History of Taxation
in
Rhode Island
to the year 1790.
By
Henry B. Gardner.
[Illustration: A dissertation presented to the Board of University
Studies of the Johns Hopkins University for the degree of Doctor of
Philosophy. 1890.]
------------------------------------------------------------------------
Contents.
Introduction Page 1
Taxation in Rhode Island 1636-1689 4
The law and administration 16
Taxation 1689-1710 25
The law and administration 32
Miscellaneous revenues 37
Period of paper money 1710-1751 38
Financial history 1751-1790 46
The law of taxation since 1710 63
Colonial and state valuations 69
Customs and excise duties 82
Tonnage duties 89
Notes 91
Introduction.
That method of raising revenue for the support of government which we
understand by taxation marks a well advanced stage of economic life and
is of comparatively recent origin among Germanic peoples. It was unknown
while our English ancestors lived upon the continent of Europe and for
many centuries after they had settled in their new home Society, and, as
a consequence, government had not as yet become differentiated. Some of
the most important duties, such as the defence of the kingdom, the care
of the bridges and forts, were performed by personal service on the part
of the people. Other duties incumbent upon the modern state, those which
require the greatest expenditure, had not arisen. The private and public
revenues of king were not as yet distinguished. The revenue of his
private estates afforded him a considerable income and, in addition, he
enjoyed the usufruct of the folkland. The growth of the feudal system
gave rise to various other sources of income, and besides these there
were payments for special privileges such as markets. The king also
enjoyed rights such as that of carriage and purveyance, for example.
Taxation as we conceive it formed no part of the system. "Only in a
condition of the deepest degradation, under Athelstan the Unready, could
the national assembly be induced to levy a tribute upon the country to
buy off the horde of Danish pirates."[1] Taxation developed rapidly
after the Norman conquest, but as late as the reign of James I out of a
total revenue of about £450,000, £180,000 came from dues on feudal
tenures, and the crown lands, rented at much below their real value,
yielded £32,000.[2]
Feudal dues remained an important source of revenue until the time of
Charles II. All through the early period "the taxes voted were 'aids'
and 'subsidies'; something to help the king eke out his income, as it
were. Systematic taxation as a right--nay, as a duty owed by the citizen
to the State--was an idea entertained with the utmost reluctance."[3]
Even after national taxation had become established the local bodies
continued to depend on personal service (or payments in kind) to fulfil
their military, police, or judicial functions. It was the apportionment
among individuals of fines incurred by the various local divisions for
the neglect of these duties which first gave rise to the county rate,
the hundred rate, and the tithing rate or town levy. From the Tudor
legislation of the Sixteenth and early Seventeenth centuries local
taxation received a definite form and character. The poor law of 43
Elizabeth which established the parish poor rate became the basis of the
system. To this rate all others tended to conform.[4] In early New
England the conditions were much the same in regard to taxation as in
early England. The functions of government were few and simple and often
easiest fulfilled by personal service on the part of the citizens. This
was the case with respect to the maintenance of the roads, and with
military service. The army was the folk under arms. The duties of public
officers, whether of town or colony, could not have been burdensome and
in many cases acceptance of office was looked upon as a duty to be
performed without, or with small, recompense, refusal being accompanied
by a fine. A considerable portion of public services such as those of
the executive officers of the courts (and even of the judicial officers)
were naturally recompensed by fees. Pauperism the great burden of the
older country was hardly possible where land was abundant and labor
scarce.
What has been said or New England in general applies with added force to
Rhode Island, for here the political body concerned itself as a rule
with neither religion nor education.[5] Taxation was regarded for a long
time not as the principal means for meeting ordinary expenditures but as
something irregular and supplementary.
Taxation in Rhode Island, 1636-1689.
_The towns before the Union._
Unlike Massachusetts the towns in Rhode Island remained the supreme
authority under the king for some years before any central government
was established by charter.[6] The first delegated government
established in Providence was in 1640.[7] It was of the simplest nature.
Five men were to be elected quarterly, who, subject to the control of
the town meeting, were to have the disposal of lands and of the "townes
stocke." Disputes between citizens were to be settled by arbitrators
appointed either by the parties to the dispute, or by the five
"disposers," payment for their time spent to be made by the "faultive"
party.
Provision was also made for a clerk who was to receive 4d. for each
cause that came to the town for trial and 12d. for each deed prepared.
All the inhabitants were to join in the pursuit of a fugitive from
justice.
