Papers Relating to the Foreign Relations of the United States, Transmitted to Congress with the Annual Message of the President, December 4, 1871
C. C. Andrews to Mr. Fish
Sir: I have the honor to inclose herewith a report which I have prepared on the finances of Sweden, including an explanation of the various kinds of taxes and a statement of the public debt.
I am, &c.,
Inclosure.
Report of the finances of Sweden.
Report to the Department of State, by C. C Andrews, minister resident of the United States at Stockholm, on the finances of Sweden.
I. CAPITAL RECEIPTS.
Under this head is included first “Allmänn bexillning,” (general aid or contribution,) which also comprises the income tax. The statute, though general, is annually enacted by the Diet, and separately promulgated, as are all the new laws by the King. A translation [Page 807] of this law, with explanatory comments, is annexed, marked A. Annual receipts
| from the “Allmän bevillning” in riksdalers, (3.75 riksdalers=$1,) riksdalers | 3,000,000 00 |
| Other resources, including profits on shares in the States Bank, which has a paid-in capital of 25,000,000 riksdalers; also including certain stamp duties, &c., &c.; say | 2,244,839 85 |
| From State loan | 5,000,000 00 |
| Total riksdalers | 10,244,839 85 |
The above funds are administered by the public debt office, or “Riks” gälds-Kontoret, which also has the administration of the whole public debt. Its principal officers are a board of commissioners or deputies, who are annually elected by the Diet. It is therefore an institution under the peculiar charge of the Diet. The Swedish finances being administered by two independent offices, are, on that account, less readily understood.
II. ORDINARY RECEIPTS.
The several items under this head are explained in the annexed paper, B. These funds, together with the extraordinary receipts, are administered in the states office, “Riks Nontoret.” Total receipts (ordinary) as estimated for 1872, 16,845,000 riksdalers.
III. EXTRAORDINARY RECEIPTS.
| Riksdalers. | |
| The Diet of 1871, estimated for 1872, custom receipts | 15,000,000 00 |
| Post receipts | 2,230,000 00 |
| Paper stamp fees | 1,350,000 00 |
| Distillation of brandy (bränvinstill verk nighsofgift) increased 10 öre per kanna by Diet of 1871, and now 80 öre per kanna | 10,800,000 00 |
| Total | 46,225,000 00 |
| To which add funds in “Riks” gälds-Kontoret | 10,244,839 85 |
| Total receipts | 56,469,839 85 |
| (At 3.75 riksdalers) | $15,058,623 33 |
IV. DISBURSEMENTS.
For ordinary expenses for 1872, the Diet has appropriated for—
| Riksdalers. | |
| Royal household | 1,417,000 00 |
| Department of justice | 2,532,500 00 |
| Foreign affairs | 603,800 00 |
| War department | 9,994,500 00 |
| Navy department | 4,068,500 00 |
| Civil, (interior) | 7,704,100 00 |
| Finance | 7,329,700 00 |
| Ecclesiastical, including education | 5,664,700 00 |
| Pensions and retired list | 1,530,200 00 |
| 40,845 000 00 |
For extraordinary expenses 1872, the Diet appropriated for—
| Department of justice | 100,000 00 | |
| War Department | 4,113,639 85 | |
| Navy Department | 920,000 00 | |
| Civil, (for railways) | 4,480,700 00 | |
| Finance | 143,100 00 | |
| Church and school, (ecclesiastical) | 439,400 00 | |
| Pensions and retired list | 428,000 00 | |
| 10,524,839 85 | ||
| Total | 51,469,839 85 | |
| To which add interest on public debt | 5,000,000 00 | |
| Grand total | 56,469,839 85 | |
| $15,058,623 00 |
V. PUBLIC DEBT.
Amount, 119,352,686.67 riksdalers, ($31,827,115.) A statement of the debt of Sweden is annexed, and marked C. The Diet of 1871 authorized the issue of 9,000,000 riksdalers of bonds of the forty-million loan in 1871 and 1872. A peculiar feature about this debt is, that it has been contracted almost wholly for railroads, which the loans have built, and are, for the most part, the property of the state. It is unnecessary to say that the securities of Sweden stand well in the market. The population of Sweden, December 31, 1869, was 4,158,757.
VI. GENERAL REMARKS.
No inconsiderable amount of the taxation in Sweden is for local purposes, such as the support of schools for the lower classes and the care of the poor. The receipts from the exclusively poor tax in Stockholm, for example, for the year 1867, were 481,644.49 riksdalers. The number of persons exempted from payment of taxes is as follows: Soldiers of the regular army, 3,924; on account of poverty, men, 147,385; women, 252,018; together, 399,403; on account of under or over age, males, 815,176; females, 807,201.
While it will be remarked how large a sum is appropriated for military purposes by a country whose relations with all other states are amicable, and which it would seem could by no reasonable possibility become involved in war, it is to be borne in mind that a still further tax is imposed on the people for the maintenance of the national or Indelta army, numbering about 30,000. This expenditure for the most part does not appear in the budget; the soldiers being directly supported by the agricultural population on the proportion of one soldier to fifteen farms. The Indelta soldiers perform military duty during the most of May and June each year, which, of course, is when the time of the agriculturist is precious. The abolition of the institution is a matter which is considerably agitated.
