CHAPTER X.

After the roll-call is completed, the presiding officer announces thepairs. Members who belong to different political parties may agree that they shall be recorded on opposite sides of party questions, whether they are present or not. Or pairs may be arranged for particular votes only. This device enables a member to be absent from his seat without feeling that his vote is needed.

After the roll-call is completed, the presiding officer announces thepairs. Members who belong to different political parties may agree that they shall be recorded on opposite sides of party questions, whether they are present or not. Or pairs may be arranged for particular votes only. This device enables a member to be absent from his seat without feeling that his vote is needed.

The President's Power in Law-Making.—A bill which has received a majority vote in both houses is next sent to the President.

Article 1, Section 7, Clause 2.Every bill which shall have passed the House of Representatives and the Senate shall, before it become a law, be presented to the President of the United States; if he approve he shall sign it, but if not he shall return it, with his objections, to that house in which it shall have originated, who shall enter the objections at large on their journal and proceed to reconsider it. If after such reconsideration two-thirds of that house shall agree to pass the bill, it shall be sent, together with the objections, to the other house, by which it shall likewise be reconsidered, and if approved by two-thirds of that house it shall become a law. But in all such cases the votes of both houses shall be determined by yeas and nays, and the names of the persons voting for and against the bill shall be entered on the journal of each house respectively. If any bill shall not be returned by the President within ten days (Sundays excepted) after it shall have been presented to him, the same shall be a law, in like manner as if he had signed it, unless the Congress by their adjournment prevent its return, in which case it shall not be a law.

There are then three ways in which a bill may become a law. (1) It may pass by majority vote in both houses and be signed by the President. (2) It may, after being vetoed by the President, be passed by two-thirds vote in both houses. (3) It will become a law if the President neither signs nor vetoes it within ten days, unless these are at the end of the session.

The framers of the Constitution intended that the veto power should be a check, though not an absolute one, upon hasty or unwise legislation. The President may cause a bill to fail by neither signing nor vetoing it during the last ten days of a session. The termpocket vetohas been applied to this method of defeating bills.

SUPPLEMENTARY QUESTIONS AND REFERENCES.

1. Copies of the Congressional Record and the Congressional Directory furnish interesting illustrations of the topics treated in this chapter.

2. What difference is there in the granting of recognition in the Senate and House? Harrison, This Country of Ours, 45-48.

3. How are obstructive tactics carried on? Alton, Among the Law-makers, Chapter 20.

4. Reinsch, Young Citizen's Reader, 198-213. Marriott, Uncle Sam's Business, 8-16.

I. NATIONAL FINANCES.

The Power of Taxation.—When we speak of the finances of a country, we mean its revenues and expenditures. Revenues have their origin chiefly[20]in taxation, and the power vested in Congress by virtue of which taxes are imposed and collected is found in the following clause:

Article I, Section 8, Clause 1.The Congress shall have power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts and excises shall be uniform throughout the United States.

Duties on Imports.—The two forms of taxes relied upon by the United States for its revenues are (1) duties and (2) excises.[21]A duty is a tax levied upon goods that are imported into the United States.[22]The merchant doing business in New York, for example, cannot obtain possession of the goods he has imported until the officers of the custom-house at that port have examined theinvoice, or the list of articles in each package, with their prices; and the officers may examine the goods, also, to see if they correspond in amount and quality to the statements of the invoice. The importer then pays to the collector of the port of New York the amount of the duty levied on his importation.

Kinds of Duties.—These are of two kinds. (1)Specificduties are fixed amounts levied on certain units of measurement of commodities, as the pound, yard, or gallon. Under the tariff law of 1909 the duty on tin-plate was one and two-tenths cents for each pound. (2)Ad valoremduties are levied at a certain rate per cent on the value of the articles taxed. The law of 1909 laid a duty of 60 per cent on lace manufactures.On some articles both kinds of duties are levied. Under the law just mentioned, the duties on carpets and rugs were 10 cents per square foot and 40 per centad valoremin addition.Passengers on steamships coming from foreign countries are required to declare what dutiable goods they have among their baggage, each person being allowed to enter $100 worth of goods free of duty. Upon landing, their baggage is examined; trunks and valises are opened, and in suspected cases the persons of travelers are searched for concealed dutiable goods. The temptation to under valuation and to smuggling, in order to escape this form of taxation, is so great that constant vigilance is necessary at custom-houses and along the borders of the United States to prevent these frauds. Special agents and revenue cutters are employed to detect violations of the law.