The "townes stocke" was probably derived from fines and payments for
land by the new comers,[8] as there is no mention of taxation. At the
time of the union of the towns in 1647 the delegates from Providence to
the general court, which was to organize the colonial government, were
instructed to secure to the town the reservation of certain rights in
the management of their own affairs, but neither in these instructions
nor in the charter of very full powers afterwards granted to the town is
there any direct reference to taxation. In Portsmouth and Newport the
delegated power was in the hands of a judge and elders. These towns
probably depended on much the same sources of revenue as did Providence;
fines, fees, and payments for land.[9] The political development however
was more rapid on the island than on the mainland and we early find in
Portsmouth traces of taxation as well as of comparative advancement in
financial affairs.[10] The records of the first year of the Newport
settlement show that their financial transactions were of importance and
that certain officers, such as the secretary and sergeant, received
considerable payments from the town.[11] There is no record of the
amount charged for land, nor any mention of taxes, though it is not
improbable that they existed in some form, as the settlers in their
first compact engage "to bear equal charges answerable to our strength
and estates in common."[12] In 1640 Newport and Portsmouth came together
under a common government, each town retaining however its own
organization, and the control of its own affairs. The general officers
were a governor, a deputy governor, four assistants, two treasurers, two
constables, a secretary, and a sergeant. The magistrates (governor,
deputy governor, and assistants) fulfilled judicial as well as executive
functions. The only reference to the payment of officers is a provision
in 1641 that the secretary should have 3s. per day for his attendance
upon the various courts. In the following year this salary is taken away
and it is ordered that both the secretary and the sergeant be paid by
fees.[13]
The common expenses were met by drafts on the town treasurers. The
financial transactions of the united towns were considerable in
amount,[14] and there are several special taxes of interest. It was
ordered in 1640 that the treasury of each town be always supplied with
two barrels of gunpowder and with bullets and match. Every man who
killed a deer outside of his own property was required to bring in one
half to the treasury under penalty of forty shillings. Thus the town
derived a revenue from the use of the public domains. In 1642 a bounty
of five pounds was offered on wolves, to pay which it was provided that
a rate should be levied on every man according to his cattle;[15] the
idea of a direct relation between the tax and the service rendered.
Bounties of this kind must have been one of the principal sources of
expense to the early settlers. On wolves they were sometimes as high as
£5, at other times not more than 30s., while the rate on foxes was 6s.
8d.
The above seems to be substantially all that remains of the financial
records of the early towns. We find in them the conditions already
noted; few needs, abundance of land, for sharing which they could demand
a payment of all new comers, payment by fees or, if a tax was necessary,
perhaps by a tax on a particular class, as in the case of the bounty on
wolves. Fines, too, probably formed a not inconsiderable source of
revenue, for the home of religious freedom seems to have been to some
extent the home of those who desired freedom from the law as well. When
a general tax for the common good was levied the "estate and strength"
of each must have been a matter of common knowledge impossible of
concealment. It should be noted also that neither at this time nor much
later under the charter government was the business of the treasury
managed with that exactness which we find today. Receipts were very
often far behind expenses and bills were frequently allowed to remain
unpaid until the money happened to be in the treasury.
The four towns first organized under a common government in 1647 by
virtue of what is known as the Patent, procured through the efforts of
Roger Williams in March 1643-4. Under this government the colony
remained, with the exception of an interruption lasting from the spring
of 1651 to August 1654,[16] until it reorganized under the charter of
1663 which remained the fundamental law of the colony and state for one
hundred and eighty years.
The general officers under the Patent were a president and four
assistants, a general recorder, a treasurer, and a general sergeant.
There was also a committee composed of six representatives from each
town.[17] A general attorney and a solicitor were added in 1650.[18]
Under the charter of 1663 the president was replaced by a governor and
deputy governor, the number of assistants was increased to ten, and,
instead of the committee of six from each town, provision was made for
six deputies from Newport, four each from Providence, Portsmouth, and
Warwick, and two each from all other towns that might come into
existence. The other general officers remained the same as before. Under
both governments the magistrates (president, or governor and deputy
governor, and assistants) performed judicial functions.[19]
Public service was considered as a duty the fulfilment of which was
enforced by law[20] while payment, except where the method of fees was
available, was either not given at all or was but daily wages for the
time actually employed in the service. Payment for service in the
general assembly or the court of trials did not exceed three shillings a
day, with a much heavier fine for non-attendance.[21] In addition to
this a law of 1679 provided that diet and lodging should be furnished
those in attendance, the expense to be met out of the fines and
forfeitures coming into the general treasury.
The services of the recorder, sergeant, and general attorney were
compensated by fees, though the first two seem also to have had daily
wages for their time employed, and their payment was among the chief
sources of expense at this early period.[22] The general treasurer
enjoyed a percentage, sometimes as high as ten per cent, on the amount
of his transactions.[23]
The care of the highways and the poor was given over to the towns.[24]
It is evident that the expenses of such a government could not have been
great.
