ax
on land, and a capitation or poll tax, are the only levies which
within the terms of the Constitution are to be considered _direct_
taxes. The decision was one of extraordinary interest to the
Government, as, had it been the other way, one great resource for
the raising of money, indeed the greatest resource, would have been
taken from the Federal Government. The appearance of Mr. Hamilton
was an indication of the dignity and importance which were attached
to the case by Washington's Administration.

A singular feature of the proceedings was the allegation by Mr.
Hylton that he "owned, possessed, and kept one hundred and twenty-
five chariots for the conveyance of persons--exclusively for his
own separate use and not to let out to hire, or for the conveyance
of persons for hire." What particular necessity a Virginia gentleman
of the last century had for that number of chariots "for his own
separate use" is nowhere explained. It may have been the mere
filling of the blanks in a legal declaration in which the declarant
was permitted a free use of figures, but as it stands in the reports
of Supreme Court decisions, it seems to be one of the odd incidents
that make up the humor of the Law.

The system of internal duties and excises continued in various
forms for thirty years, practically disappearing at last in 1821.
But for the financial demands precipitated by the war of 1812 and
the period of depression which ensued, the system would have been
abolished at an earlier date. During the period of their existence,
from 1790 to 1820, the internal taxes had yielded to the Government
the gross sum of $22,000,000, an average of a little more than
$700,000 per annum. It thus proved a very valuable resource to
the Republic in the period of its early financial troubles.

COMPREHENSIVE SYSTEM OF TAXES.

Congress now determined under the recommendation of Secretary Chase
to use this great source of revenue to the fullest practicable
extent. Immediately after the passage of the Legal-tender Act the
subject of internal revenue was taken up, elaborately investigated
by committees, exhaustively discussed in both Senate and House.
The final result was the enactment of a bill "to provide internal
revenue to support the Government and to pay interest on the public
debt," which received the President's approval on the first day of
July (1862). It was one of the most searching, thor