the most important questions connected therewith. It is, therefore, neither an exhaustive treatise nor a mere text-book, but occupies a position midway between the two. Dr. Scharling has accomplished his purpose with unusual success. The style of his book is clear

and simple. It is remarkably free from long and involved sentences, from abstract discussions and from those peculiarities of style which often render German books difficult and oppressive to foreign readers. It is also singularly free from the elaborate and ponderous footnotes which are usually found in German treatises.

A very large proportion of the book-274 out of 371 pages — is devoted to the history of banking in Great Britain, France, Germany, the United States, Denmark, Sweden and Norway. The author justifies the employment of so much space in the elucidation of this phase of the question, on the ground that the most important principles and problems of banking, as well as the most important theoretical questions, are best revealed in the history of banking institutions. The only criticism which can properly be passed upon this portion of the book is, not that it occupies too much space, but that it does not include a discussion of several important phases of banking history and experience. In omitting the banking history of Canada, for example, the author lost the opportunity of describing a banking system which combines in a remarkable degree the advantages of centralization and of decentralization, while at the same time protecting note holders without sacrificing elasticity. The history of banking in Austria-Hungary and Italy, which is barely touched by Dr. Scharling, offers the best possible opportunity for the elucidation of the injurious effects of inconvertible government notes upon the business of banking and commerce in general.

The first part of the book contains an admirable exposition of the nature and functions of banks. The gradual development of the use of deposits as a form of currency and their great relative importance at the present time is admirably shown, as is also the nature and uses of checks and bills of exchange. It would be difficult to refer a student to any book in any language in which a better and clearer account of this part of the subject could be found. The extent to which bank currency has economized the use of coin is treated by Dr. Scharling in a much more scientific and careful manner than by most text-book writers. By means of a careful analysis of the actual need for different forms of currency, reinforced by statistics drawn from a wide range of banking experience, he has shown that, on the one hand, the claims of certain advocates of

bank currency regarding its possibilities as a substitute for coin are greatly exaggerated and, on the other, that the further extension of the use of deposits as currency in most European countries and of banking institutions in more backward countries will effect a still further decrease of the proportion of coin to other forms of currency employed without, however, diminishing the actual amount employed or without preventing a constant increase in the demand for the precious metals. Special attention should also be called to the admirable way in which Dr. Scharling analyzes deposits, in order to explain the uses to which they may be put by bankers.

The third part of the volume is devoted to a discussion of monopoly versus free banking and of private versus state banks. Dr. Scharling treats these questions in a purely concrete manner, by contrasting the relative advantages and disadvantages of the great European systems with those of the United States and certain European countries, such as Denmark and Sweden, in which the principle of free banking has been partially applied. While, in Dr. Scharling's opinion, the balance of advantage is on the side of free banking, he shows clearly that both systems have their good and their bad features, and that it would not be well to apply either system universally. At the same time, he emphasizes the fact that the tendency manifested in nearly all European countries toward the establishment of central banks with special privileges, including a monopoly of note issues, is due more to political than to economic influences. He also shows that the principle of centralized monopoly banking almost necessarily involves state banking. While the ownership of the property of privileged institutions may without difficulty remain in private hands, their control almost inevitably falls into the hands of public officials. Dr. Scharling concludes, therefore, that the evils arising from direct official interference in the affairs of banking are almost necessarily involved in the monopoly system.

On account of the constituency for which Dr. Scharling prepared his book, he very properly considered it best to place theoretical questions in the background and to treat them concretely whenever they necessarily enter into the discussion. Accordingly, the currency and banking theories are treated in connection with the history of the Bank of England, and particularly with a discussion of the act of 1844. The theory of credit is scarcely touched upon at all, the function of banks as intermediaries in the saving and investment of capital being presented in a purely concrete way. The quantity theory is also omitted from the discussion, as the author had no

occasion to employ it in his treatment of the problems connected with the various phases of the banking business.

UNIVERSITY OF WISCONSIN.

WM. A. SCOTT.

National Conference on Taxation, under the auspices of the National Civic Federation. Held at Buffalo, New York, May 23 and 24, 1901. — 185 pp.

First Biennial Report of the Wisconsin State Tax Commission. Madison, 1900. 174 PP.

First Annual Report of the Board of State Tax Commissioners (of Michigan). Lansing, 1901. — 160 pp.

Report of the Revenue Commission of Colorado. Denver, 1901.

Report and Bill of the Kansas State Tax Commission. Topeka,

Preliminary Report of the West Virginia State Tax Commission.

Report of the Committee on State and Municipal Taxation of the Chamber of Commerce of the City of New York. Submitted

October 4, 1900. New York, 1900. 36 pp. Do. Submitted

Do. Submitted January 3, 1901.

December 20, 1900.. 12 pp.
Do. Submitted May 2, 1901.

