000.. 6.00 Bricks (refractaires) glazed ,. do 15.00 Pots and pipes (burned) : Between 15 and 22 centimeters ...per meter, running.. .20 Over 22 centimeters do 30 Tablets of fayence square meter.. 4. 00 Lime of all kinds per hectoliter.. .45 Cement of all kinds and stucco per 100 kilos . . .60 Plaster in powder or burned do 50 Building stones and granite : Eaw per cubic meter.. 3. 50 Worked do.... 5.00 Marble, raw and worked do 20. 00 Iron: Ornamental, etc. , for houses, forged per 100 kilos . . 3.50 Cast do.... 2.50 Lead, tin, zinc, rolled or shaped, all kinds do 3. 00 Window-glass do 3.50 Mirrors do 10.00 Various: Soap of all kinds do 8.00 Perfumed water (without alcohol) do 30.00 • White lead or zinc powdered or oil ground, gas residuum, or anything which could be used as essence do 11.00 Ground colors, ochre of all sorts, white of barytes, lamp-black, ivory-black, etc per 100 kilos.. 3.00 Wine containing more than 15 per cent, alcohol and not over 21 per cent, is taxed as wine and pays double tax for the quantity of alcohol contained between 15 and 21 per cent., excepting, however, alcoholized wines which when leaving the manufacturing grower show not more than 18 per cent, alcohol. Wines containing over 21 per cent, alcohol pay as alcohol. Cider apples or pears pay a tax in the proportion of 5 hectoliters of fruit for 2 hecto- liters of cider, or 25 kilograms dried fruit for 1 hectoliter cider. Small wines or water- mixed wines coming from abroad pay as wines, small cider pays for pure cider. Jars or bottles containing brandied fruits pay for contents without deducting the fruit. Living beasts of all sorts for butchers'and others must be led to the weighing office within twelve hours and octroi be paid. Beasts for the slaughter-house are weighed when entered there, the meat of bulls, cows, beef, veal, heifers, goats, mutton, sheep, lambs is taxed for 55 per cent, of the gross weight, and of pig, sow and sucking pig for 80 per cent. Fish pastry are taxed for ordinary pastry, unless truffled, when they are taxed as such ; no deduction is made for oil, butter, lard, or any other ingredient used for pre- serving meat, ijoultry, venison, tish or other preserved meats. Wood for heating purposes must bo cut or split in usual lengths and unfit for other 358 REPORTS ON TAXATION. purposes ; for dyeing free unless intended for heating. Kindling -n-ood 60 to 67 centi- meters long about one hundred to the cubic meter (stfcre) weighing 6 to 7 kilograms, more or less dry, and fagots pay proportionately. Coke mane of coal in town, which has paid octroi, free. Tallow, raw, or soap-fat, a deduction of 20 per cent, is made for loss. Wheat, rye, barley, or oats in the ear, one-third is taxed as such and two-thirds for straw. Forage, green, not taxed; cut up, taxed same as bundled. Timber for building purposes, with bark on, is measured from the middle to the bark; a quarter of the circumference forms one side of the square. The real volume in stores (cubic meter) and centisteres is taxed irrespective of customary deductions made by the trade. Bricks, broken yet usable, taxed like others. Lime, slackened and powdered, pays half tax; mixed with sand, same. Plaster, crude or in blocks, half price. Marble, being part of furniture, same as furniture, free. Water scented with extracts of flowers, orange, nedoli, thyme, bergamotte, etc., are tested for alcohol by dropping in clear water ; if the water whitens it proves the presence of alcohol. Soap, powdired, almond, rice, marshmallow pastes, and similar preparations pay 30 centimes per kilogram. lu case an article is composed of different substances differently taxed the highest tax prevails unless the declarant presents them separately. Fractious of quantity or measure pay for full. Ordinary receipts, budget 1887, condensed. Francs. Franca. Octroi in 1885: Wines and liquors 941,000 Eatables 584,000 Combustibles 507,000 Forage 225,000 Materials 623,000 Various J 120,000 3, 000, 000 Estimate...^ , 2,965,000 Slaughter-houses (abattoirs) 90, 000 Cattle market 22,000 Markets 100,000 • Various 3, 4(iO 3,211,000 Additional centimes 372,918.96 Shooting licenses t 6,000. 00 IJog tax, etc 28,000.00 400, Oli Receipts from communal property , .VJ, 322 Permits to tramways, occupation public streets, and water service 4rt2.4'lH City's share in bonded warehouses 425, 000 City's share in gas company 133, OdO Subvention from state for public schools 1.53, 143 Subvention irom state school of flue arts 3,4!:<0 Various 299,428 Total ordinary receipts 5,091,309 Exlraordinanj receipts, condensed budget of the city of Havre, 18-7. Francs. Additional centimes on 2,202,398 francs, the proceeds of the four taxes, or 24 centimes per franc 528 173. 24 Extra octroi on wine and alcohol; 48 centimes perhectol. on wine and 20 francs on alcohol 030, 000.00 Loan 1 03' 000. 00 Various 270,254.00 Deficiency 39,837.95 1, .571, 205. 19 j^KAJNtJJi;. 359 RECAPITULATION. Franca. Ordinary receipts 5,100,809.00 Extraordinary receipts 1,531,427.00 6, 632, 236. 00 Ordinary expenses, liiidget 1887, condensed. Francs. Mayor's office and staff 101, 050. 00 Tax collector ■2M,165.89 Printing and advertising 36, 200. 00 I [eating and washing 21, HOO. 00 Lighting 18,175.00 Postage and gratuities for merit 21, 000. 00 227, 090. 89 Engineer's department and public works : Salaries street inspector and employes .12,070. 00 Salaries overseers and superintendent 20,.^."i0.00 Water department and sewerage, salaries 43, 5."j0. 00 106,470.00 I'ublic buildings : Salaries 58, 360. 00 Police department: Salaries police commissaires 34, t-00. 00 Kent •- 3,4,^)0.00 Salaries administrative police 6, 000. 00 Police officers .and detectives 251,000.00 Clothing 23,690.00 Special police, clothing and rewards S4, 286.00 Rewards to hackmen for lost objects 200. 00 Dog-pound 2, 500. 00 Six police j nstices 10, 775. 00 423,601.00 Octroi : Collection expenses 298,389.00 Collection, markets and abattoir 55, 2S0. 00 — — 353, 669. 00 • Expenses: Communal property 68, 225. 59 Public buildings - ..-.. 161,0su.00 Public streets.' 1,354,360.00 Health department 24,300.00 Country roads 110,119.93 1 , 718, 085. 52 Fire department : Brigade salaries 94. 002. 00 Subvention to chamber commerce steam fire-en- gine 2,000.00 Extras 455. 00 ■ — - 96, 457. 00 Military expenses: Drilling ground 3,450.00 Barracks and garden 13, 000. 00 16, 450. 00 Department hospitals and charities: Hospitals (730,000 francs), foundling establishments, etc ■ 1,023,521.48 Public instruction : Salaries, rents, prizes 808, 236. 00 Museum, library 32, 120.00 Conservatory, music, fine arts 45, 650. 00 Theater subvention 12,800.00 898, 806. 00 360 KEPOETS ON TAXATION. Clergy : " Franos. Francs, lients dwellings Catholic priests, three Protestant tninisters, and one rabbi 12,600.00 Various expenses: Public festivities 53,250.00 Unforeseen and contingent 72,610.43 125,860.43 Excess of receipts 39,837.95 5, 100, 809. 00 Extraordinary expenses, condensed ludget of the city of Havre, 1887. Franca. Franos. Maritime exhibition, assistance to reservists and terri- torial army 121,023.99 Public workN, boulevard Tamarville 120,781.50 Guaranty maritime exhibition 50,000. 00 Ninth anuoial payment for building Exchange 29.985.06 Various 11,900.00 91,885.06 Hospital service 35,000.00 School of fine arts, public instruction 242.00 Rents duo hospitals 11,527.22 Interest on 2,340,000 francs 25,650.00 Interest on 5,200,000 francs 9,685.00 Sinking-fund, 12,000,000 francs 599,340.11 Paid account loan, 2,340,000 francs 103,000.00 Second sinking-fund loan, 5,000,000 francs 280,377.60 School loan, 1,750,000 francs 88,788.55 Third sinking-fund loan, 410,200 francs 16,408.00 First sinking-fund loan, 1,135,000 francs 67,556.16 1,571,265.19 RECAPITULATION. Ordinary expenses 5,060,971.00 Extraordinary expenses 1,571,265.00 6,632,236.00 Deht statement, Decemher 31, 1886. Due on debt: 2,340,000 francs at 5 per cent, interest 513,000.00 12,000,000 francs at 4.15 percent., due 1916 11,412,571.65 1,000,000 francs at 4 per cent., due 1915 C36, 121.57 1,000,000 francs at 4 per cent., due 1916 243,103.52 1.000,000 franos at 4 percent., due 1917 .„ 250,000.00 410,200 francs at 4 per cent., due 1915 387, 428. 63 5,000,000 francs at 4.75 per cent., due 1925 4,956,613.63 Due on city's subscription to Exchange building, 24 annual payments. 719, 641. 44 Total debt 18,718,480,44 J!KA«(JJ!1. Direct taxes contributed by the city of Savre {general roll) 1886. 361 Description of tax. Principal. of tlie i.ate. Ordinary and extraor- dinary, centimes. Aid fund and retaxa- tion. Total. Depart- mental.* Communal.! 680, 550. 00 356, 501. 00 688, 650. 00 356, 501. 00 56, 327. 16 747, 457. 42 118, 618. 24 162, 485. 59 346, 894 00 58, 971. 98 378, 392. 72 107, 360. 63 271,187.26 122, 992. 84 24, 476. 07 18, 738. 30 1,360,606.05 605, 592. 77 56, 327. 16 1, 339, 296. 28 118, 618. 24 162, 486. 69 691,496.23 58, 971. 98 1, 431. 60 2, 499. 59 64 996 31 Doors and windowa Doors and windows, con- Liconses, patentes Licenses, centimes 812, 453. 73 244,671.25 280, 296. 52 66,871.09 Centimes, special, 20 Personal and mobiliary . Personal, centimes g6n6raux 0. 17 346, 894. 00 191, 190. 98 137, 023. 13 16,388.12 1,431.60 24, 998. 69 64, 996. 31 Attribution on the prin- cipal of licenses Total ;2, 202, 398. 73 2, 533, 805. 39 921,615.68 901, 494. 65 127, 905. 18 4,484,820.80 * 55.115.1 on real, personal, and mobiliary; 30.1151 on doors, and wiadows, and licenses. 139.5 on real, personal, and mobiliary ; 34.5 on doors, and windows, and licenses. { The first column (2,203,398.73 francs) represents the amount of the principal of the taxes due as per cadastre on which the extra centimes are calculated. Francs. The state collects from the city of Havre 4,484, 820.80 Department receives 921,615.68 Commune of Havre 901, 494. 65 The aid fund 127,903.18 State retaining the balance of 2,533,805.39 Budget of the city of Paris. i, 484, 820. 80 Tear. Population. Ordinary budget. Tax per capita. vn 531, 000 548, 000 622, 000 946, 000 1, 800, 000 2, 200, 000 2, 345, 000 7, 500, 000 12, 000, 000 23, 000, 000 44, 000, 000 104. 000, 000 229, 000, 000 257, 000, 000 Francs. Hi 23 1800 1813 1849 43 91i 104 1880 1887 Principal reitenues estimated in the budget of 1887. Francs. Octroi 137,700,000 Communal centimes, special and dog tax 37, 700, 000 Gas company 17,600,000 Water rents 12, 000, 000 Markets : 7,900,000 Metropolitan police, returned by State 7, 700, 000 Taxes on public vehicles 5,200, 000 Estimated expenses. Interest on debt 100, 000, 000 Police department 26,000,000 Schools : 23,600,000 Public charities 21,000.000 Streets 20,000,000 Promenades, lighting, etc 10,500,000 "Water, sewers, etc 8,600,000 Collection expenses of octroi 7, 500, 000 City property estimate. Permanent domains 1,138,000,000 Temporary domains 66, 000,000 Mobiliary domains, museums, etc 423, 000, 000 Total 1,617,000,000 362 REPORTS ON TAXATION. French national ludget as U u-as proposed for 1887. EECEIPTS. Francs, pirecttaxes _ 440,270,690 IJomainal receipts 47 576 443 liidhect taxes ^\l"['"[['.y.][[][l[""\'l][\"l[ 2, 413' 782! 81. ■! Mip biliary tax, 3 per cent, on rental value . 46,116 OUO VanoiKS .. .'.'.';.'".';." ;.'!.";."!. ■.'.".' ;!.'..'.' 30,840i837 Itxceplional resources (loan, 105,000,000 francs) ' 106 082 465 KocPttes d'ordre '.'.'.'.'.'.'.'. 57* 169* 976 Visible deticiency '.V.'.'.'.*'.'.'.'.''.''.''.''. ... 80* 377* 06i 3, 222, 225, 286 EXPENSES. ' Public debt 1,286,372,31 Public authorities, President's honsehold, and cbambor of dcpntics, senate, etc 13,228,86 Ministries; Finances 16,114,855 Justice 37,304,061 Foreign affairs 44,239,900 In teiior 11 , 047, 871 Posts and telegraphs 1 38,702,168 War 555,934,529 Marine and colonies 229,701,863 Public instruction and fine arts 145, 313, 435 Coiutneice 20,270,028 Ajrriculture 39, 578, 673 Public works 121,166,259 Expenses of R6si6 and of collection of taxes 443,221,190 Re.imbursements and restitutions 20, 039, 340 3. 222, 225, 2(6 PUBLIC DEBT. Consolidated debt: 4 if per cent, rentes, new 305, 540,359 4:v per cent, rentes, old 37,4.33,232 4 percent., 446,096 francs; and 3 per cent., 416,488,301 francs 416.934,447 759, 908, 03R Sinking fund, annuities to railroads, department communes, interest floating debt 296, 786, 550 Debt (Viagfere) pensions and annuities 210,732,720 1,267,427,314 Fri'iich dihf. Date. December 23, 1800 January 1, 1815 ... August 1, 1830 ... February 24, 1848. .Tannary 1, 1852... ./anuary 1,1871... .January 1, 1886... Budget, 1887 Rentes (year!}). 3.1, 700, 000 03, 600, OOU 190,400,000 244, 300, 000 239, 300, 000 38(), 200, 000 826, 200, 000 882, 700, OuO Representing capital. 71.3,600.000 1, 272, 100 000 4, 426, 300, 000 5, 91i, 900, OUO Reduced by , conversions, at lower interest. 5, .516,200,000 12,46.1,300,000 23, 7L'8, 100. 000 25,848,600,000 Taile showing yearly interest payment. Item. 1886. 1887. Item. 1886. 1887. Four and one-half per cent, rentes ; 305, 400, 000 37, 400, 000 400, 000 305, 600, 000 37, 400, 000 400, 000 Three per cent. per. 363, 000, 000 120, 000, 000 396,700,000 Three per cent., re- imbursable Total Old 142,600,000 Four per cent 826, 20O, 000 882,700,000 The above table shows a total indebtedness of nearly 26,000,000,000 (36 milliards) of francs, but this is not all; the nation debt is muoli larger. Independently of the military, civil, and other pensions 363 (209,000,000 in 1887) or called dette viagfere, which are salaries for non- activity during life, the state has to provide besides — Francs. Interest ou floating debt 'J2, b(jO, 000 Interest and sinking fund on sliort loans 44,900,000 Interest and sinking fundou thirty-year loans t', 600, 000 Communal roads and school establishments 10, 400, 000 Annuities to railways 58, 100, 000 Annuities for conversion on Morgan loan 17,300,000 Various annuities .". ;{7,700, 000 Interest on money deposited for bonds of officials 9, 400, 000 202, 200, 000 Eepresentiug such a capital, which swells the state debt to upwards of 32 milliards of francs. If we add to this flgure debts coutracted by the department com- munes (the city of Paris, for instance, had a debt on the 3Ist of March, 1878, of 1,988 millions against 1,37(3 in 1868) other 18,233 communes 1,322 millions (against 524 in 1808), and 1,711 in 1871, or 3^ milliards more, which probably since 1878 increased to 4 milliards, the debt of France must at present amount to 30 milliards, or nearly 1,000 francs per head. Ou the other hand, it is believed that the. income of every man, woman, and child in France is 75 centimes per day, or 274 francs i)er annum, making a total of 10 milliards. Some authorities place the sum at over 20 milliards and give their reasons for such estimates. A parliameutary commission in 1885 made the following estimate of the national income: Eeal estate: ■ Not built 2, 64fi, 000, 000 Built 2,200,000,000 Mobiliary property taxed at 3 per cent 1,595,000,000 Mortgages 500, 000, 000 Perpetual state debt 740, 000, 000 Repayable state debt 100, 000, 000 Life state debt (pensions, etc.) 19^,000,000 7. 979, 000, 000 To this sum of nearly 8 milliards some political economists add about 15 miUiards of wages earned. Leroy Beaulieu believes that there are not more thau 700 or 801) private incomes in France of over 250,000 francs, nor more thau from 18,000 to 20,000 of between 50,000 francs and 250,000 francs. Maurice Block, another authority, risked an estimate in 1873 of pri- vate wealth in France : Tear and name. 1820 1840 1847 1850 1860 : 18G9 1873 ; 1853 Cfimile de Girai-din) 1871 (Wolowski) 1872 (Dnkeof Ayen) ... :I878 (Dr. Vaoher) 1878 (A. Amolin) 1881(S.MonyJ Real estate. I Personal. I Milliards. 40 40 100 ]00 ]00 100 yi» 02 )20 100 216 130 115 Milliards. 15 40 40 45 114 150 150 33 55 95 44 105 101 Total. 125 175 195 260 240 218 364 EEPOETS ON TAXATION. A. de Foville, professor at the school of political economy and chief of the bureau of statistics of the ministry of finances, estimates the total at the outside at 200 jnilliards. The following- list shows the inheritances by death and donations by the living as published by the administration of finances : Tear. Inheritances. Donations. Total. Year. Inheritances. Donations. Total. 1826,. 1,337,000,000 449, 000, 000 1, 786, 000, 000 1873. 3, 713, 000, 000 1,033,000,000 4,745,000,000 1830.. 1, 451, 000, 000 465, 000, UOO 1, 916, 000, 000 1874. 3, 932, 000, 000 998, 000, 000 4, 928, 000, 000 18:i5.. 1, 54U, 000, 000 610, 000, 000 2, 059, 000, 000 1875. 4, 254, 000, 000 1, 067, 000, 000 5,321,000,000 18(0.. 1, 609, 000, 000 007, 000, 000 2, 216, 000, 000 1876. 4, 702, 000, 000 1, 068, 000, 000 5,770,000,000 2845.. 1, 742, 000, 000 702, OUO, 000 2, 444, 000, 000 1877. 4, 438, 000, 000 1, 028, 000, 000 5, 466, 000, 000 18.J0.. 2, 026, 000, 000 059, 000, 000 2, 084, 000, 000 1878. 4, 748, 000, 000 1,064,000,000 5,802,000,000 1855.. 2, 407, 000, 000 726, 000, 000 3, 133, 000, 000 1879. 6, 004, 000, 000 1, 103, 000, 000 6, 107, 000, 000 ISOO.. 2, 724, 000, 000 802, 000, 000 3, 626, 000, 000 1880. 5, 266, 000, 000 1, 117, 000, 000 6, 383, 000, 000 1805.- ?,, 029, 000, 000 851,000,000 3, 880, 000, 000 1881. 4, 912, eOO, 000 1, 089, 000, 000 6, 001, 000, 000 186!).. ,1, 037, 000, 000 930, 000, OUO 4, 567, 000, 000 1882. 5, 027, 000, 000 1, 046, 000, 000 0, 073, 000, 000 1S70.. 3, 372, 000, 000 082, 000, 000 4, 054, 000, 000 1883. 5, 243. 000, 000 1, 062, 000, 000 6, 305, 000, 000 1X71*. 5, Oil, 000, 000 718, 000, 000 5, 729, 000, 000 1884. 5, 078, 000, 000 1, 023, 000, 000 6,101,000,000 187J.. 3, 951, 000, 000 1, 128, 000, 000 5, 079, 000, 000 1885. 5, 407, 000, 000 1, 022, 000, 000 6, 429, 000, 000 *\Var great mortality For 188G the inheritances are about the same as in 1885, but in the donations an increase of about 4 per cent, is expected. The period from 1876, vphen there was a remodeling of the tax, will show the increase of fortunes. Taxes were levied on the following inheritances : 1883. 1884. 1885.' 319 610 1,619 274 569 1,684 29B l^'rench aud l'orei;^n otber than government 586 1,682 2, .548 2,695 2,527 2,051 2,564 2 784 Real estate Grand total 6,243 6,178 6,348 Inheritances, indirect line, formed two-thirds, or 3,623,000,000, in 1885, between the married ; one-tenth, or 539,000,000, collateral ; relations, 1,016,000,000; no relations, 229,000,000. Conclusions. — The national fortune of France being about 200 mill- iards of francs, only two countries, viz, the United States of America aud Euglimd, surpass it. The national debt is so formidable that the history of the last twenty years must have opened the eyes of the writers who think France rich enough to pay not only for her national glory but also for her recent misfortunes and all the fancies of generosity, ambition, covetousness, and passions of her politicians. JSTothing but peace can restore her disordered finances; a disastrous war would be her utter ruin. F. F. DuFAis, Consul, United States Consulate, Mavre, May 14, 1887. Table A. — Fixed tax. [In francs. 1 365 Glasaes. In Paris. Communes. Over 100,000. 60,000 to 100,000. 30,000 to 50,000. 20,000 to 30,000. 10,000 to 20,000 5,001 to 10,000 2,000 to 5,000. 2,000 to below. 1 2 3 i 5 8 7 8 400 200 140 75 50 40 20 32 300 l.)0 100 60 40 20 12 240 120 80 60 40 32 10 10 180 00 60 4S 30 24 12 8 120 00 40 30 20 16 8 6 80 45 30 25 15 10 *8 *S 60 • 40 25 20 12 8 *5 *4 45 30 22 15 9 6 ■4 *3 35 25 18 12 7 4 *3 Taxpayers of the scveutli and eigtth classes selling "by peddling in carts, on tables, or under sheds, are free of proportional tax. Tlie asteriBls (*) signifies exemption from proportionate tax in cities of 2,000 inbabitants or loss. Wholesale dealers are considered those who principally sell to other dealers. Half wholesale dealers, who generally sell to shop-keepers and consumers. Retail dealers, who habitually sell to consumers. The first-class consists of wholesale dealers, large cafda, money changers, discount- ers, auction-rooms, and pay a tax of one-twentieth part of the rentable value of house or warehouse. The second class consists of half wholesale dealers, also ship-chandlers, manufactur- ing jewelers, wood-sellers by the cubic meter, butchers dealing in whole animals, carriagemakers, wholesale dealers in hair, diorama, panorama,manufacturer of linen garments or draper, wholesale sewing-machine dealer, dry-goods stores with not more than ten employes, wholesale hardware dealers, ready-made clothing dealers, not more than ten employir heKtnliti-r, j^rois capacity of receiving vessels and 60 centimes per hectoliter distilliui,'; Ixiilei's. Oyster dealers, if annual sale mora than 80J,OiJJ, Lui) fraucs, au,l if less 40 francs. 368 REPORTS ON TAXATION. Wool-washers, also of old goods, 5 francs and 5 francs per workman. Private sanitarium, 5 francs and 5 francs per attendant. Grinding and pulverizing mills, 6 francs per pair of stone or cylinder and 1.20 francs per stamper. Hardware manufacturer, G francs and 3^ francs per workman. Sawing mill, 4 francs per saw and 1.50 francs per grooving or similar mackine. Sngar refinery, .S francs and 10 francs per workman. Beet-root refinery, 3 francs per hectoliter net boiler capacity. Tanner, 5 francs and 40 centimes per cubic meter of pits and vats. Private telegraph enterprise, 600 francs. Contractors for removing prisoners, 360 francs. Manufacturers lead pipe, 60 francs per pressing machine. Fourth part. Pr oportionate tax, one-twentieth on dwelling and one-sixtieth on industrial estab- lishment. Cloth-finishers for manufacturers, 5 francs and 4 francs per workman. Mechanical carders, 6 francs per carding machine. Boiler-makers for steam-engines and distilling, 5 francs and 5 francs per workman. Felt manufacturers, 1.20 per pair cylinders. Sewing thread, cotton, 2 centimes per spindle ; woolen, 4 centimes per spindle ; silk- waste, 6 centimes per spindle; hemp-linen jute, 8 centimes per spindle, also 4 francs per workman. Spinning mills, carded wool, combed, 4 centimes per spindle; hemp, flax, jute, 8 centimes per spindle ; cotton, 2 centimes per spindle. Printing works, 4 francs per table. Looms, mechanical, for spinning or weaving, manufacturer of, 5 francs and 5 francs per workman. Ship-builders, 5 francs and 5 francs per workman. Fifth part. Proportionate tax, one-twentieth on dwelling only. Public slaughter-houses, 50 centimes per 100 francs lease. Forwarding cattle, 60 francs. Quarries, 5 francs and 1^ francs per workman. Public concerts, three-tenths of receipts if more than three times a week, three- twentieths if less. Draining contractors, 5 francs and 2i francs per workman. Dredging contractors (machinery), 5 francs and 4 francs per workman, or 2J francs if manual. Prison-labor contractor, 1 franc per man. Work-house contractors, 40 centimes per man Forwarding merchant of fresh vegetables, 60 francs. Restaurateur on steamboat, 5 francs and 10 francs per employ<5. Theaters, three-tenths of each representation, if every day, and three-twentieths if not everyday, the troupe being stationary; if traveling or not at least four months in one place, 60 francs. Balls, concerts, etc., 50 centimes of every 100 francs receipts. Contractors of public works, 5 francs and 25 centimes of 100 francs yearly receipts. Table D. Proportionate tax, one-tenth of rentable value of premises occupied for tax-payers subject to Table B : Insurance companies not mutual. Insurance companies and societies of re-insurance. Banking, discounting, and credit companies on shares. Bank of Prance and branch establishments. Proportionate tax, one-fifteenth of rentable value of premises: Architects, lawyers, notaries, dentists, surgeons, physicians, civil engineers, anc- tioneers, health officers, veterinarians. Proportional tax, one-twentieth of rentiable value of premises : Patentees of first, second, and third ckass in Table A. For first part of Table C. For Table C, second, third, fourth, and fifth part the tax is payable only on theit dwelling. FRANCE. 369 Proportional tax, one-tliirtietli of rentable value of all premises oocupietl : ' Pateutees.of fourth, fifth, and sixth class, Table A. Proportional tax, one-fortieth of rentable value of premises: Industrial establishment in second class, Table C. Wholesale dealers in flour, hops, deals and plants, wine, oil, furnished rooms (hotel garni, dining-rooms, public parlors, aud dwelling part taxed for oue- twentieth), printer, riding and swimming school, private lying-in hospital, baths furnishing steam or water power, gymnasium, letting furnished rooms and apartments, undertaliers, carriage manufacturer (his dwelling pays one- twentieth), etc. Proportional tax, one-fiftieth of the rentable value of all premises occupied by patentees of seventh and eighth class, Table A, but only in communes of 20,000 inhabitants or over. Proportional tax, one-sixtieth rentable value of all industrial establishments in the fourth section. Table C. Exempt of the proportional tax are the patentees of the seventh and eighth class, Table A, who do their trade on vehicles, under sheds, or on open tables ; the les- sors of only one furnished room, and those letting furnished rooms for that part which they occupy themselves ; individuals working hand machines for grind- ing, pulverizing, etc. TAXATION IN THE DEPAKTMENT OF GIRONDE, FRANCE. EEPOBT OF CONSVL EOOSETELT. Ko political question in France to-day is so complex and of such great importance as that of finance. It has been the Charybdis and Scylla that wrecked two recent cabinets, and still the question "how shall the greatest revenue be raised with the least burden on the jjeople" remains unsolved. Each new ministry has struggled to lessen the burden upon the peo- ple, but unsuccessfully, as each year finds the estimate of the " budget" an increase on the preceding one, until to-day the rate of taxation is something over a fraction of $22 j)er capita. The principal branches of revenue in France are designated as a se- quel to the budget of receipts and are classified as follows : (1) Direct taxes, (2) indirect taxes, (3) customs, (4) enrolling estates and stamps, and (5) post aud telegraphs. DIEECT TAXES. A direct tax, by which is understood all taxes levied directly on the person or land and which pass directly from the tax-payer to the re- ceiver of taxes, is one of the most important sources of French revenue. There are four direct taxes, classified as follows : (1) Land tax, which is levied upon real estate imj) roved or unimproved ; (2) personal tax, which is levied upon all persoias having an income no matter from what source derived, and also upon the renting value of the domicile ; (3) tax on windows and doors of all buildings ; (4) license tax levied upon all persons, irresj)ective of nationality, engaged in commercial, professional, and industrial pursuits in France, unless ex- pressly included among the exemptions determined by law. These taxes are composed of specified sums demanded directly from the tax- payer. The " contribution personnelle et mobiliere " is composed, as the name indicates, of two distinct taxes — the personal tax (poll-tax) and personal- property tax. The personal tax, as above mentioned, is levied upon all persons having visible means of support. The contribution mobiliere (personal-property tax) is" the tax on tlie renting value of houses. This tax was formerly levied on persons, houses, chimneys, servants, aud 370 REPORTS ON TAXATION. horses. The majority of these taxes were abolished by law in 1806, and only the personal and rent taxes, which at present are known as " cote mobiliere," were retained. The personal or prestation tax is rated as three days' manual laborer its equivalent. The average price is estioiated by the prefects and sub- mitted to the general council of the departments, who determine the prices for each commune. In preparing the schedule of rates the pre- fect is limited to sums not exceeding 1.50 francs ("29 cents), nor less than 50 centimes (10 cents) per diem. These rates are uniform for all taxed in the same commune and can not be increased by any kind of addi- tional centime tax. The personal and mobilier tax is demanded of every French citizen and foreigner enjoying his or her rights and not rated as paupers. Widows and women separated from their husbands are considered as enjoying their rights ; young men and women of age, or minors having sufflcient means of support, whether from personal fortune or from pro- fessions, though living with their father, mother, guardiau, or trustee. People living in furnished apartments are obliged to pay the mobilier tax, which is estimated at the rent value of the rooms uufurnished. Direct taxes are based upon two essential points, proportionality and effect on personal income. By proportionality is understood the pro- jiortion of taxes each person must pay on the assessed value of property possessed. When the rates of taxes do not increase proportionately with the iucrease of the fortune of the tax payer it then torms tbe pro- gressive tax. In the system of proportional tax, one-tenth on' 1,000 francs (that is 100 francs) and 10,000 francs, (1,000 francs) is taken, bat in the progressive tax one-tenth on 1,000 francs (/'. e. 100 francs), and one-fifth on 10,000 francs (i. e. 2,000 francs) is taken, etc. The income tax, as the name implies, is a taxation on tlie revenue of property of all kinds. It is tlius that tlie laud tax directly affects tbe revenue of the property taxed. Other direct taxes are levied upou the income, no matter from what source derived. As it is difficult for the Government to arrive at the exact income of a tax-payer, taxes are con- scqiiently rated upou an estimated income based on the profession and its pecuniary results, number of windows and doors and renting value of improved property. INDIRECT TAXES. Indirect taxes are those which are levied without the consent of the individual taxed and are only on certain products of merchandise con- sidered abstractly from the person. They are enumerated as follows: (1) Importation and exportation, manufactures, sales, transportationj aud entry of articles of consumption from country into towns. (2) Retailers of tobacco and gunpowder. (3) Eecordiug, mortgage, court, stamped paper, and postage. The principle governing the entire tax system of France is that no tax, direct or indirect, can be collected unless formally and annually author- ized by law. Consequently each jear the law of the budget contains a complete and detailed list of authorized taxes. No new tax or modi- fication of an existing tax can be established except by legislation. ASSIMILATED TAXES. There are a large number of taxes collected bv means of nomiuative lists and appropriated for expenses of the Government departments, .„_.„. 371 arrondissements, communes, public institutions, and authorized commu- nities. Tliese taxes have no generic name, but are designated by the Government as taxes assimilated to direct taxes, and are classified as follows : Inalienable property, parochial roads, dogs, carriages, wagons, horses, public and private billiards, clubs, societies, public halls, veri- fication of weights and measures, and contributions to maintain ex- changes and chambers of commerce. LAND TAX. During early monarchical periods in France, and until 1790, real estate belonging to nobles and ecclesiastics was exempt from taxation. In November, 1798, a law was passed definitely establishing the assessment and collection of taxes on real estate, no matter by whom held. The tax is levied directly on the net revenue of the property improved or unimproved. As previously mentioned, the two salient features of this tax are, the proportionality and effect on the income. Assessments are made by proportional equality on all property taxed by reason of its taxable revenue, without other exceptions than those decided upon for the encouragement of agriculture, or for the general benefit of society. Another feature presented by the land tax is, that it constitutes an actual tax absolutely independent of other means possessed by the tax- payer. The real estate alone is directly taxed, and the owner is in kiiul an agent who pays for the property with a portion of its proceeds. Eegulations determining the taxable value of income are established by law, and differ according to whether the property is improved or unim- proved. The net revenue of land is that which remains to the owner after deducting from the gross revenue the entire expense attending cultivation of the land. The taxable income is the minimum net revenue calculated on a cer- tain number of years. ARABIjP LANDS. In forming an estimate of the taxable revenue of arable lands, the assessors ascertain the nature and quantity of crops produced without extra labor or expense^ in conformity with the usual custom of the lo- cality. The yield is averaged by the production of fifteen years, ex- cepting, however, the two most abundant and the two most inferior yields. The ordinary yearly yield having been established, the expense attending planting, cultivation, and harvesting are deducted, and the remaining amount is the revenue taxed. GARDENS AND ORNAMENTAL GROUNDS. Gardens are rated at their renting value, which is estimated on the same basis as that of arable land, but in no case can it be rated higher. Land devoted to ornamental purposes, such as parks, avenues, par- terres, etc., are rated as superior tillable land. VINEYARDS. The estimated value of the production of vineyards is arrived at by the same method employed in arable land valuation. A deduction of 15 per cent., besides the expenses attending cultivation, gathering and pressing the grapes is made. This deduction is allowed in view of the extra outlay for annual trimming of the vines, partial replanting, and nec- 372 REPORTS ON TAXATION. essary labor during the years that the vineyards are non-producing. When the vines only live a certain number of years and replanting is possible or removal necessary to allow the ground to rest for other ag- ricultural purposes, the valuation is as follows : (1) The quantity and quality of wine produced. (2) The quality of land on which the vines are planted, and the crop the land might produce if cultivated as arable land. (3) Thelife of the vines. (4) Number of years that the land produced no vines. ADDITIONAL CENTIME TAX. In addition to the numerous taxes already mentioned there still exists another, known as the additional centime tax to the direct tax, which is composed of two parts, the principal and additional centimes. They are so named because they have always been levied correlatively with the principal, by reason of so many centimes per franc. The principal and additional centimes differ according to the use for which applied. The principal is levied for the Government needs, while the additional cen- times are levied in view of accidental, temporary, or purely local needs. The additional centimes take the name of general, departmental, or communal, according to whether they are to increase the resources of the Government, department, or commune. There is another cate- gory of additional centimes known as additional centimes to aid contri- butions. These additional centimes are levied lor the purpose of estab- lishing relief funds to be applied in cases of fire, floods, storms, etc., and to a certain extent replace taxes that can not be collected. The additional centimes can be added to the entire four direct taxes as well as to one, two, or three of them. DEPARTMENT CENTIMES. • The councils-general may each year vote additional centimes withiu a maximum limit. This tax is divided into three classes, the ordinary centimes, special centimes, and extraordinary centimes, according to the requirements of the department for ordinary, special, and extraor- dinary expenses. The ordinary expenses of the department are quartering troops, mak- ing and repairing roads, maintaining hospitals, prisons, etc. The special expenses are optional, and are applied for repairing com- munal roads, surveys, and primary instruction. The extraordinary expenses are also optional, and do not come under the head of ordinary and special expenses. COMMUNAL CENTIMES. The municipal council can vote each year additional centimes for com- munal expenses, but within a maximum limit fixed by the council-gen- eral of the department. EXPENSES ■OP COLLECTION. Added to the total of the communal taxes is 3 centimes per franc for collecting all additional centimes for the benefit of the communes. These 3 centimes, as well as the other additional centimes, are deposited in the treasury of the commune. PRANCE, 373 ASSESSMENT AND COLLECTION. The assessment of direct taxes is intrusted to a special service com- posed of (1) director-general at Paris, (2) eighty-six divisions, distrib- uted in the different departments, but under control of the director-gen- eral at Paris. Each division is composed of a superintendent, one in- spector, and several controllers. The duty of the controllers is to collect necessary information for preparing the assessment lists. The inspector supervises the controllers. The director transmits all orders from the director-general to the inspectors and controllers, directs the service, regulates the work, and prepares the tax lists. The collection of taxes is a separate service under the control of the director-general of accounts at Paris, with the following officers in each department : Treasurer-paymaster-general, residing in the principal city of the department; receiver of taxes, residing in the principal town of the arrondissement ; and collectors, whose duty is to collect the taxes enumerated in the tax lists. These special offlcers receive aid and as- sistance from the authorities of the departments and communes. Each commune has a mayor, who is charged by the Government with the direction of the commune. A municipal council, comijosed of citi- zens elected by the commune, which meet yearly at fixed periods. Spe- cial meetings can be called by the prefect. Certain members of the com- munity are appointed as a commission to make valuations upon which the tax lists are based ; also to arrange the necessary changes in the rate of taxation of the preceding year, and to give their opinion as to those who claim to have been unjustly taxed. In communes of less than 5,000 inhabitants this commission consists of the mayor, deputy mayor, and five tax-payers. In other communes, of two members of the mu- nicipal council and live citizens, formerly appointed by the subprefect, and only two of whom may reside outside of the commune. In com- munes of less than 5,000 inhabitants, where there are two deputy may- ors, the first of these officers is by right the assessor of taxes. This commission should meet yearly, presided over by the mayor or his dep- uty, and in event of the absence of both by tlie oldest member. No decision can be reached unless at least five members are present. The commission of an arrondissement or district must be composed of nine members, who hold meetings to deliberate upon matters concerning the arrondissement. Their principal duty, however, is to equalize taxes in the commune. The prefect is an important government officer charged with the administration of a department. The prefecture council is com- posed of from three to five members, appointed by the Government, who pass decisions upon the complaints of tax-payers and other important questions of the department. The general council is composed of members, one repvesentative from each canton, elected by ballot. The principal duties of this council are the decision of all matters of moment in the department; to vote the budget ; equalize direct taxation in the arrondissements, and to appoint a permanent commission which meets at the prefecture during the inter- vals of regular session. Taxation in France is comparable to an insatiable monster, with its covetous eye upon every possible taxable thing. From the poorest creature struggling for daily bread to those enjoying the luxuries of wealth, each pays his mite or portion. Nothing that the city can tax, no industry, profession, trade, or art, is exempt. The very act of dying is an excuse. The right of conveying the body through the streets ren- dfirssihs fTnfi' tf> tlip, oitv. and before the bodv can be r)laced in its final rest- 374 KEPOETS ON TAXATION. iug-place the city must be paid for the permission of entering the ceme- tery and opening and closing the grave. Every traveler indirectly pays for the privilege of seeing Prance. There is not a hotel at which he stops, no article of food or drink supplied him, even the very bed he sleeps upon, but which pays its tribute. The agricultural class bear the heaviest burden of taxation. First of all, the land pays its heavy tribute ; every beast of burden, all cattl6, vehicles of every description, and implements are taxed. Nothing that is produced on the farm, from a dozen eggs to a herd of cattle, from a bunch of carrots to a load of grain, but are met at the city entrances by the collectors of " octroi." The agriculturist in many parts of France to-day is almost iden- tical with his progenitors of centuries ago. He sticks to the sickle and mattock, rejecting the reaper and plow; is content to perform nearly all farm labor by baud power. A strong prejudice, almost amounting to superstition, is evinced by proprietors against any labor-saving ma- chine. In not a few instances land-owners are found growing poorer and poorer because of the heavy drain of taxation, unprofitable and inferior crops, destruction of vines by phylloxera or cryptogamous dis- eases, so that in many districts land has depreciated one-twentieth in its value of fifteen years ago. Among the principal of the numerous causes of taxation in France is the standing army, averaging one sol- dier to every twenty inhabitants, maintained, armed, and paid by the Government ; the forcing of all youths over eighteen years of age to undergo from three to five years' military service; and the compulsion of all able-bodied men under forty-five years of age to spend annually from twenty-eight days to six weeks in military drill, thus depriving the country of the services of the best producers at the very period when they are most valuable and capable. Geo. W. Eoosevelt, U. 8. Consul. United States Consulate, Bordeaux, France, August 17, 1887. Financial condition of the city of Bordeaux in 1885. Population 221,305 Annual revenues frauos.. 8,290,540.00 Value of the centime tax ,., do 47,269.56 Additional centimes do 37.00 Financial condition of the communes of the department of Gironde in 1885. Number of communes 552 Annual revenues francs.. 10,172,217 Number of communes taxed (centime tax): Leas than 15 centimes 28 15 to 30 centimes 52 31 to 50 centimes 172 51 centimes to 1 franc, 283 Above 1 franc 17 Total number of communes 552 Financial condition of the department of the G-ironde in 1885. Amount of the departmental centimes tax francs.. 91,534.00 The centime tax do 49,77 i'KArtl/Hi. 375 Franca. The eventual receipts : Ordinary taxes francs.. 716,157.19 Extraordinary taxes do 17-^,590.00 General total : do 8S8, 747, 19 Budget of the city of Bordeaux for the year 1886. Eeceipts 16,323,211.60 Expenses 15,568,722.05 Surplus , 754,489.55 These receipts are composed of: Ordinary receipts 9,109, 196.26 Extraordinary and supplementary 4,821,896.28 Surplus of the preceding year 2, 392, 119. 06 Total 16,323,211.60 The ordinary receipts are: * The communal taxes 737,702.85 Water taxes 689* 392! 91 Bill-posting taxes 606,810.11 Public weights taxes 217,9.32.58 Octroi taxes 5,358,918.14 Slaughtering taxes 284, 849. 15 Miscellaneous taxes (on receipts) 1, 213, 590. 52 Total 9, 109,196.26 The extraordinary receipts are : The additional centime tax for the service of loans 938, 789. 49 Miscellaneous receipts, side-walks, paving, programmes of loans . . 3, 883, 106. 79 Total 4,821,896.28 The expenses are as follows : Ordinary expenses 6,592,000.46 Extraordinary expenses 8,976,721.59 Total 15,568,722.05 The ordinary expenses are : Administration and miscellaneous _- 580, 258. 22 Octroi 832,790.85 Administrative and municipal police 1, 603, 824. 75 Military and fire department 175, 177. 98 Public worliis 1,154,876.66 Public assistance 878,370.36 Primary instruction 786, 117.53 Special institutions, lyceum, etc 476,597. 36 Religion 19,116.66 Contingent expenses and public holidays 84, 870. 09 Total .V 6,592,000.46 The extraordinary expenses are: The service of loans ■- 2, 657, 977. f-3 Expenses necessary to the mailing of the programme of loans, work on streets, and improvements on public buildings.. „ 6, 318,743. 76 Toxal 8,976,721.59 376 REPORTS ON TAXATION. Budget of the department of Gironde. To meet the expenses of public education, extension and. repairs of public roads) general service, obligatory disbursements, guaranty for interest, etc.,. the depart- ment of Gironde has an annual budget, receipts and expenses of about 3,400,000 francs (budget ordinary), and an extraordinary budget of from 1,800,000 to 1,900,000 francs. ESTIMATED BUDGET FOB 1887. Francs. Estimated receipts '. 3,481,944.53 Estimated expenses 3,462,670.31 EECEIPTS. Result of the 26 additional centimes to the principal of land, personal, and personal property taxes ^... 1,453,546.92 Proceeds of the 7 centimes applied for the service of roads 649, 174. 25 Proceeds of the 4 centimes applied for public education 370, 956. 71 Possible proceeds, rents, lines, etc 5,475.00 For the assistance of children, fines, Goveroment appropriation, endow- ments, communal appropriations, etc 96, 666. 00 For insane asylums, communal appropriations, and donations from fam- ilies 7a, 000. 00 For infants. Government appropriation 11, 000. 00 Communal appropriation Tor the expense of stations for standing stallions 2,260.00 Government appropriation for the lodging of officers in police quarters hired by the department - 1,500.00 Board for 15 students of the department at the school of obstetrics 6, 750. 00 Board for 15 students, not belonging to the department, at the school of obstetrics 8,250.00 Communal appropriation aijd private subscriptions for keeping in or- der main roads 283,297.00 Appropriation for keeping in repair by-roads 176, 099. 10 Appropriation for ordinary roads ...■ - 13,600.00 Appropriation of the communes for the expenses of the above classi- fled roads .- 35,000.00 Subscriptions and payments in advance for local railroads 296,375.55 Total..., 3,481,944.53 EXPENSES. Obligatory expenses 163,710.00 Maintaining department property in repair 25,850.00 Maintain] ng roads in good condition 1, 858, 568. 00 Aid for (abandoned) children 388,443.00 Insane asylums 285,000.00 Public assistance, miscellaneous appropriations 66, 102. 00 Department archives - 14,700.00 Encouragement of sciences and arts 48, 964. 00 Encouragement of agriculture and industry 53, 390. GO Commune appropriation 24,600.00 Miscellaneous expenses 130,586.60 Public education 402,756.71 Total ordinary expenses 3, 462, 670. 31 The extraordinary budget amounts to 1,286,133 francs, -which is ob- tained as follow^ : (1) By a vote of 12 centimes for work on local roads, payment of loans and interest ; (2) by a vote of .77 centimes for the redeeming of the loan authorized by the law of March 19, 1875 1,184,279.30 (3) From the loan to be realized for work on ordinary local roads (law of April 18, 1884) 100,000.00 (1) From contingent receipts 1,853.70 Total .,,, 1,286,133.00 JbliAiNUili. 377 GENEEjU, REOAPITULATIOlSr. Receipts : Francs. Ordinary budget 3,481,944.55 Extraordinary budget 1,286,133.00 Total 4,768,077,55 Expenses : ===== Ordinary budget 3,462,670.31 Extraordinary budget 1, 286, 133. 00 Total 4,748,803.31 Balance remaining 19,274.24 Comparative statement of the ordinary receipts and expenses of the city of Bordeaux for the years 1884 n«ri 1885. OEDINAET EECEIPTS. Taxes. 1885. Increase. Decrease. City Water Bill posting Public weights . Octroi Slaugiiterine ... Miscellaneous .. Total.-.. Increase . Francs, 723, 588. 63 659, 695. 38 604, 915. 36 252, 077. 76 5,481,885.88 288, 547. 30 1,071,478.83 Francs. 737, 702. 85 689, 392. 91 606, 810. 11 217, 932. 58 5, 358, 91H. 14 284,849.15 1, 213 590. 52 Francs. 14, 114. 23 29, 697. 53 1, 894. 75 9, 082, 189. 13 9,109,196.26 Francs. 34,145.18 122, 907. 74 3, 698. 15 160,811.07 27, 007. 13 187, 818. 20 OEDINAET EXPENSES. Administration and miscellaneous Octroi - '■ — Municipal and administrative police Military and tire department Public worlcs - Public assistance Public instruction Special institutions of learning, lyceums, etc - . . Eeli^ous Contingent and public holidays Total.... Increase . 576, 324. 70 847, 849. 29 1, 472, 301. 89 165, 038. 21 1, 228, 849. 21 825, 899. 59 714, 384. 90 468, 092. 73 19, 600. 00 84, 037. 41 6, 392, 617. 99 680, 832, 1, 603, 175, 1, 154, 878, 786, 470, 19, 84, 258. 22 790. 83 824. 75 177. 98 876, 00 370. 30 117. 53 597. 36 110. 66 870. 09 3,933.46 131,522.86 9, 539. 77 52, 470. 77 71,732.03 18, 504. 03 14, 098. 44 '73,"972.'65 483. 34 89,154.33 199, 382. 47 378 EEPORTS ON TAXATION. Statement skoiuing the exact increase of receipts and expenses of the dty of Bordeaux, dur- ing the period from WQi to VH^. Years. Ordinary re- ceipts. OrdxDary ex- penses. Years. Ordinary re- ceipts. Ordinary ex- penses. 1864 Francs. 4, 604, 151. 70 5, 065, 222. 44 5. 256, 365. 07 5, 284, 099. 15 5, 427, 3Z8. 14 5,856,282.84 5, 431, 673. 21 5, 708, 066. 15 5, 810, 569. 42 5, 992, 386. 32 6, 090, 962. 96 Francs. 3, 166, 352. 47 3, 430, 991. 04 3, 517, 869. 98 3, 721, 571. 82 3, 903, 701. 39 3,793,081.52 3, 989, 970. 63 3, 899, 060. 03 3, 966, 368. 22 4,169,598.20 4, 353, 070. 33 1876 .' Francs. 6, 670, 070. 20 6,937,031.21 7, 628, 587. 31 7, 684, 443. 50 7, 963, 291. 50 7, 544, 887. 92 8, 564, 544. 11 9, 204, 278. 23 9, 006, 337. 32 9, 082, 189. 13 9, 109, 196. 26 Francs. 4,497,646.40 4,503,915.09 4,632,252.44 4, 629, 832. 00 1876 1866 1877 1^67 1878 1879 .■ 5,115,697.70 5, 363, 933 39 1869 1880 1870 1881 > 1882 1883 6, 886, 340. 75 1871 6,173,915.74 1872 6, 147, 336. 5g 1884 6, 392, 617. 99 6, 592, 000. 46 1874 1885 Department of Gironde — Direct taxes and assimilateJ, taxes, DIRECT TAXES. Nature of the tax. Total amount of rolls of 1886. Produce of extra centimes for expenses of the — Department. Communes. Land-tax (A) : Francs. 3, 629, 699 4, 085, 939 3, 602, 065 1, 989, 667 5, 961, 920 Franks. 900, 123 1, 007, 619 828, 563 273, 218 754, 075 FraTics. 801, 831 1, 043, 892 762,600 (This tax is based upon the net revenue of the real property, whether built upon or not; this revenue is fixed by the doomsday-book (Cadastre).) {This tax is composed of: {Aj the personal tax repre- senting; the value of three days' labor ; (B) the personal property tax is based on the renting value of the build- ing.) 443,292 (TMs tax is based on the doors and windows opening on tlie streets, courts, and gardens of the houses, facto- ries, and work-houses.) 1,164,681 (This tax bears on trade and industry, and varies ac- cording to the professions, the population of _ the place where said professions are practiced, and the size and im- portance of the oflQce or building occupied. It is com- posed of a fixed duty, based on therelative importance of each profession, and of a proportional duty of the renting value of the office or building occupied.) 19, 169, 280 21, 508 Advertising expenses (5 centimes per notice) *19, 190, 788 The amounts detailed ia columns 3 and 4 are included in column 1, which gives the total for the dit- ferent taxes. (A) The land tax, personal and personal property tax, and door and window tax are '"assessed" taxes. Each year a financial law fixes the amount in principal of each of these taxes to be collected in the depaitment. These amounts are assessed as iollows; Among the "arrondissements " (coun- ties), by the council-general; among the communes, by the county council ; and lastly, among tbo rate-payers, by the committee of assessors, under the superintendence of the mayor of the commuDe, assisted by the controller of direct taxes. (B) Tax of quality ; established from a tarifi* annexed to the law, including various tabular state- ments and various classes, accoiding to the nature aud importance of the professions. * This total of 19,190,788 francs includes the principal and the extra centimes of all kinds, general, departmental, and communal, as well as those for the deficiency fund. FRANCE, 379 TAXES ASSIMILATED TO THE DIRECT TAXES AND COLLECTED TO THE PROFIT OF THE STATE. Nature of the tax. Amount of rolls of 1886. Remarks. Kortmain tax (An annual tax representine the duties on transmission, by deed or by death, of the es- tates liable to the land-tax and belonging to the departments and communes, such as nos- pitals, seminaries, nuunorius and monaster- ies, charitable institations, anonymous socie- ties, etc., and all legally autbiaized establish- ments.) Tax on mines , (A fixed duty of 10 francs per superficial kilometer, aTid a, proportional duty of 5 per cent, of the proceeds df the mine.) Duty on the verification of weights and meas- Duty on verifications made at the druggists', herbalists', grocers', and other dealers in drugs. Tax on carriages, horses, and mules used for the conveyance of persons. Duty on public and private billiard tables Tax on the clubs and other assessed societies. Francs. 70, 865 Total . 84, 379 3,610 31,427 76, 185 577, 803 Tax fixed at 70 centimes per franc on the principal of the laud-tax, plus 2^ decimes, that is, Sl^ centimes per franc. No mines in the department of Gironde. This duty is fixed by special agents, ex- aminers of weights and measures, and concerns the service of the direct taxes only in what refers to the preparing of the rolls and the inquiries on claims made by the rate payers. Of this amount, one-twentieth of the prin- cipal, representing the sum of 14,703 francs, accrues to the communes. TAXES ASSIMILATED TO THE DIRECT TAXES AND COLLECTED TO THE PROFIT OF THE COMMUNES. Eranos. Prestations in kind for the parochial roads 1, 499, 760 (Three prestation days for each male individual in health being not less than eighteen years old and not more than sixty years of age, member or servant of the family and resid- mg in the commune, and for each cart or carriage, and, besides, for each beast ot burden and saddle or harness horse in the service of the family or of the establishment, in the commune.) Municipal tax on dogs ^ 222, 149 fTwo classes : (1) Lap and fancy dogs, and sporting dogs ; (2) watch-dogs. The tax can- not exceed 10 francs nor be less than 1 franc.) ToUl 1,721,909 BORDEAUX. [The city of Bordeaux is included in the total amount of the rolls of the 552 communes of the depart- ment of Gironde for the amounts that follow.] Direct taxes : 1. Land-tax : Francs. Properties unimproved by buildings ■ 50, 133 Properties improved by buildings 2, 406, 390 2. Personal and personal property tax 1. 896, 121 3. Door and window tax 1,152,074 4. License tax 4,481,207 Advertisement tax expenses 4, 507 Total of the four direct taxes 9, 990. 43:J Assimilated taxes collected for the state: 1. Mortmain tax 49, 197 2. Tax on mines 3. Tax on the verification of weights and measures 32, 036 4. Tax on the verifications at druggists', etc 1. 810 5. Tax on carriages, horses, etc ^^' ^^^ 6. Tax on billiard tables = 17, 692 7. Tax on clubs, societies, etc - 58, 312 244 239 580 EEPOETS ON TAXATION. Assimilated taxes collected for the city : Francs. 1. Prestations in kind for the parochial roads 2. Municipal tax on dogs 65,429 Total of the four direct taxes 9,990,432 Total of the assimilated taxes collected for the benefit of the Goremment 244,230 Total of the assimilated taxes collected for the benefit of the city 65,429 Total general 10,300,091 (This total general represents the amount collected in the city of Bordeaux in 1886 for direct taxes and others assimilated to direct taxes.) [Direction of the indirect taxes of the department of Gironde — accounts — general articles — object- duties and proceeds acknowledged in the department of Gironde and in the city of Bordeaux ia 1886.1 Honorable Sir : I have the honor to inclose the information concerning the no- menclature of the indirect taxes verified in 1886, both in the city of Bordeaux and in the department, as well as the amount of expenses incurred by the administration of the indirect taxes in the department for the same period. Independent of the duties collected at the entrance of the city of Bordeaux for account of the ;treasury, and which figure in column 2, there are others called " muni- cipal taxes," the collection of which is secured by the service of the "rdgie" or by that of the " octroi " (town dues). EUELLE, JDirecior, Description of the duties. Duties reck- oned in the city and on enter- ing the city of Bordeaux. Duties reck- oned in the de- partment of Gironde. Wines, ciders, perries, etc., circulation duty ' Wines, ciders, etc., and alcohols, retail duty ^ "VVines, ciders, etc., and alcohols, entrance duty ^ Wines, ciders, perries, and hydromel8,uniqu6 tax* Alcohol, gener^ consumption tax^ Alcoholized wines, consumption and entrance double tax ^ Ale, beer, manufacture tax' - .- Vouchers, tax of 40 centimes* - Salt, consumption tax * — ^ '. Sugars, consumption tax '" Oils, entrance tax ^^ Candles, manufacture tax '^ - Vinegars, consumption tax ^^ " Railways, former tax (the one-tenth) and additional tax^* Public carriages, occasional and extra services ^^ Sundry duties: Giants'" - Stamp '' Conversion of alcohol '^ Stamps'i Fishing, ferry boats, iluvial domain^'* .- ..'. Playing cards, manufacture tax ^' Barracks ^^ Fines =^' Unreturned permits ^* Indemnities to the " octroi " men employed in surveying the con- version or alteration of certain articles ^^ Recovery of advances^ Interest on credit granted for the post payment of duties ^ Eventual receipts ^^ Tobacco 2s Gun powder 2^ Service of the civil pensions^" Francs. 439, 045 303, 762 1, 963, 339 1, 556, 525 38, 350 67, 994 20, 602 4, 389, 617 FrancB. 1,382,686 . 1,022,648 319,650 2, 064, 897 3, 367, 820 74,925 68,051 363,584 29,630 1, 594, 769 71,318 128, 287 71, 014 6,114,094 604,127 23,474 22, 103 435,298 22,680 60,709 1,365 28,963 3,53! 7,169 8,874,800' 231,309 61,700 27,463,712 1 This duty is collected at each transport.ation or removal of wines, ciders, perries, and hydromelB delivered to consumers, at the tariffs of 1, 1.50, and 2 francs per hectoliter for wines, according to tbe departments where sent. The circulation tax on ciders, perries, and hydromels is 80 centimes per hectoliter all over the territory. The authenticated taxes in column 3 represent the amount of the circulation tax applied in the department of Gironde at the time of transportation — both for the qaan- tities which are intended for consumption in the department itself, and for the quantities which are consumed in other departments. 2 Retail dealers are bound to declare to the clerks of the "rfigie" the sale price of wines, ciders, perries, and hydromels served in their shojis. A tax called " retail tax " is collected at the rateof 12)t per cent, on the s,ale price. The duty applied to alcohols sold at retail in the grog-shops is the general consumption duty, say 156.25 francs per hectoliter of pure alcohol. An allowance of 3 p« cent, is made for waste and family consumption. In towns having a population of more than 10,000 FRANCE. "Il^gie" expenses in the department of Gironde in 1886. 381 Salaries of the agents of all rank Kent and oflice expenses (general service, su- gars, distilleries) owance for lodgings and residence Allowance for traveling expenses, and keep- ing of horses Total Amount. 720, 712 G t, 137 ]4,4C7 40, 253 Eemarks. 839, 569 The expenses concerning the stock (pints, instruments, etc.) are secured directly by theministbr of finance. It is notpoa- .sible to decrease the amount of these expenses for the department of the Gi- ronde. souls the retail duty is collected on entrance, and calculated on the average price of the wines as de- creed every fifth year. * An entrance duty on wines and liquors is collected iu all towns having a population of 4,000 souls or more. The duty to be applied varies according to the number of population of each town, and is divided into seven distinct rategories. The entrance duty is demandable for wines and liquors in- tended to be consumed in the place, either at the time of the introduction or when removed trom the warehouses. * The " unique tax " can only he established in towns having an aggregate population of 4,000 souls at least, and tben subjected to the entrance duty. It is compulsory in towns where there are 10,000 souls and upwards. This duty, improperly titled "unique " since it does not suppress the circulation tfiK, is composed of both the entrance and retail taxes ; it causes the complete suppression of the veri- fication of goods. Consumers and dealers only form then a unique class Of rate-payers. Tariff for Bordeaux: -i.SO francs per hectoliter of wine; i.51 francs per hectoliter of cider, perry, hydromel. ^ The general consumption tax as collected at the tariff of 156.25 francs per hectoliter of pure alcohol on any quantity of brandy, of spiiits, or of any liquor composed of either. ^ Wines having an alcoholic strength above 15 degrees are liable to the consumption, entrance, or " octroi " tax on the quantity of alcohol contained between 15 and 21 degrees. Wines having an alco- holic strength above 21 degrees are taxed as pure alcohol. 'Duty ot 3.75 francs collected at the brewery. Ko distinction between what is consumed in or out of town. 8 Tax collected on the vouchers (permits, passes) required for the circulation of liquors and winee in the interior of towns as well as outside. 3 Tax collected : 10 francs per 100 kilograms. Jfo distinction between what is consumed in or out of town. '" Consumption tax of 50 francs per 100 kilograms. !N"o distinction between what is consumed in or out of town. ^^ Entrance tax collected iji towns of 4,000 souls or upwards, on vegetable oils, according to a tariff, theVate of which is based on the number of population. In the towns having no "octroi " duties on oils, the tax for the profit of the treasury is also suppressed. ^^ Manufacture tax of 30 francs per 100 kilograms. No distinction between what is manufactured in or out of the town. ^^ Consumption tax of 5 francs per hectoliter of vinegar at 8 degrees and below. The tariff is higher as soon as the strength of the vinegar exceeds 8 degrees. iNo distinction between what is consumed in or out of town. " This tax represents the twenty -nine one hundred and fifty-fourths of the gross receipts realized by the companies on the transportation of travelers and goods by express. The companies of "midi," "medoe," and " chemins de fer 6couomiques," pay the tax at Bordeaux for the entire extent of their lines. ^^ Various tariffs are used, according to the nature of the transport, the number of places, and the distance traveled. No distinction between Bordeaux and the department. 16 By grant is meant the authority to undertake a branch of trade or industry which can not be prac- ticed without a previous declaration. Various tariffs include wholesale and retail dealers of liquors and wines, distillers, brewers, converters of alcohols, manufacturers of playing cards, saltpeter, sugar, candles, and vinegar. '^ Stamp tax for the trying of gold or silver inelal. Tariffs : gold 37.50 francs per hectogram ; silver 2 francs per hectogram. No distinction between Bordeaux and the department. '8 Reduced tariff' (37.50 francs) applied to the altered or converted alcohol intended for industrial purposes. No distinction between Bordeaux and the department. ^^ Tax of 10 centimes applied to permits and to all the receipts of collected taxes. No distinction between Bordeaux and the department. ^"Fishing, ferry-boats, and the right to enjoy or let the grounds on the banks of the rivers, are leased by contract. The grants of grounds on the banks of the rivers or canals are made by the pre- lects upon the decision of the excise and high roads service. No distinction between Bordeaux and the department. 21 Manufacture tax collected at the rate of 62.5 centimes per pack of cards with the French mark, and 87.5 per pack bearing foreign mark. No distinction between Bordeaux and the department. ''^ Indemnity paid to the Government by communes which profit by the "octroi" duties collected on articles intended for the consumption of the troops quartered in said communes. 23 This amount refers to fines imposed upon transgressors in consequence of contentious acts. Net distinction between Bordeaux aud the department. 2-' Payment of the simple, double, or sextuple taxes on the permits that have not been settled owing to the legal delay. No distinction between Bordeaux and the department. '^^The tax is paid into the treasury by the communes liable to an " octroi," and which are benefited by co-operation of the excise service. 26 Collection made on account of articles advanced by the Government to manufacturers, traders, etc., snch as the special paper foiming the upper part of playing cards (the recto side), control books, etc. ^'Manufacturers of candles, beer, and sugar may discharge their debts by giving bonded security paying 3 per cent, interest per annum. No distinction between Bordeaux and the dejiartment. 28 Unqualified receipts: They are produced by repeal of tax, by moneys consigned for circulation pei-mits and not drawn in the legal delays, etc. No distinction between Bordeaux and the department. 29 Monopoly of manufacture and sale, various taritls. No distinction between Bordeaux and the de- partment. " . . V -, a ,. r. , 30 This concerns a deduction of 5 per cent, on the salaries (for formmg pensions) , a deduction tor leaves of absence, punishments, etc. 382 REPORTS ON TAXATION. Explanation of the terms octroi and rer/ie.^The octroi is a kind of custom-house on i small scale (city custom). lu order to meet the expenses of towns of importance' there is established in such towns a municipal service called octroi. The agents of the octroi are posted at the entrances of the town (a post at each road leading to town; all persons, carriages, and carts entering the town are stopped at the barrier by the agent, who proceeds to collect the duties on such articles as food, wines, liquors oils, perfumery, fuel, forage, building materials, and sundry other articles, no mat- ter where produced. The r^gie is the administration which collects in the interior of towns certain special taxes ; as, for instance, when one has to send wine in caslis or in cases of more than twelve bottles at a time, he has to take out a pass and permit, which must be paid for. The difference between the octroi and the r^gie is that the octroi collects duties on entrance, whereas the r6gie collects duties on the interior traffic, etc. TAXATION IN FRANCE. EErOBT OF CONSUL SSACKELFOBD. The system of taxation in France is extremely complicated, and it will be seen from the following details that it is impossible to determine wiih any degree of accuracy the expense incurred in the collection of taxes. Thereare four direct taxes : the " contribution fonciere" or land tax, the personnelle mobiliere or personal and house tax, the tax upon windows and doors, and the patente or license tax. These are voted upon an- nually by the legislature. The same body has also the right to impose a supplementary tax, termed "centimes addition nels." A department or commune may obtain permission from the legislature to levy this tax ou its inhabitants for special purposes. The contribution fonciere is levied upon the net revenue of the land, whether built upon or not, and is the source of a' large income to the state. The dwellings of the agriculturists are not subject to the imp6t foncier, and cattle are not specially taxed, but the value of those used in working the ground is estimated, and the contribution mobilifereor house tax levied upon them. The personal assessment and house tax is divided as follows, viz; the state takes 53 per cent., the department 33 per cent., and the commune 11 per cent., the remainder is reserved for relief and exemp- tions from taxation. The tax upon windows and doors was established in 1798 as a sup- plement to the personal tax, and like this last its object is to make all individuals participate in the expenses of the state in proportion ta their fortunes, as manifested by the importance of their dwellings; an importance considered as sufaoiently expressed by the number of their windows and doors. The rates of taxation are given in the following table: PopulatioD of the cities or coramones. .as Loss tban 5,000 6,000 to 10,000.- 10,000 to 23,000. 25,000 to 50,000 50 OHO to 100,000 Above 100,000.. s? □ b»s a '3 o5 to a 'a P "S si 0? a « o ^ t^ o -^ H h h ■ o*" CenU. Cents. 18 $0.32 $0.50 $0. 32 12 27 .44 .05 .70 15 30 .50 .80 1.48 18 50 .no ].I0 2. 21 24 72 1.0-1 1.40 3,00 30 00 1.28 1.70 3.76 36 CfflO. 12 15 15 15 15 IS J-EANCE. 383 This tax when first established produced a return of 15,000,000 francs to the state from the ninety-eight departments of which France was then composed. This income was greatly reduced by the inaccuracy of the declarations, and the need was felt, in order to obtain a more assured income, of giving to the tax on doors and windows the form of a divis- ional tax. This change was effected in 1802. The prefects were ordered to divide the amount for each department among the dift'erent districts, the subprefects were to divide the district tax among the parishes, and the inayor to prepare a register giving the number of apertures to each tax-payer. These registers are verified by the controller of direct taxes. Openings not closed by windows or doors are not taxed. Patentes or licenses for professional or business purposes are divided into several classes, according to the nature of the business and the pop- ulation of the city, and vary from 40 cents to 60 cents per annum. In the city of Nantes, with a population of 125,000, they range from $2.40 to $60. A wholesale and retail dealer in wines, for example, pays $60 for his license, but this by no means covers the whole ground. To this is added 20 per cent, of the rent paid for the premises in which he trans- acts his business. The tax termed " centimes additionuels" is calculated on these two sums added together. The retail license and other minor charges runs the sum up to $260, and this amount ispaid by all wholesale and retail dealers, without regard to the amount of business transacted. Besides these four direct taxes there are numerous other taxes •' as- simil^es," such as netax on inalienable property ; on carriages, liorses, and mules; public and private billiards; on clubs and societies ; tlie verification of weights and measures, and on visits to grocers and drug- gists, for the purpose of inspecting their stocks, at a charge of 6 and 4 francs per visit. The direct taxes, commonly known as the excise or inland tax on arti- cles to be consumed, are classed under thirteen heads. The most im- portant of these are wine and liquors. The departments of France are divided into three classes: (1) Those known as the wine-producing districts; (2) those where wine is only a partial crop : and (3) those where no wine is produced. The taxes are three in number, and vary according to the class of the department and the population of the city. The droit d'entree or tax on entering a town or city, the tax on transport or circulation, which is repeated every time the wine is moved, and the so-called tax unique. The tax on transport varies from 1 to 2 francs per hectoliter. In localities where the population is under 10,000 the retail tax is 12J per cent, of the wine or liquor sold. In cities of over 10,000 inhabitants the retail tax and the droit d'entree are calculated in the tax unique. Droit d'entree or tax on entrance. [Per hectoliter, 26.4176 gallons.] Population of the diatrict or city. Wines in bottles or barrt^la received in a department. Cider. Alcohol, pure or in First class. Cents. 8 12 10 19 22 26 ao Second class. Third class. brandy. Jl 17 23 •IS 30 40 45 Cents. IS 30 38 45 52 60 Cents. 7 10 )2 17 19 23 25 $1.40 6 000 to "10 000 - 2.25 3.00 3,75 20 000 lo 30 000 4.50 5.25 Above 50 000 • 6. OU 384 KEPORTS ON TAXATION. The importation of a cask of wiue to Nantes (GO gallons) witli the tax on circiilatipn, the tax unique, the octroi, and minor charges, costs from 2S to 35 francs per cask, without regard'to the value of the wine. The common wine of the country pays the same charges as the most expensive wines of Bordeaux. The tax upon beer is fixed at the brewery; 75 cents per hectoliter for stroDg beer and 27 cents for small beer. Salt pays a tax of $1 per 220 pounds. When exported or used for agricultural or manufacturing purposes it is exempt. Sugar, crude or refined, is taxed $10 per 220 pounds, which is decided at the refinery. Glucose, $2 per 220 pounds ; sugar used in sweetening wine or cider before fermentation pays $4 per 220 pounds. The manufacture of chemical matches is a monopoly, and the com- pany having the right pays annually to the Governmeut $3,000,000. Vegetable oils, whether manufactured in a commune or imported, ' pay an entrance duty according to population, varying from $1.50 to $3 per 220 pounds. Candles and tapers: This tax was established in 1871, and is fixed at the manufactory at $6 per 220 pounds. Public carriages: Railway companies pay to the State 23J per cent, of the net receipts from passenger traffic and 12 percent, for the trans- portation of goods per passenger train (grande vitesse). Goods by parcel post are exempt from taxation. Conveyances, either by laud or water, exceeding 25 miles, pay 22J per cent, of their net profits from the conveyance of passengers and 12 per cent, on the transport of goods. The same vehicles for a less distance pay a fixed tax per vehicle per annum; railway wagons pay $1.25 each per annum; four-wheeled carriages are taxed $1.25, and two wheels 50 cents per annum. Municixial taxes. Eevenue of the city of Nantes for 1886 $940,029.38 Expenditures for th.e same jear 939,831.92 Excess of receipts 197.46 Octroi, or tax on articles entering the city for consumption. Wine containing not more tlian 15 degrees of alcohol, in barrels or hottles, per hectoliter (about 26i gallons) $0.11 Cider, in barrels or bottles per hectoliter.. .44 Alcohol, pure, in brandy or spirits and on fruits do — 4.80 Alcohol, adulterated do.... 1.50 Jieer do 1.54 Vinegar of all binds do — 1.32 Provisions. Beef, calves, sheep, and goats: AliTO per 220 pounds.. 1.03 Killed and prepared , do 1.98 Lambs and Itids: Alive ._ per head.. .22 Killed and prepared , per 220 pounds.. 3.30 Hogs: Alive do.-.. 1.76 Killed and prepared do 2. 20 Little pigs (cochona de lait) per head.- .88 Killed and prepared per 220 pounds. . 2. 20 Sausages, etc do 2. 20 Lard and salted meats do 1.54 Grease of all kinds do 1.54 Truffles and game, poultry and pat6s prepared with trufdes per 2. 1 pounds . - .22 PAto de Ibis gras and other p4t6s - do 22 Turkeys each-. .07 Pheasants ^ do 13 Geese do 03 Pigeons, rabbits, and poultry of all other kinds do 02 Fish caught in sea or river ad valorem-. .O0| Prep.ired per 2.1 pounds.. .05 Oysters do 02 other shell flab '..'..'.'.'. do 01 Salmon, turbot, trout, lobster, and shrimps do 05 iJXAWUJi. 385 Large gamo, deer, wild boar, and roo 'ouck per 2.1 pounds.. $0. 07 Bares ^ each.. . 11 Partridges, quails, woodcoclc, suipe, aud water fowls do 04 Swan, teal, plovers, and other game u do 02 Dried fiali , per 220 pounds . . 22 Cheese of -all kinds per 2.1 pounds . . . OOj Canned and preserved. Iruits; olives, aud dried fruits do 05 Grapes for wine do 02 Chestnuts and other nuts p6r2i bushels.. .22 Oils of all kind , per 220 pounds . - 4. 80 Oranges and lemons do 2. 20 Sardines and other flsh in oil per 2.1 pounds.. .02 Fuel. ■Wood: Not split, for burning per cubic meter (39 inches).- .33 Split, for burning do 22 Tree roots ■. do 13 Faggots : Mrst class per 100.. .77 Second class ■. 1 do G6 Small faggots: First class - do 66 Second class do 44 Third class do 22 Clean faggots do Ki Charcoal per 220 pounds . . .44 Anthracite and soft coal do OH Coke do 09 Mineral oils and essences do 2.40 Candles and tallow of all kinds - do 2. 20 White and yellow was: do 5. 50 Spermaceti: Keflned do.... 3.08 Unrettned do 1.98 Candle's, other than wax and tallow do 4. 62 Food for horses and cattle. ' f Straw of all kinds do 16 Oats do.,., '44 Materials. Quicklime do 11 Lime and mortar per 2J bushels,, .01 AH kinds of cement per 220 pounds., .16 Plaster: Crude do 22 Prepared do 27 Soft and hard building stone per cubic meter., .40 Tiles of all kinds per 100.. .33 Marble per cubic meter.. 3.30 Granite of all kinds , do 65 Iron, zinc, lead, and Conner used in building per 220pouud3,, .20 Slate for robflng T." per 1,000 pounds, , . 44 Wood for joiners : Hard . . per cubic meter., .88 Soft do 66 Timber; Hard do 77 Soft do 55 With bark do 65 Without bark do 33 Window frames - per 220 pounds.. .33 Mirrors with frames *ie — 2.00 Other articles. Soap: Ordinary do... 2.64 Perfumed do 6.60 Tarnishes of all kinds do..,. 1.54 Income from octroi tax for April, 1867. Wines and liquors *'-' ?;5 !;?: Provisions.. 17,419.00 Fuel . 5,938.50 Hay,'fod(hi^'eto!;;'j'!;'jj^"jj^j"!;;;;"-"-^; i-if-^:i Materials for buildings •^' „?„ f'r Other articles -."^fn Accessory receipts - ^ 43, 118. 52 386 REPORTS ON TAXAxiON. Tariff for privileges on highways. Articles. Adjusting length, of frontage of any building per meter., luclosure walla or fences of any kind for gardens or waste land, length of front per meter - , Superstructure for each story length. of front per meter., Plaster work. Kougli casting : (Training and fiuishing per meter. Ground floor do... JHrsl story do . . . Second story do... Third story" do.., Inclosure walls do... Petty repairs to walla do . . . Minor work and petty repairs. Pettjr repairs to cornices Itepairiug buttress each . , Special repairs to abutments, doors, or windows, openings, borders, or lintels, do... Openings tor doors or windows .do Closing of an old door or window do — Heightening and lengthening any opening, including fan-lights, border lintels etc., each Opening a stop window each . Fixing girder or lintel, separately do... Fixing wooden uprights to contract doors or windows do... lleconstructiou of ornamental panel on front wall of house Permission to construct forge, oven, or furnace in a factory To build a tall factory chimney • Space for temporary work. Space for barrier in front of a house in process of construction, or repairs, including tax on barrier per square meter. . Space for contractors' implements or other materials .do — Struts, long uprights, etc., for scaffolding eacli.. Excavations for brancb drains, repairs or constructions for* pipes on higbways, per running meter 1 Branches for gas or water from existing drains per running meter.. Fixing lighting apparatus, outside eacb.. Mines or quarries. Permission to open a quarry near a public road Projecting fixtures. Stone bases for posts, chains, etc each.. Projecting plinth , per running meter.. Small balcony in front of window eacb.. Continuous balcony per running meter.. Leaning posts (bornes adoss6es) each , . Projecting threshold for shop windows .per running meter.. Projecting steps , .do.. Projecting of wood for gratings in front of butchers' and bakers' shops do Projecting bars to protect shop windows . do Kenectors to front lights ■. eacb Small wheels and pulleys for bakers' shops... do...! Movable projections. A.wning3 yearly, per running metre.. Reflectors in front of shops each Small tables in front of caf6s yearly, each.. Lanterns and transparencies .'.do Racks in front of clothing stores 1 ',..'.'.'.'. ".do Flags and signs of all kinds .V.'......do.... Hooks and lay figures to exhibit goods !.".'do,.".. Outside blinds, screens, etc , rtq Front doors '..'.'.'.'.".'.'.'.'."/.'.'. do Income from this tax for 1886, $5,000, Fixed rates. $0.60 1.00 LOO .50 .80 .40 .60 1.60 L20 .60 1.20 LOO 2 00 .60 2.00 2.00 LOO .60 LOO .80 .60 .60 4.00 .40 LOO LOO LOO .30 LOO Propor tlonate- ■ rates, $1.20 .20 .50 .08 .12 .16 .20 .04 .10 .04 L20 FRANCE. Taxes for places In markets and publie streets. 387 Per mouth. jRecognized markets of the city. Market in the Place Duchesse Aduc, an open space 300 feet square in whichtcountry produce isotfered f(tr sale tax per square meter. Market in the Place Bouffay. Covered pavilions divided into four equal parts two meters each: Saturdays tax per square meter. Sundays and other days do... Fish market.-La Petite Holland, consists of closed stalls, 2 by 2 meters, and movable tables : For the former, special rates not to exceed Tor the movable tables: Saturdays per linear meter- Sundays and other days do. . . Market de Feltre ia held under the arcades and in the market house: In the former per square meter. In the latter do... Tables for butter venders: Saturdays Sundays and other days For temporary cjccupation A portion of this market is appropriated for grain; each sack loft for sale or on storage pays 1 cent Washerwomen usiuir this as a storage pLice pay for each square meter , Other authorized occupants pay per same meter Market of the Place Tulesa^;! Beef and pork butcuers with block and pulley : Saturdays Sundays Other days Butter and poultry under cover: . Saturdays Sundays and other days - Entrance fees to the markets. Beef and pork per 220 pounds. . For fractions of 22 pounds '. , For cattle offered for sale in this market: Beeves Cows and heifers Calves Sheep and goats , For vpeighing a calf Straw market. Straw and fodder of all kinds exposed for sale per square meter. Bales of the same do.,. Other markets and taxes. Marl^et in the Place Bretagne: Old rays and clothes, rusty iron nails and tools, etc: Spread uut for sale per square meter. On tables do... Market for hides is held provisionally iu the corn market; annual subscription, $10. Fairs in the Place Vjarraes: • Oxen, cows, horses, and mules offered for sale each. Heiiei'8 and donkeys do... Sheep and goats do.. Ijarge hogs do... Small pigs do... General rule iu regard to the approaches to the market; Wheel-barrows pay Hand carts - WagoDs or carts drawn by one horse Without horse Special taxes. On goods or merchandise carried by hand or in a basket, dealers standing m a mar- ket or selling on the streets must pay for— Rabbits - - per head . Hares do . . . Partridges •. do... Woodcock do... Chickens and one or two pigeons do... Geese. do... 03 .80 02 I .60 Per week. .70 01 .Di n? 60 '0 2.40 in t; O"! '0 0' Ti 70 O.T m 0> 10 '0 ni 0'^ 10 0(1 n'i 03 01 01 0' 01 OS 01 0' m m 01 iv 04 388 REPORTS ON TAXATION. Taxes for places in marTcets audi public streets— Continued. Per month. Special (axes—Continued. On goods or raerdhandise carried by hand or in a basket, dealers standing in a mar- ket or selling on the streets must pay for — Pheasants. per head.. Waterfowl , do... Large ffarue, stags, etc do _. KOTE. — This tax is exclusive of the Octroi, "Women selling fiah and vegetables through the streets pay each.. Hawkers of any kind of merchandise do Each cart laden with bay, straw, wood, or any kind of merchandise standing in the street, pays for the standing room , Flowers offered for sale, in pots or bouquets, in the streets per square meter.. Hoops for casks.. per row of 12 packets.. Each table or case containing flowers or shrubs. and put up by permission of the mayor on the pavement of a cafe or restaurant per year, $4. Benches before caf68, restaurants, and hotels for whatever time they may be occu. pied, pay for each year per linear meter, $2. Articles of every kind pla,ced on the public streets, pay square or cubic meter ac- cording to their kind Omnibuses, stage.coaciies, carts, and cabs of all kinds standing on the highways or places named by the mayor A horse, donkey, or mule standing on the highways or places named by the mayor. Omnibuses, stage-coaches, loading or unloading on the streets pay per year'$l.. Supplementary stages belonging to regular lines and standing incidentally Carriages: Two horses per year, $5 . . One horse per year, $4.. Livery-stable cabs, drawn by either one or two horses, standing by permission on the public streets - per year, $3.. Moving- vans standing temporarily on the public streets Hand-carts stationed by permission on the street Carts of strangers standing by perinissinn in the streets per square meter.. Push-carts or hand-barrows authorized to stand in places appointed by the mayor per square meter.. Horses, carts, carriages, and every other article offered for sale at the exchange or in the public streets , each.. This tariff was approved by the prefect on the 19th of July, 1886. Income from this tax for 1886. — From the budget of the city of Nantes this tax yielded $29,600. Service vicinal, or parish road tax. — Every male citizen is obliged to work three days upon the public road or pay the tax, 90 cents. The income is large. In the budget of the city for 18S6 receipts are given from these sources: Municipal tax upon dogs 14,600 Abattoir or public slaughter-house 24, 900 Tax of 2 per cent, on public sales offish at the fish market • 7,000 From public baths 4,900 From places in the fish market •. 3,600 And numerous small sums from the rent of chairs, sale of fruit, etc., at the Jardiu des Plantes. In fact everything in Nantes but the air breathed is taxed, and many of these taxes, trifling as they seem, bear heavily upon the working class. The octroi increases the cost of the necessaries of life, and, except for his pay as a day laborer, at every step taken to gain an honest living he is met by a tax. Under the head of paten tes, one of the few direct taxes, the professions pay 15 per cent, of the rent of their dwellings. A lawyer at a rental of 2,000 francs pays 300 francs tax, which, with the "centimes addi- tionels " and other additions the sum is increased to 5.30 francs. This is no serious matter for a physician or an attorney, but a barber pays in the same proportion, and with him it is a constant struggle to make both ends meet. FEANCE. 389 _ Tlie effect of the tax upon projecting steps is seen tlirougliout tlie city. Nantes abounds in small but comfortable private dwellings, gen- erally two stories only, placed directly on tlie Hue of the street with the lower step starting from that line and running up inside the house. This, with an extremely narrow entrance, destroys all architectural ef- fect, and au attractive building is spoiled to avoid paying a tax on out- side steps. Of course there is some grumbling at what to us seems excessive taxa- tion, but the people generally accept it as a necessity. H. A. Shackelford, U. S. Consul. Consulate of the United States, Nantes, June 10, 1887. TAXATION IN EOUEN, FRANCE. REPORT OF CONSUL WILLIAMS. DIRECT AND INDIRECT TAXES. The direct taxes are divided this present year very nearly in the fol- lowing manner : In the cities: , . Percent. Government 50 Department 34 The commune 9 Unforeseen expenses 1 In the con ntry : Government 4ti Department 2t! The commnne , 25 Unforeseen expenses ,. X The "octroi " tax is particularly disagreeable, and the very sight of an octroi barrier, with' its different implements for ijrobing the wagons, penetrating boxes, boring casks, measuring, weighing, tasting, and test- ing produce subject or not subject to the tax, opening baskets, and even searching pockets, is unpleasant. They have and exercise the right to examine all travelers, on foot or mounted, in private or public carriages, on tram-ways or railroads. A long line of wagons can be seen at raauj" hours in the day awaiting their turn to undergo an examination and the most minute adjustment of the octroi dues upon their contents. Nor is this the worst feature ; by increasing the cost of the necessaries of life which these articles strike, they decrease the buying capacity of the workman and consequently diminish his capacity for work. There is no more duty on the choice morsels of meat of the rich man than the rough meat of the poor man. His cider pays its tribute, and the com- mon wine of a few sous per bottle is taxed as much as the choice vintages of Ghambertin, Mesigny, Sauterne, or Chateau Margaux. The expense of collecting this tax is necessarily great. At Amiens it is 11 per cent. ; others nearly 20 per cent. At Eouen it is 17 per cent. The reason of this excess is there are so many different modes of entering Eouen, both by land and water, many more offices and officers are required. Chas. p. Williams, U. S. Consul. United States Consulate, Bouen, France, May 19, 1887. 390 REPORTS ON TAXATION. General statement of assessed taxes. Departments. 1873. Euro Noid Pae-de-Calais Seine-Inforieure . Somrae 1883. Eure Nord Pas-de-Calais Seiiio-Iuf6iieure . Somme Real estate. Francs. 6, 180, 745. 46 10, 454, 143. 72 6, 815, 048. 87 30,717,219.91 6, 343, 036. 69 6, 220, 709. 42 12, 104, 052. 60 7. 509, 451. 51 11, ?93, 390. 74 6, 851, 292. 46 PersoDal taxes. Doors and windows. Frrtnra. . Francs, 1,105,434.74 1,025,896.42 3, 446, 927. 80 3, 341, 977. 71 1,662,593.67' 1,529,143.72 3,077,615.071 2,448,311.11 1,424, 61 1.8Si 1,408,185.00 1, 184, 285. 58] 1, 053, 143. 62 4,651,521.48, 4,375,872.08 2, 048, 545. 98| 1, 896, 470. 16 3,508,296.111 2,794,492.22 1,669,312.81 1,581,744.96 Tax on lirst no- tice totax- payers. Francs. 1, 518, 497. 67 0. 302, 608. 33 2, 957, 557. 87 7, 236, 267. 04 2, 539, 420. 42 1, 071, 255. 50 9, 772, 292. 85 2, 782, 695. 67 5, 729, 894. 97 2, 058, 874 88 Francs. 13, 886. 45 24, 460. 95 20, 066. 45 16, 029. 75 19, 716. 95 13, 548. 40 27, 098. 95 20, 551. 65 16,505.35 19, 707. 05 Total. Francs. 9, 844, 460. 27, 570, 108. 12, 984, 410. 23. 496, 342. 11, 734, 971. 9,542,942.62 30,931,437.96 14, 257, 714. 97 23,342,579.47 12,186,932.16 Excise revenue. Departments. | Beverages. Salt. Sugar. Matches. Cliickory. Paper. 1873. Francs. 4, 556. 175. 95 18, 350, 6!I8. 86 10, 896, 075. 08 15, 587, 427. 84 3, 224, 241. 69 5, 887, 315. 61 23, 371, 531. 29 14, 021, 639. 36 21, 430, 260. 70 10, 182, 248. 43 Francs. 4," 947. 00 Francs. 20, 112. 75 14,791,082.77 1, 297, 216. 24 5, 814, 089. 58 350, 486. 88 2. 210. 00 6, 317, 840. 10 15, 959. 12 1, 233, 901. 96 791, 672. 88 Francs. 2, 633. 64 258,174.47 42, 523. 78 40, 379. 52 28, 384. 13 Francs. 484.47 3, 607, 749. 61 147, 605. 02 10, 153. 78 32, 912. 42 Francs. 227, 487. 37 Nord 231,134.01 487,028.93 166,285.05 171,146.91 121,169.19 567,923.70 249,144.20 211,761,91 75,108.00 1883. 116. 40 1, 214. 40 Departments. Public Te- hicles. Miscellane- ous. Tobacco. Gunpowder. Total. 1873. Francs. 31, 842. 39 303, 898. 73 68,340,48 212, 576. 11 53, 920. 19 27, 744. 72 181, 056. 61 279, 038. 14 155, 007. 28 31, 994. 12 Francs. 255, 080. 16 2,369,138.89 978, 877. 90 1, 163, 824. 52 769, 859. 03 244, 828. 81 1, 946, 735. 71 705, 689. 16 1, 047, 099. 00 643, 364. 54 Francs. 3, 455, 033. 01 10, 173, 178. 12 6, 572, 79K. 10 9, 791, 657. 35 3, 780, 475. 94 4, 294, 162. 74 12, 842, 098. 37 7, 415, 220. 04 12, 145, 378. 46 4,651,459.43 Francs. 79, 352. 65 270, 072. 30 297, 940. 65 322, 204. 60 110, 116. 05 120, 607. 60 108, 528. 15 123, 161. 28 1, 475, 060. 15 131, 255. 00 Francs. 8,628,212.39 60,260,074.76 20,788,306.27 3.3,110,598.36 13,521,543.84 10,723,359.96 45 535,006.12 Nurd .... Pas-de-Ciilais Soinc-Inf6riour6 1883. Euro Ncml ra.s-dc-Calais Hoine-Iu lorieure 23,761,739.04 37,864,810.51 17,124,299.07 FRANCE. Local roa(l$. 391 Depal'tments. 1874. Ettve Nord Pas-deCalais.. Seino-Inf6rieure Somme Annual expenses. Maintenance. Construction. Labor and mateiial. Francs. 497, 879 i, 013, 272 619, 830 557, 249 159,653 Departments. Money. Labor and ; material. Otliercx- penacs. Total, 1874. Total, 1883. Francs. ; Francs. I Francs. 692, 711 1, 795, 235 1, 840, 633 1, 154, 136 1, 390, C61 11^,422 409,016 5li, 343 44, 0(14 91, 843 493, 518 4, 624, 501 1,191,856 679, 785 446, 553 Francs. 225, 687 713.074 924, ISri 495, 962 262, 525 Francs. Francs. 2, 022, 217 2, 320, 168. 02 8,555,131 7, 921, 750. 06 4, 132, 759 6, 1S3, 033. 41 2, 892, 036 3, 744, 360. 92 2, 360, 935 2, 926, 341. 83 1874. Enre Nord Paa-de-Calais Sein6-Inf6rieare Somme Annual resources. Com- Francs. 1, 356, 612 5, 772, 826 2, 600, 880 1, 825, 515 1, 653, 742 Grants and par- ticular gifts. Francs. 12, 073 317,525 303, 316 34, 770 149, 113 Subsidies from de- partments and the state. Francs. 606, 700 2, 529, 700 1, 241, 907 1, 049, 687 569, 898 Total re- sources. Fra-ncs 1, 975, 385 8, 620, 111 4, 046, ' 2, 909, 872 2, 372, 753 Wort done in 1874. Extent cared for by state. Main- tenance. Kilos. 106 241 255 129 76 New roads. Kilos. K'los 1 70 20 10 5 148 56 34 19 Bureau of charities. No. offices. No. in- dividuals helped. Eeceipts. Departments. Net reve- nue of offices. Ordinary and extraordi- nary tax on communes. Receipts arising from public and private charity. Other receipts. Total. 1875. Eure 175 637 592 389 321 199 640 600 390 383 3,876 217, 891 57, 288 36, 763 21, 013 4,660 244, 735 70, 892 31,141 17, 679 Francs. 86, 468 2, 383, 259 771, 027 203, 298 360, 669 101, 209 3, 046, 225 884, 482 254, 601 411,880 Francs. 36, 305 729, 467 254, 582 478, 474 144, 847 32, 698 1,131,296 320, 774 451, 995 190, 663 Francs. 83, 984 Francs. 138.719 Francs. 346. 476 Nord 233,455' 1.443.699 14.780.880 75, 836 421, 103 69, 886 87, 839 243, 803 , .137, .572 366, 683 67, 317 380, 443 238, 247 215, 301 226, 814 1, 464, S24 647, 621 314,110 282, 515 1,481,888 Seine-Inf6rieure 1, 341, 122 790, 603 18S3. 448, 560 6, 885, 148 1, 990, 449 Seine-Inf6rieure 1.387,289 942, 376 • 39-. REPORTS ON TAXATION. Bureau of chanties — Continued. Departments, Expenses. 1875. Eiire Nord I'as-de-Calais . — Sc-ino-Ini'erieure . 8omrae ]883, Eiire. Nord Pa3-de-Calecial taxes in addition to direct taxes. Departments. 1873. Eure Nurd Pas-de-Ciilais Seine-Inl'6fieure . Somme 1886. Eure Nord Paa-de-Cfllaia .Seiue-Iuf6riear6 . Somme Annual taxes on estates. Rents of mines. Verifica- tion of weights and meas- ures. Francs. Francs. Francs. 24, 908. «.5 1 15, 649. 46 lli.'j, 3L7. 28 309, 2U6. 12,120, 766. 16 74, 232 09'307, 196. 17! ''•'", ii5. 1 94.671.73 1 42,4.36.00 022.72 1 32,868.8: 32,619.17 214,531.50 90, 099. 70 149, 092. 64 09, 388. 19 !32, 014. 97 189, .';40. 56 83, 993. 8' 291, 024. 96 103, 626. ^8 131, 071. 70 82, 565. Tax on drug- gists. Horses and carriages. Francs 8, 072. 00 22, 986. 00 10, 080 00 5, 274. 00 12, 640. OO 6, 458. 00 27, 964. 00 11, 378. 00 5, 780. 00 14, 610. 00 Francs. 182, 413. 05 342, 424. 52 161, 591. 07 340, 887. 67 213,897.96 215, 687. 73 350, 616. liO 183, 326. 23 343, 208. 85 220, 716. 95 Billiards, Francs 7. 728. 00 29, 935. 40 11,319.1 20, 894. 05 19, 416. 05 Clubs, socie- ties, etc. Francs. 6, 930. 70 87, 031. 36 14, 382. 06 37, 839. 22 11, 249. 50 Total. Francs. 245,632.46 1, 077, 666. 84 614,288.92 542, 002. 07 379, 025. 14 8,539.411 3, 821. .50, 351,119.07 35, 257. 20 58, 010. 69 1, 210, 019. 32 14, 974. 25,11, 179. 741, 104, 025. 45 22, 276. .■■,-, 26, 612. 64l 678, 973. 28 20,820.501 8,378.30 446,539.66 Resources and expenses for primary instruction. Resources from obligatory taxes. Departments. Gifts and legacies. Product of 4- contime tax ou commune. Grants of de- partments. Grants of the slate. 1832-'83. Euro *. Nord Francs. 8, 803, 50 Francs. 197,715.60 443, 340. 92 219,2,')6.72 318, 819. 75 235, 383. 13 Francs. 1.51,836.20 313, 600. 00 203,746. 13 201,294.11 143, 715. 35 Francs. ,521,429.08 2,301,074,18 1 442 '>43,04 Pas-de-Calais 8, 732. 02 36, 450. 00 Seiiie-Inf6rieure 1,257,989.00 1,369,306.80 Somme FRANCE • Keaources and expenses for primary instruction — Coutinued. 393 Departments. Kesources applicable to buildings and printing. Total resources. One-fifth of commu- nal reve- nues. Grants of tlie state. Total. Supplemental appropri- ation "voted by com- munes. For excess of 4 cen- times and ordinary rev eniie. From op- tional cen- time tax or extraordi- nary. 1882-'83. Enre Nord Pas-de-Calais Seine-lnf6rieare . - Somme Francn. 879, 844. 44 3, 0S8, 021. 10 1, 903,. 978. 36 1, 814, 558. 95 1, 748, 405. 28 Francs. 3, 682. 00 302. 00 11, 060. 00 9, 191. 60 35. 543. 51 Francs. 7, 823. 00 6, 371. 00 430. 00 27, 142. 00 9, 126. 00 Francs. 11, 605. 00 6, 673. 00 11, 490. 00 30, 334. 00 44, 669. 51 Francs. 166, 510. 32 65, 030. 49 Francs. 459, 851. 28 253, 828. 62 60, 096. 28 Number of octrois — Population, suiject to octrois in each department. Departments. Popula- tion sub- ject to octroi. Cost of collec- tion. Wine in barrels and bottles. Net pro- ceeds. Quantity. Octroi charges. Quantity. Cider, perry, and mineral waters. , Octroi charges. 1875. Enre Nord Pas-de-Calais . . - Seine-Inf6rieur6 Somme 1886. Euro .' Nord Pas-de-Calais . - . Seine-Inf6rieure Somme ^ 83, 671 693, 352 197, 760 58, 498 100, 399 74, 528 775, 030 239, 733 353,607 112, 196 Francs. 96, 920 846, 842 266, 197 104, 477 183, 273 108,875 1, 225, 385 354,616 982, 582 243, 766 Francs. 686, 254 8, 609, 584 2, 152, 230 862, 181 1, 237, 133 674, 970 10, 368, 561 3, 386, 024 7, 626, 914 1, 635, 779 Sectors. 40, 377 147, 612 50, 751 136, 638 45, 266 39, 210 136, 715 ,57, 289 139, 103 45, 960 Francs. 47, 873 838, 410 163, 232 175, 730 167,214 41, 339 790, 771 162,840 617, 507 174, 468 Hectors. 164,911 8,818 6,112 6,366 34, 269 186, 020 4,251 13, 124 356. 003 33, 082 Francs. 89, 686 6,782 5,261 3,808 33, 405 75, 437 3,755 10, 097 335, 143 36, 790 Departments. 1875. . Euro Nord Pas-de-Calais. - . Selne-Inf6rieure Somme Alcohol. Quan- tity. Hectors. 8,543 34, 459 19, 273 3,226 11, 169 1886. I Eure Nord Pas-de-Calais Seine-Inf6rieure Somme. . 10, 336 43, 127 25, 990 78, 858 13, 185 Octroi Francs. 48, 006 675,161 298, 005 26, 608 218, 394 65, 392 903, 287 317, 939 1,700,914 254, 220 Other liquids. Francs. 25, 169 :, 164, 013 705, 032 69, 603 143, 332 37, 869 4, 397, 000 1, 012, 637 451,642 187, 016 Food. Francs. 275, 8.50 2, 269, 084 714, 894 343, 189 487, 826 311, 723 2, 623, 762 938, 400 258, 191 582, 835 Fael. Francs. 97, 631 830, 523 370, 511 147, 191 136, 137 117,352 1, 077, 893 590, 696 1, 191, 934 240, 848 Forage. Francs. 45, 350 374, 434 63, 495 118, 191 88, 660 51, 223 513, 093 112, 811 593, 663 150, 884 Building material. Francs. 72, 259 ,, 043, 446 173, 963 87, 390 139, 632 79, 347 1, 309, 191 555, 996 1, 329, 336 244, 561 ilis- cella. neons. Sum total col- lected. Francs. 2,160 125,416 24,084 5, 039 6,811 7,335 63, 276 48, 323 141, 880 7,420 Francs. 683, 793 9, 327, 189 2, 418, 477 966, 658 1,420,411 786, 512 11, 681, 9+5 3, 740, 838 8, 61 0, 209 1, 878, 032 394 ■ REPORTS on' taxation. Financial eondilion of cities of more tlian '20,000 inhabitants. Names of cities. Lille. Kouen . 1S7S. Koubaix - Amiena Tourcoiug Boaloffne-aur-Mer . . Dunkerque Donai Calais Elbeuf. Dieppe . 1885. Popala- tioD. Lille Kouen Koubaix Amiens Tourcoing Boulogne-9tir-Mer . . . Dunkerqae Donai Calais Elbeuf Dieppe 102, 755 104, 902 83, liOl 66, 806 ii, iSU 40, 076 35, 071 28, 099 25, 683 22, 213 178, 144 105, 906 91, 767 74, 170 51, 895 44, 842 37, 328 2», 177 33, 290 23, 152 22, 003 Hectares. 1, 566 1,814 5,005 1, 509 776 247 1,674 2, 090 1,570 Annual revenue. Fi-ancjf. 4, e:i2, 738 3, 946, 625 2, 070, 981) 1, 512, 005 8d0, 154 1, 296. 524 815, 814 6K3, 038 390, 000 438, 675 705, 730 6,923,172 4, 330, 311 2, 770, 561 , 2, 071, 836 2, 130,252 1, 474, 569 1,319,437 703, 225 894, 309 503, 970 800, 978 Amount of centime tax. Cenlinie tax, ordinary and extraordinary. 25, 381. 40 23, 191. 42 10, 051. 07 11,394.84 1,112.00 6, 507. 03 4, 179. 23 3,410.47 2, 654. 47 5, 170. 49 28, 505. 00 23, 331. 00 11, 909. 01) 11, 870. 00 6, 322. 00 6,701.00 4, 321, 00 3, 5i8. 00 4, 329. 00 4, 018. 00 2, 838. 00 Total num- ber. Of whicb are ex- traor- dinary. Duration of time of extraor- dinary. Revenue of buieanof charities.. \ 20 CIO no 10 20 10 in ' 10 i 10 fl5 I 5 IIS < 20 3 1878 18H3? isaoj 1>80 I 1883 5 1921 1888 IS83 1873 1881 1881 1894 1 1882 1 18S0 f 1891 J 1880 ) 1878 5 Francs. 511,901 17,915 120,418 127,702 S4, 706 62, 707 36,406 67,275 .27,360 7,905 613,924 269,894 176,2,14 81,366 143,491 88,000 83,280 74,079 74,494 94,029 44,220 City of Bouen, France. YBAK 1886. Population Floating population Total Amount of assessed taxes, collected by tbe state; Real estate Doors and window.s Personal and chattels Licenses Total Ordinary receipts : Result of taxes and fines Result of communal property.. Rents Octroi, abbattoirs, etc Bill posting Highwa.ys Schools Various sources Total ordinary receipts Totiil cxtraordinar.y receipts. Total general receipts Assessed taxes as abore Less one-tenth of assessed taxps collected by the state refunded .. Amount of taxes paid . . . 100, 001 7, 072 Francs. 760, 160.00 349, 623. 00 397, 270. 00 764, 067. 79 ', 277, 129. 79 42, 050. 00 103,512.95 19,437.54 3, 778, 977. 71 1011, OUO. 00 01,792.11 105,833,01 164,701.00 i 755 903. 32 1 701 148. 00 6 457 062. 32 2 227 129. 79 8.(584,182. 11 '222, 7.L2. 97 8, 4t)l, 4t59. U Francs. Amount of ordinfiry expenses : Administration, police, octroi, abbaltoiis, markets^ etc 1,199,758.70 Maintenance ot'property.kealth, hifjhv^'ays and water service, cemeteries, gardens, and s(iuares 837,784.05 Fire and military and veterans. 87,346,00 Public charities 821, 572.25 Fine arts and public instruc- tion 908,840.14 huTcbes 9, 600. 00 Various expenses 13, 213. Oi Pensions imd nssistance 167,916,27 Ffites and public ceremonies..- 25,000.0(1 Total ordinary expenses 4, 071^ 631.0c Amount of extraordinary expenses: Printing, worlc on roads, tele- plioue, post, and tidegraph, and new scbool buildings ' 386, 021. 2i Total 0,457,052 3 Debt of the city, duo from 1887 to 1895 46, S74, 685. 91 Of wliicli 2,257.834 9f5 l^ due in 18S7.' ' Tliisii provided for as folio yv^s : Tax of 25 centiraes'pBl lOU francs ; extra tax on alcohol ; one-teutb of,oc troi receipts ; balance from ordinary revenue. FRANCE. 395 City of Bouen, France — Continued, YEAK 1886~Contiuued. Property belonging to- the city of Bouen : * Barracks Station houses Octroi offices Varioua Schools Infants' homes Scientific establishments and museums Timber yards and docks Markets Francs. 1,918,180.00 67,0ou.00 91, 5U0.O0 7,048,000.00 3, 7:J9, 2:^5. 00 508, 7;J5. 00 2, 850, 000. 00 861.500.00 2,480,000.00 Property belonging to the city of Rouen— continued. Francs. W'ator supply 386.500.00 Communal buildings 2, 122, 500, OO I'ublic gardens 1,717,400.00 Cometeries (10) 1,037. JOO.OO KL'ctories (11) 280,000.00 CIniruhes (U) 8,684,735.00 News stands, and booths for guardians of parks, etc 38. OOO. 00 Total 33,830,575.00 City of Dunkerque, France. YEAK 1886. Population Ordinary receipts : Communal centime tax Octroi, markets, abbatcoirs, etc. Legacies, donations, funertils, etc 34. 790. CO Extraordinary receipts: Additional centime tax . Divers sources Traffic of the port Francs. 95. 934. 21 52. 768. 00 9, 250, 000. 00 65, 274. 00 Total extraordinary receipts. 9, 398, 702. 21 Total ordinary receipts 1, 356, 579. 80 Ordinary receipts 1,356, 579.80 Extraordinary receipts '. . . - 9, 398, 702. 21 Total general receipts 10,755,282.01 YEAK 1887. Population Ordinary expenses: Administration, police, octroi. . Care of communal property, health, safety, roads, water service, etc Barracks for military Charities, pensions, etc Public instruction, line arts, museums, etc t Churches Public fetes Francs. 551,479.22 252, 898. 00 y, 400. 00 156.438.00 304, 004. 06 3, 800. 00 17, 000. 00 Extraordinary expenses : Additional for salaries New roads and buildings Repayment of loans for com- munal woik , Additioual for charities For works for improving the port Franca. 17, 405. 00 92, 700. 00 87, 556. 00 13, 721. 20 I, 2.50, 000. pO Total extraordinary expenses. 9, 461, 382. 29 Ordinary expenses Extraordinary expenses. 1. 293, 819. 28 9,461,382.29 Total ordinary expenses 1, 293, 819. 28 Total general expenses 10, 755, 201. 57 "Among the buildings belpnging to the coinroane is the opera house, valued at 2,8.)". 000 fijincs. A bounty of 190,000 franca was given by the city for the maintenance of opera in 1886. Among the churches, the beautiful one of St.-Ouen, valued at 3,600,000 francs. t Included jn the appropriation for fine arts appears that of 22,000 francs to assist the theater. TAXATION IN THE CITY OF MARSEILLES AND ITS DEPARTMENT. REPORT OF CONSUL MASON: The federal assembly of France, at each aunoal session, enacts what is known as the budget, or law of finance, which estimates and makes provision for all expenses of the national Government. In adciition to these national revenues, taxes are, levied and collected for the mainte- nance of the several departmental and municipal governments, and the system by which all the various forms of taxation are adapted to these three branches of administration, and the aggregate burden adjusted to the means of all classes of tax-payers is one of the most complex and ingenious that has ever been devised. Under this system taxes are divided into three general categories, viz, direct, assimilated, and indirect contributions, as follows : The direct contributions— so called because they are paid by the cit- izen directly to the representatives of tlie G-overnmeut— are four in 396 EEPOETS ON TAXATION. number, viz, taxes on real estate, taxes personal and on rents, taxes on windows and doors, and business licenses. The amount of revenue to be derived from these four sources is esti- mated and fixed by the budget of each year, and forms what is termed the principal, upon which is based the second or flexible element of the direct contributions known as "additional centimes," which will be hereinafter described. The second group, called assimilated taxes, includes principally Government royalties on mines, taxes on clubs and societies, fees for official inspections of certain classes of retail merchants, and veriflcatioa of weights and measures, taxes on horses, carriages, and dogs, hcenses to sportsmen, revenue stamps on drafts, checks, and receipts, and a large group of special imposts known as '■^ JDroits di'^nregistrement," or fixed taxes, upon all legal and commercial documents and processes. So far does this branch of the system extend that every railway baggage- check and every passage ticket costing more than $2, pays a tax of 2 cents to the national treasury. The indirect contributions include all the duties on imports; tlie r4gie, a special system of taxation, applied to wines; alcohol, liqueurs, and tobacco, also to playing cards, salt, stearic candles, mineral oils, etc. Taking these divisions of the subject in their natural order, we return to the direct contributions. THE DIEECT CONTRIBUTIONS. Taxes on real estate {impot fonder). — These are imposed upon all lands and buildings not specially exempt by law, and are based upon the av- erage productiveness of the property in rents or produce during a series of years, less the cost of maintenance, ordinary repairs, and cultivation. For this purpose lands are divided into five and buildings into ten cate- gories, according to their comparative values, uses, and the aggregate population of the communes in which they are located. Buildings are taxed only from the third year after their construction, and in case of vineyards one fifteenth .of their value is exempted to off- set the gradual [)erishing of the vines and the cost of their necessary replacement. Taxable valuations on real estate are fixed by oflScial as- sessors aided by committees of citizen a})praisers, appointed for that purpose. Taxes on person and rents {personnelle moMlidre). — This, the second of the direct contributions, includes two elements: first, a capitation or poll tax of from 30 to 85 cents upon all citizens of either sex who have an occnpation and enjoy civil rights in France. Jin some cities and towns which have the octroi system the poll-taxes are suppressed, and an equivalent amount is paid collectively by the municipality from the proceeds of the octroi. This capitation tax alone, of all the direct con- tributions, is not subject to increase by the levying of additional cen- times. The secoud element, " mobiliere," or tax on rents, is a direct annual levy of a fixed percentage upon the rental paid for all furnished apart- ments or dwellings except those occupied by oflcers of the army or other public ofdoials or other persons exempt by law. The national budget of each year specifles"^ the sum that shall be raised from this tax in each department. The council general appor- tions this sum among the several communes, according to their popu. FRANCE. 397 lation and wealth. In each commune a commission (composed in Mar- seilles of the mayor, deputy mayor, ten tax-payers, and the city con- troller) ascertains the number of persons under their jurisdiction sub- ject to this tax and fixes the rate per cent, to be imposed upon I'euts in order to obtain the prescribed revenue. In Marseilles tiie fixed rate for 1886 -was 19.78 percent., and this contribution is always subject to farther increase by additional centimes. In cases of tax payers who live in their own houses, the commission estimates the rentable v^alue of the premises and the tax is assessed thereon. Of the .entire sum collected by this tax in Marseilles 50 per cent, goes to the national treas- ury, 30 per cent, to that of the department, and the remainder to the city. Taxes on doors and tvindoics. — Under this class are included fixed taxes imposed on each exterior door and window in any budding occu- pied as a dwelling or for purposes of business. Kor the purposes of this impost, buildings are divided into six classes, according to the population of the commune in which they are situated. The more populous the commune the higlier the rate of taxation. Marseilles, a city of the first class, is subject to the maximum rate, which, by the tarifi', is as follows : For buildinga with — Ooe opening gO. 20 Two openinga. ..,- 30 Three openings ^ 90 Four openings 1. 28 Five openings 1.70 For buildings with sis or more windows and doors tlie rate is: Each large double entrance (porte coch^re) .' 3.75 Each single door and window of first, second, and third stories 36 Each window of fourth or higher stories •. 15 These are the fixed rates which are subject to increase by the per- centage of additional centimes imposed for any specified year upon this contribution. The fourth and most important class of direct contributions is that of business licenses (patentes). This tax was established as long ago as 1791, but the law has since undergone numerous important modifi- cations, the last of which dates from 1885. Under the present act all persons, native or alien, who exercise in France any independent commercial or industrial avocation or libera! profession are subject to a yearly license tax for themselves and their employes, and for this purpose they are divided into four schedules, according to the nature of their business, viz : (A) Retail merchants and ' wholesale and retail merchants and artisans who employ workmen ; (B) ' Bankers; brokers, and n6gociauts, *. e., wholesale traders, importers, and ' exporters; (0) Manufacturers; (D) Liberal professions, viz, lawyers, * physicians, etc. ' Agriculturists are not subject to the license tax so long as their hus- ' ness is confined to the raising and selling of their own produce. The S other exemptions are painters, sculptors, and engravers who sell only the products of their art, editors of periodicals, professors of soieuce i' and etters, fishermen, captains of merchant vessels in which they own I DO interest, -treet peddlers, and artisans who work at home unassisted i by hired workmen or apprentices. Commercial travelers who sell by sample are likewise exempt if they are of French nationality, but those ; of foreign citizenship are assessed the same license as French salesmen i are compelled to pay in their respective countries. This ranges from 398 ilEPORTS OK TAXATION. $4 per annum in Belgium to $42 in Denmark, $23 in Spain, and $130 in Sweden. Schedule A in the above classification is the most important and complicated of the four divisions under the license law. Under this head are classed retail merchants and artisans who employ workmen (and who are classified entirely apart from the manufacturers in Sched- ule C). Tax-payers under Schedule A are divided into eight subclasses according to the nature and supposed lacrativeness of their business. These subclasses are again divided into nine categories, according to the population of the commune in which the licentiate is located. Thus, a merchant (subclass No. I) pays in Paris a fixed license tax of 400 francs; in Marseilles, 300; in Toulon, 240; and so on down to 35 francs in a commune having less than 2,000 inhabitants. A coal dealer (subclass No. 5) would pay in the same cities 50, 40, 30, and 7 francs, respectively, as will appear from the following table:. Class 1. Class 2, Class 3. Class 4. Class 5. Class 6. Class 7. Class 8. In Paris In communes of— More than 100,000 50,000 to 100,000 30,000 to 50,000.. Francs. 400 300 240 180 120 80 60 45 35 Francs. 200 150 120 90 60 45 40 30 25 Francs. 140 100 80 60 40 30 25 22 18 Francs. 75 75 60 45 30 25 20 15 12 Francs. 50 50 40 30 20 15 12 9 7 Francs. 40 40 33 24 16 10 8 6 . 4 Francs. 20 20 16 12 8 8 5 4 3 Francs. 12 12 10 8 20 000 to 30 000 6 10,000 to 20,000 5 5 000 to 10 000 4 2,000 to 5,000. 3 2 000 and less 2 ' All this relates to the fixed element of the license tax, which is im- posed equally upon all persons exercising their avocations under the same conditions. But licentiates in all four schedules are subject to another tribute called the "proportional tax." This is a specified percentage on the rentable value, first, of the tax-payer's residence; secondly, on that of the buildings or property occupied by his business. This proportional tax is as follows: For tax-payers of the first, second, and third classes under Schedule A, 5 per cent, of the rentable valueof their residence, and 2J per cent, of the rentable valne of their business premises. For subclasses 4, 5, and 6 of the same schedule, the propor- tional tax is 3 per cent, of residence rents and 2 per cent, of business rents. Under Schedule B (bankers and brokers) the proportional tax is 10 per cent, of the rentable values of both residence and business prop- erty. Manufacturers under Schedule are divided into five classes, accord- ing to the nature, extent, and profit of their business, and are assessei' as proportional tax to 4, 3, 2, or 1 per cent, of their rents accordingly. ■ In addition to this proportional tax manufacturers pay certain fixed taxes on their equipment, or on the workmen employed, or both; bankers, brokers, and merchants pay fixed taxes varying from 5 to 50 francs on each clerk or employ^ in excess of the number of five. Tax-payers exercising liberal professions (under Schedule D) are only subject to a proportional tax of one-fifteenth of the rent paid for their residence and office. Such are the fixed and proportional taxes as derived from the fow direct contributions. FRANCE. 399 Exclusive of the additioual centimes which were added more or less to the principal of each direct contribution, the amount of iixed revenue which was collected in Marseilles during 1886 from each of these four sources was : Francs. Taxes on real estate. 1,540,270 Personal and taxes on rents 1,182,708 Doors and windows 7B3, 445 Business licenses 2, 308, 508 Total 5,794,931 But the revenues raised by this method, even when supplemented by the proceeds of the various assimilated and indirect contributions, have long been found insufiBcient for the purposes of the Government. To increase the product of the direct contributions by a flexible system that may at any time be adjusted to the condition of the people and the necessities of the state, there has been devised the system known as "additional centimes," the operation of which is as follows: When the state requires an additional sum of money for any stated purpose it is provided in the budget that a certain number of centimes shall be added to the principal of one, two, three, or all four of the di- rect contributions. If a department or a municipality has any new or special need of money for the construction of, say, a chamber of com- merce or an asylum, it may proceed iu precisely the same way, except that the edict of the municipal or departmental council levying such additional centimes requires approval by the President of the Republic. Thus, in 1886, when the principal of the four direct contributions in Marseilles was 5,794,991 francs, the addition of 5 centimes for the main- tenance of communal roads yielded 5 per ceirt. of that sum, or 289,750 francs. Two "centimes additional" on the taxes from windows and doors yielded 2 per cent, of 763,455 francs, or 15,269 francs. The prin- cipal or fixed element of the direct contributions remains thus a station- ary quantity upon which the Government can rely. The additional centimes are levied from year to year by the state, department, and city governments, respectively, as a flexible supplementary resource by which the receipts of each year may be adapted to its necessities. In this way, as the expenses of the country have steadily increased, the direct contributions have become burtheued with sufficient additional centimes to more than double, in some cases, the revenue yielded by one or more of them. For instance, the aggregate of additioual centimes imposed for the year 1887 upon the contribution from business licenses is 1 franc 22 centimes, or 122 per cent. The effect of this system will be best illustrated by some example. For instance, a wholesale and retail merchant (Schedule A, Glass I), who resides and does business in Marseilles, paying as rent of his residence 3,000 francs, and for the rent of his store 4,000 francs: FraDcs. Fixed license tax would be per tarifif 300 Proportional tax : 5 per cent, on house rent •-•- 150 2| per cent, on store rent 100 550 1.22 centimes additioual (122 per cent, of 550) 672 Total under license tax 1, 222 400 REPORTS ON TAXATION. Similarly, a broker who deals iu domestic and foreign securities (Sched- ule B, tirst class), who pays 8,000 francs iu rents and employs 15 clerks, '■ would be assessed uuder the license clause as follows: Tranos. Fixedlicense 1,000 Ten employes (in excess of 5 exempt), at 50 francs each. 500 Prop'ortional tax (10 per cen t. of 8, 000 francs) 800 2,300 1.22 centimes additional 2, 80S Total 5, 106 ; As an example under Schedule C, suppose a manufacturer of cutlery - who i)ays in all 10.000 fi-aucs as rent for his domicile and factory and has 90 workmen, his license tax would be estimated as follows: Franca. Fixed annual license 5. 00 Ninety workmen, at 4 francs each. ^ 360.00 Proportional tax : 5 per cent, of 2,000 francs house rent '. 100,00 2 per cent, of 8,000 francs factory rent 160.00 725. no 1.22 centimes additional 884.50 Total 1,509.50 These are, of course, simply the license taxes which each would pay, independently of their other nssessments under the titles of real estate, doors and windows, aud personal and mobiliere. Between the direct and ludiruct contributions is the second group of national tributes called '"'assimilated taxes," which are j)aid directly to the agents of the national Government. ASSIMILATED TAXES. These are — (1) The Government royalty on mines, which is about 1 cent per acre of the area included in the concession, 5 per cent, of tlie net profits, and 10 per cent, additional upon the sum of the area aud profit taxes com- bined. (2) Pees for the verification of weights and measures, viz : Once each year an inspector is sent to test and verify the scales, weights, aud meas- ures of all traders who sell goods by weight or measure. For this in- spection lees are provided in a long schedule, which includes — Scales (from platform to counter) gl Iron weights Brass weights Dry measures Liquid measures Wood uieasares i Dry-goods measures : (3) Taxen on puMic and private billiard tables.— This is $(i per annum for each table in.all cities (exc,,'i)t Paris) which liave a population exceed- " ing .50,000 and $'i in communes below that limit. ' (4) Taxes on dubs, chartered societies, ete.— This is 20 per cent, of the annual and special dues collected from the members. (5) Taxes on saddle and d-augkt horses, mules and cisses. and >Up(m " wagons and carriages.— This vMaaoi taxes is graded according to the . 00 to |0 05 .01 to 12 .02 to 09 .01 to ao .01 to Vi . 18 to ■ ao .01 to 06 FRANCE. 401 population of the commune in which the animals and vehicles are owned. In Marseilles the rate is — Four-wheeled vehicles per annum $10 Two- wheeled vehicle per annum 5 Each horse, mule, or ass 4 By law, one-twentieth of the proceeds of this tax is awarded to the commune in which it is collected, the remainder goes to the treasury of the state. (6) Tax on dividends and interest. — This is a tax of 3 per cent, of the annual dividends paid upon all commercial, railway, manufacturing, or other business stocks, and upon the interest of all bonds (except those of the French Government) owned in France. French companies which issue stock or bonds are required to retain and pay directly to the Gov- ernment this 3 per cent, tax on dividends and interest, which is thus collected without recourse or intervention by the share-holder. We come now to the third group of national taxes imposed by the French law and known as the indirect contributions. INDIKECT CONTRIBUTIONS. They are paid indirectly by consumers of certain articles. They in- clude (1) the whole schedule of duties on imported merchandise as pre- scribed by the general tariff and the amendments which are made to it nearly every year for the purpose of protecting manufactures and in- creasing the revenue. French duties are uniformly high and are im- posed on nearly all imports except raw materials. Food products are not, however, classed by the tariff as raw materials, but pay in general high duties, as, for instance, 45J cents per 100 pounds on wheat; $13.68 per 100 pounds on coffee. Crude petroleum pays S5.52 and refined $7.72 per barrel, although no crude petroleum is produced in France or in any French colony. (2) The stamp tax on bank-checks is 4 cents ; on drafts 1 cent per each $20 up to $200, and 10 cents for each $200 above that amount. Every receipt for any sum exceeding $2 pays a stamp tax of'2 cents. (3) Recording fees {'■'■ droits d^enregistremenf^). — This includes a list of charges so elaborate and extended that only a synopsis of the more im- portant ones can be given in the space available in this report. Every legal document or copy of the same, no matter how trivial in importance or value, must be written upon stamped paper costing from 10 to 70 cents per sheet, or it is illegal and entails a fine. Not only this, but the number of lines on each page and the number of words in each line are limited by law. Sales, loans, mortgages, marriage settlements, ex- changes of property, shipments of freight by express, etc., must not only be written on stamped paper, but pay to the state taxes both fixed and proportional, the latter being percentages on the net amount of the transaction. For instance, when personal or real estate is sold at auc- tion the Government tax is 6.6 per cent, of the proceeds of such sales, , plus the charges thereon. A lease of real estate is charged 5 cents per 100 francs for the entire - sum of rental to be paid during the term of the lease. WJien a lease is * perpetual the tax is estimated on the cumulative rental of twenty years. Any written agreement pays a fixed tax of $3.60, and besides a pro- ' portional tax of from 6 to 9 per cent, of all sums of money to be paid or received and which forms the basis of such agreement. ' For marriage settlements the fixed tax is $1.20, $2,40. or $4.80 when 402 REPOETS ON TAXATION. the amount concerned is 5,000, 10,000, or 20,000 francs respectively, and $8.40 for each additional 20,000 francs named in the contract. The Government tax on inheritances ranges from 3.6 to 10.8 per cent, of the net value of the estate, according to the nearness of kiu between testator and legatee. The more distant the relationship the higher the rate of tax for the transfer. All commercial contracts made in writing and signed by two or more parties pay a fixed tax of 70 cents and 2.4 per cent, of the gross value of the merchandise or consideration involved. The proportional tax is only levied in the case of subsequent litigation and on sach portions of the contract that have given rise to legal action. Marine bills of lading are taxed 55 cents each. All mortgages, titles, deeds, etc., which are required to be recorded are taxed at each step and process, so that it is calculated that when a piece of real estate has been sold and transferred six times the "droits d'enregistrement " and various charges incident to the successive changes of ownership have absorbed for the benefit of the state an amount equal to the entire value of the property. All the formalities of marriage and burial, certificates of birth, etc., are written on stamped paper, andeveryinfractiouor invasion of the lawen- tails a fine. Thus, ifa revenue stamp ou a check, draft, or receipt is not canceled by the signer in the prescribed form, the law imposes a fine of $12 for each offense. . : Advertisement posters are charged under a special stamp tax 1 to 5 cents each, according to the size of the sheet. j The r(5gie is a system of special taxation which applies to salt, candles, playing-cards, oils, wines, liquors, and tobacco. The manufacture and sale of all forms of tobacco, like that of gunpow- der, is in France a Government monopoly which vields annually a profit of from 360,000,000 to 375,000,000 francs, and is therefore equivalent to a tax of that amount upon the importation, growth, manufacture, and sale of that article. Gigars and tobacco for private consumption may be importedupder a special permit from the r%ie, based ou a declaration that the merchandise thus imported isfor the personal use of the importer and not for sale. The customs duty ou cigars and cut tobacco imported under such spe- cial permit is 36 francs per kilogram, equal to $3.15 per pound. In respect to wines, cider, and alcoholic liquors the taxes imposed bj' the regie, in addition to the octroi or local city tribute (to be hereafter explained), ai'e as follows : (1) License of transit. — This is a fixed fee of from 24 to 50 cents per hectoliter, whicli is charged for a permit to move wine in casks from one cellar or locality to another. For wine in bottles the charge is at the rate of $3 per hectoliter, and all licenses of transit specify the amount of wine to be moved as well as the day and hour and the local- ities from which and to which it is to be transferred. (2) Retailers' license tax. — This is a tribute of 15 per cent, of the total amount of sales which is collected from all retail venders of wine, cider, cordials, and liquors. (3) Tax on consumption. — This is the original revenue tax on all wines sold for consumption in France. The rate is 90 cents per hectoliter on all wines containing less than 15 per cent, of alcohol ; wines contain- ing from 15 to 21 per cent, pay the same tax as lighter wines, and the quantity of alcohol in excess of 15 per cent, pays double the duty im- posed on alcohol, viz., $67.54 per hectoliter (26.7 gallons). When the FRANCE. 