income tax. As the author explains in the preface, the book deals largely with the proposals before the Chamber of Deputies, and not with the completed law as finally passed.

An introductory chapter of some twenty pages is devoted to a survey of the nature of French taxation. While, to be sure, this is nothing more than a mere sketch, it is clear, and observes relative emphasis in an admirable manner. In France indirect taxation has probably found a higher development than in other countries. Indirect taxes yielded in 1908 over 20,000,000,000 francs against 560,000,000 from direct taxes. Some of the principal taxes are those levied upon wine, spirits, beer, sugar, salt, tobacco, etc. There are also the octrois, or gate duties, collected by some of the cities as a means of contributing their share of the direct taxes to the general treasury. The imperative necessity of finding a larger income for the state has led the legislative body to disguise, as far as possible, the nature and extent of the burden, lest the uninitiated should protest too violently against legitimate taxation. Nevertheless, it may be said with justice that the preference for indirect taxes in France has hitherto indicated a low state of political ethics relatively to that obtaining in Great Britain and Prussia.

Dr. Gebhardt next deals with the new general progressive income tax, and explains in detail the characteristic features of the same, especially in connection with the nature and extent of the income. The Parliamentary Commission on fiscal legislation dealt, in addition to the ordinary income proposals, with a supplementary income tax as a substitute for the four direct taxes-land and houses, doors and windows, trade licenses and house rentals. The rate was to be fixed at 5 per cent on the total income, from which a graduated reduction would be made for incomes from 5000 f. to 25,000 f., above which sum the full duty would be charged.

In Part III a careful estimate is made of the value of the taxes as an integral part of the French system, taking into consideration both the political and psychological aspects of the innovation. The taxes are the outcome of two years' careful discussion before M. Caillaux introduced his measure into the Chamber of Deputies. Many objections have been urged against what have been termed the socialistic tendencies of the measure. Article 90 imposes a progressive tax of from 4 to 5 per cent on revenues of companies which exceed $200,000. This tax will not

fall solely upon great corporations, as intended, but upon thousands of small shareholders in the Bank of France, the Credít Foncier, and others; while individual capitalists with a like income will escape with a tax of 312 per cent. The special tax (Art. 89) is also objected to, because it is a progressive tax on the amount of business done and not upon profits realized, the true indication of ability to pay. Moreover it is urged that too great inquisitorial powers are given to public officers, which may be not only offensive but hurtful to private business interests.

Dr. Gebhardt presents, in three parallel columns, a very interesting account of the evolution of the new measure. A good bibliography is given of works, in French and German, dealing with the subject under discussion. An index would be no doubt appreciated by all who may use the work.

Queen's University, Kingston.

WILLIAM WALKER SWANSON.

The Most-Favored-Nation Clause in Commercial Treaties. Its Function in Theory and in Practice and its Relation to Tariff Policies. By STANLEY KUHL HORNBECK. Bulletin of the University of Wisconsin; Economics and Political Science Series, Volume VI, No. 2. (Madison, Wis. 1910. Pp. 121.) With the great expansion of international trade during and after the seventeenth century the employment of the "mostfavored-nation" principle increased until it came to be regarded as the "corner-stone" of all modern commercial treaties. The fortunes of this proviso are described in this timely monograph. This includes an account of its origin and general acceptance; the scope of its operation and the various forms in which it appears; the practices of various nations, especially of the United States and England; the principal differences in interpretation; and the advantages and disadvantages claimed for the policy. A special chapter is devoted to the German American most-favored-nation relations, and the study closes with a biblio

graphy.

There was an early realization of the need of some means whereby nations sustaining commercial relations with each other could protect themselves from "present or future disadvantages and discriminations"; and this led to the adoption of the mostfavored-nation clause, which aims to insure to the parties to a treaty that any concession "which either grants to a third shall be granted to the other."

The principal interest centers about the account of the two views as to the proper form and interpretation of the clause, designated respectively as the unconditional and the conditional. The former, of which England is the leading champion, stands for the simplest form and its literal interpretation. According to this, each of two parties to a treaty containing the clause should receive at once and without further ado any favor extended by either to a third party.

The conditional form, on the other hand, qualifies the simple statement by adding the provision that advantages which one party to a treaty gives to a third party shall be enjoyed by the other party to the treaty "freely if the concession is freely made, or upon allowing the same compensation if the concession was conditional." This form originated with the United States at the very beginning of its foreign policy, and this nation has been its chief advocate. Indeed, the United States has insisted that the conditional policy is to be implied even when its treaties do not expressly so state, unless an unconditional grant is specifically made. European practice "followed first the unconditional, then the conditional, and then again the unconditional." Though on technical grounds there is much to be said in favor of the conditional form, the unconditional seems to represent the larger, broader statesmanship. The conditional form points towards the old policy of special restrictions, the general adoption of which would constitute a step backward in the development of commercial freedom.

