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diff --git a/old/63441-0.txt b/old/63441-0.txt deleted file mode 100644 index ab6039f..0000000 --- a/old/63441-0.txt +++ /dev/null @@ -1,4263 +0,0 @@ -The Project Gutenberg EBook of History of Taxation in Rhode Island to the -year 1790, by Henry B. Gardner - -This eBook is for the use of anyone anywhere at no cost and with -almost no restrictions whatsoever. You may copy it, give it away or -re-use it under the terms of the Project Gutenberg License included -with this eBook or online at www.gutenberg.org/license - - -Title: History of Taxation in Rhode Island to the year 1790 - -Author: Henry B. Gardner - -Release Date: October 12, 2020 [EBook #63441] - -Language: English - -Character set encoding: UTF-8 - -*** START OF THIS PROJECT GUTENBERG EBOOK HISTORY OF TAXATION IN RHODE *** - - - - -Produced by Richard Tonsing and The Online Distributed -Proofreading Team at https://www.pgdp.net (This file was -produced from images generously made available by The -Internet Archive) - - - - - - - - - - History of Taxation - in - Rhode Island - to the year 1790. - - - By - Henry B. Gardner. - -[Illustration: A dissertation presented to the Board of University -Studies of the Johns Hopkins University for the degree of Doctor of -Philosophy. 1890.] - ------------------------------------------------------------------------- - - - - - Contents. - - - Introduction Page 1 - Taxation in Rhode Island 1636-1689 4 - The law and administration 16 - Taxation 1689-1710 25 - The law and administration 32 - Miscellaneous revenues 37 - Period of paper money 1710-1751 38 - Financial history 1751-1790 46 - The law of taxation since 1710 63 - Colonial and state valuations 69 - Customs and excise duties 82 - Tonnage duties 89 - Notes 91 - - - - - Introduction. - - -That method of raising revenue for the support of government which we -understand by taxation marks a well advanced stage of economic life and -is of comparatively recent origin among Germanic peoples. It was unknown -while our English ancestors lived upon the continent of Europe and for -many centuries after they had settled in their new home Society, and, as -a consequence, government had not as yet become differentiated. Some of -the most important duties, such as the defence of the kingdom, the care -of the bridges and forts, were performed by personal service on the part -of the people. Other duties incumbent upon the modern state, those which -require the greatest expenditure, had not arisen. The private and public -revenues of king were not as yet distinguished. The revenue of his -private estates afforded him a considerable income and, in addition, he -enjoyed the usufruct of the folkland. The growth of the feudal system -gave rise to various other sources of income, and besides these there -were payments for special privileges such as markets. The king also -enjoyed rights such as that of carriage and purveyance, for example. - -Taxation as we conceive it formed no part of the system. "Only in a -condition of the deepest degradation, under Athelstan the Unready, could -the national assembly be induced to levy a tribute upon the country to -buy off the horde of Danish pirates."[1] Taxation developed rapidly -after the Norman conquest, but as late as the reign of James I out of a -total revenue of about £450,000, £180,000 came from dues on feudal -tenures, and the crown lands, rented at much below their real value, -yielded £32,000.[2] - -Feudal dues remained an important source of revenue until the time of -Charles II. All through the early period "the taxes voted were 'aids' -and 'subsidies'; something to help the king eke out his income, as it -were. Systematic taxation as a right--nay, as a duty owed by the citizen -to the State--was an idea entertained with the utmost reluctance."[3] -Even after national taxation had become established the local bodies -continued to depend on personal service (or payments in kind) to fulfil -their military, police, or judicial functions. It was the apportionment -among individuals of fines incurred by the various local divisions for -the neglect of these duties which first gave rise to the county rate, -the hundred rate, and the tithing rate or town levy. From the Tudor -legislation of the Sixteenth and early Seventeenth centuries local -taxation received a definite form and character. The poor law of 43 -Elizabeth which established the parish poor rate became the basis of the -system. To this rate all others tended to conform.[4] In early New -England the conditions were much the same in regard to taxation as in -early England. The functions of government were few and simple and often -easiest fulfilled by personal service on the part of the citizens. This -was the case with respect to the maintenance of the roads, and with -military service. The army was the folk under arms. The duties of public -officers, whether of town or colony, could not have been burdensome and -in many cases acceptance of office was looked upon as a duty to be -performed without, or with small, recompense, refusal being accompanied -by a fine. A considerable portion of public services such as those of -the executive officers of the courts (and even of the judicial officers) -were naturally recompensed by fees. Pauperism the great burden of the -older country was hardly possible where land was abundant and labor -scarce. - -What has been said or New England in general applies with added force to -Rhode Island, for here the political body concerned itself as a rule -with neither religion nor education.[5] Taxation was regarded for a long -time not as the principal means for meeting ordinary expenditures but as -something irregular and supplementary. - - - - - Taxation in Rhode Island, 1636-1689. - - - _The towns before the Union._ - -Unlike Massachusetts the towns in Rhode Island remained the supreme -authority under the king for some years before any central government -was established by charter.[6] The first delegated government -established in Providence was in 1640.[7] It was of the simplest nature. -Five men were to be elected quarterly, who, subject to the control of -the town meeting, were to have the disposal of lands and of the "townes -stocke." Disputes between citizens were to be settled by arbitrators -appointed either by the parties to the dispute, or by the five -"disposers," payment for their time spent to be made by the "faultive" -party. - -Provision was also made for a clerk who was to receive 4d. for each -cause that came to the town for trial and 12d. for each deed prepared. -All the inhabitants were to join in the pursuit of a fugitive from -justice. - -The "townes stocke" was probably derived from fines and payments for -land by the new comers,[8] as there is no mention of taxation. At the -time of the union of the towns in 1647 the delegates from Providence to -the general court, which was to organize the colonial government, were -instructed to secure to the town the reservation of certain rights in -the management of their own affairs, but neither in these instructions -nor in the charter of very full powers afterwards granted to the town is -there any direct reference to taxation. In Portsmouth and Newport the -delegated power was in the hands of a judge and elders. These towns -probably depended on much the same sources of revenue as did Providence; -fines, fees, and payments for land.[9] The political development however -was more rapid on the island than on the mainland and we early find in -Portsmouth traces of taxation as well as of comparative advancement in -financial affairs.[10] The records of the first year of the Newport -settlement show that their financial transactions were of importance and -that certain officers, such as the secretary and sergeant, received -considerable payments from the town.[11] There is no record of the -amount charged for land, nor any mention of taxes, though it is not -improbable that they existed in some form, as the settlers in their -first compact engage "to bear equal charges answerable to our strength -and estates in common."[12] In 1640 Newport and Portsmouth came together -under a common government, each town retaining however its own -organization, and the control of its own affairs. The general officers -were a governor, a deputy governor, four assistants, two treasurers, two -constables, a secretary, and a sergeant. The magistrates (governor, -deputy governor, and assistants) fulfilled judicial as well as executive -functions. The only reference to the payment of officers is a provision -in 1641 that the secretary should have 3s. per day for his attendance -upon the various courts. In the following year this salary is taken away -and it is ordered that both the secretary and the sergeant be paid by -fees.[13] - -The common expenses were met by drafts on the town treasurers. The -financial transactions of the united towns were considerable in -amount,[14] and there are several special taxes of interest. It was -ordered in 1640 that the treasury of each town be always supplied with -two barrels of gunpowder and with bullets and match. Every man who -killed a deer outside of his own property was required to bring in one -half to the treasury under penalty of forty shillings. Thus the town -derived a revenue from the use of the public domains. In 1642 a bounty -of five pounds was offered on wolves, to pay which it was provided that -a rate should be levied on every man according to his cattle;[15] the -idea of a direct relation between the tax and the service rendered. -Bounties of this kind must have been one of the principal sources of -expense to the early settlers. On wolves they were sometimes as high as -£5, at other times not more than 30s., while the rate on foxes was 6s. -8d. - -The above seems to be substantially all that remains of the financial -records of the early towns. We find in them the conditions already -noted; few needs, abundance of land, for sharing which they could demand -a payment of all new comers, payment by fees or, if a tax was necessary, -perhaps by a tax on a particular class, as in the case of the bounty on -wolves. Fines, too, probably formed a not inconsiderable source of -revenue, for the home of religious freedom seems to have been to some -extent the home of those who desired freedom from the law as well. When -a general tax for the common good was levied the "estate and strength" -of each must have been a matter of common knowledge impossible of -concealment. It should be noted also that neither at this time nor much -later under the charter government was the business of the treasury -managed with that exactness which we find today. Receipts were very -often far behind expenses and bills were frequently allowed to remain -unpaid until the money happened to be in the treasury. - -The four towns first organized under a common government in 1647 by -virtue of what is known as the Patent, procured through the efforts of -Roger Williams in March 1643-4. Under this government the colony -remained, with the exception of an interruption lasting from the spring -of 1651 to August 1654,[16] until it reorganized under the charter of -1663 which remained the fundamental law of the colony and state for one -hundred and eighty years. - -The general officers under the Patent were a president and four -assistants, a general recorder, a treasurer, and a general sergeant. -There was also a committee composed of six representatives from each -town.[17] A general attorney and a solicitor were added in 1650.[18] -Under the charter of 1663 the president was replaced by a governor and -deputy governor, the number of assistants was increased to ten, and, -instead of the committee of six from each town, provision was made for -six deputies from Newport, four each from Providence, Portsmouth, and -Warwick, and two each from all other towns that might come into -existence. The other general officers remained the same as before. Under -both governments the magistrates (president, or governor and deputy -governor, and assistants) performed judicial functions.[19] - -Public service was considered as a duty the fulfilment of which was -enforced by law[20] while payment, except where the method of fees was -available, was either not given at all or was but daily wages for the -time actually employed in the service. Payment for service in the -general assembly or the court of trials did not exceed three shillings a -day, with a much heavier fine for non-attendance.[21] In addition to -this a law of 1679 provided that diet and lodging should be furnished -those in attendance, the expense to be met out of the fines and -forfeitures coming into the general treasury. - -The services of the recorder, sergeant, and general attorney were -compensated by fees, though the first two seem also to have had daily -wages for their time employed, and their payment was among the chief -sources of expense at this early period.[22] The general treasurer -enjoyed a percentage, sometimes as high as ten per cent, on the amount -of his transactions.[23] - -The care of the highways and the poor was given over to the towns.[24] -It is evident that the expenses of such a government could not have been -great. - -So small were the financial operations during the earlier years that the -general treasurer "returned his accompte into the courte for the year -1649, that he (had) received nothing as Treasurer and therefore have -nothing in his hande,"[25] and Gregory Dexter, town clerk of Providence, -could write to Sir Henry Vane "Sir we have not known what an excise -means. We have almost forgotten what tythes are; yea, or taxes, either -to church or commonweale."[26]. In fact for many years fines and -forfeitures seem to have been the chief reliance for defraying ordinary -general expenses and they continued to form a principal element of the -receipts until the end of the century.[27]. Taxation however could not -be entirely avoided. It was necessary to place the colony in a position -capable of defence and in 1650 each town was ordered to have in its -magazine a certain quantity of arms and ammunition, the amount assigned -to each town to be equally laid upon the inhabitants of the council -thereof "according to each man's strength and estate."[28] Taxes were -also levied to pay for powder and shot sent, over from England.[29] -Prisons were necessary and in 1655 the towns were ordered to build two -prisons, two cages, and two pairs of stocks, one of each on the mainland -and one on the island at a total cost of £135.[30] Later court houses -and a state house were required, but on the whole taxation to meet -ordinary expenses remained almost ludicrously small until long after -Rhode Island had become a state. The exercise of the taxing power was -reserved for special occasions. The most important of these was war; -next came the support of an agent in England. Wars which required the -employment of a paid soldiery did not begin until the end of the -Seventeenth century; agents in England to look after colonial interests -were a necessity from the very beginning of the colonies and lasted -until the colonies became states. Particularly was this the case in -Rhode Island, small in population and territory, its jurisdiction -attacked on every side by the claims of more powerful neighbors,[31] -with a charter containing grants of such unusual freedom that it was a -constant target for those opposed to colonial self-government. One of -the acts of the first general assembly under the Patent in 1647 was to -assess upon the towns a tax of £100 to pay Roger Williams for his -exertions in procuring that document more than three years before.[32] -Williams in company with John Clarke again went to England to secure the -repeal of Coddington's commission. The former returned on the -accomplishment of his mission but Clarke remained and cared for the -interests of the colony, and it was in connection with his efforts to -secure the charter of 1663 that taxation on any considerable scale -began. The following table will show the taxes levied from 1662 to the -fall of the Andros government in the spring of 1689. Those taxes marked -with a star were levied under the Andros régime. - - _Date of _Amount._ _Purpose._ _Payment may be - Ass'm'nt._ made in._ - - [33]June 1662 £288 "in silver Agent. "beefe, porke - pay" pease, and wheat, - at such prices as - it then goeth to - the merchants as - moneye pay;" - - [34]Oct. 1662 £106 Agent. "goods" to be - priced by men - chosen for the - purpose. - - Oct. 1663. £100 "in current Agent - bills." - - [35]Oct. 1664. £600 Agent and others wheat, peas, - to whom the pork, horses, - colony is cattle, or any - indebted; sort of - provisions - "according to the - usual rate that - it doth pass at - amongst us". - - [36]June, 1670. £300 "in pay Agent. Seems to pork, peas, - currant of this have been wheat, Indian - Collony" diverted to corn, oats, wool, - general purposes. butter or such - other pay as the - General treasurer - may accept. - - [37]Oct. 1673. A farthing in the "payment of the See general tax - pound. collonys now law p. - knowne debts." - - [38]Nov. 1678. £300 sterling. paying the money, pork, - colony's debts. beef, peas, - Indian corn, - barley, barley - malt, sheeps' - wool or butter at - stated prices. - - [39]July, 1679 £60 sterling. to repay money or pay - disbursements in equivalent. - England on the - colony's account. - - [40]May, 1680. £100 payment of the - colony's debts - and supplying the - treasury. - - [41]Oct. 1684. £160 "in or as to discharge - New England colony's debts. - money." - - x[42]Jan. 1686-7. A penny in the general expenses - pound; poll tax of the Andros - 1s., 8d. government. - - x Aug. 1687. A penny in the General expenses - pound; poll tax of the Andros - 1s. 8d. government. - - x Dec. 1687. £160. Building two money, wool, - court houses, butter, Indian - repairing the corn, rye or pork - prison and paying at stated prices. - the debts of the - province. - - x March, 1687-8. £53-6s. 8d. Bounties on same as last. - wolves. - - x [43]Aug. 1688. A penny in the general expenses - pound; poll tax of the Andros - 1s. 8d. government. - -The requirements of the militia service, which at this time supplied the -whole military power of the colony, should also be taken into -consideration. Militia systems had been established in the towns before -their union under one government. The law of the island towns appointed -eight training days a year for each town with two general musters. A -fine of five shillings was imposed for non-appearance, and all men -remaining on the island for twenty days were liable to the service.[44] -The first assembly under the Patent enacted substantially this same law -for the whole colony[45] and it remained essentially unchanged -throughout the period of which we are treating. The limits of age were -fixed at sixteen and sixty years. The only exemption from service were -on account of "age, monage, sickness, lameness, or publique barringe of -office at that time in the commonwealth."[46] In 1665, the number of -training days was reduced to six and the fine for non-attendance was -gradually lowered to two shillings. Those who were able seem to have -been required to provide themselves with arms and ammunition, but in -case of inability they might be furnished by the town council by means -of rates or from the proceeds of military fines.[47] The military -requirement acted to a certain extent as a poll tax, but the relations -of the colony with the surrounding Indians was for the most part -friendly; the need of strict military discipline does not seem to have -been felt and various references in the laws themselves tend to show -that military regulations were not strictly observed unless under the -influence of some pressing emergency when special laws requiring their -enforcement were passed; so that the military system seems in general to -have been but little of a burden. - -It is evident that on the whole taxation daring this period was light. -The nominal amount of taxes of all kinds levied between 1647 and 1689 -was not much over £3600 or about £84 a year. Nearly £1100 of this amount -was levied between June 1662 and October 1664 to meet the expenses of -procuring the charter. It was levied for the most part in "current pay" -and the sterling value, probably, did not exceed £600. The collection -also was extended over several years. Such taxation appears to us -extremely light and even though we make, as is necessary, a large -allowance for the difference in economic conditions then and now, the -burden does not appear excessive,[48] while, if we look at the remaining -years, taxation is almost insignificant;[49] it amounted on the average -to but a few cents per capita each year. In fact it was altogether too -light to meet expenses. The colony seems always to have been in debt. In -September 1673 the debts due from the treasury exceeded the debts due to -it by £71 9s. 2d.[50] Five years later the colony was indebted for £437 -3s. 10d.[51] In 1684 the Assembly affirm that the existence of the -government is endangered for the want of funds in the treasury.[52] In -several instances money to meet public expenses was raised by -contribution. In other cases the necessary amounts were advanced by -individuals, to be repaid when the money should come into the -treasury.[53] Though, judged by amount, taxation at this period was -unimportant, yet it is here that we find the beginnings of a system -which in theory at least endures at the present time. We turn therefore -to a consideration of _the law and administration of taxation_. - -Neither in the Patent nor in the Charter is there any specific grant of -the power to tax;[54] it seems to have been regarded as implied in the -grant of government, and was always exercised by the highest legislative -authority, under the Patent at first by the body of freemen assembled in -general court, and later by the court of commissioners, under the -charter by the general assembly consisting of the deputies and -magistrates, at first sitting as one body and later as two distinct -houses.[55] The legislature apportioned the tax among the separate towns -and required each town to collect and pay into the colony treasury its -quota by the time specified in the act ordering the tax, the towns -employing their own administrative machinery for the purpose.[56] -Perhaps the system is best summed up in a law passed in 1655. "It is -ordered, that ye raisinge of Generall Taxes shall be ordered by ye -Generall Court of Commissioners, as they shall see cause from time to -time as to ye sumes, and how they shall be proportioned on each Towne; -as alsoe, who in each Towne shall have power to make ye rates, and who -are to give forth warrants for ye gatheringe of them; as alsoe in case -of any refusinge to pay, to order assistance to him or them that are -authorized to give warrants, or to gather ye rates as need shall -require."[57] In the case of the tax levied for the payment of Roger -Williams it was ordered in 1650 "that the councill of ech Towne be -enjoyned forthwith to proportion Mr. Williams that debt and other summes -apoynted thereto, according to every mans strength and state;"[58] and -for a while the town council seems to have acted as assessors. Just when -the duty of assessment began to be assigned to separate officers we do -not know, probably very early.[59] Collectors did not come until well -into the next century, their functions being exercised by the town -constable or sergeant.[60] During these early years custom rather than -law seems to have been the regulating power, and it doubtless left much -to be desired. An attempt to remedy these shortcomings was made in 1673 -when what may fairly be called the first tax law was passed.