Our public debts. undertakings upon the taxpayers during the year or two in which the work is being done. In consequence, the government needing the money issues what are called bonds, which bear a certain rate of interest and are payable after a term of years, usually twenty or thirty. These bonds are sold publicly to the highest bidders. If they sell for more than their face value, they are said to be at a premium, if for less than the amount given in the bond, they sell at a discount. At present our national government owes about one billion dollars, for which bonds have been issued. More than one half of these bear only two per cent interest, and sell at a premium, showing that the credit of our national government is the best in the world. Our cities are in debt for almost as much, but they have property which usually exceeds in value the amount of the debt. TEXT QUESTIONS 1. Why do our governments expend so much money ? 2. What is the difference between "investments" and " current expenses"? 3. Why are national taxes ordinarily indirect, whereas state and local taxes are usually direct? 4. Is it more difficult to assess real estate or personal property? Why? 5. State the three principal objections to the general property tax, and explain each. 6. What are corporation taxes? On what are the taxes assessed? 7. Why is the net revenue from municipal enterprises likely to be small? 8. Are all of the local taxes direct? (Apply the definition of a direct tax to each of those used by the local governments.) What is the best national tax under ordinary circumstances? in time of war? 9. Is it more difficult to assess general property than it is to determine the value of imports or manufactured articles subject to an excise tax? (Compare §§ 38, 47, 48.) 10. How does a government borrow money? 11. Explain the meaning of the following terms: "indirect taxation" (§ 35), "personal property " (§ 36), a "statement" (§ 37), "exempted property " (§ 37), " intangible property" (§ 38)," the equalization" of assessments (§ 39), "tax rate" (§ 40), “delinquent taxes" (§ 40), "net income " (§ 42), "poll taxes " (§ 43), "licenses" (§ 43), "special assessments " (843), "public utilities" (§ 44), “bequest" (§ 45), “dutiable goods (§ 46), "smuggling" (§ 47), "undervaluation" of property (§ 47), “moonshiners” (§ 48), "bond" (§ 50), "to sell at a premium ($ 50.) 12. Explain what is meant by (a) “the personal property tax law is practically a 'dead letter'" (§ 38), (b) "the transference of property" (§ 48). I. For what does our city (or county) spend the most money? 2. What property does this city own? Is it probably worth more than the amount of the city's debt? 3. What is the chief advantage of indirect taxes? When may the fact that an indirect tax is not felt be a great disadvantage? 4. Is property in this section assessed at its real value, or is it greatly undervalued ? 5. When are our taxes due ? Is there a poll tax in this county? 6. What is the assessed value of property in this county (or city)? How much money does the county government raise by means of the general property tax? How do you find the tax rate? Find it. 7. Does our state devote most of its capital and energy to agriculture, or to manufacturing and commerce? To what extent is the general property tax used in this state ? 8. What is a franchise? Explain how “the sale of franchises is even now a help in paying a city's expenses." (Consult § 103.) E 9. Should not the rate of a tax be greater for a rich man than for a poor man ? 10. Why do the imports of goods decrease visibly in time of war? 11. Little tricks of smuggling. (Cosmopolitan, XXVIII (1900), pp. 564-570.) 12. Moonshiners and their ways. (1897), pp. 127-134.) (Cosmopolitan, XXIII 13. What is meant by the Supreme Court's declaring the income tax of 1894 unconstitutional? (Consult § 187.) 14. Fill out the blanks in the tables below, obtaining figures from newspaper almanacs and from reports of local officials. CHAPTER IV THE PROTECTON OF INDIVIDUAL RIGHTS 51. Individual Rights in History. In addition to the privileges which we have considered in the preceding chapters and the benefits which we enjoy under our governments as described in Parts II and III of this book, there are certain legal rights which are guaranteed to every citizen by the Constitution of the United States and by the constitution of the state in which he resides. Many of these rights constitute what we call "individual liberty," because the constitutions protect individuals from the governments. Some of them have a most interesting history, for they are the result of the struggle which took place in England and in the colonies between the kings and their representatives on the one hand and the people on the other. By centuries of patient effort did our ancestors secure these privileges which made the English-speaking people renowned throughout the world as a liberty-loving and a free people. Individual colonies. of free speech and a 52. Freedom of Speech and of the Press. We can- Importance not realize what it means to be able to speak and write freely our opinions on all subjects without dan- free press. ger of being fined or imprisoned. Neither can we appreciate the importance of having in this country newspapers which are allowed to print news regard Libel suits. Religious freedom in history. ing public business, to explain the meaning of proposed laws, and to criticise public officials who do wrong. Very often our newspapers go too far. They search out the faults of those belonging to the opposite party and greatly exaggerate the failings of their opponents by word and by "cartoon." Yet it is true that there can be no free people without a free press, and we should be much worse off if our governments might suppress news and reports, as may be done in many foreign countries. Freedom of speech and of the press, moreover, does not mean that one person may maliciously injure the reputation of another, for that is libel, and is punishable in every part of the Union by imprisonment or fine. 53. Religious Liberty. It is no less difficult for us to understand that people have not always been permitted to hold what religious views they pleased and to worship God in their own way. Any other .system is to us almost unbelievable, and yet we know that in past ages millions of people have suffered death rather than support a religion in which they did not believe, and that at present in some countries all people must contribute to a church designated by the government. It is eminently fitting that in this country, where religious freedom was permitted when restrictions existed everywhere else, our national and state constitutions The religious should provide for the fullest liberty in religious rights we matters. No government may dictate to any one now enjoy. what church he shall attend, or compel him to con |