Wilmington daily gazette., 1872-12-07
r 1axation.

The Commercial says it "never said 1t "wouid
not tax anything but real estate We did not say
it did. but we understood it to take that position
We give il the benefit Of its denial. But as 1t
takes exception to the present mode OF taxation'
and raising revenue, We think it should propose
some mode that it could show by fair and honest
argument to be an improvement. While 1t does
not urge the repeal Of the tax mortgages it
proposes to exempt those which are held by the
building and loan associations. This argument
might suit some of those interested IN TINS
mode OF saving money and building and buying
houses. But there other people who do not care
to bear the taxes that would thereby fall to their
lot to pay Many of those who deal in loan asso-
Citations do SO to make money by system OF
speculation which they say they run little risk
For instance they will buy house at a low OF
moderate price pay one-third and borrow the
money a mortgage from the loan ASSOCIATION TO
pay the balance. Rents being high they will col
lect enough rent from the tenant every year to
pay the interest on the whole and at the end OF
ten or twelve years have the property In this way
pad for, and often small balance is left yearly
in hand beside.
Another man owns a number of lots of ground
Au kOON lOCallty ue MaAeS arrangements Nith
mechanics and others ter work and material and
builds several houses when some OF them are
built or i'll u certain stage of completion, he bor-
rows from the loan association and pays off por-
tion, and when the houses are completed he sells,
often realizing profit on the houses, and raises
the price Of his lots adjoining perhaps five or ten
dollars foot in the next year. In the mean
time houses that are not sold, but rented, pay
ing for themselves through the loan association
which is at liberty by the favor of the State, to
sell money at rates as high bidders please to
run it, and with the interest, premiums and fines
for non-payment, buy mortgages and horde them
away until they expire.
We are in favor Of loan associations and make |
NO objection to their plan of saving on the con-
trary We urge all In moderate circumstances to
join them and save their money and by their ex-
ample help others to do likewise. But we think |
the loans would be asking of the legislature,
were they to petition tor the exemption Of their
mortgages from taxation than would be granted.
1t is certainly doubtful whether such favoritism
should be extended to any money making insttu-
tons. Certainly the savings banks have as much
right to ask such exemption as the loan associa.
tions have.
II it is true as a rule that money will naturally
flow into the channel where the remuneration to
its owners is the greatest, certainly the loan
Citations present no exception to such rule, since |
more money is invested through them at this time
than any other nstitutions-we think not less than
$4,000 month. No better proof of the beneficial
effects and prosperity Of these institutions here
be asked than this fact presents. The loans will
be wise, il they let objections to taxing mortgages
arise from outside parties.
The adjustment OF the tax laws have always
been found tae most difficult questions to deal |
with and to make satisfactory TO the people. Per-
haps II the tax were taken off OF the mortgages OF
the loans and placed on the real estate, many OF
the holles of houses through the assistance Of
the loans would feel the weight Of the tax much |
more than they do now. The repeal Of the usury
laws, which the Commercial favors, might act very
much against the loans. Their are some who say
they would never borrow from them if they could
gst money on long time at eight per cent. In
conclusion we would suggest that the Conpnerc .al
must have fallen into very garng error in say.
ing each loan is required to pay $4,000 tax on its
mortgages during its existance. We have never
heard this estimate given higher than 800.
The City Of Bridges.