The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1857-07-14
Taxation.

Taxation.
We published . communication from
Another Taxpayer. yesterday. in
which. some very severe structures were
made vpon the unequal assessment in this
city on real and personal property. This
difference prevails in almost every COM
and though the law does not
justify the discrimination, there are sound
reasons for it in practice. A large por-
ton Of public expenditure is for improve.
ments that add to the permanent value.
and facilitate the use OF Real Estate, and |
which confer no advantages upon per-
sonal property. The expenditures upon
streets-for drainage-for schools-for
public ediices. do not increase the value
of a specie dollar, or a note, or bond. or
stock in distant bank. or railroad--in o
steamer running the rivers-nor in yard
Of calico or silks-nor in q bag Of coffee
or q hogsheai Of sugar-ncr the ten
thousand articles of daily trade. Public
improvements may facilitate the move.
ments Of merchandise, but they at the
same time add to the facilities Of bring
ing other articles to the same point. and
invits-and in fact offer premium upon;
competition. Moral and material i'm
provements mako a city attractive as
place Of residence, and bring population
business and capital and labor to it, but
they 40 not add any thing to the price
ola merchants stock Of goods. nor to his
notes and bonds. nor to the money of the
capitalist. They add to the amount OF
business, and to the increased demand
for labor, and to the security Of the pro-
perty; but the ultimate effects of all
these circumstances-whilc they give
the merchant some larger profits from
increased labor and risk-are to enhance
real estate in value, without any increas-
ed risk or labor to the owner. Real es-
tate 10 fixed quantity. that with an in
crease in demand, advances in an increas-
ed ratio in price. An increase in de.
mand of five per cent, advances its prices
ten per cent, and new demand of ten
per cent carries it up, perhaps. forty per
cent, and so on. There is therefore .
great degree Of justice in levying good
share of the burthens Of public expendl-
ture upon the real estate of the city.
And it is the policy Of real estate holders
to submit to it cheerfully. Personal
property Is portable and vii! 90 where it
is most literally received and encouraged.
A tax on it in one place drives it to an
other. A release from taxation, is q
bounty to bring it to a city. By its
presence or absence, labor and business
are stimulated or depressed, and as they
rise and fall, so does real estate go up and
down IN an increased ratio. If real es-
tate by assuming an extra burthen Of one
per cent taxes, and relieving personal
property of habits share, should increase
its acquisitions to the city one hundred
per cent thereby. il would the next year
get the same aggregate amount Of tax
alton from the favored interest that i
would have paid, had it received no re
duction, and no increase had followed.
And while real estate--by bearing al
first an unequal share Of tax't;on. would
pay no more taxes in the end-it woul {
enhance its own value perhaps 100 Pc
cent. by the additions Of personal prop
erty and business it had attracted to it
self.
Our correspondent, not being practi
cal business man, is not aware how muc
the increased facilities Of transportation
and intercourse have reduced the amour
of stocks necessary to be kept on hand
by our largest houses. The ability
renew the supply OF articles weekly ena
bles merchants to do four times tn
amount Of business on half the stock the
formerly kept on hand, when they re
newed their supplies but twice year.
They now renew them weekly and do
very large business on a very small car
ital, compared with the amount require
five or six years ago. In large cities. an
near them, jobbers do not keep muc
more than a supply of samples I
the articles in which they dea
They make sales from the samples
store, and deliver the goods sold fror
the first holders, without taking them il
to store; in most instance, making tn
sale before the actual purchase. In tn
way a jobber, enjoying all the moder
facilities of intercourse and good cree
it, may do business Of half a million
on 5000 actual capital, and realize
profit of $4,000 or even $4,000 pr
annum. Grocers with FIVE bags Of co
fee or hogsheads Of sugar on hand, ma
sell daily 100 of each without changin
parcel of either in store. So with dr.
goods, and all other articles. There is notf
ing strange therefore. that house wit
$1,000 or $4,000 actual capital shout
sell 100000 worth of goods in a yea
and make $4,000 profit on its operation