Part 22

EXCESS PROFITS DUTY, devised in 1915 to meet the extraordinary expenditure occasioned by the war, is a tax upon the profits of certain trades and businesses carried on in the United Kingdom, or owned or carried on abroad by persons resident in the United Kingdom, in so far as these profits, after deduction of a specified allowance, exceed a pre-war standard. The main exceptions are agriculture, offices and employments, and professions where personal qualifications predominate and only small capital is necessary. In some cases, e.g. estate agencies, where a portion of the profits arises from professional skill, only the portion otherwise arising falls into charge. The pre-war standard is an alternative one at the option of the taxpayer. Firstly, it may be a profits standard--the average of the profits of any two of the last three pre-war years, or if there have been only two pre-war years, then the average profits of those years, or the actual profits of the last year, or if there has been only one pre-war year, then the actual profits of that year. Where the average profits of the last three pre-war years are 25 per cent less than the average of the three years immediately preceding them, the taxpayer may take the average of any four of those six years. Secondly, it may be, and as a general rule where the business has not had one full pre-war year must be, a percentage standard, calculated at the appropriate rate on the capital in the business at the end of the last pre-war trade year, or where there has not been one pre-war year, then on the average amount of capital employed (_a_) during the year or accounting period in question, or (_b_) in respect of periods ending after 31st Dec., 1919, during the first accounting period. The percentage standard of sole traders, partnerships, and private companies may in respect of accounting periods ending after that date be increased by L500 per annum for each working proprietor, but not so as to exceed L750 per annum each. The general free allowance is L200, increased in 1920 to L500 for new or re-opened businesses of ex-service men. A further abatement is now granted where profits do not exceed L4000, with the result that liability cannot arise unless profits exceed L832.

The rate of duty, at first 50 per cent, was raised to 60 per cent in 1916, and to 80 per cent in 1917. Reduced to 40 per cent in 1919, it was again increased to 60 per cent by the Finance Act, 1920. It was abolished in 1921. Undoubtedly it was injurious to trade and an incentive to wasteful expenditure, but an effective substitute for supplying the unparalleled financial needs of the State resulting from the war apparently could not be devised.

'Munitions Levy' is the counterpart of Excess Profits Duty in its application to Government-controlled establishments for the production of munitions of war.

In the fiscal year 1919-20 the tax produced L290,045,000, while the estimate for the year 1920-1 was L220,000,000.

EXCHANGE, a place in large commercial towns where merchants, agents, bankers, brokers, and others concerned in commercial affairs meet at certain times for the transaction of business. The institution of exchanges dates from the sixteenth century. They originated in the important trading cities of Italy, Germany, and the Netherlands, from which last-named country they were introduced into England. The Royal Exchange of London was established by Sir Thomas Gresham in 1556. In some exchanges only a special class of business is transacted. Thus there are stock exchanges, corn exchanges, coal exchanges, cotton exchanges.

EXCHANGE, in commerce, that species of transactions by which the debts of individuals residing at a distance are cancelled by order, draft, or bill of exchange, without the transmission of specie. Thus, a merchant in London who owes L100 worth of cotton goods in Glasgow gives a bill or order for that amount which can be negotiated through banking agencies or otherwise against similar debts owing by other parties in Glasgow who have payments to make in London. The creditor in Glasgow is thus paid by the debtor in Glasgow, and this contrivance obviates the expense and risk of transmitting money. The process of liquidating obligations between different nations is carried on in the same way by an exchange of foreign bills. When all the accounts of one country correspond in value with those of another, so that there is an even balance, the exchange between the countries will be _at par_, that is, the sum for which the bill is drawn in the one country will be the exact value of it in the other. Exchange is said to be _at par_ when, for instance, a bill drawn in New York for the payment of L100 sterling in London can be purchased there for L100. If it can be purchased for less, exchange is _under par_ and is against London. If the purchaser is obliged to give more, exchange is _above par_ and in favour of London. Although the numerous circumstances which incessantly affect the state of debt and credit prevent the ordinary course of exchange from being almost ever precisely at par, its fluctuations are confined within narrow limits, and if direct exchange is unfavourable between two countries this can often be obviated by the interposition of bills drawn on other countries where an opposite state of matters prevails. See _Bill of Exchange_.--BIBLIOGRAPHY: G. J. Goschen, _Theory of Foreign Exchange_; H. Withers, _Money Changing_.

