FINANCE  . The See also:

• TERM

term " finance," which comes into See also:

• ENGLISH

English through See also:

• FRENCH
• FRENCH, DANIEL CHESTER (1850– )
• FRENCH, NICHOLAS (1604-1678)

French, in its See also:

• ORIGINAL

original meaning denoted a See also:

• PAYMENT (Fr. paiement, from payer, to pay; Lat. pacare, to appease, pax, peace)

payment (finatio) . In the later See also:

• MIDDLE

middle ages, especially in See also:

• GERMANY
• GERMANY (Ger. Deutschland)

Germany, it acquired the sense of usurious or oppressive dealing with See also:

• MONEY

money and See also:

• CAPITAL (i.e. capital stock or fund)
• CAPITAL (Lat. caput, head)

capital . The specialized use of the word as See also:

• EQUIVALENT

equivalent to the management of the public See also:

• EXPENDITURE

expenditure and receipts first became prominent in See also:

• FRANCE
• FRANCE, ANATOLE (1844– )

France during the 16th See also:

• CENTURY (from Lat. centuria, a division of a hundred men)

century and quickly spread to other countries . The plural See also:

• FORM (Lat. forma)

form (See also:

• LES

Les Finances) was particularly reserved for this application, while the singular came to denote business activity in respect to monetary dealings (as in the expression la haute finance) . For the Germans the phrase " See also:

• SCIENCE (Lat. scientia, from scire; to learn, know)

science of finance " (Finanzwissenschaft) refers exclusively to the See also:

• ECONOMY

economy of the See also:

• STATE
• STATE, GREAT OFFICERS OF

state . English and See also:

• AMERICAN

American writers are less definite in their employment of the term, which varies with the convenience of the author . A See also:

• WORK

work on " finance " may See also:

• DEAL

deal with the Money See also:

• MARKET (Lat. mercatus, trade or place of trade)

Market or the Stock See also:

• EXCHANGE

Exchange; it may treat of banking and See also:

• CREDIT (Lat. credere, to believe)

credit organization, or it may be devoted to state See also:

• REVENUE
• REVENUE (0. Fr. revenu, from revenir, to return)

revenue and expenditure, which is on the whole the prevailing sense . The expressions " science of finance " and " public finance " have been suggested as suitable to delimit the last mentioned application . At all events, the broad sense is quite intelligible . " See also:

• FINANCIAL

Financial " means what is concerned with business, and the See also:

• IDEA (Gr. Ibia, connected with i&eiv, to see; cf. Lat. species from specere, to look at)

idea of a See also:

• BALANCE (derived through the Fr. from the Late Lat. bilantia, an apparatus for weighing, from bi, two, and lanx, a dish or scale)

balance between effort and return is also prominent . In the See also:

• PRESENT

present See also:

• ARTICLE (from Lat. articulus, a joint)

article See also:

• ATTENTION (from Lat. ad-tendo, await, expect; the condition of being " stretched " or " tense ")

attention will be directed to " public finance "; for the other aspects of the subject reference may be made (inter alia) to the following:—See also:

• BANKS, GEORGE LINNAEUS (1821-1881)
• BANKS, NATHANIEL PRENTISS (1816–1894)
• BANKS, SIR JOSEPH
• BANKS, THOMAS (1735-1805)

BANKS AND BANKING; See also:

• COMPANY

COMPANY; EXCHANGE; MARKET; STOCK EXCHANGE .

See also ENGLISH FINANCE, and the sections on finance under headings of countries . Finance, regarded as state See also:

• HOUSE
• HOUSE (O. Eng. hiss, a word common to Teutonic languages, cf. Dut. huis, Ger. Haus; in Gothic it is only found in gudhiss, a temple; it may be ultimately connected with the root of " hide," conceal)

house-keeping, or " See also:

• POLITICAL

political economy " (see EcoxoMlcs) in the older sense of the term, deals with (I) the expenditure of the state; (2) state revenues; (3) the balance between expenditure and receipts; (4) the organization which collects and applies the public funds . Each of these large divisions presents a See also:

• SERIES (a Latin word from serere, to join)

series of problems of which the See also:

• PRACTICAL

practical treatment is illustrated in the financial See also:

• HISTORY

history of the See also:

• GREAT

great nations of the See also:

• WORLD

world . Thus. the amount and See also:

• CHARACTER (Gr. xapareri7p, from xap&crew, to scratch)

character of public ex- 347 penditure necessarily depends on the functions that the state undertakes to perform—See also:

• NATIONAL

national See also:

• DEFENCE
• DEFENCE (Lat. defendere, to defend)

defence, the See also:

• MAINTENANCE (Fr. maintenance, from maintenir, to maintain, support, Lat. manu tenere, to hold in the hand)

maintenance of See also:

• INTERNAL

internal See also:

• ORDER
• ORDER (through Fr. ordre, for earlier ordene, from Lat. ordo, ordinis, rank, service, arrangement; the ultimate source is generally taken to be the root seen in Lat. oriri, rise, arise, begin; cf. " origin ")
• ORDER, HOLY

order, and the efficient equipment of the state organization; such are the tasks that all governments have to See also:

• DISCHARGE (adapted from the O. Fr. discharge, modern decharge, from a med. Lat. discargare, to unload, dis- and earn care, to load, cf. " charge ")

discharge, and for their cost due See also:

• PROVISION (Lat. provisio)

provision has to be made . The widening See also:

• SPHERE (Gr. vclsa?pa, a ball or globe)

sphere of state activity, so marked a characteristic of See also:

• MODERN

modern See also:

• CIVILIZATION

civilization, involves outlay for what may be best described as " developmental " services . See also:

• EDUCATION

Education, See also:

• RELIEF

relief of See also:

• DISTRESS

distress, regulation of labour and See also:

• TRADE (O. Eng. trod, footstep, from tredan, to tread; in M. Eng. the forms teed, trod and trade appear, the last in the sense of a beaten track)
• TRADE, BOARD OF

trade, are duties now in great See also:

• PART

part performed by public agencies, and their increasing prominence involves augmented expense . The first problem on this See also:

• SIDE
• SIDE (mod. Eski Adalia)

side of expenditure is the due balancing of outlay by income . The financier has to " See also:

• COVER (from the Fr. convert, from couvrir, to cover, Lat. cooperire)

cover " his outlay . There is, further, the See also:

• DUTY (from " due," that which is owing, O. Fr. deu, dil, past participle of devoir; Lat. debere, debitum; cf. " debt ")

duty of establishing a proper proportion between the several forms of expenditure . Not only has there to be a strict See also:

• CONTROL (Fr. contrdle, older form contre rolle, from Med. Lat. contra-rotulus, a counter roll or copy of a document used to check the original; there is no instance in English of the use of " control " in this, its literal, meaning)

control over the See also:

• TOTAL

total national expense; supervision has to be carried into each See also:

• DEPARTMENT (Fr. departement, from departir, to separate into parts)

department of the state . No one See also:

• BRANCH (from the Fr. branche, late Lat. branca, an animal's paw)

branch of public activity is entitled to make unlimited calls on the state's revenue . The claims of the " See also:

• EXPERT (Lat. expertus, from experiri, to try)

expert "require to be carefully scrutinized .