There are seldom any defalcations by collectors or holders of the public funds. The revenue officers, though paid small salaries, hold during good behavior, and, perhaps on that account, are less tempted to misconduct. (For some information as to stamp duties, fees, &c., see report of ex-Consul Thomas, p. 358, Commercial Relations, 1864; as to the Indelta, ex-Minister Bartlett’s No. 24, Diplomatic Correspondence, 1868, 2,104.]
A.
The bevillning, or general tax law of Sweden, annually enacted by the Diet.
Collection of Swedish statutes, 1838, No. 65. (To be read from the chair.)
His Royal Majesty’s gracious notification concerning the common tax (bevillning) voted by the ordinary diet of the year 1868. (“Bevillning” originally as supplementary tax or aid to cover a deficit in the ordinary resource of the state.)
Dated at the palace, Stockholm, September 8, 1868.
We, Charles, by the grace of God, King of Sweden, Norway, the Goths, and the Vandals, to all to whom these presents shall come send greeting:
Whereas the Diet at its last session, after having examined the wants of the state, has undertaken a general tax for the year 1869 of 2,600,000 riksdaler rix mynt; and whereas by a petition in writing, bearing date the 15th of May last, the Diet has stated the alterations adopted by the Diet for its part in the existing statute of general taxes and in the instructions regarding the manner of assessing such taxes, and has prayed that we might be pleased for the government of every one to publish the said statute which, as altered by the Diet, is of the following tenor and contents, viz:
Tax of the Swedish Diet for the year 1869, and the years ensuing, up to the end of the year, in the course whereof another statute of taxes will have been established by the Diet.
Article I.—Personal protection tax.
§ 1. Every individual entered in the lists of taxable persons, (mantals längd,) and chargeable according to existing laws with poll-money, is liable to pay a tax for individual protection, as follows: a man, 40 öre; a woman, 20 öre.
[Page 809]Article II.—(A.)—Tax on real property.
§ 2. For every real estate situated in the kingdom, except those belonging to the government, the owner shall pay a tax proportionate to the assessed value thereof.
The respective tenant is liable to pay tax: (a.) For crown lands and parcels of such lands held by heritable tenure. (b.) For lands, parcels of lands, and messuages or separate buildings belonging to the government, and which either are allotted to public officers for their residence or as part of their income, or else held on lease for life.
This tax is raised.
1st. On landed property at the rate of three öre (81/100 of a cent) for every even sum of hundred riksdaler, $26 48 of the assessed value.
2d. For real property of any other description, at the rate of five öre for every even sum of hundred riksdalers of the assessed value. From this tax the following are exempted: communities, (parishes,) academies, (universities,) scientific associations, public schools, and charitable institutions, for buildings belonging to them and to corporations of military officers, and erected on regiment camps, and used during the time of the yearly encampments, and also churches and oratories belonging to private individuals, still upon the understanding that such buildings do not yield any revenue to their owners by way of lease or otherwise; in the contrary case those buildings shall be assessed according to the respective amount of revenue, and shall be chargeable with tax at the respective rates stipulated above. Further, proprietors of canals, railways, and other highways are exempt from tax for the land occupied by the canal or the way, and also for their works and structures, (they are not exempt from income tax.)
Frälseränta (or quitrent) land is also considered as a real estate of the kind mentioned in section 2 of this paragraph.
§ 3. Every real estate shall be estimated at the actual value thereof, ascertained by means of purchase agreements, leases, amount of rents, valuations made with a view to mortgaging such estate, or insuring the same against fire, together with other statements given or informations obtained relatively to the nature and the revenue of each separate estate; in which respect the enactments contained in the instructions issued concerning the mode of assessing taxes are to be strictly complied with.
The capital value of a quitrent is to be estimated at twenty times the sum to which the same rent amounted according to the government rates of the year next preceding, unless the rent, pursuant to § 14 in the royal statute of May 11, 1855, is payable at average rates, (“marhegangepris rates, fixing for every year the cash price of rents reserved in kind,) which in such event shall form the basis in calculating the amount of the quitrent. Still, it is understood that the principal value of quitrent is always to be calculated in even amounts of riksdalers, and accordingly any excess of öre shall not be counted, unless it exceeds 50 öre, in which latter case the same is counted for one full rixsdaler.
§ 4. In estimating real estates, separate values are to be assessed: (a.) In towns, for the building ground, the buildings thereon, and the land, if any, applied to agriculture; (b.) In the country, for every separate estate, (“heman,”) or any parcel of such estate with separate ownership, and every tenement separated forever or for certain periods from the manor to which it originally appertained, and also for such buildings as are not used for purposes connected with agriculture, or as are erected on country-seats or other smaller places of a like description, so as to form the essential value of such country-seats or places.
§ 5. The tax chargeable on any real estate is to be assessed and paid at the place where the estate is situated, and account therefor to be rendered at the same place by the collector.
B.—Tax on income from capital or labor.
§ 6. On any income from capital, as well as labor, a tax shall be paid at the rate of one per cent. of the net proceeds of the income.