403 proportion of alcoliol exceeds 21 per cent, the wine is taxed as pure al- cohol at the rate of $33.77 per hectoliter. (4) License for manufacture : On beer is 92 cents per hectoliter for malt liquors and 24 cents per hectoliter for small beer, in which malt is not an ingredient. (5) Right of entry. — In addition to the foregoing taxes the r6gie im- poses a general impost or entrance duty upon all wines, cider, and liquors brought into villages or cities for consumption or sale. The tax is graded according to the population of the city or commune to which entry is made and ranges from 18 to 72 cents per hectoliter for wine and from 8 to 30 cents per hectoliter for cider. All these regulations are enforced with extreme care, and any at- tempted fraud or evasion is punishable by seizure of the goods and fine or imprisonment, or both, of the offender. In cases of transfer, if the wine or liquors are found in transit, except during the day and hours specified in the permit, or elsewhere than on the most direct route be- tween the two localities likewise designated, they are subject to seizure and the offender to a fine. . The r^gie tax on playing cards is 12 cent's per pack. The manufacture of matches is also a monopoly farmed out to a pow- erful company, which pays the Government a yearly lump sum for the privilege of exclusive manufacture. No private citizen in Prance is permitted, unless specially authorized, to take water from the sea for any purpose, and manufacturers of salt are under a surveillance of the regie similar to that applied to distillers and manufacturers of tobacco in the United States. The revenue tax on manufactured salt is 90 cents per cwt., and the estimated revenue of the state from this one article for the present year is 9,269,000 francs. The receipts from these various sources are divided as follows : All the revenues derived from the indirect contribatious, and likewise all proceeds of the assimilated contributions, except 5 per cent, of the tax on animals and vehicles, and 35 per cent, of the fees collected for licenses to sportsmen, go to the national treasury. The product of the four direct contributions is divided as follows in this department : State. Depart- ment. City. Per cen t. 47 50 58 57 Fer cent. 34 31 23 20 Fer cent. Personal and rents 19 19 Licenses 19 The remaining 4 per cent, of the tax on licenses is left unappro- priated as 'a provision against the small proportion of such taxes as may prove uncollectable by reason of death, removal, and other causes. It remains to explain the one purely local and most prolific source of municipal revenue in most French cities and towns, viz: THE OCTROI. This is the simplest and most primitive form of taxation for local purposes. A cordon of guards is drawn round the municipality with stations on all incoming streets and roads, as well as at the railway 138— No. 99—10 404 REPORTS ON TAXATION. and canal stations, who are authorized to collect specific duties upon all materials and articles of consumption which are brought in for the use of the inhabitants. Each town or city makes and enforces its own schedule of octroi duties, but the tariff of charges must be in each case approved by the national Government. The octroi duties at Marseilles are as follows : Wine in casks or bot- tles per hectoliter of 26.7 gallons, $1. Wine in which the proportion of alcohol exceeds 21 per cent, pays oa such excess of alcohol per hec- toliter, $12. The above regular octroi tribute on wines and alcohol have been greatly increased of late years by an additional tax of 52 cents per hec-' toliter on wine and $1.20 on alcohol, temporarily added to meeta special necessity and as a " surtaxe." This additional impost yielded last year. 1,500,000 francs in Marseilles. S traw x^ET 100 kilograms (220 poands) . Oats do... Corn and barley do... Bran and shorts do... Firewood do... Charcoal do,.. Mineral eonl do... Cement, lime, and plaster do. . . Asphalt and bitumen .do. .. ilricks and tilea do... vinegar per hectoliter.. $1.00 Alcohol, crude, forburriing only ]. .50 Dried and cured meats perpound.. .02 Lard, salt pork, salt beef do 015 Freah cut meats do 025 Dressed chickens and potted meats -do 015 Live cattle do OOG Live hogs do 008 Calves, lambs, kids do 015 Game, animals do Oi Game birds do 05 Live chickens each . . .04 Live .geese, turkeys, suinea-lbwls, and pea- cocks each-- .12 Dressed geese, turkeys, guinea-fowls, and peacockb per pound-. . 015 Pigeons per pair. . . 02 Fish perpound- . .015 Oysters and other shell fish in shells-do 01 Ice do 005 Strawberries per quart.. . 02 Truffles perpound.. .15 Chestnuts do 005 Butter and oleomargarine do 02 Cheese of all kinds do 01 Eggs do 005 Hay per 100 kilograms {220pound3).. .24 The octroi of Marseilles vielded during 1886 a gross revenue of 8,100,000 francs, or $1,563,300. MUNICIPAL TAXATION AND EXPENDITURES AT MARSEILLES.. Euildiug stones per cubic meter.. Marble per 100 kilograms.. Plate-glass do . - . Window-glass, ordinary do .. Tallow aud grease do. .. Toilet soaps do .. Candles : Tallow per 100 kilograms (320 lbs) . Ste.iric do . . . White lead, varnish, and paints . do... Iron for building pui poses do . . . Lumber and timber per cubic meter. . $0.20 .50 .30 .12 .10 .20 .08 .07 .30 .05 to, 20 .50 to 1.40 .20 to. 24 . 1.00 . .01) . .40 - 5.00 . .40 . 3.00 . 1.60 . .40 ; .00 I to 2.20 We come iinally to examine the practical application of this elabo- rate system of taxation by the city government of Marseilles. For this analysis tlie municipal budget of 1886 is chosen, audit will be necessary for the sake of clearness and accuracy to employ the French currency. It has been staled in this report that the fixed revenues to be derived from the four direct contributions in the commune of Marseilles for the year 1886 were estimated by the National Government as follows : Franca. Tiixes on real estate 1, 540, 270 Capitation taxes aud tiixes on rents 1,180, '08 Taxes on windows and doors 763, 405 Business licenses 2,308,53d Total 5,794,991 This sum, although far below the revenues actually required to be gathered in Maiseilles from the sources above specified, formed the priucipal upon which to levy the additional centimes or percentages which might be found necessary to raise the anticipated revenues to the required figure. FRANCE. 405 The addition of one additional centime, for example, to tbe taxes on real estate would yield 1 per cent, of 1,540,270 fraucs, or 1.5,402 francs. The addition of 2 centimes to the sum of the four direct coiitribtitious would produce 115,899 francs, and so on. Under the laws already noted, the council general of the department and the municipal council of the city are authorized to levy additional centimes, within prescribed limits, ui)on one or more of these contribu- tions, to provide for the expenses of departmental governments and meet the deficiencies left in municipal and communal treasuries by the insufficient proceeds of the octroi and otlier local sources of iucorae. The government of the department of BouchesduRlione (in which Marseilles is situated) is charged with the maintenance of certain ■ country roads, the federal courts, the care of the prefecture and sous- prefectures, the barracks and personnel of the gendarmerie, certain of the public schools, justices of the peace, asylums for indigent children and the insane, as well as for the care of the state prisons within its territory. The aggregate of these expenses of the department for tbe past year was 7,203,436 francs. Of this amount 1,898,750 francs were raise>l by means of additional centimes levied on the principal ofthe four direct contributions, as already explained. The remainder was deii ved from various subventions and appropriations from the national treasury, which, being paid from the proceeds of federal taxation, need not be farther separately considered here. Kesuming, therefore, our examination of the revenues and expenses ofthe municipality of Marseilles, we find from the budget for 188G that the receipts for the year included 51 items of general and special taxa- tion, the proceeds of which belonged wholly or in part to the city treas- ury. The more important of these and the sums which they severally yielded were as follows : Bnrial permits in cemeteries 2Jt>, 000 Tiiilions cilv ichoul of medicine and pharmacy' ?5, 000 Taxes on telepliones {10 francs each) . , IG, 00 Surtaxes on wine and alcohol 1, 500, 000 Estimated sales of laud acquired by opeuiuf; new streets 3,^00,000 Loau fur the constiuction of new schools 1, .'00. 000 Suhventiou by the State fur sanitary improvimouts '. 300, 000 Francs. 8, 100, 000 Oue-tliird {city's share) of the fees for permits to sportsmen ' Taxes on dogs Fii-o per cent, (city's share) of taxes on 22, 000 25, 000 5 500 Pees for use of public abattoir Fees of city weighers and gangers — Fees of market stalls and fairs Building licenses 330, Olio 570, 000 750, 000 100. 000 1,903,000 Fees for medical services to public 65, 000 Honts on municipal property 150, 000 Total 19,117,453 Added to this was a sum of 783,458 francs received through sub- ventions from the State and various small revenues not included in the foregoing list. This left a deficit of 2,355,435 francs to be collected from the system of additional centimes in order to raise the grand total to 22,286,393 francs, which was the sum of estimated expenditures for the year. These additional centimes for municipal purposes were levied in eight separate assessments for the benefit of as many special funds. Four centimes were added to endow a certain suburban street fund, 8 centimes were added for the primarj' schools, and so on, the sum of the eight ad- ditions being 40.(i per cent, of the principal of the four direct contribu- tions, so that the total revenue from those sources for Slate and city pur- poses was 5,794,991 + 2,342,776=8,137,767 francs. The municipal expenses of Marseilles for 18SG amouuted, as already stated, to 22,286,61)3 francs, or $4,302,450. It is impossible to give, within 406 EEPOETS ON TAXATION. reasonable limits, the detailed items which make up this large sum. The following list comprises the principal ones, which may, if desirable, serve for comparison with corresponding expenses in American cities of similar size and population, it being understood that Marseilles Las, by the census of August last, 376,143 inhabitants. Francg, Police department 980,300 Lighting and tieatiug municipal build- ings. 467,227 Department of public healtlt 1, 053, 030 Salaries and other expenaes of octroi system 1,239,300 Expenses of public abbattoir 64,050 Repairs and care of public buildings. . . 194, 310 Caieof public parks and squares 195,080 Bepairs and care of paved streets 200, 000 Repairs and care macadamized streets- 282,800 Cleaning of sewers and urinals 22, 000 Cleaning and watering streets 478,000 Care of Park Borely ((6,110 Care of trees on promenades and boule- vards 50,060 Framx. Lighting of streets, squares, and parks 675,4iiO Expenaes of wat^r- works 779, 590 Fire department 243, Mil Military expenses 68,700 City hospitals 750,000 Care of the insane 200, 000 Pensions to retired municipal employes 348, 904 Charity to victims of small-pox epi- demic 76,000 High schools, observatflry, conservatory of music, and school of art 440,070 Common schools, and cr6ches 1,633,405 Public ffites 110,000 Interest on various municipal loans . - . 5, 836, 387 16, 354, 326 The foregoing items, amounting to 16,354,326 francs, cover most of what may be called the ordinary expenses of the city government, which Eire nearly uniform from year to year. The remaining disbursements, 6,656,238 francs, iacludea long list of expenditures for various repairs and improvements in streets, pave- mepts, etc., subventions to the opera and numerous societies and asso- ciations, purchases of works of art, purchases of property needed for public purposes, and for other incidentals. By reason of the cholera epidemics of 1884 and 1885 and the com- mercial depression due to that and other causes, more or less gpneral throughout Prance, the municipal finances of Marseilles are now in a very unsatisfactory condition. A statement presented yesterday to the newly-elected council by the incoming mayor shows debts due to the department, the hospitals, the gas company, and other local creditors amounting to 3,411,000 francs, against wliich there are only 284,000 in available resources, leaving a balance of 3,157,000, for which jiro- vision must be made by loans, the levy of still more additional centimes, or other extraordinary measures. Such is the natural heritage of an epidemic which, by simultaneously increasing expenses and diminishing revenues, must inevitably throw out of balance the financial machinery of even the most carefully-managed municipality. Prank H. Mason, United States Consulate, Consul. Marseilles, May 10, 1887. MUNICIPAL ADMINISTRATION OF BERLIN, WITH SPECIAL REFER- ENCE TO ITS FINANCIAL SYSTEM. REPORT OF aONSUL-QENERAL RAINE. In Berliu, as well as in all larger cities of the present age, the wante of the community have gradually assumed so multifarious a character that wise political economists deem it one of their great tasks to devise ways and means to meet unavoidable demands and to evade at the same time apparent injustice or partiality in the imposition of taxes. GERMANY. 407 No city on the European continent has furnished us with more in- structive suggestions in municipal government than Berlin. Berlin has in rapid growth surpassed within the last twenty-tive years all other cities of the world outside of our own country. This development, not anticipated a few decades ago, must be considered the result of a number of favorable circumstances. The nearly central geographical situation of Berlin, both for drermany and Europe, found its full value with the era of railroads, the industry and frugal habits of its inhabitants, the de- scendants of different nationalities, who transferred their industrial skill, training, and experience to Berlin ; all this contributed to create a homogeneous population, guided by the same aspirations for culture, de- velopment, and progress, until finally the remarkable political events of latter years made Berlin what it is. But Berlin is at present not only the seat of one of the most powerful "sovereigns, it has also gradually risen to the position of a chief center of trade and exchange on the continent, where international accounts are adjusted and great loans negotiated. Berlin, with a population reaching nearly 1,400,000, occupies an area of about 6,310 hectares, or 60 square kilometers, and, with the number of its inhabitants, it would constitute it the seventh of the twenty-six confed- erate states of Germany. Before I proceed to review the sources of revenue and the expendi- tures, the merits and demerits of the financial system of the G-erman capital, I will preface my report with a brief history of Berlin, showing tt) what extent the experience of the past political institutions and laws have aided in establishing the present financial system of Berlin. I. — BRIEF HISTORY OF BERLIN. Prior to the year 1307 Berlin consisted of two cities, Kolln and Ber- lin, which, formerly fishing villages, situated on the Spree River, in the thirteenth century were raised into cities. As early as 1308 Berlin took the lead of the City League of the '• March" (Brandenburg), and . entered into alliance with the then powerful North German Hansa, a commercial league for mutual defense in the Middle Ages, when Ger- many and her neighboring seas were infested with tyrannical feudal chiefs, bandits, and pirates. Berlin, exposed constantly to severe struggles, could maintain itself only under great difliculties, until, with the energetic measures taken by the Burggrave Frederick von Nuremberg, the first prince from the dynasty of Hohenzollern, order and tranquillity secured a better de- velopment of the place. Although the city lost several rights of sover- eignty, both to the new ruler of the country and to Frederick II, his successor, it became the chief residence of these princes, and thus its destiny became ultimately connected with that of the new dynasty. Since 1539, when the Elector, Joachim II, introduced the reformation in his country, Berlin gained in extension, giving shelter to many skilled" artisans or artists^ who fled to Berlin from the Netherlands, then under Alba'srule. At theend of the sixteenth centurythe population of Berlin hardly exceeded 1,200 persons in number. During the thirty years' war Berlin was exposed to bitter oppressions and trials, repeatedly invaded by one or the other of the belligerent forces. At this time the population of the combined city (Berlin and Kolln) was again reduced to about 1,200 inhabitants, their suburbs having been laid in ashes and the city itself presenting a sad picture of devastation. 408 REPORTS ON TAXATION. At tbe end of the thirty years' war, under the provident and ener- getic government of the Great Elector, a better state of things came with the growing siguilicance of the state. Owing to tlie reception of numeious foreign colonists, especially of Huguenots, expelled from France (1685), the unmber of inhabitants rose to 20,000. A period of about forty years sufficed to raise Berlin into better condition than at any time previously. Trade, art, and science had found on the banks of the Spree a safe refuge and grew vigorously. In the reign of Frederick I, the first King of Prussia (since 1700), tbe growth of Berlin continued with the increasing immigration of indus- trial foreigiters encouraged by attractive privileges. Under the second King of Prussia, Frederick Wilhelm I, the i)opuiation reached tbe num- ber of 90,000 inhabitants, numerous protestants expelled from Bohemia and Salzburg (Austria) having found in Berlin an asylum. New suileriugs came during the seven years' war, under the King, Frederick the Great, though this King did all in his power to revive iu- dustry a.nd trade. He ordered the erection of many new buildings, and, at his expense, the establishment of large silk factories, weaviug, dyeing, and printing mills, and enlarged the Eoyal Porcelain Manu- factory, founded in 1751. Soon the previous wealth and splendor were restored to Berlin, and when " Old Fritz " departed this life Berlin numbered 140,000 inhabitants. Under King Frederick Wilhelm II, silk industry had developed to such an extent that Berlin alone pro- vided Northern Europe with its silk manufactures. KingFrederick Wilhelm III followed. Under him, in consequence of the fatal battle of Jena (against Napoleon), the old order of the Prus- sian monarchy collapsed suddenly in 1806. Great efforts were made to reorganize the state. One of the achievements of that time was the adoption of the so called " Staedte Ordnung" (cities' act) framed by the renowned statesman Stein. A new time of self activity and participation of the citizens in their communal affairs commenced for the lasting benefit of the community. When in 1813 Prussia rose to shake oft' the yoke of the Corsican, Berlin joined Eastern Prussia in the great movement for the "libera- tion of the Fatherland." With the restoration of international peace, Berlin's internal devel- opment grew rapidly, and the city became the capital also for those . provinces which under the Vienna treaty had fallen to Prussia. In 1840 King Frederick Wilhelm IV ascended the throne. Under him, in 1848, the year of European revolutions for liberty and equality, Berlin was the scene of disturbances and riots, partly of a socialistic, but to a greater extent of a political character. Until then Prussia had been an absolute monarchy. In the year last mentioned the peo- ple demanded a share in government, a constitution. The peaceful King yielded; a provisional representation of the people was convoked; , their combined deliberations resulted in the promulgation of the Prus- sian Constitution, January 31, 1850, which is still in force. Another movement in iS48-'49 for the re-establishment of tbe Ger- man Empire failed, although a provisional German parliament under a vice regent already existed, and a large portion of the German people desired the King, Frederick Wilhelm IV, to be proclaimed- Emperor of Germany. He declined, however, to accept the imperial crown from the " bloody hands of rebellion." Tlie wishes of the German nation were finally realized by the brother of the last King, the late Emperor William, and Berlin became with the establishment of the German Empire its capital. GERMANY. 409 II.— NATURE, ORIGIN, DEVELOPMENT, AND EXTENT OF PRUSSIAN MU- NICIPAL LAW. The complex subject of the Berlin administration can hardly be under- stood without recurring to Prussian and German administration law in general which contains as species municipal law and state law. (a) DEFINITION OF GEMEINDE (COMMUNITYj. According to German jurisprudents, for instance Von Holzeudorfi', the German word " Gemeinde" (best translated by the French commune) in its broadest acceptation means, abstracted from peculiar corporations for ecclesiastical, educational, and other purposes, any body-politic oo-, cupying a certain district of the state-territory for local purposes in common. There are in Germany Gemeinden of a higher and lower class, such as provinces, kreise (arrondisements), cities, townships, and simple Gemeinden of the country (local communities). The extent of a Gemeinde need not coincide with the compass of a certain place. A Gemeinde may embrace several villages, hamlets, manors, and farms. But the most important division of local communities is that into towns or cities and into rural communities (Landgemeinden). Both have an entirely different history, which anciently laid the foundation of principal differences in their nature. At present both city communities and rural communities are, in principle, nearly iden- tical. According to the present acceptation, prevailing in Germany, the "Gemeinde" implies or includes a double function, viz, to live as link of a higher organism and as a self-existent organism. This present acceptation of the nature of German communities lies between two extreme acceptations, of which one, prevailing in the Middle Ages, considered the "Gemeinde" as an entirely absolute po- litical body, and the other acceptation, still prevalent in France, which sees in the "Gemeinde" nothing but a state institution. (i) HISTORICAL DEVELOPMENT OF COMMUNAL LIFE. When the Germanic peoples appeared in history, a state, in the true sense of the word, was unknown to them. Their entire organization rested on communities of larger or smaller extent, of which the smaller ones (local communities, free village communities, and "March" com- munities) for all their internal concerns, were altogether independent and only for affairs of a more general character subordinated to the corporations next following in rank (YolksGau-and Huuderschalits- Geuieinden). In the course of centuries, with the ascendency of feudal and patrimonial ideas, such free communal constitutions were more and more impaired and repressed. But always even such country com- munes as were subjected to manorial lords remained, with regard to their interior affairs, independent corporations in their communal as- semblies, exercising rights of autonomy and self-administration. Above all, however, there rose, within the last four centuries of the Middle Ages, quite a new and mightier communal freedom in the cities which, virtually, became independent republics of a larger or smaller sphere, and used to be subject only to a monarchical protective power which was incumbent, at one time, on the Emperor, at another, on the sovereign of the respective country. The importance of the cities of the Middle Ages was in all respects also, with regard to constitution and 410 EEPORTS ON TAXATION. law, not a slight one; here birth was given to the ideas of modern times. Those cities have as the first within their precincts and walls re-awakened to life the extinct idea of state and carried it out even in its details. But to be able to develop, instead of the antiquated '• city-state," thei modern " areal state" on a Germanic basis, the cities, having accom- plished their task, had to transfer their mission to a higher union. Such a union was in Germany represented by the sovereign. The new "coun- try state" was, according to its intrinsic nature, inconsistent with the contiiiued existence of the ancient comumnal independence, by virtue of which the municipal corporations appeared as states within the state. The uninterrupted strife of the state tended to deprive the communities of their state functions and to concentrate them upon the one undivisi- bie state power. In a one-sided exaggeration of the idea of state it was thought necessary to derive not only all political, but, in general, all public life from one single source. Apart from smaller states, only England knew how to found a central and comprehensive state union without annihilating the historical free- dom of the communes. On the European continent, however a system of state tutelage expanded more and more, under the pressure of which municipal life, once so vigorous, languished and decayed. Nay, the op- pression of the communes was held in direct proportion to the extent, fertility, and vigor of the state idea. Thus, in Germany, that state which above all was called upon to be the supporter of the Germanic state idea, Prussia, proceeded most rigidly to cut down municipal freedom. While the path was prepared for liberating persons and things ftom bondage, the communities of the country were thoroughly calculated and construed to be districts of mere political administration. The cities were divested not only of their own jurisdiction and police administra- tion, but even of the right of selecting their own authorities and of sell- administering their own property. An example may here be cited. In the reign of the Prussian King Friedrich Wilhelm I, the property of cities was pronounced to be the property of the iisc (state treasury);, for which reason the surplus of the city budgets had to be delivered to the royal treasury. Instead of the old town council, a simplified mag- istracy was, directly or indirectly, appointed by the royal chamber. Those vexations lasted until the French revolution, towards the end of the last century, gave a warning example not to impair natural rights to the utmost. The new muuicii)al system which was founded by the French acts (specially of 28 Pluvidse, an VIII, 2 Pluviose, au IX, and 16 Thermiuor, au X,faud imitated by many, especially western German states, was based upon the simple and plainly expressed idea that tlie "commune" is nothing but a geographical subdivision of the state territory, and the burgesses of a city nothing but a numeral division of the subjects of the state. An appointed prefect or mayor governed this iiortiou of state as an obedient and unresisting agent of the central power. In Germany, however, the order of the French municipal system was neither permanent nor complete enough to annihilate communal life one thousand years old. However deep the old corporations had fallen, yet they presented the connecting link for reformatory legislative or- ganizatinu, which created and continually expanded the frame for development of a modern municiiml lile. The conspicuous model of the modern German legislations was estab- lished by the very same state in which the idea of state had militated GERMANY. 411 most rigidly against the municipal freedom. The Prussian "cities act" of Steiu, already alluded to, of November 19, 1808, recognized again for tbe first time the city as an independent civic commonwealth. He charged it with the self-administration, imposing on same self re- sponsibility; and he created, in addition to a " magistracy" (magesterial senate)., a body of aldermen (Stadtverordneten) in a representative capacity, elected by the burgesses. A bold spirit pervades this act hardly equaled by any subsequent act, however high-minded in detail such may have been. In grateful remembrance of this work, the city of Berlin erected, a few years ago, a costly and beautiful monument to Stein, the modern " builder of cities." III. — OENERAX DOCTRINES ON THE SO-CALLED ADMINISTRATION LAW. ■'• Without entering further into details as to all the subsequent legis- lative amendments in relation to special municipal law in Prussia, some striking features may be given of the present status of Prussian admin- istrative law established in recent years by reform legislation on the subject of administration of ail communal corporations of however ex- tended spheres, viz, state, provinces, Kreise (circuits) and local com- munities; and some notes shall be added as to their mutual relations and to the Empire. (a) CONCEPT AND ESSENCE OF PRUSSIAN ADMINISTRATION. According to Prussian jurisprudence the generic term " adminis- tration " means here the execution of collective interests by the com- petent organs of the community or commonwealth concerned. Administration law means the totality of juridical principles after which such administration is conducted. The collective interests of the state community (commonwealth) are identical with the object or pur- pose of the state; they are implied therein. Hence the administra- tion is also that activity which is intended for the execution and at- tainment of the purpose of the state. This is done in two directions. On one hand by the establishment of abstract norms to regulate gener- ally the relations of the citizens ; on the other hand, by arrangements intended only for a certain sphere of relations or for concrete cases. The former activity divides into legislation and justice, the second is administration in its proper and narrow sense. Justice and adminis- tration are only different emanations from the executive power of the state. In this meaning, i. e.,m contradistinction from justice, the word "administration" is usually understood in Prussia, and the legislative activity divides accordingly into judiciary and administrative legisla- tion, and correspondingly the organs of the state divide into author- ities of justice and authorities of administration. (6) JUKIDIC CONTROLS OF THE ADMINISTRATION. Considering the arbitrarycharacterof the administration which mostly has to conform to the requirements of concrete cases, legal supervision had to be provided for in order to protect the individual against en- croachments on the part of the administration. The solution of this problem has been attempted in Prussia gradually and under great dilfl- culties by means of the following iiistirntioiis and exjiedieiits; A com- prehetislve right of complaint and petition; the admission of a so-calhd 412 EEPOETS ON TAXATION. " administrative justice"; the development of the principle of self-ad- ministration ; jurisdiction of the ordinary courts of justice, and the re- sponsibility of the officials both under the civil and criminal laws. (a) Bight of complaint. — This is a right to repeated examination and rendering decision as to a given case complained of, by different author- ities of resort; such complaint must be filed with the first superior au- thority of record, the inferior being bound by the decision of the supe- rior. From the right of complaint emanates the right of petition to Parliament, but this latter right can not be exercised until the former right of complaint has gone through all superior instances. (b) Administration justice. — This peculiarity of the Prussian organiza- tion consists in the administration justice (separate from the ordinary courts of justice), being exercised by independent courts subject only to law, a court which, in its inferior and mediate resorts, constitutes at the same time administrative authorities, while in the highest resort (proc- ess of a suit) there exists an independent court, the members of which occupy the position of judges. All matters left to the decision of the administrative courts respect public rights with which private interests might have entered into col- lision. (c) Self-administration. — The participation of the citizens in the cur- rent affairs of adrninistration by exercising a so-called self rule grauts to the individual protection against arbitrariness of professional offi- cials, and to the whole people a steady insight as regards the nature and the working of the administration. It is true that this very pro- tection may be misused for the benefit of any i)arty prominent at the time. To avert this evil the competencies of administration in Prussia, are, as a rule, and in all important matters, not bestowed upon boards of mere self-administration, but upon boards in which state officials co-operate with members elected. Those state officials have the right of opposing any resolution that may be passed in the interest of a po- litical party to the detriment of the inhabitants in general. (d) Protection by ordinary courts of justice chiefly appears in three di- rections, viz : (1) Determination of disputed private rights independently of the administration and its varying maxims. (2) Administering the penal laws independently of the political party stand-point of the predominant governmental or administrative system. (3) Control of the lawfulness of the administration by the exceptional adjudgment of such legal questions as result from the management of the administration proper. As there is no fixed limit between matters of justice and administra- tion, the question how far the competency of ordiunry courts extends and where that of administration authorities and admi.nistrativo courts begins is one of the most disputed of public law. To decide such ques- tions at issue a special court in Prussia is officiating, viz, the court for deciding conflicts as to competency. IV. — SPHERE OP ADMINISTRATION IN PRUSSIA. In all modern states appear as administrative departments, (1) for- eign office; (2) department of war; (3) judiciary; (4) finances; (5) interior. The fifth and last serves to realize the purpose of state in social re- quests. To these belong all political acts directed towards order, tran- quillity, protection, promotion of scientific, intellectual, and matarial GERMANY. 413 aspiration of the inhabitants, as well as the maintenance of the state organisms, etc. Owing to this great extent of competency an elimina- tion of three subdivisions out of the last department became advisable in Prussia. These eliminated three departments were coordinated to the live older ones above enumerated, viz, (6) church and educational de- partment; (7) agriculture, domains, and forests; (8) trade, industry, and public works. With the increasing importance of the latter department another new one, viz, (9) the ministry for public works, was established. Thus Prussia has now nine ministries. As to the administration of the Empire no such sharp separation of departments exists. Its organs are, (1) foreign office ; (2) imperial office of the interior; (3) judiciary; (4) treasury office ; (5) post and telegraph department ; (6) admiralty; (7) railroad department ; (8) invalid funds office; (9) auditing and comp- trolling office ; (10) indebtedness of the Empire; (11) office for the ad- ministration of imperial railroads ; (12) board of directors for the bank of the Empire. Also, in the Empire all such matters are placed under the control of the imperial office of the interior as do not come within the province of any of the others. This is, for instance, the case with the federal office for homestead matters, the patent office, the national board of health, the imperial board of insurances, the supreme navigation office, bureau of statistics, the gauging office for measures and weights, etc. Under the constitution of the German Empire a large number of ad- ministrative affairs have been taken partly or entirely from the individ- ual German States — thus the war and navy, post, and telegraph de- partments. v.— PEUSSIAN LEGISLATION SINCE 1872 AS TO A EEPOEM OP ADMIN- ISTEATION. As already stated heretofore, prior to 1808 the administration of the Prussian state was, in harmony with the character of the time, based upon an absolute central and hierarchic bureaucratic system. Juridic controll- ing institutions or self administration did not exist. Steiu, reorganizing the Prussian state in 1808-1815, gave the first impulse. As such step must be regarded the introduction of administrative control through the or- dinary courts- at-law, the idea of self-administration found application only in mere communal affairs of cities under the new cities act, later in the provinces act (provincial ordnung), and in the "kreis-ordnung" (Constitution for circuits). Even the Prussian constitution of 1850 did not speak of self-administration. In the meantime science and intelligent practice demanded a change in the existing state of things, not only in the local communities, but also for higher grades of commonwealths, viz, circuits and provinces. ' Even the state administration felt the indispensable necessity of being exonerated from detail work, i. e., to effect decentralization. New provinces (1866) with di-fferently organized administrations having been annexed by Prussia, also an external circumstance served to require uniformity in administration. Thus a reform of the interior administra- tion of Prussia commenced, directed towards decentralization and iii- troduction of self-administration, as well as juridic controlling insti- tution. The act called "kreis-ordnung" (circuits act), December 13, 1872, was the first result of those efforts. 414 REPORTS ON TAXATION. Based ou like principles the so-called " provincial ordnung" (prov- inces act) was enacted June 29, 1875, for the provinces, and as superyi- sory control authority on " oberverwalt-ungsgericbt (supreme adminis- tratioa court ") was created for the whole of Prussia. VI. — PRINCIPLES OP ORaANIZING ADMINISTRATION IN THE PRUSSIAB STATE. State and communal administration have been distinguished from each other by various names of not always congruent definitions, viz: Central and local administration, state and self-administration, cen- tralization and decentralization, magistratic and economical adminis- tration. The essence of a magistratic A lies in the competency to carry out the state will by application of the coercive power of the state. By economical A, however, is meant the procuration and use of material means requisite to attain public purposes. (a) THE LIMITATION OF COMPETENCIKS BKTWEEU STATE AND COMMUNE. This is diificult and can not possibly be determined after a fixed rule. It follows from the nature of the subject that administration is always a matter of state wherever its tasks require a uniform solution, and only a rigid centralization of the organs and a consequent subordination of the members (links) can result in a beneficial execution of the state will. At present this competency of state extends over foreign affairs, army, navy, and justice, but so far as the provinces of finances and of the interior are concerned a competition between state and commune takes place. The communes are corporations or associations of a public legal char- acter, like the state resting on a territorial basis and a compulsory membership. They distinguish themselves from each other only in a quantitation, not in a qualitative respect. The commune is an image of the state en miniature ; in its sphere of activity it has to pursue es- sentially the same ends. What tasks fall in this respect to the .com- munes can hardly beenumerated. Their number depends on thereadiness and ability of the population for the assumption of state functions and on the extent and efficiency of communes. At any rate the Prussian state uses to a considerable extent the services of municipal authorities for the attention to mere state affairs, such as collection of taxes, police administration, keeping registers of military enrollment, etc. (6) PRUSSIAN ORGANISM OF AUTHORITIES. (A) State aiitlioHties. (1) Central auiliorUies : (a) State counci!, (6) state raiuistry, and (c) nine ministriM or departments above enumerated. (2) Mediate aathorities : (a) President-in-cliief of a province, (6) residents and gov- ernments of the governmental districts (each province having two to four of snob dis- tricts), (c) the landrath (prefect) of a kreis (circuit). All these single functionaries are assisted by a body of self-administration for tie district placed under their government. (3) Local authorities of state do not exist for the single communes. Only in larger cities the police administration is vested in royal po- lice departments, the chief of which is generally titled police president As far as the German Empire is concerned "the same has organized only central authorities, as above described, using, in particular, the services of the authorities of the confederate states for the exercise of administration. GERMANY. 415 ') Communal authorities (1) Of provinces are the provincial diet. Business is conducted by a provincial iftiniittee and the " laudes-director " (director of the coniury). OS. B. — The eitij of Berlin has the rights and duties of r art, science (archives, museums), education, relief and loan funds, astitutions for insane, blind, deaf, dumb persons, idiots, houses of cor- ection, sheltering of orphans, and reformatory for children. , For defrayment of the costs of this administration provinces receive nnuities from the state treasury. This kind of administration exists eparate from and beside the state administration. To a far greater extent the communes are intrusted, or rather charged, rith tasks of state administration, namely : Care of paupers, the collec- ion of state taxes, keeping the registers of marriages, birtlis, and deaths, rimary schools, keeping registers of enrollment, contributions or serv- :16 REPORTS ON TAXATION. :',fts for the army and navy, construction of public roads, and the main- unance of i)olice force. For these purposes the state grants no Eieans, for which reason tTje fficiency of the communes appears toi be taxed to the utmost. Yet in ase of overburdening the superior municipal corporations they are ntitled to relief. Thus, considering the multifarious tasks imposed upon the communes, hese latter appear as the forces of the whole public life and as the hasis t the entire state structure. Therefore the maintenance of communal fficiency constitutes the main problem of legislation. ai. — RELATIONS OP THE BERLIN CITY GOVERNMENT TO THAT OF THE STATE. As above stated, the present communal constitution of Berlin is de-' iyed from a state law, known as the " Staedte ordnuug" of May 30, .863, a revised edition of the old "cities' act" of 1808, schemed by 5tein. This cities' act declares the community to be a corporation subject to the upreme supervision of the state, but concedes to it self-administration i n a measure, defined by the law, and permits it to make supplementary y/' tatutory regulations as to all matters regarding which the " cities' act" ' ' s silent, or permits variations. Such regulations require the confirma- ion of the state authority. : ■. ; The supervision of the state in the affairs of the community is vested,,, /'iS ixcept in particular instances defined by law, in the president iii chief' ober-prasident) for Berlin, who is appointed by the sovereign, and, upon '" ippeal, in the minister of the interior. All appeals against decisions in Qiinicipal affairs to this authority must be made within a prescribed )eriod. When a resolution is passed by the board of aldermen, or the magis- racy exceeds the limits of its authority, or is unlawful or injurious to he welfare of the state, it becomes the duty of the state supervising buthority to cause the first burgomaster to prevent, for the time being, he carrying out of the measure objected to, and to report at once on he subject of the resolution to that authority, which then renders the lecision with a statement of the grounds upon which it is based. When ,he board of aldermen fails or refuses to enter; upon the budget the )urdens legally resting upon the community, or to make other extra- u'dinary provisions for the same, it devolves upon the state authority ;o cause such entry to be made, or itself to fix the amount of the extra- )rdinary expenditure. The board of aldermen may be dissolved by a lecree of the sovereign, in which event a new election must take place vithin six months, the functions of this body being in the mean time )erformed by commissioners appointed by the minister of the interior. : In case an understanding or agreement is not reached between the )oard of aldermen and the magisterial senate in matters which the laws lirect shall be carried into effect by the latter body, the decision rests vith the ^tate authority. The consent of this authority is also neces- sary for the alienation of real estate owned by the city, for the sale or naterial alteration of objects which possess a particular scientific, his- ;orical, or artistic value, and especially of archives ; for laws which im- lose a debt burden on the community or increase an already existing nm. Its consent is further necessary in order to raise money for ma- licipal needs by the addition of a percentage to certain state taxes, in ixing the compensation of salaried members of the magistracy, and for shanges made in their pensions. GERMANY. 417 ; will be seen that the state has reserved to itself very extensive its of surveillance over and intervention in the local government. occasion for the intervention of the state authority has existed, it ns, heretofore, and it is only of late that strife has disturbed the aer harmony of the two municipal bodies and the electors of Berlin. 1 good and harmonious working of these two bodies is no doubt due , great measure to the peculiar constitution of permanent executive imittees, in which both bodies are represented, and to which com- tees the greater part of the municipal business is entrusted. a Berlin such permanent committees, by which the affairs of the ' are chiefly administered, but few branches being reserved for the ^istracy alone; and but few occasions arising in which it is necessary t this body should act collectively, are mixed, being constituted one- ■d of members of the magistracy, and two-thirds of the members ;he board of aldermen. These committees are assisted in the dis- Tge of their duties by sixty citizens, experts, who are qualified ers, appointed by the magistracy with the advice of the board of ermen. )he following are the various branches of business administered by committees and subcommittees constituted in the manner above in- ated : City real property. Lighting. City taxation. City indebtedness. City sclaools. Library and archives. Provincial museum. Churches. The poor. Care of orphans. Work-house, insane asylum, idiots. City hospital. Sanitary matters. Parks and gardens. Building. Sewerage. 17. Fire insurance. 18. Fuel. 19. Stationery. ' 20. Local police. 21. Street cleaning. 22. Industry and trade. 23. Water-works. 24. Statistics. 25. Unpaid taxes. 26. Invalids and veterans. 27. Military enrollment. 28. Quartering of soldiers. 29. Civil registration. 30. Servants' reward fund. 31. Charity institutions. 32. Finance. FINANCIAL ADMINISTRATION OF BERLIN. [ commence with some translated extracts bearing upon this topic im the "cities' act" above referred to: Title I, 5 4. All inhabitants of the city territory have the right to the joint use of 1 public communal institutions of the city and are bound to share, in conformity th the provisions of this act, in the municipal taxes of the city. ntle 8, § 53. To the extent to which the revenues from this property of the city not suffice to procure such pecuniary means as are requisite to meet the wants and > liabilities of the community, the board of aldermen may resolve upon levying nioipal taxes. These may consist — ;i) In taxes collected in addition to the taxes collected for the state, in which le the following provisos shall be applicable: (1) The tax for the trade of hawkers or peddlers shall not be burdened thereby ; (2) Eeal estate situated ontside the community shall remain out of account ; (3) The approval of the Government shall he required— (a) for all taxes m addi- tion to income tax; (6) for all taxes to be collected in addition to all other direct taxes, if soch additional tax either exceeds 50 per cent, of the state taxes, or should not be distributed in equal proportion among these taxes. Such approval is not provided of the last class— "paying class"— tax shall be entirely exempted or pay a lower amount ; (c) for all taxes in addition to the indirect taxes. . II) In special, direct, or indirect municipal taxes, which require the approbation the Government, in case of their being newly introduced, enhanced, or altered in sir principles. 1 418 REPORTS ON TAXATION. COMMUNAL HOUSRHOLD OP BERLIN. The said cities' act provides furtlier (Title VII) that annually, at the latest in October, the magistracy is required to make out a hudget of all municipal expendi- tures and revenues that are susceptible of being calculated in advance, which, after it has been open to public scrutiny at prescribed places for a certain period, must then be definitely settled by the city council, a copy of the same being supplied to the supervisory council of tli5 state. The following figures and data are taken from the budget approved for the fiscal year ending March 31, 1888 : Item. JleveDues. Expendi. tnres. I. — Exchequer adiainistration. (1) Real estate within the city.. {2) Real estate oatside the city . i3) Liioeatone quarry (4) Privileges — {a) Miscellaneous (Ij] Public scales (c) Market-stnnd moneys. ... id) Unclaimed inheritances . Marks. 34, 000 34, 6.50 52, 000 6,000 Marks. ■iTl, 442- 78.113 67, 700 126, 650 Total I , Marks. 111,061 23, 837 3,310 5,500 8, 30! !,O00 158,910 It. — Management of city works. Surplus from — {a) *4as- works (6) A\'Mt,er. works \c) Sewerage (rtdditinnal amount) id) Ci'ntral cattle.yard (e) Market halls 4,891,750 1,406,078 i8,062 Total II 6, 595, 828 2, 5S8, 06! III.— Tfl^ administration. (a) Rental tax (Of per cent, nf rental or lease valm^) (b) House tax i'l?^ per cent, of total proceetis of ntilization of premises) (c) Dog tax (9 marks per dog, yearly) {d) Municipal income lax (100 per cent, of the class tax or state income tax) * (/) Tax on ambulatory stores of goods. 12, 100, 000 4, 200, 000 290, 000 13, 166, 193 160 Total III IV. — Adminlut ration o/ capitals invested and debts. (a) Interi at (iom capital.'^ invested lb) Re-iiuhnrsonients paid bv licensed gas.works out of their sinking fuud.s fur )oi.n made to them by the city in 1869 (c) City sinking fund i'or pavment of df'bts (sinking fund) received out of the treasury of the city works, viz: Marks. 30, 000 375, 854 (a) (xas-works account (b) "Water-works account ie) '^ewerago account id) <>ntrarcattle-yard accounj:, (e) Market hails account 2l&rks. 465, 891 716, 142 945, 288 166, 696 114, 000 For payment of interest received out of the treasury of the city works, viz : Marks. ia) Gas-works account 433, 9o6 ib) Walcr-works account 1,585,041 (c) Sewerage account , 2.9.34,604 id) Central cattle-yard account 472,716 {e) Market lutlls account 567, ieo Sundries For mortgages' interests (real estate purchased for school purposes) Total lY. 30, 206, 643 2, 407, 016 4.0fn 181), 000 200,000 3,070,942 6,SN 113, 245 8, 800, 897 10,433,887 *It wonld seem that a tax indicated by (c), amounting to 450,000 marks, has been omitted. GERMANY. 419 Item. V. — Education department. ligher scliools for boys (100 marks yearlj- school money per boy)^ (a) 11 gymnasia .' ' lb) 7 real-gymnasia (c) High-real schools Id) High bnrghcrs' schools (80 marks per boy) Total VI Z'oung ladies' hij;h schools (100 marks yearly school money) live schools.. Establishments for gymnastics \ Scientific school programmes Primary schools (no school money) Marls. Real estate 46,931 Fines for not visiting school 1, 400 Sundry receipts 23,200 School for deaf and dumb persons Schools for continued instruction of former visitors of primary schools and libraries Industrial education Total T -Ecclesiastical purposes VII, — Pauper department. Paupers — (a) Privileges (b) Re-imbursements (c) Sundries Marks. 20, TOO 4,20, 000 200 Belief Hospitals of the city (church money, burials) . Orphans Interest from real estate, receipts from church, re-imburse- ments, proceeds of gardens, dairy farming, workshops. - Sheltering of badly-nursed children "Working-house, with asylum for persons without shelter Chiefly wages City shelter-house (new) 140, 379 36, 000 Total Vn. Vm. — Hygienic institutions. Infirmaries , Two city hospitals Asylum for insane and idiots . Sundry sanitary purposes Bathing places Disinfection places . Maries. 15, 000 40, 545 Total Vni — Public parks and gardens X. — Building department. Above-ground buildings : High schools Buildings for fire department ; public balances . Marks. 348, 000 2, 826, 600 Streets and bridges; (1) For pavement and drainage (annuity paid by the tram- way companies for streets in which their cars are running) 1, 541, 460 (2) Macadamized roads (belonging to tlje State, annuity from the State), for their maintenance 256,771 (3) Bridges and water structures 1,532,000 (4) Wells - 19 (5) Enlargements of two streets 2, 166, 000 Total X- 8, G7(l. ', '■■ In this totiil nro contained 0,388,500 marks taktn from loans. Revenue. Marks. 600, 364 401,633 111, 202 45, 130 1, 308. 329 387, 030 13, 150 150 71, 531 1,167 1, 800, 897 440, 900 '"28,"375' 88, 291 3,100 737, 045 10,376 247, 900 171, 800 56, 645 485,721 Expendi. tures. Marks. 1, 300, 532 854, 365 227, 355 125, 140 2, 507, 392 465, 764 150, 104 7, 460, 954 66, 182 209, 090 109, 426 11, 064, 962 62, 508 4, 737, 060 187,379 956, 457 72, 000 430, 521 52, 419 6, 435, 836 123, 834 1, 019, 965 1, 54.5, 425 43, 550 131,610 2, 864, 404 24, 728 524, 591 6, S20, 135 9, 512, 124 15, 332, 259 13S— No. 09- -11 420 REPORTS ON TAXATION. Item. XI. — Costs of administration. Salaries, stationery, pensions, relief Marks. (a) State contributions for levy state taxes 195,213 lb) Hortatory moneys 61,500 (c) Costs of saits at law and the like Id) Contributions from city official for the widow pensions fund Total XI . XH.— Police administration. (a) Ee-imbnrsed fees of compulsory execution (&) Contributions paid by private fire insurance companies to pay night guards, telegraphists, firemen Total XII XIII— Cleaning and watering streets Xiy. —Sundi^s. {a) Cemeteries (!)) Civil registries Marks. (c) Annuities, dotations, and taxes for maintenance of streets and macadamized roads of the city 1, 044, 515 (d) Leases for hiring advertising columns 60,000 (e) Miscellaneous 2, 925 Surplus from preceding year 667,592 Kevenue. Marks. 256,713 103, 385 108, 820 528, 918 1,000 456, 072 457, 073 105, 904 Total XIT. EEOATITULATION. I. II. m. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII. XIV. Exchequer department "Public worlcs of the city Taxation aepartment Capitals invested and debts . Education - . Ecclesiastical purposes Pauper department Sanitary institutions Parks and public gardens . . . Building department Costs of administration Police administration Street cleaning, lighting Sundries Grand total. 11,018 19, 000 1, 765, 032 1, 795, 050 644, 905 6, 595, 828 30, 206, 643 8, 806, 897 1, 800, 897 737, 045 485, 721 24,728 8, 670, 750 528, 918 457, 072 105, 904 1, 795, 050 60, 860, 418 DEBTS OF THE CITY OF DEHLIN. (I) Loans: (1 ) Loan of year 1828 at 3J per cent, interest (2) Loan of year 1866 at 4 per cent, interest (3) Loan of year 1875 at 4 per cent, interest (4) Loan of "year 1876 at 4 per cent, interest (5) Loan of year 1878 at 4 per cent, interest (6) Loan of year 1882 at 4 per cent, interest (II) Loan from invalid fund of the Empire at 4 J per cent, interest . (III) Unpaid purchase moneys for premises acquired Total debts . These debts must be placed to the debit of the following account: (a) Of gas-works (b) Of water-works (c) Of sewerage and irrigation fields id) Cattle and slaughtering yards (e) Market halls '. Debts debited to public works Hence, proper exchequer debt of Berlin on March 31, 1885. Increase of debt in preceding year .....*.» GERMANY. 42^ AN ADDITIONAX, LOAN OP FIFTY JIILLIOXS OF MARKS FOB CONTINUANCE OF PUBLI WORKS was last year resolved upon by the board of aldermen at the motion of th magisterial senate, viz, for continuation of sewerage, enlargement o water and gas-works, new bridges, new edifice for royal police depart ment, additional market halls, new hospitals and asylums for insane am shelterless persons, several new high schools, the laying out of the ne^ " Emperor William " street, and enlargement of new Priedrick street. MERITS AND DEMERITS OF THE FINANCIAL SYSTEM OF BERLIN. It can not be denied that the administration of the city governmen shows many satisfactory results, and seems to be conducted with prope economy. Traveling visitors who saw Berliu only a decade of year ago are astonished at thegreat changes it has undergone. In few citie is so large a proportion of territory occupied by pubUc gardens an( parks, and cared for by trained horticulturists. All public squares since special market halls have been erected, are transmuted into pleag ure grounds for the healthful recreation of thousands of children of th neighboring quarters. The constantly extending system of tramways asphalt pavements, and electric lighting, permanent cleanliness of street effected by an army of street-sweepers working at night, not disturbinj day trafffc, excite the admiration of the stranger. The incessant build ing activity creates on the average 700 new front houses a year, many o them being of a massive and costly structure. Several American life insurance companies occupy most prominent streets. The offensive open-sewerage system is being rapidly replaced' by i subsurface or underground system, with utihzation of the sewerage fo agricultural experiments and uses. The high reputation of all pubUc works erected in strict compliano with the scientific requirements of our time is but too well deserved The numerous edifices built for all sorts of schools, whether primary o high schools, are palaces. In short, Berlin makes the impression of : well-administered city, and yet the burgesses of Berliu have of recen years divided more and more into two nearly equal camps of politica adversaries. The present city administration is charged by its oppo nents with fostering exclusively the interests of the progressionist party Like a bill of complaint reads the following statements made agains the present city government of Berlin by a high state functionary (i privy chief councillor of administration), who, in a recent public meet ing held by the conservative citizens of Berlin for electing some nev aldermen, addressed his audience substantially as follows: It is a material error to consider the activity of the city authorities exclusive!; from its economical side, after external communal affairs. The undivided prais heatowed upon good pavement, school-houses, sewerage, lighting, rests, notwith standing, upon a very one-sided opinion, aud leaves out of consideration not onl; the irrational rental tax, as well as the expensive administration of Berlin gen eially, but forgets also to cast a glance upon the solution of the magistratic task proper of the city government, partly derived from the state sovereignty, whic] doubtless is of a greater import than street pavement.' The financial administration of Berlin is, which is often not considered in com parison with other cities (the high additional taxes of which are liked to bo cited ii favor of Berlin's administration), much facilitated by the fact that the state pay a yearly amount of 7,000,000 of marks for personal (salaries, etc.) expenditures oi account of the municipal police administration, while the city pays only 2,400,001 marks of impersonal expenses for the sake of fire and night-watch administration * * * It was not until the present legislation (since 1875) was inaugurated tha the construction of streets was facilitated, and great priveleges were granted to th( adminijst.To.finn n-irAi- anfl no-ninaf". nrliacKnt strftets. Not Until sLQce theu thcse adla 422- EEPOETS ON TAXATION. cents are bound to give gratuitously territory for new streets, to pay the constru tion of the sewerage of the streets, and to maintain the streets for five years. B sides this the state treasury pays to the city an annuity, in all 800,000, for the a sumed duty to coustruot such roads as formerly belonged to the state (iiscal roads) The care for the economical ends of the city, however, does not exhaust the dul of the administration, which to a much greater extent has to exercise also a magi tratio authority, and to which both under the old and recent economical laws a nut ber of duties have been assigned to the city government — duties which show ho important it is, whether or not the city authorities evince a friendly dispositio towards them. The magistracy possesses the magistratic supervisory right over tl guilds, has to decide disputes between employers and their worlsing people; theoit committee, appointed by the magistracy, has important functions as police authorit over trade, and as to granting licenses to tavern and inn keepers. The city ward committee exerts a decisive influence in the execution of the new social-political acl already promulgated or still to be promulgated. All of which is to be taken into consideration in the election of men who are to li members of the municipal magistrates; nor holdslt good that the right of self-admit istration would be supported by the progressive party alone. We see, on the coi trary, that this party at the city hall evinces no sympathy toward the social-politioa reforms, as expressed by the imperial message, but rather inclines to obstruct thei execution. » » » » Another speaker stated additionally, as follows : The administration of Berlin is a very costly one, and rests on false economica principles. Since 1S75 19o-J- million niarlss loans have been contracted, and not on! extraordi ary, but also ordinary expenditures, such as for building of schools, hay' been defrayed therefrom. If this keeps on that way, we have for the mere payment o interest to raise four limes as many taxes as twenty years ago. Up to the present, tin construction of the sewerage alone has required an additional sum of about 8,000,001 of marks for the payment of interest on the capital invested therein. Without in cumbering tne burghesses any further, the current revenues could be increased bj acquiring the profitable institutions of traffic (tramways), gas, and electrical works by a better utilization of real estate owned by the city ; further, by establishing and renting suitable stations for "recreation" in the municipal parks, etc. STEADY GROWTH OF THE OPPONENTS OF THE PROGRESSIONIST PARTY IN BEKLDJ. For the purpose of electing the board of aldermen, the voters are divided into three classes, according to the amount of taxes paid by them (communalj^, circuit, provincial, and state taxes). The first class is composed of those highest tax-payers who pay an aggregate of one-third of the entire amount of taxes paid by the entire body of voters. The second class is composed of those highest tax- payers paying the aggregate second third; and the third class of all the other voters. TiJis class paying the lowest tax rates is, of course, the most numerous, and it is in this class that a movement commenced in 1882 againt a city government alleged to be exercised by exclusive regard for the interest of the progressionist party. Thus among the voters of the third class appearing afcthepolls,forthe election of part of aldermen, there were — Tear. Voters. Progressionists. ConaorvatiTes. Social Demo- crats. 1880 .... . . n 707 11, 707 9, :i3e 33, 392 7,874 1882 331 2,5, 207 t),096 1883 • tiG, oo;! 10,233 7,W 1685 i,m On the subject of taxation itself I refer here to report of Mr. Tan Versen, dated July 2(5, 1887, rendered from this consulate- general, which properly could be here inserted at full length.* * See pagei'i-l. GERMANY. 423 The question wliicli mode of taxation, whether direct or indirect taxes or a combined system may be the most equitable and just, has caused much discussion in parliamentary and other political circles, as well as a copious literature on the subject. It seems, however, that the tend ency of the times points to a mixed or combifled system of taxation having the object in view of bringing all, according to their ability tc do so, within the reach "of contributing to the needs of a commonwealth Most instructive and valuable in this respect seems to be a treatise o: the eminent political economist. Dr. Hermann Scheffler, under the tith "Die Eegeluug der Steuer-Einkommen, und 'Geldverhaltnisse, unc das natiirliche Wahlrecht." ("The regulation of tax-income andmonej relations and the natural elective franchise.") The following demon stration is translated : The tax-paying power of the individual lies unmistakably in his income, by whicl is meant his yearly net income ; therefore the material sacrifice of every man should be a percentage of the income alike for all. If it be admitted that the income con aticutes the true source of taxation, abstracting from the question whether equalnes! of percentage be the correct measure,' nothing follows yet therefrom as to the forn in which taxes are levied. In order to make a person, say A, pay a certain amouni of tax, such tax may, if it is true, immediately be collected from any other person say B, inasmuch as B has an opportunity of re-collecting this tax from the first per son A. Then the direct tax for B is an indirect one for A. The form of levy is evi dently immaterial ; the indirect tax may just as well, as does the direct tax, fulfil the fundamental principle of a just taxation ; it depends entirely upon la regulatior which is qualified to produce a rational effect. The necessary prterequisite of such i regulatiou is to know who, as the true payer of the tax, whether direct or indirect must be regarded. For instance, the ground tax and the trade tax are considered di rect taxes, though to the consumers it is really an indirect tax; all others are indi rect. A bandying of words simply complicates matters for, as opposed to all othei taxes which are indirect, the income tax is the only true direct tax. The tax levied upon any object or establishment, or labor, or person, or any productive thing maj properly be reckoned as a constituent part of the production cost; this regulate* price, and is paid for by the consumer and not by the manufacturer, who only ad- vances the taxes. In comparison with the acknowledgment of the fact that the producer, for com- mon-sense reasons, is entitled to add the tax to the cost of production, it is entirelj foreign to the question to discern whether at any time the producer profits ,by tbt added tax, or whether he gets a higher price for the thing produced, or that the con- sumer is credited with, or may be benefited by, a reduction of the tax. This ac- knowledgment is therefore the only authority to be considered in any court o justice, and there can be no other lawful regulation governing traffic than the prin- ciples of reason and common sense, coming with harmonious conjunction. Accord- ing to this assumption, the income tax is the tax derived from the surplus of the value of the product over the cost of production, or from business earnings, or the net re- ceipts of the producer from which the tax is paid, is the only logical one. The tax systems of the present day have created certain names for certain classes of taxa- tion, which, while specifying that they do not relate to the income do, nevertheless, levy upon the personal belongings which are regulated by income — such is the per- sonal tax. A property tax I do not classify as a direct tax, as it would create an ad- vance in the fate of interest on the capital involved, and of course would be borui. by the one whose capital was invested. When we speak of productions we do nol necessarily understand the wares that are exposed for sale in the public markets. The laborer and the officer, the literary man and the artist are all producers, bodilj or mentally, and the productions of each have a certain money value ; the producei represents the fruits of his working capital in the form of interest or rent ; the ques- tion of the right of capital to interest is not an argument, as thi.s right has long sinct been acknowledged. Therefore, if we consider the personal tax as not strictly an in- come tax, since it is not collected according to the income, but in classes and ways no1 in harmony with the manner in which an income tax should be collected, then is each man not only entitled to add his personal tax to the expense account of his busi- ness, but also the mechanic and the ofticial can demand that his wages or salary shall cover this tax, but this does not imply the right that his income tax, through hif salary, wages, or his previously calculated business income should be covered, mnch more must it be demanded of him to accommodate himself to his expenses, which will enable him to defray all of his necessary expenses, including the income tax, which 424 REPORTS ON TAXATION. is necessary not only for the state but for his own existence. So, also,' must the prop- erty tax when used as a means for the support of the property, be covered by the rev- enues of the property, the property-owner must also expect that the revenues be large enough to dispute the payment; that is, he must be entitled to the claim of a corre- sponding high interest, as opposed to which the income tax, as aforesaid, does not en- title him. The only true principle of taxation, as already said, is the proportionate rate upon the absolute ability or upon the income. Each man's income is the price for which he delivers his personal work (physical or mental), as well as the work of his property in the revenue from his wealth (servants or general help) ; it is natural that from this price he restore the outlays made by the statein the form of a tax for the protection of the market of the working man, as well as tor enhancing the value of his own work, also that this tax for each unity of value be the same, or that the income be proportional (if not already subject to state taxation). Unfortunfitely a solution of the difficulty oflers many obstacles, since concealment on the one hand .ind discretion on the other operate adversely. If it be true that a just tax can be levied only on the tax-paying power or income, it does not necessarily follow that it must be raised directly from the income, if every expense and saving could be reached or controlled, and if it were possible to find the same tax rate for each. So, since the sum of all the expenses and savings ia eaual to the income, could a tax be levied upon these expenses and savings with entire justice. This argument may very well be mentioned in favor of indirect taxation when practical reasons of great weight call for tax reform, and in fact such reasons are before us. By indirect taxation is every merchant, every mechanic, every land- lord a tax-collector, who collects the tax plus the price of the product, easily and certainly, and in small amounts; as otherwise the state tax-collector, if all state claims were to be collected as an in come tax, would meet continually with empty cash- boxes, obstinacy, and difficulty. Indirect taxation, may, then, live through the cen- turies as a practical system of collection, but at the same time, viewed from an ideal standard of government, which bespeaks a high grade of culture, it is irrational. ii'oT this reason it is that a pure indirect tax is impossible, because when the tradesman, the property man, in fact, the salesman can collectthe tax in the cost of consumption to the buyer, so must the state collect directly from the seller by direct taxation of his business, his jjroperty, and his income. The indirect tax, therefore, always presupposes the direct one ; but the direct tax does not necessarily imply or include an indirect one. F. Eaine, Consul- General. Berlin, Decemher 24, 1887. TAXATION IN THE GERMAN EMPIRE, PRUSSIA, AND BERLIN. REPORT OF yiOE-aONSVL-GENESAL VAN TERSEN. Since the establishment of the German Empire nearly all indirect taxes, in addition to the import duties, are collected through the organs of the individual German states for the Empire, while the financial system of those states, with the exception of excise collected in some cities (particularly in Prussia) instead of a direct municipal income tax, is based on direct taxation. As all direct taxation causes much complaint and uneasiness, par- ticularly among the lower classes of the people, the German Govern- ment have repeatedly declared that it is their earnest endeavor grad- ually to transform direct into indirect taxation by increasing import duties and taxes on tobacco and ardent spirits. As to this latter article this has been accomplished by the recent act, dated June 24, 1887.* * The provisions of this law were printed in Consular Reports No. 83, September, GERMANY. 426 KINDS OP IMPOSTS, TAXES, AND ASSESSMENTS. All taxes may be divided into five chief classes according to the re- ceiver, viz: I. Taxes collected for the Empire. II. State tay.es. III. Taxes collected for the several provinces, their suhdivisions (in Prussia, " Kreise,") answering perhaps to our " counties." IV. Municipal taxes. V. Church and school taxes or moneys. I. — TAXES COLLECTED FOE THE EMPIRE. In addition to all customs duties, several taxes are collected for the Empire ; the act of May 14, 1885 (Lex Huene), providing, however, that if all the revenues derived therefrom should exceed the amount neces- sary to meet the expenditures of the Empire, the surplus revenues for the fiscal year last closed shall be distributed among the Gi-erman states according to their respective population, with the express intent to relieve the lower political bodies (provinces, counties, communes) and to conduce to a reduction of direct taxes on real estate, buildings, ajid trades. The following taxes are assessed for the Empire : (1) SALT TAX at the rate of 12 marks f=$2.85) per 100 kilograms of salt manufact- ured and used for home consumption, while a duty of 12.80 marks (=$3.04) is levied on salt imported. Exempt from tax is salt if exported, and if used at home in the in- terest of agriculture (feeding cattle, manure) and of industry. (2) TOBACCO TAX. Internal taxes on tobacco are collected either by the area planted with tobacco (4.5 pfennigs per 1 square meter) or by weight of the to- bacco harvested, no matter whether in a fermented state or dry, ready for manufacturing, 45 marks (=$10.71 per 100 kilograms). Bounties or drawbacks on tobacco are granted in case of exportation per 100 kilograms net weight. Marks. (a) In case of unfermented tobacco for smoking , 33 (i) In case of fermeuted tobacco for pmoking 40 (c) Eibbed leaf -tobacco of domestic growth 47 (d) Snuff and chewing tobacco of domestic growth 32 (e) Tobacco for smoking 43 (/) Cigars 50 ,{g) Cigarettes 35 (3) TAX ON SUGAR. Although by an act approved June 1, 1886, a new classification of 'sugar and a new method of collecting tax on beet sugar, equaling a reduction of export bounties, was introduced, this act has just been '^superseded by act of July 9, 1887, to take force and effect on August '1, 1887. ! Section 1 of this new act provides that from and after this date the 'following rates of import duties shall be collected per 100 kilograms : j-(l) On sirup and molasses 15 marks ($3.57) (2) On other sugar of all descriptions 30 marks ( 7.14) 426 ■ REPOETS ON TAXATION. If foreign sugar is cousignecl to a domestic sugar factory to be worked further there, the same maj', subject to special orders of the federal council, be exempted from the tax of consumption (excise) hereafter described. Section 2 provides that the internal beet sugar shall be subject to a sugar tax, to be collected — (1) As "material tax" on the weight of the raw beeta intended for the manufacture of sugar, -viz, 80 pfennigs (19 cents) per 100 kilograms. (2) As excise (tax of consumption) on the weight of sugar intended for home con- sumption, viz, 12 marks (|2.85) per 100 kilograms. This "material tax" shall be paid by the manufacturer, while the excise shall be paid upon leaving the bonded sugar works or refineries for home consumption. Bounties shall be paid in case of exportation of at least 500 kilograms, per every 100 kilograms : (o) For raw sugar containing at least 90 per cent, sugar, and for refined sugar con- taining less than 98 but at least 90 per cent, sugar, 8.50 marks (Ijl2.02). (6) For candy and for sugar in white full hard loaves, lumps, tablets, cubes, etc., con- taining at least 99| per cent, sugar, 10.55 marks ($2.51). (c) For all other hard sugar (n. o. p. f.), as well as for all white dry (containing no more than 1 per cent, water) in crystals, pulverized, etc., containing at least 98 per cent, sugar, 10 marks (|2. 38). (4) BREWING TAX. For the collection of this tax two different " tax unions" (Steuer- Gebiete) exists within the German Empire, the one union embracing Bavaria, Wurtemberg, Baden, and Alsace-Lorraine, while the other tax union (Reichssteuer-Gebiet) embraces all the other German States. In this report I speak only of the latter union, which includes Prussia. Here the said tax is assessed on the net weight of the material used in brewing beer at the following rates per 100 kilograms : (a) On grain, rice, and green starch, 4 marks (95 cents). (6) On starch, starch flour, British gum, 6 marlca (|1.42). (c) On sugar and other malt substitutes, 8 marks (§1.90). A so-called additional transit taxis collected on all beer imported from the first above-mentioned brewing-tax union, at the rate of 2 marks (47.6 cents) per hectoliter. On beer exported a drawback is granted of 1 mark (23.8 cents) per hectoliter. (5) TAXES ON ARDENT SPIRITS. Taxes on ardent spirits, viz: («) Tax of consumption (excise)'; (h) mashiug-tnb tax. From and after the 1st of October next an excise of consumption shall be collected at tlie rate of .5 mark (11.9 cents) per liter (1.0567 wine quarts) of pure alcohol, if the amount of alcohol consumed does not exceed the rate of 4J per head of population (according to last cen- sus), but if such rate per head be larger, then 70 pfennigs (1C.6 cents) per liter. Exempt from this excise shall be (1) ardent spirits exported; (2) ar- dent spirits used for industrial and scientific purposes. A "mashing- tub tax" shall hereafter be assessed only (1) from such agricultural still-houses as work exclusively grain or potatoes, and use residues or waste either as food for cattle or as manure on own estates; (2) from such still-houses as are working molasses, beet and beet-juice. The"mashing-tub tax" is 1.31 marks (31.7 cents) per hectoliter of the capacity of the mashing-tubs, and this for every mash. GERMANY. 427 Iq agricultural still-houses ia operation during the time from October 1 to June 15 of every year the " mashing-tub tax" shall be collected at the following fractions of the above rates : (a) If in the course of one day, on an average, not more tlian 1,050 liters of the ca- pacity of the masliing-tnb are mashed, only at .6 ; (6) If not more than 1,500 liters, at-.8. (c) If not more than 3,000 liters, at .9. (c) A tax on materials used in making spiritous liquors shall be col- lected per hectoliter : (a) On husks of grapes beaten together, 35 pfennigs (8.5 cents). (6) Kernel fruit, their waste, and all kinds of berries, 45 pfennigs (10.7 cents). (c) On brewing refuse, pressed dregs of wine, and roots of all kinds, 50 pfennigs (11.9 cents). {d) On wine and cider, liquid dregs of wine and stone fruit, 85 pfennigs (20.5 cents). A repayment of the "mashing-tub tax" and the " tax for materials used in making spirituous liquors" may be granted by the federal coun- cil not only for spirits used in industry, but also in case of spirits used for sanitary and scientific purposes, or for cleaning, heating, cooking, and illumination. Section 42 of the new spirits tax act provides further for an additional tax to excise in case of so-called industrial still-houses (not agricultural), if working farinaceous substances or mixtures of farinaceous and non-farinaceous substances. On ardent spirits nlan- ufactured in such "industrial" still-houses, as far as they are sub- ject to an excise, an additional tax of 20 pfennigs (4.7 cents) per liter of pure alcohol shall be levied. (6) TAX OX BILLS OF EXCHANGE AND PROMISSORY NOTES. Makers or acceptors or indorsers of these bills and notes are bound to provide them with stamjjs issued and sold by the Empire. A stamp is required as follows : Pfennigs. For a sum not exceeding 200 marks 10 Prom 201 to 400 marks 20 From 400 to 600 marks 30 From 601 to 800 marks 40 Fro/n801 to 1,000 marks 50 For every additional 1,000 marks 50 (7) BOURSE TAX. The following rates are collected as "bourse tax" : (1) Five per mille of the nominal value of stocks and shares delivered, disposed, and hypothecated, etc. (2) Two per mille of the nominal value of bonds, papers of annuities, delivered, dis- posed of, and hypothecated, etc. (3) One per mille of the nominal value of bonds payable to bearer. (4) (a) One-tenth per mille on the value of the object of transaction in case of pur- chase of foreign bank-notes, paper money, foreign coins, etc.; and of se- curities mentioned under 1, 2, and 3. (6) Two-tenths per mille on the value of the object of transaction in case purchases are made according to the usages of exchange, spot, time, lottery, and similar bargains, with regard to the quantities of goods as a rule negotiated at exchange. For transactions under 4a and b such rates shall be paid for every full 2,000 marks. (5) Five per cent on lots of public lotteries. (8) TAX ON PLAYING CARDS. Thirty pfennigs (7.14 cents) for every play of 36 sheets or less, and 50 pfennigs (11.9 cents) for every other play. 428 REPORTS ON TAXATION. II. — PRUSSIAN STATE TAXES. (la) CLASS TAX. [Note. — The account given of this class tax by Mr. Van Versen was not so clear as that which will be found post, in Consul-General Muel- ler's; it is therefore omitted.] The income tax is levied on the income derived from (1) real estate, (2) capital, (3) trade, business, or from any paying occupation. (2) TRADE TAX. This is levied on (1) commerce; (2) hotels, restaurants, inns ; (3) man- ufactories and trades employing a number of assistants ; (4) mill indus- try; (5) navigation, freight establishments, livery stables, etc.; (6) peddlers. In order to estimate the amount of trade tax to be levied, it is cus- tomary to suppose a medium tax ; thus, if there are 80 trade- tax payers in one class at a given place and the medium from the total of such tax is found to be 30 marks, the amount of the tax will be for the next fiscal year 30x80=2,400 marks for the class of traders concerned. In.case the tax-payer is not able to pay the medium tax a lower rate is granted him, and the amount falling short is added to the taxes of the other ratepayers, but the total of 2,400 marks must be paid by all the 80 trade-tax payers, no matter at what percentage each of them shares in this total, previously estimated and fixed by a committee of members, a moiety of which is chosen from the respective class of trade-tax payers, and the other moiety appointed by the Government. This system is rather complicated. (3) TAX ON BUILDINGS. This tax is paid for all buildings, court-yards, and house gardens be- longing thereto, if their area exceeds 25 ares 53 square meters (=1 Prussian morgen, equal to about 1 acre, 1 rood, 1 perch) in extent. Ex- empt therefrom are all public edifices of State, churches, schools. Tax is paid at the rate of 4 per cent, on the premiums derived from rentals of dwelling-houses, while 2 per cent, is paid on revenue from buildings devoted to industrial and commercial purposes. (4) TAX ON LANDED ESTATES (GROUND TAX). This tax is paid iu Prussia at the average rate of 9.50 per cent, on the net proceeds of such estates. Eeal estates belonging to the State and other commonwealths are exempt. (5) STAMP TAX. Stamps must be procured from and lawfully attached by official stamp distributors to all instruments in writing at the following percentages of the sums in consideration : Per cent. (1) In case of bonds ^ (2) Protocols relating to public sales, contracts of lease, and sale of furniture or other chattels \ (3) Insurance policies \ (4) Contracts of sale or exchange of real estates ; inheritances and deeds as to do- nations inter vivos if the legatees or devisees were in the service either tes- tator or donator 1 GEEMANt. 429 Per cent. )) Inlieritaaoes and deeds as to "donations inter vivos" to adopted children, or to brotliers and sisters of botlx half and fall blood, and to their descend- ants o 3) Entailed estates __ 3 7) Inhoritances and deeds as to donations inter vivos (n. o. p. f. under 4 and 5) — (a) To relatives up to the sixth degree of relationship (6) To step-children and their descendants 4 (c) To children and parents of law 4 (rf) To illegitimate children recognized by parents 4 (e) lu addition thereto must be paid on all sums bequeathed to public institutions of charity, instruction, education, and the like 4 3) All other inheritances and donations 8 ri. — TAXES COLLECTED FOR THE (SIX EASTERN) PRUSSIAN PROV- INCES AND THEIR SUBDIVISIONS " KREISE " (COUNTIES). (1) COUNTY TAX. The inhabitants of a " Kreis " are bound to pay a special tax accord- Qg to the wants of their district. This tax is paid in percentages of .nd in addition to the direct state taxes paid by them, and is of a much 'arying range. (2) PROVI^^CIAL tax. Under the controland administration of theseveral provinces there are haritable and other public institutions which to organize or to main- ain would go beyond the means of a single " Kreis." Such are lunatic iSylums, penitentiaries, asylums for deaf, dumb and blind persons; bstetrical schools; provincial relief and loan funds; insurance societies gainst fire and hail and the like. To meet these emergencies atpro- incial tax is assessed, by making a repartition of the total sum re- uired among the " Kreises" of the province. This tax again is levied it certain percentages of, and in addition to the direct state taxes paid ly the several Kreises. There are no fixed rates in this case either. IV. — MUNICIPAL TAXES. Every Kreis is again subdivided into "communes," being either towns ir " Landgemeinden " (communes of the country). Large cities consti- ute or form Kreises of their own. Only Berlin occupies an exceptional losition in the Prussian monarchy. It constitutes a city, Kreis, and •rovince combined. Though it will furnish a good example as to the otal amount of all taxes, duties, imposts and tolls paid by a Prussian Qhabitant, yet the high standard of its tax percentages can hardly be egarded as typical for other places ; its position as the capital of the irerman Empire necessitating a number of expenses for public works, or model facilities of trade and trafSc, which smaller places may, with- 'Ut injury to the interests of their occupants, dispense with. To defray the expenditures for local purposes the communes are under aw permitted to collect certain taxes on houses, rentals, incomes, dogs ; oils on macadamized roads, bridges, ferries ; or (which many cities do) levy an excise, laid on articles of food (mill ground articles, cattle, leat) entered for consumption (octroi ; in German called Mahl-und ichlacht-Steuer). In Berlin this octroi is not collected. The city derives its income rom — Ji) House tax. — Paid by the ovTuers of the houses, at present at the rate of 2| per cent, of the amount of rentals received. 430 EEPORTS ON TAXATION. (6) Rental tax.—FniA by the teaants at the rate of aboat 6| per ce]it. of tbe'amouat of rental paid, (o) Municipal income lax. — This is collected mostly at the rate of 100 Der cent, of the amount of class or state income tax paid. {d) Dog tax. — -Per dog and year, 9 marks. Military persons, formerly exempted from the payment of municipal taxes, have, at the urgency of progressive party, been subjected to same (see act of March 14, 1887), and have now to pay a municipal tax at progressive rates of their incomes ; for instance — Marks. Incomes not exceeding 660 marks 3 Incomes within — 800 to 2,100 marks - 42 3,600 to 4,200 marks 108 7,200 to 8,400 marks 216 14,400 to 16,800 marks 432 32,400 to 36,000 - 972 On the other hand, as a sort of tax may be regarded the liability of all inhabitants to give food and quarters to soldiers and military horses passing occasionally through the communes ; a liability which under circumstances, say in troubled times, may become very onerous and expensive. Thus Berlin alone for the iiscal year, reported, of 1884-'85 expended 248,912 marks— the sum re-imbursed by the military commissariat being deducted— for the daily maintenance of about 1,343 men and 376 horses, on an average. By act of June 21, 1887, the German Government tries, however, as much as possible, to exonerate the communes in that respect. 4^1 VI. — CHUECH AND SCHOOL TAXES. All members belonging to the so-called Evangelical or State Church (a union established since about the year 1830 of the largest portions of the Lutheran and Oalvinistic churches in Prussia) have at present to pay a church tax in Berlin at the rate of 5^ per cent, of the state or classified state income tax. Persons belonging to other denominations can not be compelled by the state to pay same, though they may tax themselves at higher rates than here just reported for their own denomination. SCHOOL TAX. Under the Prussian common law the communes or their legal repre- sentatives (patrons, manorial-estate holders, etc.,) are bound to provide for the organization of schools, the erection of buildings and their main- tenance, all this subject to the control of the state. To poorer com- munes the state contributes part of costs of school buildings. A principle is laid down that a not wealthy commune would not be overtaxed if thej^ would pay even half the amount of the class tax to be assessed of them. As alluded to under I of this report, the surplus of import duties and indirect taxes collected for the German Empire shall be turned to the benefit of the poorer commonwealths. For the current fiscal year the Prussian budget shows therefore an item of nearly twenty millions ex- pressly intended for the exoneration of communes, cities, kreises, and provinces. Percentage of direct state taxes, jjer head, of the Berlin population, during the last eight years reported (1878-1886) varied from 14.92 to 13.98 marks per year. GERMANY. 431 lu the last-mentioned year, for instance, Berlin, then having 1,272,227 inhabitants, paid the following sums of direct state taxes, viz : Marks. (a) Ground tax 1 11, 108 lb) Building tax 5,744,135 (o) Trade tax 2,460,563 (d) Classified income tax 7,646,037 (e) Class tax 1,821,876 Total 17,683,719 or 13.98 marks per head of population. Of indirect taxes (import duties, taxes of consumption, tax on play cards, inheritances, on bonds, securities, etc.,) viz: Marks. (a) State tax 561,405 (6) Ardent-spirit tax 36,575 (0) Brewing tax 1,474,368 (d) Tobacco tax 13,918 (e) Play-card tax 1,195 (/) Tax on bonds, securities (Bourse tax) 4,129,192 {g) Inheritance tax 961,340 (A) Toll on bridges, port dues 182,943 (i) Stamp tax on documents, deeds, etc 3, 001, 865 (fc) Import duties 19,547,603 Totalindirect taxes 29,910,404 or 24.08 marks per head of population. Of Berlin municipal taxes. (a) House tax 3,782,910 (6) Rental tax 10,752,821 (c) Dog tax 284,638 (d) Municipal income tax 11, 415, 483 (e) Brewing-malt tax 432,525 (/) Supplemental tax for deiiciencies 283,296 Total municipal taxes -- 26,951,673 or about 21 marks per head. RECAPITULATION OF THESE PERCENTAGES. Hence every Berlin inhabitant (without regard to the many persons exempted or paying — as all oflicials do — reduced rates) has to pay — (1) Of direct taxes: Marka. (a) To the state 13.98 (6) To the city 21.20 Total direct taxes 35. 08 (2) Of all indirect taxes 24.08 In toto , 59.16 Herein are not included what Berlin house-owners have to pay to have their houses connected with the system of sewerage and canalization, and for the gas and water consumed within their houses, nor are in- cluded what higher social classes have to pay in case they send their children to higher schools (gymnasia, polytechnical schools, etc.,) instead of primary schools. J?or the latter no special school money is collected in Berlin. F. Von Veesen, Vice-Goiifiul-Cfejieral. Berlin, July 26, 1887. 432 KEPOETS ON TAXATION TAXATION IN PRUSSIA. liEPOBT OF CONSUL-GENERAL MUELLER. A. — Direct Taxes. The direct taxes levied and collected in Prussia for the administration and maintenance of the Government are known and described as follows; I. Class taxes. II. Graded income tax. III. Land taxes. IV. Taxes on buildings. V. Taxes on occupation and trades. I.— CLASS TAXES (CLASSENSTETJEE). Subject to the payment of class taxes are all persons having their own household, and all persons supporting themselves by their own means independent of the head of the family or household they may be- long to. Only to physical persons, as such, or to the individual per se this class tax attaches ; it has no bearing upon firms, corporation societies, or what is called "moral persons." By law the class tax-payers are divided into twelve distinct classes; formed upon the basis of the annual income. The classification and the normal annual tax of each class are as fol- lows: Class. Annual income. Tax. Class. Annual income. Tax. First 2[nrl-s. 420 to 000 600 to 9110 900 to 1,050 1,050 to 1,200 1,200 to 1,3.50 1,350 to 1,500 Marks. 3 6 9 12 18 24- Marks. 1,.500 to 1,650 1,050 to 1,800 1,800 to 2,100 2,100 to 2,400 2,400 to 2,700 2,700 to 3,000 Marb. 30 Third Ninth 43 Fifth Sixth Eleventh 60 The tax is payable in quarterly installments. II.— GRADED INCOME TAX (CLASSIPIZERTEREINKOMMENSTEUEB). This tax is Jevied and is to be paid by all persons having an annual income over and above 3,000 marks per annum. The persons subject to the payment of this tax are divided into classes, which classification, with the annual tax assessed upon each class, is as follows : GERMANY. 433 Class. oome. Tax. Marks 3,600 90 4,200 108 4,800 126 5,400 144 6,000 162 7,200 180 8,400 216 9,600 252 10,800 288 12,000 R24 14,400 300 J 6, 800 432 19,200 604 21,600 576 25,200 648 28,800 7.56 32,400 861 30,000 972 42,000 1,080 48,600 1,260 Class. Aunaal income. Tax. First , Second Third Fourth , Fifth Sixth Seventh Eighth Ninth Tenth EleTenth ... Twelfth-... Thirteenth . Fourteenth. Fifteenth.. Sixteenth .. Seventeenth Eighteentli . Nineteenth . Twentieth . Marks ,000 to ,600 to ,200 to ,800 to 400 to ,000 to ',200 to ,400 to ,000 to 800 to ,000 to t,400 lo ,800 to 200 to COO to 500 to ,800 to ,400 to ,000 to ,000 to Twenty-iiist — Twenty-second . . Twenty-third . . . Twenty-fourth .. Twenty-fifth Twenty -sixth ... Twenty-seventh Twenty-eighth - . Twenty-ninth ... Thirtieth Thirt;, -first Thirty-sei ond .. Thirty -third .--. Thirty-fourth --. Thirty-flrtli Thirty-sixth — Thirty-seventh . . Thirty-eiEhth... Thirty-niuth . . . . Fortieth 48, 54, 60, 72, 84, 06, 108, 120, 144, 168, 204. 240, 300, 360, 420, 480 540 600 660 720, Marks. ,000 to 54,000 ,000 to 60 000 ,000 to 72,000 000 to 84,000 000 to 96,000 000 to 108,000 ,000 to 120,000 ,000 to 144,000 000 to 168,000 000 to 204,000 000 to 240,000 ,000 to 300,000 000 to 360,000 ,000 to 420 000 000 to 480,000 000 to 640,000 .000 to 600,000 ,000 to 660,000 ,000 to 720,000 ,000 to 780,000 Marks. 1,440 1,620 1,800 2,160 2, .120 2,880 3,240 3,600 4, 320 5,040 6, 120 7,200 9, 000 10, 800 12, 600 14, 400 16, 200 18, 000 19, 800 21,600 Note. — For every 60,000 increase of income 1,800 marks additional. Theincoino tax is payable in quarterly installments; foreigners stay- ing in Prussia more than one year must expect to be taxed on their in- come after the expiration of the first year. III. — LAND TAXES {GE.UNDSTEUBK.). The amount of taxes to be realized from land is fixed at 39,600,000 marks ; this tax attaches to the laud proper, apart from buildings or improvements created thereon ; it is levied upon the net value of the estimated average yield of agricultural products. The fertility of the soil and the grade of its culture determine the appraisement for taxing purposes, irrespective of other property conditions. For the purpose of arriving at the net income of the land, the quality and character of the land and the kind of products raised therpoii and the agricultural uses to which it is devoted are taken into consideration. Unproductive lands pay little taxes, if any at all. The rate of taxes collected from land is about 9 J per cent, from the es- timated value of its yield. For the interest on mortgages encumbering the land allowance is made at the appraisement, •which is to take place at the intervals of ten years. IV. — TAX ON BUILDINGS (GEBAEUDESTEUER). This tax is assessed upon all buildings of a permanent character in- clusive of the ground upon which erected and of the j* ards and gardens belonging thereto ; provided that the area of the gardens do not exceed f of an acre. Gardens of larger size are subject to the land tax. Wood-sheds, huts, shanties, shops, limekilns, baking-ovens, and struct- ures of a mere temporary nature, do not come under the term of build- ings, and bear no tax. Buildingsprincipally devoted to dwelling pur- poses pay 4 per cent, tax annually upon the yield of income or rental value. Theaters, ball, bathing, club houses, and buildings occupiedfor kindred purposes pay 4 per cent. Buildings and structures exclusively devoted to commercial, mechan- ical, and manufacturing uses pay 2 per cent, annual t-ix upon their rental value; the machinery and fixtures in such buildings are not taken into account. 434 REPORTS ON TAXATION. Each building liable to be taxed is classified in accordance with its annual rental value, and the annual rate of tax assessed and fixed for each of the several classes is shown by the following : Tariff for the levy of taxes on buildings. Grade. First Second Third Fourth Fifth Sixth Sovonth Eighth Ninth Tenth Eleventh Twelfth Thirteenth Fourteenth Fifteenth Sixteenth Seventeenth Eighteenth Nineteenth Twentieth Twenty -first Twenty-second. - Annual tax. ] Annual rent of building. Fourper Two per cent. cent. Maries. Marks. Marks. 12 .40 .20 38 .60 .30 24 .80 .40 30 1.20 .00 45 1.80 .00 60 2.40 1.20 75 3.00 1.50 90 3.60 1.80 105 4.20 2.10 120 4.80 2.40 135 5.40 2.70 160 6.00 3.00 180 7.20 3.60 210 8.40 4.20 240 0.60 4.80 270 10.80 5.40 300 12. 00 6.00 360 14.40 7.20 420 16.80 8.40 480 19. 20 9.60 640 21.60 10.80 600 24.00 12.00 Grade. Twenty-third.... Twenty-fourth ., Twenty-fifth Twenty-sixth Twenty -seventh . Twenty-eighth .. Twenty-ninth ... Thirtieth ■. Thirty -first Thirty-second . . . Thirty-third Thirty-fourth.... Thirty-fifth Thirty -sixth Thirtv-seveDth .. Thirty-eighth ... Thirty-ninth Fortieth Forty-first Forty-second Forty-third Annual rent of building. Annual tax. Four per cent. Marks. Marks. 675 27.00 750 30.00 825 33.00 900 36-00 975 39.00 1,050 42.00 1,125 45.00 1,200 48.00 1,360 54.00 1,600 60.00 1,650 66.00 1,800 72.00 l,!),^ 78.00 2,100 84.00 2,250 90.00 2,400 96.00 2,550 102.00 2,700 108.00 2, 850 114.00 3,000 120. CO 3,300 132. 00 Two m cent. Marki. 13.50 15.00 16.50 18.110 19.50 21.00 22.50 24.00 27.00 80. 00 33.00 36.00 39.00 43.00 45.00 48.00 51.00 . 5400 57.00 00.00 6C.00 Note.— Up to 8,000 marks each grade is increased by 300 marks ; above e,0C0 marks by 600 marls, V. — TAX ON TRADE AND OCCUPATIONS (GEWERBESTEUEE). This tax is being levied on : (1) Trade and on manufacturing busi- ness; (2) Hotels, restaurants, saloon, and eating-houses; (3) Mechan- ical occupations ; (4) Eive^ boatmen, freighters, and teamsters. Liable to the payment of the tax are all trades and occupations for wages and gain. Professions of a scientific, artistic, teaching, and educating na- ture, as physicians, lawyers, sculptors, painters, actors, writers, teacli- ers, etc,, are not regarded as pursuits for gain, and consequently not subject to the tax. Incorporated companies and partnership firms are subject to the tax the same as individuals. The trades and occupations for the purpose of taxation are divided into classes and subdivisions, and the tax for each class and subdivision is fixed by law. The first class with its subdivision embraces the wholesale and retail trades, commission merchants, boating, insurance, manufacturing, and navigating business; also brokers, commissioners, commercial agents, banking business, bakeries and breweries, mills, foundries, iron manu- factories, auctioneering business, bathing-houses, book-printing and photographing establishments, distilleries, libraries, pawn broking, and livery business, lottery collectors, and insurance agents. Second class. — Embracing the hotels, eating-houses, saloons, and res- taurants, persons renting furnished rooms, and such who offer for sale mineral water or milk to be drunk at premises occupied for that pur- pose. liiiltMAJNi:. 435 Third class. — Embracing persons pursuing a mechanical trade and who carry on their business with more than one assistant and one ap- prentice, and who, in addition thereto, offer and exhibit ready-made goods for sale. To this class belong the following-named occupations : Painters, varnishers or dressers, bleachers, book-binders, gimlet-makers, coopers, spectacle-makers, well-diggers, printers, lithographers, gun- smith, brush-maker, cigar-maker, shinglers or slaters, dike-builders, catgut-spinner, wire-drawers, turners, dyers, file-cutters, form-cutters, hair-dressers, case or sheath makers, braziers, tanuers, glaziers, gold- ■ smiths, gold-beaters, engravers, maker of groats, bell-founders, girdlers, glove-makers, wood workers, wood shoe-makers, hatters, comb-makers, cotton printers, tinners, button-makers, basket-makers, furriers, leather- cutters, manglers, machinists, millwrights, masons, mechanics, founders, polishers, cip-raakers, millers, needle and pin makers, opticians, organ- builders, paste-makers, cartwrights, fresco-painters, chair-makers, to- bacco-spinners, trunk-makers, wall-paperers, joiners, potters, clock- makers, makers of musical instruments, gilders, weavers, fullers, car- penters, pewterers, and thread-makers. All of these occupations are subject to the payment of an anuual tax of either 12, 18, or 24 marks. Fourth class. — Embraces the business of navigating stream and river, and the business of teaming for wages and of keeping livery stables. The annual tax quotas applicable to the aforesaid trades and occu- pations are rated stationary as follows: 3, C, 9, 12, 15, 18,21,24, 30,36, 42, 48, 54, GO, 72, 84, 90, 96, 108, 126, 144, 162, 180, 198, 216, 252, 288 marks respectively, and upwards, by adding 36 marks to each different grade higher up. The extent and proportions of the business, without regard to its rent ■ ability, is to be taken into account at the designation of the class or subclass into which it should be enrolled. The annual tax quota on trades and occupations is as follows : (a) For the highest class: Fiist fUvision 288 marks. Second division 216 marks. And the minimum rate not less than 144 marks. (6) For the middle class : Highest rate. Minimum rate. First division 72 marks 36 marks. ;,, Second division 48 marks 24 marks. Third division 30 marks 18 marks. (c) For the Ibwest class : Highest rate. Minimum rate, First division 24 marks 6 marks. V: Second division 18 marks 6 marks. Third division 12 marks 6 marks, i Fourth division 16 marks 3 marks. Prior to entering upon the exercise of a business, parties must notify the local authorities of their intention to do so, in order to be ranged into one of the tax-paying classes. '■ The law providing for taxation of trades and occupations has no '' bearing upon mining, agricultural, wine-growing, or cattle-raising pur- f suits, nor upon the stone-quarry business. The trade tax is payable in j' quarterly installments. it TAXATION OF PEDDLING TKADE. ^\ Liable to the payment of a trade tax are also such persons (1) whose '' business it is to travel from place to place and outside of their homes '" sell and offer for sale goods and wares of any kind, unless such mer- 138— No. 99 12 436 EEPOETS ON TAXATION. chandise were fruits and products raised from their own soil ; (2) who purchase goods to be sold again of any kind, from other persons than merchants and at other localities than at public stores ; (3) who drum up customers and receive orders ; (4) who exhibit shows. The tax to which the aforesaid class of individuals is subject is fixed at the rate of 48 marks per annum. EXPENSES IN CONNECTION WITH THE ASSESSMENT AND COLLECTION. (a) Glass taxes. — The costs of assessing and collecting of class taxes are fixed at 6 per ceut. from the amount actually collected and received; [b) of the classified income taxes, 3 per cent.; (o) of the trade and occu- pation tax, 4 per cent.; (d and e) of land and building taxes, 3 to 4 per cent. MODKS OP ASSESSING. (a) Glass tax. — The enrollment and classification of the persons sub- ject to class tax is effected by a commission, from three to twelve members, chosen by the municipal legislative body, the chief magis- trate being ex-of&cio member and president of the commission. In the making up of the assessing board it is required that the different classes of the taxable people be represented. In cities with large populations, several commissions are being ap- pointed. The rolls or registers containing the names and amounts of the tax-payers must be exposed for inspection ; and remonstrances against the action of the board must be made within a prescribed period. (&) Classified {graded) income tax.—ThQ municipal authorities are re- quired to keep a correct record of persons liable to the income tax, The assessment is made by a district assessing board presided over by the chief magistrate of said district. The board is constituted by a certain number of persons of whom one-third are being appointed by the district or municipal authorities and two-thirds by the tax-payers of the various income classes. The classification and assessing are done by the board upon informa- tion and evidence obtained and examination had. The parties assessed may appeal from the decisions and conclusions of the board to an ad- ministrative tribunal organized for thatjmrpose and whose jurisdiction is final. In absence of authentic i^roof to establish the amount of annual income, circumstantial and hypothetical evidence is being ad- mitted. The style of dwelling and living is taken as a basis upon which to calculate the income, and the annual expenditure of a person is ac- cepted as sufficient proof of a corresponding income. The Prussian tax and fiscal authorities understand it well to bring reticent, evasive, and unwilling tax-payers to terms, amicably if it can be, peremptorily if it must be. (c) Trade tax. — The parties affected by the trade tax participate in its classification and distribution. Wholesale dealers, merchants, re- tailers, hotel keepers, restaurant keepers, and the lower grades of in- dustrials, by their representatives elected for that purpose, co-operate with the authorities and have their say. The conflicting interests and opinions of the various occupations are thereby sought to be recon- ciled. The practice is attended with equitable results, inasmuch as the several trades are best qualified to judge as to the proper distribution 'of the burden. (rf) lax on buildings. — The rental value of buildings is appraised by ^ commission chosen by t^e building owners of the district at ^ meet- GERMANY. 437 ing held for that purpose. The commissiouers perform their duties under the direction of the chief magistrate of the respective districts. (e) Land tax. — The secretary of the treasury stands at the head of the land-appraising authorities of tiie whole state. Immediately subordi- nate to him are the commissioners-general, whose duty it is to direct and to supervise the execution of the required land-appraising work, and to see to it that equitable results be secured within the borders of the state. A central commission is being formed by the minister of finance to consist of four land experts, by him appointed, and of several members from each province, one-half of the provincial members to be chosen by the upper house and one-half by the house of representa- tives. The central commission have to fix the tariff of classification and to settle the final results of assessment. A commission, appointed for each province and supported by civil engineers and surveyors, directs and controls the execution of the necessary assessments and appraise- ments. Each province has also a board presided over bj' the provincial com- missioners and a commission of assessment, assisted by an assessing board, to superintend and execute the work of assessment and to fix or revise the tariff of appraisement within their district, and to perform all other duties connected with their office. DELINQUENT TAX-PAYEES. None of the taxes constitute a lien on real estate or on personal prop- erty, and yet the losses sustained by the Government are of little im- portance. The modus procedendi against delinquent tax-payers is sum- mary, indeed. If, after three days' written notice, payment fails to be made, an executory mandate is issued by the tax collector and a levy made. The articles exempted from execution are few and far be- tween. To have his household goods sold for unpaid taxes is looked upon as disgraceful, and is strenuously sought to be avoided. The fact that taxes are not allowed, as in the United States, to accumulate and run a year and over may largely account for the small losses occurring. The payment of taxes in monthly or quarterly installments is in the interest of the tax-payers, and the legal provision to that effect highly commendable. Less so, and strange to the American mind, is the pro- vision in the German tax law by which the collector or receiver is made personally liable for any taxes lost by reason of the collector's failing to mercilessly enforce the collection within the days prescribed. Total revenues for tlie year, Marks. I. Direct taxes 153,280,000 (a) Land 40,500,000 (b) Buildings 30.000,000 (c) Classtax 22,000,000 C localities used for practicing any kind of industry or professions. ; Exempt from the license tax are professors and teachers, editors of periodicals, stage players, peasants, farmers or husbandmen, fishermen, 1 savings banks managed gratuitously, public writers, clerks, and all per- sons working for wages, by the piece or by the day in the shops of .persons of their trade, as well as those working in their own rooms or ,; in those of private persons, but having neither apprentice, nor work- ,man, nor sign, nor shop of their own, sick-nurses or watchers, cobblers, 'Tag-pickers, etc. •' The land tax amounts to 32.48 pfennigs on the franc net income. (This is copied from the last tax bill for the year 1886-1887 ; the franc is taken as basis for the net income.) 454 REPORTS ON TAXATION. Of these 33.48 pfennigs, one part, i. e. 18.34 pfennigs, are for thesis and 14.14 pfennigs for the district, the commune, etc. The tax on doc and windows is laid on doors and windows with issue on streets, yarc or gardens ; on gates or doors of wholesale stores, houses, etc., ai generally on every aperture giving access or admittance to dwellin of men or serving to light them. The tax on strong beer per hectoliter is 57J cents, and on small be per hectoliter 14J cents. Licenses to eating-house keepers not selling any wine, beer, or liquo to the public generally, but only to regular boarders, are as follows : Per yei In communes of — Less than 4,000 inhabitants' Jl, From 4,001 to 6,000 inhabitants l' From 6,001 to 10,000 inhabitants 2 From 10,001 to 15,000 inhabitants.... '... 3 ; Prom 15,001 to 20,000 inhabitants 3 i From 20,001 to 50,000 inhabitants 4.; From 50,001 inhabitants and over 4.1 Licenses to inn-keepers, eating-house keepers, retailers in wine, bee: and liquors : Per yea: In communes 01 — Less than 2,000 inhabitants |25 ( From 2,001 to 10,000 inhabitants 50.C Over 10,000 inhabitants 75. C Wine, beer, and liquor dealers pay for their license : Per yeai Wholesale 12.0 Beer brewers 12,0 Distillers 2.4 Besides these taxes, there are imperial taxes on distilling, on tobacco etc. The other indirect tax which yields a great revenue to the State 0: Alsace-Lorraine is the so-called "enregistrement;" i. e., the registry oi all legal acts, deeds, documents, indentures, etc., the tariff of whicli if far too voluminous, however, to be given here. The total of the income from this source amounts to about 8,845,50C marks a year, or to about $3,211,375. Total amount of direct taxes, 10,937,380 marks; indirect taxes, 18,654,464 marks. There is no income tax in Alsace-Lorraine. Population, 1,564,354; or about 173^^ inhab' itants on a square mile. The population of the city of Strasburg is 113,000, approximatively: Marks. Revenues in 1883-'84 .• 7,065,665.21 Expenditures in 1883-'84 6, 978. 515. 4J Surplus of receipts 87,1G9,8'2 Edmund Johnson,". Gomul Kehl, 31ay 2, 1887 GERMANY. 455 TAXATION m BREMEN. REPORT OF CONSUL LOBNING. DIRECT TAXES. Income tax. — Percentage fixed yearly by decree of senate and house (Burgersohaft). This year it was fixed at 4 per cent. The " poor tax" is a percentage on the income and collected with the income tax, fixed yearly according to estimate ; this year it was -^^ per cent., making a total of percentage for income tax l/j per cent. DECLAUATIONr UNDER OATH COMPULSORY. Each and every person mast declare under oath the amount of their annual income. In case of refusal to do tliis the income is assessed by a board of general assessors. Tax on real estate. — [a) On buildings, 2.1 per mille on assessed value. (6) On land (ground), 5| per cent, on net receipts or revenue therefrom assessed. Water tax. — {a) Owners of buildings pay one-half per mille on as- sessed value of ijroperty. (6) Owners of land (ground) pay one fourth per cent, on net receipts or revenue therefrom, (c) Lessee pays 1 per cent, on amount of rent paid. Light tax (for lighting streets, etc).— (a) Owners of buildings pay I-2V per mille on assessed value. (&) Owners of land* (ground) pay 2f per cent, on net receipts or revenue therefrom, (c) Lessee pays 5 per cent, on amount of rent he has to pay. Firm tax. — This is a fixed tax on the business transactions of mer- chants, and is divided into five classes. ' Per annum. First class marks.. 3, 000 Second class do 1,000 Third class do._.. 300 Fourth class do 100 Fifth class .do sJO ^ Exempted from this tax are those merchants (firms) whose yearly business transactions do not exceed 10,000 marks. The amount of this tax to be collected each year must not be less than 600,000 marks, and the classes and scale or rate are fixed accordingly. A commission composed of merchants appointed by the senate fix the classes and assess this tax. Retail liquor tax. — Fifty marks per annum. INDIEECT TAXES. Consumption tax (octroi). — A tax (in lieu of customs duty) on articles of food, necessaries of life, etc. \ Tax on inheritances, gifts, and heq^uests. — {a) On inheritances, etc., from brothers or sisters, half-brother or half sister, 4 percent. (6) On all other inheritances, etc., 8 per cent. Exempted from these taxes are— (1) Gifts and bequests for the pub- lic benefit. (2) Husband and wife. (3) Parents and children. (4) Adopted children. (5) Churches, schools, religious societies, or to the city poor commissioners. (6) Societies encouraging art or science. Tax on sales of real estate. — One and one-half per cent, on price paid 456 EEPORTS ON TAXATION. collected from buyer, but buyer has the right to charge half of the tax to seller, it not otherwise specially agreed upon. Auction tac. — One-half per ceut. ou net receipts. Exempted there- from are forced sales and real estate. Taxes on clubs, societies, billiards, bowling alleys, public balls, pleas- ure vehicles, and horses are as follows: Glubs and closed societies. — First class, 40 marks per annum. Second class, 20 marks per annum; if strangers are admitted, 50 marks per an- num. Exempted from this tax are those that pay the retail liquor tax, Billiards. — For each table, 20 marks per aanura. Bowling alleys, each, 10 marks per annum ; half as much for each additional. Balls. — Any person leasing or keeping a dancing saloon or ball room where entrance money is charged or collected by subscriptions shall pay, first-class, 40 marks per annum ; second class, 20 marks per anaum. So more tax if one or more balls are given. For each and every mask or costume ball, 100 marks extra. Pleasure vehicles and horses. — For a pleasure vehicle (carriage or ■wagon) for two or more horses, 40 marks per aunum each; for one-horse pleasure vehicle, 20 marks per annum each. For pleasure vehicles for which no horses are kept, 20 marks per annum each. Cabmen are exempted from this tax. For horses kept for pleasure, first horse, 30 marks per annum ; second horse, 40 marks per annum ; each additional horse, 10 marks per aunum ]nore. For horses of cabmen, cartmen, livery stables, farmers, and used solely in trade, fof each horse, 10 marks per aunum ; for each additional , horse, 20 marks per annum. Exempted from tbis tax are horses under three years of age, horses used in the public or official service, and horses In possession of dealers for sale and not for use. Dog tax. — One dog, 10 marks per annum ; each additional, 20 marks per annum. Nightingales. — For each bird, 20 marks per annum. Stamp tax. — All official documents, notarial acts, etc., must bear a gov- ernment stamp. " The normal size of the sheets of i)aper on which such are written or printed is 33 by 21 centimeters. The stamp tax is: (a) For a slieet of normal size 60 ||ii (6) For a sheet of one-half normal size 25 (c) For a sheet larger than normal size 80 Warehouse receipts and warrants, irrespective of size, each 50 pfen- nigs; notes, commercial paper, etc., 1,50 marks each; checks, drafts, bills of exchange, 50 pfennigs per mille. On insurance policies effected in Bremen, at a maximum premium of one half per cent, one-eighth per mille, of the amount insured at a pre- mium of 1 per cent., one-fourch per mille, at a premium of 2 percent,, one-third per mille; over 2 per cent., one-half per mille; all other in- surances from oue-twentieth to one-tenth per mille. Insurance on ships or vessels or parts thereof, while lying in the harbor, docks, or roads, pay one-sixtieth per mille for each month on amount insured. If lying in the limits of the city of Bremen proper, 25 per cent, more of the above rate. Life insurances. — Policies for the duration of one year or less, one- tenth per mille; from one to ten years, two-tenths; over ten years, four- tenths on amount insured. GERMANY, 457 Insurances on annuities and outfits, one-lialf. per mille of purchased price. Stamps on protests of bills of exchange, drafts, notes etc., viz : Marks. Up to 1,000 marks 150 1,000 to 2,000 marks 2.00 •a,000 to 3,000 marks . 3.00 3,000 to 4,000 marks .■ 4.00 Over 4,000 marks 5.00 Turnpike toll. — From 5 to 10 pfennigs each way for each horse and wagon. Ganal tax or toll. — For each boat going through the canals a tax or toll is charged according to size or cargo, etc. These are very small canals, not of much importance. The cost and expense of collecting all these various taxes can not well be estimated, as the Government is unable to give it to me, but the col lection of the "consumption tax" is the most expensive, requiring as many officers as the customs, the tax being collected in a similar man- ner as the Imperial German Government collects customs duty. The income tax can not be said to press more on any particular class than another, as the smaller the income the less the percentage of tax, up to 9,000 marks. There it remains at its fixed rate. If anything, the most oppressive tax on the masses is the indirect consumption tax on the necessaries of life, articles of food, etc., render- ing the same more costly. All luxuries are highly taxed, and that is commeudable, not oppres- sive. Albert Loening, Consul. Bremen, December 1, 1887. TAXATION IN BRESLAU AND IN SILESIA. BT CONSUL DITSMAB. The tax-payers of this city are compelled to pay direct and indirect state and communal taxes, besides various tributes, imposts, rates, licenses, etc. The state direct taxes consist of the classified income tax, the class income tax, the house or building tax, the ground or vacant lot tax, and the business or occupation tax ; indirect, the brewers' small tax. TLe communal taxes are: Communal income tax, 50 per cent. Addition to house and ground tax, dog tax, and amusement tax ; indirect, slaughter, game, and beer tax, and 50 per cent, addition to tbe brewer's malt tax, making the latter 73 cents per cwt., while beer brewed in the city limits (of taxed malt) is not taxed. Of the amount collected for the state by the city government 4C.70 per cent, is derived from incomes, 28.32 per cent, from the house and ground taxes, 16.20 per cent, from the business or occupation tax, and 8.55 per cent, from the malt tax. Of the amount collected to defray the city expenditures 58.14 per cent, are derived from the income tax, 11.26 per cent, from the building tax, 0.09 per cent, from the ground tax, 0.94 per cent, from the dog tax, 1.66 from the amusement tax, and 22.85 from the slaughter tax, 0.78 per cent, from the game tax, 1.20 from the beer tax, and 3.08 per cent, from the malt tax. The game, beer, and slaughter tax are active dues. The proceeds of the amusement tax and the dog tax are appropriated to the care of the poor. 458 IIKPORTS ON TAXATION. HOW THE COMMUNAL TAX IS COLLECTED. All inhabitants of the city, whethel- Prussians or aliens, wbo have an income of their own, must pay the communal income tax, which is collected every month, the rate being doubled, in the first three months of each year, making the total payments equal to fifteen monthly rates. Tax rates on annual incomes. Incomes not ex- Tax per Incomes not ex- Tax per Incomea not ex- Tax per Incomes not ex- Tax per ceeding— annum. ceeding— annum. ceeding— annum. ceeding— annum. $71.40 $1.09 $1, 000. 00 $30. 00 $7,711.20 $231. 2b .$71, 400. 00 $2,142.00 99.96 1.00 1, 14,2. 40 34.27 8, 568. 00 257. 01 85, 680. 00 2,671.40 157. US 3.57 1, 2s.^. 20 38.56 9, 996. 00 299. 88 99, 960. 00 2, 999, 811 214.20 5.37 1,428.00 42.81 11, 424. (10 313. 72 114, 310. 00 3,427.20 549. 90 C.8t 1.713.60 51.41 12,852.00 385. 56 123, 020. 00 3,855.01) 285. GO 8.22 2, 004. 20 69.98 14, 280. 00 4-J8. 40 143, 80' 1. 00 4,2)14,00 221 15 9.28 2, 284. 80 68.54 17, 136. 00 514.08 157, 080. 00 4,712.40 347. 00 10.71 ' 2, 570. 40 76.08 19,993.00 695. 00 171, 300. 00 5,140.80 302. 70 11.80 2, 856. 00 85. 08 2i. H48. 00 6H1.94 271, 320. 00 7,765.00 429. 40 13. S.5 3, 327. 20 102.81 25, 704. 00 771.12 285, 000. 00 8, 688. 00 500. 00 15.00 6, 99X. 40 119.93 28, 580. 00 856. 80 311, 160. 00 9,424.80 571.20 17. 14 4, 545. 80 137. 08 31, 672. 00 1,028.16 042. 60 19.28 5, 140. 80 1.51. 46 30, 984. 00 1, 199. 52 714.00 21.42 5, 997. 60 179. 12 48,552.00 1, 456. 56 850. 80 25.70 6, 854. 40 205. 63 57, 120. 00 1, 713. 60 ONLY PEIVATE SERVANTS EXEMPTED. Incomes of less than $71.40 per annum are not taxed, nor is the in- come of servant girls in private families ; but all servants in public houses must be prepared for the monthly visits of the tax-collectors; nursery governesses and others, whether Germans or aliens, who may receive wages to the amount of, say, $70 a year must pay the tax, the value of their board and lodging being added to their wages in esti- mating their income. In addition to the communal income tax, every person whose yearly hicome is not less than $128.82 must pay a state income tax. The state and communal income taxes in Breslau amount to $3.63 per head of the population. The number of persons paying the taxes is 76,000, and of these 64,000 pay on incomes varying from $71.40 to $347 per annum. WHO PATS THE COMMUNAL INCOME TAX. All persons who have a legal residence within the city's Jimits. All wbo, without being residents, have been domiciled in the city for three months. All judicial persons and stock companies, including the general' agencies of insurance companies, as also all physical persons who, not living in the city, own real estate or conduct business therein ; but only their income derived from such sources is taxed. Exempt from the communal income tax are: The Koyal Fiscas (the State and its property), the exchequer, churches, schools, charitable institutions. The salaries of military officers in active service are also exempt. If, however, such officers own real estate or participate in any business in the city, their income from such sources is taxable, as is also the income from private practice of army surgeons. FURTHER EXEMPTIONS. The pensions granted to witlows by the State or by benevolent foun' datious; funds for the education of the orphans of public officers or GERMANY. 459 servants; the salaries, emoluments, and pensions of clergymen, eccle- siastical servants, and elementary scliool teachers; the pensions and waiting money of public servants so long as the amount does not exceed 1178 per annum. The official salaries and emoluments of persons in tlie State or mu- Dicipal service are taxable only at half rates, as also is the excess over ^178 per annum mentioned in the precediug paragraph. All public servants, clergymen, etc., must pay full amount of tax on income de- rived from other sources than their official salaries and emoluments. The entire income of every taxable inhabitant, whether derived from invested capital, from real estate, from business or occupation of any liind is taxed, but the income from real estate situated beyond the city limits is free from the local communal tax. Persons living here, how- ever, who are supported wholly or partly by money received from abroad must pay the communal income tax on the amounts thus received. The amount of income in cases where reliable statement has not been made is estimated or the tax fixed at the rate of the previous year. Prom the decision of the tax commission the tax-payer may appeal, hut pending the examination of the case he must pay the full amount claimed. KEAL-ESTATE TAX. The State tax on buildings amounts to 4 per cent, on the better class ot property, and 2 per cent, on inferior buildings, such as workshops, stables, sheds, etc. The value of real estate in the city, as estimated for taxation, is about $0,500,000, omitting, of course, the non-taxable property. The amount of state tax collected on both classes of build- ings and vacant lots is $230,000. For collecting the real-estate tax the city charges 3^ per cent, on the amount collected, and, in addition, collects 50 per cent, of the total amount for its own use. BUSINESS TAX. According to the magnitude of the business, trade, or occupation, a tax of $0.72 to $461.25 per annum must be paid by every person or firm engaged in any mercantile, professional, industrial, agricultural, or other pursuit. They are classed as " manufacturers and large deal- ers,'' " lesser merchants," " tradesmen without mercantile j)rivileges," ' " retailers of spirituous liquors,' " restaurant and inn keepers," " i)ur- veyorsofrefreshmentsin general," "mechanics of all description," ''boat- owners," " livery-stable keepers and all owners of hacks or cabs," "ped- dlers," etc. Eight groups are formed of these various employments, of which the first pays $0.70 to $4.28 tax per annum ; the second, $5 to $5.71; thethird, $7.14 to $10.00; the fourth, $11.45 to $14.28; the fifth, $17.14 to $25.70; the sixth, $29.99 to $38.50; the seventh, $42.84 to $51.42; and the eighth group from the latter sum up to $401.25. Every merchant and tradesman must contribute a certain sum yearly toward the maintenance of the chamber of commerce, an institution chartered by the State, and which cannot issue a report until the proof- sheets have been submitted to the Government and approved. OTHER TAXES. The slaughter tax yields about $309,400 a year, and of this amount the State receives nearly $28,180. For every hundred-weight of meat killed within the city limits the tax is $1.07. When the tax is paid on the entire carcass the charges are: for an ox $5.89, a cow $3.75, a calf $0.51, a hog $1.01, a sheep $0.40; meat or fat, raw or manufactured, brought into the city, pays a duty of $1.43 per hundred- weight. 