Kinds of Duties.—These are of two kinds. (1)Specificduties are fixed amounts levied on certain units of measurement of commodities, as the pound, yard, or gallon. Under the tariff law of 1909 the duty on tin-plate was one and two-tenths cents for each pound. (2)Ad valoremduties are levied at a certain rate per cent on the value of the articles taxed. The law of 1909 laid a duty of 60 per cent on lace manufactures.

On some articles both kinds of duties are levied. Under the law just mentioned, the duties on carpets and rugs were 10 cents per square foot and 40 per centad valoremin addition.

Passengers on steamships coming from foreign countries are required to declare what dutiable goods they have among their baggage, each person being allowed to enter $100 worth of goods free of duty. Upon landing, their baggage is examined; trunks and valises are opened, and in suspected cases the persons of travelers are searched for concealed dutiable goods. The temptation to under valuation and to smuggling, in order to escape this form of taxation, is so great that constant vigilance is necessary at custom-houses and along the borders of the United States to prevent these frauds. Special agents and revenue cutters are employed to detect violations of the law.

Tariff Laws.—Atariffis the list of the rates of duties fixed by law. An importer of foreign goods must consider the amount of the duties he has paid as part of the cost of the goods when he sells them. If a higher price is caused in this way, less of such goods will be imported and the production of the goods in this country will be encouraged. Consequently, high rates of duties may have a decided influence upon the industries of a country. When the rates of duties are so fixed as to bring about this result, we have aprotectivetariff; i.e., one under which persons can produce in this country certain articles which otherwise they could not produce, because of their cheapness when imported from a foreign country. The duties are made so high that it is not profitable to import the articles. When rates of duties are fixed primarily with the object of raising revenue, and without regard to their effect upon the industries of the country, we have atariff for revenue. This kind of tariff is generally meant when the termfree tradeis used. Articles on which no duties are imposed are said to be on thefree list. There is no country which fails to collect duties on some of its importations.

Reciprocity Agreements.—The United States has entered intoreciprocity treatieswith various countries for securing the reduction of tariff rates. Each country agrees to admit certain products of the other country at reduced rates, or free of duty. These are generally commodities in the production of which there is little or no competition between the parties to the treaty.

Reciprocity Agreements.—The United States has entered intoreciprocity treatieswith various countries for securing the reduction of tariff rates. Each country agrees to admit certain products of the other country at reduced rates, or free of duty. These are generally commodities in the production of which there is little or no competition between the parties to the treaty.

Internal Revenue Taxes.—Excises are taxes laid upon the manufacture and sale of certain products within the country. At the present time theseinternal revenuetaxes are levied by the National government upon liquors,[23]tobacco, snuff, opium, oleomargarine, filled cheese, mixed flour, and playing cards. The greater number of these taxes are paid by the purchase of stamps, which must be affixed, in the proper denominations, to the articles taxed. When the packages are broken, the stamps must be destroyed so that they cannot be used again.

War Taxes.—Because taxes of this kind are so easily collected, the government has extended them to a great number of articles when it suddenly needed a large revenue, as in the War of 1812, the Civil War, and the Spanish War of 1898. The law of 1898 increased the taxes on liquors and tobacco, and imposed new taxes on (1) proprietary articles, and (2) documents. Under the first heading fall patent medicines and compounds of various kinds. Documentary taxes[24]were imposed upon legal papers, such as deeds, mortgages, etc., and also upon bank checks and drafts, telegraph and telephone messages, and express receipts. Under this law the internal revenue receipts rose from $170,000,000 in 1898, to $273,000,000 in 1899. Congress has repealed these special war taxes.Corporation Tax.—In 1909 Congress levied a tax upon corporations. Every corporation doing interstate business is required to report its earnings and its expenses. The difference between these amounts is itsnet earnings. The law requires the payment of one per cent of the net earnings that are in excess of $5000.

