Tiberius the Tyrant

The political genius of a nation is shown by nothing so much as the success with which it supplements the deficiencies of its formal constitution by informal but recognized agencies. Rome was provided with a machinery for collecting and distributing her domestic revenue; she had a treasury and a staff of clerks, but she had no separate civil service for the Empire; the constitution of a city state did not admit of such a thing, and the collection of the revenue of a province was left to semi-private agencies, its taxes being farmed.

At fixed periods the right of collecting the taxes assigned to the public treasury from the provinces was sold by public auction; the purchaser paid a lump sum to the treasury, and made the best of his bargain in the provinces; the speculation was an exceedingly profitable one, but its profits threatened to disappear owing to excessive competition among the farmers of taxes; in order to eliminate competition the farmers of taxes formed themselves into a close corporation, the taxes were bought in the name of an individual, but in fact by an association.