_Taxation._--Mention has been made above of the federal and state taxation imposed on the liquor trade. The former is uniform; the latter varies greatly, even in those states which have adopted the "high licence." This system is intended to fulfil two purposes; to act as an automatic check on the number of licences and to produce revenue. It was introduced in Nebraska in 1881, when a tax of 1000 dollars (£200) was placed on saloons (public houses) in large towns, and half that amount in smaller ones. The practice gradually spread and has now been adopted by a large number of states, noticeably the populous and industrial north-eastern and central states. In Massachusetts, where the high licence was adopted in 1874 when the state returned to licensing after a trial of prohibition, the fees are exceptionally high, the minimum for a fully licensed on and off house being 1300 dollars (£260); in Boston the average tax is £310. In New York state it ranges from 150 dollars (£30) in sparsely populated districts to 1200 dollars (£240), and in Pennsylvania it is much the same. In New Jersey, on the other hand, it ranges from £20 to £60; in Connecticut from £50 to £90; in Rhode Island from £40 to £80. In Missouri, which has a special system of its own and a sort of sliding scale, great variations occur and in some cases the tax exceeds £500. In Michigan it is uniform at £100. The mean for the large cities is £133. The revenue derived from this source is distributed in many ways, but is generally divided in varying proportions between the state, the county and the municipality; sometimes a proportion goes to the relief of the poor, to road-making or some other public purpose. The amount levied in the great cities is very large. It will be seen from the foregoing that the taxation of licences is much heavier in the United States than in the United Kingdom. The total yield was ascertained by a special inquiry in 1896 and found to be rather less than 12 millions sterling; in the same year the yield from the same source in the United Kingdom was just under 2 millions. Allowing for difference of population the American rate of taxation was 3¼ times as great as the British. It has been inferred that the liquor trade is much more highly taxed in the United States and that it would bear largely increased taxation in the United Kingdom; that argument was brought forward in support of Mr Lloyd George's budget of 1909. But it only takes account of the tax on licences and leaves out of account the tax on liquor which is the great source of revenue in the United Kingdom, as has been shown above. The scales are much lower in the United States, especially on spirits, which are only taxed at the average rate of 5s. 8d. a gallon against 11s. (raised to 14s. 9d. in 1909) in the United Kingdom. Mr Frederic Thompson has calculated out