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produced or made in this country. To income. The excuses niade for this delay the foreigner the market of the United were not good, for they showed blindness States has been a contracting market, un- to existing commercial conditions, and a able to absorb what was long its natural notable adherence to a policy that was no taking, and becoming an aggressive and longer applicable. When the pressure of powerful competitor in lines where its events became absolute, it was the war peculiar strength confers almost a mo- measure of 1862 that served as a model to nopoly. This change is reflected in de- the proposed measure. That a multiplicreasing and more closely selected im- city of taxes, applying to many forms of ports, and in the rising export of domestic business activity, of differing qualities, manufactures.

and hastily imposed, should have embod- Any revision of the tariff that should ied a scheme to be imitated at this day not take this change into consideration was in itself improbable. More thought would fail of its purpose of revenue. The and selection, a more careful examinatruth has been more and more enforced tion of the sources of State revenues, and that no revision of the tariff which passes an avoidance of a duplication of taxes, or over commodities of general and almost of taxes touching thrift and the employnecessary consumption, like tea and cof- ment of small capitals, would have led to fee, can make the revenue as large as it a bill of equal revenue ability without should be, or enable the tariff to hold its dangerously approaching that vague line position of importance as a producer of which divides taxation from exaction. revenue. No juggling or shifting of du- In a year of normal expenditure the ties, ostensibly for revenue, but really for government requires an ordinary revenue protection, can force a larger tribute from of about $450,000,000. Of this sum $100,imports, or even a tribute that will yield 000,000 is obtained from the postal and the share of revenue that has been expect- miscellaneous receipts, and the customs ed from the tariff. In 1887 the imports and internal revenue must make good of pig-iron were valued at $6,200,000, and the balance. The tariff, at best, will give gave in revenue $2,810,000. In 1897 the about $180,000,000, and the existing interimports were only $517,000, and the reve- nal revenue system may be depended nue $88,515. No duty that could be im- upon to give about $150,000,000. Here, posed on pig-iron could make it an object then, on paper, is a revenue of $430,000,000 of revenue. Iron is only one instance in in a year of good returns, or some $20,000,many of this change in conditions, and 000 less than expenditures in an ordinary both raw materials and manufactures year. A deficit was inevitable under the show the same trend. The imports of conditions existing at the end of 1897, manufactured iron and steel in 1887 were before any extraordinary demands had $50,619,000, and gave the Treasury been created. The tariff was falling be$20,713,000 in duties; in 1897 the govern- hind, and no increase of internal taxes ment obtained less than $6,600,000 from could make good this deficiency. At imports valued at $16,362,000.

least $75,000,000 a year more revenue It has been this decay in tariff possibil- would be needed, and this estimate of deities that has made new sources of reve- ficiency was set aside for one much larger nue necessary, and this necessity the new --from $150,000,000 to $200,000,000 a year financial measures have recognized to the -as soon as the war was inevitable. full. Not a single tariff duty is altered, The sudden emergency created by war and only one, a purely revenue duty on expenditure thus called for radical treattea, is added. All else is to be laid on ment. It was a situation in which a internal sources—a remarkable change of “possible” return from experimental taxpolicy in public finance since the passage es would not suffice. An assured reveof the Dingley tariff, about one year ago. nue from definite sources and the fewer

No doubt abundant criticism could be and more profitable the sources the betmade of the new revenue measure. Its ter-was imperative. It was little wonder preparation was postponed for many that even the Ways and Means despaired months, although the large demands in- of making the tariff produce an appreciacident to the staving off of war if possi- ble part of $100,000,000 additional reveble, or the meeting it if actual, were fall- nue, much less of any larger sum. ing upon a Treasury living in part upon ternal duties alone held out a promise its accumulations, and not on its ordinary of proper performance. As a result, the