The great financiers have made their reputation quite as much by rigorous control over extravagance in expenditure as by dexterity in devising new forms of revenue . Unfortunately they have not been able to reduce their methods to See also:

• RULE

rule . As yet no more definite principle has been discovered than the somewhat obvious one of measuring the proposed items of outlay (I) against each other, (2) against the See also:

• SACRIFICE (from Lat. sacrificium; sacer, holy, and facere, to make)

sacrifice that additional See also:

• TAXATION
• TAXATION (from " tax," derived, through the French, from Lat. taxare, to appraise, which again is connected with the same root as tangere, to touch)

taxation involves . Of almost equal importance is the rule that the utmost return is to be obtained for the given outlay . The See also:

• CANON

canon of economy is as fundamental in regard to public expenditure as it will appear, later, to be in respect to revenue . Just application of the outlay of the state, so that no class receives undue See also:

• ADVANTAGE

advantage, and the use of public funds for " reproductive," in preference to " unproductive " See also:

• OBJECTS

objects, are evident See also:

• GENERAL
• GENERAL (Lat. generalis, of or relating to a genus, kind or class)

general principles whose difficulty lies in their application to the circumstances of each particular See also:

• CASE
• CASE, JOHN (d. 1600)

case . Far greater progress has been made in the formulation of general canons as to the nature, growth and treatment of the public revenues . Historically, there is, first, the tendency towards increase in state income to balance the advance in outlay . A second general feature is the relative decline of the receipts from state See also:

• PROPERTY

property and See also:

• INDUSTRIES

industries in contrast to the expansion of taxation . Regarded as an organized See also:

• SYSTEM

system, the See also:

• BODY

body of receipts has to be made conformable to certain general conditions . Thus there should be revenue sufficient to meet the public requirements . Otherwise the financial organization has failed in one of its essential purposes .

In order continuously to attain this end, the revenue must be flexible, or, as is often said, elastic enough to vary in response to pressure . Frequently recurring deficits are, in themselves, a condemnation of the methods under which they are found . Again, the rule of " economy " in raising revenue, or, in other words, taking as little as possible from the contributors over and above what the state receives, holds See also:

• GOOD, JOHN MASON (1764-1827)

good for the whole and for each part of public revenue . In like manner the principle of formal See also:

• JUSTICE (Lat. justitia)

justice has the same claim in respect to revenue as to expenditure . No class of See also:

• PERSON, OFFENCES AGAINST THE

person should See also:

• BEAR
• BEAR, BLACK
• BEAR, BROWN
• BEAR, GRIZZLY
• BEAR, ISABELLINE
• BEAR, WHITE

bear more than his or its proper See also:

• SHARE (O. Eng. scearu, chiefly in compounds, e.g. land-scearu, a share of land, from sceran to cut; cf. " shear" )

share . In fact the See also:

• SPECIAL

special See also:

• MAXIMS, LEGAL

maxims usually placed under the See also:

• HEAD (in 0. Eng. heafad; the word is common to Teutonic languages; cf. Dutch hoofd, Ger. Haupt, generally taken to be in origin connected with Lat. caput, Gr. KerbOvi7)
• HEAD, SIR EDMUND WALKER, BART
• HEAD, SIR FRANCIS BOND, BART

head 9f taxation have really a wider See also:

• SCOPE (through Ital. scopo, aim, purpose, intent, from Gr. o'KOaos, mark to shoot at, aim, o ic07reiv, to see, whence the termination in telescope, microscope, &c.)

scope as governing the whole financial system . The recognition of even the most elementary rules has been a very slow See also:

• PROCESS

process, as the course of financial history abundantly proves . Until the 18th century no scientific treatment of financial problems was attained, though there had been great advances on the administrative side . A brief description of the See also:

• HISTORICAL

historical See also:

• EVOLUTION

evolution of the earlier financial forms will be the most effective See also:

• ILLUSTRATION

illustration of this statement . The theory of well-organized public finance is also discussed under TAXATION and NATIONAL See also:

• DEBT (Lat. debitum, a thing owed)

DEBT . The earliest forms of public revenue are those obtained from the property of the See also:

• CHIEF (from Fr. chef, head, Lat. caput)

chief or ruler . See also:

• LAND

Land, See also:

• CATTLE (Norman Fr. catel, from Late Lat. capitale, wealth or property, a word applied in the feudal system to movable property and particularly to live stock, and surviving in its wider meaning as " chattel " or " chattle ")

cattle and slaves are the See also:

• PRINCIPAL

principal kinds of See also:

• WEALTH

wealth, and they are all constituents of the See also:

• KING
• KING (O. Eng. cyning, abbreviated into cyng, cing; cf. O. H. G. chun- kuning, chun- kunig, M.H.G. kiinic, kiinec, kiinc, Mod. Ger. Konig, O. Norse konungr, kongr, Swed. konung, kung)
• KING [OF OCKHAM], PETER KING, 1ST BARON (1669-1734)
• KING, CHARLES WILLIAM (1818-1888)
• KING, CLARENCE (1842–1901)
• KING, EDWARD (1612–1637)
• KING, EDWARD (1829–1910)
• KING, HENRY (1591-1669)
• KING, RUFUS (1755–1827)
• KING, THOMAS (1730–1805)
• KING, WILLIAM (1650-1729)
• KING, WILLIAM (1663–1712)

king's revenue; enforced work contributed by members of the community, and the furnishing commodities on requisition, 348 further aid in the maintenance of the See also:

• PRIMITIVE

primitive state .

