American Institutions and Their Influence

Before we can affirm whether a democratic form of government is economical or not, we must establish a suitable standard of comparison. The question would be one of easy solution if we were to attempt to draw a parallel between a democratic republic and an absolute monarchy. The public expenditure would be found to be more considerable under the former than under the latter; such is the case with all free states compared to those which are not so. It is certain that despotism ruins individuals by preventing them from producing wealth, much more than by depriving them of the wealth they have produced: it dries up the source of riches, while it usually respects acquired property. Freedom, on the contrary, engenders far more benefits than it destroys; and the nations which are favored by free institutions, invariably find that their resources increase even more rapidly than their taxes.

My present object is to compare free nations to each other; and to point out the influence of democracy upon the finances of a state.

Communities, as well as organic bodies, are subject to certain fixed rules in their formation which they cannot evade. They are composed of certain elements which are common to them at all times and under all circumstances. The people may always be mentally divided into three distinct classes. The first of these classes consists of the wealthy; the second, of those who are in easy circumstances; and the third is composed of those who have little or no property, and who subsist more especially by the work which they perform for the two superior orders. The proportion of the individuals who are included in these three divisions may vary according to the condition of society; but the divisions themselves can never be obliterated.

It is evident that each of these classes will exercise an influence, peculiar to its own propensities, upon the administration of the finances of the state. If the first of the three exclusively possess the legislative power, it is probable that it will not be sparing of the public funds, because the taxes which are levied on a large fortune only tend to diminish the sum of superfluous enjoyment, and are, in point of fact, but little felt. If the second class has the power of making the laws, it will certainly not be lavish of taxes, because nothing is so onerous as a large impost which is levied upon a small income. The government of the middle classes appears to me to be the most economical, though perhaps not the most enlightened, and certainly not the most generous, of free governments.

But let us now suppose that the legislative authority is vested in the lowest orders: there are two striking reasons which show that the tendency of the expenditure will be to increase, not to diminish.

As the great majority of those who create the laws are possessed of no property upon which taxes can be imposed, all the money which is spent for the community appears to be spent to their advantage, at no cost of their own; and those who are possessed of some little property readily find means of regulating the taxes so that they are burthensome to the wealthy and profitable to the poor, although the rich are unable to take the same advantage when they are in possession of the government.

In countries in which the poor168 should be exclusively invested with the power of making the laws, no great economy of public expenditure ought to be expected; that expenditure will always be considerable; either because the taxes do not weigh upon those who levy them, or because they are levied in such a manner as not to weigh upon those classes. In other words, the government of the democracy is the only one under which the power which lays on taxes escapes the payment of them.

It may be objected (but the argument has no real weight) that the true interest of the people is indissolubly connected with that of the wealthier portion of the community, since it cannot but suffer by the severe measures to which it resorts. But is it not the true interest of kings to render their subjects happy; and the true interest of nobles to admit recruits into their order on suitable grounds? If remote advantages had power to prevail over the passions and the exigencies of the moment, no such thing as a tyrannical sovereign or an exclusive aristocracy could ever exist.

Again, it may be objected that the poor are never invested with the sole power of making the laws; but I reply, that wherever universal suffrage has been established, the majority of the community unquestionably exercises the legislative authority, and if it be proved that the poor always constitute the majority, it may be added, with perfect truth, that in the countries in which they possess the elective franchise, they possess the sole power of making laws. But it is certain that in all the nations of the world the greater number has always consisted of those persons who hold no property, or of those whose property is insufficient to exempt them from the necessity of working in order to procure an easy subsistence. Universal suffrage does therefore in point of fact invest the poor with the government of society.

The disastrous influence which popular authority may sometimes exercise upon the finances of a state, was very clearly seen in some of the democratic republics of antiquity, in which the public treasure was exhausted in order to relieve indigent citizens, or to supply the games and theatrical amusements of the populace. It is true that the representative system was then very imperfectly known, and that, at the present time, the influence of popular passions is less felt in the conduct of public affairs; but it may be believed that the delegate will in the end conform to the principles of his constituents, and favor their propensities as much as their interests.

The extravagance of democracy is, however, less to be dreaded in proportion as the people acquires a share of property, because on the one hand the contributions of the rich are then less needed, and on the other, it is more difficult to lay on taxes which do not affect the interests of the lower classes. On this account universal suffrage would be less dangerous in France than in England, because in the latter country the property on which taxes may be levied is vested in fewer hands. America, where the great majority of the citizens is possessed of some fortune, is in a still more favorable position than France.

