48 POPULAR SCIENCE MONTHLY. 



vestigation then proved that the raising of gophers by citizens of 

 the State for the procurement of bounties had become a regular 

 industry. A like experience in British India is also worthy of 

 note. Some years since the Government, with a view of arrest- 

 ing the mortality among its native population from the bites of 

 poisonous serpents, offered' a bounty on their proved destruction; 

 when it was found that for the sake of obtaining the bounties the 

 cultivation of the " cobra " and other like snakes had been actu- 

 ally entered upon. 



Third. The sphere of taxation should be limited to persons, 

 property, and business exclusively within the territorial jurisdic- 

 tion of the taxing power. It would seem to be in the nature of a 

 self-evident proposition, although in fact it is by no means so re- 

 garded, that the power of every state or government to tax must 

 be exclusively limited to subjects within its territory and legal 

 jurisdiction. "All subjects" says Chief- Justice Marshall, in giv- 

 ing the opinion of the Supreme Court in the case of McCullough 

 vs. Maryland (4 Wheaton, 431), " over which the sovereign power 

 of the state extends are objects of taxation ; but those over which 

 it does not extend are, on the soundest principles, exempt from 

 taxation" And again, " the sovereign power of the state extends 

 to everything which exists by its own authority or is introduced 

 by its permission." " Every nation/' says Wheaton, " possesses 

 and exercises exclusive sovereignty and jurisdiction throughout 

 the full extent of its territory. It follows, from this principle, 

 that the laws of every state control, of right, all the real and per- 

 sonal property within its territory. The second general principle 

 is, that no state can, by its laws, directly affect, bind, or regulate 

 property beyond its own territory. This is a consequence of the 

 first general principle ; a different system, which would recognize 

 in each state the power of regulating persons or things beyond its 

 territory, would exclude the equality of rights among different 

 states, and the exclusive sovereignty which belongs to each of 

 them." (Wheaton's International Law, chap, ii, 2 ; Fcelix Inter- 

 national Prise', 9 and 10.) And in a decision of more recent 

 date (State Tax on Foreign-held Bonds, 15 Wallace, 306, 328), the 

 United States Supreme Court said : " The power of taxation, how- 

 ever vast in its character and searching in its extent, is necessarily 

 limited to subjects within the jurisdiction of the state. Property 

 lying beyond the jurisdiction of the state is not a subject upon 

 which her taxing power can be legitimately exercised. Indeed, it 

 would seem that no adjudication should be necessary to establish 

 so obvious a proposition." 



The principle under consideration has also been made the sub- 

 ject of adjudication by the United States Supreme Court in a case 

 of historic as well as of legal and economic interest. In Septem- 



