PRINCIPLES OF TAXATION. 153 



Probably the most weiglity and concrete judicial opinion on 

 this subject was that given by the Supreme Court of the United 

 States in 1874 in the now celebrated case of the Loan Association 

 vs. Topeka, 20 Wallace, in which the late Justice Miller, with the 

 substantial concurrence of his associates, indorsed and amplified 

 the opinion of Chief- Justice Marshall touching the reservation of 

 individual rights under a free government as follows : 



" It must be conceded," he said, " that there are rights in every 

 free government beyond the control of the state. A government 

 which recognized no such rights, which held the lives, the liberty, 

 and the property of its citizens subject at all times to the absolute 

 disposition and unbounded control of even the most democratic 

 depositary of power, is after all but a despotism. The theory of 

 our governments, State and national, is opposed to the deposit of 

 unlimited power anywhere. The executive, the legislative, and 

 the judicial branches of these governments are all of limited and 

 defined powers. There are limitations of such powers which grow 

 out of the essential nature of all free governments implied reser- 

 vations of individual rights, without which the social compact 

 could not exist, which are respected by all governments entitled 

 to the name. ... Of all the powers conferred upon the Govern- 

 ment that of taxation is most liable to abuse. Given a purpose or 

 object for which taxation may be lawfully used, and the extent 

 of its exercise is in its very nature unlimited. This power can as 

 readily be employed against one class of individuals and in favor 

 of another, so as to ruin the one class and give unlimited wealth 

 and prosperity to the other, if there are no implied limitations of 

 the uses for which the power may be exercised. To lay luith one 

 hand the power of the Government on the property of the citizen, 

 and with the other hestow it upon favored individuals to aid pri- 

 vate enterprises and build up private fortunes, is none the less rob- 

 bery because it is done under the forms of the law and is called 

 taxation. This is not legislation. It is a decree under legislative 

 forms." And in the same case the same court declared that " the 

 whole theory of our governments State and national is opposed 

 to the deposit of unlimited power anywhere." 



No one would probably question that if an assemblage of men 

 reasonably intelligent though not versed in law, political econ- 

 omy, or the teachings of social science were to come together for 

 the purpose of founding a state de novo, they would, while recog- 

 nizing at once, and as it were instinctively, the necessity of insur- 

 ing to the government of such state a revenue adequate to its 

 support, never even so much as dream for one moment of intrust- 

 ing to it a power to take the property of any individual member 

 of such assemblage, except so far as might be absolutely necessary 

 to carry out and fulfill the purposes for which it was proposed to 



