Fayette County herald. [volume] (Washington [Washington Court House], Fayette County, O. [Ohio]) 1860-1???, 1868-08-27


vested in that form as Though theJ
were IN State or railroad securities
i Deducting these thirty millions we
End the untaxed bonds reduced tC
six hundred and twenty millions.
! And still there is another reduc-
! ton; for the fire and marine insur-
;;iHce companies and the annuity
and trust companies and other in.
Corporations which cannot be read
lily classed, hold in the aggregate
over one hundred and twenty-five
millions Of bonds, and these are
held on precisely the same basis as
those held by the savings banks and
the life insurance companies
These numerous corporations have
their capital stock, their reserves
and their surplus earnings invested
lin Government bonds to the extent
named, they are in this form just
as open to taxation and are actually
taxed just as much as though they
were invested in any other form of
security. Making the deduction of
this one hundred and twenty five
millions we find remaining hut four
hundred and ninety-live millions of
the six per cent. gold bearing bonds
that are not already practically sub
ljeeted to local taxation. Allowing
for the possibility that one hundred
millions Of the five per cents are
held instead of six per cents in all
the channels of investment /
have heretofore named, and it fol-
lows that at the outside figure there
are day In the whole country less
than six hundred millions of Gov
ernment skies not fully subjected
to the power Of local taXation.-
And these six hundred millions are
rapidly growing less as the various
corporate institutions have named
continue to invest their funds more
and more in the bonds. These in
stitutions desire a security that is
of steady value, not liable to great
fluctuations, and at all times con-
yertible into money; and hence they
seek Government bonds in prefer
ence to any other Investment
The high premium on the bonds
induces individuals tc part with
them and hence they are readily
transferred to corporate ownership,
where they becomein effect at once
! liable to local taxation and are no
longer obnoxious to the charge
of evading or escaping their just
share OF municipal burden. In the
hands Of individualsthe bonds may
sibe concealed, but in the possession
Interpretations conceaIment is nee
essarily impossible. ' a
If these statistical statements
needed any verification it would he
supplied by an examination Of the
income returns recently made under
oath and published in all large cit
les of the country, disclosing the
fact that the amount Of bonds held
by the wealthy men Of the country
has been continually growing less,
just as they have been absorbed by
foreign purchase and by corporate
investment. The correctness of
these income returns in reference to
the investment in bonds will be ac-
cepted even by the incredulous and
the uncharitable when it is remem-
bered that the interest of those
making them was to exaggerate
rather than depreciate the respect
i've amounts held by them. Instead,
then, of nineteen hundred millions
of these bonds running free of tax
alton, it is clear that lessothan six
hundred millions are open to that
charge-less than one-third of the
whole amount. The remainder,
largely more than two thirds of the
whole, are either held abroad where
no local taxation can reach them,
or they are held at home in such
form as subjects them to local tax,
alton.
And now let us suppose we were
in possession of the full power to
tax by local authority these six hun
dred millions of bonds presumpt-
lively owned by individuals. Would
we realize anything from it? On
its face the prospect might be fair
and inviting, but in practice it wo'd
assuredly prove delusivc and decep-
tive. The trouble would be the
holders of the bonds could not be
found. No form of property is so
easily concealed, none so readily
transferred back and forth, none so
difficult to trace TO actual owner
ship. We have hundreds of mil
lions of State bonds, city bonds
and railroad securities in this coun-
try, and yet every one knows that
it is only an infnitesimal proper
ton OF this vast investment that is
ever represented on the books of
assessors and tax collectors. AS a
pertinent illustration, / might cite
the case of the bonds of my own
State, Of which there are over five
millions in existence to day, largely
held to favorite investment by the
citizens of Maine. Of this whole
sum | am safe in saying that scarce
lly a dollar is found on the lists of
any assessor in the State. And
vet the facility for concealing own
ership in national bonds is far great
er than any other form of security,
and the proportion in the hands of
individuals that would escape the
assessment of local taxes may be
inferred with reasonable certainty
/ r,1,,, Az onoIoUina have suOpagtpd