EXCHANGE, DEED OF, in English law, an original common law conveyance for the mutual transfer of real estate. It takes place between two contracting

## parties only, although several individuals may be included in each party;

and the parties must take an equal estate, as fee-simple for fee-simple, legal estate for legal estate, copyhold for copyhold of the same manor, and the like.

EXCHEQ'UER (Fr. _echiquier_, chess-board), in Britain, the department which deals with the moneys received and paid on behalf of the public services of the country. The public revenues are paid into the Bank of England (or of Ireland) to account of the Exchequer, and these receipts as well as the necessary payments for the public service are under the supervision of an important official called the Comptroller and Auditor General, the payments being granted by him on receipt of the proper orders proceeding through the Treasury. The public accounts are also audited in his department. The Chancellor of the Exchequer, who must be a member of the House of Commons, is the head of the Treasury Department. When the Prime Minister is a member of the House of Commons, he sometimes holds the office of Chancellor of the Exchequer.

EXCHEQUER, COURT OF, an ancient English court of record, established by William the Conqueror, and intended principally for the care and collection of the royal revenues. It was one of the supreme courts of common law, and is said to derive its name from the chequered cloth, resembling a chess-board, on which the sums were marked and scored with counters. The judges of this court were the chief baron and five junior or _puisne_ barons. This court was abolished by the Judicature Act of 1873, and its jurisdiction transferred to the High Court of Justice. In Canada there is a Court of Exchequer for the Dominion.

EXCHEQUER AND AUDIT DEPARTMENT, a department of the English Civil Service charged with the functions of auditing the accounts of all other departments.

EXCHEQUER BILLS, bills of credit issued by authority of Parliament as a means of raising money for temporary purposes. They are of various sums--L100 or any multiple--and bear interest at a rate fixed for every half-year according to the rate ruling in the money-market at the time. These bills pass from hand to hand as money, and form part of the public unfunded debt of Great Britain. _Exchequer bonds_ are similar, but they run for a definite number of years (six at most) at a fixed rate of interest.

EXCISE', an inland duty or impost laid on commodities produced and consumed within a country, and also on licences to manufacture and deal in certain commodities. Excise duties were introduced into England by the Long Parliament in 1643, being then laid on the makers and vendors of ale, beer, cider, and perry. Being found to be a convenient and productive source of revenue, they continued to gain ground, and in 1919 yielded L59,663,000. In Britain the excise includes duties on spirits and beer, licences on dogs, guns, carriages, servants, plate, railways, game, &c. In 1917 an excise duty was laid on entertainments, matches, and table waters. Spirits and beer yield over L44,000,000.

EXCI'TO-MOTOR ACTION, the action of nerves distributed to muscular organs, the stimulation of which leads to movement. Thus, irritation of a nerve supplying a muscle will lead to contraction of the muscle by excito-motor

## action, and irritation of certain nerves distributed to blood-vessels will

lead to contraction of the vessel by acting on its muscular coat.

EXCLUSION, BILL OF, a bill introduced into the British Parliament during the reign of Charles II for the purpose of excluding the Duke of York (afterwards James II), he being a Roman Catholic, from the throne.

EXCOMMUNICATION, the exclusion of a Christian from the communion and spiritual privileges of the Church. Excommunication was a recognized penalty among the Jews (_John_, ix, 22), and was practised early by the Christian Church. A distinction gradually arose between a lesser and a greater excommunication, the former being a suspension from Church privileges, the latter a formal expulsion excluding from all communion with the faithful. In the Middle Ages the Popes often excommunicated whole cities and kingdoms. In such a case all religious services ceased, and the grave inconveniences thus caused made excommunication a formidable weapon in the hands of the Pope, till with frequent abuse it lost its force. Besides excommunication an extreme degree of denunciation called _anathema_, and cutting the offender off from all the hopes and consolations of the Christian faith, is used in the Roman Catholic Church. Both Luther and Calvin were in favour of the right of excommunication by the ministers of the Church. In the Church of England both the less and the greater excommunications are recognized.--Cf. E. Taunton, _The Law of the Church_.