So small were the financial operations during the earlier years that the
general treasurer "returned his accompte into the courte for the year
1649, that he (had) received nothing as Treasurer and therefore have
nothing in his hande,"[25] and Gregory Dexter, town clerk of Providence,
could write to Sir Henry Vane "Sir we have not known what an excise
means. We have almost forgotten what tythes are; yea, or taxes, either
to church or commonweale."[26]. In fact for many years fines and
forfeitures seem to have been the chief reliance for defraying ordinary
general expenses and they continued to form a principal element of the
receipts until the end of the century.[27]. Taxation however could not
be entirely avoided. It was necessary to place the colony in a position
capable of defence and in 1650 each town was ordered to have in its
magazine a certain quantity of arms and ammunition, the amount assigned
to each town to be equally laid upon the inhabitants of the council
thereof "according to each man's strength and estate."[28] Taxes were
also levied to pay for powder and shot sent, over from England.[29]
Prisons were necessary and in 1655 the towns were ordered to build two
prisons, two cages, and two pairs of stocks, one of each on the mainland
and one on the island at a total cost of £135.[30] Later court houses
and a state house were required, but on the whole taxation to meet
ordinary expenses remained almost ludicrously small until long after
Rhode Island had become a state. The exercise of the taxing power was
reserved for special occasions. The most important of these was war;
next came the support of an agent in England. Wars which required the
employment of a paid soldiery did not begin until the end of the
Seventeenth century; agents in England to look after colonial interests
were a necessity from the very beginning of the colonies and lasted
until the colonies became states. Particularly was this the case in
Rhode Island, small in population and territory, its jurisdiction
attacked on every side by the claims of more powerful neighbors,[31]
with a charter containing grants of such unusual freedom that it was a
constant target for those opposed to colonial self-government. One of
the acts of the first general assembly under the Patent in 1647 was to
assess upon the towns a tax of £100 to pay Roger Williams for his
exertions in procuring that document more than three years before.[32]
Williams in company with John Clarke again went to England to secure the
repeal of Coddington's commission. The former returned on the
accomplishment of his mission but Clarke remained and cared for the
interests of the colony, and it was in connection with his efforts to
secure the charter of 1663 that taxation on any considerable scale
began. The following table will show the taxes levied from 1662 to the
fall of the Andros government in the spring of 1689. Those taxes marked
with a star were levied under the Andros régime.
_Date of _Amount._ _Purpose._ _Payment may be
Ass'm'nt._ made in._
[33]June 1662 £288 "in silver Agent. "beefe, porke
pay" pease, and wheat,
at such prices as
it then goeth to
the merchants as
moneye pay;"
[34]Oct. 1662 £106 Agent. "goods" to be
priced by men
chosen for the
purpose.
Oct. 1663. £100 "in current Agent
bills."
[35]Oct. 1664. £600 Agent and others wheat, peas,
to whom the pork, horses,
colony is cattle, or any
indebted; sort of
provisions
"according to the
usual rate that
it doth pass at
amongst us".
[36]June, 1670. £300 "in pay Agent. Seems to pork, peas,
currant of this have been wheat, Indian
Collony" diverted to corn, oats, wool,
general purposes. butter or such
other pay as the
General treasurer
may accept.
[37]Oct. 1673. A farthing in the "payment of the See general tax
pound. collonys now law p.
knowne debts."
[38]Nov. 1678. £300 sterling. paying the money, pork,
colony's debts. beef, peas,
Indian corn,
barley, barley
malt, sheeps'
wool or butter at
stated prices.
[39]July, 1679 £60 sterling. to repay money or pay
disbursements in equivalent.
England on the
colony's account.
[40]May, 1680. £100 payment of the
colony's debts
and supplying the
treasury.
[41]Oct. 1684. £160 "in or as to discharge
New England colony's debts.
money."
x[42]Jan. 1686-7. A penny in the general expenses
pound; poll tax of the Andros
1s., 8d. government.
x Aug. 1687. A penny in the General expenses
pound; poll tax of the Andros
1s. 8d. government.
x Dec. 1687. £160. Building two money, wool,
court houses, butter, Indian
repairing the corn, rye or pork
prison and paying at stated prices.
the debts of the
province.
x March, 1687-8. £53-6s. 8d. Bounties on same as last.
wolves.
x [43]Aug. 1688. A penny in the general expenses
pound; poll tax of the Andros
1s. 8d. government.
The requirements of the militia service, which at this time supplied the
whole military power of the colony, should also be taken into
consideration. Militia systems had been established in the towns before
their union under one government. The law of the island towns appointed
eight training days a year for each town with two general musters. A
fine of five shillings was imposed for non-appearance, and all men
remaining on the island for twenty days were liable to the service.[44]
The first assembly under the Patent enacted substantially this same law
for the whole colony[45] and it remained essentially unchanged
throughout the period of which we are treating. The limits of age were
fixed at sixteen and sixty years. The only exemption from service were
on account of "age, monage, sickness, lameness, or publique barringe of
office at that time in the commonwealth."[46] In 1665, the number of
training days was reduced to six and the fine for non-attendance was
gradually lowered to two shillings. Those who were able seem to have
been required to provide themselves with arms and ammunition, but in
case of inability they might be furnished by the town council by means
of rates or from the proceeds of military fines.[47] The military
requirement acted to a certain extent as a poll tax, but the relations
of the colony with the surrounding Indians was for the most part
friendly; the need of strict military discipline does not seem to have
been felt and various references in the laws themselves tend to show
that military regulations were not strictly observed unless under the
influence of some pressing emergency when special laws requiring their
enforcement were passed; so that the military system seems in general to
have been but little of a burden.
