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102 ECONOMIC INQUIRIES AND STUDIES
the first twenty years, and since 1875 a much less pro-
gress. The total amount of the assessments themselves,
stated in millions, was as follows:
Millions. I
Millions.
1855. . . . . £308 1875..... £57 1
1865. . . .. 396 1885..... 631
and the rate of growth in the ten yearly periods which
these figures show is-between 1855 and 1865, 28 per
cent.; between 1865 and 1875,44 per cent.; anti be-
tween 1875 and 1885, 10 percent. only.
Making all allowance for changes in the mode of as-
sessment by which the lower limit of the tax has been
raised, for the apparent increase before 1875 which may
have been due to a gradual increase of the severity of
the collection, and for the like disturbing influences,
I believe there is no doubt that these income tax as-
sessments correspond fairly well to the change in the
money value of income and property in the interval.
How great the change in the rate of increase is, i!i
shown by the simple consideration that if the rate of
increase in the last ten years, instead of being IO per
cent. only, had been 44 per cent., as in the ten years
just before; the total of the income tax assessments in
1885, which is actually 631 millions, would have been
882 millions! Something then has clearly happened in
the interval to change the rate of increase.
These figures being those of money values, an ob-
vious explanation is suggested which would account in
great part for the phenomenon of a diminished rate of
increase in such values without supposing a reduction
of the rate of increase of real wealth, of the things re-
presented by the money values, to correspond. This is
the fall of prices of which we have heard so much of
late years, and about which in some form or another
we shall no doubt hear something at our present meet-
ing. It is quite clear that if prices fall then income
tax assessments must also be affected. The produce of
a given area of land, for instance, sells for less than it