the current expenses of the war department, like the artillery, cavalry, infantry, and commissariat. Surely it was an absurdity to give separate administrations to admirals and marshals when both were employed to one end, namely, the defense of the nation, the overthrow of an enemy, and the security of the national possessions. The ministry of the interior ought in like manner to combine the departments of commerce, police, and finances, or it belied its own name. To the ministry of foreign affairs belonged the administration of justice, the household of the king, and all that concerned arts, sciences, and belles lettres. All patronage ought to flow directly from the sovereign. Such ministries necessitated the supremacy of a council. Each required the work of two hundred officials, and no more, in its central administration offices, where Rabourdin proposed that they should live, as in former days under the monarchy. Taking the sum of twelve thousand francs a year for each official as an average, he estimated seven millions as the cost of the whole body of such officials, which actually stood at twenty in the budget.
By thus reducing the ministers to three heads he suppressed departments which had come to be useless, together with the enormous costs of their maintenance in Paris. He proved that an arrondissement could be managed by ten men; a prefecture by a dozen at the most; which reduced the entire civil service force throughout France to five thousand men, exclusive of the departments of war and justice. Under this plan the clerks of the court were charged with the system of loans, and the ministry of the interior with that of registration and the management of domains. Thus Rabourdin united in one centre all divisions that were allied in nature. The mortgage system, inheritance, and registration did not pass outside of their own sphere of action and only required three additional clerks in the justice courts and three in the royal courts. The steady application of this principle brought Rabourdin to reforms in the finance system. He merged the collection of revenue into one channel, taxing consumption in bulk instead of taxing property. According to his ideas, consumption was the sole thing properly taxable in times of peace. Land-taxes should always be held in reserve in case of war; for then only could the State justly demand sacrifices from the soil, which was in danger; but in times of peace it was a serious political fault to burden it beyond a certain limit; otherwise it could never be depended on in great emergencies. Thus a loan should be put on the market when the country was tranquil, for at such times it could be placed at par, instead of at fifty per cent loss as in bad times; in war times resort should be had to a land-tax.
“The invasion of 1814 and 1815,” Rabourdin would say to his friends, “founded in France and practically explained an institution which neither Law nor Napoleon had been able to establish—I mean Credit.”
Unfortunately, Xavier considered the true principles of this admirable machine of civil service very little understood at the period when he began his labor of reform in 1820. His scheme levied a toll on the consumption by means of direct taxation and suppressed the whole machinery of indirect taxation. The levying of the taxes was simplified by a single classification of a great number of articles. This did away with the more harassing customs at the gates of the cities, and obtained the largest revenues from the remainder, by lessening the enormous expense of collecting them. To lighten the burden of taxation is not, in matters of finance, to diminish the taxes, but to assess them better; if lightened, you increase the volume of business by giving it freer play; the individual pays less and the State receives more. This reform, which may seem immense, rests on very simple machinery. Rabourdin regarded the tax on personal property as the most trustworthy representative of general consumption. Individual fortunes are usually revealed in France by rentals, by the number of servants, horses, carriages, and luxuries, the costs of which are all to the interest of the public treasury. Houses and what they contain vary comparatively but little, and are not liable to disappear. After pointing out the means of making a tax-list on personal property which should be more impartial than the existing list, Rabourdin assessed the sums to be brought into the treasury by indirect taxation as so much per cent on each individual share. A tax is a levy of money on things or persons under disguises that are more or less specious. These disguises, excellent when the object is to extort money, become ridiculous in the present day, when the class on which the taxes weigh the heaviest knows why the State imposes them and by what machinery they are given back. In fact the budget is not a strong-box to hold what is put into it, but a watering-pot; the more it takes in and the more it pours out the better for the prosperity of the country. Therefore, supposing there are six millions of tax-payers in easy circumstances (Rabourdin proved their existence, including the rich) is it not better to make them pay a duty on the consumption of wine, which would not be more offensive than that on doors and windows and would return a hundred millions, rather than harass them by taxing the thing itself. By this system of taxation, each individual tax-payer pays less in reality, while the State receives more, and consumers profit by a vast reduction in the price of things which the State releases from its perpetual and harassing interference. Rabourdin’s scheme retained a tax on the cultivation of vineyards, so as to protect that industry from the too great abundance of its own products. Then, to reach the consumption of the poorer tax-payers, the licences of retail dealers were taxed according to the population of the neighborhoods in which they lived.
In this way, the State would receive without cost or vexatious hindrances an enormous revenue under three forms; namely, a duty on wine, on the cultivation of vineyards, and on licenses, where now an irritating array of taxes existed as a burden on itself and its officials. Taxation was thus imposed upon the rich without overburdening the poor. To give another example. Suppose a share assessed to each person of one or two francs for the consumption of salt and you obtain ten or a dozen millions; the modern “gabelle” disappears, the poor breathe freer, agriculture is relieved, the State receives as much, and no tax-payer complains. All persons, whether they belong to the industrial classes or to the capitalists, will see at once the benefits of a tax so assessed when they discover how commerce increases, and life is ameliorated in the country districts. In short, the State will see from year to year the number of her well-to-do tax-payers increasing. By doing away with the machinery of indirect taxation, which is very costly (a State, as it were, within a State), both the public finances and the individual tax-payer are greatly benefited, not to speak of the saving in costs of collecting.
The whole subject is indeed less a question of finance than a question of government. The State should possess nothing of its own, neither forests, nor mines, nor public works. That it should be the owner of domains was, in Rabourdin’s opinion, an administrative contradiction. The State cannot turn its possessions to profit and it deprives itself of taxes; it thus loses two forms of production. As to the manufactories of the government, they are just as unreasonable in the sphere of industry. The State obtains products at a higher cost than those of commerce, produces them more slowly, and loses its tax upon the industry, the maintenance of which it, in turn, reduces. Can it be thought a proper method of governing a country to manufacture instead of promoting manufactures? to possess property instead of creating more possessions and more diverse ones? In Rabourdin’s system the State exacted no money security; he allowed only mortgage securities; and for this reason: Either the State holds the security in specie, and that embarrasses business and the movement of money; or it invests it at a higher rate than the State itself pays, and that is a contemptible robbery; or else it loses on the transaction, and that is folly; moreover, if it is obliged at any time to dispose of a mass of these securities it gives rises in certain cases to terrible bankruptcy.
The territorial tax did not entirely disappear in Rabourdin’s plan—he kept a minute portion of it as a point of departure in case of war; but the productions of the soil were freed, and industry, finding raw material at a low price, could compete with foreign nations without the deceptive help of customs. The rich carried on the administration of the provinces without compensation except that of receiving a peerage under certain conditions. Magistrates, learned bodies, officers of the lower grades found their services honorably rewarded; no man employed by the government failed to obtain great consideration through the value and extent of his labors and the excellence of his salary; every one was able to provide for his own future and France was delivered from the cancer of pensions. As a result Rabourdin’s scheme exhibited only seven hundred millions of expenditures and twelve hundred millions of receipts. A saving of five hundred millions annually