The monograph shows extended investigation. There are, however, some evidences of lack of care in putting the results into final form. There are occasional abrupt transitions and some statements which are either ambiguous or assume a knowledge on the part of the reader which only the technically informed can be expected to possess. Exception may be taken to the statement (p. 88) that "Prussia was in no sense 'absorbed' in the forming of the German Empire." Nor will all agree that (p. 102) "Logically, the universal acceptance of that form and interpretation of the clause which would satisfy the 'unconditional' school would eventually lead, whether that be its object or not, to absolute free trade." These are, however, minor defects. The author has made an interesting and useful contribution.

University of Cincinnati.

FREDERICK C. HICKS.

Report by Finance Committee on Income Tax Administration and Reform. (Birmingham: Chamber of Commerce. 1910. 3d.) It is gratifying to read a report in which that usually forgotten person, the taxpayer, receives some attention. Moreover this pamphlet throws much light upon some of the practical difficulties attending the assessment of what may be called industrial and commercial income. It confirms the impression which the Report of the Parliamentary Committee of 1906 had left in the minds of those familiar with it, that under Schedule D a good deal more evasion exists than is ordinarily supposed; and shows that the honest taxpayer has no little difficulty in making correct return in the form now prescribed. The Birmingham Committee makes out a strong case in support of its contention that insufficient allowance is made for depreciation and obsolescence of plant and machinery, and that, for this and other reasons the income tax "has to be paid on a larger sum than any company would really be justified in showing as profit." It also presents strong reasons for believing that the working of the "three years' average" system under Schedule D is far from satisfactory. The absurdity of exempting coöperative societies from the income tax is also touched upon, as well as the obviously unfair procedure now followed in hearing appeals from income tax assessments. After making all allowance for possible bias on the part of a committee representing the taxpayers' interests it would seem that the Birmingham committee has pointed out certain serious defects in the much vaunted British income tax, which well merit the attention of the government. The growing interest in income taxation in the United States makes the report peculiarly interesting to Americans. C. J. B.

NEW BOOKS

ALSTON, L. Elements of Indian taxation, with special reference to Indian conditions. (London. Pp. 128. 2s.)

ATTON, H. and HOLLAND, H. H. The King's customs. Vol. II. (London: Murray. Pp. 518. 10s. 6d.)

An account of maritime revenue, contraband traffic, introduction of free trade, and the abolition of the navigation and corn laws. This volume covers the period 1801 to 1855.

CUNNINGHAM, A. British credit in the last Napoleonic war. With an appendix containing a reprint of Des finances de l'Angleterre, by H. LASALLE. Girton College Studies. (London: Cambridge University Press. 1910.)

FITGER, E. Der Zollstreit Canadas in den Vereinigten Staaten. (Berlin: Simion. 1910. Pp. 63. 2m.)

FORD, J. H. Cost of our national government. Columbia University Lectures, George Blumenthal Foundation. (New York: Macmillan. 1910. Pp. xv, 147. $1.60.)

HIRST, F. W. and PAISH, G. The credit of nations; and trade balance of the United States. National Monetary Commission. (Washington. Sen. Doc., No. 579. 1910.)

The contribution by Mr. Hirst, editor of the Economist, summarizes the history of the national debts of Great Britain, Germany, France, and the United States. For the most part the author follows the writings of well-known writers. The essay by Mr. Paish, editor of The Statist, is critical in character; he discusses the effect of capital investments upon trade; and makes independent calculations of Europe's investments in the United States, and of the remittances made by the United States to Europe in the settlement of trade balances, by tourists, to friends, for freight, and insurance. It is concluded that this country has to make an annual payment of about $595,000,000 for purposes other than the purchase of foreign goods. The inquiry is reinforced by several pages of useful tables. SCHÖNBERG, L. Die Technik des Finanzhaushalts der deutschen Städte im Mittelalter. (Stuttgart: Cotta. 1910. Pp. xiv, 199. 4.20m.) WITTMAYER, L. Eigenwirtschaft der Gemeinden und Individualrechte der Steurzahler. (Leipzig: Duncker and Humblot.

1910.)

A juristic study of the rights and duties of the French taxpayer in his relation to the local administration.

Population and Migration

Report on Industrial Employment of Married Women and Infantile Mortality. (Birmingham, England: Health Department. 1910. Pp. 27.)

A study was made of two wards in Birmingham for the year 1908, to determine whether the industrial employment of mothers prejudicially affected their own health, or the health of their infants. These two wards selected had a greater density of population, and the industrial employment of women was more common in this section. The economic and social position of the families. in which the mothers were industrially employed was similar to that of the families where the mothers were in the home during the year in question. There were 1,503 children born alive in these wards during 1908, and 39 still-births. It was impossible to study all of the children during the first year of life, but there were 1,212 mothers who could be followed throughout this year. Of these 601 were not industrially employed during pregnancy and 611 were so employed. 31.5 per cent of the mothers were employed after the birth of their children, and 68.5 per cent were not