Financial organization makes its earliest See also:

• APPEARANCE (from Lat. apparere, to appear)

appearance in the great Eastern monarchies, in which See also:

• TRIBUTE (Lat. tributurn, a stated payment, contribution)

tribute was regularly collected and the See also:

• OLDEST

oldest and most general form of taxation—that levied on the produce of land—was established . In its normal shape this See also:

• IMPOST (through the O. Fr. from Lat. impositum, a thing laid upon another; the modern French is impot)

impost consisted in a given proportion of the yield, or of certain portions of the yield, of the See also:

• SOIL

soil; one-See also:

• FOURTH

fourth as in See also:

• INDIA
• INDIA, FRENCH

India, one-fifth as in See also:

• EGYPT

Egypt, or two See also:

• SEPARATE

separate levies of a tenth as in See also:

• PALESTINE

Palestine, are examples of what may from the last instance be called the " tithe " system . Dues of various kinds were gradually added to the land revenue, until, as in the later See also:

• EGYPTIAN

Egyptian See also:

• MONARCHY (Fr. monarchic, from Lat. monarchia, Gr. uovapXia, rule of one, µbvos, alone, apXi7, rule)

monarchy, the forms of revenue reached a bewildering complexity . But no Eastern state advanced beyond the See also:

• CONDITION (Lat. condicio, from condicere, to agree upon, arrange; not connected with conditio, from condere, conditum, to put together)

condition generally characterized as the " patrimonial," i.e. an organization on the See also:

• MODEL (0. Fr. modelle, mod. modele; It. modello, pattern, mould; from Lat. modus, measure, standard)

model of the See also:

• HOUSEHOLD, ROYAL

household . The part played by money economy was small, and it is noticeable that the revenues were collected by the monarch's servants, the farming out of taxes being completely unknown . Tribute, however, was paid by subject communities as a whole, and was collected by them for trans-See also:

• MISSION

mission to the conquerors . A much higher See also:

• STAGE (Fr. 6/age; from Lat. stare, to stand)

stage was reached in the financial methods of the See also:

• GREEK
• GREEK, ETRUSCAN AND

Greek states, or more correctly speaking of See also:

• ATHENS
• ATHENS ['AN vat, Athenae, modem colloquial Greek `Ath va]

Athens, the best-known specimen of the class . Instead of the comparatively See also:

• SIMPLE

simple expedients of the See also:

• BARBARIAN (Gr. fap/3apos)

barbarian monarchies, as indicated above, the Athenian See also:

• CITY (through Fr. cite, from Lat. civitas)

city state by degrees See also:

• DEVELOPED

developed a rather complex revenue system . Some of the older forms are retained . The city owned public land which was let on See also:

• LEASE (derived through the Fr. from the Lat. laxare, to loosen)

lease and the rents were farmed out by See also:

• AUCTION

auction . A specially valuable property of Athens was the See also:

• POSSESSION
• POSSESSION (Lat. possessio, possidere, to possess)

possession of the See also:

• SILVER

silver mines at See also:

• LAURIUM
• LAURIUM (Aabptov, mod. ERGASTIRI)

Laurium, which were worked on lease by slave labour . The produce, at first distributed amongst the citizens, was later a part of the state income, and forms the subject of some of the suggestions respecting the revenue in the See also:

• TREATISE

treatise formerly ascribed to See also:

• XENOPHON

Xenophon .

The reverence that attached to the See also:

• PRECIOUS (O. Fr. precios, mod. precieux, Lat. pretiosus, of high value or price, pretium)

precious metals caused undue exaltation of the services rendered by this property . One of the characteristics of the See also:

• ANCIENT
• ANCIENT (also spelt ANTIENT; derived, through the Fr. ancien, old, from the late Lat. antianum, from ante, before)

ancient state was its extensive control over the persons and property of its citizens . In respect to finance this authority was strikingly manifested in the burdens imposed on wealthy citizens by the requirements of the " liturgies " (Aetrovpyiat), which consisted in the provision of a See also:

• CHORUS (Gr. xopbs)Z

chorus for theatrical performances, or defraying the expenses of the public See also:

• GAMES, CLASSICAL

games, or, finally, the equipment of a See also:

• SHIP

ship, " the trierarchy," which was economically and politically the most important . Athenian statesmanship in the See also:

• TIME (0. Eng. Lima, cf. Icel. timi, Swed. timme, hour, Dan. time; from the root also seen in " tide," properly the time of between the flow and ebb of the sea, cf. O. Eng. getidan, to happen, " even-tide," &c.; it is not directly related to Lat. tempus)
• TIME, MEASUREMENT OF
• TIME, STANDARD

time of See also:

• DEMOSTHENES

Demosthenes was gravely exercised to make this form of contribution more effective . The grouping into classes and the See also:

• PRIVILEGE

privilege of exchanging property, granted to the contributor against any one whom he believed entitled to take his See also:

• PLACE (through Fr. from Lat. platea, street; Gr. IrAar6s, wide)

place, are marks of the defective economic and financial organization of the See also:

• AGE (Fr. age, through late Lat. aetaticum, from aetas)

age . Amongst taxes strictly so called were the market dues or tolls, which in some cases approximated to See also:

• EXCISE (derived through the Dutch, excijs or accijs, possibly from Late Lat. accensare,—ad, to, and census, tax; the word owes something to a confusion with excisum, cut out)

excise duties, though in their actual mode of See also:

• LEVY (Fr. levee, from lever, Lat. levare, to lift, raise)
• LEVY, AMY (1861–1889)
• LEVY, AUGUSTE MICHEL (1844– )

levy they were closely similar to the octrois of modern times . Of greater importance were the customs duties on imports and exports . These at the great See also:

• PERIOD
• PERIOD (Gr. irepioSos, a going or way round, circuit, aepi, round, and &Sis, way, road)

period of Athenian history were only 2% . The See also:

• PROHIBITION (Lat. prohibere, to prevent)

prohibition of export of See also:

• CORN (a common Teutonic word; cf. Lat. granum, seed, grain)
• CORN (fromm Lat. corms, horn)

corn was an economic rather than a financial provision . In the treatment of her subject See also:

• ALLIES, THOMAS WILLIAM (1813-1903)

allies Athens was more rigorous, general import and export duties of 5% being imposed on their trade . The high cost of See also:

• CARRIAGE

carriage, and the need of encouraging See also:

• COMMERCE
• COMMERCE (Lat. commercium, from, cum, together, and rnerx, merchandise)

commerce in a community relying on See also:

• EXTERNAL

external See also:

• SOURCES

sources for its See also:

• FOOD
• FOOD (like the verb " to feed," from a Teutonic root, whence O. Eng. foda; cf. " fodder "; connected with Gr. lrareicOae, to feed)

food See also:

• SUPPLY (through Fr. from Lat. supplere, to fill up)

supply, help to explain the comparatively See also:

• LOW, SETH (1850- )
• LOW, WILL HICOK (1853- )

low rates adopted . Neither as financial nor as protective expedients were the See also:

• CUSTOM (from O. Fr. costume, costume or coustume; Low Lat. costuma, a shortened form of consuetudo)

custom duties of classical See also:

• SOCIETIES, LEARNED

societies of much importance .

