^72:7.7 The federal government cannot go in debt, and a 3/4^th referendum is required before any state can borrow except for purposes of war. Since the federal government cannot incur debt, in the event of war the National Council of Defence is empowered to assess the states for money, as well as for men and materials, as it may be required. But no debt may run for more than 25 years.

^72:7.8 ¶ Income to support the federal government is derived from the following 5 sources:

^72:7.9 1. Import duties. All imports are subject to a tariff designed to protect the standard of living on this continent, which is far above that of any other nation on the planet. These tariffs are set by the highest industrial court after both houses of the industrial congress have ratified the recommendations of the chief executive of economic affairs, who is the joint appointee of these two legislative bodies. The upper industrial house is elected by labour, the lower by capital.

^72:7.10 2. Royalties. The federal government encourages invention and original creations in the 10 regional laboratories, assisting all types of geniuses — artists, authors, and scientists — and protecting their patents. In return the government takes 50% of the profits realized from all such inventions and creations, whether pertaining to machines, books, artistry, plants, or animals.

^72:7.11 3. Inheritance tax. The federal government levies a graduated inheritance tax ranging from 1% to 50%, depending on the size of an estate as well as on other conditions.

^72:7.12 4. Military equipment. The government earns a considerable sum from the leasing of military and naval equipment for commercial and recreational usages.

^72:7.13 5. Natural resources. The income from natural resources, when not fully required for the specific purposes designated in the charter of federal statehood, is turned into the national treasury.

^72:7.14 ¶ Federal appropriations, except war funds assessed by the National Council of Defence, are originated in the upper legislative house, concurred in by the lower house, approved by the chief executive, and finally validated by the federal budget commission of 100. The members of this commission are nominated by the state governors and elected by the state legislatures to serve for 24 years, 25% being elected every 6 years. Every 6 years this body, by a 3/4^th ballot, chooses one of its number as chief, and he thereby becomes director-controller of the federal treasury.

^72:8.1 In addition to the basic compulsory education program extending from the ages of 5 to 18, special schools are maintained as follows:

^72:8.2 1. Statesmanship schools. These schools are of 3 classes: national, regional, and state. The public offices of the nation are grouped in 4 divisions. The 1^st division of public trust pertains principally to the national administration, and all officeholders of this group must be graduates of both regional and national schools of statesmanship. Individuals may accept political, elective, or appointive office in the 2^nd division upon graduating from any one of the 10 regional schools of statesmanship; their trusts concern responsibilities in the regional administration and the state governments. Division 3 includes state responsibilities, and such officials are only required to have state degrees of statesmanship. The 4^th and last division of officeholders are not required to hold statesmanship degrees, such offices being wholly appointive. They represent minor positions of assistantship, secretaryships, and technical trusts which are discharged by the various learned professions functioning in governmental administrative capacities.

^72:8.3 Judges of the minor and state courts hold degrees from the state schools of statesmanship. Judges of the jurisdictional tribunals of social, educational, and industrial matters hold degrees from the regional schools. Judges of the federal supreme court must hold degrees from all these schools of statesmanship.

^72:8.4 2. Schools of philosophy. These schools are affiliated with the temples of philosophy and are more or less associated with religion as a public function.

^72:8.5 3. Institutions of science. These technical schools are co-ordinated with industry rather than with the educational system and are administered under 15 divisions.

^72:8.6 4. Professional training schools. These special institutions provide the technical training for the various learned professions, 12 in number.

^72:8.7 5. Military and naval schools. Near the national headquarters and at the 25 coastal military centres are maintained those institutions devoted to the military training of volunteer citizens from 18 to 30 years of age. Parental consent is required before 25 in order to gain entrance to these schools.

^72:9.1 Although candidates for all public offices are restricted to graduates of the state, regional, or federal schools of statesmanship, the progressive leaders of this nation discovered a serious weakness in their plan of universal suffrage and about 50 years ago made constitutional provision for a modified scheme of voting which embraces the following features:

^72:9.2 1. Every man and woman of 20 years and over has 1 vote. Upon attaining this age, all citizens must accept membership in two voting groups: They will join the first in accordance with their economic function — industrial, professional, agricultural, or trade; they will enter the second group according to their political, philosophic, and social inclinations. All workers thus belong to some economic franchise group, and these guilds, like the noneconomic associations, are regulated much as is the national government with its threefold division of powers. Registration in these groups cannot be changed for 12 years.

^72:9.3 2. Upon nomination by the state governors or by the regional executives and by the mandate of the regional supreme councils, individuals who have rendered great service to society, or who have demonstrated extraordinary wisdom in government service, may have additional votes conferred upon them not oftener than every 5 years and not to exceed 9 such superfranchises. The maximum suffrage of any multiple voter is 10. Scientists, inventors, teachers, philosophers, and spiritual leaders are also thus recognized and honoured with augmented political power. These advanced civic privileges are conferred by the state and regional supreme councils much as degrees are bestowed by the special colleges, and the recipients are proud to attach the symbols of such civic recognition, along with their other degrees, to their lists of personal achievements.

^72:9.4 3. All individuals sentenced to compulsory labour in the mines and all governmental servants supported by tax funds are, for the periods of such services, disenfranchised. This does not apply to aged persons who may be retired on pensions at 65.

^72:9.5 4. There are 5 brackets of suffrage reflecting the average yearly taxes paid for each half-decade period. Heavy taxpayers are permitted extra votes up to 5. This grant is independent of all other recognition, but in no case can any person cast over 10 ballots.

^72:9.6 5. At the time this franchise plan was adopted, the territorial method of voting was abandoned in favour of the economic or functional system. All citizens now vote as members of industrial, social, or professional groups, regardless of their residence. Thus the electorate consists of solidified, unified, and intelligent groups who elect only their best members to positions of governmental trust and responsibility. There is one exception to this scheme of functional or group suffrage: The election of a federal chief executive every 6 years is by nation-wide ballot, and no citizen casts over one vote.