[61] It -throws much light on existing conditions. The preamble recites "the -great dissatisfaction and irregularity that hath been by makeinge rates -or raising a common stock for public Charges in the Collony in general -or for any perticuler towne, and the great faileableness to accomplish -it, and great delaies in performance," and affirms that public charges -"should be born according to equity in estate strength."[62] The law -then provides that where a rate is levied by the colony or a town every -one shall "make a true valluation of theire estate and strength, every -thinge that is any estate to them be vallued, which they are not rated -for to another place; and when for a pertickular towne rate, what they -are not rated to another towne." Each person is to pay "to the Treasury -to whome it doth belong" a certain amount upon the pound of valuation as -the assembly may order. Payment may be made in "anything that is -rateable, and it shall not be refused at the price as by two indifferent -men vallued."[63] If any do not rate themselves "the Generall Assembly -may appoint men to gess at their estate, and rate them as they should -have done themselves, and according to double the proportion for -forbearance."[64] "If the Assembly judge any have undervallued their -estates, such shall be required to give in to the Treasurer a true forme -of an inventory of all their estate and strength in pertickular, and -give in writeinge what proportion of estate and strength in pertickular -he guesseth tenn of his neighbours, nameinge them tn pertickular, hath -in estate and strength to his estate and strength." If they do not -comply they are to be rated as those who have not rated themselves at -all; "or if it be proved that there is more due from any than they have -rated themselves, they are to pay double as much therefor (and for the -forbearance), as for it they should have rated themselves." These latter -provisions of the law clearly show the fact which would render it -possible to successfully carry our such a system at that time. Each man -could know the property of his neighbor almost as well as his own -property and it was not for his interest to bear any burden which should -properly fall upon another. - -As a matter of fact taxes were seldom levied at so much on the -pound,[65] but a definite amount was ordered, to be apportioned among -the rate payers. This law provides for assessors only in case -individuals neglect to rate themselves, and makes no mention of -collectors. The custom, however as has been said was for the towns to -appoint assessors whenever a tax was to be levied and to entrust its -collection to the constables or sergeants. There were however many -exceptions. - -The central government was comparatively weak. Towns very often paid no -attention to the orders of the assembly and it became necessary to -resort to special means to assess and collect the tax. Town machinery -was overridden. The magistrates were empowered to call town meetings to -assess the rate[66] or the assembly appointed a committee for the -purpose. The general or colony sergeant was required to collect the tax -after the assessment had been made.[67] The troubles in connection with -the collection of rates seem to have culminated in the spring of 1672, -when what is known as the "sedition act" was passed.[68] This act after -reciting the dangers arising from the opposition to the collection of -rates provides that "if any person or persons in any town or place -within this jurisdiction, shall at any time more especially in any town -meeting or other publique assembly of people, appear by word or act, in -opposition to such rates and impositions," made by the assembly or in -opposition to any act of the assembly, made in accordance with the -charter, such person shall be "proceeded against as for high contempt -and sedition," and on conviction shall suffer at the discretion of the -justices, "corporall punishment by whipping, not exceeding thirty -stripes, or imprisonment in the House of Correction, not exceeding -twelve months; or else a fine or mulct, not exceeding twenty pounds." -This act was passed in April. In the following month the annual election -occurred. Not a single deputy was reelected, and the same was true of -the governor and six assistants.[69] Political revolution was never more -complete. The new assembly repealed every act of its predecessor. So -strong was the reaction that in the following November a limitation was -placed upon the assembly's power of taxation, by the provision "that noe -tax nor rate from henceforth shall be made, layd or levied on the -inhabitants of this Collony without the consent of the Deputys present -pertaining to the whole Collony, as there must be a major part of the -Assistants (by the Charter), nor any way bringe the Collony in debt by -any meanes." The assembly does not seem to have recovered its former -powers until 1679.[70] - -With the establishment of the Andros government the assembly -disappeared. The right of taxation throughout his whole jurisdiction -belonged to Andros and his council; for local purposes it seems to have -been delegated to a court of nine justices which succeeded to the powers -of both the Assembly and the Court of Trials.[71] So much an examination -of legislative enactments shows us. We are fortunately enabled to fill -out the picture to some extent from other sources. In Jan. 1678-9 the -freemen of Providence took action in regard to their quota of the colony -tax assessed in the preceding October. A committee of four was chosen -"to draw aside a Little space of time, to consider togather of the -suitablist prices, Which is meet to be sett on (ya Esteemed) Rateable -Estate of ye Inhabitants of this Towne, x x x for to be a helpe & -preparation to ye Lieviers." The rates of valuation agreed upon were as -follows: - - "Meaddow Land: One acar Improved, to be Vallued at 04-00-00 - planting Land: One Acar Improved to be Vallued at 03-00-00 - Vakant Land; & unimproved: £ Acar to be Vallued at 00-03-00 - An ox 04-00-00 - 4 or five yeare old steers 03-10-00 - Cowes & three yeare old Cattle, To be Vallued at 03-00-00 - two yeare old Cattle, To be Vallued at 01-15-00 - Yearleings-Cattle--Each of whom--To be at 01-00-00 - three yeares old Horses, & horse kind--To be Vallued at 02-00-00 - two yeare old horse, & horse kinde To be Vallued at 01-10-00 - hoggs, or swine, Each of them above a yeare old 00-15-00 - sheepe--above a yeare old--To be Vallued at 00-04-00" - -"Ye Rate-makers" however "are not soe strictly tyed x x to ye -Instructions of ye above sayd Committee, but yt they have a Libberty to -Vary therefrom, as in theire discrescesion shall seeme meet Unto them, x -x x they having the sayd Instructions as a Line for some guide of theire -Judgement therein." Five men were then chosen to assess the rate.[72] At -the meeting of the following March, it is ordered that notices be set up -in public places stating that the rate is to be levied and requiring all -inhabitants within fourteen days to bring in to the rate makers an -account of "The quantity of their Land & Meadows Layd out to them, -Improved & unimproved, As alsoe what Cattle of any Sort they have, -otherwise none can justly be offended, if ye Raters only use what -information they can get." When the rate makers have made up their lists -of what each man is to pay they are to post them in public places and -each tax payer is then to bring to the treasurer, at his dwelling, the -sum for which he is rated. The assessors completed their lists in July. -The town clerk was ordered to prepare a copy of the list and deliver it -to the town constables who should collect the rate. If any refused to -pay application was to be made to a Justice of the Peace who should -grant a warrant of distraint against the property of the defective -person. - -Among the manuscripts in the Rhode Island Historical Societies Cabinet -in Providence are preserved several hundred of the lists of rateable -estates returned to the assessors by individuals during the period of -which we are now treating. - -The following is "The Account of ye Rateable Estate of Jon. Whipple of -providence: - - First Sixe Cowes, and one heifer; not 3 yeares old. - Secondly 2 Oxen - 3dly 3 Steeres of 3 yeares old - 4ly one heifer; 2 yeares old - 5ly 3 of one yeares old, one a steere; ye 2 heifers - 6ly 3 horses - 7ly one mare and colt, beside 3 more if not stolen or alive or made - bobtailes - 8ly one house lott within Fence - 9ly 2 shaires in ye Great meadown where I mowe 4 lods of hay - - - 10ly 4 Swine - 11ly one yeare old horse colts" - -John Whipple seems to have been blessed with more than the average -amount of wealth in personal estate, but this list as do all the others -clearly shows the character of the property which existed at the -time.[73] But little if any property was owned beyond the limits of the -town. Everything was tangible and could be concealed neither from the -neighbors nor the assessors. It was not difficult to fix on a standard -of valuation which should apply uniformly and fairly to all property -owners. The method of taxation adopted was clearly the most suitable, -indeed the only one suitable at all, for a community of farmers, where -land was abundant, and where trade had not developed but each family -produced for its own consumption. - - - - - Taxation 1689-1710. - - -With the restoration of the government in 1690, after the fall of -Andros, Rhode Island enters upon a new period of her history, a period -marked within by a stronger central authority and a more settled and -orderly government.[74] - -In 1695, the governor was granted a salary of £10 a year, the deputy -governor £6 and the assistants £4 each. All these officers had -previously been exempted from taxation.[75] Without the period was one -of successive wars against the French and Spaniards, wars which required -the support of a paid soldiery and, for a colony situated as was Rhode -Island with her great extend of sea coast, the maintenance of strong -defences against hostile ships. The charter was also endangered by the -attacks of the Narragansett proprietors, and later of Bellemont and -Dudley, and this required considerable expenditures to meet the expenses -of the agent in England. The taxes and the purposes for which they were -levied during the remainder of the period of which we are now treating -can be seen in the following table. - - _Date of _Amount._ _Purpose._ _Payment may be - Ass'm'nt._ made in_ - - [76]May 1690 £300 "for the support of wool, butter, - their Majesties' Indian corn, rye - interest against and pork. - the French and - Indian enemies." - - July 1695 2d. in the pound. Same as last. - - Oct. 1695 1d. in the pound. Agent, and, if - surplus, to pay the - colony's debts. - - May 1696 2d. in the pound. - July 1696 - - Aug. 1698 £800 "pay the Colony's - debts, and putting - monies in bank, for - sending an agent - for England." - - Oct. 1699 £600 "for sending agent - for England" - - March 1700/1 £400 "current "for paying the - money of this Collony's debts and - Colony" defraying of the - publick Charge." - - March 1701/2 £200 "in money" "for the use and - benefit" of the - colony according to - the direction of - the governor and - council. - - May 1702 £300 "in money or Same as last. Money, indian corn, - good pay oats, barley, rye. - equivalent." - - Feb. 1702/3 £500 £200 for fort £150 money, indian corn, - for jail £150 for barley, wheat, rye, - debts oats, wool. - - Jan. 1703/4 £500 "for the support of "money or pay - the government." equivalent, - according to the - Collony's acts - heretofore made." - - May 1704 £700 in "money or money, wool, Indian - pay equivalent." corn, barley, oats, - rice, wheat. - - Feb. 1704/5 £500 in "current "for defraying the See "Amount." - money of New Collony's debts." - England in pay in - like species as - the last £700 - rate." - - June 1705 £500, same as last Same as last Same as last. - - Aug. 1705 £1000, same as £300 for agent; Same as last. - last remainder not - specified. - - May 1706 £700 £400 for fort £100 Same as last. - for magazine, £200 - for debts. - - July 1706 £300 Same as last. - - Feb. 1706/7 £500 £400 for the - expenses of a - cruise, £100 for - debts. - - May 1707 £1500 - - Feb. 1707/8 £500 - - Aug. 1708 £800 "in money, or £100 for colony Indian corn, - specie answerable house, £100 for barley, rye, oats, - at the usual agent, remainder wool, wheat. - rates." for debts and - general expenses. - - March 1708/9 £500 Same as last. Same as last. - - May 1709 £1000, same as Same as last. - last. - - Aug. 1709 £1000 for debts. - - Feb. 1709/10 £1200 same as last. - -There were two wars against the French during this period; "King -William's War" from 1689-1697, and "Queen Anne's War" from 1702-1713. In -the first Rhode Island took little part. She sent no men to aid the -other colonies but confined herself to strengthening her own defences -and repelling the French privateers which occasionally appeared in her -waters, particularly off Block Island. The same is true of the early -years of the Second War, although in this case the danger was greater -and really considerable amounts were expended in putting the colony in a -condition of defence, especially in strengthening and supplying the fort -at Newport. A regular garrison was maintained at Block Island. The -colony took part in the expedition against Port Royal in 1707, and in -1709 sent to Boston and maintained for five months two hundred men to -assist in the proposed expedition against Canada which did not take -place. The useless expenditure necessitated by this failure fell heavily -on the colony and when, in the following year, one hundred and -fifty-five men were sent to take part in the expedition against Port -Royal bills of credit were issued to meet the expense. - -During the earlier years expenses did not increase much and seem to have -been principally for the completion of the colony house, begun under -Andros, and for the expedition to repel the French from Block -Island.[77] Beginning with 1695 there is a change. The payment of public -officers becomes a considerable charge. The expenses of the Agent -increase. Then comes the war expenditure, at first the maintenance of -the fort and the Block Island garrison and then the expeditions against -Canada.[78] - -The receipts are now almost entirely from taxes, other sources having -become comparatively insignificant with the increasing revenue. The -burden of taxation showed a constant tendency to increase. The average -annual tax from July 1695 to February 1709-10 was about £1000, from -August 1698 to the same date over £1200, from January 1703-4 nearly -£1900, from May 1706 £2300, from February 1707-8 £2500, and during the -last year £3700 was raised. A census of the colony in December 1708 -showed a total population of 7181 of whom 482 were servants, black and -white.[79] This would show a great increase in the per capita taxation -over the earlier period. During the last year the per capita rate was -over half a pound. The taxes collected during this single year amounted -to as much or more than all the taxes collected during the first forty -years of the colonial government. There is no doubt that the burden was -a heavy one and, following the example of others, the colony sought -relief in issues of paper money. With the adoption of this new source of -revenue colonial taxation practically ceased and was revived only under -the pressure of another and greater war thirty-five years later. - - - - - The law and administration. - - -With higher taxes the necessity of a system of taxation just and at the -same time capable of strict enforcement, was more strongly felt. We -consequently find from the very beginning of the period a great increase -of legislation on the subject, so that by January 1703-4 there was -placed on the statute book a body of law which contains the substance of -our law today, and to which little was added, until, within recent -years, the rapidly growing complexity of our industrial life has -necessitated[80] more careful and detailed enactments. - -In the case of the very first tax after the Restoration Warwick -complained of overrating, and the Assembly finding "that the manner of -rating of towns by guess is no suitable nor certain rule, but may prove -very prejudicial; x x determine that for the future, all rates that -shall be made in the Collony, shall be made according to so much on the -pound as the estates of persons are valued at."[81] - -The three succeeding taxes were, in accordance with the resolution of -1690, percentage taxes and in connection with them we find much -interesting legislation. A committee appointed in 1695 to draw up a plan -of assessment reported as follows, "We therefore propose this way be for -the rateing all lands and meadows and merchants, tradesmen and housings -in this Collony; that every town shall yearly choose two or three able -and honest men, to take the view of each of their inhabitants of their -lands and meadows; and so to judge of the yearly profit at their wisdom -and discretion; and so also of merchants and tradesmen; and to make this -part of the rate according to the yearly profit; or as they, when they -shall have had a more narrow inspection into the lands and meadows, -shall see cause to set by the acre." The report was ordered to stand as -an act by the assembly.[82] Persons who did not bring in an account of -their estate were to be rated at the discretion of the assessors. In -this assessment according to profit, particularly of tradesmen and -merchants, we clearly see the influence of the commerce of the colony, -which was just at this time beginning to develop.[83] Here too we see -the first idea of assessors annually elected.[84] The penny in the pound -rate of this year was levied in accordance with the same act, as was -also the two pence rate of 1696. In 1698 percentage taxation was -abandoned, not to be again revived, and a return was made to the former -custom of assessing a specified sum and apportioning it among the towns. -An attempt however was made in the adoption of the most detailed law -with which we have yet met, to avoid injustice in the assessment. In -each town the assistants or two justices were to appoint two men to take -account of rateable estate and of males between sixteen and sixty years -of age, a return to be made to the assistants or justices, who were to -call a town meeting to choose "three well qualified men" to assess each -person's estate, in accordance with the account returned and the act of -1695, so as to raise the required sum. All male persons between sixteen -and sixty years of age were required to pay a poll tax of one -shilling,[85] Indians, negroes and impotent persons excepted, unless -they were freemen or had set up a trade or calling in the colony.[86] -Any person who should conceal any part of his estate from those -appointed to take account was to forfeit one fourth of the amount -concealed. Finally an account of the rateable estates was to be brought -into the assembly, in order that if any town had been overproportioned -the error might be rectified.[87] Though this act was not a general law -it seems in its administrative features at least with some slight -modifications[88] to have been the basis of the tax system until January -1703-4 when was passed the act which as we have said, is the foundation -of the present law, so far as its administrative features are concerned. -Its provisions were as follows: Each town on its annual election day was -to make choice of "three able, knowing men x x x for Assessors, or -Rate-makers, to stand for the year ensuing, who shall be engaged as all -other town officers; they, or the major part of them, in each town so -chosen, to make and proportion all town rates, and likewise each town's -part of all Collony rates". Collection was to be made by the town -constables who in case of neglect were to be responsible for the sums -entrusted to them for collection.[89] The act was amended from time to -time as occasion required. In May 1704 the provision was introduced -requiring the rate makers before assessing a tax to give ten days notice -to each person to bring in an account of his rateable estate, anyone -failing to do so to have no redress for overrating. - -The rate makers were also empowered to administer an oath to all -offering an account of their estates.[90] - -The system of percentage taxation having been abandoned by the assembly -that body endeavored to obtain a satisfactory basis for the -apportionment of taxes among the towns by ordering from time to time -that each town should send into the assembly an exact estimate of its -rateable estate. I have been able to find no trace of these early -valuations.[91] - -Looking at the period after 1695, there is a plainly marked progress -both in legislation and administration. Before 1695, no well defined -system of taxation had been established by general law, but it was -customary for each act assessing a tax, or the amendments to it, to -contain the rules for assessment and collection. A practically uniform -system doubtless prevailed by custom, but it was not embodied in the -law. After 1695, we meet with general laws upon the subject of taxation -which gradually result in a recognized legal system. When a tax is -ordered reference for the method of assessment and collection is -generally made either to some former tax or to a general law, the latter -being always the case after 1703-4. - -The same progress is evident in the administration of the law. During -the first few years great difficulties were often experienced, as in the -earlier period, and it was frequently found necessary to override town -machinery and place the appointment of the assessors and collectors of -the tax in the hands of the officers of the central government.[92] As -that government became more firmly established, however, the towns -yielded more willing obedience and during the later years of which we -are speaking the heavy taxes were collected with great promptness by -means of the ordinary administrative machinery. The cost of assessment -and collection at the time was great amounting to seven or eight per -cent. of the tax collected. In addition to this there was frequently a -loss resulting from the payment of taxes in kind, either because the -articles had to be disposed of at price lower than that at which they -had been received or because of injury suffered while in the -treasury.[93] - - - - - Miscellaneous Revenues. - - -There still remain to be noticed one or two matters which have not -fallen within the foregoing survey. - -The first has to do with legislation in regard to traders who cane into -Rhode Island from other colonies, sold their goods and then returned -remaining often but a short time. It was claimed that these traders -carried off much ready money and produce to the detriment of the colony, -at the same time escaping the burdens which fell upon the home trader. A -law of 1698 levied a tax of five shillings on every ten pounds value of -goods sold at retail by any trader who was not admitted an inhabitant of -the colony. The tax on goods at wholesale was twenty shillings on one -hundred pounds. This provision seems to have been aimed at foreign -goods, as grain, provisions, and the produce of neighboring plantations -were excepted from its operation.[94] In 1700 the tax on retailers was -raised to five per cent.[95] and in the following year all merchants -remaining in the colony for a month were made liable to all rates and -duties levied upon inhabitants.[96] - -The second has to do with other sources of revenue, in addition to those -already mentioned, enjoyed by the colony, more important for the -principle which they exemplify than for the revenue which they yielded. -In 1707 an act was passed provided for the survey of vacant lands in the -Narragansett country. These lands were sold to settlers and the proceeds -devoted to the Canada expedition.