War Taxes.—Because taxes of this kind are so easily collected, the government has extended them to a great number of articles when it suddenly needed a large revenue, as in the War of 1812, the Civil War, and the Spanish War of 1898. The law of 1898 increased the taxes on liquors and tobacco, and imposed new taxes on (1) proprietary articles, and (2) documents. Under the first heading fall patent medicines and compounds of various kinds. Documentary taxes[24]were imposed upon legal papers, such as deeds, mortgages, etc., and also upon bank checks and drafts, telegraph and telephone messages, and express receipts. Under this law the internal revenue receipts rose from $170,000,000 in 1898, to $273,000,000 in 1899. Congress has repealed these special war taxes.

Corporation Tax.—In 1909 Congress levied a tax upon corporations. Every corporation doing interstate business is required to report its earnings and its expenses. The difference between these amounts is itsnet earnings. The law requires the payment of one per cent of the net earnings that are in excess of $5000.

Rules for Levying Taxes.—The Constitution contains three rules by which Congress must be guided in the levying of taxes. We have seen, Article I, Section 8, Clause 1, thatduties, imposts and excises must be uniform throughout the United States; that is, the same rates must prevail everywhere. Another provision, Article I, Section 2, Clause 3, is thatrepresentatives and direct taxes shall be apportioned among the several States ... according to their respective numbers.[25]

The third provision is the Sixteenth Amendment, which became a part of the Constitution in February, 1913: Article 16.The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

We have, therefore, the following classification:—

I. Direct taxes, levied onpersons,[26]landsMust be apportioned amongthe States according to populationII. Indirect taxesduties, imposts, excises, income taxes.Must be uniform throughout the United States

So far, we have discussed the indirect taxes only, for at present the United States levies no direct taxes. In our previous history, however, the government has imposed all the kinds of taxes mentioned in the outline above. In levying a direct tax, Congress must determine the total amount to be raised (as $2,000,000 in 1798, and $20,000,000 in 1861), and then apportion this amount among the States, according to their population.

The bills introduced into Congress which provide for taxation are called "bills for raising revenue." They must originate in the House of Representatives (Article I, Section 7, Clause 1). The Committee on Ways and Means frames these bills. In the Senate such bills are referred to the Committee on Finance, and here the bills may be amended.

The Appropriation of Money.—Appropriation bills are those which provide for the expenditure of the government's funds, and these bills are in charge of the committee on appropriations in each house.

Below is a list of the principal items in the revenues and appropriations for the year ending June 30, 1910.

REVENUESDuties$330,000,000Internal revenue290,000,000Miscellaneous52,000,000Total$675,000,000EXPENDITURESWar Department$156,000,000Navy Department123,000,000Indian Bureau18,000,000Pensions160,000,000Interest on public debt21,000,000Civil list and miscellaneous180,000,000Total$659,000,000

REVENUESDuties$330,000,000Internal revenue290,000,000Miscellaneous52,000,000Total$675,000,000EXPENDITURESWar Department$156,000,000Navy Department123,000,000Indian Bureau18,000,000Pensions160,000,000Interest on public debt21,000,000Civil list and miscellaneous180,000,000Total$659,000,000

The Power to Borrow Money.—We have now seen how money is provided for the government under ordinary circumstances. In extraordinary cases this revenue is not sufficient; accordingly, Congress has been given power by Article 1, Section 8, Clause 2,To borrow money on the credit of the United States.

Money is borrowed in most cases by the sale of bonds. These are of the same nature as the promissory notes by which individuals obtain loans. National bonds state the promise of the United States to pay a certain amount, at a stated time, with interest. A "registered" bond contains the name of the owner, and this is a matter of record at the Treasury Department. When this bond is sold, the record must be changed. "Coupon" bonds are usually payable to bearer; they have attached to them a number of coupons equal to the number of interest payments due during the term of the bond. Each of these is cut off as the payment becomes due, and can be cashed at any bank.

Bonds are bought and sold on the market, and their prices are quoted in the daily papers. When the bonds fall due, they areredeemedby the government at their face value, or "at par." On the market all United States bonds are now selling "at a premium." Issues of bonds were made in 1898, the rate of interest being 3 per cent, and in 1900, the rate being 2 per cent. The Public Debt Statement issued monthly by the Treasury Department gives the divisions of the bonded debt and the amount outstanding. On December 1, 1910, the amount of the interest-bearing debt was $913,000,000.