VOL. XCVII.-No. 580.-71

Ingeneral features of the stamp duties of and populations, and these responsibili1862 are revived, and a number of ties involve great expense. An “impeother imposts bave been added. A full rial policy" must be paid for in an “imdetail of items and of rates would not perial manner.” So it is safe to predict assist to a proper understanding of the that when conditions have simmered novelty of the measure or of the fiscal down to peace and normal relations the policy it involves. Legal and business United States will require all of the instruments, transactions in stocks and $200,000,000 a year additional revenue besecurities, gross receipts of many impor- lieved to be provided by the new measure. tant and highly concentrated occupations, This will not arise wholly from exsuch as express, telegraph, telephone, and penditures. The cost of the navy in parlor-car companies, legacies and suc- any year since the war had not passed cessions, insurance, etc.-each description $32,000,000 until 1897, when $34,560,000 of tax, whether stamp, license, or on gross was reached. A navy for offence and receipts, would require a special exami- defence, with objects so distant as the nation to determine its revenue ability Philippines to be protected or kept in and its effect upon the transaction or oc- subjection, will demand a larger sum, cupation taxed; and even such an exam- and $50,000,000 a year will not be too ination would be open to many errors. much. The army has cost in time of As the bill passed the House, an annual peace as much as $55,000,000 in a year; income of $105,000,000 was expected from in war it costs nearly $1,000,000 a day, its provisions; as the bill came from the and on a return of peace can never be Senate, a very much larger but somewhat brought down to its former cost or diindefinite sum, ranging from $150,000,000 mensions. From $75,000,000 to $100,to $200,000,000, is looked for from its tax 000,000 will be required, for no less than provisions.

three corps of occupation, in climates There is every likelihood that the larger deadly to our people, must be kept effecreturn, $200,000,000, will be needed to tive. Even at the lower figures these meet the actual expenses of the govern- two branches of the service would rement under the new policy that it has quire $125,000,000 a year, without any adopted. The actual cost of the war is civil servants sent to those newly acof secondary importance, for it can--and quired colonies. A civil list of unknown under any condition will--be largely if size would be a necessity, but it may be not entirely met by loans. The new assumed that enough local revenue could taxes cannot reach their maximum of be squeezed out of the existing populaproduction for some years, and due al- tions to meet that expense. lowance must be made for the possi- While leaving an apparent surplus, on bilities of evasion always large, even the supposition that the $200,000,000 are under the most just of systems. While obtained, there would be in reality no surmaintaining the ordinary rate of ex- plus, and even a deficit. It must be borne penditure as it existed before the war, in mind that the government has faced a three very costly and non - productive deficit during the current year of at least objects of expenditure seem likely to be $50,000,000, and would have done so withadded—a large and permanent navy, a out the war expenditures. The deficit permanent standing army for foreign as under the Dingley law would have bewell as for home service, and the admin- come a permanent feature as long as that istration of distant colonies. A number law was continued, for it arose from a of incidental questions have also arisen disregard of trade conditions. Each year, in connection with the future of the new therefore, a part of the new revenue must ventures — the construction and control have been swallowed up in meeting the of the Nicaragua Canal, the subsidizing deficiency of the tariff revenue to produce of shipping lines that will “carry the what was expected. An even greater flag” round the world, and, as is hoped, draft would be required by the change in extend American commercial interests revenue consequent upon the adoption of and our political influence even to domi- the new possessions. nation among the neighboring states of The largest single source of revenue Central and South America. New pos- under the tariff is sugar, and about $80,sessions imply new responsibilities of pro- 000,000 a year is to be obtained under tecting and developing their resources existing rates. But the sugar product of Cuba, Puerto Rico, the Philippines, and of competition to destroy their smaller Hawaii will be admitted free of duty into and weaker competitors, and once settled the United States. What this means, in a monopolized market, they could even when the figures are taken from pre- squeeze the consumer and

the wage-earnvious years, a little estimate will show. er for their own profit. But the bond or The average importation of foreign su- share holder, the holder of realized capital, gars into the United States each year is was the support of those corporations, and 4,000,000,000 pounds. Of this quantity the fear of his machinations became proCuba alone has in the past supplied more nounced. So the money power, the bankthan one-half; and from the other islands er, the corporation, and the trust were named, Hawaii excepted, enough sugar objects of solicitude, and have figured in can be obtained to bring the quantity to many political campaigns as real issues. 2,500,000,000 pounds, or five-eighths of the To tax them implies a certain control whole importation. This means the wip- by government, as well as a certain taking out of five-eighths of the sugar rev- ing, for the government, of a part of their enue, or some $50,000,000, which must be gains. The experience in 1894, when an made up from other sources. A still attempt to tax incomes was thrown out by further reduction must be made for other a decision of the Supreme Court, showed products imported from these islands- how far this feeling had gone. It was well such as tobacco, hemp, and fruits-mak- understood that the tax received its suping the prospect of heavier taxation at port almost entirely from the West and home still more probable, as well as assur- the South, and a very important consideraing the permanency of the internal taxes tion leading to this sectional or geographnow imposed.