It is evident that on the whole taxation daring this period was light.
The nominal amount of taxes of all kinds levied between 1647 and 1689
was not much over £3600 or about £84 a year. Nearly £1100 of this amount
was levied between June 1662 and October 1664 to meet the expenses of
procuring the charter. It was levied for the most part in "current pay"
and the sterling value, probably, did not exceed £600. The collection
also was extended over several years. Such taxation appears to us
extremely light and even though we make, as is necessary, a large
allowance for the difference in economic conditions then and now, the
burden does not appear excessive,[48] while, if we look at the remaining
years, taxation is almost insignificant;[49] it amounted on the average
to but a few cents per capita each year. In fact it was altogether too
light to meet expenses. The colony seems always to have been in debt. In
September 1673 the debts due from the treasury exceeded the debts due to
it by £71 9s. 2d.[50] Five years later the colony was indebted for £437
3s. 10d.[51] In 1684 the Assembly affirm that the existence of the
government is endangered for the want of funds in the treasury.[52] In
several instances money to meet public expenses was raised by
contribution. In other cases the necessary amounts were advanced by
individuals, to be repaid when the money should come into the
treasury.[53] Though, judged by amount, taxation at this period was
unimportant, yet it is here that we find the beginnings of a system
which in theory at least endures at the present time. We turn therefore
to a consideration of _the law and administration of taxation_.
Neither in the Patent nor in the Charter is there any specific grant of
the power to tax;[54] it seems to have been regarded as implied in the
grant of government, and was always exercised by the highest legislative
authority, under the Patent at first by the body of freemen assembled in
general court, and later by the court of commissioners, under the
charter by the general assembly consisting of the deputies and
magistrates, at first sitting as one body and later as two distinct
houses.[55] The legislature apportioned the tax among the separate towns
and required each town to collect and pay into the colony treasury its
quota by the time specified in the act ordering the tax, the towns
employing their own administrative machinery for the purpose.[56]
Perhaps the system is best summed up in a law passed in 1655. "It is
ordered, that ye raisinge of Generall Taxes shall be ordered by ye
Generall Court of Commissioners, as they shall see cause from time to
time as to ye sumes, and how they shall be proportioned on each Towne;
as alsoe, who in each Towne shall have power to make ye rates, and who
are to give forth warrants for ye gatheringe of them; as alsoe in case
of any refusinge to pay, to order assistance to him or them that are
authorized to give warrants, or to gather ye rates as need shall
require."[57] In the case of the tax levied for the payment of Roger
Williams it was ordered in 1650 "that the councill of ech Towne be
enjoyned forthwith to proportion Mr. Williams that debt and other summes
apoynted thereto, according to every mans strength and state;"[58] and
for a while the town council seems to have acted as assessors. Just when
the duty of assessment began to be assigned to separate officers we do
not know, probably very early.[59] Collectors did not come until well
into the next century, their functions being exercised by the town
constable or sergeant.[60] During these early years custom rather than
law seems to have been the regulating power, and it doubtless left much
to be desired. An attempt to remedy these shortcomings was made in 1673
when what may fairly be called the first tax law was passed.[61] It
throws much light on existing conditions. The preamble recites "the
great dissatisfaction and irregularity that hath been by makeinge rates
or raising a common stock for public Charges in the Collony in general
or for any perticuler towne, and the great faileableness to accomplish
it, and great delaies in performance," and affirms that public charges
"should be born according to equity in estate strength."[62] The law
then provides that where a rate is levied by the colony or a town every
one shall "make a true valluation of theire estate and strength, every
thinge that is any estate to them be vallued, which they are not rated
for to another place; and when for a pertickular towne rate, what they
are not rated to another towne." Each person is to pay "to the Treasury
to whome it doth belong" a certain amount upon the pound of valuation as
the assembly may order. Payment may be made in "anything that is
rateable, and it shall not be refused at the price as by two indifferent
men vallued."[63] If any do not rate themselves "the Generall Assembly
may appoint men to gess at their estate, and rate them as they should
have done themselves, and according to double the proportion for
forbearance."[64] "If the Assembly judge any have undervallued their
estates, such shall be required to give in to the Treasurer a true forme
of an inventory of all their estate and strength in pertickular, and
give in writeinge what proportion of estate and strength in pertickular
he guesseth tenn of his neighbours, nameinge them tn pertickular, hath
in estate and strength to his estate and strength." If they do not
comply they are to be rated as those who have not rated themselves at
all; "or if it be proved that there is more due from any than they have
rated themselves, they are to pay double as much therefor (and for the
forbearance), as for it they should have rated themselves." These latter
provisions of the law clearly show the fact which would render it
possible to successfully carry our such a system at that time. Each man
could know the property of his neighbor almost as well as his own
property and it was not for his interest to bear any burden which should
properly fall upon another.
