This

that the remainder is paid by the consumer. is, in part, true, but I think not by any means to the extent that it is true of indirect taxation. He whose actual property is taxed, cannot raise the price of his commodities, with such accuracy as the merchant, but must bear his proportion without the ability of so readily shifting it upon another. Hence, direct taxes, if equally imposed, are commonly more just; that is, they derive the support of government from the individuals, more in proportion to the degree of benefit which each derives from the government.

In favor of direct taxation, it may also be added, that it is decidedly more in harmony with the genius of a republican or representative government. Such a government, proceeds upon the principle, that the people are the fountain of power, and are competent to govern themselves. Now, such a government ought not, surely, to act upon the directly opposite principle, that the people ought not to know what they pay, or when or how they pay. They are the party, from which, specially, nothing of this sort should be concealed. They should know what, and how much, they contribute; and, also, in what manner, whatever they contribute is expended. It is in this knowledge, and in the judicious use of it, that their safety consists. To me, therefore, the consideration, so frequently urged in favor of indirect taxation, that the people do not feel it, is one of the strongest arguments against it. The more a people. feel taxation, and the more jealously they watch over the public expenditure, the better it is for them and for their rulers.

Of the principle by which taxation should be regulated.

I have already stated that the several members of a society, should be taxed in proportion to the benefit which they receive from a government. Thus, if a government protects for one man, one hundred thousand dollars' worth of property, and for another only one thousand dollars' worth, the former should

pay one hundred times as much towards the public expenses, as the latter. So far as this is evidently just. But it may be questioned whether justice might not go somewhat farther, inasmuch as, a percentage of his income, which would not abridge even the luxuries of the rich, might materially curtail even the necessaries of the poor. But whether the rich ought to be taxed more than a pro rata proportion or not, I think it evident, that taxes should be so arranged, that individuals should, in so far as possible, pay in proportion to their property; that is, in proportion to the amount of protection which they receive of the government. Now, inasmuch as indirect taxation, if laid indiscriminately, would apportion the public burden on no such principle, it is evident, that such taxation, should be made discrim inately; that is, that articles of necessity should be either exempt from taxation, or taxed very lightly; and articles of luxury, or those used chiefly by the rich, should bear the greater part of the burden.

This would lead us to the following conclusions: 1. Property below a certain amount, might very properly be exempt from taxation.

The poor man's clothes and bedding, his cow and his pig, should never be enumerated among taxable property.

2. The necessaries of life, if taxed at all, should be taxed at the lowest rates. Of these, the rich and poor must consume nearly equal quantities. But they consume only a fraction of the rich man's income, while they consume almost the whole of the poor man's earnings. A tax on bread stuffs, fuel, coarse clothing, or iron, diminishes, essentially, the comforts and even the necessaries of life, of a very large proportion of every community.*

It is somewhat singular, that, with a surplus revenue on hand of forty millions of dollars, we are at the present moment, in this country paying a duty of six cents a bushel on imported coal, from five to eight cents per pound on candles, four and five cents per pound, on cordage, three and a half cents per square yard, on cot

3. Taxation should be the heaviest upon articles of luxury and ostentation; not for the sake of interfering with these modes of pursuing happiness, but because those who are able to expend in this manner, would not in any other manner pay their pro rata portion of indirect taxation and they are able to bear, with the least inconvenience, the expenses of government. The conveniences of living, and the means of accumulation, should bear the next portion of the burden. He who is able to furnish himself with the conveniences of living, is always able to pay a portion of the expenses of government; and he who possesses means of accumulation, can always devote some part of that which is annually accumulated, to pay for the protection which he receives. Thus, carpeting, is a more fit subject for taxation than bread stuffs or fuel. Thus, also, a farmer's wagon, or a merchant's ship, may justly be taxed, but they ought not to be taxed in the same proportion as a gentleman's coach. I have spoken of the expenses of civil society, as a public burden. It ought, however, to be remarked, that this is one of the burdens which a good citizen should be the most willing to sustain; as it is a mode of expense, for which he receives a most abundant equivalent. If any one doubt this, let him ask himself, what

ton bagging, from ten to thirty dollars per ton, on iron, ten cents per bushel on salt, one dollar and fifty cents per one hundred and twelve pounds, on steel, and four cents per pound together with forty per cent. ad valorem, on wool. And, what is still more surprising, while the best land in the world, in the vicinity of navigable waters, may here be had for one dollar and twenty-five cents per acre, we are importing bread stuffs from every port in Europe, flour is at ten or eleven dollars a barrel, and we are paying a duty of nearly twenty-five cents a bushel on wheat, and fifty cents a hundred pounds on flour. These are all, absolutely, necessaries of life, and by far the greater part of the consumption of them, must be among the poor. On the contrary, coffee, tea, dried fruits, and spices are admitted duty free, and wine and silks at the very lowest duties. And this is at a time when all the articles of prime necessity are excessively dear. To render evident either the wisdon or the justice of such a policy, would require a great many words. I fear it could not be done by arguments.

expense would be necessary to secure for him, and his property, that protection which he now receives in return for the trifling sum which he pays in taxes. The sum paid for the necessary expenses of civil government, is very trifling, when compared with that which is annually expended in journeys of pleasure, in luxuries of the table, in ornaments of dress, nay, in profligate amusements and vicious indulgences. Every good citizen, while he is under obligation vigilantly to watch over the manner in which public money is appropriated, is bound to contribute, cheerfully and liberally, for every purpose required by the public good.

It will scarcely be necessary to add, after what has been said, that a surplus revenue is a public nuisance. It gives to the government a control over the monetary affairs of the country, at the best, dangerous; and a control which is very liable to be exerted for the promotion of party purposes. It hence gives an additional, an unnecessary, and a dangerous power to a majority, and gives them the means of perpetuating that power, indefinitely. It is taking productive capital from the hands of the owners, and vesting it in hands where there is every temptation to spend it uselessly, if not viciously. The world has never yet seen a government so pure, that it would not become corrupt, if a surplus revenue were permanently placed at its disposal.*

*Of that portion of the late surplus revenue which has been distributed among the states, the greater part has already been appropriated to internal improvements of very doubtful utility. No man can look upon such a waste of property without pain, especially when he remembers, that these millions were raised by obliging the poor man to pay a higher price for his coat, his axe, his loaf of bread, his salt and his fuel.

SECTION II.

OF THE PURPOSES FOR

WHICH THE PUBLIC REVENUE IS COMMONLY EXPENDED.

The funds of the public, after they have been collected, are most commonly expended for some or for all of the following purposes. The support of Civil Government; Education of the people; The maintenance of the institutions of religion; National improvements; Pauperism; and War. Of these, we shall now proceed to treat in their order. The principles which we have already illustrated, will, however, render it unnecessary to consider them at great length. A few remarks upon each, will be all that we shall here attempt.

I. Of expenses for the support of civil government. This is by far the most necessary of any of the objects of public expense. Without government there could be no society; and without society, there could be neither redress of wrong, nor security of property. But government cannot be administered without officers, and no one will devote himself to the discharge of the duties of civil office, unless he be paid for it.

The principles which should govern this branch of expenditure, are therefore few and simple.

1. Economy requires, that precisely such talent should be employed, in the various offices of civil government, as may be necessary to insure the discharge of the duties of each office, in the best possible manner. Many of these offices, can only be discharged successfully, by the first order of human talent, cultivated by learning and discipline, and directed by incorruptible integrity. Now it is certainly bad economy, to employ inferior talent to do badly, that which can only be of any service when it is done well.