Bonds are bought and sold on the market, and their prices are quoted in the daily papers. When the bonds fall due, they areredeemedby the government at their face value, or "at par." On the market all United States bonds are now selling "at a premium." Issues of bonds were made in 1898, the rate of interest being 3 per cent, and in 1900, the rate being 2 per cent. The Public Debt Statement issued monthly by the Treasury Department gives the divisions of the bonded debt and the amount outstanding. On December 1, 1910, the amount of the interest-bearing debt was $913,000,000.

II. THE POWER OF CONGRESS OVER COMMERCE.

The Control of Commerce.—The power over commerce, which we are next to discuss, was given to Congress because the history of the country under the Articles of Confederation showed clearly that State control of commerce resulted in confusion and constant disputes. It is necessary that merchants and ship-owners should conduct their business under laws that are asuniformas possible. It is also necessary that they should becertainas to the terms of the law. These conditions could not exist if each State were to make laws controlling the commerce going to other States and to foreign countries.

The Constitution gives Congress the power, in Article I, Section 8, Clause 3,To regulate commerce with foreign nations, and among the several States, and with the Indian tribes. Not all commerce that is carried on by the citizens of this country is subject to control by Congress.

There is a vast amount of commerce that is carried on entirely within the limits of the different States. Over this commerce Congress has no power; it is regulated by State laws relating to trade and transportation.

Interstate Commerce.—The distinction between State and interstate commerce is not readily seen in many cases; but in general it may be said that if a commodity starts in one State destined for another, its control throughout its course lies within the power of Congress. This principle applies to both land and water transportation. So the coast trade among the States lies within the jurisdiction of Congress; also, commerce upon those rivers that form highways between different States. The harbors and waterways of the United States have been improved by the expenditure of many millions of dollars. This money has been appropriated in the "River and Harbor Bills" that are passed by almost every Congress.

The Interstate Commerce Law.—The importance of railroad transportation led to the enactment, in 1887, of the "Interstate Commerce Law," controlling this form of commerce. The law became necessary because of certain abuses which had arisen. In many instances the railroads gave lower freight rates to certain persons than to others doing the same kind of business; again, the merchants or manufacturers of certain cities were favored by more liberal rates than could be obtained by those who were engaged in the same industries in other cities. As a result, the business of many persons and places suffered injury, while the business of their rivals prospered through the advantages given to them by the railroads.

In consequence of these and other evils, various laws, beginning with that of 1887, have been passed to control not only railroad and steamboat lines, but also telegraph, telephone, express, and sleeping-car companies in so far as they are engaged in interstate and foreign commerce.

Some provisions of these laws will now be stated, (1) Charges must be just and reasonable. The Interstate Commerce Commission has power to decide what is reasonable, and tofix rates,after an investigation. (2) It is unlawful to give one person or corporation a better rate than another for the same service. This is called "discrimination." Passes cannot be granted, except to employees. (3) All rates must be posted where they can be consulted by any person. (4) All companies engaged in interstate commerce must open their books to inspection by the commission and must make reports that they require. (5) If any person objects to a decision of the commission, he may appeal to the Commerce Court, which has been created to consider such cases.

The Control of Trusts.—Among the abuses arising in connection with interstate commerce are those which result when persons enter into agreements or combinations to prevent free competition; for under these circumstances prices are raised, or certain persons are favored in trade. In 1890, Congress passed a law prohibiting such combinations "in restraint of trade or commerce among the several States or with foreign nations." This is known as the Sherman Anti-trust Law.-Now, a trust is simply a large corporation which has absorbed or killed off, more or less completely, other establishments engaged in the same industry. The trust may or may not have a monopoly, that is, complete control in that line of business; and it may or may not be engaged in interstate commerce. An agreement among certain, railroad companies to establish and maintain freight rates was declared to be in violation of the law of 1890. Also, a combination, or "conspiracy," among railroad employees to stop the running of trains was declared illegal.

The "trust problem," which is so prominent in current political discussion, is the question of preventing the evils of combination in industry. These evils become evident when excessive prices are charged by persons who control certain lines of business; that is, when free competition is prevented in the production, transportation, or sale of commodities. If the business conducted by a trust lies entirely within the limits of a single State's boundaries, then it must be regulated by State law.

The "trust problem," which is so prominent in current political discussion, is the question of preventing the evils of combination in industry. These evils become evident when excessive prices are charged by persons who control certain lines of business; that is, when free competition is prevented in the production, transportation, or sale of commodities. If the business conducted by a trust lies entirely within the limits of a single State's boundaries, then it must be regulated by State law.

