Essays in Colonial Finance by Members of the American Economic Association || Front Matter

American Economic Association

Front MatterSource: Publications of the American Economic Association, 3rd Series, Vol. 1, No. 3, Essays inColonial Finance by Members of the American Economic Association (Aug., 1900), pp. 1-15Published by: American Economic AssociationStable URL: http://www.jstor.org/stable/2485786 .

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P U B L I C A r I O N S

OF tzE

A M E RI C A N E C O N O MIC A S S O C I A T I ON

THIRD SERIES. VOL. I, N° 3

ISSUF+D QUARTERLY. P R IC E, $4 .00 PER YEAR

ESSAYS IN COLONIAL FINANCE

BY

MEMBERS OF THE AMERICAN ECONOMIC ASSOCIATION

COLLECTED AND :EDITED BY

A SP:E CIAL COMMIW

AUGUST, 1900

PUBLISEED FOR TH:E AMERICAN ECONOMIC ASSOCIARrION

BY ?z:E MACMILLAN COMPANY N:E W YORK.

LONDON: SWAN SONNENSCHEIN & CO.



COPY ri<8,ht I 900, b V

AMERICAN ECGNOV!IIC A>r:SOCIA*iS I ON

PRESS OF

ANDRUS .k CHURCH, TT}:fACA, N. \-,



C O N T E N T S .

PAGES

I. REPORY OF TH1£ COMMITY:ED:E ON COLONI:ES - I7- 20

II TH:E FR1SNC:E COLONIAL SYST:E M. BY EDWIN R. A. S:E LIGMAN __ _ ____ ____ __ __ ____ 2 39

I. History and present extent of the colonies, p. 2I-23. The beginnings, expansion in the I7th century, retrograde movements in the I8th century, new period of progress since I830, recent vigorous policy, p. 2I; enumeration of the dependencies at present, the "colonies" and the "possessions," P. 22; separate pOSitiOll of Algiers, Tunis and Indo-China, p. 22-23.

2. Development of the Fiscal Policy, p. 23-24. The mercantile system, Igth century, period of autonomy, I825-I84r, period of assimilation, I84I- I854, period of modified autonomy, I834 to the present, p. 23; minor changes of I892, P. 24.

3. The French Budget of the Colonies, p. 24-27. Part of the colonial expenses paid by France: expenses of sovereignty, subventions, steamship and cable subsidies, p. 24-25; Receipts of France from the colonies: contingents, p. 25; contributions, India rent, p. 26; minor receipts, p . 27.

4. The Colonial Budgets, p. 27-28. Process of the colonies in fixing their own budgets, P. 27; intervention of the government, p. 27-28.

5. The Colonial Expenditures, p. 28-29. Obligatory expeditures, p. 28; optional and extraordinary expenditures, p. 29.



[394 6 Amer-ican Economic Association.

6. The Colonial Revenue, p. 29.

A. Taxes I. Direct taxes: land tax, p. 29-30; poll

tax, business licenses, p. 30-3I; native taxes in

Algiers,p.3I-32;II. Indirecttaxes:stampduties,

liquor tas, tobacco tax, minor excises, monopo-

lies, p. 32

B. Tarifl Duties: export duties, import duties, p. 32;

tonnage and harbor dues, ocGroi de wser, p. 33.

C. Income from colonial property, postal and tele-

graph revenues, p. 33.

D. Subventions and subsidies, p. 33-34.

7. Conclusioll, p. 34.

The two policies: autonomy and assimilation; the lleed of

simplification, p. 34.

8. Tables, p. 35-38.

9. Authorities, p. 39.

III. TH:ED G:ECRMAN COLONIAL FISCAL SYS?:EDM. BY ISIDOR:ED

LO:EDB___ 72

I. History of the Relation of the Dependencies to the

Mother Country, p. 40-43.

Acqllisition of the colollies, p. 442; determina-

tion of l:heir relation of dependency, p. 42-43.

