Government of the Territories.
There are at present four areas, situated outside of the States, and organized under territorial governments. These are Utah, Arizona, New Mexico and Oklahoma. Besides these there are the two unorganized territories, Indian Territory, and Alaska, and the District of Columbia, which last tract contains sixty-four square miles.
#Government of Territories.#—The fundamental law of a Territory is the Federal Constitution, just as in a State. Unlike the State, however, it has no constitution of its own, but is regulated entirely by Congress. In Section 3, Article IV, of the Constitution, it is declared that "Congress shall have power to dispose of and make all needful regulations respecting the territory or other property belonging to the United States." In pursuance of this clause Congress has in the four organized Territories instituted governments as follows: The executive of the Territory is a Governor appointed by the President for a four years' term. There is also a secretary and treasurer. The legislature consists of two houses, a council of 12, and a House of Representatives of 24. These are elected by the people of the Territories, and have a term of two years. The Legislature meets every other year. All its acts require approval by Congress before becoming law.
The judiciary consists of three or more judges appointed by thePresident, together with a district attorney and United States marshal.
Territories send neither Senators nor Representatives to Congress, but have one delegate apiece in the United States House of Representatives, who may speak, but not vote.
#Admission of a Territory as a State.#—A Territory is an embryo State. As soon as a Territory becomes sufficiently populated it applies for admission into the Union as a State, and such admission is accomplished in the following manner. When an application by a Territory for Statehood is made, it is considered by Congress, and, if approved, the inhabitants of the Territory are authorized to form for themselves out of such Territory a State government, and thus prepare themselves for admission into the Union.
A State government is formed as follows: The Governor of the Territory issues a proclamation declaring that on a certain date there shall be an election of delegates to a convention; such convention is to be held on a certain date. These delegates are elected by a popular vote. The members of the convention thus formed declare that they, on behalf of the people of the Territory, adopt the Constitution of the United States, and then proceed to draft a State constitution and government. It is provided that this constitution shall be Republican in form, and make no distinction in civil and political rights on account of race or color, except for Indians not taxed: that it shall not be repugnant to the Constitution of the United States and the principles of the Declaration of Independence. Perfect religious toleration must be guaranteed, all right or title to the unappropriated public lands lying within the Territory must be disclaimed and given over to the United States. Provision must be made by the constitution for the establishment and maintenance of the system of public schools.
After adoption by the convention the constitution is offered to the people for ratification. If it is ratified, the Governor certifies the fact to the President of the United States. Provided the constitution is found to comply with all the conditions just mentioned, the President issues his proclamation declaring the ratification of the constitution, and upon the same day that the proclamation is issued the territory is deemed admitted by Congress into the Union as a State, on an equal footing with the original States, and entitled to representation in both houses of the Federal Congress. The representatives and the Governor and other State officers are elected on the same day as that upon which the constitution is ratified by the people.
State Governments.
The United States is a nation of forty-four federated States. Each State has its own separate government, which is sovereign, except as to a few powers which have been granted to the United States government for general purposes. Citizens of States are also citizens of the United States, and thus owe a double allegiance, namely, to the State in which they reside and to the United States.
These States vary in size from that of Texas, the largest, with an area of 265,780 square miles, to that of Rhode Island, the smallest, with 1,250; and in population from that of New York, with nearly six millions, to that of Nevada, with about forty-five thousand. The largest State is greater than either France or the German Empire.
State governments are older than the Federal government, for it was by a grant by the States of certain of their powers that the United States government was created. Each State is represented in Congress by two members in the Senate. Members of the lower branch of the Federal legislature are apportioned among the States according to population. As in the case of the United States, the powers of government are divided among three departments—the executive, legislative, and judicial.
In the United States Constitution it is expressly declared that "the powers not granted to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people." It would require considerable space to enumerate the duties of State governments. With the exception of the few acts which the constitution forbids them to perform, most of which they would not care to perform if allowed, and the few general powers coming within the province of the Federal Government, the States can do whatever their legislatures sanction. They can go to the extremes of State socialism. All States have a complete judicial system. They regulate all legal relations of their citizens, the laws of husband and wife, principal and agent, and of contract. They provide for the detection and punishment of crime. They control and mainly support the militia of the county. Railroad, banking, insurance, and other corporations, are chartered and controlled by them. The construction and maintenance of roads, the care of the public health, the inspection of factories, the determination of the right of suffrage, and the control of its own elections are among the exclusive powers of State governments. Our extensive system of public schools are under the dual management of the State and local governments, and under the superintendence of State officers. The State takes care of the defective classes, of the insane, paupers, etc.; and, in general, performs all those ordinary duties concerning internal affairs which are exercised by central governments.
Each State government has—
1. A Constitution.
2. A Legislature of two Houses.
3. An executive, composed of a Governor, Lieutenant-Governor (in almost all cases), Secretary of State, Auditor, and a few other officers.
4. A system of local government in counties, towns, cities, etc.
5. A body of State laws.
6. A judicial system of courts, from which no appeal can be had to United States courts, except upon Federal questions.
7. A system of local taxation.
Each State government has all the rights usually pertaining to a sovereign State, except—Those powers which the Federal Constitution expressly forbids to the States.
3. Those powers which have in the Constitution been exclusively given to the United States.
All States have public debts, which they may, and sometimes do, repudiate. They can be sued only by other States. The Eleventh Amendment declared that a citizen could not maintain a suit against a State. State laws are binding only within the boundaries of the State enacting them.
#State Constitutions.#—As the Federal Constitution is the supreme law of the United States, so the State constitution is the highest law of the States. The Constitutions of the original thirteen States were naturally formed after the model of the charters enjoyed by the New England colonies. In the colonies of Rhode Island, Connecticut, and Massachusetts their charters were adopted as constitutions without any change, except, of course, the annulment of obedience to the English king. All subsequent constitutions have been closely modeled after these first thirteen. The Federal Constitution provides that all State constitutions must be Republican in form. (For other conditions of admission of territories as States, see subject "Territories.") The modes of amendment of constitutions differ in different States, but in all, amendment is much easier of accomplishment than in the case of the Federal Constitution. This is shown by the fact that since 1776 there have been adopted by the States one hundred and five complete constitutions, and two hundred and fourteen partial amendments; while, since the passage of the first ten Federal amendments in 1789, there have been but five additional amendments. Some States provide that the constitution shall be submitted to the people for amendment at the end of certain intervals of time. In the larger number of cases a majority of the popular vote is required for ratification of a constitutional amendment. State constitutions show a tendency to become longer, and to regulate a constantly increasing number of subjects.