As a matter of fact taxes were seldom levied at so much on the
pound,[65] but a definite amount was ordered, to be apportioned among
the rate payers. This law provides for assessors only in case
individuals neglect to rate themselves, and makes no mention of
collectors. The custom, however as has been said was for the towns to
appoint assessors whenever a tax was to be levied and to entrust its
collection to the constables or sergeants. There were however many
exceptions.
The central government was comparatively weak. Towns very often paid no
attention to the orders of the assembly and it became necessary to
resort to special means to assess and collect the tax. Town machinery
was overridden. The magistrates were empowered to call town meetings to
assess the rate[66] or the assembly appointed a committee for the
purpose. The general or colony sergeant was required to collect the tax
after the assessment had been made.[67] The troubles in connection with
the collection of rates seem to have culminated in the spring of 1672,
when what is known as the "sedition act" was passed.[68] This act after
reciting the dangers arising from the opposition to the collection of
rates provides that "if any person or persons in any town or place
within this jurisdiction, shall at any time more especially in any town
meeting or other publique assembly of people, appear by word or act, in
opposition to such rates and impositions," made by the assembly or in
opposition to any act of the assembly, made in accordance with the
charter, such person shall be "proceeded against as for high contempt
and sedition," and on conviction shall suffer at the discretion of the
justices, "corporall punishment by whipping, not exceeding thirty
stripes, or imprisonment in the House of Correction, not exceeding
twelve months; or else a fine or mulct, not exceeding twenty pounds."
This act was passed in April. In the following month the annual election
occurred. Not a single deputy was reelected, and the same was true of
the governor and six assistants.[69] Political revolution was never more
complete. The new assembly repealed every act of its predecessor. So
strong was the reaction that in the following November a limitation was
placed upon the assembly's power of taxation, by the provision "that noe
tax nor rate from henceforth shall be made, layd or levied on the
inhabitants of this Collony without the consent of the Deputys present
pertaining to the whole Collony, as there must be a major part of the
Assistants (by the Charter), nor any way bringe the Collony in debt by
any meanes." The assembly does not seem to have recovered its former
powers until 1679.[70]
With the establishment of the Andros government the assembly
disappeared. The right of taxation throughout his whole jurisdiction
belonged to Andros and his council; for local purposes it seems to have
been delegated to a court of nine justices which succeeded to the powers
of both the Assembly and the Court of Trials.[71] So much an examination
of legislative enactments shows us. We are fortunately enabled to fill
out the picture to some extent from other sources. In Jan. 1678-9 the
freemen of Providence took action in regard to their quota of the colony
tax assessed in the preceding October. A committee of four was chosen
"to draw aside a Little space of time, to consider togather of the
suitablist prices, Which is meet to be sett on (ya Esteemed) Rateable
Estate of ye Inhabitants of this Towne, x x x for to be a helpe &
preparation to ye Lieviers." The rates of valuation agreed upon were as
follows:
"Meaddow Land: One acar Improved, to be Vallued at 04-00-00
planting Land: One Acar Improved to be Vallued at 03-00-00
Vakant Land; & unimproved: £ Acar to be Vallued at 00-03-00
An ox 04-00-00
4 or five yeare old steers 03-10-00
Cowes & three yeare old Cattle, To be Vallued at 03-00-00
two yeare old Cattle, To be Vallued at 01-15-00
Yearleings-Cattle--Each of whom--To be at 01-00-00
three yeares old Horses, & horse kind--To be Vallued at 02-00-00
two yeare old horse, & horse kinde To be Vallued at 01-10-00
hoggs, or swine, Each of them above a yeare old 00-15-00
sheepe--above a yeare old--To be Vallued at 00-04-00"
"Ye Rate-makers" however "are not soe strictly tyed x x to ye
Instructions of ye above sayd Committee, but yt they have a Libberty to
Vary therefrom, as in theire discrescesion shall seeme meet Unto them, x
x x they having the sayd Instructions as a Line for some guide of theire
Judgement therein." Five men were then chosen to assess the rate.[72] At
the meeting of the following March, it is ordered that notices be set up
in public places stating that the rate is to be levied and requiring all
inhabitants within fourteen days to bring in to the rate makers an
account of "The quantity of their Land & Meadows Layd out to them,
Improved & unimproved, As alsoe what Cattle of any Sort they have,
otherwise none can justly be offended, if ye Raters only use what
information they can get." When the rate makers have made up their lists
of what each man is to pay they are to post them in public places and
each tax payer is then to bring to the treasurer, at his dwelling, the
sum for which he is rated. The assessors completed their lists in July.
The town clerk was ordered to prepare a copy of the list and deliver it
to the town constables who should collect the rate. If any refused to
pay application was to be made to a Justice of the Peace who should
grant a warrant of distraint against the property of the defective
person.
