PRINCIPLES OF TAXATION. 297 



laws* and imposing taxes, not in accordance witli any rule of 

 equity, but by reason of some arbitrary and sentimental notions 

 of how a citizen ought to live, dress, eat, and drink. In the case 

 of the several States of the Union, whose power of taxation is 

 practically unlimited, such action is in the nature of oppression ; 

 but in the case of the Federal Government, whose powers of tax- 

 ation are carefully limited by its Constitution, it is clearly an act 

 of usurpation. In further elucidation of this matter, it is inter- 

 esting to note, that probably no example can be found in history 

 in which an attempt has been made to continue the raising of 

 revenue with the regulation of popular consumption, that has not 

 resulted in failure as respects the attainment of both objects. 



One of the most notable perversions of the correct principles 

 of taxation for the purpose of affecting the popular consumption 

 of a commodity, has been the comparatively recent attempt of the 

 Federal Congress (act of August, L886) to prevent the use of one of 

 the great discoveries of the age namely, the manufacture of artifi- 

 cial butter, which, when properly prepared, is a most valuable and 

 perfectly healthful addition to the food resources of the people. 

 The practical results of this attempt are exceedingly curious and 

 ought to be in the highest degree instructive. The burden of the 

 tax two cents per pound and special taxes on manufacturers, 

 wholesale and retail dealers which was intended to be prohibi- 

 tory, has not been sufficient to accomplish the object of its levy ; 

 for the annual production, sale, and consumption of oleomar- 

 garine in the United States have continually increased (from 34,- 

 325,000 pounds in 1888, to 48,304,000 in 1892, and 69,622,000 in 

 1894). The Federal courts having decided that it is merchantable, 

 the States may to a certain extent also regulate its sale, but can 

 not prevent its importation. The Federal Government further- 

 more derives a considerable revenue from its domestic manu- 

 facture and sale ($1,409,211 in 1895); and also exports an annual 

 large and increasing quantity for the consumption and use of for- 

 eign countries (127,193,000 pounds in 1894) ; and clearly, if such 

 production and sale are fraudulent and wrong, the Government 

 has become a partner in such fraud and wrong and in effect 

 licenses them. 



It is also an interesting fact that this idea of resorting to tax- 

 ation for the primary purpose of enforcing morality and prevent- 

 ing social wrong is a comparatively modern idea, and finds its 

 chief exemplification in the United States. 



* " Sumptuary : Relating to expense. Laws or regulations which restrain or limit the 

 expenses of citizens in apparel, food, furniture, etc. Sumptuary laws are abridgments of 

 liberty and of very difficult execution. They can be justified only on the ground of extreme 

 necessity." Wcbster^s Dictionary. 