A normal State constitution has the following provisions:
1. A definition of the State boundaries.
2. A bill of rights (guaranteeing private rights, such as freedom of the press and speech, trial by jury in criminal cases, right to assemble and petition, etc.).
3. A frame of government, an enumeration of officers and powers of legislature, executive, courts of justice, etc.
4. Miscellaneous provisions, relating to administration of schools, militia, taxation, debts, local government, corporations, amendments, etc.
#State Legislatures.#—The legislature in all States consists of two Houses, of which the upper and smaller branch is called the Senate, and the lower and more numerous branch usually the House of Representatives, though in six States it is termed the Assembly, and in three the House of Delegates. The members of both houses are elected by popular vote, but Senators usually for a longer time, and frequently higher qualifications for them are required. States are divided into districts for election purposes, and, though members of the legislature may offer themselves for election from any district, it has become the invariable custom for them to be elected only from the districts in which they reside. Universal manhood suffrage, that is, the right of all male citizens over 21 years of age to vote, is the rule, though in eight States paupers have no vote, and in a few, a certain amount of education is required (generally enough to read the State constitution). The number of members in the State legislatures varies greatly. In the Senate, Delaware has the smallest number (9), and Illinois the largest (51). In the lower House, Delaware has likewise the smallest number (21), while New Hampshire has the greatest (321).
The Lieutenant-Governor of the State isex officioPresident of the Senate. In all States, except six, sessions of the legislature are held only once every other year, and even then the length of the session is limited to a fixed number of days. As in Congress, business is conducted by means of committees, but are in both Houses elected by ballot. The State legislatures have full charge and control of all local governments within their individual States. The Senate has the power of trying impeachments of State officials. It also ratifies appointments of the Governor. In all States, except four, acts of the legislature require the signature of the Governor before they become laws. To pass a bill over a veto requires in twenty-three States a two-thirds vote in both Houses; in two, a three-fifths vote, and in nine, a majority vote of the total number of members. A State legislature can enact no law which will be effective beyond its own boundaries.
#State Executive.#—The chief executive of the State is the Governor.Other chief officials are the Lieutenant-Governor, Treasurer, AttorneyGeneral, Secretary of State, Auditor, and Superintendent of PublicInstruction. The term of office of the Governor varies in differentStates from one to four years. He has but small powers of appointment,most of the State officials being elected by the people. In all but fourStates he has a veto on legislation. He has the power of pardoning. TheLieutenant-Governor is President of the Senate.
#State Judiciary.#—The State judiciary includes three sets of courts:
1. A Supreme Court of Appeals, the highest court, from which cases involving Federal questions may be appealed to the Supreme Court of the United States.
2. Superior courts of record.
3. Various local courts, such as county courts, corporation courts, etc.
Each State recognizes the judgments of other States, and gives credit to their public acts and records, and delivers up to justice, on demand of the executive, any criminal fleeing from other States into her borders. In most of the States the judges are elected by the people, though in eight they are appointed by the Governor, and in five by the legislature. The Attorney-General conducts cases in which the State is a party, and manages other legal business in which the State is interested.
Local Government.
In the chapter on Government we learned that the people of the United States owe allegiance to two systems of government; the one a central national government, the other the state governments. We have now to mention a third system of governments, namely, local governments; for citizens of the United States live, in reality, under three distinct governments: first and highest, the National United States Government; second, State governments, and third, local governments. It is concerning local governments in the United States that we shall learn in this chapter.
Just as the whole United States is divided into forty-eight sections, each section being a State or Territory, so each State is in turn, for convenience in the administration of its government, divided into small local areas, each division managing those affairs which appertain to its own area. Many of these divisions were not formed by dividing up the States. The divisions came first, or sprang up naturally within the States as soon as the colonies were settled. Social governments were the first governments formed in the settlement of our Western territory. Dr. Edward Bemis has described the beginnings of government in a new State in the following interesting manner:
"The genesis of local government in Western hamlets is very simple. First comes the settler who, ax in hand, clears the ground for his humble dwelling, and plants whatever seed he has brought with him. Then comes another settler and another until perhaps a dozen families are established near. Two wants are now felt: roads, or at least paths from house to house, from hamlet to market town, and a school-house for the multiplying children. There is no strong central authority to provide these things, but the settlers meet and vote to tax themselves. The services of a supervisor, collector, clerk, constable and justice of the peace are required."[1] This is the beginning of the township and county. As population increases, other wants arise which only a stronger government can supply. A territorial, and then a State government are consequently formed.
[Footnote 1: Local Government in Michigan and the Northwest.J.H.U.Studies in History and Political Science.Vol. I, No. 5, p. 11.]
The principal duties of local governments are those of education, police, sanitation, charity, the construction and maintenance of public roads, the administration of justice, the assessment and collection of taxes, etc.
There are three types of local government in the United States: First, the New England type, in which the unit of government is the town or township; second, the Southern type, in which the unit is the county; and third, the Western system, in which the New England and Southern systems are combined.
#1st. Local Government New England.#—Here the unit of government is the township, or town, as it is usually called. There are few towns exceeding five square miles in area, and the population is generally less than 3,000. The New England township is therefore not a thickly settled area. When a town becomes closely settled it is incorporated as a city.
In the New England towns the people govern themselves directly. In the State and Federal governments the people are governed not by themselves, but through representatives chosen by themselves. The town or township form of government is that of a pure democracy; the States and Federal governments are representative governments or republics.
The supreme governing power of a town is in the town meeting, composed of all qualified voters of the town. The town meeting is held in the Spring of each year. After the choice of a Moderator, officers are elected for the ensuing year, reports of officers for the past year read, and the amount of taxes to be raised and expenditures to be made during the year, determined upon. The officers are the Selectmen, three, five, seven or nine in number, who constitute the executive officers of the town, and administer the ordinances passed by the town meeting; a town clerk, who keeps a record of the proceedings of the town meeting, and a record of births, deaths, marriages, etc.; a treasurer, assessors and collectors of taxes, constables, and various other petty officers. Several offices are frequently given to the same individual.