460 EEPORTS ON TAXATION. The game tax produces about $8,400 per annum, the beer tax $114,. 000, the public-amusements tax $18,000, the dog tax $10,186, the city's addition to the buildings tax $119,000, to the ground tax $960. ?• On every hectoliter (about 28J gallons) of beer brought into the city a duty of 16 cents is paid. Every public dance pays 72 cents up to 11 o'clock p. m. and $1.43 if continued after that hour. Per head of the population the average of all taxes is $7.14. OTHER SOURCES OF CITY RETBNTJE. Among other sources of the city's revenue are the water and gas works, numerous licenses and fees, profits of the city's insurance and loan offices, etc. The loan office charges 8 to 10 per cent, interest, the former on loans over $351, the latter on sums under $72 ; loans are made on valuables of all kinds, but only to responsible persons and for periods of one to three months. THE PAUPER AND THE TKAMP'S CONTRIBUTIONS. The poor-house inmates are by suitable employment made to contrib- ute their mite to the city's income, as are also the jails and the work- house. The Breslau workhouse had during the fiscal year 188G-'87 au average of 787 inmates. Its expenditures per, head for the year were $37.90 ; the earnings per head $40.76 ; excess of total earnings over ex- penditures, $2,250.82. In Berlin, Dresden, and other large cities and towns of Silesia the workhouse expenditures are largely in excess of the inmates' earnings. In Berlin in 1885 the cost per head was $84.70, the earnings only $11.19, making a deficiency of $100,693.65. THE CITY BUDGET. The estimated receipts and expenditures of this city for the fiscal year ending March 31, 1888, are as follows : Eeeeipta and expendUures. RECEIPTS. Poor-house labor and prisons $75, 817. 28 The city's domains Si, 572. 66 •Police administration 10, 836. 14 Police prisons 1, 668. 38 City schools Ill, 166.23 Communal burying- ground. 2,345.49 Taxes, ratea, licenses, etc.. 481,445.44 Municipal insurance and fire brigade 13,604.08 The city's mews 8, 967. 84 The city's buildings 9, 866. 29 Sewers, etc 14,847.75 Registrar's offices 856. 80 Statistical office 255. 28 Miscellaneous receipts, in- cluding gas and -water works, city banli, and city theater Breslau's share of the agri- cultural import duties (law of May 14, 1885, " Cy Huene") 15 "sirapla" of communal income tax Extraordinary receipts 486, 198. 30 12,614.00 647, 951. 00 1,916,723.96 92, 139. 32 EXPENDITURES. Total receipts 2, 00.~, 863. 28 Care of city poor Care of city's domains Police Police pensions City schools Commnnal burying-grounds Collection of taxes, rates, trade dues, etc Municipal insurance office and fiire brigade The city's mews Roads, bridges, water courses, etc -- Sewers, and disposal of sew- age Registrar's offices Statistical office City government in general. 1,910,617.59 Extraordinary expenditures 98,245.69 Total expenditures . . 2, 008, 863.28 $173,763.80 5,126.58 20,932.10 6,819.S9 573,162,31 1,085.28 9,032.10 140,863.83 55,845.51 98,159.30 23,751.21 5,140.80 4, 874. 24 791,960.47 GERMANY. 461 The foregoing comprises the entire receipts and expenditures of the city government, including the interest on the city debt and the main- t«napce of the sinking fund. But the item above, " collection of taxes," etc., is misleading. Included in the expenses of the "city government in general" a member of the finance committee of the city council as- sured me are "payments to tax-office clerks, $2,199.12; " "tax-ofiice and cashier's assistants, $17,336.92; " and " tax collectors, $18,868.64; " which make the cost of the collection of taxes at least $47,436.78. INCOiyrE TAXES ELSEWHERE. In a few towns in the province the income tax is lower than in Bres- lau. In two towns of over 30,000 inhabitants the communal tax has only recently been introduced — in Sprottan the new tax being collected for the first time this year. Many of the smaller towns, however, owing in some to a large proletarian population, in others to debts incurred in making local improvements too hastily, have to pay communal in- come taxes double and treble that of Breslau. In the town of Kcenigs- htitte, in Upper Silesia, for example, the population increased in the last twenty years 106 per cent., while the communal burdens increased 298 per cent., and the contribution demanded of the tax-paying part of the population increased 821 per cent. Petty hucksters, with a small stock of potatoes, second-hand clothes peddlers, servant girls earning $4.25 a quarter, are inscribed in the first rate of the class tax list in addition to paying the communal income tax. The following table shows the burden of taxes now borne by persons with incomes of from $214.20 to $915 per annum. In addition to these taxes the miners and furnace-men, who comprise a large part of the populaton, must pay their "Knappschaft'" (insurance and benefit fund) dues. On incomes— Class and classified income tax. Commimal incometax. Church rate (for Catholics). Business tax. Total. Of$2U. 20 $3.14 8.57 21. 42 25.70 $8.70 34.79 82.47 101.24 $0.54 2.14 5.36 6.45 ll.la $11. 38 Of S482. 40 57.23 Of $7U.OO 109. 25 Of $952.00 17.14 153. 53 Bbeslatj, July 16, 1887. Henry Dithmar, Consul. TAXATION IN BRUNSWICK. IIEPOST OF CONSUL FOX. The financial condition of this duchy is particularly good. I inclose a statement marked A, which I take from the official report of the com- mittee on finance of the Brunswick diet, of l^ovember 22, 1886, show- ing the estimated receipts from taxes and other sources for the fis- cal period (the budget is for three years) 1885-'87, together with ex- penditures for public purposes during the same time. This statement shows the receipts are estimated to be 29,772,600 marks, whereas the actual sum, after making certain redactions, is reported by the ministry to be 28,669,000 marks. It will be observed that the duchy is fortunate 462 REPOETS ON TAXATION. in tlie possession of sources of revenue, the income from wbich is a very important factor in meeting the necessities of government and proper* tionately relieving the tax-payers. • Table A. — Receipts and expenditures. No. Eccc'ipts. Surplus from Caramergut Direct taxes : (a) Grouud tax (b) Poi-aonal tax (c) Tradetax Indirect taxes : (a) Surplus from ducal customs of tax ot&ce. {b) Court fees (c) Share of surplus from iinperial customs, tobacco tax, and im- perial stamp tax. Interest on bonds Anuuity from selling of rail- road. Loan institution , Publications of records, etc.. ,. Lottery , Surplus from fiscal period 1882-'84 Extraordinary Total 29,7.72,600.00 MarkB. 2, 515, 600, 00 3, 410, 700. 00 361,200.00 750, 000. 00 1, 079, 700. 00 1, 050, 000. 00 2, 228, 700, 00 2, 40R, 000. 00 7, 873, 000. 00 1,200,000.00 15 000.00 3,320,400.00 2,621,969.34 27, 330. 60 Expendtures. Obligations to emDire Ministerial departments, etc. Legation at Berlin Legislature Justice Finance : ia) Finance department-. ib) Tax department (c) Customs id) Buildmga Gensdarmerie-corps (monnted police) Police department : ia) Circuit department- .. (b) Hospitals, etc (o) Agricultural division. (d) I'olicH in Brunswick and Wolfenbiittel Ciwts of building: (a) Ducal department ib) Justice department... (c) Circuit department... (d) Customs department. (e) Various -. Pensions (civil) State debt: (a) Interest ib) Amortization fund : 1. Common 2. Extraordinary- (c) Premiuro loan Extraordinary expenditures. Delicit in cloister fund Extraordinary Total Amount. Marks. 2, 349,0U0.Dn 402, GUI), go 67, 5011. Oil 107,000.011 4,014,900.00 881,400.00 30, 000. Oil 108,000.00 1, 128, 000. 00 507. 030. 00 871,200.00 198,000.1)0 218,400.00 476,500.00 2,035,500.00 173,430.00 313,200.00 62,300.00 39, 600, 00 2, 000, 100. 00 3,429,000.00 1,462,500.00 600,000.00 3,659,220,00 2, 715, 892, 00 1,530,000.00 373,058.00 29,772,600.00 OAMMERaUT. There are 58 domain and cloister estates. These, together with the forests, hunting privileges, fisheries, water-power, mines, blastfurnaces, and quarries, form the so-called " Cammergut." These properties belong to the duchy, and can not be sold except with the authority of the rep- resentative legislative body. They are farmed out, under the direction of a government department, in three divisions (domains, mines and forests). Formerly the total revenues from the " Cammergut," as in fact all state revenues, accrued to the crown direct, by whom the ex- penses of government were paid, but in 1832 a division was made; the " Cammergut" passed into the actual possession of the duchy, with tlie stipulation that the I'evenues therefrom, after deducting cost of main- tenance and administration, should first be applied to meeting the necessities of the reigning sovereign. This has been regulated in the form of a civil list, which, as established by law, amounts to 825,332.67 marks annually. The surplus from the " Cammergut," after payment of the above, as shown in the statement, is 2,515,600 marks. The prop- erties and moneys which formerly belonged to the now defunct Univer- sity of Helmstedt form a so called cloister and study fund ; the reve- nues therefrom are devoted to churches, schools, and charitable pur- poses. This fund shows an estimated deficit of 1,530,000 marks (actually GERMANY. 463 1,460,500 marks), which is covered out of the surplus from the " Cam- mergnt." The " Oarumergut " and cloister and studj' fund are adminis- tered together, and in tlie Statement A only the results are given, the surphis of one is offset in part by the deficit in the other; but in order to obtain a correct view of the actual financial condition of the Duchy the total receipts and expenditures in these departments should be in- cluded, since they are in reality part and parcel of the general receipts and expenditures of the government. Taking, therefore, this fund into account, the total receipts and expenditures of the ducal government are increased, round, 8,G24,000 marks, or, iu all, 27,293,000 marks. Which latter sum is the basis for making calculations of percentage of taxes to total revenue. TAXES. The fact that the amount of taxes collected has been considerably in excess of necessities caused a resolution to be introduced into the Diet March 10, 1883, calling upon the Grovernmeut for suggestions in regard to the disposal of the surplus. In compliance therewith, the ducal ministry proposed that 18 per cent, of the ground taxes should be re- funded to the communities, and that the personal tax for the first nine classes should be collected for eight months of each calendar year only, the tenth class to be wholly freed from payment. This mode of tax rebate was finally accepted, after much discussion, and then only under the supposition that a permanent solution of the problem would be be reached at the next succeeding session. The doubtful expediency of the arrangement was not only recognized by the representative cham- ber, but by the people, who presented numerously signed petitions, to the end that a general revision of the manner of taxation should be made. In the face of the circumstances, however, a provisional ar- rangement was necessary, since it was impossible to know at that time how the new and impending imperial tariff and tax; reforms would- aifect the receipts from and contributions to the Empire. The fortunate financial situation of the duchy has made it possible to meet the continually increasing necessities without at all straining the tax power of the people. The percentage of direct taxes to total revenue for the past fifty years (since the establishment of the consti- tution-) has been as follows : Financial period: Percent. 1 40.00 2 39.00 3 36.00 4 35.00 5 34,00 6 32.00 7 29.00 8 27.00 I Financial period : Ter cent. 9 26.00 10 26.00 11 24.73 12 20.97 13 18.06 14 15.11 15 19.47 16 22.19 1882 14.59 1883 16.11 GROUND TAXES. An dwelling-houses are subject to tax, and under the law of March 20, 1873, the same is assessed upon a sum equal to one-half of the rental as tax capital. For each 1,500 marks additional rental, in excess of 9,000 marks in firstclass, the tax capital is increased 750 marks, and all dwelling-houses 464 REPORTS ON TAXATION. having a rental less than 60 marks are placed in class 23 and pay a tax of 3 marks. The law of May 11, 1870, established the division of taxa- ble agricultural property into 13 classes, representing a tax capital of from $26.77 to $0.59 per hectare (2,471 acres), as follows :' Clas3. Farm land yielding winter grain, per hectare. Meadows yielding hay, per hectare. Commons for pasturageof cattle, per head. Tax capita, per hectare. I Seheffel* 60 55 60 45 40 35 30 25 20 15 12i 10" Centner. i 120 108 96 84 72 60 60 40 30 20 16 12 Sectare, 1 t h \ 3 $26.77 23.80 20.82 17.85 14. W 11.90 9.52 7.14 4.76 2.m 2.08 1.10 11 in IV Y VI VII VIII. IX X .. XT XII * 1. 6 bushels. 1 110. 23 pounds. When the capacity of the laud is estimated at less than the above, the same comes under class 13, with a tax capital of 2.50 marks ($0.59 per hectare.) Ponds and lakes which can be drained are as- sessed according to the value of the neighboring property, and when such land has various values, the average is taken. Forests are divided according to their yield into four classes, viz: Per hectare. First class $4.76 Second class 3.17 Third class 1,58 Fourth class .• 0.79 The ground tax is estimated at 3,410,700 marks, or 9.14 per cent, of total revenue. PERSONAL TAXES. Subject to personal tax are: (1) All residents of the duchy of botli sexes over twenty-one years of age ; (2) foreigners of like age who have resided continually within the duchy for the period of six months. The liability to payment of the tax commences with the first day of the seventh month of continued residence. Exempt from personal tax are representatives of foreign govern- ments (special provisions), military, etc. The table marked C shows how the personal tax is determined. The amount of this tax is estimated at 361,200 marks or 0.97 per cent, of total revenue. VJrxjJ.viuxi.1.1 X . 465 Table C. — Personal fax tariff assessed. Dosoriptiou. Court, state, church, school, civil, and niilitarv officers, pensioners, and their widows, etc.; also all civil ami military ollicers wlio have studied at a univer- sity, or have pnsaed a state examination, inasmuch as they do not belona to a higher class, -whose annual income equals or excerds — Landowners whose laud has a ground tax capital equal to or exceeding — Leaseholders, when the hold- ings have a ground tax capital equal to or exceed- ing- Industries which pay annual trade tax equal to or ex- ceeding— HoQse teachers, secreturies, directors of industrial es- tablishments, t r a V ellng salesmen whose income equals or exceeds — u .g CM i-c 43 >f$ M §^ 5-S a a ° S o certificate given to him, unless a seizing has been ordained by the competent legal ^authority. 470 REPORTS ON TAXATION. The persOQ who would have omitted to make the above declaration and payment to the '■ Lotterie-Verwaltung" before the end of the fourth day before the commenc- ing of drawing of each class loses all his rights to the ticket held until that period' ' and the respective collector is then entitled to sell elsewhere that ticket which woulff ; not have been renewed until that moment. Should a collector have sold, however a renewed ticket before the period authorized by the above stipulations, therefore an. lawfully, in this case the holder of such ticket would in no way acquire a right upon the prize drawn and he could only have recourse for an indemnity against his seller Any agreements between the collectors and subscribers relating to the payment of the subscription for tickets and delivery of the renewed tickets or any other separate stipulations not in conformity with the regulations of this plan are only binding for the contracting parties, and no responsibility can therefrom be derived and substantiated against the "Lotterie-Terwaltung" or against the chief collector, if the ticket has been bought from a subcollector. Section 1 .^Tickets houyht. — On tickets bought in the course of the lottery only after one or several classes have been drawn, the subscription, collecting fees, and impe- rial stamp-duty of the previous classes have to be paid; therefore a ticket bought of the second class costs 33 marks 60 pfennig, of the third class 58 marks 80 pfennig, of the fourth class 84 marks, of the fifth class 109 marks 20 pfennig, and of the sixth class 126 marks. As in consequence of the drawing of a ticket in any class whatever the further participation iu the lottery is extinct for the number of this ticket, therefore tickets which, instead of drawn numbers, continue to be played, are also tickets , bought and have to be paid for accordingly. For the better security of buyers of similar tickets the numbers of the tickets declared according to section 6 must each time be indicated under the next drawing and winning lists. Seciion 8. — Deduction from prizes. — From all prizes 12 per cent, is deducted. Be- sides, the chief collectors (including the share of the eventual subcollectora) are en- titled on all prizes to a deduction of 3 per cent, from the whole amount of the prize, and the collectors abroad to the re-imbursement of the forwarding charges for prizes of 300 marks and upwards. Section^. — Payment of prizes. — With the publication of the printed winning lists, iu numerical order, the payment of prizes of each class, in coin or notes of the Empire or iu bank-notes authorized by the bank law of the Empire, after deduction of the aforesaid percentage, is made to the collectors,, and thereafter through the collector from whom the ticket has been bought to the party interested, against deliveryof the original winning ticket, without which the prize can not be obtained. However, the holder of a ticket cau not cl.aiui payment of his prize before the expiration of three weeks after the last day of the drawing of the respective class. Section 10. — Directions for the toinner. — If the winner or otherwise lawful holder of a ticket has not obtained payment of the prize from his collector three weeks after the last day of the drawing of each class, and should he therefore wish to have the same paid to him by the ''Lotterie-Verwaltung" itself, iu this case he has, imme- diately and liitest before expiration of three months from the date of the prize-list;: S to give, post free, a written notice thereof direct to the " Lotterie-Verwaltung," re- 'ti mitting the original winning ticket, and he can thereafter take delivery of his prize,, .•: after deduction of the percentage for the lottery and for the collector, fourteen days after receipt of the notice, inasmuch as the case mentioned in section 12 has not occurred or a lien on the prize claimed has not been effected in consequence of a legal order of detention. Should, however, such notice be given only later or without in- closing the original winning ticket, the "Lotterie-Verwaltung" is not bound to payment. Section 11. — Disputes. — The decision of disputes arising out of lottery affairs has to be given by the competent legal authorities. Section 12. — Tickets lost. — In the event of tickets missing, the interested parties i have to give information w-ithout delay to their chief collector, naming the alpha-' ; betical distinctive letters if they are fractional tickets, and the collector has imme- diately to give information to the "Lotterie-Verwaltung," giving the name of the claimant. In case of a prize having been drawn by the missing ticket, should the latter not be presented for payment of the prize within .the term of forfeiture de- termined iu section 12, then payment is made to the person who should have de- clared the loss. If, however, a ticket declared as missing is presented for payment within the term aforementioned, and in the event of the matter not being settled amicably, to which purpose a term of one month from the date in whinh the notice has been given is granted to the parties concerned, the person who declared the miss- ing of the ticket is bound to institute the lawsuit and to authenticate within another month before the " Lotterie-Verwaltung" his carrying on the suit. This being done the respective prize remains in the hands of the '' Lotterie-Verwaltung," as well M in eases of seizure by authorities, till the final decision of the court of justice. But in case that no sufficient evidence as already stated be furnished, the respective prta is to be handed over to the person who presented the ticket. GERMANY, 471 Section \.i.—Term of forfeiture of tie tickets.— Prizes not claimed withm the term three months from the date of the prize-list by auy reason whatsoever remain for- ited in benefit of the lottery, except the cases' treat upon in sections 6 and 12. SeiitioH 14. — Any inquiries or applications concerning the jiarticipations in this ttery as well as complaints against collectors should be directed to the " Verwal- ing der Herzoglichen Landes-Lotterie." In case of declining decisions an appeal to le direction of the Ducal Lottery is allowed. Section 15. — Each subscriber can demand from the collector the ■delivery of the resent plan and is thereby enabled to take accurate cognizance of all regulations, id be guarded thereby against eventual prejudice. Direction of the Ducal Brunswick-Luneburg State-Lottery: C. Kruger, W, Tbulohn. Brunswick, April 20, 1887. Vertvaltung der Herzoglichen Landea-Lottei-ie. C. Wolff. THU ADMINISTEATIYE FEATURES AND FINANCES OP THE CITY OF BRUNSWICK. The government'of the city of Brunswick is vested in the magistracy nd city coiiucil. MAGISTRACY. The magistracy is a corporate body of sevea members, three of whom eceive fixed salaries and are elected for life, viz : the chief mayor, the aayor, and the city counselor. The remaining four members are elected ly the magistracy and city council in joint session, for six years ; they eceive no compensation. The magistracy holds regular bi-weekly ses- ions, but the preparation of all matters brought before it, and the execu- ion of its mandates, devolve upon the thi*ee paid members mentioned, vho, for the purpose of convenience, divide the work of administration )etween them into departments as follows : (1) Under charge of the chief mayor : General supervision, j)ersonality )f the <5ity service, finance, Lutheran church (including cemeteries), schools, poor, fire department, gas and water works, orphan asylum. (2) Under charge of the mayor: Deposits, buildings and parks, streets, boundaries, churches (Reformed Lutheran, Catholic and Jews), jharitable institutions, legacies and stipends, city mill, and abattoirs. (3) Undercharge of the city counselor: State and communal taxes, issociated charities, trade and manufactures, animals, Insurances, mili- tary, board of health, police. CITY COUNCIL. The city council is composed of twenty-seven members, elected by the Bitzens for six years. Theelectors are divided into three classes, accord- ing to amount of income tax paid, and the elections are so held that every two years the terms of one-third of the members of the coun- cil expire. The members receive uo com]3ensation. The council holds Balled sessions only, and all ordinances and appropriations of money for city purposes are m.ade by it, and it further exercises general su- pervision over city affairs as the representative of the citizens. CITY FINANCES. The value of all city realty, including school buildings, abattoirs, tire department, gas and water works, etc., is estimated at the close of the calendar vear, 1886, to be 16.000,533.31 marks, with a debt thereon of 7,157,463.55 marks. It is further estimated that 10,280,000 marks of 472 REPORTS ON TAXATION. the above is property yielding revenue; tLe balance of 5,780,C mai'ljs consists of scientific and art collections, public parks, and pn erty principally for communal and school purposes, from which no n enue is obtained. Table A shows the ordinary receipts and expen tures and table B the extraordinary receipts and expen ditures of the c government for the year 1886. The former shows a surplus of 99,673i marks, in which is included the permanent working fund of 69,500 mar The latter shows a deficit of 154,802.85 marks. Table is a statemc of the capitalized property and capitalized debt of the city, showing 1 actual increase of the city debt in 1886 to have been 12,277.59 mar The city has recently, 1887, negotiated a loan of 5,000,000 marks, at per cent, interest, for the purposes of municipal improvements, stree bridges, etc. Table A. — Statement showing the ordinary receipts and txpenditures of the dty o/ Bn wide, Germany, for the year ending December 3J., 1886. No. Department. Amount, Per cent. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Department. Amount. Perc 1 •> RECEIPTS. City property Marhs. lOU, 4U8. 65 8.23 EXPENDITUKES. City property Marls. 185,693.01 3, 387. 28 367,957.76 8, 475. 93 133,710.85 537.02 2, 417. 17 43, 954. 73 183,413.94 5, 228. 73 4,459.28 19, 354. 24 136,026.28 28, 224. 86 3 4 Science and art Poor . . 5 Poor 6 7 8 q Arousements Fire department 616. 67 16, 555. 09 28, 018, 36 2,721.33 810,143.30 92, 912. 76 20, 196. 77 142, 947. 82 .0.5 1.36 2.20 .22 66.38 7.61 2.15 11.71 Amusements Fire department 10 11 12 13 14 Stale necessities City government . .. Miacellaneoiia State necessities City ffovernment ... Miscellaneous Total Total 1, 220, 520. 75 100. 00 1,120,847.67 11 Marl Surplus. ■99,6; Table B. — Statement showing the extraordinary receipts and expenditures of (hedi Brunswick, Germany, for the year ending December 31, 1886. No. Department. Amount. No. Department. Amoi 1 KEOEIPTS. Movement of city property Marks. 572, 842. 42 47,171.77 60.00 1, 676. 64 6, 248. 87 1 2 3 4 5 EXPENDITURES. 87,3 •> 1 Real estate sold 71,6 4 Extraordinary and advances «0,Z 5 133,5 Total 627, 999. 70 7«!;« Mar Eeceipts ' 637,9 Expenditures ^ 783,8 Deficit „ ^154,8 GERMANY. 473 Table C. — Statement of the capitalized property and eafiitalised debt of the city of Brunswick, Germany, at the close of the year 1886. CAPITALIZED PROPEUTY. Mortgages 236,358.30 Bonds ■. 313,900.00 Due from gas works ^ 135,000.00 Dae from water works 279,600.00 Uninvested capital 1.098.63 Loan to churches 940^000.00 Total 1,205,956.93 1885 993,624.30 Increase, marks 212,332.63 CAPITALIZED DEBT. Loan from — Poor house 6,000.00 Police department 4,500.00 Commnnal charitable fund 2,100.00 Free Religion Association 24,000.00 Mortgage debt ' 84,000.00 Loan bank debt 327,000.00 Demands of citizens 144,350.00 Loan from circuit fund 2,977,177.67 Loan from Brunswick Credit Associ ation 460, 000. 00 Total 4,029,127.67 Adding the deficit of extraordinary account, 154,802.85 marks (less 94,874.74 already due from gas works, payment extended) 59,928.11 Total 4,089,055.78 Marks. Debt in 1885 3,-525,102.12 Adding deficit of 1885, covered in 1886 158, 808. 53 3, 683, 910. 65 Increase in 1886 40.5,145.13 Marks. Increase in value of city real estate, 1886 180, 584. 91 Increase in value of capitalized city property, 1886 212, 332. 63 392, 917. 54 Actual debt increase, 1886 12,227.59 CIRCUIT FUND. The Duchy of Brunswick is divided into five governmental divisions or circuits ; each circuit, consisting of several townships, is in itself a dis- tinct corporation. The city of Brunswick forms a circuit alone, and, although legally the circuit government is distinct and independent of the city government, actually the interests of the city and circuit are identical, and the government of both is invested in one and the same authority. A statement of the accounts and expenditures of the city of Brunswick would, therefore, be incomplete without reference to those of the Brunswick circuit. Table D shows the receipts and expeuditure.-i of the circuit fund for 1886, 474 REPORTS ON TAXATION. Table D.Statemeni showing the receipts and expenditures of the circuit fund (city of Brunswick) for the year 1886. KBCEIPTS. Marks. Movement of property 83,683.95 Cash on hand 20,383.01 Interest (from capital) 232,085.31 Miscellaneous 3,220.01 Total 339,372.28 EXPENDITURES. Movement of property 79,180.00 Interest 136,564.00 Extra allowances : Marts. Roads 17,857.12 Common school fund 7,000.00 Churches 12,000.00 Poor 12,000.00 Catholic church 200.00 Injured firemen 900.00 Widows of firemen 180.00 50,137.12 Cost of maintenance of insane : Idiots, blind, mutes 32,781.36 Coat of management 110.25 Total 298,772.73 Receipts '. 339,372.28 Expenditures 298,772.73 Surplus 40,599.55 At the close of the year 1888 the circuit fund iimounted to 5,796,472.54 Less debts 3,448,200.00 Actually 2,348,272.54 In general the functions of the circuit government are similar to those of counties in the United States, and consist in caring for the interests of the communities within its jurisdiction, in regard to highways, roads, schools, poor, insane, idiots blind, mutes, etc. TAXES. The amount of state (ducal) taxes to be paid by the residents of the city of Brunswick, in 1886, is estimated as follows : Marks. Ground tax 313,892.58 Personal tax 68,555.31 Trade tax 136,369.60 Total 518,817.39 Per capita exclusive of military 6. "2 Uil.KiViAi> 1. 475 The communal or city tax is levied solely upon income and amounted for the live years from 1883 to 1880 as follows : No. of iuhabitaiita (ex-military). Total tax income. Total communal ta.K. Taxod income per capita. Tax per capita. 1883 76, 621 78, 538 80, 515 83, 244 86, 251 Marks. 35, 058, 000 S6, 437, 700 38, 514, BOO 39, 484, 900 38, S^l, 500 if arts. 705, 245 721, 991 768,014 793, 403 801, 628 Marks. 457. 54 464. 06 479. 66 473. 99 454. 79 Marks, a 20 1883 1884 9 53 1885 9 53 1886 9.33 There were in 188G 34,475 tax-payers, divided into classes of from 40U marks to 205,000 marks income with a tax of from 3. CO to 7,380 marks ; further, sixty-six persons engaged in business in the city and residing elsewhere, paying income taxes here varying from 600 to 1,500 marks, and twenty stock companies paying from 1236 to 4,300 marks annual income tax. Under a resolution of the city council all persons having an income of 500 marks or less were, although assessed, exempted from payment of income tax in 1886. In concluding this report I think it pertinent to say that all persons — excepting those exempt by law — including foreigners, residing in the city, are required to pay a tax upon income. I refer to this fact more especially for the reason that many fellow-contrymen come here to re- side for a time, and hold the mistaken idea that since the sources of their income are elsewhere, that they can not be legally compelled to pay income or other taxes here. The law is very explicit upon this point. (Par.. 8 of the imperial law of November 1, 1867,* according to which for- eigners and new-comers in a community are subject to payment of com- munal taxes after the third month of residence.) One can not be forced to give information in regard to income, but the assessment is made by a commission, appointed for the purpose, upon the best information ob- tainable. If dissatisfied with the assessment, the taxpayers may make a reclamation ; this involves, however the giving of such a detailed and exhaustive statement, eventually upon oath, in regard to his affairs that, generally speaking, it is preferable to submit to the assessment. In the cases of foreigners, at least of those which have come to my notice, the governing factor in determining the amount of income has always been the circumstances in which the parties live here ; and that foreigners not engaged in business and owning no property are assessed upon such a sum as income which, according to best estimate, it, costs them to live here. I think that this may be accepted as the rule in Ger- many generally. Williams 0. Fox, Consul. Brunswick, September 15, 1887. 'Originally law of North German Union, incorporated into Imperial statute. 476 REPORTS ON TAXATION. TAXATION IN SAXONY AND CHEMNITZ. REPORT OF TIOE-OONSUL MURPHT. In Saxony there are two distinct systems of taxation, one for state an64.00 29, 859. .19 18.409.82 30,685.00 32,812.25 24, 209. 10 5,825.00 30,593.88 3,920.00 4,600.00 248,291.18 23, 203. U 700.00 23,125.50 753, 791. i 1,627,736.31 The income.s of state offlcials, army officers, and the like are in Chem- nitz taxed on only four-fifths of their amount for municipal purposes, though the state makes no such allowance in levying its taxes. In- comes from other sources than salary are taxed on the full amount. NET AND NOT GROSS PROFITS REGARDED AS "INCOME." The amount of income from and industrial business or trade which is taxed is the profit of the tradesman after deducting the necessary business expenses and the salaries actually paid. The proat of a partnership business is divided, for the purpose of taxation, into as many parts as there are partners, and each partner is taxed ou his share. If the partnership is not one of equal shares, this GERMANY. 483 fact is not taken into consideration; and the matter is left to the part- ners themselves for settlement. If one of the partners is not a resident of Chemnitz, the resident part- ner must act as his representative for the payment of his taxes. Corporations, mining companies, farming companies, and the like are taxed according to the surplus, which is either divided among the share- holders as a dividend or used as a reserve fund or for sinking their debts. The authorities have the right to alter a balance-sheet. in accordance ■with correct business principles. The taxation is done according to the business result for the year, if any report has been made at or before the time of taxation ; otherwise the assessment is made on the balance-sheet for the preceding year. The supervision of taxation is intrusted to a committee of eight mem- bers, which is elected annually. The city council chooses from its num- ber four members, and four are elected by the citizens of the town. DUTIES OF TAX SUPBEVISOES. The first business of this committee is to prepare a tax list in which the names of all persons subject to taxation are recorded. This list must be completed at the end of September, so that the as- sessors may begin their work in October. The department for the inspection of buildings keeps a register of all buildings erected during the year which in any way affect the value of the property on which they are situated. This list contains the fire-number showing the age of the house, the name of the proprietor, and a general description of the structure. The tax-office in connection with the town treasury has a similar reg- ister of all changes of boundaries and ownership. These two registers are delivered to the taxation committee annually at the end of September. Every person has the right to inform the city authorities at what amount he estimates the income from his property for the year, and also his other income, but this must be done by letter before the end of Sep- tember. Due notice of this is annually given by the town council in the principal newspaper. The taxation committee examines all declarations. made in this way. Principals are required to inform the committee before the end of September what salaries their clerks have been receiving from the be- ginning of the year. If these salaries have varied, the average amount must be stated. Wrong statements, the neglecting or unpunctual delivery of this dec- laration are each punished by a fine of 100 marks. SUBCOMMITTEES AND THEIR DUTIES. The general taxation committee appoints a number of subcommittees on taxation from among the citizens of the town. These subcommittees consist of twelve members, eight of whom com- pose a quorum. A member of the town council presides over each of these subcommittees. Any one refusing to act on such a committee without having a suffi- cient reason is punishable by a fine of from 15 to 300 marks, which is paid into the poor fund. 138—1^0, 99—15 484 REPORTS ON TAXATION. The members of the taxation committee are bound by oath to a con- scientious performance of their duties, and to secrecy in regard to all business transactions. If a member of the committee or any of his relatives is being assessed, he is obliged to temporarily absent himself. If a member neglects to attend a meeting without a sufficient excuse,/ he is fined 1 mark, which amount goes into the city poor fund. In cases of difference of opinion the question is put to vote, and in case of a tie the president has the casting vote. The council 'members of the committee have, moreover, the right to refer any question on which they decidedly differ from the majority to the town council. The committee has also the power to put into a different class those who have a large family of children, or who support poor relatives, or who have incurable sickness, or those who have met with some great misfortune. After the assessment is completed the town council arranges the taxes for the different classes, and the terms of payment, and prepares an es- timate of the city revenues and expenses. As has been said before, the rate of taxation increases with the amount of income up to 9,000 marks, beyond which point it remains unchanged. The taxation table is estimated not on a basis of a hundred, but of a thousand. It is prepared in vertical parallel columns, the first showing the number of marks per thousand, and the tenth the number per hun- dred. In all there are twenty of these columns. One year the tax per thousand marks will be taken, say. from the eighth column ; the next year, if the wants of the city be greater, it may be taken from the tenth or the twelfth column. BASIS OF THE TAX TABLE. In other words, the taxation table is prepared on the basis of thou- sandths to give it a greater capacity for meeting the exact wants of the state. The town council sends to each tax-payer a bill, which contains the fire-number of the house, thus showing its age ; the street number, the name and profession, the amount of taxes, the time for payment, and the printed signature of the town council. A period of two weeks is allowed for corrections, and if claims are not made within that period they receive no consideration. Geo. H. Murphy, Yice-Gonml, Chemnitz, May 26, 1887. TAXATION IN DUSSELDORF. REPORT OF OOIfSUL FARTBLLO. The state taxes will have to be considered first, as they form the on which municipal and local rates are levied, with very few exceptions, and these of very little importance. The state taxes are of three kinds, viz, the income tax, the trade tax, and the ground-rent or real-estate tax. All revenues derived from landed and real property, all profits from trades, professions, and handicrafts, all salaries of Government and pri- GERMANY. 485 'ate servants, down to the wages of domestic servants and common la- (orers, are subject to the first named. [Here were inserted the same tables and in the same order as those irinted in Oonsul-General Mueller's report.] The total to be raised by the first twelve classes is fixed by law, so hat should the estimated yield exceed or fall short of it the minister of inance in receipt of the assessment papers orders an abatement or an idditional charge, as the case may demand. METHOD OF ASSESSMENT. Assessments are made by a board consisting of the mayor or chief nagistrate of the township or rural commune and of members whose mmbers are fixed in accordance with the population of the district, and yho are elected from amongst the rate-payers, care being had that ;uch members shall fairly represent the various trades and occupations. A similar committee, of which one-third are chosen from the govern- ng body of the rural or municipal district and two-thirds from amongst ;he rate-payers, determine the assessments on incomes above 3,000 narks per annum. EQUITY IN THE ASSESSMENTS. The law moreover directs the income-tax commissioners, both of the 'Klassen" and the " Klassificirte Binkommensteuer," in fact all boards )f assessment that may be mentioned in the course of this paper, to exer- iise a wise discretion in determining the amounts, and not to be guided iolely by what they conjecture the income to be, but by what they con- sider just, taking into account in the lower ranges, for instance, the lumber of children in the family; the gratuitous support, if such there 36, of aged and infirm relatives; the nature of the trade or occupation, )r any other circumstances that may appear to warrant a reduction, ilthongh the commissioners are to make careful inquiries as to the inancial position and the earnings of the rate-payers, all inquisitorial jroceedings are prohibited, except in cases of appeals against their issessments, when the appellant can be called upon to produce evidence )f his having been unfairly rated. The trade tax is a kind of trade-licensing fee, paid annually by all persons engaged in commerce, industry, and trade (including the brew- ng and carrying trades, flour-mills, all retail business and handicrafts), md by such as keep hotels and houses of public entertainment ; also by tiackney-coach proprietors, owners of boats plying for hire, etc. A mean rate, according to the wealth and position of the urban or rural district, has been fixed for each of these classes, and as the yield tias to be equal to the product of such mean rate multiplied by the Qumber of contributors, it follows that assessments below this rate have to be balanced by others above it; the range, however, is limited by law. For instance, the mean rate for AI, in a certain town, being 72 marks per annum, assessments under that head may not be below EM 36 nor above 144 marks. Boards of commissioners with similar powers to those held by the income-tax committees are appointed in a similar way to attend to the equitable levying of those rates. AMUSEMENT AND PEDDLEES' TAX. Traveling companies of actors, equestrians, and others, strolling musicians, peddlers, etc., pay from 6 to 144 marks per annuui for a 486 REPORTS ON TAXATION. license, the amount being fixed by the authorities not by the commie sioners. Ground-rent is levied (a) on land, (6) on buildings and tenements fo dwelling and industrial puposes ; gardens attached to houses are ratabl as land if they exceed in size 1 morgen, equal to 25 ares 53 meters, o: about three-fifths of an acre. Numerous exemptions under both heads are made in favor of char itable institutions, church and crown property, etc. MODE OF LEVYING THE TAX. The amount to be raised under Schedule A is fixed by law for eacl province ; the quota to be contributed by the several divisions of eaiL province is determined by the provincial parliament, then distributed pro rata amongst the subdivisions, the sections of subdivisions, etc., until the final assessments of individuals are made by boards constituted like the boards previously mentioned. POWERS OF THE BOARD OF APPEAL. These boards are empowered to grant, subject to the approval of the provincial assembly and the ratification of the same by the Government in Berlin, a remission of taxation and even substantial assistance in cases of fire, floods, hail-storms, and other visitations of Providence; such disbursements are met in the old provinces by additional rates, imposed as occasion may require, whilst in Ehineland and Westphalia special funds are set apart for that purpose every year. There is no limitation to the amount to be derived from the house tax or inhabited house duty prescribed by legislation ; the rates are 4 per cent, on the net annual value of dwelling-houses, and 2 per cent, on that of industrial establishments. The mode of assessment differs from that under Schedule A in so far that the commissioners have to fix the ratable value of the tene- ments instead of apportioning the quota to be contributed by each. owner. They, however, have the same x^ower of granting remission of taxes and relief to rate-payers as enjoined by their colleagues, the funds for this purpose being derived from similar sources. It should be mentioned that the owner of the property under a and b pays the rates and not the tenant, if there be one. MUNICIPAL AND LOCAL BATES. The cases of these are, as already indicated, the assessments for state taxes. The expenditure for the ensuing year having been fixed by the governing body of the urban or rural district, rates are levied in accord- ance with the requirements. At the present moment the inhabitants of Dusseldorf are paying to the corporation tax or ground rent as follows : On taxes paid to the State : Per cent. Income . .. 215 Trade 90 Real estate 90 THE EVILS OP INDISCRIMINATE TAXATION. The incidence of taxation is admitted to be anything but just, as the expenditure stands very frequently in inverse ratio to tbe rateable GERMANY. 487 capacity of a district. This is more particularly felt in agricultural communities, which are rarely very rich, and still have heavy budgets. I will mention but one item, the maintenance of great lengths of road, for instance. It is not surprising, therefore, that local rates vary greatly both in town and country, and that whilst being as low as 50 percent, of the state taxes, in some parts they are 500 and 600 per cent, of the same in others. COMPULSOEY CHUECH TAX. Octroi duties .on articles of food and others do not to my knowledge exist anywhere in Prussia, but there are some minor rates which I have omitted as unimportant, for instance the church rate; everybody being obhged to belong or at any rate to contribute to some recognized relig- ious community. Gas and water are paid for separately, even where the works belong to the corporation. In conclusion it may be mentioned that taxes are imposed on contracts of every kind in writing made between individuals what is called here Stempelsteuer; also taxes on mortgages, loans, trusts, inheritances, etc. LUXUEY MUST PAY. Articles of luxury, snch as cabs, carriages, dogs, horses, even balconies on the fronts of buildings, are subjects of taxation. The last-named taxes are, however, general in Germany, and not con- iined specially to Rhine-Prussia. D. J. Paetello, Consul. DUSSELDOEF, October 15, 1887. TAXATION IN ELBERFELD. REPORT OF CONSUL FOBSTHR. EEVENUE AND EXPENSES OF THE CITY. There have been levied for the city of Elberfeld in the fiscal year ending March 31, 1887— I. — STATE TAXES. Marks. In 1884-'85: Class taxes '228,987 Income tax 269,8-20 Ground tax 5,753 Dwelling tax 267, 7a3 License tax 164, 538 Total 936, ^^'^S Marks. In 1885-'86: Class taxes 237,639 Income tax 309,546 Ground tax 5,709 Dwelling tax 272,630 License tax 171 , 735 Total 997,259 all of which was collected except three monthly installments of the two lowest degrees of the class tax. For church purposes there were levied for 1881-'85 142,168 marks, and for 1885-'86, 163.593 marks. *|1 equals 4 marks 25 pfennigs. 488 EEPOETS ON TAXATION. II.— MUNICIPAL (COMMUNAL) TAXES. For the fiscal year commencing on April 1, 1884, and ending March 31, 1885, there were levied — For the support of the poor 245 747 All other municipal purposes 1, 190 384 For provincial purposes 118|867 Total n, 555, 000 of which amount the small balance of 12,722 marks- remained uncol- lected. . During the fiscal year from April 1, 1885 to March 31, 1886, there were levied for all purposes 1,659,000 marks, showing an increase over the previous year of 104,000 marks taken from the income tax. During the year from April 1, 1886, to March 31, 1887, there were levied— Marks. For support of the poor 239,649 All other purposes 1,320,823 Provincial purposes 119,627 Total 1,680,000 or 350 per cent, on every 100 marks of the state income tax. REGULATIONS IN THE ASSESSMENT OP TAXES. BOARD OP ASSESSMENT. The assessment of taxes is made by a board of assessment, consist' ing of eight members, (four of whom must be members of the city council, and four are citizens, paying respectively class tax or income tax), presided over by the mayor of the city (Oberbiirgermeister), who is allowed to vote only when the vote is a tie. Within four weeks after the assessments are made and the assessment roll has been laid out for in- spection, each tax-payer receives his tax bill, and within the first eight, days of each month he has to pay, invariably in advance, his monthly installment of city taxes. He may, however pay his quota for a longer term. RELIEF BOARD. Within three months after the assessment roll has been laid out com- plaints have to be made to the mayor of the city, and claims for a re- duction of taxes will only be granted on proof being given that one's income, as assessed by the board, has been decreased at least one-fonrth during the current year. All complaints or reclamations arising out of too high an assessment, etc., v/ill be registered, and after having been submitted to the board of assessment decided upon by the mayor, against whose decision the tax-payer must within six weeks send his appeal to the higher authority, which in such cases is the imperial "Ee- gierung." It is of very rare occurrence that claims of petitioners to re- mit taxes are heeded, and unless the utter impossibility to pay is satis- factorily proven the relief board will not listen. A dog-tax of 9 marks annually for each dog kept by citizens for ] ure's sake is also levied in the city of Elberfield. "Leaving pfennigs out. GEKMAKY. 489 CITY KEVENUE AND EXPENSE ACCOUNT FOR THE YEAR ENDING APRIL 1, 1887. To show to better advantage the several sources of income and the items of expenditure of the city government the following recapitula- tion may find a place in this report, viz : RECAPITULATION. Sources of revenue for the city have beeli — Marts. From permanent rents and leases of city property and city buildings - 46, 889 From temporary rents, leases, and income from city institutions 762,965 From interest on capital and city bonds 7,598 Municipal taxes (direct income tax) 1,680,000 Dog tax 14,600 Revenue for support of the poor, viz: From the " Daily Anzeiger " (city paper) 82, 600 Interest on the revenue fund 40,000 Receipts from shows, permits, etc 8, 800 Interest from the poor fund 17, 124 Administration of the poor-house, orphans' home, hospital, dona- tions, etc 274,460 Miscellaneous receipts 189, 196 Total 2,976,000 Expense account: Administration of city government 129, 786 Police of the city 195,834 Tax on city property (state tax) 4, 225 Interest andsinlcing fund 681,851 Repairs of public buildings - 177, 826 Support of the poor 514, 008 City schools 785,684 lUumination of city 114,200 Street cleaning 49,250 Fire departments 18,000 Pensions to city officers - 9- 880 Miscellaneous ■. 259,451 Total 2,976,000 Charles Forster, Consul. United States Consulate, Unerfeld, June 19, 1887. TAXATION IN HAMBURG. BEPOBT OF CONSUL LANQ. The systems of taxation in Hamburg are peculiar as compared with those of the other commonwealths of the German Empire on account of the relations which subsist between Hamburg as a free port and the Im- perial Government. In almost all the German States the taxes are divided into three classes, to wit : Imperial, state, and local. In Hamburg state and local taxes are jointly taken from the people. No separate account is kept of the state antl local taxes ; the joint receipts form a general fund, and the state and municipal treasury is the same. The small towns, vil- lages, and hamlets belonging to Hamburg, such as Bergedorf, Ritze- 490 EEPOETS ON TAXATION. blittel, Cuxhaven, etc., have separate local treasuries. The inhabitant of these communities pay their taxes to the state as do the inhabitant of Hamburg, but a part of these taxes are returned to their treasuries fc defray expenses of local administration and representation. HambuKj occupies an exceptional position as regards imperial taxation on ac count of its being a free port. The principal sources of revenue to the Imperial Government are ia port duties and the taxes upon articles of consumption. Hamburg is not considered inland, because it is a free port ; no di rect taxes can be levied upon spirits, beer, sugar, salt, tobacco, etc.; bu as it is a state of the German Empire and derives benefits and advaE tages from institutions maintained by the imperial revenues it was m cessary to find a way in which the State of Hamburg might contribut her proper proportion to the imperial treasury. This is effected b; what is termed the " Aversum." THE AVERSUM AND THE " PEK CAPITA." The annually published statistics show how much of these texe each individual of the population of the German Empire residing wiM the " Zollverein" pays. This amount, multiplied by the number of ir habitants residing within the limits of the free port, constitutes th " Aversum" which Hamburg annually pays into the imperial treassrj In addition to this "Aversum" there is collected from Hamburg per capita tax of 5 marks, which is levied in consideration of the fac that Hamburg's population, being a well-to-do people, consume more c the taxed articles than the population residing within the " Zollverein, This greater consumption being a well-established statistieal fac the per capita tax of 5 marks is also paid into the imperial treasury The ''Aversum" and the per capita tax in the year 1884 amounted t 4,000,000 marks. In addition there is collected from the population c Hamburg a matricular contribution {" Matricularbeitrag ") of 1,000,00 marks. Hence these contributions from the citizens of Hamburg to th support of the imperial treasury are 5,000,000 marks per annum, j further not very important amount is collected in the way of stamp affixed to bills of exchange, receipts, lottery tickets, cards, and oth« instruments of writing subject under the stamp act. The new exchang duty is so recently established that it would be difficult to state th amount which will be derived from it, but it may be safely estimated i not less than 1,000,000 marks, as the Hamburg Exchange is one of ti most important on the continent. TREASUET FIGURES. The revenues and expenditures of the Hamburg Treasury are pui lished each year in the budget. The budget consists of the ordinariui and the extraordinarium, and the sources of re venues and expendi tun are classed accordingly. Considering firstly the ordinarium, we fin from the recently published accounts that for the year 1885 the rev nues amounted to 38,344,838.01 marks. The ordinarium is divided into four heads — (1) State property and its royalties. The income out of the! amounted to 10,445,394.79 marks, and is derived from the differei buildings, territories, government farms, and forests. The revenues < the royalties are from the slaughter-houses, water works, gas work GERMANY. 491 railroady, tramways, wharves, lotttery, pawn-shops, mint, and the petro- leum and wood harbors. (2) The revenue obtained from these sources amounts to 22,441,952.85 marks. • .Further reference will be made to this part of the ordinarium, as it constitutes the most important source of the Government's income. (3) The taxes arising from fees paid by those who send to the public schools (Volkschulen), and who are able to pay for the tuition of their children, from those who are able to support themselves in hospitals and the charitable institutions, and from the receipts of the' peniten- tiaries. Those who are not able to pay for their maintenance in the hospitals and charitable institutions are admitted free, as also those who are not able to pay tuition in the public schools are permitted to send their children to school at public expense. These taxes amount to 5,290,150.30 marks, but the revenue from this source is irregular, and is often less than the expenditures for maintaining the institutions which it is intended to support. (4) Fines, penalties, and such bther occasional revenues as may arise, and which amounted to 167,385.07 marks. The expenditures for the ordinarium in the year 1885 amounted to 36,183,873.45 marks. The disbursements were : (a) Salaries of the senators, syndics, and secretaries, (b) The interest upon the public debt (173,000,000 marks), (c) Keeping of the public buildings, roads, canals, etc., iu order, (d) Deepening the channel of the river Elbe, (e) Sustaining the public schools, courts of justice, the police, charitable institutions, hospitals, salaries of officials, and the annual contribution of 5,000,000 marks to the imperial treasury. There is an excess of collection over expenditures amounting to 2,160,964.45 marks. This excess is carried to an account entitled "Sur- plus of former years." From this account the Government defrays a part of the expenditures of the" Extraordin avium," such as the erection of new public buildings. The cost of constructing the new state-house (Eathhaus) and the new hospital are, however, not paid from this fund, but are covered by a loan made for that purpose. It is held that as posterity will have the use and benefit of the buildings they should pay for them. The revenues of the " Extraordinarium " are received from the sale of the public grounds. According to the laws of the state the receipts from this source are appropriated to the extinguishing of the public debt and consequently do not go into the general fund. The receipts from sewerage (Sielabgabe) is a separate fund and ap- propriated only to the maintenance of the system of sewerage. Another separate fund of the "Extraordinarium" is the account of Zollanschluss of Hamburg to the ZoUverein. The city of Hamburg has made for this purpose a loan. Only after all the works connected with the Zollanschluss are finished, and which are now under construction, will the interest of this loan be entered in the " Ordinarium." The ex- penditures for the Zollanschluss as at present estimated will be 112,- 637,300 marks, of whichsum the Imperial Government will pay 40,000,000 marks. TAX RECEIPTS. The taxes, imports, and duties collected from the inhabitants of Ham- burg are as follows : (1) Ground taxes.— The amount of ground tax paid m the year 1885 was 7,528,482.64 marks. Theassessmentisone half of 1 percent, outhe 492 REPORTS ON -TAXATION. estimated value of the property. On small buildiugs and lodgings the assessment is diminished by one-quarter. The estimated value of houses let for lodgings is ascertained by converting the rent into an interest upon the capital. The valuation is obtained at a rate of 4^ per cent, for smaller dwellings and at 6f per cent, for larger ones. The taxes on a house paying 1,000 marks rent would be llff per cent, of the rent. The tax of one-half of 1 per cent on the valuation of property is considered a heavy incumbrance on property in Hamburg. Hence higher prices are demanded and the cost of living is made dearer. Should there be a diminution in the rate of ground taxes it is doubt- ful whether any perceptible change would be made in prices. (2) Income tax. — The income tax is levied upon each individual. Every person is required to make a written declaration of what his income amounts to. In case of the failure to render this declaration by any person then an income is fixed by a tax assessor, who is elected by the "Burgerschaft" (legislature) and who serves without compen- sation, the position being esteemed as a high civic honor. On incomes above 10,000 marks, and all sums above that amount, the tax is 3^ per cent. On incomes of 5,000 marks the taxes are 91 marks; 2,000 marks 16 marks; 1,500 marks, 11 marks, and on 1,000 marks 6 marks. Incomes less than 500 marks are not taxed. The head of a large family has a right to demand a reduction of his taxes, which is generally liberally granted. The inhabitants of the ter- ritory of Hamburg, within the Zollverein, have one-fifth less of income tax to pay than those lying out of the Zollverein. (3) The stamp offices for Hamburg show a receipt from that source of 1,268,000.02 marks. The stamp taxes are slight, and are not consid- ered burthensome. THE VICTUAL TAX. (4) A very important item in the taxation of Hamburg is the excise tax on victuals. In the year 1885 the sum realized from this source amounted to 2,259,177.03 marks. This tax is a duty demanded at the gates of the city upon corn, flour, barley, bread, breadstuffs, meats, cat- tle of every description, game, beer, wine, liquors, in short upon every article of food. A part of the excise is levied directly upon the article, but the greater part is levied as brewery, malt, and public-house tax, The country and the suburbs of St. Paul's are exempt from this tax. It is also not burthensome, as small quantities (less than 30 pounds) are not taxed. Only wholesale imports of meats ' and other consuma- bles into the city are taxed. Notwithstanding that the prices of eata- bles are higher in Hamburg than in the suburbs, the difference is so slight that it would hardly pay, for example, to purchase small quanti- ties in St. Paul's. (5) The declaration tax is a remnant of the old Hamburg custom du- ties. It amounted in the year 1885 to 500,406.55 marks. Formerly there was imposed a custom tax on all articles imported into Hamburg of one-half of 1 per cent. About fifteen years ago this was reduced to one-fourth of 1 per cent. So unimportant is this tax that it is seldom levied upon articles of bulk, a great part of which are not able to pay even this small impost and are exempted, such as bricks, coals, cement, and all building materials. This tax is maintained more for statistical purposes. (6) The tonnage dues paid by vessels during 1885 amounted to 917,542.75 marks, and from the vast amount of tonnage arriving at the port this sum would indicate that the tax is also slight. GEEMANY. 493 (7) From tolls oa turnpikes and bridges, 9,770.97 marks. (8) The inheritance tax amounted to 1,008,908.41 marks in the year 1885. INHEEITANOE TAX AND ITS EXEMPTIONS. According to the act of December 29, 1851, the tax on inheritances is as follows : Two and one-half per cent, for relatives of the second and third degree, adopted children 5 per cent., relatives of fourth degree 7J per cent., relatives of more distant degree or non-relatives 10 per cent. The following inheritances are exempt from such taxation : Prom parents to children, from husband to wife, to charitable institutions, estates of less than 4,500 marks, legacies of 360 marks and less as long as one person is not left more than 360 marks, also amount left to ex- ecutors as long as it does not exceed the sum of 4,500 marks. (9) The taxes paid upon the sale of landed property, buildings, etc., which amounted to 1,139,963.78 marks in 1885. This is a tax paid by the vendor and vendee of landed property and houses. The tax is 2 per cent, on the value of the property transferred, 1 per cent, of which is paid by the vendor and 1 per cent, by the vendee. (10) Among the less important taxes are licenses for theaters, danc- ing-halls, and other public places of amusement, which in 1885 amounted to 59,399.83 marks. The tax upon dogs for the same year was 146,825 marks, at 10 marks per capita. There is also a brand tax, which yielded a revenue of 413,116.07 marks. This Is a tax for Government stamp upon all measures, whether dry or liquid. A COMMUNITY THAT ENDURES AN INCEEASE IN TAXES WITHOUT A MUEMUE. The population of Hamburg bears this burden of taxes without difl- culty or complaint. As evidence, some three years ago the income tax was increased from 3 to 3J per cent. The bill passed without much op- position, and excited no public interest. The working people pay apparently but a small direct tax, and as wages are higher in Hamburg than in other provinces they are able to pay their contributions to the Government without great inconvenience. HIGH EENTALS THE EESULT OF GEOUND TAX. The burden of taxation in Hamburg is to be found in the ground tax. On account of this tax house rent is high, in fact higher by 10 per cent, than in any other city in Germany. The consequence is that every artisan and tradesman demands a higher price for his articles and prod- uce. Although Hamburg is a free port and exempt from direct taxes to the imperial treasury, still the standard of expenditures is higher and the cost of living is dearer than in Berlin, and far exceeds the prices paid for the same conditions in south German cities. Whether the Zollauschluss will change this condition is a question which the future alone can decide. Under the methods of taxation the wealthy pay the bulk of direct taxes, but here as elsewhere this burden is shifted through trade and interchange until it eventually reaches the shoulders of the poor. 494 REPORTS ON TAXATION. The burden of taxation borne by eacli individual is as follows : Marks, Excise 4.25 Direct government 31.28 Indirect government 8.59 44.12 Comparing the receipts and expenditures per capita of the city of Hamburg with those of other German cities we find the following re- sults : Cities. Receipts; Income tax per capita. G-ovemment and local. Expendi- tures per capita. Hamburg Berlin Ereslau Cologne Frankfort-on-tho-Main Altona Maries. 35.40 50.68 38.67 50.22 60.14 28.28 Marks. 35.53 37.36 28.60 39.61 54.31 23.62 Marks. 64.39 60.71 40.83 50.22 106.34 40.81 The following table shows the expenditure per capita for educational purposes in the same towns : Cities. General education. Public schools. Hamburg Berlin Brealau Cologne Frankfort-on-the-Main Altona Marks. 5.77 5.81 5.46 5. 56 5.74 3.33 The towns belonging to the Kingdom of Prussia pay two-thirds of these expenditures, and the Imperial Government pays the other onetiiird. In Hamburg, the state and city treasury being identical, the whole amount is paid by the same. A CHEAP PROCESS OF 'COLLECTING. The expense of collecting taxes in Hamburg is light. For the collec- tion of the ground and income taxes few oiHcers are required, as the citizens do the greater part of the work themselves. Printed blanks are sent to each tax-payer, with a notice that taxes are due and must be paid at a particular time at the respecdve oflices. They are required to appear in person at the offices and render their assessments and pay the taxes. Noncompliance with the order is followed by a seizure of a sufficient amount of the property to cover fines, taxes, and cost of col- lection. It is very difficult to give a correct statement of the cost of collecting taxes in so small a community as Hamburg, as the different methods are not kept separate, and the officers employed in collecting taxes are also required to perform other ofiicial duties ; but it may be safely admitted that the greater part of the expense is the collection of indirect taxes. The excise taxes are also collected at a very small cost, ZjOUV( 250UV( 250UV( 250UV(j GERMANY. 495 ^^. very likely be abolished ou the entrance of Hamburg into the oavereiu." How far the city will be benefited by entering the customs-union is a question which the future must answer. Party spirit and party opinions are so much divided on that point that it would be quite venturesome to hazard an opinion. The principal argument used in defense of the act is that the "Aver- sum" now paid by Hamburg will be abolished, but it will be imposed upon each individual in the form of an indirect tax instead of a direct tax, as now paid by the government of Hamburg. As the indirect tax will be levied principally upon artiiiles of food and staple commodities which are used by the poor more largely than by the wealthy, it is evident that the greater part of the sum now cov- ered by the "Aversum" will fall upon the poor. Haniburg's state-homeliold account for the year ending Decemler 31, 1885. EECEIPTS. Income. Govemyne^it property, domains and regalia. Ground-rents and rents Rents of buildings and yards — Rents for farms Forest, liuntin,£f, etc SlaugMer-liouse Cattle market and cattle yards . Locks and canals Petroleum-barbor Water-works Gas-works Zollverein store-houses Liibeck, Hamburg and Bucben E. E - Railroads Tramways Wharfs City theater Lombard (pawn-shops) Lottery Mint Reco^itions Wood-harbor rent State's deposit account Dutii:^ and taxes. • Ground taxes Income taxes Stamp duty Duty on victuals Declaration duty Tonnage dues Turnpikes, and duty on trees - . - Heritage duty Real estate duty Duty on public amusements Dog tax Fire insurance Fees, and vaHous other sources of income. Office of senate and archives Finance bureau • Duty bureau MaH-s. 298, 324. 83 823, 297. U 116, 586. 03 27, 602. 66 54, 992. 63 123,241.18 4,5, 394. 35 49, 811. 66 1,723,368.43 3, 227, 582. 29 69, 772. 00 Income, 1886-'86. Marks. 74.00 3, 358. 74 3, 838. 55 37, 96, 279, 1, 323, 6, 109, 1, 870, 35, 90, 13, 31, 750. 00 434. 47 695. 96 854. 80 000. 00 044. 02 1)00.00 744. 14 605. 51 098. 00 103. 19 Esti. mate of arrears. 893. 94 52.57 42.50 31,851.37 528, 800. 14 158, 148. 73 268, 000. 02 259, 177. 03 500, 406. 65 917, 642. 75 9, 770. 77 008, 908. 41 139, 963. 78 59, 399. 83 146, 825. 00 421, 895. 60 7, 056. 25 109, 944. 44 4, 424. 00 Total ac- count includ- ing estimate ol arrears. JIarks. 298, 398. 83 825, 655. 88 120, 423. 58 27, 502. 66 54, 992. 53 122, 241. 18 45, 394. 35 49, 811. 66 1, 724, 261. 37 3, 227, 634. 86 69, 723. 00 37, 750. 00 96, 434. 47 279, 595. 96 1, 333, 854. 80 6, 000. 00 109, 044. 02 1, 870, 000. 00 35,744,14. 90, 637. 31 13, 098. 00 31, 103. 19 10,44.5,349.79 7, 538, 7, 190, 1, 268, 3, 259, 500, 917, 9, 1, 008. 1,139, 69, 146, 423, 843. 64 OOO. 00 000. 03 177. 03 406. 55 542.75 770. 77 908. 41 963. 78 399. 83 835. 00 116. 07 32,441,952. 85 7, 055. 25 109, 941. 44 4, 424. 00 Budget. Marks. 294, 700 769, 700 129,700 26, 600 57, 600 146, 600 43, 000 51, 000 1,721,000 3, 218, 000 54, 700 32, 625 95, 800 243, 400 1, 321, 300 6,000 110, 000 1, 870, 000 34, 000 84, 000 11, 400 35, 300 10,357,525 7, 400, 000 7, 200, 000 1, 207, 000 2, 170, 000 541,000 874, 000 10,700 700, 800 1, 200, 000 59, 900 120, 000 402, 000 21,885,400 6,000 93, 000 1,800 Surplus of income. Marks. 3, 698. 83 55, 955. 88 902. 66 .35 3,361.37 8,734,86 5, 072. 00 1, 126. 00 634. 47 37, 196. 96 2, 554, 80 1, 744. 14 6, 037. 31 1, 698. 00 128, 842. 64 61, 000. 02 89, 177. 03 43, 542. 75 308, 108. 41 26, 825. 00 11, 116. 07 1,055.25 10,941.44 ■J, 624. 00 Manco ot income. 9, 276. 42 2, 607. 47 24, 358. 82 1, 788. 34 4, 197. 81 40, 693. 45 ""929."23 60, 036. 22 500. 17 496 REPORTS ON TAXATION. Mmiburg^s state'houaehold account for the year ending Deceniber 31, 1885 — Continued. EECEIPTS-Continued. Income. Income, 1885-'86. ■ Esti- mate of arrears. Total ac- count includ- ing estimate of arrears. Budget. Surplus of Mancoof income. Fees, and various other sources of income— continued. Commerce and shipping tnreau. Board of trade Building board - . Military board Board of public schools Courts of law ■ Mortgage bureau Heritage bureau Police Building and constructing bureau Statistical bureau Emigration bureau Prisons Board of health GynaBCological institution Fire department Chnrch yard Public hospital Seaman's hospital Lunatic asylum Orphan asylum Poor-house Poor-house in St. Paul Administration of— Geestlande Marscblande Kitzebiittel Bergedorf Extraordinary sources of income. GoTernment share in iinea Accidental incomes Shares drawn from the Zollver- ein's deposit Marks. 391, 426. 89 210. DO 256, 080. 74 208. 00 902, 936. 77 766, 566. 69 183,051.90 38, 123. 08 93, 980. 93 41, 046. 23 7, 744. 40 21,274.50 669, 972. 47 3, 167. 25 6, 232. 30 1, 292. 00 157, 234. 00 706, 324. 05 34, 908. 70 581, 9U6. 15 123, 246. 10 15, 600. 15 10, 642. 64 11, 564. 30 3, 391. 42 1, 888. 30 934. 09 123,101.89 24, 783, 18 19,500.00 Marks. 4, 249. £6 216. 25 Total. 38, 300; 009. 06 Marks. 391, 426. 89 210. 00 260, 330. 60 208. 00 902, 935. 77 766, 666, 59 183, 051. 90 38, 123. 08 93, 980. 93 41, 262. 48 7, 744. 40 21, 274. 50 669, 972. 47 3,167.25 6, 232. 30 1, 292. 00 406, 324. 00 600, .24. 05 34, 908. W 581,906.16 123, 245. 10 166,001.15 10. 542. 64 Marks. 422, 100 150 266, 400 200 872, 900 843, 500 152, 100 41, 900 91, 500 33, 000 6,900 30,000 701, 960 1,650 10, 243 1,292 112, 000 660, 945 33, 224 588, 400 178, 008 169, 400 8,660 11,. 564. 30 13,600 3, 391, 42 3, 900 1, 888. 30 2, 300 934. 09 1, 100 123, 101. 89 24, 783. 18 19, 500. 00 167, 385. 07 38,344,838.01 38,344,838. 01 5,277,104 90, 000 21, 000 37,634,049 Marks. 60.00 8.00 30, 036. 77 30, 951. 90 2, 480, 93 8, 262. 48 844.40 1,517.25 45, 234. 55 45, 379. 06 1, 684. 70 6, 245. 10 "i,"882.'64 33, 101. 89 783. 18 19, 600. 00 Marks. 30, 673. 11 5,069.4( 77,933.41 3, 776.'9S 8,725.6C 31, 987. 63 4, OIC 70 6,493.8! 2,035.7(1 508.68 411.70 165. »1 1,041,214. 08 330,425.07 EXPENDITTJEES. Disbursements. Expendi- tures, 1885- '86. Estimate of arrears. Total ac- count includ- ing estimate of arrears. Budget and supplement- ary grants. Sur- plus ex- pense. Less ex- pense. Senate and Mirgerscha/t. Senate : Salary of senators, secreta- Marks. 444, 347. 83 96, 380. 02 15,525.87 19,460.24 30, 730. 01 4,581.25 Marks. Marks. 447, 347. 83 96, 380. 03 15, 525. 87 19, 450. 24 30, 739. 01 4, 581. 25 Marks. 465, 834. 78 97, 600. 00 20, 100. 00 19, 613. 00 30, 747. 95 5, 000. 00 Marks. Marks. ■ 21,486.95 Protocol and chancery 1,219.98 Archive 4,584.13 Attendants 462.76 Burgerschaft : Expenses for same 893.00 Central commission for election 418.75 611, 024. 22 639, 205. 72 GERMANY. 497 state-household account for the year ending December 31, 1885 — Continued. ESPENDITUEES— Continued. Disbursements. Expendi- tures, 1885- Estimate of arrears. Total ac- count includ- ing estimate 01 arrears. Budget and supplement- ary grants. Sur- plus ex- pense. Less ex- pense. Administrations. I. — FIHAKCE8. Grovernment debt A-dmiuistration of domains . .. Lombard Lighting of streets, etc General administration Taxaud duty. bureau Department for indirect taxes II. — COMMERCE AND TRADE. Department for commission and shipping Board of trade Mint Chamber of commerce Trade court Board of marine III. -BUILDING. Department for engineering. . . Department for river and har- bor construction Department of public "water works IV.— MILITAET. Military commission Commission of reinforcement. v.— PUBLIC mSTKUCTIOfl— - SCHOOL BOARD. School board Section for scientific instru ction State schools Public schools Country schools Trade schools Commission for museum VI.— COURTS OF LAW. Administration of courts... Hanseatic court County court Official court of Hamburg . - . Official court of Eitzebiittel Official court of Borgedorf . . Attorney-general Executors Mortgage bureau Inheritance bureau VII.— POLICE, ETC. Police administration Building administration Statistical bureau Emigration commission Marks. 5,181,481.43 700, 886. 46 79, 749. 85 6.52, 182. 02 208, 692. 65 268,687.44 665, 293. 81 611, 672. 43 50, 000. 00 62, 989. 24 12, 433. 85 16, 653, 29 22, 316. 52 3,206,037.25 1,488,195.17 768, 787. 87 Marks. Marks. 6,181,481.43 700, 948. 46 70, 749. 85 652, 182. 02 208, 692. 65 268, 687. 44 665, 293. 81 Marks. 1,618,600.00 765, 800. 00 77, 200. 00 678, 500. 00 213: 150. 00 287, 463. 00 586, 232. 51 Marks. 8,648,035. 30 9,216,835.51 611,672.43 60, 000. 00 62, 989. 24 12, 433. 85 16, 653. 20 22, 316. 52 670, 662. 10 50, 000. 00 64, 600. 00 15, 300. 00 18, 600. 00 28, 500. 00 776, 065. 33 847, 462. 10 69,876.68 21,644.70 156. 00 77, 762. 60 239, 792. 90 689, 575. 44 2,385,131.72 123, 893. 81 125, 393. 37 20, 663. 87 152, 111, 651, 474, 20, 22, 131, 148, 108, 036. 53 910. 38 437. 27 092. 38 337. 65 036. 41 992. 37 071.08 977. 38 403. 58 2,379,076.13 89, 1C6. 31 93, 558. 75 16, 380. 67 194. 94 2, 850. 00 25,923.40 3,265,912. 93 1,606,839. 87 768, 943. 87 6,541,696.67 43, 674. 80 43, 674. 80 77, 763. 60 239, 987. 84 592, 426. 44 2,386,131.73 149,817.21 125, 393. 87 20, 663. 87 3,591,181.65 162, 111, 651, 474, 20, 32, 131, 148, 108, «. 071. 977. 403. 2,379,076. 12 89, 166. 31 93, 568. 75 16, 380. 67 3,414,982.64 1,687,267.46 873, 396. 00 6,975,636.10 500. 00 43, 780. 00 44, 280. 00 84, 170. 00 243, 620. 00 606, 753. 33 2,504,170.00 167, 483. 96 129, 360. 00 21, 510. 00 3,746,057.29 162, 046. 45 136, 503. 60 558, 696. 09 473, 384. 01 30, 700. 00 33, 200. 00 136, 286. 26 160, 092. 00 110, 907. 33 42, 610. 00 1,820,323.13 2,438,406. 10 93, 797. 30 94; 098. 75 18, 512. 00 Marks. 437. 018. 57 64, 851. 94 6, 450. 15 26, 317. 98 4, 457. 01 18, 765, 66 20, 938. 70 68, 989. 67 1, 510. 76 28, 661. 15 1, 846. 71 6, 183. 48 149, 069. 71 180, 417. 59 104, 462. 13 500. 00 106. 20 6,407.80 3, 632. 16 13, 327. 89 119, 038. 28 7, 666. 75 3, 956. 63 846. 13 10, 009. 92 32, 692. 12 7, 157. 82 '"'363.' 25 1, 163. 59 3, 393. 88 12. 020. 92 1, 929. 96 1,206.42 49, 329. 98 . 3, 630. 89 640. 00 2, 131. 33 498 REPORTS ON TAXATION. Hamburg's state-household account for the year ending Deoember 31, 1885— Continued EXPENDMUEES-Contmued. Disbursements. Expendi- tures, 1886- Estimate of arrears. count ID elud- ing estimate of arrears. Budget and aupplement- ary grants. Sur- plus ex- pense. VII. — rOLiCE, ETC. — continued. Frison er cent. Every time the insurance is renewed a new tax must be paid. Tax on government concessions. — Naturalization ijapets, 200 lire. Ee- nouncing Italian citizenship, one-half the annual tax paid by appli- cant, (xoverument permission to accept employment or a pension from a foreign Government, the tax as above. Declaration to have a domicile fixed in the Kingdom, 20 lire. Iloyal decree of authorization to change surname, 20 lire ; same author- ization to add the same, 200 lire ; transcription in the civil registers of titles of nobility, from 2,000 lire up. For civic coat of arms, 50 lire ; for private coat of arms, 700 lire; per-, mission to wear foreign decoration, 50 lire. Dispensation from the bans of matrimony, 10 lire. Authorization of anonymous societies, from 25 to 300 lire, according to the amount of capital. Authorization for the establishment of a commercial exchange, 500 lire; permission given the chamber of commerce to sell merchandise at auction, 100 lire. Certificate that a certain work is of public utility, from 10 to 200 lire. Permission for loans to provinces on the bank of deposits and loans, ■jV per cent, j inscription in the list of money brokers on the amount of the bond given, 1 per cent. Permission to establish mills or other factories on public waters, 20 lire. Decree permitting the navigation on lakes, rivers, and canals, 100 lire. License to transport timber floating on water of rivers, etc., from 20 to 50 lire ; authorization for the occupation of water fronts, according to length of time of occupation, from 3 to 50 lire. License for excavations, 10 lire. Authorization for exercising liberal professions, 50 lire. License for opening hotels, restaurants, or other establishments of the kind, 5 per cent, on the first year's rent; renewal of licenses, one- tenth of the amount paid for the license; temporary license, Hire. For advertising rooms to let, 5 lire per year. ITALY. 537 Permit to establish agencies and loan offices, 20 lire. Theater permits, from 5 to 100 lire ; other licenses, 2 lire. Decree of approval of land-keepers, for each, 10 lire. Permit for the exhumation of dead bodies, from 100 to 300 lire. Passports, 2 to 10 lire ; renewals, 3 to 5 lire. Receipts for titles or certificate of income, 1 lire. Stipulations of acts in public form, from 3 to 60 lire; for searches in the archives, frqm 1 to 2 lire. Concession of exequatur in ecclesiastical matters, from 10 to 20 lire. License to carry arms, 5 lire ; shooting and hunting licenses, from 15 to 50 lire 5 special license for the introduction in the state, manufacture, or sale of weapons, 200 lire; renewal of license, 20 lii'e. Taxes on the proceeds of railway traffic. — For quick trafflc, at 13 per cent. ; for slow traflic, at 2 per cent. Taxes on articles of consumption. — On spirits, 150 lire for each neat hectoliter (of 26i gallons) measured by the official alcoholmeter at the temperature ot 15.88. On beer, 6 centimes per degree per hectoliter, with the maximum limit of 16 d .'grees and a minimum of 10. Extra tax for entry, 9.60 lire. For aerated waters, 3 lire the hectoliter. Gunpowder, 50 centimes the kilo; for the manufacture it varies accord- ing to the capacity of it. On chicory, 60 lire per quiutale (100 kilos). On home-grown sugar : First quality, 49.65 lire per quintale; second quality, 43.20 lire. On cotton-seed oil, 14 lire per quintal. The government tax, which bears on the whole of Italy equally, is on wine, vinegar, brandy, alcoholic liquors, meat, flour, rice, oils, beer, suet, and lard according to a tariff variable from day to day according to that of the municipalities. The latter for the better collection of this tax are divided into four classes, and the tax varies according to the class tu which the community or municipality belongs. Items. Beverages. Wine, vinegar: In barrels per hectoliter. In bottles per bottle. Before fermentation per hectoliter. . Small wine, half wine, half vinegar, per hectoliter.* Alcohol and liquors : Rectified to 59° per hectoliter. . Eectified to more than 59° do In bottles...-. each.. Grapes in quantities of more than 5 kilos per 100 kilos. . Meats and provisions. Oxen per head.. Cows and bulls do Calves : Under one year , do — Over one year do — Hogs do — Pigs do — Lambs, kids, sheep, and goats do Fresh meat per 100 kilos.. Salt meat and lard do — Wbeat flour, bread, and paste do Flour, bread, and paste of every other kind do Rice do — Butter, vegetable or animal oil, except for medicine.. do Mineral oil and tallow do — Sagar do — Classes. First. Second. Third. Fourth. Lire. 7.00 .15 5.50 24.00 40.00 .60 3.50 40.00 25.00 12.00 22.00 16.00 5.00 .50 12.50 25.00 2.00 1.40 2.00 8.00 4.00 10.00 Lire. 5.00 .10 4.00 16.00 30.00 .50 2.50 30.00 20.00 10.00 16.00 12.00 4.00 .40 10.00 20.00 1.80 1.20 1.80 7.00 3.50 8.00 Lire. 4.00 .05 3.00 12.00 20.00 .40 2.00 25.00 17.00 8.00 14.00 10,00 S. 00 .30 8.00 17.00 Lire. 3.50 .05 2.50 9.00 16.00 .30 1.50 • One-halt the tax on wine. 538 REPORTS ON TAXATION. Tobacco. — The matinfacture of all kinds of toljacco and cigars is carried on in the interest of the Government. The cultivation requires a special permit, and the produce must be either sold to the state or exported;; I am informed that the estimated annual income is about 126,300,000; lire. II. — PEOVINOIAL TAXES. In the province of Naples this tax amounts to 6-1^ per cent, on three- fourths of the income of the city property and 9 -j^ott per cent, on three- fourths of the income of country property. The aggregate ainount of these during the year 1886 was 3,73U,424.79 lire. In some instances provinces possess lands, buildings, scrip of Government funds, railway shares, etc., and income or proceeds of all such properties are entered on the income side of the account, and they amounted for this province during the year 1886 to 376,145.20 lire. The expenses to be met by the province out of the above-stated two sources of income are as foliows: First. Necessary expenditures. (1) Ordinary: Administration, sani- tary affairs, instruction, public security, charities, public works, agricult- ure, various expenses, amounting to 1,908,543.43 lire. (2) Extraordi- ' nary: Extinction of loans, administration, public instruction, charities, sanitary affairs, public security, public works, agriculture, and various, 1,449,597.65 lire. Second. Optional expenditures. (1) Ordinary: Annuities, outgoiug, administration, public instruction, charities, sanitary affairs, public se- curities, public works, agriculture, and various, 276,934.40 lire. (2) Ex- traordinary: Expenses and changes of real estate, administration, pub- lic instruction, charities, sanitary affairs, public security, public works, agriculture, and various expenses, amounting to 174,915.19 Ure. III. — MUNICIPAL TAXES. The communes on their account may add an extra duty on all articles already subjected to a government tax, but not more than 3 per cent. on the same. They may also impose on their own account taxes on other provisions and beverages ; on forage, fuel, building materials, fur- niture, soap, and other articles of local consumption, and this up to 10 per cent, of the actual value. This can be carried out by royal decree or by decision of the chamber of commerce and council of state, witli royal decree. Everything without exception is subject to at least one direct or in- direct municipal tax. It would far exceed the scope of* this report to incorporate a full tariff of all the different articles, with their respective rates of taxation ; but I will mention a. few to illustrate the system. The streets of the city of Naples are divided in six classes for the taxation of the space occupied by merchants, and they are obliged to pay an annual tax for each and every square metre they occupy: Class of locality. Area. Siffiis and show- cases. Lire. 18 14 10 Awniuss- Class of locality. Area. Sijjns and show- cases. Airaiags. First Lire. 20 IS 13 Lire. 13 11 9 Fourth Lire. 12 9 6 Lire. 7 5 3 Lire. 7 Fifth . 6 Third Sixth 3 Tax on animals per annum is, for every private horse or mule, 36 lire ; for every private ox or donkey, 3 lire ; for every public horse or mule, 6 lire ; for every ox or donkey for public hire 3 lire. This tax is paid in six rates. ITALY. 539 Public conveyances are divided in tliree categories, A, B, and C. Category A : Lire Kirst class omnibusses 48 Second class carriages with four seats ;!6 Third class carriages witli two seats 18 Category B : First class omnibuses , 36 Second class carriages with four seats 24 Third class carriages with two seats 12 Category C : First class carriages with four seats 24 Second class wagons 12 Private carriages, category A, 36 lire, categoi'V B, 18 lire. On hotels, restaurants, inns, coifee-houses, and other establishments of the kind, there is a tax of 5 per cent, on the house rent, payable by the tenant. Licenses must be renewed every year. The maximum of the license tax is 300 lire per annum. The tax on the valore locativa or house rent is 2 per cent, on the rent actually paid by the tenant, and payable by him. When the municipal tax has been paid on articles entering the city, and they are again exported, the duty may be restored if a declaration and special agreement has been made at the time of importation. The mode of payment is according to whether the city is closed or open. In the former case the payment is made at the barrier or gate ; in the second by the retail salesman. Since these duties are partly of the state and partly of the munici- pality, to avoid a double set of officers the municipality levies all the taxes and pays to the state a regular sum agreed upon ; or else the state collects all taxes of both kinds and allows the municipality a fixed por- tion. This last mode is adopted in the municipality of Najiles, and un- der the arrangement between the state and the city of Naples, the for- mer collects all the taxes and pays to the municipality annually the net amount of 10,000,000 lire as her share, and as will appear in the state- ment of the receipts and disbursements of the city of Naples for the year 1886, hereto annexed. Edwaed Camphaxjsen, Consulate of the United States, Consul. Naples, May 28, 1887. Table showing receipts and disbursements of the city of Naples, for the year 1886. EECEIPTS. Ordinary Entries. INCOMING ACCOUNT. j_^Pg_ Balance collected for the season 1881— 1884 2,971,536.60 Eent of rural properties, houses, and sites 187, 000. 00 Kent of springs of sulphur andiron water 21,000. 00 Proceeds of communal mills 20,000.00 Proceeds of shambles at Poggioreale 200,000.00 Proceeds of the new markets 55,000.00 Proceeds of perpetual annuities, statutories, allowances, and other grants 26,475.74 Eevenue entered in tlie great book of public debt , 56,540.00 Revenue arising from the property of the savings bank 10, 460. 00 Eevenue arising from the sale of houses and land ^, 831. 25 Revenue arising from the theatres of San Carlo and Mercadauto 10, 000. 00 3,5fl,843.59 540 EEPOETS ON TAXATION. Miscellaneous Proceeds. Derived from the grant of land for burying grounds, from the hire of funeral cars, etc., viz: .Sale of land 85,000.00 Cemetery rights 65,000.00 150, 000. Ot Deducted from the 2^ per cent, of the pay of stipendiaries of the com- mune for contribution to the pension fund .* 50,000.00 Re-imbnrsenient by the provinces of a part of the annual expenses for the maintenance of certain roads 50,000.00 Further re-imbursement liy the same on the maintenance of the first division of the road to Pozzuoli 887.27 Saflie to Capodichino *. 10,800.00 Same to Poggioreale 10,000.00 Recovery of law suits 10,000.00 Direction of the public worship fund, being part of the assignment of sums which revert to the commune, as belonging to elementary in- struction 20,000.00 301, 687. ar Portion of the excise duties on articles of consumption due to the com- , mune on the whole sum raised by the Government according to the act of May 14, 1H81 10,000,000.01! Tax on public vehicles and tram-ways 65,000.00 Tax on private vehicles 91,000.00 Tax on carriages and riding horses 114,000.00 Tax on horses for hire and industrial purposes 35, 000. 00 Scholastic taxes 7,500.00 Hire of scats in the public iiarks 5,500.00 Licenses for signs, shop windows and external awnings 121,100.00 House tenants tax 420,000.00 Grants of sea beach for tbe placing of baths 40,000.00 Grants for huts, etc., on public roads 975.00 Probable amount due city on income tax 130,000,00 Licenses for inns, caf^s, etc 27,000.00 Dues on civic acts and functions 19,000.00 Miscellaneous dues 8,000.00 Proceeds of the monopoly of snow and ice 200, 000. 00 Same from tram- way company 35, 827. 70 Same from steam tram-way company 2,262.36 Proceeds of the portion due to the deposits and loan bank for the an- nuity of the consolidated loan of 22,117,763.60 lire, according to act of May 14, 1881 1,089,991.92 Same for the loan of 7,000,000 lire 344,968.86 Same for the loan of 3,000,000 lire 147,843.84 Same for the loan of 5,000,000 lire 246,406.40 S,ime for the loan of 2,500,000 lire ■ 123,203.16 Same for the loan of 2,500,000 lire 123,203.16 Same for scholastic loan of 1,000,000 lire 44,280.96 Same to the Bank of Naples for the annuity on the consolidated loan ofS),313,258.79 1ire 442,525.02 Sum required to make up the balance 587,258.76 14,521,647.14 Total ordin.ary receipts 18,385,378,00 Extraordinary Entries. Government subsidy for increase of public instruction : For technical schools 22, 000. 00 For the tax of technical licenses 7.50.00 Founding of Alessandro Volta industrial school 15, 000. 00 Annual .assignment for said schools 25,000.00 Elementary instruction 30,000.00 . 92,750.00 From the allowances of pupils and other proceeds of the municipal col- leges ...: 380,155.(» ITALY. 541 Lire. From special elementary schools 24,000.00 From lines for the breach of municipal regulations 24,000. 00 Profit remainder on interest aud extinction of the scholastic loan of 500, 000 lire 22,190.45 Ee-imbursements of advances to various pensioners 3, 821. 68 Miscellaneous receipts 20,000.00 Total extraordinary receipts 566,918.13 Transfer Account. Additional centimes on the treasury tax and the provincial and com- munal extra tax on lands and buildings for commission to the col- lectors 105, OOo. 00 Same on income tax. 42,000.00 Same on communal taxes ,..5 6, 500. 00 Retained from the pay, pensions, and assignments of the agents and employ^ of the commune as vrell as on other annuities paid to holders of warrants for the income tax 55, 000. 00 Same on circulation and negotiation of vfarrants on the communal loans 95,000.00 Same for expenses of quotation in Paris of said loans 64, 000. 00 Same of 12 per cent, on the cost of works for pay to engineers 120, 000. 00 The contribution of the commune towards the expenses of rent aud of the purchase aud preservation of the furniture of law courts 6,000.00 Eestitution by the minister of war of expenses of military lodging and transport 700. 00 Same by the minister of the for the expenses of carriage of paupers, prisoners, aud of corpora dicti 20, 000. 00 Same for the cost of works executed at the expense of private persons for reasons of public health aud safety 20, 000. 00 lustallment due from the communes interested in the maintenance of three first lines of the Astronis road 6, 420. 79 Government subsidy for the school for bliud 3, 500. 00 From the Serino Water Company for the renumeration to municipal engineers charged with the overlooking of the work 16,000. 00 Kept back on the pay municipal guards for wardrobe 61,200. 00 Kept back on the pay of the sedentary guards 7, 800. 00 Kept back on the pay of the public for same 7, 360. 00 Proportion of the price of municipal lands and houses sold 40, 000. 00 Total transfer account 1,376,480.79 Special Accounts. Eeceipts connected with the clearing up of the special account of ex- penses and extra operations according to the act of May 14, 1881 ... 6, 872, 004. 42 Loan from the Bank of Naples to regulate the articles of the balance of 1884 converted to sanitary expenses for providing for other pay- ments caused by the cholera, for pushing forward immediately nec- essary works for public health, and expenses for further sanitary provisions > Total receipts 27,200,781.34 DISBURSEMENTS. Ordinary Expenses. Sams remaining to be paid for the services from 1881 to 1884 2, 391, 258. 06 Interest at 5 per cent, of the consolidated loan guarantied by the Gov- ernment by act of May 14, 1881 4,337,902.50 Same of 3^ per cent, on the loan from deposit and Loan Bank 708,433.69 Same of 3| per cent, on loan of the same bank, 7,000,000 lires 224,210.46 Same of 3i per cent, on loan of 3.000,000 lires 99,596.11 Same of 34 per cent, on loan of 5,000,000 lires 168,734.78 542 REPORTS ON TAXATION. Lire. Same of 3J per cent, on loan of 2,500,000 lires 85,694.58 Interest, at 5 per cent, for the loan of 2,500,000 lires for the completion of 20,000,000 lires , 86,981.05 Interest at 2 per cent, on the scholastic loan 18,799.24 Interest at 2 per cent, on the consolidated loan of 9,313,258.79 lires from the Bank of Naples 180,657.51 Interest at 3 per cent, on the current account of the bank by article 17 of the instructions of the treasury service 30,000.00 Same for the second half year of 1888 on the revenues of the public Italian debt to be issued by the Government according to the act of January 15, 1855 103,087.50 Same of the capital for which the commune is responsible for the re- demption of markets and shambles 192, 911. 50 Same of the capitalized value of the place called conservatorio del comiglio, now converted into a scholastic edifice 1,200.00 Statutory allowances, perpetual annuities and other similar outgoings. 78,a86.81 Statutory allowances to ex-monasteries 4,637.65 Product of the capital of 17,000 lires assigned to the orphan asylum of Bancaccio 850.00 Farm tax on the lands and buildings belonging to the commune 46,000,00 Additional provincial tax on the same 15, 500, 00 Additional communal tax on same 2,500,00 Income tax 11,000,00 Annual local repairs of civic property 12,000,00 Fire-insurance premiums on certain buildings belonging to the com- mune... - 2,282.68 Endowment of the second royal educational institute, Maria Pia 17,000.00 Total 8,819,514.12 EXPENSES OF ADMINISTKATION — PAY, PENSIONS, ASSIGNMENTS AND PROVISIONS. Salaries of administrative employes in the communal offices 656, 040. 00 Salaries of emyloy 6s in the customs offices 12, 905. 00 Salaries of employes for public lighting 38,100.00 Salaries of employes at Poggioreale 14,245.32 S.alaries of employes of the communal mills 30, 35:!. 00 Pay of the inferior servants in the offices of the commune i79,221,60 Expenses of collecting taxes 6, 000, 00 Annual expenses and pensions of retired employfe, etc 280,000.00 Annual expenses of extra engineers 1,200,00 Annual expenses to those decorated with military medals for bravery. 15,300,00 RENT, FUENITURE, REPAIRS, AND OTHER EXPENSES. Rent of offices and archives of the municipality 4,182.00 Maintenance of the same and of the palace of Giacomo 20,000.00 Renewal and repairs of furniture, utensils, etc M, 000. 00 Expenses of registers, all kinds of printed forms for the central offices and the sections and of printing in general 60,000.00 Expenses for stationery 15,959.64 Printed forms of the movement of the population 2". 00 Stamps for the registry of decrees and other acts 12,000.00 Postal expenses 1,500.00 Expenses of the official collection of laws, etc 52. 00 Clothing of the porters, messengers, etc 10, 000. 00 House-rent to the keeper of Beifiori market 288.00 Rent of telegraph offices 4,346.00 Telephone service 3,000.00 ' 1,278,711.56 Local police and sanitary arrangements, including the pay of official servants and their outfit, cleaning, watering, and lighting the streets, maintaining public closets, etc., and the cleansing of drains. The maintenance of the Cologne hospital, city and village doctors (36 in number), the public analyst, veterinarians, mid wives, vaccination, and the maintenance of burial grounds, and the officers, clergy, and ,„„ ,. expenses of funerals 2,292,689.40 ITALY. 543 Lire. Justice and public safety, including the share of the municipality in the charge of prisoners and prisons ; pay of police (17 officers of a force of about 600), rout and expenses of barracks, reut, furniture, and re- pairs of law courts and transport of insane persons to asylum, etc.. 39:3, 711. 13 Public works: Making, maintenance and cleansing of fountains, wells, aqueducts, etc. ; pay of men employed in water-works, macadamizing roads and plantations, paving and improving the streets, breakwaters, light-houses, etc., and public monuments 568, 655. 99 Public instructions: Elementary schools, service, and expenses 928, 320. 00 Public worship : Maintenance thereof and of sacred buildings and com- pensation for deprivation of private burials since the establishment of cemeteries, and allowance to the chapel of San Genuaio 131, 458. 32 Quota of the municipality for foundlings and for the cholera orphanage of 18.36 42,017.80 Lodging of soldiers at times of ohangiug garrison or levy of troops, elections, income-tax commission, law expenses, contracts, national festivals, discount on loan annuities, regulation of docks and sub- urban-telegraph service 180,080 00 Total ordinary expenses 14,647,658.32 Eate of extinction of various public loans and investments 1,213,092.76 ADMINISTRATIVE EXPENSES. Extra employes and extra pay allowance to regular employes, altera- tion and furniture of offices and archives, care of new markets, and' keeping of horses and other animals ■ 81,283. 34 Police and sanitary: Extra pay to communal or municipal guards, special commission of health, gas lightning, etc 215, 096. 20 Public security and justice. Assize court, furniture, and pay of police officers 14,801.70 Public works: Completion of, cleaning and repairing canals, repairing macadamized roads and continuation of Via Tasso, of work at the har- bor, etc., installment of subsidy for the cathedral fagade, enlarge- ment of cemetery, and cholera burying-ground, railways, and public monuments 246, 000. 00 Public instruction, alteration, and installment of purchase money of school buildings 11, 880. 44 Worship, nil. Charity, nil. Allowance for retired excise officers and unforeseen expenses Ii7, 137. 74 Transfer Account. Additional centimes on the various taxes for commission to the collect- ors; withheld by the central Government on various stipends and annuities; share of furniture of courts of justice ; compensation for lodging and transport of troops, as received from the minister of war; of paupers, prisoners, etc., as received from the minister of the in- terior ; quota for the maintenance of subsidy to the blind school, and allowance to engineers to overlook the Seriua water works ; wardrobe of police and musicians, and purchase of stock in the Italian public debt 1,376,480.79 Optional Expenses. On civic property, nil. Administrative expenses. Allowance to syndic, to vice syndic, and others for expenses, cab hire, etc '23, 070. 00 Police and sanitary. Alteration in gas lamps, etc., and laying down gas in the villages 100,000.00 Public security. Fire brigade 231,918.00 Public works. Public gardens, reconstruction of roads and laying on water at San Carlo 211,500.00 Public instruction. Subsidies to various asylums and educational in- stitutes, evening schools, blind and deaf and dumb schools, technical and industrial schools, allowance for books and paper to poor stu- dents, various councils and experimental institutions . . , , , , . 820, 910. 70 Public worship, nil. 544 REPORTS ON TAXATION. Lire. Shelter for the poor and various charitable institntious and objects . . . 602, 453. 00 To the poor-house. Payment of 10 per cent, withheld on the salaries of employtSs, for public music, hospitals, etc., at San Carlo 368,002,92 Special Account. Cleariog up and settlement of the same, and balance of 1884 converted to sauitary purposes and other arrangements and extraordinary ex- penses owing to the cholera outbreak 0,872,004.42 Total disbursements 27,206,781.34 RECAPITULATION. RECEIPTS. Lire. Ordinary receipts 18,38.5,378.00 Extraordinary receipts 566,918.13 Transfer account 1,376,480.79 ' Special account 6,872,004.42 Total receipts 27,200,781.34 DISBUBSEMBNTS. Ordinary necessary expenses -• 14,647,658.32 Extraordinary necessary expenses 1, 937, 783. 19 Transfer account 1,376,480.79 Optional expenses ;. 2, 366, 854. ()2 Special account 6,872,004.42 Total disbursements 27,200,781.34 liEGHORN. EEPORT OF CONSVL SAMTOXI. The population of the city of Leghorn on January, 1887, was ofiScially estimated as 101,0-14. The debt on the city amounted to between fifteeu and sixteen millions of francs, equal to some 150 francs ($30) per capita. This debt is issued by the commune, with the authorization of the Gov- ernment, in the form of coupon bonds. The greater part carries from 5 to 6 per cent, interest, but such money as is required for public works is furnished by the Government at from 3 to 3J per cent. The commune of Leghorn and the commune of Elba form the province of Leghorn, and it is the smallest province in the Kingdom of Italy. The estimates of the exjienses of the city or commuue of Leghorn for the year 1887 amount to some 6,000,000 of fraucs or about $800,000. No reference is made in these estimates to the expenses of collecting the castom-house dues, these being entirely a Government affair, and the expenses accruing for their collection being paid by the Italian Gov- ei'nmeut direct. As may be seen by reference to the appended estimates, the largest part of the income of the city is derived from the dazio consumo, or consumption tax. This is a tax imposed on all articles entering the city and intended for consumption therein, such as food, clothing, etc., and the amount of this tax is regulated by a special tariff, which varies in the different cities of the Kingdom. lu the estimates for 1887 the receipts from this tax are estimated at ITALY. 545 ,343,000, francs, and the expenses of collecting it at 536,376, resulting in net income from it of nearly two millions of francs. The tax on real estate, which is the next most important source of jvenue to the city, is 16.25 per cent, on the net rental received, such net jntal heing determined by a deduction of 25 per cent, on the gross mount received. Every owner of real estate is obliged to declare to 16 receiver of taxes the name of the party or parties to whom he has snted his property, and the exact amount for which he haslet it. Should e dwell on his own property the amount is fixed by public appraisers. If the revenue from this and the other sources do not suflice to meet be expenses of the city, the municipality have the right to increase bis tax. The income is a Government tax, and is fixed by a special law. The resent rate is 13.20 per cent, on the net income, and the municipality as a right of participation of one-tenth on incomes comprised in certain ategories indicated by a law. There is no Government tax on trades or professions, but the munici- ality has imposed a tax called La Tassa sugli JEsercizi e Hirendite, rhich is levied on every one engaged in any business, i)rofession, or adustry of whatsoever kind, excepting only those engaged in sale of be Government monopolies, salt and tobacco. This tax is arranged on shifting scale, the maximum being 300 francs and the minimum 2 rancs. Those whose income, in the judgment of the public appraisers, oes not exceed 1,000 francs are exempt from this tax. The family tax, from which an income of over 200,000 francs is derived ly the city, is a tax on the various households according to their pre- umptive position. These households are divided into 20 categories by , committee of citizens, and according to their importance they pay rom 20 to 1,500 francs annually. The tax on servants and carriages is also fixed by a committee of itizens, who classify the various families according to their social posi- ion and mode of living. The butcher's tax is a tax on each beast slaughtered in the city. On attle, this tax is 1 franc each, calves 70 centimes, and pigs 00 centimes ; ambs, 10 centimes each, respectively. The scojie of the present report, and the magnitude of the Italian lustom-house tariff, prevents me from going into a detailed statement if these dues. Of the articles imported to this consular district from the United States it may be mentioned that petroleum pays a duty of 47 francs per .00 kilos, less 15 per cent, tare in barrels and 14 per cent, tare when in iases. This is equal to about 28 cents per gallon, and there is besides k consumption tax of about 4 cents per gallon. On grain there is a duty of 3 francs per 100 kilos, and on corn of 1.15 rancs per 100 kilos ; calculating the bushel as 60 pounds, this is equal about 16 cents per bushel on the former, and about 6| cents per bushel in the latter. Alcohol pays a duty of 12 francs per 100 liters, with a graduated duty >f 180 francs per 100 liters for each degree of strength centigrade. American alcohol averages 94 degrees, and the duty therefore is 12 rancs + 94 x 180 == 169.20 francs, 181.20 francs in all per 100 liters, vhich is equal to about $1.32 per gallon. Besides this there is a con- iumption tax on alcohol of 13 cents per gallon. These are the present rates, and it may be noted that they have been argely increased since my last report, 546 REPORTS ON TAXATION. There is an iuheritaace tax tbroaghout the Kiugdom of Italy which accrues to the Government. This tax is relatively small in the case of direct heirs, but becomes very heavy otherwise. The stamp tax is likewise a government tax, and so also are all the taxes and dues on shipping. All checks, drafts, and receipts re- quire stamps, and any paper nsed for official purposes is issued by the (jroveroment, and the value is determined by the purpose for which it may be destined. Victor A. Saktori, Goml IJnitei) States Consulate, LegJiorn, June 21, 1887. Estimate of expenses of the city of Leghorn for 18S7, Lire. To interest on city debt ' 915, 398. 46 income tax on go%'ernment bonds held bv the city 98,627.50 other oblisiitioiis 70, 075. i)2 salaries of einploy6s 134, 695.76 treasurer of the commune 8. 500. 00 peDHioiis 36,000.00 materials, fire, li'jhts, etc 20,270.00 cleanin^r streets, etc 35,500.00 lightinji streets, etc 163,000.00 municipal guard 96,000.00 salaries public physicians 34, 718. 60 sundry expenses for maintaining; the health of the city.. 52,98:1.00 police 67, 700. 00 salaries of employes in public works " 16,155.20 repairs of streets 67, 100.00 Lire, To se-wers 34, OOO.OO maintenance of public gardens, etc 11,000.0(1 public .schools, etc 223,850.01) cost of collecting the Dazio con- sumo 53fi, 376. 00 . maintenance of public buildings. 117,455.97 reduction of nublic debt 312,713.98' firemen .' 40, 000. 00 public works - - 361. m.U additional expenses for public in- struction 58, 260. 00 maintenance of charitable insti- tutions 425,138.00 allowance to mayor for expenses. 1, 500,00 sundry expenses 32, 647, 79 Total 4, 006, 69a, 62 JSsiimate of receipts of the city of Leghorn for 1887. By rents of properties belonginsr to city .". . . ^ 38, 000. 00 income from bonds 52, 146. 01) interest 3, OlS. 51 amount from certain tilhes 1, 286. 97 rents publicproperty for pasture. 1,440. 00 rent waterworks 10,640,00 rent gas-works 5, 467. 00 amount due by commune of Elba towards rent of court-house ... 1, 438. 99 burial taxes 17, 500. 00 sunrlry returns from lawsuits 100.00 additional returns ffora income tax 9,718.31 amount due by commune of Elba towards maintenance of court- house 119.92 amounts retained from salary of employ6s of the city for their pension .' 17,000.00 amount from consumption (octroi) tax 3, 343, 000. 00 amount from commercial taxes.- 70,000.00 amount from weighers' and meas- urers' tax ' 8,000.00 amount fiom butchers' tax 12, OOO. 00 amount from sundry rentn 16, 000. 00 amount from registry tax ,. 4,000.00 By participation in income tax as per law of April 24, 1887 50,000,00 amount from school taxes 11,000.011 amonnt from tax on dogs 7, 000, 00 amount from taxes on carriages andservants 32,000.00 amount from license taxes. o.UUO.llO amount from family tax 220,000.00 amount fi om tax on professions and retail salei* 64, 000,00 amount from real estate taxes . . . 683, 004.92 ■ amount from increase of city debt for certaiu public works . 270,000.00 amount from sale of public prop- erties 5,000,00 amount from fiiu's and penal- ties 8,000.00 sundry accruing amounts 14,815.00 amount from extra assessment retained from salaries of em- ployes of the city towards - their pension H, OO*-"" amount from government sub- sidy towards public in.stitu- „^_^ „. tions 12.OOO_0O Total ~4^6,695.63 ITALY. , 547 PALERMO. REPORT OF CCXSUL CARROLL. In view of my having made a roftort u[)oa taxation in Italy, published in Number .54, (Jonsular Keports, I have deemed it i)roper to address the proper authorities ou the subject, with a view of obtaining- authenti- cated and detailed data in the premises, and I now beg to inclose herein translations of the replies of the mayor of Palermo and intendant of fluauce, the gentlemen with whom I communicated the questions pro- pounded, which, I trust, will be touud satisfactory, and to cover the ground intended or desired by the Department. In this connection it may be proper to say that, notwithstanding the opinion advanced by the mayor and intendant of finance, taxa- tion in Italy is burdensome and complex, as the Department will readily see. There is scarcely a thing or an act in the Kingdom of Italj^ exempt from taxation, and were it not that the law, strict and stringent as it is, aftbrds loopholes by which cheating is possible, and indulged in, there would be few who would have a surplus after paying their numerous and, from an American stand-point, exorbitant taxes. Were such a system of taxation inaugurated in the United States the most pacific and quiet man in the country would, it is believed, either rebel or emigrate. But here, with the chances of eluding the law, they are used to it, and are happy in proportion to the amount out of which they may be able to defraud the Government at each succes- sive collection of the taxes. Philip Caekoll, Ccnsul. United States Consulate, Palermo, August 24 1887. [Incloaurc Ko. 1 — Translation.] Ce:^teal Office, Palermo, April -M, 1887. Consul of the United States, Palermo: In reply to your esteemed letter of lltU instant I have tbe honor to hand you here- with annexed a statement on the tributary system of our city, which contains as much as you may desire to linow on the subject. N. TURRISI, Mayor. The system of taxation in the city of Palermo is in no way special, and is carried on in a simple manner. There are only three species of imposts and taxes, viz, direct, indirect, and sundry duties and taxes. I. The Direct Taxes comprise one category only, the super tax ou lands and buildings, the income tax being excluded under this head, accordiug to the laws in force. This super impost is 33.59 centimes on every lira of principal tax, and produce.s a yearly income of 4U8,298 lire. As respects the duty on the income tax, which belongs to Government exclusively, the municipal corporation, on account of the expenses it has to incur, receives one- tenth of it, which amounts to 5-.i,000 lire. II. The Indikect Taxes. These are divided into two categories, viz: Super impost by Government on the consumption tax ; the state has taken this kind of tax to itself, which in our coun- try is a patrimony belonging exclusively to the city corporation. 138— No. 99 19 548 REPORTS ON TAXATION. Consumption taS, on articles and products not struck by Government tax, and therefore taxes belongiog exclusively to the city corporation. First. The Governnaent consumption taxes, in which the city corporation has a super impost, that is, a little more than one-third part, are on tbe following articles and in the following united measure between Government and the city corporatioli : Wine and vinegar, In casks, 10.50 lire per hectoliter; in bottles, .20 lira each. Must new unrefined wine, 8.25 lire per hectoliter. Alcohol of 59 degrees, 12 lire per hec- toliter; over that degree, 18 lire per hectoliter; alcohol in bottles, .,30 lira each. Grapes, 4 lire per 100 kilograms. Meat, 34 per cent, deducted from live weight, 12 lire per 100 kilograms. Pigs, 19 lire per head; suckling pigs, 7.50 lire each. Lambkins, kids, sheep, etc., .70 lire per head ; salted and smoked meat, 33 lire per 100 kilograms; hog's lard, 30 lire per 100 kilograms. Flour, bread, and macaroni (made from wheat), 7.50 lire per 100 kilograms; the best and finest flour, 8.85 lire per 100 kilograms ; flour, bread, and macaroni (made of any other species of grain not wheat), 4. 15 lire per 100 kilograms ; sweet bread, paste and biscuits, 8.85 lire per 100 kilograms. Rice, 3 lire per 100 kilograms. Vegetable aud animal oil, 12 lire per 100 kilograms ; mineral oil, 6 lire per 100 Itil- ograms ; tallow, 6 lire i)er 100 kilogra ms ; fruit and seeds that produce oil, 2.60 lire per 100 kilograms. Sugar, sweetmeats, and honey, 15 lire per 400 kilograms. '2d. The city corporation taxes are the following : First-class fresh fish, 20 lire per 100 kilograms; second-class, 10 lire; third-class, 5 lire ; fourth-class, 3 lire ; dried or salted fish, 3 lire per 100 kilograms ; fish under oil, 10 lire per 100 kilograms ; fish preserved in cans, 15 lire per 100 kilograms. Cheese, 11 lire per 100 kilograms. Salt, .35 lire per 100 kilograms. Wax, according to the difl:erent qualities, from 3 lire to 12 lire per 100 kilograms. Concentrated fat acids, 6 lire per 100 kilograms ; spermaceti candles, 12 lire per 100 kilograms. Brown common soap, 6 lire per 100 kilograms ; white and colored soap, 8 lire pet 103 kilograms ; perfumed tine soap, 12 lire per 100 kilograms. Coftee, 5 lire per 100 kilograms. Fire-wood, per load, accordiug to size of cart, from 30 centimes to 3 lire ; charcoal, large size, 1.50 lire per 100 kilograms; charcoal, small, 1.20 lire per 100 kilograms ; min- eral coal, .60 lire per 100 kilograms. Wheat aud barley, 2 lire; straw and hay, per load, according to size of cart, from 40 centimes to 5 lire ; bran, 1.35 lire per 100 kilograms. Lime (Pozzolana) cement, 1 lire per cart-load. Paper hanging, 15 lire per 100 kilograms. Timber, different sorts, and wooden furniture, a special tariff that runs from 20 centimes to 16 lire per 100 kilograms of timber, and from 10 lire to 30 lire per wooden furniture. Iron, steel, and articles made of same, furniture, tools, etc., a special tariff, 45. lire on iron rails for railways, 3 lire on iron furniture and on iron remanufactured. A special tariff of taxes completes the system of consumption taxes of both the Government and city corporation together, as well as those belonging to the city corporation exclusively. The tariff of taxes makes a deduction on the weight of articles put up in vessels and runs from 2 to 20 per cent. The indirect tax between Government and city corporation and that of the city corporation exclusively, amounts to 6, 150,000 lire, on which calculate the share belong- ing to the Government. The sum of 1,900,000 lire is paid to the state yearly, realized from rents. III. — The Sundry Duties and Taxes. The sundry duties and taxes are reduced to the following, aud belong to the city corporation exclusively : Scholastic taxes, 40 lire per annum for each male or female scholar frequenting the special municipal schools, which produces 9,!>00 lire. Taxes for occupjing pub- lic spaces, at the rate of 10 ceutimes per day, in the principal squares or streets, and 5 centimes per day in secondary streets or squares, from which is realized 8,000 lire. Duties on funeral cars (hearses), on the basis of a tariff which imposes 300 lire for a grand and showy car, besides 30 lire for the pall, which is used also for other cars; for a first-class car for adults 50 lire, for a second-class car 25 lire, and for a third class 15 lire, and for children and babies 30 lire, 7.50 lire, and 3 lire. These duties produce, net, 19,000 lire, it being a service given out by contract to undertakers. Burial dues, on the basis of a tariff which imposes 20 lire for a grave for a given time ; 50 lire for a grave for all time ; 100 lire for a family sepulcher, besides W lire for every corpse that may be placed in it. One humlred lire to 150 lire for every square meter of groaad, according to the place, for a noble monumeatal sepulcher, besides a daty of 50 lire to 100 lire on the burial of a corpse, according to the age of the dead person, and the importauoe of the sepulcher. Tliese dues produce 60,000 lire. At present free burial is on a large scale. Duties for copies of deeds and certiUcates extracted from the civic registers, viz : 1 lire for co]iy of a wedding certificate, and .50 lire for copy of a birth or death regis- ter. These produce 5,000 lire. Taxes on horses, mules, and donkeys, as per following tariff: 30 lire for every draught horse or mule of private property ; 5 lire for every cab-horse, and 5 lire for every donkey. These produce 7-1,142 lire. Taxes on pi'ivalc and 2>iibUo carriages. — For a private four-wheeled and four-seated carriage 50 lire; for a two-wheeled and two-seated carriage "25 lire. Carriages and cabs for hire, of whatever size or shape, '20 lire. Carriages with an escutcheon, double the tax as a private one. These taxes realize 42,306 lire. Taxes on servants. — For every female servant 8 lire, and for every male servant 4 lire ; these produce 15,2-24 lire. Taxes on persons practicing a profession, an art, an industry, or business of what- ever sort, oq the basis of a taritf that classilies the importance of the industrial or commercial practice by categories, and is imposed at a iixed duty ranging from 2 lire to 200 lire. The monopoly of frozen snow, and tax on ice, is imposed at 5 lire for every 100 kilograms, and produces 146,000 lire yearly. A few very small rents of little importance are left out, having nothing character- istic about them. Wishing to show, with these rents adverted to included, the entire rents arising from imposts, taxes, and sundry direct taxes, the following results are reached : Direct im- posts, 460,294.81 lire; indirect taxes, 6,052,299.14 lire; sundrv taxes and duties, 555,-100.16 lire; total, 7,067,694.11 lire. The expenses that are inonrred in collecting the rents may be set down in the fol- lowing proportions : Direct imposts, 2. 23J per cent. ; indirect taxes, 13'per cent. ; sundry taxes and duties, 2 per cent. This is our tributary system, which, as maybe noted, isneither complicated, heavy, nor troublesome. A few funds taxed, but productive. The direct imposts are limited to superimposts that do not go beyond the limit pointed out by law, as in other city corporations, where by Government authority it is too high, to the detriment of land-holders and people engaged in business. The indirect taxes fall on articles of consumption, on an extensive scale, without that multiplicity of taxes which produces little and causes much trouble — liquors, wines, flour, fish, cheese, oils, forage. On colonials, two only, sugar and coffee. Building materials, wood, iron, lime,and cements only ; other building materials are excluded; wooden and iron furniture and paper-hangings are included. The sundry duties and taxes are also reduced to a few, and affect peoi)le living in expensive style more than those living moderately. Our tributary system, in general, proceeds in an equable and arithmetical manner ; there are no progressive imposts, nor excessive or ponderous taxes ; no social class is spared, nor any class imposed in a special manner ; industries are not struck under that denomination, and commerce, in the transit of products, is not impeded or troubled, but only watched over ; and facilities, within the limits of the law, are granted to builders, manufacturers, merchants, and sellers. [Inclosare No. 2 — Translation. ] Cabi:net of the Intexdant of Finance, Palermo, May 12, 1887. Sir: Iq reply to your letter of the 11th ultimo with reference to Government taxa- tion in this district, I beg to inform you that the whole tributary system of the King- dom is based on the principle that the citizen contributes towards the public treasury in proportion to his income and the entirety of his property, both of which receive public protection. Therefore, as a principle, and by way of maxim, fixed tributes, such as are. paid in advance at a fixed rate, without having regard to the wealth of the citizens, for example, the poll-tax; such as are progres.-§ive, that are paid by the citizens, not in simple proportion, but in progressive proportion to their wealth, are excluded in Italy. I can therefore afiirm, with pride, that the Italian tributary system fully answers the postulatum of modern economical science ; which, considering the. impost as a part 550 KEPORTS ON TAXATION. of private wealth, taken by the state in order to enable it to fuliill its high functions requires that the impost be divided in its quantity in proportion to the -wealth o^ the contributors, aod in proportion to the advantage that its employment renders to the different social classes. It therefore follows that there does not exist, with respect to the imposts, any dift'erence of treatment amongst the various classes, each one corresponding in proportion to its wealth, and to the public protection with which the state provides them. Therefore, nothing remains to be said of the difference of impost between class and social class!, which are alluded to in the letter to which I have the honor to reply. The distinction exists instead between direct and indirect imposts, and this depends, not only ou the different practical methods of exaction; the direct being that impost which the state receives in a direct Avay, regularly, and periodically, at fixed and determined dates, and the indirect when it is received in neither of the above-men- tioned ways, but is neither continual nor of a periodical continuation. Such differ- ence tends to another criterion, which I would say is almost intrinsic to the nature of the imposts themselves, as the indirect impost always depends on a voluntary act of the contributor, vvho, therefore, may pay it when he likes, and in such propor- tion as best pleases him, without his being forced to pay at a fixed time. Of the imposts in vogue at present in Italy, those belonging to the first category are the income tax, the land tax, and tax on buildings. These are denominated direct taxes. Those belonging to the second category, or indirect taxes, are custom-house taxes, taxes on produce, consumption tax, privilege taxes, the register tax, judicial tax, stamp tax, taxes on Government grants, succession tax, mortgage tax, and taxes on ecclesiastic property. I will treat briefly on each one of these. INCOME TAX. This is an impost that strikes all rents excepting those on land, and is applied by de- ducting beforehand, from every unity of imposable rent an equal and uniform aliquot part which at the present day is fixed at 12 per cent, in princij)al, with a saperim- post of one-tenth, for which reason it comes to 13.20 per cent. By the efi'ect of such impost the rent is distinguished by gross, net, and imposaWe, and the impo.st is applied after having deducted from the net rent a variable part,, according to the nature of the rent itself. To the same ctt'ect the law distinguished the rent in four categories: (1) Per- petual rents, arising frouj mortgaged or bonded credits, or other titles, iu the pro- duction of which the hand of man does not enter, and such are taxed at their inte- gral value ; (2) rents, in the production of which both capital and the work of man concur ; such are taxed by their value being reduced to six-eighths ; (3) rentsdepend- entonlyou the workof uum are taxed on the value being reduced t:o (ive-lenths; (4) and lastly, assignments, pensions, and salaiies auswered for by the state, by the provinces, and by city corporations, which are taxed on the sum reduced to four- eighths, that is to say ou'i-half. All these lents, u> ]>e suliject to the impost now treated, must be produced in the state, whether th(!y belong to natives or foreigners; whilst those received from abroadf although used in the state, are not suliject to such impost. LAND TAX. This is a tribute laid on rent ; " ' ''■-■■ r to I a I the yai paniiuouy oi ai-aie. - , „. .^,. ...'that already established in the records of the Kingdom, according to the nature, quality, and class of lands (.estimated prop- erty and ainunnt of impost). But a.s the Italian records are not yet uniform, and there lieing at present a great inequality amongst the ditferent old records of the re- gions of Italy, the impost is not levied iiv a uniform and constant aliquot ou the land- tax rent levied throngliout tho Ivingdoni ; but instead, and until an uniform land tax be laid and put into execution (for which an analogons law has already been passed ^ in Parliament), the impost is ap|)lied liv the, so-called method of diatiwjl dirision ; that ' is to say, tho Governiiient fixing beforehand the total sum to be paid in the course of the year by the contributors, to whom an only and a uniform yearly aliquot is fixed, which is obtained by dividing the proportion as estimated in the records of the de- partment to which tho contributor belongs. IMPOST ON nOILDINGS. _ This also, like the preceding one, is an impost that falls to the land-tax rent, and IS fixed on the basis of registered value. Therefore, by the method of the propne- ITALY. 