sells a future revenue of much greater value. | His unsuccessful experiments occasion only a Some leases prescribe to the tenant a cer- In or Such a system of administration might, perhaps, free a tax of this kind from any degree of uncertainty, which could occasion either oppression or inconveniency to the contributor; and might, at the same time, serve to introduce into the common management of land such a plan of policy as might contribute a good deal to the general improvement and good cultivation of the country. The expense of levying a land-tax, which varied with every variation of the rent, would, no doubt, be somewhat greater than that of levying one which was always rated according to a fixed valuation. Some additional expense would necessarily be incurred, both by the different register-offices which it would be proper to establish in the different districts of the country, and by the different valuations which might occasionally be made of the lands which the proprietor chose to occupy himself. The expense of all this, however, might be very moderate, and much below what is incur red in the levying of many other taxes, which afford a very inconsiderable revenue in comparison of what might easily be drawn from a tax of this kind. Some landlords, instead of a rent in money, require a rent in kind, in corn, cattle, poultry, wine, oil, &c. ; others, again, require a rent in service. Such rents are always more hurtful to the tenant than beneficial to the landlord. They either take more, or keep more out of the pocket of the former, than they put into that of the latter. In every country where they take place, the tenants are poor and beggarly, pretty much according to the degree in which they take place. By valuing, in the same manner, such rents rather high, and consequently taxing them some- The discouragement which a variable landwhat higher than common money-rents, a tax of this kind might give to the improve practice which is hurtful to the whole comment of land, seems to be the most important munity, might, perhaps, be sufficiently dis-objection which can be made to it. The land. couraged. When the landlord chose to occupy himself a part of his own lands, the rent might be valued according to an equitable arbitration of the farmers and landlords in the neighbourhood, and a moderate abatement of the tax might be granted to him, in the same manner as in the Venetian territory, provided the rent of the lands which he occupied did not exceed a certain sum. It is of importance that the landlord should be encouraged to cultivate a part of his own land. His capital is generally greater than that of the tenant, and, with less skill, he can frequently raise a greater produce. The landlord can afford to try experiments, and is generally disposed to do so. lord would certainly be less disposed to im prove, when the sovereign, who contributed nothing to the expense, was to share in the profit of the improvement. Even this objec tion might, perhaps, be obviated, by allowing the landlord, before he began his improvement, to ascertain, in conjunction with the officers of revenue, the actual value of his lands, according to the equitable arbitration of a cer tain number of landlords and farmers in the neighbourhood, equally chosen by both parties: and by rating him, according to this va luation, for such a number of years as might be fully sufficient for his complete indemni. fication. To draw the attention of the sove reign towards the improvement of the land from a regard to the increase of his own re- to defraud the public revenue, might convenue, is one of the principal advantages pro- bine to conceal the real terms of the lease. posed by this species of land-tax. The term, Doomsday-book seems to have been the result therefore, allowed, for the indemnification of of a very accurate survey of this kind. the landlord, ought not to be a great deal In the ancient dominions of the king of longer than what was necessary for that pur- Prussia, the land-tax is assessed according to an pose, lest the remoteness of the interest should actual survey and valuation, which is reviewdiscourage too much this attention. It had ed and altered from time to time. AccordDetter, however, be somewhat too long, than ing to that valuation, the lay proprietors pay in any respect too short. No incitement to from twenty to twenty-five per cent. of their the attention of the sovereign can ever coun- revenue; ecclesiastics from forty to forty-five terbalance the smallest discouragement to that per cent. The survey and valuation of Sileof the landlord. The attention of the sove- sia was made by order of the present king, it reign can be, at best, but a very general and is said, with great accuracy. According to vague consideration of what is likely to con- that valuation, the lands belonging to the tribute to the better cultivation of the greater bishop of Breslaw are taxed at twenty-five part of his dominions. The attention of the per cent. of their rent. The other revenues landlord is a particular and minute considera- of the ecclesiastics of both religions at fifty tion of