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So long as the development was purely commercial all THE JUSTIFICATION OF INTEREST.
changes made in the tariff were for revenue purposes,
and it was not till the close of the war of 1812, when

'HE question, Is it right to take interest ?-once the industrial conditions following the Revolution were repeated on an exaggerated scale, that protective the Annals of the American Academy of Political

is rising again to exercise the consciences of men. In legislation was again sought."

and Social Science, Mr. Arthur T. Hadley writes

with the aim of showing “ that the justification of THE INCOME TAX.

interest, as an institution, is not to be sought either R. JOHN J. O'NEILL contributes to the Amer- in the interest productivity of capital or in the dif

ference of value between present and futare goods ; the subject “ The Graduated Income Tax,” in which but in the fact that it furnishes a means of natural he favors strongly the adoption of such a tax as a selection of employers whereby the productive forces means of supplementing the revenue derived from the of the community are better utilized than by any duties after the present session of Congress has revised

other method hitherto devised." the tariff. He makes light of all the objections that

He traces three stages in the development of modhave been raised against the income tax. The justice ern industrial law : “ The first, where a man was aland fairness of this tax is so apparent to Mr. O'Neill lowed property as a stimulus to labor and save ; the that he does not consider it necessary to be advocated second, where he was allowed profits as a stimulus to by extended argument. This tax to be imposed ought, exercise skill and foresight in management; and the he thinks, be graduated in proportion to the amount third, historically almost coincident with the second, of income, and he suggests that a tax of one per cent.

where he was allowed to offer interest to induce should be imposed upon incomes of ten thousand dol others to give him the means of exercising his skill lars, the rate of tax increasing as the amount of in and foresight over the widest range." come taxed grows larger, until an income of one This is his summing up: “If these views be corhundred thousand dollars would be subject to a tax

rect, interest is essentially a price paid by one group of ten per cent. Mr. O'Neill argues that a man who of capitalists to another, for the control of industry enjoys an annual income of one hundred thousand on a large scale. The system is justified by its effect dollars can pay for the purposes of the state ten in the natural selection of employers and methods thousand dollars out of that income without experi rather than by any contribution made by the indiencing the smallest hardship in being compelled to vidual receiver of interest to the good of society. pay such tax.

The rate of interest does not depend so directly as has NOT IMPRACTICABLE.

been supposed on a general market for capital, but is

the result of commutation of profits in particular In reply to the charge that the income tax is im

lines ; the terms of this commutation depending upon practicable, Mr. O'Neill calls to mind that in 1862 our

the relative numbers of those who desire control and government imposed an income tax, which was con

those who are willing to part with such control for tinued in force until December, 1871. This tax was

the sake of avoiding the risks which it entails." at the beginning placed at three per cent. on incomes over eight hundred dollars, and at this rate the sum of

INCREASING DIFFICUTLY OF GETTING GOLD. twenty millions of dollars was raised in 1864, thirtytwo millions in 1865, and by increasing the rate to R. T. A. RICKARD presents in the Engineering five per cent. on sums over six hundred dollars and Magazine innumerable facts and statistics reless than five thousand dollars, and ten per cent. on lating to the mining of gold, which, he holds, is growincomes in excess of the latter sum, nearly seventy- ing more and more difficult each year. In the colony three millions of dollars was raised during the year of Victoria, which yields two-thirds of all the Austral1866. Mr. O'Neill has no doubt that if an income tax asian gold, the output has decreased from 3,150,025 were imposed at the present time it would yield an in ounces in 1853, to 654,456 in 1892. This decline is come far in excess of that derived from it thirty years attributed to the exhaustion of the rich alluvium, to ago. He shows that in Great Britain, with a popula- the expense of quartz mining and the limited employ. tion of only about thirty-five millions, about eighty ment that could be given owing to the lack of capital. millions of dollars was collected in 1888 by an income Mr. Rickard further says that in California as well as tax law, the rate at that time being eight pence on Victoria the rich alluvium has been for the most part the pound, and the tax levied only on incomes exceed exhausted, and he gives the following statistics showing one hundred and fifty pounds. He states, further, ing the production from alluvial gravel and quartz that in Italy, France and Germany experience with veins in California. “In 1851 the entire product, this form of tax has led to its permanent adoption. 81,294,700, came from the alluvium, in 1881 it was

