, 1873-01-31
MCNEYANl COMM ERCE,


THURSDAY EVENING, Jan 60
The demAnds Of the pork packers, which have
absorbed large amount Of theloanable funds
Of the banks ere likely to be less now, aa several
large packing firms have concluded to cease
operations for this season. On the other hand,
there Was large demand to-day from grain
dealers, who have bought wheat to be deliver
ed On the frat OF next month. The weather
'zlao has moderated, and, Is the SNOW embargo
On transportation will now be raised between
here and the grain districts, it may be expected
that the receipts OF grim will increase. In the
present deficiency Of transportation to the East,
it is probable grain will accumulate here, and as
1t will have to be carried by local bank capital,
1t does not seem that the prospect Of ease in the
money market Is very hatterlng Jet, though it is
nrquestionnbly D little better than fem days
ego.
Exchange WEE sold between banks to-day at
Csc per 81, 1000 discount.
TA1Es ON MORTGAGES.
We print below communication which gives
evidence Of much thought, and OF . comprehen-
give view Of the matter discussed, though, as
will be seen by our own comments following it,
We cannot entirely agree With the writer:
20 the Editor et The Chicago Tribune: -.
Governor Dir, the New York EreninQ Post and some
Western papera urging the exemption OF bonds
and mortgages from taxation, and claim that the bond
being secured BY mortgage On land' such taxation
ing applies equally well to chattel mortgages. II
money-lender takes security upon Wheat corn, Be- In
~rame principle; SO with 3 man who onds upon res
eei who eels goods to merchant and takes 5udg-
bond any other description Of personal secnr-
ity Indeed, viewing tho question from that stand
point I'll taxation notes or accounts is double taxa-
9 s q so bs
the premises is that Ill debts ehould be exempt from
taxation.
This rule would throw the whole burden OF the
taxes upon sthe holdars Of land and chattes part ct
whom would owe and be paying interest for large
oa q o.
should be taxed alke7 Obviously not; therefore, In
order do justice to the first OF these classes, they
ehould bc allowed to deduct from the valuation Of
the property their hands the amount OF their debs,
and let The taxes Ill fan upon npledged real es-
z;anks, tnaurancc companies, trust companies in
deed Ill banks dealing In credits-ahould have the
benefit Of this rule and be released from paying taxes
on debta due them, both in justice to them aud to ef
feet tho object OF the proposed change TINT H. the
ducton Of The rate Of nterest for the change ia pro
poeed In the interest Of the borrowers and it ta plain
enough to need argument that II the incorporated
snoney-lendefH continue to pay taxes their credits
they cannot reduce their rate Of interest," and that the
rate OF interest that they charge will govern individual
lenders.
Thseo things being done the way yin b. prepared
Banks to per cent interest loans and discounts.
The several States must follow with 1--we reducing the
then Congress must do 1t for them under the power
to reguate commerce between tho states Or II such
ala considered TOO sweepins the interest charge
individuals would be compelled to conform, except On
questionable securities.
One thing Is yet wanting The ta1-psying owners
security that their mountaineering creditors shan not
control the hw-maktng power to their prejudice.
as hs Of s stsa Of
n1Av t4.n For~
the- pa1poss md more Logical none but ta1paya1s n
class who pay taxes because Of desttution to
be reinforced BY those who are exempt from ta1a-
don by of their wealth, what protection will
$he email caea Of taxpayers have
We will than 10 prepared to balance and hold to-
ehy Q. f B.
Rzp1r.-n the first paragraph OF the above
communication our correspondent admits the
eeH-eyident proposition that taxes cannot be
collected out of anything else than the real
property. viz: real estate and chattes in other
persons would also, probably, enumerate money
Rs one OF the products Of labor which does or
ought to pay tsxos. But there is SO much mig
conception Is to what money means that in
stead Of money We should only say coin, because
I'll paper money" all notes, all bills, and bank
mortgages.
T. taxes can not be got oat OF anything but
what is Of intunsic value, VIZ, real estate chat
tela, and coin, it must be apparent that it ia a
delusion to imagine they can Be collected out OF
mortgages, bonds, promissory notes, bank notes,
or bank credits. AL these arc only evidences
that the holder Of such documents has had real
propetty,--land or chattels--but that he has
loaned them to some one else No matter how
much taxation may Ia disguised BY tho show of
collecting State revenue from ideal property, It
all comes out Of the real property at last and he
booTs fsa should recognize tbs
with it. We do not, therefore, agree With our
correspondent that justice requires that
men should be allowed to deduct the
amount OF their debts from the 7alua-
Of their property for ta1ation. Neither
~ re admit the necessity Of any Of tho conse-
dences he ASSUMES In the way Of usury laws and
legislation Of taxpayers. Humanity
has as much right to a voice in legislation as
property.
Interest, like taxes, cannot coma ont Of any
thing else than real property, and il the ma
chinery Of taxation we're directed against real
property alone, it would as ineVitably reach the
income Of the capitalist, who has loaned his real
estate capital and receives back annually cer-
tain per cent Of it's increase rs the tax on mort
cages now certainly falls on the land mortgaged.
TIE PACIFIC RAILROAD SINKING FUND.
When the Government subsidy to the Pacific
Railroads 1as first authorized, the railroad COM
panies we're required to set aside annually per
cent Of their net earnings, rs sinking fund, for
the liquidation Of the debt to the Government.
1t has been claimed, and believed, III
notifications of the railroad charters, by which
the Companies were permitted to make their
debt to the Government second instead of q
FIRST mortgage on the reads, they were released
from this per cent s1nling fund clause. But
it seems the railroad Companies themselves do
not believe they are legally released, as they now
find it necessary to make another kind Of ex-
cuse for the non payment OF this Per cent.
Their plea is that there are bridges to be built
neH rails to be laid, depots to be huit, ETC., etc.,
in Short, that the whole construction
thas far has been only temporary. II
correct It is not impossible that in strict accord
ance with the contract In their charters they
were never entitled to any Of the subsidy bonds
ten miles OF the roads.
LOCAL BTocE AND BOND MARKET.
Messrs. Lunt, Preston Kean quota as follows
khis afternoon:
Buyin1- Selling.
k1os OF ACKNOWLEDGEMENTS. LIS 1l5A