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MR. A. W. FLUX, M.A., ON CITY GOVERNMENT AND

The division of the first impact of local taxation lier© in Manchester between the several classes of the community is here shown, and it is seen that not much over one-half falis on house property, even stretching that term to include shops and public houses. Now I may be permitted to remind you that taxation is onlv said to fall on property by a figure of speech. All laxation must fall on persons, not on things, though the share of it paid by each person is determined by his relation to certain things, such as his possession or occupation of this or that property. The question of importance in local, as in all taxation, is whether it falls equitably on the various persons affeeted by it. In the matter of local taxation, one of the principles’ which cannot be ignored in the question of equity is the benefit derived from public expenditures. Where that benefit can be so conveniently estimated as to enable a definite charge to be made for the service rendered, the service may properly be made a matter of purchase and sale, as in the supplv of gas or eieetricity. In other cases the apportionment may not be able to be precisely made, so as to justify a specific fee, though the benefit fall short of being so general as to justify its being provided on the principle of sharing the expense of providing it in the proportion of the ability of each to bear taxation. What justification, beyond the convenience of the method followed to the taxing authority, and the faet of its gradual development, there is for our rating system is found in the consideration that ability to contribute to the public outlay is roughly measured by the amount one can afford to pay for house room, so far as the amount of rates on dwelling- houses is concerned. To refer to this portion of the local revenue more particularly, there are many obvious reasons why the relative abilities of different persons differ from the pro­ portions of their house rents. A large and expensive house may be an index, not of great ability to pay taxes but, of great need to be spared taxes, becayse of necessary calls on income for other purposes, as, for instance, in bringing up a large family