As income of capital are considered interest of money lent out, or vested in bonds bearing interest, or deposited with banks or banking establishments or with indiduals, also interest and such profit as cannot be included in the denomination income from labor. As income of labor are considered any income accruing from trade, profession, service, or office, as profit by mining, with all works, trades, and establishments belonging thereto; by corn and saw mills, factories, machine-manufactories, distilleries, and other works for making or improving merchandise and commodities; by banking, commercial and ship-owners’ business, navigation, and any craft or trade not relative to agriculture; by canals, railroads, and other highways opened to public traffic; the profit earned from the exercise of any science, art, or handiwork over and above the expenses connected therewith; wages, appointments, salaries, and allowances, fees, or any other benefit from public service or private employment, and pensions, yearly gratuities, life-annuities, and reserved uses in real property, (“undantages-förma?ne.”
Officers or functionaries belonging to the diplomatic legation of Sweden and Norway in foreign countries, or else employed in the foreign department, are chargeable with [Page 810] income tax in Sweden for such part of their salaries as is equal to the contribution of the Swedish government to the same salaries.
The lessees of such real estates of the government as are exempted from tax, in pursuance of § 2, are liable to pay tax for the income earned by them from the said leases.
§ 9. Basis for calculation of income.—1st. As regards the income from capital or labor whereon tax is levied, no deduction is allowed for the maintenance of the taxable individual and of his family, nor for any expenses falling under that head.
2d. In the income for which tax is payable by individuals enjoying salaries, wages, fees, allowances, &c., &c., shall not be included: income of salaried officers from places or lands appointed for their residence, and for which places or lands the tenant has already been charged with land-tax; nor that part of the pay of officers in the national army which forms the revenue from such places and lands of the last-mentioned description as are let out on lease through the respective board of management, and for which land-tax is paid; nor any amount granted for defraying special expenses connected with the performance of public offices or commissions, such as traveling expenses, fees for attendance at any other place than the usual place of residence of the functionary or other party attending, fees or allowance for ordered military service out or away from the respective station, pay for active service in time of war, fees on allowance to members of the Diet, or auditors when acting at other places than their habitual place of residence, the “provost tubs” of the clergy, (“prosteluuaor,” out of the tithe-corn one tub of corn is generally deducted in every parish for the benefit of the respective ecclesiastical provost, originally as a remuneration for trouble in collecting the tithes, and the indemnity paid to certain military officers in the national army for want of dwelling-houses at their official seats of residence.
Deduction is likewise allowed for the following expenses, to wit: the payments incumbent on functionaries, in their official capacity, to pension-funds or funds for the support of widows, children, or others, wages or other renumeration to substitutes or assistants, the duties (perpetual) imposed on the clergy under the denominations of “Gärden” and “Taxen,” (“Gärden,” contribution toward defraying expenses of war “Taxen,” imposts payable by clergymen for immunity from the duty of lodging soldiers in their houses,) payments for interest and amortization to the fund for reimbursement of costs incurred on parsonages in the province of Scania, in constructing buildings beyond the extent enacted by law, (in the said province parsons are bound to build houses on their parsonages or to redeem those already existing, but they are entitled to reimbursement therefor from their successors, and in order to facilitate such reimbursement, in most instances causing a heavy outlay of capital, a special fund has been established for the purpose of advancing the necessary money;) the deductions made from the salaries of provincial governors and military officers to cover payments for interest and amortization to the sinking-fund for abolishing agreements respecting succession in office, (“achordsamortering,” formerly public functionaries, generally paid, before entering in office, to the predecessors or to their heirs, certain sums of money as fixed by agreement;) and traveling expenses in the performance of official duties if indemnity therefor, has not been specially fixed.
3. Incomes by mining, manufacture, commercial and shipping business, and any craft, trade, or profession, as well as extraordinary or not fixed incomes of public functionaries, are assessed for the current year, and are generally to be computed according to the circumstances during the year next preceding.
Wages totally or partially consisting of the produce of crown rents, (“indeltalöner,”) or otherwise payable in grain or in kind, shall be computed in cash according to the last government rates of the respective places.
In computing the net income from capital or work, the commissioners will for the rest have to comply with the enactments and special provisions in such respect, contained in the above-named instructions regarding the manner of assessing taxes.
§ 8. Exceptions, from the provisions contained in the sixth section.—Income from capital or work is not charged with tax, if the total yearly incomes of the ratable individual be less than 400 riksdalers, and should they not exceed 1,800 riksdalers, an amount of 300 riksdalers of the incomes by capital or work shall be exempted from tax.
Whenever a husband and his wife carry on separate trades or business, the before-mentioned immunity or modification shall be computable according to the aggregate amount of their incomes.
The following are further exempted from income tax:
(a.) The state, churches, academies, or scientific associations, the iron office, while the profits of this institution are applied to public benefit, (“jener-kontoret,” an establishment for the encouragement and the support of the iron trade,) the provincial agricultural societies, public schools, and establishments for instruction, stipend funds, (for the support of poor students, young artists, &c.,) pensioning funds, infirmaries and poor-houses, as well as other charitable institutions; savings-banks, towns, and communities; however, for wages, appointments, pensions, &c., paid out of the funds of the establishments and institutions enumerated above, income tax is to be levied on the individuals enjoying the same, at the rates fixed with respect to other persons enjoying [Page 811] wages or remunerations of like description. Further income tax shall also he charged on the net proceeds, which, during vacancies of ecclesiastical officers, devolve, by virtue of existing regulations, to funds under the management of the consistories of this kingdom, and, also, on advowsens, (“pateoni ecclesiarum,”) in Scania, Halland, and Bohuslän, who are entitled to obtain corn from this due to the crown or to the church, and likewise on such tithe belonging to churches in the said provinces as is not applied toward defraying salaries, or other ordinary expenditures, and on the cathedrals of the kingdom, for their revenue in corn or ground-rents, after deduction having been made only for such specially appointed ordinary salaries for which the individuals receiving the salaries are chargeable with tax, as provided before by the sixth section of the present article.