551 ior's. valuation and the means practiced by proper officials, called agents of the imposts, a ascertaining the precise value, approximately, the aforesaid method of applying ihe impost hy the so-called distinct division is not a bad method, but a normal aliquot :8 applied, which at present is fixed at 12.50 per cent, on the imposable rent, be- sides the tenths added to it, and which vary according to the number in which they ire voted by Parliament. It is to be remarked that on both the said land taxes the provinces and cwmmons may add a superimpost tax that must in no case exceed that contributed to the state. Then all three of the aforesaid imposts, iuoUiding the income tax, are exacted ao- jording to normal catalogues drawn up purposely by the impost a,;;euts, which are noted and signed by the inteudents of fluances, aud made executive by the i)refects of the provinces, are consigned to the collectors for collection, notice having been previously given to the contributors by the syndics of the communes that the cata- logues are to be seen at the collector's office. These last-mentioned persousare not Government agents, butsimple " undertakers," who, by an offered security, assume the obligation at their own risk and danger of ex- acting during five years the imposts of a determined commune or communes at a rela- tive fixed discount not exceeding 3 jier cent., when the collectorship is conferred by concurrence at public sale on a fixed day and hour, after which the collector is named and no further offers are accepted. Thus far as regards direct imposts. • I shall now treat more succinctly of the indirect imposts in vogue at present in Italy. CUSTOM-HOUSE DUTIES. This tribute, as is well known, is imposed on goods entering aud leaving, or rather going out of the state, and therefore is otherwise titled, confine, or limit tax. It is not collected either by catalogue, fixed period, or within a determined time, hut only when goods pass the confine, and it is therefore naturally an indirect tax ; and also because, being received from a merchant, It bears indirectly on the consumer, who discounts it by paying a higher price for the goods. It is also natural that by means of a special tariff, iu which all goods existing in commerce are foreseen, the tax is received according to the category under which the merchandise is found clas- sified. In the custom-house tariff of^ Italy there are twenty categories, nndereach of which assimilated goods are to be found noted. It would be a long task to speak of the custom-house documents of Italy, which are simplified now in such a manner that, without affecting the rights of the ex- chequer, they render all custom-house operations quick and easy ; nor shall I speak of the various orders respecting smuggling and contraventions of the law on this sub- ject, in Italy, of great resource to the revenue in present times, so favorable to lib- eral commerce and navigation. It is well to mention that besides custom-house duties, Italy derives a fairly good profit from health office and maiitimc dues. Taxes ox products. There exists also iu Italy the so-called taxes on products. (1) They affect the man- ufacture of alcohol, beer, and gas-waters ; (2) the manufacture aud selling of gun- powder; (3) the cultivation of tobacco in Sicily ; (4) the manufacture of sugar. CONSUMPTION TAX. This tax strikes a long series of articles of consumption, specified by law, when en- tered into closed commons (public grounds) ; and on open commons, when the article ■entered is for use or for sale by retail; and in the act of slaughtering oxen, pigs, goats, and sheep. There is a tariff existing, applied to this tax, which is received either by Govern- ment directly through its agents, or by a discount with the closed commons and vol- untary union formed by the open commons, or by contract with " undertakers." PKIVILEGBS. The Italian Government also draws a great revenue from a privilege reserved to itself in the sale of tobacco, snulf, and the sale of salt except in the islands of Sar- dinia and Sicily, where the privilege has not been extended on account of natural conditions. REGISTER TAXES. All deeds of a public and i)rivat6 nature, civil and commercial, are sulyect to reg- istry, which consists in entering the deed in a public registry, designated for that 552 REPORTS ON TAXATION. purpose, wMob constitutes their legal existence, aud manifests their import, and as regards private acts and contracts, gives them a fixed period. In accomplishing such formality, a tax is paid, called register fee, on tbe basis of an analogous tariff. Itij applied in a proportionate aud gradual manner on deeds, binding or freeing a person for Slims received or paid, or on transfer of property, use of prolit of lauded or other property, or other right transferred by act, during life, or from date of death; (2) on acts that do not specify either engagement or delivery, but a simple declara- tion or attribution of value or right without making a transfer; (3) on other civil judicial, or extra-judicial deeds tbat serve as titles or legal documents. ' For the sake of brevity, I will say that the aforementioned register tax, regarding civil and commercial acts, is styled "covenant tax;" regarding transfer, caused hy death, it takes the name of "hereditary tax," and as respects the judgment of a magistrate, it takes the name of "judiciary tax." It must be observed that the hereditary tax is always levied in proportion to the value transferred by cause of death, " deducto asre alieno ; " whilst tlie covenant and judiciary taxes are levied iu a proportionate gradual and fixed way, according to ths above stated nature of the acts it strikes. STAMP TAX. This tax is applied to all acts on writs containing transfer of things or rights, or that have otherwise to be laid before a magistrate or other Government authority. This tax differs in its character from the preceding one, which is likewise apphedto all acts, register generallj' being levied iu progressive proportion to tbe value of the thing contracted for, whilst the stamp tax is levied iu an established w.iy on the written deed that contains the contract, whatever may be the value of the thing con- tracted for, excepting in bills of exchange, which arc, always subject to a gradual tax relative to the amount for which they are drawn. The tax now spoken of is paid by using the stamped paper, which is manufactured aud sold on account of the state, and in certain cases as determined by law, by affixing stamps to any other species of paper, which stamps are also manufactured and sold for account of the state, or by the impression of a special stamp. As svrpplementary to the stamp tax the so-called circulation tax also rules in Italy. It affects bills issued by societies and other institutions of credit, to all of which it would have been a difficult matter to impress the stamp. This stamp, in addition to that of the stamp tax, is proportioned to the amount of bills and notes put into cir- culation. Then, as such titles of credit, notes, shares, and obligations issnedhythe institutions of credit become objects of negotiation afterwards, aud do not therefore remain as simple substitutes of money; they confer powers and rights which other- wise ought to have been conferred by an adopted bond and become subject to the so- styled company tax, which also prevails in Italy, which is a substitute for the i and register taxes. TAXES ox GOVERNMEXT GRANTS. For the greater protection of public order, which is the duty of the state, as permit is necessary for citizens when practicing certain rights, such as setting np places of public resort, as hotels, eating-houses, etc. Besides that, the State has the faculty of granting titles of nobility, orders of knighthood, change of surnames, and permits of burial in other places than those generally designed therefor. Now, if such concessions were made from one to the other citizen, they would with- out doubt be subject to the register tax, and therefore, in place of this tax, the so- styled government grant tax was imposed, which represents, besides, the retribution of a service that the state renders to citizens at their request, and which is well due, particularly when it is a case of favoring the wealthy class with ancestral family dis- tinctions. Therefore, there is a tariff attached to all the aforesaid concessions, andon the basis of which the corresponding tax is collected. MORTGAGE TAXES. Mortgage titles, the renewals, copy of deeds and contracts, the substitution and subentry in mortg.age, registered in favor of another person, the canceling of mort- gages, and all the formalities that are diseh arged iu the mortgage registry offices in Italy, are subject to a tax, guided by a special tariff, and this tax also represents the recompense of a public service rendered by the state to the citizens at their request. TAX ON ECCLESIASTICAL PROPERTY. This tax is in vogue in It.aly also, on church property. It strikes the rent of those public establishments which since their foundation were declared inalienable. ITALY. 553 This tax, by tlie way in whicli it is ooUeoted, on account of its intrinsic nature also, would have all the characteristics of the direct impost. However, it became adopted in Italy as a substitute to the registry and hereditary tax. In fact, all property held by private people and companies that is not of a per- petual nature, from its commencement or afterwards, or from one motive or another undergoes transfers and changes. The state receives the tax register or succession tax. Not so, though, for corporations bearing a perpetual character, and whose property is inalienable; such are not subject to the said taxes, and therefore in substitution of the same the state has prudently imposed the aforesaid special tax on ecclesiastical property. I have deemed it a duty to reply to your valued favor with these brief indications respecting the entire tributary system of the Kingdom. The imposts and taxes in Italy, as you will have been able to understand, are all on an extensive basis, and principally directed to strilie tlie rent and the impulse of the contracting engagements and business, without regard to the quality or the so- cial class of citizens "themselves. The classes possessing less are favored, not by special disposition, but by the in- trinsic nature and organization of the tributary system itself, others, which being exempt from tax on minimum parts of rents, foreseen by various laws, the less rich classes, derive a profit from it. Carpi, Tlie Iniendant. To the Consul of the United States, Palermo. MILAK. REPORT OF COySUL OROUOB. An adequate preaeutatiou of the state of taxation in Italy is a tasli sendered tliflicult by tlie multiplicity of the laws and an absence of uni- formity in the legislation. Not only do local taxes vary, but general taxation differs in different localities, and certain sections have greater burdens to bear than others. As a remarkable example of this con- dition of affairs the taxation of land in Lombardy may be instanced, which is still in accordance with a law of the precediug century, and is calculated in a currency now obsolete. DIRECT TAXES AS LEVIED IN MILAN. 1st. Land taxes are levied and collected by the general government. The consumers and provinces levy an additional tax. The tax is on the productive value or rent of the land. Lands are still taxed according to the old assessment of 1750, in a currency composed of scudi, Milan- ese lire and ottavi. The Scndo contained six Milanese lire, the lira eight ottavi. As near as I can determine the scudo was worth about 4.25 lire of the present currency. Each scudo pays to the general government 17.2041 centesimi ; prov- ince, 4.2448 centesimi; commune, 14.6066 centesimi; total, 36.1455 cen- tesimi. The expenses of collection for the commune and the general govern- ment are assumed by the commune, and amount to 66 centesimi on every 100 lire according to the commune. For the province there is an addi- tional expense of 10 centesimi for every 100 lire collected. 2d. The taxes on buildings are imposed on the taxable rent as follows : For the general government, 16.25 per cent.; province, 3.5161 per cent.; commune, 12.1617 per cent.; total, 31.9278 per cent. The taxable rent is three-fourths of tlie actual rent. 3d. Income ^^a;.— General government, 1.320 per cent. : expense of collection, .36452 per cent. ; total 1.356. 654 EEPOETS ON TAXATION. COMMUNAL OF CITY TAXATION. Tlie foUowiag taxes, wholly or in part, are the chief sources of revenue to the commuue : (1) Octroi duties (ia part) ; (2) tax on land (in part): (3) tax on buildings (in part) ; (4) income tax (in part); (5) tax on pub- lic employes, and for various concessions; (6) special city taxes: 1st, on carriages and servants ; 2d, the practice of a profession, trade, or business; 3d, on horses; 4th, on cattle; 5th, on dogs. Octroi duties. — Octroi duties are im'posed on articles entering the city gates, mainly food, beverages, fuel, and the like, and may be divided into three categories: First. On a certain number of articles the revenue from which accrues wholly to the commune. Second. On the remaining articles the revenue from which is divided between the general government and the commune in the proportion of about three to one. Third. An extra tax on the preceding category for the exclusive benefit of tlie commune. Tax on land. — As already explained, the share of the commuue is 12.2448 centesimi on every scudo levied. Tax on buildings. — As already explained, 12.1617 per cent, of the tax- able rent accrues to the commune. New buildings are exempt for two years. Income tax. — The commune is allowed a small proportion of two cate- gories, B. 0., of this tax. Tax on puhlie employes, and for various concessions. — All imblic em- ploy6s pay a certain tax on their salaries. The various concessions consist mainly in permission to occupy public space, as in the case of caf6a, in front of which are placed tables and chairs ; for awnings projecting into the street ; for projecting windows and balconies; the permission to build, and to occupy the street with building materials, and other similar privileges. Special city taxes. — First. Carriages and servants. Public vehicles are divided into classes: First. Those running between fixed points at fixed times, or otherwise, such as omnibuses, trams, and the like. Of these snch as hare places for more than eight persons pay ytearly GOhre; the others, 40 lire. And, second, other public vehicles, such as cabs, hvery carriages, and the like, which pay yearly 30 lire each. Of private carriages, the four-wheeled, with places for more than three, including driver, and all four-wheeled, drawn by two horses, pay yearly GO lire. Four wheeled carriages, drawn by one horse, with places for three or less i)ay yearly 30 lire. Two-wheeled carriages pay yearly 15 lire. All vehicles bearing crest or coat of arms pay double the above rates. For every servant, of either sex, or any age, the employer pays a yearly tax of 10 lire for male and 5 lire for female servants. (2) The practice of a profession, trade, or business. All persons practicing a profession or engaged in any trade or business of any kind are subject to this tax. According to the importance or lucrativeness of such occupation there are distinguished thirteen categories, of which the highest pays annually 300 lire, the lowest 5 lire. (3) Horses : Carriage-horses and all others for personal use, conven- ience, or as a luxury, pay a yearly tax of 40 lire each. Horses used only for business purposes, transport of merchandise, and cab-horses and the like are exempt from this tax. ITALY. 555 (4) Cattle: This tax is as follows: Oxea aud bulls, each yearly, 1 lire; mules, eacb yearly, .75 lire; asses, each yearly, .50 lire; cows aud heifers, each yearly, .50 lire ; calves, more than a year old, each yearly, .25 lire; hogs, weighiug more thau 50 kilogxains (133 pouuds), yearly, .25 lire; sheep aud goat, each, yearly, .20 lire. (5) Dogs : For each dog the owner has to pay an annual tax of 30 lire. PROCESS OP COMMUNAL TAXATION. The revenue derived from communal taxation in the city of Milan, for the year 1885, is exhibited in the following table. I. Octroi duties: Lire. First class, communal 2, 468, 912. 25 Second class, communal, total, 4,707,665.09 lire, thus divided To the Geueral Government 3, 665, 000. 00 To the commune 1,142,605.09 Third extra communal 2, 092, 670. 08 I. Land tax, communal quota 226, 473. 64 III. Buildings, communal quota 3,064,998.00 IV. Income tax, communal quota 253,087. 76 V. Tax on salary of public employes and for various concessions 489,001.06 VI. Special taxes: (1) Vehicles and servants 195,568.75 (2) Practice of trade, profession 546,675.45 (3) Horses for personal use ;S9,700. 00 (4) Cattle 7,016.95 (5) Dogs 69, 675. 00 Total communal taxes 10, 569, 444. 04 Balance-slitet of the ciii/ cf Milan for the year 1885. RECEIPTS. Francs. Income from communal property 1,097, 105. 12 Total octroi duties 9,269,247.42 Land aud buildings 3,291, 471. 15 Income tax 250, 087.76 Salary tax, etc 489, 601. 06 Special taxes 858, 636. 15 Theaters 123,091.99 Ee-imbursement for anticipated expenses „„ 443, 397. 42 Total , 15,8-25,63^.57 Surplns of receipts over expenditures 135, 995. 26 EXPENSES. ORDINARY. Expenses for management of communal property and interest on cltv debt ■■. 4,248,48:5.83 City government expenses, i. e., salaries of officials, pensions, olSce rent, etc , 1,055,757.93 Tribunal expenses, i. e., rent, furniture, etc., of courts of justice, and public security, i. e., pay of guards of public security, furniture, rent, etc., of barracks and rooms 244, 365. 32 Octroi : Proportion paid to General Government 3, 865, 000. 00 Expenses 822, 394. 8G Hygiene, i. e., vaccination, inspection of slaughter-houses, meat, etc., city laboratory, and city guards or police tor public surveillance 469, 064. 30 Street-cleaning, sprinkling, etc 271,7:53.83 Street-lighting 447, 747. 72 556 REPORTS ON TAXATION. Francs, Fire (Tepartment 138,309.56 Repairing and keeping in order streets, parks, etc 299,739.41 Public worship 4,870,67 Burial service 22,131.15 Public instruction 1,709,029.55 Chanties ., 677,547,93 Celebration of public holidays 36,589.07 Levy of soldiers 10,377.09 Miscellaneous 92, 508, 93 Theaters 380,491,51 An ticipated expenses 446, 473, 54 KXTRAORDINARY, Cholera 50,384.88 Public instructiou 4,295.90 Public works 561,128.83 Theaters 30,000.00 Miscellaneous - 101, 217. 37 Total 15,689,643.31 The debt of Milau on January 1, 1885, was 82,187,593.09 francs. EFFECTS OF TAXATION. Taxation in this city does not, as far as I have been able to ascertain, either favor greatly or press heavil.v on any particular iudustry. The opinion seems to be that, iu a general way, the high taxes operate un- favorably in all branches. Consuming a considerable portion of the jjroceeds and thus dimiuishiug the profits, they deaden commercial enterprise and retard the development of industries for which the couutry is fitted. As to the operation of the protective tariff, I have conversed with manufacturers who stated that in their particular branch they are in no way affected, as they have peculiar facilities and have no fear of competition. Tliis is the case in certain branches of the silk trade. On the other hand, industries have been called into existence for which the country is in no way adapted, and which, on account of successful foreign com- petition, are constantl.y in a critical condition. As an examjile, perhaps the cotton industry may be instanced. The lack of coal and the conse- quent deafness of the necessary fuel, which must be all imported, exer- cise a most unfavorable influence on the development of manufacturing interests and more than counterbalance the advantage of cheap labor. Manufacturers who are unable to sustain successluU.y foreign compe- tition are crying loudly for higher duties. On the other hand there is a strong sentiment against the artificial development of industries for which there exist no peculiar facilities and compensating advantages, and a current favoriug a reasonable and discriminating protection. The class most seriously affected by the present high taxation is probably the agricultural' class. They have seen heavy taxes bring about a steady increase in the price of the necessaries of life, with the single exception of their own chief product, gr^iu, in which the competition of American wheat-fields has caused a marked depreciation. ISTaturally tliey are demanding redress, which for them takes the form of additional duties on foreign grain. This, as the experience of We years has shown, to be effective must be high. But it is doubtful whether even a Government so naturally disposed by its financial posi- tion to receive with favor any proposition tending to increase its reve- THE NETHERLANDS. 657 nues could, under the present conditions, consent to impose so heavy a burden on the people at large for the benefit of a comparatively limited class ; for it seems evident that by such a measure only the land-owners would profit, and in a country so overpopulated the great bulk of the agricultural population would remain unaifected. Henry C. Crouch. Consul. United States Consulate, Milan, Italy, January S, 1888. THE NETHERLANDS. liEPORT OF CONSVL ECKSTEIN. The system of taxation in Holland, national, provincial, and munici- pal, direct and indirect, may be said to be quite diversified and com- plex, and a full description and clear explanation of it could, I think, only be expected from or given by persons who have been long con- nected with or in the service of the department of finance, in assessing taxes or in collecting the revenues. Moreover, whilst it would seem that the matter of taxation in this^ country furnishes abundant cause for the people to be concerned about, and whilst it is surely and generally recognized as one of great im- portance, yet there hav^e been, ajid there are, other political and social questions which have for years engrossed and do at this time absorb a greater share of the public attention than does taxation. The other questions referred to consist of the unsatisfactory state of the "colonies," and especially the unsettled condition of Atjeh; the revision of the constitution, and more particularly in respect of those provisions therein which have reference to the public education or the schools and to the extension of the franchise or universal suffrage. Those are the political issues which have for some years last past, and which do now, occupy the minds, tax the wisdom and patriotism, and consume the time of the Government ministers, statesmen, and leg- islators of this country; furnish topics for its press, and the material for planks in the construction of platforms at elections, and the speakers discuss them almost to the exclusion of all others in their political clubs. Thus the question of taxation, while it is far too important to be re- garded with indifference, will not, for the time being, engage as much general or jjublic attention as surely it will when once the questions above mentioned, and especially that of "the suffrage," have been settled or satisfactorily set at rest. Under the predicaments as above set forth it became necessary for me to apply to a number of i)arties here pointed out as most familiar with the subject, in order to procure the information indispensable for reporting thereon anywise in accordance with my instructions. TLis I did, but in nearly all cases with only very indifferent success. The cause of this, and it can hardly be surprising when I state it, has been, that the scope of the subject, which " prevented" the Department from "framing a series of questions," was by all or generally regarded as infinitely more difficult to " answer questions" relating thereto, re- quiring previous thought and consideration, and involving the expend- iture of a great deal of time. 558 REPORTS ON TAXATION. Howevei", 1 was at last referred to a geatlemaa who not only is looked upon as an excellent authority concerning matters of national fiaances taxation, currency, etc., but who, it was represented to me, was other- wise so circumstanced as to be likely to extend to me substantial as- sistauce. I approached him on the subject and with the result of being prom- ised available aid, without promising me, however, in what form, to what extent, or when it would be forthcoming. The gentleman to whom this refers is a certain Gideon M. Boissevain, esq., of this city. He was formerly and for many years engaged in the banking and commission business here, from which he retired a long time ago, and has since devoted the most of his time to the investigation and study of political and social economic questions, and in writing extensively for the periodical press and otherwise. A few weeks ago he was decorated by the King of Italy on account of having furnished the Government of that country with an interesting and valuable treatise regarding certain affairs appertaining to the Dutch East India colonies. On leaving Mr. Boissevain, after my first interview with him, I stil. remained under the impression that I would in the end, after all, mainly be thrown upon my own resources in preparing this report, and there- fore set to work and wrote a part of the above preliminary remarks. Several weeks after first speaking to Mr. Boissevain on the subject,! received one day a very polite invitation from him to come to his house and meet him athis library for the purpose of asking me some questions regarding the memorandum he promised me. I promptly called upon him as desired, when he placed into my hands a quantity of manuscript, some eight or nine sheets of foolscap, con- sisting of facts and figures relating to, bearing upon, and being, com- l)aratively speaking, a systematic exposition on the subject of taxation in Holland, in the province of North Holland, and in the city of Am- sterdam. I was most agreeably sur]nnsed by the action of Mr. Boissevain, as I certainly had neither any right nor reason to expect, or even to imagine, he would go into the matter so elaborately and take the trouble he did in the premises. The "papei" received, being written in the Dutch language, I imme- diately concluded to have translated, and to adopt and submit it to the department textually, and as my or "a" report upon the subject under consideration, and without any further efforts on my part to improve or enlarge upon auytliiug therein stated. I feel that by so doing I am most likely best to serve the end sought to be attained by the department in asking this report, and that to evince a proper appreciation of the service rendered by Mr. Boisse- vain in the premises required that 1 should transmit the product of his labor in its entirety, which I do by subjoining, in this place, a trans- lation of Mr. Boissevain's contribution to this report as follows : THE NETHERLANDS. 659 [Translation.] PUBLIC, PROVINCIAL, AND LOCAL TAXATION IN THE NETHER- LANDS, By Gideon Makia Boissevain, Member of the Committee of Assistance of The Netherlands Statistical Institute, etc. PUBLIC TAXATION. The budget of public revenues for the Netherlands for the flnaaciaS year 1887 ainouuts to 115,971,2:35 florhis, including the following reve- nues which are not derived from taxation : Fiorina. Eeveuue of crown lancls 2,400, 000 Proceeds of sales of crown lancls 'JGO.OOO Postal-service revenue 5, o50, OOO Telegraph service 1,092, 100 Proceeds of the Government lottery 6()1, 47,5 Shooting and fishing licenses 144, 000 Pilotage duties 1,000,000 Mining duties 3, 225 Share of Government in the proceeds of the state railways... 2,080,000 Miscellaneous revenues and casualties 4, 32'^, 675 Share of the Netherlands-India li nance dcpartnient in the expenditure for interest and redemption of consolidated and floatiug debt 2, ?52, 150 Total 19,861,625 Besides, in the revenues from taxation is included the poll-tax (per- soneel) for the total amount of 10,898,500 Horius, because this tax is col- lected by Government. As, however, a sum of 8,570,000 florins of the proceeds is paid over to the localities, this tax so far is not properly a public one. To get at the exact figures of the Government faxes, the above-men- tioned sums of 19,861,625 florins and 8,570,000 florins, 2S,4;51,C25 florins, are to be deducted from the total amount of 115,971,225 florins j the bal- anceof 87, 539, GOOflorins represents the total proceeds of public taxation. The population of the kingdom in Europe numbers abouf 4,400,000 ; public taxes, accordingly, amount to about 20 florins per head of the entire popnlation. Concerning the presumptive income of the nation there does not ex- ist reliable estimation, still less any positive knowledge. According- to a very rough estimation it has been ordinarily taken to be about 700,000,000 or 800,000,000; but apparently it is in reality much higher, aud the total amount of taxable income of the nation may fairly be es- timated at 900,000,000 at least. Accordingly, the amount of public taxation does not exceed 10 per cent, of the general income of the popu- lation. Some of the above mentioned items reqnire an explanation. Against the revenue frona the postal and telegraph services, appear- ing on the budget of revenue with 5,550,000 florins and 1,092,100 florins (6,642,100 florins), the budget of expenditure comprises the following items : Florins. Postage: head olBce and postal service - 3,979, 150 Telegraph service li 382, 370 United postal and telegraph service 742,000 Total of expenditure 6,10j^520 Leaving against the estimated revenue 6, 642, 100 Balance of revenue as in the hudget 538, 580 560 EEPOETS ON TAXATIUJN. TLe railways, constructed for account of the state, are worked by- various companies against payment to tiie state of a share in the net earnings. This share in the net earnings of the state railways appears among the revenues for 2,080,000 florins. The item, contribution by the JSTetherlands-India finance department, towards the expenditure for interest and redemption of consolidated and floating debt, amounting to 2,352,150 florins, is due to the financial accounts of the country and of Netherlands India being kept separately; but when money is to be raised for India, by way of a loan or in the shape of floating debt, such debt is contracted by the state of the Ijfetherlands. Accordingly the Dutch budget of expenditure contains for interest and redemption of public debt a sum which is being paid for account of the Indian treasury, and against which there is an item under " revenues" to the same amount, for the re-imbursement of such sums by the Indian treasury. On the Dutch budget the above-mentioned sum of 87,539,600 florins, revenue derived from taxation, is brought under different heads, as follows : A. Direct taxes: Florins. Ground-rent 11,462,100 Poll-tax (personeel)* 10,898,500 To deduct : Sums allotted to the localities t 8 570, 000 2,328,500 13,790,600 Licenses (patent) 4,262,400 £, Excises: Sugar 8,000,000 Wine 1,850,000 Spirits, inland and foreign 23,200,000 Salt 3,700,000 Soap 1,840,000 Beer and vinegar 950,000 Meat 2, BOO, 000 42,340,000 C. Indirect taxes: Stamp duty 3,150,000 Registration duty 7,500,000 Mortgage duty 900,000 Succession and transfer duties on decease 10, 453, 500 22,003,500 B. Import duties 4,912,000 JS. Stamp and duty on wroiigbt gold aud silver 231,100 Total, as above 87,539,600 This classification, taken in an economical sense, is in some measure incorrect and generally without signification. It is incorrect because, under the so-called direct taxes, no distinction is made between real and personal taxes ; because the registration duties include also the transfer duty on immovable property, which is actually nothing but an increase to the ground rent, although this increase works unevenly and therefore unjustly; because the succession and transfer duty are through their nature a personal tax, or income tax after the personal estate, levied only in case of transfer by inheritance; and, more- over, an income tax of unequal burden, inasmuch as the duties vary * Though retaining here, as elsewhere in this report, the words of the consul, the Department believes this to be a wrong translation of the term. It is not a poll-to that is intended, but a tax on personal property, nearly akin to the "taxe personelle of France. tflu the official documents this item is not deducted from the revenue, bat added to the expenditure. DS. 561 accordiDg to the property being transferred in the direct or the collat- eral line. According to their nature, the whole of the taxes is to be subdivided' as follows: I. The real taxation, called ground rent, levied on housed and landed property. — This tax is a real one, because it is adherent to the property, whoever the proprietor may be, aud whether the property is mortgaged or not. Accordingly it is not the gross income which is considered as the real produce of the property, but the net revenue ; that is, the rev- enue minus the ground rent ; and, in case of sale, the price is calculated after this net revenue. Thus the ground rent is not levied from the proprietor of the estate, but the possession of immovable property is subject to a tax on the annual produce in favor of the treasury. The registration i^uties, levied on transfer of immovable property, are of the same nature as the ground rent, with the difference that they are not raised from tbe annual produce, but from their value, and solely in case of transfer into other hands. The sum total of real taxation on housed and landed property is thus to be put up as follows: Florins. Ground rent proper 11,462,100 Transfer duty, forming part of the registration duties 4,700,000 Total , 16,162,100 II. All other taxes may be brought under two categories: (a) taxes levied on presumptive income; (b) taxes levied on expenditure; and in both these categories there are to be discerned direct and indirect taxes. (a) Taxes levied on presumptive income: A properly-called income tax does not exist in the Netherlands as a public tax, but the following are to be considered as taxes after the presumptive income : As direct taxes: The succession and transfer duties mentioned above, a personal tax after the estate, which is not levied as an annual tax on the revenue (the income), but from the capital as often as the property changes hands on decease; the license duty, a tax after the presumi)- tive income, derived from commercial or industrial pursuits. And as indirect taxes: The stamp, registration (after deduction of the transfer duty), and mortgage duties, all of them being taxations on the income derived from capital or labor; but not for as much as said income is personally enjoyed, but as often as any proceeding may be taken by any one which is subject to stamp, registration, or mortgage duties. On the budget of revenue for* 1887 the above mentioned taxes ap- pear as follows: Direct taxes after the presnmptive income : riorias. Succession and transfer duties 10, 45a, 500 License duty 4,262,400 14, 715, 900 Indirect taxes after the presumptive income: Stamp duties 3,150,000 Registration duties after deduction of transfer duties 2, 800, 000 Mortgage duty 900,000 ^ 0,850,000 Total 21,565,900 562 REPORTS ON TAXATION. The whole of these taxes may again be subdivided, as raised on in- come derived from industrial sources (commercial, agricultural, man- ufacturing industry, navigation, and retail business), such as — Fiorina, License duty 4, 262, 400 Stamp duties 3,150,000 Registration duties 2,800,000 Mortgage duty 900,000 Total 11,112,400 Asa taxation on property: Succession and transfer duties 10,453,500 The total amount of private national fortune in the Netherlands has been calculated to be about 9,000,000,000 fiiorins, n»aking, at the rate of 4 per cent., an ann ual income of 360,000,000 florins. The succession duty of 10,453,500 florins would accordingly be equal to an income tax aver- aging about 3 per cent. (b) Taxes on expenditure. — The tax called "personeel" (poll-tax) is a pure direct taxation on expenditure, though exclusively on the basis of a few particular items of household expenditures, which are undoubt- edly connected, however, with the individual tax-payer's general style of living. In fact, this tax is levied after the house rent, the number of doors aud windows, fire places, furniture, servants, and horses. Originally the "personeel" tax was a pure government tax, but on the abolition of local excises in 18()5, four-fifths of the proceeds of the tax were allotted to the localities as an indemnity for the loss suffiered by them through the. said abolition. In 1885 this arrangement waa modified in this way, that the share allotted to the localities was fixed once for all on four-fifths of the i)roceeds of the years 1882-85, all fur- ther increase to accrue to government exclusively. Proceeds of this tax for 18S7, as mentioned above : Fiorina. Carried on the budget of this year for 10,898,500 To deduct share allotted to the localities 8,570,000 Balance , 2,328,500 Indirect t.axes on expenditure are : The excises, estimated fur 1887, as mentioned above, at a figure of 42,340,000 Import duties 4,912,000 Dutv on wrought gold and silver 231,000 47,483,100' Total 49,811,600 Summing up the preceding figures and classification of government taxation, we find : Real taxes : Florins. Ground rent and transfer duties 16,162,100' Taxes assessed on income : ~ Direct ones 14,715,900 Indirect ones 6,850,000 21,565,90* Taxes assessed on expenditure ; Direct ones 2,328,1500 Indirect ones 47,483,100 : : 49,811,600 THE NETHERLANDS. 663 Mating for the latter two categories : Direct taxes: ' Florins. Florins. On income 14,7ir., 900 On expenditure 2, :!2H,,'iOO 17,044,400 Indirect taxes : On income C. ^T.l), 000 On expenditure 47, -lb:;, 100 • 54, 333, 100 Total 87,539,600 In reply to tlie question, if i^ublic taxation iu The Netherlands lays on any i^articnlar class or part of the population a heavier burden than on the population generally, it is in the first place to be borne iu mind that it is always difticult to find the right answer to such a question. On treating this subject the fact is often lost sight of that social circum- stances modify themselves according to the laws on taxation. For in- stance, in our system of taxation the excises — among them excises ou the first necessities of life — take a relatively large place. As a matter of coarse the less privileged classes of the population — in the first place the workingmen — are heavily burdened by this tax. But those who arrive to this conclusion do not take into account that wages regulate themselves everywhere after local circumstances. When prices of the first necessities of life are high, wages as a rule will be high also. Nevertheless there are many reasons why taxation by means of ex- cises on the first necessities of life is always to be disapproved of. Ac- cordingly, abolition of the excises on salt, soap, and butchers' meat is advocated by many in The Netherlands. About the sugar excise, a very intricate problem, opinions are not so unanimous. Moreover, on considering the high total of excises in The Netherlands, it is to be kept in mind that among the figures of 42,000,000 florins the excise ou spirits appears with 23,000,000 florins. Though the greater part of these 23,000,000 florins are paid by the lower classes, spirits can hardly be called a first necessity of life. With all this, the system of public taxation iu The Netherlands is far from answering to legitimate expectations. Firstly, because the direct and indirect taxes assessed on the presumptive income offer but a most incomplete and inadequate supplement to the taxes on expenditure for obtaining jointly with the latter a complete system of taxation of every individual according to his worth. It is an undeniable fact that first of all the great fortunes do not pay their proportionate share in the public taxes. In some measure this is compensated by the local taxes, of which local income taxes form very generally the greater part. But this remedy to the existing evil works in a very unequal manner, and moreover the local income taxes are themselves defective in many respects. Secondly, because some of the duties as well in category Ila as in category lib are themselves open to serious criticism. For instance, the license duty burdens in a very unequal manner the revenues from business sources ; the duty is raised after rather arbi- trary valuations, the real revenues not being taken into account at all. Still less of a system is to be found in the stamp and registration duties, as also in the mortgage duty. Properly these duties ought to be only retributions for special services performed by Government, but in the long way they have degenerated into means of tax raising. It is not surprising, accordingly, that they have little system iu them. The tax on " personeel" gives equally cause to serious criticism in vari- ous points of view. Generally speaking the middle class, the working 138— No. 90 20 564 REPORTS ON. TAXATION. class, is far too heavily burdened by it. To judge of tbe damage it causes to a certain class of tax-payers the total proceeds of the tax is to be considered, and not its proceeds as a government tax alone. And the evil is the greater, as the same tax is again one of the chief sources of income for the localities, which are allowed to raise additional per- •ceutage on it. However, against these defects in the system of public taxation or of taxation in general in The Netherlands there are some considerable advantages to point at in the history of taxation in The Netherlands during the past thirty or thirty-five years. Next to England, The Netherlands is the only country where the system of free trade has found an earnest and complete application. The tariff of import duties is a purely fiscal one ; the rates are very low, and a great many articles are absolutely free. The sugar excise alone is an indirect protection of the beet-sugar in- dustry and the sugar refineries, calculated actually at about 2,000,000 florins a year. But besides this there is in the Dutch laws on public taxation not a single remnant of protection, neither to agriculture, nor to commerce and industry. Moreover, the abolition of all local excises, as also of the govern- ment excises on most of the necessities of life, have been as many steps in the right direction of alleviating the burden laid by taxation on the working classes. It is not to be denied that the history of Dutch laws on taxation for the past thirty-five years shows a constant tendency to improve the people's food, as well to take away the impediments to free production, PROVINCIAL AND LOCAL TAXES. The Dutch taxpayer is subjected, besides the public taxes, to pro- vincial and local taxes. Provincial taxes consist chiefly of additional percentage on the ground rent and " personeel," local taxes likewise of additional percentage on ground rent and " personeel," and besides, of a head tax, which is prop- erly an income tax, or a tax on the presumptive income, or in some instances of local direct taxes on expenditure. Local customs duties have long been abolished, and, as mentioned before, the local excises have since ISG5 likewise disappeared. Only in very exceptional cases and for particular reasons some localities are allowed to raise local excises. Some localities derive a part of their income from taxes on dogs, ou public entertainments, and all of them from a license duty, estabhshed a few years ago, on the retail trade in spirits. Besides, some localities make a source of income by working a gas factory for their own account, or by granting concessions tor the working of a gas factory, or of water- works, under charge of payment to them of a share in the profits. On the same terms there has been granted in Amsterdam a concession for operating tramways. Finally, Amsterdiim and some other localities raised a tax named street-money, that is to say, a contribution from the houses for the inaiutenauce of the pavement, the sewers, etc.; but after all it is nothing but au indirect increase to the tax on housed property, for which the law on local administration fixes a maximum, thus rendering a direct increase of this tax, as a local taxation, impossible. Sometimes there are duties levied for the use of establishments destined to partic- ular services, as port duties, sluice, bridge, and ferry tolls, market duties, etc. THE NETHEKLANDS. 565 PUBLIC, PROVINCIAL, AND LOCAL TAXATION. The following tables give a few particulars concerniDg some of the above-mentioned taxes. They relate, however, to past years, and of course can not yet be given for 1887. We observe that the ground rent on landed property is still raised after a totally antiquated estimation of the tributary revenue. That on housed property, however, has of late beeu subjected to a revision terminated in 187G. How little the antiquated estimation was in ac- cordance with the actual circumstance may be seen from the fact that the total tributary -revenue of housed property rose from 31,201,480 florins in 1875 to 74,501,528 florins in 1876. A revision of the tributary revenue of landed property is now being prepared, and is expected to have a similar result as that of housed property. This is to be kept in mind on forming a judgment as to the burden which the ground rent lays on landed property. statement showing the amount of ground rent on landed property in all the provinces of the Kingdom in ISflj, as it is raised for Government, for the provinces, and for the localities. Florins. Principal of tie tax 5, 521, 000 Two and one-half additional per cent, for Government 1,187,000 Total of the tax for Government 6,708,000 Additional percentage for the provinces 1,129,000 Additional percentage for the localities 532, 000 Total for Government, provinces, and localities 8, 869, 000 Trihutary revenue (estimated) 46,313,000 Proportion to the tributary revenue : For the principal 119,223 For the totality of the tax 80,735 Statement showing the amount of ground rent on housed property in all the provinces of the Kingdomin 1885, asilis raised for Government, for the provinces, andfor the localities. Florins. Principal of the tax ,. 4,533.000 Additional percentage for the provinces 611, 000 Additional percentage for the localities .■. . 1,764,000 Total for Government, the provinces, aud localities 6, 908, 000 Tributary proceeds (estimated) 87,114,000 Proportion to the tributary proceeds : For the principal of the tax 52,039 For the total of the tax 79, 320 Statement showiiig the total amount of direct taxes (direct ones after the official classifica- tion) for Government, the provinces, and localities in 1884. [Principal and additional percentage in thousands of guilders.] Govern- ment. Prov- inces. Locali- ties. Total. , Ground rent: 6,704 4,425 2,342 4,497 1,128 600 974 533 1,721 13, 161 8.364 6 746 ' "Personeel" tax .. 111, 477 r License duty 4,497 ; Tax on horses ... 155 15.) 9,938 1,615 9, Ki l]f' Taxes on dogs, public entertainments, and licenses for sale 1,615 Total 17, 068 2, 857 26, 967 47, 792 666 REPORTS ON TAXATION. EXPENSES OF COLLECTION OF PtTBLIC TAXES. On the budget for 1887 there appears an item of expenditure : Fiorina. Expenses of management of the various taxes, imports, duties, and ex- cises, and of stamp and duty on wrought gold and silver 4, 198, 279 To deduct (budget of revenue, head, divers income and casual receipts) repayment by provinces and localities for expenses of collection of additional percentage on direct taxes 228, 000 Balance 3,970,279 Proceeds of these revenues (estimated) as above : Direct taxes IS, U53,000 Excises 42,340,000 Import duties 4,912,000 Stamp and duty on wrought gold and silver 231,100 65,536,100 Erpenses of coHecting 3,970,279 Making 6.06 per cent. Expenses of management of the stamp, registration, succession, and mort- gage duties (estimated) 1,279,810 Total proceeds of the revenues (estimated) as above 22, 003, 500 Expenses 1,279,810 Making 5.81 per cent, on the total amount. Taxes 87,539,600 Expenses of collection 5,252,376 Making about 6 per cent. On the budget of expenditures the expenses for both these categories are taken together, because various items of general expense relate to different taxes collectively. Consequently a specification of the cost of collection for the different taxes is impossible. FINANCIAL MANAGEMENT OP THE TREASURY, THE PROVINCES, AKD LOCALITIES. In order to give an insight into the direction and management of finances in The Netherlands we give herewith a summary of the budget of a province and of a town, North Holland and Amsterdam being chosen as models. The budget of Amsterdam, the principal town of the coan- try, is best suited to give an idea of the totality of local administration. Beforehand, however, we give a summary of the Government budget, so that the summary is a complete one. Budget of piihlic expenditures for 1887. The King's household 650,0UU High colleges of state and King's cabinet 616,00" Foreign office: Cost of the department ''"'^^^ Cost of foreign diplomatic and consular service ^''"'orn Miscellaneous expenditure ^'in Pensions and allowances ^^ mi Contingencies 10,0011 681,151 Jn.stice department : .,„ Co.st of the department l^a,*" Cost of courts of law ^' »m Cost of high military court and local courts in the military districts. „j!,',oo Law charges •. •'*"> THE NETHERLANDS. 567 riorins. Justice departraent — Coatinued. Cost of general government police 5;}5, 125 Cost of prisons and reformatories 1,084,393 Buildings 30«,640 Cost of government workhouses and of the penitentiary Ommer- schans ' 573, 'Ml Pensions, allowances, and gratuities 295, L-<',> Miscellaneous expenditure and contingeuiics 66, 600 5,050,759 Home office: Cost of the department 149, 310 Cost of management of the provinces ami olher expenses of home administration 850,215 Militia and national guards; salaries of militia commissioners 65,350 Medical police (sanitary service) 695,009 Education: Higher education 1,584,248 Middle class education 1, 074, 515 Primary education, including indemnities to localities for ex- penses of their primary education 4,744,004 Art and science 493,397 Official paper and government reports (Nederl, Staats-Courant, and Staatsblad) 82,920 Pensions, allowances, and gratuities 404, 050 Contingencies 40, 000 10, 1m:!, 018 Naval service department : Cost of management . 303, 145 Material of the naval force and naval establishments 4, 177, 370 Wages to seamen and marines 4, 478, 630 PHotage, coast-guard service 1,778,237 Pensions, allowances, etc 1, 192, ^73 - Contingencies 60, 000 12, 051,1, 255 National debt: Interest, annuities, etc 31 , 763, 614 Redemption and extinction of debt 2, 107,700 33,871,314 Cost of the department 316, 395 Cost of the grand hooks of the national debt, payment of interest, agency of the treasury department at Amsterdam 90, 775 Cost of the treasury 96, 400 Cost of coinage 41, 875 Credit for withdrawal of coin (silver) 5,000,000 Cost of management of direct taxes, import duties, excises, and stamp on wrought gold and silver 4, 198,279 Cost of revision tributary proceeds landed property 268,000 Cost of stamp, registration, succession, and mortgage duties 1,279,810 Cost of crown lauds, iisheries, etc 316, 160 Share allotted to the localities in the tax called " personeel " 8, 570, 000 Cost of the churches 1 , 978, 660 Pensions, allowances 1, 099, 591 Miscellaneous expenses and contingencies 67, 300 23, 323, 245 War department : Cost of the department 143,750 Wages aud allowances to the staff 254, 320 Pay to officers, effective service 2,941,732 Pay to the corps - '^'f^'a'^oK Medical service '-'^"^ •''-^ 568 KEPOKTB ON TAXATION. War department — Continued. Education aud iustruction 306 2W Artillery establishments, etc 933 150 Stores of engineer corps 669|830 Cost of central clothing establishments and supplies, etc 342,400 Military reconnoitering, transports, etc., and miscellaneous expendi- ture .■ 324,160 Half-pay, pensions, etc 1,768,800 Contingencies 50, 000 Corps of mounted police 284, 058 Extraordinary expenditure, supply of artillery stores, coustructiou of barracks 1,242,400 Construction of fortifications 1, 677, 780 20,354,016 Department of Waterstaat (commerce and industry) : Cost of the department 190,945 Florins. Waterstaat (including extraordinary works of displac- ing the mouth of theMaas) 3,000,000 Canal of Rotterdam 1,500,000 Canal, Amsterdam-Merwede 4, 150,000 Railway construction 1,300,000 -16,781,677 Commerce and industry: Meteorological institute, sea fisheries, stamping of weights and measures, steam machinery 268, 280 Postal and telegraph service 6, 103, 520 Government postal savings-bank, etc 93, 974 Pensions, allowances, etc 168,500 Contingencies 60, 000 21!, 666, 896 Colonial department : Cost of the department 188, 675 Expenditure on behalf of the colonies Surinam and Curacoa 1, 033, 905 Pensions, allowances, etc ..■ 47,928 Contingencies 40, GOO 1,310,508 Contingencies 50,000 SUMMARY. The King's household 650,000 High colleges of state, etc 616,007 Foreign office 681,151 Justice department 5,059,759 Home department 10,183,018 Naval service department 12, 050, 255 National debt 33,871,314 Treasnry department 23,323,245 War department 20,354,016 Waterstaat (commerce and industry) 23,666,896 Colonies 1,310,508 Contingencies 50,000 131,816,169 Against this total of the budget of expenditure '. 131,816,169 The total of the budget of revenue amounts to 115,971,225 Leaving a deficit of 15,844,94'. Under expenditure is comprised the credit for withdrawal of silver coin, which will probably not be disposed of after deduction of this item (say) 5,000,000 The deficit remains 10,844,944 • This is the total given by the writer. THE NETHERLANDS. 569 Against this deficit the following items of expenditure are considered as extraordinary ones : Fiorina. War, fortifications , 1,677,780 Waterstaat : Displacing of the mouth of the 3, 000, UOO Maas, canal of Eotterdam 1, 500, 000 Canal Amsterdam, Merwede 4, l.'iO,000 Eailway, construction 1,300,000 11,627,7H0 Which the Government intends to cover by a loan, as they are not to be paid from the ordinary revenue. Besides there are under ex- penditure as well as under revenue a few items of little importance, which can be left out of the ordinary expenditure and revenue, Con- sequently Government pretends that the ordinary expenditure and revenue are in equilibrium, and as for the extraordinary expenditure, it will be covered by a loan as soon as the position of the treasury will require such transaction. The opinion that the principles of sound financial management are not opposed to the above-mentioned so-called extraordinary expendi- ture being covered by a loan, has not remained uncontested, as far as the greater part of this outlay is concerned. It is alleged that Gov- ernment ought to cover part of the deficit on the budget by supple- mentary taxation. However, the debates about the revision of the constitution, which are being carried on for some time, aretlie cause that the general states have provisionally acceded to the views of Government, but the opin- ion rather generally prevails, as well in as out of the general states, that this stat3 of things should not be allowed to continue, and from that side Government has long since been pressed to make the neces- sary provisions in that direction. Those who are of this opinion wish to combine the supplementary taxation with a more or less general reform of the whole system of taxation. They wish for an income tax as a government tax, and together with it a reform not only of public taxation, but also of the local taxes. It is worth notice that the so called extraordinary expenditure do not appear on the budget for 1887 alone, but are of late returning every year (they relate to extensive public works, the construction of which is calculated to last for several years), and are to reappear for some years to come. BUDGET OF EETENUB AND EXPENDITURE OF THE PROVINCE OF NORTH HOLLAND FOR 188G. The salaries of the governor (royal commissioner), deputies, actuary, etc., their office and traveling expenses, as also those of the members of the provincial states, are paid from the public treasury, as appears from the statement of expenditure of the home office. For North Hol- land the outlay on this head, according to the budget for 1886, amounted to 74,565 florins. The revenue and expenditure of the provincial budget are as follows: REVENUE AS IN THE BUDGET FOR 1886. Florins. Balance of year before 15, 467 Additional percentage on ground rent, viz: 7 additional percent. on principal of tax on housed property '^l. 003 8additional per cent, on principal of tax on landed property 48, 848 Additional percentage on "personeel" tax *^q'9on Eeceipts from properties of the province 6,ii<, 570 EEPOETS ON TAXATION. Fiorina. Proceed.s of the provincial records and other printed documents 900 Contributions of government, of the town of Haarlem, and of the board of dyke administrators of Eijnland; for maintenance of the channel in the Spaarne 1, 935 Loans, for extension of provincial lunatic asylum, subsidy to a local railway, and improvement of a port 265,000 Repayment of expenses of the loan and miscellaneous receipts 3, 010 489,044 EXPENDITURE. Cost of management, to the charge of the province IS, 007 Cost of provincial record and other printings 4,200 Cost of collection of provincial additional percentage on ground rent and "personeel" - 10,100 Cost of maintenance of provincial properties, etc - 3,015 Maintenance of public roadways and other public works 5,675 Subsidies and contributions to— Maintenance of pauper lunatics 45,906 Impecunious localities 4,200 Schools, museums, and other institutions of general interest 31,323 Maintenance of private roadways and means 27,000 Extension of lunatic ssyluin 100,000 Construction of a local railway 150,000 Improvement of a port 3i2, 000 Interest on public debts of the province (principal, 472,000 florins) -. 20,940 Redemption of the same - 25,000 Contingencies 11,678 Total 489,044 BUDGET OF EXPENDITURE AND REVENUE OF THE CITY OP AMSTER- DAM FOR 1887. The budget shows the following figures: Florins. Floiins. Receipts 11,437,006 Expenditure 11,437,006 From both is to be deducted the amount of anticipation- notes to be issued for cash-requirements, and to be re- deemed afterwards from the means 3,000,000 3,000,000 8,437,006 8,437,906 From the receipts is to be deducted the proceeds of a loan.. 240, 000 And from expenditure extraordinary expenses, to be covered by a loan, for western general burial-place 90,000 Construction of sewers in the inner city 150, 000 Balance 8,197,006 8,197,006 Being the real amount of ordinary revenue and expenditure. These ordinary expenditure and revenue are as follows. In this table the special receipts, for as much as they go directly against the respect- ive outlay, are mentioned separately. On the contrary, a few special disbursements, relating directly to items of revenue, are not mentioned r.ader expenditure, but entered opposite the respective receipts: THE NETHERLANDS. 571 Subhcadti of thf expenditure. Espmsos of iiitciiur manajiiemont: Salaries of burgomaster, aldermen, secretary, 'tax-follector, and office of tlie latter Sahiriew to officials and general office expenses, iiirUiding registers ol births, marriages, and di albs, etc Cost of maintenance of city properties and charges due thereon: Wages, etc., at slaughter- house Maintenance of houses, to'wers, etc . Sale of old Htoros Roads, streets, squares, canals, bridges, parks, etc.. Restitution of maintenance, dykes Ground rent, dyke and polder charges Restitution of ground rent Cost of public safety and fire-brigade, and receipts in coimection therewith: Police Fire-brigade - Stieet lighting Xatioaal uuard Local medical police Street- cleaning service (sanitary service) Proceeds of hearth ashes, etc Education: Primary education ^ School money Contribution from treasury Contribution from tiaining-school Miscellaneous Middle-class education School money Contribution from treasury Miscellaneous Higher education: University Lecture and examination fees, etc Contribution from government and province. Gymnasium Receipts at the gymnasium Relief of the poor: General expense of hospitals, sanitary depart- ment poor's house, sustenance of pauper lunatics Restitutions and contributions Contributions from government, provinces, and divers ^. Interest and redemption of debts (principal Januaiy- 1, 1886, 50,929,450 florins) - . Interest of capital; Public pawn -house Workingmen's Houses Company Redemption of interest and capital Pensions and allowances Miscellaneous expenditure: Chamber of Commerce and Rhine Navigation Committee. . Expenses of militia and re-imbursement Theater and other public entertainments Attorney and lawsuits Cost of museums and receipts Miscellaneous Contingencies Total . Subheads of receipts. Cr. balance of 1886 Income from estates and properties Rent of houses and lands, interest of capital on band, and cash . .' Hires of piers and cjnays Proceeds of other properties Expendi- ture. Florins. 42, 000 74, 000 67, 000 503, 000 28, 000 585, 000 174, 000 350, 000 44, 500 28, 500 590, 000 1, 249, 200 269,1 331, 000 "77,000 2, 155, 000 91, 000 7, 120 5,400 15, 900 11, 500 7.900 9,186 92, 000 7, 829, 006 Receipts. Florins. 3,719 2,000 "ll,"50o" 3,150 3,000 212, 500 300, 000 24, 000 2,800 49, 000 10, 000 250 86, 600 13, 000 12, 000 20, 350 25, 000 51, 102 15, 000 2,300 6,500 6,700 1,951 1, 061, 421 Balance of — ^V^' r^Bcoipta. Florins. 054, 781 58!, 850 171, OUO 350, 000 3!), 100 28, 401 436, 500 709, 000 210, 550 231, 400 47, 600 2, 063, 898 91, 000 7,120 3,100 9,400 11,500 1,200 7,235 92, 000 6, 767, 585 278, 000 185, 500 21,436 I 96, 000 25,762 57^ REPOKTS ON TAXATION. Svbfieads of receipts — Continued. Tases and duties: Taxes and direct expenses of collecting them, restitutions, and cancelling of invalid preten- sions : 40 per cent, additional grounds, housed prop- erty ■ 20 per cent, additional, grounds, landed prop- el ty 85 percent, additional, " personeel " tax Share Government tax, "personeel" Local income tax, 2} per cent, of tributary income .. Duty on public entertainments Dog tax License for sale of liquor Street money Indirect taxes by way of contributions from com- panies having concessions granted to them: Telephone Company Tramway Company Water Supply Company Gas Company ■ Duties and direct expenses adhering to them: Copy-money (retributions office expenses) Port duties Use of city ground Sluice, bridge, and ferry money Hydraulic establishment, comm. quai Cemeteries Market duties Exchange (general, corn exchange) lletributions from private persons for divers causes General expenses various duties Divers lesser receipts Expendi- tiire. Total 8,197,000 Florins. 8, 4ao 112, 840 100, 010 35, 700 17 2,000 200 27, 000 601 49, OOO 10, 900 21, 302 Keceipts. Fiorina, 311, 500 500 1, 171, 000 1, 200, 000 1, 784, 000 20, 000 24, 000 1U2, 000 297, 000 30, 000 62, 001) 180, UOO 690, 000 27, 800 210, 000 75, 001 90, 000 K, 000 26, 000 83, 000 92, 000 30, 000 6,086 Balance of— Expendi- ture. Florins. 6, 788, 887 Heceipta. Florins. 303,570 2,168,150 1,748,300 449,783 27,800 183,000 74,400 41,000 8,000 20,000 72,100 92,000 30,000 It appears from this statement that the ordinary net expenditure and revenue, classified in different heads of account, are as follows : EXPENDITURES. rioriiis. General management 326, 000 Maintenance of estates, roads, streets, squares, etc 6.'i4| 781 Public safety, etc.: Police 581,850 Fire brigade 171,000 Street lighting 350,000 National guard 39, 100 Local sanitary service 28,401 Street-cleaning service 426, 500 Education: Florins. Primary 709,900 Middle class 210, .5.50 Higher (university) 9lil,400 Gymnasium 47, 000 1,198,850 Relief of the poor 704,650 Interest and redemption 2, 063, 898 Pensions and allowances 91,000 Miscellaneous and contingencies 131,555 fi, 767, 585 REVENUE. ===== Cr. balance of 1886 : 278,00» Revenue from city properties 328,698 Various duties and divers income 560, 386 To deduct ai,302 . 539,084 THE NETHERLANDS. * 573 Taxes: _ Florins. • Additional perceatago ground rent :!(«, 570 Additional percentage and share "personeel" 2, 1;' ^, 150 Local direct taxes: Income tax 1,748,300 Miscellaneous 449, 783 y, Ills, 083 Indirect taxes in the shape of contributions for concessions granted 9(^,000 6,7i;7,585 The total amount of taxes, as raised from the tax-payers, gross amount, is: Florins. Additional percentage ground rent ;Uv!, 000 " Personeel " tax 2, 371 , OOO Local income tax 1, 784, 000 Public entertainments 29, OOO Dog tax 24,000 Licenses (sale of liquors) 102, OOO Street money 297,000 Indirect taxes, accruing from: ' Telephone • 30,000 Tramway 1 6'J, 000 Water supply 180,000 Gas 090,000 5, 8S 1,000 Among the duties raised for the use of public establishments the follow- ing may be considered in some measure as taxes: Port duties 210,000 Sluice, bridge, and ferry duties 90, 000 Market duty 83,000 General and com exchange 92, 000 6, :!.'.r., 000 The population of Amsterdam amounts, according to the latest cen- sus, to 372,300 inhahitants. Six million three hundred and fifty-six thousand florins makes, accordingly, about 17 florins per head. The tributary income, of which the income tax is paid, amounted latterly to about 66,000,000 florins. On this amount, 6,356,000 florins makes nearly 9f per cent. Amstbedam, April, 1887. Although above stated that I would not attempt to improve or en- large on the foregoing, I concluded that adding further remarks upon certain points relevant to the subject may enhance the usefulness of what already precedes it. Tax receipts jier head. — To epable the Department in determining whether the people of the Netherlands are lightly or heavily taxed in comparison to those of other countries, I prepared and submit the next following statistical tables, which show the annual receipts per head of the population for thirty-five years, and as derived from direct taxe.s, import duties, excise duties, and indirect taxes. The total revenues from these sources amounted to 25,952,566 florins in 1884, and to 26,843,41 7 florins in 1885, on account of direct taxes ; for duties on imports were received the comparatively insignificant sums of 5,014,660 florins in 1884. and 4,949,317 florins in 1885 (facts which may sufSciently illustrate that the existing tariff on imports is very low); the collections for excise duties amounted to 40,587,227 florins in 1884, and to 42,627,033 florins in 1885, and on account of other indirect taxes to 21,564,930 florins in 1884, and 21,911,357 florins in 1885. 574 • REPORTS ON TAXATION. In this couuection it may be proper to be observed that, leaving out of consideration whatever amount of good cause there may exist in this country for dissatisfaction and complaint concerning the unequal or un- just distribution of taxes among the various classes of the population capable of bearing them, tliere seems but little reason to pretend that Knder the existing system the State exacts, expects, or receives too heavy a contribution for its support from those who are least able to contrib- ute thereto. It may be noticed that the annual income per head of the population reaches a. larger sum in respect of the receipts from internal revenue on spirituous liquors than from any other single source. This is a tax which unfortunately, and self-imposed as it may be regarded to be, is largelj' or in undue proportion borne by that class in the community which can least afford to pay it — by those who depend for their liveli- hood upon the labor they perform from day to day. The amounts collected on account of internal revenue ou spirits were in 1884 23,204,885 florins, and in 1885 23,512,258 florins. It would also seem pertinent here to state that in the second chamber of the States General, now in session, during a discussion the other day on revision of a certain article in the constitution, an amendment was introduced, by which it it proposed to abolish the excise duties on chief i^erste) necessaries of life, to take efilect on the 1st of January, 1891. The articles this refers to are meats, salt, soap, beer, and vinegar; and bj' this amendment, if adopted — which, however, seems to be ex- ceedingly doubtful — a reduction in the revenue of the country would result amounting to about 9,000,000 florins per annum; the "duties" derived from that source having amounted to 9,577,745 florins in 1884, and to 9,372,605 florins in 1885. THE PUBLIC DEBT AND THIS CITl'S OBLIGATIONS. As one of the heaviest burdens ou the resources of the Kingdom is the sum required for the annual payment of the interest on the public debt, I deem it appropriate to state herein what it at i)resent amounts to and the interest thereon. According to a statement furnished me by the department of finance at The Hague, in January last, the national debt of The Netherlands is 1,082,564,150 florins, and the yearly interest thereon amounts to 31,104,723 florins. Should further information relating to national finances, such as con- €erniug the late conversion of a portion of the national debt, details as to revenue and expenditure, etc., be desirable, I would respectfully refer to my report of January 22, 1887.* I would, however, further add, that the prospects for reducing the debt of this country in the near future are far from promising, but that, ou the contrary, it is under existing circumstances more likely to increase. As to the municipal debt of the city of Amsterdam, I attach hereto a statistical table showing what it consists of. GENERAL AND CONCLUDING OBSEEVATIONS. I would repeat, to state that I realize that to convey a complete aud really correct understanding of the subject in all its ramifications would require a recital, or at least a compendium or epitome, of the salient " See aiipeiulix 1o tliis report, y>. :Si'. THE NETHERLANDS. 575 features of the many laws of the country to he given, under and by virtue of which the various taxes are imposed aud its general revenue derived. This, however, would involve furnishing full accounts of the regula tious as to the many different "rates" of each tax, or the mode and manner of their being assessed, how payments are required to be made, on what accounts exemptions from the. payments of certain taxes are granted ; in which cases and in which forms claims for reclamations may be made and must be presented, etc. Information of such a character would doubtless be verj- interesting'^ and useful, and it is to be regretted that to embrace it in any ordinary report, or in any such as I have facilities for making, is utterly imprac- ticable. The laws alluded to relating to the matters in question, aud which are, at this time in force, or partly so, are so very many in number that any effort to look them all up, translate, and transcribe portions of them would cause an amount of labor the performance of which would de- mand an indefinite period of time, and could not be accomplished with- out incurring a very considerable amount of expense. As matters are I would have found myself greatly perplexed if obliged to prepare this report without outside assistance, as I should have beeit in a quandary as to what to say or leave unsaid, or as to where to be- gin or where to end — the subject being, if I may say so, altogether "too large" for any sort of intelligent, just, and comprehensive treatment in a compact or concise manner. For a very limited exemplification of the above remarks, aud before concluding, I would here briefly explain a few further particulars having reference to what are known here as " direct taxes," and which consist of ground or land tax, personal tax, and trade licenses (patentregt). Land tax (grand belasting). — This is a tax which is levied on all lands whether cultivable and cultivated or not, and on all improved and un- improved real estate (gebonwdo en ongebouwde eigendommen). For purposes of assessing this tax the land is classified in accordance with its value, quality, or producing capacity; and on city, town, and other propert.y the tax is payable in accordance with the rent value (huurwaarde) of the premises. Exempt from the payment of this tax are, for a term of ten yeais, all lands which by draining and diking, etc., are first rendered cultivable. On making improvements of any kind ou formerly vacant city and town property, etc., exempts the same from the payment of land tax for eight years. This tax is also not payable on property belonging to the State, j)rov- inces, and municipalities; nor on churches, cemeteries, and schools occupying grounds which are owned by provinces or municiijalities i)r by recognized ecclesiastical bodies. Personal tax (personeele belasting). — This denomination stands for a tax which is levied on the rent value (huurwaarde) of all premises, ou doors and windows, on hearths and fire-places, on the furniture or the value thereof, on the number of servants employed, and on horses owned and used in business and for other purposes. The rules as to assessment of this tax or taxes, which apply under the laws on the subject, are very numerous and roost intriciite. The printed tax notices (beschryvingsbilletten) which are annually sent to, filled out, and returned by the tax-payers of this tax alone, con- tain printed directions to be observed so voluminous that a translated copy of one of them would cover a great many pages. 576 REPORTS ON TAXATION. Exemptions from the i)aymeiit of this tax or taxes are provided for by different laws, the apphcation of which extends to and relieves the great mass of the wage-earning population, and most all other persons whose yearly income falls below, say, about 000 florins, Trade licenses {patentregt). — The law which imposes this tax dates back to the year 1819. One of the officials here, charged with carrying it out, remarked to me: Though railways, the telegraph, electric lighting, the telephone, etc., have since come into operation, creating many new trades and occupations, there has been no change in the old law. Together with the regulations and rules made under the said law pro- viding for assessmeut and collection, etc., it fills a good-sized volume, and designates over five hundred different trades and occupations for which those who are engaged in them must take out licenses. These are grouped into classes, of which there are a large number, and in accordance with one or another of which each person is assessed (aaugeslagea) or is made to pay for his license. The charge for it as to very many kinds of business is very low, amounting to only a few florins per annum, but it runs up to as much as 401) florins in certain cases. It should be stated, also, that " licenses " are required by each member of any firm, or, in other words, one license does not entitle any firm to carry on an^- business, if it is coipposed of two or more partners. Anonymous and joint stock companies and corporations of every description i)ay for their licenses (pateuten) 2 per cent, on their yearly net incomes or dividends. Exempt from this tax, or not required to have licenses, are all clergy- men, lawyers, farmers, seamen, fishermen, painters, and other artists, teachers, journeymen of all trades in the employ of any master or boss, laborers, and servants. I now learn that an act has been passed, on the 17tb of last montli, under which the minister of finance has ordered further to extend ex- emptions, as follows: To weavers who are assisted in carrying on their trade only by their wives, children, and grandchildren, no matter how many looms they may have going ; also to widows who continue in the pursuit of their husbands' former and certain occupations, so long as they employ but one workman; also to cotton spinners assisted by only one workman. Eeferring again to the matter of the trade licenses of " anonymous joint stock companies" (naamloozevennootschappen) the following state- ments may prove interesting: The number of such "companies" of every character (financial, industrial, commercial, maritime, etc.,) is stated to have amounted, in lS83-'84, to 598, and in 1884-'85, to 616; tlicir total paid up capital, in 1883-'84, to 331,896,088 florins, and, ia lS84-'85, to 354,490,323 florins; their net earnings, in 1883-'84, to 22,306,319 florins, and, in 1884-'S5, to 21,065,721 florins ; and the average l)ercentage of dividends, in 1883-'84, to 0.73 per cent., and, in 1884-'85, to 5.94 per cent. TAXATION BY ADDITIONAL CENTS (OPCBNTEN). The above spoken-of direct taxes are not only levied and payable on behalf and in support of the General Government, but also, in a way, on account and for the maintenance of the various provinces and of the municipalities. It is done under or by a rather ])eculiar system or practice, known here and named in the vernacular of tlie country : " de hefling van op- itli; JNKTHEKLANUS. 677 ceuteu op 's Eyks directe belastiugen " (the levying- of additioual cents upon the uational direct taxes). The uumber of these "additional cents" varies from year to year, and it also varies as regards the different provinces and municipalities. It is established by law each year, and in accordance with the adjudged requirements and estimates of expenditure for each succeeding year, and this in respect of the general Government, the provinces, and the cities or municipal corporations (gemeenten). The folio wing statement and remarks may perhaps illustrate the matter somewhat more clearly. For instance, at the several tax-collection offices at Amsterdam the receipts on account of direct taxes in 1866 were : Fiorina. Land taxes 1,149,679.83 Personal taxes 2,735,124.69 Trade licenses 1,009,617.55 Total 4,894,422.07 This amount was collected by or paid to National Government Treas- ury officers, bnt it included the sum of 1,454,434.96 florins, which repre- sented the "additional cents" (opcenteu) which had been assessed and received on behalf of the city of Amsterdam in the year aforesaid, and was therefore refunded to the city. The number of "additional cents" levied and paid at Amsterdam in 1886 were: Forty additional cents (opcenten) upon the taxes of improved property or real estate ; 10 additional cents upon the taxes of unim- proved property, and 85 additional cents on the "personal taxes" (per- soneele belasting). "Additional cents" are furthermore levied and collected on several of the "indirect taxes," such as the "succession tax," "stamp duty," etc., and others, but in these cases, as explained to me, they are levied exclusively on behalf of the National Government, and from their col- lection are annually realized from 5,000,000 to 10,000,000 florins, the amount principally depending, of course, upou the value of the " es- tates" in respect of which they become payable, etc. REVENUE RECEIPTS AND COST OP COLLECTION AT AMSTERDAM. The principal national revenue officer for the provinces of North Hol- land and Utrecht stationed at Amsterdam kindly furnished me the data from which I quote : riorins. Total amount of revenue received at and for Amsterdam iu 1886 15, 330, 110. 50 On account of — Excise duties 8,749,637.85 Direct taxes 4,894,422.07 Customs duties 1, 601,761. £1 Sundry taxes 84,289.37 Grand total 15,330,110.50 Concerning the cost of collecting the foregoing amount of revenue the same officer observes that under prevailing circumstances it is barely practicable to state accurately what it amounted to, but a close estimate places the sum at about 350,000 florins, as being the expense incurred for all purposes in covering the above-stated amount into the Government treasury in 1886. 578 KEPOETS ON TAXATION. EXCISE DUTIES. Concerning the rates at which the excise duties or internal revenue on the articles subject thereto are chargeable the following: Salt, it is 9 florins per 100 kilograms ; meats, 1 per cent, on the value of tlie cattle to be killed ; wine, 20 florins per hectoliter ; spirits, 60 florins per hecto- liter of 50 per cent, alcohol by 15° Celsius; beer, the "excise" is kvied according to the choice of the brewers, either at 1 florin per hectoliter of the contents capacity of the mixing-tubs or tanks (roerkuipen), or at the rate of .03J florins per kilogram of raw material (grondstof); vine- gar, the "excise" differs or depends on whether it is manufactured from beer, exclusively from spirits, or other substances; sugar, the basis whereon the "excise" is levied is a duty of 27 florins per 100 kilo- grams dry white loaf-sugar; soap, the "excise" is 10 florins per 100 kilograms. D. Eckstein, United States Consul. The following statements, published by the Association for Statistics in the Netherlands, show the receipts from the principal taxes per head ef the population each year from 1851 to 1885, inclusive. (a) Direct taxes and import dutien. [In florins.] Tears. Ground or land tax. Personal tax. Trade licenses. Total direct taxes. Import duties. 3851 . 18.52 . 1863 . 1854. 18.55 . 1856 18.57 . 1858 1859 . 1860 . 1861 . 1862 . 1863 . 1861 . 1865 . 1866 . 1867 . 1868 . 1869 . 1870 . 1871 . 1872 . 1873 . 1874 . 1875 . 1876 . 1877 1878 . 1879. ISRO . 1881 . 1PS2 . 188:; . 188* . 1885 . 3.25 2.01 3.21 2.00 3.18 2.01 3.15 2.00 3.13 2.01 3.10 2.01 3.08 2.03 3.07 2.04 3.11 2.11 3.09 2.09 3.07 2.12 3. 04 2.12 3.01 2.14 3.00 2.14 2.97 2.16 2.78 2.18 2.77 2.17 2.77 2.18 2.81 2.23 2.80 2.22 2.80 2.24 2.79 2.25 2.77 2.28 2.75 2.28 2.73 2.31 2.70 2.32 2.68 2.37 2. 00 2.37 2.64 2.40 2.65 2.42 2.64 2.45 2.62 2.45 2.61 2.44 2.61 2. .09 2.02 2.57 .79 .79 .79 .80 .85 .86 .87 .87 .89 .91 .92 .92 .91 .89 .91 .91 .92 .94 .99 1.00 .90 1.00 1.00 1.01 1.00 1.01 1.03 1.04 1.04 1.05 1.01 6.14 6.01 5.98 5.94 5.93 5.91 5.93 6.91 6.07 6.04 6.06 6.03 6.04 6.05 6.05 5.88 5.85 5.84 5.95 5.93 6.96 5.98 5.84 6.03 6.03 6.02 6.05 6.04 6.04 6.08 6.12 6.11 6.09 6.26 0.20 1.15 1.21) 1.12 1.01 .94 1.01 1.02 112 1.18 1.13 1.05 110 115 119 1.13 1.13 121 116 1.32 135 l.« 141 142 150 1.31 115 111 117 120 117 1.21 117 118 THE NETHERLANDS. 579 (ft) Excise duties or internal revenue. [In florins.] Tears. On sugar. On ■wine. On spirit- uous liquors. On salt. On soap. On beer and vine- gar. On meat. Total. 1851 .28 .30 .42 .47 .50 .59 .60 .64 .69 .69 .61 .57 .68 .63 .59 .99 1.12 1.C4 1.34 1.32 1.30 1.30 1.46 1.37 1.50 1.64 1.56 1.63 1.62 1.45 1.68 1.77 1.48 l.M 1.84 .42 .41 .41 .40 .37 .36 .34 .34 .38 .39 .37 .38 .39 .39 .40 .52 .54 .53 .49 .46 .38 .47 .49 .48 .48 .51 .53 .62 .51 .51 .50 .49 .48 .46 .44 1.50 1.50 1.45 1.46 1.51 1.46 1.64 1.72 1.77 1.69 1.77 1.75 1.85 2.48 2.61 3.45 3.69 3.68 3.91 3.99 4.10 4.40 4.60 4.75 4.91 5.19 5.38 6.53 6.41 5.65 6.52 6.30 5.32 5.46 5.49 .69 .71 .74 .76 .75 .79 .79 .77 .78 .78 .78 .76 .78 .78 .79 .81 .79 .76 .82 .83 .81 .77 .80 .80 .79 .79 .80 .79 .76 .82 .83 .86 .87 .40 .42 .40 .40 .37 .38 .39 .40 .41 .37 .38 .37 .37 .37 .38 .37 .37 .38 .16 .16 .15 .14 .13 .14 .16 .16 .17 .15 .14 .15 .10 .17 .19 .18 .17 .18 .77 .68 .60 .49 .60 .63 .55 .53 .62 .42 .42 .42 .43 .44 .47 .52 .48 .50 .67 ..57 .57 .60 .65 .64 .67 .71 .70 .07 .66 .71 .73 .72 .71 .69 .66 1852 6 33 1854 6.31 1855 6 37 6.12 1857 5 32 6.45 1859 5.43 I860 5.32 5.47 1862 5.37 5.43 1864 6.69 1865 6.43 1866 6.84 1867 7.15 1868 7.07 1869 .38 .19 7.70 .38 .38 .39 .39 .39 .41 .41 .40 .41 .41 .43 .41 .41 .42 .44 .43 .19 .20 .23 .23 .33 .23 .23 .23 .23 .22 .23 .23 .23 .23 .24 .23 7.75 1871 7.74 8.18 1873 8.60 8.66 1875 9.00 9.49 1877 9.60 9.79 1879 9.60 9.69 1881 9.79 9.78 1883 9.52 .89 9.65 1885 .86 9.96 (c 1 Indirect taxes [In florins.] Stamp tax. Hegistra- tion and record- ing fees. Record- ing fees mort- gages. Succes sion tax. Total. Grand total. a, b, c. 1851 .67 .64 .65 .60 .56 .66 .59 .59 .59 .62 .62 .61 .63 .68 .65 .72 .70 .75 .67 .61 .63 .54 .55 .54 .66 .56 1.41 1.42 1.64 1.69 1.75 1.86 1.77 1.76 1.67 1.76 1.68 1.79 1.86 1.96 1.93 1.77 1.81 1.94 2.00 1.96 2.22 2.48 2.60 2.66 2.70 2.87 .12 .12 .13 .14 .11 .16 .15 .15 .14 .15 .14 .15 .16 .17 .17 .15 .15 .17 .18 .17 .20 .24 .26 .25 .26 .28 1.09 1.95 1.03 1.27 1.34 1.12 1.21 1.69 1.22 1.24 1.15 1.03 1.27 1.23 1.21 1.24 1.48 1.04 1.14 1.61 1.46 1.77 1.40 2.21 2.06 2.12 3.19 3.03 3.26 3.60 3.79 3.81 3.72 4.08 3.62 3.77 3.59 3.69 3.92 4.02 3.95 3.89 4 14 3.90 3.99 4.15 4.39 5.03 4.80 6.55 5.67 6.82 18.39 1852 18.06 ,. 1853 18.24 1854 18.47 ,i 1855 18.72 1 1856 17.36 17.49 1858 ' 1859 17.96 17.69 » 1860 18 08 18.23 II 1862 18.03 1863 18.29 1:1864 18,62 18.29 If 1866 19.48 IU867 19.99 19.68 20.70 '\ 1870.... 20.82 » 1871 . . .. 21.33 1872 22.44 ^1873 22.80 1874... 23.60 23.94 1876 24.79 138 No. 99 21 680 REPORTS ON TAXATION. (c) Indirect taxes — Continued. [In florins.] Tears. Stamp tax. Registra- tion and record- ing fees. Record- ing fees mort- gages. Succes- sion tax. Total. Grand total <^i &, c. 1877 1878 1879 1880 1881 1882 1883 1884 1885 2.85 2.67 2.50 2.79 2.91 2.63 2.19 1.93 1.69 1.57 1.66 2.39 2.62 2.72 2.48 2.28 2.24 2.57 6.25 5.12 6.65 6.23 6.47 6.87 6.78 6.10 6.14 24.17 2407 24,40 25.21 24.74 24. « 24.92 Statement of the municipal deht of the city of Amsterdam on the Ist of January, 1886, Description of debt. Amount of debt January 1, 1886. Original amount of the debt. Amount of yeaTlyredemp- tion required. Rate Of interest Debt owing diverse administrations Bonds, 1855: Florins. 55, 550 149, 000 193,000 296, 000 312, 000 308, 000 191,000 296, 000 316, 000 1, 948, 600 15, 430, 300 20, 668, 000 7, 476, 000 2, 600, 000 Florins. 1, 158, 809 300, 000 300, 000 450, 000 400, 000 400, 000 300, 000 400, 000 460, 000 3, 000, 000 18, 000, 000 21,000,000 7, 600, 000 a, 600, 000 Florins. Per em, 2i 3,000 3,000 5,000 4,000 4,000 3,000 4,000 5,000 41, 500 102, 000 108, 000 4,000 3 Redeemable debt: 1861 f 1874 1879 i 1884 4 50, 029, 460 60, 158, 809 286, 500 Appendix. [Extract from Consul Eclistein's report of January 22, 1887— Consular Report No. 80, pp. 663, 564, 565. CONVERSION OF THE DUTCH DEBT. The conversion of the 4 per cent, national debt of the Netherlands, which took place in the course of the year 1886, had for a long time previous to the occurreiicB been held in view or contemplated by the Government, which was only waiting for 9 favorable opportunity for the accomplishment of that object. Consequently, when the rate of interest became everywhere very low, andwhenit appeared that a money plethora would set in for a long period of time, the matter of "conversion" was earnestly taken in hand and discussed by the finance department. One of the two groups or combinations of bankers which then appeared upon the scene and oifered, upon certain terms, to undertake the transaction, consisted of thB prominent banking house of Lippmann, Rosenthal & Co., which proposed to associ- ate itself with the Rothschild frferes, in Paris, N. M. Rothschild & Sons, in London, and M. A. von Rothschild & Sons, in Frankfort-on-the-Main, and to take upon them- selves the entire conversion of about 340,000,000 florins of the 4 per cent, national debt at the rate of 97 per cent, against the to be emitted 3i per cent. Government bonds. This proposition was approved by the Rothschild houses, and in accordance there- with a preliminary agreement was entered into in the month of February, 1886, M- tween the minister of finance and the agent of the Rothschilds in this city, »ntt George Rosenthal, esq., for and on behalf of his firm of Lippmann, Rosenthal & Co.) THE NETHERLANDS. 581 subject to the approval of both Chambers of the States -General, and the subseq^uent sanction of the King. This arrangement caused a certain amount of ill-feeling and opposition to its con- summation from certain quarters, and chiefly on the ground of its being made with the Eothschild houses, who are foreigners. However, the agreement seems to have been looked upon as advantageous to the country and satisfactory to the members of both Chambers, as a bill based thereupon was passed, with very slight modifications, on the 9th of May, 1886, with very large majorities in both Chambers, and being speedily thereafter approved by the King, became law. The contract, thereafter in force, was soon afterwards carried into effect by the Messrs. Eothschild. The owuirs and holders of 4 per cent bonds received notice that within fourteen days they had to declare themselves whether they desired payment at par. Tliose who allowed that term to pass without requiring such cash payment received a premium of 2 per cent, in cash, and the 3^ per cent, new emission at the rate of 96 per cent. Only about 1,000,000 ilorins of the 4 per cent, debt was asked and required to be paid back. The entire balance, or about 339,000,000, of the 4 per cent, debt was converted into the new 3J per cents. The contractors took care that the 4 per cent, old bonds, which then came into the market in large amounts, were bought up by them at a premium over par, whilst the course of the new 3^ per cent, debt kept itself somewhat above the price of emission, 98 per cent., went up to as much as 101 per cent., and stood, at-or near the close of the year, at par, or 2 per cent, above the course of emission. The deliveries for conversion took place so quickly that at the end of November only a very small proportion of the old 4 per cent, issue remained outstanding for exchange. The new rate of interest, 3| per cent., went into force on the 1st of July, 1886. The Government issued paid-up scrips, which are soon to be exchanged for the new obligations. The denominations of the new bonds are 12,000, 6,000, 1,200, 1,000, 500, and 100 florins, with interest coupons attached, payable half-yearly, Ist of April and 1st of October. The interest is payable not only in Holland, but provision is made for its payment at Paris, London, Berlin, and Frankfort-on-the-Main. The Government has assumed the obligation not to convert the new 3J per cent, debt during the next ten years. It is generally considered here that the conversion of the Dutch 4 per cent, national debt is one of the most successful and promptly-perfected financial operations which have taken place in Europe latterly. THE NATIONAL DEBT. The national debt of the Netherlands consists of : Florins. (1) Inscriptions in the Public Ledger (Qrootioeh) of the 2| per cent. national debt to a nominal capital of 630, 593, 300 (2) Inscriptions in the Public Ledger of the 3 per cent, national debt to a nominal capital of 94, 642, 850 (3) Inscriptions in the Public Ledger of the 3i per cent, national debt and dl per cent, obligations, issued in accordance with the law of May 9, 1886, Staatsblad No. 102, together representing a nomi- nal capital of 348,085,000 (4) Three and one-half per cent, obligations of the late Amortization Syndicate, to a nominal capital of 9,243,000 Total 1,082,564,150 ' On the entire national debt the annual interest amounts at present to 31,104,723 florins. , REVENUE AND EXPENDITURES. i The estimated national revenue amounted for 1885 to 115,764,176 florins, and for 5 1886, to 120,149,065 florins; and the estimated amount of national expenditures was s 135,614,355.875 florins in 1885, and 132,543,648.935 florins in 1886. This shows that in '( both years the expenditures exceeded the revenues ; the deficit amounting to 19,850,- ; 179.875 florins in 1885, and to 12,394,583.935 florins in 1886. i! According to a statement before me, and which I suppose to be correct, the appro- priations for the national service of the current year (1887) are as follows : ^v Fiorina. rf Royal household 1 660,000.00 J State establishments and royal cabinet 616, 007. 00 j^ Department of foreign affairs ,i'i5in2 Department of justice 5,059,759.00 582 REPORTS ON TAXATION. Horins, Department of interior 10,183,018.00 Department of navy 6,454,182.60 National debt 33,871,314.28 Department of the treasury 23, 323, 244.' 831 Department of war 20,354,016.00 Department of water- works, trade, and industry 23,666, Ii96. 21 Department of colonies 1, 310, ,'j08!43 Unforeseen expenditures 50, uOO. 00 Total 120, 220, 097. 35i The estimated revenues for same period of time amount to 115,973,075 florins, and it is thereby shown that the expenditures exceed the estimated revenues in the snm of 10,247,022.35^ florins. Besides that, under some existing law, provision remain* still to be made for tlie maintenance of the navy from July 1 to December 31, 1887. BANK OF THE NETHERLANDS. The following are summarized statements showing the status of this financial in- stitution on given days during the year 1885, and the rates of exchange on same day» and year at Amsterdam : Portefeuille and Lombard, or ad- vances ou dl- ver.16 securities. Gold. Silver. Tlates of exchange. Date. London (per pound ster- ling). Paris (per 100 francs). Germany (per 100 ril marks). January 2 April 30 June 30 July 31 August 28 November 6-. December 24.. Florins. i)7, 000, 000 70, 000, 000 07, 000, 000 03, 500, 000 59, 000, 000 77, 000, 000 86, 000, 000 Florins. 48, 000, 000 72, 00(1, 000 77, 000. 000 80, 000, 000 80, 000, 000 79, 000, 000 67, 000, 000 Florins. 96, 000, 000 98, 000, 000 98, 000, 000 98, OOO, OOO 97, 000, 000 97, 000, 000 97, 000, 000 Florins. 12.05 12.00 12. 05 12.06 12.09 12.13 12.09 Florins. 47.75 47.80 47.75 47.85 47. 87i 47.80 !■;. 72i Fhrins. 59.10 58.95 69.05 59.15 59.10 59.10 59.25 RUSSIA. TAXATION IN THE KINGDOM OF POLAND. liBPOBT OF CONSUL BAWICZ. DIEECT TAXES. — NATIONAL. The principal and additional land tax. By the Imperial ukase of the 8 — 20 day of December, 1866, the principles of the new order of taxes upon the manor estates were sanc- tioned. The taxes, such as offerings, delivery of military provisions, beneficent subsidy, tonnage, and miller canan, collected from the manor estates to the amount of 2,607,300 rubles, were converted into one gen- eral tax called "the manor land-tax," which -was divided into two parts; the one part, representing two-thirds of the total amount, was named "the principal land tax," and the other, equal to one-third of thetota- amount, was called "the additional laud tax." RUSSIA. 583 For the principal land tax there was established a direct taxation, «the tariff," in each district according to the new administrative parti- tion of the Kingdom of Poland, made in the year 1867. As to the additional laud tax, there was made the distribution of its total amount among the districts with the injunction that the interior assessment of this tax ought to be performed by the local authorities, conjointly with the persons selected from among the very tax-payers. For the assessment of the manor land tax, the declarations of the landed proprietors, containing the specifications of the areas of their lands, together with their subdivisions into categories, were adopted. Subsequently the necessary informations of the sale prices of the lands situated in various parts of the Kingdom of Poland were collected through the mediation of the Landed Credit Association. Based on these data, the assessment of the total amount of this tax among the districts of all the ten governments of the Kingdom of Po- land was effected. From the computed total amount for each district two thirds were deducted for the principal and one-third for the addi- tional land tax. After this there were defined, in each district separately, the amounts of the principal land tax for each of the five kinds of land named " the categories," into which the lands were divided. To the first category belonged the lands under buildings, orchards, gardens, and the better arable lands used for wheat; to the second category belonged arable lands of a good or medium rye soil; to the third category belonged twice-mown meadows; to the fourth category belonged once-mown meadows; and to the fifth category belonged forests, thickets, shrubs, pasturages, and arable lands of an inferior soil, sown once during three or six years. In order to define the revenue proportion among the said five land categories, there were used the regulations issued in the second decade of the present century for the emancipation of the peasant settlements in the G-overnment estates. As a taxation unit the lands of the fifth category, viz, forests, thickets, pasturages, etc., were taken; the lands of the first category represented 8, those of the second category 3J, those of the third category 11, and those of the fourth category 4^ units. To define the direct taxes for each separate district, independ- ently of the other districts, the following mode of computation was used : Before all, the total quantity of lands in a district containing various kinds of land was converted into pasturage land according to the above stated revenue proportions of the various land CHtegories; thus there was obtained the number of the pasturage units. Afterwards there was taken the total sum of the principal tax, defined for a district, conform- ably to the value of land and divided by the number of pasturage units; in the result there was obtained the amount of tax for a pasturage unit. To define the amount of tax for the lands of the first category, the pas- turage unit was multiplied by 8, for the lauds of the second category hy 34, for those of the third category by 11, and for those of the fourth ; category by 4J. The total sum of the additional land tax was computed in each dis- trict according to the principal land tax. The landed proprietors own- \ ing less than two viocka (60 morgs) of land were exempted from the \ payment of the additional land tax. Out of 15,054 landed properties f there were 4,395 representing 682,513 morgs of land exempted from ." the additional land tax, and in consequence of which there were col- ls lected from the larger landed properties 53 per cent, of the additional land tax instead of 50 per cent. 584 REPORTS ON TAXATION. At the time of the introduction of the manor land tax the total area of the manorial lauds was estimated at 10,677,087 morgs, and the total amount of the land tax at 2,607,434 rubles 40 copecks, so that one more was charged with 24.8 copecks. At present there are 10,715,727 morgg taxed with 2,046,756 rubles 35 copecks, or one morg with 24.7 copecks. It was said above that the assessment of tbe additional land tax within the limits of the districts ought to be made by the local authorities con- jointly with the persons selected from among the very tax-payers. In connection with this injunction, the minister of the finances issued, and in the year 1873 presented to«the late committee on the affairs of the kingdom of Poland, special regulations as to the order of selecting the said tax-payers and the proper proceedings of the local authorities. These regulations contain the following instructions : (1) The total sum of the additional manor land tax computed for all the governments of the kingdom of Poland has to be divided among these governments by the ministry of the finances in such a manner that the total sum of the additional land tax in each government repre- sented 50 per cent, of the total sum of the principal land tax. (2) The quantity of the additional land tax due from each government has to be divided among the districts at a joint session, by the Govern- ment Commissioner on the peasant affairs and the Government au- thorities. To the said session can be invited for consultations the ex- perts, such as landed proprietors, manufacturers, etc. (3) The total sum of the additional land tax defined for one district is to be assessed within the district, among separate landed properties, by a special commission, consisting of the commissioner on the peasant affairs, the district chief's assistant on the agricultural affairs, and three landed proprietors. This commission should be presided over by the chief of the district. (4) The selection of the landed proprietors for the participation in the assessment of the additional land tax is to be made by the governor, after a preliminary receipt of the proper reports from the chiefs of the districts, and the commissioners on the peasant affairs. (5) During the assessment of the additional land tax among the dis- tricts and in the districts among their landed properties, as a basis are to be taken : The value and revenue of the lands of the landed properties, their special merits, favorable situations, valuable agricultural enter- prises, such as sheep-rearing, etc., and, in general, all these data on which depends the productiveness of the landed properties. (6) The copies of the tax assessment performed by the commission and of the tax amounts due from each landed property, accompanied by an explanation of the adopted cases, are to be communicated by the district authorities through the community bailiffs to each of the taxed landed properties. The landed jiroprietors who may be dissatisfied with an assessment are permitted to present their complaints to the commission, which is obliged to examine and decide them. (7) At the expiration of the appointed time for making the complaints, a copy of the assessment made by the commission, together with a de- tailed explanation of the adopted cases and computations, accompanied by a statement of the com])laints made against the assessment, and an information how the complaints were settled, are to be transmitted to the governor for his sanction. (8) The governor presents the copy of the assessment, together with its annexes, to the joint session of the government commissioner on the peasant affairs; and the government authorities, who either approve the KUeSXA. 685 assessment or, if they consider it necessary, make therein suitable final alterations ; and in case of a diminution of taxes of some of the landed properties in a given district, the deducted amount of taxes is to be proportionally divided among the other remaining landed properties of the same district. (9) The assessment of the additional land tax among governments, districts, and separate landed properties is made every five years. Should, however, a chief of a district receive petitions from at least one-fourth part of the taxpayers of one district to make a new assess- ment during the course of these five years, he ought, according to a prescribed form, to report thereon, and the minister of finances is au- thorized to resolve on such an assessment, provided that the total sum of the additional land tax is by no means diminished. (10) Should the revenues of a landed property in consequence of some extraordinary circumstances considerably decrease during the course of these five years, in this case, the amount corresponding to this decrease of the additional land tax can be relieved even before the expiratiou of the said period. Tlie hearth tax upon the peasant settlements and the land tax upon the peasant lands. The 15th day of December, 1868, the law of the hearth tax upon the peasant settlements and of the land tax upon the peasant lands in the ten Vistula governments was sanctioned. In virtue of the said law the hearth tax was based on the same prin- ciples which were established by the law of June 3-15, 1858, however, with the following alterations : This tax was named the hearth tax with- out the addition of the words : "together with the road tax." Subsequently all the peasant settlements, without discrimination of the government landed properties from all others, were charged with the hearth tax at the rate defined for the government landed prop- erties. For those of the first category, having an area of 15 morgs or more of arable lands, 4 rubles ; for those of the second category, hav- ing an area of from 3 to 15 morgs of arable lands, 2 rubles ; and for those of the third category, having less than 3 morgs of like lands, 1 ruble. Besides this, the peasant settlements owning more than 90 morgs of land, formerly liable to the payment of the manor hearth tax, are charged with the peasant hearth tax according to the rate of the first category. The computation and the collection of the hearth tax were ordered to be made on the basis of the descriptions of the peasant settle- ments effected in the years 1865 and 1866. Afterwards as a unit for the hearth tax a village was taken ; and the assessed thereon amount of the hearth tax by a local financial authority ought to remain immutable during the term of five years. The amount of the hearth i ax computed for each village is to be assessed among tax-payers within the village, conformably to the opinion of ai peasant meeting which can change it every year. During this assessment the peasant settlements of the third category having less than 3 morgs of arable land can not be charged with the hearth tax beyond the rate fixed for this category; the settlements of the other remaining categories can not be charged with the hearth tax at the rate exceeding more than twice the amount of the hearth tax due from a settlement according to the defined rate of taxation. The following table, based on the data obtained for 1887, shows the 586 EEPORTS ON TAXATION. numbei oi the peasant settlements situated in the ten Polish govern- ments, and the amount of the hearth tax due from them : Governments. Total No. peasant set- tlements. Total amount heartli tax. Average amount heartb tax per one set- tlement. Average amount arable land for each set- tlement. Wa raaw . - . Kalish Kielce Lomza Lublin Piotiliow . . Plock Eadom Suvalki Siedlec — Total 68, 507 70, 138 70, 690 37, 213 70, 627 69, 151 49, 235 63, 593 49, 635 47, 126 Rubles. 173, 601 154, 486 151, 324 90, 273 201, 494 174, 835 100, 970 60, 497 139, 192 139, 802 Rubles. 2.63 2.20 2.14 2.43 2,85 2.60 2.14 2.52 2.80 2.96 593, 815 1, 486, 474 2.50 Morgs. 12.81 9.63 9.00 14.45 15.30 12.14 11.03 12.22 22.46 18.31 13.34 During the assessment of the peasant land tax, the military provis- ions tax, to the total amount of 479,671 rubles 91J copecks, was added to the former in order to render the tax system more simple and uni- form. The total amount of 2,022,970 rubles and 46| copecks thus formed was assessed among villages according to the established tariff of col- lecting the manor land tax. Subsequently this total amount of the peasant land tax, together with the military provisions tax (2,022,970 rabies and 46| copecks) was reduced by 109,265 rubles and 33 copecks. This reduction was made for this reason in order to approach the peas- ant land tax, representing, if we take the full amount, 29J copecks per morg, to the manor land tax, which represented only 24.8 copecks per one morg. The peasant land tax was divided, like the manor land tax, into the principal and additional land tax; the latter being one-half of the former. To facilitate the distribution of the land tax, there were iu the years 1805 and 1866 simultaneously made the descriptions of the manor landed properties, and like detailed descriptions of the peasant lands, with the specifications therein of the quantity of lands according to their categories and conformably to the division adopted in the tariff for the manor lands. According to the said tariff, the principal land tax is computed by the local financial authorities for each separate vil- lage, and conformably to the number of its lands. The additional land tax is assessed by the same authorities among the communities, iu pro- portion to the principal land tax paid by each community; the com- puted amount of the additional land tax for each community is assessed by the community assembly among the villages belonging to a com- munity. Subsequently the amounts of the i)rincipal and additional land tax, computed for villages, are divided among the tax-payers within the villages by the village assemblies. During the interior assessment of the peasant land tax the follow- ing principles are observed: (1) The amount of the additional land tax, defined for a village by the community assembly, can not exceed three-fourths of the amount of the principal land tax computed for a vil- lage. (2) The total amount of the principal and additional laud tax, computed by the village assembly for one tax-payer can not exceed twice the amount of the principal land tax, due from a tax-payer according to RUSSIA. 587 the tax tariff, (3) The peasants possessing an area of land of less than 3 morgs can not be charged with the land tax beyond the rate defined by the tax tariff, and with the additional land tax beyond three-fourths of the amount of the principal land tax. The local assessment of the principal and additional land tax intrusted to the village assemblies may be altered according to the opinion of the village assemblies. Comparing the average figures of the peasant laud tax per morg (27.9 copecks) with the average figures of the manor laud tax (24.7 copecks), it appears that the peasant lands iu Poland are generally taxed higher by 32J per cent, than the manorial lands. The reason of the raising of the peasant land tax lies therein that among the peasant lands the category of arable laud prevails, which of course is charged with a higher tax, while the manorial lands contain large areas of such lands as forests, pasturages, and thickets, charged with a lower tax. Below I give the statement, based on the data obtained for 1887, show- ing the area of the peasant lands and the amount of the direct taxes due from them : Morgs. Total amount of principal and additional land tax. Average taxation of one morg of arable land. Governments. With land tax. With hearth tax. With land and hearth tax. 877, 367 u75, 334 63.5, 155 557, 651 1, OI-'O, 592 839, 483 521,016 777,600 1, 114,834 862, 981 Eubles. 321,131.30 221,461.55 179, 220. 96 125, 289. 15 250, 203. 06 230, 725. 95 151,039.86 191,183.99 315, 414. 58 188, 395. 01 36.6 32.8 28.2 23.3 23.2 27.5 29.0 24.7 28.3 21.8 19,8' 22.9 23,8 16.8 18.7 20.8 19.4 20.6 12.5 16.2 56 4 Kalish Kielce 52 Lublin 41 9 Piotrkow Plock 48.3 48 4 45 3 Snwalki ---. Siedlec . 40.8 38 Total 7, 922, 013 2, 174, 066. 41 27.5 1 18.8 46.3 The hearth and land tax collected from former toums. The principles on which the hearth and laud tax are collected from the little or former towns are the same as for the peasant settlements, with only this difference, that the houses belonging to the former owners of these little towns, and serving the owners for their temporary or per- manent residence, are charged with the higher hearth tax, viz, 4 rubles, irrespectively to the quantity of laud belonging to such houses (in vil- lages are charged with the hearth tax, the peasant settlements, aud in former towns, houses, commercial and industrial establishments). The same amount of the hearth tax is collected from habitable houses, as well as from industrial establishments built of stones or bricks. i: 588 REPORTS ON TAXATION. The following statement, based on the data obtained for 1887, shovs the average taxation of one morg of arable land in the little or former towns of Poland : Warsaw .. Kalish Kieloe Lomza Lublin — Piotvkow - Plook Kadom ... Sawalki .. Siedlce ... Governments. No. little or former towns. Average taxation of one morg of arable land. Witb land tax. 28.1 34,7 24.7 20.1 21.0 22.9 24.1 21.4 20.3 17.4 22.4 With beartb tax. 20.5 28.7 25.0 22.9 25.3 22.4 19.8 20.6 15.6 14.1 20.! With land. tax and hearth tax. 48.6 63.4 49.7 43.0 46.3 45.3 43.9 42.0 35.9 31.5 43.3 The total amount of the land tax and hearth tax collected from the foregoing three hundred and twenty-five little or former towns repre- sents 113,397 rubles 83 copecks. The manor hearth tax. By virtue of the Imperial ukase of the 3d day of February, 1883, is- sued in exchange for the regulations of the 3-15 day of July, 1858, the manor hearth tax is collected on the following basis: (1) This tax is collected from each separate building inhabited or used for any commercial or industrial purpose, and situated without the limits of the lands belonging to large or little towns, as well as those given to peasants in virtue of the emancipation ukase of the 19th day of February, 1864. (2) The manor hearth tax is also called the principal and additional one. (3) The principal manor hearth tax is collected from the buildings defined under the No. 1, conformably to the area of farms, settlements, forests, and other units of the agricultural husbandry in which a build- ing is erected and which, for the payment of the principal hearth tax, are divided, according to the quantity of every denomination and quality of arable and unarable lands, into the following five categories: First category, having an area of more than 600 morgs ; second category, hav- ing from 600 to 300 morgs; third category, having from 300 to 90 morgs; fourth category, having from 90 to 15 morgs, and fifth category. Laving 15 or less morgs. For each of the first four categories are established two kinds of the hearth tax, the higher and the lower hearth tax, and for the fifth or last category there is established one general hearth tax. With the higher hearth tax, in each of the landed ])roperties belonging to the first four categories, are charged one principal habitable house, and all factories, industrial and commercial establishments. With the lower hearth tax are charged all other buildings liable to the payment of the manor hearth tax. (4) The additional hearth tax is computed according to the value of each building and in an equal percentage ratio to the amount at which the building was estimated by virtue of the ukase of the mutual Gov- RUSSIA. 589 eminent iusurance ; if such a building was estimated at more than 10,000 rubles the additional hearth tax is computed only from 10,000 rubles. The following statement shows the actual number of the principal habitable houses, industrial and commercial establishments, and other agricultural buildings, as well as the quantity of morgs in each of the five categories of the agricultural units (see No. 1) : Categories. Priueipal habitable houses, indus- trial and com- mercial estab- li.shments. other agricultural buildings. Morgs. I No. 11, 506 5,273 4,213 22, 941 No. 29, 813 9, 253 4,026 2,548 No. 7, 643, 788 1, 561, 018 609, 659 704, 365 n TTT IV V 36 06^ 150 002 The foregoing five categories are charged with the manor hearth-tax as follows : Categories. With higher hearth-tax. With lower hearth-tax. I Rubles. 13.00 9.50 8.00 4.00 Rubles. n 4 75 m IV . 2 00 V* 2. OO * With general hearth-tax. At present the kingdom of Poland pays 822,523 rubles 46 copecks of the manor hearth-tax. The general census of the manor landed prop- erties is made every five years. INDIEECT TAXES — NATIONAL. In the kingdom of Poland the following indirect taxes are now in force, viz: Excise tax. (a) On spirituous liquors, such as brandy, wine, mead, and beer, is collected at the average rate of 16 copecks per 1 degree Fahrenheit. (6) On tobacco products, such as cigars, cigarettes, snuff, and smok- ing tobacco, is collected at the rate of 24 copecks to 48 rubles 50 copecks per one pood, according to the quality of tobacco. (c) On sugar, at the rate of 85 copecks per pood. Stamp tax. On judicial acts, petitions, bills of exchange, and all other documents of public character, is collected at the rate of 80 copecks per one sheet, 'and besides this, from |^ to J per cent. On judicial registering of the civil lawsuits the stamp-tax amounts to 1 per cent, from a sum in litigation. 590 REPORTS ON TAXATION. Inheritance tax. This tax, according to the degree of relationship of the parties taking or giving an inheritance, amounts to from 3 to 15 per cent, from the in- heritance value. Custom-house duty. This duty is collected on the imported goods, in virtue of a separate and greatly complicated tariff, at the rate of from 25 to 33 per cent, from the value of a given object or merchandise. Railway ticket tax. This tax amounts for the passengers of the first and second class to 25 per cent, and for those of the third class to 15 per cent, from the ticket value. A like tax of 25 per cent, is also collected on the rapid transportation of goods. Coupon tax. This is collected on the public interest-bearing stocks at the raterf 5 per cent, from the coupon value. Industrial and commercial tax. This tax, according to the locality or extension of the commercial or industrial undertakings, amounts to from 2 rubles 50 copecks to 1,125 rubles 50 copecks per annum. TAXES FOR MAINTENANCE AND ARRANGEMENTS OF LOCAL PUBLIC INSTITUTIONS SITUATED IN TOWNS AND VILLAGES. Fire insurance. The fire-insurance tax, being obligatory to all house owners, if the value of a building does not exceed 5,000 rubles, is collected by the governments, on the reciprocity basis, at the rate of from 0.25 to 10 per cent, from the house value, and conformably to the local conditions and wants of insurance societies. Cattle-disease insurance. This tax is likewise obligatory to all cattle owners, aod, being based on the reciprocity principle, amounts to from 10 to 15 copecks per head. Road tax Is collected for keeping roads and bridges in repair by the govern- ment authorities, at the rate of 15 per cent, from the land tax in vil- lages and from the hearth tax in towns. Military quarters tax. This tax is collected for hiring lodgings to military officers, at the rate of 6^ per cent, from the manor land tax, and at the rate of 38J co- pecks from the peasant settlements. RUSSIA. 591 COMMUNITY CONTRIBUTIONS. Besides the above-enumerated taxes the county population of the kingdom of Poland contributes also to the maintenance of the commu- nity institutions, such as courts, schools, and hospitals. These contri- butions fluctuate between 6f and 26J copecks per one morg, according to the wants of a given community. As it is next to impossible to obtain the data enabling me to report on the pressure effected by tbe direct or indirect taxes, either in cer- tain branches of industry or upoD certain classes of the population of Poland, I therefore give only the following comparative table, showing the amount of taxes paid by the principal European countries, viz : Kubles per liead. Enssia 5.85 Poland 7.22 Italy 11.56 Belgium. 11.77 Austria-Hungary 11. 87 Germany 13.00 England 15.00 France 18. UO It is said that the expenses of collection of the taxes in Poland rep- resent about ^ per cent, of the total amount of taxes. Municipal taxes. The following kinds of taxes are collected by the municipal authori- ties in profit of the city of Warsaw: Taxes on immovable properties. — (1) The appraisement tax is collected at the following rate: On private immovable properties, yielding a rev- enue, whether liable or not to the government hearth tax, giving a gross revenue of less than 500 rubles, 2 per cetit. from their gross rev- enue; on those with a gross revenue of from 500 rubles to 1,000 rubles, 3 per cent.; ou those with a gross revenue of from 1,000 to 2,000 rubles, 4 per cent.; and on those with a gross revenue of 2,000 rubles or more, 5 per cent. On empty private places yielding no revenue, ^ per cent, from their appraised value. On government buildings and on those belonging to various government institutions, 5 per cent, from their gross revenue, which is considered as representing 6 per cent, from the insured amount of a building, and an addition to this amount of 50 per cent, for uninsured walls and grounds under such building. (2) The additional tax of 33J per cent, of the hearth tax is collected at the rate of 1.25 per cent, from gross revenue. Industry tax. — (1) The per-cent. tax on the commercial patents and license certificates, authorizing to carry on a trade or industry, is col- lected at the following rate: On tbe license certificates of the first guild, from their former price, 265 rubles, 50 per cent., or 132 rubles 50 copecks; on the license certificates of the second guild, from their former price, 55 rubles, 25 per cent., or 13 rubles 75 copecks. On the license certificates issued for the members of the mercantile families, namely, on those of the first guild, from their former price of 10 rubles, 50 per cent., or 5 roubles; on those of the second guild, from their former price, 5 rubles, 25 per cent., or 1 ruble 25 copecks ; on the commercial clerk first-class license certificates, from the former price of 20 rubles, 25 per cent., or 5 rubles. On the commercial billets for clerks of the first guild, from the former price of 25 rubles, 50 per cent., or 12 rubles 50 copecks; and on those of 592 REPORTS ON. TAXATION. the second guild, from their former price of 17 rubles, 25 per cent., or 4 rubles 25 copecks. On the stamped paper for the commercial passports of the first guild, from the former price of 1 ruble 50 copecks, 50 per cent., or 75 copecks j and on that of the second guild, from its former price of i ruble, 25 per cent., or 25 copecks. On the license certificates for the retail trade, from their price of 25 rubles, 10 per cent., or 2 rubles 50 copecks. On the industrial license certificates of the first class, from their price of 25 rubles, 10 per cent., or 2 rubles 50 copecks ; on those of the sec- ond class, from their price of 18 rubles, 10 per cent., or 1 ruble 80 copecks; and on. those of the third class, from their price of 9 rubles, 10 per cent., or 90 copecks. On the industrial clerk second-class license certificates, from their price of 6 rubles, 10 per cent., or 60 copecks. On the industrial license certificates for the retail trade, from their price of 8 rubles, 10 per cent., or 80 copecks. On the license certificates for tobacco manufactories, 75 rubles. On the license certificates for common smoking tobacco, Mahorka manufactories, 5 rubles. On the license certificates for wholesale store-houses of foreign and domestic leaf tobacco, except Mahorka, 62 rubles 50 copecks. On the license certificates for the sale, exclusively, of Mahorka leaf tobacco, 25 rubles. On the license certificates for the sale of tobacco products of the foreign and domestic manufacture, 12 rubles 50 copecks. On the license certificates for the sale of tobacco products of exclu- sively home manufacture, 3 rubles 75 copecks. ( I n the license certificates for the sale by peddlers of tobacco products of the home manufacture, 1 ruble 25 copecks. (2) On the license certificates, issued by the assembly of the justices of the peace, authorizing to act as a sworn attorney in legal affairs, 40 rubles. (3) The municipal tax on hackney coaches, omnibuses, and sledges is collected at the following rate, viz : On hackney-coaches and omnibuses, 10 rubles 80 copecks, and on sledges, 1 ruble 80 copecks. (4) The municipal tax of 50 per cent, from the price of the excise liquor patents is collected as follows : On the patents for wholesale store-houses of spirits, 300 rubles. On the patents for distilleries of rum and brandy, 600 rubles. On the patents for wine store-houses, 100 rubles. On the patents for taverns, 137 rubles 50 copecks. On the patents for the sale of spirituous liquors in restaurants, 82 rubles 50 copecks. On the patents for beer-houses, 15 rubles. On the patents for the sale of the domestic wines, 12 rubles 50 copecks. On the patents for buffets in railway and navigation stations and in clubs, 42 rubles 50 copecks. On the patents for buffets on places of public amusement and in theaters, 17 rubles 50 copecks. On the patents for mead-houses, 5 rubles. On the patents for buffets in bathing-houses, 10 rubles. On the patents for sutlers, 20 rubles. On the patents for the manufacturing of perfumery, 5 rubles. Miscellaneous taxes. — (1) On dogs, 1 ruble per head. RUSSIA. 593 (2) On horses kept by private persons, 6 rubles per head. (3) On the sojourn certificates, authorizing the inhabitants of other towns to freely reside at Warsaw, 15 copecks per every three months. (4) On half-yearly foreign passports, 5 rubles ; on half-yearly pass- ports for going to the Eussian capitals, 1 ruble ; on half-yearly pass- ports for going to all other towns of the Empire except the capitals, 60 copecks; on half-yearly passports for going to the towns of the King- dom of Poland, 30 copecks. (5) On the attestation of various acts and documents by the local police authorities, 10 copecks for each attestation. Indirecttaxes. — (1) On amusements and spectacles arranged byprivate undertakers and in their own behalf, 3 per cent, from the gross revenue. (2) On protested bills of exchange, debt bonds, and notarial acts, 50 per cent, from the price of the stamped paper, conformably to the reg- ulations of 1863. (3) On every thousand of cubic feet of gas used by private persons, 3 copecks per thousand. (4) On the civil lawsuits, decided by the justices of the peace, one copeck per ruble from the litigious amount, and besides this 10 copecks per each sheet of documents. (5) Turnpike tax. This tax is collected as follows : On each horse, mule, ass, bull, ox, and cow, 8 copecks per head. On hog and swine, 4 copecks per head. On each foal, calf, ram, sheep, and goat, 2 copecks per head. The same tax is collected from the railway companies at the following rate: On each passenger, IJ copecks. On 100 pounds of passenger baggage, 1 copeck. On each car-load containing 500 poods of goods, 80 copecks. On carriage and coach with trunks, 30 copecks. On carriage without trunks and on carts with merchandise, 20 copecks. On carts without merchandise, 10 copecks. On horse, mule, ass, bull, and ox, 10 copecks per head. On cow and young cattle, 7i copecks per head. On foal, swine, calf, sheep, and goat, 2 copecks per head. On poultry and farrows, 1 copeck per 100 pounds. Joseph Kawicz, United States Consulate, Consul. Warsaw, November 8, 1887. RUSSIAN FINANCE. REPORT BY MR. DERINQ. [Eeprinted from the English Consular Eeports.] REVENUE AND EXPENDITURE IN 1885-'87. The report of the comptroller-general of the Empire concerning the actual revenue and expenditure for the year 1885, and the estimates of the minister of finance for the year 1887, have recently been published. As has hitherto often been the case, the actual receipts in 1885 show a considerable diminution and the expenditure a considerable excess on the estimates for that year, which were forwarded from Her Maj- esty's embassy on the 28th of January, 1885. 594 EEPORTS ON TAXATION. According to the budget for 1885 the ordinary receipts, together with the " Becettes d'Ordre,"* were estimated at 780,032,821 rubles. The actual amount received during that financial period was as fol- lows: Bnbles. Arrears paid up in 1884 499,937.33 Amount received in 1885 743,286,240.54 Amount received during the period of grace allowed before the final closing of the accounts in 1886 18,496,664,88 ■ Total , 762,282,842.75 Being less than the estimated revenue by 17,749,978.25 rubles. The receipts showed a diminution on the estimates under 22 heads to the amount of 47,391,429.54 rubles, and an increase under 17 heads to the amount of 29,641,451.29 rubles, inclusive of a sum of 3,755,813.11 rubles, not foreseen in the budget. The principal items showing a decrease as compared with the esti- mates were: Drinks " Customs Land and capitation taxes Peasant laud redemption dnes Keceipts I'rom railways Forests Tobacco Royalties on mines Htdiles. 15, OOn, 332 11, 607, 226 8, 803, 286 3, 129, 019 1, 352, 036 1,280, 998 519, 085 515, 125 State mines Stamps Saleofstorea, etc Trading licenses Sale of state lands . . Mint Educational receipts Amonnt. J^ubleg. 495,255 315, 270 307,430 257, 854 161,373 132, 939 129,705 An increase occurred under the following heads : Amount. Amonnt. Keceipta applicable to railway obliga- Rubles. 12, 124, 260 3, 735, 6H0 2. 738, 106 1. 777, 001 1, 604, 091 1, 259, 915 454, 913 Rubles. 