ing with practical queftions on which they were unable to decide, have contented themselves with thofe general fpeculations, which are rather amusing and plautible than solid and inftructive.

In this way, taxation, as a fubject of knowledge, has never been duly cultivated; and therefore we need not wonder at the uncertainty in which it is involved, and the inconfiflent, ever-varying, and ineffectual laws which the legislature are continually promulgating, with regard to fome of the most important branches of revenue.

As the prefent is the first regular attempt which has been made to fupply this important chafin in the fcience of government, the author will have no reason to request the candour of thofe who are beft qualified to judge of it. And he flatters himfelf that the general importance of the fubject will induce all who are interested in the public welfare to give it a patient and an attentive perufal.'

The first chapter contains an account of the original and additional duties which have been laid on fome principal articles of revenue, from the earliest accounts; and care is taken to trace the effects of thefe different duties on the quantity. and amounts of the refpective commodities. By this general and extensive view, we are enabled to mark the point at which many of these articles were over-taxed, and thence to trace the effect of over-taxation on the revenues of the country, and on the genius and fpirit of the laws by which thefe duties. came afterwards to be fecured.

The fecond chapter is accordingly taken up in a general review of revenue laws, as means of fecuring duties; and this review, taken in connection with the facts established in the first chapter, leads to the reflections which conclude this fecond chapter,

Thefe two chapters are intended as a kind of fcientific hiftory of taxation, founded on the experience of upwards of an hundred years.

It is the aim of the third chapter to point out the erroneous opinions which the over-tax fyftem creates; the difficulty of avoiding the deftructive courfe which it impofes on those who have the conduct of public affairs; to fhew the error of incautiously employing taxes as an engine of commerce and police; and to fuggeft how far they may be employed as fubfervient to thefe ends.

But the errors flowing from the over-tax fyftem itself are not the only ones the author contends with. He finds, in the works of fpeculative philofophers, many doctrines, which, as they have contributed to rear, fo they continue to justify, erroneous practices. This has led him, in his fecond book, to

enquire, ft. into the best manner of augmenting the revenue of any thriving country, which he infinuates may be done with increafing eafe in proportion to the growing wealth and prof perity of the people. And as countries may be either forcing revenue from already over-taxed articles, or fcarcely taxed an all, this induces him to confider how nations should conduct themselves in these two different fituations.

Accordingly the first chapter is evidently intended to combat the generally received opinion, that, though our taxes are high, yet they are neceffary for fupplying the preffing wants of the state. This opinion is not here controverted by argument, but by a collection of ftriking facts which cannot be denied.

The fecond chapter, which treats of the conduct of states where over-taxation has not taken place, is believed to be a new fpeculation. States, as employed in collecting the public revenue, are confidered in the light of private individuals trading in the nation. The circumftances of this analogy are pointed out: they operate through the fame media, and they ought to be regulated by the fame laws. And it is shown, that the diftreffes which states experience who force revenues from over taxed articles, are nothing more than the natural pupifhments which all must be fubjected to, who counteract the established tendencies of things.

Perhaps it is not eafy to give an intelligible account of this chapter in a short abstract of it.

The fecond Enquiry treats of the expence of collecting revenue from articles of confumption.

It is the prevailing opinion, that all fuch taxes are exFenfive in the collection; and that this expence arifes from the number of articles taxed, and the number of traders to be furveyed.' Inftead of this, the author endeavours to show, that the greatest part of this expence has arifen from the high rate of duties impofed on articles of confumption, and on the confequent unwillingness of the traders to pay the duties.

The third enquiry concerns the long agitated and much involved queftion, on whom do taxes fall?'

As this question comprehends almost all the views which. philofophers have taken of taxes, and as it feldom fails to agitate the whole country when any new tax is proposed, it feems proper to have given it a full difcuffion. For this purpofe, having traced the rife of the question, and its applica tion to internal taxes, the author proceeds, in the fecond chapter, to point out the circumstances which enable the fame num ber of people to fuftain heavier taxes at one time with greater cafe than they could lighter ones at a different period. These,

he

he thinks, are the various improvements which increase the producive powers of the people, and which, therefore, may be confidered as furnishing the funds out of which taxes are paid in thriving focieties. He endeavours to show that these improvements may operate a relief from taxes, either in a dire& and perceptible, or in an indire& and less obvious manner; and that these improvements often enable the contributors to new taxes to live better, after paying fuch taxes, than they could do before the taxes and the improvements exifted. Taxes in this fituation of fociety are, therefore, confidered as a fmall quit-rent to government, for the peace and fecurity which has enabled the people to fubdivide their labour, and to make thofe improvements on which their profperity has depended. Thefe ideas furnifh a refutation of the commonly received opinions, that taxes accumulate in paffing from band to band till they come to the laft payer of them.' On the contrary, if taxes do pafs from hand to hand as has been fuppofed, they will be lightened and abforbed, as it were, by the improvements they may meet with.

But even in stationary and declining focieties, and in other fituations where taxes may be properly faid to fall on the people, it is fcarce poffible to fay on what particular fund or clafs of them they will fall. It is the object of the fourth chapter, which treats of demand, to illuftrate this fubject.