Among the manuscripts in the Rhode Island Historical Societies Cabinet
in Providence are preserved several hundred of the lists of rateable
estates returned to the assessors by individuals during the period of
which we are now treating.
The following is "The Account of ye Rateable Estate of Jon. Whipple of
providence:
First Sixe Cowes, and one heifer; not 3 yeares old.
Secondly 2 Oxen
3dly 3 Steeres of 3 yeares old
4ly one heifer; 2 yeares old
5ly 3 of one yeares old, one a steere; ye 2 heifers
6ly 3 horses
7ly one mare and colt, beside 3 more if not stolen or alive or made
bobtailes
8ly one house lott within Fence
9ly 2 shaires in ye Great meadown where I mowe 4 lods of hay
10ly 4 Swine
11ly one yeare old horse colts"
John Whipple seems to have been blessed with more than the average
amount of wealth in personal estate, but this list as do all the others
clearly shows the character of the property which existed at the
time.[73] But little if any property was owned beyond the limits of the
town. Everything was tangible and could be concealed neither from the
neighbors nor the assessors. It was not difficult to fix on a standard
of valuation which should apply uniformly and fairly to all property
owners. The method of taxation adopted was clearly the most suitable,
indeed the only one suitable at all, for a community of farmers, where
land was abundant, and where trade had not developed but each family
produced for its own consumption.
Taxation 1689-1710.
With the restoration of the government in 1690, after the fall of
Andros, Rhode Island enters upon a new period of her history, a period
marked within by a stronger central authority and a more settled and
orderly government.[74]
In 1695, the governor was granted a salary of £10 a year, the deputy
governor £6 and the assistants £4 each. All these officers had
previously been exempted from taxation.[75] Without the period was one
of successive wars against the French and Spaniards, wars which required
the support of a paid soldiery and, for a colony situated as was Rhode
Island with her great extend of sea coast, the maintenance of strong
defences against hostile ships. The charter was also endangered by the
attacks of the Narragansett proprietors, and later of Bellemont and
Dudley, and this required considerable expenditures to meet the expenses
of the agent in England. The taxes and the purposes for which they were
levied during the remainder of the period of which we are now treating
can be seen in the following table.
_Date of _Amount._ _Purpose._ _Payment may be
Ass'm'nt._ made in_
[76]May 1690 £300 "for the support of wool, butter,
their Majesties' Indian corn, rye
interest against and pork.
the French and
Indian enemies."
July 1695 2d. in the pound. Same as last.
Oct. 1695 1d. in the pound. Agent, and, if
surplus, to pay the
colony's debts.
May 1696 2d. in the pound.
July 1696
Aug. 1698 £800 "pay the Colony's
debts, and putting
monies in bank, for
sending an agent
for England."
Oct. 1699 £600 "for sending agent
for England"
March 1700/1 £400 "current "for paying the
money of this Collony's debts and
Colony" defraying of the
publick Charge."
March 1701/2 £200 "in money" "for the use and
benefit" of the
colony according to
the direction of
the governor and
council.
May 1702 £300 "in money or Same as last. Money, indian corn,
good pay oats, barley, rye.
equivalent."
Feb. 1702/3 £500 £200 for fort £150 money, indian corn,
for jail £150 for barley, wheat, rye,
debts oats, wool.
Jan. 1703/4 £500 "for the support of "money or pay
the government." equivalent,
according to the
Collony's acts
heretofore made."
May 1704 £700 in "money or money, wool, Indian
pay equivalent." corn, barley, oats,
rice, wheat.
Feb. 1704/5 £500 in "current "for defraying the See "Amount."
money of New Collony's debts."
England in pay in
like species as
the last £700
rate."
June 1705 £500, same as last Same as last Same as last.
Aug. 1705 £1000, same as £300 for agent; Same as last.
last remainder not
specified.
May 1706 £700 £400 for fort £100 Same as last.
for magazine, £200
for debts.
July 1706 £300 Same as last.
Feb. 1706/7 £500 £400 for the
expenses of a
cruise, £100 for
debts.
May 1707 £1500
Feb. 1707/8 £500
Aug. 1708 £800 "in money, or £100 for colony Indian corn,
specie answerable house, £100 for barley, rye, oats,
at the usual agent, remainder wool, wheat.
rates." for debts and
general expenses.
March 1708/9 £500 Same as last. Same as last.
May 1709 £1000, same as Same as last.
last.
Aug. 1709 £1000 for debts.
Feb. 1709/10 £1200 same as last.
