INTERNAL ORGANIZATION OF THE POST OFFICE DEPARTMENT INTERNAL ORGANIZATION OF THE DEPARTMENT OF THE INTERIOR 200-201 272 287 .504-505 762 CYCLOPEDIA OF AMERICAN GOVERNMENT VOLUME II FINANCE, EUROPEAN SYSTEM OF How Far National Systems are Similar.- | net national revenues partly because that gov Strictly, there is no European system of fi- ernment defrays armament costs from current nance. Each country has its own system which revenues. Continental countries extensively is a joint-product of historical conditions and meet them by enlarging the debt-placing an evolving science of finance. Both influences, loans to cover resulting deficits or to pay "exreenforced by conscious imitation of other na- traordinary" costs of armaments. (2) Costs tions, coöperate to bring about an essential of debt service; which are current payments similarity of main features in the several na- towards costs of past wars, covering deficits tional systems. Like needs for public expendi- | created by armament expenses, besides making tures result from like constitutional limita- public improvements and acquiring more or tions, and forms of political organization and less productive enterprises-railways, telesocial and political theories, and like indus- graphs, telephones, tobacco and other factories. tries, trade, forms of property and income (3) Expenditures for education; improving provide substantially similar sources of public public schools and educational facilities, penrevenue. The science of finance, dealing with sioning retired teachers, enlarging the share similar data and being itself a product of col- of central government in these costs. (4) Prolaboration by scientists and administrators in moting industries and commerce, including all countries, also tends to create a uniformity transport and communication facilities, a rapof national systems. idly increasing item. (5) Social welfare; especially costs of public employment bureaus, old age pensions, workingmen's insurance. Even Great Britain, though tardily, has vigorously adopted these policies. Expenditures. The ordinary gross expenditures of leading European governments under main heads, according to Schwarz, were (in millions) in 1908: FINANCE, LOCAL SYSTEMS OF costs of general services such as education, prises-gas, water, light, tramways—and octhoroughfares, prisons, police, public assist trois (France, Italy). The tendency is to separate sources of national and local revenues, assigning to central governments taxes based on ability to pay, and to local governments taxes on land, buildings, businesses, services 5.4 93.3 1.3 Despite varying methods of classification it | wherein values are directly affected by local is clear that state enterprises yield a striking improvements. The Miquel reforms in Prussia part of net revenues in Germany, and notable (1893-95) completely applied this principle. and increasing sums in other continental states, Besides attaining greater efficiency and equity where the acquisition of the more lucrative in administration of revenues, they release the railway lines proceeds. These revenues, how- people from local consumption taxes and naever, have a tendency to decline in hard times, tional revenues from local additions. like customs duties. Customs and taxes provide nine-tenths of the British and French, and four-fifths of the Italian and Austro-Hungarian net revenues. On a similar basis-including fees above placed under "other receipts"-Germany's proportion would be about three-fifths. British customs duties yield over one-fifth of national revenue, 95 per cent of this being from alcoholic liquors, tobacco and "colonial" products. The other governments derive approximately oneseventh of their national revenues from customs, chiefly from duties designed for agricultural and industrial protection. Internal taxes are drawn mainly from income and consumption taxes, which are developing as parts of the tax system with increasing emphasis on the former. Some striking tendencies of income taxation are: (1) differentiation of sources and imposing of higher rates on funded incomes; (2) accentuation of progressive rates on larger incomes, partly by exemption and abatement on smaller incomes, partly by directly progressive rates, also by a super-tax (Great Britain) and by a supplementary property tax (Prussia). The latest English and German legislation seeks special contributions from the "unearned, increment" in land. Inheritance taxes, rapidly progressive as to amount and kinship of successor, further accentuate those tendencies which result jointly from fiscal exigencies and practical recognition of faculty and social theories of taxation. Consumption taxes come chiefly from alcoholic drinks, tobacco, extensively from sugar and salt. Fees, registration and stamp duties, variously classified under taxes and other receipts, yield considerable sums. See APPROPRIATIONS, AMERICAN SYSTEM OF; COST OF GOVERNMENT IN THE UNITED STATES ; DEBT, PUBLIC ADMINISTRATION OF; FINANCIAL POLICY OF THE UNITED STATES; PUBLIC ACCOUNTS; STATISTICS, OFFICIAL COLLECTION OF; TARIFF POLICY OF THE UNITED STATES; TAXATION, CONSTITUTIONAL BASIS of. References: C. F. Bastable, Public Finance (3d ed., 1903), I-V; H. C. Adams, Sci. of Finance (1898), Pt. I, Bk. I, Pt. II; C. C. Plehn, Introduction to Public Finance (3d ed., 1911), Pts. I-III; E. R. A. Seligman, Essays in Taxation (1897), ch. x, Income Tax (1911); J. W. Grice, National and Local Finance (1910); R. C. Brooks, "German Imperial Tax on Unearned Increment" in Quart. Jour. Econ., XXV (1911), 682-709; Schönberg's Handbuch der Politischen Oekonomie, III (4th ed., 1897–98); O. Schwarz, "Finanzen der Gegenwart" in Conrad, Handwörterbuch der Staatswissenschaften, IV (3d ed., 1909), 226-61; T. Eheberg, Finanzwissenschaft (11th ed., 1911); P. LeroyBeaulieu, Traité de la Science des Finances, I, II (8th ed., 1912). E. H. VICKERS. FINANCE, LOCAL SYSTEMS OF. Types and Forms.-Heterogeneous systems of finance in the United States reflect with varying degrees of fidelity characteristics derived from the main types of local administration: viz., township, county, and mixed systems. Autonomous cities, to some extent towns and villages, represent a fourth distinct, but varying type. Under each local system, many school districts levy taxes and appropriate funds for school purposes, though actual fiscal adminis tration is exercised by township or county officials. Enabling powers conferred by legisla tures on each kind of local administration limit variously and closely the purposes of expenditure, amount of debt, sources and amount of taxes. Local revenues present greater variety than national revenues, both between countries and between gradations in local government. They are chiefly derived from taxes on property, limited additions to national taxes, funds allo- New England.-In New England towns, the cated by the central government from special town meetings (see) vote appropriations and revenues or for special services; especially from tax levies. Selectmen (see) or assessors (see) fees, licenses, earnings from municipal enter-value and assess real estate and personal prop |