It is very generally believed that particular taxes are attached to particular funds or ranks of fociety as fuch, and that, therefore, it may be shown where any given tax will fall. But if this author has been fuccefsful in establishing that demand is the great circumftance which determines where a tax will fall; that it never can fall where the demand is BRISK; and that it will always fall where the demand fails. It will follow, that as there is no forefeeing where demand is to be brifk or languid, fo there is no foretelling where any tax will fall. And further, that as demand is continually varying, fo a tax which falls on one fund or clafs of citizens to day, will fall on a very different one tomorrow. From thefe ideas, the unprofitablenefs and mischievous effects of this fpeculation are particularly pointed out.

The third enquiry is concluded with fome remarks on Dr. Smith's opinions refpecting taxes on the neceffaries of life. The author feems to infinuate, that the abstract doctrine which he delivers on the general question, contains an indirect refutation of what the doctor has faid on this branch of the subject. But ftill he is willing to confider it on the doctor's own prin

Sec fir Matthew Decker and Dr. Smith.

ciples.

ciples. He thinks that whatever may be the final effect of taxes on neceffaries, in declining and already ruined societies, no fuch effects as thofe, attributed to them by the doctor, can follow in focieties that are thriving in almost any degree. And that even where the worft effects flow from them, viz. the ftinting of the number of labourers, and the confequent rife of their wages, yet till it was neceffary that fuch taxes. fhould in the first inftance fall on the labourers themselves, to produce that flinting of their fupply which is necessary to create a demand for them.

After this comprehenfive view of the subject, and these attempts to refute errors both of a practical and fpeculative kind, the third book profeffes to lay down thofe juft principles which are neceffary, if we would either tax fafely, or rectify what has been done amifs in taxation*. Whatever other merits or demerits thele Principles may poffefs, they at least have novelty to recommend them. A bare repetition of the titles of the first chapter will justify this remark:

Of the circumstances which fit or unfit commodities to bear

taxes.

Sect. 1. Of the general relation between the value of a commodity and the tax it is capable of bearing.

Sect. 2. Of the nature of a commodity, as it fits or unfits it for bearing a tax.

Sect. 3. Of the nature and state of a manufactory, as it affects the duty which a commodity is capable of bearing.

Sect. 4. Of the rate of the profits of stock, as it affects taxation.

Sect. 5. Of the effects of fimuggling on taxation.'

The last chapter fuggefts a plan of general reformation. In doing this, however, the author is regulated by a maxim from which it is prefumed few will diffent, viz. that the plan and method of difcoveries and reformation, cannot go far before, but must go hand in hand with difcoveries themselves. Having, therefore, mentioned in the introduction to the chapter a few traits of the character of a minister and of a furveyor general, as inflruments of reformation, he but flightly traces the general principles upon which reformation ought to be attempted.

The obvious intention of this book is to lay down principles, by which to estimate the degree of temptation which a given rate of duty will atford to fmuggle any particular commodity; and fo to fuit the rate of duty to the circumfances of the taxed article, and to the power of fiscal regulations, that fmuggling fhall not prevail. This has never formerly been attempted; and. therefore, the afliftance of meafure and quantity, which have always been found fo neceflary in every art and fcience where they have been introduced, has hitherto been unknown in the subjec.

The

The first thing fuggefted is to engage the furveyor-general in what is called a fifcal history. And it is fcarcely to be de nied, that a judicious hiftory of this country, compiled with the exprefs view of impofing new taxes, or reforming old ones, is much wanted, and that fuch a hiftory would prevent the minifter from being impofed upon either by the ignorance, prejudices, or intereft of thofe from whom he receives only occafional information.

Having merely fuggefted this, Specimens are exhibited of the manner of ufing fuch a hiftory, on the fuppofition that it exifted. For this purpose, a number of hypothetical facts are affumed, which are fuppofed to be felected from the history, and thrown into a practical form at the end of each chapter. These facts are arranged according to the principles formerly laid down, which are here practically illuftrated.

After exhibiting thefe fpecimens, the book is clofed with a few general directions for reforming the rates of duties, the revenue officers, and the revenue laws.

Though the author treats long-established prejudices and prevailing opinions with great freedom, yet he wishes to be fufficiently cautious in executing any plan of reformation.

• We

muft not only be fure, fays he, that principles are true in themfelves, but the prejudices of men with regard to them ought to be removed before they fhould become the established rules of our conduct.'

The volume concludes with a copious Appendix, containing a great many revenue accompts, chiefly extracted from the three reports of the revenue committee inftituted in the year 1783, and from papers officially laid on the table of the House of Commons. And it is from a patient and laborious investigation of these accompts that the author has formed the principles and opinions which he now offers to the confideration of the public.

We must acknowledge, in juftice to the author, that he has conducted his complicated investigation with much perfpicuity. On a fubject so extenfive, and hitherto imperfectly explored, it is difficult in every cafe to establish conclufions which are fecure from uncertainty and error; but he has purfued with philofophical difcernment the most useful tracks of enquiry ; and, by endeavouring to found his principles upon fact and obfervation, he at lealt approximates that decifive ftandard of experience, which is the ultimate teft of truth and certainty in all political fpeculations.

A Tour