principles which guide the policy of the Empire; he may treat subjects
of local interest in a manner calculated to damage, or even to
jeopardise, Imperial interests. The central authority is in a position
to obviate any danger arising from this cause. To ensure the harmonious
working of the different parts of the machine, the central authority
should endeavour, so far as is possible, to realise the circumstances
attendant on the government of the dependency; whilst the local agent
should be constantly on the watch lest he should overrate the importance
of some local issue, or fail to appreciate fully the difficulties which
beset the action of the central authority.

To sum up all that there is to be said on this branch of the subject, it
may be hoped that the fate which befell Rome, in so far as it was due to
the special causes of decay now under consideration, may be averted by
close adherence to two important principles. The first of these
principles is that local revenues should be expended locally. The second
is that over-centralisation should above all things be avoided. This may
be done either by the creation of self-governing institutions in those
dependencies whose civilisation is sufficiently advanced to justify the
adoption of this course; or by decentralising the executive Government
in cases where self-government, in the ordinary acceptation of the term,
is impossible or undesirable.

6. _Barbarous Finance._--Mr. Hodgkin says that the system of Imperial
taxation under the Roman Empire was "wasteful, oppressive, and in a
word, barbarous." He gives, as an instance in point, the Roman
Indiction. This was the name given to the system under which the taxable
value of the land throughout the Empire was reassessed every fifteen
years. At each reassessment, Mr. Hodgkin says, "the few who had
prospered found themselves assessed on the higher value which their