hardship on that very large class which could only just, by constant and assiduous labour, make an income sufficient for their needs. Worst of all was it when they were unable to pay even the few shillings required; they then had to undergo the hardship and disgrace of distraint, and see their furniture seized and sold by the tax-collectors. He had therefore always wished that the income derived from customs and indirect taxation should be increased so as by degrees to do away with the necessity for direct taxation, and if this could be done, then, instead of the States paying an annual contribution to the Empire, they would receive from the central Government pecuniary assistance. The dislike of direct taxation is an essential part of Bismarck's reform; he especially disapproved of the Prussian system, the barbarous system, as he called it, according to which every man had to pay a small portion, it might be even a few _groschen_, in direct taxes. "I ascribe," he said, "the large part of our emigration to the fact that the emigrant wishes to escape the direct pressure of the taxes and execution, and to go to a land where the _klassensteuer_ does not exist, and where he will also have the pleasure of knowing that the produce of his labours will be protected against foreign interference." His opinion cannot be called exaggerated if it is true that, as he stated, there were every year over a million executions involving the seizure and sale of household goods on account of arrears of taxation. It was not only the State taxes to which he objected; the local rates for municipal expenses, and especially for education, fell very heavily on the inhabitants of large cities such as Berlin. He intended to devote part of the money which was raised by indirect taxation to relieving the rates. His first proposals for raising the money were of a very sweeping nature. He wished to introduce a State monopoly for the sale of tobacco, brandy, and beer. He entered into calculations by which he proved that were his policy adopted all direct taxation might be repealed, and he would have a large surplus for an object which he had very much at heart--the provision of old-age pensions. It was a method of legislation copied from that which prevails in France and Italy. He pointed out with perfect justice that the revenue raised in Germany from the consumption of tobacco was much smaller than it ought to be. The total sum gained by the State was not a tenth of that which was produced in England by the taxing of tobacco, but no one could maintain that smoking was more common in England than in Germany. In fact tobacco was less heavily taxed in Germany than in any other country in Europe.