The county also exists in New England, and is formed by the union of several towns, but it is of very little importance, and has but few duties. The township system is found in the Middle States, but in a modified form. It is less democratic as a rule—officers being elected by ballot, the town meeting generally absent, and county government more important.
#2d. Local Government in the South.#—Here the town (township) does not exist, except in a few instances. The unit of government for performing local duties is the county, which is much larger than the New England townships. The county government is managed by a Board of County Commissioners. These are elected not in open meeting as are the town officers, but by ballot. County government is therefore a representative or republican government. The county, wherever found, is primarily a judicial district. The chief officer for executing the decrees of the county judiciary is the sheriff. Other county officers are the treasurer, assessor, etc.
#Local Government in the West.#—Here, as before stated, we find the New England and the Southern systems combined, but combined in different States in such various degrees as to make impracticable any attempt to describe them more particularly.[1] In consequence of the grants of land by the Federal Government to Western States for education, local areas for the administration of these funds have been formed. These are called school districts. Local government has tended to center around these districts, and they have in many cases become important administrative districts. Their boundaries coincide with the boundaries of the townships and counties, though a number of school districts may be in one county or township.
[Footnote 1: More detailed accounts of the various systems of Local Government in the United States may be found in the early numbers of theJohns Hopkins University Studies, and also in Professor George E. Howard'sLocal Constitutional History, an extra volume in the same series.]
City Government.
The proportion of people in the United States who reside in cities is increasing. In 1790 there were only thirteen cities of 5,000 inhabitants and none with 40,000. Now there are over 500 that have a population exceeding 5,000 and 28 with a population of 100,000. In 1790 33 per cent. of the total population lived in cities of over 8,000 inhabitants, while to-day over 25 per cent live in cities of this size or over.
When any small area becomes thickly and permanently settled, and a certain population is reached (which varies in different States), the state legislature is appealed to, and a charter of incorporation as a city is granted. This enables the incorporated district to act independently of the county or township, to levy municipal taxes and carry out public improvements. Rapid as has been the growth of cities, the duties required of city governments have increased still faster.
The government of our large cities has become a question of vital importance. It would be difficult to give a complete list of the duties devolving upon them. The principal duties are (1) the collection of municipal and state taxes, (2) the establishment and care of public schools, (3) the administration of justice, (4) police supervision, (5) the support of a fire department, (6) the care of the streets, (7) of street gas and electric lighting, (8) of sewerage, (9) of the water supply, (10) of public parks, (11) of sanitation and public health, (12) of prisons, (13) the supervision of the liquor traffic, (14) the regulation of street railways, (15) the enforcement of building regulations, (16) the supervision of charities, hospitals, asylums, etc.
The form of government of all our large cities is much the same. It is substantially a reproduction, in form, of the state governments. First, there is a mayor, who is the chief executive, and is elected directly by the people of the city. His term of office is sometimes only one year, though more often two, three, or four years. In almost all cases he has a veto on acts of the city legislature, which veto may, however, be overridden by a two-thirds vote.
Other subordinate officials are, the treasurer, collector of taxes, chief of police, health officer, etc. They are in part elected by the people, in part appointed by the mayor, or appointed by the city legislature. Practice varies in different cities.
City legislatures are of one or two houses. The larger cities usually have two houses, and the smaller cities one house.
The legislature is usually called the City Council, the upper branch the Board of Aldermen, and the lower and more numerous branch, the Common Council. The members of the city council are elected by the people. The acts of the council are called ordinances. They are not sufficiently general to merit the designation of laws.
City judges are usually elected by the people. The administration of the various duties of municipal government are generally given to special boards of officers, as the police department, fire department, etc. For election purposes, cities are divided into wards, and the wards into voting precincts.
Our methods of municipal government have proved the least successful of any of our institutions. Corruption and grave abuses exist in almost every one of the larger cities. Problems connected with city government are among the most important questions of our time.
Government Revenue and Expenditure.
Government is an enormous business enterprise, maintained and operated by its citizens, that certain duties of a general interest and benefit may be performed. The magnitude of the work performed necessarily requires the expenditure of vast sums of money. The chief source from which these sums are derived is taxation. Taxes have been defined to be "the legally determined and legally collected contributions of individuals for meeting the necessary and general expenses of the State."[1] In the large majority of cases this is a good definition, but in a few instances it is too narrow. There are some taxes that are levied not primarily for the purpose of raising an income to meet the expenses of the government, but to subserve some other purpose. For instance, the maintenance of our high duties on articles imported into the United States from foreign countries has for its main purpose the protection of our industries from European competition. The large revenues that are derived therefrom are incidental. High liquor licenses, also, are maintained for the express purpose of lessening the consumption of intoxicating beverages.
[Footnote 1: Carl Knies.]
The aim of every good government is to distribute its burdens of taxation, as well as its benefits, fairly and equitably among its citizens. It is the duty of every citizen to assist in the realization of this aim, by an intelligent, honest and disinterested vote. Equality of taxation means equality of sacrifice. Each person should contribute towards the support of the government in proportion to his means and the benefits enjoyed. It is the duty of every citizen, first to see that just and expedient tax laws are passed, then to pay his proper proportion, and lastly, to see that his neighbors likewise contribute their share. To obtain an equitable system of government revenue and expenditure has been the great motive force which, in the past, has urged the people forward in their efforts to secure popular forms of government.
The power to tax is legislative, and, according to our theory, can be exercised only by representatives directly elected by the people. The refusal of England in the last century to extend this principle of "no taxation without representation" to her colonies in America, lost her these possessions. A government to be stable and efficient must possess adequate powers for the collection of its revenue. The miserable condition to which the old Confederation was reduced by reason of the inadequacy of its powers in this respect, has already been discussed. Says Fiske: "Between the old Continental Congress and the government under which we have lived since 1789, the differences were many; but by far the most essential difference was that the new government could raise money by taxation, and was thus enabled properly to carry on the work of governing."[1]
[Footnote 1:Civil Government, p. 77.]