2. Governmellt of the Colonies, p. 43-54.

General principles of organization, p. 43-48; ad-

ministrative organization, p. 49-52; general admin-

istration, p. 52-54; financial administration, p. 54.

3. Revenue, p. 54-63.

Determination of the revenue, p. 54-55; discrim-

ination in favor of the mother country, p. 55-56;

Sources of revenue: I. Revenue from colonial

sources, p. 56-6I; A. Direct taxes: business tax,

p. 56-57; income tax, poll tax, p. 57; inheritance



395] ConSenGs7 7

tax, p. 58; house tax, p. 58-59; B. Indirect taxes: customs, p. 59-60; excise, fees, p. 60; income from public property, p. 60-6I; II. Subventions from the mother country, p. 6I-62; statistics of revenue, p. 62-63.

4. Expenditures, p. 63-68. Determination of expenditures, p. 63-64; e:stent to which the colony or mother country sustains expenses of the ottler, p. 64; kinds of expenditures: permanent expenditures, p. 64-65; tempo- rary expenditures, .. 65-66; statistics of expenditures, p. 66-68.

5. Budget, p. 68-69.

6. Debt, p. 69-7I.

7. Authorities, p. 72.

IV. TH1£ Dutcz COLONIAL FISCAL SYST1BM. BY CLIV:ED DAY _ _ _ -_ - 73-IO4

Extent of the Dutch colonies, p. 73; contrast of Asiatic and Americall possessions, p. 73-74.

The Dutch possessions in Asia: Importance of Java, p. 74-75; Dutch government in the Easts its centra- lization, p. 75; increasing influence of the Dutch Chambers, p. 76; History of fiscal policy: a, the period of transition from the system of the East India Company, I800-I830, p. 76-77; period of the culture system, I830-I860, p. 77; modern period, p. 77-78; reforms in modes of raising revenue, p. 78; amount of the Indian revenues, p. 78-79; causes of the deficit in recent years, p. 79; attitude of the Dutch Chambers to the India subsidy, p. 79-80.

The revenues of Dutch India: I. Taxes: a. The land tas on natives, p. 8I; attempts at reform, p. 8r-82; b. tax on land held by title, p. 82; c-d.



8 Smerican Economic 24ssociaSion. [396

business tax on Orientals and Buropeans, p. 82- 83; C. direct consllmption tax on non-natives, p. 83-84; f-g. taxes on native vehicles and on public sales, p. 84; h. poll tax, its relation to the com- mutation of labor dues, p. 84-86; i. stamp duties, inheritance and transfer tases, p. 86; j. import and export duties, abolitiotl of protective features, p. 86-87; k. internal taxes on production, p. 87- 88; l-o. other revenues grouped under taxes, p. 88; Resources from the sale of products: p. coffee, decline of the governmeIlt coffee culture, p. 88-go; q. cinchona, p. go; r. tin, p. 90-9I; S.

coal, p. 9I; t-u. government monopolies of opium and salt, p. 9I-93; other revenues, including those from forests and railroads, p. 93.

The expenditures of Dutch India: in the Nether- lands, p. 94-95; in India, p. 95.

The budget, its preparation and administration, p.

95-97-

Debt of Dutch India, p. 97-98.

Dutch possessions in America: The fiscal systems, p. 98-99; control of the budget, p. 99; revenues and expenditures, p. 99-IOO.

Tables, p. IOI-IO3.

Authorities, p. IO4.

V. ITALY'S EXPERIENCE WITH COLONIES. BY ALBERY G. KELLER _ __ _ _ __ IO5-I I I

Italian colonization recent, p. IO5; acquisition of the colonies, p. IO6-IO7; their economic worthlessness, p. IO7-IO8; their cost to Italy, p. IO8-IO9; artifici- ality of Italian colonization, p. ITO; authorities, p. III.