EXCRE'TION, in physiology, the separation and carrying off of waste matter from some organ of an animal body, a function performed by the lungs, kidneys, and the skin, besides the action of the intestinal canal.

[Illustration: Excubitorium, St. Alban's Abbey]

EXCUBITO'RIUM, in mediaeval churches, a gallery where public watch was kept at night on the eve of some festival, and from which the great shrines could be seen.

EXE, a river of England, which rises in Exmoor, in the county of Somerset, and after a southerly course of about 50 miles falls into the English Channel at Exmouth.

EXECUTION, in law, is a judicial writ grounded on a judgment of the court by which the writ is issued, and is granted for the purpose of carrying the judgment into effect, by having it executed. Execution is granted by a court only upon the judgments given by the same court, not upon those pronounced by another. See _Elegit_; _Fieri facias_.

EXECUTIONER, the official who carries into effect a sentence of death, or inflicts capital punishment in pursuance of a legal warrant. In England the duty of executing the extreme sentence of the law devolves upon the sheriff, and in Scotland on the civic magistracy, but in practice the duty is performed by another in presence of these functionaries. In the reign of James I Gregory Brandon was the executioner of London, and hence the name Gregory has often been employed to designate executioners. In France the executioner is styled Monsieur de Paris.

EXEC'UTIVE, that branch of the government of a country by which the laws are carried into effect or the enforcement of them superintended. The term is used in distinction from the _legislative_ and the _judicial_ departments, and includes the supreme magistrate, whether emperor, king, president, or governor, his cabinet or ministers, and a host of minor officials.

EXEC'UTOR, in law, is one appointed by a man's last will to carry its provisions into execution after the testator's death. The testator may, by the English law, appoint any person of sound mind and discretion, though otherwise under some legal disabilities as to contracting and transacting business in general, such as a married woman, or a minor. The duties of executors and of administrators are, in general, the same, the difference of the two depending mostly on the mode of appointment, the executor being nominated by the testator, the administrator being appointed by the Judge of Probate. In Scotland an executor appointed by will is styled executor _nominate_, and by authority of the court executor _dative_.

EXEQUA'TUR (Lat., 'Let him accomplish'), a written recognition of a consul or commercial agent issued by the Government to which he is accredited, and authorizing him to exercise his powers.

EX'ETER, a city, river-port, parliamentary county, and municipal borough of England, county town of Devon, on the left bank of the Exe, 10 miles north-west of its outlet in the English Channel. It is pleasantly situated on the summit and slopes of an acclivity rising from the river, and has handsome squares, terraces, and streets. The chief architectural feature is the cathedral (founded in 1112), a long, low building with fine west front, unique in having two towers forming its transepts, and only these two. The city has remains of the old castle and old walls, Guildhall, Albert Memorial College, training college, and St. Michael's Church. There are iron-foundries, works for agricultural implements and paper, and 'Honiton' lace is made. By a canal vessels of 300 tons can reach the city. The largest vessels remain at Exmouth. Exeter is a place of remote antiquity, having been a British settlement long prior to the invasion of the Romans, by whom it was called _Isca Damnoniorum_. It was taken by William the Conqueror in 1068. It long returned two members to Parliament, but lost one of them in 1885. Pop. 59,608.

EXETER COLLEGE, Oxford, a college, originally called Stapledon Hall, founded in 1314 by Walter de Stapledon, Bishop of Exeter, who made a foundation for a rector and twelve fellows. In 1404 Edmund Stafford, Bishop of Exeter, added two fellowships and obtained leave to give the college its present name.

EXETER HALL, a large building on the north side of the Strand, London, opened in 1831, and capable of containing over 3000 persons. In it the 'May Meetings' of the several religious societies were held. It was sold in 1907 by the Young Men's Christian Association to a firm of caterers, who demolished it in 1908. The Strand Palace Hotel now stands on its site.