what is likely to be the most advan- per cent. The commanderies of the Teutonic tageous application of every inch of ground order, and of that of Malta, at forty per cent. upon his estate. The principal attention of Lands held by a noble tenure, at thirty-eight the sovereign ought to be, to encourage, by and one-third per cent. Lands held by a every means in his power, the attention both base tenure, at thirty-five and one-third per of the landlord and of the farmer, by allow-cent. ing both to pursue their own interest in their The survey and valuation of Bohemia is own way, and according to their own judg- said to have been the work of more than a ment; by giving to both the most perfect se- hundred years. It was not perfected till after curity that they shall enjoy the full recom- the peace of 1748, by the orders of the prepence of their own industry; and by procur-sent empress queen. The survey of the duchy ing to both the most extensive market for of Milan, which was begun in the time of every part of their produce, in consequence Charles VI., was not perfected till after 176C of establishing the easiest and safest commu- It is esteemed one of the most accurate that nications, both by land and by water, through has ever been made. The survey of Savoy every part of his own dominions, as well as and Piedmont was executed under the orders the most unbounded freedom of exportation of the late king of Sardinia. to the dominions of all other princes. In the dominions of the king of Prussia, the revenue of the church is taxed much higher than that of lay proprietors. The revenue of the church is, the greater part of it, a burden upon the rent of land. It seldom happens that any part of it is applied towards the im If, by such a system of administration, a tax of this kind could be so managed as to give, not only no discouragement, but, on the contrary, some encouragement to the improvement of land, it does not appear likely to occasion any other inconveniency to the land-provement of land; or is so employed as to lord, except always the unavoidable one of being obliged to pay the tax. contribute, in any respect, towards increasing the revenue of the great body of the people. His Prussian majesty had probably, upon that account, thought it reasonable that it should contribute a good deal more towards relieving the exigencies of the state. In some countries, the lands of the church are exempted from all taxes. In others, they are taxed more lightly than other lands, In the duchy of Milan, the lands which the church possessed before 1575, are rated to the tax at a third only of their value. In all the variations of the state of the society, in the improvement and in the declension of agriculture; in all the variations in the value of silver, and in all those in the standard of the coin, a tax of this kind would, of its own accord, and without any attention of government, readily suit itself to the actual situation of things, and would be equally just and equitable in all those different changes. It would, therefore, be much more proper to be established as a perpetual and unalterable In Silesia, lands held by a noble tenure are regulation, or as what is called a fundamental taxed three per cent. higher than those held law of the commonwealth, than any tax which by a base tenure. The honours and priviwas always to be levied according to a certain vileges of different kinds annexed to the forvaluation. mer, his Prussian majesty had probably ima Some states, instead of the simple and ob-gined, would sufficiently compensate to the vious expedient of a register of leases, have proprietor a small aggravation of the tax : had recourse to the laborious and expensive one of an actual survey and valuation of all the-lands in the country. They have suspected, probably, that the lessor and lessee, in order * Memoires concernant les Droits, &c. tom. I. p. 114 115, 116, &c. + Id. tom. i. p. 83, 84. Id. p. 280, &c.; also p. 287, &c. to 316. but to the Produce of Land. while, at the same time, the humiliating infe- | riority of the latter would be in some measure Taxes which are proportioned, not to the Rent alleviated, by being taxed somewhat more lightly. In other countries, the system of taxation, instead of alleviating, aggravates this inequality. In the dominions of the king of Sardinia, and in those provinces of France which are subject to what is called the real or predial taille, the tax falls altogether upon the lands held by a base tenure. Those held by a noble one are exempted. A land tax assessed according to a general survey and valuation, how equal soever it may be at first, must, in the course of a very moderate period of time, become unequal. To prevent its becoming so would require the continual and painful attention of government to all the variations in the state and produce of every different farm in the country. The governments of Prussia, of Bohemia, of Sardinia, and of the duchy of Milan, actually exert an attention of this kind; an attention so unsuitable to the nature of government, that it is not likely to be of long continuance, and which, if