upon a statistical basis, and two distinct methods are available. The the first and most direct method is to estimate the existing social income and then ascertain by an examination of family budgets of different classes the average per capita expenditure?on necessaries. Multiplying the latter by the numbers of each class, as given in the ceusus or other statistics, we obtain the minimum social expenditure for the whole community. On subtracting this from the social income we have the taxable capacity—the theoretical figure, that is, of which in practice not more than 80 per cent could be taken. A variant of this method would be to calculate the total value of necessaries produced in the country, so as to derive therefrom, after correction for exports and imports, the total expenditure of the population on necessaries, which would then be subtracted from the estimated social income. This method could only be applied in countries which have a detailed census of production. The second method is to estimate directly the total expenditure of the population on superfluities and on investment, and to add the present Government revenue, less what Government servants may be estimated to be spending on superfluities, as this is included in the total expenditure of the population thereon. To do this?thoroughly would need again a census of production; but in the case of India the proportion of such goods imported is so large that the import statistics may furnish a useful guide. The net balance of foods exported, and all raw products exported, must be surplus produce not required for subsistence by the people; and the character of the imports which come in exchange for them shows how this surplus income is expended. This method will at least provide a check on the first method.
Some confusion of ideas might arise from the use of the term, minimum of subsistence, or subsistence mini-
