Staunton vindicator and general advertiser. (Staunton, Augusta County, Va.) 1858-1860, 1858-04-17
Gnegaal and Ei..jast Taxation,

| -sa1 ai49 u. just IdXali0n,
The existing system Of State taxation is
aamirapiy adapted to two objects, to con-
tract the commerce Of the State and to sink
the State creds.
The tax Gu merchants lie noes is Of all
others most directly aud variousIy iniur;o,s
to commerce. 20 obigc merchant to pay
tax on the amount Of his sales, is simply
| to tax his capital every time he turns it
over. In ether words, the energy, connie
tency and efficiency of a merchant Subjects
! him in every instance to increased taxation
This can best be illustrated by az examine
under the law Of 1856. Two merchants
have each a capital Of $1,000. The first
| converts his capital from goods into money
eight times during the year. his sales o.
mounting TO about $4,000 he pays tax
Of SIC. that IS 70 10 per cent. Ga his capi-
tai The other merchant turns over the
same amount Of capital nine times during
the. year, his sales amounting to about $40.
500; he pays tax Of SG6, that is 96 10
per cent. on his capital This is sufficient
to exhibit ele Of manner cramping the ener-
gies of commerce, that Of taxing superior
activity and intelligence in proportion to its
grade of excellence.
But we must first compare ,he taxes i'm
posed upon commerce with those imposed
upon other pursuits, before we can realize
the manifold inequality and injustice of this
mode Of taxation. The Constitution of Vir-
ginla regards the land tax as the normal
standard for TAXATION generally The mer-
chant who turns ever his capital Of al 900
nlne times during the year, pays tax of
1916, or 8 $40 per cent. on suc,, capital
Inc farmer who invests 1000 in land.
pays tax Of four dollars, or 4-.o of one
pee cent. Thus the merchant pays TWENTY
-FOUR TIMES the amount Of tax paid by the
agriculturist on the same amount Of propcr-
ty. And even this calculation oyer-rates
the farmers taxes as compared with those
o. the merchant, since it Is notal ious that
lands in Virginia are assessed at about one
half their value.
we must examine still further. in order
to appreciate the mischief of this system of
unequal taxation. It's direct effect. is to
rcduce the amount Of custom aud raise the
price o. merchandise. Large planters, and
ether wealthy citizens who consume large
supplies, become eaci. one his own importer
and thus wealthy class Of consumers ex-
tend little or no patronage TO Virginia mer-
chants, and escape entirely the burden Of
the license tax, the maximum extent of
which falls on the poorer class OF c,nsumers
who are obliged to bay in small amounts,
and cannot import for themselves The tax
falls heaviest on those who are least able TO
pay it. and the merchant is. to a great ex
tent, deprived Of the more valuable custom,
CT the large consumers.
And there is yet another n,cde Of une-
quail taxation, tue chief burden of which is
thrown on the commerce Of the State. We
refer to the Tux ca private credit
All moneys leaned at interest are subject
ed at least twice to the same tag imposed
on land but once. They are taxed in the
hands OF the borrower, as we'll as in those
OF every previous borrower CT lender. If
a loans money On bond to D, who loans.
the same to e, each one is obliged to paw
the same amount Of taz as s would have
paid had he retained the cash in hand; a
triple tax il imposed on circulating money;
~ single tax on boarded money. The very
,oppositg policy is @dapsel to sh,t which
ssoanl Jadgment Wild dictate Ii any dis
elimination rnaAt re 'nale, it oug..t to Be
against the hoard aid in fa19r Of .ssle loan;
against capital, and n favor IL credit. for
credit is the immediate rorrescr alive of
labor. Instead OF this, credit is aubiecte,l
to tax equal to that IN pnsc,! or. capital
IN the first instance, aaA Increasing in an
arithmetical ratio with evory subsequent ex-
tension. Thus, in the example abo We cited,
capital is taxed 40 per cent, and double
that rate of tax is imposed on credit. II
the money should change hands hroe times
credit would be mulcted twice If f,,nr times
the tax on credit is aaadrnpl,d; If fifteen
times, the tax on creiit consumes the whole
legal value Of tho credit itself This is what
renders usnry laws, (in.li4porsablc as they
arc to public welfare and private morals) So
oppressive to the mercantile interests of the
State. The usury law ana the taxstion Of
private credit taken together constitute q
farcical contradiction. The usurv law pre-
sumes that the extension Of croli. is a ne
cessary incident OF commerce and 81 society
itself, and the same law presumos that six
per cent. Is the just value Of the use OF
money as ascertained BY gen.rsl experience
The tax act then interpoSes to reduce the
nett profit accruing to the le'.d,r, to $50,
is, or 3 per cent according to the repeti-
ton and extension Of crctlit--in .ther words,
it cuts down the rate of interest below the
lawful standard, and restricts the ion
Of credit, which tho usrry l,w yrosumes
ought, on the contrary, 70 be encouraged
What is the consequence? The money
lender in order t. obtain a nr't ,rott OF
ak per cent, nusc charge the borrower a,
the rate of 3. 10, or Il per cent That
which was in the first instance nx1Ium IN
Sc, is rendered BY operation Of law mere
molnm prohib'tam, which is consequently,
and often mast and ought to be, perperta-
ted in defiance Of Law. We 10 not pretend
to state that tEe taxation Of private credit
in the State of Virginia constitutes the sol
canse Of the exorbitant rates Of interest paid
on commercial paper. But We do assert,
without fear CT confutasien, this is one cause
of the evil. ana +taat every principal cause
Of the same commercial obstruction may be
traced to similar instances of unjust taxa
ton in Virginia and elsewhere.
Last in the list Of this species Of legisla-
tive suicide, we adtluce the taxation Of State
credit, the further consideration of which,
and especially Of it's pernicious effect on the