ical division was the belief that such a In thus veering from a financial system tax would fall almost wholly upon the in which taxation of imported merchan- North and the East, where realized capital dise has been the leading feature, to one was supposed to be found. So narrow a based almost entirely upon internal taxa- view can only be laid to ignorance of tion, it is not only the form but the sub- general economic principles, but it proved stance that is altered. Capital becomes sufficiently effective to secure the adopthe object of taxation. The steady prog- tion of an income tax. The taxation of ress towards an income tax made in single corporations has been adopted in countries where democracy has recog. the new measure, together with duties on nized the force of wealth in dividing class- legacies and successions, and all forms of es is a notable feature of modern popu- corporate activity. As a measure of prolar finance. France has for some years tection against or retaliation upon supsought to incorporate an income tax into posed monopolies, and as a measure for her system, believing that it would still appropriating to the state a part of great more tend to equalize the general distri- fortunes, these taxes commend themselves bution of well-being among the people, to the financial theories of a democracy. and at the same time give what may be The gradual shifting of political power the most important source of state income from a small and somewhat favored class in her finances. In the United States the to the largest component of any political same tendency has been even more pro- community has been accompanied by this nounced. At first, taking the form of a growth of socialistic taxation. It has furdislike of the “money power,” it found ther led to progressive taxation, in which vent in propositions for paper money, free the amount of tax is determined by an silver at a ratio to gold widely divergent arbitrary scale of duties, graded by the from the commercial ratio, government amount of property to be taxed. This certificates, advances as loans on farm scheme of progression finds a place in the products, and a number of such schemes, new system, and notably in the legacy designed to make the payment of debts tax, where it has features so oppressive as easier by wiping out a part or a whole of to contain a direct discouragement to the capital of the debt. From mouey- realized wealth. As a step towards penallenders it was an easy transition to re- izing accumulations of wealth, the meacognize in corporations, and especially in sure is of interest, but the point to be intrusts, huge instruments of oppression, sisted upon is the cutting loose from a by which the poor and well-to-do were narrow adherence to a tariff on imports. crushed. They used the inexorable law






and, on either side of the house, by a

grove of oaks which act as screens, and THE COMPANY AT THE CLOCK HOUSE.

were planted to serve as such. They are N the stone posts of the entrance to intended to prevent all possible visual

the largest estate near Powellton, a intrusion upon the sports, the siestas, and few miles to the northeast of Fishkill-on- possibly the courtships, which chime with the-Hudson, is the painted word “ Bel- such a place; in a word, to accompany a view," but the people of the neighbor- sort of English idea of privacy, which hood call the place the “Clock House." was that of the original Lamont, founder This is because of the great clock, with of the American family. This came with perhaps the only plain plate-glass dial in his blood as it stirred first across the Atour country, which almost grotesquely lantic. There privacy is held to be the fills the face of the short thick tower in first essential of home comfort, if not of the front of the square Colonial mansion. existence, and even the last of the LaAs seen from other hills and risings- monts clung to this tradition. from Powellton, and from nearly as far It was after midnight of a day in the as Fishkill --- this big disk, always illu- early spring of 189–, while the real moon minated at night, hangs in the lower air and the brightly lighted windows of the like such a moon as only the Japanese house dimmed the diluted effulgence of have the courage to paint. Except from the huge clock face, that two labora distance, or from the high seat of a ers, belated on their way to Powellton, hotel stage, nothing of the Clock House stopped to stare through the gate and to is to be seen, because the park which listen. frames it around is enclosed by a tall “I can'd hear noding,” said one, after brick wall built upon an embankment. a moment of silence. From a stage-driver's seat, or when one "I don'd, neider," the other replied; stands before the superb gate of orna- “vind's der wrong vay, or maype der mental iron-work which breaks the wall glock's shtopt already." at one end, one may see a part of the La- “Vould dot meanmont place. The view would bewitch “Dot 'd mean dot der olt Kurnel's the senses were not even more beautiful det," said the other. “Dwice I'fe seen public views so common throughout that der houze lighted up, all aplaze, like it is grander park which we call the Valley now. Firsht dime vos for a grant pall of the Hudson.

