on of the capital is valid; in seven, no laws establishing
banking corporations; in eleven, no laws for the incurrence of debts
excepting such as are specified in the constitution, and no excess of
"casual deficits" beyond a stipulated sum; in several, no rate of
assessment exceeding a figure proportionate to the aggregate valuation
of the taxable property. Without the Referendum, Illinois cannot sell
its state canal; Minnesota cannot pay interest or principal of the
Minnesota railroad; North Carolina cannot extend the state credit to aid
any person or corporation, excepting to help certain railroads
unfinished in 1876. With the Referendum, Colorado may adopt woman
suffrage and create a debt for public buildings; Texas may fix a
location for a college for colored youth; Wyoming may decide on the
sites for its state university, insane asylum and penitentiary.

Numerous important examples of the Referendum in local matters in the
United States, especially in the West, were found by Mr. Oberholtzer.
There are many county, city, township, and school district referendums.
Nineteen state constitutions guarantee to counties the right to fix by
vote of the citizens the location of the county seats. So also usually
of county lines, divisions of counties, and like matters. Several
western states leave it to a vote of the counties as to when they shall
adopt a township organization, with town meetings; several states permit
their cities to decide when they shall also be counties. As in the
state, there are debt and tax matters that may be passed on only by the
people of cities, boroughs, counties, or school districts. Without the
Referendum, no municipality in Pennsylvania may contract an aggregate
debt beyond 2 per cent of the assessed valuation of its taxable
property; no municipalities in certain other states may incur in any
year an indebtedness beyond their revenues; no local governments in the
new states of the West may raise any loans whatever; none in other
states may exceed certain limits in tax rates. With the Referendum,
certain Southern communities may make harbor improvements, and other
communities may extend the local credit to railroad, water
transportation, and similar corporations. The prohibition of the liquor
business in a city or county is often left to a popular vote; indeed,
"local option" is the commonest form of Referendum. In California any
city with more than 10,000 inhabitants may frame a charter for its