III. THE MONEY of THE UNITED STATES.

Our National Currency.—Another of the most important powers of Congress is that granted in the following clause:—

Article I, Section 8, Clause 5.To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures.

In civilized countries it is the practice of the government to furnish the people a "circulating medium" for use in trade and commerce. Two kinds of money are in use in the United States: (1) coin or specie; and (2) paper money. The total amount of money in circulation in the United States on November 1, 1910, was $3,124,679,057 or $35.01per capitafor the whole population. We shall first consider the coins of the nation.

How Coins Are Made.—The coinage of money takes place at the mints, which are located at Philadelphia, Denver, New Orleans, and San Francisco. Gold and silver come to the mints in the form of bricks, or rough bars, to which the termbullionis applied. Alloy must be added to the pure metal for the purpose of rendering it of sufficient hardness to withstand wear. In our gold and silver coins one-tenth of the weight is an alloy composed of copper and nickel. A quantity of the bullion of the required purity is first melted and then cast into ingots, or long bars. Each bar is next run between heavy rollers until it takes the form of a thin strip. From the strip are punched round pieces, called "blanks," of the size and thickness of the coin that is being made. In the next process the blank is weighed on a delicate balance; when found to be of the correct weight, the coin is placed in a powerful press, and from this it comes with its edge raised above the face and its edge milled. In a similar press the designs are stamped upon the faces of the coin.

Below is a list of the coins now being minted.

GOLD COINS[27]Double eagleHalf-eagleEagleQuarter-eagleSILVER COINSStandard dollarQuarter-dollarHalf-dollarDimeMINOR COINSFive-cent (nickel)One-cent (bronze)

The silver coins less in value than one dollar are calledsubsidiarycoins.

The Ratio of Gold and Silver Coins.—The law fixes the weight of pure metal in a silver dollar at 371.25 grains, troy weight, and that of the pure metal in a gold dollar at 23.22 grains. Theratioof these weights is 15.988+: 1, or nearly 16:1. This indicates the origin of the famous expression, "sixteen to one."Free Coinage.—Byfree coinageis meant a policy established by law, under which any person may bring bullion to the mint in any amount and have it coined; that is, the amount which the government will coin isunlimitedby law. Our country has always had the policy of free coinage with respect to gold. This was also the policy in the coinage of our silver dollars until 1873. At that time the coinage of the silver dollar was discontinued until a law was passed in 1878 (the Bland Act) renewing its coinage, but inlimitedquantities. The government purchased silver bullion under this law, and under the Sherman Act (1890), but since 1893 no silver bullion has been purchased for the coinage of silver dollars, but the bullion already on hand has been used for this purpose.

The Ratio of Gold and Silver Coins.—The law fixes the weight of pure metal in a silver dollar at 371.25 grains, troy weight, and that of the pure metal in a gold dollar at 23.22 grains. Theratioof these weights is 15.988+: 1, or nearly 16:1. This indicates the origin of the famous expression, "sixteen to one."

Free Coinage.—Byfree coinageis meant a policy established by law, under which any person may bring bullion to the mint in any amount and have it coined; that is, the amount which the government will coin isunlimitedby law. Our country has always had the policy of free coinage with respect to gold. This was also the policy in the coinage of our silver dollars until 1873. At that time the coinage of the silver dollar was discontinued until a law was passed in 1878 (the Bland Act) renewing its coinage, but inlimitedquantities. The government purchased silver bullion under this law, and under the Sherman Act (1890), but since 1893 no silver bullion has been purchased for the coinage of silver dollars, but the bullion already on hand has been used for this purpose.

Paper Money.—We have in the United States five kinds of paper money in general circulation:—

KindsAmounts in circulation, Nov. 1, 1910.1. United States notes$341,000,0002. Gold certificates836,000,0003. Silver certificates483,000,0004. National bank notes706,000,0005. Treasury notes of 18903,500,000

The History of United States Notes.—United States notes, or "greenbacks," as they are commonly called, originated during the Civil War. When the government was without specie (i.e., gold and silver money) with which to purchase supplies for the army and pay other expenses, it issued these notes. Each note says on its face, "The United States will pay to bearer $——." Since no time was set for the fulfillment of this promise, and since there was neither gold nor silver in the Treasury with which to redeem the notes, people would naturally hesitate to accept them in payment for goods or salaries. Consequently, Congress made the notes "legal tender";[28]that is, the law compelled creditors to receive this kind of money in payment for debts. The notes passed into circulation, therefore, because people were forced to take them; but their value depreciated greatly during the war. In 1879 the government began the redemption of the notes in specie, and since that time they have been worth their face value.