See also:

• DIRECT

Direct taxation received much greater expansion . A special levy on the class of See also:

• RESIDENT

resident aliens (µerotstov), probably paralleled by a duty on slaves, was in force . A far more important source of revenue was the general tax on property (eivr/sopt,), which according to one view existed as See also:

• EARLY
• EARLY, JUBAL ANDERSON (1816-1894)

early as the time of See also:

• SOLON (7th and 6th century n.c.)

Solon, who made it a part of his constitutional system . Modern inquiry, however, tends towards the conclusion that it was under the stress of the Peloponnesian See also:

• WAR
• WAR (O. Eng. werre, Fr. guerre, of Teutonic origin; cf. O.H.G. werran, to confound)

War that this impost was intro-duced (428 B.C.) . At first it was only levied at irregular intervals; afterwards, in 378 B.C., it became a permanent tax based on elaborate valuation under which the richer members paid on a larger See also:

• QUOTA

quota of their capital; in the case of the wealthiest class the taxable quota was taken as one-fifth, smaller fractions being adopted for those belonging to the other divisions . The See also:

• ASSESSMENT, (from Lat. assessare, to sit beside, to judge)

assessment (riµrbµa) included all the property of the contributor, whose accuracy in making full returns was safeguarded by the right given to other citizens to proceed against him for fraudulent under-valuation . A further support was provided in the reform of 378 B.C. by the See also:

• ESTABLISHMENT (0. Fr. establissement, Fr. etablissement, late Norm. Fr. establishement, from O. Fr. establir, Fr. etablir, Lat. stabilire, to make stable)

establishment of the symmories, or See also:

• GROUPS
• GROUPS, THEORY

groups of tax-paying citizens; the wealthier members of each See also:

• GROUP

group being responsible for the tax payments of all the members . The scanty and obscure references to finance, and to economic matters generally, in classical literature do not elucidate all the details of the system; but the analogies of other countries, e.g. the mode of levying the See also:

• TAILLE (from Fr. tailler, to cut or divide; late Lat. taliare, said to come from talia, talea)

taille in 18th century France and the " tenth and fifteenth " in See also:

• MEDIEVAL

medieval See also:

• ENGLAND
• ENGLAND, THE CHURCH OF

England, make it tolerably See also:

• PLAIN (O. Fr. plain, from Lat. plenum)

plain that in the 4th century B.C. the Athenian state had developed a mode of taxation on property which raised those questions of just See also:

• DISTRIBUTION (Lat. distribuere, to deal out)

distribution and effective valuation that present themselves in the latest tax systems of the modern world . Taken together with the liturgies, the " eisphora " placed a very heavy See also:

• BURDEN, or BURTHEN

burden on the wealthier citizens, and this financial pressure accounts in great part for the hostility of the See also:

• RICH, BARNABE (c. 1540-1617)
• RICH, CLAUDIUS JAMES (1787-1821)
• RICH, JOHN (1692-1761)
• RICH, PENELOPE, LADY (c. 1562–1607)
• RICH, RICHARD, 1ST BARON RICH (1490?-1567)

rich towards the democratic constitution that facilitated the See also:

• IMPOSITION (from Lat. imponere, to place or lay upon)

imposition of graduated taxation and super-taxes—to use modern terms—on the larger incomes . The normal yield of the property tax is reported as 6o talents (£14,400); but on special occasions it reached 200 talents (£48,000), or about one-See also:

• SIXTH

sixth of the total receipts . On the administrative side also remarkable advances were made by the entrusting of military expenditure to the " generals," and in the 4th century B.C. by the See also:

• APPOINTMENT, POWER OF

appointment of an See also:

• ADMINISTRATOR

administrator whose duty it was to distribute the revenue of the state under the directions of the See also:

• ASSEMBLY, UNLAWFUL

assembly . The See also:

• ABSENCE (Lat. absentia)

absence of settled public See also:

• LAW
• LAW (0. Eng. lagu, M. Eng. lawe; from an old Teutonic root lag, " lie," what lies fixed or evenly; cf. Lat. lex, Fr. loi)
• LAW, JOHN (1671—1729)
• LAW, WILLIAM (1686-1761)

law and the See also:

• INFLUENCE (Late Lat. influentia, from influere, to flow in)

influence of direct See also:

• DEMOCRACY (Gr. 3np.oKparia, from S)µos, the people, i.e. the commons, and Kparos, rule)

democracy made a See also:

• COMPLETE

complete See also:

• MINISTRY

ministry of finance impossible .

The Athenian " See also:

• HEGEMONY (Gr. i7ye,uovia, leadership, from it-yo-Oat, to lead, the leadership especially of one particular state in a group of federated or loosely united states. The term was first applied in Greek history to the position claimed by different individual

hegemony " in its earlier and later phases had an important financial side . The confederacy of See also:

• DELOS

Delos made provision for the collection of a revenue (06por) from the members of the See also:

• LEAGUE

league, which was employed at first for defence against See also:

• PERSIAN
• PERSIAN, SYRIAN, EGYPTIAN AND TURKISH

Persian aggression, but afterwards was at the disposal of Athens as the ruling state . The See also:

• ANNUAL

annual collection of 460 talents ( 110,400) shows sufficiently the magnitude of the league . Too little is known of the financial methods of the other Greek states and of the Macedonian kingdoms to allow of any definite See also:

• ACCOUNT
• ACCOUNT (through O. Fr. acont, Late Lat. comptum, cornputare, to calculate)

account of their position . In the latter, particularly in Egypt, the methods of the earlier rulers probably survived . Their finance, like their social See also:

