The New Orleans Democrat. (New Orleans, La.) 1875-1876, 1876-03-30
HIGH TAXES.
rheJr nuInOus Effects Upon Private
Euterprtse-A Remedy.
from the New York SUM-

fTuLlt fDEtlt IDIffflilDU Ill ItHUbyINuuI
opeus an important question far to-
little considered hitherto This Is th
effect Of taxation Oh industry.
1t Is the weight Of State, county ant
municipal taxation, that now hang
like u milestone about the neck Of tn
nation. IL has risen to such q heigh
thnt capital shirks IL at every turn. Mel
decline enterprises OF industry. here
there and everywhere, because they feal
the taxes that confront them. They
will not incur the hazards Of establish
ing new Industries, or the revival o
suspended ones, where the tax gathereI
insists on third or q half Of fair in
come on the capital invested.
All over the country, with few excep-
tions the rate Of taxation on all visible
property Is two and half to three per
cent on its actual value. Now, II Is well
known that the average income of CAPT
tai In the long run in this country Is less
than six per cent. When IL has a fair,
uncmbarrassed chance, it does not earn
more than this and If large capitalists
can secure this in their permanent in
vcstments, they are content with IL, be-
cause they know the ordinary industries
Of the country cannot flourish il they
habtually pay more than this for the
hire Of capital When the rate Of taxa
ton in any village or town or city IL,
therefore, up In the neighborhood Of
three per cent, the judicious investor OF
capital ut once secs and says that IL Is
no place to put his money. To make IL
even moderately productive to its
owner, 1t must earn at least ten per cent,
md rs no form Of industry can pay this
and continue to flourish, II is 10 defy the
maxims OF prudence TO make an invest
ment which requires such an impossible
return.
The results are visible on every hand.
There IL plenty Of idle capital which
seeks employment and hire at four and
u half and five per cont. But III there
were opportunities to engage In indus
trial enterprises that would pay six or
seven per cent on the investment, no
body could engage in them, because
half OF the earnings must go to the tax
gatherer. They would not bring as
much interest to the investor as II he
loaned his money on substantial stocks
and bonds ut five per cent; and thus we
see that although money Is plenty and
goes begging, yet enterprise flags. Cap
italists are everywhere hiding their
money in secret loans, or putting it into
Government securities, to avoid TAXA
ton. 1t refuses to come out into the
light of open day in the shape Of bricks
and mortar. and spindles, and Touring
mills; In iron smelling, forging, or roll
ing. in collierics and mines, and all tho
thousand forms of visible occupation
and Investment. We do not say this is
owing mt the present moment exclu-
sively to the ruinous rates OF municipal
taxation, but that 1t Is q most important
factor. in the situation Is not TO be
denied
II Is naturally to be supposed that |
some time or other we shall rise out Of |
the depths Of depression and stegnation
In which nearly all the mechanical and |
mining Industries OF the country are |
now plunged But beyond all question |
that period will be delayed In consc-
quence of this depressing weight OF tax
alton that now loads the entire nation.
No new industry can be resuscitated,
except under this tremendous ombar-
The promise Of adequate re-
tuins has therefore got TO be lively and
exceptional, In order to stimulate such
an effort; No ordinary expectation will
suffice for no industry can thrive that
Is not able TO bear the immense burden
Of three per cent taxation. And how
md when can that be?
There has been recognition OF the
state OF things we have now briefly de-
picted, In tho public mind for several |
years. IL has shown itself occasionally
n the legislation or attempted legsla-
ion OF several OF the States. It has
Dscn proposed to invite the establish
ncnt OF corporations for manufacturing
purposes by offering them immunity U
rom taxation for several years. In some
,ases such manufactures have been es-
ablished on these terms. But tho plan
s not well received generally, and it is
IN inadequate remedy for tho mischief
t Is intended to obviate. Ton years,
which, we believe, Is as long period OF
exemption as has ever boon proposed or
,iven, IL very short time in the life Of
great manufacturing corporation. 1t
Don slips away, and leaves tho new in
lustry to struggle with its fellows who
ire impatient OF eOmpanionship in car
'ying their burdens. Thus tho plan has
lot been successful in any noticeable
legree; and to accomplish the end
timed Mt, something more effective must
DO devised.
s, what shall the remedy beP What
will relieve the grinding load of State
md municipal taxation under which we
yroan and stagger? 1t does not advance
he problem to say that our public debt
3, In the main, the fruit OF inexcusable
extravaganza and down.
light protligacy. 1t does not help the
natter to denounce the prodigals and
,rotligates who have got the country
nto this painful and ruinous dilemma
Z Is In vain, except to point a moral.
hat we exclaim against the fraud, cor
upton and rapacity which have brought
IS where we are. The fact that the
country has been victimiZed by an abom-
nable system of cxtravagant, larcenous-
md fraudulent administration from
Is highest to its lowest authorities, such ,
IS was perhaps never known before at
my time or among any people, certainly
lnder no constitutional government, or
government Of popular opinion, in no
way relieves us of the consequences Of
uch debauchery. There is nothing left
or us but to face the situation, and see
What is possible in the way of meliora- |
ion.
There is one thing, and 1t is the first !
hing to be considered and attempted |
his Is the sudden and prompt stoppage {
4 further wasteful expenditure We !
must arrest the business of getting into
ebt. A year ago Massachusetts set a )
God example by an act or her Legis- :
lture, applying the brakes to further
Indictment. 1t stopped the :
owns and cities within fixed limit, l.
nd provided for early and compare
Ively rapid repayment where that limit
I'D been exceeded. 1t embodied a g
ublic judgment, which could not be
pplied under the wretched system Of
o-called sclf-goyernment Of the NUM-
lpal corporations under which half n | q