The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1875-04-15
Ghe9ttelIiaerrrea,
The Problem or TAXATION.

lHt N0EUHAeNN VI AuAHtlUHs
We published yesterday the opinion
recently expressed by the Comptroller Of
the Currency that National Bank notes
were exempt from taxation, just az much
as greenbacks, This opinion, together
with the recent articles Of Mr.. Wells
showing that personal property outside
OF any State could not be taxed within
that State, (acCording to decisions Of the
U. S Supreme COurD iS calculated to
cause u revision Of the theories NJ we'll M
tho subject matter upon which taxes are
assessed. Some very able articles have
recently appeared in tho Chicago Tribune
on the question, Mr., Medill, the editor
OF that paper, has probably given more
attention to this branch Of political
economy than any editor in the country.
Hc has studied il both in this county
and in Europe, and has written exhaus'
lively upon certain phases Of it, Refer
ring to the opinion Of tho Comptroller,
in last Sundays issue Of the Tribune, he
undertakes to explain why neither green
backs nor National Bank currency (aside
from the law on the subject should bO
taxed. Ills position is that money Of
itself produces nothing. II cannot be
eaten, nor worn, nor utilized in any way
save ~ measure OF value in the ex'
change of commodities, lie illustrates
what he means by this statement in the
following manner:
When Car-load Of hogs Is brought TO
Chicago and sold, the owner, who wants
TO take back with him their value in dry
goods and clothing, might 10 exchange
them at the cattlc.yards; but, instead Of
10 doing, he receives money from the puF-
chasCrOf tho hogs and then exchanges
tho money for the dry goods. The only
use Oi the money Is to serve rs u measure
or standard OF values in the exchange Of
the two commodities. Money left alone
produces nothing, and does not grow. II
il like labor, useless when lille, and not
valuable until expended. As well Tax
themind, and strength, and health, aud
life OF a man, ~ to tax tho dollar in his
pocket.
We are not prepared to endorse this
view ms to the propriCty Of cxempting
money from taxation, but there Ia nm
doubLcdly force in the argument by which
it Is supported. The position taken by
Mr.. Medill Ia TINT the borrower OF money
always pays the tax upon 1t. lie Ollrn'S
that the people Of Illinois (where the rate
Of interest is higl-say 10 per cent pay
millions upon millions in the shape Of
high or extra interest, simply because the
lenders Of il arc taxed high. lie says
that
"By ascertaining the aggregate amount
OF money loaned in Illinois on mortgage,
nn,l computing interest nt3 per cent, the
people Of this State may estimate how lnA'
nv millions Of dollars extra interest they
pay annually under tho deludon that
they are Furnishing the money-lcnder
Yet lemagOgues tell the people how this
law relieves them Of taxation, when the
fact il that, II all these laws taxing cred
its we're repealed, there would be an album
dance Of cheap capital IN Illinois to be
borrowed oil mortgage nt per cent
There Is another view Of this great
question Of taxation (which, by the way,
isone Of the problems Of our civilization,
that has been ndvCrlel to in recent diS-
cussions Of the subject by the newspapers
of the country. We refer to what is
known as "donblC taxation" For In
stance man buys II farm for len thousand
dollars, paying half cash nnd giving "
mortgage for the balance. On this farm
he pays full taxation, although he only
really owns one.half Of II, and the man
who holds the mortgage pays taxes upon
that also. Thus the farm is made to pay
80 per cent more than II did before II was
sOld, This IL sort Of double tax
alton that il common the country over
Why sii2 Why should the amount that
n man owes bo taxed in lis hands MS II II
was an asset instead Of liability
II man has thousand ,dsllnrs 10 his
credit in bank and yet owes thousand dol
lars, the debt ollscts the asset In that case,
and he is not required to pay taxes on
his thousand dollars. Why should not The
same exemption apply to the lnan who
owes debt on llis farm2
There arc other views Of this subject
that night he advertcd to in an article like
this, for the subject Ia an extensive one
but we shall leave them over for another
time.