• LIFE

life generally, exhibited a blending of Hellenic and barbarian' elements . The older land-taxes were probably accompanied by import dues and taxes on property . In the See also:

• INFANCY

infancy of the See also:

• ROMAN

Roman See also:

• REPUBLIC (Lat. respublica, a commonweal or common-wealth)

republic its revenues were of the See also:

• KIND (O. E. ge-cynde, from the same root as is seen in " kin," supra)

kind usual in such communities . The public land yielded receipts which may indifferently be regarded as rents Roman. or taxes; the citizens contributed their services or commodities, and dues were raised on certain articles coming to market . With the progress of the Roman dominion the financial organization See also:

• GREW, NEHEMIAH (1641-1712)

grew in extent . In order to meet the cost of the early See also:

• WARS

wars a special contribution from property (tributum ex censu) was levied at times of emergency, though it was in some cases regarded as an advance to be repaid when the occasion of expense was over . Owing to the great military successes, and the consequent increase of the other sources of revenue, it became feasible to suspend the tributum in 167 B.C., and it was not again levied till after the See also:

• DEATH

death of See also:

• JULIUS

Julius See also:

• CAESAR, GAIUS JULIUS (102—44 B.c.)
• CAESAR, SIR JULIUS (1557-1558-1636)

Caesar .

From this date the expenses of the Roman state " were undisguisedly supported by the taxation of the provinces." Neither the state monopolies nor the public land in See also:

• ITALY
• ITALY (Italia)

Italy afforded any appreciable revenue . The other charges that affected Italy were the 5% duty on manumissions, and customs dues on See also:

• SEA (in O. Eng. sae, a common Teutonic word; cf. Ger. See, Dutch Zee, &c.; the ultimate source is uncertain)
• SEA, COMMAND OF THE

sea-See also:

• BORNE, KARL LUDWIG (1786–1837)

borne imports . But with the acquisition of the important provinces of See also:

• SICILY (Ital. Sicilia)

Sicily, See also:

• SPAIN
• SPAIN (Espana)

Spain and See also:

• AFRICA
• AFRICA, ROMAN

Africa, the formation of a tax Ancient Greek . system based on the tributes of the dependencies became possible . To a great extent the pre-existing forms of revenue were retained, but were gradually systematized . In legal theory the land of conquered communities passed into the ownership of the Roman state; in practice a revenue was obtained through land taxes in the form of either See also:

• TITHES

tithes (decumae) or money payments (stipendia) . To the latter were adjoined capitation and trade taxes (the tributum capitis) . For pasture land a special See also:

• RENT

rent was paid . In some provinces (e.g . Sicily) payment in produce was preferred, as affording the supply needed for the See also:

• FREE

free distribution of corn at See also:

• ROME
• ROME (Roma)

Rome . The great form of indirect taxation consisted in the customs dues (portoria), which were collected at the provincial boundaries and varied in amount, though the maximum did not exceed 5% . Under the same head were included the See also:

• TOWN

town dues (or octrois) .

Further, the See also:

• LOCAL

local See also:

• ADMINISTRATION (Lat. administrare, to serve)

administration was charged on the See also:

• DISTRICT

district concerned, and requisitions for the public service were frequently made on the provincial communities . Supplies of See also:

• GRAIN (derived through the French from Lat. granum, seed, from an Aryan root meaning " to wear down," which also appears in the common Teutonic word " corn ")

grain, See also:

• SHIPS

ships and See also:

• TIMBER

timber for military use were often demanded . The methods of levy may be regarded as an additional tax . Vexation," as See also:

• ADAM
• ADAM (or ADAN) DE LE HALE (died c. 1288)
• ADAM, ALEXANDER (1741–1809)
• ADAM, JULIETTE (1836– )
• ADAM, LAMBERT SIGISBERT (1700-1759)
• ADAM, MELCHIOR (d. 1622)
• ADAM, PAUL (1862– )
• ADAM, ROBERT (1728—1792)
• ADAM, SIR FREDERICK (1781-1853)
• ADAM, WILLIAM (1751-1839)

Adam See also:

• SMITH
• SMITH, ADAM (1723–1790)
• SMITH, ALEXANDER (183o-1867)
• SMITH, ANDREW JACKSON (1815-1897)
• SMITH, CHARLES EMORY (1842–1908)
• SMITH, CHARLES FERGUSON (1807–1862)
• SMITH, CHARLOTTE (1749-1806)
• SMITH, COLVIN (1795—1875)
• SMITH, EDMUND KIRBY (1824-1893)
• SMITH, G
• SMITH, GEORGE (1789-1846)
• SMITH, GEORGE (184o-1876)
• SMITH, GEORGE ADAM (1856- )
• SMITH, GERRIT (1797–1874)
• SMITH, GOLDWIN (1823-191o)
• SMITH, HENRY BOYNTON (1815-1877)
• SMITH, HENRY JOHN STEPHEN (1826-1883)
• SMITH, HENRY PRESERVED (1847– )
• SMITH, JAMES (1775–1839)
• SMITH, JOHN (1579-1631)
• SMITH, JOHN RAPHAEL (1752–1812)
• SMITH, JOSEPH, JR
• SMITH, MORGAN LEWIS (1822–1874)
• SMITH, RICHARD BAIRD (1818-1861)
• SMITH, ROBERT (1689-1768)
• SMITH, SIR HENRY GEORGE WAKELYN
• SMITH, SIR THOMAS (1513-1577)
• SMITH, SIR WILLIAM (1813-1893)
• SMITH, SIR WILLIAM SIDNEY (1764-1840)
• SMITH, SYDNEY (1771-1845)
• SMITH, THOMAS SOUTHWOOD (1788-1861)
• SMITH, WILLIAM (1769-1839)
• SMITH, WILLIAM (c. 1730-1819)
• SMITH, WILLIAM (fl. 1596)
• SMITH, WILLIAM FARRAR (1824—1903)
• SMITH, WILLIAM HENRY (1808—1872)
• SMITH, WILLIAM HENRY (1825—1891)
• SMITH, WILLIAM ROBERTSON (1846-'894)

Smith remarks, " though not strictly speaking expense, is certainly equivalent to the expense at which every See also:

• MAN
• MAN, ISLE OF (anc. Mona)

man would be willing to redeem himself from it "; and the Roman system was extraordinarily vexatious . From an early date the collection of the taxes had been farmed out to companies of contractors (societates vectigales), who became a by-word for rapacity . Being See also:

