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A Treatise on the Law of Income Taxation under Federal and State Laws. By HENRY CAMPBELL BLACK. (Kansas City, Mo.: Vernon Law Book Company. 1913. Pp. xvi, 403. $4.00.)

The Federal Income Tax Law. By HENRY CROFUT WHITE. (New York: The Banks Law Publishing Co. 1913. Pp. xxviii, 332.)

The above are among the first of the books called forth by the passage of the federal income tax law. All are written from a purely legal standpoint. They contain in each case the text of the law and endeavor to throw such light upon its interpretation as may be derived from judicial decisions in connection with previous income tax laws in this country, both federal and state, and from the rulings of the Internal Revenue Office and the Treasury Department with reference to the earlier federal laws. The earlier regulations issued by the Commissioner of Internal Revenue in regard to collection at the source under the present law are also included in the texts or in the form of separate pamphlets.

The earlier federal income tax acts are reprinted in appendices by all except Tucker, the Civil War legislation being given more fully by Frost and White than by Black. White and Black include also the Corporation Tax Law of 1909, and Black the existing income tax laws of the individual states and Hawaii. White gives a dated list of laws imposing income taxes in our colonies and states and in foreign countries. Tucker's work is perhaps the most compact and the most conveniently arranged and furnishes equally with the others the information at present available for the interpretation of the existing law.

H. B. G.

The Life of Thaddeus Stevens. By JAMES ALBERT WOOdburn. (Indianapolis: The Bobbs-Merrill Company. 1913. Pp. 620. $2.50.)

The interest of this volume for the economist lies in the discussion of Stevens' views on the issue of legal tender notes and on the payment of the Civil War debt.

It is well known that Stevens in his advocacy of the first legal tender bill in the House expressed the view that the $150,000,000 issue of legal tender notes fundable into five-twenty six per cent bonds would make it possible to place at par, within a short time, the $500,000,000 of these bonds authorized by the act. As a

matter of fact, very few of these notes were so funded. Certain writers on the financial history of the Civil War, among whom Professor Woodburn mentions Dewey, in his Financial History of the United States, and Mitchell, in his History of the Greenbacks, have spoken of Stevens as being mistaken in his prediction. These statements Professor Woodburn shows to be inaccurate.

The bill as it passed the House conferred unlimited legal tender power on the notes and contained no provision for the deposit of these notes at interest with the government. The bill was amended in the Senate, and as finally enacted into law required that customs duties and interest on the public debt be paid in coin, and authorized the Secretary of the Treasury to receive deposits of the notes, for not less than thirty days, at five per cent interest. In Stevens' view, the depreciation of the notes, which he believed would result from the limitation of their legal tender quality, and the opportunity to make short-time deposits at interest, would work against funding into bonds; and Professor Woodburn brings out clearly the fact that in discussing the bill in its final form he asserted his belief that no such funding would take place. Stevens always maintained that, except for the Senate amendments, greenbacks would not have depreciated; that the original $150,000,000 would have been exchanged for bonds and, when reissued, exchanged again; and that no additions to the original issue would have been necessary. For the plan as it was enacted into law he disclaimed all responsibility, and predicted not only that it could not assist in the placing of bonds, but that additional issues of notes would be shortly required. We may doubt whether the plan advocated by Stevens would have worked as he expected, but we cannot charge him with misplaced confidence in the plan finally adopted.

Professor Woodburn is evidently in sympathy with the issue of greenbacks, as well as with their use in the payment of debt when coin was not specified in the contract, and he gives a vigorous presentation of the arguments in support of these views. H. B. GARDNer.

The Britannic Question. By RICHARD JEBB. (London: Longmans, Green and Company. 1913. Pp. 262. $.35.)

In this weighty little book the historian of the imperial conference discusses the puzzling question of how to effect a close permanent union of the self-governing states of the British Em

pire. Shall it be by centralization or autonomy, by imperial federation or Britannic alliance, to use the author's phrase? Federation implies an imperial parliament controlling not only defense and foreign affairs, including trade, but to a large extent domestic concerns as well. This the author thinks impracticable; hence he argues strongly for a continuance of the existing colonial independence, together with a deliberate effort at that economic unification which underlies political unity. It is a voluntary partnership between Great Britain and her colonies, a partnership based on common economic interests, for which Mr. Jebb contends. While the end to be attained is political, the whole problem of means is in essence economic; it comes down to a question of trade policy. If the empire is to become and remain a reality, it must be upon the basis of a practically complete economic unification. To secure this unity, Mr. Jebb would apparently be glad to "bang, bolt and bar" the door on the rest of the world. The Britannic states should seek for:

(1) inter-state or Britannic free trade, coupled with fiscal protection as against foreign countries; and (2) the extension and cheapening of maritime communications by ship and telegraph, tending to the ultimate establishment of uniform rates irrespective of distance; the object of these measures being (a) to make the most of the Britannic market for Britannic products, and (b) to unify the remaining or foreign commercial interests of the several states (p. 156).

