FINANCE. Massachusetts has always been one of the leading States in matters of finance and taxation, and its methods have been often fol lowed by other States. In 1646 the Colony intro duced a system of direct taxation and a poll tax, and soon after a 'faculties' tax, which had income as a basis. The first treasurer's report. though crude, was published in 1655. When, in 1090 Massachusetts was reorganized under a provincial charter, direct taxation upon property and a poll tax were again made the main foundation of the revenue system. In the middle of the eighteenth century lotteries were established for many ex traordinary and even normal needs of the treas ury. The system was abandoned in 1765 only to be reestablished at the advent of the 1Zevolution. In 1786 the direct debt of the State was $5,000, 000 and as much more was the State's share of the national debt. The immediate current liabili ties were $1,500.000. In 1790, however, a large part of this debt was assumed by the Federal Government. By 1791 the State debt was almost canceled. A well regulated system of taxation of corporations grew up in Massachusetts in the early part of the nineteenth century. Banks were , taxed after 1812, and insurance companies after 1832. The public debt grew during the Civil '
War. It amounted at one time to more than $32,000,000. By 1871, however, it had been re duced to $16.573.000, for the payment of which there was created a sinking fund of $8,261,000. The public debt grew again rapidly in the seven ties because of many railroad loans and other public improvements. but it was always well pro teeted with a sinking fund. On December 31, 1901, the funded debt for which the State was directly responsible was $25.738.223. The con tingent debt for which the State loaned its credit to various cities was $51.958.412. The total cash in the treasury was $6,630,106; the securities were valued at $29,723,729. The general revenues for the year 1901 were $22.086.174 (30 per cent. from loans, 25 per cent. from corporation taxes, 14 per cent. from taxes on banks and insurance companies, and only 8 per cent. from general property tax). The expenditures were $20,859, 496. Besides there were a number of special funds for various purposes, receipts on which amounted I to $25.257.825 and payments to 825.719.889.