Taxation.

The national government is supported by taxation in various ways, and it requires a great amount of money to carry on the business of our country even in times of peace—over $2,000,000,000. This money is raised through a system of taxation of two kinds—direct and indirect.

A direct tax is a tax on real property or a poll tax.

An indirect tax is a tax on one individual, but is indirectly paid by another. (Taxes assessed on merchandise are indirect, as the consumer pays them.)

Most of the money is raised by import duties and excise taxes.

Import duties are taxes on imported goods.

Excise tax is a tax levied on goods manufactured in this country.

Duties are taxes on goods imported from foreign countries. The consumer on imported goods indirectly pays the duty assessed by the government.

There are two kinds of duties—specific and ad valorem.

Specific duties are fixed amounts levied on certain commodities as the yard, pound and gallon.

Ad valorem duties are levied at a certain rate per cent on the value of the articles taxed.

Duties are leviable on either imports or exports.

Imports relate only to goods brought into the country from abroad.

Exports relate to goods sent out of a country.

There is a special system for the collection of import duties, by naming many places along the coast to be used as "ports of entry," where custom houses in charge of collectors have been established. "Each custom house has a collector and the government has employed a large force of officers and special agents to overtake any dishonesty—attempting to smuggle goods through without paying duty."The state legislature levies the state tax, the city council the city tax, and the taxes to keep up the national government are levied by Congress.

The law making power of Congress and state legislatures not only have the power of passing laws, raising money by taxation, but also the right and power of saying how that money shall be spent.

There are several kind of taxes collected for the benefit of the county, town, city and state, viz.: Poll tax, income, inheritance, franchise, property.

Poll tax: This is a tax on the person and not on property. A male citizen twenty-one and over must pay a poll tax of $1.00 even if he has no property. He must pay this tax before he can vote. In Kentucky the poll tax is one dollar.

Income Tax: There is an income tax levied on the income one receives and not on the amount of property he has. It is levied on salaries or profits upon business. Unmarried persons with an income of over $1,000.00 and married persons with an income of over $2,000.00 must pay an income tax.

Inheritance Tax: Many states have an inheritance tax levied on property inherited. This tax is really designated to reach wealthy people, and is easily collected since probate court records state the amounts. Kentucky has an inheritance tax, drawn and introduced by L. F. Johnson, of Frankfort, in 1906.

Franchise Tax: The government or state gives to a person or corporation special privileges, the rights to use the streets of a city for railway, water, lighting, gas plants, etc., is considered valuable property in the right vested in them by their franchise. This is really a source of income and should be taxed.

Property Tax: Property owners pay a large part of the money raised by taxation. Personal property which includes bonds, stocks, mortgages, household goods, jewels, etc.

Real estate which includes houses, lots, lands and building.

While taxes are levied upon real estate there are some kinds of property exempt from taxation, viz.: public institutions and libraries, cemeteries, school houses, churches, and other public buildings.A great amount of revenue is derived by state and local governments from licenses, fees and special assessments. Men and women engaged in certain kinds of business must pay to the national, state and local governments a license or fees, as merchants, peddlers, manufacturers, pawnbrokers, etc.

A fee is a sum paid to an officer of the government, state, city or county for performing some public service or for a license in business. If you wanted to get a deed to land recorded you would have to pay the officer a fee.

The expense of our government is enormous, but the paying of taxes is one way in which all must take part.

Acquisition of New Territory.

While the acquisition of new territory has increased the expenses of our nation, yet it has made us the greatest nation in the world.

We have expanded by acquisition of new possessions which Congress organized under the direct control of the "Federal Government," but giving them limited powers of self government, through legislation of their own. When their population is sufficient they will be admitted as states.

Today our national flag contains forty-eight stars, and no part of the United States except Alaska and Hawaii remains under a territorial form of government.

Alaska was purchased from Russia in 1867.

The President of the United States, with the advice and consent of the Senate, appoints the governor and judges of the courts.

They have a legislature composed of two houses whose members are elected by the people. A delegate to Congress with the right to take part in debates but not to vote is also elected by the people.

Hawaii: Hawaii is a regularly organized territory and is governed like Alaska; President appointing the governor with the consent of the Senate, etc.Possessions: The Philippines, Porto Rico, and other islands are possessions rather than territories of the United States.

Philippines: The Governor General and eight commissioners appointed by the President with the advice and consent of the Senate are at the head of the general government of the Philippines.

