government.

The power to tax is legislative, and, according to our theory, can be
exercised only by representatives directly elected by the people. The
refusal of England in the last century to extend this principle of "no
taxation without representation" to her colonies in America, lost her
these possessions. A government to be stable and efficient must possess
adequate powers for the collection of its revenue. The miserable
condition to which the old Confederation was reduced by reason of the
inadequacy of its powers in this respect, has already been discussed.
Says Fiske: "Between the old Continental Congress and the government
under which we have lived since 1789, the differences were many; but by
far the most essential difference was that the new government could
raise money by taxation, and was thus enabled properly to carry on the
work of governing."[1]

[Footnote 1: _Civil Government_, p. 77.]

The sources of government revenue other than taxes, are various, and
differ in different countries. In our consideration of the revenues and
expenditures of our national, state, and local governments we shall have
occasion to notice the various means by which their treasuries are
filled.

_#The Federal Government#_ raises its revenues independently of the
other governing bodies, from different sources, and by a different set
of officials. Besides taxation, the principal source of revenue is from
the sale of public lands. Federal taxes are of two kinds:

1. Customs duties.