The sources of government revenue other than taxes, are various, and differ in different countries. In our consideration of the revenues and expenditures of our national, state, and local governments we shall have occasion to notice the various means by which their treasuries are filled.
#The Federal Government#raises its revenues independently of the other governing bodies, from different sources, and by a different set of officials. Besides taxation, the principal source of revenue is from the sale of public lands. Federal taxes are of two kinds:
1. Customs duties.
2. Excise or internal revenue duties.
Of these, much the greater sum is raised from customs duties. For the year 1889,[1] the total net receipts were $387,050,058. Of this $223,832,741 was derived from customs, and $130,894,434 from the internal revenue duties. The sale of public lands yielded in that year $8,038,651. The miscellaneous revenues amounted to $24,297,151.
[Footnote 1: For fiscal purposes the year begins July 1st.]
Customs or tariff duties are taxes which have to be paid on a large class of goods imported into this country from foreign countries. These charges are collected by Government collectors, stationed in all our principal seaport cities, who inspect all incoming vessels and determine the amount to be paid, according to the rate determined by Congress. This system constitutes the so-called protective tariff policy of our country. Those commodities not so taxed are said to be on the "free list." How much, and on what articles these duties shall be levied, is the question upon which the Republican and Democratic parties differ; the former favoring high, and the latter low rates, that is to say merely enough to support the Government, or, as it is termed, "a tariff for revenue only."
Internal revenue duties are those taxes collected by the government from its own citizens upon a small class of articles produced in this country. The chief items of this class are distilled liquors, tobacco, and oleomargarine. In 1889, out of the $130,894,434 received from internal revenue, there was derived from spirits and fermented liquor $98,036,041; tobacco, $31,866,861; oleomargarine and miscellaneous, $991,532. These duties are collected by Government collectors stationed in every United States district, who visit the distilleries, collect the taxes, and see that the law is enforced. In several Southern States attempts to evade the law are very frequent and difficult of detection. The expenses of the vast postal system conducted by the Federal Government are very nearly defrayed by the charges made for postage, and the amount received by fees more than equals the expense of the Patent Office.
#The State and Local Taxes#are generally, for convenience, collected at the same time, and by the same officials, but independently of the Federal government. The Constitution of the United States forbids the States to derive a revenue from duty upon goods imported or exported. The States are, therefore, for the most part, restricted to a direct tax on property for the support of their governments.
The general method for raising this tax is as follows: The legislature of the State, having determined what income is needed, apportion this sum among the counties, or, in New England, directly among the townships, in proportion to the value of the property situated within them, or establish a certain percentage tax on all property, to be collected in the same manner. So, similarly, the counties apportion among the cities and townships within their areas, in proportion to the value of their taxable property, not only what they have to pay to the State, but also the sums they have to raise for county purposes. Thus when the township or city authorities assess and collect taxes from the individual citizens, they collect at one and the same time three distinct taxes—the State tax, the county tax, and the city or township tax. Retaining the last for local purposes, they hand on the two former to the county authorities, who, in turn, retain the county tax, handing on to the State what it requires. Thus trouble and expense are saved in the process of collection, and the citizen sees on one tax paper all that he has to pay. The chief tax is the property tax, based on a valuation of property, and generally of all property, real and personal. Of this, by far the greater sum is realized from the tax on real property, (land and buildings on it). Cities and other local subdivisions, as has been stated, are raising their revenues more and more from the sale, taxation, or operation of such public franchises and rights as street-car lines, gas and waterworks. Those who fix the value of taxable property and thus determine the amount the owners are to pay, are called assessors. Those collecting taxes are called collectors. The revenue of the States is seldom large in proportion to the wealth and number of the inhabitants, because the chief burden of administration is borne not by the States, but by the Federal government, on the one hand, and the local subdivisions of the States on the other. The total revenue of all the States is barely one-third that of the Federal government.
#The Expenditures#of all the governing bodies, Federal, State, and local, are kept entirely independent of each other. Those of the Federal government are for the benefit of all the States, while those of the other bodies are only for their own individual benefit. The Federal government receives much more than it expends, and has yearly a surplus on hand in the Treasury. The States and local bodies have in the past expended more than their revenues, making up their deficiency by loans on their credit.
The chief objects of Federal expenditure (in addition to the postal system already considered and for the most part supported by its own revenue) are: 1st, interest on the public debt; 2d, pensions to disabled soldiers; 3d, for the support of the civil branch of the government; 4th, war and naval expenditures.
Total expenditures for the year 1889 were $299,288,988. The chief items were:
1. Interest on the public debt, $41,000,484 2. Pensions, 87,624,779 3. Civil service, 80,664,064 4. War and Navy, 65,815,079 5. Indians, 6,892,207
Money can be expended by the government only after it has been appropriated by Congress in its annual appropriation bills. The appropriation of supplies by Congress is the most important business that it transacts. Every year the heads of all the different departments frame estimates of the amounts of money needed to support their departments during the following year, which estimates they send to the Secretary of the Treasury, who, after considering and revising them, transmits them to Congress in his "Annual Letter." This letter is considered by the Appropriation Committee, whose duty it is to consider and frame bills for the appropriation of moneys. Though guided by these estimates, supplies frequently depart widely from them. After being reported to the House and passed, money bills are sent to the Senate, where they are invariably amended by increasing the appropriations and are returned to the House. A conference committee is then appointed from the House and Senate Committees on Appropriations, who, after mutual concessions, agree upon such appropriations as will be passed by both houses. The House then amends the bill as agreed upon, passes it, and sends it to the Senate again, which in turn passes it, and sends it to the President for his signature. All bills for raising money must, by the Constitution, originate in the House. Besides the appropriations for the expenses of government there is annually authorized a large expenditure for improvement of rivers and harbors. Many of the expenditures authorized by these bills are undoubtedly unnecessary, but they are passed by general consent of the members, each of whom desires to increase his popularity at home by getting public money spent in his district.
