The Portland daily press., 1863-12-19
Taxes and Capital.

Taxes and Capital.
In the administration Of State affairs there
are two important principles which always
should govern.
tanned.
Second-Taxes should be evenly distribut-
ed.
We propose 10 show that the State of Maine
has disregarded both Of these principles, by
driving away outside capital, and by taxing
some branches Of business enormously, while
others arc not taxed at all.
The States Of New York and Massachusetts
have grown rich, popular and influential, not
wholly on account of their geographical posi-
tion. New York City has striven TO be the
center Of money and Of trade: seeking power
through the simple fact that it is for the inter-
est of her customers to yield to her desires.
To-day, New York City rules this country.
The administration consults New York bank
ers, and is guided by their views and resour-
ccs. The balances of every State in the Union
find here their natural resting-place.
udSoANuusctic udo diuicu W uO NEW Eng
land what New York has done for the coun-
try. Her system Of bank note redemption,
her factories, her Lawrence and her Lowell
attest this. Connecticut is dotted with work.
shops that supply the country with her thou
sands of varied notions. Manufactures are
encouraged; her banks, many Of them owned
almost entirely out of the State, furnish the
means for her workshops. Her people are
thus constantly employed, her population of
taxpayers retained, and her taxes distritu-
ted.
The mills at Lewiston yield no direct rcve-
nue. to this State; yet indirectly they more
than repay the wise policy of the State which
exempted them from taxation. The banks
pay tax on their capital of one half per cent,
three per cent. on their profits, and the stock
holders are again taxed in their respective
towns more than one per cent.
For the past year another one per cent. has
been paid to the Government on the circula-
ton, while this year the Secretary of the
Treasury proposes to tax them two.and one
fifth per cent. Yet in addition to these, our
legislature has imposed nonresident tax, SO
that the stakeholder who lives in Massachu-
sets is doomed for the amount which he
would pay did he live in the town where his
bank is located. Here are 90 banks with a
capital of over Ss,Oo0,000: of this amount
there is $1,300,000 owned out of the state
Every dollar of this latter sum is loaned to
the state. Every dollar helps along some one
OF the varied interests In the state. Our far
mers' produce sells the better for IL; our small
manufacturers are assisted, and there is no
single class that is not benefited. Yet, mar
row minded policy has taxed these non-resi-
dents, and this year fully onc-half Of the
amount previously owned out Of the state will
be sold: the interest Of capitalists in our be-
half will be lost, and they will hesitate again
TO place their investments here. If this state
reaped direct advantage from this tax, there
would be an apology for it: but the fact is
well known to intelligent bankers in different
parts of the state that many of these shares
are being placed in such form that there will
be no tax reaching them. Why then should
we continue in force a law which, instead of
adding materially to the revenue, encourages
dishonesty, and drives away the very capital
which we need.
Taxation should press equally upon the DIFF
ferent branches of business. A shoemaker
and a machinist should pay alike: fisher
man and farmers lawyer and banker.
We make these three divisions OF the produ-
Ger, the manufacturer and the consumer, and
think that The members OF each class should
pay nearly all the same amount, of course par
TALLY favoring the producer. Yet Banking is
taxed out of proportion with every other in
terest in this state.
To conclude. Tho state bank tax must at
once be removed. The enormous tax levied
by the general government will compel the
banks TO give up their state charters, and save
the hal, per cent. now paid, for their business
can be just as well managed under the Ma.
tional Law at present. When this is done, no
State Law can in any way control their ope-
rations. No tax can be collected aud no re-
turns are to be made to assessors of towns.
Gentlemen Of the next legislature Which
Law shall control the Banks of this state?
BANKER.