(b.) Members of the royal family, for the revenue appointed by the state and for income from capital.
(c.) The officers or functionaries holding employments in the Swedish and Norwegian legations abroad, or else belonging to the foreign department, for such part of their salaries as is equal to the contribution of the Norwegian government to the same salaries, and also the persons belonging to the legations and consulates of foreign powers in Sweden, together with their servants, unless they are Swedish subjects, or carry on mercantile business or other trade in this country.
(d.) Foreigners, staying in Sweden solely as travelers, and who do not carry on any trade in this country, nor are engaged in the service of the state, of a community, or of a Swedish subject.
§ 9. Income tax for capital or labor is assessed at the places mentioned below, viz, on banking companies at the place or places, one or more, where their business is principally carried on, and in default of such fixed places, where the board of directors have their seat.
On manufactures, merchants, or other tradesmen, where the manufactory is situated, or the business or trade is principally carried on; still, merchants in towns comprising more than one parish are, as regards their business in such towns, liable to pay tax in the parish where they are entered in the register of taxable individuals.
On owners of shares in vessels at the place where the managing owner is taxable, or in default of such managing owner in the port to which the vessel belongs.
On persons living abroad who are pensioned by the Swedish government or by a public establishment, at the place where the pension is paid; on any other individual liable to pay tax at the place where he or she is registered as a taxable individual.
§ 10. For income assessed at another place than that where the respective person is registered in the list of taxable individuals, as well as for the income of any company, no immunity or reduction according to § 8 is granted.
Article III.—(A.)—Tax chargeable on freehold estate.
§ 11. Besides the land tax payable on real property according to the assessed value thereof, as provided by the second article, the following duty shall continually, as heretofore, be raised on frank fees, [“frälse egendem,” freeholds “demeniam plenum landed estates are so called when the property in the soil “deminium funds” as well as the use or rent thereof “deminium fructus,” is jointly vested in a private owner, and not in the Crown; they enjoy certain immunities in consideration, among others, of the knight or horse service, “rusttjenst,” incumbent on the estates. However, as such immunities were found too great, especially when the said service was not performed, a separate tax was stipulated in the year 1719, and has been but slightly altered since that year,] viz, thirty öre for every “rusttjenst mark,” according to, filed and correct knight-service-roll, and to the land-roll of the province where the estate is situated [“rusttjenst mark,” the value expressed in the old coin marks, and fixed at very low rates of a few specified articles, given among others, as rent by the tenant, “rusttjenst persedlae.”]
One-half of the said duty or tax ceases whenever the service is actually performed, and no such duty is raised on mansion lands and messuages, (“säterier” och “lader-gården,”) nor on freeholds belonging to the Danvichs hospital, [“säteri,” lord’s seat or manor place; land where the lord of the manor resided within his fee, still the most privileged kind of landed property. “Ladugård,” literally signifying farm-yard and buildings, is a pauk messuage annexed to the mansion land for the benefit of the same, and it enjoys like immunities. “Danviks Hospital,” a charitable institution near Stockholm, possessing a number of pauk farms at several places.] Franktenements, the rent whereof is not reserved in such specified articles (“rusttjenst persedlar”) as formed the basis in fixing the number of troopers to be furnished, or which are not entered in the knight service-roll, are, in assessing the said duty, assimilated to the nearest adjoining freeholds of a comparable nature; but the following duties are raised on franktenements situated out of the parish of the manor place, viz: On those in Seania five riksdaler, thirty-one öre, and in Bleking five riksdaler, and in Halland and Bohnslän [Page 812] four riksdaler, eighty-four öre, all for every entire reduced “mantal,” and proportionally for parcels of such estate.
The frank farms situated within the boundaries of or in the same parish as a manor place pay only the half of the duty fixed for such estates when situate out of the parish, and they enjoy, in case troopers are furnished, the same deduction as that stipulated above.
For small estates of freehold tenure in Seania, Halland, Bleching, and Bohuslän, which are entered in the land-roll, fifty-three öre are payable for every tub of “hard corn” of the ground-rent fixed thereon. “Hemman,” home of a man, a landed estate forming by itself an independent possession. “Lägenhet,” an appurtenance of such an estate from which it has been separated. “Mantal,” “number of men,” signifies a piece of land sufficient to afford the means of subsistence to a farmer’s family, and a surplus necessary for paying ground-rent and other taxes. A “hemman” consists of one or more mantal, or fractions thereof. “Hartkorn” is a Danish term, signifying almost the same as the Swedish “mantal.”
(B.)—Tax on post and pilot estates.
§ 12. For post and pilot estates [crown lands held under the obligation to convey post and to furnish pilots] which are exempted from the duty of providing foot-soldiers or sailors for the navy and from carriage for the wants of the Crown, a special tax is payable at the rate of three riksdaler for every entire “mantal,” and at a proportional rate for the smaller estates, which tax, however, does not apply to the estates exempted only from the said carriage.
(C.)—Tax for right of commons.