397] ContenZs. 9

VI. SPANISH COLONIAL POL[CY. BY FRANK W. BLACK MAR _ _ _ __ _ ___ _ _ _ _ _ _ _ _ _ _ _ _ _ I I 2-I43

The general politico-economic policy of Spain in acquiring her colonies, p. II2-II5.

Spain's early colonial methods, p. I I5: The CDouncil of the Indies, for government, p. II7; the India House, for trade, p. II7-II8; the colonial govern- ments, p. I I9; taxation, p. I I9; regulation of colonial industry, p. I20-I2I; officialism, p. I2I; colonial laws made in Spain, p. I2I-I22; failure of restrictive measures, p. I 23-I 24; coloIlial trade partly opened to other nations, p. I25-I26; the fiscal system of the I8th century, p. I27-I28.

Progress in the Igth century: constitutional position of the colonies determined, p. I29; new legal pro- visions for colonial government, p. I30; their administration, p. I3I-I32; the fiscal system of Spain: the budget, p. I32; taxation, p. I33; the budgets of the colonial provinces: Cuban expenditures, p. I34--I35; receipts, p. I35; Porto Rican expenditures, p. I35; receipts, p. I36; I8th century methods retained, p. I37; municipal finance, p. I38; insular revenues: customs, p. I39-I40; church taxes, p. I4I4I; public debt, p. I4I-I42; COI1C1USiOn, P . I 43 .

VII. THE DANISH COLONIAL FISCAI SYSTEM IN THE WEST INDIES. BY C:. W. TOOKE______________________ I44-I67

The Danish W. I. colonies described, p. I44; the Danish W. I. CDompany, p. I45; colonies purchased by the crown in 1745, p. I45; proved of no mate- rial advantage, p. I45-I46.

The fundamental colonial law of I863, p. I46; the legislative power, p. 146-I47; administrative au- thority, p. I47-I48; colonial councils, p. I48-I49.



o Asnerscan Econownic AssociaSion. [398;

Financial organization: separate colonial treasuries, p. I50; the colonial budgets, p. 15I52; audit, P. I52; revenue: direct tases, p. I52-I53, 156; indirect taxes, p. T53-T56; expenditures, p. T56-157; fiscal dependence of the colonies zIpon Denmark, P. I57-I6I; tables, p. I62-I67.

LIIII. FINANCES IN YER BRITISH WES? INDIRS. I3Y CHARLES

E. HULL ______ ___ ___________ I68-I88

Colonies included, p. I68; their present financial embarrassulent alld its cause the decline of sugar, P. I68-I69; the resultant policy of Imperial relief, P. 169-170, and its implication of Imperial control, P. I70-I7I. Thepoliticaldifficultiesthereofexem- plified in the recent history of Jamaica, p. I7I- I72; necessity for soule further ulachinery of fiscal control, I72.

The flscal sstems of the W. I. colonies determined by: their illsular sitllatioll in the tropics, p. 172; their exclusively agricultural character, p. I72- I73,and the itnprovidence of theirblackpopula- tion, p. I73.

Jamaica as an illustration: situation and population, P I74; increase of ,overnmental expenditures since I884, P. I75; inadequacy of revenlles rhen depression set in, p. I75-I76; consequellt investi- gation by Sir David Barbour, and its results, p. I76; administratioll of Jaulaican finances, p. I76; expenditures, p. I77-178; revenues, p. I78-I79; customs, I79-I80; excise, stamp taxes, p. I80; rates levied oll real property, p. ISO-I82; licenses, P. I83.

The Bahamas, p. I83-IS4; the islands south of Jatnaica, p. I84-I86; Imperial relief, p. I87-I88; the Colonial Loans Act, p. I88.