The expenses of the State governments are not heavy, and are devoted to but few objects. The chief expenditures are for:—(1) the salaries of officials; (2) judicial expenditures; (3) the State volunteer militia; (4) grants to public schools; (5) public charities and institutions, as prisons, insane asylums, etc., (6) interest on State debts; (7) internal improvements and public buildings.
The methods of appropriations are similar to those employed by theFederal government.
The expenditures of the local bodies, and particularly cities, are much larger, in proportion to their population, than those of the States, and are increasing at a greater rate than the increase of population. The objects of expenditure are numerous and very important. The chief ones are: (1) Interest on local debts; (2) maintenance and care of the streets and roads; (3) lighting of streets; (4) police; (5) salaries of officials.
The following are outlines of the receipts and expenditures of the State of Maryland for 1888, and for the City of Baltimore for 1887. These figures are given not because they of themselves possess any especial importance, but because from them can be obtained an idea of the activity of a typical State and city.
#Maryland.#[1]—The total receipts from all sources were $2,542,130; and there was paid out $2,016,060. The chief receipts were from:
General Taxes, $793,301Licenses, 487,969Corporation Tax, 73,553Railroad Tax, 58,455Inheritance Tax, 57,767Income from Stocks and Bonds owned, 206,175Fees, 17,585
#Baltimore.#[2]—The gross receipts into the treasury for the year ending December 31, 1887, were $8,446,439, and were chiefly from the following sources:
Taxes, $4,210,112Public schools, tuition fees, etc., 6,766Market houses, rent of stalls, 58,287Wharfage and rent of wharves, 33,561General licenses, 44,609Auction duties, 7,431Dividends on stock in B. & O. R.R., 130,000Water rents, 745,446Passenger railway companies, 132,167From the State for public schools, 147,403Temporary loan, 1,510,000Receipts to pay interest on loans, 896,704Sale of stock, 243,285
The total disbursements were $8,403,930. Of this $4,541,357 was spent on account of expenses of city government, the following being the principal items of expense:
Interest on the public debt, $915,987Expenses of law courts, 118,906Expenses of jail, magistrates, &c., . . 103,587Public schools (less amount paid by State), 594,089Expenses of poor, 210,739Police department, 702,882Street-cleaning department, 263,934Fire department, 214,226Street lighting, 221,203Parks, &c., 52,080Salaries, 72,624City council, 52,925
[Footnote 1: Finance Statistics of the American Commonwealths: E.E.Seligman. Publications of Am. Statistical Asso., Dec., 1889.]
[Footnote 2: R.T. Ely,Taxation in Am. States and Cities.]
Nearly all of our State and local governments, as well as the national government, have contracted large public debts, the interest payments upon which constitute one of the chief items in their lists of expenditures. The present debt of the Federal Government is largely the result of the enormous expenditures occasioned by the Civil War. In 1865, August 31, it reached its highest point $2,381,530,294, with an annual interest charge of $150,977,697. Since then it has been steadily reduced until in 1889 the total interest-bearing debt was but $829,853,990, with an annual interest charge of $33,752,354. The principal of the national debt is mainly in the form of interest-bearing bonds held by the National banks and private individuals. These bonds are of various denominations and are promises of the government to pay the sums named on their face, at the expiration of a certain period. The bonds at present unpaid, and as such constituting the major portion of our national debt, are principally of two kinds; those bearing four and one-half per cent, annual interest and falling due in 1891, and those bearing four per cent, interest and falling due in 1907.
The debts of most of the States were contracted by ill-advised and untimely systems of internal improvements. The total state indebtedness June I, 1890, as shown by the Eleventh Census, was $238,396,590, a decrease of slightly over $58,000,000 in ten years. The tendency now seems to be for States to withdraw from the money market as borrowers, and for the county and city governments to take their place.
The local debts are very large, and have shown a marked increase during the last twenty years. They have been for the most part incurred in improvements and construction of public works, which have in most instances well repaid the debts incurred.
Money.[1]
No man by himself produces everything he wants to use, but devotes his time to the production of some few things, and the surplus that he does not use, he exchanges for other things made by other men. In rude stages of society this is done by a direct exchange of one commodity for another,e.g.so much wheat or corn for a gun or plow. This is a very imperfect and cumbersome method, which cannot be employed in our present complicated transactions of buying and selling. There thus early developed the use of money, or the practice of referring the value of all things to one standard, usually the precious metals: so that, instead of trading 20 bushels of corn for a plow, where it would be necessary to go to the great trouble of finding a man who had a plow, and also wanted your corn, you sell it for so much money, and with this money you buy a plow. Money is thus but a medium of exchange and a standard of value.
In the United States, as in most nations, money has always been made by the Government, and the Government alone, so that one certain fixed system may prevail. For the sake of convenience, money is made of various kinds and denominations, and United States money may conveniently be regarded under the five following divisions: 1.#Gold Coin, Gold Bullion, and Gold Certificates.#—There are six gold coins: (1) the eagle, $10 piece; (2) the double eagle, $20 piece; (3) the half eagle, $5; (4) the quarter eagle, $2.50; (5) the $3 piece, and (6) the $1 piece. The three last are but little used. The gold bullion, or gold in bars and blocks uncoined, is for all practical purposes as good as the coin, and in foreign trade is much used, it being more convenient to handle. Besides the gold coin and bullion there are in circulation gold certificates. These are paper, the same in general appearance as the ordinary bank-note, and certify that an equivalent amount of gold has been deposited with the Treasurer of the United States, and that the holder of the certificate has the right to obtain the gold for it at any time. This does not increase the amount of money in circulation, as for every one issued just so much coin is withdrawn and stowed away in the Treasury. The certificates are used simply for convenience, and in order to avoid the necessary wear of the coin if in constant use. These certificates are of the denomination of $20.
2. #Silver Dollars and Silver Certificates#.—There is no silver bullion circulating as money, for a silver dollar does not contain a dollar's worth of silver, as the gold dollar does of gold, and the silver bullion is thus of different value (less value), according to weight, than the silver dollar. The silver certificates are similar to the gold certificates, already described, and certify that an equivalent amount of silver has been deposited in the Treasury.
