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 Review of Periodicals as to the unearned increment, especially in

the case of land,. . . it seems just that at all events a considerable portion of it should be taken by the community. . . . “Lastly, speculation in stocks and shares. . . to get possession of wealth with out earning it. . . is morally wrong, and should be branded as legally wrong." "Socialism and Human Nature." By Amber Reeves. Contemporary Review, v. 96, p. 568 (Nov.). "Even under the present conditions, the socialist movement could make use of its journalists to teach the people how to think. . . . If once they can create any sort of collective mind, any power of thinking and acting together, they will be nearer eﬁective socialism than they would be if Parliament were to pass a Fabian program within the next ﬁve years." South African Union. See Government. Stocks and Bonda. "Sale of American Securities in France." By Frank D. Pavey

North American Review, v. 190, p. 811 (Dec): "In the case of new issues, bankers and pro

motcrs who wish to offer securities for sale in the French market will do well to lay the foundation for that purpose by the insertion of suitable clauses in the bonds and mortgage which will anticipate some of the difficulties." Supply and Demand. “Elicitation: An Un recognized Law." By F. W. Orde Ward. Westminster Review, v. 142, p. 576 (Nov.). “Not merely in patent medicines, whether drugs or dogmas, do we ﬁnd the effective supply creating the demand, but in almost every department of life, and in all sections of society. Any one with the true genius can make any one else accept his creed or cure, too frequently, and pay dearly for it. It is only a uestion of patience and pressure, till the ri (ht degree of elicitation has been reache ." Tarlﬂ. "The Tariﬂ Debate of 1909 and the

New Tariff Act." By Prof. F. W. Taussig. Quarterly journal of Economics, v. 24, p. 1 (Nov.). “The most de ressing part of the new tariﬂ is in some 0 the petty items, important not in themselves but because of the mode in in which they were dealt with. A constituent secures the ear of an inﬂuential Congressman or Senator, proposes a high rate on an article he produces or wishes to produce, and gags it enacted by the log-rolling process. ere such changes concern important articles, like cottons,

woollens

silks,

hosiery,

there

is

usually some public discussion and at least pro c1forma justiﬁcation. But where minor arti es are to be affected, the new rates are quietly put through without check or scrutiny.’ “The Tariff of 1909, I." By H. Parker Willis. journal of Political Economy, v. 17, p. 589 (Nov.).

29

"This is the first of a series of three articles on the tariﬁ of 1909 which Mr. Willis will contribute to this journal. This second article is to deal with the legislative history of the bill. The third will discuss the bearing of the éariff upon the foreign relations of the United tates.’ Taxation. “Some Observations upon the Federal Corporation Tax Law." Editorial. 19 Bench and Bar 43 (Nov.). In case of those corporations whose revenues are the joint product of the property and the business activities of the corporation, "the question whether a tax on such product would be a direct tax was not decided by the Income Tax cases. It seems not unreason able to sug est, however, that if a tax on

income who ly derived from property is a tax on the property itself, a tax on income derived from the combination of capital and labor might be deemed to some extent a tax on the capital, and hence a tax on prop erty. . ..

“If the foregoing reasoning is correct, and the corporation tax is to some extent a direct tax, then, to that extent, the law is unconstitutional, and, if so, its valid and

invalid portions seem so interwoven that they can not be separated and the whole law must be declared void (Income Tax cases, 158 U. 8., pp. 635-7). “If we may assume, on the other hand, that ‘the tax is not a tax on the net income but on the franchise, the ﬁrst consideration that

suggests itself is that the corporate fran chises of most companies have been created by the state governments, and that for the federal government to tax rights thus given by the states constitutes an infringement of the powers and rights of the states, to which alone the corporationsowe theirexistence. . . . "The mere fact that a. corporation is created by a state government does not seem suffi cient to revent the federal government from taxing t e franchise of such a co oration." But in Veazie Bank v. Fenno (8 all. 533) there was a remark of Chief Justice Chase that

might “lead to the conclusion that a tax on the franchise would be a direct tax, and hence must be apportioned. If this be so, it is fatal to the present law, if that be construed as imposing a tax on the franchise and not the net income. "It has been suggested that if the tax imposed by the recent act is to be regarded as an impost or excise, it is not uniform. There seems to be no objection to the law on this ground, however. It has effect and the same effect throughout the United States, and that has been declared to be the true test of uniformity (Knowlton v. Moore, 178 U. S. 41)."

"Is the Federal Corporation Tax Constitu tional?"

By Charles W. Pierson.

Outlook,

v. 92, p. 639 (Nov. 20). Mr. Pierson takes the ground that this tax is imposed on the privilege of doing business