[97] - -From the nature of the colony ferries had always been a matter of great -importance. The assembly had occasionally interfered to regulate their -management in the interest of the public, and in 1699 adopted the policy -of leasing the ferries for a term of years on condition of an annual -payment to be made into the general treasury. The receipts were small -but the principle involved was an important one.[98] - - - - - Period of Paper Money, 1710-1751. - - -The history of paper money in Rhode Island has already been treated with -considerable fullness.[99] It does not strictly fall within the scope of -this monograph and will be treated only so far as to give a clear idea -of the financial policy of the colony, an idea necessary to an -understanding of the part played by taxation. - -According to the report on the state of the treasury in 1709; the year -of the attempted expedition against Canada, notwithstanding the heavy -taxation, the colony found itself in debt to the amount of -£3830-15s.-4d. To cover this deficit and meet the expenses of succeeding -expeditions £13000 in bills of credit were issued during the years 1710 -and 1711. These bills passed equal to silver at eight shillings per -ounce.[100] By this means the colony succeeded in transferring the -balance to the right side of the account. - -During the years of peace which followed the peace of Utrecht annual -expenses greatly diminished. Ordinary expenditure was considerably under -one thousand pounds, extraordinary expenditure sometimes added as much -again or even more to the account.[101] With the growth of population, -political and economic development,[102] and the depreciation of the -currency, these sums gradually increased so that in 1731 a report made -to the Board of Trade estimates the ordinary expenditure at two thousand -pounds and the extraordinary at two thousand five hundred pounds. By -1739, when the Spanish war began the total of these two sums had -increased to about six thousand pounds. - -Notwithstanding the diminution of expenditure the colonists at the close -of the war in 1713 were loth to take up again the burden or taxation and -for the next forty years the government supported itself almost entirely -by means of bills of credit. The usual method of procedure was this. -Bills of credit were issued and loaned at interest, for a term of years, -to landholders on mortgage security to double the amount of the bills. -These loans were termed "Banks." The following table shows the Banks -issued before the Revolution, the number of years for which they were -loaned, the rate of interest received and the value of the bills at the -time of issue. - - _No. _Date._ _Amount._ _Years _Rate of _Value of silver in - of loaned._ Interest._ bills._ - Bank._ - - I 1715 £40,000 13 5 12s. per ounce. - - II 1721 40,000 13 5 16s. per ounce. - - III 1728 40,000 13 5 18s. per ounce. - - IV 1731 60,000 10 5 22s. per ounce. - - V 1733 100,000 10 5 25s. per ounce. - - VI 1738 100,000 10 5 27s. per ounce. - - VII 1740[103] 20,000 10 4 6s. 9d. per ounce. - - VIII 1743[104] 40,000 10 4 6s. 9d. per ounce. - - IX 1750 25,000 10 5 6s. 9d. per ounce. - -At the expiration of the loans interest ceased and repayment was made in -ten equal annual instalments.[105] The amount legally outstanding in -January 1740-1 was £340,000, (sterling value £88074-16s. 10-3/4d.)[106] -the actual amount was doubtless greater, as we know that repayment was -not always promptly made.[107] In addition to the Banks the General -Assembly had from time to time made direct issues of bills of credit. -Before 1739, however, these issues were principally to replace worn and -torn bills and did not increase materially the circulation. According to -a report made in October 1739 the amount issued up to that time -(including everything but the banks) was £117,001-15s. This sum had been -offset by bills burnt to the amount of £105,704-15s. 3d., leaving an -increase of circulation due to these issues of £11296-19s. 9d. Under the -stress of war which now began and continued for several years these -issues were largely increased. According to a report prepared in -February 1749/50, for transmission to the English government, there was -issued from September 1740 to February 1747 £206,000. The committee sums -up its report in regard to these bills as follows: "At divers times, -from the year 1710, to the year 1747, the colony has emitted bills of -credit to the amount of £312300, old tenor; and there hath been called -in and burnt at several times from the year 1728 to 1748, £176,964, 6s. -10d.; and by the last settlement of the general treasurer's account, it -appears that there was then in the public treasury, £24,891 10s. 10d. -from all which it appears that there is now outstanding of the bills -issued to supply the treasury, £110,444 2s. 3d.; the whole of which -outstanding sum was issued in the years 1746 and 1747,and is equal to -£10,040 7s. 5d. sterling."[108]. The amount legally outstanding in bank -money was £390,000 old tenor (£210,000 nominal) sterling value £35,444, -9s. 2d. The increased issues had depreciated the paper money so rapidly -that its relation to sterling was now as 11 to 1. As in 1739, the actual -amount outstanding the legal amount. By the aid of remittances from -England for the reimbursement of war expenditures Massachusetts -succeeding in sinking her paper bills. Rhode Island with much larger -proportional issues failed to follow the same course. - -Douglas in 1748 estimated the total amount of bills of all kinds -outstanding at £550,000 old tenor and even this seems to have been an -under rather than over estimate. - -In 1751 came the ninth and last bank, of a nominal value of £25,000 -equal to £237000 old tenor. The issue of this bank was the last victory -of the paper money party. For many years a strong opposition had been -developing. As early as 1731 a protest against the issue of the fourth -bank, signed by prominent citizens, had been sent to the king. Protests -were also entered against the seventh and eighth banks, and in 1750 -another petition against paper money issues signed by seventy two -persons, representing the merchants of Newport, the commercial centre of -the colony, was presented to the king. In 1751 parliament passed an act -which, supported by the growing sentiment in favor of better financial -methods, may be said to mark the downfall of the paper money policy. The -principle provisions of the act were that, after September 29, 1751, -bills of credit could be issued only with the consent of the -home-government, and that provision must be made for calling them in -within two years in the case of issues to meet current expenses, and in -five years in the case of emergencies such as war. The time of the bills -already out was not to be extended, and no bills issued or to be issued -were to be made a legal tender. It seems best to anticipate for a moment -and trace to its end the history of the issues already made. First, as -to the bills issued to supply the treasury. Of those which had been -called in and burnt previous to 1749, £88725 had been sunk by means of -grants made by parliament to reimburse the colonies for the expenses -incurred in King George's War. In 1751 £24280 more wore sunk in like -manner. Between this date and 1785 £17368 were sunk from the proceeds of -taxes leaving outstanding £93688. This sum was called in by a tax for -the exact amount levied in 1769. - -Provision for calling in the bank money by repayment of the loans had -been made as we have seen in the acts of issue. The whole amount should -have been repaid by 1767, but instead of this a report made to the -general assembly in May 1770 shows that there was still outstanding -£92615 old tenor value. - -The bills continued to depreciate rapidly. In 1763 the following table -was adopted as a standard for the determination of old tenor debts. - - £. s. d. - In the year 1751 a Spanish milled dollar was worth 2 16 0 - In the year 1752 a Spanish milled dollar was worth 3 00 0 - In the year 1753 a Spanish milled dollar was worth 3 10 0 - In the year 1754 a Spanish milled dollar was worth 3 15 0 - In the year 1755 a Spanish milled dollar was worth 4 05 0 - In the year 1756 a Spanish milled dollar was worth 5 05 0 - In the year 1757 a Spanish milled dollar was worth 5 15 0 - In the year 1758 a Spanish milled dollar was worth 6 00 0 - In the year 1759 a Spanish milled dollar was worth 6 00 0 - In the year 1760 a Spanish milled dollar was worth 6 00 0 - In the year 1761 a Spanish milled dollar was worth 6 10 0 - In the year 1762 a Spanish milled dollar was worth 7 00 0 - In the year 1763 a Spanish milled dollar was worth 7 00 0 - -At the same time it was "enacted and declared, that lawful money of this -colony is, and shall hereafter be silver and gold coin; and that nothing -else shall be taken and understood to be lawful money of this Colony." -Old tenor suffered a still further depreciation, until in the tax act of -February 1769 it was ordered that it be received at the rate of $1 for -£8. By act of September 1770, its circulation was forbidden after -January 1, 1771. The rapid depreciation since the issues at the time of -King George's War together with the return of Massachusetts to a specie -currency at the end of the war seems to have been disastrous for Rhode -Island commerce which was mostly with the West Indies. The disturbance -was aggravated by the approaching war, and so numerous did mercantile -failures become that a general insolvency act was passed in 1756. - - - - - Financial History 1751-1790. - - -_Financial History 1751-1775._ - -During the French and Indian war paper money was issued in large -quantities but provision was made for its redemption in accordance with -the Act of Parliament in 1751, and an earnest attempt was made to meet -the obligations thus incurred. - -The period from 1751 to 1775 was really a period of war financiering, -for the debt incurred for war purpose was not extinguished until the -beginning of the Revolution, and we shall treat it as a whole. - -The sources of revenue were loans, bills of credit, treasury notes, -grants made by the English government, and taxes. - - -_Loans._ - -These were usually advanced by private individuals. Unfortunately the -accounts entered in the colony book by the auditing committees were not -kept in such a manner as to enable us to determine with satisfactory -certainty either the amounts borrowed or the times of repayment. The -difficulty is the greater with regard to the latter point. So far as the -books show the sums borrowed between 1751 and 1775, reduced to sterling, -amounted to about £28,441, of which all but about £4,000 was borrowed -during the six years 1755-1761. - - -_Bills of Credit._ - -The history of the bills issued up to the year 1751 we have already -considered. It remains to describe the issues of the present war. - -The first of these issues was in 1755 to meet the expenses of the Crown -Point expedition. The bills were of the old tenor denomination, -amounting to £240,000 equal to £13,500 sterling. They were to circulate -two years without interest and then be called in and sunk. The -subsequent issues were all in what were known as lawful money bills. -They were issued at various times from 1756 to 1767, the total amount -being £97,569 equal to £73,360 sterling. All but £6660 were issued on or -before August 1762, £14,000 issued in 1756 were to run for two years and -without interest. The other emissions were for five years with interest -at 5%. The bills were declared equal to silver at 6s. 9d. per ounce. - - -_Treasury Notes._ - -These were interest bearing notes issued to meet the bills of credit, -bonds given for money borrowed or other treasury notes as they fell due, -when receipts from other sources did not suffice for redemption. The -practical effect was to work an extension of the debt. As shown by the -treasury reports these notes seem to have been issued for the most part -between the years 1765 and 1775 and amounted to £46,549 lawful money -equal £34,999 sterling. The greater part seem to have been redeemed at -the outbreak of the Revolution. - - -_Receipts from England._ - -These were grants made by the English government to reimburse the colony -for expenses incurred in the war. These grants made throughout the -course of the war amounted to about £50,000 sterling and there was -received from the English commanders in this country about £4000 or -£5000 more, making in round numbers £55,000. - - -_Taxes._ - -We now come to the source of revenue which concerns us most nearly. A -slight attempt to resume taxation had been made at the time of King -George's war. A tax of £10,000 old tenor (£1677 sterling) had been -ordered in 1744 and another of £5,000 new tenor (£2000 sterling) in -1747/8, but the paper money party was still in the ascendant and it was -not until after the overthrow of that party that the policy of taxation -was seriously resumed in 1754. - -The following table will show the taxes levied from that date to the -beginning of the Revolution, together with their sterling values at the -time the tax was ordered. - - (o. t. = old tenor. l. m. = - lawful money. The second - column contains the - sterling values.) - - 1754 £35,000. (o. t.) £2102 - 1755 70,000. (o. t.) 3710 - 1756 53,000. (o. t.) 2274 - 4,000. (l. m.) 3008 - 1757 100,000. (o. t.) 3917 - 150,000. (o. t.) 5875 - 4,000. (l. m.) 3008 - 1758 6,000. (l. m.) 4512 - 110,000. (o. t.) 4129 - 1759 11,000. (l. m.) 8271 - 1760 15,547. (l. m.) 11689 - 1761 16,000. (l. m.) 12030 - 1762 8,000. (l. m.) 6015 - 1763 12,000. (l. m.) 9023 - 1764 12,000. (l. m.) 9023 - 1765 12,469. (l. m.) 9375 - 1766 6,000. (l. m.) 4511 - 75,000. (o. t.) 2252 - 1769 6,000. (l. m.) 4511 - 93,688. (o. t.) 2638 - 1770 12,000. (l. m.) 9023 - 1771 £12,000. (l. m.) £9023 - 1772 12,000. (l. m.) 9023 - 1773 4,000. (l. m.) 3008 - 1774 4,000. (l. m.) 3008 - -This would give an average annual taxation for the twenty-one years of -£6,950 sterling or $33,777. in our money, equal to about 70 cents per -capita. - -Taxation, however, varied greatly at different periods. For the eleven -years 1756-1766 the average annual tax was $43,707., about $1.00 per -capita; for the five years 1757-1761 it was $51,935., equal to $1.18 per -capita. Taxation reached its height in 1760 and 1761 amounting to -$57,637. a year and $1.28 per capita. By 1773 it had fallen off to -$14,619. a year, or a trifle less than 25 cents per capita. An estimate -of the rateable property in 1762 gave a valuation of £26,105,423 old -tenor, equal to about $4,224,178. Using this as a basis the rate of -taxation in 1760 and 1761 would have been about 1.36 per cent. on the -value of rateable property. An estimate of 1769 gave a property -valuation of $7,706,449. (£2111356 lawful money). The rate of taxation -in 1773 and 1774 was only .19 per cent. on this valuation. The average -rate for the whole period seems to have been about one half of one per -cent. By far the greater part of this taxation was for war purposes. The -regular expenses of colonial government do not seem to have exceeded -$7300. (£2000 lawful money) per annum, which towards the end of the -period would amount to not more than 12 cents per capita, or one tenth -of one per cent on valuation. - -The above is a general outline of the financial operations of the -period. The indebtedness of the colony at any particular date is -difficult to determine. A committee in 1762 estimated that there were -outstanding bills to the amount of about £53231 sterling. According to a -report of a like committee in 1762 the amount was about £43000. In -addition, however, the colony was considerably in debt for money hired. -Whatever debt there was, however, seems to have been, for the most part, -extinguished in the early years of the Revolution. - - - Financial History of the Revolution. - -With the opening of the Revolution a new debt began to roll up. £60,000 -in bills of credit (lawful money) were emitted in 1775 and £80,000 in -the following year. A meeting of commissioners from the New England -states, in Providence, December 1776, recommended that Rhode Island -issue no more bills of credit, except of fractional denominations, but -depend upon loans and taxes. The State complied with the suggestion and -the only other issue of bills, before 1780, was in May 1777, when £4,500 -in fractional currency was emitted. These bills of credit, as well as -the continental bills, were declared a legal tender. They seem to have -kept their value fairly well until the beginning of the year 1777, when -a rapid depreciation set in. In accordance with the recommendation of -Congress they were called in by Act of May 1778, and their circulation -forbidden after July first of that year. After this date continental -money, probably, formed the main circulating medium, until depreciation -had gone so far that in 1780 the tender laws were repealed and a return -made to a gold and silver basis. Up to June, 1779, the colony seems to -have borrowed £162,756. In addition there were, all through the war, -issues of certificates in payment of various obligations. It is -impossible even to approximate to their amount. They were in many cases -made receivable for taxes and were redeemed in this way. Taxation was -resumed in March 1777, and vigorously applied, but so heavy were the -burdens which fell upon the State in its weakened condition that in the -summer of 1780 the treasury was empty. - -This led to the issue of £20,000 more in bills of credit. This was the -last issue of paper money by the State during the War. A considerable -portion of the debt had been redeemed by taxation. That part of the debt -incurred during the paper money period, which still remained -outstanding, was called in by several Acts of 1782 and scaled down to -the basis of the special value at the time the obligation was incurred, -for which amount the treasurer issued his notes, payable in lawful money -(silver), in from three to six years, bearing interest at six per cent. -The want of accurate accounts leaves us in doubt as to just what was the -effect of this consolidation and reduction. A committee reporting in -October 1783 places the state debt at £123,892-15-11, in addition to -£19,922-2-0 of the state's proportion of the new continental emission -(March 1780) outstanding. - -The greater part of this latter sum, however, had never left the -treasury. A report of a committee in March 1787 placed the debt at -£153,047-15-7. In the mean time steps had already been taken for its -extinguishment. - -In the years succeeding the war the colony was in a wretched economic -condition. It was exhausted by the heavy financial and other burdens, -the disturbance to industry, and the loss that had resulted from a long -continued and destructive occupation of the commercial centres or the -state by the British, as well as by the presence of the American army -which had to be clothed and fed. Trade was interrupted, a large portion -of the able bodied men had entered the army, and even those who remained -at home were liable to be called upon at any moment for temporary -service, or to have their property taken at an appraised valuation. -Services rendered to the state were paid for only by promises of -constantly decreasing value. As a result of all these causes economic -society was disorganized. In the midst of such conditions the state was -called upon to face a heavy debt. The treasury was completely exhausted -and the people seemed unwilling to submit to further taxation. The -legislature again turned to paper money for relief, and in May 1786 -ordered the issue of the tenth bank. The amount was £100,000 and it was -to be loaned, as were the others, on double mortgage security. The rate -of interest was four per cent., and repayment to be completed within -fourteen years. Depreciation was immediate and rapid, but the paper -money party was firmly seated in power and the legislature passed acts -of the most extreme character to enforce the circulation of the bills. -The ordinary legal procedure, including trial by jury, was suspended in -the case of offenders against the paper money laws. These "forcing -acts", as they were called, came to naught, however, as the supreme -court refused to exercise jurisdiction. Balked in their effort to force -the circulation of the bills, the legislature turned to the easier task -of paying off the state debt in the depreciated currency. By a series of -acts, ranging from December 1786 to March 1789, the holders of the state -debt were ordered to bring in their claims and receive payment in the -paper bills, under penalty of forfeiture of the whole amount. As a -result of this threat about one half of the debt seems to have been -presented and paid, the smaller holders as a rule yielding to necessity, -the larger holders standing out in the hope of a more profitable -adjustment. The paper money party was now nearing the end of its power. -An act of October 1789 made the bills of 1786 receivable at fifteen to -one for coin, and authorized those to whom the money had been loaned by -the state to make repayment upon the same basis. - -In May 1790 the state entered the Union, and the possibility of such -schemes in the future ceased. Those who had been able to resist the -attempt of the state to pay their claims in a depreciated currency now -reaped the benefit of their foresight. By act of August 4, 1790 Congress -provided for the assumption of $21,500,000. of state debts, of which -$200,000. was allowed to Rhode Island. Seeing the injustice which would -accrue to those who had been compelled to accept their payment in paper -money, the assembly in June 1791 passed an act repealing the various -acts which had declared null and void the securities which had not been -brought in in accordance with the acts of 1786-1789. Where payments had -been made on securities in paper money the treasurer was authorized to -reduce the amount so paid to specie value and deduct it from the face -value of the security, the remainder to be presented with other -securities for subscription to the United States loan. The United States -commissioner, however, refused to receive these certificates, as the law -under which the assumption took place provided that only those notes and -certificates which had been issued prior to January 1, 1790 would be -received. Thus the whole of this assumption enured to the benefit of -those who had not brought in their securities for payment, as ordered by -the state. On the day following the assumption of the state debts, just -referred to, Congress provided for a settlement of accounts between the -United States and the individual states. The latter were to be debited -with all advances made by the general government and credited with all -disbursements made for "the general or particular defence during the -war, and on the evidence thereof according to the principles of general -equity (although such claims may not be sanctioned by the resolves of -Congress, or supported by regular vouchers)." The settlement of these -accounts showed Rhode Island to be a creditor of the United States to -the amount of $299,611. The final settlement between the state and its -creditors is shown in the report of the general treasurer in Feb. 1797. -The whole amount of the debt recognized by the state was $503,594.76. -$419,662.30 of this was paid by the transfer of United States stock in -the possession of the state and $83,932.46 by the issue of 4% state -certificates. This last formed what was known as the registered state -debt. It was added to, from time to time, by the recognition of new -claims for Revolutionary service and was diminished by occasional -purchases by the state at a rate below the par value, but the state was -always loth to recognize its full responsibility for the debt and ended -by practical repudiation. - -The above is an outline of the financial history of the state during the -Revolution. We now turn back for a moment to obtain a more detailed idea -of taxation. Perhaps this can best be done, as in the case of the French -and Indian war, by means of a table. (The date given is that of the -passage of the act assessing the tax. The first column contains the -nominal amount of the tax as stated in said act. The second column -contains the nominal amount of the tax actually assessed, certain -deductions being necessary on account of the occupation of portions of -the state by the enemy and for other reasons. The third column contains -the same reduced to specie value, and the fourth column contains the -same expressed in our present dollars. The taxes marked with a star are -for continental purposes)[109]. - - Date. Nominal Nominal Specie Value in - value in value value dollars. - pounds. assessed. assessed. - - March, 16,000 12,658 11,613 42,387. - 1777. - - Aug. 1777. 