§ 13. For the right of cutting wood in such commons belonging to the Crown as are toward a certain duty allotted to the use of iron-works, smelting-houses, or mines, a tax of twenty-five öre is raised on each cord or stack of wood, [“stafrum,” 27 cubic feet,] or on the corresponding quantity of eighteen tubs of charcoal; and this tax is levied, whether the said right of cutting wood is made use of or not, on the quantity of wood or charcoal for which the said duty [3 to 6 öre for the above-named quantities of wood or charcoal] is payable in each year, according to privileges or decisions.
§ 14. For the right of taking charcoal in district or parish commons, whenever the respective district or parish does not obtain payment therefor equal to the said tax, together with the duty which, according to the regulation of the year 1752, is paid for the use of Crown forests and commons, the tax shall be increased so as to render the (total) payment equal to what is paid for the use of the Crown forests.
(D.)—Tax on banking companies entitled to issue bank notes.
§ 15. Every private bank entitled to issue bank notes pays, besides the tax stipulated by the second article, a duty of two riksdaler for every sum of thousand riksdaler of the highest amount in bank notes which circulated at the same time during the year next preceding; and, in order to afford due information for the proper assessment of this duty, the board of directors to any such bank are bound, in the beginning of every year, to deliver a statement showing the said amount of bank notes, which statement shall be verified by the commission appointed by the respective provincial government.
(E.)—Tax payable by foreign merchants and traveling clerks.
§ 16. Any foreigner who travels about in the country, and who, on his own behalf or, as agent for others, offers for sale or contracts for the sale of foreign commodities, is bound, on his arrival in this kingdom, to deliver to the nearest collector of Crown taxes in the respective town a declaration in writing stating how long he intends to remain here, and on the same occasion he shall pay 100 riksdaler for the right of carrying on such business during a period not exceeding three months. If he desires to exercise the same right after the expiration of the before-mentioned period, he is further bound to pay in advance a monthly tax of 40 riksdaler, payable either at once for a longer period, or at least for one month at each time, but in every case for full months, unto the collector of Crown taxes in a town situate within the county (län) where he stays at the time of payment. Receipts for such payment are delivered on printed forms, which, on demand, are sent in by the national-debt office (Riksgälds Kontoret) to the county or provincial governments, to be held by them at the disposal of the collectors of Crown taxes residing in the towns. The said printed forms, issued part for 100 riksdaler and part for 40 riksdaler each, shall contain a memorandum referring to the enactments of existing regulations with regard to such kind of trade.
Should it be found that a foreigner offers for sale, or sells, foreign goods without having previously paid the fixed tax, he becomes liable to pay a fine of 500 riksdaler, [Page 813] besides the tax. Infringements of these provisions shall be submitted to trial before the police court, if there exists any at the place, or else before a common court, and the imposed fines are to be divided in equal shares between the accuser and the poor.
The collectors will have to pay the tax money so raised under the head “Tax paid by foreign merchants and traveling clerks” to the provincial treasury in the same manner as other funds collected for the account of the State; and returns of the blank receipts obtained and employed shall at the end of every year be sent in to the provincial government which will have to examine the same and to attest the correctness thereof; whereupon the returns are to be sent in to the national-debt office before the end of the month of January in the year then next ensuing, in order to be compared with the returns of the provincial treasuries and finally delivered to the royal board of the exchequer, where they are referred to in examining the accounts.
Respecting the blank receipts sent from the national-debt office to the provincial government, and which shall remain in the custody of the provincial treasuries until they are handed to the collectors, proper returns shall likewise be sent in to the said office before the end of the month of January in every year.
The provisions contained in the present paragraph relative to the special tax payable by foreign merchants and foreign traveling agents, do not apply to Norwegian subjects trading in Norwegian produces.
(E.)—Tax payable by foreigners for concerts and dramatic or other performances.
§ 17. Any foreign man or woman, who, with the permission of the proper authority on his or her own account and for money, gives a concert or other musical, theatrical, or equestrian performance, or exhibits rope-dancing, juggling, cosmoramas, panoramas, or other optical and artificial works, cabinets of wax figures, and of natural curiosities, or zoölogical collections, and so forth, shall pay for every separate concert, or for every day when plays or other performances are given at Stockholm or Gothenburg, 3 rixsdaler, and elsewhere in the kingdom, 1 riksdaler 50 öre. Before the permission is granted every such player, stage-manager, artist, or exhibitor is bound to prove either that the fixed tax for the respective period or occasion has been fully paid, or that approved security therefor has been lodged with the proper collector; and in the latter case the tax due for every month shall be fully paid before the expiration of the same month. At the time when such payment is made, the party liable to make payment shall hand to the collector a certificate issued in a town or city by the proper public accuser, and in a borough or in the country by the Crown bailiff, showing the number of concerts given or of the days of performance or exhibition, which certificates ought to accompany the account for the taxes paid to be rendered by the collector. Moreover, the collector’s receipt for the tax paid for the last performance given in the kingdom shall, before a new permission is granted, be produced by every such foreigner when arriving at another place with the same intention.
For the purpose of controlling the due payment of the tax in question, it is incumbent on the public officers mentioned above, at the end of every six months to state in writing to the proper provincial or county government how many performances of the said description have been given there during such period, or if no such performance has taken place likewise to give notice thereof; and further the collectors are bound, before the end of the month of January in the following year, to send in to the proper local government an account for the taxes of the said kind paid in the course of the preceding year; which accounts and returns shall accompany the Crown tax accounts when sent in to the board of the exchequer.
