1. Revenue, or the income of the government, is derived from various sources. A tax—or duty, as it is often called—laid on goods imported into the country, is one of the most important. It is easy for a government to manage without producing a very sensible effect on the people, and has been a favorite mode of raising a revenue with nearly all governments since commerce became general. 2. The sale of public lands has, in this country, been a source of large revenue; though the desire to encourage emigration and develop the unsettled parts has led the government to sell them for a nominal sum. Still, these lands were so attractive and extensive as to sell rapidly and produce a considerable income. The Post Office Department has been a source of income, in great part supporting itself. Duties paid on the tonnage of vessels, the forfeiture of goods smuggled, or[264] introduced into the country without paying the lawful tax or duty, and the forfeiture of vessels used in that unlawful trade, prizes taken in war, and fees required to be paid to various officials when their services are employed, are minor sources of revenue.
3. When all these are not sufficient, as in time of war, or when an immense war debt is to be paid, direct taxes are laid on the property and business of the country. This is called
THE INTERNAL REVENUE,
 
and is borne with more or less patience, according as the people regard the end to be gained important. The revenues of the States are mostly derived from this source. They are not allowed to raise their revenue from foreign commerce, since that would be a tax on goods liable to be paid by the people of another State.
4. The necessity of laying large direct taxes does not, in this country, often arise in case of the General Government; but during and after the gigantic Civil War between the North and South, when enormous expenses had to be met, and the credit of the government sustained, the direct taxes became very large indeed. In 1861 Congress passed the “Internal Revenue Law,” by which twenty millions of dollars were to be annually raised from direct taxes on houses and lands in each of the States and Territories.
By subsequent acts not only houses and lands were taxed, but almost every sort of property and business. Licenses were required for persons to carry on their profession, trade, or business; incomes were taxed; deeds, mortgages, notes, bonds, bank checks, and papers of almost every kind were invalid unless they had a revenue stamp upon them. Manufacturers had to pay a certain per-c............