Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1864-05-10
THE PROPOSED TAx-ITs EFFECT

The last number of the San Francisco
.Ne,cs Letter prefaces its review of the
Stock Market with the following remarks
upon the bearing and effect of the pro-
posed tax of five per cent. upon the gross
proceeds of the mines
Sufficient time has now elapsed TO test the
opinion of the Stock Exchange with reference to
the proposed tax of i've per cent. on the gross
proceeds of mines That opinion is unsquivocalIy
adverse 10 any such unwise proposition, and on
Wednesday assumed the shape Of u memorial
from the First Board, sent on by telegraph 10 the
seat of Government No body of men in this city
can pretend 70 similar experience in mining n
nance, and are more entitled TO be heard Al
ready business is seriously impaired, and gene
raj feeling of uneasiness and uncertainty mas
stepped in and arrested the Improvement we mad
begun to notice in this branch of commerce.
That profits should be taxed 10 certain extent
might be tolerable, and thus far the operation oil
such a tax would be singularly limited. but 10 tax
proceeds is literally TO kill the goose for the SAKE
of very few eggs. such course il is anticipated
would and of necessity must, put stop to many
promising speculations, and sap the foundanons
Of the real wealth OF the country. At the outset
of new undertakings all is expense, and must
50 remain for a considerable time. Very rarely,
as most of Us know, does the ore ex
tracted 60 any appreciable way for many weaTy
months towards iquidating the outlay for labor
and machinery, and it may be, millwork. Add
20 THU heavy tax, and the question is forced on
the attention of shareholders: ~ Can we bear
this additional burdenl" This five per Cent
would very shortly have become q dividend and
| not only 0ohc something to appease impatient
holders, oat attracted purchasers. Aud thus it
\ will occur that, even at this adv anced stage of
\ proceedings, this unwise impost might blight the
harvest at the very moment of the reaping of the
crop. A tortiori, these remarks apply with in.
\ tenser force to less advanced specnlations lint
| we pass to a consideration OF even greater strn
gency. II will readily be conceded that the pres
| ent is not an suspicious moment for applying a
| stimulus 10 our capital leaving our shores. Yet
such would inevitably be the result of taxing the
| gross proceeds of an undeveloped mining district
| At this moment thu mines Of Mexico are gaining
fresh start; and political events undoubtedly
assist them They are in truth exceedingly rich
and even now attract much moro attention-in
other words, absorb more capital from this coun.
try than is commonly supposed Now suppose
this tax imposed, and how long will it be before
unnumbered Washoe claims, Humboldt claims,
and California claims, will be suspended, if not
abandoned. and the money that would aid not
only in developing them, but increasing our cir
cul8tion, be transferred TO the untaxed mines of
Mexico Our limits preclude enlargiDg on this
topic but we trust we have made il plain enough
that the proposed policy is sterile and unwise
one-ruinous in IT'S effects, and little likely to be
productive in its immediate results
Under this depressing influence the Stock Ex-
change has suffered somewhat, but still sales
have been numerous, and latterly the tendency is
to improved prices, with however, some notable
exceptions"