There were two wars against the French during this period; "King
William's War" from 1689-1697, and "Queen Anne's War" from 1702-1713. In
the first Rhode Island took little part. She sent no men to aid the
other colonies but confined herself to strengthening her own defences
and repelling the French privateers which occasionally appeared in her
waters, particularly off Block Island. The same is true of the early
years of the Second War, although in this case the danger was greater
and really considerable amounts were expended in putting the colony in a
condition of defence, especially in strengthening and supplying the fort
at Newport. A regular garrison was maintained at Block Island. The
colony took part in the expedition against Port Royal in 1707, and in
1709 sent to Boston and maintained for five months two hundred men to
assist in the proposed expedition against Canada which did not take
place. The useless expenditure necessitated by this failure fell heavily
on the colony and when, in the following year, one hundred and
fifty-five men were sent to take part in the expedition against Port
Royal bills of credit were issued to meet the expense.
During the earlier years expenses did not increase much and seem to have
been principally for the completion of the colony house, begun under
Andros, and for the expedition to repel the French from Block
Island.[77] Beginning with 1695 there is a change. The payment of public
officers becomes a considerable charge. The expenses of the Agent
increase. Then comes the war expenditure, at first the maintenance of
the fort and the Block Island garrison and then the expeditions against
Canada.[78]
The receipts are now almost entirely from taxes, other sources having
become comparatively insignificant with the increasing revenue. The
burden of taxation showed a constant tendency to increase. The average
annual tax from July 1695 to February 1709-10 was about £1000, from
August 1698 to the same date over £1200, from January 1703-4 nearly
£1900, from May 1706 £2300, from February 1707-8 £2500, and during the
last year £3700 was raised. A census of the colony in December 1708
showed a total population of 7181 of whom 482 were servants, black and
white.[79] This would show a great increase in the per capita taxation
over the earlier period. During the last year the per capita rate was
over half a pound. The taxes collected during this single year amounted
to as much or more than all the taxes collected during the first forty
years of the colonial government. There is no doubt that the burden was
a heavy one and, following the example of others, the colony sought
relief in issues of paper money. With the adoption of this new source of
revenue colonial taxation practically ceased and was revived only under
the pressure of another and greater war thirty-five years later.
The law and administration.
With higher taxes the necessity of a system of taxation just and at the
same time capable of strict enforcement, was more strongly felt. We
consequently find from the very beginning of the period a great increase
of legislation on the subject, so that by January 1703-4 there was
placed on the statute book a body of law which contains the substance of
our law today, and to which little was added, until, within recent
years, the rapidly growing complexity of our industrial life has
necessitated[80] more careful and detailed enactments.
In the case of the very first tax after the Restoration Warwick
complained of overrating, and the Assembly finding "that the manner of
rating of towns by guess is no suitable nor certain rule, but may prove
very prejudicial; x x determine that for the future, all rates that
shall be made in the Collony, shall be made according to so much on the
pound as the estates of persons are valued at."[81]
The three succeeding taxes were, in accordance with the resolution of
1690, percentage taxes and in connection with them we find much
interesting legislation. A committee appointed in 1695 to draw up a plan
of assessment reported as follows, "We therefore propose this way be for
the rateing all lands and meadows and merchants, tradesmen and housings
in this Collony; that every town shall yearly choose two or three able
and honest men, to take the view of each of their inhabitants of their
lands and meadows; and so to judge of the yearly profit at their wisdom
and discretion; and so also of merchants and tradesmen; and to make this
part of the rate according to the yearly profit; or as they, when they
shall have had a more narrow inspection into the lands and meadows,
shall see cause to set by the acre." The report was ordered to stand as
an act by the assembly.[82] Persons who did not bring in an account of
their estate were to be rated at the discretion of the assessors. In
this assessment according to profit, particularly of tradesmen and
merchants, we clearly see the influence of the commerce of the colony,
which was just at this time beginning to develop.[83] Here too we see
the first idea of assessors annually elected.[84] The penny in the pound
rate of this year was levied in accordance with the same act, as was
also the two pence rate of 1696. In 1698 percentage taxation was
abandoned, not to be again revived, and a return was made to the former
custom of assessing a specified sum and apportioning it among the towns.
An attempt however was made in the adoption of the most detailed law
with which we have yet met, to avoid injustice in the assessment. In
each town the assistants or two justices were to appoint two men to take
account of rateable estate and of males between sixteen and sixty years
of age, a return to be made to the assistants or justices, who were to
call a town meeting to choose "three well qualified men" to assess each
person's estate, in accordance with the account returned and the act of
1695, so as to raise the required sum. All male persons between sixteen
and sixty years of age were required to pay a poll tax of one
shilling,[85] Indians, negroes and impotent persons excepted, unless
they were freemen or had set up a trade or calling in the colony.[86]
Any person who should conceal any part of his estate from those
appointed to take account was to forfeit one fourth of the amount
concealed. Finally an account of the rateable estates was to be brought
into the assembly, in order that if any town had been overproportioned
the error might be rectified.[87] Though this act was not a general law
it seems in its administrative features at least with some slight
modifications[88] to have been the basis of the tax system until January
1703-4 when was passed the act which as we have said, is the foundation
of the present law, so far as its administrative features are concerned.