Mr. O'Neill does not consider that such a tax would 18,200,000, and about one-half was of alluvial origin. be any more open to the objection that it would in In 1892 hardly ten per cent. of the production was devolve an impertinent prying into the private affairs of rived from the gravels. The obstacles raised to the a citizen and the necessity of the spy system than the carrying on of hydraulic mining, due to the filling of present laws for taxing personal property, or the the river channels by tailings from the mines, caused operation of our present custom laws.

an immediate diminution of the yield of from six

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millions of dollars or more." Mr. Rickard's conclusion other afflictions with little scathe,” and “that the is “ that while to predict the exhaustion of the gold United States gives at the present time, and are supply is foolish, it is certainly true that the difficulty likely to continue long to give, the best security of getting gold is daily increasing."

available for British capital judiciously invested.”

But he also urges that “the British public ought to "FEATS AND FOLLIES” OF AMERICAN FINANCE. let the American people themselves find the money TITH characteristic plainness of speech and

for new enterprises, no matter how attractively these English prejudice about things American, the may be put before them.” Investors' Review (London) discourses upon the financial methods of the United States.

THE HAWAIIAN SITUATION. “No country, ancient or modern,” it affirms,

THE North American Review contains this month displayed a greater elasticity of resources” than was shown when the United States paid off in less than

three articles dealing with the Hawaiian situthirty years a debt of almost £400,000,000. This feat,

ation. The first, by Mr. Eugene Tyler Chamberlain, and the small amount of local indebtedness, is at

is entitled the “ Invasion of Hawaii.” In this article tributed to the system of fixed dates for redemption.

Mr. Tyler attempts to show that the dethronement of “Such a thing as a permanent irredeemable debt does

Queen Liliuokalani and the establishment of an not exist in the American Union.” In this excellent

oligarchy on the island of Hawaii were encouraged, management is traced “the influence of the old con

if not actually effected, by the presence of a considerservative ideas of tne South."

able body of the naval force of the United States “On the contrary, the Republican régime, which

stationed in the immediate vicinity of the palace and lasted unbroken in the Union down to the time of the

government buildings, where the overthrow of the first presidency of Mr. Grover Cleveland, is one of

monarchy was consummated, the least satisfactory manifestations of Republican

His report of the overthrow is as follows: “The government which is to be found in modern history.

recognized government of a nation with which we .. It has been one of the most debased, debasing

were at peace had officially notified Minister Stevens, and corrupt democratic administrations the world

our representative, of its ability to preserve order and has ever seen on a large scale.”

protect property. The Vice-Consul-General of the The “pension " system is described as “the most

United States, testifies that no uneasiness was felt.

at the consulate, and that the landing of the troops gigantic system of public corruption which history has anywhere recorded.”

was a complete surprise to him. All the signs of

street life betoken good order, and, soon after the WHAT HAS MADE PROTECTION POSSIBLE.

blue-jackets had trailed their artillery through the The effect of the economic principles which the streets the population of Honolulu was enjoying United States has adopted is held to have been largely the regular Monday evening out-of-door concert disguised by “the amount of European, and espe of the Hawaiian band. The landing of the troops cially British, German and Dutch, money poured was promptly followed by the protests of the proper into the United States since the close of the Civil authorities of the kingdom and the island, transmitted War,” which is said to have exceeded one thousand officially to Minister Stevens. No evidence has been millions sterling, and has “supplied the means by presented to Coinmissioner Blount to show that there which the Union has been able to stand up under was any apprehension or any desire for the presence burdens which would have crushed any community, ashore of the men of the “Boston" under arms, exyoung or old, if left entirely to itself.” Since the cept on the part of the members of the Citizens' ComBaring crisis there has been “a slackening off in, if mittee of Safety. The matter was not referred to at not complete withdrawal of, supplies of European the mass meeting of the foreign population, organized moneys.” This has made itself felt in the American by that committee, and held but a few hours before crisis of the past summer.