EXFOLIATION is the scaling off of dead tissues; thus there may be exfoliation of the skin, of bone, or of other parts from their living surroundings.

EXHIBITION, a fixed sum given for a term of years from the funds of a school, college, or university, generally upon the result of a competitive examination. An exhibition, no matter what its pecuniary value, is less of a distinction than a scholarship. At Cambridge an exhibitioner has no standing in his college different from that of the ordinary 'pensioner', while a scholar is on the Foundation of his college.

EXHIBITIONS. The earliest recorded 'exhibition', in the modern acceptation of the word, is that in which, for one hundred and eighty days, Ahasuerus "shewed the riches of his glorious kingdom" at Shushan (_Esther_, i, 2-4). The first European exhibition was held at Venice in 1268; while the great fairs of Leipzig and Nijni-Novgorod partook of the same nature. But the real forerunner of the modern exhibition was that held in London by the Society of Arts in 1756, when carpets, china, and similar artistic objects were displayed. This was followed in 1761 by an exhibition of agricultural machinery. In 1797 France held a display of _objets d'art_ at St. Cloud; there was another two years later at the Louvre; while a third in 1802 is memorable for the first issue of an official catalogue, and for the presence of Montgolfier the aeronaut, and Jacquard the inventor of the loom that bears his name, among exhibitors. Besides the exhibition of Irish industries, held at Dublin (1829), and the Birmingham exhibition of metal-work (1849), numerous displays were held in both Europe and America before the first International or 'Great' Exhibition of 1851. This memorable display was under the active patronage of Prince Albert, and for its accommodation the Crystal Palace was erected in Hyde Park. Its success gave the exhibition movement an impetus which produced examples at New York and Dublin (1853), both of which proved financial failures; at Munich and Melbourne (1854); Paris (1855); and at South Kensington, where was held the second International Exhibition (1862). Five years later, after Constantinople, Oporto, and Agra had, among other places, held displays, came the great Paris Exhibition, planned on a colossal scale; though the main building in the Champ de Mars was stigmatized as 'a gasometer' by Napoleon III. Vienna had a magnificent but financially disastrous exhibition in 1873, and in 1876 Philadelphia celebrated the centenary of the Independence of the United States by a display. In 1878 Paris held another exhibition, for which the Trocadero was built. A series held at South Kensington (1871-4) had only a moderate success, but great popularity was attained by the 'Fisheries', 'Health', 'Inventions', and Colonial Exhibitions held in the years 1883-6. Edinburgh was the scene of a forestry display in 1884, and at the same time New Orleans opened an exhibition which continued till the following year. The Paris Exhibition of 1889 was notable for the 'side-shows', which included the Eiffel Tower; while the financial result of that held in 1900, which covered 550 acres of ground and admitted thirty-nine million people, was far from satisfactory. Meanwhile Chicago had in 1893 celebrated the four hundredth anniversary of Columbus's discovery of America by a huge 'World's Fair'. The present century opened inauspiciously with the assassination of President McKinley at the Pan-American Exhibition at Buffalo (1901); Glasgow had a thoroughly successful exhibition the same year; St. Louis was the scene of another in 1904; while London organized the Franco-British Exhibition in 1908. This last owed much to the late Imre Kiralfy, who had directed many previous displays, and was the designer of the 'White City' at Shepherd's Bush, where in 1914 was held the Anglo-American Exposition. After the conclusion of the European War various plans for new exhibitions were put forward, such as the British Empire Exhibition, which is to be held in London in 1923, and which is intended to foster imperial interests.

EX'ILE, a punishment by which a person is compelled to leave the city, province, or the country where he has previously resided. It is a punishment for State criminals.

EXMOOR', a wild and hilly district of England, in the extreme south-west of Somersetshire, extending also into Devonshire, formerly a forest.

EX'MOUTH, a town of England, in Devonshire, 10 miles S.S.E. of Exeter, at the mouth of the Exe. It is picturesquely situated, and is one of the best-known sea-bathing places on the Devonshire coast. The chief industries are lace-making and the fisheries. Pop. 13,614.