There are still farther causes which may increase the sum of public expenditures in democratic countries. When the aristocracy governs, the individuals who conduct the affairs of state are exempted, by their own station in society, from every kind of privation: they are contented with their position; power and renown are the objects for which they strive; and, as they are placed far above the obscurer throng of citizens, they do not always distinctly perceive how the wellbeing of the mass of the people ought to redound to their own honor. They are not indeed, callous to the sufferings of the poor, but they cannot feel those miseries as acutely as if they were themselves partakers of them. Provided that the people appear to submit to its lot, the rulers are satisfied and they demand nothing farther from the government. An aristocracy is more intent upon the means of maintaining its influence, than upon the means of improving its condition.

When, on the contrary, the people is invested with the supreme authority, the perpetual sense of their own miseries impels the rulers of society to seek for perpetual meliorations. A thousand different objects are subjected to improvement; the most trivial details are sought out as susceptible of amendment; and those changes which are accompanied with considerable expense, are more especially advocated, since the object is to render the condition of the poor more tolerable, who cannot pay for themselves.

Moreover, all democratic communities are agitated by an ill-defined excitement, and by a kind of feverish impatience, that engenders a multitude of innovations, almost all of which are attended with expense.

In monarchies and aristocracies, the natural taste which the rulers have for power and for renown, is stimulated by the promptings of ambition, and they are frequently incited by these temptations to very costly undertakings. In democracies, where the rulers labor under privations, they can only be courted by such means as improve their wellbeing, and these improvements cannot take place without a sacrifice of money. When a people begins to reflect upon its situation, it discovers a multitude of wants, to which it had not before been subject, and to satisfy these exigencies, recourse must be had to the coffers of the state. Hence it arises, that the public charges increase in proportion as civilisation spreads, and that the imposts are augmented as knowledge pervades the community.

The last cause which frequently renders a democratic government dearer than any other is, that a democracy does not always succeed in moderating its expenditure, because it does not understand the art of being economical. As the designs which it entertains are frequently changed, and the agents of those designs are more frequently removed, its undertakings are often ill-conducted or left unfinished; in the former case the state spends sums out of all proportion to the end which it proposes to accomplish; in the second, the expense itself is unprofitable.

TENDENCIES OF THE AMERICAN DEMOCRACY AS REGARDS THE SALARIES OF PUBLIC OFFICERS

In Democracies those who establish high Salaries have no Chance of profiting by them.—Tendency of the American Democracy to increase the Salaries of subordinate Officers, and to lower those of the more important functionaries.—Reason of this.—Comparative Statement of the Salaries of public Officers in the United States and in France.

There is a powerful reason which usually induces democracies to economise upon the salaries of public officers. As the number of citizens who dispense the remuneration is extremely large in democratic countries, so the number of persons who can hope to be benefited by the receipt of it is comparatively small. In aristocratic countries, on the contrary, the individuals who appoint high salaries, have almost always a vague hope of profiting by them. These appointments may be looked upon as a capital which they create for their own use, or at least, as a resource for their children.

It must, however, be allowed that a democratic state is most parsimonious toward its principal agents. In America the secondary officers are much better paid, and the dignitaries of the administration much worse than they are elsewhere.

These opposite effects result from the same cause: the people fixes the salaries of the public officers in both cases; and the scale of remuneration is determined by the consideration of its own wants. It is held to be fair that the servants of the public should be placed in the same easy circumstances as the public itself;169 but when the question turns upon the salaries of the great officers of state, this rule fails, and chance alone can guide the popular decision. The poor have no adequate conceptions of the wants which the higher classes of society may feel. The sum which is scanty to the rich, appears enormous to the poor man, whose wants do not extend beyond the necessaries of life: and in his estimation the governor of a state, with his two or three hundred a year, is a very fortunate and enviable being.170 If you undertake to convince him that the representative of a great people ought to be able to maintain some show of splendor in the eyes of foreign nations, he will perhaps assent to your meaning; but when he reflects on his own humble dwelling, and on the hard-earned produce of his wearisome toil, he remembers all that he could do with a salary which you say is insufficient, and he is startled or almost frightened at the sight of such uncommon wealth. Besides, the secondary public officer is almost on a level with the people, while the others are raised above it. The former may therefore excite his interest, but the latter begins to arouse his envy.