Continued for a year or

the troops landed. The Committee of afety, at two longer, “ it would compel the States to fly to any whose request Mr. Stevens summoned the troops, did expedient which will knock down the barriers stand not prefer that request as American citizens. ing between them and an enormous export trade.” “ The Queen was dethroned and the oligarchy esBut “all the follies and cconomic blunders, all the tablished by proclamation, read by a citizen of the social cankers of the American Union, are but triv United States, shortly before three o'clock, and recialities beside the blood tax to which the leading ognized, in the name of the United States, by Minister nations of Europe have to submit in times of peace. Stevens before it was in possession of any point held In Germany, Austria, Italy and France, and to a in force by the Queen's government. With more smaller extent in every other European State, the de- prudence Captain Wiltse, in command of the · Bosvastation of an armed peace becomes every year ton,' declined to recognize it until it came into posmore agonizing. They must be beaten in any indus session of the military posts of the Queen, as it did trial competition with the North American Union by her voluntary surrender of them early in the eve. when it throws off its shackles."

ning. Her surrender was in terms to the superior The reviewer holds, therefore, that “the American force of the United States,' and until such time as people will come through their present currency and the government of the United States shall, upon the


facts being presented to it, undo the action of its rep property can, in Mr. Springer's opinion, only be supresentative,' and on this understanding it was ac ported on the assumption that American citizens cepted by the junta."

were actually in danger in their persons and in their

property while peacefully pursuing their business Ex-Minister Stevens' Version.

there, and he asserts that no foundation whatever exHon. John L. Stevens, recently United States Min isted for this claim. He states flatly that the people of ister at Hawaii, follows with “A Plea for Annexa the United States are not responsible for the kind of tion." After reviewing the events which led to the government in existence in Hawaii and that it is no downfall of Queen Liliuokalani, which Mr. Stevens concern of theirs whether the government deals justly holds was brought about by her open defiance of the with its citizens and subjects or not. Whether the opinions and advice of the best men on the islands, he government of Hawaii is a good government or a just gives the following version of the establishment of government is a matter for the people of that island the provisional government: “Amid the exciting to determine for themselves. There is no divine right events in Honolulu following the revolutionary at of republicanism in this world, any more than there tempts of Liliuokalani to proclaim a despotic consti is a divine right of kings. The divinity in all these tution, by which she flung away her crown, a sinall matters is in the right of the people to govern themforce of marines and sailors was landed from the selves. United States ship • Boston,' as a precautionary step

WHAT RIGHT HAVE WE TO INTERFERE ? for the protection of American life and property, and as a safeguard against night incendiarism stimulated “Our own right to self-government is no more by the hope of plunder, greatly feared by many of

sacred than the right of the handful of ignorant the best citizens. This was doing precisely what has

Hawaiians in the Sandwich Islands to govern thembeen repeatedly done in previous exciting days in selves. If they prefer a monarchy, feeble and inefHonolulu, during a period running back many years.

ficient though it may be, it is their business, and not The men of the ‘Boston' came on shore nearly fifty

But it is claimed that the provisional governhours after the fall of the queen, in whose defense no ment is one composed of Christians, and that they are effective aid was offered by those who had surrounded representatives of advanced Christian civilization. her in her carnival of immorality and official corrup