EXMOUTH, Edward Pellew, Viscount, a British naval officer, born at Dover in 1757, died 23rd Jan., 1833. He went to sea at the age of thirteen, served as midshipman in the _Blonde_ frigate during the American War, and greatly distinguished himself at Lake Champlain. In 1782 he was made a post-captain for a brilliant action in the _Pelican_, and on the outbreak of the war in 1793 was appointed to the command of the frigate _La Nymphe_. From this time till the peace in 1802 he was employed on active service. In 1804, on the resumption of hostilities, he was sent to take the chief command on the East India station, in the _Culloden_, of seventy-four guns; and here he remained till 1809, when he had attained the rank of vice-admiral. His next appointment was the command of the fleet blockading the Scheldt. In 1814 he was made Baron Exmouth with a pension of L2000 per annum. In 1816 he was sent with a fleet to punish the Dey of Algiers for outrages committed, and to force him to give up his Christian captives and abolish Christian slavery. Along with some Dutch war vessels he bombarded the city for eight hours, and inflicted such damage that the Dey agreed to every demand. Three thousand Christian slaves were thus restored to liberty. Lord Exmouth was made a viscount and received honours from several of the European sovereigns, and the freedom of the City of London. In 1821 he retired into private life.

EXOASCINEAE, a family of parasitic ascomycetous Fungi, distinguished by the absence of any definite fruit-body, the asci being produced in a layer on the surface of the host. The best known are _Exoascus Pruni_, the cause of the mal-formed fruits called 'bladder-plums' or 'pocket-plums', and _E. turgidus_, which produces the abnormal tufts of branches on silver birch known as 'witches' brooms'.

EXOBASIDIINEAE, a family of parasitic basidiomycetous Fungi, resembling the Exoascineae in most respects, but producing basidia in place of asci, a remarkable instance of parallel evolution. The commonest British species is _Exobasidium Vaccinii,_ which is frequent on cowberry (_Vaccinium Vitis-Idaea_) in Scotland. _E. vexans_ is the cause of a serious disease of the tea-plant called 'blister-blight', which is very destructive to the Assam plantations.

EX'ODUS (Gr. _exodos_, a going out), the name given in the _Septuagint_ to the second book of the _Pentateuch_, because it describes the departure of the Israelites from Egypt. The contents of the book are partly historical, describing the departure of the Israelites from Egypt, and partly legislative, describing the promulgation of the Sinaitic law. One of the difficulties connected with this book is that, according to Scriptural chronology, the residence of the Israelites in Egypt was only 215 years, and it seems incredible that in this time "the threescore and ten souls" who accompanied Jacob to Egypt could have become the two and a half millions who left with Moses.

EXOGAMY (Gr. _exo_, outside, and _gamos_, marriage), a term applied to the custom of allowing marriages only between members who do not belong to the same group. The study of exogamy is practically a branch of ethnology. The opposite of exogamy is endogamy, or prohibition of marriage outside the tribe. Exogamy, which among other causes may be ascribed to a desire of forming useful alliances with hostile tribes, is practised among Australian aborigines, Mongols, and American Indians, and the custom is widely distributed in various forms in all stages of civilization.--BIBLIOGRAPHY: Sir J. G. Frazer, _Totemism and Exogamy_; E. A. Westermarck, _The History of Human Marriage_.

EXOGENOUS PLANTS (_eks-oj'e-nus_), or EXOGENS, old names for Dicotyledons (q.v.).

EXOGENOUS STRUCTURES, in botany, are those which arise from superficial tissues of the parent organ, as stem-branches and leaves. Opposed to endogenous structures.

EX'ORCISM (Gr. _exorkizein_, to expel with an oath), the casting out of evil spirits by certain forms of words or ceremonies. An opinion prevailed in the ancient Church that certain persons, those particularly who were afflicted with certain diseases, especially madness and epilepsy, were possessed by evil spirits; this was called _demoniac possession._ Over such persons forms of conjuration were pronounced, and this act was called _exorcism_. There were even certain men who made this a regular profession, and were called _exorcists_. Exorcism still forms a part of the beliefs of some Churches. In the Roman Catholic Church exorcist is one of the inferior orders of the clergy.--Cf. Sir J. G. Frazer, _The Golden Bough_.