3.#Subsidiary and Minor Coins.#—All coins of a lower denomination than $1 belong to one or the other of these two classes. There are three subsidiary coins, the fifty cent, the twenty-five cent, and the ten cent pieces. The three cent piece is no longer coined. All other coins are minor coins. The peculiarity of the subsidiary and minor coins is that they are, as compared with the standard coins (gold and silver dollars), of a greater value than the value of the metal they contain. The subsidiary coins are legal-tender to the amount of $10, the minor to the extent of twenty-five cents. By legal-tender is meant that the government has ordered that it must be received in payment of all debts and articles bought. Gold coin and the silver dollars and certificates are legal-tender to any amount.
4.#Treasury Notes.#—Under this head are included that form of money ordinarily known as "greenbacks," from the color of their backs. They were originally issued during the civil war, and are promissory notes on the part of the government, and as such constitute a portion of the debt of the government. They are paper, which of itself is of no value, and no coin is deposited in the Treasury which they represent, as in the case of the gold and silver certificates. They thus cost the government nothing, and, as they are made legal-tender, and paid out by the government, they were just so much clear gain to it. At first they were not redeemable, i.e., exchangeable for coin at the Treasury, but since 1879 they are, and are therefore just as valuable now as any other form of money, though formerly worth much less than their face value. One hundred million dollars in gold is kept on deposit in the Treasury for their redemption.
5.#Notes of National Banks.#—This is the one form of money that is not issued directly by the Federal government, but through the agency of what is called our "National Banking System," which may be thus described: A national bank can be organized by any number of men, provided the capital stock of the bank is at least $100,000. One-third of the capital must then be invested in government bonds and deposited in the United States Treasury. The bank may then issue notes to the extent of 90 per cent, of such deposit. Such notes are thus amply secured by the deposits with the government. The government guarantees their payment, and so they circulate as well as the certificates issued directly by the government. Thus a great deal of the paper money in circulation is issued by the national banks, which must, on demand, be redeemed with coin, and, in case of failure of the banks, are paid by the government, which reimburses itself from the deposits. A bank-note differs from a Treasury note in two particulars. The Treasury note or "greenback" is a promise of the government, and is legal-tender in payment of all private debts; the bank-note is the promise of a private company, and is not legal-tender. A bank-note is said to be paid when the bank gives a greenback or coin for it. A greenback is said to be paid or redeemed when the government gives gold for it.
The following figures, taken from the report of the Secretary of the Treasury for 1889, give the amounts of the various sorts of money described in the foregoing, which were then in the Treasury, in the banks, and in the hands of the people:
Gold coin and gold bullion, $680,063,505Silver coin and silver bullion, 343,947,093U.S. Treasury notes, 346,681,000National Bank-notes, 211,378,963Subsidiary coins, 76,601,836
It will be noticed that gold and silver certificates are not included, for, as explained, they merely represent an equal amount of coin or bullion on deposit.
The total amount of money is thus approximately $1,660,000,000, which, divided by the total population, gives about $27 per capita. It should be borne in mind in connection with these figures that other devices, such as checks, drafts, bills of exchange, and other forms of credit, are used side by side with money in carrying on trade and serving the same purposes.
By the Compromise Silver Bill of July 14, 1890, provision was made for a new kind of paper money. By this act the Secretary of the Treasury was directed to purchase, from time to time, silver bullion to the amount of 4,500,000 ounces each month, and to issue in payment for such purchases Treasury notes; these notes so issued to be redeemable on demand in coin, and to be a legal tender in payment of all debts, public and private, except where otherwise expressly stipulated.
[Footnote 1: In the preparation of this article, much assistance has been derived from an article by H.C. Adams contributed to theChautauquan.]
Public Lands of the United States.
Prior to 1781 but six of the original thirteen States—New Hampshire, Rhode Island, Maryland, Pennsylvania, New Jersey, and Delaware—had exactly defined boundaries. The others claimed lands of various extents, stretching to the Mississippi River, or even to the Pacific Ocean. The title to all this land was then in the individual States, and the National Government, as such, had no land of its own. This question of the ownership of the western land was one of the subjects of controversy and discontent between the States. It delayed the adoption of the Articles of Confederation for some time. Those States with little or no land regarded with jealousy their more fortunate neighbors, and would not consent to a union until a settlement or understanding was reached.
The Articles of Confederation were adopted only after assurance was made that all the public lands would be ceded to the Federal Government. This was finally done by the States.
The Government formed under the Constitution succeeded to all this land, and in addition, to further cessions made by the States, the last being that of Georgia in 1802. The subsequent additions of territory were made directly to the United States, and not to the States, and all land thus gained was held as public land to be disposed of by Congress.
While the area of the United States is 3,603,884 square miles, the public domain which has been acquired by cession, purchase, or conquest, to be disposed of by the Government as it desires, has amounted to 2,708,388 square miles, or about two-thirds of the total area of the country.
The absolute title to this land, as before stated, became vested in the United States Government. The disposal of these lands has always been under the sole power and control of Congress.
This land was all thinly populated by Indian tribes, who merely hunted over it, leaving unimproved its natural fertility and vast mineral resources. These tribes, being actual occupants, were recognized to have a sort of half interest in the land. This half ownership was always first extinguished by the United States by purchase for small sums, or by the granting of certain privileges, etc., before it was opened up for settlement and occupation by the white man. Land is still held, to a considerable extent, in this way by the Indians. This right of the Indians can be extinguished only by the United States, as they are not allowed to sell or treat at all with individuals or States or foreign nations.
Until 1812 the affairs of the public domain were managed by the Secretary of the Treasury. In that year the office of Commissioner of the General Land Office was created, which remained a bureau under the Treasury Department until 1846. On the creation of the Interior Department in that year, Indian affairs were transferred to it, and have remained under the same management until the present time. This bureau has complete charge of all matters relating to the management and disposal of the public lands, subject to the direction of Congress.
Almost every conceivable method of disposing of this land has been followed. The Government has, however, never assumed the position of landlord and rented the land, except in one case of some mineral land, and this experiment resulted disastrously. Before the land could be disposed of, it was necessary that it should be surveyed by the Government. To do this there was adopted as early as 1776, the so-called rectangular system, which, with slight changes, has been continued until the present time. By this system there are first surveyed a base and a meridian line, crossing each other at right angles, running north and south and east and west. From these fixed lines the land is surveyed and marked off into rectangles of six miles square, each thus containing thirty-six square miles. This is called a township. This is again divided up into sections of one square mile each or 640 acres, and this again into quarter sections of 160 acres each. In some cases these are still further subdivided.
