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52 WHO PAYS YOUR TAXES?

merce of Baltimore in the past three years has increasedat a much larger ratio than that of New York .”

Senator MURPHY: “That is because of the terminalfacilities that Baltimore affords the Baltimore and Ohio Railroad .”

Judge Arnoux: “Exactly so. While we adopt a policyof taxation that restricts and diminishes our commerce, Bal­ timore , by a wiser and more enlightened policy, stimulateshers, and with excellent results. This is the policy thatbuilt the Erie Canal and fostered the trade of New York half a century ago, which you now propose to overturn.

“ Now, gentlemen, this proposed law is a step in thewrong direction, because, instead of increasing the tax-ation on personal property in general, it should be youreffort to relieve it altogether. It is unfortunate that thedivision of property which the law has made into realand personal property should have been adopted in tax-ation, for the varieties of personal property make itunwise to put them all in the same category. Taxspecific property, and then you will act wisely. Youhave commenced this by taxing corporations in franchiseand in income; you have followed that by taxing col-lateral inheritances ; you can add to that a proper excisetax : and from these four sources—real estate, corpora-tions, collateral inheritances, and excise—there should bea sufficient revenue for the wants of this State, if itsaffairs are administered with prudence and economy.

“ There are two systems on which governments proceed