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Rh by heavy taxes. The industrial prosperity of the United States proves to be as burdensome to it as the armaments of the European nations are to them.

The notion seems to be that protective taxes, laid on imports, are the particular kind of taxes which make national prosperity, and which therefore ought not to be touched. It is proposed that internal taxes shall be reduced. If local taxes on real estate, etc., are reduced, every one rejoices; that is supposed to be a clear and simple gain. I have known the same man to exert himself very actively to scrutinize local expenditures, and reduce local taxes, and to boil with rage against free traders who want to reduce protective taxes. However, there is probably no tax of any kind whatsoever which does not interfere with the conditions of supply and demand, or industrial competition, in such a way as to give "protection" to somebody at the expense of somebody else. There are persons who are now enjoying great advantages in their business from the whisky and tobacco taxes which they would lose if those taxes were repealed. This is one of the incidental mischiefs of all taxation and one of the reasons for insisting that taxation shall be as slight as possible, and, to that end, that government functions shall be limited as much as possible.

We are, therefore, face to face with the question whether we are able to reduce our own taxes, and whether we are free to do so. We may fairly ask: if not, why not? It is plain that this is a question of domestic policy and of our own interest altogether. All the attempts to prejudice it by talking about "England" are impertinent, and all allegations that those of us who want to reduce our own taxes are trying "to give away our market," etc., belong to the worst abuses of political discussion. What is true is that we have built up a vast combination of vested interests, which in a few cases have, and in nearly all cases think