437,249 426,309 523,318 218, 833 Fishery and shooting licenses Municipal aud provLncial contribu- tions to treasury Sugar (not inclusive of drawback on 210,885 133,374 Tax on increased salaries of public 111, 145 Profits from credit operations Tax on passenger and merchaudise traffic per express trains * Tliis increase is due to the inclusion uiide tion dues. this head of 5,312,645 rubles for peasant land redemp* In order to make quite clear the item of " peasant land redemption dues," which occurs for the first time both on the credit and debit side of the account of revenue and expenditure in 1885, it may be useful to meutiou here that the expenditure incurred by the state under this head is made up by the interest and sinking fund on the large sum borrowed and handed over to the landed proprietors in 1861 (being four-fifths of the estimated value of their lands ceded to the serfs), *The " Eecettes d'Ordre " are derived from the sale of volumes of law and other state-published documents, and from the produce of state mines, etc., handed over to the ministries of vrar and marine, and are almost always exactly balanced by ths "D^penses d'Ordre." RUSSIA. 595 and of loans advanced to tlie peasantry for the cultivation of these lands, together with the local expenses connected with the supervision of the expenditure of such loans. The revenue is derived from yearly payments made by the emancipated peasants to the state in return for the land ceded to them, together with interest and sinking fund on any sums advanced to them for the cultivation of such lands. These expenses and receipts have hitherto formed the subject of a special return, and have now for the first time been included as regular items of the state budget. 138— J^o. 99 22 596 REPOKTS ON TAXATION. -.^H (O CO r— , O "1 CO ■OOOCDO]^4(M<=iCiOOOlOO . o (M'toco orTjTcr? CO cfTt-Tco'cf m" Q .Ci(M to-* c ■ oc»i— i(M-*Ka>(Mco-*cstoooio--f(M-*omco ■ CTOComoi— o . CM rp O l> .- no jToo'* in Oi ■ O tJ" 00 lO (Tl p I— o; lO Oi <=. ■ C~ 5D 00 CO O) _ r- r-l .-( .-( O CD . O) (M in C' -^ CD r- I O O CO O^ O O CO -1 m c-1 CO 00 03 ~- ■* CO C-CD to . _. -< CO t~ O CO Oi . 10 r-1 O -* CD 01 f-l ■^ ih o ~ 10 -*« - CO -3-00 -^ CO f [- (T-J -T O 1— I r -* CDCi CO .-' o ca CO ■* CO -* Oi fOCOCMt-COCDOCD>-'eO^(Mift-i^-* COiOi-HOt-COOOCOOCiCOtNCsl^Ht- OC^t^COCMOiOi-HO-Hmr-iCOOCO C-J CO >— I C3 CJ L- Oi I- 10 CD O .— t^ O ■ co'co^co' co" -^OO OOia-^iC^-^ ot~t-i— ic»(M--#incOT-i-*t-coc-i-i CROJlOOirH-^lOlOfM — CO'^Or-OOlM cooico?icDcocD>-HOcO'— cooomt- o" [r-^ cT o' oT r~" cd" cT cT o" (m' cT — CO lo" t-GCOOlOOJOCOi-fCOCOi-i-fCOOO Clt~OOClt~»OCO-^COCOCDOcOC^t-- coiT-'cT cm" N-rfocT i> ifT-* T*"co O-rHQOt-OCOiOOJiMCOCMiOCD-^CO COlOCD'7'.-.[MClOt35CO00C11-~ t-a> C^r-.C-Ji-H=ii0i-H00<0lr-COCD01C^CD CO O CO O CO CO c JlCOt- t-10-*"!j(C-( 03 t> t- OJ 03 00 CM CO ^ '^ CO 00 3 C— I>O-HC00JC0r- in ^ t-" COOrH OCi CO CM 10 O Ift lO'oift" COeOOTl^OiO)!0■^^ OSCDJOt-iOccOLO CO nl C^IUl O ^ji" q lOiOct 2 00 CMC- scTio c-mooji-iacD:'! ■ t-''[r--'iri'rH ©"rHCo'lri" ■■-itDC-COOJTti — CO COOOOCi-HOOCO'rflM >tt-00 lA CM CO CO oocMC^oinoTHio 'Q0CDI>l>O)t™OlO! ■t>OOC--^COi-lO-^Ji ' 10 cTi-TcT cfira" cocs Cs 00 oco — CO COQO • CM l> 00 O) CO o o ro ■ O 'J- r~- O CM o r- r^ ■ O t- 00 i-i tJI C O CO I ' CO ^i-Tco'cDinsTcn" I 'I— lOC-OCfflt-iOCl ■ CO CO 10 CO 10 ri c Cl -rf" ^ "H o ■ T. Tj 1- 2 ci w i .;:- © o ' '^ ^ fl c Q a z:, ■ 000. K X ^ : ci I' !S So® c t^.-^ =^ ; r <^ ^■/^.H'g^ o-O p p m ^- -" c o " ■ 3 s a .- ro o .2 ! a o r ■n = ^ ^ +^ c rsp^ M PI H RUSSIA. 597 It will be seeu from the foregoing that the actual revenue in 1885, viz, 762,282,84:3 rubles, exceeds that of all the previous years, and shows an increase over that of 1884 of 57,755,083 rubles. The reason for this large increase is the afore meutioned inclusion for the first time in 1885 of the operations connected with the redemption of peasant lauds. If the sum received uuder this head (viz, 46,608,388 rubles) be deducted, the revenue of 1885 only exceeds that of 1S8-1: by 11,146,695 rubles. This last increase over the preceding year, in spite of the decrease under the heads of drinks, land, and capitation taxes, customs, etc., is due to the returns from new taxes imposed in 1885 on industrial and com- mercial profits, which produced 3,602,350 rubles included under the head of trade licenses, by an increase of 13,963,798 rubles in railway profits, and by the inclusion under the head of miscellaneous receipts of 5,312,645 rubles from peasant land redemption dues (besides a sum of 9,468,000 rubles from the same source, carried to the credit of extra- ordinary resources). The decrease under the head of land and capitation tax in 1885 of 8,863,286 rubles as regards the estimates, and of 3,944,217 rubles in actual receipts as against those of the previous year, is attributed to the wretched crops in 18 important governments, hs well as to the fall in the price of cereals. (It has been stated that in the course of 1885 and 1886 rye was selliug in the provinces of the interior as low as 23 copecks per poo(l=36 pounds.) Agriculturists suffered further excep- tionally during 1885 from hail-storms, fires, and mortality among the cattle. The decrease in 1885 uuder this head as against the average of the five preceding years was 8.04 per cent, of the total revenue of those years, and exceeds by 2.38 per cent, their average (5.66 per cent.). With regard to drinks generally, the decrease of 12,773,200 rubles is divided amongst every category, and is fairly attributable to the decreasing means for purchase by the vast mass of the i^eople, owing to the depression both in commerce and agriculture. Besides this the imperial decree of May 14, 1885, diminishing the fees on the retail sale of spirits, made a difference of nearly 3,000,000 rubles in the returns under this head in 1885 as against 1884, and the new regulations con- cerning breweries of July 1, 1885, under which brewers are entitled, on making a deposit on account, to postpone the entire payment of their excise till the following year, told also adversely on this year's returns. The loss on tobacco is accounted for by a considerable reduction in the acreage under cultivation. The increase of 1,466,827 rubles of revenue under this head is due to increase of production in 1884-'85, viz, 11 per cent. In view of this increase measures were taken to encourage its export. Two impeiial decrees, dated July 12 and November 9, 1885, insured to exporters not only the re-imbursement of the excise, but a drawback on export fixed, firstly, at 1 ruble, and subsequently at 80 copecks per pood (36 pounds). Stimulated in this manner, the export of sugar assumed large pidjior- tions (4,415,718 poods in 1885).* The amount of reimbursement of excise duty reached 2,870,217 rubles, of which 1,238,030 rubles was covered by the sum allotted for the purpose in the estimates of 1885, and the remainder was advanced and carried to the debit of 1886. Deducting these 2,870,217 rubles for excise duty reimbursed from the actual receipts from sugar in 1885, the real produce under this head (not deducting drawbacks) amounted only to 10,992,375 rubles. In 1884 this sum was exceeded by 1,403,390 rubles. The receipts from customs in 1S85 produced 95,020,774 rabies. In *63 poods equal 1 tou. 598 REPORTS ON TAXATION. examining this branch of revenue since 1879, it will be seen from the subjoined table that the fluctuations during those years were insigDifl- .canc, with the exception of the year 1881, which is accounted for by the emx3t.>ing of bonded warehouses in 1880, consequent on the announce- ment of an increase on all duties of 10 per cent, to take effect from January 1, 1881. The customs returns in 1885 show an increase of scarcely 2,000,000 rubles compared with 1879, and this in spite of the numerous measures takeu during those six years to increase the tariff on a large number of articles, and to tax many which were hitherto free. Although the greater number of these measures were not for fiscal purposes, but chiefly to protect and encourage native industry, a considerable increase in the customs returns had been anticipated from them. This, however, did not turn out to be the case. It had been expected that on these measures coming into force an increase of some 30,000,000 rubles would have taken place after these years, which would have been specially noticeable in the returns for 1885, whereas the actual increase in that year over 1879 was scarcely appreciable. This is explained by the steady diminution in the import of foreign goods, and stagnation in every liranch of the export trade. Tiie following table shows the value of exports and imports during the above-mentioned period in Russian trade, not including Finland; Tear. Imports. Exporta. 1879 BuUes. 562, 087, 000 589, 733, UOO 485, 010, OOU 527, 512, 000 519, 137, 000 491, 649, 000 385, 697, 000 613,530,000 500,664,000 547,846,000 667,343,000 627,419,000 563,963,000 604,784,000 ]880 1881 18S2 1883 1S84 1885 This table is compiled for the years 1879 to 1884 from the "Eecueil du Commerce Bxterieur de la Kussie," and for the year 1885 from the ' liesume Sommaire du Commerce Ext^rieur de la Eussie a sa Frontiers Europeenne." This may partly account for the large apparent diminution in the imports in 1885, as it evidently does not include the very considerable item of tea imported very largely over the Asiatic frontier. The diminution in the import of the principal articles is shown as under: Imports. [In poods. J Articles. 1879. Tea Drinks TobacLO Salt Kaw rtn'tals Olive oil - Biirniug oils Wool Cotton yarn Articles of steel, iron, and block tiD Maeliinery Woolen stuffs Cotton {ijoodfl liiucn anil hemp... Silk floods 1880. IS.^4, 000 ,077,000 102,000 ', 050, OilO :, 503, UOO ,420,011(1 ,712,000 979, 0(10 875, 000 , 787, 000 :, 507, UOO 140,000 84, OOOi 964, 000 7, 000 1, 146, 000! 148, (}00i 1,373, Olio! 9, 000, (IIJO 12, 101, 00(1 : 1,453,000' 1,446,000 822, liool 568, OIKl, 1, 6.54, 000 4, 016, (lOir 135,0001 92, noil! 027, 000| 8, 011(1 625, 000 8U«, 000 75, OOO 838, 000 974, 000 98, 000 1883. 148,000 10,291,00(1 14,310,000 22,721,000 1, 095, OOOl 1, 177, 000 1, 204, 000 748, 000 381, 000 1, 894, 000 1,419,000 8;>, 000 70, 000 662, 000 5,000 1, 039, OUO 808, 000 355, 000 2, 3,50, 000 1, ,S!lll, 000 92. COO 74, 000 200, OOO 6,00 1 907, 988, 88, 9,47(1, !2, 962, 1, 490, 449, 611, 226, 1885. Differeni* between 1879 and 989, 000 1, 062, OOOl 83, 000' 5, 330, OoO 2, 000124, 456, 000 18, OOOi 1, 4(J0, 000 ), Olio, 2(JO,(l00 000 503, OOO; 000 160, OOO 1, 718, 000 1, 858, 000 69, OOO 6 1 , 000 222, OOO 5, 000 770.000 84,000 74(1,000 337,000 78 000' 24,000 64H,0UU 6,403,000 970,000, 9,533,000 006,000; 324,010 134,000, l,578,»li; 626.0001 353,000 17'> 000 703,000 1,473,000 1,224,000 1,590, OOO' 1,370,000 51), 000 51,000 49, OOul 44, 000 290, 000: 369, 000 5, (100 5, 000 RUSSIA. 599 The large increase in the item of legacy and free-gift duties in 1884 over 1885 was due to an exceptional windfall in the former year of nearly 2,000,000 rubles on the succession of Baron von Stieglitz. Although the returns from the tax on express railway transport shows a nominal increase in 1885 of 573,470 rubles as against 1884, this is only due to back payments received during the former year. There was a decrease in the number of passengers in 1885 of 544,592 as compared with the previous year, the receipts in 1885 being also actually less by 89,195 rubles than they were in 1884. The increase in the returns from the post and telegraph services in 1885 is due to the steady extension of {he facilities afforded to the pub- lic to make use of them. There is an increase on the profits from seal shooting and various fish- ery hcenses of 475,823 rubles as compared with 1884. The "Eecettes d'ordre" show a decrease of 1,159,679 rubles in 1885 as against 1884, owing to the returns from the imperial printing and sta- tionery offices not being included under this head in 1885. A corre- sponding reduction will be found in the expenditure under this head. Extraordinary receipts. The receipts under this head provided by the budget were 84,760,(342 rubles, derived from — Kubles. War indemnities 3,125,000 Peasant land-redemption dues 9, 468, 000 Issue of 5 per cent, stock 50, 000, 000 Realization of certain railway obligations 22, 167, 642 Total 84,760,642 Of this there were actually received in 1885 : War indemnities — Eublea. FromKhiva 150,000.00 On account of war indemnity from Turkey (being less than the sum estimated by 377,571.75 rubles) 2, S97, 428.25 Peasants' redemption payments 9, 468, 000. 00 Eecei ved for Bank of Russia 50, 000, 000. 00 Realization of railway obligations (or 22,148,375.76 rubles less than the estimates, nearly the whole of this item having figured in the returns for 1884) 19,266.24 Total 62,234,694.49 Eeceipts not taken into account in the estimates : Treasury bonds 3,200.00 Perpetual deposits 481,462.00 Eepayment of advances to railways 8,899, l-;4. 09 Total 9,383,786.09 Total of extraordinary receipts in 1885, 71,618,480.58 rubles. Besides the above-euumnrated ordinary and extraordinary receipts, there is a remanent of 3,127,537.32 rubles now available from the re- sources of 1881, which has been carried to the credit of supplementary receipts to cover ordinary expenses of 1885. EXPENDITUEE IN 1885. The provisions of the budget for ordinary expenditure amounted to 788,294,696 rubles, and, deducting 1,501,534 rubles for "Dt^penses d'ordre" (which are, as usual, covered by the receipts under the same head), there remain 787,793,162 rubles. 600 REPORTS ON TAXATION. Supplementary credits added 31,695,844.07 rubles to this sum, making a total of 819,189,006.67 rubles. The actual expenditure jucurred amounted to 806,614,346.46 rubles distributed as follows : Payments made in advance during — Rubles. 1884 10,938.192.88 1885 -- ; €96,923,609.60 1H86 (before the final closing accounts for past year) ^6, 738, 576.30 Remanent still unpaid 72, 013, 96?! 70 Total 806,614,346.16 Unused credits to the amount of 12,, 114,771 rubles as against 6,316,795 rubles. The sum, for in- stance, allotted in the estimates for 1885 for the payment or guaranties to railways was less by 1,416,000 rubles than the sum allotted in 1884, but was found deficient by 2,191,507 rubles. Of the unexhausted credits (12,874,660.21 rubles) in the year 1885, over 5,000,000 rubles had been set apart for the use of the ministry of war. The total actual expenditure, as audited, of 1885 amounted to 806,- 614,346 rubles, showing an increase in the great spendiug departments of 21,821,184 rubles over the provision made for themiu the estimates, or, deducting the 3,000,000 rubles specially allotted to cover certain de- ficiencies, expenditure exceeded estimates by 18,821,184 rubles. The following table gives the actual expenditure incurred from 1879 to 1885, inclusive : Actual expenditure. Heads of expenditure. Public debt Great bodies of the state Holy synod and ortho- dox Vorship The Emperor'shouse- hold Ministry for — foreign affairs . . . War Marine Viuance Ministry of^ Domains Interior Public instruc- tion Means of com- mnnication Justice Imperial .nudit oilice. . Imperial direction of stads Supplementary pay- ments Total 1881. 1882. 1883. Rubles, i Mitbles. \ Rubles. I Rubles 171, 283, -lU m, 975, 550 194, 581, 103 199, 870, 056 2, 100, 690 10, 166, 239 2, 220, 133 2, 165, 953 '.0, 334, 937J 10, 304, 493 2,206,4); Rubles. Rubles 200, 701, 658 209, 875, 285 2, 010, 779 10, 406, 796 10, 573, 403 2, 186, 903 10, 599, 856 10, 560, 000 11,849,278' 11,106,830 10, 342, 350J 11, 461, 752[ 12,071, 4 ] 70. 170' 4, 806, 782 4, 22!, 640' 4, 206, 310' 4, 276, 056| 4, 467, 013 188, 284, 952:209, 5u6, 409 226, 829, 0r,6 202, 233, 935 201, 596, 734 199, 666, 434 27,328,032 29, 353, 6.S1 30,460,055 30,998,065 30,963,278 34,842,648 95,848,207 19, 209, 497 62, 972, 624 17,371,100 12, 260, 349 17, 871, .574 2, 287, 386 888, 910 989, 872 644, 882, 130 101, 266, 200 21, 649, 694 72, 441, 914 lis] 647, 178 110, 012, 106 102, 655, 300 20,959,003 20.827,888' 20, .569, 416 66,647,641 69, 996, 117| 70, 455, 542 17, 938, 651 18, 540, 596! 19, 135, 938 13,285,301 12,456,157 11,180,304 18 387, 674' 18, 416, 277^ 18, 866, 175 2, 396, 629, 2, 316, 9711 2, 473. 976 938,914; 934,388; 941,278 932,756 1,044, 079j 1,842,252: 1,391,429; 2,335,414 97, 336, 209 21, 830, 378 71, 684, 025 1886. Rubles. ►263, 694, 663 2, 137, 876 10, 717, 361 10, 560, 000 4,119,518 206, 651, 930 38, 871, 873 tl08, 253, 736 22, 831, 258 71, 330, 320 20, 349, 299 20,897,763' 21,816, 514i 22,948,787 19,558,961 19,084,3241 20,146,631 2,774,394 3, 018, 518i 3,093,040 1, 018, 054 695, 549, 392 734, 255, 402:709, 052, 685 723, 673, 268 727, 902, 678 +806, 614, 346 "Inclusive of 65,417,757 rubles for peasant land redemption, t Inclusive of 1,843,467 rubles for peasant land redemption. JInclBsive of 57,261,224 rubles for peasant land redemption. 602 REPORTS ON TAXATION. From the above figures it will be seen that the total expenditure of 1885 exceeds that of 1884 by 78,711,671 rubles. This increase is due, as aforementioned, to the insertion in 1885, for the first time, of 57,261,244 rubles for the redemption of peasant lands under the heads of public debt and fiuance. With the deduction of tbis particular item, the ex- penditure in 1885 only amouuted to 749,353,12-' rubles. Extraordinary expenditure. The budget estimates for this expenditure amounted to 77,000,301 rubles, of which 27,000,301 rubles were for construction and ameliora- tion of railways and harbors, and 50,000,000 rubles annuity to the Bank of Russia, in re-imbursement of advances made by that establishment to the Imperial treasury. With regard to railway construction, a supplementary credit was given in the course of 1885 of 30,02'( ,768.57 rubles, which, added to the original estimates, made up a total of 57,028,069.57 rubles. The actual sum expended under this head was 56,523,522.60 rubles, and was distributed as follows: UnbleB. Payments made in advance in 1884 6, 275. 00 In 1885 .31,009,629.43 In 1886 (before tlie accounts were closed) 12,298,863.64 Remain unexpended 13,209,054.53 Total 56,523,822.60 This expenditure exceeds that of 1884 (37,930,027.72 rubles) by 18,593,794.88 rubles, and was under the following heads: EuWe's. Railway construction in Poland and neighboring Governments 9,745,709.00 Transcaspian railway 9,577,104.17 Acquisition of railways by state 2,525,567.15 Manufacture of railway plant, rolling stocl!:, etc 14, 427, 236. 10 Amelioration of ports of Batoum, Reval, Libau, .ind otbers 6,871,318.00 By the ukase of January 1, 1881, the debt owing to the Bank of Sussia, which at that date amounted to 400,000,000 rubles, was to be repaid in eight annual installments of 50,000,000 rubles. A sum of 36,000,000 in metallic rubles, in 5 per cent, stock, was handed over in 1885 as an equivalent to the installment of 50,000,000 credit rubles due in that year. This arran gemeii t was made in accordance with the terms of an Imperial ukase of J uue 8, 1884. BALANCE OF 1885 BUDGET. The ordinary expenditure for the year, as estimated in the above budget, was 789,294,690 rubles, exceeding the estimated ordinary re- ceipts by 7,760,341 rubles, these latter having been estimated at 781,534,355 rubles. As has been shown in the foregoing pages, the actual balance was as follows: Ordinary expenditure. Payments made 734,600,378.76 Payments still due 72,013,967.70 Total 806,614,346.46 Ordinary receipts 762,282,842.75 Deficit 44,331,503.71 RUSSIA. 603 In adding, however, to the revenue the sum of 3,127,537.32 rubles (al- luded to In a former paragraph as a surplus, now available, from 1881) its total rises to 765,410,380.7 rubles ; the excess of ordinary expenditure over receipts is reduced to 41,203,9(JG.39 rubles, and the difference be- tween the estimated and actual deficit to 33,443,625.39 rubles. Extraordinary expenditure was estimated at 77,000,301 rubles, to be covered by extraordinary resources. The expenses actually incurred amounted to 93,314,768.7 rubles, which, jdus the amount still remain- ing to be paid, viz, 13,209,054.53 rubles, give a total of 106,.523,822.(iO rubles. The extraordinary resources, on the other hand, produced only 71,618,480.58 rubles, leaving an excess of extraordinary expenditure over receipts of 34,905,342.2 rubles. The total, therefore, ot ordinary and extraordinary expenditure in 1885 amounted to 913,138,109.6 rubles, and the total receipts to 837,- 028,860.65 rubles, showing an actual deficit of 76,109,308.41 rubles against a deficit in 1884 of 116,891,997.1 rubles. On the 1st of January, 1885, there appears to have been in hand a credit of 122,613,764.67 rubles for ordinary and extraordinary payments due, which had not yet been made. Ot this amount there was paid away daring the year 1885 the sum of 67,283,119.48 rubles. There con- sequently remained on the 1st of January, 1886, a balance of 55,330,- 645,19 rubles in the treasury, which, added to tJie amount unexpended during 1885 of 85,-223,022.23 rubles (made up of 72,013,976.70 rubles on the ordinary, and of 13,209,054.53 rubles on the extraordinary account), together made up a total of 140,553,667.42 rubles. BCDGET FOR 1887. The revenue and expenditure for the year 1887 is summarized by the minister of finance as follows: Rubles. Hublea. Ordinary receipts 793, 118, 046 Extraordinary receipts : War contributious 3, 464, 115 Perpetual deposits in the Bank of Russia 862, 000 Repayment of advances to railway companies Ij 625, 000 Assets available from liquidation of old credit establish- ments 9, .500, 000 Treasury balances 27, 05.8, 634 Bank operations for construction of railway s and ports . . 42, 463, 079 — 84,972,828 "Eecettes d'Ordre" 3,250,798 Total 881,341.672 Expenditure : Ordinary expenditure 829,676,080 Extraordinarv expenditure for railways and ports 48, 414, 194 "Dispenses d'Ordre" 3,250,798 Total 881,341,672 Eeceipts. — The minister of finance observes that, in comparison with the estimates for 1886, those for the i)resent year show an increase of 5,yil,6s0 rubles, made up of an increase under twenty heads of revenue of 96,223,286 rubles, and of a decrease under eighteen heads of 90,911,- 606 rubles. An increase of 2,109,000 rubles is anticipated from trading licenses ; of 697,000 rubles on the 5 per cent, tax on funded ])roperty, on account of its extension to certain railway shares hitherto exemiit; of 2,000,000 rubles from the sugar excise duty; of 15,026,000 rabies from customs 604 REPORTS ON TAXATION. duties, owiug principally to the increased relative value of the gold ruble, now reckoued as equivalent to 1.67 rubles credit ruble, instead of 1.50 rubles, as hitherto ; of 590,000 rubles from the express railway.pas- seuger and merchandise tax, on account of the extension of the net- work of railways ; of 144,000 rubles from the tax on flre-insurance pol- icies ; of 562,000 rubles from postal receipts, and of 728,630 rubles from telegraph receipts. Mines are expected to return more by 1,144,779 rubles, railways to show an increase of 193,160 rubles, and the pay- ments for peasant lands redemption of 1,304,174 rubles. An increase of 48,922,096 rubles is further anticipated from aug- mented payments by peasants belonging to the domain lands for the redemption of the lands ceded to rhem. In 1886 these payments amounted to 32,818,000 rubles. The capita'tion tax (now abolished) was estimated to yield 19,128,000 rubles in 1885, in lieu of which an aug- mented [tayment has to be made by the peasants of 16,218,000 rubles; of 38,431,067 rubles from securities belonging to the treasury, and from operations of the Bank of Russia; of 3,411,808 rabies from miscella- neous receipts, consisting chietly of arrears of capitation and other taxes ; and. tinally, of 363,750 rubles from various fees. A decrease is expected in the following items of revenue as compared with 1886 : From land and forest taxes a decrease of 51,335,838 rubles, owing to theloss of 19,128,000 rubles from the old capitation tax, and of 32,818,000 rubles hitherto paid by ]>easants for land redemption in yearly install- ments, and now included under a separate heading. Against these losses must be set a gain of 600,000 rubles on the Khirgiz tribute. In spite of the favorable prospects of the wheat crop in various parts of tliu Empire, and of the limitation on July 1, 18S(i, of the distillery liceiu'.es, a decrease of 14,102,900 rubles is expected in the revenue from drinks, based on a calculation of the returns under this headof theflrst six months of 1886. On the same grounds a decrease is anticipated in the returns from the legacy and free gift duty, of 2110,816 rubles from the tax on mines, of ' 190,660 rubles from coinage, of 123,427 rubles from the tax on eccle- siastical property, of 376,709 rubles from state forests, and of 114,571 rubles trom sales by the state of gunpowder and other articles. From the average returns of the last three years a decrease is ex- pected in the state share of railway profits on private lines of 577,280 rubles, of 4,347,260 rubles from repayment of advances inade by the state, and finally a small decrease in tobacco, excise, stamps, and other items, amounting in all to 119.526 rubles. Ordinary expenditure. — Compared with the estimates for 1886, those for the present year show an increase of 16,887,934 rubles, eight ad- ministrative departments showing an increase in their expenditure of 23.037 928 rubles against five departments showing a decrease of 6,149,994 rubles. The muiister of finance anticipates an increase in the charge for the public, debt of 18,946,529 rubles. This is principally due to the incor- poration into the budget of 17,491,000 rubles on 5 per cent, bank paper of the first issue of 1859 (to be paid off), and increase of interest on deposits from the old credit establishments; to a charge of 5,000,000 rubles for interest on the perpetual 5 per cent, railway stock issued in 1886; to a sum of 4,130,000 rubles held in readiness to pay treasury bonds due, but not presented for payment, both previous to 1885 and during 1886; and to 11,552,000 rubles for increased loss by exchange in payments to be made in gold (the gold ruble being now worth 1.0" RUSSIA. 605 rubles credit), these payments now amounting to 38,173,000 rubles. Against this increase is to be set a sum of 19,290,000 rubles, uot in- cluded in the estimates, refunded by the treasury to the Bank of Rus- sia, chiefly in payment of sums due by landed proprietors to the de- funct county banks. An increase of 355,745 rubles under the head of ministry for foreign affairs is accounted for by the increased depreciation of the value of the paper ruble, causing loss by exchange to this amount on payments made abroad. The expenditure of the ministry of war shows au in- crease of 2,631,440 rubles, of which 724,000 rubles are for the costs of the Transcaspian railways, and about 3,000,000 rubles for pay and equipment of troops. The items of rations and forage, on the other hand, show a decrease of about 2,000,000 rubles. The ministry of the interior shows an increase of 683,248 rubles, cliiefly owiug to improved administration in tlje provinces; the ministry of justice an increase of 296,895 rubles; and both the imperial audit office and the direction of studs show a slight increase on the estimates of 1886. A decrease of 5,142,800 rubles is anticipated in the expenditure of the ministry of finance; as, in spite of an increase of about 3,500,000 rubles in the item of pensions and subsidies to railway aud other companies, there will be a decrease of 3,500,000 rubles in there-imbursementof the excise duty on sugar, and of 3,000,000 rubles in the drawback on ex- ported sugar. There will be further a decrease of 1,433,000 rubles in the expenses of preparing of&cial documents, to which is added a sav- ing, under the item of salaries to excise officers, of 213,000 rubles. The ministry for domains shows a decrease of 218,337 rubles, the ministry of pub ic iostructiou of 144,012 rubles, the ministry for ways and commuuicatioDS a decrease of 610,536 rubles, and tbo expenditure conuected with the great bodies of the state (seuate, council of the em- pire, etc.) is less by 34,309 rubles. Extraordinary expenditure. — Of the 48,414,194 rubles provided for under this head, 30,197,000 rubles are destiued for the construction of various lines and brauch lines of railway, inclusive of a charge for the Tran.scaspian line, 5,458,000 rubles for material and working of state railways, 4,061,000 rubles for material and working of private lines (in which the state has a share), 4,800,000 rubles for the purchase of rail- ways by the state, aud 3,710,000 rubles for the improvement of ports and harbors. Bepenses d'Ordre. — These expenses, occasioned by the printing of volumes of laws, records, by the working of Htate mines and metallurgic establishments, and amounting to 3,250,789 rubles, are, as usual, pro- vided for in the estimates by the "Eecettes d'Ordre," described under similar headings. The minister of finance points out that the deficit in the ordinary ex- penditure of 36,5U0,0(J0 rubles is entirely covered from ordinary resources, and that the extraordinary expenditure of 48,00it,000 rubles is ex- clusively devoted to reproductive objects. This latter exjienditure shows a decrease of 20,000,000 rubles as compared with that of 1880. It must not be forgotten in considering the budget of 1887 that a sum of 52,000,000 rubles has been set apart for the extinguishing of public debt. M. Buuge then reviews the various expedients for increasing thi' revenue, among which is a state monopoly of the sale of alcoholic drinks. He objects to this plan on the grounds of its having been 606 REPORTS ON TAXATION. already tested on several occasions, and always abolisbed on account of the insufficiency of returns, and on the score of the general demoral- ization which It produced. The prolits of the present salesmen would never be made by the state. The expenses of rent, " personnel," and personal expenses, would be as great in the one case as in the other; besides the extra expense of control and any profits now made in con- sequence of adulteration or fraud would benefit not the state, but only its dishonest employers. Inquiry is being made as to whether a monopoly on the sale of to- bacco is likely to be i^rofltable to the state, but it is feared that such a measure would check the development of the growth of tobacco in Russia, as has been the case in Turkey. The miiiister holds that any farther purchase of railways by the state would not yield an increase of revenue to the Government; firstly, on, account of the large sums which would have to be disbursed in the purchase of " paying" railways; and further, on account of the incessant and conflicting interests of the industrial and commercial bodies as re- gards rates of transport, with which the state would have to deal. His excellency counts on an increase in the returns from drinks in consequence of the additional copeck of excise duty, this being now 9 copeclis per degree of strength instead of 8 copecks. His grounds for this expectation are that when the excise duty was raised to 8 copecks, the revenue returns from drinks showed, in 1885, an increase over 1883 of 21,000,000 rubles, and he trusts that the extra copeck and a possibly more favorable season for cereals may give an addition to the revenue under this head of from 20,000,000 to 40,000,000 rubles. He further hopes that the abolition of the excise oa salt and the abolition of the capitation tax will have increased the spending power of the masses of the population. A very important modification has been made concerning the Bank ofEussia. This establishment has taken over the accounts of the old credit establishments throughout the counti-y, now abolished, by which proceeding a sum of about 23,000,000 rubles (after all the expenses of the liquidation of these establishments had been paid) was available for use by the state. Iti other words, this sum enables the budget for 1887 to show a better front, or, as M. Buuge expresses it, "gives additional clearness and Nimplicity to the bank accounts." This transaction (as well, indeed, as the whole of this last budget of M. Bunge's, issued shortly before his resignation) has been much criti- cised by his financial opponents as being a mere temporary expedient, and one which can have no permanent effect. This sum of 23,000,000 rubles, once expended in partly covering the deficit in 1877, disappears, and a deficit to the same amount will have to be provided for in some manner in the estimates for 1888. It is, they contend, a mere shuffling of accounts, involving nothing more than a change in the manner of book-keeping. The establishment of the agrarian bank for the landed proprietors, which was opened in 1886, has now twenty -five branches o[)en in thirty- two different provinces. Up to the 1st of December, 1S8G, it had inves- tigated 2,331 demands for loans, and grunted them to the amount of 70,000,000 rubles. Iiidepenck-ntly of its directly beaeflting the laud owners, the "Bauque de Noblesse" has, by its action, materially reduced the difficulties under which they labored in obtaining loans from the or- dinary country banks for long periods. The peasants' agrarian bank oiJi-ned seven new branches in 1886, and RUSSIA. 607 is now at work in 34 provinces. On the 1st of December, 18S6, they had advanced a sum of 42,000,000 rubles. The influence of this bank has been felt in preventing a depreciation in the value of the land in the market, which, for want of the facilities offered by the bank to the peasants to enable them to purchase, might have been sold at prices not remuner- ative to the sellers, and it has in this way largely influenced the ques- tion of emigration, by enabling peasants to settle on their own lands. A project for extending these banks to the kingdom of Poland has been submitted to the ministry of the interior and the governor-general of Warsaw for api)roval. So far as could be ascertained from the returns up to December 1, 1886, the movement of commerce did not appear unsatisfactory to the minister of finance, the amount of exports during those eleven months having exceeded the imports by 43,000,000 rubles. Imported. | Exported. Rubles. I Buhles. Over the Finnish, frontier 9, UOoi 000 ' IQ, OOO', 000 13,000,000 ' 28,000,000 ''G 000 0()0 i 9 000 000 Over the Transcaucasian and Astrakhan frontier Vialrkutsk Total 404 000 OOl) ' 447 000 000 The export of cereals has, however, decreased in the same period by 66,000,000 rubles, while the imports during tlie eleven months of 1886, compared with the corresponding period of 1885, show an increase of 6,250,000 rubles. The principal articles of import showing an increase are (cotton 9,000,000 rubles) and tea (8,000,000 rubles). The import of manufactured articles has diminished by 3,000,000 rubles, of wine by 3,333,000 rubles, and of coal by 2,200,000 rubles. It will have been noticed that the recognized ofBcial value of the gold ruble is now 1.67 rubles, as compared with the credit ruble, and it is at this rate that the customs duties, and loss by exchange on payments made abroad, have been calculated in the budget for 1887. It may facilitate calculation to take the figures in rubles in the 1887 budget as worth 11 rubles to the pound sterling, the exchange a^■eraging at Is. 10(Z. to the credit ruble during the last six months, whereas for the accounts of 1885 the figures in rubles should be taken as worth 10 rubles to the pound sterling, the exchange during that year having averaged 2s. to the paper ruble. The amount of credit rubles in circulation on January 1, 1880, is stated to have been 716,433,349 rubles, to which must be added 330,- 000,000 rubles remaining from the 416,000,000 rubles issued during the late Eusso-Turkish war, which latter sum was to Ijave been regularly destroyed and canceled, according to a ukase of June 8, 1881. This makes a total of 1,046,433,349 rubles in paper in circulation on that day. Of the war issue of 416,000,000 rubles, 86,000,000 rubles have already been destroyed. On January 1, 1887, a similar amount, viz, 1,046,433,349 rubles, ap- pears to have been in circulation, as, although there was no new issue, the state of the finances in Russia had not admitted of the annual in- staflment of 50,000,000 rubles being paid over to the bank for destruc- tion in the year 1886, an option being left to the minister of finance in this respect iu the original ukase of January j, 1881. 608 EEPORTS ON TAXATION. On the date of December 22, 1886, the imperial treasury had at its disposal the followiug resources : Current account in paper. Babies. Rubles, after deduction of payineiits fine January 1, 1H87 21,000,000 In gold (reckoned a,t 1.67 rubles credit to 1 ruble gold) from customs-.. 14,973,000 Seeuritie.s bearing interest 13,317,000 At tbe mint, in go'd and silver bars and small i oin (reckoned in credit rubles) 26,581,000 Abroad in gold at foreign bankers, reckoned in credit rubles 29,496,000 Total 105,367,000 The following tables give in detail the estimated revenue and ex- penditure for ls87, as compared with those of 188G.* It must not, however, be left out of cousideiiitioii that no supple- mentary credits iii)pear in the budgets for these two years. In 1885, the last year for which thd accounts are actually closed and audited, these supi)lementary credits amounted to no less than 31,095,844 rabies, and there does not seem any reason why credits to a somewhat similar amount should not, as usual, crop up in the coiir.se of the year, which will have to be jtrovided for by the present minister of finance. BANK-NOTE CIRCULATION AND PUBLIC DEBT IN RUSSIA. In connection with the remarks made in my previous report on the subject of the amount of paper rubles in circulation in Russia, which were based on official returns, I have now been enabled, by the courtesy of persons interested in the finances of Kussia, to supplement this infor- mation by further details tending to throw a clearer light on the actual financial position of the country. According to official returns the number of bank-notes iu circulation on the 1st of January, 1880, was 716,433,.349 rubles, plus 330,000,000 rubles of the 1,040,433,349 rubles extraordinary war issue during the Eusso-Turkish conflict. These returns, however, do not allow for the reserve of unemployed notes iu the Bank of Russia on the same date of 139,389,533 rubles. The amount of gold and silver coin was — Enbles. In the issue department 171,472,495 In the commercial department 77, 736, 240 Together in metallic rubles 249,208,735 There existed consequently in Russia bank-notes in actual circulatiou on January 1, 1886, to the amount of 907,343,816 rubles (the amount of the notes held in reserve by the bank, viz, ]39,389,5;>3 rubles, being deducted from the total amount in circulation, viz, 1,040,433,349 rubles). The total amount of bank-notes in circulation not covered by gold, or silver coin, or bullion (1,046,433,349 rubles, minus 139,389,553 rubles, and 249,208,735 rubles), was therefore 657,835,071 rubles. The difference between these figures and the amount indicated by Government in the appendix to the budget statement of the minister of finance for 1885, viz, 694,960,853 rubles, arises from the following cause: The Government, iu arriving at this amount, take no account either of the gold and silver bullion in tiie commercial dejiartment of the bank, * The tables nn-jitioiu'd are not reprinted. RUSSIA. 609 amounting to 77,736,240 rubles (as this fund is technically supposed to be at the disposal of the bank for commercial purposes), or of the note reserve, amounting to 139,3S!J,5:i8 rubles; and, on the other hand, only admit their liability to the Bank of Eussia on January 1, 1886, to be 150,000,000 rubles, on account of the war issua of 416,000,000 rubles in- stead of 330,000,000 rubles, which it practically is, and which sum is represented by paper rubles in circulation. The Goveruuieiit allow these latter to amount to 716, 433,349 rubles to which they add the 150,000,000 rubles, admitted to be due, making a total of 866,433,349 rubles. From this they subtract 171,472,495 rubles, being the amount of bullion in the issue department of the bank, and arrive at the total of 694,960,354 rubles. The following summary of the transactions which have taken place with regard to the above-mentioned war issue, will clearly explain why the Government consider only 150,000,000 rubles are still due by them under this head, instead of 330,000,000 rubles. The ordinary bank-note circulation in Russia has not, for several years past, shown any great variation. During the late Eusso-Turkish war the Government, short of funds, borrowed money from the Imperial Bank, and the latter, to cover its advances, issued bank-notes to the amount of 416,000,000 rubles over and above the then existing amount in circulation. When the war accounts came to be settled by means of public loans,, the above 416,000,000 rubles were not included in the amounts covered in this manner, so that they remained as a iioating debt. Seeing the inadvisability of allowing this state of things to continue,- the financial authorities obtained the publication of an ukase on January 1, 1881, in virtue of which the sum of 16,000,000 rubles were immedi- ately re imbursed to the bank by the Treasury, and the remaining 400,- 000,000 rubles were to be reimbursed by eight annual installments. The ukase stipulated that, as soon as the bank received these payments from the Treasury, it was to withdraw a corresponding amount of bank- notes from circulation, and ultimately burn or destroy them, as the state of the money market might allow. The whole arrangement was made with a view to better the state of the exchange, and it undoubtedly would have had this effect had it been possible to carry out the original intentions of the ukase. Instead, how- ever, of making the reimbursements from surplus funds, the Gov^eru- ment (never having had any surplus funds to dispose of) was obliged to raise loans to re-imburse the bank, simply substituting one form of debt for another, i. e., instead of borrowing Irom the public, against bank- notes, the Government borrowed against interest-bearing stock. Up to the present the following has been the manner in which the first part of the above-mentioned ukase, viz, the reimbursement by the treasury to the bank, has been carried out: At the commencement of 1881 there was re-imbursed to the bank the sum of 16,000.000 rubles out of funds existing at the treasury. At the end of 1881 50,000,000 rubles were reimbursed by the issue of the Sixth 5 per cent. Billets de Banque Loan. At the end of 1882 50,000,000 rubles were paid over out of general funds, which were, however, the ]troceeds of a loan. At the end of 1883 another 50,000,000 rubles were re-imbursed to the bank by the issue of 6 per cent, non-redeemable gold rente. At the end of 1884 a further 50,000,000 rubles were provided for the bank by the issue of 5 per cent, non-redeemable i)aper rente. At the close of 1885 the 50,000,000 rubles were re-imbursed by the 610 REPORTS ON TAXATION. issue of 5 per cent, non redeemable gold rente, leaving nominally daeto the bank on January 1, 1886, the sum of 150,000,000 rubles only, as put forward in the Government statement. At the close of 1886 a sum of 50,000,000 rubles was handed over to the bank from the issue of a similar 5 per cent, non-redeemable gold rente. These sums make a nominal total of 316,000,000 rubles, so that on the 1st of January, 1887, the Government considered that only 100,000,000 rubles remained to be reimbursed so as to cancel the whole amount of 416,000,000 rubles, so far as the accounts between the treas- ury and the Bank of Eussia were concerned. With regard to the second and practical part of the arrangement, i. e., the destruction of the bank-notes themselves, up to the present date (February, 1887) the bank has actually burnt 87,000,000 rabies— 3,000,000 rubles on June 6, 1884, and 27,000,000 rubles on January 12, 1885 — so that there still remain about 230,000,000 rubles out of the 316,000,000 rubles re-imbursed by the treasury to be destroyed. PUBLIC DEBT. The total amount of the public debt of all descriptions is stated to have amounted on January l, 1886, to 5,186,194,196.59 rubles, and on January 1, 1885, to 4,467,453,670.18 rubles, so that there would appear to have been an increase of 718,740,526.41 rubles. In reality, however, this was not the case, and the difference arose principally from the fact that the general statement of the debt on January 1, 1886, included several loans in connection with the liberation of the serfs, which were formerly dealt with separately. In adding, therefore, to the amount of debt on January 1, 1885, of 4,467,453,670.18 rubles, the total of these liberation loans, viz, 756,165,- 207.21 rubles, we get a total of 5,223,618,907.39 rubles as the real amount to be compared with the figures of 1886. During this last year no new loans of importance were contracted, An issue of 36,000,000 rabies of 5 per cent, metallic stock was authorized to cover the 50,000,000 of paper rubles, which had to be re-imbursed to the Bank of Eussia, in accordance with the stipulations of the ukase of January 1, 1881. As this arrangement, however, only constituted the consolidation of a portion of a floating debt, bearing no interest, into a 5 per cent, loan, the actual liabilities were left unchanged, except in so far as that the amount of 36,000,000 rubles having been included in the statement of debt at the rate ofexchangeofl.50 rubles (paper) to the metallicruble, the face amount slightly increased. Thus: 36,000,000 of metallic rubles, at . 1.60 rubles, paper, is equivalent to 54,000,000 of paper rubles, against which re-imbursement only 50,000,000 rubles were written off by the bank. Adding these 4,000,000 rubles, plus sundry small loans amounting together to 561,843 rubles (paper), to the sum of 5,223,618,907.39 rubles above quoted, we arrive at a total of 5,228,180,390.39 rubles (paper). From this amount should be deducted the total of debt redeemed in 1885, viz, 41,956,193.30 rubles, and there remains the amount of paper or credit rubles originally indicated of 5,186,194,196.59 rubles. In other words, the public debt during 1886 increased by 4,561,483 rubles for new loans, and decreased by 41,956,193 rubles applied in re- demption of old loans, leaving per balance a decrease of 37,394,710 rubles, paper. It is important to take into consideration what proportion of this public debt of 5,186,194,196 rubles was issued in gold or metallic rubles, RUSSIA. 611 and what amouut in cieayment must be made without further argument. This appeal to the authorities seldom occurs, for the small concerns who are assessed less than a cuota usually avoid any controversy, and the large firms are well able to pay and rarely i^ay more than their fair proportion. When a new firm starts in business the cusrom is to assess them the full cuota the first year, as it is claimed no one can tell how much business they will do. In the second year they are assessed in proportion to the amount of business they did the preceding year. Again to the above " cuota" is added 18 per cent, as an annual tax to the city or municipality in which the merchant or tradesman is lo- cated, and still another 6 per cent, of the total is paid for the expenses of collection. Thus to a merchant who is assessed — Pesetas. 1 cuota in Malaga 1,955. 00 City tax, 18 per cent 351.90 Collection, 6 per cent 138.41 Thus each cuota is really 2,445.31 CONSUMOS. In every city, town, or village in Spain, a "consumos" duty is col- lected upon everything consumed, viz, anything to eat, drink, or burn. This duty is specific, and is collected by the custom-house, or at the ' landings, at sea-ports, or railway stations, or on all the public roads entering the city, town, or village. I The right to collect the "consumos" in Malaga is sold by the au- i thorities, under written offers, to the highest bidder, a given sum being : offered. When accepted they pay the cash, and all they can recover, over : the amount paid, is their profit; but it takes an active man to insure ■'^»,«l,11"8i"S 614 REPORTS ON TAXATION. success, and tb ere are few, in this part of Spain, who are willing to make the trial. It is almost impossible to get a correct list of the amount levied on real estate in Spain. I don't think any one knows except the collector and the party who pays, and to undertake to adjust a fair rate of taxes collected and expenses paid out, either by the general, provincial, or city government, is an impossibility. H. C. Marston, United States Consul, SWEDEN. TAXATION IN SWEDEN. REPORT OF CONSUL MAN: Taxation in the Kingdom of Sweden, and in the district and municipality of Gothenburg, maybe embodied in two general divisions: (1) National (staten) ; (2) Local (kommunal). The national is derived from the following : (1) Real estate. (2) Income from capital or labor. (3) Personal, per capita. (4) Customs. (a) Light-house and beacon dues. (b) Revenue stamps. (c) Distilled spirits. Id) Miiuufaotnring of beet sugar. The local tax is derived from the following : (1) Real estate. (a) Income from ca])ital or labor. (2) Church tax, on basis of state tax. per capita. (3) Liquor-selling license. NATIONAL (STATEN). ( i ) REAL ESTATE. Eeal estate is divided into two classes: (1) Agricultural real estate, which is taxed 3 ore* on every 100 kroner of its assessed value; (2) other real estate, which is taxed 5 ore on every 100 kroner of its assessed value. The assessed value of all the taxable agricultural real estate in the kingdom, in the vear 1883, amounted to 2,189,035,105 kroner ($585,861,407). The assessed value of other taxable real estate in the year 1883, amounted to 1,024,115,435 kroner ($274,543,336). (2) INCOME FROM CAPITAL OR LABOR. All Incomes exceeding 500 kroner per annum are taxed 1 per cent., subject to the following deductions : KroDor. Incomes over 500 and under 1,200 kronor have deducted ^-^ Incomes over 1,200 and under 1,800 kronor have deducted ?•"" Incomes over 1,800 kronor have deducted Notliing. * One krona = 26.8 cents ; 100 fire = 1 krona. SWEDEN. 615 The income of 500 kronor, ia which the wife's income is included, is, as above stated, free from taxation, and is permitted to be raised, at the discretion of the local authorities, to an amount not exceeding 700 kronor, in exceptional cases (in localities where living expenses are high in comparison with the prevailing cost elsewhere, as in the city of G-othenburg, where the exemption is COO kronor), and in individual circumstances, where conditions are unfavorable (such as numerous family, long-continued illness, accident, etc.). Private banks are taxed 2 kronor on every 1,000 kronor's worth of bank notes issued by them, and the estimate for the tax is based on the largest amount of their notes in circulation at any one time during the year previous. Bankers have the amount of this tax added to the bevillning (or state tax) by the multiplication of which the local tax is adjusted. Incomes from capital and labor include the following: (a) Interest from loans, or interest-bearing obligations, deposited with institu- tions or private persons. (b) Government, or churcb tithes, or compeusation for the same, in favor of a church patron. (c) Mining, lime kilns and quarries, and all works connected with them, grist and saw mills, manufactories, machine shops, distilleries, and all other works for the refining processes of raw materials, dairy industries, finan- cial and mercantile business, shipping, navigation, trades, and other occu- pations. (d) Traffic on canals, rivers, railroads, or other public thoroughfares. (e) What is gained from the pursuit of art or science. (/) Fees and emoluments of service, special commissions, salaries, etc. ig) Pensions, annual support, life interests. (h) Every other income not enumerated, and which is not taxable as real estate. (3) PEKSOXAL, PER CAPITA. Personal per capita tax (mantalspenningar) consists of a tas irrespective of age, of 40 ore for every male; 20 ore for every female. (4) CUSTOMS. Indirect (1884). Kronor. Castoms 29,000,000 Light-house and beacon 1, 200, 000 Revenue stamps 3, 125,000 Distilled spirits 11,000,000 Manufacturing beet sugar 100,000 44,425,000 ,: Every official document, and every bill of exchange exceeding $26, requires a stamp, from which the state derives an income of 3,125,000 kronor annually. LOCAL (KOMMUNEN). (1) REAL ESTATE. !' Prom the tax on real estate and income by capital or labor is derived the greater part of the amount raised for the expenses of the community. The amount levied by the state on real estate and income )s used as .a basis or foundation of the local or kommunal tax, in cities and towns; svhich amount is called "bevillning," (contribution). The city or town •^luthorities ascertain tlie amount necessary to meet the expenses ot the Fear, and after deducting any income the city or town may have, find 616 REPORTS ON TAXATION. the relative value the amount bears to the amount collected by the state from real estate and income, and use it as a multiple for their assessment; for example: If the bevilluing (amount of state tax on real estate and incoiue) in the city or town was 100,000 kronor, and the amount to be raised 400,000 kronor, then every tax-payer for every kronor paid to the state on real estate and income is assessed 4 kronor by the city or town. This year (1887), in the city of Gothenburg, for every kronor paid to the state as bevillning 4 kronor and 75 ore are paid to the city. (2) CHURCH TAX. Church tax on the basis of the building is a tax levied for the support of the state church, and is expended for building and repairing churches or parish buildings, salaries of priests, church servants, sextons, etc. This tax is apportioned on the foundation of the bevillning also ; the estimated expenses of the church for the year being divided among the tax-payers by certain rules on the basis of the bevillning. This year, in the city of Gothenburg, it amounted to about seven-twelfths of the amount of state tax. Church tax, per capita (kyrkoskatt), consists of a personal tax, irre- spective of age or sex, of 50 ore per capita. The amount of bevillning is also used as a foundation for the local tax in the country. A fractional part of each kronor paid as bevillning is there called a "fyrk." Each 5 ore, or fraction thereof, of the bevill- ning is counted as 1 fyrk in taxing agricultural real estate; e. g., if a taxpayer paid 20 kronor to the State as bevilluing, in estimating his local tax he would be debited with 400 fyrk, and be assessed so much for each fyrk for the local expenses, as if the whole number of fyrk in the district amounted to 60,000 and the expenses for the year to 30,000 kronor, then every tax-payer would have to pay 50 ore for each fyrk debited to him. On real estate, other than agricultural, each 10 ore or fraction thereof is counted as 1 fyrk, thereby giving agricultural real estate double the number of fyrk on each kronor paid as bevillning, and consequently a higher rate of taxation than other real estate. But as the state tax is 3 per cent, on agricultural land and 5 per cent, on other real estate, the difference is not so great as would at first appear, although if the local amount to be raised should be high in proportion to the state tax it would levy a considerably heavier tax upon the agricultural real estate. The national Government derives an income from railroads, tele- graphs, forests, and farm rents, etc., and fees still existing on the ancient system of national defense, amounting in all to about 20,000,000 kronor per annum. Kronor. The indirect taxes to tbe state from custom dues, revenue stamps, etc., as before sbown, annually amount to about 44,425,000 The indirect local taxes annually amount to about 5,780,000 Totalindirect tax 50,205,000 The direct tax, national and local, annually amount to about 49,800, 000 Total direct and indirect 100,005,000 In the year 1883 the population of Sweden was 4,580,000 inhabi- tants, and on account of the large emigration does not iucrease ma- terially, so that the above amount, 100,005,000 kronor, representing the total tax burden, would be about 23 kronor 17 ore for each individual> bl7 or on an estimate of five members to each family a tax of about 110 kronor 85ore for each head of a family. Those subject to the income tax are: Swedish citizens who are living In the kingdom, for all the income received, whether- from home or abroad. Swedish citizens who are not living in the kingdom, for the income derived there- from. Also foreigners who have lived continuously for one year or the greater part of three consecutive years in the kingdom. Exemptions from income tax are : Eeal estate — Belonging to the state ; Belonging to cities or communities, academies, scientific and all other institutions of learning and charity, with the plats, lots, and buildings belonging to them; Belonging to the military and used by them ; Belonging to owners of railroads, canals, public road, or water ways occupied by the same, together with stations, workshops, and other buildings used by them. Incomes — Of the state; Of churches, academies, scientific societies, institutions of learning, hospitals ; Of cities and commuuities on incomes not derived from business or trade ) Of members of the royal family ; Of dijilomatic and consular corps abroad; Of diplomatic and consular officers belonging to foreign powers, except what is derived from business; Of foreigners pursuing studies in the Kingdom ; Of Laplanders from reindeer raising. Personal property of every description is entirely exempt from taxa- tion. The assessors, in estimating the incomes, use the amountof home rent paid by each taxpayer as a gauge by which to calculate the probable amount of income, as follows : Should the yearly rent amount to from 300 to 500 krouors. the income is estimated at least three times the amount ; 500 to 1,000 krouors, four times the amount ; 1,000 to 1,500 krouors, five times the amount; above 1,500 krouors, six times the amount. There is a great deal of complaint made against the pressure of tax- ation upon real-estate owners, particularly on the farming community^ partly owing, it is said, to disproportionately high assessments; and from the foregoing it may be also seen that, by the system of local taxation, the agricultural real estate is actually taxed higher than other real estate and incomes. Another explanation may be, that, personal prop- erty being exempt, the tax burden falls upon real estate and income, and the latter, as is well known, being more difficult to reach, the real estate consequently bears the greater weight of the taxes. The fact that the great emigration movement here has risen chiefly in the farming dis- tricts has' been brought forward as evidence of the weight of the tax on this class, but doubtless in considering the emigration of the agri- cultural class there should also be taken into account, besides the form- er's taxes and his share of the burden of a protective tariff with com- paratively little benefit from the same, the high latitude of his lands and short summers, which naturally are more detrimental to agriculture than to other industries, coupled with his competition with farmers of other countries much more advantageously situated. Statistics show the forced sales under execution of country real estate from 1881-'85 to have averaged 5.2 per cent, of all the sales. There seems to be considerable dissatisfaction over the tax for the maintenance of the state church and clergy, which is especially felt by 618 REPORTS ON TAXATION. all those belonging to other denominations, who, in addition to the state church tax, have their own clergy aad houses of worship to sup- port. Bills to modify or abolish this tax have beea brought before the Diet from time to time, but thus far without effect. The' system of taxation in Sweden has, as a foundation, so many remote usages and ancient conditions of life that it would almost seem to require the evocation of the wise Odin and the rune stones to eluci- date the existing methods and obsolete terms, which are apparently but little understood by the present generation of tax-payers themselves. Ernest A. Man, United States Consulate, Consul. Gothenburg, August 30, 18S7. SWITZERLAI^D. TAXATION IN SWITZERLAND. REPORT OF CONSUL-OEXEBAL WINCHESTER. The revenue of the Federal Government is derived largely from cus- toms duties and postal-telegraph service. These two items constituted the sum of 44,435,200 francs in a budget of 5:3,527,000 francs, estimated gross receipts from all sources for the fiscal year 18S7. The residue comes from a few special taxes. SPECIAL TAXES. (1) Citizenship. — The right to acquire cantonal and communal citizen- ship is granted to foreigners by the Federal Council on the i)aymeutof 35 francs. (2) Railways. — The Federal Council is authorized to levy on the rail- way companies a tax of 50 francs for each kilometer in active service, whenever the business of the company shows a net profit alter provid- ing a suitable sinking fund of 4 ])er cent. Should the prolits exceed 4 per cent., the tax may be increased to a. maximum of 200 francs. In 1885, the last report, only six lines were found liable to any tax, and four of these were short funicular railways ascending summits used as summer resorts, such as the Eigi, Giessbach, Gutseh, and Territat. (3) Banlcs of issue. — The banks pay to the confederation 1 per cent, on the amount of their issue. It may be added here that these banks ])ay also to the canton in which located 1 per cent, on the amount of deposit required to be made and of which the canton is the custodian. Any cantonal taxation on issue is limited by federal law to 6 per cent. (4) Trade-marlcs. The registering of each trade mark is 20 francs. (5) Commercial houses. — Register J. .--Registering commercial house. Entry. CanooUing. Chimge. One proprietor More thau ou« Scock compauies; Not uxceediEg 100, 000 francs. 100 000 to ] , 000, 000 fran cs .... Ovei' 1,000,000 francs. All the societies Powers of attorney for same Francs. 5 10 20 50 100 10 5 Francs. Francs. 10 25 50 SWITZERLAND. 619 Register £.— (Entries 3 francs, cancelling free.) Eegister B, is a special register for all associations not falling under tbe enumerated classes, but desiring to be registered. (0) Gunpoicder. — Tbe Government has a monopoly of the manufacture and sale of gunpowder, from which is realized about 500,000 francs an- nually. (7) Military tax. — Every Swiss of the age for military service, from twenty to forty-four years old, living in the territory or out of the ter- ritory of the confederation, and who does not personally perform mili- tary service is subject iu lieu thereof to the payment of an annual tax in money. Foreigners established in Switzerland are likewise subject to this tax, unless they are exempt therefrom by virtue of international treaties or belong to a State in which the Swiss are neither liable to military service nor to the payment of any equivalent tax iu money. The following are exempt: (1) Paupers assisted by the public charity fund, and those physically or mentally infirm and incapable of earning their subsistence, or do not possess a sufiBcient fortune for the support of themselves and family. (2) Those rendered unfit through previous service. (3) Swiss citizens in foreign countries, if they are subject to a per- sonal service, or to an exemption tax for the same in place of domicils. (4) The railway and steam-boat emplojes during the time when they are liable to the military service organized for the working of the rail- ways and steam-boats in time of war. (5) Policemen and the federal frontier guards. This military tax consists in a personal tax of 6 francs and of an ad- ditional tax on proiierty and income, the amount exacted from any one tax-payer not to exceed 3,000 francs per annum. The additional tax is, (1) for each 1,000 francs of net fortune, IJiO francs; (2) for each 100 francs of net income, l.BO francs. Net fortunes less than 1,000 francs are exempt, and from the net income there is entitled to be deducted COO francs. Net fortune is the personal and real property after deducting debts of record, chattels necessary for household, tools of trade and agricultaral imidements. Real estate and imf)rovements are assessed at three-fourths of the market value. In computing the property of a person for this tax, half of the fortune of the parents, or if not living, then of the grandparents, is included proportionally to number of children or grandchildren, unless tbe father of the taxpayer shall himself perform military service or pay the ex- emption tax. Net income embraces: (1) The earnings of an art, profession, trade, " business, occupation, or employment. The expenses incurred to ob- ' tain these earnings are deducted, also necessary household expenses, and 5 per cent, of the capital invested in a business. (2) The product ; of annuities, pensions, and other similiar revenues. Prom the age of thirty-three to the completion of the military age - only one-half of the tax is exacted. -^ The federal assembly has the right to increase the tax to double the 1 amount for those years in which the greater part of the elite troops (as ' distinguished from thelandwehrorreserve) are called into active service. » The military tax for Swiss citizens residing abroad is calculated every year by special rolls and the persons advised by the offtcials of the canton of their birth. The tax for exemption is paid in tbe canton where the taxpayer is domiciled when the rolls are prepared. Parents are responsible for the payment of the tax for their minor sous and for those sons who, though of age, remain a part of their household. 620 -Rvvc r. The period for prescription is five years for tax-payers present in the country and ten years for tiiose absent from the country. Tlie cantons are charged with making out the annual rolls and collecting the tax. By the end of January following the year of the tax the cantons must remit to the confederation the half of the net product collected, a portion of which is assigned by the federal assembly to the fund for mihtary pensions. The estimated receipts from this tax for the share of the confedera- tion is placed in the budget for the year 1887 at 1,235,000 francs. This military -tax law was enacted in 1878, and was put in force the same year. FEDERAL EXPENSES. The expenses of the Federal Government are usually kept within the budget estimates, and deficiency bills are practically unknown. The budget often shows a small deficit. This doubtless serves to stimulate economy in the various administrations, and as a result the close of the fiscal years shows a balance on the other side of the ofScial ledger. The budget for 1886 shows a deficit of 470,000 francs. The recent closing of the accounts for 1886 has changed it into a credit balance of 300,000 francs. There is no report showing the expense of collecting the Government revenues or the proportion it bears to the income. Federal statistics are very limited, both as to character and detail, rely- ing mnch upon cantonal and communal statistics. CANTON OF BEENE. The law recognizes the following taxes as direct: (1) Property tax; {a) ground tax; (b) capital tax. Exemptions : (1) Buildings and ground property of the state used for public purposes; (2) churches, i)ar8onages, school-houses, hospitals, asjdums, roads, rivers, and lakes ; (3) grounds incapable of cultivation or pasturage; (4) establishments under federal administration; (5) rail- way stations and apj)urtenauces ; (0) real estate under 100 francs value. There is a division of real estate into several classes, viz: Ground property (without forest), forests, and improvements. Then another division as to kind of cultivation: (1) Gardens, orchards, meadows, and arable lauds; (2) pasture ground; (3) vineyards. There is also a subdivision of these three classes as to value, viz; Forests are valued according to: (1) Yield of wood; (2) market price of wood; (3) clinuitoldgical conditions resulting from topography. Buildings are classed and valued according to the construction of the walls and roofing, material, stone, brick, wood, or frame-work iilled with broken stone or butts, and for what purpose used, dwelling, harn, granary, store, or manufacture. The tax is 2 francs for each 1,000 francs of assessed value. Of this 1.70 francs is for general administration, and 30 centimes for pauper fund. The assessed value is reached by deducting debts for which the prop- erty is made liable by mortgage, lien, or (Hher legal process. But this provision excludes debts, though secured as above, which are due the confederation, or to creditors not within the jurisdiction of the canton. Capital tax covers personal property, stocks, rents, annuities, etc. If the creditor of stocks, bonds, or rents for which property is hound resides out of the jurisdiction of the canton, the owner of the prop- ■3 Wl J ZjIL.SXl^li.LMy. 621 erty must pay the tax; but it is considered as being paid in bebalf of the creditor, aud he is authorized to retaiu the amount so paid from interest or rent due by him. The assessment of the tax on stocks, etc., is arrived at by fixing a value of twenty-five fold the amount of annual interest or rent or divi- dend, and of this each 1,000 francs is taxed same per cent, as the real estate or 2 francs per 1,000. The ground property pays tax in the district where it is located and listed, personating where the owner is domiciled or claims domicile. Income tax. — Persons subject are : (1 ) All persons established in the canton, including Swiss citizens of other cantons and foreigners. (2) Temporary residents beyond six months. (3) All companies, corpora- tions, etc., licensed to do business. The tax is divided into three classes : (1) Income from professional pursuits, trades, or employments which carry with them salary, wages, fees, or emoluments, and income from industry, commerce, and manufacture; this class pays 3 per cent. (2) Income from annuities, pensions, etc., pays 4 per cent. (3) Income from interests, stocks, bonds, shows, deposits (not subject, to the tax on property in the canton) pays 5 jier cent. From the first class is exempt the sum of 000 fraucs, and 100 francs from the second and third class. This exemption can be made only oitce, and can not be claimed by a party who may be engaged in two distinct j)ursuits or business, as de- ductible from each one ; and although husband and wife may be engaged in separate business and keeping separate accounts, tbe allowance is only made for one. In addition, however, to the 600 francs allowed in the first class, there is 10 per cent, additional permitted for expense ac- count in producing income ; that is, the net income is sought to be taxed. To illustrate: A. has a sahiry of 3,050 francs annually. From this he may deduct, first, 600 francs, leaving 2,450, then 10 per cent., or 245 francs, leaving his net income 2,205 francs. On this he pays 3 per cent, to the canton and 3 per cent, to the commune of Berne. Persons whose official positions entitle them to receive certain priv- ileges and perquisites of value, such as parsons, teachers, policemen, and employes in certain establishments who may be furnished with fire-wood, free lodgings, and small tracts of ground, must add the same to their gross income on the following scale: Francs. Parsons 300 to 80a Teachers ..■ 50 to 200 Policemen 50 Employes 1,000 to 2, 000 Their assistants 500 to 1, 000 . Indirect taxes. — Tax on inheritances, legacies, and donations. All real property, with certain exemptions, in the canton, passing by inheritance or donation, is subject to this tax, regardless of the domicile of the testator, donor, heirs, or donee. Personal property is subject to the tax in all cases where the testator donor at the time of his death, or the heir or donee at the time of re- ceiving the same, is domiciled or staying within the canton. The exemptions are: (1) When passing to direct descendants by operation of law or special demise. (2) lo case of husband or wife, where there are living issue of the marriage or descendants of the same. (3) When in favor of Swiss public institutions, such as hospitals, asylums, schools, etc. To purposes of the same kind of a private char- acter the council of state is empowered to remit altogether or make any 622 EEPORTS ON TAXATION. abatement deemed proper of the tax. (4) Where the amount does not exceed, iu case of husbaud or wife without children, 5,000 francs; iu all other cases 1,000 francs. Before imposing this tax there are deducted any legacies or debts the inheritance may be charged with, including the property of the wife, if she is the heir or devisee and there are no children or descend- ants, then it is : (1) When the heir or receiver is husband or wife and no children or descendants from same, 1 franc from 100 francs. (2) When heir or receiver is related iu ascending line: (a) 1 franc from 100 in the first degree (parents) ; (&) 2 francs from 100, further de. gree. (3) When heir or receiver is related in the collateral line: (a) In the second degree (brothers or sisters of same parents, also half sisters and brothers entitled to inheritance nnder the French civil law) 2 francs from the 100 francs. (6) In the third degree (uncle and nephews and the half brothers and sisters entitled to inheritance according to the Ber- nese civil law), 4 from the 100 francs, (c) In the fourth degree (chil- dren of brothers and sisters), 6 from 100 francs, (d) In the tifth degree, 8 from 100. In all more remote degrees, 10 from 100 francs. Markets, traffic, hatching, etc. — These can be taxed only so far as space, stalls, and extra expense for police, fire department, and sanitary pur- poses may be involved. (1) Offering articles for sale: {a) By driving about in the streets or carrying into the houses, 1 to 50 francs. \b) Temporary stores during fairs, etc., and selling off under liquidation, 20 to 2U0 francs, (c) Solicit- ing from other than dealers, 10 to 200 francs, (d) Hawking in rags, bones, skins, ashes, old iron, old clothes, glass, and bristles, 1 to 20 francs, (e) Makers of sieves, baskets, straw plaiters, san- grinders, tinkers, glaziers, tin workers, 1 to 20 francs. (/) Traveling actors, singers, photographers, rope dancers, jugglers, objects of natural his- tory (exhibited), and shows generally, 5 to 100 francs. The amounts above named cover the period of one month. The license officer, however, under the law, can exercise discretion iu fixing the rate, taking into consideration in cases of hawkers, etc., if they are old and infirm, or if residents, or from another canton. The maximum of 200 francs per month, or 3^ francs per day, is rarely imposed. • Ohmgeld or cantonal duty (on malt and spirituous liquors of Swiss origin) : Centimes. (1) Wine in casks containing moro than a litre per liter.. 4^ (2) Wine in bottles do.... 9 (3) Cider do.... 1 (4) Beer do.... 2 (5) Brandy in bottles , do.... 20 ■IS) Spirit of wine, alcohol, and all other distillations measurable with the brandy meter up to — Thirty-two degrees per liter.. 12 Thirty-three to thirty-four degrees do — 13 Progressing to 99 and ICO degrees do — 39 IMPORTED. Centimes. (1) Wine casks containing less than a liter per liter.. 5 (■2) Wine in bottles do.... 40 Ci) Cider do.... 2 (4) Beer do.... 2} (5) Liquors and brandy in bottles, also sweet and compound liquors in larger vessels per liter. . 40 (6) Alcohols and other distillations of same degree are taxed as brandy with an additional 10 per cent. SWITZERLAND. 623 Alcohol intended for mechanical purposes, and on entering the can- ton mixed with something by the officials to prevent frauds, is free. This cantonal duty, or '' ohmgeld," has been a source of large reve- nue to the canton of Berne, yielding about one million francs annually, but under provision of the federal constitution ceases in 1890 ; and should the law recently enacted by the federal assembly transferring to the Government the entire control and taxation of distillation and sub- mitted to a referendum to be taken on the 13th of the month, and which it is generally conceded will be approved by the popular vote, the cantons, only a few of which have the "ohmgeW," will be deprived of the sapie at once, and will be made some allowance by the G-overn- ment for the loss during the time for which their right to collect this tiix would otherwise have run. Piibiic houfies and retailing spirits. — These are divided into (1) Houses that lodge, board, and sell spirits; (2) houses that sell food and spirits and do not lodge. The first pay according to a classified list of eleven, ranging from 300 to 2,000 francs per annum. The second embraces eight classes, and runs from 300 to 1,600 francs. Ten per cent, of the amount realized from this tax is given to the com- mune wherein the house.s are located for schools and paupers. In small places no distinction is made in the tax of houses that lodge and those which do not. The town council by reducing the license may compel a public house to provide lodging. The jjrefects may, where recommended by the local police, license stands for the sale of milk, coffee, tea, and pastry 5 to 20 francs per annum, or 50 centimes per day, in behalf of the canton. The licenses above named are per annum. Many of the Swiss iiublic houses being kept open only during the summer, the tax is levied pro rata. Confectioners who serve liquors are subject to an annual tax of 50 to 100 francs. "Pensions" serving liquors other than that served at the table or to others than their regular boarders as distinguished from transient cus- tomers, pay a tax of 100 to 600 francs. So soon as it is discovered they lodge transient customers they are placed under the schedule of public houses. To retail liquors in a small way in the bar-room, where the sales are under 15 liters in quantity, a license is granted only to persons in en- joyment of full civil and political rights and of good character. The license must be paid yearly in advance and may be deducted from the income of the party paying it. LICENSE. Franca. For wine 50 to 300 Distilled liquors 200 to 600 The above two rights combined 250 to 800 Liiiueurs 50 to 300 I One-half of this tax goes each to canton and commune. )i Hawking spirits is not permitted. From this license-tax is exempted: (1) Public houses with general license. (2) Venders of beer, cider, and wine of their own production. (3) Distillers with their own pro- duction, except that from potatoes and cereals. (•1) Apothecaries, where sold for medical purposes. Manufacture of brandy and spirits for trade.— Aimnal tax for brandy of 50 degrees is 5 centimes per liter j akohol^wkere the quantity amounts. 624 EEPOETS ON TAXATION. to 1,000 hectoliters, 8 centimes per liter; one additional centime being charged for each additional 1,000 hectoliters. All distillation of pota- toes, cereals, turnips, and other raw materials containing flour or sugar also stone-fruit, drugs, waste of beer, grapes, roots of gentian, juniper and other berries where the product exceeds annually 150 liters and the materials are not all of domestic origin, is considered as being carried on for business or trade purposes. For the product of distilleries, proven to be for exportation from the canton, nine-tenths of the tax is deducted. Cantonal fire-insurance. — This insurance is obligatory for four-fifths of the Taxable value. In case of fire the indemnity is made in propor- tion of the sum insured to valuation. Single houses, isolated, without a fire-place and under 500 francs' value, are exempt from this law; and powder-mills, laboratories for fire-works, depositories of powder or dynamite and chemical manu- factures are excluded. Additional premiums for insurance are imposed in the following cases: {1) Houses with wood or partly wood roofs, 20 centimes per 1,000 francs. (2) When the wall in whole or part consists of material not fire-proof, from 10 to 20 centimes per 1,000 francs, according to distance from other buildings. (3) Where there is special risk from character of business carried on. The fire-insurance tax varies according to the loss that may be suf- fered in a year. For 1885 it was assessed at 1.06 francs, with small additional assessments for some small townships. Stamp tax. — All obligations, bonds, shares, and such contracts, in which the consideration is expressed by a fixed sum or may be accurately arrived at, 10 centimes for sums from 50 to 100 francs inclusive, 20 cen- times for sums from 100 to 200 francs inclusive, and so on ; 10 centimes for each additional 100 francs or fraction thereof. Contracts for sale of real estate, deeds, notes secured by mortgage, deposit books for savings banks, wills, insurance policies, must be ex- ecuted on what is known as stamped jiaper. It is in large sheets and costs 60 centimes a sheet. Bills of exchange, checks, etc., 10 centimes for sums 50 to 100 francs inclusive, 15 centimes for sums 200 to 400 francs inclusive. Stamped paper must be used on all obligations indorsed and assign- able yjayable at sight, and from the day executed till presentation do not circulate longer than seven days. Every pack of cards, 50 centimes. Eeceipts, placards, advertisements, bills of lading, and other such in- struments, 10 centimes. For all other written instruments subject to stamp duty, according to the size of the paper used, 120 centimes for a full sheet, 60 centimes half sheet, 30 centimes for quarter, and 15 centimes for octavo. The payment of the stamp duty is enforced by the use of stamped paper and visa, stamps (marks), and adhesion stamps. Bills of exchange and checks, if not stamped when executed and delivered, or where executed out of the canton, if not stamped as soon as they come into the hands of the payee in the canton, and all other documents required to be stamped, if not stamped within 30 days from date of execution, are subject to a penalty of ten times the sum of the stamp tax. Unstamped instruments have no validity in law. State church tax. — All Protestant Swiss citizens who have not exer- SWITZERLAND. 625 cised the legal right to withdraw from the state church are subject to a tax as follows : On each 100 francs income : Centimes. Class 1 15 Class II 20 Class III 25 On 1,000 francs: Ground valuation 10 Mortgages^ etc., secured by real estate 10 Miscellaneous taxes or licenses. — There are avariety of other miscellane- ous taxes or licenses imposed by cantonal law, such as the right to hunt and fish. Engineers, architects, forest-keepers, and surveyors pay annually francs.. 12 Machinists for steam-engines, etc., and superintendents chemical works.. do 8 Veterinary surgeons do 4 Millwrights do 2 Travelers, guides, widwife, surgeons, transient servants do 1 Chimney-sweeps - centimes.. 50 Loan offices, pawnbrokers, hospitals conducted for profit francs . . 20 Agents foreign insurance companies do 10 Solicitors of insurance companies and loan offices not located in canton., .do 20 The three years of 1884, 1885, and 1886 show in the cantonal budget a deficit for the first year of 706,249 francs, and a surplus for the other two respectively of 471 francs and 46,361 francs. Years. Estimate of fortune. Debt. Loans. Gross. Net. 1884 Francs. 184, 911, 520 Francs. 47,014,107 Francs. 137, 900, 412 350, 589, 129 145, 351, 933 Francs. 60, 183, 000 1S85 65, 486, 000 1886 193,139,188 47, 787, 247 64, 965, 600 Income. — Gross income of indirect taxes in 1883, 6,475,393 francs ; collection and administration, 1,472,206 francs; net income, 5,003,187 francs, being 77.02 of the gross income. Gross income of direct taxes in 1882, 3,569,483 francs ; collection, etc., 165,622 francs ; net, 3,403,861 francs, or 95.03 per cent, of the gross in- come. The total taxes in 1882, direct and indirect, were, gross, 10,044,876 francs; net, 8,407,048 francs ; being 18 francs 70 centimes per capita. Income for 1885 : Franca. Ground tax 1,748,210 Income tax, Class I 779, 936 Income tax, Class II 15,848 Income tax. Class III 380,242 Capital tax 708,861 Collection of same 105,099 Administration 55, 804 GitizensM2), cantonal— It should be added that the cost of citizenship iu the canton of Berne i.-^, for a foreigner, 500 francs, and for a Swiss of another canton, 200 francs. TAXES OF THE CITY OB COMMUNE OE BEIINB. The tax on real and personal property is the same as in the canton, viz, 2 francs for 1,000, Classificatioo and other features similar to cantonal. 626 REPORTS ON TAXATION, The income tax is 3, 4, and 5 francs per 100, regulated as tlie cantonal. Water tax.— Four francs for each room the house contains. The net profit annually to the city is about 15,160 francs. Qas. — One-half franc on the 1,000 of the house valuation ; yields over 100,000 francs net profit annually. Schools. — Higher classes gymnasia, annually, 60 francs, and lower classes 4 francs. Pedagogical and commercial branches, annually, 60 francs. Dogs. — Ten francs annually. Net profit, over 10,000 francs. Burial tax is as follows : Franca. To the police, for control and numbering stone 2.59 Watchman and janitor 2.00 Coil) mission for reserved grave near the wall 6.00 A grave in the inner row of the Bremgarten 5.00 The undertaker : Hearse and two horses 8.00 Hearse and one horse 5. 00 First class 5.00 Second class 5. 00 Each coach, two horses 10.00 Each coach, one horse 6.00 To woman who issues the invitations and superintends the funeral ceremonies: Where hearse alone is used 5.00 Where two coaches are used 15.00 The sexton lO.OO Reserved grave - 10. 00 Unreserved, for adults 5.00 Children, :! tol2, 3.50 Children, under 3 , 1.59 Hearse and coaches, net profit to the city in 1886, 627 francs, and for graves sold, 4,800 francs. Taxes for permis de sejour issued to temporary residents and for- eigners established in the city yielded in 1884 3,478 francs. Taxes for space and stalls in market, net profit in 1884 of 43,72:i francs. This privilege is divided into three classes, according to the locality. First class, 20 centimes per meter daily for the weekly and meat market ; second class, 30 centimes ; and third class, 50 centimes. On other days and during the fairs which are held semi-annually the above charges are doubled. Hucksters of vegetables occupying a place on the street once a week are charged : First class, 70 centimes, runniug meter for three mouths ; second class, 100; and third class, 140; and for each additional day, 20 centimes. Persons who pay an income tax to the city in the first-class of in- come are entitled to a discount of 30 per cent, on the foregoing charges for space, etc. Abattoir and its stables yielded in 1884 29,502 francs. The stables may be used twenty-four hours free of charge. For each additional day — Cattle, etc.: I"™™ Large animals '^" Small animals ^ Sheep , IC For slaughtering and inspection : Cattle, per head 6.00 Calves, per head l-^^ Sheep, per liead 1'^* Goats, per head !•** Lambs and kids °^ SWITZERLAND. 627 Those having slaughtering done for private use and not public sale are charged an additional fare on cattle— 50 centimes on calves and 30 centimes on sheep. Inspection and official certificate of large animals, cattle, horses, etc., 50 centimes; for small animals, 20 centimes. For inspection of meat slaughtered and brought in for sale from the coun- try: Large animals, 80 centimes; and small animals, 50 centimes; for smoked meats, sausages, etc., per 50 pounds, 30 centimes. Weighing animals up to 1 quintal, 15 centimes ; from 1 to 2 quin- tals, 25 centimes ; and 10 centimes for each quintal. For weighing butter up to 50 pounds, 5 centimes; cheese under 50 pounds, 5 centimes; and for cheese 50 to 100 pounds, 10 centimes. In large quantities an average of 10 centimes per quintal is charged. There is a citizenship to be purchased in the commune of Berne as well as in the canton and Confederation. It is embraced in about thirteen guilds, as distinguished from the mere inhabitants, and these guilds have their several stipulations and value of membership. The sum charged varies according to the number of the applicant's family, for every member of the family becomes entitled to the citizenship and the perquisites attached thereto, which in some guilds are very consid- erable. The price in Berne ranges from 8,000 to 9,000 francs; besides, the applicant must possess property to the extent of 15,000 francs. So communal citizenship in a Bernese guild is quite an expensive luxury. The property valuation of Berne for 1886, not including public build- ings, school-houses, church-yards, parks, and promenade grounds, was, gross francs, 9,726,556, and net francs, 5,180,102. The debt in 1886 was 4,546,454 francs, and loans 4,022,000 francs. The city budget for 1884 and 1885 showed a surplus of 114,134 and 58,503 francs. No report for 1886. It is somewhat strange that the practice which prevails in giving in property for cantonal taxation of deducting all indebtedness secured by mortgage where the creditor resides in canton (to deny the same having been decided by the courts to be double taxation, and iu con- travention of a provision of the federal constitution prohibitiug double taxation) has not been applied to the city or communal taxes. It is thought that as far as it is now applied there is much fraud practiced, and that fictitious mortgages are created for the jiurpose of evading just taxes. By permitting incumbrances in the beginning honestly made to continue after maturity, when the debtor is able to pay, secures their indefinite continuance at less cost than would follow from the additional tax, which would result from the liquidation of the incum- brance. The canton of Berne is the most populous canton in the Confedera- tion, containing 532,164 out of a total population of 2,846,102 (census 1880) or nearly one-fourth. I have obtained from Consuls Giffbrd and Staub the following very excellent statements as to the taxes in the cantons of Basle and St. Galle. These are much smaller cantons, St. Galle's population being 210,401, and that of Basle only 124,372, but they are both prosperous, rich cantons, and especially the latter, which is the strongest banking canton in Switzerland. BASLE. Of the taxes imposed by cantonal and municipal authority (the two jurisdictions being in Basle substantially the same) the four following are described by the law as direct : 138— No. 99 24 628 REPOKTS ON TAXXXIUNT l.^Tlie income tax, which is progressive, the rate being augmented with the increase of the net income, thus : Class. First.. Second Third , . Fonrth Fiftli.. Sixtli . Income. Francs. 800 to 1, 200 1, 200 to 1, 6U0 ■Francs. ■ 5 10 1, 500 to i, 000 4, 000 to 8, 000 8, 000 to 12, 000 *12,000 Percent. 1 2 3 4 Tax. *And upwards. The popular nature of this tax is shown by the following table, from which it appears that the 535 taxpayers of the highest class pay four times as much as the 7,397 persons belonging to the five lower classes:' Class. First at 5 francs Stxond at 10 francs.. Third at 1 per cent . ITourth at 2 per cent. Fifth at 3 percent-. Sixth at 4 per cent. . Numher of tax-pajers. 2, 237 1,380 2,587 920 273 535 7,932 Amount, of tax. Francs. 11,180 13, 800 05, 77.'). SO CO, 959. 87 47, 898. 45 760, 698. 88 Per cent, of tax- payers. 972, 318. 00 28.20 17.40 32.62 11.60 3.44 6.75 100 Per cent, of tax. 1.15 1.42 8.76 G.89 4.0.1 78. K II. — The property tax. — This is fixed by law at one-tenth" of 1 per cent., but during the current financial year a supplementary tax of 80 centimes per thousand has been assessed, mailing the sura really col- lected nearly one-fifth of 1 per cent. To the purposes of this tax property holders are divided into classes as follows: Clas.s. First Second Third Fourth Fifth .Sixth Sevc-nth Eighth Ninth Tenth Eleventh ... Twelfth .... Tliiiteenth . Fourteenth . Fifteenth ... Sixteenth... Seventeenth Property. 12, 20, 30, 40, 50, 60, 70, 80, 90, 100, 125, 150, 176, 200, 225, Francs. 000 to 8, 000 OOO t o 12, 000 000 to 20, 000 000 to 30, 000 000 to 40, 000 000 to 50, OOU 000 CO 00, 000 000 to 70, 000 000 to 80, 000 000 to 00, 000 000 to 100, 000 000 to 125, 000 000 to 150, 000 000 to 175,000 000 to 200, 000 000 tip 22.5,000 000 to 250, 000 Tax. Francs. 9.00 14.40 21. 00 30.00 54.00 72. 00 90. 00 108. 00 IL'U. 00 144. 00 162. 00 180.00 225. 00 270. 00 315.00 360. 00 405. 00 Class. Eighteenth Nineteenth Twentieth Twenty-first Twenty-second - Twenty-third - -- T wen ty -fourth - - Twenty-filth Twenty-sixth. .- Twenty- seventh Twenty-ciglith . Twenty -ninth -- Thirtieth Thirty-Hrst Thirty-second -- Thirty-third Thirty -fourth . - - Property. 250, 300, 350, 400, 450, 600, 600. 700, 800, 900, 1,000, 1, 250. 1, 600, 1, 750, 2, 000, 2, 600, 3, OOO, Francs 000 to 000 to 000 to 000 to 000 to 000 to 000 to 000 to 000 to 000 to I, Olio to 1, 000 to 1, 000 to 1, 000 to 2. 0(10 to 2, OOJ to 3, 000 to 3, 300, ono 350, 000 400, 000 460, 000 5O0, 000 600, OOU 700, 000 8110, 000 900, 000 000, 000 2.')0, 000 600, 000 750, ono 001), 000 600, 000 000, 000 500, 000 lax. Francs. 430.00 5411.00 630.00 730. 00 810.00 DOO.OO 1,080.00 1,200.00 1,440.00 I 1,C20.0» 1,800.00 2,250.00 2,700.0* 3,W.OO 3,600.00 4,500.00 5,400.00 From the thirty-fourth class upwards the rate of progression is am- form, i. e., half million intervals are fixed. Property under 5,000 francs is exempt from this tax. SWITZERLAND. 629 Tlie appraised value of all the real and personal property in the canton is 468,276,888 francs. Whether this justifies Minister Frey's suggestion tliat Basle is the richest city in the world of its size is doubtful, but it is a very comfortable property for a place of 70,000 inhabitants. III.— TAe municipal toa;.— Levied on the income, as established once in four years, of all persons over twenty years of age, living in the city proper. Though called a city tax it is levied and collected by the can- tonal authorities and applies to the same class of persons as the other taxes, with the limitation of age above mentioned and with the excep- tion of a small number of persons living in the rural communes. For the current year this tax is established as follows : Class. Incomo. Tax. First Francs. SOOto 1,500 1,500 to 2,000 2, 000 to 3,000 3, 000 to 4, 000 4, 000 to 6,000 6, 000 to 12,000 12, 000 to 20, 000 20, 000 to 40, 000 40, 000 to 60, 000 60, 000 or over. Francs. Third 24 Fifih Sixth 60 Seventh I'^O Eishth Ninth 500 Incomes less than 800 francs are exempt from the municipal tax. IV. — The tax on successions, legacies, and donations, causa mortis [erh- schaftsteuer). — Property passing by will, succession, or donation to other persons than a husband, wife, or direct descendants, is taxed as follows : If the beueficiary bo a — Per cent. Parent 2 Grandparent, brother, or sister 4 Uncle, aunt, nephew, or niece 6 Cousin, great-nncle, or aunt. 9 Person more remotely or not at all related by blood 12 The regular and ordinary taxes, therefore, to which a merchant not performing military service is subject, are the income tax and the property tax, the municipal tax, and the military tax. Supposing such a merchant to be under thirty-three years of age and to possess real and personal property of the value of 500,000 francs, yielding a net in- come of 30,000 francs, he would pay in conformity with law the fol- lowing sums : Francs. ^ Income tax on 4,000 francs, 1 per cent 40.00 4, 000 francs, 2 per cent 80.00 4, 000 francs, 3 per cent, 120. 00 18,000 francs, 4 per cent 720.00 Total on 30, 000 francs 960.00 Property tax, fourteenth class, 1.80 per 1,000 on 450,000 810.00 Municipal tax, eighth class, fixed sum for 30,000 income 240.00 Military tax, 1^ per 1,000 on property of 500,000 750. 00 l| per 1,000 on income of ,30,000 44.10 poll tax 6.00 Total 2,810.10 \ This total computed on the property alone would amount to about stbrce-fifths of 1 per cent. « A farmer living in the country, being of the same age as the mer- chant and likewise exempt from military service, having a clear property 630 REPORTS ON TAXATION. of 20,000 francs and a net income of 1,200 francs, would be taxed a folio \vy: Franc Income tax, fixed sum for income from 800 to 1,200 francs 5 j Property tax, third class, sum for yO,000 francs [_[[ 2l'fi Military tax, li per 1,000 on three-fourths of 20,000 francs property ._ 22' 5 1^ per 1,000 on income less than 600 francs " '9 poll ; '.'.'.'.'. ao Total "^ In both the above supposed cases the aggregate tax must be consid ered as a minimum for persons exempt from military service. For be sides the sum levied on successions, of which no account Is taken in thi computation, there are other extraordinary and incidental circumstance! which may involve taxation. The following is a complete list of thesi contributions and taxes : (1) Tax on transfers of real estate.— This is collected at the rate of ^ per cent, from the purchaser of all real estate or the beneficiary of a gift in all cases where the property does not pass from parents to chil dren, is not transferred for public or benevolent purposes, is not sold by the assignee of a bankrupt, or, finally, is not sold by an heir to a co- heir, the latter being a child, grandchild, or surviving husband or wife of the testator. (2) Fire department contribution. — This tax is imposed in lieu of per- sonal service at a fixed rate, as follows : Class. Income. Tax. First Lesfl than 1 500 francs Frmcs. 5 Second 1,500 to 3,000 francs . . 10 Third 3,000 to 6,000 francs Fourtli 6,000 to 12,000 francs 40 Fifth (3) Contribution for street-lighting. — Proprietors of buildings situated on lots lying not more than 60 meters from a street lamp pay a contri- bution of one-twentieth of the buildings in question. (4) License of corporations. — Incorporated companies pay to the Gov- ernment a fee of one-twentieth of 1 per cent, of their capital stock annually. . (5) BanTc-note tax. — Banks of issue doing business in Basle pay ftf the canton three tenths of 1 per cent, of their circulating notes. (6) The stamp tax. — The following papers are subject to a stamp tax of 10 centimes : Checks of over 100 francs, drawn payable in this canton. Promissory notes not negotiable and not made and payable in this canton. Provisional certificates of stock of over 50 francs, and certificates en- titling to the delivery of bonds of over 100 francs. Freight way-bills and warehouse certificates. The stamp tax varies for the following documents, according to the form and quantity of the paper on which they are written : Contracts, in- surance policies, bills of sale, wills, private inventories with signatur^; all notarial acts, copies of judicial decisions and judgments, abstracts-^ of the same and of all official documents, books, and registers when made for the use of private persons and at their request. , SWITZERLAND. 631 These documents must bear a 10-centime stamp when written on a quarto sheet or less; 20 centimes when written on a simple folio sheet; 40 centimes on a double folio sheet. The stamp t .x for the following documents varies with -the sum in- volved: Bonds, with or without mortgage, executed in this canton, amount- ing to more than 100 francs; stock shares, issued in this canton, of a nominal value of more than 50 francs; accounts of auction sales; all negotiable paper issued and payable in this canton; memoranda of sales of securities of all kinds, except bills of exchange, whether the sales are for cash or on time, made at the exchange or elsewhere. Of these papers, bonds, shares, and accounts of auction sales, are subject, for an amount up to 200 francs, to a stamp of 10 centimes; from 200 to 300 francs, 20 centimes ; from 300 to 500 francs, 30 centimes; from 500 to 1,000 francs, fiO centimes ; from 1,000 to 2,000 francs, 120 ceu- ' times; and for every further amount of 1,000 francs, or fraction there- of, 60 centimes. Drafts, orders, promissory notes, and other negotiable securities pay, for 100 to 500 francs, 10 centimes; 500 to 1,000 francs, 20 centimes; 1,000 to 2,000 francs, 40 centimes; and for every further sum of 1,000 fraucs, or fraction thereof, 20 centimes. Memoranda of sales of commercial paper must be stamped according to the account of the sales, as follows: Amount up to 5,000 francs, 20 centimes; from 5,000 to 10,000 francs, 50 centimes; for every further 10,000 francs, or fraction thereof, 50 centimes. To complete the enumeration of all the sources of revenue enjoyed by the canton of Basle, it may be mentioned that the Government col- lects a duty on all wine and spirits brought into the city for sale ; that it insures all the buildings of its citizens, and reserves to itself the mo- nopoly of salt manufacture. The present city government of Basle is now considering a plan for changing the existing system of taxation, with a view to charge the richer classes with a still larger proportion of the public burdens. ST. G-ALLE. Every citizen, be he a peasant in the country or a citizen of a town, pays annually a state tax to the cantonal government, which varies between 2 and 3 francs per 1,000 francs. For this year it was 2 francs. This is all the tax the State assesses, with the exception of a levy of 5 :per cent, on the net earnings of corporations. As to towns, the taxes differ very much, according to the material condition of each place. Some of them have school and church funds, and the same for charitable purposes, while others have none at all, and some only one or the other. The city of St. Galle has a school fund of 2,557,980 francs; a Catholic church fund of 3,206,077 francs, and a Pro- testant church fund of 1,476,251 francs. Thus, therefore, that towns have to assess as high as 7 francs on 1,000 for school and church pur- poses, while others — for instance, the city of St. Galle — assess this year 2 francs for school purposes and only 20 centimes on 1,000 for -church purposes. « Before going any farther it is proper to state that while under the new constitution the church and state are separated, it is very seldom that any one withdraws from the church, notwithstanding that it is JOptionaf for any one to do so and relieve himself from any obligation to the church. " 632 REPORTS ON TAXATION. Altogether different is the duty of the citizen towards the schools. Every citizen is compelled to belong to his respective school district, no matter how isolated he may live from the place of education. This has been the case ever since compulsory education has been inaugu. rated in Switzerland. So much for the condition of taxation over the state called CantoA, As to the city of St. Galle, the following have been the taxes for 1886: Francs. State taxes, as before stated per 1,000 francs.. 2. UO Political corporation do .. 4.00 School do .. 2.00 Church do .. .20 Household tax (poll) 2.00 Money tax. — Last, but not least, comes the income tax, which is as follows : Class. Income. Tax. Class. Income. Tax. Francs. 800 to 1, 000 1, 000 to 1, 6110 1,500 to 2,000 2,000 to 2,600 2, 500 to 3, 000 3, 000 to 3, 600 3, 500 to 4, 000 4, 000 to 4, 500 4, 500 to 5, 000 5, 000 to 5, 500 France. 1 2 4 7 11 10 30 40 51 Francs. 5, 500 to ti, 000 6, 000 to 6, 500 6, 500 to 7, 000 7, 000 to 7, 500 7, 500 to 8, 000 8, 000 to 8, 500 8, 500 to 9, 000 9, 000 to 9, 500 9, 500 to 10, 000 Francs. Twelfth 76 Third Thirteenth ,. DO 105 Fifth Fifteenth Izl Sitth Sixteenth I'S 157 Eio-lith Eighteenth 177 Ninth Nineteenth 200 For an income amounting to over 10,000 francs each additional 100 francs pay 2fu% francs extra. The system of " progressive taxation " in force in the canton of feasle prevails in several other cantons, and iii the canton of Vaud has been made to apply not only to income tax, which is quite a commou prin- ciple, but to all objects of taxation. For this purpose taxable objects are divided into three classes : (1) Eeal estate; (2) personal estate; (3) earnings. Each of these classes is subdivided according to valuation, and the rate of taxation increases with the increase of value. Thus,a man with real estate worth $5,000 will pay $1 a year tax; he who owns $10,000 will pay not $2, but$ i; he who owns $20,000 will pay not $4or $6, but $10. The same rule is applied to personal property; the rate of taxation will increase with each additional $500 valuation, so that he who has $100,000 in bank or in bonds will pay not ten times as much as he who has $10,000, but about thirty times as much. So frith earn- ings, the rate will increase with each additional $500 of income, with the proviso that $80 shall be made as an allowance for each month to be fed. The design of the system is of course to throw the burden of taxa- tion on those who are best able to bear it, and by the gradual enlarge- ment of exemptions it is an easy matter to bring the entire burden of taxes on a few, which is illustrated in the statement of Consul Giftbi'd as to Basle. It is an experiment that has its dangers, and of very doubt- ful policy. It may be well to notice briefly the taxes in a mountainous aud thinly populated canton, and for this purpose Valais will be taken. ► SWITZERLAND. 633 TAXATION IN VALAIS. Taxation in this canton may be best explained by the instance of a single individnal, the village blacksmith, who is an example of au aver- age citizen, neither rich nor poor. His house belongs to him in fee ; no other form of ownership is known in Yalais. The taxable value of his property, say, is 9,000 francs. For assessment purposes land is divided iuto very numerous classes, valued at 2i centimes foi; the worst up to 8 and 9 francs a yard for the best. The assessment is made by a local commission, revised by three ex- perts appointed by the canton. There are two taxes on real property: (1) Cantonal tax of IJ francs on each 1,000 francs of capital value, and 50 centimes of this tax goes to a sinking fuud for the extinction of the public debt. (2) Communal tax varying according to the needs of each commune, an average of 1 franc per 1,000, and this tax may be paid in work by arrangement with the commune. If real estate is mortgaged, one-half of the amount of the mortgage is deducted. The cautonal tax on capital values is levied not only on real property but on all securities, salaries, and pensions capitalized at ten times, and on incomes capitalized at twenty times their annual value. A register of all these taxable values is kept in each commune and furnished by it to the cantonal aiithorities. Besides these direct taxes, license duties are payable to the canton on the exercise of every kind of industry, occu- pation, or profession, from that of a banker to an ordinary artisan. For each occupation there are five and six classes with a maximum and min- imum duty. A banker of first class pays from 1,000 francs to 262 francs ; lowest class of artisans, about 2 francs; saw-mils, 2 francs to 250 francs ; whole- sale timber merchants, from 100 to 500 francs. Proprietors selling the produce of their own land are the only im- portant exception to the law. There is no tax on tobacco, which is consumed largely, nor on Swiss wines, beers, or spirts. There is a small duty on imported alcoholic drinks. These communes, especially in the poorer cantons, are very economically ssanaged. There are some communes whose reported management expenses, including salaries of police, wood rangers, pay- ments to presidents, councilors, and others are as low as 1,200 francs, and the entire income not exceeding 5,000 francs, but this figure does not representt he annual value of its property, as the commune pastures and forest are engaged for a nominal payment. These Bgures do not apply to the poorest communes, but an average commune in a mountainous canton. The principles on which most of these officials are paid is to give a nominal salary as a sort of retainer, and daily wages where em- ployed. The president and councilors will be paid 3 francs for each sitting and for every day when attending to public business. It is con- sidered obligatory on those elected to serve in turn, and such posts of honorable service are willingly accepted. BOTD WiNCHESTEK, Consul General. United States Consulate Gbneeal, Berne, May, 1887. 634 REPORTS ON TAXATION. TAXATION IN ZURICH. REPORT OF COKSVL CATLIN. Every able-bodied citizen, property-owner, and resident in the can- ton of Zurich is subject to the payment of two distinct classes of taxes, viz : I. Those imposed by the canton. II. Those imposed by the respective townships composing it. Both are collected by the town authorities, but at difterent times. The cantonal taxes are turned over to the treasurer of the canton, and the town is allowed to retain 1 per cent, as payment for Iheir collection, I.— Cantonal Taxation. The system of direct taxation in vogue in canton Zurich is that which is known as "progressive," and is essentially democratic and leveling in its features. It eases the burden for the poor and the laboring classes, and places the greater weight upon the shoulders of those who are best able to bear it, and that, too, in proportion to their ability. From those to whom much has been given much is required, while the laborer, un- able to save, and dependent upon his daily wages for his own and his family's support, fuliills his common obligation to contribute to the support of»the state by the payment of a comparatively trifling amount. As a tax-payer grows richer he is taxed on a larger proportion of his wealth. The tendency of the law is to hinder, or at least impede, the accumulation of great fortunes. The young man who has saved up his first 5,000 francs is assessed on only one-half of it; if in his maturer years his fortune shall have increased to 100,000, he is assessed on four- fifths of it; if to 200,000, on nine-tenths of it; and if to upwards of 200,000 on all of it. Again, the same principle is followed in the tax- ation of incomes. The small clerk or salesman who earns a scanty salary of 1,500 francs is assessed upon only one-fifth of it, while the recipient of a 4,000-franc salary is assessed on four-fifths, and the man who earns a salary over that amount is assessed on it all. In order to give a thorough understanding of the system, I have translated the cantonal tax law, and incorporate it in full herewith. It haf now been in force for sevenfeen years, having been adopted in April, 1870, by a populat vote* of the canton. It gives evidence of wise thought, careful study, and a spirit fully in harmony with the free republican institutions of Switzerland. CANTONAL TAX LAW. Title I. — Obligation to pay taxes. (1) In so far as the yield of the public domain and other lawfal revenues are inade. qnate to defray the Government uullays, there shall be levied a tax upon property income, and citizenship, the amount of which shall be from time to time determined by the cantonal council wlieu the estimates are made up. (2) The following are subject to property tax, viz : {a) Landed property, whether in or out of the canton, belonging to a citizen or resident of, or to a corporation ex- isting in, the canton, (b) Land and appurtenances thereon in the canton belonging to a person living outside of the canton, (c) The property of any person living outside of the canton, which is held iu trust by the authorities thereof. (3) The following are exempt from property tax, viz: (n) The public domains, church, school, and panperland.sand endowments, and also the township buildiug'sand » Yeas, 2;i,y34 ; nays, 20,781. iHikkli SWITZERLAND. 635 property, both movable and immovable, serving for public uses and yielding no rev- enue, (o) Property outside of the canton, whether consisting of land or ot the ap- purtenances thereon, and belonging to a resident of the canton, when a property or income tax is leviable on the same in the locality where it is situated, (c) The prop- erty designated in section 2, letter c, whenever the same is subject to a property or income tax at the owner's place of residence, (d) The clothing, books, tools and implements, and necessary household utensils of the party taxable. Furthermore, according to the necessities of the case, amounts up to 3,000 francs per each person may be exempted from cantonal taxations, in the property of orphans and other persons incapable of self-support. (4) The profits and incomes of citizens, settlers, and existing corporations, domi- ciled within the canton, are subject to income tax. (5) The following are exempt from income tax, viz: (a) The yearly revenue in in- terest, rent, or jointure, based upon any capita] taxable as property. (6) The amount of 500 francs from every income. (See article 19, section 3, of federal constitution.) {6) In estimating the property of a tax-payer, resident in the canton, debts are to be deducted from the collective value of his possessions. In the case of the tax- able possessions of one residing outside of the canton, the debts existing thereon may only be deducted when the tax-payer can bring proof that the possessions in ques- tion are not burdened with debts out of proportion to those standing against the re- mainder of his property. (7) In estimating an income derived from the carrying on of any industry, there shall be deducted not more than 5 per cent, of the working capital, and also the costs involved in the acquirement of the income, with exception, however, of housekeep- ing expenses. (8) All citizens and settlers residing in the canton and who are entitled to vote on cantonal affairs are liable to a citizenship tax. (9) Liability to property and income taxation commences from the time when a person comes into possession of a taxable property or income. Strangers in the canton are liable to taxation from the time when they become settlers. The citizen- ship tax is to be levied for the entire year upon those who are entitled to vote during the year for which the tax is levied. (10) Disputes as to whether a portion of any property or income is taxable shall be decided by the direction of finance with right of appeal to the Government council. Title II. — Taxation. (a) PROPERTY-TAX LEVY. (11) Of the property of individual tax-payers, the following portions will be assessed viz: Francs. Five-tenths on the first 20,000 Six-tenths ou the next 30,000 Seven-tenths on the next 50,000 Eight-tenihs on the next 100,000 Nine-tenths on the next 200,000 / Ten-tenths on all above 200,000 ' On every thousand of these portions as registered the same tax will be levied. In view of the extent of the township lauds, five-tenths of their amount will be assessed. (i5) INCOME TAX LEVY. (12) Of the taxable income of individuals (see sections 5 and 6) the following portions willhe assessed, viz: Francs. Two-tenths on the first .'. 1,500 Four-tenths on the next 1,500 Six-tenths on the next 3,000 Eight-tenths on the next 4,000 Ten-tenths on all above 4,000 : < Every hundred francs of income assessment paj's two francs tax for every franc per : 'i' thousand levied on property assessment. (c) CITIZENSHIP TAX LEVY. (13) The tax payable by all citizens entitled to vote amounts to one-third of the ^ 8iun levied per thousand on property assessment. 636 REPORTS ON TAXATION. Title III. — Method of determining taxable properti/ and income. (14) The determining of taxable property and income is effected on a basis of self- taxation by the tax-payer. This is controlled by the taxation of the tax-commission, from which appeal may be made to the taliing of an official inventory (see sections 26-30), or to the board of appeal (see sections 31-33). (a) SELF-TAXATION" BY THE TAX-PAYER. (15) Every tax-payer shall tax his property and income in full, according to their true value. (16) A new self-taxation by all tax-payers will be ordered throughout the entire canton every three years. (17) For the intervening two years, self-taxation occurs only in the cases of such tax-payers as are then for the first time subject to taxation, or whose property or income has meanwhile undergone any change. During each of these two years, the town council, before completing the tax-register (section 19), shall, by public notice, summon such tax-payers to report any such change. ( IB) For the purpose of self-taxation, every tax-payer residing in the canton receives from the town council a form, upon which, under the several headings, he enters the valuation of his property and income. (19) The town council shall enter these taxations in a tax-register, which is to be made out in duplicate annually, and shall leave the same open for inspection for four- teen days. Every tax-payer is entitled to make a close inspection of it, and to hand in his observations concerning it, over his own signature, to the tax commission (section 20). (b) TAXATION BY THE TAX COMMISSION. (20) For every political township there shall be a tax commission. The same shall consist of the following members, viz : (a) Four members to be chosen by the political township, and who shall not be eligible for the ensuing term; (6) two members to be chosen by the district councils, either from within or without its own body; (c) one tax commissioner to be chosen by the Government (caiitonal) council, on the nomina- tion of the direction of finance. Townships may increase the number of members to be named by them to twenty. Those elected then organize themselves into sections of four members each for a proper division of the work. Those members named by this district council may not belong to the political township, nor the tax commissioner to the district in which they are severally to serve. In cases of hinderance from serving, the Government and district councils will provide substitutes. The proceedings will be conducted by the tax commissioner. The town clerk keeps the records ex officio, and has a voice in council. Any active citizen is bound to serve as a member of the tax commission if chosen thereto by the township. (21) The tax commission shall from time to time during the year in which there- vision is made and after the receipt of tlie completed register from the town council, examine the taxations made, and at the same time afford the tax-payers opportunity to be personally present at the proceedings. When it considers any case of self-taxa- tion as incorrect it makes the necessary alterations tlierein. (22) The tax-payer has the right, as be may choose, within fourteen days after the receipt of notice of such alterations, cither to appeal to the taking of an official in- ventory (sections 26-30), or to the board of appeal (sections 31-33). The tax com- missioner has the right, within fourteen days, to appeal against the taxation made by the tax commission. Where a tax-payer has called for the taking of an official in- ventory this appeal is invalid. If, by the expiration of the period stated, no appeal shall have been made, then the taxation by the tax commission is to be considered as acknowledged. (23) For taxations to be undertaken during the interval (see section 17) the col- lective tax commission is replaced by a minor commission composed of one member of the district council and two members of the tax commission, selected by him and belonging to the township. (24) The tax commission has the right of final decision concerning exemption from taxation (section 3, last clause) of persons permanently incapable of labor. During the interval (see section 17) the collective tax commission is replaced by th6 minor commission for the rendering of such decisions as well. .. (25) All members of the tax commission, as well as the clerk of the town council, are paid a daily allowance by the canton, in proportion to their trouble, and to be determined by the cantonal council. 'Assessment is probably meant. SWITZERLAND. 637 (C) OFFICIAL INVENTORIES. (26) For taking an official inventory there shall be appointed a commission of ap- praisal, consisting of one member of the town coniicil, one member of the district council (who does not belong to the township), and one member chosen by the tax- payer. All mumliers of the commission of appraisal are paid a daily allowance by the cantons, proportioned to their salaries, and to be lixed by the cantonal council. (27) Au official in \'entory is taken (a) when a tax-payer himself demands it (section 22); (6) in accordance with section 9 of the "law pertaining to the taxation of in- heritances." (28) The first inventory is to be made out by the tax-payer. It will then be exam- ined by the commission of appraisal and compared with the circumstances existing as to the property ; at all events with snch books of interest and business accounts as are accessible. When an inventory is made by the probate authorities, such in- ventory will be considered as valid for the tax authorities as well. (29) When no free understanding can be reached concerning the value to be placed upon property or income, the tax-payer, or either one of the ofiScial members of the commission of appraisal, has the right to appeal to an expert commission. (30) This commission, consistinj;- of three members, shall be chosen by the district court, and, after a hearing, has the right of final decision as to the extent and value of the property and income in dispute, as well as the imposition of the costs of ap- praisal. The amount to bo paid to the experts is determined by the district court. (d) BOARD OF APPEAL (31) Boards of appeal for every two or three districts shall consist of five members each, appointed by the cantonal council. In cases of hiuderance from serving, the cantonal council shall provide substitutes. In cases where any member has pre- viously participated in a decision of the tax commission, he has no voice. The finance bureau attends to the duties of the secretaryship. Members are paid a fixed daily allowance by the cantonal council. (32) A tax-payer is entitled and a tax commissioner is obliged to conduct his case personally before the board of appeal. (33) A tax-payer may, within foiirteen days, appeal from the decision of the board of appeal to the taking of an inventory by the expert commission (section 30). Title IV.—CoUeciionoftaxes. (34) Town councils, under instructions from the direction of finance, are charged with the completion of the tax registers, tbe collection of the taxes, and the delivery of the amounts, free of charge, to the cantonal treasury. For the collection each town council receives one per cent, on the amount it delivers. (35) Tax-payers residing within the canton pay the collective amount of their taxes at their place of residence; those residing outside the canton pay in the town- ship where the taxable possession lies. Tax-payers under guardianship are taxed in their own township when they have not settled in another township of the canton. (30) The tax-payer must pay his tax within four weeks after its promulgation. In case subsequently, by reason of appeal to an official inventory or to the board of appeal, the tax is lowered, repayment will be made. (37) The direction of finance will take care that the work of determining the taxable property and incomes is completed in season to aliow the collection of taxes to take iilace in January of each following year. Title V. — Consequences of incorrect declarations. (38) In case it be shown that a tax-payer has rendered an incomplete declaration of his property, a supplementary tax payment shall be collected. The same amounts to five times the deficiency in payments made to the canton during the two years last previous. Heirs may be held collectively for this supplementary tax. When such a case of incomplete taxation comes to the knowledge of any guardianship or judicial authorities, the latter are required to lodge seasonable and full information with the direction of finance in regard thereto. A supplementary tax payment may he either fully or partially remitted by the direction of finance, when it can be shown that the whole or a part of the surplus has been acquired since the time when the tax- payer in question was last called upon (section 17) to declare his taxes. Likewise, no supplementary tax is to be collected when an official inventory, taken as a lawful light of the tax-payer, shows the property to be larger. 638 REPORTS ON TAXATION. (39) Intentional concealment of parts of property, -with a view to withholding them from being officially inventoried, involves, as penalty, the payment of tenfold the tax evaded for the current year. Upon the question as to whether intentional conceal- ment is chargeable to the person whose property is i u ventoried, a judicial decision may be demanded by the latter. In such case the direction of finance appears as the plaint- iff and the dis .riot court decides as court of first instance. AMOUNTS COLLECTED. As the tax statistics for the year 1886 have not yet been published, it will be necessary, as showing the amounts collected under the pro- visions of the foregoing law, to take the figures for 1885, which are not materially different. During that year the total taxable capital in the canton amounted to nearly 900,000,000 of francs, and the taxes on property and incomes footed up the gross sum of 3,577,374.24 francs. This, it should be remembered, covered only the cantonal taxation, irrespective of the sums levied by the township. The population of the canton being, as per latest estimate, 329,326, we have a taxation of 10.86 francs ($2.09) per capita in the canton on property and incomes alone ; or, if we add on the additional amount — 96,678.40 francs— col- lected as citizenship tax, it raises the average to 11.15 francs ($2.15) per capita. Taxes collected on citizenship, propertij , and incomes in canton Zurich during the year 1885 Citizenship : Number of citizens 74, 3G8 Francs. Amount of tax 96,678.40 Property : Taxable capital 874,345,600.00 Amount of tax 2, 348, 791. 84 Incomes : Taxable incomes 82,2J3,900.00 Taxable incomes, after deducting 500 francs exempt 48,025,900.00 Amount of tax 1,228, .582. 40 Total from property and incomes "3,577,374.24 The 89,004 persons, citizens and residents, who paid the taxes em- braced in the above statement were divided as follows: Property tax alone 14,398 Income tax alone 33,205 Citizenship tax alone 4,230 Property and income tax 37,171 Total 89,004 As showing the extent to which the right of appeal accorded by the law is made use of, it may be stated that during the year no less than 4,512 appeals were recorded, 3,389 of them to the board of appeal and the remainder to the taking of an official inventory of the property taxed. Perhaps no better method of illustrating the general operations of the law can be found than in looking over the following statement, translated from the ca.ntonal council's report for the year in question, viz: * Gross amount. (See balance-sheet below.) SWITZEELAND. 639 Cantonal halanoe sheet of property and income tax receipts and expenditures of Canton Zurich for the year 1885. rranca. Gross receipts from property taxes 2, :m^(, 791.84 Gross receipts from income taxes *. 1,328,582.40 Brought forward from 1884..., 2,404.20 Total 3,579,778.44 From whicb»are to be deducted — Unfinished cases from 1884. I. Ee-imbursements and annulments: By order of direction of finance 228.50 By decision of board of appeal orcommisaion of appraisal 29,760.00 By decision of expert commission 965.40 By reductions in consequence of removals during the year, errors, etc. (inclusive of 12,044 francs Involved in litig.ition from 1884) 50,448.77 II. Incollectible arrears: Because taxed in two places 8, 709. 15 Because of residence being unknown 9, 856. 65 Through failures or worthless securities 18, 515. 97 Through impoverishment or disease A, 629. 95 Through removal from the canton 10, 154. 36 Total from unfinished cases of 1884 ^ 133, 26-i. 75 To balance which there was estimated in the budget of 1884 149, 426. 60 Leaving to the credit of the budget of 1885 the additional sum of.. 16, 157. 