, 1875-03-03

cheaper r1T7ces, so as to induce people to
take them up and improve them, which In
tho end would be benefit to the roal.
PROHIBITION OF CAPITAL IN ILLINOIS.
On Monday tho Houso Of Representatives
Of tho Illinois Legislature grappled tho aucs-
ton of taxntion and finance, and tho discus
sion WIS characteristic. The bill pending
was to amend the existing Law forbidding for
eign corporations holding real estate in 11li-
nois, 30 TINT when such corporations loan
money on real estate security thoy can pur-
chaso such real estate at any sale under
decree or trust deed, provided that such renl
ostato shall not DO held louger than five
years.
Mr., JAcH immediately moved an amend
ment that all loans made by foreign corpora
tons in this State shall DO ta1ed. This in
addition to taxing the sn1ne capital in tic
hands Of the borrower. Speaker HAHrs,
whose "best holt" is evidently on tho floor
and not in tho chair, propounded tho conun-
drum, Who was to pay tho tax? Foreign cor
rorations sending money to Illinois, If conf
PEELED to pay per cent of tax on their loans,
would Of necessity include TINT tax in tho
rate of interest, SO that tho 5osroucr, md not
tho company, would hare to pay tlo tax.
Mr.. CONNOLLY, Of Coles County, also suggest
cd that these foreign companies wero taxed
ut home, whero tho companies had their
principal Offices. Mr.. CrnxuSos, tho Do,no-
cratic lender Of the House, promptly con-
tributed his weight in behalf Of tho effort to
make tho introduction of money into Illinois
ii1lablo misdemcnnor. He is thus reported:
Mr. CUMMINGS said this was tle ntas tins he had
heard Tho proposition squaroly adranced that foreign
capital sent hero should not 10 taxed. ue wautsl
now test vote OIL that question. II, u The gentle.
man from Coles (CosSoILH1 had said, to tar foreign
capital would I1ivo II ot Of tbs Stae he fCuaA1Aas>
.saifd driotn out. II thoy enjoyed ths powers con-
ferred On them by ths bill they should b made to psy
fos It by contributing 10 tho support Of tbs sts Cor
Srnmcnt,
Mr. uAHEs moved that Tho reference b. with IN
Eruc1ons to report an amendment e1nbodyinH Cu1f-
M1Sos' principle, snl framed that tbs tax b. psa
not BY the borrower hut by ths corporation making
thc loan.
slr. vAxsE satd money loaned hesa went into build.
ings or other improvements, and thus ept4v dol
lar ~ subjected to taxation.
The ratcs Of interest on borrowed money
secured by farm mortgages in this State
range from 10 to II per cont tho latter rate
being reached in charges for commission,
etc. Against this excessive rate, which Ia
generally futal to the borrower, there is an
universal protest among tho people Of the
State, especially among the farmers. The
Legislature Of Illinois has placed tax on I'll
mortgages held by citizens Of Illinois equal
10 or per cont, in addition 10 tar Of 8 or
4 per cont upon tho property mortgaged!
The actual value Of money III this Stato is
about per cent; tothis tho londcr adds tue
legal tax, and, for bottgr security, puts on
or moro per cont in tho way Of extra
charges. Tho price Of money in Illinois to
borrowers Ia thus raised to 10 to u per cent
and is Of cot1rso paid by tho borrower.
There is M immense amount OF capital in
other parts Of tho country, where tho market
yaluo is to per cent. It naturally seekB
Investment whero tho borrower can well af-
ford upon real estate security to pay per
cent. When it gets hero 1t finds tho local
rate ia 10 to II per cent, that rate being made
necessary by the high rate Of tar On loana
imposed ~ tic borrowers.
Alr. CUMMINGS and his followers propose 10
cut OF le possible loaniug Of any money
In this State that does not include the
tox, and thereby prevent tho lending Of any
money at lcsa than 10 to u per cont, by
insisting that tho foreign corporation ahall
pay the per cent tax.
Alr. 1lA1sEs again proposed the conuntlrun,
How tho law could be SO framed as to re-
liove the borrower from paying the tax 2 and
no moved tho reference of tho bill to the
Committee to inquire aud report q clause TINT
would prevent tho borrower paying tho tax.
Mr. CUMMINGS, AZ the leader OF tho iqrorem;
of the Statet declared TINT, II to tar money
loaned on property already taxed would have
tho effect Of keeping capital out, and driving
that already hero out Of tho State, Ia eans<rl
II dfire,. out.
AIcssrs. JACK and OnosKnsrz aoemed TO
agree with Mr. CUMMINGS, that, unless this
capital would be taxed twice, 1t WIS better to
drive tho money out ct the State, anil to keep
it. out, than por7n.t It to bo used hero to em-
ploy labor, purchase material, build work.
shops and produce merchandise, or to im-
prove tarms, develop nines, purchase stock,
and increase tho production OF every de-
soription OF property in tho State.
That idca Is behind even that Of the
weayers who forcibly protested against
making cloth by machinery. It ia an idea
that has beon tho recognized mark Of igno.
rant prejudice for many long years. 1t rests
on the ground that somebody must be swim
died eyery timc o salo takes place. It is q
relic OF ths old times when to wcar 9 Glenn
SHIRT was evidence Of aristocracy, md to own
two shirts was luxurious extravaganza. It is
no credit to tho State TINT In the Legisla-
turo, among tho oldest and experienced mem.
bets, 1t is formally proposed to prohibit tho
Introduction of money, and to e1pcl that
now here. on tho ground that 1t 10 opposed to
the interests Of tie people! This in Illinois,
tn the middle of the lost half of tho nineteenth
century, by tho leader Of the Democratic
purity In tho LcpiaaturoI Waa mt pr.rrn