New-York tribune., 1873-03-01
A PROPERTY PROBLEM.
TAXATION OF MORTGAGES.
DISASTROUS EFFECTs OF THE TAX.

TO the Editor Of The Tribune
SIR: l have read your recent article respect
ing repeating mortgages It seems to rae thas we
should take To facilitate credit on mortgages
Just as do to facilitate the credit OF our Government
or OF our citizens In all other respects. An injury 10
credit on landed estate must be injury to the whole
community OF course there may be prudential seasons
in particular why careful men should not run III
debt by mortgage or In any FORM But In all traue anu
commerce. the building Of towns and Of railroads. inc I'M
proyement Of and of cities property must be avail
able as the security for money, and money must Do
encouraged TO aid such enterprises and not restceo
This "a the essential condition OF prosperity and SUCCESS
Through tho whole domain OF trade the facihues ioI
pledgng personal property and security ior io'u' VI
money have approached perfection. Hea esI'"o "oouS
the same thing sbut, the contrary its
are made numerous and complicated. and building and
the growth of towns and cities Is restricted by IT, Wha
is wanted free and unrestricted money on rea eSo
security for those want It, The effect Is seen most
notably In the extraordinary growth In wealth. popu-
ton and business of theiowns In NewJersey bordering
on New-York contrased with the nacton on TINS sano'
Loans ON mortgage are encouraged IN New-Jersey.
When mortgages are taxed as personal property the
rate of interest Is reduced, and the mortgagee VINO Is
liable to taxation will lend but prefers Government
sceur,ties and railroad bonds which give larger ietest
and are not taxed II mortgages are not taxed as per-
sonal property that the lender oap get MS per cen
conrSoe bnJinS 10 depress the value Of real estate
because building and improvement are hndercu, anu "
raise the interest such loans W. are made 70 per o In
month on the average. owing 70 great uon""u A"'
an insufficient supply -. -. -
And with all this ey and disaster benefit arises to
the State the collection OF taxos on mortgages
property the OF 10 that stops tins class OF loads
Personal property ID not taxed specoaly, but an es
mate made against each person OF tle aggregato sum
for which he IL supposed TO be LIABLE ihere are
ways which person can reduce his ~
submitting 10 examination aso his other personS,
property but IL he has bonds and mortgages no Is he
O show how much OF the aggregate or personal propcE
ia mortgages but those most lainllar Win
the subject in this city place it at very low proportOh
to twenty per cent oI the mortgages noi" y!
private individuals. =, -
This taxation which thus injuries the whole commu
nifty is specially disastrous TO all real estate owners
and to farmers particularly although tney 90 ot hgm Nv
IT, aud which produces no substantial DenenJ 10 tne
State also unjust Ia principle Inc lnOrlgdgcu prop
ery is twice taxed. If owns farm taxed at yau-
alton of $4,000, which there Is mortgage OF <50
that farm taked at $4,000 while the next far, whch
OWLS the value, $4,000, on which there Is no
mOrtgL taxed at $4,000 only. This is UNJUST ana
the burden Of il really falls the borrower Although
this taxation not actually levied i'll all cases, II Is IN
some and the possibility and tho fear OF it
drives money out 0t the market tor al per
sons who want 1t land. The farmer Is
injured by commissions which he has to pay on ever,
loan he gets These high because of the scarcity OF
this class OF loanable money. He mas TO pay commits
siOps similarly every renewal OF bis l0an Is SUD
eced to losses when he Gould at tos urtner iS pros
some needed addition tO his farm MS payment cOu
be aided by credit on mortgage There ls an anhuai
crop foreclosures in each county, when farmers arc
ruined because their mortgages are called IN anu vy
cannot renew them make any of their land aVaaDie
as security the they want. III there were
statistics to these losses would be found that
farmers, in the aggregate, pay Tie hgneSG interest vi
any class in the community. Il H. L.
Netq- York, Feb. %. 1875