85 Francs. III. Stated provision for expense of collection in 1884- 32,511.93 Amount in budget 32,000.00 Leaving also to the credit of the budget of 1885 511.93 IV. Costs of prosecution 1,935.32 Cases originating in 1885 : I. Costs of taxation. (a) Town tax commission 11,525.80 (ft) Town clerks for making out tax registries.. 8, 927. 10 (c) Tax commissioners 9,330.05 \d) Board of appeal 1,408.00 \e) For oflScial inventories 292.40 (/) For expert commissions 519.31 (fl) For formulating appeals 30.00 (h) For printing 3,911.80 II. Estimated expense of coUectioQ 32,000.00 III. Balance of 200,000 francs in budget for estimated re-imbursements and incollectible arrears 132,054.94 200, 000. 00 Total deductions on business originating in 1885 202, 447. 25 Deduct excess as above, viz 16, 157. 85 Leaving a total deduction for expenditures of 186, 189. 40 Which, deducted from the gross receipts, as above, shows the net re- ceipts to be 3,393,489.04 Wliile the amount estimated was 3 240,000. 00 Leaving to be carried forward to 1886 a surplus of 153, 489. 04 MILITAEY TAXES. [For an account of the Swiss military requirements see, ante, Mr. Win- chester's report.] This tax is decreed by the federal government, regulated by the sev- eral cantons, and levied and collected by the respective townships un- 640 REPORTS ON TAXATION. der direction of a commissioa consisting of the district commander, tLe town cleik, and the chief of section. It consists in a direct persoual tax of 6 francs and an additional tax of 1.50 francs on every thousand francs property over 1,000 francs, and of 1.50 francs on every hundred francs income over 600 francs, with a ijrovision that no one man's military tax in a single year shall exceed the sum of 3,000 francs. The law further provides that those who have served for eight years or over and have become unfit for service for the remainder of their term^as well as all those liable between thirty-three and forty-four years of age, shall pay only half taxes. Under extraordinary circumstances the federal gov- ernment is authorized to double the ordinary tax. Parents are liable for the military taxes of minor sons, as well as for those of sons of full age living with them under the same roof. The mode of levying and collecting is as follows: The commission above referred to prepares in January of each year lists of the taxable aud exempt, by townships, fixes the amount of tax to be paid by each one of the former class, and completes its labors not later than the month of May. Notice is then served upon each tax-payer; fourteen days is allowed for appeal, if desired, to the military direction, and on the 1st of July collection (i. e., payment) begins. On or before.Hovem- ber 1 a complete account is rendered by each township to tlie district commander, who, in turn, pays in the entire sum collected in the can- ton to the cantonal treasury, which again, in turn, before the end of January in the ensuing year, pays over one-half of the. gross amount collected to the federal treasury at Berne, reserving the remainder for cantonal military purposes. For their services in collecting, town offi- cials retain 2 per cent, and the chief of section 3 per cent, of the amouut delivered, while the district commander receives 1 per cent, of the amount collected in his district, plus the fraction of 1 per cent, of the total military tax-yield of the canton, proportioned to the number of districts therein (i. e., if there are six districts, then one:Sixth of 1 per cent.), plus 100 to 150 francs, according to the extent of services ren- dered. The gross amouut collected for military taxes in the canton of Zurich in 1885 was 399,358.10 francs, of which the half, viz, 199,679.05 francs, was, as provided by law, turned over to the federal treasury. The net sum remaining to tlie canton after payment of costs of collections and other expenses was 100,93d.68 francs. TAXES ON INHEEITANCE. A tax is also imposed by the canton on any inheritance or bequest exceeding 1,000 francs, with the exception of such as are inherited by or bequeathed to children in the direct line of descent, parents, husband,, or wife, or are legateed for public uses or to the public property of the cauton. It is levied on a basis of 2 per cent, on legacies to adopted children, betrothed persons, or brothers or sisters; to remoter degrees of parental descendants, 6 per cent.; to grandparents, 8 per cent.; and to all others, 10 per cent. Jn addition to and upon these several per- centages there is a further tax of one-tenth when the amount is 10,000 francs and upward, two-tenths on 20,000, three-tenths on 30,000, four- tenths on 40,000, and five-tenths on 50,000. The heirs to any inherit- ance can be collectively held for the payment of the tax thereon. The taxation is in all cases based upon the official inventory made by the commission of appraisal (see section 26 of cantonal tax law, above), and is ordered by the direction of finance, the heirs having right of SWriZ;JiKljAJNU. t)il appeal to the proper tribunal. Collection is made as in the case of other taxes, through the respective townships, the latter retaining as com- pensation 1 per cent, of the amount paid over. During 1885 the net yield of 1333 inheritances taxed amounted to 325,235.80 francs, upon an aggregate of 6,637,635 francs succession. The heaviest tax amounted to 64,008 francs, the lowest to 22 francs. BUILDINGINSUEANCE TAXES. Every owner of a building (unless it be a powder-mill or magazine, or a small structure standing alone and under 200 francs in value) is taxed one-tenth of 1 per cent, per annum by the canton for insurance against fire, lightning, explosion, or damage by water in extinguishing a conflagration. This insurance is compulsory, is conducted under the restrictions and regulations usually pertainiug to fire insurance, and precludes any other insurance on the property. The collection of this tax is, as in other cases, intrusted by the canton to the several town- ships, which retain a small percentage (4 centimes per 1,000 francs) for expenses of collection. For systematizing the operation of the law the •canton is subdivided into six appraisement districts, in each of which a commission consisting of three members is appointed by the cantonal council for a three years' term. This commission has for its duty the appraisal of the values at which all the buililings in the zens of the same residing in the canton, either within or without the limits of the home township, are required to contribute by taxation. (137) For all other town charges the following persons are taxable, viz: (o) All citizens residing within the township, or sojourning longer than three months in other townships of the canton (and not liable to taxation at the place of their so- journ), and settlers. From the taxable property is to be deducted that portion which under the provisions of letter (6) is subjected to taxation in other townships. (&) Owners of land within the township limits who reside outside of the township, in so far as such land has a value of at least 1,000 francs. If mortgages exist upon such real estate, their amount, in levying taxation, is only to be deducted in so far as they are not offset by movable property taxed elsewhere, or in so far as the property taxed elsewhere consists in real estate, if it be proven that the latter is equally bur- dened with the former, (c) An owner or partner in any industry carried on in the township but resident outside of the township, for a pro rata portion of its property. (d) Corporations, stock companies, and endowments domiciled within the township for that property upon which they, as such, are taxable by the canton, (e) Stock companies, for the full value of their landed property lying within the township. (138) Pupils in public and private educational institutions, apprentices, and work- men who are under guardianship existing elsewhere than at their place of sojourn or whose property is administered elsewhere, likewise persons who are brought to any institution for health or attendance, are exempt from property taxation at their place of sojourn. (139) Lands for public revenues, as well as those portions of the township lands the yield of which is applied to the revenues, are taxable for all township expenditures. (140) The canton pays proportional damages to townships the roads of which (of Classes II and III) have been materially inj ured by reason of hauling of wood from the cantonal forests or the carrying on of the cantonal mines. (141) Citizens of townships which are subdivided into several church or school districts are only taxable in the church or school district in which they reside. (14'i) Town taxes are to be paid in full by all citizens and sojourners ■who reside in the township during the year for which the taxes are collected. Liability to pay a property tax begins with the time when a person comes into possession of a taxable property. Tax-payers moving into the township during the second half of the year and those moving out during the first half of the year, as well as all those in general remaining less than half of the year, are required to pay only one-half of the township tax de- creed for the year in question. If tax-payers from another canton or from abroad move into the township during the second half year they are exempt from payment of half the township tax in so far as they can show that they have already paid taxes of a similar nature for the entire year at their former place of residence. (143) For every tax to be levied a new announcement shall be prepared and ap- proved by the proper town authorities. This provision is also valid in cases where an extraordinary expenditure is to be met by levying several tax rates (section 131). From the day on which the tax notice is approved the liability of individual tax- payers begins. (144) A special written summons is to be served upon every tax-payer, with an allowance of time for protest, during which the tax notice is to be open to the tax- payer's inspection. (145) The cantonal tax registers serve as a basis for levying township taxes ; never- theless attention is to be given to such rectitioations of accounts in the former as may have subsequently come ofiScially to the knowledge of the authorities. No township tax is to be paid upon the property of orphans or of persons incapable of labor, which is exempt from cantonal taxation. Whoever moves into a township during a current tax year, and is not yet registered on the cantonal tax registry boohs, shall pay taxes to the said township on the basis . of a rate to be determined by the town council, in proportion to his circumstances. If such preliminary rate is lowered on the next cantonal tax registry, re-imbursement will be made. (146) Agreements in regard to exceptional taxation of individual tax-payers are in- admissilile. (147) In cases of incomplete taxation, supplementary payments shall be made in the same manner as for cantonal taxes. SWITZERLAND. 645 A TOWNSHIP BALANCE-SHEET. As in the case of cantonal, so also in regard to town taxation methods, a clearer idea may be gained at a glance by giving entire the balance- sheet of receipts and expenditures for any given year. The following is the balance-sheet of the township or city of Zurich for the year 1885 ; RECEIPTS. I. — Direct taxes. Francs. Property (6 per cent, on total assessment of 240,534.30 francs) 1, 443, 205. 80 Households ' 34111,^.110 Men 44,634.00 Supplementary payments 37^ 193. -i.") 1,559,140.25 I'rom which deduct as follows, viz : Francs. Canceled 87,229.05 Repaid 20,214.30 Uncollected 39,317.00 152,760.35 Leaving available the net amount of 1,400,385.90 From which deduct the proportion (1.4 on 6peroent.)collected for school purposes, viz 32-<, 156. '0 Leaving for township purposes, as net yield of direct taxes 1, 078, 229. 20 11.— Indirect taxes. From office fees, etc. : General town management 7 423. 65 Guardianship affairs 6,377. 10 Finance bureau 28, 516. 33 Tax bureau 15,717.81 Police bureau 15,503.00 Fairs and markets 23,361.4; Public scales 2, 426. 58 Slaughter-houses 12,995,00 Public baths 10,240.90 Hacks and other vehicles 1,838.00 Commissionaires - 77.'j. 00 Storage : 4,797.95 Miscellaneous 9,470.40 Fire police 2,306.50 Police penalties .•-. 7,669.05 Dogs 3,085.60 Fees and charges: Building department 11,555.97 Judiciary department 4, 107. 65 Total net yield of indirect taxes 174, 173.90 III. — Various sources. Income from : Immovable property - 133,164.65 Capital 146,708.47 Interest on loans 803,693.60 Property, capital, interest, etc - 6,401.20 Total from various sources 1,090, 0^7 92 Total receipts 2,342,431.02 646 REPORTS ON TAXATION. EXPENDITURES. Francs. Interest and cancellation 1,458,785.20 Expenses of government 886,667.65 Total expenditures 2,345,452.85 Excess of expenditures over receipts 3,021.83 III. — Deductions. Having thus sketched iu detail the various features of cantonal and township taxation, both direct and iudirect, I now proceed to show the working of the system as applied to various individual tax-payers, of various ages, classes, and circumstances. Under a progressive tax system where no two pay alike it were idle to go into any extended calculation showing the general average tax per capita of population, as that would prove nothing. On a previous page of this report it is true the average per capita tax on property and income has been brieiiy mentioned, but any general calculation arrived at by dividing the aggregate of taxes from all sources by the total of population would lead to no satisfactory understanding of the principal subject of inquiry, viz, where the burden of taxation under the progressive system really falls. In order, therefore, to furnish a thorough insight into the workings of the system, I deem it better to select a few supposable ; cases of individual tax- payers taken from different classes of the citizens, and- then set forth in detail what, under existing laws, each is required to contribute, as follows : Illustration 1.— Mr. A. B., day -laborer, aged thirty-one, married, three children, no property, earns, when employed, 3.50 francs per day. I. — Cantonal. (a) No property tax. (6) Income tax : Estimating that he works 290 days in the year, his income at 3.50 francs per day is 980 francs From wiiich deduct amount exempt 500 francs Leaving him a taxable income of 480 francs Francs. Francs. On two- tenths of which he is taxed, i. e., on 96 francs, at 8 per cent., makiug his income tax 7.68 (c) Citizenship tax: One-third of 4 francs (see section 13, cantonal law).._. ^1^ Total cantonal taxes S-"' II.— Township. (a) No property tax. (6) One household tax 6.00 (c) One man tax 6.U0 Total township taxes 12,00 III.— Military. Being fit for military service, Mr. A. B. pays no military tax, but is liable to go into barracks for drill for sixteen days in every two years. His total taxation therefore is ^ or 2.1 per cent of his gross income, 980 franca. SWITZERLAND. 647 Illustration 2. — Mr. C. D., clerk, age twenty-seven, married, one child ; keeps house ; owns 5,000 francs property ; salary 2,500 francs per annum ; keeps a dog. I. — Cantonal. Franca. Francs, (a) Property tax : He is t.axed on five-tenths of 5,000 francs, i. e., on 2,500 francs (see section 11, cantonal law), at the rate of 4 francs per thousand 10. 00 (i) Income tax : He is taxed on 2,500 francs salary, less 500 francs exempt, i. e., on 2,000 franca, as follows: Two-tenths on the first 1,500 francs, i. e 300 francs Four-tenths on the remaining 500 francs, i. e 200 francs Thus making his taxable income 500 francs At 8 per cent 40.00 (c) Citizenship tax 1. 33 (d) Dog tax 12.00 Total cantonal taxes 63.33 I II. — Township. (a) Property tax : Six francs per thousand on 2,500 francs taxable property (calculated as above; 15. 00 (i)) One household tax 6.00 (c) One man tax 6. 00 Total township taxes 27. 00 III.— MiLITAKY. Being, we will suppose, very near-sighted, Mr. C. D. can not serve in the army, and is consequently called on to pay his commuta- tion tax, as follows : A direct personal tax of G. 00 A tax of 1.50 francs per thousand onhis property of 5,000 francs 7. 50 A tax of 1.50 francs on every 100 francs of his income in excess of 600 francs, i. e., on 1,900 francs 28. .50 Total military tax 42.00 Hie total taxation (5.29 per cent, of his gross income, 2,500 francs) therefore is - 139.33 Illustration 3. — Mr. E. F., silk manufacturer; age forty- two, married, has family of children; owns mill plant worth 80,000 francs, dwelling worth 75,000 francs, and other property in stocks and money amounting to 60,000 francs. Total property, 215,000 francs. Net profit from silk mill, 30,000 francs per annum. I. — CAXTONAL. Franca. Francs, (a) Property tax : He is taxed on — Five-tenths of his first 20, 000 i e. , on 10, 000 Six-tenths of his next 30,000 18,000 Seven-tenths of hia next 50, 000 35, 000 Eight-tenths of his next 100,000 80,000 Nine-tenths of his next 15,000 13,500 Thus making the taxable amount of his. . 215, 000 156, 000 Which, at 4 francs per thousand, makes his property tax 626, 00 648 REPORTS ON TAXATION. (6) Income tax: His annual income fromliis factory beiog, as stated, 30,000 francs, ho is allowed, in declaring his taxation (see sec. 7 cantonal tax law) to deduct therefrom 5 per cent, of his working capital (80,000 francs + 60,000 francs =) 140,000 francs, i. e., 7,000 francs. He is also allowed to deduct 500 francs exempt by law. Francs. Consequently his taxable income is 30,000 Less 7,000+ 500 : 7,500 Leaving gross taxable income of... 22,500 On which he is taxed as follows, yiz : rrancs. Francs. Two-tenths on the first l,500i.e.,on 300 Four-tenths on the next 1,500 600 Six-tenths on the next 3,000 1,800 Eight-tenths on the next 4, 000 3, 200 Two-tenths on the remaining 12,500 12,500 Making his net taxable income 18, 400 At 8 per cent i 1,472.00 (c) Citizenship tax 1.33 (d) Building-insurance tax : Francs. We will suppose his silk-factory building to be worth 40, 000 And his dwelling is worth 75, 000 Then on his two buildings, worth 115,000 He pays an insurance tax of one- tenth of 1 per cent, per annum, which is equal to 115. 00 Total cantonal taxes 2,214.32 II.— TOWNSniP. (a) Property tax? Six francs per thousand on 156,500 francs taxable property (calculated as above) - 939.00 (J) One household tax 6.00 (c) One man tax 6.00 Total township taxes 951.00 III. — MILITARY. Being between thirty-three and forty-four years of age, Mr. E. P. pays only one-half military commutation tax, viz: A direct personal tax of 3. 00 A tax of 0.75 francs per thousand on his property of 215,000 francs, making 161.25 A tax of 0. 75 francs on every hundred francs of his income in excess of 600 francs, i. e. on 22,500 less 600 = 21,900 francs, making 4 164.25 Total military tax 328.50 His total taxation, therefore, is 3,493.83 Francs. Now, his profit from his mill and his 60,000 francs working capital is 30,000 The rent on hi.s 75,000 francs dwelling is, say 3,000 '| Showing his gross income to be., 33, 000 And his aggregate taxation is 1. 05 per cent, thereon. lllustrationi. — Mr. G. H., capitalist; age, sixty ; married; keeps house; owns row of dwellings worth 1,500,000 francs; money on bond and mortgage, 1,450,000 francs; stocks and other securities, 500,000 francs; cash and miscellaneous, 50,000 francs. Total property, 3,500,000 francs. No other income than that derived from ahove property. Keeps two hunting dogs. I.— CANTONAL. , , Ti i. J. -i-r . . , „ Francs. Franca. (o) Property tax: Heistaxed on five- tenths of his first 20, 000 i. p., on 10,000 Six-tenths of his next 30, 000 18, 000 Seven-tenths of his next 50,000 35,000 Eight-tenths of his next 100,000 80,000 Nine-tenths of his next 200,000 180,000 Ten-tenths of his surplus 3, 100, 000 3, 100, 000 649 Thus mating the amount assessed onhis 3,500,000 3,423,000 Which, at 4 francs per thousand, nialies his property tax 13, C92. 00 (b) Income tax : He has no other income than the yield of the capital above taxed as property. (c) Citizenship tax I.33 ((i) Building-insurance tax, viz : One-tenth of 1 per cent, on his row of dwellings, i. e., on 1,500,000 francs, making 1,500.00 (e) Dog tax: First dog, 12 francs ; second dog, 18 francs 30. 00 Total cantonal taxes 15, 223. 33 11. — TOWNSHIP. (a) Property tax: 6 francs per thousand on 3,423,000 taxable property (calculated as above) 20,538.00 (b) One household tax (i. 00 \e) One man tax 6. 00 Total township taxes 20, .550. 00 III. — MILITARY. Being over the military age, Mr. E. H. is liable neither for serv- ice nor for commutation tax. Hence his total taxation is .„. 35, 773. Now, calculating that the average annual yield of his 3,500,000 francs capital is 4 percent., i, e. 140,000 francs, he pays taxes to the amount of 25.5 per cent, of that yield. It will thus be seen from the illustrations adduced that under this graduated system of taxation an average laboreris taxed 2.1 j)er cent., nu average mercantile employe 5.29 per cent., an average well-to-do manu- facturer 10.5 per cent., and an average wealthy capitalist 25.5 per cent, on the annual yield of his labor, his labor and capital combined, or his - capital, as the case may be. In other words, the ca}:»italist with his millions is taxed at a rate twelve and a half times higher than the workingman with no property, who in the struggle for existence can lay , by nothing and must necessarily live from hand to month. While it can not be said that the law actually hinders the acquisition of gi'eat : fortunes or the diversion of wealth into the hands of the few, it yet forcibly inculcates the lesson that most are apt to forget, viz, that an increase in wealth brings with it increased duties and responsibilities toward the Government which protects the individual in the possession of that wealth. The system, in short, speaks for itself, and offers to ,• the statesman, the legislator, and the political economist abundant ' material for instructive study and thought. •, Geoegb L. Catlin, ' Constil. \ United States Consulate, ' Zurich, May 23, 1887. 650 ' REPORTS OK TAXATION. TAXATION IN LONDON. ET THOMAS M. WALLER, OONSVL-BENEEAL, LONDON. Several of my colleagues in Great Britain have already complied -with the instructions of the circular of the State Department of March 21, 1887, in regard to taxation. In perusing their interesting reports as they pass through this office it was not surprising to find that the same lengthy tables of national expenditure and national revenue, ex- cise, custom-house, and stamp duties appeared in nearly all of them. These repetitions were almost inevitable, for information relating to these topics is almost exclusively contained in governmental blue books or in digests made of them for popular use, and as no consul could as- sume that some one else would attend to this branch of the subject, nearly all of them have given on national taxation substantially the same facts and figures derived from the same authentic sources. In view of this fact, this report will be devoted to local taxation and especially in the city and metropolitan district of London. Before, however, attention is given to this division, three illustrations will be submitted of the incidence of national and local taxation. The first is an actual transcript from the private accounts of a manu- facturer, and includes all taxes paid by him except those indirectly chargeable upon him from his consumption of excisable or customable articles. The tax for dock and harbor rates exists because his business is in a maritime city, where the docks— owned by the municipality —do not pay expenses. The poor rate in respect of his business property differs from that imposed upon his residence simply because the two are in different parishes, and the total ratable value of property in one is greater in proportion to the number of paupers than in the other, hence the charge upon iudividual owners is less. His taxes in respect of his business amounted to 6 per cent, of his net income and in respect of his house to 1-^ per cent. His national taxes amounted to 4 per cent, and his local taxes to a little over 3 per cent, of his net income. Statement showing tlie taxes paid hi/ a manufacturer in an English provincial city in respect of his income, husiness premises, and residence. [Capital, £40,000 ($194,660). Net annual income, £3,200 ($15,500).] Income tax at 8(?. ha the £1 (3J per cent.) on $15,500 $516,00 Tiix OR ))vi8ine8s promises, Avhich are assessed as having an annual value of £,'i>H) (.til, 362), for the following; purposes : Poor rate, at l.s. 6^(2. in the £1 (aboiTt 71 per cent.); harborrate, at Is. in the £1 (about 5 per cent.); , dock and borough rate, at 'id. in the £1 (about -fg of 1 per cent.) ; total, 2s. V\d. in the £1 (about 13 per cent.) 184.58 Sanitary rate, for street cleaning, lighting, sewering, etc., at 2s. 10(Z. in the £1 (about 14 per cent.) 191.00 Property tax on business premises ^-^ ' ' Laud tax 47.45 Total 989.63 Tax on private residence, the .innual value of which is £125 (.|G05), hut which is assessed at £106 (IJi516), for the poor and sanitary rates : ., Property tax, at 8rf. in the £1 on £125 20.^ Inhabited house duty, at M. in the £1 on £125 ''•'" ENGLAND. 651 Statement slwwing the taxes paid iy a manufacturer, etc. — Continued. Tax on private residence, etc. — Continued. Land tax $0.60 Poor rate, at 2s. 4^. in the £1 (lli\r per cent.) on £106 60.09 Sanitary rate, at 3s. in the £1 (15 per cent.) on £106 77.38 Total 181.12 Total paid in respect of business, income, and residence 1, 170. 75 The second shows the taxes paid upon a farm in Somersetshire, 217 acres in extent and renting for $1,425 per annum : Income tax of farmer $10. 37 Inhabited house duty 3. 65 Poor, highway, county, and sanitary rates, at 2s. Id. in the £1 131. 08 Total 148.10 or 10.2 per cent. The above-mentioned farm is held upon a fourteen-years' lease, dat- ing from 1879, at which time the rental was agreed upon at $1,650 per annum; but the landlord, owing to agricultural depression, has been compelled to reduce the amount. Besides the taxes above set out which are paid by the tenant, the landlord pays an income tax upon the rental amounting to $48.50. This tax is levied under schedule A of the income tax bill, which provides for a tax upon land in respect of the property thereof; the tenant farmer pays under schedule B, which provides for a tax upon land in respect of the income therefrom. Under this schedule the net income of the farmer is assumed to be seven- eighths of half the rental he pays. The third is that of a merchant in London residing in a suburban town. The merchant makes out of his business, after paying his rent and working expenses, $5,000. Out of this he pays : Local taxes on store and warehouse, rated for taxation at $1,000 a year . .. $238. 25 Income tax on business, less taxes aforesaid ; 134.98 tooal taxes on dwelling-house, rated at $500 a year 119. 21 Inhabited house duty 9rf. in the £ Ion £120 21.89 Total 514.24 It is not practicable to ascertain with exactness the amount of indi- rect taxation, i. e., stamp, excise, and customs taxation, paid in any of the foregoing cases. This would largely depend upon personal habits, but it may be safely stated that each of the persons would pay in this way from $50 to $100 per year. The tax paid by the professional man, the man without business, and the poor man or laborer is easily deducible from the foregoing instances. The same rate of taxation upon income, ui>on inhabited houses, and upon property is paid by each. The exemption, however, of incomes under £150 ($750) would relieve the laborer, and the exemption of £120 ($600) on incomes not over £400 ($2,000) might operate in favor of one or both of the others. The further exemption of inhabited houses of the annual value of less than $100, is intended to save and does save the working-man from this tax altogether. The annual license duties paid by lawyers, publicans, auctioneers, and others, all of which are Imperial, must of coarse be considered in calculating the amount paid by such citizens in support of the Govern- ment. 652 REPORTS LOCAL TAXATION IN ENGLAND. There have been issued during the last five or six years a number of valuable publications on local government and taxation in Eng- land. Prominent among these publications are one series of essays of which J. B. Probyn is the editor and another series of which D. Chalmers, M. A., is the author. As these works are esteemed as au- thorities their statements are relied'upon, and the books themselves are commended to those who desire fuller information than the restrictions of this report will allow. The present system of local government and taxation in England is thus characterized by J. Eoland Phillips in a paper published under the sanction of the Oobden Club : England is looked upon as the cradle and the home of local self-government, and while we are too ready to make a boast of this, the fact remains that our system of local government is anything but perfect and scarcely better than a muddle from beginning to end. Chaos alone describes the present condition of local affairs. Complications exist where there should be uniformity. Districts overlap and in- terlace one another without order or reason. The burdens are imposed by diverse authorities, the duty of collecting is intrusted to a multitude of officials, while the administration of affairs and the expenditure of the money is entirely beyond the control of the authority which imposes the burden. The result of this confusion is that persons are unequally taxed, and that the rate-payer, puzzled by the multitude of taxes imposed upon him by so many authorities, is practically helpless and inca- pable of taking an intelligent interest and exercising his due influence in the ad- ministration of the funds to which he has to contribute. Again, unfair distinctions are made between different classes of property ; while one class of property is unduly taxed another escapes with total immunity. Owners of property also frequently escape liability in cases where it would only be equitable to make them contribute, and on the other hand occupiers are often burdened with rates which are extended mainly if not solely, as is often the case, to benefit the owner. These are some of tbo more glaring defects of our system of local government ; or, to speak more correctly, they are defects which arise from the absence of a regular and comprehensive sys- tem. Our local self-government is not altogether unlike old country mansions which are here and there to be met with, where successive owners have added to and altered the original structure without regard to symmetry or style, each studying his own immediate requirements and endeavoring to do that in the least inconvenient manner. So it is with local affairs ; as new wants have to be met fresh burdens have been imposed, and this has been done too frequently after hap-hazard fashion, and in a manner inconsistent with simplicity or economy of administration. Mr. Chalmers says : English local government can only be called a system on the lucus a non lucendo prin- ciple. There is neither co-ordination nor subordination among the numerous author- ities which regulate our local affairs. Local government may be fitly described as a chaos of areas, a chaos of authorities, and a chaos of tax rates. " There is no labyrinth so intricate " says Mr. Goschen, the present chancellor of the exchequer " as the chaos of our local laws." The briefest review on the confusing data collected in the preparation of this report would convince the most patriotic Englishman that no ex- pression about local government and taxation in this country has been quoted that is not justified by existing facts. There were in England and Wales in 1881 27,069 local authorities with power to expend public money and make local rates, and it does not appear that this number has since been decreased. Indeed, in some places there are at present from twenty-five to thirty-five distinct local authorities, and taxation is imposed on the same property in trom fif- teen to eighteen different kinds of local rates. An attempt at describ- ing in detail these various authorities, their names, functions, and ex- tent of jurisdiction — a matter more curious than useful — would only be a repetition of what has already been well done by other consuls. In b{)3 reland and Scotland there are better methods of valuation of proijerty 'or the purposes of taxation than in England. The same property here nay have several different valuations upon which different rates are issessed. In Ireland and Scotland there is but one valuation for all purposes. The aggregate amount of local taxation in England and Wales in L880 was $155,215,500, and this was levied as follows: Eates on rata- ble property, $129,634,715 ; tolls, dues, and rents on trafiftc, $23,391,055; iuties on consumable articles by city of London corporations, $2,189,730 ; total, $155,215,500; and the portions of this sum collected on different rates were : Eate. Poor rate ■ Country and rural police rate Borough and town police rate Metropolitan police rate — City of London police rate City of London tolls, dues, and rents. Borough tolls, dues, and refats Highway rates Metropolitan local management rates Metropolitan consolidated rates Metropolitan board of works (fees, etc.) City of Lend on "ward rates Urban sanitary rates Eural sanitary rates Port sanitary rates School board rates and fees School attendance committee Amount. $38, 043, 450 8, 339, 055 0, 212, 590 2, 688, 240 309, 085 1, 482, 160 2, 530, 270 8, 944, 140 8, 983, 305 2, 772, 240 378, 350 26, 085 43, 367, 750 990, 695 11, 626 9, 100, 170 311, 380 Eate. Vaccination expenses (poor rate) — Kegis "Lratiou of births, deaths, and marriages Lighting and watching rates Sewers lato '. Drainage and embankment rate Burial boa rd rates and fees Church rates Turnpike tolls Bridge and ferry tolls Market and fair tolls City of London improvements Light dues Pilot dues Harbor dues Duties levied by city of London Total . Amonnt. $434, 395 464, 40.5 180, 950 264, 660 1, 028. 140 1, 338. 650 57, 535 1,473,500 309, 245 130, 111) 8,565 1,033,635 1. 771, 980 9, 174, 455 2, 189, 730 155, 216, 500 The rapid increase of the expense of local government and of local in- debtedness is engaging thfe earnest and anxious attention of English economists. The tendency to reckless municipal extravagance, espe- cially in towns and cities, is apparently as strong on this as on the other side of the ocean. In England and Wales the local indebtedness was in — 1873 $400,000,000 1874 ..-. 437,500,000 1875 464,100,000 1876 498,271,090 1877 $531, 511, 925 1878 573,415,010 1879 642,434,935 1880 635,483,035 Local Taxation in London. The city of London proper, with its ancient and hospitable corpora- tion, with its large revenue from estates, tolls, and special privdeges, is after all a very small municipality. It covers scarcely 700 acres of grouud, and has at present a resident population of less than 52,000 people. The metropolitan district, or Greater London, as sometimes it is called, extends into four counties, embracing 120 square miles, with a population of 3,832,441, occupying 488,995 houses of the ratable value for taxation of $137,700,145. The division of the population be- tween the city and the vestries and districts of the metropolis is shown in the following table taken from the last authorized census : 654 REPORTiS UJN XAXATIUJN. 37)6 population, inlialited houses, and ratable value of London within the metropolis local management act, 1855. Fopnlation. Inhabited honses. Eateable an- nual TaJne. 60,276 155, 004 236,209 253, 669 89, 517 282, 628 126, 565 107, 098 127, 006 107, 831 186, 5.55 29, 865 69, 019 88, 101 162, 924 46,847 58, 652 86, 602 47, Oil 17,447 105, 573 36, 600 36, 010 45, 436 71, 301 59, 837 131, 264 210, 397 186, 400 45, 257 36, 122 32, 563 114, 811 58, 500 156, 625 28, 628 63, 664 71, 702 11,974 1,151 6,418 16, 021 24, 655 35, 082 11,503 34, 048 16,243 13, 187 16, 663 • 14, 009 27, 306 3,018 7,129 11, 380 20, 103 4,813 6, 766 11, 024 5,816 1,745 14, 047 4, 8.51 4,845 5,869 7,594 6,196 19, 785 30, 7! 4 27, 503 3,968 3,251 2,827 16,355 8,012 20, 487 3,436 10, 026 11, 534 1,455 182 $17,604,840 6,919,935 7,457,305 6,424,310 8, 396, 495 7,226,130 2,883,910 5,949,321) 1,789,270 1, 990,125 4,017,085 3,334,065 VBBTEIES. 2, 326, 765 Kensington ... 8, 240, 935 1, 391, 565 1, 185, 210 1,886,590 996, 185 Uermondsey St. MartlBS'-in-the-Fields 1, 913, 605 MileEndOld Town 1, 676, 720 584,900 Kotherhithe .. 966 085 2, 086, 415 Whitechapel . - 1, 849, 120 2,996,185 3,086,260 6,916,390 4, 711, 200 St. Giles 1,792,090 1,433,645 Strand 2,181,865 2,729,270 Limehouse . ... 1, 592, 345 3,262,380 .St. Savionr 1,523,930 1,642,200 Xjewiaham 2,641,535 1,023,975 The Charke Houser ; Gray'a Inn; the Close of the Collegiate Church of St. Peter ; Inner Temple ; Middle Temple ; Lin- 446,465 Total 3, 832, 441 488, 995 137,700,145 The govermental functions of the city of London proper are divided between the corporation and an authority called the commissioners of sewers. The former superintend the police, the city, courts of justice, bridges, markets, and education. The latter, street improvements, pav- ing, lighting, cleaning, sewers and drains, sanitary work, etc. The corporation of London enjoys some special and peculiar rights of taxation. It taxes all coal coming into the metropolitan police district at the rate of Is. Id. (26 cents) per ton. Nine-thirteenths of this is ap- propriated for general metropolitan improvements and the balance for city improvements. It collects a wine duty of 4s. (97 cents) per tun on wine imported by way of merchandise into the port of London. In 1884 these duties produced $2,766,810. The city also levies a tax on grain imported into the port of London at the rate of -pg of a penny per cwt. This in 1884 produced $87,245. This income is especially applied to the preservation of open spaces in the neighborhood of London. ENGLAND. 655 Statement of receipts and expenditures of the oity of London for the year ended Decern- ler 31, 1885. Items of income. Amount. Items of expenditure. Amount. Balance in hand December 31, 1884 $20, 755 680,975 8,430 15, 000 16, 455 164, 985 428, 285 38, 240 10, 175 985 135, 200 31,490 8,690 47, 025 42, 735 6,915 12, 245 47, 635 41, 860 21, 430 98, 175 1,100 379, 160 8,860 160, 000 Expenses of civil government $347, 680 77 655 Administration of justice (criminal)-. 39 725 Interest on Government securities 12 840 Markets, viz: Metropolitan cattle market London central markets Expenses in relation to gas and water. 7,055 30, 380 Erection of new council chamber Collection and management, rates, etc. Charges on markets, viz: 25, 720 68 040 108, 150 Metropolitan cattle market 200 560 Central fiah market 355 520 Lcuidon central fish market 85 980 42 375 Mayor's court fees (gross) Charges— metage and brokers' rents.. Expenses of magistracy a nd police Sanitary expenses port of London 15, 700 185 690 Grant in aid of pauper lunatics OfBceis' surplus fees and profits Waffes to workmen (jobbing -work) 29, 310 20, 360 Enlargement of Leadenhall market. . . 75, 840 305, 000 Cartual,9undry,and incidental receipts. Transfers, expenses of bills in Parlia- Remembrancer's ofl&ce suspense ac- 77, 805 23, 415 Enlargement of Pauper Lunatic Asy- Paleof premises and seonrities. Loans raised Ke-inibursement London central fisli 26, 135 Erection of new School of Music Erection of new London alms-houses. . Keceptiou of H. R. K. Prince Albert ]5, 320 52, 920 8,785 2, 426, 810 Investment in purchase of property 17, 600 40 620 Balance in hand December 31,1885..- 28,71 2, 426, 810 THE METROPOLITAN DTSTKICT. The metropolis of London for collecting rates and performing minor daties of administration is divided into 38 local authorities. There are, however, three boards, with special duties, which have jurisdiction over the whole, and in some cases beyond the whole, metropolitan rating area. These are the metropolitanboard of works, London school board, and the metropolitan police force. THE METROPOLITAN BOARD OF WORKS. The metropolitan board of works, constituted in 1855, has carried out some great public works; among these may be mentioned the main drainage of London, the Victoria, Albert, and Chelsea embankment, the lormation of Queen Victoria street, Northumberland, and Shaftesbury avenues. Freeing all the Thames bridges from toll charges, the widen - ingof several important streets, and the creation of Pinsbury and South- wark Parks. Among its other powers, this board has the regulation of the construction of theaters, music halls, and other public buildings, and the control and maintenance of the lire brigade, consisting of 669 ofiBcersand men. This board has verv extensive borrowing powers and discretion to make loans to smaller local bodies. It has borrowed up to January, 1886, $176,411,860, and loaned $31,875,460. The outstanding loans of 656 REPORTS ON TAXATION. the board on December 31, 1884, amounted to $122,730,295 and were apportioned, approximately, among the several purposes for which they had been raised, as follows : Sewerage $18,111,305 I Embaukment and street im- Artisan's dwellings 6,357,970 proveuients 55,716,785 Bridges 8, 829, 935 Loans to other local authori- Parks and open spaces 1,945,350. ties 30,559,790 Firebrigade 1,209,160 ! Total 122,730,295 The following table shows the receipts and expenditures of the board for the year ended December 31, 1885: Account showing the total receipts and payments by the metropolitan board of works for the year ended Uecember 'il, IdtlS. Items of receipts. Balance on 1st January, 1885 Rates Coal and wiue dues Contiibatiou for fire brigade: From Government From insurance officers Contribution towards improvements : City Hampatead Wandsworth Contributions from counties, etc., for bridtces Interest on loans and balances Eenta .*. Fees under various acts Costs of works, recovered Miscellaueoua income Sales of ground rents, etc Firemen's saving.s f und Loans raised by the board Temporary loans Loans repaid to the board Deposits by the board leturned Deposits with the boaid returnable, . . Peabody donation fund trustees: Re- fund of amount paid on their be- half; re-dwelling bouse improve- ment fund Investments (treasury bills) realized Total . f 1, 837, 040 4, 1«7, 975 1, ti28, 510 50, 000 11!7, lUO 2, 815 100, 01)0 3,750 19, 375 1,310,705 521, 905 41, 595 1,010 41, 160 981,495 3,280 8,462,715 1, 000, 000 1, 254, 120 153, 775 2,025 1,125 C, 480, 170 28, 223, 565 Items of payments. Interest of debt Sewerage, drainage, and working ex- penses of pumping stations and de- odorizing at outfalls Thames etubankmeiits (maintenance) Fire brigade (maintenance) Parks and open spaces (maintenance) . Bridges (maintenance) Expen.ses, various Establishment, law and parliamentary expenses, printing, etc Hy tlran ts Main drainage and sewers (construc- tion) Queen Victoria street (construction) .. Street iinproveraents Bridges, capital outlay Ferry at Woolwich Thames floods prevention District railway ventilators Contributions toward local and minor improvements Fire brigade stations and plant- Commutation of stamp duty, etc., on loan of 1884 Firemen's savings fund Dwelling-house improvement fund . .. Expenses on properties taken and re- let or sold Loans repaid Loans to school and asylum boards, vestries, etc Parks and commons (capital outlay).. Investment in treasury bills Deposits returned Balance on 3l8t December, 1885 Total Amount. $4, 239, iW 615,140 4.3, 748 580, 390 121, 210 43,810 9J, 5S0 287, 375 15, 1)70 820, 170 1,065 4, 083, 225 867, 685 135 24, 615 41,365 192, 905 174, 716 75, 525 1,810 327, 365 82, 360 1, 127, 666 7, 432, 760 415,565 5,989,400 8,840 607, 660 28,223,565 LONDON SCHOOL BOARD. This board, having jurisdiction over the whole metropolitan area, was established in 1870. In March, 1S86, there were 379,525 children and (j,141 regular and 1,043 pupil teachers on the rolls of the board. The fees charged to the children range from 2 to 12 cents each. This vari- ation dei)ends upon the pecuniary condition of each district. The rate is the same for all purposes in the same school. Tlie fees collected amount to about one tenth of the amount raised by rates, and about one-twentieth of the whole income of the board. The following table gives the receipts and expenditure of the board for the year ended March 25, 1886 : LiMs^ ENGLAND. 657 Beeeipts and eipendiiures of the London school hoard for the year ended March 25, 1886. Itema of income. Balance in hand March 2."i, 1885 ' Grants from committee of council on I education Grants from science and art depart- ment Amounts paid by r iting authorities . . School fees . . . Contrihutions from treasury in aid of industrial schools Loans raised Miscellaneous income Total . $770, COO 1, 327, 175 37, 775 5, 216, 880 535,400 23, 105 3, 500, 000 18, 240 Items of expenditure. Salaiies of officers of the staff Salaries of officers foe enforcing by- laws Salaries of officers, teachers, etc Books, apparatus, and stationery . . . Printing, postage, advertising, etc . Rents, rates, taxes, and insurance.. Furniture, fittings, cleanings, etc .. Fuel and light Purchase of land Erections and additions, etc., of schools Kepairs to buildings Industrial schools, expenses Interest on loans Legal and miscellaneous expenses. - Repayment of loans Ualance in hand March 25, 1886 Total Amount. $83, 835 152, 635 3, 761, 560 233,310 37, 025 296, 580 321, 090 304, 735 1, 145, 595 2, 035, 040 8,055 180,410 1,113,175 134, 625 476, 85". 1, 177, 810 11, 449, 233 LONDON POLICE. The city proper has its own police force, consisting of 109 officers and 793 men, with jurisdiction restricted to the limits of the city. The cost of this lorce for the year 1884 was $519,810. The metropolitan police force, consisting of 1,843 officers and 12,007 men, has the care of an area of 440,891 statute acres and a population of nearly 5,000,000. The following accounts, taken from the annual taxation returns for the year 1884, show the cost of the forces and the sources from which their income is derived : CITY POLICE. Items of expenditure. Salaries Wages to iuspectors and constables . Superanniiatiou fund Paid to police widows' pension fund- Clothing, helmets, accouterments, etc Chief office and stations' expenses. -- Pay to constables for extra services - Other expenditures Total ,$21, 375 369, 27:5 60, 010 2, 6.50 14,1190 59, 200 260 2,950 519,840 Items of receipts. Rates I Fiom corporation ' Re-imbursemeut from bridge house 1 estates fo? watching bridges ■ Re-imbursement for services of extra j constables employed in watching Fines and penalties '. Sale of old clothing Casual receipts Total . $344, 355 110, 640 3,825 4'., 995 2 945 2, 780 135 616, 675 METROPOLITAN POLICE. Salaries and establishment charges. . . Law charges Pay, clothing, and equipment Medical and f uueriil expenses Horses, vans, carts, etc Erection and maintenance of stations. Miscellaneous charges Setired allowances and pensions Superannuation .fund Special expenses incurred in the con veyance of naval .prisoners Bepayments to admiralty and war de partmentsfor lodgings of police, etc. Total. $19,3, 5. 5,331, 43, 69, 376, 196, 10, 712, 5, 9,1 6, 985. 595 From vote of Parliament Police Tates from parishes Special services' of police Re-imbursemeut of expenses incurred by police on special occasions From prison commis-sioners for con- veyance of prisoners Stoppages from pay of policcfor lodg- Sale of old stores and cast horses Fines and penalties Miscellaneous receipts Re-imbursement for conveyance of naval prisoners Issue of licenses under metropolitan carriage act On account of superann nation fund . . . Total $2, 645, 880 3, 376, 325 718,420 CO, 120 105, 510 50, 795 2, 'Z><'t 1,175 13, 530 159,890 93, 555 7, 232, 690 658 REPORTS ON TAXATION. The observations mfide ia tlie early part) of this report in regard to the incidence of local taxation applies generally to the city and metrop- olis of London. This fact, however, should be borne in mind: Traders pay a tax on the annual valuation of their shops and warehouses as well as on their residences, and thus a person of only $5,000 income from his business often pays a larger tax than a capitalist or man of leisure with an income three times as large. Thomas M. Waller, Consul- General, London, August 24, 1887. TAXATION, NATIONAL AND LOCAL, IN ENGLAND. BY LOSIN A. LAIRROP, CONSTTL AT BRISTOL. The income of the United Kingdom for the fiscal year ending March 31, 1887, was $441,625,000. It stands at about the same figure for the previous year; but each year before that shows a marked increase over its predecessor. In 187G, about the last of a series of years of great prosperity, public expenditure necessitated a revenue of $367,360,000. Each year since there has been an addition, until the entire advance amounts to an increase of 20 per cent, in the decade. The swelling revenue at a time of peace, and when, from the statements of promi- nent statesmen well qualified to speak, there seems good ground to doubt that the organization of the great spending dfepartments — the war and navy — is such that the nation gets its money's worth, is the occasion of grave concern to many who remember, too, that within the decade the purchasing power of money has been increased by 30 per cent., and that consequently the expenditure and revenue of the Gov- ernment has increased to an extent greater than appears upon the surface. The budget for the current fiscal year, prepared by that distinguished financier the present chancellor of the exchequer, Mr. Gosch en, provides for a revenue about as last year ; and it is therefore proper to conclude that the normal revenue of the nation must average about $441,000,000. A small part of this goes to reduce the national debt, which in 1877 amounted to $3,747,276,000; it stands to day at $3,580,216,000, having last year been reduced by $31,000,000. Of the revenue for the fiscal year 1886-'87, $370,413,000 was produced by taxation, the remainder accruing from the post-oflice, telegraphs, crown-lands, etc. Ninety-eight millions were collected for customs duties, and $122,800,000 for excise duties. These are the only indirect taxes levied; but amongst other things the excise controls licenses which are not indirect taxes. Deduct- ing $17,000,000 for licenses, the sum of the two duties is $203,800,000. This is the amount collected by indirect taxation. It is 46 per cent of the whole revenue, and 55 per cent, of that portion of the revenue re- sulting from taxation. This proportion might with signal advantage be largely increased. It is desirable to examine with some minuteness the various sources of revenue and to consider upon what classes of the community falls the incidence of taxation. First. As to customs, there are some twenty dutiable articles, as spec- ified in tables 2a and 2b, where is also shown the rate of duty upon each.. Table 3 shows the amount received from each class, of dutiable, ENGLAND. 659 articles during the fiscal year 188o-'86 (figures for last fiscal year are not yet at hand in detail). It will he observed that all duties are specific. This simplifies the work of collectiou, but is ]>roductive of a measure of injustice. Take tea, for instance : This article brings in each year about $20,000,000 to the revenue, and the duty for a considerable period has stood at 12 cents a pound. The consumj)tion is enormous, and each year increases ; in 1885 it was over 5 pounds per head of pojiulation, and to-day it is even more. But the increase, to a considerable extent, is amongst the poor (some of whom drink incredible quantities), who pay from 24 to 48 cents per pound. Th6 duty being 12 cents, they are taxed one-third the Aalae of their tea, while the richer classes are mulcted in less than a sixth. We shall see further on, however, that such inequalities are more than compensated for to the poor. The duty on tobacco has for some time been 85 cents per pound, unmanufact- ured, but the last budget has reduced this to 77 cents. It has been near this figure since 1825, and this enormous tax of several hundred per cent, ad valorem has not only had a tendency to render small the consumption of tobacco in GreatBritain as comijared with the Continent and the United States, but has placed a premium upou smuggling. The small reduction just made will not reduce the price of tobacco, but will allow more of the weed and less of water — the only adraixture allowed by law — in the cheaper grades, selling at 6 and 7 cents per ounce. The reduction is a concession to the poorer classes ; those bet- ter off got theirs by a reduction of the income tax. The tobacco duty is the stand-by of the customs, and produces something less than half the entire customs revenue. Here, again, the specific duty tells^against the poorer smoker. The duties on tea, coffee, tobacco, and wiue are levied upon the principles underlying a tariff for revenue only, and the propriety of taxing these commodities is, I think, generally admitted, except perhaps as to tea. The United States have waived this duty with advantage, but it is likely that its remission in Britain would only benefit the middle-man. The Government would thus incur a consider- able loss without at all encouraging the use of tea as a substitute for alcohol. The existence of an excise duty upon beer, liquors, gold and silver plate, and some few other articles, necessitates a countervailing customs duty ; but of this class nothing is imported in sufficient quan- tities, excepting spirits, to bring in revenue worth speaking of. The cost of collecting customs duties for the year ending March 31, 1886, was $4,649,000, or 4^ per cent, of the gross amount collected. The brevity of the tariff list, the fact that duties are specific, and the fact that the board of trade relieves the customs of some of its usual func- tions, prevent the necessity of a large staff and make the cost of col- lection small. Second. As to internal revenue or excise duties. These are said to have been first levied in 1646, when they were imported from Holland. Blackstone says, " From the first original to the present day the very name has been odious to the people of England ; " but long generations of usage have thoroughly accustomed the people to the excise, and the words of the sage of the law would not now apply. There was formerly a lengthened list of commodities subject to excise duties ; but one by one the taxes have been repealed until there only remain charges upon articles that all nations seem to agree in taxing heavily. The excise duty upon glass was repealed in 1844 ; upon ,bricks, 1860 ; upon soap 1853; upon paper, about 1862. The charges now remaining are upon Beer, every 36 gallons of wort, specific gravity 1057 degrees, $1.52 138— Ko. 99 26 660 REPORTS ON TAXATION. chicory, per 100 pounds, $2.94 ; upon every substitute for coffee or chicory, ^ pound, 1 cent ; railway passengers, 5 per cent, on passenger fares ; spirits, per proof- gallon, $2.43. The customs duties exceed the excise duties : Upon beer, by 6 cents in 36 gallons; upon chicory, by 28 cents per 100 pounds ; upon spirits, by 9 cents per proof-gallon. The charge upon beer is comparatively light, it will be noticed, and beer- drinkers contribute proportionately less to the revenue than do wine and spirit consumers. The great drink of the laborer and artisan is beer, and these classes are favored by the lightness of the tax. The administration of this branch of the public taxation is in the hands of the board of inland-revenue, a department created in 1849 by con- solidating the various ofi&ces engaged in collecting excise duties, stamp duties, assessed taxes, and income tax. The revenue from excise was, for the fiscal year ending April 30, 1887, $122,879,000. The budget re turn of the year estimated that this revenue would reach $125,039,000, There was thus an overestimate of $2,160,000, due principally to de- creased consumption of beer and spirits. A strong temperance senti ment is growing, but the decreased consumption must undoubtedly be attributed mostly to general trade depression. Table 4a shows the items that contributed to the excise, and the amounts from each for the fiscal year 1885-'8G(1886-'87 not yet published). The tax upon spirits and beer make up four- fifths of the total. There were over 27,000,000 gallons of the former and 27,000,000 barrels of the latter retained for home consumption in the year 1886. Excisable or customable articles •except tea, can only, as a rule, be sold under license. These licenses, bring into the revenue (Table 4a) about 17,000,000 a year, and are is- sued by the inland-revenue authorities ; but in the case of retailers of liquor and beer only upon the order of the local magistrates, who have plenary power and are most rigidly careful in its exercise. They turn to the police for information as to the character of individuals applying for licenses, and as to the previous management of their establishments ; and it has sometimes seemed to me, in observing particular cases, that there is an undue power thus lodged in the hands of the police, who may •easily ruin an applicant by reporting him unworthy. Eetailers of liquor pay from $21 to $300, according to the rental of the house they occupy. The schedule of excise licensees (Table 5) contains items that with us would be retained for State or purely municipal taxation, but which in Great Britain are made to contribute to the imperial revenue. Such is the tax on dogs, on guns for sporting purposes, on house-agents, on hawkers, on dealers in gold and silver ware, etc. The passenger duty is the next item in Table 4a. It brings in about a million and a half a year, and is a tax of 5 per cent, upon all passenger fares exceeding the rate of 2 cents per mile. The latter is the usual charge for third-class traveling, and as the accommodation improves each year the number traveling thus increases, and the governmental revenue consequently diminishes. Third, as to stamp duties. The amount realized from these was iu the last fiscal year $57,570,695. These swollen figures indicate at a glance that contracts of almost every nature are taxed, and that the tax must be heavy. Tables 6a, 66, 6c show respectively what instru- ments require stamping and the amount and the sums realized for the fiscal year 1885-'86. The tax on bills of exchange negotiated in the United Kingdom of Is. in every hundred pounds, one-twentieth of 1 per cent., seems an onerous charge ; but is after all as nothingwompared with the tax of one-half of 1 per cent, on par value, exacted for trans- ferring shares and stock. It has prior to the present year been at the ENGLAND. 661 same rate as the tax on bills of exchango, but has been raised in the lately bronght-forward budget. There is likely to be some attempt made to tax the stock transactions that are settled by the payment of differences, and where no shares pass, but it seems impracticable. Thus the gamblers escape, while investors are mulcted. The stamp upon land transfers are a heavy burden to the country, and with other charges make the transfer of real property so cxpf^nsivc as to be sometimes pro- hibitory. A friend bought a house and lot in Bristol for $10,000, and the cost of transfer to him was $350. This is not an unusual propor- tion, nor does it include the vendor's expense, which was considerable. Theprobate duties, which fall upon the gross personal property left by adecedent and which are included under the head of stamps, brought in (Table U) tor the fiscal year 1S85-'S0, nearly $1'(!,()00,000. They range from $2Ao, when the estate is valued at from £20 to £100 ($07.33 to $486.65), up to $5,839.80, when the estate is valued between £80,000 and £90,000 (8389,320 and $437.08,-,) ; up to $14,599.50 for estates from £200.000 to £250,000 ($973,300 to .81,216,655); up to $65,697.75 for estates from £900,000 to £1,000,000 ($4,379,850 to $4,S-:;6,50()) ; and there is $7,299.73 additional for every £100,000 ($486,650) above £1,000,000. In the year ending Match 31, 1885, probate duty was paid upon property valued at $653,503,319 and the amount collected was $19,361,788, or 2^^ jjer cent. The legacy and succession duties are a tax levied upon personalty and realty, respectively, upon the decease of its owner. Probate duties are paid by the estate before the proving of the will. Legacy and succession duties are paid by legatees or heirs upon entering upon their bequests or successions. Only freehold estates are taxed to the succession duty, consequently i)roperties are oftentimes taken upon a long lease— nine hundred and ninety-nine years — to evade this payment. Itis an unfortunate tax that thus compli- cates and makes more intricate the transfer of land. The revenue for the fiscal year 1885-'86 from these duties was $16,000,000. Here, as shown in the stamp duty (Table No. 6b), the amount of the tax depends upon the degree of consanguinity of the heir or legatee; and if a distant re- lation or a stranger in blood, 10 per cent, of his legacy mustfiud its way into the coffers of the Government. This onerous tax is itself a legacy from the feudal system, which has left a deep impress upon the institu- tions of this country, and in which the over-lord was entitled to large sums from heirs upon entering the estate of a deceased feudal vassal. The husband and wife are exempt from this tax, as also are the royal family. The amount of property upon which it was paid was, for the fiscal year 1884-'85, $228,268,049, and the amount collected was $16,21-9,864 or 7JL per cent. The amount of the probate and legacy and succession duties together was $35,5:->l,652. collected from property to the value of $881,771,368. Thus in this year 4/„ per cent, of the prop- erty left by decedents was gathered into the national treasury. Fourth, as to land tax and house duty. The amount collected under this head was, for the fiscal year ending March 31, 1887, $14,502,1 7o, of which something less than a third should be credited to the land t,ix. The two items combined under this head in the revenue returns mean two very dilferent things, and I see no reason for the practice of com- bining them. The history of the land tax is so curious and its incidence so inequitable as to merit notice at some length. It has existed in some form for centuries, but was re-imposed in 1692 upon a new valua- tion of the landed property of the country. In 1798, under pressure of money needs and x)erhaps to abolish an ancient and unscientifically dis- tributed tax, the then Government made this tax perpetual and ex- 662 REPORTS ON TAXATION. tended to land owners the privilege of redeeming it forever by a single payment. The terms of redemption were most favorable to landlords, and the obvious idea was that land-owners would all redeem, the treas- ury be filled, and the tax disappear.* But the subsequent construction of the act was — though a contrary intent was admitted in the Govern- ment — that the levy and redemption was to be upon the then existing basis of valuation, i. e., that of 1692. It was consequently cheaper for landlords to pay the annual tax than to redeem; so the act failed of its purpose. The tax exists to-day under the old conditions, and the land- owners are paying 20 per cent, upon the annual value of their land, etc.; that value being the result of the appraisal of 1692, over two hun- dred years ago! The result of this curious medley is that the tax amounts frequently to less than a thousandth of 1 per cent, of annual values and actually brings in less to-day than when first established two hundred years ago; though it must be remembered that consider- able quantities of land have been redeemed from the tax; and this re- demption prevents the Government from wiping off the tax entirely upon unredeemed lands. Under shelter of this ancient law the land of the country, as land, practically escapes taxation, excepting for the stamp duties upon its transfer and the death duties once a generation; though we shall see farther on that it is reached by the property and income tax. The house duty is a tax upon inhabited houses, rising in proportion as rent rises, and designed to bear entirely upon occupiers and not upon landlords ; hence the rate is always low, otherwise rents would fall and the landlords be taxed. Private houses are charged more than those used for business purposes, the rate being 9 pence in the pound of an- nual value, or 3| per cent, for former; and 6 pence in the pound, or 2J per cent, for business property and farm-houses. Fifth. As to property and income tax. The property tax is the tax upon the annual value of real property; the income tax falls upon the incomes. This tax, repealed in 1816, was re-imposed in 1812 by SirEob- ert Peel, who utilized the old machinery for its collection. In introduc- ing the measure imposing this tax he referred to the latter as an un- popular and obnoxious tax that ought to be reserved for time" of war. He called it inquisitorial, and stated that nothing but a political neces- sity of magnitude and emergency would justify its imposition. Not- withstanding the prevailing idea at the time that the tax was temporary, it still exists and is the standby and holdfast of the chancellor of the exchequer. The people are thoroughly inured to it, and while object- ing- to some of its unavoidable accompaniments, recognize the impossi- bility of abrogating it except by recourse to an enlarged customs tariff or by a radical change of method. The amount realized from it for the last fiscal year was $77,377,350. The large amount accruing from this tax, its importance as an indication of the prosperity or otherwise of the nation, its adoption as a permanent measure, when in the United States it is considered as only a war measure, justify me in treating it at some length. The income and property tax is collected under five schedules, fully set out in Table 7. It may be well to summarize this table and say that schedule A covers property in land, and B the profits. That is to say, the land-owner i)ays under schedule A, and his tenant-farmer under schedule B; O covers governmental investments ; r>, income from pro- fessions, trades, and occui)atious ; and E, governmental and municipal salaries, etc. * Sir Morton Petu. Taxation, 1>^63.. ENGLAND. " 663 The income tax for the current year is 7d. in the poUnd, or 2}l per cent, for Schedules C, D, E. Property under Schedule B is taxe"d at ■one-half this rate. Incomes under $730 are exempt, and where under .$1,950 are exempt as respects $580. The great body of artisans and laborers escape altogether this tax. An elaborate, j et excellent, system exists for imposing and collecting this tax. Appeals for overvalued incomes lie from one ofBcer to another up, finally, to the courts. But many paying under Schedule D — men in business — are said to overpay rather than appeal, the most important appellate authority being coai- inissioners who are local business men, and who are empowered to ex- amine the books and papers of the appellant. Those who ought to know have told me that if a trader appeals and shows his business less prosperous, knowledge of his condition is sure to filter out to the com- munity with injury to his business and his credit. Income tax-collect- ors are compensated by a percentage, amounting altogether to about 5d. in the pound (nearly 2 per cent). This, it should be understood, is divided in different degrees among several. We turn now to Schedule A. The tax is levied upon yearly values, but unproductive land does not escape entirely. All land is supposed to be of some value; but the basis not only for this tax, but for all rates and taxes, general and municipal, is the annual value fixed by the poor-law authorities. This is defined to be the rental at which the hereditament might reasonably be expected to let from year to year, free of all tenant rates and taxes. It is worthy of note, however, that ■Crown valuations are always higher thau local A-aluations. In ]883-'S4 the gross value of the income-tax assessment exceeded the gross esti- mated rental for the purposes of the poor-rate by 8.4 per cent. The annual value of parks, pleasure-grounds, waste lands, etc., so rated, would be small. Thus taxation is not so regulated as to encourage laud improvement. I have i)ointed out how the land escapes from the incidence of the land-tax ; and during that portion of the century 1816-42, when there was no property tax, land, at that time the most important interest in the country, practically escaped taxation for national purposes, while its products were heavily protected by the corn laws. Were the property tax removed to-morrow, a general re- organization must ensue or the land would escape almost scot-free. It would be reached once a generation by the succession duties, and when transferred by deed, by the stamps required for the instrument of transfer. In 1813 the yearly value of land assessed under this schedule was $270,000,000; while under Schedule D — trades and professions — the amount assessed was $175,500,000, or C3 per cent, of the former. In 1885 the amount assessed under A was $946,000,000, and under D $1,- 423,500,000. Here we see the condition of 1813 reversed. The income from trades and professions has increased by 711 per cent., while that from land has increased by only 242 per cent., and the former, instead •of 63 per cent., is now 150 per cent, of the latter. It is only one of the many signal proofs of the gradual loss of prestige and power by the landed interests ; and the result of this change has been strikingly apparent in legislation and in a slow, but general, reorganization of societv. We'turn now to Schedule B, which requires no special comment, fur- ther than to say that the farmer's income has been, until the current year, assumed to be seven-eighths of half his rent; this assumption, advisable on account of the well-known absence of book-keeping amongst farmers, probably favored them during prosperous years. It is far otherwise now, 664 KEPORTS ON TAXATION. and the last budget allows the farmer an option of paying upon actual income. Schedules O and E require no special mention. The most important, Schedule D, includes all trades, professions, and avocations. Returns are made upon the average of the three pre- ceding years. No deductions are allowed for losses unconnected with the trade for which the i-eturn is made, nor for capital withdrawn or employed in improvement of premises, nor for debts proved to be bad to the authorities; but persons carrj'ing on two or more concerns may set the loss in one against profit in the other. Arrearages under tbis schedule, as well as under the others, are recoverable by distress. This schedule and Schedule A, the two most important, show each year, and have so done for many years, an increase in annual values, and they are pointed to by theorists as evidence that the depression so long aflf'ecting trade is more apparent than real ; but it is the increase, unfortunately, and not the depression, that is more apparent tban real. Under Schedule "A" the annual value of land has declined from $325,621,381 in 1875, to $316,513,101 in 18S5, having in the mean time been as high as $338,455,342. This is a serious decline in an agricult- ural and highly-cultivated country, such as this; nor do the figures represent at all accurately the actual fall in values, for official valuations are necessarily a considerable way behind actual conditions. But, not- withstanding this decline, the schedule as a whole has been boosted up $155,728,000 in the ten years simply by the increased annual value of house property, which is bound to grow, be the times good or bad, to accommodate the enlarging population. England and Wales alone would require, at the average rate of increase, some 400,000 new houses; indeed, the last census (1871-'81) tells us that 575,000 were erected in that decade, so that accumulations of capital in house property are not indicative of prosperous times. It may be well to point out here that the farmers' schedule, B, shows annual values falling from $324,848,608 in 18C5, to $317,457,397 in 1875. It must never be forgotten that all these figures reier to annual and not to capital values, and that it we desire to approximate the reduction in farmers' capital we must take these figures at, say, thirty years' purchase. This gives us as loss, in ten years, of farmers' capital, $221,736,330, but their actual loss has been far greater. Landlord after landlord has for years past, as is notorious, been remitting to all tenants 10, 15, 20, often 30 per cent, of their nominal rentals, ostensibly as an act of grace, but really because the land would bear no more; but the farmers' income, as I have before ex- I)lained, is assumed, for income-tax purposes, to be seven-eighths of half his rental — his nominal, not his actual rental — so that he is over- rated by the amount of the landlord's rebate, and his losses thus appear smaller than they actually are. But, to return to Schedule D, values increased under this heading from $l,29!),355,500iu 1875 to $1,423,451,250 in 1885. But this increase of $124,095,750 is due, to a considerable extent, to extensions and en- largements of quasi-public corporations, which increase within certain limits independent of general prosperity. Railways show a leap in the decade from $134,047,742 to $180,440,087 (annual income); canals, from $13,944,885 (1876) to $17,251,742; gas-works, from $12,798,895 to $24,457,569; fisheries, salt, alum-works, water-works, etc., from $18,492,700 to $25,987,110. )n these few great corporate interests we have, then, an increase of $68,850,000; more than half the entire increase under the schedule. But the annual ])iofits from mines de- creased during the decade from $68,656,582 to $36,985,400, and those from iron-works fell from $35,126,397 to $11,022,622. This awful fall ENGLAND. 665 indicates something of the condition of the iron trade in this country. Deducting these losses on profits from the increase, in the profits of the other great corporations given above, we obtain $13,500,000 as tte in- crease in 1885 ovei; 1875 on incomes of these few specially mentioned companies. Subtracting this from the entire increase under Sched- ule D we obtain $110,500,000, which represents the accretion to in- comes of private individuals and the less important limited coinpn- nies. But this is not an increase greater than is to be expected from' the growth of population and the re-investment eacli year of tLie sav- ings and hoardings of the previous years. And, again, tliree-fourths of those assessed to income tax pay upon incomes of less than $1,500' per annum. As incomes less than $730 are untaxed and artisans and laborers are thus exempt, the class who pay ui)on incomes rang- ing from $730 to $1,500 are the small shop-keepers and retail deal- ers. Now, it is an admitted and striking fact that while during the depression of the last decade, the price of raw materials, agricul- tural products, and manufactured articles has depreciated from 30 to 40 per cent., the price of commodities to the ultimate consumer has not been lowered in anything like the same proportion. The retail dealer has, in other words, reaped the advantage; and has been corre- spondingly prosperous. Hence an improvement in income-tax returns, but not an improvement showing general prosperity ; rather showing an undue advantage to the retailer at the expense of the producer, manu- facturer, and consumer. We see, then, that the figures presented it» Schedules A and D are not, fi-om year to year, to be taken without many qualifications, and much careful study, as indices of the general welfare. Some figures and weighty conmeuts from the Economist of April 10, as to the incidence of the income tax, are well worth attention. This able financial paper points out that the imperial receipts from taxation for the five yearsending March 31, 1887, amounted to $1,799,787,000; that the receipts for the five previous years were $1,662,240,000; that there was thus an increase of $137,540,000 ; that the revenue from the customs and excise was stationary during these two quinquennial periods; and that over one hundred millions of the increase came from the income tax, the bulk of the remainder being from stamps. The poorer classes, tlie Economist further points out, are practically untouched except by customs and excise, and have not therefore contributed towards the in- creased revenue, which has come mainly from the smaller trading classes, through an increased income-tax rate each year. In 1877 it was raised from 2d. to 3d. in the pound (eight- tenths of 1 per cent, to 1^^ per cent.); in 1879, 5d. in the pound (2+ percent.) ; in 1881, 6r?. in tlie pound {2i per cent); in 1883, 6},d. (SJ^-per cent.) ; in 1886, 8d. (S^^j per cent.); and in 1887, Id. [2^%^ per cent.). The just conclusion of the paper is that the state has not fairlj' apportioned its growing burden. We have now considered the various sources of the revenue from tax- ation of the United Kingdom, and we have seen that more than half of this revenue proceeds from direct taxation. It now remains to point out certain general principles that appear to govern the collection of these direct taxes. We note first, that values are annual, not capital. This is in striking contrast to the American procedure, and is only pos- sible where interest remains about the same year in and year out, and where there are no sudden and violent fluctuations, such as the rapid development of Western cities produces. In the United States a house is said to be worth $10,000; in England it is said to bring in §500 a year, hence is worth $10,000. In the former case the capital value is the point of departure; in the latter, the annual worth. While the English sys- 666 REPORTS ON TAXATION. tem in some classes of cases probably arrives more nearly at the actual value of property, the former is more simple and uniform, and it seems to me to be preferable. The various considerations that have led me to adopt this opinion were powerfully set forth by Mr. J. D. Hume, a member of Parliament, who some years ago was at the head of a Par- liamentary committee to consider the general subject of taxation in Britain, and whose opinions on such subjects carried much weight. Party considerations prevented due attention to the committee's work. And now we come to an important consequence of annual valuation which differentiates the system still further from that in use with us. Yearly value being what is assessed, unproductive property escapes taxation. Land of course is always assumed to be productive, and pays the land tax and property tax ; but, if producing little or nothing, is assessed low. But unoccupied houses do not pay the house duty; nor would they be charged to the income and property tax. They escape also municipal taxation and the poor rate. Hence a landlord with a vacant house is enabled to throw a portion of his burden upon the gen- eral community, notwithstanding that he obtains for his house all that occupied houses obtain from the general and local government in tlie way of protection. A man who has lived in his own house all his life has paid a somewhat increased local and general tax because his neigh- bor could not rent his house ; and yet he has had no advantage from the authorities for this. This seems inequitable. As with real property, so with personal. This latter is reached through the income tax alone (except legacy duties once a generation) ; hence when unproductive it is tax free. A ship not earning money pays nuthing ; yet the English flag protects it. Household furniture brings nothing into the revenue, and all the vast accumulations of works of art that adorn the homes of this wealthy nation are untroubled by the tax collector. It costs a trifle to keep a carriage ; but pianos, watches, paintings, sculpture, libraries, are all untaxed, as also are unproductive investments in corporation stock. We note, farther, that additions to the revenue, when necessary, have of late years been made by increasing the direct taxation — the indirect taxes have been practically stationary for years — and that the simple expedient has been resorted to of increasing the rate of the income tax. Now, remembering that half the amount accruing from imperial taxes is the result of direct taxation, and that the last ten years have been unprosperous, this resort of the chancellors of the exchequer to the in- come tax, under such circumstances, is confirmatory of wliat a general inspection of the system suggests, viz, that there is a notable lack of elasticity. By this I mean that there appears no opening by which in an emergency an increased revenue may be produced upon existing lines, except by increasing the income-tax rate. It is like an army re- cruited to its fall capacity. If more soldiei's are needed a new organi- zation must be effected. This view is further confirmed by Mr. Gosch- en's action in his budget for 1887-'88. He has reduced the income tax a penny in the pound ; but, in order to do it, he has been obliged to considerably reduce the amount annually laid aside towards the reduc- tion of the public debt. He has been roundly abused for tbis ; but from an American point of view — considering an income tax as a last resort, and to be got rid of before the public debt, as the greater of two evils — Mr. Goschen was right. We note, farther, that the vast body of artisans, laborers, and the poorer classes are not directly taxed at all for imperial purposes. In- directly they pay, through the tea, tobacco, and beer they consume, but ENGLAND. 667 their taxes are proportionately very light, as compaied with those of their wealthier coiintrymeu. Doubtless their earnings are small, but it is a disadvantage to theirdevelopinent as citizens that they do not bear their share of the burdens of the state. In concluding that portion of this report that refers to imperial taxa- tion, I am glad to bear testimony to the readiness with which the peo- ple of England bear their burden of taxation — a burden rendered more diflicult to carry for the reason that so much of it is direct. They boast that they are grumblers; but while they grumble they pay, and they do not invariably hold back till the last day to save interest. Tithes are not, strictly speaking, a tax. As, however, they are a per- petual charge upon land and had a quasi-public origin, a few words upon the subject will not be out of place. They had their origin in the earlier ages of the Christian era in voluntary gifts to the clergy, and Charlemagne, in 778, is thought to have first promulgated general laws making the payment compulsory. Ten years after this an ecclesiastical code was drawn up by the spiritual and secular authorities of several of the kingdoms of the Saxon Heptarchy, and an ordinance de decimis dandis p-Assed ; thus some little time before England became England the payment of tithes was obligatory, and the obligation has continued through the intervening centuries down to to-day. The statute law has materially changed its nature and the nature of the tithe itself. A hundred years ago tithes were defined to be a tenth part of the increase yearly arising from the profits of land, stocks upon land, and the indus- try of parishioners, payable for the maintenance of the parish priest, and they were usually paid in kind. But such j)ayments are unsuitable to modern conditions, and the tithe-gatherer, marking for the rector a tenth of all the sheaves of wheat in the parish, and collecting the off- spring of the sheep and cattle, and the products of the orchard, dairy, etc., is seen no more, for the tithe-commutation act of 1836 has com- muted all such payments into a perpetual charge upon land, payable by the tenant. But this change of methods by no means has reconciled the faimer to the charge, for he objects to the payment at all, and not to the mode of collection simply. Mr. Chancellor Ken t says : " The most litigious cases in the exchequer reports are those relating to tithes, and it is a great relief to the labors of the student, and a greater one to theduties of the courts, and infinitely more to the agricultural interests of the country that the doctrine of tithes is unknown to our law." There is a constant and organized resistance to the payment of tithes in many parishes, particularly at the present moment in Wales, and it is certain that as the farming interests of this country become more and more depressed, as seems inevitable, the resistance to the tithe will become more and more pronounced. Though perpetual, the tithe-rent charge fluctuates and is based upon seven-year averages, and is specified in terms of grain, which are turned into terms of money at average prices. These attempts to safeguard the farmer from undue payment have not been entirely successful, and the present Government, recognizing this, and desiring to soften the obnoxious charge as much as possible in every way, on March 31, of this year introduced a bill providing that the tithe shall hereafter be collected from the landlord, giving him 5 per cent, off as compensation for his trouble in re-collecting from tenants through increased rentals, and empowering county court j udges to grant reductions where the charge is such as to drive land out of cultivation. Owing to depressed agricultural conditions, I think it likely that in many cases the landlord will be unable to recoup himself from his ten- ants, and that consequently the charge in future will fall upon him. 668 REPORTS ON TAXATION. The new bill provides for redemption of tithes at twenty years' pur- chase. The old one demanded twenty-five, but under neither bill is there likely to be much redemption, as -£100 in tithe-rent charge is now worth only £87 8s lOd, though in the neighborhood of towns where lands have become divided for building purposes redemption increases. There is a dearth of statistical information as to tithes. Under the act of 1836 the tithes of some twelve thouand parishes in England and Wales have been commuted into a rent charge, under which some $20,000,000 are annually collected. Something more than half of this goes to i^arochial incumbents, while about $3,500,000 go to lay impro- priators, or secular owners who have obtained possession of the tithe. It is not within the scope of this report to deal with systems of gov- ernment, either local or national; but schemes for taxation can not be considered without more or less reference to schemes for government. I therefore set out at length the various bodies that locally govern Eng- land and Wales, all of which are more or less under the control of the local governrnent board in London, whose head is a cabinet oiBcer. There are 647 boards of guardians of the poor, covering 14,894 parishes ;, county authorities of 64 counties and divisions of counties ; corporations- of 253 municipal boroughs ; 239 town councils acting as urbane sanitary authorities ; commissioners of 45 improvement act districts ; 694 local boards; 23 joint boards; 578 rural sanitary authorities; 47 port sani- tary authorities ; 936 burial boards ; 17 commissioners of baths and wash-houses ; 184 lighting and watching inspectors ; 4 commissioners of markets and fairs ; 23 bridge and ferry trustees ; 38 metropolitan ves- tries and district boards ; the conservators of two metropolitan com- mons; 2 metropolitan free libraries commissioners; the commissioners, of London City; the metropolitan board of works; the London police commissioners ; the London corporation ; 53 sewer commissioners ; 201 drainage, embankment, and conservancy boards; the church wardens of 157 parishes in which church rates are still levied- ; 82 harbor, pier,, and dock authorities ; 375 highway boards acting for 7,648 highway parishes; 34 rural sanitary authorities, exercising the powers of highway boards for 619 highway parishes ; 6,601 surveyors of separate highway parishes ; and 78 turnpike trustees. These various bodies, acting under different and perhaps frequently amended statutes, make up perhaps as complete a local government system as human ingenuity could de- vise. The aggregate receipts of these authorities, says the local govern- ment board report for lSS5-'86, during the year lS83-'84, after making the necessary deductions to avoid duplicate reckonings, amounted to $210,195,118. Of this $134,720,000 (59 per cent.) was the result of taxation through rates. The remainder came from parliamentary con- tributions, tolls, dues, revenue from gas works, water works, etc. Rates levied in London increased in the decade ending with 1834, 59.8 per cent.; in urban districts outside London, 52.4 per cent.; in districts partly urban partly rural, 12^ per cent.; and in rural districts, 11 per cent. The local debt of England and Wales in 1884 amounted to $802,- 388,500, while the national debt was $3,632,472,000. The local gov- ernment board has made an effort to trace the objects to accomplish which the various local loans were effected, and they have succeeded fairly well. The result of their effort is shown in Table 13. A general summary of urban and rural financial transactions for the year 1883-'84 is given in Table 12. Forty millions for poor-rates is the largest item of expenditure in Table 10, and we will therefore first consider this. The poor-laws date from. ENGLAND. . 669 1537, and from time to time have been altered to accord with altering conditions. The principal statute under which the system is now ad- ministered is the poor law amendment act of 1834, which vested io three commissioners the power to makes rules, resulatioiis, and orders for the management of the poor, the govenimeut of the work houses, and the maintenance and education of pauper children. They were empowered to combine parishes into unions, and each parish was to contribute in proportion as its poor received relief. The administrative powers of the unions were vested in boards of guardians, elected by the rate-payers. The board, by the poor-rate and assessment collection act, 1869, are to appoint a valuation committee to which officers, called overseers, report the valuation of all ratable hereditaments in eauh of the parishes included within the union. These appraisals tlie commit- tee revise, and there lies an appeal from their revision to the justices of the peace. The basis of valuation, as I have before said, is the rent at which the hereditament might reasonably be expected to let from year to year free of all tenants' rates and tnxes. With these appraisals be- fore them the board of guardians proceed to "make a rate" by levying upon each jjound of annual value of hereditaments such a percentage as will produce in the aggregate sufficient to cover the estimated ex- pense for the ensuing year. Eatable hereditaments include land, houses, things connected with the soil, and also rights and privileges springing from it. Occupiers, not owners, pay the rate, and vacant houses are exempt. If the annual value of a house be less than £8 the owner may pay the tax, receiving a discount of 25 per cent., or he may be compelled by the authorities to do it, and if he agrees to pay the poor-rate, whether liis house be vacant or occupied, he receives a rebate of 30 per cent. This course is generally })ursued, especially in towns, and saves the authorities an infinity of trouble and expense. The amount actually collected in the year 1884-'85 for poor rates was $75,000,000, but the guardians collect large sums for other local govern- ing bodies, so that only $40,000,000 of this sum was paid for actual re- lief to the poor, the remainder being handed over to the authorities for whom it was collected. This sum represented an average charge of $1.52 per head of estimated jjopulation, and an average of Is. 2d. in the pound (5| per cent.) on the ratable value of property liable to con- tribute to the poor rate. These figures have not materially altered in ten years. It will be observed that the same principle obtains with the poor rate as governs the collection of national taxes, viz, that personal property and unproductive house property escape the charge. The principal items in relief expenditure were as follows: In maintenance $9,351, 403 Ont relief 12,019,505 Maintenance of lunatics 5,781,160 Work-bouse and other loans repaid 2,442, 652 Salaries, rations of officers, etc 6, 603, 563 Other expenses connected with relief 5, 12u,7f3. • 41,321,370 The number relieved during the year was 768,938, or one in 35 of es- timated population. ISTiuety-flve thousand eight hundred and forty- three were adult able-bodied men or women, being one to 283 of popu- lation. Five hundred and eighty- live thousand one hundred and eighteen were out-door paupers ; 183,820 in-door. Bach year the pro- portion of the latter slowly grows as public sentiment becomes stronger and stronger against out-door relief, which, in some cases, may be said 670 • REPORTS ON TAXATION. to be a payment in aid of wages. It is a deplorable system that begins by paying insnffleieiit wages; then compensates by remitting taxes: then, if more be necessary, extends the hand of official charity. The effect upon the poorer classes of labor is lamentable. I shall consider the poor rates in their local application, in connection ■with the accounts of the city of Bristol, to which I now turn. Here exist great difHciiltifs in the obtaining of statistical information, owing to the different subdivisions for different purposes of the city. The poor-law authorities collect the taxes for the city authorities, thus re- lieving the city of the cost of a considerable staff of officials; but the municipality is divided for poor-law purposes into three different unions, two of which include adjacent villages not part of the city. Then, again, the very important sanitary functions of the muuicipality are performed by the town council, not as a town council but as a sort of committee of the whole, called the Urban Sanitary Authority. The reason of this peculiar separation of function lies in the fact that mu- nicipal government began long before sanitary science, and when the latter did come into being its administration was by statute grafted onto the already existing authority, but rather as a separate and dis- tinct branch than as a natural concomitant. The sanitary authority has then a separate organization, levies its separate rates, which are col- lected by its own staff', and has, in the case of Bristol, a somewhat differ- ent boundary than has the jurisdictional limit of the city authority proper. The docks committee of the town council also collect, through the poor-law administration, a small rate in aid of the income from the docks. In this intricate confusion of governing bodies and boundaries we may search for such statistics as are necessary, when pieced together, to present the account of the city as a whole, for there is no central office nor combining of totals into one general account. We turn first to the borough rate, this being the charge upon rat- able hereditaments for general purposes, i. e., police, administration of justice, fire brigade, municipal salaries, etc.; and we find that for the year ending March 25 last the amount collected was $147,581. The sanitary rate, levied to cover cost ot pitching, paving, lighting, street cleansing, sewer maintenance, construction, and so on, produced $008,281. The dock rate realized $10,025. If we now combined these three sums and presented the total as showing the cost of the city gov- ernment we should be inaccurate, for the reason that the jurisdiction of the sanitary authority is not coterminous with the jurisdiction of the city government. The population of the city in September, 1886, was 270,017, while that of the sanitary district was 221,415. And again, the dock rate is levied only upon the iuhabitants of a small district of the city. Sow, the 48,632 people included within the city boundaries, but not included in the Bristol sanitary district, are within the limits of other sanitary districts, and they are taxed in these other districts for sanitary purposes about as they would be if in the Bristol district. Hence we may say ap])roximately that if 221,415 people pay $608,000 270,000 will i)ay $741,51L>. Adding to this the borough rate collection^ of $10,025 we obtain $899,148 as the approximate amount obtained by taxation from the peoi)le of Bristol during the year ending March 25, 1887, for municipal purposes. This is $3.33 per capita. It was collected on property of annual value of $4,749,000, and is nearly 19 per cent, of that annual value. Capitalizing the annual value at twenty years we obtain $94,980,000, of which the taxation is 9J tenths of 1 per cent. This compares most favorably with the American percentages; bat there are many things to be considered and which vitiate the compari- tiJSUljAND. 671 SOU. First, there are no state or county levies in the Bristol accounts; second, poor rates being separately levied there is nothing in the livis- tol accounts for almshouses and charities ; third, though I have capi- talized the ratable values, which are less than the gross values, uevertheless the result will be a higher valuation than would be assessed in the American cities, hence the percentage is less of taxa- tion. Against this, however, we have the fact that both real and per- sonal property in the American communities is levied upon, while here only real property is taxed. From all these conditions we are justified in saying that to compare Bristol's annual municipal taxation of less than 1 per cent, of capital values with those of New York (about 1-fg per cent.), Philadelphia (about ly% per cent.), Brooklyn (about 2^^ per cent.), Chicago (2 per cent.), and so on, is to compare two things which from their nature are not properly comparable. But there is no doubt that the expenses of city government are proportionately far less in Great Britain than in the United States. I have pointed out in a previous report that some of this difference is nominal only, and that some is due to the small salaries and wages paid in this country; but there is undoubtedly a more careful and economical sj)irit pervading municipal administration in England than in America. I believe it to be far otherwise with national finances. I am unable to extend information as to the poor rate throughout the entire city. The authorities of the Barton Eegis Poor Law Union either are ignorant of the financial details of their own administration or have preferred not to extend them to me. The autliorities of the Eedminster Union, though most obliging in forwarding reports, have not yet published their accounts for the last half of the year just ended. This union includes 53,000 of the people of Bristol, and there was col- lected from them for the first half of the last year $22,712, upon a rata- ble valuation of $621,053. The rate for the second half of the year was about the same; therefore, the total yearly collection amounted to, approximately, $45,424. This is l^g per cent, of annual values, and is 85 cents per head of population. The nineteen ancient parishes of Bristol are combined into the Bristol Poor Law Union, with an esti- mated population of 55,000, and with ratable property to the value (annual) of $1,838,267. The heart and business portion of the city are here included, and values are naturally high in proportion to popula- tion. The poor rate last year (ending April 5, 1887) was one shilling and six-pence in the pound (7J per cent.) of annual values. Arrears of municipal or poor rates are very small. A distress lies for nonpayment; and I find in the municipal corporation acts, 1845, that in default of distress for non-payment of borough rate two jus- tices may commit the debtor to jail, "there to remain without bail or main-prize until payment." I can not find this repealed in set terms in subsequent acts, but 1 have no doubt it is a dead act. Though the general principle is that all rates and taxes shall be levied upon the occupier, the sanitary rates are — as I have before mentioned is the case with poor rates — charged to the owner where the house is rated under £10, or where it is let out in parts. This adds much to simplicity of collection. Unoccupied houses are not subject to munici- pal rates. Private improvement charges are not levied to the extent that exists in the United States, and they generally take the form of a special rate, enduring for thirty years, and which rate pays interest on debentures issued, and provides for redemption at the end of the thirty years. This principle is highly to be commended. It spreads the pay- ment for a great and lasting improvement over several successive 672 REPORTS ON TAXATION. .owners and residents, and makes the annual charge so light as readily to be borne. Unoccupied houses are liable to private improvement rates; if occupied, the tenant pays the rate, but deducts three-fourths of his payment from his rent. The cost of collection of municipal taxes is comparatively small. I can not give it for the whole city, but the admirable report of the Bristol board of guardians shows the cost for the nineteen old parishes. The assessment expenses for the year were $3,073, and for this sum the val- uation of 8,529 houses, covering 755 acres, was estimated. It should not be forgotten, however, that the value of real property varies but little from year to year, and that houses once valued are valued for years and decades. The actual collection expenses — being the percentage retained by the four collectors — were 84,039 or 1^^ per cent., for which remuneration they collected 0250,209, which sum was 93J per cent, of the amount to bo collected. But the 6J per cent, of deficiency means for the most part uninhabited houses and not arrears. The rates in- cluded in this sum of $250,269 were the borough, the dock and harbor, and the poor rates. Tho remaining rate, the sanitary, as I have before said, is collected by a separate machinery. In closing these remarks upon local taxation, it only remains to be -said that the same general principle as governs national taxation, viz, that it shall be levied upon productive property, obtains; and that the poorer classes contribute only indirectly to local taxation through in- creased rental ; and many instances exist where the entire burden falls upon the landlord, and the poor escape as completely from local as they do from national taxation. I shall not touch upon non-urban local taxation. We have already seen the confusion that exists in the accounts of the city of Bristol, and if we go into the country and attempt an outline of the county methods, we shall find through overlapping boundaries and separate administra- tions an even more intricate maze to penetrate, and were we finally successful the end would not compensate for the labor involved. In concluding this report, I extend most hearty thanks for kindness extended, for reports forwarded, and for Information freely given, to the Bristol city authorities, to the members of Parliament for Bristol, to the officers of excise and customs stationed here, and to others whom I can not particularize from lack of space. Bristol, June 30, 1887. LOKIN A. Lathkop, Consul. Table 1. — Revenue of (he United Kingdom, of Great Britain and Ireland for the fiscal year ending April 30, 1887. Estimate. Eeceipt. Increaae. Decrease. $95, 870, 050 liio, 039, s:-; ,55, 307, 772 14, ;;iii, 180 76, 671, 707 40, 245, 055 8,419,045 1,800,005 5, 660, 472 14, 112, 850 $0S, 084, 307 122, .^79, 125 67, 570, 6il5 14. 5112, 170 77,3-/7,350 41,121,925 8, 011.5, 095 ] , 800, 605 5, 723. 938 ];!. 779, 815 $2, 214, 257 '2,262,923 201, 090 70.5, 043 875, 070 486, 630 54,406 Exci.^Li $2, 100, 726 J'o-.t-ol!K-c, , Toli-HHipll Oin\ II laiiilM 333,035 ■ 437, 347, 487 411,74.5, (-,25 6, 80), SOS 4, 398, 138 2.493,701 - ENGLAND. 673 Table 2a.— Articles subject to import duties in the United Kingdom and the rate of dut\j upon each article. Cocoa: ■Kaw ------- -, per pound. . $0. 02 Husks and sheila per cwt,. . 48 Chocolate, grotind, prepared, or in any way manufactured per pound.. * 04 Coffee: Kaw per cwt- . 3. 40 Kilu-dried, roasted, or ground per pound.. . 04 Chicory: Raw or kiln-dried per cwt.. 3.22 Roasted or ground perpouud,. .04 Other vegetable matters applicable to the uses of coffee or chicory, roasted, etc do 04 Dried currants, figs, fig-oakes, plums not preserved in sugar, prunes, and raiains per cwt.. 1. 70 Tea per pound.. . 12 Tobanco ; Unmanufactured : Stenuned or unstemmed, containing 10 per cent, or more of moisture. do 77 Containing less than 10 per ceut. of 'moisture do .85 Manufactured: Cigars do 1.26 Cavendish or negro-head do ... 1. 09 Suiiff containing more than 13 per cent, of moisture do 93 Snuff containing not more than :J3 per cent, of moisture do 1,09 Other manufactured tobacco and Cavendish or negro-head manufactured in bond do 97 Wine: Containing less than 26 degrees of proof spirits per gallon. . . 24 Containing 26 and leas than 42 deirreesofprnof spirits do 60 With an additioniil duty of 6 cents per gallon for every degree of strength beyond the high- est above specified. Note.— The duty upon the above-enumerated articles is levied upon the tariff for revenue principle. In the succeeding table are given duties levied to countervail excise and stamp duties. Table 2&. — Articles snhject to excise duties in t\e United Kingdom and the rate of duty upon each article. Beer and ale, the worts of which were, before fermentation, of a specific gravity of 10.57 de- grees per barrel of 36 gallons . "^$1. 58 ^eer, mum and spruce, the worts of which were, before fermentation, of a specific gravity not ex- ceeding 12.15 degrees l per barrel of 36 gallons.. 63.2 rSame, exceeding 12.15 degrees do ... 7.41 Eum, brandy, Geneva, and unenumerated spirits per proof gallon . . 2. 51 Liquors, cordiah, or other preparations containing spirits, in bottle, not tested for strength, per gallon 3. 40 Perfumed spirits and cologne water per gallon.. 4.01 Chlorofoim per pound.. . 73 ■Chloral, hydrate ^ do 30 Collodion' per gallon.. 5.83 Ether, sulphuric do 6. 08 Ethyl, iodide of - do.... 3.16 Kaphtha, purified so as to be potable per proof gallon.. 2. 51 Soap, transparent, in the manufacture of which spirit has been used per pound.. . 06 Gold plate per ounce, troy.. 4. 13 Silver plate do ... .36 JPlaying cards per dozen packs.. .91 Table 3. — Gh-oss revenue collected from customs for the fiscal year ending March 31, 1886. Tea ,. $20,377,271 I Dried fruits $2,422,499 Coffee !J''^i*, 6^7 | Orlior importi-d arriclrs 749,981 Spirits . 20, 214, f<'2- Miscellaneou.'? leceipts 157, 050 "Wiiio ' .^813.7^8^ Tobacco and anuff 45, 253, ,^34 Total 0.3, 978, 578 Tarle 4 a.— Gross amount of revenue collrcti'.il from cfxiac for ilie fiscal year ending March ol, 1S:(). Spir.ta $'~.3, 949,192 ' CotTee-mixtun.' labels and chicory $31,758 iieei' 41', ^;'6, 0:^0 Lic'-imi^s ]7.29.^,li9i; 1 Total J2;j, 813,110 Eailways 1, 642, -138 , Table ih.— Gross amovht of rercnue coJleded from sfanips, for the f seal year ending March :U, Iridii. Deeila and other instruments $8. 7fi3, OU Probate duties ^ i'. 01 .i, Db^:; Legacies and successions 10, 219, HI 1- Lite insurances l'^^- ""■'' Karme insurances ^^-^i ^'-^^ Bills of e?:change. bank notf-^, and comiiDsitiou for duty ou bilU and nntea -" $3, 7P3, 513 Ki.'ceipfs and drafts '^■^^^•^^^, Other rti^eipts 2, 178, 712 Tf.f til 56, 456, 384 •^ And so on in proportiock warrant 1 06 Grantor license to take and use a surname in compliance with any will or settlement 243.35 The same upon voluntary application 48.60 O rant of custody of person or estate of lunatic 9- ^^ Lease for loss than a year (rent under $48.60) ^^ Legacies and successions: To c-liiklren or Their survivors or ancestors percent.. 1 To brother or sister or descendants do — 3 To uncle or aunt or descr^ndants do — ^ To groat uncle or aunt ur deacondauts do — ^ To nil other T'-Iations or strangers in blood do..-. It* (Husband and wife exempt.) *This stamp duty has just been raised to the above amount from 60 cents. It will he observed that it is ono-lialf of 1 per cent, of par value, a very ln?avy tax. Companies may compound by pay- ing one-twentieth of 1 per cent, anuually on capita!l stock. ENGLAND. 675 Letter of allotment License for marriage: ¥0.02 Special Not special 24.3^ patortmedicines (according to pri^)"::::::::::;::;;;::::;:::::::::;;;:;:;:;^ Silver plate.V.V.V.V;;:.':;;.".";.' ■ per ounce.. 4.13 Insurance policy, life (accordine to amount) mt^oit Insurance, and for each 1,000 .. „■ ', Proxy... : ;.".'.".;:".".:".::'.".'. 2.*3 Kcceipta for 27 and upwards "'.'.'.'. q2 Table dc— Stamp duties {bonds, conveyances, leases, and mortgages). Exceed- ing— Not ex- ceeding— A. — Bonds or mort- gages. B.— Con. veyanoea. C. — Leases at rent only. No premium. Term not exceeding 35 year.s, or indefi- nite.* D.— Term exceeding 35 years, but not ex- ceeding 100. E.— Term definite, butesceed- iug 100 years. $24. 33 48.66 72.99 97.33 121. 66 243.33. 364. 98 486. 65 608. 31 729. 98 851. 63 973, 30 1, 094. m 1,216.63 1, 338. 28 1, 469. 95 1, 703. 28 1, 946. 60 2, 189. 93 2,433.26 2, 676. 58 3, 919. 90 additional ) V part of> $0.12 .24 .36 .48 .60 1.22 1.82 2.43 3.04 3.65 4.25 4.86 5.46 6.08 0.68 7.29 8.51 9-73 10.96 12.10 13,38 14.60 1.22 a o O a a o 1 i a CO p "o o O _d a 3 O a 03 a '© H $24. 33 48.66 72.99 97.33 121. 66 243. 33 364. 98 486. 65 608. 31 729. 98 851. 6!) 973. 30 1, 094. 90 1, 216. 63 1, 338. 28 1, 459. 95 1, 703. 28 1, 946, 60 2, 189. 93 2,433.25 2, 676. 58 For each $485.65 $485.65. $0.06 .16 .30 .60 $3. 65 . .91 4.86 1.22 6.08 1.52 7.29 1.82 2.43 2.92 3.65 .60 * Same as for conveyances (Column 1?) except where otherwise stated. Table 7. — Income tax schedule. Schedule A.— For and in respect of the property in all lands, tenements, hereditaments and her- itages in the United Kingdom, and to be charged for every 20s. of the value thereof. Schedule B. — For and in respect of the occupation of all such Unds, tenements, hereditaments and heritages as aforesaid, and to be charged for every 20e\ of the annual value thereof. Schedule C. — For and in respect of all profits aiiaing from the interest, annuities, dividends, and, shares of annuities payable to any person, body politic or corporative, company or society, whether ' corporative or not corporative, out of any public revenue, and to bo charged for every 20s. of the an- nual amount thereof. Scheduled. — For and in respect of the annual profits or gains arising or accruing to any person residing in the United Kingdom from any kind of property whatever, whether situate in the United Kingdom or elsewhere, and for and in respect of the annual profits or gains arising to any person re- siding in the United Kingdom from any profession, trade, employment, or vocation, whether the same shall be respectively carried on in the United Kingdom or elsewhere, and to be charged for every 2(J«. of the annual amount of such profi.t3 and gains. And for and in respect of the annual profi.t8 or gains arising or accruing to any person whatever, whether a subject of Her Majesty or not. although not resideni; within the United Kingdom, from any property whatever in the United Kingdom, or any profession, trade, employment, or vocation exer- cised within the United Kingdom, and to be charged for every 20s. of the annual amountof such profits and gains. And for and in respect of all interest of money, annuities, and other annual jlrofits and gains not charged by virtue of any other schedules contained in this act, and to be charged for every 20s. (rf the annual amount thereof. Schedule E. — For and in respect of every public office or employment of profit, and upon every an- nnity, pension, or stipend payable by Her Majesty or out of the public revenue of the United King- dom, except annuities charged to the duties under the said schedule (C), and to be charged for every 20«. of the annual amount thereof, J3S— No. 99 27 676 EEPOETS ON TAXATIO;^. Table 8. — Ch-oss amount of the annual value of profits and property assessed to tlie income tax under each schedule for the year ending April 5, 1885, United Kingdom. Under Schedule A. For all lands, tenements, tithes not commuted, manors, fines, etc.. $945,926,750 Under Schedule B. In respect of the occupation of land, tenements, and hereditaments. 317, 457, 397 Under Schedule C. For all profits arising from annuities, dividends, etc., payable out of the public revenues ' ■ 199, 592, 879 Under Schedule D. For all gains arising from any profession or trade, railways, canals,' • mines, etc 1, 423, 572, 28i Under Schedule E. For all public oflices and pensions paid out of the public revenue and salaries, etc., of employes of corporate bodies 186,485,486 Total 3,073,034,790 Table 9. — Gross amount of the annual value of property andprofits assessed to the incme tax upon various classes of property under schedules A and D in the year ending Aprils, 1S85. Land ,.. Houses Mines Iron-works Railways .. Canals $316, 513, 101 625, 143, 324 87, 000, 700 11, 023, 882 180, 443, 167 17, 265, 879 Gas-works $24, 467, 676 Qnarriep | 4, 538, 945 , Other profits.... Total 26, 017,121 ■ 1,242,393,785 Table 10. — Amount of the rates levied for the purpose of local expenditure in Englandand Wales only, in the year 1883-'84. Poor rates, exclusive of precept rates $40,829,880 School-board rates * 9,685,128 Metropolitan board of works 3,485,324 Vestries or district boards, exclusive of precept rates 7,814,392 Corporation and commissioners of sewers of the city of London, exclusive of precept rates. 1, 328, 325 Metropolitan police 3,113,348 • Municipal borough, exclusive of precept rates 5,626,866 Urban sanitary authorities 32,742,970 Kural sanitary 1,403,488 Lighting and watching - 111,185 County treasurers 7,365,204 Burial boards 694,722 Highway boards 9,093,970 Commissioners of sewage and drainage and embankment commissioners 1,330,467 Church rat«s 50,762 Baths 60,280 Total 124,726,306 Table 11. — Gross estimated and ratable value of rental assessed to the poor rates for Eng-. land and Wales, and amount received and expended for relief of tliepoor in England and Wales, 1884-'85. Gross estimated rental value of property assessed to the poor rate $840, 220, 233 Katable value of same 708,211,739 Total amount of poor rates received, including receipts in aid of poor rates 75, 657, 971 Expended in actual relief of the poor 40, 800,000 Expended for other purposes, county and police rates, etc 34, 857, 971 Table 12. — Summary of urban and rural financial transactions in England and Wales for the fiscal year l8SS-'Si. Local authorities. Receipts from rates. Total re. ceipts, excluding loans. Expendi- ture not defrayed out of loans. Receipts from loans. Expendi- tureout of loans. Outstand- ing loans, Urban, excluding London. Municipal corporations 45 fi2fi flfifi *io Rift nf!^ $12, 356, 389 68, 094, 014 7,694 11, 799, 534 11, 336 29, 208 $1, 014, 967 16, 072, 690 «1 296 844 *M. 423. 515 Urban sanitary authorities 'JS 615 570 fi'k -in? 9rift 19 845 2311380.527.694 Commissioners of baths and -wash- houses 3,895 7,796 11, 885, 375 10, 905 5,289 51, 098. Harbor, pier, and dock authorities.. 3, 403, 961 3, 618, 383 130, 321, 689' .'122,450 Port sanitary authorities 3,649 2,856 26,387 Total 34, 245, 331 89, 926, 698 92, 298, 075 21,995^273 24,763,314 536,472,683 ENGLAND. 677 Table 12. — Summary of urban and rural financial transaoUons in England and Wales for the fiscal year 1883-84 — Contiuued. Local authorities. London. Poor law authorities Metropolitan vestries and district 'boards, etc Commissioners of sewers of the city of London Metropolitan hoard of works Commissioners of police of the me- tropolis. Corporation of London Eiinal hoards Church wardens (church rate) School board Commissionera of baths and wash- houses Markets and fairs commissioners... Total . Vrban and rural. Poor law authorities (extra metro, politan) Burial hoards (extra metropolitan) School hoards {extra metropolitan) Church wardens {charch rate) County authorities Commissioners of sewers Drainage, embankment, and con- servancy boards Bridge and ferry trustees _ Turnpike trustees | Total . Eural. . Highway authorities Karal sanitary authorities Inspectors under the iiehting and watohtng act, 2 and 3 WiU. , 4 c. , 90 . Total Grand total Eecelpts from rates. 10, 857, 653 7, 814, 392 976, 473 3, 485, 339 3, 113, 328 357, 892 37, 0'i8 26, 780 3, 672, 207 47, 628 30, 388, 730 29, 945, 949 833, 027 6, 012, 920 23, 982 9, 289, 807 302, 126 1, 028, 340 7, 798, 829 1,361,783 111, 185 9, 271, 797 121, 342, 009 Total re. ceipts, excluding loans. $12, 043, 074 9, 022, 792 1, 135, 476 5, 804, 659 6, 626, 416 5, 862, 516 260, lO.S 29, 554 5, 218, 654 239, 329 57, 72 1 $11, 899, 9, 293, 1, 393, 6, 983, 6, 627, 4, 297, 232, 30, 5, 134, 223, 20, 46, 306, 296 34, 131, 840 1, 723, 991 11, 397, 6110 25, 476 13, 953, 262 313, 753 1, 403, 975 47, 263 469, 330 3, 466, 490 8, 624, 129 1, 758, 981 10, 495, 628 210, 195, 112 Expendi. tare not defrayed out of loans. 45, 137, 042 Receipts from loans. Expendi. tore out of loans. $1, 750, 747 $1, 360, 775 979, 140 738, 992 , 120, 852 386, 521 1,459 1, 946, 600 24, 332 8, 948, 643 10, 568, 764 34,130,448 1,011,151 1, 711, 402 416, 747 11,250,593 3,098,228 24, 381 12,303,271; 1,831,530 320, 858 97, 349 1, 464, 300 38,1 509, 493 506, 184 61, 753, 4241 6, 961, 195 10, 107, 000 1, 692, 111 112, 674 9,003 710, 163 211, 100, 320 38, 630, 277 894, 394 737, 406 4, 605, 787 434, 315 23, 072 2, 475, 048 27, 967 1, 111, 213 441, 406 3, 185, 922 1, 691, 612 79, 873 31, 695 704, 682 796, 377 Oatstand- ing loans. $16, 478, 854 10, 461, 549 3, 755, 385 84, 526, 477 24, 493, 094 575, 322 64, 724 24, 110, 651 577, 424 165, 043, 480 13, 490, 351 10, 276, 529 42, 397, 069 48, 835 17, 116, 745 407, 622 8, 723, 527 175, 636 1, 012, 295 93, 648, 606 201, 706 7, 021, 731 7, 223, 437 42, 948, 229 802, 388, 209 Table 13.— Showing the amounts outstanding in respect to the principal purposes for t which loans have ieen raised by local governments in England and Wales. « Vater-works - $140,050,229 ■ Harbors, docks, and piers 132, 159, 295 .i Sewerage and sewage disposal ]J-< J|°^' '^^ Highways, street improvement, and turnpike roads 71, 087. Ito Schools fi^' ™'m :ga8.works .• - ^n'?7H«n Poor-law purposes oHI?' rc2 ..Markets. f- . . - 23, 543, 586 [V Artisans and laborers' dwellings, improvement schemes 17, 179, 373 fcPnbhc buildings, offices, etc - ?s',,5'q^9 ilinnatic asylums iT' bTr kvi BBrideea 11,616,671 isti 11 071 832 ^^t/emeteries and burial-grounds o' i^i' inO BLand drainage, embankment, and river conservancy ^' ^°'' '^" Wfarks, pleasure-grounds, commons, and open spaces ' ■ °"°' p^'i W^?'j^7^ ;-■-•% :':;;:; 3;75i;37i ^l^^nyate improvement works 3 529 400 Jf 'Police stations and jails ' fc': Total 699,830,342 678 REPORTS ON TAXATION. LEEDS. TAXATION, MUNICIPAL AND STATE. ST F. S. WIQFALL, CONSUL AT LEEDS. It may be premised that the borough of Leeds is a parliamentary di- vision and a separate municipality, situated in the West Eiding of York- shire, of which it is the most im portant town. Leeds elects five mem- bers of Parliament, and is municipally governed by a mayor and town council. The latter consists of sixteen aldermen and forty-eight coun- cilors, and the mayor is selected from this body. The aldermen are elected by the councilors, and hold office for terms of six years. The councilors are elected for terms of three years, elec- tion being by the rate-payers of the borough. The borough comprises si'iteen wards, each ward having one alderman and three councilors. Eesidence in the ward is not required of its representatives. Aldermen and councilors sit and vote together as one body, presided over by the mayor. Half of the aldermen retire from office every three years, and one-third of the councilors retire annually. They are all, however, eli- gible for re-election. The mayor, being one of the town council, is elected to the mayoralty by the council, and retires annually, but is re- eligible. Usually two terms in succession limit the service of the mayor as such. This ceasing to be mayor does not necessitate withdrawal from the council. For purposes of local taxation, Leeds is divided into townships, eleven in number. It is also apportioned into or attached in part to four poor- law unions. The limits of townships are coincident with those of the unions to which they belong, but the boundaries of the unions and those of the borough do not always coincide. Local taxes are technically designated rates. A further general dis- tinction exists between rates levied for the relief of the poor and those for municipal purposes. The former are known as poor-rates ; the lat- . ter by difierent names, indicating more or less exactly the objects to which they are to be applied, as highway-rate, lamp-rate, etc. The poor-rates are collected and disbursed by the poor-law authorities, as hereinafter set forth. The municipal rates are collected, as regards the one known as the borough rate, through the poor-law officials, and as regards the remain- der through the corporation agencies direct. The poor-la-w authorities consist of the board of guardians, the over- seers of the poor, and the assistant overseers, supplemented by collect- ors of poor-rates. They are all separate from and independent of the municipality. The board of guardians is composed in each union of members part of whom hold ex officio and part of whom are elected l!y the rate- payers of the union. The overseers receive their appointments from the bench of magis- trates. The assistant overseers, as regards ten of the eleven townships, are elected by the rate-payers. In the township of Leeds, however, the board of overseers is a corporate body acting under seal, and appoints its own assistant overseer and collectors. It may be stated generally that collectors, where employed, are sub- ordinate to the assistant overseer, and that these act together under the instructions of the overseer in the collection of the poor-rates. ENGLAND. 679 HOW THE POOR RATES ARE COLLECTED. The method of collecting the poor-rates may be briefly summarized, as follows : A precept for their levy is issued by the board of guardians and ad- dressed to the overseers. By them the amount is assessed to the rate- payers and collected by the assistant overseer of each township, with ihe help or substitution, as the case may be, of the poor-rate collectors. The poor-rate, as collected, is deposited with bankers designated by the overseers, and by them, in such amounts as maybe called for under precept by the guardians, is turned over to bankers indicated by the guardians, and disbursed under direction of the last-named authority. The poor-law unions are composed of a certain number of divisions, say of townships; but, as already mentioned, the unions are not them- selves always coterminous with the borough. The unions take their designation as such from having been formed by the union of several parishes, in order to distribute more equally the burden of relieving the poor. The methods of assessment of different rates vary with the rates; but it may be said in general terms that all rates are assessed upon the estimated annual rental value of real estate, including under this head power for manufacturing purposes. No other species of j)roperty than these is liable for local taxes. Unoccupied buildings, whether houses, mills, or others, pay no rates, except the main sewer-rate in those divisions where that rate applies. The municipal rates comprise the following: (1) Borough rate, cov- ering general corporation expenses for the entire borough, including police, etc. This rate covers also the sum levied for the support of public or, as they are called in England, board schools. (2) Improve- ment rate, covering expenses of sanitary department, public parks and buildings, fire department, etc. (3) Highway rate, covering expenses for maintaining streets. (4) Lamp rate, covering expenses of lighting streets. (5) Main-sewer rate, covering certain expenses connected with main-sewer construction and operation in,' 1st, Leeds, Hunslet, and Holbeck townships ; 2d, St. John's district, Wortley township. BOROTJGH RATES. Borough rate is uniform throughout the borough, and is collected, like the poor rate, through the overseers, they being notified by the town council of the amount required. As already indicated, the bor- ongh rate includes the sum for which requisition is made on the town council by the school board for board-school purposes. It may be added here that the school board is a separate body, elected by the rate-payers, and having supervision and control of the State-established or board schools. Further, grants in aid of board schools are received by the school board from imperial taxes through the education department of the Imperial Government, the amounts being regulated according to the standard of proficiency attained by pupils and the number of pupils in attendance. As regards the imperial grants, aid therefrom is contrib- uted also to voluntarv schools under certain conditions of inspection, and so forth; the board schools alone, hx)wever, receiving support from Highway and lamp rates are levied and collected by the borough authorities direct. They are uniform throughout the borough. Improvement rate is' levied and collected by borough authorities 680 REPORTS ON TAXATION. direct throughout the borough, but varies in amount in the different townships according to their requirements and ratable values. Main-sewer rate is levied and collected by borough authorities direct but is limited to the townships of Leeds, Hunslet, and Holbeck, in which it is uniform, and the St. John's district of Wortley township, which is assessed for a separate main-sewer rate of its own. Sources of borough revenue are as follows: Eates, viz, borougli, improvement, highway, lamp, and main sewer; grant in aid of police maintenance made from imperial taxes through Her Majesty's treasury ; grants in aid of the administration of justice made from imperial taxes through Her Majesty's treasury ; fines and fees from borough pohce court; rents, licenses, services, sales, etc. It may be mentioned that the jail of the borough is supported by the Imperial Government. The borough is supplied with gas from gas-works owned and oper- ated by the corporation of the borough, and rents for gas consumed are paid by individual householders direct to the corporation^ Water is supplied by water-works owned and operated by the borough and supported from charges for individual consumption. Houses of £10 and less annual rental are required to, be compounded for by the landlord. Following this general view, a few further details relative to the im- position and collection of the rates may be of interest. HOW THE BATES ARE ESTIMATED. Poor rate and borough rate are laid on estimated value of gross an- nual rental, with deduction therefrom of one-sixth for maintenance; i. e., by way of allowance for insurance,- repairs, etc. In some cases on mill property this allowance is increased to one-fourth. For poor rate and borough rate, houses of £8 or under, ratable value, i. e., annual rental, less deduction as above, may be compounded for by the land- lord, who undertakes to pay these rates on his houses whether they are rented or not, and is allowed deduction on basis of assessment of one- fourth in consideration therefor. Highway rate is laid in same way as poor rate and borough rate with reference to basis, but composition by landlord is imperative up to £6 annual ratable value. Main-sewer improvement and lamp rates are laid in same way as highway rate with reference to basis and composition ; but on the area of land (exclusive of that covered with buildings) occupied by railways, canals, reservoirs, nursery and market gardens, and on agricultural and wood-land, an allowance of 75 per cent, is permitted in respect of these rates. Furthermore, where property is more than 250 yards distant from the nearest lamp the lamp rate is pretermitted thereon altogether. Mills, furnaces, factories, etc., rented with power included, are val- ued by rental. Similar structures, rented or held without power sup- plied by a landlord, are valued as ordinary leaseholds or freeholds, and the power provided by the occupier is rated additionally at about £i per nominal horse-power per annum. Machinery other than that for generating power is not rated at all. Example of taxes on occupied house in borough of Leeds, union of Leeds, and township of Leeds, used as a dwelling-house; house, esti- mated by overseers, worth annual rental of £60, deducting allowance of one-sixth for maintenance, i. e., insurance and repairs, gives ratable value £50: Poor rate, Is. 5cl. in the pounds Is. 5(i x 50 = £3 10s. 10(J.; JiiNUJjAJNU. (]8l apptoximately 6 pet cetit. on actual estimated rental. Municipal rates, as per accompanying table, 5s. 2^d. in the pound = 5s. 2^d. x 50 = £I.'l Od. 5s.; approximately 21f per cent, on actual rental as estimated. Total local taxes: 6s. l^d.in the pound = 6s. 7|d. x 50 = £16 lis. 3d.; approxi- mately 27f per cent, on estimated actual rental. This amount would be paid altogether by the occupier of the house, whether occupying as, owner or as tenant. The following is a table of rates for 1887-'88. Bates levied iy the town council of tlie boroiigh of Leeds from May 4, 1887, lO May 4, 1888. Total rates levied. Leeds Hunslet Holbeek Wortley Armley Beeston Bramley Chapel-'AIlerton Headingly Potternewton .. Farnley Total rates Borough Main sewer. Lamp. Improve- ment. High- way. collected by the cor- lected by poration. seers. * s. d. «. d. «. d. «. d. «. d. s. d. 6 ■ih 1 10 9 3 3i 1 11 5 u 1 3 9 2 KJ 1 11 5 n* 1 7 9 3 OJ 1 11 3 nh 2 9 3 3J 1 11 u 2 9 8 CJ 1 11 (1 Hi 1 2 9 2 2* 1 11 ^ 2 9 3 0| 1 11 ■M 2 5 9 3 64 1 11 3* 1 10 9 2 104 1 11 m 2 3 9 3 34 1 11 34 1 1 9 2 14 1 11 «. d. 5 24 4 75 4 114 5 24 4 111 4 14 4 114 5 44 4 94 5 24 4 04 ' The borough rate includes s. 04(J. in the pound sterling for school-board purposes. Imperial taxes on such a house would be as follows : Whether owning the house or hiring it the occupier would be liable for inhabited-house duty at the rate of M. in the pound, to be paid on the estimated actual rental, without allowance, viz, £60=£2 5s. Od., being 3J per cent, on the estimated actual rental. Accordingly, on such a house, there would be paid as and by the oc- cupier for local and imperial taxes a total of £18 16s. Zd., or approxi- mately 31J per cent, on actual rental as estimated. Additionally, there would be an imperial tax of Id. in the pound paid by the owner of the house, whether occupying or renting it to another, as income tax, with respect to the revenue derived from its ownership, say. Id. in the pound of estimated gross rental, £60, or £1 15s. M.; being ap- proximately 3 per cent, on estimated actual rental, which will perhaps appear more clearly from the following tabulation : Estimated gross rental £60, gives taxable value, £60 Deducting one-sixth l". S'Tes ratable value, 60 e. d. s. d. £ s. d. Poor-rate ..15 intheiE — 1 5 x 50= 3 10 10 approximately 6 p. ct. estimated rental. Municipal .'