12 pp.

ber 5, 1901. 4 pp.

The interest in matters of tax reform continues unabated and is witnessed by the large number of reports mentioned in the preceding list. Of these, easily the most interesting and the most important is the Proceedings of the National Conference on Taxation at Buffalo. The conference was largely due to the efforts of Mr. R. M. Easley, the active secretary of the National Civic Federation, who found a ready response throughout the country to his suggestion that a national conference be called. Delegates were appointed by the governors of almost every state of the union, and the conference was attended not only by students of the problem on the theoretical side, but more especially by the men who are engaged in the actual administration of the revenue laws of the different states, as well as by representatives of the important interests subject to taxation. As a consequence, the papers were varied and interesting; and the proceedings were enlivened by an active discussion in which almost

every phase of the problem of present-day taxation in the United States was treated.

The important papers on general topics were read by such men as Senator J. R. Garfield of Ohio, Senator Bucklin of Colorado, Mr. Judson of Missouri, Mr. Seward and Mr. Purdy of New York, and Judge Howard of Indiana. The academic element was represented by Professor Henry C. Adams, Dr. Max West, Dr. R. H. Whitten, Professor Bemis and others. Of the special corporate interests, the bankers and trust companies were represented by Hon. C. S. Fairchild; the railways, by Mr. Davies and Mr. Hines; the insurance companies, by Mr. Hoffman and Mr. Fryer; and the farmers, by Mr. Creasy of the Pennsylvania State Grange. It was inevitable that many differences of opinion should make themselves manifest. This was largely due to the fact that the problem of taxation varies with the different conditions throughout the United States; but every one who participated in the conference left with the feeling that not a little good had been accomplished in this interchange of views and that a distinct impulse had been given to the movement for reform. The conference itself adopted resolutions in favor of the avoidance of double taxation and looking to the coöperation among the states toward this end. Provision was also made for the appointment of an executive committee of fifteen, to whom should be intrusted the arrangements for the development of a permanent organization. It is not at all unlikely that this permanent organization may decide to issue periodical reports and thus contribute to keep alive a movement which in the eyes of many is big with promise.

Of the commission reports in the above list, some were issued before the conference met, but others were published after that period and plainly bear the marks of work done at the conference. In the first class are to be put the reports of the Tax Commission of Wisconsin and of the Tax Commissioners of Michigan. These two states have created permanent boards, whose duty it is to report at each session of the legislature. The preliminary report of the Wisconsin Commission, which was published in 1898, was noticed in this QUARTERLY (XV, 634). In the first biennial report the commissioners carry out more fully some of the suggestions made in the original report. A large part of the document is devoted to the consideration of the best methods of taxing corporations. Among the broader general questions discussed are the separation of state and local revenues, which is warmly recommended, and the taxation of intangible personality. The Wisconsin Commission even say that

the time is perhaps not far distant when a better understanding of these questions will be had, and when there will be a more distinct demand than now exists, that much of the intangible property, so-called, which under existing practice is virtually exempt, shall be made expressly exempt from direct taxation.

The commissioners confess, however, that they are not prepared at the present time to recommend that personal property be released from taxation, putting their conclusion on the ground that the trend of popular opinion is not yet sufficiently strong.

The report of the Michigan Tax Commission is not so clear or so well written as that of the Wisconsin Commission. As the members were unable to agree, they have made separate reports. The president of the board shares many of the views of his Wisconsin friends, but his colleagues are content to let well enough alone. The most valuable part of the Michigan report is the full discussion of the valuation of corporate, and especially of railroad, property for purposes of taxation. The methods employed by the commission to ascertain the value of the intangible property of the railroads are well described by Professor Adams in the report of the Buffalo Conference.

Senator Bucklin is responsible for the report of the Colorado Revenue Commission, which has attracted considerable attention throughout the country because of its advocacy of the taxation of land values, in place of the complicated system at present in vogue. The report contains an interesting statement of what has been accomplished in Australia. The commission is undoubtedly extreme in its recommendations, for it opposes the inheritance tax and has practically nothing to say of the corporation tax. But to the extent that it recommends a constitutional amendment, permitting the exemption of personal property from taxation, it will have the hearty support even of those who are not prepared to go to the length of accepting the entire plan.

At the Buffalo Tax Conference the revenue officials of Indiana claimed that their system was far superior to that in the other states. Though much of this claim was unfounded, there is no doubt that the Indiana administration under the new law is more effective than was formerly the case. The members of the Kansas State Tax Commission were so much impressed by the contention of the Indiana officials that they decided to recommend the adoption of the Indiana law with reference to the taxation of corporations. The conditions in Kansas are such, of course, that the movement for the abolition of the direct tax on personalty would naturally make less headway there than in the more developed industrial states.