(G.)—Tax on gifts, wills, entails, inheritances and treasure-trove.
§18. 1.—For gift of real estate with absolute title property in the estate a tax of 1 per cent. is paid.
2. For wills of real or personal estate, or of capital or claims, with entire property in the estate or capital, a tax of one per cent. is payable.
3. For entailed estates (Fide Kommis) is paid, by every one who succeeds to or takes possession of such entailed estate or capital, one per cent. of the common (bevillning) tax.
4. From payment of the taxes provided in the foregoing three sections, are exempted: (a) Surviving husband or wife; (b) Relation in direct ascending or descending line, and brothers and sisters or their descendants; (c) Any other more distant heir for his legal hereditary share, and also for any amount given over and above the said share, provided that such excess does not reach the principal sum of 1,000 riksdaler; (d) Churches, universities, scientific associations, public schools, and other public establishments for instruction, funds for paying stipends or pensions, infirmaries or poor-houses, and other institutions of a philanthropic character; also (e) every one whenever the value of the estate or capital does not amount to 1,000 riksdaler.
5. For inheritance of real or personal estate which does not go to relatives in a direct [Page 814] ascending or descending line, brothers and sisters or their descendants, but to remote heirs there is payable 1 per cent. on the common (bevillning) tax where the inheritance amounts to 1,000 riksdaler.
§ 19. On payment of taxes for gifts, wills, entails or inheritances, the value of real estate is computed at the rate fixed at the last assessment of common tax, and the personal estate is estimated according to inventory, arbitration, or decision of the court of justice.
Whenever an entail falls to a person who by virtue of section 3 in § 18 is liable to pay tax for the same, the new donee or holder is bound within twelve months from taking possession of the entail, either to pay the fixed tax to the proper collector, or if a law-suit has been commenced respecting the right of entail, to give a good and approved security for the payment of the tax not later than one year from the decision of the law suit, by a judgment valid in law; in failure whereof the defaulter is subject to a fine of 10 per cent. of the amount of the tax to the benefit of the accuser.
With respect to the enforcement of the due computation and payment of, and account for, all taxes for gifts, wills, and inheritances the provisions embodied in a separate statute are to be complied with.
§ 20. For found property a tax shall be paid at the rate of 1 per cent. of the value if amounting to 1,000 riksdaler. However, such found articles as have an historic or antiquarian interest are exempted therefrom.
(H.)—Tax for playing-cards.
§ 21. Besides the common tax provided for the net proceeds of the business of any manufacture, playing-cards are subject to stamp duty, as enacted by a special statute.
(I.)—Tax on newspapers and periodicals.
§ 22. The stamp duty provided by a separate statute for newspapers and other periodicals is likewise payable without deduction from the common tax to which publishers and editors are subjected by virtue of the present statute.
(K.)—Tax for grants of honorary official titles and dignities.
§ 23. [This section contains provisions of but little interest and importance concerning a yearly tax payable by the holders of honorary titles and dignities. This tax amounts to 10 and in some instances 6 per cent. of the stamp to be put on the letters-patent and other deeds conferring the same tittles and dignities; minimum tax 4 riksdaler 50 öre.]
§ 24. The special tax on banks provided by the present article is charged and paid in the town where the bank or its head office is established. The tax on legacies or inheritances is paid either at the last place of assessment of the individual leaving the property bequeathed or inherited, or at the place where an approved security or bail for the payment of the tax has been put in.
The tax on entailed property is raised at the place where the same property exists or at any other place where such bail for the tax has been delivered. * * *
Therefore * * * we have judged proper to ratify and confirm the fore-going statute of taxes.
The palace of Stockholm, September 8, 1868.
[l. s.]—Gustaf af Ugglas.
B.
ITEMS OF THE ORDINARY RECEIPTS.
1. “Ordinarie ränta.”—The ordinary tax which from the earliest times was imposed on land in Sweden, under the name of “grand ränta,” or “jordeboks ränta,” on the theory that the title to all the soil was in the sovereign.
The system had its first organization during the reign of Gustavus (1) Vasa, 1521–1560, when the taxes on landed estates were entered in the land-books or rolls under the head of “ränta.” The tax was payable in kind till the law of May 11, 1855, made it payable principally in money. For over a century it has been denominated “ordinarie ränta.” The amount of tax of this nature which each estate had to pay was in most cases fixed centuries ago by local boards of five officers each, consisting of the steward or collector of taxes, judicial clerk, the surveyor, and two sworn peasants. A county was divided, as still is the case, into from four to six districts, each of which had a board of these officers (Fögderi) for such purpose. They determined the annual average [Page 815] amount of produce of each estate, which amount remained fixed. The value of the produce is annually determined according to the average value for the ten years preceding. The annual tax therefore varies according to the rise or fall in the value of produce.
Estates which were the seats of the nobility were entirely exempt from this tax on the ground that the proprietor was bound to render personal military service. These latter estates were denominated “ypperligst frälse,” (select frälse or freeholds,) and according to a report of a committee of the Diet in 1864, the taxable value of them all was in 1862, 212,274,828 riksdaler.