it is continued, will probably, in the long-run, occasion much more trouble and vexation than it can possibly bring relief to the contributors. TAXES upon the produce of land are, in reality, taxes upon the rent; and though they may be originally advanced by the farmer, are finally paid by the landlord. When a certain portion of the produce is to be paid away for a tax, the farmer computes as well as he can, what the value of this portion is, one year with another, likely to amount to, and be makes a proportionable abatement in the rent which he agrees to pay to the landlord. There is no farmer who does not compute be fore hand what the church tythe, which is a land tax of this kind, is, one year with another, likely to amount to. The tythe, and every other land tax of this kind, under the appearance of perfect equality, are very unequal taxes; a certain por. tion of the produce being in different situa tions, equivalent to a very different portion of the rent. In some very rich lands, the produce is so great, that the one half of it is fully sufficient to replace to the farmer his capital employed in cultivation, together with the ordinary profits of farining stock in the In 1666, the generality of Montauban was neighbourhood. The other half, or, what assessed to the real or predial taille, accord- comes to the same thing, the value of the ing, it is said, to a very exact survey and va- other half, he could afford to pay as rent to luation. By 1727, this assessment had be- the landlord, if there was no tythe. But if come altogether unequal. In order to remedy a tenth of the produce is taken from him in this inconveniency, government has found no the way of tythe, he must require an abatebetter expedient, than to impose upon the ment of the fifth part of his rent, otherwise whole generality an additional tax of a hun- he cannot get back his capital with the ordidred and twenty thousand livres. This addi-nary profit. In this case, the rent of the tional tax is rated upon all the different dis- landlord, instead of amounting to a half, or tricts subject to the taille according to the old assessment. But it is levied only upon those which, in the actual state of things, are by that assessment under-taxed; and it is applied to the relief of those which, by the same assessment, are over-taxed. Two districts, for example, one of which ought, in the actual state of things, to be taxed at nine hundred, the other at eleven hundred livres, are, by the old assessment, both taxed at a thousand livres. Both these districts are, by the additional tax, rated at eleven hundred livres each. But this additional tax is levied only upon the district under-charged, and it is applied altogether to the relief of that overcharged, which consequently pays only nine hundred livres. The government neither gains nor loses by the additional tax, which is applied altogether to remedy the inequalities arising from the old assessment. The application is pretty much regulated according to the discretion of tae intendant of the generality, and must, therefore, be in a great measure arbitrary. Note 46. Memoires concernant les Droits, &c. tom. ii. p. 139, &C. five-tenths of the whole produce, will amount only to four-tenths of it. In poorer lands, on the contrary, the produce is sometimes so small, and the expense of cultivation so great, that it requires four-fifths of the whole pro duce, to replace to the farmer his capital with the ordinary profit. In this case, though there was no tythe, the rent of the landlord could amount to no more than one-fifth or two-tenths of the whole produce. But if the farmer pays one-tenth of the produce in the way of tythe, he must require an equal abatement of the rent of the landlord, which will thus be reduced to one-tenth cnly of the whole produce. Upon the rent of rich lands the tythe may sometimes be a tax of no more than one-fifth part, or four shillings in the pound; whereas upon that of poorer lands, it may sometimes be a tax of one half, or of ter shillings in the pound. The tythe, as it is frequently a very un equal tax upon the rent, so it is always a great discouragement, both to the improvements of the landlord, and to the cultivation of the farmer. The one cannot venture to make the most important, which are generally the most expensive improvements; nor the other to small fortune who lives upon his estate, may raise the most valuable, which are generally, sometimes, perhaps find some advantage in too, the most expensive crops; when the receiving, the one his tythe, and the other his church, which lays out no part of the expense, rent, in kind. The quantity to be collected, is to share so very largely in the profit. The and the district within which it is to be colcultivation of madder was, for a long time, lected, are so small, that they both can overconfined by the tythe to the United Provin- see, with their own eyes, the collection and ces, which, being presbyterian countries, and disposal of every part of what is due to them. upon that account exempted from this destruc- A gentleman of great fortune, who lived in tive tax, enjoyed