32,000 25,316 16,877 61,601. - - Dec. 1777. 48,000 37,115 11,973 43,701. - - ------- -------- - - 147,689. - - Feb. 1778. 32,000 24,365 6,962 25,411. - - June 1778. 32,000 24,289 6,072 22,163. - - Oct. 1778. 32,000 After 6,000 21,900. - - ------- -------- - - 69,474. - - Feb. 1779. 60,000 June, 6,912 25,229. - - x Feb. 90,000 1778, 10,369 37,847. - 1779. - - June 1779. 60,000 the 4,471 16,319. - - x June 225,000 first 16,766 61,196. - 1779. - - x Dec. 120,000 and 4,628 16,892 - 1779. - - ------- -------- - - 157,483. - - x Feb. 180,000 second 5,418 19,776. - 1780. - - x May 1780. 180,000 columns 3,913 14,282 - - May 1780. 180,000 are the 3,913 14,282. - - July 1780. 10,000 same. 10,000 36,500. - - July 1780. 400,000 5,797 21,159 - - Nov. 1780. 1,000,000 13,514 49,326. - - Nov. 1780. 16,000 16,000 58,400. - - ------- -------- - - 213,725. - - May, 1781. 20,000 20,000 73,000 - - May, 1781. 6,000 6,000 21,900 - - ------- -------- - - 94,900 - - x Jan. 6,000 6,000 21,900 - 1782. - - Jan. 1782. 12,000 12,000 43,800 - - x Feb. 6,000 6,000 21,900 - 1782. - - x June 12,000 12,000 43,800 - 1782. - - ------- -------- - - 131,400. - - June 1783. 20,000 20,000 73,000 - - ------- -------- - - 73,000. - - June 1784. 20,000 20,000 73,000 - - ------- -------- - - 73,000 - - Aug. 1785. 20,000 20,000 73,000 - - ------- -------- - - 73,000. - - ------- -------- - - June 1786. 20,000 13,333 48,665. - - ------- -------- - - 48,665 - - March 1787. 20,000 3,534 12,899 - - Sept. 1787. 30,000 5,000 18,250. - - ------- -------- - - 31,149. - - June 1788. 30,000 4,000 14,600 - - ------- -------- - - 14,600 - - March 1789. 20,000 1,667 6,085 - - ------- -------- - - 6,085. - -In addition to these money taxes there were various other burdens which -took the form of more or less arbitrary contributions. Enactments were -early passed regulating the prices of all articles, and, in case they -could not be otherwise procured, authorizing their seizure at these -stated prices to meet various expenditures. It became customary, when -troops were to be raised, to require each town to raise a certain -number, often a cause of considerable expense, and, as the war went on -and paper money and loans failed as sources of state revenue, it was -common to hold each town responsible for a certain quantity of clothing -or provisions. Payment of some kind was generally provided for, but, -owing to the wretched financial conditions of the time, these -requirements must have operated to a certain extent as a tax. - -The long continued presence of the enemy necessitated in addition to the -maintenance of an army as large or larger than the states proportion of -the continental levies, an almost constant militia service which, though -nominally paid for, must have been a severe burden and interfered -seriously with industry. Again, in any attempt to estimate the burden of -taxation during the Revolution, we must take into consideration not only -the impositions above mentioned, which partake more or less of the -character of taxation itself, but also the general condition of the -colony. The British held possession of the island towns from December, -1776, to October, 1779. These towns were in great part deserted by the -sympathizers with the American cause, who, having lost almost all their -property, became a burden upon the rest of the state. All the towns -situated upon the sea coast or upon the shore of the bay were subject to -the incursions of the enemy and were kept in a constant state of alarm, -while on one occasion at least arrangements were made for the evacuation -of Providence. Commerce was practically destroyed and economic life -apparently to a great extent disorganized, giving rise to wide spread -suffering from poverty. - -If we assume the population of the taxable portion of the state for the -years 1777-8-9, to be 46,000, the per capita rate of taxation for the -period was about $2.71 per annum, and the rate for the years 1780-1-2, -on the basis of the population in 1782, was $2.80. The highest rate -during the period was in 1780, when it reached $4.08. With the close of -the war taxation diminished. In 1783-4-5, it was about $1.35 per capita, -and after the issue of paper money in 1786, it gradually sank until in -1789, it amounted to only about 9 cents. - -Estimating the rateable property in this state, exclusive of the towns -in possession of the British, at $10,165,048, the rate of taxation for -the three years 1777-1779, would have been 1.22 per cent per annum. - -On a ratable basis if $10,903,312, the rate in the years 1780-82, was -1.34 per cent, the highest rate during the period was 1.96 per cent in -1780. On the basis of the valuation computed in 1783, the rate for the -years 1783-1785, was only .6 per cent and had fallen to .05 per cent in -1789. - -When we remember that this taxation was for both state and continental -purposes, it does not seem excessive, judged by the figures of today. -Taking into consideration however the general and special economic -conditions of the period, it is safe to say that it was a heavy -burden.[110] Any comparison with recent times must necessarily be -unsatisfactory, for finance was an art but little developed in the -United States one hundred years ago, and the burdens of the Revolution -were felt much more in the shape of a constantly depreciating currency, -forced seizures of property, service without recompense, unpaid debts, -and general economic disturbance, than in excessive taxation. - - - - - The law of taxation since 1710. - - -The history of the law of taxation shows us no change of principle but -only a further development of detail where experience had shown[111] -existing provisions inadequate. Additional measures against foreign -traders were passed. In 1738 each town was directed to choose "three -discreet and prudent Persons" to assess such foreign traders according -to their trade. In case of non-payment the delinquent might be -distrained upon or in case there was not sufficient visible property he -might be committed to jail.[112] - -Considerable progress was made in developing the law of assessment. In -1744 when taxation was resumed, a law was passed which declared in -detail the various kinds of rateable property and the values at which -they were to be assessed. It is of so much value, both as affording a -comparison with the like enactments of the earlier period and as giving -an example of the acts in accordance with which colony valuations were -taken, that it seems best to print it in full.[113] - -"An Act ascertaining what Estate is Rateable, and for proportioning the -same in Value. - -Be it enacted by the General Assembly of this Colony, and by the -Authority thereof, it is Enacted, That the following Estates shall be -deemed Rateable in all Publick Colony Rates and Taxes, therein made and -levied, and shall be included and considered in the Proportioning the -same, and that in the following Manner, and according to the Specifick -Value they are hereafter fixed at, viz: - -All Neat Cattle of Four Years old and upwards, shall be valued at Ten -Pounds per Head. - -All Neat Cattle from Two Years old to Four Years old, shall be valued at -Five Pounds per Head; and Neat Cattle that are under Two Years old, are -not to be considered. - -All Horse Kind to be rated in the like Manner, as to their Age and -Value. - -All Sheep and Goats of One Year old and upwards, shall be valued at -Fifteen Shillings per Head; and if younger, not to be valued. - -All Swine of One Year old and upwards, shall be valued at Thirty -Shillings per Head; but not to be considered before. - -All Slaves for Life, that are between Sixteen and Fifty Years of Age, -shall be set at the Price of Eighty Pounds; those under Sixteen, or -above Fifty, not to be rated. - -All deck'd Vessels that are in Port, shall be set at Five Pounds per -Ton; and those not deck'd, at Three Pounds per Ton. - -All Trading Stock shall be set at Half the real Value thereof; to which -is to be added, what Estate every Man hath, either in Money, Bonds, or -other Estate that lies concealed, to be considered as other personal -Estate, which the Rate makers shall have Power to require, and take an -Account of as visible Estate. - -All Lands, Houses, Mills, Wharffs and other real Estates, shall be -valued at the Rate of Ten Years, and so considered in the Assessment. - -All Males from Sixteen Years old and upwards, shall be stated at One -Shilling per Head, for every Thousand Pound Rate assessed by the Colony; -and in Proportion for a greater or lesser Sum: In which Assessment upon -Poles, shall be included all Servants for Years, of the Age aforesaid. - -And be it Enacted by the Authority aforesaid, That the Assessors in all -and every Rate, levied as aforesaid, shall consider all Persons who make -Profit by their Faculties, and shall rate them accordingly."[114] - -In 1747 the poll tax was reduced to nine pence per one thousand pounds -of tax levied. As a matter of fact the usual amount of the poll tax, as -determined in the various acts ordering the assessment of taxes, was six -pence per one thousand pounds.[115] - -The digest of 1767,[116] defines somewhat more minutely than before the -procedure to be followed by assessors. They were directed to make -separate lists, first of the estates, the valuations of which had been -handed in by the owners, second of the estates estimated by the -assessors, and third of the number of polls. - -The amount to be raised on polls was then to be deducted from the total -tax and the remainder was to be apportioned among the rateable estates. -Even in the case of those who made return of this property, the power of -making the final estimate remained with the assessors, subject to an -appeal to the next general sessions of the peace for the county. If it -appeared that a true list had been handed in the tax payer might recover -from the town treasury. The appeal was not to interfere with the process -of collection. By act of 1769 all lands or other real estate granted or -purchased for religious uses or for[117] schools were exempted from -taxation. - -It would appear that in the case of leased estates taxes had been -assessed on the owner. This had rendered collection difficult, and in -1784 it was provided that in the future the tax should be assessed on -the occupant who was to be liable in his real and personal property. If -this was not sufficient the real estate occupied was liable. - -By the same act assessors were required to distinguish between real and -personal estate, and assign a separate column to each in their rate -lists.[118] - -The law in regard to collection also underwent considerable development. -It was about the middle of the century that collectors began to be -regularly elected as town officers.[119] A law of February 1755 provided -that if a person rated in one town removed to another town without -paying his rate, the collector of the town where he was rated might -follow him and collect the tax.[120] The difficulty of collecting taxes -on the lands of non-residents led to laws which provided that the land -itself might be sold for taxes.[121] The general treasurer was first -given the power to call special courts for the prosecution of delinquent -collectors,[122] and later was authorized to bring actions directly -against the town treasurer[123], who in return might recover from -delinquent collectors and their bondsmen. In 1781 the real estate of -collectors and their sureties was declared liable for the satisfaction -of all judgements secured against them.[124] Warrants for collection -were declared to be in force until the tax was collected.[125]. -Collectors were empowered to call before them any one who they had -reason to believe possessed property of any person who had been rated, -but who had left the colony, and compel him to pay the tax of the absent -person. In case the person summoned failed to appear and make -declaration, he himself was liable to distraint for the amount of the -tax.[126] Personal property seized by distraint might be removed, for -sale, to any part of the colony.[127] - -There were several other general laws of less importance[128] and, -besides these, there were certain provisions which were re-enacted with -each tax assessment. In this way the towns were required to pay all -charges and fees for collection. Interest was charged against the towns -in arrears. It was generally provided also that the towns might appoint -new assessors for the assessment of each colonial tax, and, in some -cases at least, it was customary. - - - - - Colonial and State Valuations. - - -The law of taxation as it appears in general acts has to do principally -with questions of administration. What we might call the principle of -the tax system was not as a rule embodied in the general law. It was the -growth of custom and its existence was assumed in legislative acts. That -the state might apportion the taxes among the towns with some degree of -justice, it was necessary, however, that it should obtain information in -regard to the value of the property existing within its borders. Thus, -from time to time, general estimates were taken, and in the acts -ordering these estimates we find a more detailed statement of the -methods and principles to be followed, together with certain departures -from the usual custom which reflect the various phases of economic life -in the period to which they refer. - -Just what was the basis of apportionment among the towns when taxation -was resumed in 1744, we do not know. By act of June 1747 the assessors -in each town were required to take an exact account of the rateable -estate of all inhabitants on the basis of the act of 1744, and made -returns to the next session of the assembly, for use in the -apportionment of taxes. A similar valuation was ordered in 1754, and -again in 1757. Return was generally made, but they showed only the total -valuation of each town as estimated by the assessors, and the assembly -made use of no means of verification or revision. Protests against -apportionment were frequent. In June 1761 another act was passed for -marking a general valuation of the colony. The assessors of each town -with two other persons appointed by the assembly did the work. Detailed -rules were laid down for their guidance. They were to take account of -all "Male Polls of Sixteen years old and upwards, distinguishing such as -are exempt from Rates, and of all Rateable Estates lying within said -Towns, by whom occupied, and what each Person's Real Estate may rent for -by the year, particularly mentioning Land," and the various kinds of -structures thereon. The estimate was also to distinguish all negro, -Indian, or mulatto servants for life from fourteen to forty-five years -of age, the number of tons of vessels upwards of ten tons burthen, each -person's whole stock in trade including vessels under ten tons, all -goods, merchandize, and money owned by any person or in his hands by -"factorage," all wrought plate and money at interest "which any person -hath, more than he pays interest for," and all horses and other cattle. -The committees were ordered to distinguish the various "Improvements of -Land", and to specify in their lists the number of acres of pasture, -tillage, orchards, salt marsh, and sedge, fresh meadows, and English -mowing land respectively, also the stock each pasture was ordinarily -capable of feeding, and what quantity of produce the land yielded on the -average. Persons handing in lists of their estates might on oath declare -the amount of debts which they owed and deduct the same from their -personal estates. The person in possession of an estate was obliged to -give an account of the same, and when no one was in possession the -committee was to estimate. - -The committees were empowered to administer oaths, and if any inhabitant -refused to hand in an account of his estate, he was to be "doomed" by -the committee and forfeit £30. A committee was appointed to receive the -reports of the various town committees, to compare and revise them and -thus make a general estimate. - -In February, 1762, this committee reported such an estimate. It was -adopted by the assembly and declared to be the basis of future -apportionments among the towns. The report contained the following -estimates: acres of woodland 247,685; value of woodland £4,613,778; -amount of live stock £2,835,007; money and trading stock £8,455,428; -rents £1,458,748; polls 8,285. On the basis of these estimates the -committee reported the following standard for apportionment: - - One third part of the woodland £1,537,926-0-0 - Total amount of live stock and negroes 2,835,007-0-0 - One half the amount of trading stock 4,227,514-0-0 - Total amount of rents at twelve years purchase 17,504,976-0-0 - ---------------- - 26,105,423.[129] - -A protest on the part of the country towns signed by twenty members was -immediately presented. The grounds of complaint were that the committee -had reduced trading stock one half when the act for taking the estimate -had already "provided for large deductions," and secondly that twelve -years purchase was too high an estimate for land values. Although the -estimate of 1762 had been accepted as the legal basis of apportionment, -departures were made from it which gave use to more or less weighty -protests. In the case of the tax assessed in October, 1765, there was a -protest signed by fifteen members which declared the estimate of 1762 to -be the only legal rule of apportionment, and that the present departure -from it was "altogether arbitrary, unequal and oppressive to particular -towns, nor founded on any real knowledge of the circumstances of the -people taxes." Providence, Scituate and Cumberland refused to pay the -tax. Another protest by the representatives of the same towns was made -against the apportionment of the tax in the succeeding year, when the -apportionment was declared to be "a high act of arbitrary power and -despotism and an exercise of such authority as is utterly inconsistent -with a British Constitution." The assembly proceeded against the towns -and recovered judgment, but did not venture to put it into execution and -finally agreed that the refractory towns should pay their portion of the -last two taxes on the basis of the estimate of 1762. The result of this -dispute was the general estimate of 1769. The act for taking the -estimate was passed in June, 1767. A committee of five (one from each -county) were directed to proceed into each town and make the valuations. -The principles laid down for the guidance of the committee were much the -same as those employed in 1762. Trading stock however was to be -estimated at its full value, except vessels at sea and their cargoes -which were to be estimated at two thirds of their real value. Negro and -other slaves and improved lands were to be estimated at their full -value, the value of the lands to be reckoned at twenty years rental. -Houses and buildings of all kinds, including those used for -manufacturing purposes, were to be estimated at fifteen years rental, -horses and other farming stock at full value. Debts might be deducted -from the personal estate if the "Committee shall think the same best". -The committee were given power to examine on oath and to send for papers -and records. If any person refused to testify or give an account of his -estate, he was to be taxed two fold in the next colony rate. No colony -tax was to be levied until the valuation was made and approved, when it -was to be the standard for the apportionment of taxes until a new -estimate was taken. A protest was entered signed by eight members -asserting that twenty years purchase was an over valuation of land, -while fifteen years purchase was no higher than, if indeed it was so -high as, the real value of houses and buildings, and that unimproved -land as it yielded no profit, should not be taxed. Land holders, it was -claimed, would bear a much larger share of the public burdens than in -justice they ought in proportion to the merchants and traders. - -The report of the committee as at first presented was subjected to -careful re-examination and correction. The final result was reported and -accepted in February, 1769, and the estimate was declared to be "the Law -and Rule for future Taxation." The estimate as adopted contained the -following items: - - Acres of woodland 241,685-3/4 - Value of woodland £236,946-5-6 - Rent at 20 and 15 years 1,356,830-16 - Sum total of ratables of each town 517,578-9-1 - ------------- - Total 2,111,356-0-7 - Polls 8,952. - -Protests against apportionments under the estimate were few. From -October, 1774, to March, 1777, no tax was levied. When it was found -necessary to resume taxation a committee was appointed to consider the -changes which had occurred in each town since 1769, and agree upon a new -basis of apportionment. The committee completed its work in one day, and -made a report containing an estimate which was accepted as a temporary -standard. The total valuation of the new estimate was only a few pounds -greater than that of eight years before. The island towns, then in -possession of the enemy, were relieved at the expense of the main land, -the most important change being the removal of £100,000 from the -valuation of Newport and the placing of it on Providence, increasing the -valuation of the latter town by nearly eighty per cent. Providence, in -its desire to further the resumption of taxation, accepted this large -addition, but only on condition that it should not become a precedent. -The General Assembly however showed no desire to take a new estimate and -continued to apportion taxes in accordance with the estimate of March, -1777. - -Providence, beginning to feel the burdens of the war in the stoppage of -its commerce and the demands of military service, protested and refused -to pay its tax as it had done ten years before. The assembly reduced the -valuation of Providence first by £25,000, then by £50,000, and in -October, 1778, passed an act for taking a new estimate. As in 1769, a -committee of five was appointed and was directed to proceed into each -town and take account of ratable estates and all male polls of -twenty-one years and upwards, except ministers of the gospel and -officers and soldiers in the army and naval service. The principles on -which the estimate was to be taken varied but little from those laid -down for the estimate of 1769. All the property enumerated was to be -appraised at its full value, "whether the said rateable Property be -removed without the limits of the state of not." The committee as before -were empowered, if they thought best, to deduct debts from personal -estate. No report was made until July, 1780. The committee had visited -each town "and with great care, and as much precision as