PRINCIPLES OF TAXATION. 501 



Rouher, a French economist, and for a period a minister of commerce, 

 thoroughly investigated this matter, and proved by incontestable data 

 that almost invariably when the yield of breadstuffs in Europe was 

 large in the country drained by the Black and Baltic Seas, it was small 

 in the countries drained by the Atlantic. This variation in the yield 

 of agricultural crops forces the countries where crops are deficient 

 to purchase from those where they are abundant, or who have a sur- 

 plus on hand from previous abundant harvests. In the United 

 States, when the harvests are abundant, the American farmers, rather 

 than sell below a certain price, keep a portion of their crops on hand 

 until bad crops in Europe produce a foreign demand, which has to be 

 supplied at once. Under such circumstances those who hold the 

 surplus stock of breadstuffs, or any other product, would control the 

 price, and not the foreigners who stand in need of it. The only check, 

 then, to the cupidity of the holders of breadstuifs is the competition 

 between themselves, which invariably suffices to prevent any undue 

 advantage being taken of the necessities of the countries whose har- 

 vests are deficient. These bad crops occur frequently enough to con- 

 sume all the surplus of the countries that produce in excess of their 

 own wants. In fact, this transient, irregular demand is counted upon 

 and provided for by producers just as much so as the regular home 

 demand — hence is one of the elements that regulate production and 

 control prices. 



At this point of the discussion it is desirable to obtain a clear and 

 true idea of the meaning or definition of the phrase " diffusion of 

 taxes." As sometimes used in popular and superficial discussions, it 

 is held to imply that every tax imposed by law distributes itself 

 equitably over the whole surface of society. Such implication would, 

 however, be even more fallacious than an assumption that every ex- 

 penditure made by an individual distributes itself in such a way that 

 it becomes equally an expenditure by every other individual. On 

 the other hand, a fair consideration of the foregoing summary of facts 

 and deductions would seem to compel every mind not previously 

 warped by prejudice to accept and indorse the following as great 

 fundamental principles in taxation: First, that in order to burden 

 equitably and uniformly all persons and property, for the purpose 

 of obtaining revenue for public purposes, it is not necessary to tax 

 primarily and uniformly all persons and property within the taxing 

 district. Second, equality of taxation consists in a uniform assess- 

 ment of the same articles or class of property that is subject to taxa- 

 tion. Third, taxes under such a system equate and diffuse them- 

 selves; and if levied with certainty and uniformity upon tangible 

 property and fixed signs of property, they will, by a diffusion and 

 repercussion, reach and burden all visible property, and also all of 