399] ConSe^ts. I I

IX. THE FISCAL SYSTZM OF EC;YPT. BY B. W. KEM MER:ECR _ _ _ _ _ I 89-2 I 7

Relation of welfare of Egypt to its financial aduoin- istration, p. 18WI90; historical sketch; extrava- gance of Ismail Pasha and reslllting iEDgyptian debt, p. 19I9I; consequent European intervention in 1876, P I9I-I92; relation of Bgypt to Turkey, p. I92-I93; the Caisse de 1 dSeSSe and the dual control, p. I94; the deposition of Ismail, the I+aw of Liquidation, and the consolidation of the debt, p. I95-197.

The Arabi revolt, p. I97, and El]gland's single control, p. T98-I99; conditioIls leacling to the reforms in the London Convention of I885, P. I99-200; re- distributioll of surplus, p. 20I-202; methods of meeting extraordinary expenditures, 202-203; powers of the Caisse, p. 203; the internal govern- 21ent, P. 204-205.

iEgypt's progress under the present fiscal system: three periods of Englisll finaIlcial aclmillistration, P. 205-206; the present buclget, p. SI6; Revenue: the land tas, p. 207-208; railways, p. 208-209; customs, p. 209-2IO; E2mpenditures: irrigation, P. 2I2II; public iilstructioll, p. 2I2; results, p. 212-213; tables, p. 21L1-2I 6.

X. FINANCES OF BRITISH POSSESSIONS IN SOUTH AFRICA. 13Y ROI,AND P . FALKNER _ _ _ 2 I 7-262

Introduction: Types of governmellt ill Brltisll South Africa, p. 2I7; expansion of Cape Colony lzey to growth, p. 2I7-2IS; limits of Cape when first acquired, first English immigratiol:l and eastward movenlent, conflict with natives, p. 2I8; successive phases of governulent: protectorate, crown colony, and incorporation, p. 2I8-2I9; parallel in Natal



24oozericvol Ec-ovownic AssociSion. [4oo I2

and Zulllland, p. 2I9; northward movement with like development of government forms, p. 220;

relations with 13oers, p. 220-22I; extension of British rule to limit that of 13oers, p. 22I-222.

Cape Colony: Government, p. 222-224; Governor is High Commissioner for South Africa, p. 222; self- governmellt established, p. 223; Goernor's pre- rogatives, rights of mother country, the ministry, p. 223; the legislature and- the franchise, p. 224; local government and finance, p. 224; dixTisional councils, number alld functions, p. 224; receipts and expenditures colatrasted, character of receipts, purposes of expenditures, p. 225; municipalities, nunlber and size, receipts and expenditures contrasted, character of receipts, purposes of expenditures, p. 226; debt, p. 227; village boards, p. 227; harbor boards, p. 227; Revenue of the colony: general heads, p. 227; customs tariff union, p. 228; lucrative items in import trade and calcul- ated ad valorem rates, p. 229; other taxes, p. 229; The colonial estate: railway, postal and telegraph revenue, p. 230; Public expenditure: for purposes of public debt, p. 23I; railway maintenance and constrtletion, p. 231; development of railways, p. 23I-232; construction beyond limits of colony, p. 232-234 ; earnings of the railway system, p. 234- 235; defence of the colony, p. 235-236; share of Great Britain, share of the colony, p. 236; educa- tion, p. 236-237; postal and telegraph expenditures, p. 237; receipts and expenditures contrasted I866 to I89I, p. 238-240 ; same comparison since I89I and before I866, p. 240-24I; expenditure from proceeds of loans, p. 24I-242; public debt, its history, p. 242-243; present amount, p. 243;

purposes for which contracted, p. 243-244.

Natal: Distance from Cape Colorly, p. 244; settled



40I] ConSenSs. I3

by Boers, p. 244; governed as crown colony, p. 244; self-governing since I893, p. 245; powers of Governor, p. 245; Legislative Council, p. 245; Legislative Assembly, p. 245; franchise, p. 246; ministry, p. 246; scope of government activity, p. 246; character of receipts, p. 246; purposes of expenditure, p. 247; receipts and expenditures contrasted, p. 247; public debt, p. 247.