possible, have -endeavored to obtain an exact account of the real value of this state." -The report was accepted and the estimate declared to be the legal basis -of apportionment. The total valuation was £2,778,145-10-0. In September -several towns complained that the estimate was erroneous, and a -committee was appointed to revise it. This committee reported in -November having increased the total valuation about £10,000, and made -considerable alterations in the relative portions of the towns. This -report was submitted to still another revision, the final report however -being presented at the same session. The total remained unchanged and -the changes made in proportions assigned to the towns were, for the most -part, not important. This last report gives merely the total valuations -of the towns, but the earlier report of the November session comprises -the following headings: - - Number of acres 518,112-3/4 - Price per acre £2-5s. to £70-10s-6d. - Value of real estate 2,788,145-10s. - -In none of these estimates were the island towns included. A valuation -of these towns, in accordance with the act of 1778, was ordered in June, -1783, and completed in October of the same year. It showed a total of -£502,227-5-0 which, added to the valuation of the mainland towns in -1780, gave a total valuation for the state of £3,290,372-15-0. This was -the last general estimate made before the adoption of the constitution -of the United States. - -The first point which we notice in these valuations is the prominent -part played by the poll tax. On the basis of the estimate of 1762, and a -poll tax of six pence per one thousand pounds, the poll tax supplied -20.7 per cent of all receipts from taxes. In 1769, the proportion was -22.2 per cent. This proportion increased of course with the growth of -population, and by 1774, must have amounted to 24 per cent, but the -diminution of the taxable population during the war brought it down -again to 22 per cent in 1780. As to the proportions in which personal -and real estate entered into the valuation, personal estate formed about -one third of the total in 1762, and about one fourth in 1769, while, -owing to the destruction of personal property during the war, it had -sunk to about one-eighth in 1780. In all these estimates there is a -tendency to favor personalty, as represented in the growing commercial -interests, at the expense of the proprietors of land. In 1762, money and -trading stock was valued at only one half of its true value, and in -1769, land was valued at twenty years rental which must certainly have -been a high valuation. - -A comparison of the proportions in which the various towns contributed -to the various taxes is instructive. The figures following refer to the -estimate of 1769. The whole number of towns was twenty-eight. Eleven -towns paid a larger proportion of the total property tax than of the -total poll tax, showing they contained more than their proportionate -share of wealth. As a whole they comprised the territory which borders -on Narragansett Bay, and which had been long settled. Together they -contained 40.32 per cent of the rateable polls, and 56.10 per cent of -the property in the colony. The most important towns among them were -Newport, which contained 12.44 per cent of the polls, and 15.6 per cent -of the property; Providence which contained 5.06 per cent of the polls -and 5.94 per cent of the property, and South Kingstown which contained -4.78 per cent of the polls and 9.3 per cent of the property. As a rule -these were also the towns which contained the largest proportions of -personal property. - -Of the property valued in Newport 47.4 per cent was personal, in -Providence 51 per cent. Newport contained 30 per cent of all the -personal property in the colony, Providence 12.4 per cent (i.e. the two -commercial towns with 17.5 per cent of the polls contained 42.4 per cent -of the personal property) and South Kingstown 6.2 per cent. Eleven towns -out of the twenty-eight contained 77 per cent of the personalty. These -same towns contained 49.5 per cent of the polls. - -The gain in valuation from £2,111,295-10-7 to £3,290,372-15, between -1769 and 1780-1783, was entirely on real estate, the personal property -valuation remaining practically stationary, owing to the destruction -caused by the war. - -There is a falling off in the share of taxes paid by the commercial -towns in proportion to their population. In 1782, Providence contained -8.23 per cent of the population, but it paid only 6.98 per cent of the -taxes. Newport's per centage of population had fallen to 10.56 per cent -and the per centage of taxes to 7.81. On the other hand, the country -towns had gained proportionately. Taking Providence county, exclusive of -the town of Providence, we find that in 1769, it contained 26.64 per -cent of the polls and 19.2 per cent of the property, in 1782 it -contained 25.27 per cent of the population and 27 per cent of the -property. There was but little change in the relative positions of the -other counties, Kings County made a slight gain, and the other counties -suffered a slight loss, with the exception of Newport County. Here the -loss of the Island towns was great. In 1769, they contained 19.09 per -cent of the polls and 26.7 per cent of the property while in 1783 they -had but about 16 per cent of the population and 15.2 per cent of the -property. - - - - - Customs and Excise Duties. - - -Among the acts of the first assembly under the Patent in 1647, occurs -the following: - -"It is ordered that the Dutch, French or other alliants, or any -Englishman inhabitating among them, shall pay the like customs and -duties, as we do among them for all such goods as shall be imported for -the English, except beaver." - -This act was probably of little practical importance as the trade of the -colony during the seventeenth century was very small. In 1655, an excise -duty of five shillings was imposed on every anchor of liquors and -quarter cask of wine, and three years later a like customs duty was -added. The revenue from both taxes at first went to the towns, but in -1674 it was transferred to the colony, as "the whole excise seems almost -all lost by neglect." The collection of the tax was to be farmed out. -Whether the tax was more productive than under town government we do not -know. It was repealed in 1686. Both customs and excise duties were -introduced by Andros, but disappeared with his government. In 1696, -however, the customs duties on liquors was reimposed by the colony, and -molasses was added to the list.[130] In 1707 slaves were added to the -dutiable articles, at £3 per head. About twenty or thirty were annually -imported from the Barbadoes, and their value was from £30 to £40 a -piece. The income from this source must have been of considerable -importance at the period. In 1715 the revenue from this tax in the naval -officers' hands was £289-17-3. In the same year the law was amended so -as to cover negroes brought in from the neighboring colonies. The act -seems to have remained in force until May, 1732, when it was repealed -under instructions from the English government. There seems to have been -no further imposition of customs or excise duties on the part of the -colony until the period of the Revolution. The state, as we have seen, -was left in an exhausted condition at the close of the war. The people -were unwilling to continue the payment of taxes and were behind on those -already levied. The annual interest on the debt was considerable. - -A committee, appointed to devise means for supplying the treasury, -reported November, 1782, recommending the imposition of customs and -excise taxes. In February of the following year, an act was passed in -accordance with this recommendation to take effect on the tenth of April -following. Both customs and excise duties were imposed. Collectors do -not seem to been appointed until May, and in June the act was repealed -so that it was of little practical importance. At the same session, -however, its place was supplied by an act laying a duty of two per cent -ad valorem "on the Value, and at the Time and place of landing of all -Goods which shall be imported into this State being of the Growth or -Manufacture of any foreign State," the revenue, as before, to be devoted -to the payment of interest on the public debt. The act was to take -effect on July 1. - -The law was enforced with severe penalties. No imported goods were to be -landed without permit obtained, on penalty of forfeiture of vessel and -cargo. No dutiable goods imported by land could be removed from the town -into which they were imported, or sold or consumed in that town without -a permit from the collector of impost, under penalty of forfeiture or a -fine equal to the value of the goods. In June, 1784, the duty was raised -to two and one half per cent. It was at this period that manufacturing -industries began to take root in Rhode Island, and, as a natural result, -we find evidence of the growth of the protective principle in tariff -legislation. - -In February of the following year a committee was appointed "to draught -an act laying an additional duty upon hats, shoes, boots and such other -articles of foreign manufacture as may be manufactured within this -State." In May an act was passed discriminating against British vessels. -It provided for an additional duty of 7 1/2 per cent on goods imported -in any vessel owned in whole or in part by British subjects. - -The result of the work of the committee appointed in February is seen in -an act of June, 1785, entitled 'An Act for laying additional Duties on -certain enumerated Articles, and for encouraging the Manufactory thereof -within this State, and the United States of America." The act is quite -extensive including the following articles: - - - 25 % - -Ready made garments, canes, brush handles, warming pan handles, mop -sticks, tailors' press and notch boards, house bells, toys. - - 20 % - -Scythes, hoes, leather goods. - - 12 % - -Paper, blank books, pewter ware, tin ware. - - 10 % - -Tools for the use of block makers, chaise makers, tanners, curriers, -caulkers, shoe makers and husbandmen, (sickles, plane irons and saws -excepted) muffs, tippets, ermine, candles, soap, manufactured tobacco, -goldsmiths, silversmiths and jewellers ware. Instrument and cabinet -makers work, frame chairs, porter, beer. - - 5 % - -Cordage, twine. - - Special Duties. - -Axes and adzes (per doz.) 6s.-20s. - -Cards (per doz. boxes) 12s. - -Women's shoes (per pair) 1s. 1s. 6d. - -Cheese 3d. per lb. - -Wrought gold 6s. per ounce. - -Clocks and gold watches 18s. - -Carriages £ 3, 15s. - £ 15. - -Loaf sugar (3d. per lb.) - -Hats 1s. - 6d. - 3s. - -Iron hollow ware 3s. per cwt. - -Dressed and tanned leather 3d. per lb. - -Wrought silver 1s. per ounce. - -Silver watches 6s. - - -Though the purpose of the act was protective, it is evident that in the -case of many of the articles enumerated, the duty was entirely a revenue -tax. In March, 1786, steps were taken towards laying an excise duty. A -committee was appointed to draw up a bill for the purpose. The committee -reported at the same session and an elaborate excise act was passed, -which was to go into effect on May 16; but at the session in that month -the act was suspended until the next session, when a committee of -revision was appointed. There is no farther mention of any legislation -in regard to the excise until December, when another excise law was -passed to go into effect on May 15, 1787, and remain in force for three -years. Neither of these acts seem to have been generally enforced. No -collectors were appointed under the act of March. Under the December act -collectors were appointed in May, 1787, but there is no record of any -subsequent appointments. - -When government under the United States constitution went into -operation, in 1789, it became impossible for Rhode Island to pursue an -independent policy in regard to customs duties, and the General Assembly -at the May session passed a law providing that the same duties, payable -in the same money, be collected in Rhode Island as should be ordered by -Congress for the United States. In September the assembly supplemented -this provision by enacting a law similar to that which had been passed -by Congress. Goods imported from the United States and from North -Carolina were exempt from duty. In May, 1790, the state adopted the -constitution and the power to levy impost duties ceased. - -The want of method in keeping accounts at the time renders it impossible -to state exactly the amount of revenue received under the acts imposing -import duties. I have found however nearly complete returns of the -duties collected in the counties of Providence and Newport, which -contained the principal posts of entry. - - County of Providence. - (Includes receipts from October 1, 1783) - - Total nominal receipts £21,533-14-7 3/4 - Receipts in paper money of 1786, 11,464-4-1 - --------------- - Receipts in specie 10,069-10-6 3/4 - Specie value of paper money receipts 1,550-14-6 3/4 - --------------- - 11,620-5-1 1/2 - Value in present dollars $42,414. - - - County of Newport. - (Includes receipts from July, 1783, May, 1789, and from Sept. - 1789) - - Total nominal receipts July, 1783, May, 1789, 18,900-1-8 3/4 - Receipts in paper money of 1786, 10,131-12-8 3/4 - --------------- - Receipts in specie 8,768-1-0 - Specie value of paper money receipts 2,181-10-4 1/2 - --------------- - Total specie value of receipts 10,949-11-4 1/2 - Value in present dollars $39,966. - Receipts from September, 1789, 3,202. - --------------- - Total 43,168. - Providence County 42,414. - --------------- - Total for both counties 85,582. - -Such figures, of course, are not exact, and it has been impossible to -find more than fragmentary returns from other counties. Such counties -were, however, comparatively unimportant. It will probably not be far -from the truth if we place the total receipts under the customs acts for -the period of between six and seven years, when they were in force, at -something over $90,000 or about $14,000 a year. The interest on the -public debt must have amounted to between $30,000 and $40,000 per annum, -so that the revenue from customs duties fell far short of satisfying the -purpose for which it was imposed. - - - - - Tonnage Duties. - - -Tonnage duties were imposed as early as 1690, and continued until Rhode -Island entered the union. They were first levied for the support of the -fort and were payable in either money or powder. About the middle of the -eighteenth century a light house was built and additional tonnage duties -were imposed for its support. The amounts varied from time to time, -according to the needs of the fort or light house, and there was -discrimination in favor of vessels engaged in home trade. In 1767, a -time of peace, the duty imposed for the support of the fort was 2 S., or -1 lb. of powder per ton for all vessels above ten tons, not owned by -inhabitants of the colony. The "light money" was 4 1/2d. per ton for -foreign vessels and 3s. for each clearing for coasters. - - - - - Notes. - - -Footnote 1: - - Gneist, Hist. of the Eng. Const., Vol. 1, p. 34. - -Footnote 2: - - Wilson, The National Budget, p. 10: - - In the year ending March 31, 1886, the net receipts from domains, - forests, &c., were only £380,000, out of a total revenue of over - £89,000,000, but it is interesting to notice that even now by the - _ordinary revenue_ is understood "the old hereditary property of the - king, the original property of the state, which belongs to the king - independently of any vote of Parliament," while by _extraordinary - revenue_ is understood "the income derived from direct taxation, - customs, and excises granted by vote of Parliament," Gneist, Hist. - Eng. Const. II, 346-7. - -Footnote 3: - - Wilson p. 7: - - The earliest taxation was on land only. Taxation of personal property - was introduced by the Saladin Tithe in 1188. It was the introduction - of a poll tax which led to the Wat Tyler rebellion of 1381. The first - permanent tax was the hearth money tax imposed in 1663. Much the - greater part of the taxes are now permanent. - -Footnote 4: - - In early times the fines were apportioned among those whose neglect - had caused the fine i.e. the freeholders with freeholdings, including - houses and profitable rights, as the basis of assessment. (Gneist, - Hist. Eng. Const. I, 375, 376.) The system now becomes the household - (whether freehold or not) "according to the scale of the visible - profitable property in the parish." (Ib. II, 212.) The act itself - reads that the overseers of the poor shall have power to raise the - necessary funds "by Taxation of every inhabitant, Parson, Vicar and - other, and of every occupier of Lands, Houses, Tithes impropriate, - Propriations of Tithes, Coal Mines or saleable Underwoods in the said - Parish, in such competent Sum and Sums of Money as they shall think - fit." - -Footnote 5: - - No tax was ever levied in support of religion. The colony as a whole - seems to have neglected education. In 1640, however, Robert Lenthall, - school teacher and minister, was granted 104 acres of land by Newport, - and 100 acres was appropriated for a school "for encouragement of the - poorer sort." Arnold's Hist. of R.I., Vol. 1, p. 145. Providence also - later made some provisions for education. - -Footnote 6: - - Providence, Portsmouth, Newport and Warwick, founded between 1636 and - 1642, were perfectly independent with full powers of self government - until united under what is known as the _Patent_ in 1647. This - independent character of the towns is brought out in W. E. Foster's - _Town Government in Rhode Island_--John Hopkins University Studies, - Fourth Series. - -Footnote 7: - - R.I. Col. Recs. I, 27-31. - -Footnote 8: - - Among the entries under the first day of which we have record is an - order for the appointment of a treasurer for the "expending of the - Towne's stock." (R.I. Col. Recs. I, 13) Some months later it is - provided that any one more than a quarter of an hour late at a town - meeting shall be fined 1s. 6d. (ib. p. 15) An entry under the second - year shows that payments had been made for lands received by new - comers, and like payments are ordered to be made by future comers, but - the amounts are illegible. (Staples' Annals of Prov., p. 23) In 1661, - Roger Williams in speaking of the year 1638, says it was agreed that - every person admitted to "injoying landes" should pay 30s. to the - common stock (R.I. Col. Recs. I, 23) And in the articles of government - in 1640, it is provided that every one received as a townsman shall - make the same payment (ib. 30) The same provision is included in the - plan for a new settlement proposed by Roger Williams (ib. 40) - -Footnote 9: - - At Portsmouth the charge was 2s. per acre (R.I. Col. Recs. I, 56) - -Footnote 10: - - In 1638, a fence was ordered to be built "the charge to be borne - proportionally to every mans allottment." (repealed). In the same year - two treasurers are chosen; it is ordered that the highways be repaired - and that a prison be built both to be paid for out of the treasury. A - land subsidy for building a mill is granted and in 1643 a town watch - is ordered to be kept every night, also to be paid for out of the - treasury. (R.I. Col. Recs. I, 53, 57, 58, 59, 78.) Still more - interesting is the appointment of four men for the venison trade with - the indians. These "truck masters" are forbidden to give more than - three half pence a pound, "a farthing for each pound being allowed to - the treasury" (Ib. 63) Every inhabitant was ordered to be provided - with one musket, one pound of powder, twenty bullets, two fademes of - match, sword, rest and bandeliers, (Ib. 54) On another occasion every - man was ordered to have by him four pounds of shot and two pounds of - powder. (Ib. 77) - -Footnote 11: - - The treasurer was directed to pay to the secretary for service done - £19 and 10 acres of land, and to the sergeant £6. In another instance - he is ordered to make a payment of £57 2s. 4d. (R.I. Col. Recs. I, 90, - 95) There is no evidence of the payment of the judge and elders, who - were both executive and judicial officers. - -Footnote 12: - - R.I. Col. Recs. I, 87: This is the first statement (if we except the - payment according to allotments ordered at Portsmouth, which was - repealed. See above Note 10.) which we find of a principle that could - serve as a basis of taxation. Another entry which might point either - to payments for lands or taxes is "It is ordered that such as shall - bring in their acquittances from the Treasury to the Judge and Elders - shall have their Lands recorded." (ib. p. 99). That payments for land - were required would seem clear from an order of the General Court of - the inhabitants of Portsmouth and Newport, after the union of the two - towns, directing the "Treasurer to make demands for all such monies as - are due to the Treasurers for the Lands assigned forth to particular - men." (ib. 103) - -Footnote 13: - - R.I. Col. Recs. I, 122: The order directs "that the three shillings a - day allowance be taken off from the Officers." The "Officers" might - imply that all offices were paid, but there has been no mention of - payment except to the secretary and sergeant. It is not unlikely that - the magistrates received fees in their judicial capacity. - -Footnote 14: - - A committee appointed to examine and balance the accounts of the - treasurers reported that £111, 3s. 4d. was due from the treasury of - Newport. The frequent examinations of accounts which are ordered also - show that financial matters are increasing in importance. - -Footnote 15: - - R.I. Col. Recs. I, 125. - -Footnote 16: - - This interruption was caused by William Coddington, a citizen of - Newport, who obtained from the Council of State in England a grant to - govern the islands of Rhode Island and Conanicut, with a council of - six men named by the people and approved by himself. The grant was - repealed in Oct. 1652, but mutual jealousies kept the towns apart till - the date given. - -Footnote 17: - - Government under the Patent was marked by extreme decentralization. At - first all legislative powers remained with the freemen of the towns; - the committee could merely propose measures and declare the decisions - reached by the freemen. The committee, however, tended to become the - legislative body and was regularly established as such on the - resumption of the government in 1654. (R.I. Col. Recs. I, 276 et seq.) - -Footnote 18: - - No solicitor was elected after 1684. - -Footnote 19: - - This continued until 1747. Arnold Hist. of R.I. II, 157. - -Footnote 20: - - There are several instances of laws imposing fines of from £1 to £10 - for refusal to bear office. A man could not be compelled however to - bear office for several years in succession. In 1659, an assistant who - had been elected several times was excused from further service, and a - law of 1665, imposing a fine of £5 on constables for refusal to serve, - provided that the same man should not be elected more than once in - three years. By act of 1672, no man need serve as a deputy for two - courts in succession. More than this, a town law, "declared all the - inhabitants, though not admitted freemen, liable to be elected to - office," (Staples Annals of Prov. p. 118) By act of Assembly in 1670, - any person judged capable of holding public office might be elected a - freeman whether he desired it or not. (R.I. Col. Recs. II, 357). - -Footnote 21: - - The only legislative officers under the Patent who received any pay - were the commissioners from the towns, who were allowed 3s. a day - payable by the towns, with a double fine for absence (R.I. Col. Recs. - I, 307). No salaries appear to have been paid under the charter for - the first few years. In 