Page:The Economic Journal Volume 1.djvu/330

 308 THE ECONOMIC JOURNAL German finance). Taxation is generally the last form of revenue to make its appearance, and is at first used as an extraordinary resource. But when once established it tends to gain ground until it becomes the main support of the state's exchequer. So much is this the case, that for a rough test of the stage of fiscal development in any country nothing better can be devised than the proportion of taxation to other forms of revenue. The nature of early finance therefore makes it highly probable that the state, as a great land and mine owner and industrial producer, would secure for itself the supposed benefit of monopoly, such as was often sought as a fayour by private producers, and this is in fact the case. Aristotle is sufficient authority for the practice in the Greek city states, and the Roman monopoly of salt (a privilege extended to some other mines under the empire) is or ought to be known to every schoolboy.  The middle ages give further instances. The Emperor Frederick II. is credited with the establishment in Naples of monopolies of iron, copper, raw silk, wine, and salt, the latter article being also under a state monopoly in Venice, Pisa, Zurich, and from 1342 in France. The flourishing period of monopolies was under the monarchical governments of the 16th and 17th centuries. The innumerable local privileges that had grown up under feudalism were in great part absorbed in the state as represented by its personal head. The creation of monopolies in England by Elizabeth and James I. had partly a fiscal aim, since these privileges were sold at a high price; but the resistance of Parliament prevented the establishment of the 'system. In countries with less political liberty, such as Spain, Italy, and Germany, many state monoplies were set up. We hear of wheat, coffee, powder, lead, playing-cards, alcohol, and quick- silver being placed under this rgime. In the 17th century the commodity that has proved the most valuable and best suited for the purpose tobacco--was added to the list. 2 The liberating movement of the 18th century so far succeeded in destroying the greater part of these monopolies that most persons would probably regard the subject as one of merely historical and antiquarian interest. ' What,' it may be said, ' can be more opposed to.the principle of industrial liberty than for the sake of revenue to hand over the conduct of an industry to the  See Aristotle, Pol. I. 11, and lIommsen's History of Ronw (Eng. Trans.), vol. il. p. 329; vol. ili. p. 395. 2 For mediaeval monopolies, cf. Cibrario, Econom Pollfica del Medio t,2co, lib. iii. cap. 6; De Parieu, Trait4 des Impts, vol. iv. pp. 484, et seq.; Cohn, Finanzusenschaft, pp. 362, et seq.