This is very clearly seen in the United States, where the salaries seem to decrease as the authority of those who receive them augments.171

Under the rule of an aristocracy it frequently happens, on the contrary, that while the high officers are receiving munificent salaries, the inferior ones have not more than enough to procure the necessaries of life. The reason of this fact is easily discoverable from causes very analogous to those to which I have just alluded. If a democracy is unable to conceive the pleasures of the rich, or to see them without envy, an aristocracy is slow to understand, or, to speak more correctly, is unacquainted with the privations of the poor. The poor man is not (if we use the term aright) the fellow of the rich one; but he is the being of another species. An aristocracy is therefore apt to care but little for the fate of its subordinate agents: and their salaries are only raised when they refuse to perform their service for too scanty a remuneration.

It is the parsimonious conduct of democracy toward its principal officers, which has countenanced a supposition of far more economical propensities than any which it really possesses. It is true that it scarcely allows the means of honorable subsistence to the individuals who conduct its affairs; but enormous sums are lavished to meet the exigencies or to facilitate the enjoyments of the people.172 The money raised by taxation may be better employed, but it is not saved. In general, democracy gives largely to the community, and very sparingly to those who govern it. The reverse is the case in the aristocratic countries, where the money of the state is expended to the profit of the persons who are at the head of affairs.

DIFFICULTY OF DISTINGUISHING THE CAUSES WHICH CONTRIBUTE TO THE ECONOMY OF THE AMERICAN GOVERNMENT

We are liable to frequent errors in the research of those facts which exercise a serious influence upon the fate of mankind, since nothing is more difficult than to appreciate their real value. One people is naturally inconsistent and enthusiastic; another is sober and calculating; and these characteristics originate in their physical constitution, or in remote causes with which we are unacquainted.

There are nations which are fond of parade and the bustle of festivity, and which do not regret the costly gaieties of an hour. Others, on the contrary, are attached to more retiring pleasures, and seem almost ashamed of appearing to be pleased. In some countries the highest value is set upon the beauty of public edifices; in others the productions of art are treated with indifference, and everything which is unproductive is looked down upon with contempt. In some renown, in others money, is the ruling passion.

Independently of the laws, all these causes concur to exercise a very powerful influence upon the conduct of the finances of the state. If the Americans never spend the money of the people in galas, it is not only because the imposition of taxes is under the control of the people, but because the people takes no delight in public rejoicings. If they repudiate all ornament from their architecture, and set no store on any but the more practical and homely advantages, it is not only because they live under democratic institutions, but because they are a commercial nation. The habits of private life are continued in public; and we ought carefully to distinguish that economy which depends upon their institutions, from that which is the natural result of their manners and customs.

WHETHER THE EXPENDITURE OF THE UNITED STATES CAN BE COMPARED TO THAT OF FRANCE

Two Points to be established in order to estimate the Extent of the public Charges, viz.: the national Wealth, and the Rate of Taxation.—The Wealth and the Charges of France not accurately known.—Why the Wealth and Charges of the Union cannot be accurately known.—Researches of the Author with a View to discover the Amount of Taxation in Pennsylvania.—General Symptoms which may serve to indicate the Amount of the public Charges in a given Nation.—Result of this Investigation for the Union.

Many attempts have recently been made in France to compare the public expenditure of that country with the expenditure of the United States; all these attempts have, however, been unattended by success; and a few words will suffice to show that they could not have had a satisfactory result.

In order to estimate the amount of the public charges of a people, two preliminaries are indispensable; it is necessary, in the first place, to know the wealth of that people; and in the second, to learn what portion of that wealth is devoted to the expenditure of the state. To show the amount of taxation without showing the resources which are destined to meet the demand, is to undertake a futile labor; for it is not the expenditure, but the relation of the expenditure to the revenue, which it is desirable to know.

The same rate of taxation which may easily be supported by a wealthy contributor, will reduce a poor one to extreme misery. The wealth of nations is composed of several distinct elements, of which population is the first, real property the second, and personal property the third. The first of these three elements may be discovered without difficulty.

Among civilized nations it is easy to obtain an accurate census of the inhabitants; but the two others cannot be determined with so much facility. It is difficult to take an exact account of all the lands in a country which are under cultivation, with their natural or their acquired value; and it is still more impossible to estimate the entire personal property which is at the disposal of the nation, and which eludes the strictest analysis by the diversity and number of shapes under which it may occur. And, indeed, we find that the most ancient civilized nations of Europe, including even those in which the administration is most central, have not succeeded, as yet, in determining the exact condition of their wealth.

In America the attempt has never been made; for how would such an investigation be possible in a country where society has not yet settled into habits of regularity and tranquillity; where the national government is not assisted by a multitude of agents whose exertions it can command, and direct to one sole end; and where statistics are not studied, because no one is able to collect the necessary documents, or can find time to peruse them? Thus the primary elements of the calculations which have been made in France, cannot be obtained in the Union; the relative wealth of the two countries is unknown: the property of the former is not accurately determined, and no means exist of computing that of the latter.