1666, (R.I. Col. Recs. II, 167) 3s. a day was - granted to all who served in the general assembly or colony court of - trials (except such as had stated fees), payable in the former case by - bills receivable for taxes in the town of the holder and in the latter - case out of the general treasury. The fine for non-attendance was - double the pay. In April, 1672, these salaries were increased, but the - increase was repealed the next month, and in November deputies wages - were fixed at 2s. a day, payable by the town, with a fine of £1 for - non-appearance at the assembly or £2 in case there was no quorum, for - an assistant in the latter case the fine was £5. (R.I. Col. Recs. II, - 443, 456, 473) By acts of 1664 and 1666, a like fine had been imposed - on magistrates absent from the court of trials in case of no quorum. - By act of 1680, (R.I. Col. Recs. III, 87) magistrates and deputies - were to be paid out of the general treasury at the rate of 7s. a week. - Perhaps this was a substitute for the act of 1679. This comprises all - the legislation in the records on the subject. There seems to be some - doubt as to the extent of the action of these laws. Arnold (Vol. I, - 532) says "Salaries had occasionally been paid to the civil officers, - but most of the time public service had been performed gratuitously." - In any case the imposition of fines for non-attendance must have gone - far to make the system self supporting. - -Footnote 22: - - The sergeant in particular was a considerable source of expense. - Several times as late as 1664, we find taxes of from £5 to £25 levied - for the payment of his bills, and an act of 1673, recites that the - inhabitants have been "greatly oppressed and grieved" by the - sergeant's "great wages" and that henceforth he shall receive but 3s. - a day for attendance in the general assembly, and simply his fees at - the court of trials, instead of "great fees at the Court of Tryalls, - and four shillings a day, alsoe" as heretofore. - -Footnote 23: - - A law of 1670, (R.I. Col. Recs. II, 361) provides that for rates - formerly or now ordered the treasurer shall have one shilling in the - pound for all he receives in provisions, but nothing for what he shall - receive in money or for any fines now due the colony, "and what charge - he shall be at he shall be allowed for that besides." In 1671, (ib. - 385) it is ordered that for all (in money or other pay) that the - treasurer has received during the last, or shall receive during the - coming, year he shall be allowed twelve pence on the pound. An audit - of 1681, speaks of the treasurer's commissions as 5%. An audit of the - accounts of the treasurer under Andros show that the commission was - 10%, and this rate seems to have been continued after the - reestablishment of the colonial government. In the case of the tax - levied in 1679, the towns are ordered to pay the treasurer's salary in - addition to the tax, but as a rule his commission seems to have been - deducted from the receipts. - -Footnote 24: - - Later the colony, in some instances, made grants to meet the expenses - of certain of the roads and bridges of more than local importance. - -Footnote 25: - - R.I. Col. Recs. I, 222. - -Footnote 26: - - Ib. 288. - -Footnote 27: - - This is shown often in the wording of the laws; for example, in the - salary law of 1666. (see p. 97 Note 21) the treasurer is ordered to - make payment "out of those monies which either by fine, forfeiture or - otherwise, are brought into the Treasury," and in the act granting - diet and lodging in 1679, (see ib.) the expense is to be met out of - "the fines and forfeitures due to the Collony." Taxes are not - specified as a source of revenue. The audit reports entered in the - colony account book show the same thing. The decentralization which - marked the government under the Patent is seen in the order "that the - Publick Treasurer shall only receive such fines, forfeitures, - amercements and taxes, as fall upon such as are not within the - liberties" of the four towns. (R.I. Col. Recs. I, 197). An act of 1656 - (Ib. 334) provides that all "fines that are committed about ye - Generall Courts, as of juriemen, &c., shall all returne and belong to - ye Generall Treasurie." And in general it was the fines imposed in the - colony courts that were the most fruitful sources of revenue. - -Footnote 28: - - R.I. Col. Recs. I, 223: The towns of Providence and Warwick were to - have each one barrel of powder, five hundred pounds of lead, six - pikes, and six muskets. Portsmouth was to have two barrels of powder, - one thousand weight of lead, twelve pikes, and eighteen muskets; - Newport, three barrels of powder, one thousand weight of lead, twelve - pikes, and twenty-four muskets. - -Footnote 29: - - A tax of £24 was levied for this purpose in November, 1658, and in the - following May another of £50 (R.I. Col. Recs. I, 395, 416). It is not - quite clear whether or not the second was meant to include the first. - -Footnote 30: - - Three years later the order had not been complied with. Newport - however had a prison under way. This was adopted as the prison of the - colony and the other towns were ordered to contribute to the cost. The - portion of the law ordering cages to be built was repealed. - -Footnote 31: - - The claims of Massachusetts, Connecticut and Plymouth included - practically the whole territory of the colony. The claim of - Connecticut up to the bay on the west was not settled until 1703, and - the claim of Massachusetts (which had succeeded to the Plymouth claim) - up to the bay on the east was not settled until 1746. - -Footnote 32: - - None of this tax was paid for some years, and the whole amount was - never received by Williams (See his letter to the town clerk of - Providence, Jan. 1680-81, printed in the Narragansett Club - Publications, Vol. 6, p. 400) Contributions (amounting it was claimed - to £200) seem to have been taken up in Warwick and Providence to send - Williams on his second agency (See R.I. Col. Recs. I, 234, & II, 78), - but he was obliged to sell his trading house in Narragansett to - support his family during his absence (Arnold I, 239), and he seems to - have been compelled to support himself by teaching while in England - (Arnold I, 251). As he himself expresses it he was "left to starve, or - steal, or beg or borrow." (Letter to Providence R.I. Col. Recs. I, - 351). He was also obliged to sell several islands in the bay owned by - him to meet his expenses incurred on his journeys to England (Arnold - I, 105). Clarke seems to have supported himself in part by preaching - and other means. (R.I. Col. Recs. II, 79) - -Footnote 33: - - It was first attempted to raise the necessary amount by contribution - (R.I. Col. Recs. I, 443). About £40 seem to have been secured this - way. Those who had contributed were allowed to set off their - contributions against their part of the rate. - -Footnote 34: - - Does not seem to have been fully paid Oct., 1663. (R.I. Col. Recs. I, - 506) - -Footnote 35: - - This tax was collected with the greatest difficulty. Hardly any of it - seems to have been paid for several years. A "great part" remains - unpaid in October, 1669, (R.I. Col. Recs. II, 288) and we find - measures taken for its collection in certain places as late as May, - 1671. (R.I. Col. Recs. II, 380-3). In October, 1666, (ditto II, 183) - it is mentioned that "several persons" are "yett behind" in former - rates. - -Footnote 36: - - Westerly had contributed £65 and was excused from the tax. In May, - 1671, (R.I. Col. Recs. II, 380 et seq.) a great portion of this tax - had not been assessed. - -Footnote 37: - - This was the first percentage tax. In May, 1674, "under severall - pretences few or none paid." (R.I. Col. Recs. II, 521). Some are also - behind in former rates, (ditto 522). So far as shown by the colony - account book, the receipts from this tax amounted to but a few pounds. - -Footnote 38: - - In May, 1679, several towns had not assessed the rate. (R.I. Col. - Recs. III, 33) An audit in July, 1681, shows that £108 6s. 10d. is due - on this and the rate of 1680, a considerable portion of the deficiency - being for the present tax. - -Footnote 39: - - The sum was paid down by Stephen Arnold, who was guaranteed by the - notes of several other persons who in turn were to be paid out of the - tax. In June, 1681, certain of those who had given their notes to - Arnold petition for relief, from which it is evident that the tax had - not been paid. The delinquent towns are ordered to pay. - -Footnote 40: - - For delinquency in payment see notes 38 and 41. - -Footnote 41: - - The colony account book shows the receipt of but £59, 13s. 10d. up to - September, 1686, from the deficiency of £108, 6s. 10d. (Note 38) and - the present tax. More may have been received for the accounts were - left in an irregular manner, and the custom of offsetting debts due - from the colony against rates may have prevented some payments being - recorded at all. On the other hand it was in the summer of 1686, that - the colony forfeited its charter so that it would not be strange if - the taxes due were not collected. - -Footnote 42: - - I have been able to find no trace of this tax in the colony records, - but such a tax seems to have been ordered by Andros throughout his - whole jurisdiction, and it is mentioned as levied in Staples Annals of - Providence, p. 177. - -Footnote 43: - - This tax as assessed in Providence amounted to £37 12s. 3d. of which - £14 was poll money, giving the number of polls assessed as 178. The - number of separate property assessments was 144. In the rate of £120 - levied in the same year Providence paid one sixth of the whole. Using - this as a basis of calculation the penny in the pound and poll tax - would have amounted to about £225. The other penny in the pound taxes - do not seem to have yielded quite so much. The three perhaps yielded - about £600. - -Footnote 44: - - R.I. Col. Recs. I, 104-5. Herdsmen or lightermen detained on their - necessary employment were subject to a fine of only 2s. 6d., and - farmers might leave one man at home subject to the same penalty. - -Footnote 45: - - R.I. Col. Recs. I, 153: Provision was also made for archery. Every - person above seven years of age was required to be supplied with bow - and arrows and to practice shooting. (Ibid 186) - -Footnote 46: - - R.I. Col. Recs. I, 372: In 1673, those also were exempted who could - not fight without violating their conscience. A concession to the - Quakers, but the abuse to which the law was subject led to its repeal - a few years later. - -Footnote 47: - - The arms required by the act of 1647, were "a musket, one pound of - powder, twenty bullets, and two fadom of match, with sword, rest - bandaliers all completely furnished." By act of 1665, in addition to - his arms each man must be furnished with two pounds of powder and four - pounds of lead or shot. (R.I. Col. Recs. II, 117). Under the law of - 1677 the requirements were one gun or musket, one pound of powder, and - thirty bullets (Ibid 570). The act of 1665, speaks of the burden on - the poorer citizens in keeping their arms in repair, and ammunition on - hand, and provides that to meet these expenses nine shillings a year - in current pay shall be paid to each enlisted soldier, the necessary - amount to be levied by rate. No future law makes any mention of such - payment and service was probably as a rule without recompense. - -Footnote 48: - - We have of course no accurate records of the number of the population - at that time. From the data which we do have however it is probably - safe to say that when the four towns came together in 1647, the colony - contained less than one thousand inhabitants, and that the number - gradually increased until at the end of the period, it amounted to - between four and five thousand. The royal commissioners reported in - 1665, that the "Colony hath its scattered townes upon Rhode Island, - two upon the maine land, and four small villages" (R.I. Col. Recs. II, - 129). By 1678 the towns had increased to nine, at which number they - remained for many years. Certain parts of the colony, as the island - and some of the country in the south and to the west of the bay (the - Narragansett country) seem to have been very fertile. Say the - commissioners above quoted "In this Province also is the best English - grasse, and most sheepe, the ground very fruitfull, ewes bring - ordinarily two lambs, corn yields eighty for one, and in some places, - they have had corne sixe years together without manuring." The - industry of the colony at this period was wholly agricultural and - tended to stock and dairy farming rather than to the raising of grain. - Indeed the colony seems on some occasions to have been dependent on - its neighbors to supplement its own supply of the latter article. The - colonists seem to have been comfortably off, without either great - wealth or great poverty. In Providence estates were of small size (a - few acres), life was on a very humble scale, the inhabitants enjoying - only the real necessities. On the island estates were also small in - size but there was more wealth, and the Narragansett country a few - years later saw the growth of large stock farms and plantations, - sometimes five, six, or even ten square miles in extent, managed by - slave labor. Perhaps the condition of the colony as a whole during the - period from 1647 to 1689, is best summed up in the words of Governor - Ward in a letter to the Board of Trade many years later, "for, - although we were not rich, yet poverty was a stranger among us, till - the year 1710." An excellent picture of the early economic development - of Providence can be found in Dorr's "Planting and Growth of - Providence," published as No. 15 of the Rhode Island Hist. Tracts. A - description of the "Narragansett Planters" is given by Mr. Edward - Channing (Johns Hopkins University Studies, Series IV, No. III). Not - only were the people of that time lacking in wealth according to the - standard of today, but the organization of their economic life was - entirely different from that we now know. Each family possessed a - sufficiency of land, but produced only enough to meet the current - needs of the household. There was no chance for saving, investment and - accumulation; there was no adequate money system. All this would make - a tax fall much more heavily than under our present conditions. - Another circumstance that added to the burden was that taxes were not - levied continuously, a small amount each year, but in considerable - amounts, at intervals of several years. The colony suffered greatly at - the time of Philips war. Warwick and a large part of Providence were - destroyed, the inhabitants taking refuge on the island. All these - considerations must be taken into account in the endeavor to form a - judgment of the burden of taxation during the period. - -Footnote 49: - - In the letter from Roger Williams to the town clerk of Providence, - already mentioned (note 32) he says that taxation in Rhode Island is - far lighter than in any other colony. He also mentions that the - charter cost about £1,000, while that of Connecticut cost £6,000. The - letter itself is a plea for the more prompt payment of rates. - -Footnote 50: - - R.I. Col. Recs. II, 505. - -Footnote 51: - - Ibid III, 13. - -Footnote 52: - - Ibid III, 162. - -Footnote 53: - - That these loans or contributions were often only for a few pounds is - expressive of the poverty of the treasury. The occasional reports - entered in the colony account book give us some idea of the financial - transactions of the colony at this time. The amount entered as due the - colony from May, 1672, to May, 1673, was £33, all from fines (£8 from - jurors fines), of which £23 12s. had been received. In August, 1673, - there was reported due £64 14s. 4d. for rates and fines unpaid between - 1664 and 1670. The amount expended from May, 1672, to August, 1673, - was £21 6s. 3d. for jury dinners, provisions for the general court - (wine and brandy), for transportation of public officers, for books - for the treasurer, for capturing a prisoner, for support of prisoners, - for hanging prisoners, for messengers to and from Plymouth. The audit - committee in August, report £137 6s. due from the colony. The receipts - entered from October, 1673, to May, 1675, are £125 9s. 10d. of which - £95 is specified as coming from fines, and £3 12s. from rates (the - farthing in the pound rate of 1673), the remainder not being - specified. This may not be the amount actually received, but rather - what was known to be due the treasury, for the amount entered as - expended between May, 1672, and April, 1677, was £101 2s. 3d., the - most important items being as before jury dinners. (£7 1s. 8d.) - criminal matters (£ll 16s. 6d.), carriage of public officers (£2 - 11s.), general sergeant (£23 1s. O.) general recorder (£17 11s.) The - committee to audit the accounts of Peleg Sanford whose term of office - as treasurer was from May, 1678 to May, 1681, reported payments - amounting to £392 1s. 9d., largely for surveys made in the - Narragansett country, expenses in connection with the boundary line, - and other expenses similar to those previously mentioned. In the - greater part of the payments, however, only the name of the person - paid and not the purpose is given. Some of these payments may have - been on account of expenses in connection with the war. Fines form a - principal element of the receipts, but the principal item was £299 - 13s. 2d. from the taxes of 1678 and 1680. The expenditures entered - between September, 1681, and September, 1686, amounts to only £82 0s. - 11d. largely for jury dinners and payments to the sergeant and - recorder. The audit of the accounts of the treasurer under Andros show - nominal receipts of £213 6s. 8d. from taxes, and expenditures of £232 - 7s. 1d, the principal items being the court houses and the bounty on - wolves, the purposes for which the taxes were laid, and payment of the - sheriff. (£18 4s.). - -Footnote 54: - - One of the complaints made against the colony by Bellemont in 1699 - was, "They raise and levy taxes and assessments upon the people, there - being no express authority in the charter for so doing." (R.I. Col. - Rec. III, 386). Article IV, Sec. 10, of the present constitution - provides that "The general assembly shall continue to exercise the - powers they have heretofore exercised, unless prohibited in this - constitution," but makes no more definite grant of the right to tax. - It would seem that this right has never been _specifically_ granted to - the assembly. - -Footnote 55: - - The separation took place in 1696, Arnold I, 533. - -Footnote 56: - - During the early years of the colony there were several outlying - districts (Block Island, Conanicut, and certain districts which - afterwards became Kingstown and Greenwich) not yet incorporated into - towns. For those places assessors were generally appointed by the - general assembly, collection was by the general sergeant. By 1678, - however, these places had all attained to the dignity of towns. - -Footnote 57: - - R.I. Col. Recs. I, 306: If any person refused to assist an officer in - gathering rates he was to be fined ten shillings. - -Footnote 58: - - R.I. Col. Recs. I, 227: Those individuals that did not pay their tax - within twenty days were to be liable "in Generall, and each man in - particular x x to the penealtie of the forfeiture of ten pounds," - imposed by the court of commissioners upon the town for failure to pay - its quota. Both of these provisions are also found in the act ordering - that the magazines be supplied in 1650. (Ibid 223) - -Footnote 59: - - In the act ordering the erection of prisons in 1655, the assembly - chose three men to make the rate in each town except Newport, for - which four were chosen. Each town was empowered to add to the number, - or to substitute others for those chosen. These same men were to have - the charge of building the prisons. (R.I. Col. Recs. I, 311). The - several acts in regard to the rates of 1662 and 1664, do not prescribe - the machinery of assessment and collection except where extraordinary - measures are adopted as a result of non-payment. In other cases it is - simply ordered that the inhabitants of the towns meet and assess the - rate. It does not seem probable that a full town meeting would - undertake to apportion a rate. It is more likely a committee of - assessors would be appointed for the purpose. The law of 1665, - providing for the military assessment orders the appointment of men to - make the rate. An act of October, 1670, directs each town to choose a - convenient number of persons to make the rate ordered the June before. - After 1678, the records of Providence show that the election of - assessors was customary. They were elected for each tax. It was not - till well into the next century that assessors became regular town - officers. - -Footnote 60: - - It is probable that in the earlier years each individual was his own - collector, the constable being sent for the rate only on failure to - pay. Before long, however, the constable must have become practically - the collector. A law of June, 1684, provides that all future rates - shall be gathered by the town constables who were to be allowed two - shillings on the pound for their services, and to forfeit double their - fees in case of neglect (R.I. Col. Recs. III, 162) - -Footnote 61: - - R.I. Col. Recs. II, 510. - -Footnote 62: - - Taxation according to "strength and estate," as it usually reads, is - the almost unvarying form in which these early colonists expressed - their idea of equality in taxation. It would be difficult to find a - better expression. - -Footnote 63: - - Payment however must be made in what may be kept in a store house - three months without damage. - -Footnote 64: - - This is explained as follows, "or that is accordinge to tenn upon the - hundred a yeare forbearance". This and a like reference further on in - the text would seem to show that it was ten per cent interest which - was to be charged on rates not paid when due and that the usual rate - of interest was five per cent. - -Footnote 65: - - The only case before the time of Andros was the farthing in the pound - tax levied at the time of the passage of the law. Very little seems to - have been received from this tax. The following provision of the law - may afford some explanation. "All rates to be paid in country pay, - accordinge to price of wooll twelve pence a pound; and to vallue their - estates according as it would be worth to pay a debt in old England." - It was added by way of explanation at the next session, "every penny - of English money to be the value of four pence here." From other laws - &c., it appears that the English pound sterling was only a little more - than twice as valuable as the pound of "country pay" so that a - valuation at the rate of four to one would be an undervaluation. And - again, wool was usually received in payment at six or seven pence a - pound so that payment at the rate of wool twelve pence a pound would - be payment in a depreciated currency. - -Footnote 66: - - It should be noted however that the magistrates were also members of - the councils of the towns in which they lived. - -Footnote 67: - - It was a common thing to make the rate makers, whether appointed by - the town or the assembly, responsible for the rate in case it was not - made. The same is true for the constables and sergeants in case it was - not collected. The reasons for the non-payment of taxes seem to have - been political rather than economic. All through this period, - particularly in the early part, the central government, as we have - said, was weak and the colony was torn by dissensions. There does not - seem to have been entire harmony between the main land