The regulation and disposition of the public lands has been one of the chief duties imposed upon Congress.
The chief methods by which the public lands have been disposed of are as follows:
1.#Educational Grants.#—Congress from the very first provided liberally for the establishment of common schools through grants of public lands for this purpose. As each township is surveyed one quarter section of 640 acres is set apart for common schools. This has continued from the beginning down to the present time. In addition, large grants have been made specially for the endowment of universities. Within later years land has been given to every State to found State military and agricultural colleges. Up to the year 1888, there had thus been granted for educational purposes 77,448,192 acres.
2.#Land Bounties for Military and Naval Service.#—There have been granted by different acts bounties of public land, in the nature of pensions, to the soldiers and sailors of the United States Army, on their honorable discharge, for their service to the Government. The amount of land thus granted (1880) has been 61,028,430 acres.
3.#To the States for Internal Improvement.#—There was granted to the States during the years from 1828 to 1846, for the improvement of rivers, building of canals, wagon roads, railroads, etc., 162,230,099 acres.
4.#Sale of Public Land.#—Under this head there are two classes of public land—first, that which may be bought for the minimum rate of $1.25; and, secondly, the alternate sections along the railroads (the other alternate sections being granted to the railroads), the minimum price of which is $2.50. There have been sold in all 192,584,116 acres, realizing $233,000,000.
5. #Under the Pre-emption Acts.#—These acts, passed at various times, provide that where a man, a citizen of the United States, settles upon and cultivates for a certain length of time, a tract of land not greater than 160 acres, the United States will give him such tract.
6. #Under the Homestead Acts.#—The homestead laws have created a better and more certain manner for settlers to acquire land than under the pre-emption acts. By these acts it is provided that any citizen who will select either 160 acres of the $1.25 land, or 80 of the $2.50 land, can then get a permit from the land office, settle on his land, and acquire a title to it.
7.#Under the Timber Culture Act.#—This act gives to any one the right to 160 acres of the $1.25 land if he will plant 10 acres in timber, or 80 acres of the $2.50 land if he will plant 5 acres in timber.
8.#Certain Lands to States.#—Quite a large quantity of the public land has been given to the States on account of its quality, as swamp or overflowed land, and for various reasons, to the extent of 158,417,514 acres.
9.#Grants to Pacific and other Railroad Companies.#—The nature of these grants have already been spoken of in another chapter. From 1850 to 1872 a total of 150,504,994 acres was given for railroad construction.
Reconstruction.
The conclusion of the civil war in 1865 did not relieve the United States Government of its extraordinary difficulties. There was the whole South, a conquered territory, occupying the anomalous position of a district, still within the Union, yet possessing no legal state governments. The Confederate government had now been destroyed by the North, and the South was thus without a government. Four million slaves had been liberated, who were uneducated, without money, and living among people hostile to them. Congress had to provide for and protect these freedmen in their rights. The work to be done by Congress, was then:—1. To decide upon what terms and upon what conditions the seceded States should be re-admitted into the Union, and to provide for them a government until such re-admission. 2. To protect the negro.
The South, though in the Union, had at this time, of course, no representation in Congress, and consequently, the Republicans were in great majority. Unfortunately, Johnson, who succeeded to the Presidency at the death of Lincoln, though a Republican, disagreed with his party, and legislation upon this subject was only secured by passing all acts over his veto by a two-thirds vote.
After much discussion, the first Reconstruction Bill, "to provide for the more efficient government of the rebel States," was passed in 1867, vetoed by the President, and passed over his veto. Its principal provisions were—1. The insurrectionary States were to be put under United States control, and for this purpose divided into five military districts, over each of which the President was to appoint a commanding officer. 2. The people of the various States might hold a delegate convention, elected by the citizens who had not been deprived of the right to vote for participation in the rebellion. The convention was to prepare a new constitution, which constitution was to be then submitted to the vote of the people, and when ratified by them and approved by Congress, should go into force, and the State be entitled to representation in Congress. Before approval by Congress the constitutions adopted by the rebel States had to agree in all the following particulars: (1) abolishing slavery; (2) declaring null and void all debts created by States in aid of the rebellion; (3) renouncing all right of secession; (4) declaring the ordinance of secession which they had passed null and void; (5) giving the right to vote to all male citizens, without regard to color; (6) prohibiting the passing of any law to limit or abridge the rights of any class of citizens.
In 1868 the Fourteenth Amendment was adopted by a sufficient number ofStates, and was declared a part of the Constitution.
In 1871 all the States were, for the first time since 1861, represented in both houses of Congress. Reconstruction by Congress was then completed.
Party Machinery.
In all the States, counties, cities, and even in the smaller subdivisions of wards, political parties are thoroughly organized, with acknowledged leaders, and under systems of rules or party government. This party government, or "machine," as it is called, has been created by no law or constitution, but is one which has been gradually formed by the voters themselves, and under which they have voluntarily placed themselves, in order better to succeed in their elections, well realizing that the best chance of success is by having all the voters of their party united on certain principles embodied in a party platform, and having candidates so nominated that the whole party will recognize them as their choice.
The aims of party organization are: First, union, that is, having all voters united as to candidates and platform; and second, recruiting or the gaining of new adherents.
There are at present two opposing political parties, both striving for the control of the Government. Both have very nearly the same system of party government, but their organizations are totally distinct and separate one from the other.
There are two distinct parts of party government. They are; first, sets of committees, whose business it is to do all the work of managing elections, such as raising and applying funds for election purposes, organizing meetings, providing speakers, publishing and distributing political tracts and other information, and stirring up enthusiasm by parades and fireworks, etc. They have also the important duty of calling together nominating conventions.
