The Daily Nashville true Whig. [volume] (Nashville, Tenn.) 1851-1855, 1855-10-19

teres; in the State, would respectfully invite your
attention to the burthen of taxation imposed upon
tins class by the operation OF the law regulating
Merchants License
The present law requires the payment into the
State Treasury OF fifty cents on every one hundred
dollars of merchandise purchased and received by
all dealers in the State, without reference to The
place at which the purchase may have been made,
excepting only articles manufactured in the State.
The Commercial Interest may be said to be rep
resented by three distinct classes of Merchants viz:
tie Wholesale Dealer whose business is to purchase
for and sell to the Retailer,-tbe Commission Mer-
chant, who receives and merchandise owned
by others, and vends the same for stated commits
sion-the Retail Dealer, who purchases for and sells
to the consumer.
First, as regards the Wholesale Merchant, we
would remark, that he must necessarily shape bis
business transactions and regulate the prices of hi
merchandise with particular reference TO other CONS
mercial marts beyond the limits of the State, with
whose merchants he is in direct competition, who
more favored by the law making power, and who
do not fail to use this argument to the prejudice OF
the dealer in your own State. This argument can
not be successfully met, and doubtless dverts much
trade from the cities of your State which natu-
rally tends to them; SO that, the tax CD this
class materially increased the effect would be to ex
clIde them a class of merchants.
Secondly With regard to the Commission Mer.
chant the existing law cOmpels him to pay fifty
cents every hundred dollars of goods sold by
him, the tax being on the gross amount of sales
gardless of the cost character Of the goods sold
provided only they not the product of the State
The commission allowed and well established by
usage throughout the Union, for selling goods at
Wholesale, is two dollars and fifty cents on each one
hundred dollars-the Commission Merchant has,
therefore, pay into the Treasury of the State one
fifth Of his earnings; in other words, the present
law compes the Wholesale Commission Merchant
TO work one day in every five for the State-she is,
therefore, one fifth partner in the gross profits of
his business, without paying her just proportion of
its expenses or sharing the losses.
This class of citizens have certainly as much right
to claim your protection the Lawyer or the Farm
Ell; why not tax the Lawyer the same amount? for
in most instances he is but an agent, transactng
business for third person for commission. Why
not tax the Farmer who may 90 into an adjoining
State and purchase live stock and introduce them
into the State for sale? There is certainly stronger
reason why he should be taxed for selling his stock,
Il an the Commission Merchant for selling Louisiana
sugar; your citizens can prod ice the one but not
tn other. This law taxes Kentucky tobacco bag
gng, &c, with Georgia and Alabama cotton fab.
RIGS aud Louisiana sugar and molasses but exempts
Kentucky mules, horses, hogs, &c. What good
reason can be given for taxing sugar from Louisiana
and not cotton from Alabama; for taxing -four from
Kentucky, and yet exempting her horses, hogs, &c
Thirdly, with regard to the Retail Dealer the CD.
Grafton OF this Law is particularly oppressive; you
will observe that no exception is made as regards
merchandise which has been once taxed in the
hands Of the Who'll esale Dealer. Each time the
pound OF sugar may change ownership the State
eSies her Tax as for instance and as is freouent
y the case, the Commission Merchant sells his
sugar 10 the Wholesaler, who again sells it to the
Retailer, and by the time it has reached the con-
sumer, the same article has been taxed three times
by the State aud you will not fail to observe that
the last Tax paid by the Retailer is necessarily the
largest, every time changes hands it Increases
in price in proportion to the profit charged in
short the State of tennessee offers TO every Retail
Dealer within her border an inducement to 20 to
other markets beyond her limits, to purchase, and
and he who may be unable to 60 to distant market
is compelled TO pay for such inability. Again by
the operation of this Law, while the Merchant of
capital say $1,000, but with moderate energy buys
but $4,000, paying Tax of $50, the poorer man
with but 81, 900 capital, purchasing his goods more
frequently and bringing more energy into his BUSH
than the former, is enabled TO buy like amount
are must pay the same Tax, although his actual
capital is so much smaller; thus showing that in
proportion to the energy of the Merchant is he taxed
without regard to the amount of capital so employ
ed.
In order further to show the justice Of the com.
plant made by the Mercantile class with regard TO
the unequal and burdensome taxation imposed upon
them, We respectfully ask your especial attention to
a few facts and figures 10 support of our position
By reference TO Senate Journal lS53-54, page
1856, it will be found that in answer TO a Resolution
of the House OF Represenuves calling for nforna-
ton the subject, the Comptroller reported that
the amount OF revenue collected from the Mer-
chants Tax Tor the year ending Septembe lst 1853
WAS about $4,000 IN round numbers On page
1871, same Journal will be seen the estimated re-
ceipts Of revenue for Oo years ending Oct lst 49,
showing that the whole amount of Taxes received I
from clerks, sheriffs and collectors for two years
was 1924, 600; now if we take the half of this es-
innate the revenue from those sources for one /
it will give $Sl2 o0O thus showing that nearly
one fourth the entire revenue of the State derived
from Taxation is paid by the Merchants Of Tennes-
see for the privilege of selling goods. In order to
show the relative value of the property thus taxed
as compared with other taxable property, we would
refer you 10 pages 6S and 90 Of same Journal where
It will be seen that the total amount of taxable pro-
Pelty in the State for the year 1852 Appropriated
600, co., and according to the returns as made
ABOVE, the whole amount of merchandise in the
State subject to taxation SIS, OOO, 900 Now as
Stunning that onethird of this amount SIS 600 600
Is taxed Trace, (which oil who are informed on the
SUBJECT viii coneede TO be moderate estimate) and
Is appears that $4,000 600 Of property in the hands
oil the Merchants OF the State pays one third as
huSh rcNcHue INTO tue state Treasury SlS6 600
200 OF other taxable property
il may be argued that this is not a fair comp,ri.
sor; because the Merchants Tax is imposed az
upon privilege. In this view of the case we bes
your attention to the following facts under the
existing laws OF our State the capitalist who en-.
CAGES in note shaving only pays one per cent per
AnIlum on the amount OF capital so invested.
without regard TO the number OF times he invests
said capital, as, thus, the note shaver with $4,000
,aI renvest the amount say four times
rear, making $4,000. and only pay Tax of $50,
q lie the merchant with the amount of eapi.
al Il by his industry and the character Of his cred
be Is enabled to purchase aud receive $50 coo in
merchandise (uo matter whether the same has been
AZ ed before not) must pay tax Of 81 90 and when
he question is answered, 10 which occupation At.
aches the greater privilege9 We Think it must bs
,oreed that the Tax imposed upon Merchants is
lnqueAl and unjust
We would call your attention 10 another
privilege as compared with that of merehaa-
iisng Under the Free Banking Law Of our State
my citizen complying with the requisites Of the
Act can establish bis Bank, ssue boges aud trans
k..sf 49,. -