New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-02-18
THE BASIS or TAYATION.

country, little pubic attention was given 10 lts
principles or methods. Having relieved his
feelings by a little matter-0f-cOurse grumbllng
the citizen paid the bill presented, and
thought no moro of it. But since our pro-
tracted, desperate Civil War overwhelmed us
with National, State, and Municipal Debts, in
volving taxation in 1866 to the extent Of Seven
Hundred Millions per annum, the question
presses upon us" How shall we so raise the
necessary amounts as to render taxation most
Equitable and least burdensOme 7" Our State
last year raised Commission to consider and
report on this question. and its first Report Las
just been submitted to the Legislature.
The gist of its conclusions is as follows:
First: That real estate shall be assessed at its full
value This method has been tried in Philadelphia, and
works well.
Second: That tho attempt to levy general tax upon
personal property shall abandoned If not the law
must be made stringent and severe than it has
ever yet But system yet devised short Of tor
ture will be effective
Third: That the exemption OF indebtedness from
taxation must be abandoned condition of success in
any system OF taxing personal property.
Fourth. The Commission would abandon the multi
plicati0n OF oaths security for heahful assess
ments.
FG5th: That tho taxation OF mortgages upon landed
property must be given up impractcable and iniu-
rous. it prevents the oaning OF money the
best of all securities and drives capital from the State
Comments By The Tribune.
+. This is correct in principle, but too vague.
What is ats full vaue7" Here is a farm, for
which the owner paid $1,000, on which he has
built new house and made other improve
ments raising the actual cash cost of the es-
tate to $4,000. But those improvements would
not sell for their cOst-often not for
half of it. On long credit at low
rate of interest, the place might be sold
for $1,000; if well advertised and credit given
for half the price, it would bring $4,000 to
$500; but if put up at auction tomorrow and
sold to the highest bidder for cash in hand, it
would bring from $1,000 to $500. Which of
these rates is the "full value9"
In our view, the full value' of ANYTHING is
the sum it would command if, being fairly
advertised, it were sold for cash at auction.
If that is what the Commissioners mean, we
concur in their first proposition.
II. This is correct in substance, but lacks
precise definition. Some personal property
should, other such should not, be taxed.
A man has securities worth S10OO,O0O, which
he keeps in tin box by 8 by Is inches:
How will you make him pay $4,000 per annum,
or any such sum, as taxes on the contents OF
that box e? Perhaps you can harass him ont of
your jurisdiction but how viii that pay He
takes room among strangers Ill Ncw-Jersey
or Connecticut spends his Summers at the
Springs or among the Mountains, enjoys a few
weeks at one of our best hotels in Winter, or
takes trip southwark; and no one but him
self knows what are the contents of the tin
box which fills a corner of his big trunk Is
it wise to hunt this man out of your jurisdic
toni Europe thinks not.
III. A citizen has a house and grounds
which are watched, supplied with water, the
streets facing them paved, swept, lighted,
precisely the same as with other houses and
grounds: Why should he not be taxed on this
house as they are on theirs Suppose he
owes half its cost, what has that to do with
his liability to taxation He is taxed to de-
fray the cost of protecting his property and
rendering it accessible: why should he not
pay as others do for like service We can
not see. If this then, is what the Commits
sioners mean, we are in hearty accord with
them.
". OF course, oaths are to be dispensed with
so far as they safely may be. But how far is
that We must see their bill, or one drawn
in response to their suggestions, before de
Gliding that this suggestion has or has not
practical value.
V. We suspect that the Commissioners last
proposition is worth more than all the rest
Mortgages on real estate once favorite Sc
curity, are no longer acceptable. Much money
was loaned on farms at six per cent twenty
years ago but, while subject to rate of tax
alton exceeding one and sometimes reaching
two per cent, they are not and will not be
taken. The young farmer cannot borrow on
mortgage, and is thus unable to buy farm
which he could easily have bought twenty
years ago. 81 can do better is the capital
lists response to his petition for a loan. Hence,
thousands of our best young men are annually
pushed off to the West, because unable to buy
homesteads in the East.
Taxes on mortgages are unjust as well a,
Injurious. substantial farmer dies in
testate, leaving two sons to share his
farm and personal estate, together worth
$4,000. A. says, 81 will give 5000 or
"take that sum-" and b. says, "Give me a
mortgage on the farm for 5000, and take
"my quit-claim to whatever there is." The
settlement is fair one, advantageous TO
all concerned. But there is just $4,000 worth
of property in all-not penny more than
there was last year and to tax one OF these
sons $4,000 on his farm, and the other $1,000
on his mortgage, is unjust They have no
such amount and should pay on their prop
| erty, not On their debts.
! On the whole, our first impression is gene
rally favorable Tn the Commissioned sugges-
tons. Should they be adopted, we judge that
taxation in our State will be less onerOus than
1t has BEEN and that less industry will be
driven out of it during tho ensuing than dur
| ing the last decade. There may be geese green