the effect of the two sets of rates and shown that if British rates were applied to the United States the average yield in the three years ending 1908 would be raised from 44 millions to 76 millions; and conversely if American rates were applied to the United Kingdom the average yield would be lowered from 36 millions to 23 millions. Taking licences and liquor taxation together he finds that the application of the British standards for both would still raise the total yield in the United States by 39%; and that even the exceptionally high rates prevailing in Massachusetts would, if applied to the United Kingdom, produce some 4 millions less revenue than the existing taxation. Other calculations based on the consumption and taxation per head lead to the same conclusion that the trade is actually taxed at a considerably higher rate in the United Kingdom. In the three years ending 1908 the average amount paid per head in taxation was 13s. 8¾d. in the United States and 17s. 6¾d. in the United Kingdom. It may be added that the method of taxing licences heavily has certain disadvantages; it stimulates that illicit trade which is the most outstanding feature of the traffic in the United States, and combined with the extreme insecurity of tenure involved in local option it gives licence-holders additional inducements to make as much money as possible by any means available, while they have the opportunity, for no compensation is ever paid for sudden dispossession. The notion that the trade will stand an indefinite amount of taxation is a dangerous and oft-proved fallacy. _European Countries._