Rhodesia: Limits of present treatment, p. 247; government of southern Rhodesia, p. 247; administrative council and executive officers, p. 247- 248; control of Imperial government through Resident Comznissioner and High Commissioner, p. 248-249; establishment of British South African Compally and its purpose, p. 249-250; mining rights and control, p. 250; railroad development promoted, p. 250; mode of financing railroads, p. 25 I-S52; telegraph development, p. 25 I; war expenditure, p. 252-253; governmental duties, p. 253; character of revenue, p. 253; its growth, p. 254; purposes of expenditure, p. 254; its growth, p. 255; attitude of Company towards its expenses as a government, p. 255.

The Protectorates: Bechuanaland protectorate asso- ciated with crown colony, p. 255; progress of crown colony, p. 256; revenue of colony and protectorate, its character, p. 256; expenditure of colony and protectorate, p. 257; relation of protectorate to colony, p. 257; present finances of the protectorate, p. 258.

Basutoland, anne:sed to Cape Colony, p. 259; ceded to crown, p. 259; sources of revenue, p. 259; character of expenditure, p. 259.

Note on sources of informatiot, for financial affairs, p. 260.



America>z Ecoosoovic Association. [402 I4

Appendix: Detailed statement of receipts and expenditures of CDape CDolony for the ten years ending June 30, 1895, p. 26I-262.

XI. BNGLISH COLONIAL FISCAL SYSTEMS IN THE FAR EAST. BY JEREMIAH W. JENKS __ ___ 263-303

Illtroduction, p. 263-264.

The Straits Settlements, p. 264-270: desenption, p. 264; history, p. 265; government, p. 265-267; PNinances: conditions aSecting the Escal systenl, p. 267; revenues, p. 267; expenditures, p. 268- 270; local revenue and expenditure, p. 270.

The Federated Malay States, p. 27I-278: history, p. 27I-272; government, p. 272-273; Fiscal system: general, p. 273-274; Revenue! p. 274: export duties, p. 274; sales of land, p. 274; licenses, p. 274-275; Perak as illustrative: export and import duties, p. 275; railways, p. 275-276; expenditures, p. 276-277; tables, p. 277-278.

Ivabuan, p. 27g-2So: government, revenue, expenditure, p. 279; table, p. 280.

British North Borneo, p. 280: description and government, fiscal system, table, p. 280.

Sarawak, p. 28I: description and government, Ssca] system, table, p. 28I.

Hong Kong p. 28I-282: colaparison with the Straits Settlements, p. 28I; table, p. 282.

Fiji, p. 282-287: contrasted with the Straits Settle- ments, p. 283; history, p. 283; government, p. 283; Revenues: native taxes paid in produce, p. 284; import duties, p. 284; local revenues, p. 284- 285; expenditure, p. 285; debts, p. 285; tables, p. 28S287.



4o3] Contents. I5

British New Guillea, p. 287-289: history, p. 287- 288; government, p. 288; fiscal system, p. 288; tables, p. 288-289.

Mauritius, p. 289-290.

Ceylon, p. 290-30I: description, p. 290; government, p. 2go-2g r; Revenue: imp rt duties, p. 29I- 292; demand for their revision, p. 292; export duties, p. 292-293; salt tas, p. 293; port and harbor dues, p. 293; crown lands, p. 293-294; railways, p. 294; Expenditures: public works and roads, p. 294-295; mili-tary expenditure, p. 295- 297; local finances, p. 297-299; local budget, p. 299; debt, p. 299-300; results, p. 30>30I.

General conclusioIls regarding the British colonial fiscal system, p. 30I-302.

Bibliography, p. 303.

}gRRATA.

P. I62y note 2y for " 3 Elansard ̂^ read " 4 Hansard.^^ P. I75, line 6 frozn bottomy for i' 1890-I900Zy " I899-I900.'^



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Essays in Colonial Finance by Members of the American Economic Association || Front Matter

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