Gold and Silver Certificates.—It is much more convenient to handle paper money than coins. When a person deposits gold or silver coin in the Treasury, he may receive these certificates in exchange. Consequently, the value of these certificates in circulation represents an equal amount of gold coin and silver dollars stored in the United States Treasury and ready for exchange for the certificates at any time.

National Bank Notes.—The fourth kind of paper money is issued by National banks. These are organized under United States law and subject to control by an officer of the Treasury Department. Like banks that are organized under State law, National banks conduct the ordinary banking operations. That is, they receive deposits, loan money, and buy and sell drafts in the ordinary course of business. In addition, these banks are given the right "to issue notes." In doing this, the bank first buys on the market a certain amount of United States bonds; these it sends to the Treasury at Washington and leaves there on deposit. The bank will then receive from the Treasury "National bank notes" equal in amount to the face value of the bonds deposited. These notes say that "The National Bank of ——— will pay the bearer $——, on demand." Now, the bank may fail, i.e., it may not be able to pay what it owes to its depositors and other creditors. But the holders of National bank notes will not suffer loss. For the Treasury will sell the bonds and thus obtain cash with which it can redeem the notes held by individuals.

The amount of Treasury notes of 1890 is comparatively small, and this kind of money is destined to disappear within a few years.

SUPPLEMENTARY QUESTIONS AND REFERENCES.

1. The tariff schedule in force at the present time may be found in newspaper almanacs. Is this tariff high, low, or moderate in its rate?

2. The Statistical Abstract, published by the Bureau of Statistics of the Treasury Department, gives the list of items upon which duties and internal revenue taxes are collected, and the amounts yielded by each for a series of years; the expenditures of the government, with the chief items; a statement of the National debt; and statistics concerning the money of the United States. See also any newspaper almanac.

3. Why do liquors and tobaccos bear the heaviest excise taxes? What reasons can you give for taxing the other articles mentioned on pp. 82-83?

4. Because our coins contain one-tenth alloy, they are said to be nine-tenths fine. Calculate from the weights of pure metal, given on p. 91, the total weights of the gold and silver dollars.

5. For information concerning the Act of Congress fixing a "standard of weights and measures," see Government in State and Nation, 188-189.

6. The depreciation of the United States notes, referred to on p. 92, is shown graphically in Government in State and Nation, 185.

7. For our money, see Reinsch, Young Citizen's Reader, 101-103; Marriott, Uncle Sam's Business, 97-119; 165-172; Century Book for Young Americans, 121-134.

8. On commerce, read Harrison, This Country of Ours, 65-67.

9. Finances. Harrison, 59-65, and Chapter 12; Marriott, 109-127.

I. POWER OF NATURALIZATION.

Who Are Citizens.—Who are citizens of the United States is always a question of interest. We find it clearly answered in the first clause of the Fourteenth Amendment as follows:All persons born or naturalized in the United States and subject to the jurisdiction thereof are citizens of the United States, and of the States wherein they reside.

Thus there are two classes of citizens: (1) those who are citizens by birth; (2) those who have been naturalized. Children born in this country, though of foreign parentage, and residing here, may be considered American citizens if they choose. According to an Act of Congress, passed in 1882, Chinese aliens may not be naturalized; but our Supreme Court has decided that a child born in the United States of Chinese parents is a citizen, if he desires to be. Though born in a foreign country, a child whose father is an American citizen may claim the privilege of American citizenship. Indians who keep their tribal relations are not included under the provisions of this section.

Naturalized Citizens.—The second class of citizens are those who are naturalized. That the rules should be uniform by which aliens become citizens, is self-evident. After a brief discussion, the Constitutional Convention provided in Section 8, Clause 4, thatCongress shall have the power to establish a uniform rule of naturalization, and uniform laws on the subject of bankruptcies throughout the United States.