The United States, being a Christian nation, should tion. The naval commander and the United States sympathize with and render moral and material aid Minister earnestly sought to faithfully carry out the

in sustaining that government; and it is alleged that prior rules of the Legation, especially those contained

we have no right to consent to its overthrow. It in the last instructions issued to the United States may be conceded, for the sake of argument, that the Minister and naval commander, by Secretary Bayard, provisional government is composed of Christians, July 12, 1887. Neither by force, threats, nor intimi and that it more nearly corresponds to our ideas of a dation, did the United States officials oppose the fallen just government than does the government of the queen or aid the provisional government, the latter monarchy, bui, as suggested before, this is foreign to being supported by the same men, with now increased the controversy. We have no more right to interfere numbers, who found it imperatively necessary to

on this ground with the government of Hawaii than take despotic power from King Kalakaua in 1887, by we have to interfere with the government of China the adoption of the reformed constitution, and who or Japan or Turkey. crushed out the Wilcox rebellion in 1889. All asser

REDRESS THE WRONG. tions to the contrary as to the action of the United States officials and marines are absolutely untrue and “The question is frequently asked in partisan certain to be swept aside by time and history, how papers, 'How can the monarchy be restored?' Or, ever plausibly stated and however strongly these as • By what right does the government of the United sertions may be supported by the perjured testimony States assume to re-establish a monarchy which has of persons deeply compromised by the vices and un been overthrown?' The government of the United lawful actions of which they had been guilty before States has no more right to establish a monarchy in Liliuokalani lost her throne.”

Hawaii than it has to establish one in Mexico or in

Central America. But it is the duty of the United Restore the “Status Quo."

States government, when its agents and representaIn the third article Hon. William M. Springer, of tives have committed a wrong against the governIllinois, maintains that it is not a matter of concern ment of a friendly power, to redress that wrong, and of the American people whether the government of in this case it can only be accomplished by placing Hawaii was a just one, a moral one, or an efficient the government in status quo, or in the condition in one, and that we have no more right to overthrow a which it was found at the time the armed forces of monarchy in Hawaii because it does not conform to the United States were landed upon Hawaiian soil our ideas of a just government than we have to over and interposed in the local affairs of the monarchy. throw a monarchy in Canada or Great Britain, or We cannot redress the wrong we have committed by Russia or Turkey, or Spain or elsewhere. The claim merely withdrawing our forces after they have been that the presence of the United States forces on shore used for seventy-five days to suppress the existing was necessary to the protection of American life and government and establish a provisional government

The very

in its stead. We must restore to the queen her own to continue such purchase in defiance of the expressed armed forces and we must disarm the forces of the will of the rest of the country. But in the light of provisional government which were armed and Congressional traditions, why should they not do so? equipped by the aid and under the protection of our If it is right to convert the capital of the country to navies. Anything short of this is a mockery of local or partisan uses under pretext of legislation, it justice, a disgrace to our diplomacy, is unworthy of is a very slight sin to exhaust every parliamentary a Christian nation, and a travesty upon our devotion resource to prevent the majority from repealing such to the principles of local self-government.

legislation." “If the restoration of the status quo which ex

How to Deal With Filibustering. isted prior to the landing of our forces on Hawaiian

Considering, in the Forum, the question “How soil should result in the restoration of the monarchy, such restoration would only demonstrate the fact that

to Deal with the Filibustering Minority,” Mr. John the overthrow of the monarchy was due to our inter

B. McMasters, the well-known American historian, vention. If it does not result in a restoration of the

suggests as an effective means that of setting a

limit to the time of debate on any given subject. monarchy, then we have washed our hands of re

fact that a minority exists is held to be the sponsibility in the matter, and have vindicated the integrity of our diplomacy and the high character of

best of all reasons for hearing it, but no reason for

permitting the minority to prolong debate indefiour government as one which loves justice and

nitely. maintains international comity. Therefore, it is not

"A minority is not to be considered as the restoration of the monarchy which is in issue,

factious till it ceases to be reasonable and becomes but it is the restoration of the condition which ex

factious. A majority can very easily be in the wrong isted prior to the armed intervention of the United

and ought under no circumstances to act hastily, nor States. Justice requires that our government should

until that great safeguard of representative governgo back thus far, and when we have thus done justice

ment, freedom in debate, has been fully respected.