and the island, - and it was in the main land towns and outlying districts that the - greatest difficulty was found in collecting taxes. Warwick protested - strongly against paying her portion of the £600 tax to pay Clarke in - 1664, (R.I. Col. Recs. II, 78) claiming that most of the time Clarke - had been merely the agent of the island. If the tax must be levied, - the town prayed that it might be levied on the Indians who had - intruded on their lands and stolen their goods, or by "just fines and - amersements, layd upon such in the Collony as have not only gone - about, but allso have betrayed the Collony." This tax was not - collected in Warwick for six or seven years. There were also internal - dissensions in the towns themselves, particularly in Providence where - the opposing parties seem to have been of nearly equal strength. In - 1641, the inhabitants of Pawtuxet, an outlying district of Providence, - submitted to Massachusetts jurisdiction and was not permanently - reunited to Rhode Island until 1658, (Arnold I, 111). Until 1703 the - conflicting claims in Narragansett country continued to interfere - seriously with the exercise of jurisdiction in that country, sometime - rendering it altogether impossible. Another cause which rendered - collection difficult was the custom of offsetting debts due from the - colony against rates. One of the provisions enacted at the same time - with the sedition act was "neither shall any persons plea that the - Collony is in his debt, be of any force or offset to his or their said - rate on that pretence, untill the end be answered for which the rate - is or shall be made." Similar acts were passed on many other - occasions. Nevertheless offsetting rates against debts was customary - and the practice is authorized by a general law of 1684. (R.I. Col. - Recs. III, 165) - -Footnote 68: - - R.I. Col. Recs. II, 438: The act speaks of "a covetous or ffactious - and mallicious sperritt appeeringe in sundry townes and places of this - Collony; who oppose all or any rates, and thereby prevailinge, by - their deluded adherents in overpowering the more prudent and loyall - partys in such towne and place, to the frustration of the most - necessary and needfull ends for which such rates are levied." - -Footnote 69: - - Arnold I, 356. - -Footnote 70: - - It does not seem quite clear whether this provision means merely that - each town should be represented, or that each town should have its - full representation. Arnold (I, 365) thinks the latter. When the tax - of 1673 was levied no deputies are recorded as being present from New - Shoreham (Block Island) or Westerly. The great distance in the one - case and the interference of Connecticut in the other, rendered - attendance from those towns very uncertain and may have caused their - absence to be necessarily disregarded. Only five deputies from Newport - and one from Warwick however are reported as "engaged." This would - make it seem doubtful if a complete representation was actually - required. An act of April, 1678, (R.I. Col. Recs. III, 6.) repealed - this act of 1672, and provided that the general assembly should - consist (as provided in the charter) of the governor or deputy - governor with six assistants, "and soe many of the freemen as shall be - elected in each respective towne, x x x or the major part of them then - present," who should have to make laws and levy taxes, provided - however that no tax should be levied without notice given to each - town, that the "townes may accordingly by their representatives give - their due attendance." A year later the restriction was removed and - the assembly resumed its old powers. (R.I. Col. Recs. III, 53). - -Footnote 71: - - Arnold II, 502: Under the Andros government (in the case of the per - centage taxes and the £120 tax ordered in December, 1688) a return - seems to have been made to the system of assessment by town councils. - A copy of a warrant, dated July 20, 1687, from John Usher, treasurer - and receiver general of his majesty's revenue in New England, to the - constable and selectmen of Providence is preserved among the papers of - the historical society. The constable is ordered to call a town - meeting for the choice of a "commissioner" who, with the selectmen, is - to make a list of all males over sixteen and "a true Estimation of all - reall & personall Estates," as provided in the act of Andros and - council, and then to assess a poll tax of 1s. 8d. (members of his - majesty's council exempt) and a property tax of a penny in the pound. - The commissioner was then to meet with the commissioners of the other - towns of the county (Rhode Island), when as a body they were to - "examine x x & correct & perfect" the rate lists according to the true - meaning of the act and transmit the result to Usher, together with the - names of the constables in each town to whom warrants for collection - were to be issued. I have not been able to find the act of Andros and - his council here referred to, but it seems to have included the - provisions contained in the warrant and also a table of values at - which the different kinds of property were to be estimated. It is in - these taxes levied by Andros that we first meet with the poll tax - which was soon to become a part of the regular system of taxation - adopted by the colony. - -Footnote 72: - - These proceedings are to be found in the town records Vol. III, p p. - 12-15. A table of values such as that given in the text was not always - adopted when a rate was to be levied, but the rate of assessment seems - often to have been left to the discretion of the assessors. In the - case of the £160 rate of 1684 a committee was appointed to "Consider - what lands may be deemed Rateable." The committee report "That all - Meadowes & Orchards & all other improved lands what so Ever it is yt - is inclosed, is Rateable, and as for Cattell, That all Sorts of - Cattell upward of a yeare old are Rateable," but no table of values is - reported. The number of assessors varied from three to five. They were - prominent men of the community and there was a tendency to reelect the - same individuals for the service. In a list of twenty-two assessors - appointed between 1678 and 1687 there are only eleven different - individuals. - -Footnote 73: - - The following is the account of the rateable estate of Daniel Abbott, - like Whipple a prominent citizen. "My house & Land at home, & yt in ye - neck that seem to be fenc't, and ye 3d part of a share of meddow in my - Custody wth ye demolished orchard of Tho. walling. 2 Cows, one of them - farrow, a of 3 yeares & vantage steers one horse, & one Maire 5 poor - swine and as oe household-things you may be pleased to vew them - yorselves, we have but one poor bed of or owne Saith Daniell Abbott - Memoorand a yoak of oxen yet." An entry on the back of this list shows - that about 290-1/2 acres of land had been laid out to Abbott, more - than the usual amount it would appear. Much of it was probably wild - land. An entry in the colonial records (II, 415), in 1671, shows us - also the character of property at the time. The inhabitants of - Westerly petitioned the assembly to send thither persons to take an - "inventory of their personal estate." The assembly accordingly - delegated certain persons to "take an exact inventory of the personal - estate of each inhabitant, consisting either of house, household - stuff, goods, cattle, horse kinde, or any other chattels whatever." - -Footnote 74: - - "The first grand period of Rhode Island history, the formation period, - was ended. The era of domestic strife and outward conflict for - existence, of change and interruption, of doubt and gloom, anxiety and - distress, had almost passed. The problem of self-government was - solved, and a new era of independent action commenced". (Arnold I, - 519) - -Footnote 75: - - The exemption was granted in 1690. (R.I. Col. Recs. III, 274). It - would seem to be uncertain how long it lasted as in 1707 (Ib. IV, 24) - a law is passed exempting the "Governor x x x; his dwelling house" and - its conveniences from taxation during his term of office. The other - legislation during the period in regard to the payment of public - officers was as follows. In 1698, the governor's salary was increased - to £30 and, in 1701, to £40. In addition the assembly in many years - voted him a gratuity, amounting sometimes to as much as his salary. In - 1695 deputies were allowed, apparently out of the general treasury, - 3s. a day, with a double fine for non-attendance. In 1698, the towns - were ordered to pay the deputies, but in 1703 it was again ordered - that they be paid out of the colony treasury. On account of the - increasing revenue the treasurer's fees were reduced to one shilling - in the pound in 1698, and to six pence in 1705. Before 1702, the - agents were inhabitants of the colony, sent over to England by the - assembly. In that year Penn, then in England, was intrusted with the - interests of the colony. He employed for the purpose a solicitor, - William Wharton, at £40 a year. In March, 1708-9, the assembly granted - Wharton £30 a year additional for past services, to cover expenses, - and appointed him agent for the future with £80 a year salary. - -Footnote 76: - - It seems to have been intended to send the money to aid other - colonies. In July, 1695, the rate was to a great extent uncollected, - however, and none of it seems to have been applied to the purpose - intended. With the exception of the May and June sessions of 1691, and - August, 1692, no records of the assembly are known to exist, for the - period October, 1690, to July, 1695. - -Footnote 77: - - During this period however the colony seems to have run into debt, - which was defrayed out of future taxes. - -Footnote 78: - - The loose way in which the treasury accounts were kept does not permit - us to show exactly how much of the revenue went for each of these - objects. It is possible to make an estimate of some value, however. - After the governor's salary had been increased to £40, and including - the special grants frequently made to him, the payments made to the - legislative and executive officers amounted, probably, to about £150 a - year. The payments made to agents for the period 1695-1710, were - probably not far from £1,000. The whole cost of the civil government, - including the support of the agent, seems on the average not to have - exceeded £500 a year. It was probably under rather than over that - amount. The remainder were military expenditures, the most important - being on account of the expeditions of 1709 and 1710. - -Footnote 79: - - This census is included in a report, containing quite a full account - of the condition of the colony, sent by Governor Cranston to the Board - of Trade in reply to their inquiries (R.I. Col. Recs. IV, 56). It - probably cannot be depended on for accuracy, and would seem to be - rather an under estimate. Some years before the militia, which is here - given at 1362, had been estimated at 2,000. This however was doubtless - too high. - -Footnote 80: - - This law had principally to do with the administrative side of - taxation. It was doubtless established by custom that all property was - taxable. The tax law as it stands on the statute book today is hardly - more than administrative; as in 1703, everything is supposed to be - taxable, except what is specially exempted. - -Footnote 81: - - A committee was appointed to draw up a law for valuing lands and - cattle, and if upon examination it was found that any town had been - overrated a rebate was to be allowed to it out of the next tax. The - committee reported the present law sufficient, and the only additional - legislation at this time was a grant to the magistrates to "regulate - anything appearing defective" in the law, and the provision that the - treasurer of each town should be regarded as the deputy of the general - treasurer. - -Footnote 82: - - R.I. Col. Recs. III, 300. The magistrates were ordered to call town - meetings "with all expedition for choice of the "three men." It was - further ordered "that there be a Commissioner chosen in each town, to - meet with the men that shall be chosen in each town, to assess the - said rate of two pence per pound, and to adjust the proportions, and - sign with each Committee, and return the same to the General - Treasurer." It will be remembered that there was a tax officer with a - similar title at the time of the Andros government (note 71), His - duties were different from those of the present commissioner. In fact - it is difficult to see how the latter differed from the other three - men referred to. The number of assessors does not seem to have been - definite. In the case of the penny in the pound tax of 1695, the towns - were to choose "two or three" men and the following year they were to - choose as many as they should see fit. In the case of both taxes in - 1695, tables were adopted stating the amount of tax to be collected on - certain kinds of personal estate, not the valuation of the estate as - in the table given on page 22. The following is the table adopted for - the penny in the pound tax: - - Oxen, four years old and upwards, at three pence per head 00 00 30 - - Steers, three years old, and all cows at two pence per head 00 00 20 - - All two year old, a penny per head 00 00 10 - - All three year old, at half penny per head 00 00 01 - - All sheep at one year's old and upward, at five pence per 00 00 50 - score - - All swine above a year old at a half penny per head 00 00 01 - - All horses and mares above three years old, at three pence 00 00 30 - per head - - All two years old horses and mares, at one penny per head 00 00 10 - - All year olds, at a half penny per head 00 00 01 - - All negro men servants, per head 00 01 80 - - Negro women servants, per head 00 00 100 - - It is evident that the property in the above table is taxed on its - value and not on the yearly profit and, in want of further - information, it would be unsafe to infer that the provision for taxing - lands, houses, and trademen according to profit was intended to - introduce anything in the nature of an income tax. What evidence we - have tends to show that the tax was assessed not on profits, but on - the value of the property, in determining which value the yearly - profit was probably the most important consideration. - -Footnote 83: - - The best account of the commerce of the colony is to be found in the - report to the Board of Trade in 1708, already referred to. (note 74) - The land on the island had been well taken up by this time and the - younger generation in that part of the colony was betaking itself, in - the words of the report, "to trades and callings," especially to - navigation for which their situation so well fitted them. Twenty-nine - vessels were now owned in the colony in place of the four or five of - twenty years before, and all but two or three were owned in Newport. - Ship building also became an important trade, no less than eighty-four - vessels having been built in the colony from 1698 to 1708. Direct - foreign trade existed with the Bermudas, the West Indies, Madeira, - Fayal and Curacoa, the colony sending out lumber, beef, pork, dairy - products, horses, cows, onions, cider, rum, and, sometimes money, and - receiving in return sugar, molasses, cotton, ginger, indigo, pimento, - rum, English goods, Spanish iron, brasalleta, wines, salt and cocoa. - Some of these articles, together with the products of the colony, were - taken to all the coast colonies to the South who gave in return, rice, - pitch, tar, turpentine, valuable woods, skins, flax, pork, grain, and - rigging. With England the colony had no direct trade but received most - of its English goods through Boston, paying for them in dairy products - and money. It was estimated that £20,000 in cash was annually sent to - Boston on this account. It is evident that the colony had entered upon - a new phase in its economic development. - -Footnote 84: - - The records of Providence do not show but the provision was complied - with. - -Footnote 85: - - The poll tax as we have seen was introduced under Andros, but does not - seem to have been assessed since his fall. It must be remembered that - the present act was not a general law (see p. 33). How the law of - October, 1699, (note 88) may have affected this question we do not - know. The law of January, 1703-4, is chiefly administrative and makes - no mention of a poll tax, and it would hardly seem to fall under the - law of May, 1704. (Note 90). It seems probable on the whole that the - poll tax was not as a rule assessed. The wording of the law in 1707, - exempting the governor from taxation might seem to imply that a poll - tax was assessed, (see note 75) - -Footnote 86: - - Indians had been exempted as early as 1672. (R.I. Col. Recs. II, 436) - -Footnote 87: - - For this law see R.I. Col. Recs. III, 343, et seq. If those appointed - to take account of estates neglected the work they were to be fined - twenty shillings. - -Footnote 88: - - The most important of the modifying laws seems to have been passed in - October, 1699. It is referred to as the model law in subsequent acts - assessing taxes before January, 1703-4. This law is unfortunately not - preserved in the records, but references go to show that it did not - essentially modify the administrative features of the law of the - previous year. By act of August, 1702, any assistant or justice - neglecting his duty under the act was made subject to a fine of £20. - -Footnote 89: - - For this law see R.I. Col. Recs. III, 484, et seq. The likeness to the - present law is seen still more fully in some of the details of - administration which have not been changed since that time. Later some - of the towns seem to have been divided into districts and constables - assigned to, and held responsible for, each district. The fine imposed - on an assessor for neglect of duty was 40s. - -Footnote 90: - - R.I. Col. Recs. III, 501. The oath was as follows: "You A.B., do, on - your solemn engagement, hereby declare the accounts and list as you - present of your estate, is the whole and true account of all your - rateable estate, as to your knowledge you know of (or is in your care - and custody), and this you declare to be the truth, and nothing but - the truth, upon the perill of the penalty of perjury". The same act - declares that what is rateable estate shall be known by the act of - 1698. That act contains on the subject only what is given in the - previous pages. I have unfortunately found no return of estates by - individuals for this period, but there is no reason to suppose it - different from what it was before or after; that is, it included - everything with the possible exception of clothes and necessary - household furniture. - -Footnote 91: - - There were some three or four such returns ordered in all and severe - penalties were sometimes enacted for neglect. Complaints against the - apportionment among the towns do not seem to have been frequent, - though there are one or two instances of dissent on record. - -Footnote 92: - - As earlier, the difficulty was political rather than economic. There - seems to have been in the colony at this time a party, how strong it - would be difficult to say, in sympathy with the efforts to curtail the - charter privileges. There were also disputes between the towns as to - boundaries, while the colony dispute with Connecticut was not settled - until 1703. In 1700 the sheriff while attempting to collect a tax in - Westerly was carried off to Connecticut. It is worthy of note in - connection with this difficulty of collection that the severity of the - penalty seems to have had little influence. The assessors or - collectors were not infrequently made responsible for the whole tax in - case of neglect, but taxes were not promptly collected until - government had become firmly established and could rely on the united - support of the people. When it was strong enough to enforce the - penalties, the necessity had passed away. In the copy of the laws sent - to Bellemont in 1699, the sedition act (see page 20) seems to have - been included, though repealed nearly thirty years before. The act was - again repealed in March, 1702. - -Footnote 93: - - The first mention of the constables fees for collection which I have - seen was in 1684, and allowed two shillings on the pound. As long as - this lasted collectors' fees alone eat up ten per cent of the tax, but - by the law of January, 1703/4, the fees were reduced to one shilling. - Assessors were paid by the day, the amount varying from two to five - shillings. The act just referred to placed it at two shillings and six - pence, and a law of 1705 provided that no rate maker should charge for - more than three days. The most full and detailed statement of loss on - the articles in which taxes were paid, is in the accounts of the - treasurer under Andros. It was as follows: Loss by 935 bushels of corn - and rye £20-0-10, by 9 ferkins of butter £1-12-1. Twelve bushels of - corn had been sold and delivered but no payment had been made. In - addition there were the following expenses and losses: Freight £5-3-4, - warehouse room for 1300 lbs. of wool £1, turning corn ten or twelve - times 18s., "275 lbs. of wool taken out of my house £9 3-4." "Money - taken out of Major Goulding's house £32-10-0." As the total receipts - did not exceed £230 it will be seen that expenses and losses eat up a - good part of the revenue. They were in this case probably far larger - than usual, but they must always have been considerable in amount, - while no satisfactory money existed, in quantities sufficient for the - needs of the community. - -Footnote 94: - - R.I. Col. Recs. III, 357, et seq. The proceeds of the tax were to be - for the poor, highways and bridges. It was indeed a town and not a - colony tax. - -Footnote 95: - - R.I. Col. Recs. III, 421, et seq. - -Footnote 96: - - R.I. Col. Recs. III, 438. - -Footnote 97: - - The amount received as stated in the report on the treasurer's - accounts in 1711, was £2,032-19-2. The amount outstanding on bonds - given for land was £1,523-17-5. Arnold (Vol. II, p. 37, Note) says - that the report of a committee, subsequently made, shows that - £3,795-15s.