Process of Naturalization.—(1) The foreigner desiring to become a citizen goes before the clerk of any court of record and declares, "upon oath," that it is his intention to become a citizen of the United States, and to renounce all allegiance to the government which has jurisdiction over him. He then receives his "first papers." (2) After he has resided in the United States for five years, providing two years have elapsed since his "declaration of intention," he may secure his certificate of naturalization. He must appear in open court and swear that he will support the Constitution of the United States, and renounce all allegiance to any foreign power. Two witnesses must testify to his term of residence, and declare that he is a man of good moral character. The applicant must be able to speak the English language. His wife, and those of his children who are under twenty-one years of age, become citizens at the same time. In certain cases Congress has, by a single act, admitted large numbers of aliens to American citizenship, as it did at the time of the purchase of Louisiana, the annexation of Texas, and of Hawaii.

Bankrupt Laws.—It sometimes happens, because of general depression in trade throughout the country, on account of losses, or for other reasons, that business men become heavily involved in debt. They are said to be insolvent. Now, it is but just that such property as they have should be divided in some equitable way among the creditors. A bankrupt law secures such a division, and the debtor is, at the same time, freed from all legal obligation to pay the debts which cannot be met in this way. The first law of Congress on this subject was passed in 1802, and repealed in 1803. Since that time there have been three other bankrupt laws, but the total time during which they have been in force amounts only to some twenty years. The last law, that of 1898, is still in operation.[29]

Bankrupt Laws.—It sometimes happens, because of general depression in trade throughout the country, on account of losses, or for other reasons, that business men become heavily involved in debt. They are said to be insolvent. Now, it is but just that such property as they have should be divided in some equitable way among the creditors. A bankrupt law secures such a division, and the debtor is, at the same time, freed from all legal obligation to pay the debts which cannot be met in this way. The first law of Congress on this subject was passed in 1802, and repealed in 1803. Since that time there have been three other bankrupt laws, but the total time during which they have been in force amounts only to some twenty years. The last law, that of 1898, is still in operation.[29]

Some States have also passed insolvency laws. However, these must not in any way conflict with the provisions of the National bankrupt laws.

II. THE POSTAL SYSTEM.

Organization of the Post-office Department.—We can appreciate somewhat the advancement made in the postal service rendered by the government when we read that an Act of Congress in 1782 directed that mail should be carried "at least once in each week from one office to another." Our well-organized postal system, declared recently by the Postmaster-General to be the "greatest business concern" in the world,[30]has been evolved through laws made in carrying out the provision of the Constitution thatCongress shall have power to establish post-offices and post-roads.

As is well known, the Postmaster-General, a member of the President's Cabinet, is at the head of this department of government. One of the chief burdens of the Post-office Department was formerly the appointment of the so-called fourth-class postmasters, intrusted to the Fourth Assistant Postmaster-General. Executive orders of Presidents Roosevelt and Taft placed 50,000, or about five-sevenths, of these postmasters in theclassifiedservice. An order of President Wilson, in 1913, applied themeritsystem to these offices, by which these postmasters were compelled to demonstrate their fitness for these appointments. This order included all fourth-class postmasters except those paying less than $180 a year. The other three classes, in which are included those postmasters whose salaries are not less than $1000, are appointed by the President, with the consent of the Senate.

Classes of Mail.—Mail matter belongs to one of four classes. In general, the classes and rates are as follows: First class—letters, two cents an ounce; second class—newspapers and periodicals, one cent a pound; third class—books, one cent for two ounces; and fourth class—merchandise, limited to four-pound packages, one cent an ounce.

Classes of Mail.—Mail matter belongs to one of four classes. In general, the classes and rates are as follows: First class—letters, two cents an ounce; second class—newspapers and periodicals, one cent a pound; third class—books, one cent for two ounces; and fourth class—merchandise, limited to four-pound packages, one cent an ounce.

Free Delivery.—Among the notable advances in the mail service was the provision for the free distribution of mail in the cities of 10,000 inhabitants, or where the annual postal receipts are $10,000 and above.

Rural Free Delivery.—No innovation in postal methods has been more successful than the free delivery of mails in the country districts. The development of the system, since its establishment in 1897, has been remarkable.[31]

Among the good effects resulting from its extensive introduction may be mentioned the following: (1) Correspondence in the communities affected has increased. (2) The circulation of the daily newspaper and of periodical literature has been greatly enlarged, and interest has grown in public affairs. (3) Good roads have been multiplied, for they are made one of the conditions for the introduction of the service. (4) Because the country districts are brought into daily communication with the centres of population, the tendency to quit the farm for the town has been lessened and thus rural free delivery is helping, in some degree, to solve one of the problems of our social and industrial life.

