The chief source of receipts during this period was taxation, and the main tax was, as in previous periods, the ad valorem tax upon real and personal property. The work of assessment and collection was performed until 1870 by an assessor and collector, but thereafter assessment was by the justices of the peace, and collection by the sheriff of each county. Under the provisional governments assessment and collection were subject to special difficulties. The war had disorganized the machinery of administration, and in many of the counties it was impossible, owing to the opposition of the people to military authority, to secure an assessor and collector. In 1868, for example, thirty-nine counties out of one hundred and twenty-five had vacancies in the office. It was not infrequent, too, that those who qualified were inexperienced, inefficient, or corrupt.1 Despite these difficulties, however, receipts from taxes before 1870 were, proportionately to the rate and the total assessments, more satisfactory than after 1870. This better showing was due, in the first place, to the more rigid collection under the military authorities, and, in the second place, to less burdensome rates.2 A number of circumstances contributed to the disarrangement of the tax system during this period. With the emancipation of the slaves, who were assessed for taxation in 1865 at $137,191,886, taxable property to that amount was wiped out. Slaves in 1865 constituted 38 per cent of the taxable property. The escape and undervaluation of real estate was favored by the provision of the laws which permitted its rendition either in the county of its situs or in the county of residence of the owner or agent. Furthermore, because of the seeming impossibility for assessors and collectors to comply strictly with all the details of the laws regarding sale for taxes, the courts would not sustain titles to property purchased at tax sales. For this reason taxpayers no longer feared forced sales.1 Further, the tax year ended December 1, which resulted in the collection of taxes during the summer or fall, or the seasons of greatest scarcity of money for the farmers.2 Back taxes piled up as a consequence of these circumstances, and strenuous efforts were made to collect them. The act of November 12, 1866, required the compilation of a list of all lands on which taxes were due from 1849 to 1866, and provided for their sale. In 1865 and 1866 791,000 acres, and in 1867 and 1868 the unprecedented number of 7,800,000 acres, were sold to the state for unpaid taxes.3 This act was later nullified, and the attempt was again made in 1870 to collect back taxes, but failed because of the governor's veto of the appropriation to carry it out.4 Subsequent attempts were of the nature of commutation for all unpaid amounts by payment of three or five times the amount of the current taxes. The Constitution of 1869 was the first Texas constitution to provide that the homestead should not be sold for taxes except for taxes due thereon.5

1 Report of the Comptroller, 1868-9, p. 4. In 1870 defaulting and delinquent officers were due the state $350,000; ibid., 1870, p. 20.

2 The United States Census of 1870 gave as the assessed value of property $149,732,929 and as the true value $159,052,542. The per cent of assessed to the true value was 87, which is a high proportion. Vol. Industry and Wealth, p. 10.

The feature of taxation under radical rule which more than any other explains the ill-working of the tax system is that state and local taxes together constituted too great a burden. In 1865 the state ad valorem rate was I2 1/2 cents on the $100 valuation; in 1866 and 1867, 20 cents; in 1868, 1869, and 1870, 15 cents; in 1871, 1872, 1873, and 1874, 50 cents. In 1868 there was, in addition to the regular tax of 15 cents, a special tax of 20 cents to pay the expenses of the constitutional convention. In 1868 the state and county ad valorem taxes amounted in Bexar County, for example, to $1.10 on the $100 valuation, and in 1870, to $1,12 1/2. Besides these there were state and county income, salary, poll, and occupation taxes, and city taxes.1 In 1871 combined state and county ad valorem rates amounted at a conservative estimate to $2,175, and there were besides the state and county poll and occupation taxes, and city taxes.2 In 1869 collected state and local taxes of all kinds aggregated $1,129,577; in 1872 assessed state and county ad valorem and occupation taxes and local taxes for public schools amounted to $4,584,275.3 All of our statistics indicate an increase in taxation that was enormous. Assuming 10 per cent as a low average rate of interest on loanable capital, state and county taxes of $2.17 would be equivalent to an income tax of 21 per cent. No government would dare to levy an income tax at such a figure, and it should be no surprise that the imposition of this rate indirectly through the property tax occasioned bitter complaint and led to the undervaluation and escape of property. Conventions of taxpayers were held in a number of counties, and as a culminating protest a convention of the taxpayers of the state was held in Austin on September 22, 23 and 25, 1871, with two hundred and seventeen delegates present representing ninety-four counties.4 This convention was called by the radicals, "a body of sulks and soreheads," but these epithets ill apply to ex-governors Throckmorton, Pease and Hamilton and to the other leading men who were delegates.5

1 Report of the Acting-Provisional Comptroller, 1866. Report of the Comptroller, 1868-9, p. 7. Message of Governor Coke, April 19, 1876. 2Report of the Comptroller, 1874, p. 3. 3Report of the Comptroller, 1868-9, p. 110. 4Message of Governor Davis, January 10, 1871. 5Art. 12, sec. 15.

In estimating the weight of taxation upon the people of the state during this period certain Federal taxes need to be considered. The sum of the direct tax of 1861 apportioned to Texas was $355,106.66. By an ordinance of the convention of 1866, the state assumed the payment of this tax, and the comptroller was authorized to effect settlement if possible by setting off against the amount due the amount owed Texas by the national government on account of advances by the state for frontier defence, unpaid bonds of the United States held by the state, etc.1 Nothing came of this, and by an act of November 13, 1866, the governor was authorized to have assessed and collected upon all real property a tax of 28 cents on each $100 of value of such property rendered for the. year 1861, and any deficiency was to be made up from the state revenue account.2 Nothing came of this measure either, however, and all that was collected of the tax was that effected by the United States internal revenue agents in 1865 and 1866. Up to the time of the suspension of collection by the act of Congress of July 28, 1866, there was credited to Texas $180,841.51, leaving the amount uncollected $174,265.16.3

1 The San Antonio Daily Herald, April 9, 1868, November 18, 22, 26, and December 22, 1870.

2 proceedings of the Taxpayers' Convention, Austin, 1871, p. 22. . See also Clegg v. the State, 42 Tex., 605 (1875).

3 In 1869 state taxes were $589,363, county taxes, $312,335, and town, city and other taxes, $227,879; Census of 1870. Vol. Industry and Wealth, p. 58. Message of Governor Davis, January 14, 1873.

4 Proceedings of the Taxpayers' Convention, Austin, 1871, pp. 5-8. The Houston Daily Telegraph, August 13, 25, September 5, 8, 19, 20, 1871. The San Antonio Daily Herald, September 26 and 27, 1871. The Austin Democratic Statesman, September 23 and 26, 1871.

5 The Austin Daily Journal, September 21, 1871, et passim.

More burdensome than the direct tax was the Federal tax upon cotton which was levied from 1864 to 1867. It was 2 and 3 cents a pound and its collection was rigidly enforced. The total paid by Texas was $5,502,401.4