From Preface to the Second Edition

Though no substantial change has been made in any point of doctrine or arrangement, the facts and figures have been thoroughly revised and brought up to date. Many important financial measures have been adopted during the last three years, and have required some notice. It is indeed, neither possible nor desirable, in a work primarily devoted to the statement of principles, to include all the transitory phases of legislative action; but the alterations recently carried out in the United Kingdom and Prussia are instructive examples of the direction of modern financial policy…. They have accordingly been described in their proper connection, and in consequence of the scientific and practical interest of the subject a chapter dealing with “death duties” has been added. A more theoretical addition is the new chapter on the “maxims of taxation,” which replaces the historical appendix in the first edition.

It is satisfactory to note that there has been a distinct revival of interest in respect to financial questions, as shown by the recent contributions to the literature of the subject, the more important of which have been duly referred to. It may without rashness be conjectured that the chief points of controversy in the immediate future will refer to local rather than to imperial finance, a statement which is applicable to France and the United States as well as our own Edition: current; Page: [x] country. The due adjustment of the two complementary systems of central and local finance will call for the efforts of skilled statesmanship guided by sound principles.

The criticisms and suggestions made by numerous reviewers and correspondents have been carefully considered, and, I hope, properly used. Among published criticisms I feel specially indebted to those by Professors Cohn, Seligman, and Farnam. Of those made privately I would particularly mention the valuable remarks by Professor Foxwell, Mr. E. Cannan, and Mr. C. S. Devas.