• BOUND, or BOUNDARY (from O. Fr. bonde, Med. Lat. bodena or butina, a frontier line)

bound to pay a stated sum to the public authorities these See also:

• PUBLICANI

publicani naturally aimed at extracting the largest possible amount from the unfortunate provincials, and, as they belonged to the Roman capitalist class, they were able to influence the provincial See also:

• GOVERNORS

governors . Undue claims on the part of the tax collectors were aggravated by the See also:

• EXTORTION (Lat. extorsio, from extorquere, to twist out, to take away by force)

extortion of the public officials . The defects of the financial organization were a serious influence in the complex of causes that brought about the fall of the Republic . One of the reasons that induced the subject populations to accept with See also:

• PLEASURE (through Fr. plaisir from Lat. placere, to please; Gr. rlbovii)

pleasure the establishment of the See also:

• EMPIRE

Empire was the improvement in financial treatment that it secured . The corrupt and uneconomical method of farming out the collection of the revenue was, to a great extent, replaced by collection through the officials of the imperial household . The earlier Roman See also:

• TREASURY

treasury (See also:

• AERARIUM (from Lat. aes, in its derived sense of " money ")

aerarium) was formally retained for the See also:

• RECEIPT (M.E. receite, derived through Fr. from Lat. recepta, participle of recipere, to receive)

receipt of revenue from the senatorial provinces, but the officials were appointed by the Princeps and became gradually See also:

• MERE
• MERE, ADALBERT (1838-1909)

mere municipal See also:

• OFFICERS

officers . The real centre of finance was the fiscus or imperial treasury, which was under the exclusive control of the ruler (" res fiscales," says See also:

• ULPIAN (DoMrrIus ULPIANUS)

Ulpian, " quasi propriae et privatae principis stint "), and was administered by officials of his household .

Under the Republic the See also:

• SENATE (Lat. senatus, from root sen-, as in senex, old; the root is the Sanskrit sana, cf. Gr. 'vos; the same element appears in senor, seigneur, seneschal)

Senate had been the financial authority, with the Censors as finance ministers and the Quaestors as secretaries of the treasury . Never very precise, this system in the 1st century B.C. See also:

• FELL
• FELL, JOHN (1625-1686)

fell into extreme decay . By means of his freedmen the See also:

• EMPEROR (Fr. empereur, from the Lat. imperator)

emperor introduced the more rigorous economy of the Roman household into public finance . The See also:

• CENSUS (from Lat. censere, to estimate or assess; connected by some with centum, i.e. a count by hundreds)

census as a method of valuation was revived; the important and productive land taxes were placed on a more definite footing; while, above all, the substitution of direct collection by state officials for the letting out by auction of the tax-collection to the companies of publicani was made general . Thus some of the most valuable lessons as to the normal evolution of a system of finance are to be learned in this connexion . Of equal, or even greater moment is the failure of the administrative reforms of the Empire to secure lasting improvement, a result due to the absence of constitutional guarantees . The See also:

• CLOSE
• CLOSE (from Lat. clausum, shut)
• CLOSE, MAXWELL HENRY (1822-1903)

close relation between finance and general policy is most impressively illustrated in this failure of benevolent See also:

• AUTOCRACY (Gr. abroepareca, absolute power)

autocracy . Viewed broadly, the financial resources of the earlier Empire were obtained from (r) the public land alike of the state and the Princeps; (2) the monopolies, principally of minerals; (3) the land tax; (4) the customs; (5) the taxes on inheritances, on sales and on the See also:

• PURCHASE

purchase of slaves (vectigalia) . One result of the establishment of the Priucipate was the consolidation ofthe public domain . The old " public land " in Italy had nearly disappeared; but the royal possessions in the conquered provinces and the private properties of the emperor became ultimately a part of the property of the Fiscus . Such land was let either on five-See also:

• YEAR

year leases or in See also:

• PERPETUITY (Lat. perpetuus, continuous)

perpetuity to coloni . Mines were also taken over for public use and worked by slaves or, in later times, by convict labour .

The tendency towards state See also:

• MONOPOLY (Gr. govomeXla or govoircaXwv, exclusive sale, from govds, alone, and irwXeiv, to sell)

monopoly became more marked in the closing days of the Empire, the 4th and 5th centuries A.D . Perhaps the most comprehensive of the fiscal reforms of the Empire was the reconstruction of the land tax, based on a census or (to use the French term) See also:

• CADASTRE (a French word from the Late Lat. capitastrum, a register of the poll-tax)

cadastre, in which the See also:

• AREA

area, the modes of cultivation and the estimated productiveness of each holding were stated, the See also:

• AVERAGE

average of ten preceding years being taken as the See also:

• STANDARD
• STANDARD, BATTLE OF THE

standard . After the reconstruction under See also:

• DIOCLETIAN (GAIUs AURELIUS VALERIUS DIOCLETIANUS) (A.D. 245–313)
• DIOCLETIAN, EDICT OF (De Pretiis rerum venalium)

Diocletian at the end of the 3rd century A.D., fifteen years (the indictio)—though probably used as early as the time of See also:

• HADRIAN (PUBLICS AELIUS HADRIANUS)

Hadrian—was recognized as the period for revaluation . With the growing needs of the state this taxation became more rigorous and was one of the great grievances of the See also:

• POPULATION (Lat. populus, people; populare, to populate)

population, especially of the sections that were declining in status and passing into the condition of See also:

• VILLENAGE (VILLAINAGE, VILLANAGE, VILLEINAGE)

villenage . The portoria, or customs, received a better organization, though the varying rates for different provinces continued . By degrees the older maximum of 5% was exceeded, until in the 4th century 12i % was in some cases levied . Even at this higher See also:

• RATE

rate the facilities for trade were greater than in medieval or (until the revolution in transport) modern times . In spite of certain prejudices against the import of luxuries and the export of See also:

• GOLD
• GOLD [symbol Au, atomic weight 195.7(H = 1),197.2(0 =16)]

gold, there is little indication of the influence of mercantilist or protectionist ideas . The nearest approach to excise was the duty of i % on all sales, a tax that in See also:

• GIBBON
• GIBBON, EDWARD (1737–1794)

Gibbon's words " has ever been the occasion of clamour and discontent." The higher See also:

• CHARGE
• CHARGE (through the Fr. from the Late Lat. carricare, to load in a carrus or wagon; cf. " cargo ")

charge of 4% on the purchase of slaves, and the still heavier 5% on successions after death, were likewise established at the beginning of the Empire and specially applied to the full citizens . Escheats and lapsed legacies (caduca) were further See also:

• MISCELLANEOUS

miscellaneous sources of gain to the state . Taken as a whole, the financial system of Imperial Rome shows a very high elaboration in form . The patrimonium, the tributa and the vectigalia are divisions parallel to the domaine, the contributions directes and the contributions indirectes of modern French administration; or the English " non-tax " revenue, inland revenue and " customs and excise." The careful regulations given in the Codes and the See also:

• DIGEST

Digest show the observance of technical conditions as to assessment and accounting .