-10d. was received at the rate of about 1s. 6d. per acre. - -Footnote 98: - - In 1709, four ferries were leased for seven years at an annual rental - of £4. This is the last record that I find of any payment made to the - general treasury. "Leases" were afterwards spoken of, but these seem - to refer simply to grants of the right of ferriage, bonds being - required for the observance of the law in regard to ferries. In 1748, - the colony purchased two of the ferries but does not seem to have been - successful in its enterprise and sold them again in 1750. - -Footnote 99: - - In 1837, Mr. E. R. Potter published a pamphlet entitled "A brief - Account of Emissions of paper money made by the Colony of Rhode - Island". It has been reprinted with additions in the "Historical - Sketches of American Paper Currency" (first series) by H. Phillips. - This little work contains about all the facts which are accessible, - including the reports made to the General Assembly, and much that - relates to Massachusetts and Continental money. In 1880, it was - reedited and enlarged by Mr. Sidney S. Rider, and published as number - eight of the Rhode Island Historical Tracts. Mr. Rider has added an - almost complete list of the fac similes of the various issues, but has - omitted other portions which are of more value to the economic - student. - -Footnote 100: - - Provision was made for sinking these bills by an annual tax of £1,000, - (R.I. Col. Recs. IV, pp. 100, 106, 150) The law however does not seem - to have been vigorously enforced and in some instances the taxes - collected were diverted to other purposes than that intended. Five - payments of this annual tax are entered on the credit side of the - treasurer's accounts, the last being in 1715. In that year the first - bank was issued and the sinking annually of £1,000 of the earlier - bills was one of the purposes to which the interest was to be applied. - The provision was not carried out. No further taxes for the purpose - seem to have been collected. From the manner of keeping accounts at - that time, it is not quite clear whether those taxes entered as - received in the treasurer's books had been actually received in full. - Up to 1715, only £1,102-8s. 6d. had been burnt. As regards the legal - tender character of this and future issues there seems to be some - uncertainty. The bills of the first issue of £5,000 emitted in 1710, - read "This indented bill x x x shall be equal in value to money, and - shall be accordingly accepted by the general treasurer and receivers - subordinate to him, in all public payments". The law as printed in the - colony records (Vol. IV, p. 96) makes no further reference to the - subject of tender, but, as printed in the Digest of 1744, (p. 43) - enacts that the bills "shall be received and paid for the same value - and equal to the current Coin passed in this Colony, for Goods or any - other thing bought or sold in all Payments to be made whatsoever; - (Specialties only excepted)". In the other issues of 1710 and 1711, it - is provided in some cases that the bills shall pass in "all Payments", - in other cases that they shall pass in "all publick Payments" as the - bills of the first issue do. The bills of the bank emitted in 1715, - were declared to be of the same tenor as those of former issues, but - in the same year there was passed an act "making public bills of - credit of this colony, to be lawful pay, on tendering the same for all - bonds and specialties." This caused so much opposition that in the - following year it was repealed and the act declared to extend "to no - other bonds and specialties that what mention current passable bills - of credit of this colony, or of any of the governments of New - England." (R.I. Col. Recs. IV, 210) The other bills emitted up to - 1740, were "of the same Tenor" as those previously issued. The act - emitting the bank of 1740, declares the bills equal to silver at 6s. - 9d. per ounce and that it "shall be accordingly accepted by the - Treasurer, and the Receiver thereof, in all Payments." (Dig. 1744, p. - 230). In the following year 6s. 9d. of this "new tenor" was declared - equal to 27s. of the previous issues or "old tenor", and a sufficient - tender for the same in all payments. Courts of Justice were to govern - themselves accordingly. (Dig. 1744, p. 237). Subsequent issues until - 1750, were in accordance with these acts. The most severe of the laws - to enforce circulation was passed in connection with the issue of - March, 1750. (Digest 1752, pp. 86, 99). The act recites that the - depreciation of the bills of credit is due to "illegal Practices" in - "offering from time to time, for Gold and Silver, and Bills of - Exchange, for Sterling Money," larger sums in bills than was stated in - the acts of emission. The new bills were declared equal to silver at - 6s. 9d. per ounce--to 16s. "new tenor" and to 64s. "old tenor". Any - person who should receive or pay bills of credit at any higher rate - for gold, silver, or bills of exchange, was to be fined £50 in the new - bills. In case of suits for money due (specialties excepted) the - courts were to make their judgments in accordance with the above - values. Clerks of courts were forbidden to issue execution or process - on any judgment in favor of any person until such person should make - oath that he had not violated the above law. No person could enter a - public office without taking the same oath. Foreigners coming into the - colony to trade were required to take the same oath under penalty of - £50. In August, 1751, (Acts and Laws of Rhode Island 1745-1752, p. - 104), probably in accordance with the act of Parliament already - referred to, it was provided that in all debts which should come due, - for every sixty-four shillings appearing to be due in old tenor, - sixteen shillings in new tenor, and six shillings and nine pence in - the present bills, the debtor should pay as much in any of the - afore-mentioned bills as should at the time be worth one ounce of - silver sterling. - -Footnote 101: - - The expenditure for the year ending June, 1718, was £818-3s.-3-3/4d. - The more important items were as follows: - - Public buildings (court house and jail) £206-0-0 - Salaries (including £20 for gunner) 180-0-0 - Bounties on wolves 62-10-0 - Cost of revenue (treasurers' fees) 54-8-4 - Agent 66-19-4 - Weybosset bridge 30-0-0 - - The items however vary very much from year to year. The payment for - the wolf bounty is in this year unusually large. In several years the - cost of printing and loaning the paper money is considerable. In the - year 1715, the expenditure for that purpose was about £300. The growth - of the colony necessitated the erection of colony court houses and - jails. Before 1729, however, there were only two counties, the number - being increased to three in that year, and the buildings required were - of a very primitive kind costing as a rule considerably less than - £1,000. The fort was a considerable item of expense; it was rebuilt so - as to be able to mount sixty guns though not much more than half that - number seem to have been supplied. Previous to 1739, £6,000 in bills - were issued to meet the expenses of the fort, and, in the case of - several of the banks, the fort is mentioned as one of the purposes to - which the interest is to be devoted. In 1739, the assembly ordered the - erection of a brick colony house at Newport, which from the - treasurer's accounts appears to have cost over £20,000. The agent - remained a considerable source of expense. Among the papers in the - state house at Providence is preserved the itemized account between - the colony and its agent for the period 1715-1746. The amount - transmitted to the agent during that period was £4,562-15-10 sterling - and there was a balance due of £438-15-5. The agent's salary was only - £40 per annum. The principal expense was incurred in opposition to the - "molasses act" which passed parliament in 1733, and in connection with - the boundary dispute with Massachusetts. The agent also made some - purchases of military stores for the colony. Some of the agent's - charges throw an interesting light on the character of political - methods in England at this time. "To money given Lord Presidents and - other Noblemens Servts. when I waited on them Sundry times about the - committees report x x 6-1-6." Another charge is for a fee given at the - Board of Trade "on the Report for Stores, being in our favor 21-0-0". - In 1720, also the colony sent a special agent to England at an expense - of over £800 in paper money. As regards salaries, I have found no - legislation in regard to that of the governor subsequent to what has - been already mentioned. (Note 75). The treasury reports show that - after 1711, it was customary to grant £100 a year. He also received - gratuities from time to time, in some instances as large as his - salary. In 1729, he received £200 in recompense for all services and - in 1731, £300. The Colonial Records show that like grants were made in - 1732, 1736, and 1744. Douglass (in his Summary) writing about 1750, - says that the governor's salary was then £300, and that with - perquisites it did not exceed £1,000. The only explanation of - "perquisites" which I have found is by an act of October, 1732, - (Digest 1744, p. 169) by which the governor is allowed 5s. for each - commission signed, and for taxing Bills of cost 2s. 6d. He also seems - to have enjoyed a share in prizes. About 1715, it became customary to - grant the deputy governor £20 for his year's service. In 1722, his - salary was fixed at £30. Like the governor he was frequently granted a - gratuity, sometimes as large in amount as his salary. In 1736, and - 1744, he is allowed £50 and Douglas states his salary as the same as - that of the governor. A law of 1721, granted the assistants a salary - of £10 and the deputies 6s. a day, the latter to be paid by the towns. - By an act of 1746/7 this law was repealed and these officers remained - without pay. By law of 1729, the treasurer was given a fixed salary of - £100 which was doubled two years later. Gratuities were sometimes - granted for the labor entailed by paper money. He was required to give - bonds in £20,000. No other officers received a stated salary. The - payments made to them out of the treasury were sometimes comparatively - large, those made to the secretary in some instances being from £100 - to £200. - -Footnote 102: - - The population at the periods named was as follows, 1730, 17,935; - 1748, 32,773; 1755, 40,414; 1774, 59,707. According to the report made - by the governor to the Board of Trade in 1740/1 over one hundred and - twenty vessels were owned by inhabitants of the colony, "all - constantly employed in trade, some on the coast of Africa, others in - the neighboring colonies, many in the West Indies, and a few in - Europe." Accompanying this economic development we find a rapid - progress in wealth as shown in the great increase of comforts and the - introduction of luxuries, and a greater diversification of industries. - Many persons in the middle of the century left personal estates of - from £1,000 to £2,000 in value aside from all real estate. An - excellent and detailed account of this development may be found in - Dorr's Planting and Growth of Providence. R.I. Hist. Tracts, No. 15. - -Footnote 103: - - These bills were termed "new tenor" in distinction from the former - issues or "old tenor." One shilling of new tenor was declared equal to - four shillings old tenor. Acts and Laws 1744, pp. 226, 230. - -Footnote 104: - - At the time of this issue an ounce of silver was declared equal to 6s. - 9d. of the new bills, to 16s. new tenor and 64s. old tenor. Acts and - Laws 1745-1752, p. 99. - -Footnote 105: - - In the case of Bank IX repayment was to be made in five annual - installments, interest to be paid until the last installment (Ibid - 85). To what extent the interest from these loans was the only source - of revenue can be seen from the following table. The first column - states, for the period given, the average annual amounts received from - interest bonds as shown by the treasury books, and the second column - the total receipts for the same periods, exclusive of money issued to - the treasurer to exchange torn bills. The amounts are all given in old - tenor value. - - 1716-1728 £1,999 £2,118 - - 1729-1731 3,984 4,082 - - 1732-1733 6,817 6,853 - - 1734 12,000 12,108 - - 1735-1738 10,000 10,249 - - 1739-1741 15,000 15,004 - - 1742-1743 13,200 (1739) - - 1744 8,200 Direct issues of money - and receipts from taxes, - loans, &c. render - interest money a - comparatively - unimportant source of - revenue after 1739. - - 1745-1748 14,600 „ - - 1749-1751 9,000 „ - - 1752-1754 18,251 „ - - 1755-1762 11,851 „ - - 1763 9,841 „ - - 1764 7,111 „ - - 1765 4,741 „ - - The above sums do not include £2,000 emitted in 1728 for use on the - fort. Portions of the bills emitted to exchange torn bills seem to - have been turned from that purpose to meet ordinary expenses. In June, - 1726, £46,634 were emitted to exchange £5 and 40s. notes, but only - £30,383 seem to have been applied to that purpose. (See report of - 1739, given in Potter's history.) This seems to be the only important - instance. - -Footnote 106: - - These figures are taken from a report made by Governor Ward to the - Board of Trade (R.I. Col. Recs. IV, 8). It is stated in the same - report that the then value of paper money in silver was 27s. per - ounce. The value of sterling silver is reckoned at 5s. 3d. per ounce. - On this basis the sterling value of the £340,000 would be £77,777, - instead of £88,074. If we estimate the population at 25,000 this would - give a nominal per capita debt of £13 12s. or in sterling £3 2s. or £3 - 5s., according to the estimate which we adopt, a large amount in - either case. Redemption, it must be remembered however, was to be - accomplished not by taxation by repayment of loans on the part of the - citizens. There is reason to believe the actual amount outstanding - exceeded £340,000. We must also add about £12,000 (nominal) of bills - not loaned but issued directly from the treasury and redeemable only - by taxation. (See text and succeeding note) - -Footnote 107: - - The first bank expired in 1728 and repayment by ten annual - installments should then have begun. In 1732, £1,066 was due on the - second installment, and none of the third was accounted for (R.I. Col. - Recs. IV, 476). In some instances persons had neglected altogether to - give tenth bonds, as they were called. In 1741, there were five - hundred and forty-nine suits on bonds and mortgages in six towns in - Providence County. In 1742, one thousand and forty more suits were - instituted. The aggregate amount of the latter being only £3,880, - which would show that the bonds were taken up in small quantities. - (Rider's edition of Potter, p. 56). An examination of the accounts of - the grand committee which had charge of these banks shows - approximately the amounts (old tenor value) outstanding at the dates - given. The second column shows the amounts legally outstanding: - - August, 1749 £ 459,000 £ 420,000 - March, 1750/1 426,000 360,000 - February, 1753 398,000 302,000 - August, 1759 218,000 120,000 - August, 1762 129,000 48,000 - - In these statements bank IX which amounted to £237,000 old tenor is - not included. All loans should have been repaid in 1767, but a report - of May, 1770, shows that £92,615-15-7 was still outstanding. These - figures of course do not show the exact amount of the bank money in - circulation, but the amount of loans unpaid. Between 1770 and 1775, - there is record of £95,144 old tenor burnt. - -Footnote 108: - - There are several points not clear in this report. In the first place - it does not agree with the report of 1739, which, from a comparison - with the yearly treasury reports, I believe is correct. The present - report places the amount of bills issued to supply the treasury before - 1739, at £106,300, and the amount burnt before that time at £88,329. - In the second place it states the amount of the bills to supply the - treasury, issued between 1739 and 1749, as £206,000 (old tenor value) - whereas the records and treasury reports show £219,600. If we adopt - the report of 1739, to that date, and rely upon the records and - treasury reports after that period we have the following result. - - Bills issued to supply the £ 336,611 old tenor value. - treasury previous to 1749 - - Burnt during same period 194,429 - - --------- - - Outstanding January, 1749/50 142,182 - - Of which there were in the 24,891 - treasury - - --------- - - In circulation 117,291 per cap. of population £3 11s. - - Sterling Value at 11 to 1 10,663 per cap. of population 6s. 5d. - - These bills must be redeemed by taxation. There were also actually - outstanding probably from £430,000-£440,000 of bank money, of sterling - value of about £40,000. Adding these amounts we should have a nominal - per capita debt of £16 15s. sterling £1 10s. 7d. Douglas in his - Summary (p. ) estimates outstanding bills (old tenor value) of the - colonies in 1745, as follows: - - Massachusetts £2,466,612 - Connecticut 281,000 - Rhode Island 550,000 - New Hampshire 450,000 - - A committee petitioning the king against further issues in September, - 1750, places the amount outstanding at £525,335. (R.I. Col. Recs. V, - 312) - -Footnote 109: - - In addition to the taxes specifically levied for continental purposes - the state before June, 1779, has paid to the U. S. out of state taxes - £30,000 in accordance with the requisition of congress made in - November, 1777. The £6,000 tax in May, 1781, was to redeem one sixth - of the new continental money issued by the state. £8,640 of the tax of - June, 1783, was appropriated to pay interest on the United States - debt. Of the tax of June, 1784, one fourth was to be paid in United - States interest certificates, and £12,147-6-4 was appropriated to meet - a requisition of congress of the previous April. The whole of the tax - of June, 1785, was afterwards appropriated to pay the interest on the - national debt. But little coin seems to have been received, taxes - probably being paid in evidences of debt. Two facts should be - remembered. 1. These taxes, particularly those assessed after the - close of the war, were not promptly paid. 2. The war expenditures of - the state itself were regarded as national expenditures, the accounts - between the state and the central government to be settled in the - future. - -Footnote 110: - - Rhode Island bore more than her share of war expenditures see p. - -Footnote 111: - - In the volume of acts and Laws published in 1730 (p. 42) appears a law - providing that rates should not be applied to any other purpose than - that for which they were levied. Several special enactments to this - effect had been passed during the previous period. - -Footnote 112: - - Volume of Acts and Laws, 1744, p. 219. Peddling from house to house - had at first been subjected to a tax and finally forbidden altogether - in 1728. A law of 1750, made it lawful for the assessors in any town, - on notice from two freeholders, to enquire into the quantity of - European goods sold by Foreign traders, and assess them "at their - Discretion according to the Largeness of their Trade," for the use of - the town. The assessor not complying was discharged from office. This - law stands in the Digest on 1767 (p. 243) except that the limitation - to "European goods" is omitted. - -Footnote 113: - - Volume of Acts & Laws published in 1744, p. 295. - -Footnote 114: - - The three points to be noticed in this law are: 1. the assignment of - fixed and uniform values to the more important kinds of personal - property; 2. the evidence of the beginning of the development of - intangible species of personal property; 3. the use of the tax - machinery to encourage the growth of mercantile pursuits. - -Footnote 115: - - The Digest of Laws published in 1767, contains no mention of the poll - tax, but, as has been said, its assessment was usual. In the case of - some taxes assessed before 1767, no poll tax was mentioned, and in - some cases when mentioned the amount was not specified. It is probable - however that the poll tax had become an established part of the town - assessment. The limit of age varied in the earlier acts but finally - settled as above stated. The only exemptions were in the case of - settled ministers of the gospel, except during the Revolution when the - exemption was extended to officers and men in the regular army or - naval service. In the tax act of February, 1780, the assessors were - empowered "to consider the circumstances of the Poor, in their - respective Towns, and exempt from the poll tax such as they think - unable to pay the same." This provision was re-enacted in every tax - act until the poll tax was repealed in 1808. In several of the tax - acts during the Revolutionary period the towns were empowered to fix - the poll tax at such sum as they should see fit. - -Footnote 116: - - Page 219. - -Footnote 117: - - Schedules March, 1769, p. 2. - -Footnote 118: - - Schedules June, 1782, p. 27. - -Footnote 119: - - They first appear enumerated among the regular town officers in the - Digest published in 1767. As a matter of fact they seem to have come - into existence some years earlier. - -Footnote 120: - - Schedules p. 79. - -Footnote 121: - - Real Estate in Rhode Island enjoyed peculiar privileges and does not - seem to have been included in property, liable to action by distraint, - unless by special enactment. The first law in regard to lands owned by - non-inhabitants, was passed in February, 1747. (Acts & Laws 1745-1752, - p. 47). It merely recites the difficulty of collecting taxes on such - lands, used only to grow grass, hay, or corn, which was carried away - once a year and authorized distraint on the goods and chattels of the - owner or occupant, corn, hay, or grass, within the same county where - the lands lay. In September, 1757, (Schedules p. 62) it was provided - that unimproved lands owned by non-residents might be sold for - non-payment of taxes. In 1767, the same provision was applied to - unimproved lands owned by non-residents, when not inhabited, and in - October, 1782, (Schedules p. 16) it was extended to all lands owned by - non-residents. An act of May, 1777, authorized the collector to sell - the wood and stone on any unimproved land, the owner whereof resided - in another town and neglected to pay the tax assessed. (Schedules p. - 44) After the evacuation of Rhode Island by the British there were - many persons in the island towns possessed of considerable real estate - but very little personal property. In case the latter was not - sufficient to pay the tax on the real estate, the collectors were - authorized to sell so much of the real estate as might be necessary to - pay the tax. (Schedules May, 1781, Sec. Sess. p. 61.) - -Footnote 122: - - Schedules June, 1756, p. 40. - -Footnote 123: - - Schedules August, 1763, p. 65. Any town neglecting to pay was to - suffer a fine of double the amount of the tax. Ib. p. 65. - -Footnote 124: - - July, 1781, p. 6. - -Footnote 125: - - See tax law in Digest of 1767. - -Footnote 126: - - Schedules October, 1769, p. 69. - -Footnote 127: - - Schedules November, 1782, p. 26. - -Footnote 128: - - Collectors who made distraint were ordered to settle accounts with the - town treasurers once a month (Dec. 1781). Debts due from Great Britain - which do not seem to have been taxed during the war were declared - subject to taxation (June, 1784). One of the dangers of an unsound - financial system is shown in the order forbidding collectors to pay to - the general treasurers taxes, collected by them, in orders on the - state treasury, purchased by the collectors for a sum below their face - value. (May, 1785). To avoid careless methods of accounting collectors - were ordered, if required, to lay before the town treasurer once in - fourteen days a clear statement of the taxes committed to them to - collect, showing that taxes had already been paid. (June, 1788) - -Footnote 129: - - $4,224,178 in our present money. - -Footnote 130: - - I have been able to find no returns under this act, nor any further - mention of the act itself. It does not appear in the volumes of Acts - and Laws published in 1730, and subsequently. - - - - - CURRICULUM VITAE. - - -Henry Brayton Gardner was born in Providence, Rhode Island in 1863. He -fitted for college at Mowry and Gregg's English and Classical School, -Providence, Rhode Island. He entered Brown University 1880, and was -graduated with the degree of A.B. in 1884. He entered the Johns Hopkins -University as a graduate student in the Department of History and -Political Science, in 1884; and remained there until 1888, holding the -position of Fellow in History during a portion of the year 1887. Since -1888, he has held the position of Instructor in Political Economy in -Brown University. - ------------------------------------------------------------------------- - - - - - TRANSCRIBER'S NOTES - - - 1. Silently corrected typographical errors and variations in spelling. - 2. Archaic, non-standard, and uncertain spellings retained as printed. - 3. Enclosed underlined font in _underscores_. - - - - - -End of the Project Gutenberg EBook of History of Taxation in Rhode Island to -the year 1790, by Henry B. 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