." i !!!"!!'!. 5 24 in the * — 5 24 x 50 = 13 5 approximately 21 J p. ct. estimated rental. Total local 6 74 in the iB — G 7* > 50 =16 11 3 approximately 27J p. ct. estimated rental. Iiihahited-hou3e[duty.. ..9 in the* — 9 x 60= 2 5 approximately 3J p. ct. estimated rentaL Total local and imperial paid by occupier - . . 18 16 _3 approximately 314 P- ct. estimated rental. Imperial income tax, 7d. in pound, paid by owner.- 1 15 approximately 3 p. ct. estimated rental. It will of course be borne in mind that these assessments of annual rental for purposes of taxation, whether local or imperial, are assess- ments only. No means exist by which absolute accuracy is attainable, and in many instances it is probable that the gross amount of the as- sessment is considerably less than the actual rental. 682 REPORTS ON TAXATION. This element of error would naturally be difficult to define. lu some cases it might extend to one-fourth of the annual value, or even more; in others a much closer approximation might be had. Speaking generally, it may be said, if unoccupied, such a house as ■we have been considering would pay no local taxes whatever, unless situated in main-sewer rate districts, when that rate only would be pay- able ; and no imperial taxes would be payable on an unoccupied house in respect of the house. But if the house had land attached, rates would be levied on the land as apart from the house, whether the latter was occupied or unoccupied. And land attached to a house, whether the house was occupied or unoccupied, would be subject to imperial taxa- tion, based on estimated annual rental value of the land, under the head of income and property tax and additionally for land tax, as hereafter to be explained. And waste land, uninclosed and bringing in no reve- nue, would not be rated; nor would such land pay imperial taxes; it of course being always understood that the absence of income from such waste land was an unavoidable defect and not voluntary on the part of the owner. In comparing municipal taxes of Leeds with those of other English boroughs it may be remembered that in the case of some corporations the profit on the supply of gas is employed in relief of rates, resulting in a coqsequent reduction thereof. The unusually low price at which gas is supplied to copsumers in the borough of Leeds, however, viz, Is. lOd. perthousand, less 5 percent, for prompt payment, combined with the decline in the value of residuals, has brought about a deficit in the gas-works account instead of a profit, as previously was the case. It will be fair, therefore, to set lower gas against higher rates whenever such conditions shall appear. INCOME AND EXPENDITURE OP THE BOROUGH OP LEEDS. The following is a statement as to the income and expenditure of the borough on revenue account from March 26, 1886, to March 25, 1887, inclusive : Account. Income. Expenditure. Borougli quarter sessions £ e. 621 14 11 17 d. 2 4 £ «, d. 1 250 15 3 211 2 Borough fund (water-works account) ... 7,360 7 1,728 1 5 2,879 6 18,937 4 76 474 167 2 676 19 369 10 198, 337 16 6 9 9 6 7 6 6 Constabulary 37 510 16 8 12,477 9 2,002 1 8 Fever hospital 3, 098 18 11 Free Public Library , , 4,919 7 10 746 18 6 G-as-works 201, 815 12 1 Highways 45, 196 17 9 190 12 9 234 14 i Interest on debt : . £7,186 8s. 6d. . 36, 923 19 7 . 2, 146 4 10 . 40,348 8 3 . 10,603 1 4 . 5, 2,M . 64,447 3 10 . 166,905 6 3 7,186 8 5 Gas-works account 40,348 8 3 Koundbay Park accouut -Judges' lodgings 146 170 17 16,789 4 8 4,439 1 5, 002 7 10 3 483 12 6 2,202 5 8 392 19 3 480 11 3 Lamp 8,784 6 7 Markets 4,819 18 8 Main sewer , 19,757 18 13,559 9 Municipal offices 1,803 5 3 1,667 10 6 Police superannuation fund 2,400 3 6 Eccreatlou grounds (exclusive of EouudbayPark and Hunalot Moor)- 953 5 ENGLAND. 683 Acconut. Income. Expenditure. Eeformatorie8, etc Koundbay Park Salaries and allowances (borough fund account) . Sanitary Scavenging Sewage works (contributions of townships) School board Town hall Trough closets (cleansing) Water- works Watering streets West Riding assizes West Biding (contribution to county rate) Bates Sinking fund account; Borough f and account Gas.works account - Highways account Improvement account Main sewer account Eoundbay Park account . . Water- works account Private improvement works £ s. d. 70 2, 400 10 3 4,360 1 11 175 12 815 ID 9 83, 713 12 10 Total . 270,196 9 7 & s. 750 15 6, 909 14 9,293 5 5,009 3 11, 130 10 4, 134 H 66,301 3, 879 19 1, 850 1 68, 803 17 1, 399 14 613 3 11, 434 19 19,940 1, 365 19 3 8, 376 9 11 37 1 5 10,432 2, 533 2 3 1,145 1 1 12, 806 17 7 21,590 6 7 641, 567 18 8 660,186 6 Additionally, I understand, there lias been received as interest from investments £7,525 lis. Id., which amount has been expended by apply- ing it to the sinking fund. In the foregoing statement of income and expenditure of the borough on revenue account, for which, as for much other valuable assistance, I am indebted to Mr. Derry, the accountant of the borough, the items of the interest account which are not extended to the expencIiture'Column are included in that column with the items set opposite the respective ac- counts, as gas-works, highways, etc. Additionally, it may be stated that the gas-works financial year is the calendar year, and not, as in ease of the other accoujts, that ending March 25. I annex here an approximate summary which I have collated from the itemized statements in the published accounts of the borough for' the same period. It is given as an approximation only, and in order to afford a general view of the source and direction of income and outgo on revenue account. INCOME. Items. Amount. Items. Amount. Imperial grants - . ... £ s. d. 18, 747 5 7 198, 337 16 5 83, 713 12 10 7, 907 8 5 4,298 9 11 22, 700 15 11 18, 930 17 10 269 6 Rents, services, sales, etc. — Con'd. £ B, d. Rents, services, galea, etc. : 131 16 3 Rates : 112, 858 14 Borough fund account Borough of Leeds rate account. . Townships rate account Private improvement account. . Main-sewer rate account 95, 318 19 li 41, 057 8, 631 12 6 IS, 330 3 115 631, 233 13 3 ESPEN'DITUEE. Salaries, office expenses, etc Police, reformatories, etc Courts and elections County expenses PubUc buildings, recreation groimds, etc . ^ School board Interest and sinking-fund, net toe brigade 17, 018 15 37, 960 18 3,631 8 11,434 19 30,182 2 56, 301 183, 974 19 716 18 Sanitary department. Sewage- wnrks Gas-works Water-works Streets - Miacellaneous Total net expenditure . 37, 238 12 4,258 3 165, 108 15 14, 804 5 69, 247 8 15, 111 8 646, 979 14 7 684 REPORTS ON TAXATION. Beedpts and expenditure of the iorongli of Leeds on capUcfl account from ttie 26th March 1886, to the 25th March, 1887. Items. Eeceipts. Expenditure. Brainage Electric lighting : Fever hospital {revenue account) Fine art gallery building account Fire brigade Gas-works Highways Hunslet moor Loans. -- Markets Miscellaneous Monkbridge Municipal offices Public conveniences Recreation grounds Reformatory schools {revenue account) . Roundhay Park Scavenging plant Sewering estates . £ s. d. 400 94, 630 15 4 Street imnrovements, etc. Town hall Water-works £ ». d. 23, 194 17 798 9 1, 929 U 11 43 5 4 312 2 5 13, 636 14 11 24,317 12 4 214 17 11 6, 706 5 11 49 11 6 5,316 ] 2 5U 8 10 157 19,056 4 3 70 3 4 43. 4 9 248 17 5 2, 973 12 2 S, 607 13 8 51 6 9,773 1 96, 330 15 4 i 118, 012 9 From the annexed statement it appears that the securities of the corporation issued and outstanding March 25, 1887, amounted to £4,307,191 2d., against which were to be placed investment in sinking fund, £175,450; advances to Leeds school board, £102,926 16s. 10(?.; amount of unexpended capital, £137,396 5d.; total, £415,772 17s. 3d.; leaving net balance to be reckoned with, £3,891,418 2s. 11^. ; received from other sources, £915,054 4s.; total, £4,806,472 6s. lid. Accounted for as expended on capital account for public buildings, grounds, streets, sewers, gas-works, water-works, etc., to March 25, 1887, £4,806,472 6s. Ud. Summary of capital accounts, iorough of Leeds, March 25, 1887. £ d. £ e. d To debt of the borou"'h - 4, 307, 191 2 By amount expended on town hall, municipal ottices, police sta- To balaiioe, beinp; reduction of debt by a in king-fund opera- tions, recreation grounds, etc.. 352,025 7 10 . 915,054 4 By amount expended on improve- ment works, RouDdhayPark,etc. 3.333,496 10 C By amount expended on sewer- ing, drainage, etc 458, 595 11 i By amount expended on high- 73, 923 3 U By amount expended on gas- 1,039,358 1 7 By amount expended on water- ■ 1, 549, 073 2 10 4,806,472 11 £ s. d. By amountinvested OH sinking found account 175,450 By amount advanc- ed to the Leeds school board, to be repaid by in- stalments 102,926 16 10 By amount of unex- pended capital-. 137,390 5 415.772 17 3 5,222,245 4 2 5,222,246 4 2 ENGLAND. 685 THE POWER TO BORROW. At that date the borrowing powers of the corporation were unex- hausted to the extent indicated below. By borrowing powers is meant the authorization within certain limits given by act of Parliament to the borough corporation to pledge the credit of the borough in order to raise money for specified objects. Borrowing powers unexhausted to the following extent, namely: S, e. d- In respect of the gas-works undertaking 217, 987 2 5 In respect of the water- works undertaking 28,040 7 2 In respect of the borougli fond account In respect of the improvement account 188,880 17 11 In respect of the highways account '. 4,464 9 1 Total 439,372 16 7 In every instance in which the corporation uses the power to borrow conferred by Parliament it is required that each year such amounts shall be invested as will suffice, with accruing interest, to cancel the created indebtedness within a given term. These investments may be made in certain specified securities only ; and in event that such investments fail to produce a sufficient interest increase, further recourse must be had in last resort to the rates. IMPERIAL REVENUE OP GREAT BRITAIN. This revenue is derived generally from the sources indicated below ; stated here in the order of amounts realized from them, respectively, during the year ending March 31, 1886, and itemized approximately as follows : Excise : Beer £8,403,580 Spirits 13,140,694 Railways 337,499 Other - 6,525 Licenses: Beer and cider 186,547 Brewers 36,140 Distillers and rectifiers 4, 166 Spirit dealers 119,669 Publicans and grocers 1,474,381 Wines 1 67,934 Otlier 1,664,787 £25,441,922 Customs: Tobacco, etc 9,298,989 Beer.... 8,911 Spirits 4,153,871 Wine 1,194,654 Tea 4,187,254 Coifee, chickory, and cocoa 339, 478 Fruits 497,789 Other 41,356 19,722,302 Income and property tax : Schedule A. Lands, tenements, etc 5,101,442 Schedule B. Occupation of farms, etc 399, 137 Schedule C. Annuities, dividends, etc -.- 1,322,274 Schedule D. Trades, professions, etc 7, 502, 109 Schedule E. Public offices, etc 922,350 15, 247, 312 686 REPORTS ON TAXATION. Stamps: Death duties £4,106,644 Legacy : 2,474,722 Succession 858,240 Deeds 1,800,000 Bills of exchange , 653,354 Receipts, etc 963,260 Insurances 174,907 Other 569,487 £11,600,614 Post-ofSce 8,162,651 Miscellaneous , --- 3, 019, 453 Inhabited house duty 1,867,377 Telegraph 1,745,056 Interest on advances for local works and Suez Canal 1, 376, 080 Land tax 1,023,196 Crown lands 477,820 89, 683, 783 Most of the items mentioned explain themselves. The excise tax on railways is upon the receipts for passenger traffic outside of London, subject to an exemption in respect of third-class fares, and is laid at the rate of 5 per cent, on the gross receipts. Homemade spirits pay excise 10 shillings per proof gallon. Spirits made in Channel Islands pay lOg. M. per proof gallon. Publicans' licenses for sale of spirits, beer, and wine, to be consumed on the premises where sold, range from £4 10s. where annual rental value is under £10 to £60 for annual rental value of £700 or upward. The revenue from customs may be said to be derived almost entirely from the four articles of tobacco, tea, spirits, and wine, these producing nearly nineteen millions sterling out of less than nineteen and three- quarter millions. The iigures given under the heading property and income tax arise as follows: Schedule A, land tenements, etc., 8d. in the pound on an- nual value; schedule B, occupation of farms, etc., 8^. in the pound on half annual value ; schedules C, D, and E, other sources, 8d. in the pound on annual value. All are subject to the following exemptions, with perhaps some minor variations as to Scotland and Ireland and otherwise : Incomes less than £150 are exempt ; incomes less than £400 have exemption of first £120; incomes more than £150 and less than £400 have additional exemption of one-sixth of total income where such amount is expended as premium on life insurance. Under the financial estimate for 1887-'88 the income tax is reduced Id., being laid at Id. in lieu of 8d., as above. Income and property tax comprise one tax only. It is termed prop- erty tax when levied on income derived from real estate, and income tax when the income tax arises from other sources. Legacy and succession duties range from 1 per cent, for lineal de- scendants or ancestors to 10 per cent, for strangers in blood or remote relations. Husband or wife are exempt. Inhabited house duty is a tax upon the occupier, imposed in 1851 in lieu of the old window duty, and is graduated according to the annual rental value of premises occupied residentially. It is assessed at 9d. on dwelling-houses, and at 6d. on shops used also as dwellings, and on all houses whose annual value is £20 or over. In 1878-'79 about 1,000,000 houses were assessed for it out of 5,475,564 in Great Britain at that date. Land tax is to be distinguished from income and property tax. It is quite a separate tax, and to raise it each parish is assessed for its quota ' jXi ENGLAND. 687 as fixed in 1798. This quota is the equivalent of a levy of 4s. in the pound on the valuation of the land in 1692, and is accordingly a fi:xed sum for each parish less amount of subsequent redemptions. Redemp- tion is accomplished by payment into the imperial treasury of an amount such as, if invested in the public funds, would produce by way of interest a sum equivalent to the tax on the property redeemed. The quota of each parish is raised by an equal levy on property still sub- ject to the tax of so much in the pound of annual present rental value as shall be necessary to produce the gross amount required. Land tax in 18S0-'81 yielded about £1,075,000. If ib had been levied at the original estimate of id. in the pound sterling on the 1880-'81 valuation, it is reckoned that it would have jiroduced something like sixteen or eighteefi times as much. In like manner, based on the mod- ern valuation, it is estimated to be equivalent to a levy varying as to locality from ^d. to about Gd. in the pound sterling. Post-office receipts are not wholly for mail service, the post-ofQce selling other stamps and licenses as well. Part of the interest item, namely, that drawn from advances for local works, would of course be derived from taxes, but from local taxes, not imperial. With reference to the probate legacy and succession duties, it is ob- served that these do not affect corporations holding real estate. These taxes are levied, as to real estate, on estimated capital value of a life interest, and not on the fee-simple. Exemption also applies to a limited extent. For purposes of imperial taxation, where real estate is encumbered by way of mortgage and the mortgage charges absorb the income, no tax is paid by the owner as to his ownership, but he is assessed to the extent of the income derived from the estate, and is permitted to de- duct the amount so paid from the interest amount when due from him to the mortgagee. In event that mortgage charges absorb part only of the income, a similar rule obtains as regards the part so absorbed, and the balance of income is reckoned with separately. Ground rents on leasehold estates are also taken into account for deduction in respect of income tax. Twenty-one years purchase is an average standard by which to esti- mate in capitalizing the value of property on the basis of the gross an- nual rental, an estate renting for £1,000 per annum, for example, being estimated worth £21,000 in fee. This ratio would no doubt, however, be in many instances too high, particularly on cottage or mill property. The rental on the former, or small houses let to laboring men, generally includes gas and water rents, as well as that of the house itself, in the sum paid to the landlord. Direct taxes may be defined to be such as are laid on values perma- nently in possession, and, as incident to their permanence, inherently attaching to these values and following their transfer, if or when they are transferred, and renewed at stated intervals. Indirect taxes are correlative to the direct. They are laid on values temporarily in possession, and as incident to the temporary character of the possession, not inherently attaching to the values themselves, nor following their transfer, if or when they are transferred, except in respect of their added cost to the second and subsequent owners, and imposed but once. The third source of revenue to Government arises from what may be included under the head of rents or services, in which a certain sum is reppived for a certain benefit rendered. 688 ■ KEPOETS ON TAXATION. lu general terms the direct taxation of the Imperial Goveirnment may be said to be oottiprised within these four impositions, to wit : Income and property tax; inhabited house duty; land tax; and excise in shape of licenses. Values once permanently in hand and held without transfer of the commodities or privileges representing them would be attacked by the tax gatherer under one or more of these heads only. The indirect imperial taxes show under the terms of excise, customs, and stamps, not including those for service rendered. Other sources of imperial revenue are from post-office and telegraph, interest on advances for sundry purposes, local or otherwise, crown lands and miscellaneous; the latter being mainly made up of contribu- tions from India and the colonies; receipts from civil or state depart- ment, revenue or treasury ; military and naval departments, profits on post-offtce savings banks, etc. These three divisions may perhaps be roughly reckoned to contribute to the imperial revenue in somewhat the following proportions : Direct 30 per cent., indirect 55 per cent., other 15 per cent. Land, whether ag- ricultural or pastoral, pays local taxes on basis of estimated annual rental, as already indicated. Buildings, whether residential or used for trade purposes, pay local taxes on same basis as land, viz, that of es- timated annual rental. Unproductive real property pays no local taxes. Evidences of debt, whether as public securities, home or foreign, or as private securities, corporation or individual, home or foreign, pay no local taxes. Cash in hand pays no local taxes, and no local taxes fall upon per- sonal proijerty, such as furniture, jewelery, plate, etc., live-stock, car- riages, carts, agricultural implements, etc. For imperial purposes land is subject to income tax and to land tax as already described. Eegarded imperially, buildings used as residences pay inhabited house duty if of £20 or more annual value ; used for trade purposes alone buildings fall under the income tax'. Evidences of debt pay imperial income tax when producing income. Cash in hand pays no imperial tax. Personal property, as above, pays no direct imperial tax except in shape of licenses, as for carriages used for pleasure. Corresponding to the statement of imperial revenue which has been given, the following amounts are presented as reijresenting the chief items of expenditure: For the debt £23,449,678 Interest, etc. , on loans not forming part of the permanent charge 678, 319 Army and navy 39, 538, 593 Civil services 17,725,763 Civil list and consolidated fund 1,638,376 Costs of collection : Customs (19,723,000) 955,452 Inland revenues (25,442,000) 1,796,211 Post-office (8,163,000) 4,793,744 Telegraphs (1,745,000) 1,745,000 Packet service '. 731,014 ' 93,052,150 The amount of the imperial debt is given for 1886 as follows : Funded £638,849,694 Unfunded 17,602,800 Annuities, capitalized as 3 per cent, stock 85, 829, 917 732,282,411 ENGLAND. 689 With regard to the inland-revenue department some interesting facts have been recently made public by Sir Algernon West, the chairman of the board. Up to within something like twenty years ago the only means of entrance into the civil service here was through political or social influence ; while now it is open to public competition. It is stated on this very high authority that " every position in it, be it high or low, is absolutely open to the best men." The result seems to have been satisfactory. The income tax, which is the chief source of revenue as regards direct taxation, gives evidence of very thorough organization jn its machinery ; while at the same time it serves to indicate the great material progress making by Great Britain within the last few decades. In 1843 the estimated produce of the income tax was £750,000 for every penny of assessment in the pound. Now every penny is reckoned to bring in close upon £2,000,000 sterling. In 1843 this tax was collected from a population of 18,500,000 ii) England, Scotland, and Wales, and the number of cases where repayments had to be made was in that year 70,000. The last levy was from a population of 35,000,000 in Eng- land, Scotland, Wales, and Ireland, and the repayments amounted to 149,000. This tax is collected by the inland-revenue officials or by parochial collectors appointed by the local commissioners. In Scot- land the work is done entirely by the inland- revenue officers, and 95 per cent, of the amount due is paid into the exchequer by the middle of February. Adhesive stamps were first used in 1840, when, as is well known, they were introduced at the suggestion of Sir Rowland Hill as a means of charging postage on letters. In that year the value of the stamps man- ufactured and issued by the commissioners of stamps was about £450,000. Last year the value manufactured and issued from the office of the controller of stamps amounted to a total of £12,000,000, and if to this is added the value of the post cards, postal orders, stamped en- velopes, and so on that were dispatched from Somerset House (the cen- tral bureau of the inland revenue) the enormous figure of £25,000,000 is reached. Fifty years ago stamps, at that time all being impressed stamps, were dispatched to but 700 centers throughout the United Kingdom ; now they go to as many as 8,500 centers, of which some 8,000 are post-offices. In 1847 two boards were responsible for the collection of the revenue from stamps, taxes, and excise, and under their joint authority they pro- duced an annual income of £33,000,000. To eil'ect this they employed 5,500 officers at a total cost of 4J per cent. At the present time the same number of oificers are employed to bring into the exchequer an income of nearly £56,000,000 at a cost of 3J per cent. ; the result show- ing an increase of revenue of £23,000,000, and a decrease in the pro- portionate cost of collection as between 4J per cent, and 3^ per cent. In 1850 the percentage of pensions to salaries was 25^ per cent, and it is now only 14J per cent. The average salary of all grades in the serv- ice was in 1847 £141, which has risen at the present time to £200, or an increase of over 40 per cent. The highest salary paid in the inland- revenue department is £2,000, and in the customs department £2,750. The principle in this connection is said to have been laid down by a late financial secretary to the treasury that it should be the aim of every civil-service reformer to make one man do the work of three with the salary of two ; in other words to double his pay and triple his effect- iveness. It is not hinted that the discipline of the department has been too slack, but in 1886 dismissals from all causes were only 20 com- pared with 116 in 1838. • The commissioners of inland revenue now control the undermentioned 690 EEPORTS ON TAXATION. taxes: Duties of tbe old excise proper; income and property tax; stamps — postolfice and others, including probate, legacy, and succes- sion duties, in addition to collection by stamps of many court fees; in- habited-house duty ; tax on railway earnings; land tax. In 1880-'81 customs service cost £992,473, about 5 per cent, on sum handed over to exchequer. For the same period the inland-revenue department cost £1,858,000, or about 3| per cent, on similar basis of estimate. The tendency of English financial policy for the past forty or fifty years is said to have been in the direction mainly of narrowing the basis from which the national revenues are drawn. Hence a larger recourse to direct taxation as compared with the immediately preceding period, substituting income and property taxes for imposts on articles of con- sumption. It is stated that a free-trade policy in England " meant and means a return to taxes upon realized wealth in some shape, and com- pels statesmen, whether they like it or not, to find ways of increasing the burdens of the rich proportionally as they reduce those of the poor." The bulk of the revenue, however, would appear to be still drawn from indirect taxes, i. e., speaking generally, from customs and excise, these having been estimated for 1880-'81 as representing about nine- fourteenths of the entire revenue received from taxes. And probably somewhat the same proportion now obtains. It has been reckoned that an ounce of tobacco, at 3d., would cost less than Id. but for the duty, and that the masses who smoke the 3d. tobacco pay 400 per cent, tax on it, while the man who buys cigars pays but 16 to 50 per cent. So, too, beer and spirits are said to pay a far higher per- centage than wine. On light French wines the estimate has been placed at about 25 per cent, at most ; while on spirits up to 200 per cent, on manufacturer's price is spoken of, and with publican's charges, perhaps 300 per cent. Ordinary beer is called at least 100 per cent. Excise and customs revenue from drink, exclusive of licenses, but in- cluding the wine duties, amounts for 1885-'86 to about 36 per cent, of the whole income from taxation. In 1880-'81 it was reckoned at about 38 per cent. It may be estimated that imperial taxation was in 1858 about £2 is. id. ($10.79) per capita; in 1880 about £2 ($9.73) per capita; in 1886 about £1 19s. ($9.49) per capita. THE EEVENTJE. I. — An abstract of the gross produce of the revenue of the United Kingdom in the under- mentioned iieriods ended June 30, 1887, compared with the corresponding period) oj the preceding year. Items. Customs Excise Stamps Land tax House duty Property aud income tax "Post-office , Telegraph service Crown lauds Interest on advances Miscellaneous Totals : Quarters ended— September 30, 1886. £4, 749, 000 5, 685, 000 2, 735, 000 nil. 05, 000 925, 000 1, 980, 000 515,000 65, 000 165,545 590, 017 17, 404, 562 December 30, 1886. £5, 557, 000. 7, 780, 000 3, 060, 000 5,000 25, 000 1,350,000 2, 360, 000 440, 000 13U, IIOO 301, 652 801, 747 21, 815, 299 March 31, 1887. £5, 002, 000 6, 330, 000 3, 045, 000 1,005,000 1, 255, 000 10, 570, 000 2, 350, 000 ■445,000 95, 000 418,311 795, 849 31, 309, 100 June 30, 1887. - £4, 641, 000 5, 500, 000 3, 190, 000 45, 000 550, 000 2, 965, 000 1, 790, 000 465, 000 80, 000 249, 509 584, 200 20, 059, 799 Tear ended Juno 30, 1887. £19, 949, 000 25,295,000 12,030,000 1, 055, 000 1, 895, 000 15,810,000 8,480,000 1, 870, 000 370,000 1,122,917 2,771,903 90,648,820 ENGLAND. 691 I. — An abstract of the gross produce of the revenue of the United Kingdom in the under- mentioned periods ended June 30, 1887, etc. — Continued. Items. QuartoiB ended — September 30, 1885. December 31, 1885. March 31, 1886. Juno 30, 1886. Tear ended Juno 30, Cnsloms Excise Stamps Laud tax House duty Property tax and income tax Post-office Teleprapli service Crown lands Interest on advances Miscellaneous Totals £4,271,000 5, 670, 000 3, 730, 000 nil. (15, 000 755, 000 1, 950, 000 490, 000 65, 000 208, 486 772, 610 £.-,, 319, 000 7, 845, 000 2, 800, 000 nil. 20, 000 1,200,000 2, 140, 000 410, 000 130, 000 682, 876 647, 131 £4, 913, 000 6, 3ri0, 000 3,015,000 970, OOO 1, 230, 000 10, 770, 000 2, 400, 000 396, 000 105, 000 324, 329 893, 143 £4, 847, 000 5, 455, 000 2,090, 000 60, 000 565, 000 3, 055, 000 1, 760, 000 425, 000 80, 000 303, 784 643, 953 £19, 350, 000 25, 350, 000 11, 535, 000 1, 030, 000 1, 880, 000 15, 780, 000 8, 250, 000 1, 700, 000 380, 000 1,418,475 2, 956, 837 16, 977, 090 21, 094, 007 31, 375, 472 20, 183, 737 89, 630, 312 II. — Increase and decrease in the periods ended June 30, 1887, as compared with corre spending periods of the preceding year. Items. Quarter ended June 30, 1887. Increase. Decrease. Year ended June 30, 1887. Increase. Decrease. Customs Excise Stamps Land tax ^ House duty Property and income tax . Post-office Telegraph service Crown lands Intere.it on advances Miscellaneous £45, 000 20O, 000 £599, 000 30, 000 40, 000 15 000 15, 000 90 000 495,000 25, 000 15, 000 30, 000 230, 000 150, 000 £35, 000 63, 275 59, 663 10, 000 296, 658 184, 934 Totals - Net decrease Net increase-. 315, 000 438, ! £123, 038 1, 544, 000 525, 492 £1, 018, 508 ■ III, — An account showing the revenue and oilier receipts in the quarter ended 30rt June, 1887, the issues out of the same, the charges on the consolidated fund at that date, and the surplus or deficiency of the balance in the exchequer on 30th June, 1886, in respect of such charges. Surplus balance in the exchequei on the Slat March, 1887, beyond the amount of the charge on the consolidated fund at tUat date, as per last account £983,818 Income received as shown in account 1 20,059,799 Amount raised by treasury bills issued to replace (in part) hills paid off 6, 360, 000 Amount received In repayment of advances for public works, etc 330, 110 Total 27,733,727 Excess of the sums charged on the consolidated fund on the 30th June, 1877, payable in September quarter, 1887, above the balance in the e-xohequer on the 30th June, 1887. viz : Excess of charge in Grreat Britain *3. ^^*' J:^^ Surplus overcharge in Ireland o51, 067 Net deficiency ^' 183, 524 Charge on 30th June, 1887 (as on the other side) ^n'nnl'?m Paid out of growing produce in June quarter, 1887 9,007,101 Portion of the charge payable in September quarter, 1887...... 7,267,274 ♦ To meet which there was in the exchequer on 30thJune, 1887 5, 084, boO Net deficiency as above l'.}3— Total J9^^ . 138— "^To. 99—28 692 REPORTS ON TAXATION. A monnt applied out of the income to supply servioea £13,641,976 Charge of tne consolidated fund on the 30th Jane, 1887, viz ; Permanent chaise of debt; Interest of the permanent debt £5,195,244 , Terminable annuities 2,220,386 Interest of exchequer bills, etc 39, 0(;4 7, 452, 694 Interest on loans for local purposes 189,651 Principal of treasury bills 7,760,000 Principal of exchequer bills 8, 500 Advances for public works, etc 410,300 Other consolidated fund charges : The civil list 102,605 Other charges 350,625 453, 130 16,274,276 Total 29,916,251 In conclusion, it may be noted that approximate accuracy only is claimed for this brief summary. For more than this, in connection with so large a subject, neither time nor opportunity has been at command. F. H. WiGFALL, Gonsttl, Leeds, November 2, 1887. lilVEEPOOIi. TAXATION, NATIONAL AND LOCAL. BEPOBT OF MB. OSABLES T. BUSSELL, OONSVL AT LITEBFOOL. The rates in Liverpool are levied by the corporation and the poor- law authorities, respectively. The rates levied by the latter are termed parochial, and are paid by the occupiers of property, except in the case of small tenements, where the owners pay on a reduced assessment, whether the property is occu- pied or not. The local taxation is entirely raised by direct rates upon the owners and occupiers of property, viz, house, of&ce, shop, and ware- house buildings. The indirect dues levied by the dock board upon imports and ship- ping are extra-municipal and entirely removed from corporation con-, trol. One assessment survey is made for the purpose of the poor-law or parochial rating, and apparently remarkable satisfaction has for many years attended the decisions of the parish assessor. The borough or municipal authorities adopt the poor-law assessments as the basis of their sanitary and school rates, and paving, lighting, and water rates; also the same as to the police rate, though here two points should espe- cially be mentioned, viz : (1) The Imperial Government defrays a large part of the cost of police and crime; and (2) the Liverpool corporation estate, a patrimony of great value and very ancient and obscure origin, yields a large annual income to the funds of the city ; and thus the pressure of local taxation to some extent is relieved. In local rating, the owners of property pay half the sewer and water rate, and in new streets they pay the major part of the cost of construc- tion, though the corporation staff do the actual work, the owners re- funding its cost. On a few estates the ground landlord puts down main .roads only; the lessees paj- for the minor roads and streets. ENGLAND. 693 Though church rates are nominally abolished, this city levies several thousands of pounds yearly from its rate-payers to defray the expenses of certain churches belonging to the Eijiscopalian sect. There is also a library and museum rate of small amount collected by the municipality. As to the general incident of local rates here, no very great and jus- tifiable complaints are made. The system of compounding for small cottage properties gives an in- ducement to owners to pay the entire rates for such blocks of tene- ments, and to recollect the items from their poorer tenants by means of the rent. The costly rental of office property and warehouses in the exchange or central district involves heavy rating upon most of the mercantile class, and thus largely discounts the effects of their residences being outside the city area, where taxation is considerably less. Still, in the exemption thus obtained some abuses await rectification, the grievance affecting mainly the shop-keeping class, who are obliged to live inside the area, and whose heavy rents in the leading thoroughfares of trade necessitate seriously heavy payments to the local tax collectors. The jails are under imperial management, but all other branches of the criminal and pauper administration are locally controlled and de- frayed, except a small grant from government for pauper lunatics. On the other hand, the imperial exchequer receives the whole of the cus- toms duties and excise charges on intoxicants, the revenue for liquor license, and the beer duty. The total receipts for the calendar year 1886 from all sources of mu- nicipal and parochial taxation, excepting the poor rate, which is kept separate and apart from all taxation by the parochial authorities, was $5,361,200, and the expenditure $5,262,025, showing asurplusof $98,575, made up as follows : Ordinary receipts: Other receipts: Lighting, tire, police, and Estate, real and personal.. $341,090 ■vratch rates |283,650 Markets 82,900 Parks and museum rates.. 210,195 Buildiugs 6,525 Improvement rates 283,810 Tramway surplus 31,220 Sanitary rates 1,067,300 Artisans' dwellings 10,935 Water rates 344,555 Port sanitary account 220 The item for real and personal estate represents general interest, fines on leases and renewals, and ground rents, etc. The item for mar- kets represents the amount collected for rent of stalls in the public wholesale and retail markets, and also for fees in connection with pub- lic weighing machines. Extraordinary receipts from different sources, such as corporation stocHi, interest on loans, etc, amount to $2,698,800. The following are the items of expenditure : Lighting, watching, prevention of fires, and preservation of the peace . |483, 745 Administration of j ustice - 39, 580 Parks, etc ■- 258,795 Baths and warehouses 4,045 County expenses 68, 855 Churches - 14,145 Estahliahments 116,635 Department 81,205 Miscellaneous accounts 96, 975 Improvement accounts 444, 150 Sanitary accounts 1> 187,485 Tramway accounts 16, 320 Hospitals -icl'lm Water account ■^^''' ""^ 694 REPORTS ON TAXATION. Extraordinary payments from different sources, such as property purchased, new buildings and additions, sanitary accounts, hospital account, water account, etc., amount to $2,087,495. The following table shows the various local charges in the five dis- tricts into which the municipality of Liverpool is divided: Parochial rates. Diatiict. a n ■H 3 N'T *« 1 -a s Cts. to □ 1 a > o a H i 1^ 1 a g 1 s Cts. Cts. cts. cts. Cte. Otfs. au. r7te. (7^«, CIS rrs Kirlidale 8 t'i 18 12 27l' H 6 $1. Hi 1. iij 1.07J 99 34 2 36 60 $1.48J 1.62 1.51 1.31 1.19 S »n 21* 16j 13 I" 11 s •^1 l- 274 27i 274 l") H •IS Toxteth Paifc fi If! ^'> ll 6 28 2 *> 32 36 8 8 6J 11 15 6 .84 32 2 1 The estimated population is 592,981, and the ratable value of the city is $17,133,520. I may here say that it is impossible to give the expenses connected with the collection of the different taxes, as the salary, etc., of the col- lectors does not represent the cost of collection, inasmuch as they are required to perform other very important duties besides collecting, such as the preparation of the parliamentary and municipal voting register, collecting and tabulating the information for such register, and the prep- aration of the jury lists. The percentage of local taxation, compared with the amount of rent assessment, is about 26 per cent. The rent assessment of houses, etc., is generally about 15 per cent, lower than the amount of rent actually paid. NATIONAL TAXATION. The principal direct taxation imposed by the imperial Government are the income and property taxes, the income tax being collected at present at the rate of IC cents on every $4.86. Incomes of under $729.97 per annum are exempt. Incomes of $729 and upwards, to $1,946.60, are allowed an abatement of $583.98. Incomes of over $1,946.60 pay on full amount. The following taxes are imposed for licenses on every person employ- ing any male servant, or keeijing any carriage, or wearing or using armorial bearings: Per annmn. For male servants $3. 65 Carriages not being hackney carriages : Witli four or more wheels 10.22 With less, or if four under 4 cwt 3.65 Armorial hearings: On a carriage 10.22 Not on a carriage 5. 10 Dogs 1-82 Hackney carriages plj'ing for hire in public streets 3. 65 The revenue of the country is mostly collected through the customs, excise, and stamps ; that of the customs is composed of duty on coffee, spirits, tea, tobacco, wines, etc. ; that of the excise, on beer, licenses. ENGLAND. 695 radways, and spirits, and that of stamps for stamping deeds and other documents, wills, legacies, marine insurances, bills of exchange, etc. iJills ot exchange payable on demand must bear a 2-ceut stamp. Bills ot exchange of any other kind whatsoever (except a bank-note) and promissory notes of any kind whatsoever drawn or expressed to be payable, or actually paid or indorsed, or in any manner negotiated in the United Kingdom where the sum shall not exceed $24.33 sterling, a 2-cent stamp ; $24.33, and not exceeding $48.66, a 4-cent stamp ; $48.66, ll^J^n^ exceeding $121.66, a 6-cent stamp ; $121.66, and not exceeding $243.32, a 12-cent stamp ; $243.32, and not exceeding $364.98, an 18-cent stamp; $364.98, and not exceeding $486.65, a 24-cent stamp, and for every additional $486.65, and also for any fractional part of $486.65, a 24-cent stamp. All receipts for $9.73 and upwards must bear a 2-cent stamp. In a city like Liverpool, where four-flfths or more of the population are dependent upon earners of weekly wages, the masses are somewhat burdened by the indirect taxes on tea, cocoa, coffee, and other consuma- ble articles. The cost of collection it is impossible to tell, as the Government fig- ures give only a fraction thereof. Chas. T, Etjssell, (JOTlS'UiI/ LiVEEPOOL, July 15, 1887. NEWCASTLE-UPON-TYNE. REPORT BT JASPER SMITE, CONSVL. The gross amount of revenue for the United Kingdom for the year ending March 31, 1886, was £92,135,296 ; expenses of collection and other charges amounted to £2,451,512, leaving £89,683,783 as the net revenue for that year. The income for the previous year was £1,620,728 less. The items of net revenue for the year ending March 31, 1886, were as follows : Customs . . . Excise Income tax Stamps House tax . land tax... Post-offlce . £19, 722, 302 25, 441, 922 15, 247, 312 11, 600, 614 1, 867, 377 1, 023, 196 8, 160, 651 Telegraphs Crown lands Interest on advances and Suez Canal shares Miscellaneous . . . ; Total , £1, 745, 05G 477, 820 1, 370, 080 3,019,453 89, 683, 783 Under the head of property and income tax the approximate net produce of each schedule was as follows : Schedule. Item. Amount. A *3, 101, 442 B 399, 137 1, 322, 274 C D 7 502 109 E 922, 360 Total 15, 247, 312 696 REPORTS ON TAXATION. It will be seen that the largest amount of revenue from one source is from tbe excise duty. Of this there was from beer, £8,403,580 ; from spirits, £13,140,694, and from tobacco there was derived £9,298,989. It may also be observed that although this is called a free- trade country, a large revenue is derived from tea and coffee, viz : From tea, £4,187,254; from coffee, £202,355. It Qiay be thought by many that customs duties can not properly he called a tax. But whatever view may be taken with regard to it, it will be interesting to know how simple the tariff of this country is, and on how few articles duties are collected. In the year ending March 31, 1886, the receipts from customs duties were as follows : Beer £8,911 Chicory 65,651 Cocoa 70,472 Coifee 203,355 Fiss 29,047 Plate 6,887 Plums 6,737 Prunes 7,796 Raisins 146,630 The income from excise duty is heavy. From beer, £8.403,580 ; from spirit, £13,140,694; from chicory, £2,536, and from coffee'labels, £3,989. The following were collected for licenses : Auctioneers £80, 169 Beer and cider 186,547 Brewers 36,140 Dog 343,133 Armorial 76,234 Carriages 540,508 Male servants 137, 294 Game 184,958 Plate-dealers 48,263 Gun 85,942 There were received for — Probate duties £4, 106, 644 Rum £2, Brandy 1, Geneva Other sorts Tea 4, Tobacco, etc 9, Wine 1, All others 029, 391 356, 673 124,342 643, 465 187, 254 298,989 194, 654 2,247 Legacy . Succession Corporation Deeds Bills of exch ange Receipts and Id. stamps Bankers' notes , 474, 722 858, 240 32, 047 , 800, 000 653, 354 963, 260 96 Hawkers £26,595 Medicine vendors 5, 064 Pawn-brokers 35, 385 Refreshment houses 6,835 Distillers and rectifiers 4,166 Publicans and grocers 1,474,381 Spirit dealers 119,669 Tobacco 85,301 Wines 67,934 Other 9,096 Composition £124,010 Cards 15,e!52 Gold plate...., 22,310 Silver plate 45,002 Licenses, etc 153, 164 Medicines 178,718 Life insurance 38,529 Marine insurance 136, 380 EXCISE STAMPS AND TAXES. I give below a complete list of excise stamps and taxes as now in force. These taxes were very annoying to the people, but they have be- come so accustomed to them that little agitation for their appeal or reduction is made. The taxes enumerated in the list annexed vary little from year to year. The most variable tax in this country is the income tax. It is increased or diminished with the necessities of the Government. At preseut it is 8d. on the pound. It seems to be the tax to which the Government looks to balance the budget. It is a burdensome tax, but as it falls chiefly upon those who are sup- posed to be most able to pay, there is little chance of its repeal. But every administration feels itself happy if it is able to take a penny or more off the income tax. The distinguishing featnre between taxation in this country and the United States seems to me to be that here it is generally levied upon ENGLAND. • 697 income, such as rental of real estate, etc. ; whereas iu our country it is levied upon gross value without reference to rental. By the English system unoccupied real estate almost entirely escapes taxation. The policy of this system is open to grave doubts, as it seems to encourage landlords to leave properties uncultivated and unimproved. The city of Newcastle-upon-Tyne has, according to the report of tlie registrar-general, a population at the date of March 25, 1887, of 155,000 persons, taking a gradually estimated increase since the last census. The rates levied in Newcastle-ou-Tyne for the year ending March 25, 1887, are the municipal rates and the poor rates. The former rates are collected under the following heads, viz : General rate, ls.7d.m £1 £59,629 8 5 Improvement rate, 7(i. in £ 1 21,520 8 3 General district or park rate, 3d. in £1 8,306 14 2 Total.... 89,456 10 10 In addition to the above rates, the following are levied by the council of the city, but are collected by the local poor-law authorities, or poor- law guardians, viz: Lunatic asylum rate, 2d. in £1 ; board school rate, i^d. in £1; library rate. Id. in £1. Occasionally a small jail rate, not collected annually, but only when required, amounting to about one-sixth of a penny per pound per annum. It is usually collected as a half-penny rate at intervals of three years. The above three rates are collected by the poor-law guardians accord- ing to precepts issued by the corporation, and the amounts when col- lected are paid over to the city treasurer. The school-board rate is collected in accordance with a precept issued by the school board ; and the luuatic-asylum rate by a precept from the governors of the lunatic asylum. The total municipal rates for tlie year ending March 25, 1887, were : General rate. Is. Id. in £1; improvement rate. Id. in £1; district rate, 3d.m£l; lunatic-asylum rate, 2d. in £1; board school rate, i^d.in £1; library rate, Id. in £1; jail rate, one-sixth of Id. in £1, collected every three years as a halfpenny rate. The amounts of rates vary frequently, but not annually, as may be seen by the following table : 18S6 -'87. 1887-'88. in a.. 1 d. 7 7 3 2 43 1 s. d. 1 11 do... 7J do.... 4 do.... 2 4i do... 1 do... i The other chief source of municipal income is from the estates and gen- eral property of the corporation, and amounted during the year ending March 25, 1887, to the sum of £60,465 5s. 7d., and the expenses charge- able to that fand were £54,561 6s. 5d., leaving a balance of £5,902 19s. 3d., which was carried to the credit of the general rate account. The general rate account is the supplement of the city fund account, and the amount levied annually for general rate is modified according to the surplus or otherwise of the city fund. The funds derived from the general rate are appropriated for the most part to the payment of police and watching expenses, street light- 698 REPORTS ON TAXATION. ing, repairs of roads, scavenging, sewering, paving, sanitary and health work, hospitals, etc. The funds derived from the improvement rate are appropriated to the payment of interest on borrowed capital, to its gradual redemption, and to street improvements and other incidental expenses. The capital debt of the corporation on March 25, 1887, amounted to £919,873, to which may be added lunatic aslyum debt, £43,000; school board debt, £43,000 ; making a total of £1,006,173 capital debt, the in- terest on which is paid annually and the principal in yearly install- ments extending over about thirty years. The capital debt of the corporation is increasing rapidly. During the last thirty years it has increased at the rate of £36,000 per aniium, and during the last three years the increase has been at the rate of £74,000 per annum. The ratable value of the city is estimated at £823,338, and the mu- nicipal rates are levied on the basis of 5 per cent, below the actual rental, and the poor rate on the basis of 10 per cent, below the actual rental. Tenements differ from the above. The rates are compounded for and are paid by the landlords or owners of the property. The deduction for corporation rates ou tenement property is 25 per cent., and the de- duction for poor rates on the same is 30 per cent. ; there is also a fur- ther allowance on this class of property if the rates be paid within a specilied time. The rates are paid upon the rental, not upon what may be consid- ered the market value of the property, it being always assumed that an owner will get as much rent as he can for the property as it is. If in the city some occupiers purchase the properties they occupy at exorbitant prices, they pay rates on the average rental of the district, not on the exorbitant value the purchase money indicates, as they have paid on account of their established business rather than because of the intrinsic value of the property. Both poor rates and muuicipal rates are collected half yearly. The city for both municipal and poor rates is divided into the following districts : Old municipal districts, collected March, 1886, to March, 1887. £ «. d. AllSaints 14,543 3 li St. Andrews ■-.. 16,313 14 3 St. Nicholas 5,5^5 17 0^ St.Johns 10,743 7 8 Total 47,126 2 1 Hew municipal districts, collected March 25, 1886, to March, 1887. £ «. d. Elswick 16,405 8 8 Westffate 11,418 17 5| Byker 6,857 9 9 Jesmoud 6,054 13 4 Heatoii 1,593 19 6J Total 42,330 8 9 Poor rates are collected half yearly and vary a little in amount from time to time. The following are the poor rates for the year ending 25th March, 188G: All Saints £7,910 St. Andrews 9,309 St. Nicliolas 3.228 St. Johns.. 5,824 Elswick £8,817 1 Heaton Westgate 6,739 | Beu well -. 1.2o» Byker 3, 691 j Fenham 153 Jesmond 3,330] > ENGLAND, 699 Paving, flagging, and sewering of new streets are paid by the prop- erty owners within four years, and 5 per cent, is paid for interest on the unpaid capital sum. All established streets .that have once been properly paved, etc., are kept in order at the expense of the city. Jasper Smith, Kewcastle-upon-Tyne, September 15, 1887. Consul. SHEFFIELD. BY CONSUL BENJAMIN FOLSOM. I.— Imperial taxes. National taxes in Sheffield do not differ in any material degree, either in application, rate, or method of collection, from those imposed upon manufacturing towns of similar size and importance throughout the Kingdom of G-reat Britain. The customs tariff is the chief if not the only system of indirect taxation employed by the Government, and that is, of course, levied at a uniform rate, according to the printed list inclosed herewith. These duties are few and simi^le, differing greatly from a complicated protective tariff, but they produce a very large revenue. The custom-house returns show that tobacco furnished the. largest amount of duties; spirits and wine came next, and tea stands third on the list, realizing from a tax of 12 cents per pound on all grades a yearly revenue of more than $20,000,000. The whole amount of customs receipts and the various articles upon which duties were collected in Great Britain and Ireland during the fiscal year ended March 31, 1886, are as follows : Ale, beer, etc $43,365.38 Chicory 319,490.59 Cocoa 342,951.98 Coffee 989,627.10 Currants 1,496,833.20 Figs 141,357.22 Plate, silver, etc 33, 223. 59 Plums 32,758.61 Prunes 37,939.23 Raisins 713,574.89 Eum 9,876,031.30 Brandy 6,602,249. 15 Geneva 605,110.34 Other spirits 3, 131, 422. 42 Tea 20,377,271.59 Tobacco 45,253,529.96 Wine 5,813,783.69 All other imports 10, 935. 02 Total 95,825,482.26 Of the internal or inland revenue the excise and license duties are the most important and productive, realizing to the Government nearly 1124,000,000 per annum ; and it is worthy of observation that the con- sumers of beer and spirits contribute no less than 62 per cent, of this vast sum, a fac.t which is no doubt regarded with melancholy satisfac- tion by the abstemious temperance tax-payer. The income tax is natur- ally regarded here, as elsewhere, with but little favor by the great majority of those rate payers whose annual incomes exceed the limit of exemption, which is fixed at $730. The rate at which this tax is .assessed for the present fiscal year is 7 pence (14^ cents) in the pound sterling ($4.86i). The whole amount realized under the several sched- ules of the income tax for the year 1886, when the rate was 8 pence in the pound, or 3 cents higher than at present, is given as follows : Schedule A. Lands, tenements, etc $24,826,167.49 SoheduleB. Occupation of land, etc h^^'^'tPal Schedule C. Annuities, dividends, etc 6, 434, 846. 42 Schedule D. Trades, professions, etc r^.Q^Ico^ Schedule E. Public offices, etc 4, 448, bib. 27 * Total ' 74,201,043.84 700 REPORTS ON TAXATION. In one of the reports of the inland revenue board, made some time ago, it was estimated that at least 40 per cent, of all the returns under Schedule D were underestimates or false statements of the actual in- come upon which the tax should have been paid. Oould this unpopular tax be honestly collected, it would no doubt tend to relieve the burden of taxation in other directions ; but as now administered it is productive of a great deal of false swearing and much grumbling over the payment of so much of the tax as can not be evaded. The stamp duties, the taxation of legacies, the so-called "death duties" or probate tax, the railway tax, and the inhabited-house tax, with others, fall under the inland revenue and return a large sum to the treasury. The rates at which these and all other internal-revenue taxes are levied are given in detail in the inclosure(?) accompanying this report. The imperial land and house taxes bring in the sum of $14,000,000 and upwards, derived from an assessment upon the estimated rental value of real property at the rate of 6 to 9 pence in the pound, which is paid by the occupant. The returns from royal forests, woods, and crown lands amount to about $3,325,000. The receipts from the post-offlce and telegraph, with a number of minor items, swell the grand total of national income from all sources to the gross sum $448,376,417.98 yearly. Prom' this total must be deducted^$ll, 930,283. 14 for allowances, discounts, drawbacks, bounties, etc., leaving a net revenue of $436, 446,134.84, made up as follows : Customs $95,978,582.68 Excise 123,813,113.41 Income tax 74,201,043.84 Stamps' revenue 56, 454, 388. 03 House tax 9,087,590.17 Land tax 4,979,383.33 Post-office 39,723,541.09 Telegraph $8,492,315.04 Crown lauds, etc 2,325,3X1.03 Interest on advances and Suez Can al shares 6, 696, 693. 32 Miscellaneous 14, 694, 173. 90 Total 436,446,134. Packet postal service |3, 557, 479. 63 Total. 48,769,245.28 The following figures show the costs of collection of the above reve- nue: Customs $4,649,707.15 Inland revenue 8, 741, 260. 83 Post-office 23,328,755.17 Telegraph 8,492,042.50 It will be noticed that the cost of maintaining the telegraph system of the Government comes within $272.54 of the whole amount derived therefrom. A careful examination of the customs tariff and the table of excise and stamp duties will show the whole groundwork of the system of national taxation in England, and reveal certain inequalities of assessment which give rise to serious complaint on the part of the poorer classes. LUXUEY AND NECESSITY MUST PAY ALIKE. It can easily be understood why wines and spirits and beer should pay a heavy customs excise duty, and the same applies to tobacco, since a fair minority regards it as a useless luxury; but why tea, an arfidle wbich has come to be regarded as a necessity and is used in vastly greater quantities by the poor than by the rich, should be saddled by a customs tax of 12 cents per pound, regardless of cost or quality, is something which the laboring man can not understand. England is ENGLAND. 701 io-day a nation of tea drinkers; it is the clieering beverage that grace nearly every breakfast table from palace to hovel, and there is scarcely I home in which afternoon tea is not served, and the great bulk of the tax upon this article is wrung from the hands of hard-working, and often poorly-paid, laboring classes. la 1667 the East India Company imported tea for the first time to the amount of 100 pounds. Last year there was entered at the British Bustomhouse not less than 167,490,160 pounds of tea, a quantity suf- acient to make 670,000,000 gallons of strong tea, or 19 gallons of the infasion for every man, woman, and child in the United Kingdom. Farther comment upon these figures is hardly necessary. During the early part of the present year the internal-revenue tax on tobacco was reduced 8 cents in the pound, but the result has not thus far been sat- isfactory, for consumers of the weed complain that there has been no corresponding reduction in the retail i)rice, the extra profit going into the pockets of the manufacturers and dealers, very much as was the case in the United States when the stamp duties on patent medicines were repealed. The following extract in reference to inequalities in the rates of the customs duties is taken from a current publication of the Financial Eeform Association of this country: If the people only knew how greatly they are pillaged and injured by this system of raising the revenue, all the forces of the Government would not suffice to maintain it for a siagle year. For the better understanding of what they are paying in taxes, when they suppose they are only paying for the goods they buy, it may be well to put the rates into familiar shape by showiug what they mean as to every supposed shilling's worth bought by retail. Thus : Out of every shilling paid over the counter for cocoa, 1J(?. is for the tax ; for coffee, l^fZ. ; for currants, ^d. ; for raisins, 2^4. ; and for tea, 4^^. ; with a fraction additional in each instance. The spirit duty malies the price of a nominal shilling's worth of spirits 4s. i^d. The tobacco duty raises the price of the shilling's worth to 6.s. 8|(Z., when unadulterated and unsmuggled, whilst oil wine takes only tlie fraction of a farthing more than 5d. from the shilling. As to tobacco, it may be interesting to smokers of the common sort to know, that of the 3d. paid for an ounce, 2^4. is for the Government and a half-penny only for the tobacco. In regard to the charges for stamps on leases, contracts, agreements, and other legal documents, for the sale of land, etc., the association asserts it to be an injustice, a hardship. Why should men be taxed for selling a house or a field when no tax is imposed for selling a ship or a bale of cotton goods ? There is no basis of equity in such taxa- tion, and the only class that can benefit from it is the close corporation of lawyers, whose charges, sufBciently exorbitaut in all respects, are further aggravated by these Government stamps on legal deeds ; and this is not all, for some of the house property may change hands many times a year, and is taxed afresh every time it is transferred. The same authority points out what it considers to be a few of the fiscal anomalies in the operation of the death duties, viz: (1) Many corporations owning real estate escape paying altogether, Several munic- ipal and ecclesiastical corporations hold great landed estates, and the charity trusts alone (of which there are 50,000) hold 524,000 acres of land, with a gross rental of more than £1,500,000 per annum. (2) The heirs of the great landlords pay but a trifling percentage, and that percent- age is levied only on an estimated life interest capitalized instead of on the full value of the freehold. The ducal estate of £50.000 a year, and which is worth £1,500,000, descending to an heir-at-law aged sixty-four, pays 3 per cent., or £12,800 succession duty, but a merchant or manufacturer having personalty of the same value would have to pay £45,000 probate duty and another £45,000 legacy duty ; in all, £90,000. (3) Small legacies of money arc oppressively mulcted as compared with large for- tunes. (4) Grossly unfair advantage is taken of intestacy, mainly to the vexation and .detriment of persons of small means. 702 REPORTS ON TAXATION. (5) Foreigners holding personalty here escape legacy duty, bnt Englishmen leasing personalty abroad become liable to pay. (6) The scale based on consanguinity acts with cruel hardship upon many of our struggling people, A millionaire's child pays nothing to legacy duty for personal es- tate, but the adopted child of a mechanic pays 10 per cent. A man marrying his de- ceased wife's sister would only pay 3 per cent, on any property she might bequeath to him, but if he died first she would be charged 10 per cent, on anything he left to her. A legacy from a step-mother pays 10 per cent., but a legacy to a step-mother pays nothing. The following recently pablished article on graduated taxation seems to he pertinent to the subject under consideration : It is remarkable that Switzerland, where greater equality of fortune prevails than in almost any other European country, should be the only one in which an organized system of graduated taxation has been instituted. In England a kind of graduation exists : First, in the exemption of incomes under £150 from the income tax. Second, in the almost complete exemption from probate duty of personal estates of less than £300 in value. Third, in the system of taxing articles of general consumption, whicli results in a very decided graduation the wrong way, namely, that the poor pay mucll more than the rich. The effect of the exemptions in the two first cases is more than counteracted by tlie third, the general result of the English fiscal system being that the smaller the in- ' come derived, as most small incomes are, from earnings the larger is the proportion that is taken as a contribution tD the public revenue. Estimates of the amount taken by taxation out of a laborer's wages of £1 a week were given some years ago in the Financial Reformer, showing the proportion taken to be from one-seventh to one-tenth. An examination of the income and expenditure of laborers and small farmers in Ire- land would lead me to place the amount at one-twelfth, in cases where there was no excessive expenditure in alcoholic drinks. The taxation on incomes of £1,000 a year, taken directly and indirectly, would be about one-twentieth, and above that amount the contributions get smaller and smaller as the income increases. Equality of tax- ation is admitted to be right in principle by all English economists ; the phrase is, however, ambiguous. It might mean (.1) that every person should pay an equal amount of taxes; (2) that every person should pay the same proportion of his income; (3) thateach person's contribution to the revenue should be such as would be equally felt by him. The first would be impracticable as well as unjust ; it is not contended for by any one; the .second is the usually accepted sense of the 5)hrase and is known as pro- portional taxation; the third constitutes " equality of sacrifice," and involves grad- uated taxation, i c, a tax the ratio of which to the full income increases as the income increases. Graduated taxation is defended on the ground that it is right to exempt necessaries and to tax the superfluities ; that in it true equality is found, in- asmuch as a large contribution out of the abundance of the rich is less felt than a small one out of the scanty means of living of the poor. Graduated taxation now exists in twelve out of the twenty-two cantons in Switzerland. The graduation is applied in dilferent ways; in some cantons, estates, real and personal, are classified according to their amounts. The rate of the tax is the same, but a varying propor- tion of the value of the estate' is exempted; thus in Zurich the tax is levied on five- tenths of properties up to £800 value; on six-tenths, up to £1,200; on seven-tenths, up to £2,000; on eight-tenths, up to £4,000 ; on nine-tenths, up to £8,000, and on the entire estate when exceeding the latter sum in value. In other cantons, as Argovil and Schaffhansen, an addition (surtaxe) of 5, 10, 15, and up to 33 percent, is made to the property tax as the tax at the ordinary rate exceeds certain specified amounts. In Vand, where progressive taxation will only commence to operate this year (1887), real property is divided into three classes, (a) under £1,000, (6) £ 1,000 to £4,000, (c) £4,000, and upwards. The land tax, which is struck each year, is to fall on these three classes in the proportions of 1, 1 J, and 2. Personal estates and incomes are divided into seven classes, taxed in the proportions of 1. 1|, 2, 2J, 3, 3i, 4. The tax is levied on capital, not on the annual value of the estate. Everything is taxed, whetherit yields an income or not-; furniture, pictures, jewelry, carriages, etc., but furniture and trade appliances up to the value of £20U are ex- empted. Where income exists without a corresponding capital, as from wages, earn- ings, life annuities, a deduction is made of £16 per head for each person dependent on the head of the family for support. Thus, a bachelor earning £200 a year would pay about £3, while a married man with the same income and twelve children would pay nothing. The revision of the Vaudois constitution, which was necessary before introducing the law of taxing estates by classes, and the law itself at> its various stages, was carried by overwhelming majorities. The foregoing article is quoted because there is at present a move- ment on foot in England to reform many of the unequal taxes now iin- ENGLAND. 703 posed, aud to substitute instead a system of graduated or progressive taxation. II.— Local Taxation. The borough of Sheffield covers 19.651 acres, wholly within the West Biding of the county of York, with a population estimated at 316,000. It was incorporated in 1843, and is divided into nine wards, made up of seven townships, as followsz: Sheffield, Brightside, Attercliffe, Eccleshall, Nether Hallam, Upper Hallam, and Heeley. The local government is vested in a mayor and a town council composed of sixteen aldermen and forty-eight councilors, whose powers' extend to the control of the police force; the lighting, cleaning, and repaving the streets ; drainage and sanitary measures ; the fire department, baths, markets, 'libraries, parks, tramways, water, and the general improve- ment of the borough. The only revenue available to the council is that drawn directly from the pockets of the rate-payers by means of local taxation assessed upon real property alone. The town trustees, an- other body, are elected by the freeholders residing in the parish of Shefleld, for the purpose of administering a trust, which realizes an annual income of about $25,000, applied chiefly to public improve- ments and charitable institutions. There are two poor-law unions within the borough, viz, the Shef- field Union and the Eccleshall Bierlaw Union, whose functions relate to the enforcement of the poor-law acts and the conduct and management of the workhouses, which correspond to almshouses in. America. Each union is governed by a separate board of guardians, assisted by a body of overseers and a stafi' of clerks, collectors, medical ofiScers, andassist- ■ants. The guardian and overseers are elected by the vote of the peo- ple in the several townships, and upon these overseers devolves the duty of assessing and collecting the rate deemed necessary for the proper support and maintenance of the poor and indigent in the town- ships within their respective unions. Tney also collect the borough rates, which are assessed twice a year for general purposes. These rates, amounting to about 31 cents in the pound sterling, are levied equally upon the rental value of real property in the several townships, and are included in the poor rates. The workhouse for the Sheffield Union at Fir-vale, a suburb, is one of the largest and most complete structures of its kind in the country. The site embraces 44 acres of land, and the buildings which form the workhouse proper have a frontage of 1,100 feet. They are constructed for six departments or divisions — the main building for general purposes, the lunatic asylum, the schools, the hospital, the fever hospital, and the vagrant wards. The workhouse is amply sufficient for the accommodation of 1,063 paupers, and its cost with the land falls but little short of $1,000,000. A report of the board of guardians for the week ending October 19, 1887, gives the number of inmates 1,438, and relief furnished to out- side persons numbering 4,857, amounting in money and kind to nearly $2,000. The Eccleshall Union Workhouse is a handsome and well arranged stone structure at Cherry-tree Hill, about two miles south of the center of the town, and has extensive gardens aud grounds. It cost nearly $100,000, and accommodates 500 paupers, besides furnishing 1,500 per- sons outside relief. This union comprises the townships of Eccleshall, Nether Hallam, Heeley, and Upper Hallam, with a few rural districts outside the borough. 704 EEPORTS ON TAXATION. The following table, the figures for which were kindly furnished by Benjamin Jones, esq., the borough accountant, show the ratable value (which is far below the actual rental value) of occupied premises in the several townships of the borough, and the local and government rates for the present year : Township. ■> Batable value. American money. Englisli money. Poor-rate inclading borough rate, in the * ($4.86i). District rate, in the £. Imj)erial tax, in the Total, in the*. Sheffield Brjghtaide Atterclilfe Eccleahall Nether Hallam Heeley Upper Hallam . $1, 805, C67 1, 194, 253 360, 2D1 1, 101, 707 609, 483 102, 634 119, 735 £370, 917 246, 403 75, 268 226, 386 104, 082 21, 090 24, 604 $0.73 .73 .73 .73 .73 .73 .73 i0.14 .14 .14 .14 .U .14 .14 $1.70 1.68 1.84 1.52 1.52 1.52 1.52 There is, in addition to the above rates, an imperial tax, called Che inhabited-house duty, amounting to 9 pence in the pound, on houses rated at £20 and upwards. Out of 65,000 buildings, workshops, and tenements in the borough, 45,000 of them are rated at a rental value of less than $35.90, and in such cases the landlord, and not the tenant, is liable for the local rates. At the first glance, rents would seem to be extremely cheap in this lo- cality, but when a tenant takes a dwelling-house at an annual rental of $300 he finds he is obliged to pay, in additioii thereto, not less than $100 in yearly taxes. And as the non-payment of taxes in England is treated in much the same manner as a crime, there is, as a consequence', but very little tax shirking indulged in. In order to show just what amount of tax a householder in Sheffield is obliged to pay per annum, national and local, upon real property, I have obtained the foUowiilg statement of rates and taxes levied on house, stable, out-houses, and plat of land occupied by A B for twelve months ending June 30, 1887 ; the entire premises rated at a rental value of £161 per annum : Imperial taxes: & s. d. Property or iucome, at 8(Z. in the pound 5 7 4 Land rated at seven-eighths of 4d. in the pound 2 11 Inhabi ted- house duty, at 9(Z. in the pound 6 9 11 11 Local rates:" District rate, at 3s. id. in the pound on rental value of £136 23 1 8 " ' Poor-rate, at 3s. 8d. iu the pound on rental value of £188, 15s 17 3 4 Voluntary rates : Gas, at 2s. 2(?. per 1,000 cubic feet 16 Water 9 6 Total 77 2 3 In the above instance, upon an assessed rental value of £161=:$783.50, the taxes, exclusive of the cost of gas and water, amount to $252.08, or not far from one-third of the rental value of the premises. In some localities, however, the tax-payers are fortunate enough to be almost free from local rates. For instance, the borough of Doncaster, in this district, owns the course and stands where the great racing event of the North occurs in September each year. Here the St. Leger— next in * These rates are determined by local boards and do not include gardener's cottage and out-buildings, which accounts for the variation in assessment. iiJNUJjAJXJJ. 705 importance to the Derby — is run and actually managed by the borough officials. The amount realized by the town from admissions, stands, etc., at the last September races, according to the published statement of the borough account, is $65,946.30, a sum almost sufficient to defray the local expenses of the town for a year — a fact which is regarded with great satisfaction by the rate-payers of Doncaster. All local improvements in Sheffield, such as street-paving, sidewalks, sewers, etc., and repairs, are paid from the district rates or general fund, and not by local assessment upon the property immediately ben- efited. The public schools, called board schools, receive a certain amount of support from the imperial and the local treasury, but they are not free schools such as America possesses. The pupils in attend- ance must bring a few pence individually, according to the grade they are in, and pay the amount weekly to their teachers. It may not amount to much, but it is a tax that is felt by the poor. Inequalities of taxation no doubt exist in various forms, and the remedy proposed by one party is to extend and enlarge the customs tariff sufficiently to protect all home industries. The free-trader, on the other hand, takes an entirely different view of the matter; his plan is to do away with indirect taxation entirely and reform the present inland system. The history of local taxation in England, its growth and pressure upon certain classes and trades, has been ably set forth in a series of articles recently published by that well-known writer and advocate of free-trade. Prof. J. E. Thorold Eogers, late member of Parliament, and the same, in a slightly condensed form, are transmitted herewith in an inclosure. The accounts of the town council of Sheffield for the year ending March 2.5, 1887, show a net ordinary expenditure (including $172,293.56 paid over to the school board) of $1,154,665.73. This sum is exclusive of outlay on special work, but includes interest and the year's instal- ment toward repayment of loans for such work. The follow'ing is a concise abstract of income and net expenditure after deducting the earnings of the various departments: Income. Borougli rates, included in poor-rates $327,386.92 General district rates 672, 238. 12 From imperial treasury: Half cost of police pay and clothing 69,145.05 Half cost conveyance and maintenance of convicts 1, 168.42 Half cost criminal prosecutions 9, 964. 94 Half cost grant toward maintenance of disturnpiked roads 3, 473. 68 Total income 1,083,377.13 Expenditure. general administrative expenses. Interest and repayment of loans $200,831. 1'2 From clerk's department 11,544.58 Borough accountant's department 13,788.77 Borough analyst and accountant auditor 1,048.72 Weights and measures and gas-meter testing ''•'orf'i^ Municipal and Parliamentary elections o'-n^' ir General improvements, less rents, etc •^j °05. fcfa HIGHV/AYS. Borough surveyoi-'s department onn'mJa^ Streets and highways -- iOU,b7d.»d 706 EEPORTS ON TAXATION. HEALTH. Medical officer, cleansing, superintendents, and smoke inspector $11. 414.47 Scavenging and night-soil removal 153 oio'ss Borough hospital' 8119! 59 Sewage precipitation works 3o'354!91 Prevention of pollution of rivers and streams g' 504! 43 Contagious diseases act — animals '70o!74 PIRE BRIGADE, LIGHTING, AND POLICE. Fire department 4,139.62 Lighting 76* 068." 07 Constabulary and police I44 087. 33 Miscellaneous accounts „ 411.67 General county expenses 45 78y| 20 ADMINISTRATION OF JUSTICE. Criminal prosecutions 11,759.54 Juveniles in reformatories 2,647.02 Clerk of the peace 1,387.35 Coroner , 2,468.24 Stipendiary magistrate and clerk 16,059.45 Town hall maintenance 2,086.40 EDUCATION, ETC. School hoard 172,293.56 Free libraries and museum 1 21,537.68 Public parks, etc 8,157.87 Public baths, etc, 2,340.38 1,170,880.53 Deduct fees collected by magistrate's clerk and clerk of the peace 16, 215. 03 Total expenditure , 1,154,665.50 Total income , 1,083,377.13 Excess of expenditures 71,288.37 Surplus, March 25, 1886 : Borough and district fund 71,288.37 Through the kinduess of Mr. BeDJamin Jones I am enabled to trans- mit herewith printed abstract of the accounts of the corporation of Sheffield, in two bound volumes, showing the income and expense ac- counts of the borough in detail. Benjamin Folsom, Sheffield, October 31, 1887. . Consul [Inclosnre 1.] Inland revenue — Excise, stamps, and taxes. Accoant duty. See Probate Duty. Admiaaiou — To the degree of a "barrister As solicitor, or proctor, or W. S Member of any inn of cbaucery As fellow of college of physicfans As doctor of medicine (Scotland) As burgess— By birth, apprenticesbip, or marriage Oil any other ground As a notary public— In England In Ireland A3 a burgess in Scotland English money. A s. d. 25 10 1 3 30 20 5 American money. 121.66 14.60 121. 66 48.66 4.86 14.60 146.00 97.33 1.22 ENGLAND. Inland revenue — Exoiae, stamps, and taxes — Continued. 707 Affidavit, or statutory declaration Agreement, or meraovanduni of agreement : Under bond only, not otherwise charged For less than a year of a furnished house, the rent exceeding J£25 Appointment of a new trustee and in execution of a power of property, not being by a will Appraisement or valuation of any estate or effects: Where tlie amount of the appraisement shall not exceed — £5 ($24.33) , £10 ($48.66) , £20 ($97.33) £30 ($145.99) £40 ($194.66) £50 ($243.32) £100 ($486.6.?). £200 ($973 30) £500 ($2,433.25) ExceediiifT £500 Appraisers and house agents, annually. United Kingdom Apprenticeship indentures; If no premium - For every £5 and fractional part J.. Armorial bearings: Annual license. Great Britain If used on any carriage, Great Britain Arms, grant of, stamp duty of Articles ot clerkship to solicitor — In England or Ireland In superior courts, in Scotland, or counties Palatine of Lancaster and Durham Auctioneer's annual license, United Kingdom , Award : Where the amount or value of the matter in dispute shall not exceed — £S ($24.33) £10 ($48.66) , £20 ($97.33) £30 ($145.99) £40 ($194.66) £50 ($243.32) £100 ($486.65) • £200 ($973.30) ; £.iOO ($2,433.2.5) f £750 ($3,649.87) ' £1,000 ($4,866.50) Exceeding £1,000, and also in all other cases not above provided for , Bank note for money payable on demand, not exceeding — £1($4.86) £2 ($9.73) £5 ($24.33) £10 ($48.66) £20 ($97.33) ■ £30 ($145.99) ■ £50 ($243 32) £100 ($486.65) Babnkers' annual license, United Kingdom Bankers' cheques Beer— per barrel of specific gravity of 1 .057 degrees Beer dealers and brewers, annual licenses- Beer dealers, wholesale, not brewers. United Kingdom Beer dealers to sell in any quantity, additional, not to be consumed on the premises, England and Ireland Brewers brewing beer for sale, United Kingdom > Other brewers. United Kingdom — Annual value of house not exceeding £10 ($48.66) Annual value exceeding £10, but not exceedmg £15 ($72.99) In every other case, in addition to the duty on the beer made , Ketailera of beer, cider, and perry— , ^. , , For consumption on the premises (United Kingdom) , ;■ Not to be consumed on premises (England) Retailers of table-beer (United Kingdom) Eetailers of beer (Scotland) — Kated under £10 ($48.67) Rated at £10 ($48.60) or upward... Retail dealers of beer and wine (United Kingdom)— ' For consumption on the premises ■ Not to be consumed on the premises ■ Bill of lading : Bills of exchange payable on demand, for any amount BUla of exchange of any other kind, and also promissory notes— 1 Not exceeding £5 (24.33) 138— No. 99 29 English money. £ s. d. 2 6 6 2 6 3 6 1 fl 1 6 2 2 6 5 10 15 1 2 2 6 5 1 1 2 2 10 80 60 10 3 6 1 1 B 2 2 6 5 10 15 1 1 5 1 15 5 10 1 3 1 9 2 3 5 8 6 30 1 6 3 3 6 1. 1 5 1 4 9 4 3 10 1 5 5 2 10 4 4 4 3 6 1 1 708 REPORTS ON TAXATION, Inland revenue — Excise, stamps^ and taxes — Continued. Bills of exchange of any other kind, aud also proiuissoiT uotes— Continued. Exceeding £5 (i?24. ment of money. Sec Mortgage Bond, etc. Bond foi- aecuringan annuity : 1. ^Vhe^e the total amount is ascertainable. Same as mortgage bond, etc. 2. Where the payments are for the term of life, or other indefinite period: Eor every £5 ($24.33), and every fractional part of £5 payable annnally — If as primary security If as collateral security Bond, , for customs or excise duties, same as mqrtgage bond, etc. (but not to exceed 5s.) Bond not specifically chargi^d, same as mortgage bond, etc. , including Fidelity bonds, but not to exceed 10s. ($2.43). On obtaining letters of administration, etc. (not exceeding £100 ($486 65) exempt) Card (playing) makers: To sell Eor every pack, duty Carriages, annual license (Great Britain): Hackney carriages For every other carriage, i. e., "with four wheels, weighing 4 cwt "With two wheels; or four wheels, if weighing loss than 4 cwt Half these rates only charged on licenses taken out between Octo- ber 1 and December 31. Certificate — to be taken out yearly by every attorney, solicitor, proctor, writer to the signet, notary public, and .■^worn clerk. Residing within 10 miles of the general poat-oifice, London ; or either in the city or shire of Edinburgh, tw" in the city of Dublin, or within 3 miles thereof. If residing elsewheru During first three years, one-half only. Certificate: Of goods, being duly entered inwards, for drawback Of birth, marriage, or death Charter party Cheques, or drafts, payable on demand or to order Chicory, per cwt., raw or kilu-dried Cider and perry (England), annual license, retailers of CotFe© mixtures or substitutes, per i pound.. , Commission — To any officer in the army or royal marines To any oflicer in the navy Of lunacy '. Contract note, stocks, shares, etc Contract or grant for payment of a superannuation annuity: For every £5 ($24. 33) or tractional part of £5 Conveyance: Where the purchase money shall not exceed £5 ($24.33) Exceeding £5 ($24.3;j) and not exceeding £10 ($48.66) Excei^ding £10 ($48.66) and not exceeding £15 ($72 99) Excrediug £15 ($72 90) and not exceeding £20 ($97.33) Exceeding £20 ($97.33) and not exceeding £25 ($121.66) For every additional £25 ($121,66) up to £300 ($1,459.95) If exceeding £300 ($1,459.95). then for every £50 ($243.32) Of any kind not otherwise (charged Conveyance or transfer — Of Hank of England stock East India Company stock Of any debenture stock or funded debt of any company or corporation, and colonial generally; for every £100, or fractional part of £100 ($486 65), of nominal amount transferred Proviso for composition in these cases, see 43 and 44 Vict., c. 20, ss. 53 to 57. Copy or extract (attested or authenticated), the same duty as original, but not to exceed Copyhold and customary estate: If on sale, raoitgage, or demise, the ad valorem duties under those heads, Not upon sale, mortgage, or demise, surrender or grant made out of court, or the nitniornndum thereof, and copy of court-roll of any sur- render or grant made in court Corporate and unincorpurate bodies : Upon the net annual value, income, or prnfiis accrued in respect of all real or personal property vested in such bodies per cent.. Snbjectto certain exemptions laid down in the act 48 and 49 Vict., c. 51 Covenant, deed of, not chargeable with ad valorem duty English American money. money. £ s. d. 2 $0.04 3 .00 u .12 9 .18 10 .24 10 2 6 6 15 2 2 9 6 4 (1 1 6 1 12 1 1 ,■; i 1 10 .■; 5 1 6 6 1 1 6 2 2 6 2 6 5 10 fl 7 9 1 10 2 6 10 10 5 10 ENGLAND, Inland revenue — Mxciae, stamps, and taxes — Continued. 709 Debenture or certificate for drawback, or goods exported, etc. : Not exceeding £io ($48.6C) Exceeding £10 ($48.66) and not exceeding £50 ($243.32) Exceeding £50 ($243.32) Delivery order of goods of the value of 40s. ($9.73) or upwards, lying in any dock, port, warellouse, or wharf, or rent, or hire, on the sale or transfer of goods . English monev. Demise. (See Lease.) Distiller's annual license. United Kingdom , Dogs of any kind (annually), Great Britain , Dogs under six months of age, andthosekept8olelyforthepurpo.se of tending sheep or cattle on a farm, or by shepherds, or by blind persons for their guidance, exempt. Duplicate or counterpart: The same duty as original, but not to exceed 5s. Ecclesiastical licenses: To hold the office of lecturer, etc Eor licensing a building for the performance of divine service, etc., and any chapel for solemnizing marriages therein Licenses not otherwise charged Faculty or dispensation: In "England, in all cases In Scotland or Ireland — In some cases In others Fees are taken in all public departments by means of stamps ; such payinenta are accounted for to the exchequer under the heading of Miscel- laneous revenue. (Same licenses, United Kingdom: If taken out after July 31 and before November 1, to expire on July 31, following After July 31, to expire following October 31 After October 31. to expire July 31. License tor a continuous period of fourteen days Gamekeepers, Great Britain, to expire July 31 Deputation of. stamp duty Gamekeepers, Ireland, same as game licenses. Game dealer's license, United Kiniidoin, annually Gun, license to use or carry, United Kingdom, annually, to expire on July 31 Hawkers' licenses. Great Britain {see Peddlers), per year: For each horse or other beast of burden Half year ending September 30 or March 31 , Hawkers' licenses, Ireland: Eor each horse or other beast of burden — One year Six months For every additional beast — One year Six months Eor every servant — One year Six months — House agents, letting furni&hed houses at a rent above £25 ($121.66) a year, annual license. United Kingdom Houseduty : On inhabited houses of theannual valueof £20 ($97.33), occupied " as a farm-boiise, iiublic house, cotfce-sbop, shop, or warehouse, a duty ofGd. ($0. 12j in tbo pound; all others Insurance policies: Life: For any sum not exceeding £10 ($48 66) Exceeding £10 ($48.66) and not exceeding £25 ($121.66) Exceeding £25 ($121.06) and not exceeding £oOO ($2,433.25), for every £50 (§243.32) or fractional part of £50 ($243.32) Exceeding £500 ($2,433.25) and not exceeding £1,000 ($4,866.50), for every £100 ($486.65) or fractional part of £100 (.$486.65) Exceeding £1,000 ($4,S66.50), for every £1,000 or any fractional part of £1,000 Accidental death, or personal injury, or loss or damage upon property Sea: For every £100 ($486.65) or fraction thereof insured For every policy for time, forevery £100 ($486.65) and any fractional part of £100 thereby insured, for any time not exceeding six months, 3d. ($0.06) ; not exceeding twelvemonths - Inventory duty. (See Probate duty. ) Land tax: The quota payable by each parish as fixed in the year 17i the amount redeemed) is raised by an equal pound rate. Leases : Lease or tack of any lands, tenements, etc, at a yearly rent ; Kot exceeding thirty-five vears: ■: - Not exceeding £5 ($24.33) ----- Exceeding £5 ($24.33) and not exceeding £10 (.t48.66) Exceeding £10 ($48.66) and not exceeding £15 ($72.99) Exceeding £15 ($72.99) and not exceeding £20 (ig97.33) ■ (le; American money. 1 10 10 7 6 10 2 20 25 3 '> o U 1 U 1) '_> U lu 2 lu 4 2 4 4 ^ 2 2 2 1 1 2 2 1 1 9 1 3 6 10 10 1 3 6 6 10 16 2 710 EEPOETS ON TAXATION. Inland revenue — Excise, stamps, and taxes — Continued. English money. Leases : Lease or tack of any lands, tenements, etc., at a yearly rent — Cont'd, Not exceeding thirty -five years. — Continued. Exceeding £ao ($97.33) and not exceeding £25 ($121.66) Exceeding £25 ($121.66) and not exceeding £50 ($243.32) Exceeding £50 ($243.32) and not exceeding £75 ($364.98) Exceeding £75 ($364.98) and not exceeding £100 ($486.65) Exceeding £100 ($486.65), for £50 ($243.32) or fractional part of £50 .. Between thirty-five years and one hundred : Not exceeding £5 ($24.33) Exceeding £5 ($24.33) and not exceeding £10 ($-18.60) Exceeding £10 ($48.66) aud not exceeding £15 (.$72.99) Exceeding £15 ($72.99) and not exceeding £20 ($07.33) Exceeding £20 ($97.33) and not exceeding £25 ($121.66) Exceeding £25 ($121.66) aud not exceeding £50 ($243.32) Exceeding £50 ($243.32) and not exceeding £75 (.$364.98) , Exceeding £75 ($364.98) and not exceeding £100 ($486.65) Exceeding £100 ($486.65), for £50 ($243.32) or fractional part of £50 .. Esceieding one hundied years: Not exceeding £5 ($24.33) Exceeding £5 ($24.33) and not exceeding SIO ($48.66) Exceeding £10 ($i8.66) aud not exceeding £15 ($72.99) Exceeding £15 ($72.99) and not exceeding £20 ($97.33) Exceeding £20 ($97.33) and not exceeding £25 ($121.66) Exceeding £25 ($121.66) and not exceeding £50 ($243.32) Exceeding £50 ($243.32) and not exceeding £75 ($364.98) Exceeding £75 ($364.98) and not exceeding £100 (,$486.65) Exceeding £100 ($486.65), for £50 ($243.32) or fractional part of £50 ., Agreement for lease not exceeding thirty-five years, saoie as actual Legacy and succession duties (also see Probate datr) : If the deceased died on or after June 1, 1881, every pecuniary leg- acy or residue, or share of residue, although not of the amount or value of £20 ($97.33), is chargeable with duty by the 44 Vict., cap. 12, sec. 42. (Except where the whole person.al estate does not exceed £300 ($1,459.95), and a stamp duty of 30s. ($7.29) has been paid on the affidavit. In such cases no legacy duty whatever is payable (44 Vict., c. 12, sec. 36). No succession duty is payable where the prin- cipal value of the whole succession does not amonnt to £100 ($486.65), or where the value of the individual succession as cal- culated by the act is less than £20 ($97.33) (16 and 17 Vict., o. 51, sec. 18). Eates of duties payable on legacies, annuities, residues and succes- sions : To children of the deceased, or their descendants, or to the father or mother, or other lineal ancestor of the deceased (see below), 1 per cent.; to brothers and sisters of the deceased or their descendants, 3 per cent. ; to brothers and sisters of the father or mother of the deceased, or their descendants 5 per cent. ; to brothers and sisters of the grandfather or grandmother of tlie deceased, or their descendants, 6 per cent. ; to any person in any other degree of collateral consanguinity, or to a stranger in blood to the deceased, 10 per cent. ; the husband or wife is not chargeable with duty, and the husband or wife of a relation is chargeable with duty at the lower rate. (In cases where the grant of probate or administration has been obtained on or after June 1, 1881, the duty at the rate of 1 per cent, is not payable upon legacies or residue or successions satis- fied out of, or consisting of, estate aud elfects according tn the value whereof stamp duty shall have been paid on the affidavit or inventory or account in conformity with the 44 Vict., c. 12. Lagacies, residues, and successions satisfied out of, or consisting of, estate and effects on which st.an,p duty is not payable, as, for example, foreign property and real estate, are still liable to the duty at the rate ot 1 per cent.) Penalties : Persons paying or receiving any legacy, residue, or share of residue liable to duty, without taking or signing the proper receipt for the same, are subject to a penalty of 10 per cent, on tlie amount or value of such legacy, residue, or share of residue. Persons not giving notice of a succession, or not deliv- ering an account, are subject to a penalty of 10 pe rcent. upon duty calculated at 1 per cent, for every montli ot delay. Letter of allottment of any share Letters patent, grant of, to any honor or dignity, viz; Duke £350 ($1,703.27); marquis, £300 ($1,459.95); earl, £250 ($1,216.62); viscount, £200 ($973.30) ; baron. £150 ($729.07) ; precedence, £100 ($486.65) ; baronet, £100 ($486.05) ; Conira d' Hire to elect an archbishop or bishop, £30 ($145.99) ; any other honor or dignity, £30 ($145.99). Change of surname or arms, in accordance with will, £50 ($243.32); upon vohiutary application, £10 (48.66). Male servants, annual license (Great Britain) : Every male servant Marriage license : Special, England and Ireland Mot special , , , £ «. d. 2 6 5 7 6 10 5 3 6 9 12 15 1 10 2 5 3 1 10 6 12 18 1 4 1 10 3 4 10 6 3 1 15 5 OIQ C ENGLAND. Inland revenue — Excise, stamps, and taxes — Contiuiied. 711 Medicines (patent), Great Britain only, not exceeding — U. ($0.24) 2ir. Qd. ($0.60) 4«. ($0.97) 108. ($2.43) 2i}B. ($4.86) , 30*. ($7.29) 50if. ($12.16) Exceeding 50s. ($1 2.16) Medicines (patent), dealers, etc., annual license (Great Britain) Mortgage bonds, etc.; Bonds and all other securities (foreigner otberwise, except colonial), when payable to bearer: ForeTery £10 ($48.66) and franctional part of £10 ,. Substituted securities for any of the above: For every ie20 ($97.33) and fractional part of £20 Mortgage bond, etc., of any other description, not exceeding : £10 ($48.66) 25 ($121.66) 50 ($243.32) , 100 ($4ti6.65) , 150 ($729.97) 200 250 300 Exceeding £300 ($1,459.95), for every £100 ($486.65) and fractional part of £100 Transfer, assignment, and reconveyance, etc., of for every £100 ($486.65) or fractional part thereof Occasional licenses, per day: Publicans' Peer retailers "Wine retailers Tobacco dealers Passenger vessels on board "which excisable liquors and tobacco are sold : License for a year one day Passport - Patent (letters) for inventions: {a) Up to sealing: On application for provisional protection On filing complete specification Or on filing complete specification with first application (6) Further before end of four years fiom date of patent : On certificate of renewal (c) Further before end of seven years, or in the case of patents granted after January 1, 1884, before the end of eight years from date of patent : On certificate of renewal Or in lieu of the fees of £50 ($243.32) and £100 ($486.65) following annual fees: Before the expiration of the — 4th year from the date of the patent 5th year from the date of the patent 6th year from the date of the pa ent r 7th year from the date of the patent 8th year from the date of the patent 9th year from the date of the patent 10th year from the date ot the patent llih year Irom the date of the patent 12th year Irom the date of the patent 13th year from the date of the patent - - • - Oiher small fees are also payable of such amount as may be from time to time prescribed by the board of trade with the sanctmn of the treasury. Pawnbrokers : Annual license, United Kingdom - -. ; Trading in plate without regard to weight, an additional Peddlers, police license Plate: Gold, per ounce Silver, per ounce : - ■ - - - -.' "'-, Dealers in gold and silver plate, annual license. United Kingriom : Above 2 pennyweights and under 2 ounces gold, or above 5 pennyweights and under 30 ounces silver, in one article Two ounces gold, or 30 ounces silver, or upwards _ Kefiners of gold or silver, annual license, United Kingdom Power of attorney, etc. : Receiving prize-money or wages ; - ■ -;^ VV " 'V " UA+ 'L.^-' ' For sale, transfer, or receipt of any of the Government funds not ex- ceeding £20 ($97.33) or dividends not exceeding £10 CH^-oo) pei annum If for one payment only.- ■ Englisli mouey. American money. & s U 1 2 3 10 1 6 d. 3 $0,03 .06 .12 .24 .48 .73 2.43 4.80 1.21 1 .24 6 .12 1 'J 3 3 8 3 9 3 (! .06 .16 .30 .60 .91 6 7 2 6 .60 6 .12 2 1 1 6 4 .60 .24 .24 .08 5 1 6 24.33 4.86 .12 1 3 U i 4.86 14.59 19.46 60 243.32 100 486. 65 10 10 10 10 15 15 20 20 I'O 20 48.66 48.66 48.66 48.66 72.99 72.99 97.33 97.33 97.33 97.33 7 10 5 15 5 36.49 27.98 1.21 17 1 6 4.13 .36 2 5 15 5 15 11.19 27.98 27.98 1 .24 5 1 1.21 .24 712 REPORTS ON TAXATION. Inland revenue — Excise, stamps, and taxes — Continued. English money. American money. -Continued. Power of attorney, etc. In otlier casea Proxy to vote at a meeting , Of any otiier Isind Prolate and account duty. [Also gee " Legacy and succession duty.") On affidavit of value for probate or letters of administration and inventory (unless a former inventory exhibited before June 1, 1881) of estate in respect of which probate of letters of ad- ministration granted or inventory exhibited on and after June 1, 1881, except as hereafter mentioned, and on an account to be delivered to coniraiasionersof inlanri revenue under 44 Vict., c. 12, 8. 38, on death of person dying on or after June, 1881, of (1) do- nationes mortis cauail, (2) beneficial interest in property accru- ing by survivorship, (3) property passing under voluntary set- tlement, interest for life or absolute power of revocation reserved to settler: Whrre value exceeds £100 (.'P486.ti5>, and not iB.500 ($2.4.33.25), £1 ($4.86), for each £50 ($243.32) or fraction of £50 ($243.32); where value exceeds £500 ($2,433.25) and not £1,000 ($4,866.50), £1 5s. ($6.01), for each £50 ($243.32) or fraction of £.50 ($243.32); where value exceeds £1,000 ($4,866.50), £3 ($14.59) for each £100 ($486.65) or fraction of £100 ($486.65). The value of estate of person dying domiciled in United Kingdom may be ascertained by deduction of debts due to persons resident in United Kingdom, and funeral expenses. The legacy and succession duties at 1 per cent, are not payable on assets covered by the stamp on the affidavit inventory or account. On affidavit of value or inventory where gross value of personal estate in United Kingdom or abroad of per.son dying on or alter June 1. 1881, does not exceed £300 ($1,459.95). A fixed duty of 30s. ($7.29), which satisfies legacy and succession duties on property to which the affidavit or inventory relates. The stamp duty of 5s. ($1.21) per cent, paid on deed of voluntary settlement of xiroperty included in an account will be returned, on production of deed, to person delivering the account. Heavy penalties are imposed for not paying probate and account duties within prescribed time. Bxejnpiio'jU. — Affidavit or inventory of estate under £100 ($486.65) of person dying after ,Tuly 25, 1864, and of estate of any common seaman, marine, or soldier slain or dying in Her Majesty's service. For probate and inventory duty payable on gr.mts of prob.ate and letters of administration, and on inventories before June 1, 1881 (see 55 Geo. Ill, c. 184, schedule, part 3, and 43 Vict., c. 14, schedule). Property and income tax. 1885-86. In the pound sterling — Schedule A, lands, tenements, etc Schedule B— Occupiers of farms, etc Scotland and Ireland Nurseries and market gardens Compositions for tithes Schedule C, D, and E, income If under £150 ($729.91), exempt; if under £400 ($1,946.60), the tax is not chargeable upon the first £120 ($583.98). Publicans, annual licenses, United Kingdom, for spirits, beer, and wine, to be consumed on the premises : If annual value is under £10 ($)8.66) If value of — £10 ($48.66) .and under £15 £15 ($72.99) and under £20 ($97,33) and under £25 ($121.66) ani under £30 ($145.99) and under fi-JO ($194.66) and under £.50 ($243.32) and under £100 ($t86.65) and under £200 ($973.30) and under £300 ($1,469.95) $1,459.95) and under £400 ($1,946.60) £400 ($1,946.60) and under £500 ($2,433.25) £500 ($2,433.25) and under £600 ($2,919.90) £600 ($2,919.90) and under £700 ($3,406.55) £700 ($3,406.65) and upwards ■ Hotels and theaters of the value of £50 ($243.32) and upw.ards pay no higher amount of license duty than £20 ($97.33), and restaurant keepers pay no higher amount than £30 ($146.99) under certain conditions. Publicans keeping their premises closed the whole of Sunday, or closing one hour "sooner .than otherwise required on week-days, pay only six-sevenths of the above amounts ; and keepingclosed on Sunday, and also closing one hour earlier each day through the week, only five-sevenths of the above amounts. All retailers of intoxicating liquois selling for consumption on the premises are similarly entitled. (See, also, Beer dealers.) £20 £25 £30 £40 £50 £100 £200 £300 ( ($72.99) . ($97.33)- ($121.66). ($145.99). ($194.66)- ($243.32). ($486.65). ($973.30). £ s. d. 10 1 10 8 4 3 8 2? 8 4 10 6 8 11 14 17 20 2;-. 30 35 40 45 50 55 60 ENGLAND. Inland revenue — Excise, stamps, and taxes — Continued. 713 Railways, on passenger receipts per £100 ($486.66) in Great Britain, but sub- ject to an exemption in respect of fares not exceeding tbe rate of 1 penny a mile: Urban district traffic Other traffic Rcceipt,s, £2 ($0.73) or upwards EelVeshment bouses, annual license, England and Ireland: Under £30 ($145.9!)) rent £30 ($145.98) or above Scrip certificate or scrip Settlements: Any deed whereby any definite sum or sliare settled upon, or for the benefit of a person, for every £100 ($486.65) or part of £100 ($486.65) '. Share warrant to bearer, three times the amount of transfer or conveyance duty. Spirits- Home-made, per proof gallon Imported from Channel Islands, per proof gallon Distillers or rectifiers, annual. United Kingdom Dealers, not retailers, annual. United Kingdom Dealers, to sell in bottles, additional Dealers, or to sell foreign liquors only in bottles Metlivlated, makers of, annual. United Kingdom Methylated, retailers of, annual. United Kingdom, Retailers of. (.See Publicans.) Grocers, Scotland, annual license (including sale of beer), not to be con- . sumed on the premises : Premises under value of £10 ($48.66) Of value of — £10 ($48.66) and under £20 f$97.33) £20 ($97.33) and under £25 ($121.66) £25 ($121.66) and under £30 ($145.99) £30 ($145.99) and under £40 ($194.66) £40 ($194.66) and under £50 ($243.32) £50 ($243.32) and upwards Grocers, Ireland, annual license, selling spirits not to be consumed on the premises: Ifrated under £25 ($121.66) If rated at — £25 ($121.66) and under £30 ($145.99) £30 ($145.99) and under £40 ($104.66) £40 ($194.66) and under £50 ($243.32) £50 ($243.32) and upwards Stills, annual license. United Kingdora,cliemists and others, keeping or using. Sweets — Dealers in, annual license, United Kingdom Retailers of, animal license. United Kingdom Tobacco and snulf, dealers in, annual license. United Kingdom Tobacco and snuff manufacturers, annual license. United Kingdom: Of quantity not exceeding 20, OOO pounds - Exceeding^ — 20, 000 pounds and not exceeding 40, OOO pounds 40, 000 pounds and not exceeding 60, OOO pounds 60, 000 pounds and not exceeding 80, 000 pounds 80, 000 pounds and not exceeding 100,000 pounds 100, 000 pounds ; Beginners to pay £5 5s. ($25.54) and a surcharge on renewal. Transfer of stock. (&e (jonveyanoe.) Vinegar-makers, annual license. United Kingdom Toting paper Warrant for goods ^'-iy-"'Z ■ Wme merchants (for wineonlv), annual license. United Kingdom -..-. Wine retailers, anniial license, selling for consumption on the premises. United Kingdom -, i"""'i; - " '" ■Wine retailers (or grocers) selling wine not to be consumed on the premises, England and Ireland, annual license - Wine retailers (grocers), Scotland, annual license DEEDS STAMPED AFTEK EXECUTION. fiegulations under which the commissioners of inhand revenue as a general rule allow deeds and other instruments to be stampec, atter execu- tion: .. , 1 * 1 "Without penalty in payment of the duty only: , „j , Agreements umle. hand only, liable to the duty of 6d Appraise- ments Attested copies within fourteen days of first execution. Life policies, within one month of first execution. English American mone^ money £ s. d. 2 $9.73 5 24. 33 1 .02 10 6 2.55 1 1 5.10 1 .02 5 1.21 10 2.43 10 4 2.61 10 10 51. at 10 10 61. OE 3 3 () 15.32 2 2 10.2] 10 10 61. OS 10 2.43 4 4 20.43 5 .■) 25.54 9 9 45. 9f 10 10 61. OE 11 11 56. 2t 12 12 61.31 13 13 66.42 9 18 5i 48.27 11 6 53.65 12 2 Oi 68. 88 13 4 7 64.37 14 6 Ti 69.75 10 2.43 5 5 25.54 1 5 6.07 5 3 1.27 5 5 25.64 10 10 51.09 15 15 76.64 21 102. 19 26 5 127. 73 31 10 153. 2D 6 5 n 25.54 1 .02 3 .06 10 10 61.09 3 10 17.02 2 10 12.16 2 4 1 10.72 714 REPORTS ON TAXATION. Inland revenue — Excise^ stamps, and taxes — Continued. Articles. English mouey. American money. DEEDS STAMPED AFTER EXECUTION. EegnlatiODs tinder which the commissioners of inland revenue as a general, rule allow deeds and other instruments to be stamped after execu tion. "Without penalty in poyment of the duty only. Deeds and instraments not otherwise excepted, within two months of first execution. Where the deed or instrument has heen wholly executed abroad, the period within which it may be stamped begins to reckon from the date of its arrival in this country. "With penalty in addition to payment of the duty : Articles of clerkship. Bills of exchange written upon stamps of sufficient amount but of improper denomination. Charter-parties. Receipts. "Within certain limits of time. (Tide Table of Penalties.) Contract notes. Delivery orders. Letters of allotment. Scrip certificates. Share warrants. Warrants for goods. Instruments which can not be leo;ally stamped after execution : Bills of exchange (except as before mentioned). Bills of lading. Marine policies executed in the TTnited Kingdom. Proxies. Voting papers. Table of penalties usually enforced : Agreements under hand only. Attested copies or extracts: After the expiration of fourteen days from their first execution Charter-parties, within seven days from their first execution Charter-parties, after the expiration of seven days, but within one month Eeceipts, within fourteen days after they have been given Keceipts, after fourteen days, bat within one month (beyond this period receipts can not be stamped under any conditions Other instruments not enumerated, excepting tlioso which can not be legally stamped after execution All applications for theremiasion, mitigation, or return of penalties must be made by memoiial addressed to the commissioners of in- land revenue, Somerset House, and supported by statutory dec- laration, such declaration being exempt from stamp duty. £ 8. d. 10 4 6 10 5 10 10 48.66 24.33 48.66 48.66 [Tnclosure 2.1 The customs tariff. Articles. English Amorioan money. money. £ e. d. 1 6 I) $6.32 1 10 6 7.41 G C 1.58 3 9 .91 13 ,1 3.22 ') .04 '2 .04 1 n .30 3 II .73 1 .03 2 .48 2 .04 14 n 3.40 ?, .04 1 4 5.83 1 5 6.07 13 n 3.16 7 1.70 10 4 2.61 17 n 4.13 1 1) .36 3 .06 Beer, mum, and spruce: The original specific gravity not exceeding 1. 215 degrees per barrel. Exceeding 1. 215 degrees per barrel. Other, the worts of which were before fermentation of a specific gravity of ] . 057 degrees - And so in proportion for any difference in gravity. Cards (playing).. per doz, packs. Chicory: Kaw or kiln-dried cwt . Roasted or ground lb. And coffee mixed lb. Chloral hydrate lb. Chloroform lb. Cocoa lb. Cocoa husks and shells cwt. Cocoa or chocolate, ground, prepared, or in any way manufactured lb. Coffee : Itaw cwt. Kiln-dried, roasted, or ground Ib- ColIodioD gal. Ether, sulphuric !^!!." gal. Ethyl, iodide of ] gal . Fruit (almonds and dates free), dried owt. Naphtha, ormethylic alcohol (pure) gal. Plate: , Gold oz. Silver oz. Baop, transparent, in the manufacture of which spirit has been used lb. l^>i^MM ENGLAND. The customs teri^— Continued. 715 Articles. Spirits : ' Brandy, Geneva, mm, and nnennmerated eal Perfumed spirits, and cologne water Sal Sweetened, nnennmerated in bottle, not tested'for 'ascertaining the gal Tea.. strength . -lb. Tobacco: Unmanufactared 2b Containing less than 10 per cent, of moisture U," Cigars " ](, " Cavendish, or negro-head ]^" C"". endish, manufactured in bond iii Snuff. Snuff, not more than 13 pounds (in 100 pounds) moisture . Other manufactured Varnish (containing spirit). Tor rates of duty, see SpiVitsi Wine: ^ .lb.. lb.. Ib.- Not exceeding 30 degrees proof spirit gal Exceeding 30 degrees, but not exceeding 42 degrees gal!! For each additional degree of strength beyond 42 degrees gal Warehoused goods, except tobacco, 6s. ($1. 21) per cent, additional. ( Tobacco, 2s. 6d. ($0. 60) per cent, additional. CUSTOMS DRAWBACKS. Coffee (roasted) shipped as stores ner cTvt Plate: ^ Gold, wrought in "United Kingdom oz . . Silver, wrought in United Kingdom oz.. Tobacco, manufactured in United Kingdom (except cavendish or negro, head manufactured in bond), exported or deposited in warehouse lor ships' stores lb.. Snuff of British manufacture !.!.!. lb . All articles upon which duties are levied bv the board of inland revenue are charged with similar duties if imported from abroad. English money. S. s. d. 10 4 16 6 10 2 6 3 14 17 u 1 American money, $2.51 4.01 3.40 .12 .85 .03 1.33 ].17 1.05 .99 1.17 1.05 .24 .00 .00 3.40 4.13 .36 .87 .87 TAXATION— BY PROP. EOGBES. (Tnclosure 3.] (1) The amotint of local taxation whicli English people pay is enormous. The manner in which it is raised is scandalous. The way in which it is spent is uncon- stitutional, if indeed taxation and representation should go together. The objects on which it is jxpended are constantly the property of those who do not contribute to it, belong to people who see their estates greatly increased in value by the outlay of others. The imposition is anomalous, the administration even more anomalous. The legislature, overburdened, ignorant, ever wasting its time in party struggles or in debating that which may furnish matter for party quarrels, allows the most important domestic interests to be determined by departments, and suifers itself to be the agent, often the unconscious agent, by « hich the whole mass of the community is plundered in the interests of a narrow, organized, and aggressive class — the land-owners. If a change is needed, a reform is urgent, a duty is to be performed, the suggestion is instantly made to put it on the rates, and generally with success. This means casting it on the occupier, whether justly or unjustly. On the other hand, the land-owners have contrived to transfer to the income-tax payers a very large part of that which more immediately used to fall on them, and to evade a just contribution which they, in their capacity of occupiers, ought to bear. There is no part of our social system which proves more conclusively how tbe industry and fortunes of the country are in the grip of an aristocratical faction than the English system of local taxation does. I hope in a series of papers to make this plain. In England nearly all local taxation is imposed on occupancy. In Scotland and Ireland it is divided between owner and occupier. In Scotland it was formerly almost entirely defrayed by owners, till these contrived by the action of Parliament to force the occupiers into contributing a moiety. Now it is important to know how this peculiarity in the English system arose, because it explains how Euglishmeu have become familiar with an injustice, which, had it come suddenly upon them, would have aroused the most indiguant, effective, and energetic remonstrance Originally the first object for which local taxation was imposed was the repair of roads and bridges. Up to little more than a century ago English roads were either 716 REPORTS ON TAXATION. the great highways which were constructed mainly for military purposes dnringthe Roman occupation, or hy-ways which the convenience of a locality had connected with these highways. There are very few English villages of ancient date wlbich were not planted on or near these ancient highways. Now it was any one's interest to keep these highways in repair. Landed property was exceedingly scattered, and piost owners were also occupiers. It was a feature in early English society that every man, from the King to the peasant, was the permanent occupier and oultiyator of land. The great owners were more interested iu keeping up commnnications between their properties than the peasant owners were. This was particularly the case with the monasteries, which were, among other offices, the great builders of bridges. Communication between place and place by carts and wagons was easier in the days of the first Edwards than it was in the days of the first Georges. In course of time roads were mended by statute labor, and later still a county rate was imposed on occupiers by the descendants or substitutes of those who gladly undertook the charges themselves in old times. I have read many thousands of ancient farm ac- counts, iu which income and expenditure is accounted for to halves of farthings. If modern farmers had continued the fashions of their remote ancestors, fewer of them would have been ruined within the last dozen years. But in all these accounts I have never come across a single instance of a rate levied for the repair of roads. And yet I am sure that the roads were good, for I know how much time it took to traverse known distances with heavy goods both in summer and winter. Another ancient rate, first imposed uniformly, was that for the relief of the poor. This, as everybody knows, was made compulsory in the latter end of Elizabeth's reign. The English Government at that time knew that discontent in England was dangerous, especially when it could be traced to government or bad custom. The rebellions of Tyler and Cade and Kett had shaken the country to its foundations. The Queen and her counsellors determined to reduce to a system what had been tried with very imperfect success for two generations already. But it was still an experi- ment. The poor law was only enacted from Parliament to Parliament. It was first made perpetual at the restoration. The poor rate was levied on the occupier from the beginning. But occupancy, three centuries ago, was very different from occupancy now. A great percentage of occupying farmers were freeholders. Of those who cultivated the lands of others, the vast majority were beneficial lessees, whose rents were practically fixed, and whose tenancies were seciire as long as they paid their dues. To make these persons pay for the maintenance of the destitute was to make them pay for the support of those who, under wages fised by the quarter sessions, had worn themselves out in tho direct service of their employers. What could be fairer than to make those who had used the laborer's skill and strength for their own advantage, and had not paid him enough to make provision against old age, maintain the destitute poor of their own creation? This obligation was tho greater when the poor law was made perpetual, and the new law of parochial settlement made the peasant laborer what Cobden called him, " a serf without land." It cannot be by accident that this severe law, restraining the laborer from bettering his condition by migratiim, was simultaneous with the first law directed against the free importation of foreign corn. This journal has often commented on the injustice of Parliament in relieving land-owners from their liabilities to public charges at the expense of those who consumed excisable articles, one of the be.st known among the iniquities of the restoration. Bub if any one were to study the financial expedients of Cbarles the Second's long Parliament, he would find abundant evidence of the conspiracy which dealers in land then began against dealers in labor and capital. It is not my object here to dwell on it. But its effects survive to the present day, and bring about present disasters. Now let us survey what local taxation was when the principle had been established that the occupier should be made responsible for it. The persons who paid the tax . were the same persons as had employed the labor, and who, having presumably en- joyed the advantages of the workman's strength and health, were, as the law aflSrujed, under the obligation of maintaining him in weakness and sickness. To this practi- cal uniformity there was only an apparent exception. The tithe-owner was made to pay on the value of his receipts. Now, for this policy there were two reasons. In the first place, there was an ancient and universal impression that the income of those who lived on religious endowments was chargeable with the relief of destitution. It was alleged, perhaps with reason, that there were historical grounds for this position; it was generally believed that there were moral grounds for it. The other reason was that they whose income was emphatically the produce of labor, to the sustenance or wages of which the tithe-owner contributed nothing, should pay an aid to those on the effloienoy of whose labor their own income depended. The theory of Elizabeth's poor law was that those who profited by labor should help labor in its adversities. In course of time what was occupancy with ownership became occupancy withont ownership, and the charge of the poor rate remained on the occupier. As time went ENGLAND. 717 further on, and tlie habits of society changed, many of those who did not employ labor at all with an eye to their own prolit, became owners or occupiers, and were charged with that which was originally to be paid by those who made profit out of labor. In this way — for the poor rate was, and to some extent the new poor law is, an insurance on labor — they who made profit from labor were assisted in the subven- tion which the poor rate gives, now very grudgingly to labor, by those who made no profit by labor. I do not mention this to find fault, for the relief of the deserving and destitute poor is a universal duty on those who have the means for aiding it, but to merely point out what is the economical basis of a rate levied on all occupiers for the support of sick or destitute persons. Now that the rent of land, and the tithe and charge of land, were intended to sup- , port destitution is proved by the argument which was always brought forward on behalf of inclosures by act of Parliament. Between 1706 and 1854 fully nine millions of acres of land were inclosed by this means, and thereby were turned from a more or less common use to a private and fenced use. The wrong which was done to the par- ish laborers was continually commented on when the proceedings were taken. Of course, if justice had been done, the rights of the laborers should have beeu secured by reserving a rent equivalent to the interests of the laborers, and employed for their benefit under some well-devised scheme, their share increasiug with the increased value of the land. With such a reservation, inclosures would have been a manifest public benefit. But the answer always made was that tbe relief of the poor was a first charge on the land, and that therefore the profits which were taken away from labor were secured to them in another shape. Of coarse such an equity was never aimed at. The peasant was deprived of his common rights, and his wages were stereo- typed by the quarter sessions. The defense of the old corn laws was constantly that, as a laborer was maintained out of the rates, it was of little consequence to him what the price of corn was. The new poor law was very severe and very necessary. But it should have fol- lowed, not preceded, the abolition of the corn laws. (2) I do not think, on reflection, that I shall be able to make the history of local taxation clear, unless I say a little about the process by which a general system of oocupying ownership, which widely prevailed when local taxation was first imposed for one particular purpose, has been changed into a system under which the vast mass of Englishmen are tenants at will to a comparatively small number of land-owners. For it is well known that what is called the English Doomsday, of the other day, is entirely delusive, since one land-owner may be, and is, counted over and over again, so that ten, twenty, thirty, or. even forty apparent owners are, in each of the cases, one person only. It is one of the common sophistries of those who defend the existing system to say that their estates have come into the hands of their present owners by reason of the fact that former owners have thought it or found it expedient to sell them. Now, in the first place, this is not true. Many of the largest properties in this country were founded out of the great scramble for national estates after the dissolution of the mon- asteries. Next, as I have said previously, 9,000,000 of acres have been inclosed by act of Parliament. If they had belonged to those who inclosed them, why did they who got them go to the expense of private acts of Parliament for the purpose of hold- ing their own? But, apart from these considerations, it may be safely taken for granted that what has happened to the families who have voluntarily sold their estates has also hap- pened to those families who have bought these estates, and, under the forms of a set- tlement, have been debarred from selling them. There are few, very few, ancient famiUes which have not been, over and over again, in far greater straits than those smaller freeholders who have turned their land into money. Nay, even the protec- tion of a settlement has often beeu ineffectual in the case of spendthrifts and prodi- gals; and till recently hardly a session of Parliament passed in which some private bill, always originated in the Lords, has not been framed, under which the legislature has interposed to protect a family from the misconduct, the misfortune, or the vices of its existing head. The Restoration was essentially the work of the great land-owners. During the civil war they had denounced the excise as an intolerable hardship and wrong. But when they got power into their hands they did what a certain school of politicians con- stantly does, they enacted that which they had previously denounced. There is noth- ing in financial history which is baser than the conduct of the land-owners after the Eestoration, when they emancipated their own estates from ancient dues at the ex- pense of the general public and by the imposition of the hereditary excise, while they kept for themselves exactly the same dues, which were, and still are, payable by their copyhold tenants. It is no marvel that they have, from that time forward, put every burden they could devise on the occupier, have used successfully their power in Par- liament to pillage the general tax-payer, and are exacting half the income tax for the benefit of the great proprietors. 