of the English fiscal system which grew up in the
19th century. The part of the system most criticised was the very narrow
list of dutiable articles. Why, it was asked, should a choice be made of
certain objects for the purpose of imposing heavy taxation on them? The
answer has been that they were taken as typical of consumption in
general and were easily supervised for taxation. Moreover, the sumptuary
element is introduced by the policy of putting exceptionally heavy
duties on spirits and tobacco, with lighter charges on the less
expensive wines and beers. Facility of collection and distribution of
taxation over a larger class appear to be the grounds for the inclusion
of the tea and coffee duties, which are further supported by the need
for obtaining a contribution of, roughly speaking, over half the tax
revenue by duties on commodities. The last consideration led, at the
beginning of the 20th century, to the sugar tax and the temporary duties
on imported corn and exported coal.

As a support to the great divisions of income-tax, Death Duties, Excise
and Customs, the stamps, fees and miscellaneous taxes are of decided
service. A return of L9,000,000 was secured by stamp duties.

In recent years the so-called "non-tax" revenue largely increased, owing
to the extension of the postal and telegraphic services. The real gain
is not so great, as out of gross receipts of L22,000,000 over
L17,500,000 is absorbed in expenses, while the carriage of ordinary
letters seems to be the only profitable part of these services. Crown
lands and rights (such as vintage charges) are of even less financial
value.

One cardinal principle of the greatest English finance ministers has
been the avoidance of deficits or undue surpluses. Gladstone's
inheritance of doctrine from Peel "was to estimate expenditure
liberally, to estimate revenue carefully, to make each year pay its own
expenses, and to take care that your charge is not greater than your
income." This method of treatment requires that taxation shall be
productive in yield, and that it shall be so elastic as to admit of
expansion, a function specially assigned to the income-tax. It may also
be said to involve due care in the treatment of the national resources.
The reaction of ill-chosen taxes on industry is a hindrance to their
productiveness and their growth.

AUTHORITIES.--The constitutional historians--Stubbs, Gneist,
Hallam--deal with the legal and constitutional aspect