This conception raises world issues of the gravest importance. Mr. Jebb argues that, in the absence of such obstacles as tariffs and immigration laws, finance, already internationalized, might soon reduce labor everywhere "to a common standard of wages and living approximating to that of the least advanced among the industrial proletariats of the world" (page 154). Such a leveling he is unwilling to see: moreover, labor in Australasia and western Canada is determined not to be obliged to compete with Asiatics. Hence the necessity for restrictive tariffs and immigration exclusion laws, and the ideal of an economically isolated empire sufficient to itself, and prepared to fight to keep its doors closed. The economics of Mr. Jebb's major premise will lack much of commanding universal assent among competent students; the economic soundness of his ideal will be questioned, and the adequacy of his means will be doubted. Nevertheless it is a distinct service that he performs in conceiving clearly and stating sharply the ideal and its implications. And there is a certain robust national

ism, a glorified insularity about it, that is refreshing in these days of cosmopolitan tolerance.

Economic isolation is but one half the problem, however; economic unification within the empire is the work directly in hand, and such unification is the essential means to the desired isolation. Mr. Jebb would aim here at inter-imperial free trade, with reduction of freight and passenger rates to a uniform low level, irrespective of distance. The latter proposition could scarcely be seriously put forward except for an empire of water-borne commerce. It can hardly be regarded as more than a pious wish. As for free trade within the empire, of course the first step toward it is to destroy what free trade already exists. England ought to impose protection in order to be able to take it off in favor of the colonies, though Mr. Jebb admits that the colonies would probably prefer the existing free import rather than taxed imports with preference. He argues, however, that so long as the colonies are exporters of surplus food-stuffs, and Great Britain of manufactures, such a preferential arrangement is possible, but that the period of such possibility may soon pass. In Mr. Jebb's view, the chief obstacle to unification is the different status of labor in Britain and the colonies. Inter-imperial free trade and low uniform transportation rates would mean the grading down of colonial labor to the British level. Unless British social conditions, accordingly, are leveled up to the Australian standard, "there can be no hope of Britannic free trade and economic unification.”

What of India? Would Mr. Jebb exclude it from the empire? If not, does he look for a rapid leveling up of Indian social conditions? Or will the Australians consent to compete with the Hindus? If not, will the Indians fight for the right of interimperial free migration? These be troublesome questions for the empire builder.

Yet further, leaving India out of the account, is it so certain that imperial patriotism will indefinitely lead six self-governing countries to trade with one another if their economic interests should lead them to trade elsewhere? All experience says no, and Mr. Jebb's contention that any possible tariff, plus colonial preference, would accomplish such a result, is a pure assumption for which the history of the existing preference certainly affords no warrant. Preference is rather a picayune device to effect so large a result.

The book is unusually clear, vigorous, and thought provoking.

The ideal of an empire pooling its economic resources and pursuing a policy of commercial isolation is definite and comprehensible. The means proposed for realizing it are, in my judgment, wholly inadequate economically to that end; but at least the fundamental importance of the economic basis for political relations is properly emphasized, while the power of legislative arrangements to control trade is largely overestimated. Mr. Jebb's work will not be overlooked by any serious student of imperial politics and trade relations.

Columbia University.

NEW BOOKS

H. R. MUSSEY.

ARNOLD, B. H. The fall of protection. (London: King. 1913. 12s.

6d.)

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Humblot. 1913. 2 M.)

BREDT, J. V.

Deichert.

(Leipzig: Duncker &

Die Besteuerung nach der Leistungsfähigkeit. (Leipzig: 1913. 4.50. M.)

CAILLAUX, J. L'impôt sur le revenu. (Paris: Berger-Levrault. 1913. 3.50 fr.)

CHASLES, P. Une banque d'état pour le crédit local en Russie. (Paris: Giard & Brière. 1913. 1 fr.)

CONTI, E.

Guide du receveur particulier des finances. Vol. I. Renseignements généraux et surveillance des différents services. Vol. II. Comptabilité, caisse et portefeuille. (Paris: Berger-Levrault. 1918. Pp. vi, 348; v, 329. 9.50 fr.)

DAMASCHKE, A. Die Besteuerung des Bodens. Aufgaben der Gemeindepolitik, 1. (Jena: Fischer. 1913. 1.20 M.)

DAVIES, G. Report of land valuation appeals. (London: Sweet & Maxwell. 1918. 7s. 6d.)

DOWDING, W. E. The tariff reform mirage. (London: Metheuen. 1913. Pp. 366. 3s. 6d.)

EATON, A. M, Free trade vs. protection. (Chicago: McClurg. 1918. Pp. ix, 297. $1.)

This is a hodge-podge of free-trade arguments, mostly of date about 1870, sandwiched with some tariff history taken mostly from Professor Taussig. It is avowedly "not an attempt at a learned book," but is controversial, aggressive, and contemptuous, and deserves no consideration. H. R. MUSSEY.

FANKHAUSER, W. C. A financial history of California: public revenues, debts, and expenditures. University of California publications in

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