In substance and spirit, however, Romar finance was essentially backward . Without altogether accepting See also:

• MERIVALE, CHARLES (1808-1893)
• MERIVALE, HERMAN (1806-1874)

Merivale's See also:

• JUDGMENT

judgment that " their principles of finance were to the last See also:

• RUDE, FRANCOIS (1784–1855)

rude and unphilosophical," it may be granted that Roman states-men never seriously faced the questions of just distribution and maximum productiveness in the tax system . Still less did they perceive the connexion between these two aspects of finance' See also:

• MECHANICAL

Mechanical uniformity and See also:

• MINUTE
• MINUTE (Lat. minutes, small; minuere, to make less)

minute regulation are inadequate substitutes for observance of the canons of equality, certainty and economy in the operation of the tax system . Whether (as has been suggested) an Adam Smith in See also:

• POWER [WILLIAM GRATTAN] TYRONE (1797-1841)

power could have saved the Empire is doubtful; but he would certainly have remodelled its finance . The most glaring See also:

• FAULT (Mid. Eng. faute, through the French, from the popular Latin use of fallere, to fail; the originallof the Latin being replaced in English in the 15th century)

fault was plainly the undue and increasing pressure on the productive classes . Each century saw heavier burdens imposed on the actual workers and on their employers, while expenditure was chiefly devoted to unproductive purposes . The distribution was also unfair as between the different territorial divisions . The capital and certain provincial towns were favoured at the expense of the provinces and the See also:

• COUNTRY (from the Mid. Eng. contre or contrie, and O. Fr. cuntree; Late Lat. contrata, showing the derivation from contra, opposite, over against, thus the tract of land which fronts the sight, cf. Ger. Gegend, neighbourhood)

country districts . Again, the cost of collection, though less than under the farming-out system, was far too great . Some alleviation was indeed obtained by the See also:

• APPORTIONMENT
• APPORTIONMENT (Fr. apportionement; Med. Lat. apportionamentum; derived from Lat. portio, share)

apportionment of contributions amongst the districts liable, leaving to the community to decide as it thought best between its members . The See also:

• ALLOTMENT (from O. Fr. a and toter, to divide by lot)

allotment of the land-tax to See also:

• UNITS, DIMENSIONS OF
• UNITS, PHYSICAL

units (juga) of equal value whatever might be the area, was a contrivance similar in character . 350 The See also:

• GRADUAL (Med. Lat. gradualis, of or belonging to steps or degrees; gradus, step)

gradual way in which the several provinces were brought under the general tax system, and the equally gradual See also:

• EXTENSION (Lat. ex, out ; tendere, to stretch)

extension of Roman citizenship, account further for the irregularity and increased See also:

• WEIGHT

weight of the taxes; as the absence of publicity and the growth of autocracy explain the sense of oppression and the hopelessness of resistance so vividly indicated in the literature of the later Empire .

Exemptions at first granted to the citizens were removed, while the cost of local See also:

• GOVERNMENT
• GOVERNMENT (0. Fr. governement, mod. gouvernement, O. Fr. governer, mod. gouverner, from Lat. gubernare, to steer a ship, guide, rule; cf. Gr. xv(3epvav)

government which continually increased was placed on the middle-class of the towns as represented by the decuriones, or members of the municipalities . The fact that no ingenuity of modern See also:

• RESEARCH (O. Fr. recerche, from recercher, re- and cercer, mod. chercher, to search; Late Lat. circare, to go round in a circle, to explore)

research has been able to construct a real See also:

• BUDGET (originally from a Gallic word meaning sack, latinized as bulga, leather wallet or bag, thence in O. Fr. bougette, from which the Eng. form is derived)

budget of expenditure and receipt for any part of the See also:

• LONG, GEORGE (1800-1879)
• LONG, JOHN DAVIS (1838– )

long centuries of the Empire is significant as to the secrecy that surrounded the finances, especially in the later period . For at the beginning of the principate See also:

• AUGUSTUS (a name 1 derived from Lat. augeo, increase, i.e. venerable, majestic, Gr. Ee0avr6s)

Augustus seems to have aimed at a complete estimate of the financial situation, though this may be regarded as due to the influence of the freer republican traditions which the reverence that soon attached to the emperor's dignity completely extinguished . In addition to its value as illustrating the difficulties and defects that beset the development of a complex financial organization from the simpler forms of the city and the See also:

• PROVINCE
• PROVINCE (Lat. provincia; perhaps a contraction of providentia)

province, Roman finance is of special importance in consequence of its place as supplying a model or rather a See also:

• GUIDE (in Mid. Eng. gyde, from the Fr. guide; the earlier French form was guie, English " guy," the d was due to the Italian form guida; the ultimate origin is probably Teutonic, the word being connected with the base seen in O. Eng. witan, to know)

guide for the administration of the states that arose on its ruins . The barbarian invaders, though they were accustomed to contributions to their chiefs and to the payment of commodities as tributes or as penalties, had no acquaintance with the working of a See also:

• REGULAR

regular system of taxation . The more astute rulers utilized the machinery that they inherited from the Roman government . Under the See also:

• FRANKS
• FRANKS, SIR AUGUSTUS WOLLASTON (1826-1897)

Franks the land tax and the provincial customs continued as forms of revenue, while beside them the gifts and See also:

• COURT
• COURT (from the O. Fr. court, Late Lat. cortis, curtis, a popular form of class. Lat. cohors, gen. cohortis; the mod. Fr. form tour is due to the influence of the Lat. curia, the word used in medieval documents to translate " court " in the feudal sense)
• COURT, ANTOINE (1696-176o)

court fees of See also:

• TEUTONIC
• TEUTONIC (GERMANIC) LANGUAGES

Teutonic origin took their place . Similar conditions appear in See also:

• THEODORIC

Theodoric's administration of Italy . The maintenance of Roman forms and terms is prominent in fiscal administration . But institutions that have lost their life and animating spirit can hardly be preserved for any length of time . All over western See also:

• EUROPE

Europe the elaborate devices of the census and the stations for the collection of customs crumbled away; taxation as such disappeared, through the hostility of the See also:

• CLERGY (M.E. clergie, O. Fr. clergie, from Low Lat. form clericia [Skean, by assimilation with O. Fr. clergie, Fr. clerge,from Low Lat. clericatus)
• CLERGY, BENEFIT OF

clergy and the exemptions accorded to powerful subjects . This process of disintegration spread out over centuries .