The “allmant frälse,” (common frälse,) which according to said report were of the value of 374,496,774 riksdaler, are privileged estates which pay a small “ordinarie ränta;” while the unprivileged originally peasant lands on which the burden has principally fallen, were valued at 1,203,872,945 rixsdaler. As a trifling equivalent for exemption from “ordinarie ränta,” the fralse estates were, since the year 1719, required to pay a military tax called “rusttjenst bevillning,” the whole amount of which is 70,000 riksdaler per annum.
The report of the committee above referred to cites numerous examples of the inequality of the “ordinarie ränta” tax, a few of which are as follows:
| County, or län. | Taxable value of estate in 1862 in riksdaler. | Amount of ränta tax charged upon the farm in riksdaler. | County, or län. | Taxable value of estate in 1862 in riksdaler. | Amount of ränta tax charged upon the farm in riksdaler. |
| Upsala | 8,000 | 427.07 | Cälinar | 15,300 | 102.25 |
| 8,000 | 102.36 | Jönkoping | 98,000 | 129.70 | |
| 28,000 | 290.91 | 7,200 | 134.81 | ||
| Stockholm | 16,000 | 427.22 | Christianstad | 50,000 | 42.08 |
| 39,000 | 83.93 | 10,000 | 2.40 | ||
| Södermanlands | 10,000 | 358.07 | Malmo | 113,000 | 29.99 |
| 14,000 | 22.96 | 37,700 | 6.64 | ||
| Cälinar | 96,000 | 160.19 |
These examples serve to show the artificial and inequitable nature of the system. Its reform or abolition constitutes one of the prominent political questions of the day in Swreden. Annual receipts from the tax, 4,800,000 riksdaler.
2. “Tiondensemnial” (tithe of grain,) or “kronostionde,” (crown tithe.)—It appears from the old laws that the tithe contribution was first enacted at the Diet of Skenenge in 1864. The priest generally took one-third of the tithe, and the other two-thirds were divided between the church, the bishop, and the poor. This comprised the so-called field tithe. But besides this there went to the priest the whole of the rate tithe, also the tithe of shoal and net fish, of birds and “grey pelts;” also a yearly “matskatt” subsistence on certain church days, of every peasant landholder. After the year 1539 the tithe was paid into the state’s treasury and designated as the crown tithe. In 1600 it was enacted that the priest should take his third of the tithe to his own barn and have it thrashed himself, but that the other two-thirds should be thrashed by the peasant. In 1739 this tax was considerably reduced and became a tithe only in name. Since 1855 it has been payable in money instead of in kind, and is an absolute charge on estates whether crops are raised or not. It is fixed in the same manner as the “ränta” and is similar to that in respect to its arbitrary and unequal nature. Annual receipts from, 1,600,000 riksdaler.
3. “Arrendemedel af kungsgardar ochandra krondlägenheter.”—Tenancy means from the King’s farms and other crown lands.—These farms and lands, though called the King’s, are in no sense his individual property. The rent is paid annually into the state treasury under leases granted at auction, for a term of years, to the highest bidder. The principal part of the rent is paid in grain. Total receipts annually 416,000 rixsdaler.
4. “Silfvertionde,” (tithe of silver.)—In 1649 one-tenth of the product was paid to the government; but by the law of 1831 it was reduced to one-thirtieth. Annual amount received, 15,000 riksdaler.
5. Kopparränta, (tax on copper.)—In 1649 one-tenth of manufacture paid to the government. June 21, 1831, reduced to one-thirtieth. Annual amount derived, 75,000 riksdaler.
6. Svafvelbruhistionde, (tithe of sulphur.)—The statutes of 1649 and 1723 provided that a tenth of the manufacture of sulphur should be paid to the Crown. The act of June 21, 1831, reduced the tax to one-thirtieth of the manufacture. The amount derived annually is 3,000 riksdaler.
[Page 816]7. Tionde tackjern, (pig-iron tithe.)—Annual receipts 40,000. The value of the product of pig-iron in Sweden in the year 1869 was 17,183,305.70 riksdaler, so it can be seen the tax is nominal and exceptional. An act of the Diet of 1871 discontinues it after the year 1872.
8. Mantals pennengar, (number of men or poll-money.)—A personal tax which originated in 1605, when, for the outfit of soldiers, the government imposed on peasants, their wives, and every person on the premises from sixteen to sixty years of age, one öre each per month. In 1609 the Diet imposed on the unnoble classes a marriage tax of six marks for every marriage. In 1625, to help sustain the wars of Gustavus Adolphus, a tax was laid on grain which was carried to mills to be ground, viz: for 1 tunna (4 bushels) oats, 2 öre; 1 tuna of barley or malt, 3 öre: 1 tunna of peas, 6 öre; 1 tuna of rye, 8 öre; 1 tuna of wheat, 12 öre, &c. It was in some instances resisted, and a miller in Upsala was beheaded. The tax was evaded by the use of hand-mills at home, whereupon the Diet, in 1627, imposed a personal tax of 1 mark on every person of the peasantry, or farming class, over twelve years of age. The “mantals pennengar” tax of 12 to 16 öre began to be enforced in certain districts, including Finland, in 1634, and in 1635 amounted to 167,476 riksdaler. The mill or toll tax yielded in 1632, 87,251 riksdaler. It was then discontinued and the “mantals pennengar” tax increased to three marks (half a riksdaler) for every person. It so continued until 1652, when the ages of those liable to pay it were fixed at over sixteen and under sixty-three. In 1841 the ages were fixed at seventeen to sixty-three years, and again in 1857 fixed at eighteen to sixty years. The nobility were originally exempted from its payment, but paid it from 1622 to 1640, when they were again exempted, and so continued until 1810. The tax at present amounts to 630,000 riksdaler, ($168,000.) It is paid by men with 40 öre, women 20 öre.