The provision, therefore, should be made in full we are not responsible for the injustice that others may do. We must maintain our integrity as a nation.

recognition of the fact that a majority may be arbiWe must vindicate our regard for the rights of a

trary as well as that a minority may be factious; and

a certain time fixed during which time no gag, no weak and defenseless government.”

previous question can apply, and after which a vote

must be taken.” He does not think it desirable or OBSTRUCTION IN THE SENATE.

possible that such a provision should be put in the 'OMMENTING editorially upon the “Obstruc

constitution of the United States, nor does he think it tion by the Minority in the Senate," the Yale

necessary. Obstruction by the minority has been Review says:

successfully dealt with by Mr. Reed and Mr. Crisp in “ Condemn as we will the conduct of the Senators

the House and, declares Mr. McMasters, may be as from the silver States, for thwarting the wishes of

successfully dealt with in the Senate. the country for the sake of a locality-they are only doing in a flagrant case the same sort of thing which THE PROBLEM OF THE UNEMPLOYED. is done over and over again in River and Harbor bills

'HE ever-recurring question of how to deal with and other expenditures of public money. The average Congressman thinks of the good which comes to

in the Fortnightly, and by Mr. J. A. Murray Macdonhis district, and not of the harm which comes to the

ald, M.P., in the New Review. Mr. Macdonald begins public treasury. If the district can gain at the expense of the nation he deems it his duty to promote increasing the number and relatively decreasing the

by pointing to the effect which machinery has had in such gain. We have had a case of this sort in Con

employment of tire population. He contends: “1, That necticut in the last few weeks, where certain towns had paid a large sum of money to have a certain

the proportion of the population of the country that

finds work in the staple industries is decreasing, while bridge transferred from the charge of the towns to

the wealth produced in them is increasing ; 2, that that of the State. The circumstances attending the

the increase in the population does not obtain work payment of the money were suspicious ; yet most of

under satisfactory conditions in other channels of lathe towns concerned refuse to investigate the matter

bor ; 3, that the oversupply of labor cannot justly be for the thinly disguised reason that they got more

traced to any fault of the laborer, but to a cause, opthan their money's worth out of the State treasury. So dear is the privilege of appropriating general

erating in our industrial system as a whole, over which funds to special uses that the beneficiaries of such a

the laborer has hardly any control.” process shut their eyes not only to the real character PUBLISHED ACCOUNTS AND COLLECTIVE CONTROL. of the transaction, but to the means by which it is The remedy he advocates is “ the substitution of brought about.

such an organization of industry as would lead to “ The silver question in its present form offers an a due balance between distribution and production, in instance of the same general sort. The silver mining place of the present wasteful overproduction.” districts seem to gain by the continuance of silver To this end we first require knowledge of the actual purchase ; therefore the Senators exhaust every means demand and actual supply of a given commodity.


The enemploying in the related by Wato de



Export and import returns are not enough. “What GOVERNMENT CONTROL OF RAILROADS. is needed is a detailed account of the business of each particular firm in each particular industry of the

of the railways and the telegraphs appears as country, and the collection and analysis of these ac

the opening article in Electrical Engineering, the counts." In order to obtain a balance between the demand and supply of commodities thus ascertained,

writer being Mr. W. S. Crosby. State control, in

Mr. Crosby's opinion, is a theory which cannot be Mr. Macdonald advocates “ the collective control of

successfully applied in practice. He says in subthe production of any particular commodity by the

stance : The theory proceeds along the line that the whole body of the producers of that commodity ;" for

railway should at least do more adapting and that example, “the collective control of the whole cotton