vhen dey camed home-der Kurnel und The place was built by the present his pride. She vos a angel vot neffer owner's great-grandfather, who, though vos meant for no such vorld as dis. Und a Scotchman, early embraced the Ameri- der second dime vos only a year aftercan cause, performed a long and honor- vards, vhen she dite in shildbed. I vos able service as judge of the Court of a young feller dot dime, und came mit a Common Pleas, and retired from that lot of oder young chaps sbecially to hear post on the very day of the death of his der glock dicking, shlow und shlower friend General Washington. It was at und sblower, as it alvays does vhen first the finest country house in Dutchess det comes by dot houze. I dit hear it, County, and to-day it has lost nothing too-derrible slow it dicked; und den I by standing, unimpaired, as a noble ex- didn't hear it no more, begause it shtopped. ample of the dignified and hospitable She hat dite vhile I vos listening." fashion of our forebears. The long grace- “I hear it now," said he who had been ful reaches of a double wave, of well- the first to speak, a youth of twentytrimmed grass are broken by a driveway, two. flung down like a loop of yellow ribbon “Do yer? I ton't," said the other, who by the mansion which caps the soft had passed sixty. "My hearing ain't bosomlike crest of the first grassy wave, vot I used to got.”

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“Und it ain't so shlow, neider,” said view, as unsubstantial as recollected vithe first speaker.

sion would render it. “It's got to be shlow," said the other, These at the Clock House saw Editha positively. “ Didn't I tell yer der Kur- as she had been fond of dressing herself nel's dying? Vell, den, it has to be shlow; just before her last illness, in a robe of it alvays got to been derrible shlow at blue cloth, flaring open above the waist, such a dime."

to show a loose' under - dress of thinnest They passed on up the road and were lawn, which left her beautiful neck as bare gone, but the subject was taken up with- as her plump oval face in its framing of in the house. Tappin, the butler, bustled black hair. And those she had known in his quick, nervous, somewhat pompous among men she, too, saw as they had way into the dining-room on the ground been wont to dress. The other Etherians floor to fetch the decanter of cognac to were mere rays to her vision—though his dying master's bedside, and never sus- they were as readable to her as books. pected that his father stood, in the posture She was obliged to imagine the human of a servitor, behind the empty chair at aspect of the elder Mrs. Lamont, who died the table's head, and before the figures before she had been born. She thought of Hamilton Lamont, his wife Deborah, of her as being like the old lady's wellArchibald Paton and his wife Flora, Isa- remembered portrait in the dining-room. bel Lamont, the dying Colonel's mother, And that was how Mrs. Lamont seemed and several other relatives and connec- to those who had known her in womantions long since rubbed off the slate of hood—with her kindly, motherly, wise earthly reckoning. Nor did he know- face above a quaint evening gown of the how could he?-that only a minute be- first year of this century. The others fore this, in bending over the Colonel to were all commonplace, latter-day figures. catch his whispered “milk and brandy, Editha's happy presence made itself felt Tappin," he had pressed his substantial in the dining-room soon after the fleshly body literally through and around an- Tappin had taken away the object of his other Etherian, Editha, once the child errand. wife of the dying man.

“We knew you had come, dear,” said His errand to the dining-room did not the elder Mrs. Lamont. “ We have all disturb the Lamonts of the past. They been thinking of you." continued their conversation while he “Thank you, mother; I am very glad was by, but they did so in their own to see you all,” said Editha.

- You were fashion, which could not jar the com- talking about the clock.

Is its beat very pletest silence. They thought, instead of slow?" speaking; they knew what was thought, “Not very,” said Hamilton Lamont. instead of hearing it; indeed, though they “It is lengthening the intervals between saw far better than we, it was by an ex- the ticks, but his release is not to be imtended comprehension that they did so. mediate.” After a pause he added, adEach Etherian took the guise of a form- dressing his mother: “But you and Editha less cloud of faintest light --a puff of have been here some hours. The rest of luminous vapor around a spark a trifle us have just come, and are preparing for brighter than the rest, yet not bright the disclosures that are to be made to us. enough to be distinguished by mortal Give us time to learn what is happening. vision. Thus most of them appeared to I only know that the Colonel is passing each other. I say “most of them," be- from earth to us. He appeared to us with cause it was different with those who had the summons to come and exert ourknown each other intimately as men and selves in our various interests, and that women, or as spirits among men. They is all that any of us know." saw each other somewhat as they had "I beg pardon of all of you," said Mrs. appeared on earth. So strong is our im- Lamont." The truth is that I have been aginative faculty that it resists death, called so often that I can instantly put and in an assembly of old friends like myself in the receptive state. I learned this the Etherians recall each other's everything before I reached here. But physical personalities. It is immaterial do not let me delay you. Things are hapwhether they really saw their old selves pening that are of the greatest moment, in this earthly way. They believed they the keenest interest, to most of you." did. But it was a faint and nebulous Eagerly the new arrivals prepared to

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