9. Botes medel.—Proceeds of fines, annual amount, 170,000 riksdaler.
10. “Kavalleri-Begementenas hast vakaus spanmål.”—Certain indelta or national militia regiments which do not provide horses but pay money instead. Tax on the farms which support the indelta soldiers. Annual receipts, 300,000 riksdaler.
11. Till fäliga rote vahans afgifter.—Payment for accidental soldier vacancy or deficiency. Tax on farms which should furnish a soldier. Amount, 7,500 riksdaler.
12. Vahans afgifter af ni roterad joid.—Farms that were not included in the original list of those that should furnish a soldier, (indelta,) and which now pay money instead. The tax originally was 3 riksdaler banco for each man. Annual receipts, 100,000 riksdaler.
13. “Rote vahans afgifter af utsocehne fälse heman i Holland.”—Commutation of the furnishing a soldier by former privileged farms in Halland County. The tax was imposed in 1847. The tax is two-thirds of the cost of maintaining a man. Annual receipts, 24,000 riksdaler.
14. Rote vahans afgifter af bergs layer.—Payment of soldier deficiency in the mining districts. Receipts, 18,000 riksdaler.
15. Toss passevolans afgifter.—Tax for transportation on land-owners (who furnish indelta mounted men) in lieu of actual transportation. Receipts, 26,000 riksdaler.
16. Batsmansvakans afgifter.—Tax for exemption in supplying seamen. Seamen for the navy are furnished on the same principle as the indelta in the army. Owners of land adjoining the sea, also some towns, have to furnish seamen. In the country the men are actually furnished, and are provided with a “torp” (small homestead.) This tax in money is paid by real-property holders in towns. Annual receipts, 70,000 riksdaler.
17. Kontroll stäm pelmedel.—Fees for stamping gold and silver manufactures. Every article of silver or gold manufactured in Sweden must be stamped by a government officer. Amount of the fees annually, 12,000 riksdaler.
18. Fyr och båk medel.—Marine light and beacon fees. Fees paid by shippers. A vessel coming from abroad, whether domestic or foreign, pays 50 öre per läst. Annual receipts, 600,000 riksdaler.
19. Telegraf medel.—Receipts from telegraphs. There are eight thousand miles of telegraph lines in Sweden belonging to the state. The tariff for ten words any distance over the lines is 1 riksdaler, (28 cents.) Receipts, 800,000 riksdaler, which cover all expenses.
20. Jern vägstrafik medel.—Receipts from the staterailways annually, 7,000,000 riksdaler.
21. Skogs medel.—Receipts from forests. The Swedish forests are carefully preserved. They are granted for a term not exceeding fifty years, at $5 per acre, but no trees are allowed to be cut which are less than ten inches in diameter. Receipts, 400,000 riksdaler.
22. Observations medel.—Payments on auditors’ reports for items erroneously booked in public accounts. Amount, 2,000 riksdaler.
23. Extra medel och uppbörder.—Extra means and collections. Amount, 70,000 riksdaler.
24. Intusse medel.—Interest. Amount, 5,000 riksdaler.
[Page 817]C.—Statement of the public debt of Sweden.
| Date of loan. | Object. | Interest. | Amount in rixs-daler, 3.75 rixs-daler = $1. | Date and rate of redemption. | Remaining due Dec. 31, 1869, except as to last loan. | Where negotiated. | ||||||
| September 30, 1841 | War, 1808, 1809 | 4 annually | 5,808,000 | 1,980,000 | Stockholm. | |||||||
| June 30, 1855 | Railway | 4 and 3½ semi-annually | 281,900 | 210,900 | ||||||||
| March 1, 1858 | do | 4½ semi-annually | 21,841,333⅓ | 18,714,933.33 | Germany. | |||||||
| May 1, 1860 | do | 4½ semi-annually | 21,333,333⅓ | 18,839,200 | Do. | |||||||
| May 1, 1860 | do | (Without interest) | 5,333,333⅓ | 4,100,000 | Preme obligatione, Germany. | |||||||
| March 30, 1861 | do | 4½ semi-annually | 3,000,000 | 2,718,700 | ||||||||
| April 15, 1864 | do | 4½ semi-annually | 39,569,400 | 9,556,820 | London. | |||||||
| January 2, 1866 | do | 5 semi-annually | 26,486,133⅓ |
|
26,242,933.34 | Germany. | ||||||
| June 30, 1867 | do | 5 semi-annually | 6,000,000 | 6,000,000 | ||||||||
| July 1, 1868 | do | 5 semi-annually | 20,700,000 | 20,647,800 | London. | |||||||
| September 30, 1869 | do | 5 semi-annually | 4,000,000 |
|
3,319,400 | |||||||
| September 30, 1870 | do | 5 semi-annually | 40,000,000 |
|
7,022,000 | Sweden, 7,022,000 riksdaler. Had been issued and was due Dec. 31, 1870. Bonds, when first issued, sold at 95½ June, 71 worth 98. | ||||||
| Total | 119,352,686.67 | |||||||||||
| At 3.75 | $31,827,115 |