Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1860-03-13
For the Patriot.
MERCHANTS TAXES.

sion OF the GENERAL Assembly OF Tue Otdtt,
the merchants and other citizens of Nash
ville,. Memphis, Knoxville. Chrksville. and
great many other towns and country places
throughout the length and breadth of the
State. sent up to that body the following
petition which believe not one dozen MEM
bers of both houses together have ever read
or listened to it, if read in their hearing.
respectfully submit to those gentlemen. if a
document so numerously signed, is not wor-
thy OF their attention:
To The Honorable Selnte and
House # Rspreseetanres Of the Stqte Of Tenn:
Your Petitioners undersigned. being citi-
zens of Tenuesse, and some of US doing bust
ness as merchants in this State, would re-
specifically cal! the attention of your honora-
bic body TO certain matters of grievance as
herein after stated and explained. in order
that such legislation may he bad in the premi-
ses. as yonr wisdom may deem just and ex-
pedient.
By the Constitution of Tennessee, the
! General Assembly is empowered to impose
| upon the mercantile interests of the State
taxes. heavier in proportion than those i'm
| posed upon agricultural and manufacturing
Interest,"; and acting under this authority the
| General Ass, mIly has enacted laws taxing
merchants upon the invoice cost OF the goods
they purchase aud bring to their houses for
sale. just five times the amount which Is
taxed upon the landholdtr yearly upon the
| assessed value of his land; and the difference
| is much the same compared with the tax
| upon other SPECIES OF property. When we
| consider, that in the case OF the merchants
The tax is paid upon 0ou0i cost. aud in the
case of the iaudholder Upoa assessed UaLus,
which does not on an average more than
| equal half the value of the land. the dispro-
| portion Is doubled. so that the merchants
| lax would seem 10 he ten times as heavy as
that of the holder of land or other property.
| Bnt when we further consider, that while the
| property bnlder pays n Jon the assessed value
| Of his properly. which if il were actual valua-
| iiun would represent the amount OF capital
| or money invested in such property, the mer-
chant pays not upon the amount ot his
| capital invested in business. but upon the
amount of his purchases. WHICH will be from
| two to ten times the amount of his capltai;-
when we consider this also, we see that the
disproportion il further multiplied, so that
the merchant actually pays twenty. thirty.
fifty. or even a hundred times as much tax
upon the amount OF capital invested as does
| the prC perty holder.
To illustrate. let US suppose A. owns q
| tract of land which * worth in the market
aud will sell for $4,000. That tract of land
| will be- ASSESSED TO him at valuation, say
| euuaI to- SIS 600 Upon this yalua ion a.
| pays one mill ia the dollar. bein.: So tax to
| the State of Tennessee. But A. sells his
| land, realizing for il $4,000 which he invests
| in merchandise With this amount of CAPT.
tai he will in due course of buying and SELL
| ing. purchase twenty, thirty, fifty, or one
hundred thousand dollars worth of goods per
| aDnum, according to his energy, the nature
| of his business. and the manner in which he
a al.
or ore hundred thousand dollars. A. pays TO
The State one halt of one per cent, that is
| one hundred one hundred and fifty. two bun
| dred and fifty OF five hundred dollars being
twenty, thirty, fifty, or one hundred times
the tax he paid upon his capital, otherwise
| invested. By this system OF taxation. mer-
chant is taxed upon his industry and activity
in business well as upon his capital. The
merchant of small means must needs turn
over his capital more frequently than one of
larger means; that is, by buying and selling
and buying again, his purchases per annum
will usually amount to larger sum in pro-
portion to the capital invested, than the
amount purchased by the merchant of larger
means, az comp red with the amount OF his
capital. Thus, 10y the operation OF the pres
ent law, the poor man is taxed more heaIily
in proportion to his means than The rich.
Under the operation OF the present laws,
moreover. the County Courts levy taxes upon
merchants npon the same principle. adding
still further to the burden OF unequal taxation
placed upon The shoulders OF the mercantile
class of the community.
Your Petitioners would respectfully urge
upon the consideration of your honorable
body the Justice and prnpricty of taxing all
class equally upon the value of their pos
sessions; but if in your wisdom, aud follow
! ing the precedent het by former legislation
! upon the subject, you should still see proper
| to levy a heavier tax upon merchants than
upon other classes of citizens, we would
earnestly represent to you the manifest jus
ticc of 20 altering the present law that the
tax may be laid upon the capital of the mcr-
| chant. and not upon the Invoice cost of his
| goods. Such law would BIZ moe readily
| understood by our fellow-ciizens, many o.
| whom are not now aware OF the extent of the
| injustice of which complain. Wekuow OF
| no State which taxes her merchants upon the
! principle of our present Law.
But there is another, and To our minds still
greater gri,yancc to which the merchants Of
! Tennessee are at present subjected, and 10
| which your Petitioners would respectfully
| call the a. tention of your honorable body.
| While our own citizens are compelled TO pay
| at 50 very high a rate for the privilege OF
/ vending merchandise within the Stale OF
| Tennessee they are left 10y our laws without
| protection against the untdIed, and immediate
| competition of the merchants of other States.
| Merchants or the Eastern aud Northern cities
| come among us in person, aud send their
| agents in vast numbers, all over the length
| and breadth of our State. penetrating to the
remotest villages and country places, selling
goods TO the retailer aud e, en- TO the custo-
mrr. without paying any lax whatever 10 the
| State Of Tenne ssee These merchants and
| agents in some cases carry with them samples
, of their goods, and generally solicit aud OBJ
tain orders tor goods, TO be filed by their
houses ia distant cities. This practic" works
greatly 10 the pr judce of the cities and
towns of our own State. The evil complain
ed of is oi very recent origin, being almost
unhcard OF lew ears ago. Ii must not be
supposed that there travelling merchants
supply our people with goods at lower prices
tIan our own jnbhing or wholesale dealers.
Such is not the case. They are not tn. i'm
poTtrrs aud manufacturers, or what are called
Jd hands in mercantile phraseology, with
whom our merchants are thus brought into
competition but those who at best buy their
goods and wares where our own merchants
buy Their supplies, and in very many. indeed
most Cases. they are mere imposters, who
by dint of address and Importantly are able
10 induce our people to give them a tempo
rary patronage, pretending to offer them adj
vaniages in trad. which are never realized.
Our merchants and people generally do not
! desire the yiSilatiuus ut these III II. but are
much annoyed by their continual imporiuni-
ties. Nevertheless, the amount oil good soic
i,y than, IN s-inas s-.r, s~ita'~ ihs Hassss "a
our Slate, is immense, aud greatly 10 the dis
advantage Of tn regular and responsible class
OF merchants which pays so large u revenue in-
TO the treasury Ct the State. and into those oi
the counties and towns The Legislative ga-
thoriti,s OF other States and Citiss hav deem-
| cd il pi oper Ia restrain the practice OF which
we complain. by various enaeturcnts. We
are not prepared to lay before your honora-
| bile brdy the various laws upon tie subject
| To which we alludr; but We may say for ibe