"Five members of the commission are heads of the executive departments as well as having legislative powers. The other four members have only legislative power."

Commission: The nine members of the commission appointed by the President constitute the Upper House of the Legislature known as the Senate.

Lower House: The members of the Lower House of Representatives are elected by the people of the various civilized districts.

The nine commissioners represent the legislative body and have control of that part of the island not civilized.

Courts: They have a system of courts in which the judges of the Supreme Court are appointed by the President, and the judges of the lower courts are appointed by the Governor General with the approval of the commission.

Commissioners: There are two resident commissioners sent to the United States from the Philippines with seats in the House of Representatives, but cannot vote, only taking part in the debates.

Provinces: The islands are divided into provinces "each of which is governed by a provincial board of three members, and each province has its own city or town with its local government." Two of the members of the boards are elected by the people, and the third, who is the treasurer, is appointed by the Governor General, but usually a "Filipino."

Porto Rico.

Under President Wilson's administration "The new organic law granted the people of Porto Rico a greater self government than they had ever enjoyed."They have a Governor appointed by the President, a legislature of two Houses elected by the people, and a system of courts.

"There are seventy-six cities and towns which enjoy some local government."

They send as their representative to Congress, a resident commissioner. While these new possessions are expensive they add great wealth and power to our nation.

Taxes are contributions that the people are required by the government to pay in order to meet the expenses of our nation.

We are not patriotic unless we respond to the call of our government.

Referendum and Initiative.

Some states have the referendum and initiative power of helping to make laws.

If a state legislature passes a law that the people do not approve of a petition may be signed by a certain number of voters which will require the law to be referred to the people for their approval or disapproval.

Referendum means referring a law passed by the legislature back to the voters for their approval or disapproval.

"If five per cent of the voters of a state and two-thirds of the congressional districts do not approve of a bill passed by the General Assembly they sign a petition and file it with the Secretary of State in ninety days after the General Assembly adjourns." The question involved is then submitted to the voters at the next election for their approval or disapproval.

The initiative is the right of the voters to start legislation. The object of the initiative and the referendum is to compel legislative bodies to act and respect the will of the people whom they represent.

The initiative petition must be filed four months before the regular election with the Secretary of State.

The District of Columbia.

The District of Columbia, including Washington, the Capital of the United States, is governed by Congress and by judicial and executive officers appointed by the President of the United States. The people have no power of self government.

The Constitution gives Congress the exclusive right of government in the District of Columbia.

It is governed by three commissioners appointed by the President. One must be an officer of the army and the other two appointed from civil life.

Congress keeps a watch over the District, and devotes certain days to considering the business of the District.

The courts of the district are Court of Appeals, Supreme Court, police court, justices of the peace.

The judicial officers are appointed by the President.

The District of Columbia has no representative in Congress.

Panama Canal Zone.

The Panama Canal Zone is under the control of a governor who is appointed by the President of the United States.

"It is neutral and open to vessels of commerce and war of all nations, but war vessels must pass through without delay and while in the canal cannot load or unload troops or munitions of war."

The cost of the construction of the canal was about $400,000,000. It shortens the voyage from New York to San Francisco 8,000 miles.

Guam and Samoan Islands.

These islands are naval stations and are governed by the naval officers stationed there.

Commerce.

Commerce is divided between the state and Federal governments. We have interstate commerce, foreign commerce and commerce with the Indians. Congress regulates commerce.Interstate commerce is carried on in the United States, as when goods are shipped from one state to another, or one place in a state to another, either by land or water. The Interstate Commerce Commission provided for by Congress is composed of nine men appointed by the President, and regulates interstate commerce. The members of this commission receive a salary of $10,000.00 annually.

Foreign Commerce.

Foreign commerce is commerce carried on with foreign countries. Certain regulations are prescribed for vessels engaged in foreign commerce, "Enter" and "Clear" ports.

All vessels registered in the United States are protected by the government in any part of the world. Only vessels can be registered by a citizen of the United States. No foreign vessel can register.

Congress regulates commerce with foreign nations and among the states, and Indian tribes.

Indian Tribes.

The government looks after the interest of "Indian affairs." There are about 300,000 Indians on 150 reservations in different states and territories all under the protection of the United States.

National Parks.

The national government has set aside several large tracts of land for National Parks. The Yellowstone National Park is about half as large as Massachusetts and is the most beautiful and interesting park in the world.