Page:The Economic Journal Volume 1.djvu/343

 TAXATION THROUGH MONOPOLY 321 pssenger duty. A qualification must however be made. It hs often been pointed out that, in services like the post office, monopoly s  means of economy by reducing the number of appliances needed, and what is realized in this mode is pure gain, and therefore should not be considered as a tax on anyone. Other taxes may, however, have this useful property as Mill long ago showed in reference to taxation of profits and of luxurious expenditure.  But for the purpose of judging the pressure and FINANCIAL RESULTS OF IN POST OFFICES AND TELEGRAPHS 1887, MILLION FRANCS. Countries. Germany Austria France Russia Great Britain Italy Hungary The Netherlands Belgium Switzerland Sweden Norway Denmark U.S. America Brazil Chili India Japan Receipts. Expenditure. Surplus. ' Deficit. 266'81 228'93 66'89 55'54 177'06 137'66 79'33 92'26 '217'64 148'34 42'16  35'58 23'33 18'50 12'51 9'63 15'33 9'83 21'10 19'57 9'01 8'85 3'29 3'39 6'27 6'28 253'04 274'64 5'11 12'20 2'32 ' 2'65 30'21  28'20 9'42, 12'73 37'88 11'35 39'40 69'30 6'58 4'83 2'88 5'50 1'53 0'16 2'01 12'93 0'10 0'01 21'60 7'09 0'33 3'31 tistribution of taxation, it seems, on the whole, best to consider what would be the net income under open competition, and treat only the excess, if any, under the present system as pure taxation. From this standpoint another consequence logically follows, viz. that any deficit in income, as compared with what would be obtained under free competition by private enterprise, is so far a bounty on connnunication. A bounty, be it remembered, is in Cournot's phrase a 'negative tax,' and if excess receipts be a positive tax a de-  Principles, book v. chap. iii. sect. 3; chap. vii. sect. 2. s The cost of railway carriage of mails is not charged; if it were included the surplus would be much reduced. s Expenditure on telegraphs is included, but income is not, so that the apparent .deficit is larger than the real one. No. 2.--VOL. I