ments in the making, A territory is a possession of the Union, and is governed by national or federal authorities. The president appoints its officers, but the people elect a legislature, though federal statutes may modify or even annul its laws. The Districts of Alaska and Columbia have no power of self-government. Indians on reservations and non-naturalized inhabitants of the United States are ruled by the federal government. When territories become populous enough and attain industrial or commercial importance, they may, if they wish, become states by forming a constitution, organizing a government and satisfying Congress that they have complied with all requirements of the national constitution. (For the forms of government in Alaska, the District of Columbia, Hawaii, Panama, the Philippines and Porto Rico see these titles).
Political Divisions. The republic politically consists of states, territories and districts and of dependencies or possessions. There are now 48 states, one territory and two districts. The possessions comprise Guantanamo Naval Station, Guam, the Panama zone, the Philippines, Porto Rico, three of the Samoan islands and many islets in the Pacific. The states include 13 that originated in English colonization, six that came into the Union without ever having been territories and 29 that had been territories. The territory is Hawaii; the districts Alaska and Columbia; the states
(See article on each.)
Finance and Law
Though Congress is empowered by the constitution “to lay and collect taxes, duties, imports and excises,” it imposes direct taxes only in war or in other exceptional circumstances. The national government derives its revenue almost entirely from duties on imports (see Tariff and Taxes) and from taxes on spirituous liquors, tobacco and other manufactures—especially on luxuries. In 1911 customs yielded $314,497,071; internal revenue $322,529,201; Coinage $5,272,347; public lands $5,731,637; the District of Columbia $7,060,080; tax on national banks $3,503,502; immigrant fund $3,669,816 and fees $5,131,157. The civil service (Congress, courts, the executive and the departments and the District of Columbia) cost $201,968,761; pensions $157,325,160; the army (including improvements of rivers and harbors) $162,357,100; the navy $120,728,786; and the Indians over $21,000,000. (See Army, Banks, Coinage, Consuls, National Debt, Navy, Patent-Office and Post-Office.) The revenues of the states, in distinction from the nation, come from direct taxation, and in the main are collected and spent by local authorities.
Taxes are now levied on incomes in the United States as they have long been in England, a constitutional amendment conferring upon congress the power to levy such taxes having been adopted in February, 1913.
The legal system of the United States is based on English law. Weights and measures also are English, but the use of the metric system is legalized. (See Corporations, Currency, Law, Metric System and Weights and Measures.)
Defence
This is entrusted to a small army (called the regular army) and a navy and to a militia and a naval reserve. (See Army, Coast-Defence, Military Schools, Militia, Naval Academy, Naval Reserve, Navy and West Point). The United States is the only important power, except England, that relies for defence on a purely volunteer army. In addition to the regulars there are 6,000 native troops in Porto Rico and the Philippines and 75 Indian scouts. The militia is partly organized, partly unorganized. The organized militia called the national guard, belongs, not to the nation, but to the states. It numbers about 105,000 men. The unorganized militia, called the reserve, comprises males, with some exemptions, between 18 and 45, and is estimated to number over 16,000,000. The president can call both into national service, the former for nine months, the latter for two years.
Education and Religion
The constitution of the Union and the constitutions of the states guarantee the free exercise of religion, except where it opposes the constitution, and nowhere is there an established or state church. Every religion is represented—Budd-
