loo ON TAXATION 



conversion of active capital into partially non- 

 productive capital, as happens in the gun trade, 

 comes to an end. But another capital is, in this 

 sudden corrective process, rendered non-pro- 

 ductive, the capital of the workman deprived 

 of work. As these workmen must still consume 

 some amount of capital in the form of food, but 

 yield nothing in exchange, there is a loss to the 

 State : for men who can afford so little do not set 

 in motion that amount of work which is neces- 

 sary to keep busy workmen supplied with com- 

 modities. 



It is unnecessary to remark on the profits of 

 the postal and telegraph services, as such profits 

 are made by performing certain duties, which 

 those whom they benefit have of course to pay 

 for. Enough has been already said about income- 

 tax, including land taxes and house taxes ; death 

 duties and legacy duties ; also about licences, 

 to which may be added receipt and other stamps. 

 So long as these are reasonable in amount they 

 do not specially contravene the correct principles 

 of taxation. Revenue, though not to be raised 

 wherever it can be had, must still be raised where 

 it can be had without oppression ; therefore, all 

 those who can best afford to pay, must do so 

 to a fair and reasonable amount, and without 

 being put to unnecessary inconvenience. 



Capital of the third class is in three grades. 

 In the first grade of the third class are all those 

 articles which come nearest to capital of the first 

 class ; that is to say, articles which Great Britain 

 can herself produce in any quantity necessary, 