Postal Savings-Banks.—At various times bills have been before Congress providing for the establishment of postal savings-banks in connection with post-offices. It is proposed that they shall receive small amounts on deposit, paying a low rate of interest, and that the funds secured be invested in government bonds. A law was passed in 1910 which provided for the establishment of postal savings-banks. The plan has proved a success.Some of the Defects in Our Postal System.—(1) For thirty years prior to 1911 there has been an annual deficit of several million dollars. This was caused largely through the transportation of second-class matter, so-called periodical publications. But in 1911 there was a postal surplus of nearly $220,000, which was due largely to more business-like methods in management. That this is an unjust drain upon the public funds is clear, when we consider that, in a recent year, the government expended $17,277,783 more than it received for carrying second-class mail. (2) Another serious defect has existed in the payment of exorbitant rates to railroad companies for carrying the mails. (3) Some Congressmen abuse the privilege granted them of sending government publications free. (4) The postal system has offered one of the best fields for the manipulation of the spoilsman. Postmasters have been usually appointed on the recommendation of representatives, and, too frequently, the one essential to securing an office is that the applicant must be influential in politics.Parcels Post.—On January 1, 1913, a far-reaching innovation was put into operation by the Post-office Department. The parcels-post system was used for the first time. Bills providing for such a system had been introduced into Congress, but failed to pass owing largely to the opposition of express companies and other common carriers.

Postal Savings-Banks.—At various times bills have been before Congress providing for the establishment of postal savings-banks in connection with post-offices. It is proposed that they shall receive small amounts on deposit, paying a low rate of interest, and that the funds secured be invested in government bonds. A law was passed in 1910 which provided for the establishment of postal savings-banks. The plan has proved a success.

Some of the Defects in Our Postal System.—(1) For thirty years prior to 1911 there has been an annual deficit of several million dollars. This was caused largely through the transportation of second-class matter, so-called periodical publications. But in 1911 there was a postal surplus of nearly $220,000, which was due largely to more business-like methods in management. That this is an unjust drain upon the public funds is clear, when we consider that, in a recent year, the government expended $17,277,783 more than it received for carrying second-class mail. (2) Another serious defect has existed in the payment of exorbitant rates to railroad companies for carrying the mails. (3) Some Congressmen abuse the privilege granted them of sending government publications free. (4) The postal system has offered one of the best fields for the manipulation of the spoilsman. Postmasters have been usually appointed on the recommendation of representatives, and, too frequently, the one essential to securing an office is that the applicant must be influential in politics.

Parcels Post.—On January 1, 1913, a far-reaching innovation was put into operation by the Post-office Department. The parcels-post system was used for the first time. Bills providing for such a system had been introduced into Congress, but failed to pass owing largely to the opposition of express companies and other common carriers.

III. COPYRIGHTS AND PATENTS.

Copyrights and Patents.—Section 8, Clause 8.To promote the progress of science and useful arts, by securing, for limited times, to authors and inventors, the exclusive right to their respective writings and discoveries.

The development of American literature has been greatly aided through the operation of laws based on this clause. Copyrights are secured from the Librarian of Congress. Any person obtaining a copyright has the sole right to print, copy, or sell the book, chart, engraving, music, etc., for a period of twenty-eight years. A copyright may be renewed for fourteen years longer. It may be sold or transferred providing a record of the transfer be made in the office of the Librarian of Congress within sixty days.

Patents.—Americans have been rightly named the great inventors of the world. Not a little of our marvelous industrial progress has been due to this inventive ability. The government has contributed to the same end, through the enactment of laws protecting those inventors who secure patents. A person desiring a patent must declare upon oath, in his petition addressed to the Commissioner of Patents, that he believes himself to be the first inventor of the article for which he solicits a patent. The sum of fifteen dollars is charged for filing the application, and twenty dollars for issuing the patent. A patent is granted for seventeen years, but may be extended for seven years more. During this period, the patentee has the exclusive right to manufacture, sell, or transfer his invention.[32]


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