State control can secure that result better than priindustry of the country by the whole body of those

vate ownership will do. It being manifest that as a actually engaged in it," or the combination of the

rule a person owning a useful thing can and will Miners' Federation and the Federated Mine Owners.

insure a better adaptation of it than 'if some one else Such an amalgamation would make the miner's con

owned it, then follows as a plausible theory that any nection with the mine as stable as is the mine own

number of persons owning a thing can and will insure er's. His third specific is the eight-hour day for cer

to themselves a like advantage, and from this it is but tain trades.

a step to the conclusion that by owning railways the Canon Barnett's View.

whole people can and will insure to themselves an adCanon Barnett divides the unemployed into two vantage thereby. classes, those unable to work and those unwilling

THE GREAT DIFFICULTY. to work, requiring respectively relief and discipline. “The danger at hand is,” he thinks, “not so much But the process of adjusting the service of railways one of abnormal distress as of antagonism.” He does to the needs of the people, while it is a process that not find a solution in shorter hours or new public must go on, is, continues Mr. Crosby, one that is susworks, or the holding over to the slack times of ceptible of acceleration or retardation, and it is one winter of all work that can be so arranged, or wherein unlimited adaptation on either side is imfarm colonies ; he condemns outdoor relief to the possible. The rate of adaptation depends upon the physically unfit, and “shelters and feeding.” He ap efficiency of the management of the railway to that proves of the proposal. “1, That training be of end, and the mere transferring of the title to the fered by Boards of Guardians to all willing to submit whole people will not enlarge its powers in that direcfor a certain time to certain regulations ; 2, that the

tion. Then Mr. Crosby proceeds to tell why the peoparochial authorities reserve its street work-sweep- ple cannot manage railways so efficiently as private ing, cleaning, etc.--for inhabitants in its own district

“If the people own the railways, the people who have occupied tenements for at least twelve must manage the railways. How will they do it? months, and that such work be strictly supervised so By delegated authority. Authority must be limited as to ensure the performance of a full day's task ; 3, or it must be unlimited. If the delegated authority that those who refuse training and fail at street work of the people for the management of its railways were be offered the workhouse."

unlimited, the world had never yet seen the concen“ The Whitechapel guardians are proposing as an

tration of power that would be in the hands of the experiment to offer willing, able-bodied men-inhabi man or men who would possess it, and the man has tants of Whitechapel-work on farms in Essex.” yet to be born who could wield that power to the

satisfaction of the people. If that authority is to be “DO ONE GOOD THING."

limited—and it certainly would be-how and by The Canon's final advice is to trust less to machin whom are the limitations to be set ? By the peopleery and more to personal friendship: "The one thing and that sounds well ; through a vote of Congresswhich every one can do and be certain of its use is to and that don't sound so well. That power would be make friends with one or two who are in need-to do limited by law. Granting that every member of all necessary for this one or two, and leave off at Congress is honest, for which admission may God tempting to raise the masses. There would be per forgive me; and granting that every member knows haps more self-denial in the self-restraint than in the the needs of his own constituency in the matter of sacrifice. It is often less hard for many in these days railway service, for which admission may their conof bold advertisement to spend themselves on plat stituencies forgive me, even then, what kind of a forms and at street corners, to stand night after night regulation power for the railways of the United in close rooms feeding hungry hundreds, than to re States would acts of Congress be? The question to strain themselves in order to do one good thing. If be decided is the adaptiveness of the railway service to-morrow every one who cares for the poor would to the varied and variable needs of the people; and become the friend of one poor person-forsaking all that adaptiveness lies in the regulative apparatus of others—there would next week be no insoluble prob the railways, and that regulative apparatus is conlem of the unemployed, and London would be within trolled by law. But a thing to be adaptive must be measurable distance of becoming a city of happy flexible. Did anybody ever notice anything flexible homes."

about a statute law, or a legislative regulation? In


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