718 REPORTS ON TAXATION. The land-owners of the Restoration, being all-povrerful in Parliament, carried three measures, all of the greatest significance. These, together with the new system of completely tying up their estates and rendering them incapable of alienation, are the cause of much mischief even now. The first was to make the poor law perpetual, and to enact the law of parochial settlement, under which the laborer became a serf without land, and was disabled from bettering h:s condition. The next was the en- actment for the first time of a prohibitive corn law, the rate at which foreign corn could be introduced, with a nominal duty, being higher than any recorded experience, except for a month or so in years of positive famine, and then but rarely. They thus strove at once to secure low rates of wages and high rates of food. The third device was far more subtle, and one the purpose of which has only re- cently been aisoovered. Indeed, I believe that I ■n as the first to mention it publicly, as I did in the House of Commons in my speech on local taxation. Into a measure of undoubted merit, and in some particulars of absolute necessity — the statue of frauds and perjuries — a clause was inscribed which had the effect of transferring, where a man was a freeholder, at a low or fee farm rent, and had no written evidence whereby to prove his title, the estate of such a person to the recipient of the small rent. I have often puzzled myself with trying to discover what the process was by which the numerous freeholders who were talked so much about in the first half of the seven- teenth century became so scanty in the last half of the same epoch. This, however, was not the only result. The freeholders by custom, or by any other than a written conveyance, lost their votes with their freeholds, and so the land-owners began to get a firmer political grip on the counties and to settle the towns having representation, a majority of them being mere villages, along with the rest of their patrimonial estates. From the Restoration to the first reform bill the great land-owners were absolutely dominant in the constitution, and plundered the tax-payers at their pleasure. We have some relics of the pension list still left, but these are the veriest fragments of a gigantic system of pillage. The doctrine that men may have a right in a perpetual wrong was formulated, and had the name given it of a "vested interest." Of course all this while the number of occupiers was growing and the number of owners was decreasing. Hence a system, the inherent injustice of which is obvious, became customary, and men learned to bear that patiently which they would have resented bitterly, and in all likelihood very eiHcieutly, if it had come upon them of a sudden. And yet during this time the poor were getting yearly worse off. I have told their story in my "Six Centuries of Labor and Wages." And the only other existing charge of importance, the maintenance of roads, was scandalously neglected. If one reads the novels written in the middle of the eighteenth century one can find ont how bad internal communication was. Meanwhile a savage code of laws slew the offenders which other Jaws had made by the dozen at a time. The gallows in England claimed yearly pretty well as many victims as the wars did ; wars which were, by the way, waged, during the greater part of the same century, on behalf of the mercantile interest and at the expense of the general public. During the last quarter of the eighteenth century an d the first quarter of the nine- teenth century the condition of the English workman was appalling. The wages of all workmen were fixed by the magistrates at quarter sessions, and at low enough rates to be sure. The sums conceded by those magistrates, and perhaps paid by the farmers and employers — for both grumbled constantly at the generosity of the magis- trates — were entirely insufficient to obtain the barest means of existence. The foreign market for the supply of food had been deliberately and eiiectually destroyed, and the people were starving. So the Berkshire magistrates began a system which grad- ually spread over England and was legalized, that of paying wages out of the rates when the magnitude of a workman's family and the insufficiency of his wages ren- dered it impossible that he should live. This was called the allowance system. Now, if those who employed the laborer and they only had paid the rate, the system would have been foolish enough, but would not have been unfair. But this was not the practice. The rate, as now, was levied on all occupiers, whether they employed labor or not; and thus not only the tithe-owner, who might reasonably be called to pay out of that, the produce of which was entirely due to the labor of those who were relieved, but those who did not employ labor at all, or employed it without wearing it out on insufficient wages, were called upon out of their incomes to make up the wages that the farmer could not pay. Even at the present day the wages of female domestic servants are constantly made the means by which the peasantry can subsist, or rather withont which they could not. It may be doubted whether the old system, devised in the first. instance by the worst of selfishness and wrong-doing, would have come to an end, for abuses have s, wonderful vitality, since they always have cunning and interested advocates, bad it not been that at last the maintenance of the destitute industrious poor began to trench on the rent of land. In one or two parishes it absorbed the whole rent. The land-owners began to be frightened, and invented the new poor law. But they starved the people for nine years after they established the work-house test. ENGLAND. 719 The evil was aggravated by tbe system of making every parish maintain its own poor. Hence, when a man owned the whole of a parish, he pulled down all the cot- tages and drove the laborers into the neighboring parishes. In this way he got his labor cheap, and put the cost of keeping it, when it was sick or disabled, on other people. This system of close and open parishes, as they were respectively called, prevailed long after the new poor law, and I well remember how people, who were otherwise just, not only defended the system, but were furious with those who criti- cised it. I have thought it expedient to give a short sketch of the events which occurred during the last century and the earlier part of the present, because it is by the system which was thus gradually imposed on the occupieitbattheappalling and unjust mass of the local taxation which we now endure was developed. (3) The debts on account of local taxation in England and Wales, according to the latest returns on the subject, amount to £159,000,000. Nearly the whole of this has been raised on the terminable system, j. e., the debt is being cleared off by annual in- stallments, principal and interest together. Most of this debt is for necessary but unproductive objects ; for the cases in which those who inhabit the area of local tax- ation are purchasing the capital of gas and water works by this process are compara- tively few. In many cases the obligation imposed on the locality, however necessary it may be to impose the obligation, comes in the form of departmental legislation. Englishmen are governed by departments to an extent of which they have no concep- tion. Every year numbers of laws are passed which affect the fortunes, the liberties, and the industry of localities under the form of provisional orders, issued from the public offices and laid on the table of the house. In theory they may be debated, in practice they never are. The House of Commons is simply unable to perform any of the business it undertakes, and it never will be able until a vast amount of the busi- ness it pretends to perform is transferred, under adequate safeguards, to local parlia-' ments, that is, till the principles of home rule are accepted throughout the United' Kingdom. Now, in England and Wales the whole of the local taxation, the annual charge on local liabilities, such as poor rate, highway rate, the liability to which is annually recurrent, and the whole charge for permanent improvements, as the laying out of new streets in old towns and sanitary systems of drainage, the cost of which is enor- mous and could not be met out of annual taxes, but must be met by a loan, which Parliament has all but invariably allowed to be negotiated on the terminable system, is paid by the occupier only. In Ireland it is divided between owner and occupier, and the occupier may deduct the charge from his rent. In Scotland it was originally paid by the owner only, but the Scotch land-owners have contrived to put a moiety on the Scotch occupiers. Now, though the expenditure of the £159,000,000 is, as I have said, generally unprpductive, that is, yields no revenue, it is necessary; that is, the land would yield no revenue to the owner unless the outlay were incurred. A plot of land in the best part of a great city would be worth no more than a similar area in a desert if it had no road leading to it. It could not be safely inhabited if it was not properly drained or if it had no water supply. These fundamental conditions of val ue are supplied at the cost of the occupier. The English occupiers iu town and country, oat of their industry or their savings, are en- gaged in improving the ground landlord's property, and not only bestowing on such a person all the outlay theyimake, but, as time goes on, they are regularly paying a rent on the improvement which their taxes have effected. The rate-payers of Liver- pool or Manchester have each laid out, say, a couple of millions in an effective system of drainage. These four millions are as effective an improvement to the value of the ground landlord's property as they would have been if he had spent them himself, instead of employing the force of law to extort them from the occupier's pocket. The Irish farmer justly complains that he is taxed on his own improvements. So is the English occupier, especially in towns, and he bears it with a patience which argues ignorance if it does not stupidity. The demand of occupiers gives the initial value to building sites. This demand inay raise land from a value of £30 an acre to a value of £30,000 an acre. I find no fault with a scarcity price ; it merely illustrates an inevitable social law. I see no reason why one should take away the accrued value of a ground rent any more than I see any reason in levying an exceptional tax on rare business or professional ability. The possessor of any fertility, whether it is natural or spontaneous, or induced by causes to which the owner has contributed nothing, seems to me to have as full a right to his property as another is in whose case the fertility is acquired by the pos- sessor's own genius or labor, as is the case with a patentee, an iron-owner, an indus- trious man of business, a professional lawyer or physician who has gamed a deserved I do not however, think that the owner of land on which houses are built ought to be able 'to employ his powers to steal, under the forms of law, the acquired fertility Of another For example, I have often had complaints made to me when I was a 720 EEPOETS ON TAXATION. metropolitan member of the way in wliioh the agents of a great landlord rob a tenant in retail trade of his fertility — in this case his good will. I have been told that it is conjmon in London, when a man has established a local business by his intelligence and integrity, for hla landlord, at the end of his term, to demand a rent for renewal sometimes a fine, which would swallow up the whole of his good will, and to extort it by a threat that he will turn the tenant out, advertise the shop and the business, and even suggest that there would be no difficulty in inducing the new tenant to trade under the old name. This kind of practice, however dignified and noble the person who profits by it, is to my mind mean, ignoble, and dishonest, and ought to be put a stop to in the interests ot' property, and, what is more, in the interests of common justice, by the legislature. But the great English land-owners are striving, by every means in their power, to make the English people socialists. Nor again do I think that the ground landlord ought to be able to exact from the occupier the cost of that outlay which is essential in order that the' land should possess any value at all, or, in other words, possess any fertility, let alone excep- tional fertility. And when I say this, and illustrate this, I am finding fault with' the law, not with the person who profits by the law. I aver that the man who profits by the outlay ought to make the outlay, and ought not to be able to wriggle out of making it by any trick, or sleight, or bargain, or contract. Even lawyers admit that some contracts are contrary to public policy, and should not be enforced. It is to be regretted that the area of impolitic contracts (I mean impolitic in the view of the public interest) has not been enlarged. Three conditions are essential towards making a site habitablfe. It must have roads, it must have drainage, it must have pure water. We are at last beginning to see that in some of these conditions the general as well as the individual interest is concerned, and that if Dives is to enjoy his wealth the health of Lazarus has to be considered. Now to niy mind the supply and the maintenance of these conditions ought to be imposed on the owner of the soil. If the inhabitants of the most vain- able and densely peopled localities migrate, the land sinks to agricultural or even to prairie value. If they remain, the land rises to scarcity value, and the owner ought to find those charges which prevent the scarcity value from being identical with a plague pest. Let me illustrate my case. Before the dissolution of the monasteries, but when that project was in the air, the founder of the bouse of Russell induced the King, with whom he was a favorite, to squeeze out of the Abbey of Westminster their home farm and convent gardens, which lay on the north side of the Strand. The whole estate, I believe some 300 acres, was let at about £40 a year, for I have seen a lease of it in the reign of Elizabeth. How many thousands it now returns in rent I do not know. Nor do I care, for, as I have said, I have no quarrel with those who en- joy the natural fertility of an improved building site. I do not see that I have any right to it, either as a private individual or as a member of the English nation, any •more than I have a right to a bit of the Bank of England, unless I obtained it by honest purchase. What I do find fault with is that the inhabitants of London and other large towns, being rate-payers, are called upon, since rates were imposed for local pur- poses, to keep up, at their expense, the letting value of this property for purposes of occupation. The London rate-payers have drained the estate ; they have made atid kept up the roads ; and to this expense successive Dukes of Bedford, unless they have been occupiers of some part of the estate, as I believe they have not been for nearly two centuries, haVe contributed nothing, for the first Duke of Bedford, in the days of Queen Anne, was the last head of that fortunate house who lived on the property. There are of course rates which the occupiers ought to pay. They ought to pay for police, for light in the public streets (though I do not think the existing genera- tion ought to purchase for posterity tbe fee simple of gas or similar works), for the maintenance of criminals, for the relief of destitution, though one speaks more doubtfully as to the last, and for the free education of the young, for I suppose we must despair of receiving those ancient endowments which were given for the poor and have been appropriated by the rich. And the reason is obvious. The protec- tion of society against violence, and the adequate lighting of the streets, which is only another form of police, are in the interest of all, but more of those who live by labor than of those who live on accumulated property. They should pay, and pay directly, feelingly, the cost of crime; for neither society at large nor individuals ought to be allowed to be insensible to the dishonor which crime brings on them and on society and of the danger which its growth portends. It is more difficult to determine what should be the occupier's duty in the relief of, destitution, and for a reason which has been given earlier in these articles. But about the last of these obligations on the occupier, that of popular, public, efficient education, the duty is manifest. Some educated children abuse the gift, no doubt. But _tl\e vast majority do not. Now whom does the education profit ? Not those who receive it, as earners of wages, for wages are regulated by demand. It is society mJ,Ad^ ENGLAND. 721 wMcli gets the advantage, and society at large. The Americans are iierfectly right and economically sound in making the cost of free education the first charge on local, i. e., State taxa.tion. (4) It is a commoa practice with those who defend the present system of local taxation in England aud Wales, under which the whole burden is put in the first in- stance on the occupier, and an increasingly large amount of what should be paid from theispontaneous yield of the soil (i. «., the rent which the laud-owner receives without contributing anything whatever to its productiveness) is transferred to the ordinary tax-payer, to defend the injustice, by ingenious suggestions, which impose on such persons as have never studied the real incidence of taxation. Aud when we reflect that a mau who contrives to better his income by the loss of his neighbor's not only gets a great advantage but the reputation of cleverness or statesmanship, by outwitting those whom he plunders, the temptation to defend existing i)ractice by any sophistry which can appear plausible is so strong as to be almost irresistible. And if the critic foil the disputant, it is obvious that the latter can always charge the man who wishes to prevent the further continuance of legal plunder with indif- ference to the rights oi' property and a contempt for vested interests and institutions. One of the commonest pleas for wrong-doing is that it is the duty of all well- meaning persons to support national objects. Hence it is argued that the public at large should support highways, that personal proj)erty should be taxed for local out- lay, and the like. But though it is no doubt expedient that roads should be good, it is far more to the interest of the man who sends produce to market and carries manure to his fields to have the road good than it is to the mau who buys the prod- uce and cultivates no land. A moment's reflection will show how much more neces- sary a good road is to a man who has £1,000 worth of agricultural prqduce to dispose of than it is to a man who wants to transmit £1,000 to his banker. But if we are to believe those who argue on behalf of the men who wear the road out with their carts and wagons, a man who has £10,000 in consols ought to pay for making roads equally with the man who has £10,000 in agricultural stock, and free the man who has £10,000 in land, as he is free already, from contributing anything to that which must be done and kept in repair in order to prevent his £10,000 being worth no more than 10,000 farthings. The principle that everybody must be taxed in order that a national object may be farthered and private advantage may be served under the disguise of a national ob- ject is at the bottom of all protectionist tactics, whether they go under the old and odious name or are disguised as fair trade and reciprocity. All protection, said the free trader of forty years ago, means robbing somebody else. It is a mistake to think that the passion for plundering other people under the forms of law is extinct; it is far too seductive to ever be, and if men only had the skill to persuade their fellows to submit to sacrifices which will benefit no one but the person who is successful in persuading his neighbors, under the pretense that the victim is benefiting a national aim, we may be sure that lots of people would study the art. In most countries such clever fellows have imposed on the simple and unwary. In may particulars even we, free traders as we are, are hoaxed and deluded into letting evil practices continue which have only the defense of private interest, though they put on the guise of the public good. We are always justified in supecting a man who recommends a course of action to us from which, when we come to examine the case, we shall easily dis- cern that he alone will get any benefit by our action. And the reason why this line of action is frequently successful is, that particular interests are always organized for attack or defense, while the general public, whom they intend to cajole or plunder, is a mob without discipline, aud only getting occasional glimpses of the danger which they meet. Thus, they who study the present situation (as is proved by the simultaneous evi- dence of those who analyzed the depression of trade to the ridiculous commission which lately reported) know and say that the principal cause of trouble in England is the detestable land system of the country, which has crippled agriculture and analogous enterprise, and is maintained entirely in the interest of land-owners, or perhaps their creditors. The value of all land— agricultural, mining, and building land — is due to the pres- ence of those who occupy it and the intelligence and enterprise of those who work it. It is necessary, indeed, to recognize, maintain, and enforce property in land, else it would not be occupied or worked. But surely they who give all its value to land ought not to be called on to make further contributions in order to increase or main- tain its value. The growth of population turns a piece of ground which, as agri- cultural land, was worth £50 an acre into a value of £1,000. The owner ought to be satisfied with the benefit which society has bestowed on him, and to be thankful that a law of nature, without any effort on his part, has given him an increased value for his possessioTi. It is rather impudent, when occupation has conferred so great a boon on him, that he should call on occupation further to keep his estate in order, improve it. and pay him a further interest on the capital which the temporary ocou- 722 REPORTS ON TAXATION. pier invests, to no profit of his own, on the estate of the man whom he originally benefited so largely. Well now, the common defense of this iniquitous practice is that the owner pays in the end all the outlay which the tenant incurs; that the land is let or occupied at a less rent, because its outgoings are of such and such an amount; and that if these burdens, as they are sophistically called when they are really conditions to be neces- sarily satisfied before land can be occupied or worked continuously, are put upon other people's shoulders, the rent yielded to the owner will be all the more. It is probable that the land-owners really believe this statement. It is certain that they have acted on it, for between 1874 and 1884 the land-owners in Parliament have con. trived to make the income-tax payers contribute, in addition to what they pay as occupiers, six or seven millions annually towards those charges which are necessarily incurred in order that land should be beneficially occupied. There is an obvious answer to those who say that local taxation is paid by the owner in the end. If this be so, what is the hardship of making him pay it iu the beginning? Why should not the tenant be empowered to deduct his rates from his rent, and the lessee his contribution from the lessor's rent, just as he does income tax, and the landlord be left to make fresh arrangements under this altered state of things? I never found that land-owners relished the suggestion, were willing to accept it, or were convinced that if they paid the rates they would recover them from their tenants in the end. If they could, of course the tenants would be now paying in the end, under the guise of an enhanced rent, the land-owner's income tax; and if Mr. George's scheme were adopted of exacting all the rent from the land-owner, through an income tax which the tenant was empowered to deduct from his rent, the expedient would be in vain, for the rent, being elastic, would rise to the exact amount which the tax-gatherer collected, seeing that it is a law that if the land-owner pays a tax in the beginning the tenant pays it in the end, and therefore it is a mere matter of account, a mere exchange of checks, if the tenant pays it in the begin- ning. When Peel imposed the income tax the land-owners could not, for very shame, especially as they were then enjoying the benefits of the bread tax, refuse to allow the clause which empowered the tenant to deduct income tax from his rent, and made all contracts that the tenant should pay income tax in the rent null and void. But they don't like to admit the extension of the principle, unless a heavy bribe is given them. Thus they allowed the Irish tenant, when the" collection of the tithe tent charge of the Irish establishment had almost become an impossibility, to deduct the tithe froiii his rent. But they also claimed a deduction of 25 per cent, from the amount of the rent charge, and declined to allow the tithe-owner any more of the "unearned incre- ment." In the case of the English church, they cut off the "unearned increment," which was as much the right of the tithe-owner as it was of themselves, for his title is as old at least as the land-owner's is, and the development of his interest has gone on exactly the same lines, and is di;e to the same causes that the increase of rent is, which is about tenfold in the last 1.50 years. They acknowledged that the tithe rent charge is as sacred a property as the natural rent is, and that, the farmer failing, the landlord is liable to pay it. But they would not enable the farmer to deduct the tithe from his rent. On the contrary, they all but invariably covenanted that the tenant should treat it as part of his outgoings in the bargain for his farm. As a consequence the tenant holds, and holds with considerable truth, that he pays, if not the whole, a considerable part of the tithe ; that it is not a partition of rent, hut a charge on agriculture, and in the case of what is called extraordinary tithe, a charge so penal as to be wholly destructive of some kinds of industry. It IS now iu the air that the land-owners intend to assume, under an act of the legislature, the payment of tithe. They are legally liable to its payment now, but the settlement of 1835 did not include the provision "of the income-tax acts, and allow the tenant to deduct the tithe from his rent, all contracts to the contrary being void. But I shall be very much surprised if, when the proposal now made is translated into law, the English land-owners do not demand, in consideration of their undertaking the duty, that at least 25 per cent, of the tithe shall be remitted, as they did in Ire- land. The English establishment is very loyal to the country party. There are very few parishes in rural England where the parson and the najional schoolmaster are not very effective, very unscrupulous, very zealous, and very inquisitive agents on behalf of the landed interest. They have long been the instruments by which the boycotting of rustics and tradesmen has been boldly carried out. But I don't think that their loyalty and their unbought services will protect them. I am disposed to think that the disendowment of the English church is more likely to be carried out by the Carlton Club than by Serjeant's Inn. (5) They who contend that what is paid by tho tenaut is in the end paid by the owner assume two positions. They conclude that whatever a tenant may save by an alteration iu the incidence of taxation can be extracted from him by the landowner, and that the tenant has ao option in submitting to whatever rent a landlord may im- ENGLAND. 723 pose. For it Is clear that it is only by virtue of such powers as are stated above that the land-owner who has paid a tax, or from whose rent a tax can be deducted by the tenant, any clause to the contrary notwithstanding, can exact a higher rent from his tenant by virtue of having paid the tax. The common opinion has been derived from the temporary circumstauces attending certain contracts for the right of occupancy, and it is diligently circulated by land-owners, who (having in England, by virtue of their overwhelming power in the legislature when the principle of making the occu- pier pay local taxation was established, made the tenant pay their charges) insist that the temporary circumstance is an abiding condition. Now it may be admitted that when a man occupies a tenancy with a view to de- riving profit from his occupancy, and is in no way constrained to accept the occu- pancy, either by tha- nature of his calling or by the circumstances in which he is placed, but is a perfectly free agent, with a considerable choice of tenancies, he will, if he be prudent, reckon the rent which he will pay by the consideration of what are the outgoings, as they are called, of the holding. Thus, if he be a farmer, he should not only reckon the amount of capital necessary to cultivate his holding, an amount which will vary with the character of the soil, but he will reckon as to what the average rates and taxes are which will be deducted from his profits. Among these, however, he will not reckon the income-tax which the law allows him to deduct from his stipulated rent, nor, as I suppose, does he imagine because the landlord has to receive so much less from his rent, that he, the tenant, has to pay so much more. If he did he would conclude that lie has to pay in his rent, by parity of reasoning, the landlord's assessed taxes, and perhaps his contributions to customs and excise. But he knows, in a rongh way, that a tax has a tendency to remain with the person who pays it, and that au effort must be made in order to effectually transfer it. Now the effort will be made with ease, as is the case with excises and customs ; or with so much difficulty that success is impossible, as in the case of a property tax ; or with varying ease and difficulty, as in the case of an income tax, for it is sometimes admitted that an income-tax is a trade charge, and goes into the price of goods sold. Very few occupancies, however, satisfy the fundamental condition of perfect free- dom of choice. In the first place, the owner may be possessed, by the favor of law, of the power of exacting a monopoly price, and the intending occupier may be disabled from contending against it. The great owners of real estate are permitted to occupy this position, and can hold out for their price, trusting that followihg the neces- sity of an industrial career will enable them to force the occupant into accepting owner's terms. This is illustrated over and over again in the evidence given as to the causes of the depre^ion of trade: For example, by the manager of the iron- works at Barrow, and in reference to agriculture by Sir J. Caird. They who dwell on the fact and its ri'sults appear to consider its jirooess natural ; they do not see how unnatural, unreasonable, and ojipressive our land system is. But what I have commented on is not derived from the economical incidence of local taxation ; it is due to the power which the law gives the land-owners of driving unfair bar- gains. The price of occupancy is determined by one special cause — an artificial famine for industrial areas, which the law enables land-owners to create. The inci- dence of local taxation, if it were transferred in part to the owner, is wholly out- side the factitious scarcity which the English land-system makes, and this is proved hy the fact that the settlement of estates has ruined English and Scotch agriculture. Nowthe man who perhaps is best able to bargain with a land-owner, and to exact the fullest deductions from rent by reason of the outgoings of local taxation, is a well-off farmer who is entering on a new holding. Let us imagine that such a person takes afarm at 35s. an acre, with a capital of £10 an acre, and with outgoings of 5s. an acre for poor rate, highway rate, and other county charges. I will at once admit that the 5s. is taken into full account by a man with ordinary prudence, and that if be knew that the landlord was compellable by law to pay the 5s. he would be disposed to offer something near to 40s. for the farm. If he were retaking au old holding, it does not follow that he would be so able, or at all able to take this into account. But when the bargain is once made the freedom of action is gone. The determin- ation of his holding and the recall of his capital from the land invariably involves a loss of from 10 to 15 per cent, of his capital. I have often asked Sir James Caird who knows the economical relations of landlord and tenant better than any man living, or at any rate has stated them more plainly than any man, whether the percentage given above is an exaggeration, and have always been assured that it is not, and I know that it is not, and I know that the complaint of farmers, for the last four centuries, is to the same effect. Then, a farmer does not always foresee that he may become liable to exceptional depressions of market values, and very soon a local burden amounting to over 12 per cent, of his regular outgoings, concurrently from his loss on labor and stock, may absorb all his profits and begin to trench on his capital. It is this which makes the payment of tithe by the occupier so distasteful to him. From one point of view it is part of the rent, from another it is a fixed charge, which is light during a time of remunerative prices, but crushingly heavy wheu the experience ia 138— No. 99 30 724 EEPOKTS ON TAXATION. reversed. But local taxation, levied on the industrial occupier for objects whicli ha\ e to be satisfied before the land will bear any rent at all, is, under the circum- stances I have described, a still heavier charge on profits. Is tliere a single farmer ■ ■who believes that if the law divided these burdens between owner and occupier the former could recover them from the latter? It is not from competilion that farmers' rents have been so exalted that they have been a principal agent in agricultural distress, and indeed are the prime factors of trade depression. In ordinary business a successful ring is the cause of serious loss to many. But under our system of allovping the settlement of land, the occupier has been open to the influence of a perpetual ring. The land-owner or his agent is per- fectly aware that the cessation of a tenancy in agriculture means the loss -which I have indicated above, though it maybe no gain to the owner or the new tenant. Hence he is able to exact a fine on continued occupancy, and the tenant with a capital of £5,600 on a farm of 500 acres will often agree to give £60 a year more rent rather , than lose £500 to £750 by dispossession. This is what has raised the rent of laifd in England and Scotland to a ruinous height, and this is what has given a color to the general impre'ssion that if a local tax is paid by the landlord he will be able whatever be the provisions which the law makes, to recover it from the tenant. But this may be confidently stated, that if it be true that the outlay which is needed to make an occupancy worth anything at all, may, in addition to the rent which the tenant naturally pays, be excisible from the tenant, the inference is that outlay on local taxation is the most profitable thing for the land-owner imaginable, for it raises the occupation value of his property from zero to the amount he gets for it, and next, that it becomes difficult to resist the argument, that if other people pay for his im- provements, it is the duty of the estate to see them, perhaps itself, disputed. ■ Agricultural land during the last century and a half, and before the reductions '' came, owing to the general ruin of the farmers, has risen, as I know from past and present rents obtained by fair landlords, about ten times ; i. e., a farm which let in 1700 at £100 a year, let in 1850 at £1,000. Now with this rise I find no fault. It is the result of an eco;iomio law, and whatever claim the state may have to a revision of the land tax, I am persuaded that it is better that individual landlords, withont their present power of settling lauds, should possess it than that the state should be the universal landlord. An aristocracy may be an^excellent thing. Great wealth in land may produce^ class whose virtues, learaiug, statesmanship, public spirit, and entire freedom from degrading vices may make them an example to us all, aud the fittest trustees of our highest national interests. But we may buy gold too dear, and ' assuredly we shall do so if the system is to ruifi agriculture, cripple the home trade, i and induce permanent depression and discontent on industry. And if the system does not produce these moral and intellectual virtues, the case is worse. I am told that, owing to the pressure of local taxation, and especially for those oh- ' jects iu which vast works are constructed for the future owner and paid for by the present occupier, many persons have transferred their worksout of the range of these heavy dues for local taxation into districts where the charge is relatively trivial. Do not such persons pay the local taxes ? Is this a mere arrangement between land- lord and tenant ? To those who study the incidence of local taxation itislioto- rious that the decision of Lord Kenyon, at the conclusion of the last century, by which the capital of the woolen manufacturers iu the west of England was made liable to local taxation, ruined those manufacturers. The Yorkshiremen were wiser. They i''i declined to carry out Lord Kenyon's decision, for they knew that the wealth of a district was much more surely developed by the profits of industry than it is by re- ducing charges on laud, especially when the charges were essential to the land haying any economic value at all. The consequence was that the west of England cloth trade was transferred to the West Eidiug. The re-arrangement of local taxation in reference to the industry of the country is no matter of arrangement, or sentiment, or abstract reasoning. It is, I am persuaded, ■ vital to industry, and also equally vital to trade. Manufacturers complain that while 1 liey produce at little or no profit, the gains, as they imagine, of retail traders are enormous. But they omit to notice that though rent and local taxation do not intrinsically enter into wholesale cost, because, under competition and free trade, | production carried on under the most advantageous circumstances fixes the price of products obtained under the least advantageous, yet in retail trade rent and local « taxation do enter into price. The shop-keeper is forced to recoup himself for his outlay, and he does it out of his customers. Hence discontent on the part of the Consumers, the establishment of vast stores, co-operative or private, in which the charges I refer to are reduced to a minimum, though still heavy enough and unjust j enough. (6) The system under which the occupier is constrained to pay for improving the estate of the owner, and is subsequently compelled to pay interest on his own outlay ■ for another's advantage, is characteristic of the legal imposition of local taxes. The V hardship and injustice are specially visible in town tenancies, and, beyond question, |. ENGLAND. 725 .apart from the ontrageous wrong of tlie system, have aot a little to do with the de- pression of manufacturing profits at the present time. The competition of English industry is with the wbole world. Foreign markets take no account of the tolls levied on our industry by the idlers of modern life. Fortunately for Euglaud, foreign na- tions deliberately cripple themselves and their progress by protective laws. If these nations vpere to accept free-trade principles, and act upon them, we should soon find oat how industry is handicapped in England by laws which are intended to pillage industry in tlie interests of rent. Undoubtedly the operatiou is disguised in many cases. If any of your traders is carrying on the business of a bank or a discount ofSce, of an insurer, or of a broker, the element of local taxation, like the element of rent, is comparatively trifling in the transactions which he undertakes. He may handle millions a year, and the per- centage of his outgoings for rent and taxes is infinitesimal in the gross amount of his expenses. But if he occupy a grdat warehouse, still more a great shop, iu which lie mi(3t needs advertise his calling, the costs of rent and local taxation, both steadily increasing, are serious items. In order to meet them, he must haggle with the man- ufacturers for the lowest wholesale price, and seek to enact the highest retail price from his customer. I have over and over again heard the loudest complaints from manufacturers about the enormous difference between the price at which they sell and the price which the public pays for their goods. They do not apparently see that the system which loads the retailer with enormous charges on occupancy must diminish their profits, raise retail prices, and check consumption. Turn which way we will, we find that the English land system and the English system of local taxation are equally injurious to producer and consumer. I should be very much surprised if it were not found that a Barnsley damask table-cloth weaver was considerably weighted iu competition against a Dunfermline weaver, the latter, carrying on his industry iu Scotland, being under a better system of local taxation. Injurious, however, and unfair as the English system is, disastrous as it morally is . to English industry and retail trade, the absurdly unequal manner in which occupancy is treated under the assessment laws illustrates the scandalous favoritism of the law towards the great land-owners. As every one knows, the basis of all taxation on lauds and houses is the assessment made for the relief of the poor. Much local taxation is derived from precepts issued upon boards of guardians. The income-tax assessment on houses is primarily derived from this authority, though complaints are pretty common that zealous and ambitious officials try to get a reputation for smartness by putting the tax on occupiers at a higher rate than the rent they pay, and thereby levying on them a tax which they cannot deduct from the rent. Now assessors, chosen by the boards ot guardians from their own body, or appointed by the same officials at the charge of the rate-payers, may generally, especially the former, be trusted. Years ago, the writer of these articles, the experience formerly had of a paid assessor having been costly and unsatisfactory, agreed, as a guardian of the poor, to serve on an assessment committee for the city he lives in. He certainly did not antiicipate the work he had undertaken, for it occupied all the time he cOuld spare for two years and more, the task being rendered peculiarly difficult by the diverging interests of the university and the city. The former is a very extensive owner and occupier, and is, besides, in the person of the colleges, a very considerable landlord. Hence its interest was to depress the rate on its own occupancy and to raise it on the occupancy of the townsfolk, for the owners of college property are sufficiently enlightened to see that they do not pay, first or last, heavy taxation for local purposes imposed on their tenants. We dealt as fairly as we could, and had no appeals, though I incurred a good deal of odium from some of the fellows of colleges, by insisting that equity should be followed. Some of these fellows, chiefly clergy- men, thought it was my duty to cheat my neighbours in the interest of the colleges, and were correspondingly indignant with me when I did not. Now there is a remedy against an unfair assessment. This is an appeal to quarter sessions, not, it will be remembered, to town or city magistrates, but to those people in the commission of the peace who are magistrates for the county. Now it would be rarely much good to appeal to the quarter sessions against a town assessment, except, perhaps, agafnst the assessment of a public house, for the local brewer has generally interest enough with the bench to prevent his houses from being rated at anything near their full or actual rent, as I have good reason to know. They are indift'erent, perhaps gratified, by the full assessment of houses in towns. If they own property, they are perfectly well aware that the tenant pays the rates, and they do not. If they do not, they are glad that a place which they frequent for their convenience has well- made and well-kept roads, Avell-Iighted streets, and efficient police, and other advan- tages which the occupiers pay for, and iu which outsiders find a benefit, as,~for ex- ample in bringing agricultural produce to market. Besides, most tribunals, when their own interests are not concerned, decide fairly— even a bench of county magis- trates It is quite another thing when their own interests are challenged, or even the order to which they generally belong is criticised, or its conduct impugned. On 726 EEPOETS ON TAXATION. a poacliing case or a county assessment case, or on a political intimidation practiced at election times by a county squire, I would as soon trust a bench of county magis- trates as I would a cat with cream. It is with the second of these which I have to deal. The law as to assessors, and appeals from assessments, is 5 and 6 William IV. By the provisions of this act the assessors and the court of appeal are to take into account the fair letting value of the premises which are assessed and taxed. I have no doubt that the legislature thought of tbe great mass of tenancies in which such a mode of assessment is obvious and fair, for beyond doubt the value of anything, in a rough and ready way, is what it will fetch in the market. I repeat that the quarter sessions is not quite above sus- picion in the case of public-houses. I have known many a public-house sell for eighty years' purchase of its nominal rent. But I am sure that quarter sessions would dis- allow a rating which came near to four times the uomiual rent. Now they had to apply this rate of the fair letting value to their own mansion, and they decided, with absolute unanimity, that this letting value in their own case was a quarter or a half per cent, on the building value. From this decision there is no appeal. It sometimes leads to results which would be ludicrous were they not so ir- ritatingly uujust. A ducal mansion, with garden and park, is often rated at little more than a large tradesman's shop in the vicinity of the mansion. Some time ago, an eminent and opulent statesman, whom Liverpool has heard of, built himself a mansion in one of the home counties, at a cost, I am told, of £100,000. He set his own valuation on the house at £1,000 a year. But the quarter sessions, dreading the risk of even so near an approach to equity as a rent of one per cent, on the outlay, reduced the rating to £500 a year, against the owner's wish, though, of course, with his acquiescence. It is very plausible to say that you could not find tenants for these great houses at anything like interest on the outlay. It is possible that one could not find tenants at all for Chatsworth, or Eaton Hall, or Blenheim, orWelbeck Abbey, or a thousand other places, and the quarter sessions might logically relieve the tenants of these palaces from any contribution whatever. Unfortunatelj', it is much more easy to let a workman's cottage thau it is a peer's palace, or even a cotton-mill or a warehouse. Bat to relieve persons from local contributions because they are artificial rarities, or because their houses are artificial rarities, does not commend itself to any man's sense of equity. And it Is not always true that such houses would not let. In the imme- diate neighborhood of the city in which the writer lives is a country mansion, the owner of which was fortunate enough to let it to a school. While he lived there the house was rated at a nominal assessment; now its rate approximates to its building value, and the other rate-payers have no reason to be dissatisfied When I was talk- ing some years ago with a eouytry gentleman who defended the existing practice with the usual argument, I met him by saying that the county wanted a new lunatic asylum, and would, I thought, offer a fair rent for the palace near, and would even be content with the disappearance of its inmate. Now, if there is anything in which all governments and all critics of governments are agreed on, it is that luxuries are the most legitimate subjects of taxation conceivable, lirovided you can get at them. Hence, it seems to me that if a man chooses to build and inhabit a house which is, for magnitude and cost, far bigger than his necessities, it is only just that he should pay for bis whim. If be thinks proper to keep a dozen or a half a dozen houses in his own hands, I can not see why the fact that hu does not or could uot let them should excuse him from being rated at their full value. The fact is, the system prevailing in England is the inevitable custom of the fiuau- cial theory which does not tax property and does tax income. The American peo- pleihave, without any discontent, confessed or felt taxed property, and a country house is valued in the States at its building value. They cau uot understand why we submit to our present system. Sound economists do battle with socialism to the best of their power. But the nobles and squires are eternally making fresh disputants on the socialist platform. Working-men are crammed by thousands into scanty and iusuffioieut lodgings in towns. From them local taxation is very effectually demanded, and on the full value of the holding which they occupy. How does one think that they feel and judge wheu they are told that the rookeries in which they live are rated at a higher amount than ducal palaces and ancestral mausions ? It is, I am sure, dangerous to accent- uate distiuctions between rich and poor, when the burden of the former is made designedly light and that of the latter is rendered inevitably heavy. The sting of taxation, it has been justly said, does uot lie in its weight but in its inequality. It is wise to remove any suspicion of partiality in the distribution of public burdens. Disafisction and discontent are dangerous counselors, especially when they are stim- ulated by obvious unfairness. At present they are restrained. But what — as Colo- nel Thompson used to say, in the old anti-corn-law days — what if the extinguisher catches fire ? (7) Eaoughljas been aaid, I hope, ou the mauifest unfairuoBS with which local tax- ENGLAND. 727 ation is imposed in England and Wales on occupiers, as compared witli the rule ■which prevails in Scotland and Ireland. During the last twelve years the land- owners in Parliament, adroitly taking advantage of the growing discontent which is felt at these charges, have transferred from the ordinary objects of the tax much of the burden, and have rendered, unless the action is reversed, the income tax a per- manent instead of an occasional instrument of finance. * * * The division of local taxation in equal moieties between owner and occupier is only an approximation to justice ; is no better than a compromise, in which the right shoul- ders would ^till bear theleast part of their just burden. Originally, and historically, the poor-rate was a charge on land and on employers of labor, justified on the ground that the inheritance of the poor was being appropriated by the rich, as it continued to he till scarcely anything was left to appropriate. The whole course of legislation in the interest of employers, and against tlie interests of labor, was excused on the ground that therent of land was pledged to the relief of destitution. Practically, when occu- piers were generally also owners, and the business and capitalist class was a very small one, rent did pay the poor-rate. I have latterly been examining the signifi- cance of the first statistics of poor-rates, those given for the last year of Charles II, 1684. The facts are given for the several English counties, and the aggregate amounts to fully one-third of the whole public revenue. Similarly, the cost for maintaining roads and other communications which are dedicated to public use, and without liability to tolls, should be a charge on rent. A road is as essential to agriculture as a plough or a wagon is. A well-made and well-kept road is as necessary as a plough or a wagon in an eflicient state of re- pair is. It stands to reason that when the use of a road is a condition precedent to any business whatever, the cost of supplying this convenience is much more justly due from those who must use it than it is from those who do not use it at all, or use it voluntarily. If roads go out of repair, a moment's reflection will show who they are that suffer most from the inconvenience. But surely those who suffer from an inconvenience are much more bound to remedy it than those are who do not suffer from it at all. I do not argue that pedestrian wayfarers should be entirely exempt from contributing to the cost of maintaining communications ; but as their wear is small their contribution should be also small. One of the fairest ways in which a supplemental tax for repairing roads could be levied would be a moderate tax on wheeled carriages of all kinds — on the farmer's wagon, on the carrier's cart, on the private carriage. In large towns the dividends of omnibus companies are largely in- creased by the comparative easiness of modern roads, for which the occupiers pay. Undoubtedly, if local authorities were empowered, as they will be ere long, to levy local taxes for local purposes, a tax on wheeled carriages will assuredly be imposed In aid of road-making. As it is, municipal corporations take care to make tram-way companies repair their tracks. Outlay absolutely essential to the health of towns is another charge which should rightfully fall on rent. Laud in towns can not be occupied without water, and should not be occupied without adequate drainage. As it is, local authorities can compel, and do compel, builders or dealers in building land to make roads and con- struct sewers. But they have no power to compel owners, as they should have the power, to contribute to artesial outlaj^, or indeed to any further outlay, after build- ings have been erected. The law allows them to plunder the occupiers only. Now, I admit that at first sight it would seem that if the cost of drainage is justly to be put on rent, that of a water supply might properly be left to the occupier. But at least the connection of the occupier's tenement with the water supply should be a charge on rent, whatever may be said for the continuous supply afterwards. Now, I take it that in great towns the cost of laying the mains is far in excess of the cost of supply- ing the water. Here, of course,' I am merely arguing on grounds of principle. I do not allege that you can, after so long-continued a system as that under which Englishmen have lived, suddenly reverse the practice of the past. But it is always useful, even though a complete reform is impracticable, to point out what are equita- ble principles, because these are guides for future action and for new departures. On the other hand, the lighting and the police of the streets are entirely due from occupiers. No doubt a plot in a town which could not be lighted and could not be patrolled would ha.ve no value. But it is plain that police protection (and street lighting is only a form of police nrotection) affects persons and personal property only. But it i.s' constantly alleged' to be a grievance that the police in the country are too much instructed to watch poachers than to watch after the peace, and this in the interest of persons who, by virtue of the extraordinary system of country-man- sion rating contribute only nominal sums to the common fund. Much, however, of the charo-e for the police is put on the consolidated fund, wrongly in my opinion, be- cause the cost of domestic defense ought to be borne by the locality, and by the per- sons immediately benefited. This principle is recognized in the fact that certain injuries done to property may, under well-defined circumstances, be charged on the local rates. 728 REPORTS ON TAXATIOIJ. One of the most grotesque and nnjuat local taxes ever imposed was that which put, the cost of compensating the owner of cattle slaughtered under the provisions of the cattle-plague act on the general body of occupiers. Unless I am misinformed, a well- known Cheshire town, which is only just on the borders' of the county, was con- strained to raise a loan, the charge of which was to extend over thirty years, in otder. to meet the costs put on them under this act. It is impossible to discover any ground for justifying this impost, except that it was cast on the town by a land-owner's par- liament. The immediate advantage derived from the slaughter of infected cattle was that of the owners of uninfected cattle. The proper course would have been to levy a capitation or poll-tax on those cattle which were saved from disease by the process of stamping disease out. Theoretically, and in all probability actually, the - suggested poll-tax could have been recouped in the additional dearness of meat in- duced by the plague, for iu those days the trade iu foreign cattle was slight. As it was, the farmer or dairyman had his cattle insured at the cost of other people, he con- tributing but slightly to it, and had the additional advantage of being able to chargea higher price for that which the consumer had been constrained to insure. I admit that the owner of the infected herd suffered a loss, for he did not get the whole value of his slaughtered stock, but the owners of uninfected herds gained at the expense of the general occupier, and upon no principle of justice whatever. But anything can be expected from landlords, who seem to think that their property .should be secured from any and every contingency which affects, and always will aifect, other kinds of property. One of the consequences of this outrageous transference of what should be taxes on rent to taxes on occupancy is the difficulty of getting any addition made to local taxation for purposes which occupaucy should unquestionably bear. People who are paying 6s. in the pound of rental for objects from at least half of which they ought to be freed are furious at the prospect of paying an additional sixpence for objects which it is really their duty or their interest to make provision for. (8) Much of the discontent which is at present felt and uttered as regards local taxation arises from its being imposed upon one kind of property only, real property occupied. The complaint is natural, and is used to disguise the other injustice whiok it inllicts, and to which reference has so often been made that it is levied in England and Wales exclusively on the occupier. "Why," say those who criticise and demur to the present system, " should the man with £10,000 a year iu stocks pay only on the house which he lives in, while another with £10,000 a year in land pays the whole of the local taxes?" The answer to this complaint has been anticipated. The greater part of local taxation is beneficial outlay, essential to the profitable occupa- tion of land or to its enjoyment. If we are to resort to the old system of statute labor for the repair of roads, main and by, it is plain that they who make the greatest use of the road would have to pay for it. If we are to extinguish the poor-law, wages would necessarily rise, at the cost of the employers of labor, as they did rise iu 1837, after the new poor-law was'enacted, to the full amount of the difference between the old amount of the poor-rate and the more recent. Now, lam ready enough to admit that there are some local taxes which should not fall on real estate, or rather on the occupiers of real estate. The only special taxes which are justly levied ou laud-owners, and in justice should be directly levied on them, are those which are essential to the beneficial ownership or the eujoyment of real estate. The rest should be derived from the wealth of the public at large, aud in theory from all without distinction, for if the benefit accrues to all, all should pay their share. Thus it is not just tluit the owners or occupiers of real estate should contribute the school-board rate, though of course tbey do not contribute it all, a large subvention being annually added to the charge from the public taxes, as indeed the whole should be, though not in the present manner, when one tax alone, the in- come tax, is relied upon for all those increasing grants. So again on no pretense of justice should a public library be maintained from the taxes of occupiers only, and in theory from real estate. Again it is unjust that the charges of registration for par- liamentary aud municipal elections, for the maintenance of the public peace, or jus- tice, or for lunatics, should be paid by the occupiers of real estate only. They are national charges, and some of them have been in great part treated as national charges, for lunacy and the police rates are aided by large contributions from the consolidated fund. But to deal equitably with these matters one would have to divide all local expend- iture into two heads. One, to which reference has often been made, should in strict justice be paid by the owner only, in consideration of the advantage he receives from the rent of land, which is entirely due to occupancy. The other should be paid by all kinds of property, and form a property tax, of so many thousandth parts of the value of the property, seeing that good government is a condition which must be satisfied before any property can be enjoyed, or even be safe. This is what the Ameri- cans do. They levy their local taxes by assesanents of the capital value of all prop- erty, and they make the cost of their public schools a first charge upon the proceeds 'u^iM ENGLAND. 729 of all property, that is, wealth available for profit or enjoyment. But there is noth- ing which rich people detest more than a property tax, nothing which they have more successfully resisted. And yet it is the most just of all taxes for imperial purposes, i. e., for purposes which affect all equally. An income tax is intrinsically unjust because it taxes capital and profits in precarious or terminable callings equally with profits only in the case of permanent income. So unfair is it felt to be, that govern- ment levies no income tax on wages strictly so called, on no incomes below a certain amount, and at less rate on incomes below a somewhat larger amount. The possi- bility of direct taxation would be much more obvious if it were levied on property instead of income, as the ancient English taxes necessarily were, though when they did levy an income tax in our modern sense, they confined it to the profits derived from permanent sources. But treating a property tax as a matter out of the range of practical politics, and the transference of all local taxation of a remunerative, beneficial, or necessary char- acter to those who receive the remuneration, enjoy the benefit, or know that the necessity is an antecedent condition to any profit whatever, as an arrangement only less remote and less distasteful than a property tax, the obvious remedy is that pro- posal which I made in the House of Commons on March 23, last year, and the House agreed to, by a majority of 40, that all local taxation should be divided between owner and occupier. Let us suppose that under these circumstances all occupiers are relieved of half their local taxation, that the average rate is 6s. in the pound, and that, therefore, the burden on the occupier is at once reduced to 3. I have already given reasons for concluding that it would not be in the power of the land-owner to transfer this tax from himself to the tenant, any more than it is in bis power to transfer the income tax which he pays on his rents to his tenant ; and let us suppose that the law which now applies to the income tax bo applied to the share of local taxation which the tenant has to pay. After such a relief, is it likely that the occupier would grudge his share in the cost of national education ? As a public man, I have always contended that education should be free. The skill which a man acquires in his craft, be he an artisan or a professional workman, is a wage-earning outlay, and ought to be provided at his own charges, as it generally is, in the shape of deferred wages during appentioeship, or no wage-earning power whatever till, in most professional callings, the learner is pronounced to be duly qualified. There is no reason why the state should be at the cost of bringing up lawj'ers and doctors, chemists and engineers, carpenters and wheelwrights, merchants and traders. The knowledge which they have is special; the skill which they have acquired is marketable. I have always looked with sus- picion on the schemes for supplying technical education at the public charge. I am pretty sure that in the end they will fail of their purpose. Gift horses, as the old proverb says, should not be examined too closely. But the case is entirely different with primary education or any education to which an may, in varying degrees, be brought. We educate all children, or insist on them being educated, on grounds of public policy. We have learned, I hope not too late for our good, that an untaught and untrained race will collectively fall behind those who are taught and trained. The education of the English people is a matter of public necessity, of the general good, of vital significance. Now what is every man's interest should be paid for by every man. Least of all should it be paid for by those who make a great sacrifice in submitting to the public demand. To me the exaction of any money contribution whatever from the working classes, or, for the matter of that, from the propertied classes, for primary education, is a blunder and a wrong. I quite appreciate as sound, sensible, and just what I have seen in the United States, the children of a gentleman of fair fortune and high culture sitting on the same form and learning the same lessons, from the same teacher, with the children of that gentleman's servants. I have little doubt that the resistance which is shown to school boards and school- board rates, and the clinging to sectarian schools, with all their shortcomings, mean- nesses, and paltry provocations or tyrannies, is due, in thefirst place, to the evident and in this case the complicated unfairness of our present system of local taxation, and in the next to the intolerable burden of its present incidence iu England and Wales. If my proposal were carried into effect, the lightening of local taxation from the hands of occupiers would make them indifferent to the 3d or 4th iu the pound for a school rate, and would aid the Government in getting rid of the wretched compromise by which they try to get the grudging gifts of denominations, the pitiful sophistry by which they claim the parents' pence for the children's teaching, and the unsatisfactory results of this mischievous method. This is a vicious system of local taxation and any addition to it increases the irritation felt at it in a geometrical ratio. The other local tax which is greatly resented, but under a better system would be quietly if not gladly, accepted, is the supply of public libraries and reading-rooms. It is impossible to exaggerate the good which these institutions do. They are always humanizing always beneficial. But as it stands at present, especially in London, 730 REPORTS ON TAXATION. ■where the pressure of local taxation is enormous and the administration of its col- lected funds scandalous, there is great unwillingness to establish such libraries or reading-rooms where, indeed, they are most needed. In some districts it is impossi- ble to doubt, from the political complexion of the locality, that they who can decide on the matter dread the light. They are alarmed at the contingency of the people getting into wholesome and instructive literature, and they are shrewd enough to in- voke the pressure of local taxation as a reason for declining to take advantage of Mr. Ewart's act. They have a plausible reason and a secret motive which they do not like to avow. I am convinced that if the burden of local taxation was taken from the occupier, and in part lightened, these people would preach to deaf ears. In taking the line which I took in Parliament, I had these purposes or hopes before me, and I trust that even in the present strife they will not be frustrated. IRELAND. TAXATION IN CORK. JtEPORT OF CONSUL PIATT. Besides customs duties, postage, etc., the only tax imposed in this consular district which can be called a national one is the income tax. This tax is levied under five distinct headings or schedules, viz, (A) land; (B) occupation; (C) funds; (D) trades and professions^ (E) profits of office. The tax has increased yearly since 1884, when it was 5d. (10 cents) in the pound sterling ($4.87), to 1887, when it reached 8d. (16 cents). Persons whose income does not exceed £120 ($583.98) from all sources yearly are exempt. Under Schedule A, in respect of land, tenements, etc., the tax is 5d. in the pound sterling on income of £100 ($486.65) annually and upwards. Under Schedule B, in respect of occupation of lands, tenements, etc.. Id. in the pound sterling on income of £100 annually and upwards. Under Schedule C, in respect of annuities, dividends, and shares of an- nuities, 5d. in the pound sterling on income of £100 annually and up- wards. Under Schedule D, in respect of professions, trades, employments, etc., 5d. in the pound sterling on income of £100 annually and upwards. Under Schedule B, in respect of public offices, annuities from public revenues, etc., 5d. in the pound sterling on income of £100 annually and upwards. For every inhabited house of the rental value of £20 ($97.33) a year or upwards, for the purposes of trade or exposing goods for sale, 6^. in the pound sterling. If occupied by a person licensed to retail beer, spirits, wine, etc., 6d. in the pound sterling. If occupied as a farm- house, 6d. in the pound sterling. If occupied in any other manner, 9d. in the pound sterling. The tax in each case, it is to be understood, is uponthe rental valuation per year. LOCAL TAXATION. -The principal local tax is that termed the poor rate, which is levied under the assessment of poundage rate on the net annual value of the property liable or rateable, which consists of all land and buildings mines seven years open, rights of way, navis.ition, and all other rights and easements, tolls, etc. The valuation of all property is revised annually in cases where changes occur in boundaries, value, etc. IRELAND. 731 The places and properties exempt are houses of worship, buildings used for charitable purposes, public institutions, and burial grounds. The persons liable are the occupiers of rateable property at the date of striking the rate, and, in default of payraent by them, then the sub- sequent occupiers are liable. Occupiers of holdings under the yearly value of £8 ($38.93) are ex- empt, in which case the lessor is rated. On all settlements of rent between landlord and tenant half the poor rate paid by the tenant is allowed by the landlord. COUNTY TAX. Grand jury cess is a tax peculiar to Ireland, controlled by a number of the largest property holders in each division, chosen by a ballot from a list fixed by the grand jury at each assize or term of court. The estimates are made to fix amounts necessary for making new roads, bridges, quays, for repairs, fixing compensation' for malicious injuries to property, part support of police, prosecution of offenders, and sup- port of deserted children. The amount necessary to meet any of the requirements is levied on the rate-payers of the immediate district in which the necessity arises for any of the purposes above stated ; but for contribution towards support of the police the tax is levied on the county at large. In consequence of the political agitation concerning landlord and tenant the tax in some disturbed portions of the counties through mahcious injuries to property and cattle has been very high. TAXES FOR THE CORK POOR-LAW UNION. The Cork union has, for the city and the various electoral divisions comprised in it (each division choses a guardian of the poor-law union), an area of 169,732 statute acres, the poorla>v valuation of which in 1882 was£350,789 ($1,707,114.67). The population was 145,216. Average daily number of paupers in workhouse, 2,558; number relieved during year indoor, 16,709; number relieved during vear outdoor, 7,359; cost of indoor relief, £27,218 ($132,456.39); cost of outdoor relief, £10,629 ($51,726.03); salaries and rations of officers, £4,678 ($22,765.49); gen- eral expense, £7,136 ($34,727.34). Poundage of expenditure, 2s. Sd. (64 cents), i. e., 64 cents upon each $4.87 of the entire valuation. The cost of collecting the poor rate is 6d. in the pound sterling col- lected. This service is done for the Cork union district by four col- lectors, each of whom furnishes approved bondsmen for the due and faithful collection of the rates. The rate varies throughout the electoral divisions comprising the union, and is made in accordance with the number of poor chargeable and belonging to each division respectively. CORPORATION TAX— CITY OP CORK. The local taxation in the city of Cork is said to be exceptionally heavy. The rates are struck half yearly, and are for the purpose oi paying interest on city debts, salaries to officials, paving, draming, lighting, cleansing, supplying water, and, generally, for city improve- ments; the property assessed being the same as that assessed for the poor rate. ™ In February, 1887, the citv rates for the half year, to pay officers, interest on debts, etc., were 3s. 3d. (79 cents) in the pound sterling of as- sessed valuation; the public water rate was l^d. (3 cents) in the pound ; the domestic water rate was 3d. (6 cents) in the pound— or, about 8s. 732 REPORTS ON TAXATION. ($1.94) in the pound per year for the city rates ; while the poor rate for Cork City is from 3s. id. (81 cents) to 4s. (97 cents) in the pound, mak-, ing a total of 12s. ($3.92) in the pound of assessed valuation. The city rates are paid entirely by the lease-holder, together with half the poor rate and property tax. The valuation of the city of Cork for rating purposes is £158,846.6, or $773,025.52. The total indebtedness of the corjjoration at the present time is £242,657.6.5, or $1,180,891.85. The amounts of rates to be levied is arrived at and assessed by the corporation on the sums required for city improvements, and due notice of same having been struck and the amount per pound sterling for each rate is given in the local newspapers as well as by bills posted on the various public notice boards throughout the city. In many cases process of law has to be resorted to for recovery of the rates, owing to the great depression in trade, and the heavy tax is daily becoming a great source of complaint in business quarters. John J. Piatt, Consul. scoti.a:n^d. TAXATION IN SCOTLAND. REPORT OF COKSUL UNDHRWOOD. Taxes in Scotland are assessed upon real estate, but not upon per- sonal property, except indirectly by tax on incomes and occupations or in the cases of legacies and successions. The annual rental for an estate is taken to be the standard of value. When the owner occupies his own premises the statement of the annual value as returned by himself is i^assed upon by the assessor, who may accept or advance the owner's valuation. If the owner is dissatisfied with the official valuation, he can appeal flrst to the magistrates and next to the superior court. The valuation statute of 1854, section 6, says, " The same shall be taken to be the rent at which, one year with another, such lands and heritages might in their actual state be reasonably expected to let from year to year." Mines are not assessed if not worked within the year. Unimproved lauds, forests, etc., are assessed at their value as grazing lands. When lands are bona fide let for a yearly rent, such reut is taken as the annual value. By far the largest proportion of estates, both iu city and country, is held or occupied by feuars, who are particularly regarded and assessed as owners, although they pay an annual feu duty to the superiors, or grantor of the feu. Municipal taxation of feued land falls upon the fenar but not upon the superior, who pays solely a tax to the imperial treas- ury based upon his general income, including, of course, the feu duties he has received. A dwelling-house of moderate size, costing let us say £1,000, which may be expected to yield a rental of £40 or £50, is sure to be assessed at its full value ; but a costly house is uot necessarily assessed in pro- portion. The inquiry is, " What would it let for 1" A shop or warehouse in a city or town, if occupied, is assessed at its value ; if it is unoccupied, the owner pays no tax. Vacant lots of land Scotland. 733 and ruined buildinji'.s in the city are not assessed. Tracts of land in the suburbs of citiesjmd towns are assessed at their annual value for agri- cultural purposes. Owners of land near Glasgow have become enor- mously rich by sitting still and seeing the intrinsic value of their estates grow to large proportions by the industry and enterprise of the com- mercial and mauufacturing classes. The result of this mode of assess- ment is to favor the holders of land by relieving them of their equitable share of the public burdens. For taxation and other purposes Glasgow is divided into three par- ishes. The City parish, the most ancient, is at the east end ; the Barony parish includes what is now the center and northern part of the city ; and the Govan parish includes the district south of the Clyde, and the west end. These two last-named parishes are of large extent, and the limits 9f modern Glasgow cut them in such a way as to leave large parts of them outside the municipality. In stating the mode and rate of taxation in the parishes, it will be understood that reference is made only to such portions of them as are within the city limits. Each parish has its parochial board, which levies and collects poor rates, and attends to the relief of the poor. Bach board also, for con- venience, collects the school rates, but has nothing to do with the schools, they being under the management of the school board. The amount realized from school rates is not enough to support the schools, and a small tuition fee is charged for each pupil, which the parents are compelled to pay unless excused by extreme poverty. All taxation in Glasgow for municipal purposes, excepting poor and school rates, is assessed by the magistrates, and upon real estate, as already stated, and not upon goods in warehouses, ships, stocks, bonds, money, or other personal property ; these taxes are assessed partly upon the proprietor and partly upon the occupier of each estate, the bur- den being a little more heavy upon the latter. As will be seen, a sepa- rate tax is levied for various purposes. As a fair average, a copy is herewith given of the levy for 1884-'S5. Muniaipal, parochial, and school-hoard ratUicj, 1b84-'S5. CITY PAEISH. On rents £10 and uj) wards. On rents £4 Is. and under £10. On rents £4 and under. Assessment.'^. Payable i>.y owner. Payahle hy occupier. Payable Ij.v owner. Payable occupier. Payable by owner. Payable occupier. s. d. 1 s. d. s. d. 1 s. d. s. d. 1 *6J *3 IJ -li *0i s. d. Police 1 11 3 0.i li 2' li OJ n siS 2,"„ I) ej 3 H li Oi J* 2" li 0. 0' 5,,! 2,^!, 6 is IJ Muuicipal baildinsrs, registration of births, etc., reo;istratiou of voter.s, valuation of lands, lunacy, and prison li Oi li Oi "<>'' 51! 2/„ Cess Poor Tate (on HU perci^nt. of rout.) School rate (on 80 yer CLUt. of reut) si; 2i-, 61!- 2/j SIJ 2-;-i; 1 0,^. ■2 llA ' 1 OA - 21S 1 "li 1 w,v Total asseasmenta per pound on the aevoral classod rents 3s. nivi. 3s. 3i^d. 2s. e {id. 734 EEPOETS ON TAXATION. Municipal, parocliial, and soliool-board rating, 1884-85 — Continued. BAEONT PARISH. On rents JBIO and upwards. On rents £i Is. and under £10. r On rents £4 and under. Assessments. Payable l>y owner. Payable oy occupier. Payable by owner. Payable occupier. Payable by owner. Payable by occupier. s. d. 1 s. d. ,. d. 1 «. d. «. d. 1 *6i *3 U li *li *0i «. d. Police 1 li 3 li 2i OJ li 2 lA 4 1 2 6J 3 li li Oi li 2 1,^ 0} 4| l| 2| Statute labor li li Pablic bealth City improveraents Municipal buildings, registration of bii-tbs, etc., registration of voters, vat nation of lands, andprison payment - lA, lA Poor rate (on 80 per cent, of rent) Lunacy (on 80 per cent, of rent) Scbool rate (on 80 per cent, oi rent) 4| li 2J 4S li 2% 4; li 2% 4J 1 2| llfl 2 HtV lliS 3s. 2 213 21gd. 1 10 2s. 8J Total assessments per pound on the several classed rents 3s. lOiid. 6id. GOVAN PARISH. 1 1 1 *6i, *3 1 1 li 3 li 21 oi li 2 li OJ 4 2i 6i 3 U- li Oi li 2 li 0} 4 2i Roads and bridges 14 H Public health City improvements Parks and galleries Municipal buildings, registration of births, etc., registration of voters, valuation of lands, lunacy, and prison li li Juvenile delinquency Poor rate (on 80 per cent, of rent) School rate (on 80 per cent, of rent) 3i 2i 1 •4 4 2i 93 2 9 93- 2 Oi 1 n ei Total assessments per pound on the several classed rents 3«. 63(2. 2s. lOid. 2s. 21 752 REPORTS ON TAXATION. Under the second or remunerative class the taxation of the year amounted to £1,989^375, as follows : Bemuneraiive local taxation. Total receipts &om assesBmenta. PubUc health £143,035 Lunacy - < 33,541 Registration 42,163 Burial grounds 17, 545 Valuation 8,808 School ---- 443,684 County 39,855 Roads 559,806 Ecclesiastical 43,213 District fishery 9,603 Other rates, such as sewerage, water, etc 648, 122 Total 1,989,375 Amounts received and expended hy hurgk authoritieSj 1884-'85 , Amount. Kevenue from property and common good Assessments nnder general or special police acts Asaessmenta under public health acta Assessments under other general acta ABseasments nnder special acts From Her Majesty's treasury on ac- count of pay, etc. , of police Other receipts Other sources Total receipts exclusive of loans From loans on security of rates , Total BXPBNDITURB. Public works Police Lighting, etc Drainage , "Water supply £204, 625 664, 509 83, 123 93, 826 492, 478 87, Oil 6,171 213, 309 1, 846, 052 1, 074, 386 2,919,437 112, 224 214, 427 430, 852 52, 138 180, 280 Eemoval of nuisances Hospitals Burial grounds Public libraries Artisans' dwellings Registration , Registration of voters and elections Valuation Lunacy Contap:ious diseases (animals) act.. ililitia Sheriff, court-houses Cess and land tax Weights and measures Payments under prisons act Salaries, fees, etc ContribatioBs to school board Roads and bridges Public parks Other exjpenditure : (A) Interest on money borrowed (B) Any other expenditure Total expenditure Repayments of loans Total iO, 180 Amounts received and expended hy parochial hoards^ 1884-'85. Amount. Amonnt. HEOEIPTS. £839, 383 105, 347 56, 388 trnderpoor-law acts— Continued. Cost of collection of rates other £10, 611 40, 870 Medical relief, pauper relief, treas- ury Cost of education of non-pauper 8,977 897,685 82, 661 Total 1, 001, 118 44, 691 13, 866 24,629 1,152 Total 1, 045, 809 Total 837,227 1, 019, 993 51, 032 BXPBNDITURB. Repayment of loans Total Under poor-lair aoto : Kellef and management of poor, including collection of poor-rate. 1,071,026 SCOTLAND. Amounta received and expended ly sdhool boards, 1884-'85. 753 Amount. Amonnt. RECEIPTS. £236, 038 350, 485 443, 684 38, 370 EIPHNDITUBB. £12, 085 Grovernment grants 42, 123 669, 925 26, 445 School rate Interest from endowments and other Purchase of sites sources 173 674 258, 644 Total 1, 068, 577 173, 85D Total 1, 182, 296 71, 535 1, 242, 486 Total 1, 253, 831 Amounts received and expended hy oommissioners of supply, 1884-'85. Amount. Amount. BBCEIPTS. Assessments : Countyj general, police, militia, £156,028 12, 026 65, 784 EXPENDITDRE. Payments out of county general as- sessments : Salaries, prosecutions, lunacy, etc. Payments under other acts : Militia, valuation, registrations, £32, 977 From the imperial treasury for pay of 49, 048 147, 376 233, 838 3,893 Total 233,838. 233, 294 Total 9,210 Total 242, 504 INCIDENCE OF LOCAL, TAXATION. It has been shown that so far as Scotland is concerned 61 per cent. of the direct local taxation is derived from assessment on real property. A complete revolution has taken place in the relative positions of lands and other classes of property as contributors to local taxation. While, in 1814, lands, speaking roughly, represented 70 per cent, of the total value of real property, they now represent about 33 per cent. ; houses, •which at the same period contributed only 27.84 per cent, of the total value now represent 47.27 per cent. ; while railroads and other such property which, in 1814, represented only 2.88 per cent, of the whole, now together contribute 19.53 per cent. ; therefore, if the amount of taxa- tion imposed had remained the same, a great portion of the burden orig- inally borne by lands would have been shifted to other kinds of prop- erty. But the aggregate amount of this direct local taxation has enor- mously increased, and Mr. Goschen, the present chancellor of exchequer, shows that the greater portion of it has fallen upon cities and towns, not rural districts, and is to be attributable to the increase in the poor- rate town improvements, and police rates. Irrespective of the new rates which have since been levied, there has, he says, been a marked decrease in the average rate per £1 on land, while the increased pro- portion of the new rates, being levied exclusively in towns, has fallen, not on land, but on houses. In fact, not only has the bulk of the new rates fallen on the towns, but the rate of increase in the chiet ot the old burdens has been nearly three times as great in the towns as in the country The progress in the burdens on land, in fact, for local pur- 754 REPORTS ON TAXATION. poses, has not, it is asserted, been greater than the increase in their value, as shown by the greatly increased rent lis. The poor, county, police, and highway rates show their greatest increase in manufactur- ing counties, while purely agricultural counties — except, perhaps, in the matter of education and poor rates — remain very much in their former position. In nearly all the towns and cities of Scotland, therefore, there is an ever-growing increase of local burdens. In 1880 the direct taxes were £2,941,000; in 1881-'82, £3,085,707; in 1882-'83, £3,053,132; in 1883- '84, £3,318,889 ; and in 1884-'85, £3,342,845. Excluding school-rates and poor rates the burghs alone contributed by far the greater moiety. . In the cities of Glasgow, Dundee, and Aberdeen there has been an ad- dition to the police and parochial assessments within the last nine years of about 6 pence in the £1, that is to say, in their city or principal par- ishes where population is thickest. In Edinburgh, on the other hand, there has been a decrease of about 3 pence 1 farthing in the £1 ; but, taking the entire city, the burgh rates remain very much as they were ten years ago. In what proportion taxes are usually shared, as between owner and occupier, will be seen by the annexed statement, applicable to Edin- burgh, and, to some extent, applicable also to other cities in Scotland. Occupier. Owner. Total City parisli s. a. 2 7-5 2 n «. d. 1 OS 1 o| «. d. If, St. Cuthbert's Burgh or municipal assessments provide for the expenses of all police purposes; for the repair and maintenance of public streets, roadways^ and sidewalks ; the formation and keeping in order of sewers and drains, and the liquidation of obligations incurred for general improvements^ as well as the carrying out of the provisions of certain general acts. As a rule the occupier's portion of such assessments is not leviable on properties under £5 of rental, unless (1) the occupier of such property is also the owner ; or (2) when the aggregate rental of properties occu- pied amounts to £5. The actual occupier is liable in payment of the whole burgh assessment, and is entitled to retain from the rent the whole portion falling by law on the owner, the amount of which is shown on the face of each receipt, but owners letting premises for less than a year are themselves, as well as the occupiers, responsible for the whole assessment. The municipal taxation levied on occupiers is nearly three times as great as that imposed by commissioners of supply on land-owners in counties, and it threatens to become greater. It "is not seriously dis- puted that the sums raised are in excess of actual requirements, but there is a growing opinion that some serious attempt should be made to relieve the poorer tax-payers of part of their burdens. The most practical scheme that has been suggested is that there should be a grad- uated system of levying the taxes on the diflerent classes of household- ers, a system which, it is contended, would impose an all but inpercep- tible burden on the richer members of the community, while sensibly relieving those who are at present little removed from a state of pau- perism. The rates which fall most heavily on the tax-payers, both in town and country, are the education assessment and the poor rate, both of which SCOTLAND. 75£ are imposed by tlie numberless parish authorities throughout the couu try. This multitude of petty parishes (numbering between poor aud school boards over 1,800) are each armed with the fullest powers o; taxation and disbursement, and each confines its views within its owi: diminutive territory. One in about every three parishes has fewer thai 1,000 inhabitants, and one in about every ten has fewer than 500, yoi each has its organized powers, its salaried officials, and its parliamentar.'i privileges. They are perpetually engaged in litigation with one anothei as to the "settlement" of paupers. A period of five years' residence in a particular parish, it should be explained, entitles a pauper to clain relief from that parish, and as the limits of each are by no means sharply defined, while paupers themselves are apt to be migratory ii their habits and are not provided with written testimony of their vari ous wanderings, an enormous waste of time and money occurs in settling such disputed points. There is a constant effort, therefore, to shift th( responsibility from one parish to another and, with the costliness o this proceeding and the vast number of officials employed, it is calcu lated that in Scotcli parochial boards one-eighth of the entire expendi ture is made up of the cost of management. Parishes with a population of 5,000 and upwards must provide i poor-house, or join with others in so doing, and there are 63 of sucl establishments in Scotland. The average cost of maintaining the ordi nary pauper is £8 10*. per annum. The expenditure for relief anr management is equal to 9cZ. per £1 of the valued rental. In 614 ])iir ishes the rate is equally levied on owner and occupier, but in I'JO ; "classification of ratable subjects" is adopted on the following scale (1) Dwelling-houses and shops i)ay on full rental; (2) mines, quarries market-gardens, manufactories, and railways pay on two-thirds of theii estimated annual rent; (3) lands and houses used for agricultura pui'poses pay on one-third of their annual rent. Itis thus apparent that there is a great diversity in the mode of rating adopted. With regard to school rates the complaints are great. Iilthearbi trary area rating adopted — that of the parish — no account is taken of the circumstances of the people, so that while one part of a county oi shire may pay a rate of 3 pence in the £1, another portion, immedi ately contiguous, may contribute as much as 2 shillings. Farmers make special complaint of this impost, particularly as, at the time o the passing of the education act in 1872, no account was taken of thei existing leases which were based on a calculation in which school rates formed no part. The result has been that many farmers have to pay as much as £20 or £30 additional under this head alone, on which thej had not calculated when they took their leases. Thus, while the agricultural classes are often heavily mulcted, land owners escape in many cases. Woods are, for assessing purposes valued only at what the ground covered by the wood might be supposec to let for if under pasture— say from 6 pence to 2 shillings per acre In the event of arable land being planted, the annual rental value o the soil when it was under cultivation is regarded as the basis. But th( greiat proportion of existing woods was formerly waste lands, on whicl the rating value is at present nominal, viz, 1 shilling, and after thest \vaste lands are planted the augmented value escapes taxation. Lane worth as sheep pasture, from 6 pence to 1 shilling per acre in annua rental' is worth, when planted, from 10 shillings to 15 shdhngs per acre Aeain "-rounds for shooting purposes are only valued when let to i tenant and then the rental forms the basis of taxation ; and the questioi 138— No. 99 32 756 REPORTS ON TAXATION. arises, why such property retained for the o-wner's own amusement should escape taxation. It is felt, therefore, that by an adjustment of the incidence of local taxation in the way of including woods and shootings at their full value, farmers and others would experience considerable relief. It is main- tained also that the farmer is unfairly taxed when rent, which is in part the expenses of his busitfess, is taken as the basis of assessment. It would appear that if many of the existing parishes were amalga- mated, or a uniform board established for the whole county, great saving in the cost of management and collection would be effected, while the rates themselves, instead of being extremely high in one district and extremely low in another, would be so equalized among all classes as considerably to minimize their pressure. The rates levied by commissioners of supply are so small in amount (they average about 3d. in the pound) that little need be said regarding them, the more especially as all of them fall upon the land-owners, who themselves impose them. It has been suggested that these bodies should be made representative both of owners and occupiers ; but it is to be remembered that the " county (or shire) rates" levied by them are paid exclusively out of their own pockets, and notwithstanding " taxation and representation " should, as far as possible, go hand in hand, there is no consuming desire on the part of farmers and others to take part in their deliberations, unless, indeed, representative " county boards " were formed, who should be charged with the imposition of all rates within the county. To sum up, it will be found that in Scotland the increase of direct local taxation for all purposes has been great. The figures are : Tear. Direct local taxation. Indirect local taxation (tolls, dues, etc). £2, 941, 000 3, 085, 707 3, 053, 132 3, 318, 880 3, 342, 845 «1, 014, 000 1, 079, 034 1, 185, 044 1. 122, 633 1881^'82 1882-'83 .. .. . 1883 '84 1884 '85 1, 135, 596 Being at the rate of 17s. 2d. per head of the population. A large proportion of this increase has fallen upon cities and towns rather than upon rural districts, and therefore upon the poorer and middle classes of society. Of this increase, the whole or nearly the whole is due to the poor rate, education rate, town imj)rovements, and police and miscellaneous rates. The greater portion of this increase has fallen upon houses rather than upon lands, and upon "occupiers" rather than upon "owners." WiLLOUGnBY Walling, Consul. United States Oonsxjlate, Leith, September 14, 1887. WALES. 757 WALES. LOCAL GOVERNMENT AND TAXATION AT CARDIFF. REPORT OF CONSUL JONES. An attemiit has beeu made in the following pages to deal with na- tional and local taxation in this conntry, as required by a circular issued by the Department and dated March 21, 1887. Ko excellence what- ever is claimed for the work done. But the comprehensive character of the endeavor may be pointed out. An attempt has been made to deal with national taxation, local government, area, authority, the county, the union, sanitary authorities, the parish, the municipal borough, the local board of health, valuation, the incidence of taxation, and relative questions ; moreover, the revenue and expense accounts of Cardiff have been incorporated and analyzed according to the instructions of the De- partment. Local taxation would be incomprehensible without a knowledge of local government. The officers of the latter determine, levy, and col- lect the former; and in order to make the relationship existing between the various local authorities even tolerably clear, it will be necessary to deal with the subject at considerable length. LOCAL GOVERNMENT. The reform act of 1832 marks an entirely new departure in the local government of this country, and by the enactments of 1871 and suc- ceeding years the control was largely vested in a governmental de- partment, i^resided over by a member of the cabinet, and known as the local government board. This department exercises large executive and discretionary power over the various local governing bodies, having control of pauperism, the public health, the prevention of diseases, town improvements, registration, official accounts, and returns apper- taining to local taxation, and the operations of the highways and turn- pike acts. AREA AND AUTHORITY. The country is divided in a variety of ways for the different pur- ppsesof local government, and the largest, and possibly the mostperfect unit is the county. It is scarcely necessary to say that counties differ very widely both in size and in population. Extremes in this regard are found in the county of Eutlacd, measuring 94,889 acres, and hav- ing a population of 20,"^434, and Yorkshire, with its 3,882,851 acres, and a population of 2,886,309. The counties average 717,677 acres in size, and about 500,000 in population. There are quaint subdivisions of counties peculiar to different sec tions of the country, and full of interest from an historical, but not perhaps important from the practical, point of view which we are now takino-. For instance, Yorkshire is subdivided into ridings ; Lancashire into p'arts • Sussex into rapes, and Kent into lathes. There were, also, in former 'times the hundreds or wapentakes, the wards, liberties, 758 REPORTS ON TAXATION. aud sokes, which added to the complications of local government in those days. But these quaint and curious geographical divisions belong to other researches than the present. The lord lieutenant is at the head of county ofQcers. He is appointed by the Crown for life, and is looked upon as the military representative of the sovereign within his shire. He is the keeper of the county rec- ords, appoints the clerk of the peace (of the county magistrates), and nominates the county magistrates, who are appointed by the lord chancelor. The lord lieutenant is always a leading landed proprietor in the county. Next in rank comes the high sheriff, who is appointed by the Crown, or, more strictly speaking, by the government of the day, and holds ofiBce for one year. He is supposed to represent the sov- ereign within the county in a civil capacity. He is responsible for the election of coroners, and is in attendance, as head of the county police, upon the judges of assize, when holding court within the county of his shrievalty. The county magistrates, as already indicated, are appointed by the lord chancelor upon the nomination of the lord lieutenantof the county. They are liable to dismissal by the appointing power. They are des- ignated as the "great unpaid," and are appointed chiefly because of their social position in the county. Only a small proportion of the county magistrates attend to the multifarious duties which devolve upon them. In the administration of justice, when assembled in quarter sessions, under the presidency of the chairman elected by themselves, they have criminal jurisdiction extending to all offenses excepting a few of the most aggravated, which are reserved for the superior courts of assize, pf the minor functions of magistrates, some can be per- formed by a single member, others by two sitting at petty sessions. But the magistrates assembled at quarter sessions exercise a general control, by way of appeal or revision over the action of individual magistrates, or of magistrates at petty sessions, and the standing committees of quarter sessions, through which they conduct most of their business, are practically so many little departments of state for the legal government of counties. Lord Edmund Fitzmaurice, in a valuable pamphlet on the areas of rural government, enumerates the administrative duties of justices in counties in the following schedule : Adulteration of food and drink. Bridges. Contagious diseases (animals) : Committees. Inspectors and officers. Appointment and removal of. Coroners : Division of the county iutp districts. Fees. County property. Management of. Fish conservancy. Highways. Formation of districts. Jails. Visiting committee. Appoint- ment of. Judges' lodges. Building. Licensing public houses, pedlers, and lo- comotives. Lock-up houses. Providing. Lunatic asylums: Appointment of. Committee of visitors. Granting license for. iPrivate. Public. Appointing. Luantic asylum — Continued. Public. Providing, generally. Regulations and management. Visitors, etc. Main roads, contribution of a moiety of cost of maintenance ; making of by-laws for main roads and high- ways for the form of the acts, and' in some cases for the audit of the accounts of the highway authori- ties. « Petty sessional division : Altering and forming new divisions. Providing court-houses and settling clerk's fees. Police force. Establishment of. Police. Registration of voters. Payment of ex- penses. Schools (industrial). Providing. Schools (reformatory). Providing. Shire hall, etc. Rebuilding. WALES. 759 Slaughter-house. Granting licenses. Union of liberties with counties. Power to make. Union of extra parochial places with parishes. Order for union. Vasrancy, prevention of. Valuation and assessment of the county for the county rate. Weights and measures : Providing copy of standards, and ap- pointing inspectors. Wild fowl : Preservation of. Quarter sessions may apply to home secretary for variation of period for killing wild fowl. Next to the county, the poor law union is the most important area in all that appertains to local government. There are in England and Wales 649 unions, having control not only of pauperism but constitut- ing a basis for dealing with sanitary administration in country districts. They are capriciously formed, often extending beyond the boundaries of counties, and not unfrequently overlapping their own supposed boundaries. There are about 200 unions which are situated partly in one county and partly in another. The poor law union is administered by a board of guardians. This authority ranks next to the quarter sessions in importance in the local government of rural districts within the county. The board of guard- ians is composed of ex officio and elective members, theej? officio mem- bers being county magistrates residing within the Union, and the elect- ive members being those chosen by the union electorate. The ex officio inembers or magistrates must not exceed one-third of the whole of the members of the board of guardians. This board constitutes a delibera- tive assembly, while it also administers the affairs of the union for the maintenance of the poor and sanitary arrangements. Mr. R. S. Wright says : The union collects its funds (and also the county rate) by means of omers upon the overseers of parishes. Nevertheless the union must be regarded as being in substance the rating authority in relation to the poor rate, because it controls the valuation, en- forces the collection, and determines by far the greaterpart of the expenditure wbich is defrayed out of that rate. There is now (special sanitary expenditure excepted) hardly any part of this expenditure which is not borne by the common fund, which was instituted in 1834 for work-house and establishment purposes, but on which there has since been thrown, practically, the whole cost of poor relief, valuation, registra- tion, vaccination, and (in rural places) all general sanitary purposes. The guardians are elected on the 7th and 8th of April. The electo- rate consists of owners and occupiers of houses. Voting papers are left with the voters, collected on the following day, and the plurality elects. The qualifications of candidates for guardians varies from £15 to £40 rating valuation in different unions. The parish is the simplest area for the purposes of local government and taxation. In olden times this subdivision had the parish church for its center, and the incumbent of that church as its controlling spirit. But the influence of the parson has gradually declined, and the area of parishes has been subdivided, with the result, of course, that civil par- ishes exceed the ecclesiastical parishes in numbers, the former being 15^00, while the latter number only 13,000. But, as Mr. Brodrick says: The independence of civil parishes has been rudely infringed of late years by the creation of unions with superior power of poor-law management, by the subsequent introduction of union cbargeability, by the substitution of county police for parish constables, by the gradual subjection of parish roads to highway boards, and by other steps in the d'irection of centralization. The overseers are the parish ofScers, and are appointed by the jus- tices on the 25th of March of each year. They are intrusted with mak- ing the rates within their various parishes according to the require- 760 REPORTS ON TAXATION. merits of the parisli, the union, the highway board, and the sanitary authority ; that is to say, the overseers aggregate these several require- ments, and assess them upon the valuation for which each hereditament figures in the parochial list as issued by the assessment committee. The parochial vestry is supposed to be the governing body of a' par- ish, while the clergyman is chairman of the vestry. But the duties of the body are nominal, and the authority of the head of the state church is very naturally resented, especially when the non conformists are in a majority, and is fast passing away. Highway boards may have control of the highways of the parish, or a combination of parishes. The highway rate is levied and collected in conjunction with the poor rate; the sum required being sent by the highway board to the overseers of parishes, who make the levy and the collection accordinglj^. Excluding for the present corporate towns and urban sanitary author- - ities, it may be said that the county, which is the largest area for the purposes of local government and taxation, embraces an area equal to a circle of IS miles radius, and the union, the next largest district, a circle of about 5J miles radius, while the parish averages an area esti- mated at about 1^ miles radius. The country is divided into sanitary areas. Towns of over 6,000 in- habitants constitute urban sanitary districts, administered by the of- ficers of such towns whether corporation ofl&cers or commissioners. Eural sanitary districts, where coterminous with the poor law unions, are under the authority of the union or board of guardians. The local government board can unite small districts together and form urban sanitary districts even with a population of less than 6,000. These sanitary authorities deal with the character and construction of build- ings, the cleansing and watering of streets, with nuisances, offensive trades, infectious diseases, and occasionally with the supply of gas and water; and the sanitary authority is ordinarily the burial board of the district. The rural district is taxed for general expenses.. Where the corporate town constitutes an urban sanitary authority, all the expenses incurred by that authority in the discharge of its various duties are levied upon the borough rate. lu towns under commissions the cost is borne " by any rate leviable by them, and it is provided that limits im- posed on ordinary town rates shall not apply to rates for sanitary pur- poses." The important governing bodies remaining to be noticed are the mu- nicipal boroughs, numbering some 240, and the local boards, number- ing about 800. The municipal boroughs have complete powers of local government, and have control of the police and the administration of justice within the municipality through magistrates' courts. Boroughs are divided into wards, which send two or more councilors for each ward to represent them in the town council.^ Councilors are elected for three years and are eligible for re-election. The councilors elect aldermen in the proportion of one-third of the number of councilors. Aldermen hold their office for six years and are eligible for re-election. The town council, consisting of aldermen and councilors, elect a mayor, who serves the borough for one year. Elections of councilors take place on the 1st day of November, and the mayor and aldermen are elected on the 9th of the same month. Thus it is that the councilors are elected by the people, the aldermen by the councilors, and the mayor by the aldermen and councilors. The mayor receives a nominal salary ; the aldermen and councilors are unpaid, WALES. 761 CORPORATION OFPICIALS. All the adairs of tlie corporation are uiauaged by the council, and committees by it appointed, excepting in the case of the free libraries and museums committee, where it as provided by act of Parliament that persons not members of the council may serve upon such committee without salaries. The police force is appointed and controlled by the council through the watch committee. The permanent and paid officers of a cori^orate town consist of a town clerk, who keeps the records of council meetings and transacts legal and parliamentary business; a borough treasurer, who is responsible for receipts and i^ayments ; a borough surveyor, who has charge of the roads, streets, lighting, water- works, and other public works ; a medical officer of health, who looks after the sanitary affairs of the town; ac inspector of nuisances; and a chief constable, who, under the watcl committee, has charge of the police force. These constitute the genera] staff of an ordinary corporation, but in large towns there are other paid functionaries. The cost of municipal affairs is defrayed out of the borough fund, composed of the income derived from property, which is very large in many cases, supplemented by a local rate. This is determined by ascer- taining the value of ratable property and apportioning upon such value ' the sum required, and calleel the general or borough rate. > The rate is collected by the overseers of the poor of the various parishes in the town, and paid into the borough treasury. The school rate is included in the borough rate and is, of course, collected with it. Municipal corporations have power to borrow money for municipa purposes, such as cemeteries, asylums, baths, hospitals, sewerage, in dustrial schools, libraries, public buildings, and iuiproved dwelling houses known as industrial dwellings, and the interest of such loauf are paid out of the general rate. Moreover, power may be obtainec from Parliament for borrowing money for the construction of docks harbors, and jjiers, etc. Contributions towards the funds of boroughs are made by the Genera Government in this way : By grants amoimting to half the pay of the police force on a certain certificate o eiHciency being given by a general inspector; second, half the salary of the medica officer of health on condition of certain returns being made to the local governmen board, and of the board having a voice in the appointment and removal of such offi cer; and, third, in payment of part of the cost of criminal prosecution in boronghi having no separate quarter sessions, the cost of any such cases being dependent npoi taxation by the treasurer. Local boards exercise authority in towns and districts under th( public health and local government acts of 1872 and 1875. The mem hers of local boards have no designating titles ; their functions are con fined to the maintenance of roads and streets, the control of sauitar;; arrangements, care for the public health, prevention of nuisances, an( in some cases they provide gas and water for the community. Loca boards have no authority over the police and no concern with the ad ministration of justice, being in this regard merged in the county gov ernment. THE COUNTY OF aLAMORGAN. For the further elucidation of the subject it is, perhaps, desirabh to deal with the local taxation of this district, or, more properly speak ing of the county and poor law unions of Glamorgan and the borougl of Cardiff. 762 . REPORTS ON TAXATION. The county of Glamorgan is by far the richest and most populous in the principality of Wales. It embraces an area of 547,070 a! res, is rich in minerals, but especially in coal. It had a population in the year 1881, the last census year, of 511,672. According to the owners and heritages return, made some thirteen years ago, the county was divided among 8,426 landed proprietors, holding together 428,386 acres of land, with a gross estimated rental of £1,609,397. The difference between the entire area of 547,070 acres and the acreage of 428,386 embraced in the estates mentioned consists of commons and waste lands amounting to 118,684 acres. The number of proprietors to the area is misleading, for 78 per cent, of them possess less than 1 acre, of the average value of £3 18s. per acre. The great bulk of the land is held by sixteen pro- prietors, each with not less than 5,000 acres. The lord lieutenant of the county, Mr. C. E. M. Talbot, M. P., is the largest landed proprie- tor, his possessions measuring nearly 37,000 acres. Then follow, with gradually diminishing estates, the Earl of Dunraven, the Marquis of Bute, Lord Windsor, the Earl of Jersey, and others. A standard valuation for the county, for the purpose of the county rates, amounts to £2,584,494. This valuation is made by a rating authority, or professional valuer, under the supervision of the county magistrates. The system observed is, actual value less 7J per cent, on houses, less 2J per cent, on land, and less estimated depreciation upon manufactories. Mines are valued for the purposes of taxation by de- ducting the cost of production from the price realized for the mineral ; the rate is levied on the difference. The county taxation embraces the county rate, the police rate, and the county roads rate. These rates are levied quarterly according to the estimate of expenditure, and vary, or are liable to vary, with each sessions or quarter. For example, the county rate, ordered at the mid- summer sessions, was ^d. in the pound, and the police rate f(?. in the pound. The rates ordered at the other sessions were as follows : Michaelmas : County rate, ^d. in the pound ; x'olice rate, ^d. in the pound. Epiphany : County rate, ^d. in the pound ; police rate, ^d. in the pound. Easter: County rate, ^d. in the pound ; police rate, fd. in the pound. The county roads rate, ordered at the Easter sessions of 188G, for the year, was ^e^. (one-sixteenth of a penny) in thepouud. The total rates for the four quarters on account of the county rate was £18,845 4s. 11(7. The police rate for the same twelve months amounted to £1,326 2s. 3d, The police rate is supplemented by the General Government by pay- ments amounting to half of the expenses of pay and clothing of the county police. There are other allowances made from the national ex- chequer on account of the police ; and attention is directed to the Ap- pendix for complete particulars of receipts and expenditure under this head. The county roads rate, £224 6s. lid., is supplemented by the treasury to the extent of £(J42 13s. Gd. The county is also reimbursed by the treasury for expenses in conveying prisoners to goal, the prose- cution of felons, on account of lunatic asylums, etc. The fees paid to the clerk of the magistrates' court amounted to about £2,000 a year, and other receipts go to increase the income for county purposes. Complete particulars as to receipts and expenditure connected with the county Avill be found in Appendix A. The details are so full that elaborate explanations are unnecessary and would but tend to confuse. The county authority or government of Glamorganshire has con- tracted a considerable debt by borrowing at rates ranging from 3^ to 4J WALES. 763 per cent. The total indebtedness at Michaelmas of last year amounted to £135,665 9s. The Cardiff poor law union is not coterminous with the borough of Cardiff; it even extends beyond the county border of Glamorgan into the adjoining county of Monmouth. It consists of 45 parishes ; and the affairs of the union are controlled by the board of guardians, consist- ing of 39 ex officio and 62 elected members. The Cardiff union contained a population of nearly 110,000 in 1881, and the ratable value was £819,845. The contributious of the various parishes toward the maintenance of the poor and union expenses dur- ing the half year ended October 1, 1886, was £20,403 lis. 4(Z., being a little less than 6cZ. in the pound on the ratable valuation for the half year. To this must be added repayment from Her Majesty's treasury for the maintenance of lunatics, £2,126 4s., together with other items and repayments amounting to £1,576 18s. 2d., making the total receipts for the year £24,106 13s. M. The expenditure for maintenance of indoor and outdoor paupers and the education of pauper children during the same half year amounted to £8,809 5s. 4^. ; maintenance of lunatics, £3,843 14s. bd. ; loans repaid and interest on loans, £1,858 15s. 9(Z. ; salaries, rations, and superan- nuations to ofi&cers, £2,204 9s. ; general expenses, such as rates and taxes, printing, furniture, repairs, stationery, medicine, prosecution ex- penses, etc., £2,058 5s. 10(7. ; assessment committee expenses, £1,473 M. ; vaccination fees, £305 17s. 9(7., and registration fees, £224 18s. 6(7. If we add to these some election and traveling expenses, and other minor charges, we reach a total of £24,106 13s. 6(7., agreeing with the item of receipts. The receipts and expenditure for the half year in further details are here inserted : ExpenMiure. £ s. d. £. da. In maintenauce 4,301 16 10 Out relief 8,351 4 11 Non-resident poor relief 215 6 Eduoationof outdoor pauper children 179 o Maintenance at institutions 63 14 8, S09 5 4 Maintenance and removal of lunatics -_ ■--- 2,843 15 7 Installments of loans repaid 729 12 4 Interest on loans I,l;i9 3 :> „^„ ^^ „ 1,858 15 9 Salaries of officers 1.J82 15 Eationsof officers ^yO lo 1" Superannuations 13U 1() b „ g^, „ „ Kates, taxes, gas, and-water ,^3 15 2 General charges, printing, etc •i'^i " ^ Furniture account : . . Work-house -5 it o Schools : '^ "■' ■^ Repairs account: oin ia r Work-house tm q in Schools ^^0 -^^^ Stationery account: ., „ . Work-house 2^ j ^ Schools ... A Medicines account, work-house r -la h Surgery account, work-houso ^^^ '■^ ^ Dispensary account 26 11 6 ProaecuticJn expenses 88 18 5 Eemoval expenses - • 764 EEPOETS ON TAXATION. £ s. el. £ 8. d. Subscriptions to institutions aO Candidates' traveling expenses 2 8 2, 058 5 10 Vaccination fees 305 17 9 Registration fees 224 18 6 Assessment committee expenses 1,473 8 Electionof guardians expenses 26 8 3 24, 106 13 Receipts and credits lidlf year ended October 1, 1886. £ s. (f. £ ». d. Repayment to Her Majesty's treasury : Grant in respect to maintenance of lunatics 2,126 4 Work-house : Bakery account (profit) 20 3 3 Land account (profit) 27 5 4 Stone account (profit) 12 4 Oakum account (profit) 3 14 10 Fire-wood account (profit) 36 1 3 88 7 Scliools, land account (profit) 28 12 10 Soliools, pig account (profit) 22 13 6 51 6 4 Repayments on account of maintenance ot^ — Indoor paupers 156 4 2 Outdoor paupers 677 19 8 Lunatics 583 15 6 1,417 19 4 Snndry receipts 19 5 6 Balance apportioned among the parishes at 5.9729rf. in the pound on the ratable value, as per valuation lists in force, particulars of which may be seen in the tabular statement at the end 20,403 11 4 24, 106 13 6 From the above statement it will appear that the total expenditure of the union for all purposes, excepting county rates and some special charges of small amount, ia met by a rate of a little less than 6rf. in the pound for the half year. It has already beeu stated tliat the money required by the county authority aud by the poor law union, or board of guardians, is levied and collected by the overseers ; and for the better understanding of this feature in local taxation, the following account, appertaining to the par- ish of St. Mary, in which this consulate is situated, is here inserted : PARISH OF ST. MARY. The overseers in account viitli the parish. Ealiuice in hand at commencement of ha^iyeiir Kcceived from tbe poor rato Government grant in lieu of rates - . . EXrENDITURBS. Contributions paid to — Treasurer of board of guardians .. Borough of Cardiff (borough rate) Treasurer school board Expenses of parliamentary registra- tion Costs of jury list Overseers' Ijoolss and sta- tionery Postage and receipt stamps Magistrates' clerk's fees.. Kent of overseers' offices . Rates, cleaning, fires, etc., at same - Miscellaneous expenses... Salary of vestry clerk JBalance in hand at end of half-year. S, c. d. WALES. 76i The dtici-rdlans in account with the parish. IIECEIPT8 Balance in hand at commencement of half year Eeceived from overseers under con- tribution order Income from parish property Disallowances against overseers Eeceived from ps.rliamentary grant - in respect of expenses of registra- tion of voters Snrcharge on collector by auditor, viz: Ocean and General Gnaranty Company, amount of gnaranty. J". D. Wride, collector, balance of surcharge s. S. d. 1,758 1 6 6,90D 8 110 16 4 10 i 8 1,000 277 11 2 10, 056 8 6 EXrEXUITUliES. Common charges apportionedaccord- ing to ratable value County rates Education of non-pauper children (fees paid) Election of guardians expenses Salary of collector R. W. "Williams, legal expenses Balance in hand at end of half year. 6,881 18 1 48 157 10 1 7 , 816 13 : 10, 056 The Cardiif corporatioa constitutes the urban sanitary authority and the area of the sanitary district is identical with that of the boroug of Cardiff. The expenses of the sanitary authority are borne by a rat levied by the authority and known as the general district rate. Th entire expenditure under this head for the six months ending last Sej tember amounted to £25,657 3s. Id. This total is made up of scaven| ing and water, street pavements and repairs, public improvements maintenance of highways, crossings and sewers, water for flushing pui poses, public lighting, interest on loans, and a proportion of the sa aries of the borough officers, together with printing and other inc dental expenses. Against the total stated there is a credit item, o account of rents amounting to £1,507 14s. 4(Z., leaving a balance c £24,149 9s. 3., coffee in Guatemala, 59. Ireland, Cork, taxation in, 730. tax, corporation, 731. county, 731. local, 730. poor-law, 731. Italy, Florence, taxation in, 529. tax, building and land, 529. family, 5Sl. ' municipal, 532. Leghorn, finances of, 546. taxation in, o44. Milan, effects of taxation, 556. finances of, 555. taxation in, 553 tax, city, 554. direct, 553. Naples, finances of, 539. taxation in, 533. tax, municipal , 538. proviifcial, 538. state, 533. Palermo, duties in, 548. taxation in, 547. tax, building, 550. direct, 547. income, 550. indirect, 547. land, 550. taxation in, 514. tax, collection, 526. communal, 520. discretionary, 520. G-overnraent, 517. octroi, 516. provincial, lj*0. state, 514. Jamaica, eotlee in, 40,110. Jiissen, I;]dmund F., taxation in Austria, 260. Jobnson, Edmund, taxation in Alsace-Lorraine, 451. Jonas, Charles, taxation in Bohemia, 281. Jones, Evan E., taxation in "Wales, 757. Juridic controla in Prussia, 411. Kimball, C. P., taxation in Wurtt luberg, 508. La Guayra, coffee in, 23, 102. LaUemant, J. A., coff'ee in San Cristobal, 100. Lambayeque, coffee in, 89. Lang, W. W., coflfee trade of Europe, 140, 489. Languor, Albert, coffee in Tehuantepec, 52. La Paz, cofiee in, 48. La Point, Alfreil, coffee in Lambayeque, 89. Lathrop, Lorln A., taxation in England, 658. Leipsic, homes of working people in, 210. Loening, Albert, taxation in Bremcu, 455. Magdeleno, Jop6 P. y, coflfee iu Trinidad, 120. Man, Ernest A., taxation in Sweden, 614. llaracaibo, coffee in, 22, 94. ilarstoD, H. C , taxation in Malaga, 612. Mason, Frank H., taxation in Mar^fiUes, 395. McCall. Charles R., coffee in Santos, 09-77. McDowall, i. C, taxation in Piraeus, 511. Mcr.arr, Owen A., coffee iu Ecuador, 87. Merits and demerits of Berlin's financial system, 421. Minas Geraes, coffee in, 15. Morlan, Albert E., coffee iu British Honduras, 85. Mueller, Jacob, taxation in Prussia, 432. Murphy, George H., taxation in Saxony, 476. Nature, origin, and development of Prussian law, 409. Netherlands, Amsterdam, finances, 570. revenue receipts, 577. budget of North Holland, 569. conversion of the Dutch debt, .'j80. excise duties, 578. public taxation, 559. taxation in, 557. tax, local and provincial, 564. Nicaragua, coffee in, 33, 64. Osnabriick, homes of working people, 256. Panama, coffee in, 93. Paraguay, coffee in, 89. Partello, D. J., taxation in Dusaeldorf, 484. Pernambuco, coffee in, 14. Piatt, John J., taxation in Cork, 730. Plumacher, E. H., coffee iu Maracaibo, 94. Polachek, Max, taxation in Belgium, 314. Ponce, coffee in, 124. Porto Rico, coffee in, 38, 120. Prague, revenue and expense account of, 288. Pressure of taxation upon business and industry in Austria, 273. Principles of organizing administration in Prus- sia, 414. Prussian legislation as to a reform, 412. Public debts of Europe, 260. Puerto Cabello, coffee in, 25-105. Kaine, F. , municipal administration of Berlin, 406. Eawicz, Joseph, taxation in Poland, 582. Kecent progress of foreign trade, 145. Eehbein, M., coffee in Tovar, 108. Reichenberg, finances of, 280. Reimer, Otto E., coffee in Cuba, 116. Relation of Berlin's government to the state, 416. Rio de Janeiro, coffee in, 5, 71. Rogers, Professor, taxation, 715. Romberg, J. G. Nunez, coffeo in Cumana, 105. Roosevelt, George W., taxation in Gironde, 369. Rouen, finances of, 394. Rnatan and Truxillo, coffee in, 64. RuBsell, Charles T., taxation, national and local, 692. Russia, budget of, 1887, 603. finances of, 593. Poland, taxation in, 582. tax, direct, 582. indirect, 589. maintenance of public in- stitutions, 590. municipal, 591. public debt of, 610. Ryder, Henry B., taxation in Denmark, 323. Salvador, coffee in, G6. San Benito, coffee in, 49. Sau Cristobal, coffee in. 100. San Domingo, coffee in, 39, 137. San Juan, coffee in, 125. Santos, coffee in, 77. Sao Paulo, coffee in, 8. Sawyer, Moses H., coffee in Trinidad, 112. INDEX. 791 Scotland, Edinbnrgli andLelth, tax, direct, 743. indirect, 744. local, 748. . .. national, 742. taxation m, 732. tax, imperial. 736. Shackelford, H. A., taxation in France, 382. Slade, William, direct taxes of Belgium, 299. Smith, James Heniy, homes of German working people, 175. taxation in Mayence, 499. Smith, Jasper, taxation in Newcaatle-upon-Tyne 695. Spain, Malaga, taxation, 612. Sphere of administration in Pruasia, 412. Stcnart, John H., taxation in Belgium, 291. Strashttrg, homes of ■working people in, 228. Sweden, tax, local, 615. national, 614. Switzerlftad, Basle, taxation in, 627. tax, income, 628. inheritance, 629. municipal, 629. property, 628. canton of Berne, taxation in, 620. tax, direct, G20. indirect, 621. city of Berne, taxation in, 625. federal expenses, 620. St. Galle, taxation in, 631. taxation in, 618. tax, special, 618. Talais, taxation in, 633. Zurich} finances of, 645. taxation in, 634. tax, amounts collected, 638. building, 641. cantonal, 634. dog, 641. Inheritance, 639. law, cantonal, 634. ]aw. municipal, 643. Switzerland, Znrioh, tax, license, 614. military, 639. municipal, 642. Tampico, coffee in, 60. Taxation. {Seo under each country.) national and local in England, 658. of coflfee in Brazil, 15. Tehuantepec, coffee in, 52. Thompson, John E. "W., coflfee in Haytl, 12T Tovar, coffee in, 108. Trinidad, coffee in, 112. Trinidad de Cuba, 120. Tuxpan, coffee in, 53. UnderhiU, George E., coffee in ©iudad Bolivar, 104. Underwood, F. H., taxation in Scotland, 732. "Cnited Kingdom, finances of 1887, 672. Uruguay, coffee in, 94. Vera Cruz, coffee in, 2(M9. Vifquain, Victor, coffee in BarranquUla, 83. Viosca, James, caffee in La Paz, 48. Von Versen. F., taxation in German Empire, 424. Wales, area and authority, 757. Cardiff, taxation in, 757. distribution of taxation, 769. Glamorgan, 761. local government, 757. tax, imperial, 771. impost, 771. internal I evenue, 773. income, 774. Walker, John F., coffee in Republic of Colombia, 90. Walker, Lncien J., taxation in Dunfermline, 741 Waller, Thomas M., taxation in London, 650. Walling, WiUoughby, taxation in Edinbuiirh, 742. Wigfall, F. H., taxation in Leeds, 678. Williams, Charles P., taxation io Rouen, 389. Wills, Charles H., coffee in Nicaragua, 64. Winchester, Boyd, taxation in Switzerland, 018. Wingflbld, J. Richard, coffee in Costa Rica, 64. Wolf, Elias, coffee in Arecibo, 123. '5^5sMi^,*%^' Vv:^^-^ '..^*r i^^i^'i'*.* w-^jm. ^*n . ^ >:;?i