a sort of monopoly of that the capital, would be in danger of suffering useful dyeing drug against the rest of Eu much by the neglect, and more by the fraud, rope. The late attempts to introduce the of his factors and agents, if the rents of an culture of this plant into England, have been estate in a distant province were to be paid made only in consequence of the statute, to him in this manner. The loss of the sowhich enacted that five shillings an acre should vereign, from the abuse and depredation of be received in lieu of all manner of tythe upon his tax-gatherers, would necessarily be much madder. greater. The servants of the most careless private person are, perhaps, more under the eye of their master than those of the most careful prince; and a public revenue, which was paid in kind, would suffer so much from the mismanagement of the collectors, that a very small part of what was levied upon the people would ever arrive at the treasury of the prince. Some part of the public revenue of China, however, is said to be paid in this manner. The mandarins and other tax-gatherers will, no doubt, find their advantage in continuing the practice of a payment, which is so much more liable to abuse than any payment in money. As through the greater part of Europe, the church, so in many different countries of Asia, the state, is principally supported by a land tax, proportioned not to the rent, but to the produce of the land. In China, the principal revenue of the sovereign consists in a tenth part of the produce of all the lands of the empire. This tenth part, however, is estimated so very moderately, that, in many provinces, it is said not to exceed a thirtieth part of the ordinary produce. The land tax or land rent which used to be paid to the Mahometan government of Bengal, before that country fell into the hands of the English East India company, is said to have amounted to about a fifth part of the pruduce. The land tax of ancient Egypt is said likewise to have amounted to a fifth part. A tax upon the produce of land, which is levied in money, may be levied, either according to a valuation, which varies with all the variations of the market price; or according In Asia, this sort of land tax is said to in- to a fixed valuation, a bushel of wheat, for terest the sovereign in the improvement and example, being always valued at one and the cultivation of land. The sovereigns of same money price, whatever may be the state China, those of Bengal while under the Ma- of the market. The produce of a tax levied hometan government, and those of ancient in the former way will vary only according Egypt, are said, accordingly, to have been to the variations in the real produce of the extremely attentive to the making and main- land, according to the improvement or netaining of good roads and navigable canals, glect of cultivation. The produce of a tax in order to increase, as much as possible, levied in the latter way will vary, not only both the quantity and value of every part of according to the variations in the produce of the produce of the land, by procuring to the land, but according both to those in the every part of it the most extensive market value of the precious metals, and those in the which their own dominions could afford. quantity of those metals which is at different The tythe of the church is divided into such times contained in coin of the same denomi small portions that no one of its proprietors nation. The produce of the former will alcan have any interest of this kind. The par- ways bear the same proportion to the value son of a parish could never find his account of the real produce of the land. The pro in making a road or canal to a distant part of duce of the latter may, at different times, the country, in order to extend the market bear very different proportions to that value. for the produce of his own particular parish. When, instead either of a certain portion of Such taxes, when destined for the mainten- the produce of land, or of the price of a ance of the state, have some advantages, certain portion, a certain sum of money is tc which may serve in some measure to balance be paid in full compensation for all tax of their inconveniency. When destined for the tythe; the tax becomes, in this case, exactly maintenance of the church, they are attended of the same nature with the land tax of Engwith nothing but inconveniency. land. It neither rises nor falls with the ren. Taxes upon the produce of land may be of the land. It neither encourages nor dislevied, either in kind, or, according to a cer-courages improvement. The tythe in the tain valuation in money. greater part of those parishes which pay what The parson of a parish, or a gentleman of is called a modus, in lieu of all other tythe. is a tax of this kind. During the Mahome-two different persons, is, in most cases, com tan government of Bengal, instead of the pletely paid to the former. This surplus rent payment in kind of the fifth part of the pro- is the price which the inhabitant of the house duce, a modus, and, it is said, a very mo-pays for some real or supposed