I consent, therefore, for the sake of the discussion, to abandon this necessary term of the comparison, and I confine myself to a computation of the actual amount of taxation, without investigating the relation which subsists between the taxation and the revenue. But the reader will perceive that my task has not been facilitated by the limits which I here lay down for my researches.

It cannot be doubted that the central administration of France, assisted by all the public officers who are at its disposal, might determine with exactitude the amount of the direct and indirect taxes levied upon the citizens. But this investigation, which no private individual can undertake, has not hitherto been completed by the French government, or, at least, its results have not been made public. We are acquainted with the sum total of the state; we know the amount of the departmental expenditure; but the expenses of the communal divisions have not been computed, and the amount of the public expenses of France is unknown.

If we now turn to America, we shall perceive that the difficulties are multiplied and enhanced. The Union publishes an exact return of the amount of its expenditure; the budgets of the four-and-twenty states furnish similar returns of their revenues; but the expenses incident to the affairs of the counties and the townships are unknown.173

The authority of the federal government cannot oblige the provincial governments to throw any light upon this point; and even if these governments were inclined to afford their simultaneous co-operation, it may be doubted whether they possess the means of procuring a satisfactory answer. Independently of the natural difficulties of the task, the political organization of the country would act as a hindrance to the success of their efforts. The county and town magistrates are not appointed by the authorities of the state, and they are not subjected to their control. It is therefore very allowable to suppose, that if the state was desirous of obtaining the returns which we require, its designs would be counteracted by the neglect of those subordinate officers whom it would be obliged to employ.174 It is, in point of fact, useless to inquire what the Americans might do to forward this inquiry, since it is certain that they have hitherto done nothing at all. There does not exist a single individual at the present day, in America or in Europe, who can inform us what each citizen of the Union annually contributes to the public charges of the nation.175

If I attempt to compare the French budget with the budget of the Union, it must be remembered that the latter embraces much fewer objects than the central government of the former country, and that the expenditure must consequently be much smaller. If I contrast the budgets of the departments to those of the states which constitute the Union, it must be observed, that as the power and control exercised by the states is much greater than that which is exercised by the departments, their expenditure is also more considerable. As for the budgets of the counties, nothing of the kind occurs in the French system of finance; and it is, again, doubtful whether the corresponding expenses should be referred to the budget of the state or to those of the municipal divisions.

Municipal expenses exist in both countries, but they are not always analogous. In America the townships discharge a variety of offices which are reserved in France to the departments or the state. It may, moreover, be asked, what is to be understood by the municipal expenses of America. The organization of the municipal bodies or townships differs in the several states: Are we to be guided by what occurs in New England or in Georgia, in Pennsylvania or the state of Illinois?

A kind of analogy may very readily be perceived between certain budgets in the two countries: but as the elements of which they are composed always differ more or less, no fair comparison can be instituted between them.

Hence we must conclude, that it is no less difficult to compare the social expenditure, than it is to estimate the relative wealth of France and of America. I will even add, that it would be dangerous to attempt this comparison; for when statistics are not founded upon computations which are strictly accurate, they mislead instead of guiding aright. The mind is easily imposed upon by the false affectation of exactitude which prevails even in the mis-statements of the science, and adopts with confidence the errors which are apparelled in the forms of mathematical truth.

We abandon, therefore, our numerical investigation, with the hope of meeting with data of another kind. In the absence of positive documents, we may form an opinion as to the proportion which the taxation of a people bears to its real prosperity, by observing whether its external appearance is flourishing; whether, after having discharged the calls of the state, the poor man retains the means of subsistence, and the rich the means of enjoyment; and whether both classes are contented with their position, seeking however to meliorate it by perpetual exertions, so that industry is never in want of capital, nor capital unemployed by industry. The observer who draws his inferences from these signs will, undoubtedly, be led to the conclusion, that the American of the United States contributes a much smaller portion of his income to the state than the citizen of France. Nor, indeed, can the result be otherwise.

A portion of the French debt is the consequence of two successive invasions; and the Union has no similar calamity to fear. A nation placed upon the continent of Europe is obliged to maintain a large standing army; the isolated position of the Union enables it to have only 6,000 soldiers. The French have a fleet of 300 sail; the Americans have 52 vessels.176 How, then, can the inhabitant of the Union be called upon to contribute as largely as the inhabitant of France? No parallel can be drawn between the finances of two countries so differently situated.