Its provisions were as follows: Each town on its annual election day was
to make choice of "three able, knowing men x x x for Assessors, or
Rate-makers, to stand for the year ensuing, who shall be engaged as all
other town officers; they, or the major part of them, in each town so
chosen, to make and proportion all town rates, and likewise each town's
part of all Collony rates". Collection was to be made by the town
constables who in case of neglect were to be responsible for the sums
entrusted to them for collection.[89] The act was amended from time to
time as occasion required. In May 1704 the provision was introduced
requiring the rate makers before assessing a tax to give ten days notice
to each person to bring in an account of his rateable estate, anyone
failing to do so to have no redress for overrating.
The rate makers were also empowered to administer an oath to all
offering an account of their estates.[90]
The system of percentage taxation having been abandoned by the assembly
that body endeavored to obtain a satisfactory basis for the
apportionment of taxes among the towns by ordering from time to time
that each town should send into the assembly an exact estimate of its
rateable estate. I have been able to find no trace of these early
valuations.[91]
Looking at the period after 1695, there is a plainly marked progress
both in legislation and administration. Before 1695, no well defined
system of taxation had been established by general law, but it was
customary for each act assessing a tax, or the amendments to it, to
contain the rules for assessment and collection. A practically uniform
system doubtless prevailed by custom, but it was not embodied in the
law. After 1695, we meet with general laws upon the subject of taxation
which gradually result in a recognized legal system. When a tax is
ordered reference for the method of assessment and collection is
generally made either to some former tax or to a general law, the latter
being always the case after 1703-4.
The same progress is evident in the administration of the law. During
the first few years great difficulties were often experienced, as in the
earlier period, and it was frequently found necessary to override town
machinery and place the appointment of the assessors and collectors of
the tax in the hands of the officers of the central government.[92] As
that government became more firmly established, however, the towns
yielded more willing obedience and during the later years of which we
are speaking the heavy taxes were collected with great promptness by
means of the ordinary administrative machinery. The cost of assessment
and collection at the time was great amounting to seven or eight per
cent. of the tax collected. In addition to this there was frequently a
loss resulting from the payment of taxes in kind, either because the
articles had to be disposed of at price lower than that at which they
had been received or because of injury suffered while in the
treasury.[93]
Miscellaneous Revenues.
There still remain to be noticed one or two matters which have not
fallen within the foregoing survey.
The first has to do with legislation in regard to traders who cane into
Rhode Island from other colonies, sold their goods and then returned
remaining often but a short time. It was claimed that these traders
carried off much ready money and produce to the detriment of the colony,
at the same time escaping the burdens which fell upon the home trader. A
law of 1698 levied a tax of five shillings on every ten pounds value of
goods sold at retail by any trader who was not admitted an inhabitant of
the colony. The tax on goods at wholesale was twenty shillings on one
hundred pounds. This provision seems to have been aimed at foreign
goods, as grain, provisions, and the produce of neighboring plantations
were excepted from its operation.[94] In 1700 the tax on retailers was
raised to five per cent.[95] and in the following year all merchants
remaining in the colony for a month were made liable to all rates and
duties levied upon inhabitants.[96]
The second has to do with other sources of revenue, in addition to those
already mentioned, enjoyed by the colony, more important for the
principle which they exemplify than for the revenue which they yielded.
In 1707 an act was passed provided for the survey of vacant lands in the
Narragansett country. These lands were sold to settlers and the proceeds
devoted to the Canada expedition.[97]
From the nature of the colony ferries had always been a matter of great
importance. The assembly had occasionally interfered to regulate their
management in the interest of the public, and in 1699 adopted the policy
of leasing the ferries for a term of years on condition of an annual
payment to be made into the general treasury. The receipts were small
but the principle involved was an important one.[98]
Period of Paper Money, 1710-1751.
The history of paper money in Rhode Island has already been treated with
considerable fullness.[99] It does not strictly fall within the scope of
this monograph and will be treated only so far as to give a clear idea
of the financial policy of the colony, an idea necessary to an
understanding of the part played by taxation.
According to the report on the state of the treasury in 1709; the year
of the attempted expedition against Canada, notwithstanding the heavy
taxation, the colony found itself in debt to the amount of
£3830-15s.-4d. To cover this deficit and meet the expenses of succeeding
expeditions £13000 in bills of credit were issued during the years 1710
and 1711. These bills passed equal to silver at eight shillings per
ounce.[100] By this means the colony succeeded in transferring the
balance to the right side of the account.
During the years of peace which followed the peace of Utrecht annual
expenses greatly diminished. Ordinary expenditure was considerably under
one thousand pounds, extraordinary expenditure sometimes added as much
again or even more to the account.[101] With the growth of population,
political and economic development,[102] and the depreciation of the
currency, these sums gradually increased so that in 1731 a report made
to the Board of Trade estimates the ordinary expenditure at two thousand
pounds and the extraordinary at two thousand five hundred pounds. By
1739, when the Spanish war began the total of these two sums had
increased to about six thousand pounds.