The efforts made from time to time by vigorous rulers to enforce the charges that remained legally due, proved quite ineffectual to restore the older fiscal system . The final result was a complete transformation of the ingredients of revenue . The character of the See also:

• CHANGE (derived through the Fr. from the Late Lat. cambium, cambiare, to barter; the ultimate derivation is probably from the root which appears in the Gr. «a urmu', to bend)

change may be best indicated as a substitution of private claims for public rights . Thus, the land-tax disappears in the 7th century and only comes into See also:

• NOTICE

notice in the 9th century in the shape of private customary dues . The customs duties become the tolls and transit charges levied by local potentates on the diminishing trade of the earlier middle ages . This revolution is in accordance with—indeed it is one side of—the See also:

• MOVEMENT

movement towards See also:

• FEUDALISM
• FEUDALISM (from Late Lat. feodum or feudum, a fee or fiel; see FEE)

feudalism which was the great feature of this period . Finance is essentially a part of public law and administration . It could, therefore, hold no prominent place in a condition of society which hardly recognized the state, as distinct from the members of the community, See also:

• UNITED

united by feudal ties . The same conception may be expressed in another way, viz. by the statement that the kingdoms which succeeded the Roman Empire were organized on the patrimonial basis (i.e. the revenues passed into the hands of the king or, rather, his domestic officials), and thus in fact returned to the condition of pre-classical times . Notwithstanding the differing features in the several countries, retrogression is the See also:

• COMMON

common characteristic of See also:

• EUROPEAN

European history from the 5th to the loth century, and it was from the ruder state that this decline created that the re-See also:

• BUILDING

building of social and political organization had to be accomplished . On the financial side the work, as already suggested, was aided by the ideas and institutions inherited from the Roman Empire . This influence was common to all the See also:

• CONTINENTAL

continental states and indirectly was See also:

• FELT (cognate with Ger. Filz, Du. vilt, Swed. and Dan. fill; the root is unknown; the word has given Med. Lat. filtrum, " filter ")

felt even in England .

Each of the great realmshas, however, worked out its financial system on lines suitable to its own particular conditions, which are best considered in connexion with the separate national histories . See also:

• RUNNING

Running through the different national systems there are some common elements the result not of See also:

• INHERITANCE

inheritance merely but still more of See also:

• NECESSITY (Lat. necessitas)

necessity, or at the lowest of similarity in environment . Over and above the details of financial development there is a See also:

• THREAD (0. Eng. praed, literally, that which is twisted, prawan, to twist, to throw, cf. " throwster," a silk-winder, Ger. drehen, to twist, turn, Du. draad, Ger. Draht, thread, wire)

thread of connexion which requires treatment under Finance taken as a whole . As the great aim of this side of public activity is to secure funds for the maintenance of the state's life and working, the administration which operates for this end is the true See also:

• NUCLEUS (Lat. for the kernal of a nut, nux, the stone of fruit)

nucleus of all national finance . The first sign of revival from the See also:

• CATASTROPHE (Gr. Karaurpoch, from KaraQrp4ecv, to over-turn)

catastrophe of the invasions is the reorganization of the Imperial household under See also:

• CHARLEMAGNE [CHARLES THE GREAT] (c. 742-814)
• CHARLEMAGNE, JEAN ARMAND (1753–1838)

Charlemagne with the intention of establishing a more exact collection of revenue . The later See also:

• GERMAN
• GERMAN, DUTCH AND SCANDINAVIAN

German empire of See also:

• OTTO

Otto and the Frederics; the French Capetian monarchy and, in a somewhat different sphere, the medieval See also:

• ITALIAN

Italian and German cities show the same movement . The treasury is the centre towards which the special receipts of the ruler or rulers should be brought, and from it the public wants should be supplied . Feudalism, as the See also:

• ANTITHESIS (the Greek for " setting opposite ")

antithesis of this orderly treatment, had to be overthrown before national finance could become established . The development can be traced in the financial history of England, France and the German states; but the advance in the French financial organization of the 15th and 16th centuries affords the best illustration . The gradual unification operates on all the branches of finance,—expenditure, revenue, debt and methods of control . In respect to the first head there is a well-marked " integration " of the modes for See also:

• MEETING (from " to meet," to come together, assemble, 0. Eng. metals ; cf. Du. moeten, Swed. mota, Goth. gamotjan, &c., derivatives of the Teut. word for a meeting, seen in O. Eng. Wit, moot, an assembly of the people; cf. witanagemot)

meeting the cost of the public services . What were semi-private duties become public tasks, which, with the growing importance of " money-economy," have to be defrayed by state payments .

Thus, the creation of the See also:

• STANDING

standing See also:

• ARMY
• ARMY (from Fr. armee, Lat. armata)

army in France by See also:

• CHARLES
• CHARLES (1270-1325)
• CHARLES (1421-1461)
• CHARLES (1525-1574)
• CHARLES (c. 1319-1364)
• CHARLES (Fr. Charles; Span. Carlos; Ital. Carlo; Ger. Karl; derived from O.H.G. Charal,latinized as Carolus, meaning originally " man ": cf. Mod.Ger., Kerl," fellow," A.S. ceorl, Mod. Eng. " churl ")
• CHARLES (KARL EITEL ZEPHYRIN LUDWIG; in Rum. CAROL)
• CHARLES [KARL ALEXANDER] (1712-1780)
• CHARLES, ELIZABETH (1828-1896)
• CHARLES, JACQUES ALEXANDRE CESAR (1746-1823)
• CHARLES, THOMAS (1755-1814)

Charles VII. marks a financial change of