advantage of derate one, was established in the greater part the situation. In country houses, at a disof the districts or zemindaries of the country. tance from any great town, where there is Some of the servants of the East India com- plenty of ground to chuse upon, the groundpany, under pretence of restoring the public rent is scarce any thing, or no more than revenue to its proper value, have, in some what the ground which the house stands upon provinces, exchanged this modus for a pay- would pay, if employed in agriculture. In ment in kind. Under their management, country villas, in the neighbourhood of some this change is likely both to discourage culti- great town, it is sometimes a good deal highvation, and to give new opportunities for er; and the peculiar conveniency or beauty abuse in the collection of the public revenue, of situation is there frequently very well paid which has fallen very much below what it for. Ground-rents are generally highest in was said to have been when it first fell under the capital, and in those particular parts of it the management of the company. The servants of the company may, perhaps, have profited by the change, but at the expense, it is probable, both of their masters and of the country. Note 47. Tares upon the Rent of Houses. THE rent of a house may be distinguished into two parts, of which the one may very properly be called the building-rent; the other is commonly called the ground-rent. where there happens to be the greatest demand for houses, whatever be the reason of that demand, whether for trade and business, for pleasure and society, or for mere vanity and fashion. A tax upon house-rent, payable by the te nant, and proportioned to the whole rent of each house, could not, for any considerable time at least, affect the building-rent. If the builder did not get his reasonable profit, he would be obliged to quit the trade; which, by raising the demand for building, would, in a short time, bring back his profit to its proper level with that of other trades. Neither would such a tax fall altogether upon the ground-rent; but it would divide itself in such a manner, as to fall partly upon the inhabitant of the house, and partly upon the owner of the ground. The building-rent is the interest or profit of the capital expended in building the house. In order to put the trade of a builder upon a level with other trades, it is necessary that this rent should be sufficient, first, to pay him the same interest which he would have got for his capital, if he had lent it upon good Let us suppose, for example, that a parti security; and, secondly, to keep the house in cular person judges that he can afford for constant repair, or, what comes to the same house-rent an expense of sixty pounds a-year; thing, to replace, within a certain term of and let us suppose, too, that a tax of four years, the capital which had been employed shillings in the pound, or of one-fifth, pay in building it. The building-rent, or the able by the inhabitant, is laid upon house-rent. ordinary profit of building, is, therefore, A house of sixty pounds rent will, in that everywhere regulated by the ordinary interest case, cost him seventy-two pounds a-year, of money. Where the market rate of interest which is twelve pounds more than he thinks is four per cent. the rent of a house, which, he can afford. He will, therefore, content over and above paying the ground-rent, af- himself with a worse house, or a house of fords six or six and a-half per cent. upon the fifty pounds rent, which, with the additional whole expense of building, may, perhaps, ten pounds that he must pay for the tax, will afford a sufficient profit to the builder. make up the sum of sixty pounds a-year, Where the market rate of interest is five per the expense which he judges he can afford, cent, it may perhaps require seven or seven and, in order to pay the tax, he will give up and a-half per cent. If, in proportion to the a part of the additional conveniency which he interest of money, the trade of the builders might have had from a house of ten pounds affords at any time much greater profit than a-year more rent. He will give up, I say, a this, it will soon draw so much capital from part of this additional conveniency; for he other trades as will reduce the profit to its will seldom be obliged to give up the whole, If it affords at any time much but will, in consequence of the tax, get a betproper level. less than this, other trades will soon draw so ter house for fifty pounds a-year, than he much capital from it as will again raise that could have got if there had been no tax. profit. For as a tax of this kind, by taking away Whatever part of the whole rent of a house this particular competitor, must diminish the is over and above what is sufficient for afford- competition for houses of sixty pounds rent, ing this reasonable profit, naturally goes to so it must likewise diminish it for those of the ground-rent; and, where the owner of fifty pounds rent, and in the same manner for the ground and the owner of the building are those of all other rents, except the lowest |