FARMING THE TAXES. A method of collecting taxes indirectly through contractors instead of directly through officials of the State. The system is best known through the publicani of Rome, who formed companies or syndicates to farm not only the indirect taxation of the state, but also sources of the state revenues, such as mines, fisheries, etc. (see PUBLICANI).
In monarchical Europe, which grew out of the ruins of the Roman empire, the revenue was almost universally farmed, but the system was gradually narrowed down until only indirect taxes became the subject of farming. France from the 16th to the 18th centuries is the most interesting modern example. Owing to the hopeless condition of its revenues, the French government was continually in a state of anticipating its resources, and was thus entirely in the hands of financiers. In 168r the indirect taxes were farmed collectively to a single company of forty capitalists (ferme generale), increased to sixty in 1755, and reduced to the original number in 1780. These farmers-general were appointed by the king for six years, and paid an annual fixed sum every year in advance. The taxes which they collected were the customs (douanes or traites), the gabelle or salt tax, local taxes or octrois (entrees, etc.), and various smaller taxes. They were under the management of a controller-general, who had a central office in Paris. The office of farmer-general was the object of keen compe tition, notwithstanding that the successful candidates had to share a considerable part of the profits of the post with ministers, courtiers, favourites, and even the sovereign, in the shape of gifts (croupes) and pensions.
The rapacity of the farmers-general was proverbial, and the loss to the revenue by the system was great, while very consider able hardships were inflicted on the poorer contributors by the unscrupulous methods of collection practised by the underlings of the farmers. In addition, the unpopular nature of the taxes caused deep discontent, and the detestation in which the farmers-general were held culminated in the execution of 32 of them during the French Revolution and the sweeping away of the system.