The second part of the "machine" embraces the nominating conventions, which propose the names of the candidates whom their party are to support for election. These assemblies are called together by the committees periodically, for the purpose of specific nominations, and cease to exist as soon as their work is done. Besides nominating candidates, the conventions draw up the platform, which is a statement of party principles, beliefs, and pledges. To provide for their reassembling next time, they also elect a new committee, for the next term; and also send delegates to the next higher convention. Thus are found committees and a nominating convention, managing not only national and state elections, but even arranging and managing elections in the smaller electoral subdivisions.
There is a committee and a nominating convention for every city, for every county, for every district, and for every State. There are, then, throughout the whole United States, such committees, each controlling its own local affairs, but yet all related to each other, thus forming one vast organized system.
Beginning with the smallest and lowest, let us show their mutual connections and workings. Starting, then, with the township convention, or convention of a city ward, we find that all the voters of the party are called together on a certain day by a committee (which was chosen at the preceding meeting) for the purpose of nominating candidates for local affairs, and naming delegates to represent them at the city or county convention. The city or county convention, composed of these men, is called together by the city or county committee. It first nominates candidates for the city or county offices, and selects delegates to the state convention, and also provides for the next meeting by the election of a new committee for the ensuing year. In similar manner, just before every state election, the state convention, composed of city and county delegates, is called together by the state central committee. Here are nominated men for state officers; a new committee is appointed to manage state elections; and also, once every four years, the important duty of selecting Presidential electors is performed. The Democrats also select, in this state convention, their delegates to the National Presidential Nominating Convention. The Republicans select but four delegates from each State in state conventions, the remainder being appointed in district conventions. Following the same method the National Central Committee calls together a National Convention of all the delegates which have been appointed by the State, for the purpose of (1) nominating candidates for their party for President and Vice President; (2) drawing up and accepting a party platform; (3) selecting a new National Central Committee for the next four years, which committee is to manage the election campaign and call the next National Convention.
National Conventions and Presidential Campaigns.
#History and Development of the National Convention.#—In the Presidential elections of 1789 and 1792 there was no necessity for regular party nominations, as the whole people were practically unanimous in favor of Washington. Likewise in 1796 it was so well understood that Adams was the man desired by the Federalists, and Jefferson by the Democrats, that formal nominations were not required. But, commencing with 1800, political parties were more divided in their choice, and some method was demanded by which it might be decided on whom the party should unite. From 1800 to 1820 this demand was met by nominations made by Congressmen, in caucuses, or private meetings, of the members of each party. This method finally proved unsatisfactory to the country, but from 1824-1835 no new and better method was invented, and nominations were made rather irregularly, each State legislature proposing the name of its favorite. This method of nomination naturally failed to unite the voters of the party, in all the different States, on one man, and had to be abandoned. After a failure to revive nomination for President by Congressional caucuses, a new method was developed and adopted, which was by National Nominating Conventions, such as we have to-day. The introduction of this last plan may fairly be dated at 1840. National Conventions were first held at Eastern cities, but are now held further West, to accommodate the shifting center of population, Chicago being the favorite city. The National Convention is composed of delegates from all the States. Each State sends twice as many delegates as it has representatives in the National Senate and House of Representatives, thus making a total now of 802. In addition to these, the Republicans allow two delegates from each of the Territories.
#Method of Procedure.#—As soon as the State and Territorial delegations arrive in the city they each elect a member for the new National Central Committee for the next term. Inside of this committee is chosen an executive committee, which, in reality, does all the work of conducting the campaign. The members of this committee are almost always men of wealth, and are expected to contribute liberally to the campaign fund.
The business of the National Convention is commenced by the chairman of the National Central Committee calling the convention to order. A temporary chairman is then chosen, who appoints a "committee on credentials," whose duty it is to decide which delegation shall be admitted in case two delegations are sent from the same State, both claiming admittance as representing the party in that State. A "committee on resolutions" is also appointed to prepare the party platform. The next day the permanent chairman is appointed. The platform is then read and adopted, or amended and adopted. There is next an alphabetical roll-call of the States, when names are proposed and seconded for nomination as candidates for President. The average number of names proposed is seven or eight, though sometimes as many as twelve are offered. As each man is proposed the delegate presenting his name extols him in a laudatory speech, and gives reasons why his man will make a strong candidate and an able President. Voting then commences. Each delegate has one vote. In the Republican convention a majority of the whole number of the delegates voting for one man is required before a nomination is reached, while the Democrats require a two-thirds vote. Sometimes a nomination is made on the first ballot, while at other times the convention has been so divided that as many as 53 ballots have been required, as was the case when the Whigs nominated Scott. Forty-nine ballots were needed when Pierce was nominated by the Democrats. In 1888 Cleveland was nominated by the Democrats by acclamation, no vote being necessary to show the wishes of the delegates. Harrison was nominated by the Republicans on the eighth ballot.
A candidate for President having been selected, a Vice President is nominated in a similar manner, though generally with much less trouble, and the work of the convention is ended.
The candidates are now put before the people by their respective parties. The people, of course, do not vote directly for them, but what amounts to the same thing, vote for electors, who are pledged to vote for them. A vigorous campaign of four months then follows, until election day, in the first week in November.
Each candidate, a short time after his nomination, is expected to publish a letter of acceptance, in which he expresses his full confidence and belief in the platform which his party has adopted, discloses his views, and outlines what his future policy will be if he is elected.
To recapitulate, then, in a few words, let us see how a President is nominated and elected.
In nominating the President each voter in caucus or primary meeting shares in choosing delegates to the ward convention, which chooses delegates to the city or county convention, which in turn sends delegates to the district conventions. In these, delegates are chosen for the State conventions, where Presidential electors are appointed, and also the delegates sent to the National Convention.
In the National Convention, composed of delegates sent from the State conventions and Territories, the Presidential candidate is nominated. The electors are elected by the people, who in turn elect the nominees of their National Convention. If State officers, as Governor, Attorney-General, Secretary of State, Treasurer, etc., are to be elected, they are nominated in the State conventions and elected by the people.
Besides counties, townships, and cities, States have other subdivisions for political purposes. Thus the whole State is divided into senatorial districts, each one of which sends one Senator to the State legislature, and also into smaller districts, each one of which sends one member to the lower house of the State legislature. Usually a senatorial district is one or more counties, except in the case of large cities, which may in itself contain two or more senatorial districts.