These, from their simplicity, were formerly much resorted to; but since, when they are uniform, they cannot yield much, and when they vary with the fortunes of individuals they are unequal, and leave much to the discretion of the collectors, they are now but little used in this country.

Taxes are sometimes levied by means of licenses, to consume wine, coffee, and tea, or to follow a particular occupation - as to keep a tavern, to be a merchant, a pedler, an auctioneer, to keep a billiard saloon, etc.

The objection to these taxes is that they are often very unequal. There was formerly, in Virginia, a tax on merchants' licences, which was the same on each individual, whether his capital or business was large or small. They are commonly recommended by the consideration that a tax is in this way collected from persons who would otherwise escape taxation.

Taxes on necessaries fall at first on labor, but eventually on all classes. Taxes on luxuries fall exclusively on the rich or the ostentatious.

Taxes have been divided into direct and indirect - that is, those in which the tax is directly collected from the citizen, and those in which the tax laid on an article in the hands of the producer or importer enters into its price, and is thus paid by the consumer when he purchases the article.

It has often been maintained by politicians that direct taxes were preferable to indirect, on two grounds: 1. That they are more economical; and 2. That, being more felt, they are a check on the extravagance and ambition of governments. The preference claimed for direct taxes may, however, well be impugned. The argument that they are more economical rests mainly on this - that indirect taxes, being advanced by the importer or home producer, he must be paid for such advance, and the taxed commodity is thereby the dearer to the consumer. The guards, too, to prevent evasions of the indirect tax, are a heavy expense, from which direct taxes are exempt.

There may be countries in which direct taxes can be levied at less expense than the indirect; but it is not the case in the United States. Here, whenever a direct tax is laid, it must be apportioned among the States according to their representation in Congress, and the property taxed must be valued. Now, the cost of such valuation renders this mode of taxation about eight times as costly as the impost; and from the rapid changes in the value of the lands here, their valuation would have to be repeated as often as the tax was laid.

But if indirect taxes were less economical, they would be far more eligible. They are paid at the time and in the mode that is most easy to every one, who pays the tax in purchasing those things that he finds most to his taste and gratification. It is one of the first duties of a government to draw its necessary revenue from the people in that way which is the least onerous; and that is, by indirect taxes. To regard the greater pressure and disagreeableness of a tax as a recommendation, seems to be as wise as it would be to make our food distasteful in order to save us from the danger of gluttony or excess. Every prudent and considerate government, therefore, prefers indirect taxes as long as they are adequate to the public wants.

Another objection to direct taxes is, that it is not only more inconvenient for the citizen to pay the whole amount of his taxes at once rather than by little at a time, as he purchases the taxed articles, but it also requires a much larger addition to the circulating medium of the country; and in preparing to pay it, a portion of his funds must be long unemployed.

Taxes are sometimes laid on the property of the deceased, especially when it is bequeathed to collateral relations. This, in general, is a tax that is little felt by the payer; but it would often fall on property scarce able to pay the tax in addition to the other charges with which it was previously burthened; in which case, it might be a tax on productive capital.

We will now advert to the principal modes in which the public revenue is expended - and first, for the national defence.

By the art of war, and the aid of arms, especially the invention of gunpowder, the destructive powers of man have been so increased, that one thousand well-equipped soldiers may vanquish and destroy an hundred times their number, provided with only the natural means of defence. Experience teaches us that those who possess this superiority are not slow to use and abuse it. Nations, therefore, to preserve their independence, have found it necessary to cultivate the same means of destruction; hence have arisen, sometimes for defence and sometimes for offence, armed associations of men, at first for short terms, then for longer ones, and finally permanent or standing armies. But inasmuch as these have sometimes been used by their ambitious leaders to destroy the liberties they were created to preserve, they have naturally become objects of jealousy with free nations. They are fortunately, however, not necessary to the defence of such nations. Familiarized as their people commonly are to the use of firearms, and though but slightly instructed by the militia laws to act in masses, they are a surer and stronger means of national defense than any standing army can be. In a season of danger or emergency, their volunteers will soon form an army more numerous and more brave, because more patriotic, than mere mercenaries are ever likely to be - as was experienced by the United States in the late Mexican War.

It was formerly supposed that no nation could support a permanent military force exceeding one hundredth part of its population; and though, with the aid derived from modern improvements in the means of feeding, clothing, and arming its military force, some nations have exceeded this limit, the excess has not been great, and has proved very oppressive to their people.

The naval power of maritime nations is a still more efficient means of defence than the army. This species of armament is likely to be materially affected by the application of steam-power, but the precise character of this change has not yet been determined by experience.

The other disbursements of the government are mainly in the pay of its civil officers of all descriptions.